Amends the racing, pari-mutuel wagering and breeding law and the real property tax law, in relation to racing corporations and associations; authorizes the empire state development corporation to issue bonds for the acquisition of certain racetracks and construction of video lottery terminal facilities; provides appropriation authority for the acquisition of certain racetracks; amends the tax law, in relation to the disposition of revenues; amends chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; repeals certain provisions of the racing, pari-mutuel wagering and breeding law relating thereto; and repeals section 18 of chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, relating thereto.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9998
SPONSOR: Pretlow (MS) TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law and the real property tax law, in relation to racing corpo-
rations and associations; authorizing the empire state development
corporation to issue bonds for the acquisition of certain racetracks and
construction of video lottery terminal facilities; providing appropri-
ation authority for the acquisition of certain racetracks; to amend the
tax law, in relation to the disposition of revenues; to amend chapter
281 of the laws of 1994 amending the racing, pari-mutuel wagering and
breeding law and other laws relating to simulcasting and chapter 346 of
the laws of 1990 amending the racing, pari-mutuel wagering and breeding
law and other laws relating to simulcasting and the imposition of
certain taxes, in relation to extending certain provisions thereof; to
repeal certain provisions of the racing, pari-mutuel wagering and breed-
ing law relating thereto; and to repeal section 18 of chapter 346 of the
laws of 1990 amending the racing, pari-mutuel wagering and breeding law
and other laws relating to simulcasting and the imposition of certain
taxes, relating thereto
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to provide for the continuation of quality
racing at Aqueduct, Belmont and Saratoga racetracks.
SUMMARY OF PROVISIONS:
This bill would:
-- Authorize a not-for-profit corporation, known as New York Racing
Association, inc. (NYRA) to conduct racing at Aqueduct, Belmont and
Saratoga racetracks for 25 years.
-- Clarify that the State owns (i) all the land underlying the Race-
tracks, (ii) all improvements thereon and all physical assets thereon
and (iii) all assets associated with the franchise and the operation of
the Racetracks, including, without limitation, all rights to intellectu-
al property and simulcasting.
-- Reconstitute the NYRA Board of Directors to include a total of 25
members of which: 14 would be appointed by NYRA; seven appointed by the
Governor; Two by the Senate and Two by the Assembly. Of the Governor's
appointees one would be made upon the recommendation by the horsemen,
one upon the recommendation by the breeders, one upon the recommendation
by the AFL-CIO and one would be a representative of OTBs.
-- Ensure that the selection of the VLT operator at Aqueduct would be
subject to unanimous approval by the Governor, Senate and the Assembly.
-- Obligate NYRA to honor all collective bargaining agreements to which
NYRA is currently a party; provide that any party selected to operate
VLTs will enter into project labor agreements with respect to any devel-
opment and that employees of such VLTs and other service industries be
represented by a labor union.
-- Create a Franchise Oversight Board (FOB) made up of five members -
three by the Governor and one each by the Senate and the Assembly. The
FOB would have the following goals: (i) ensure quality racing and growth
of the industry, (ii) raise revenue for education, (iii) ensure integri-
ty and public confidence in the actions of NYRA.
-- Provide that the FOB functions would include but not be limited to:
monitoring NYRA's compliance with the terms of the franchise agreement;
recommending to the Racing and Wagering Board to terminate NYRA's fran-
chise upon NYRA's failure to comply with performance standards; holding
title to the tracks and any improvements thereon; and representing the
State's interest in the VLT facility at Aqueduct and real estate devel-
opment at Belmont.
-- Authorize the FOB to create local advisory boards for each track to
allow for the opportunity to offer input on any development plans
advanced by NYRA or the Oversight Board.
-- Require NYRA's franchise agreement to contain performance standards,
to be reviewed by the FOB every four years, related to racing dates; NY
bred races; stall maintenance; jockey and equine safety; CAFO; back-
stretch operations; and the Saratoga training track.
-- Provide a statutory percentage payment to horsemen and breeders at
NYRA tracks and harness tracks; increased payments to VLT vendors at all
tracks with VLT facilities; increased marketing allowances to VLT opera-
tors; and, capital expenditure allowances for approved capital expense
plans.
JUSTIFICATION:
This legislation ensures that high quality racing will continue to be
conducted in New York State by allowing the New York Racing Association
the opportunity to run racing for the next 25 years; by providing statu-
tory payments to horsemen and breeders; and, by providing capital fund-
ing necessary to make improvements and investments into racing and video
lottery terminal facilities across the state.
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
$105 M appropriation and additional cost to the state as a result of the
reduced vendors fee paid by VLT operators.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
S. 6950 A. 9998
SENATE - ASSEMBLY
February 13, 2008
___________
IN SENATE -- Introduced by Sens. BRUNO, LARKIN, MALTESE -- read twice
and ordered printed, and when printed to be committed to the Committee
on Racing, Gaming and Wagering
IN ASSEMBLY -- Introduced by M. of A. PRETLOW, DESTITO, PHEFFER, SPANO,
GUNTHER, LUPARDO, MAGEE, SEMINERIO, CANESTRARI, McENENY, AUBERTINE,
BENEDETTO, T. GORDON, REILLY -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law and
the real property tax law, in relation to racing corporations and
associations; authorizing the empire state development corporation to
issue bonds for the acquisition of certain racetracks and construction
of video lottery terminal facilities; providing appropriation authori-
ty for the acquisition of certain racetracks; to amend the tax law, in
relation to the disposition of revenues; to amend chapter 281 of the
laws of 1994 amending the racing, pari-mutuel wagering and breeding
law and other laws relating to simulcasting and chapter 346 of the
laws of 1990 amending the racing, pari-mutuel wagering and breeding
law and other laws relating to simulcasting and the imposition of
certain taxes, in relation to extending certain provisions thereof; to
repeal certain provisions of the racing, pari-mutuel wagering and
breeding law relating thereto; and to repeal section 18 of chapter 346
of the laws of 1990 amending the racing, pari-mutuel wagering and
breeding law and other laws relating to simulcasting and the imposi-
tion of certain taxes, relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 102 of the racing, pari-mutuel wagering and breed-
2 ing law is amended to read as follows:
3 § 102. Construction of other laws or provisions. Unless the context
4 shall require otherwise, the terms "state racing commission", "state
5 harness racing commission", "state quarter horse racing commission", or
6 "state off-track pari-mutuel betting commission", wherever occurring in
7 any of the provisions of this chapter or of any other law, or, in any
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15272-02-8
S. 6950 2 A. 9998
1 official books, records, instruments, rules or papers, shall hereafter
2 mean and refer to the state racing and wagering board established by
3 section one hundred one of this chapter. The provisions of article three
4 of this chapter shall be inapplicable to article two of this chapter;
5 and the provisions of such article two shall be inapplicable to such
6 article three, except that section two hundred [twenty-two] thirty-one
7 of such article two shall apply to such article three.
8 § 1-a. Section 104-b of the racing, pari-mutuel wagering and breeding
9 law, as added by chapter 434 of the laws of 2002, is amended to read as
10 follows:
11 § 104-b. Prohibition against wagering on credit. No licensee or fran-
12 chisee authorized by the board to accept pari-mutuel wagers shall
13 directly extend credit for any wager under this chapter.
14 § 2. Section 106 of the racing, pari-mutuel wagering and breeding law
15 is amended to read as follows:
16 § 106. Statement of stockholders to be filed. Every corporation or
17 association authorized under [sections two hundred twenty-two through
18 seven hundred five of] this chapter to conduct pari-mutuel betting at a
19 race meeting or races run thereat shall file with the state racing and
20 wagering board [by which it is licensed] a statement giving the names
21 and addresses of all its stockholders, and shall likewise file revised
22 statements giving such names and addresses from time to time as changes
23 occur.
24 § 3. Subdivision 7 of section 107 of the racing, pari-mutuel wagering
25 and breeding law is amended to read as follows:
26 7. The state racing and wagering board shall have the power to refuse
27 to grant or to revoke or suspend a license of any person, firm, associ-
28 ation or corporation which aids or knowingly permits or conspires to
29 permit any public officer, public employee or party officer to acquire
30 or retain any interest prohibited by this section and shall have the
31 power to exclude from the grounds of any racing association or corpo-
32 ration any such person, firm, association or corporation.
33 § 4. Section 110 of the racing, pari-mutuel wagering and breeding law,
34 as added by chapter 730 of the laws of 1993, is amended to read as
35 follows:
36 § 110. Practice and procedure. The provisions of article twenty-seven
37 of the tax law (except sections one thousand eighty-five and one thou-
38 sand ninety-seven) shall apply to the provisions of this chapter in the
39 same manner and with the same force and effect as if the language of
40 such article had been incorporated in full into this chapter and had
41 expressly referred to the admission taxes, pari-mutuel revenue taxes,
42 the franchise fee on a [non-profit racing association] franchised corpo-
43 ration and unpaid money due on account of pari-mutuel tickets not
44 presented, administered by the commissioner of taxation and finance,
45 under this chapter, with such modifications as may be necessary in order
46 to adapt the language of such provisions to such taxes, fee and unpaid
47 money due, except to the extent that any provision of such article is
48 either inconsistent with a provision of this chapter or is not relevant
49 to this chapter.
50 § 5. Section 112 of the racing, pari-mutuel wagering and breeding law
51 is REPEALED.
52 § 6. Section 201 of the racing, pari-mutuel wagering and breeding law,
53 subdivision 6 as amended by chapter 445 of the laws of 1997, is amended
54 to read as follows:
55 § 201. Incorporation. (a) General requirements. Any number of
56 persons[, not less than five,] may become a corporation for the purpose
S. 6950 3 A. 9998
1 of conducting racing at one or more thoroughbred racetracks, conducting
2 pari-mutuel wagering and furthering the raising and breeding and improv-
3 ing the breed of horses, with all the general powers of corporations
4 created under the laws of this state, by making, signing, acknowledging
5 and filing a certificate which shall contain:
6 1. The name of the proposed corporation.
7 2. The objects for which it is to be formed, including a statement as
8 to whether it is proposed to exercise the particular powers conferred by
9 section two hundred three of this [chapter] article, and specifying
10 whether it is proposed to conduct running[,] or steeplechase race meet-
11 ings [or hunt meetings].
12 3. The amount and description of the capital stock, if applicable.
13 4. The number of shares of which the capital stock, if applicable,
14 shall consist, each of which shall not be less than five nor more than
15 one hundred dollars.
16 5. The location of its principal business office.
17 6. Its duration, which shall [not exceed fifty-seven years] be coter-
18 minous with the term of the franchise.
19 7. The number of its directors[, not less than five nor more than
20 thirteen, who shall each be a stockholder having at least five shares of
21 stock].
22 8. The names and post-office addresses of the directors or incorpora-
23 tors, as applicable, for the first year.
24 9. The post-office addresses of the subscribers and a statement of the
25 number of shares of stock which each agrees to take in the corporation,
26 if applicable.
27 10. The name of the county in which it proposes to conduct running[,]
28 or steeplechase race meetings [or hunt meetings].
29 (b) Approval. No certificate of incorporation under this section wher-
30 ein the right to conduct running or steeplechase race meetings [or hunt
31 meetings] is claimed, shall hereafter be filed without the approval of
32 the state racing and wagering board indorsed thereon or annexed thereto,
33 stating that, in its opinion, the purposes of this article and the
34 public interest will be promoted by such incorporation, and that such
35 incorporation will be conducive to the interests of legitimate racing;
36 nor shall any certificate amending the said certificate of incorporation
37 in any particular or any certificate of merger affecting said corpo-
38 ration be filed without the approval of the state racing and wagering
39 board indorsed thereon or annexed thereto stating that, in its opinion,
40 the purposes of this article and the public interest will be promoted by
41 such amendment or by such merger and that such amendment or such merger
42 will be conducive to the interests of legitimate racing.
43 § 7. Sections 202, 202-a and 202-b of the racing, pari-mutuel wagering
44 and breeding law are REPEALED.
45 § 8. Section 203 of the racing, pari-mutuel wagering and breeding law
46 is amended to read as follows:
47 § [203] 202. Restriction upon commencement of business. No business
48 corporation organized under the provisions of this article shall engage
49 in the prosecution or management of its business until the whole of its
50 capital stock shall have been subscribed, nor until it shall have filed
51 in the offices where certificates of incorporation were filed, a further
52 certificate stating that the whole of its capital stock has been in good
53 faith subscribed, executed and acknowledged by its president or vice-
54 president and treasurer or secretary, and verified by them to the effect
55 that the statements contained in it are true.
S. 6950 4 A. 9998
1 Notwithstanding the foregoing, corporations organized pursuant to
2 section two hundred one of the not-for-profit corporation law as type C
3 corporations shall not engage in the prosecution or management of its
4 business until its certificate of incorporation has been accepted for
5 filing by the secretary of state and such confirmation of filing has
6 been filed with the board and the franchise oversight board.
7 § 8-a. Section 202-c of the racing, pari-mutuel wagering and breeding
8 law, as added by chapter 919 of the laws of 1986, is amended to read as
9 follows:
10 § 202-c. Liability of the [trustees] directors of a [non-profit racing
11 association] franchised corporation. The [trustees] directors of a
12 [non-profit racing association] franchised corporation, and any person
13 or persons acting on their behalf, while acting within the scope of
14 their authority, shall be exempt from any personal liability resulting
15 from carrying out any of the powers expressly given in this chapter,
16 except for acts of malfeasance or gross negligence.
17 § 9. Section 204 of the racing, pari-mutuel wagering and breeding law,
18 as amended by chapter 524 of the laws of 1991, is amended to read as
19 follows:
20 § [204] 203. Right to hold race meetings and races. Any corporation
21 formed under the provisions of this article, if so claimed in its
22 certificate of organization, and if it shall comply with all the
23 provisions of this article, and any other corporation entitled to the
24 benefits and privileges of this article as hereinafter provided, shall
25 have the power and the right to hold one or more running race meetings
26 in each year, and to hold, maintain and conduct running races at such
27 meetings. At such running race meetings the corporation, or the owners
28 of horses engaged in such races, or others who are not participants in
29 the race, may contribute purses, prizes, premiums or stakes to be
30 contested for, but no person or persons other than the owner or owners
31 of a horse or horses contesting in a race shall have any pecuniary
32 interest in a purse, prize, premium or stake contested for in such race,
33 or be entitled to or receive any portion thereof after such race is
34 finished, and the whole of such purse, prize, premium or stake shall be
35 allotted in accordance with the terms and conditions of such race.
36 Races conducted by a [non-profit racing association incorporated in
37 accordance with section two hundred two or two hundred two-a of this
38 chapter] franchised corporation shall be permitted only between sunrise
39 and sunset. A track first licensed after January first, nineteen hundred
40 ninety, shall not conduct the simulcasting of thoroughbred races within
41 district one, in accordance with article ten of this chapter on days
42 that a [non-profit racing association] franchised corporation is not
43 conducting a race meeting. In no event shall thoroughbred races
44 conducted by a track first licensed after January first, nineteen
45 hundred ninety be conducted after eight o'clock post meridian.
46 § 10. Section 205 of the racing, pari-mutuel wagering and breeding
47 law, as amended by chapter 919 of the laws of 1986, is amended to read
48 as follows:
49 § [205] 204. Certificate of payment of stock. Except as provided in
50 this article, no business corporation [or association] hereafter organ-
51 ized under this article or heretofore organized in pursuance of law for
52 any purpose authorized by this article, shall have any of the powers
53 conferred by section two hundred three [hereof] of this article until it
54 shall have filed in the office or offices where its certificate of
55 incorporation was filed, a further certificate stating that its capital
56 stock has been fully paid in cash, and if claiming the right to conduct
S. 6950 5 A. 9998
1 running race meetings, that, except as may be authorized by the board,
2 it actually maintains a racetrack of not less than five-eighths of one
3 mile in length or circumference, the location of which shall be speci-
4 fied in such certificate. [If such corporation or association was organ-
5 ized after the first day of February, nineteen hundred two, and it
6 claims the right to conduct running race meetings, the certificate must
7 also have indorsed thereon, or annexed thereto, the approval of the
8 state racing and wagering board.] Such certificate shall be executed and
9 acknowledged by its president or vice-president and its treasurer or
10 secretary, and verified by them to the effect that the statements
11 contained in it are true. In the case of racing courses to be used for
12 running races or steeplechases, a license from the state racing and
13 wagering board must also be obtained in the manner hereinafter provided,
14 and such license be filed with such certificate.
15 § 11. Section 206 of the racing, pari-mutuel wagering and breeding law
16 is REPEALED.
17 § 12. Section 207 of the racing, pari-mutuel wagering and breeding
18 law, the opening paragraph as amended by chapter 405 of the laws of 1992
19 and the second undesignated paragraph as amended by chapter 327 of the
20 laws of 2001, is amended to read as follows:
21 § [207] 205. License for running races[, steeplechases] and [hunt]
22 steeplechase meetings. Any non-franchised corporation [or association]
23 desiring to obtain the benefits of the provisions of section two hundred
24 [four] three of this [chapter] article, if proposing to conduct a race
25 course or race meeting for running races or steeplechases, may annually
26 apply to the state racing and wagering board for a license to conduct
27 running races and race meetings or steeplechases and steeplechase meet-
28 ings, as the case may be. [In addition the board is authorized to grant
29 a "mixed meeting" license to a track in the Catskill region to conduct
30 up to six thoroughbred races per racing program in conjunction with at
31 least three quarter horse races within such program conducted pursuant
32 to a license granted for such purposes pursuant to article four of this
33 chapter, all such thoroughbred races to be completed prior to eight
34 o'clock post meridian. In order to qualify initially for such mixed
35 meeting license, the licensee must apply therefor prior to June first,
36 nineteen hundred ninety-three. To qualify for such license thereafter,
37 the licensee must have conducted at least one hundred such programs
38 during the prior license year.] If, in the judgment of such board the
39 public interest, convenience or necessity will be served thereby and a
40 proper case for the issuance of such license is shown consistent with
41 the purposes of this article and the best interest of racing generally,
42 it may grant such license, for a term within the calendar year, which
43 shall specify the dates and period of time during which, and the place
44 where, the licensee may operate. The fee for such license shall be one
45 hundred dollars for each racing day payable upon issuance of license. In
46 considering an application for a license under this section, the state
47 racing and wagering board may give consideration to the number of
48 licenses already granted and to the location of the tracks previously
49 licensed. Every such license shall contain a condition that all running
50 races or race meetings conducted thereunder shall be subject to such
51 reasonable rules and regulations from time to time prescribed by the
52 board, designated as the "rules of racing". Before promulgating such
53 rules of racing or modifying or abrogating any of them, the board shall
54 give the jockey club, a corporation organized under the laws of the
55 state of New York, an opportunity to submit recommendations relative to
56 such rules for running races and race meetings, and to the national
S. 6950 6 A. 9998
1 steeplechase and hunt association, a corporation organized under the
2 laws of the state of New York, an opportunity to submit recommendations
3 relative to such rules for steeplechases and steeplechase meetings, and
4 the board may adopt, to the extent that it deems appropriate, any rules
5 so submitted by either of such corporations or by any other nationally
6 recognized association or corporation which has for its purpose the
7 improvement of the breed.
8 [Provided, however, that any corporation or association desirous of
9 conducting a pari-mutuel hunt meeting only on not more than three days
10 in any racing season, may, upon application to the board therefor, and
11 in the entire discretion of such board, receive a license to conduct
12 such meeting, and further provided, that the fee for such pari-mutuel
13 license for a hunt meeting shall be twenty-five dollars for each racing
14 day.]
15 § 13. Section 208 of the racing, pari-mutuel wagering and breeding law
16 is REPEALED.
17 § 14. The racing, pari-mutuel wagering and breeding law is amended by
18 adding five new sections 206, 207, 208, 209 and 210 to read as follows:
19 § 206. Franchise for running races and steeplechase meetings. 1. The
20 franchised corporation referred to in this chapter shall be a not-for-
21 profit corporation to be known as The New York Racing Association, Inc.
22 To the extent that the provisions of the not-for-profit corporation law
23 do not conflict with the provisions of this article, the not-for-profit
24 corporation law shall apply to the franchised corporation and the fran-
25 chised corporation shall be a type C corporation pursuant to the not-
26 for-profit corporation law. If an applicable provision of this article
27 relates to a matter embraced in a provision of the not-for-profit corpo-
28 ration law but is not in conflict therewith, both provisions shall
29 apply. The franchised corporation shall perform its functions under a
30 franchise agreement and such other agreements as may be necessary and
31 appropriate and shall exercise its powers through a board of directors
32 established under section two hundred seven of this article. The fran-
33 chise confers the right and responsibility to manage and operate all
34 functions at the franchise racetracks including but not limited to and
35 subject to appropriate racing laws and regulations the hiring and
36 management of racing secretaries, stewards, race officials, backstretch
37 employees and other equine and racing related functions, establishing
38 the purses, the stakes program and owner's relations, maintenance of the
39 franchise racetracks and associated facilities, the selection of vendors
40 for food, beverage and other concessions and such other activities
41 approved by the franchise oversight board. The franchised corporation,
42 in its discretion, may permit utilization of the state racing franchise
43 lands for business purposes unrelated to racing, provided however that
44 upon written notice from the franchise oversight board with respect to
45 any such activity, the franchised corporation shall cease such utiliza-
46 tion within thirty days in order to allow the franchise oversight board
47 approved development or alternative uses approved by the franchise over-
48 sight board. All franchise rights or interests in assets of the state
49 racing franchise including but not limited to leasehold interests shall
50 be limited to the term of the franchise. Upon expiration, termination or
51 ending of the franchise by any other means provided by law, all fran-
52 chise rights or interest granted to or held by the franchised corpo-
53 ration shall cease and revert to the state.
54 Notwithstanding any provisions of law to the contrary the franchised
55 corporation shall not conduct, manage or otherwise operate video lottery
56 gaming activities on the lands of the state racing franchise.
S. 6950 7 A. 9998
1 2. The franchised corporation shall, upon acceptance of the franchise,
2 franchise agreements and all enumerated conditions, be granted a fran-
3 chise for a period of not more than twenty-five years, ending December
4 thirty-first, two thousand thirty-three.
5 3. Upon acceptance of the franchise, the franchisee's corporate dura-
6 tion shall be made coterminous with the expiration, revocation or relin-
7 quishment of such franchise. Such length of duration shall be deemed to
8 be incorporated within and made part of the certificate of incorporation
9 of the franchised corporation and no amendment to such certificate to
10 incorporate any such provision shall be necessary to give effect to any
11 such provision and that any provision contained within such certificate
12 inconsistent in any manner with the provisions contained within this
13 section shall be null and void and cease to be of effect and shall be
14 superseded by the provisions of this section. The dissolution provisions
15 of articles ten and eleven of the not-for-profit corporation law shall
16 apply upon the expiration, revocation or relinquishment of such fran-
17 chise.
18 4. The franchised corporation shall not commence operation until
19 by-laws and a corporate governance code of conduct are adopted by its
20 board of directors. Such by-laws and code shall ensure the franchised
21 corporation is operated in an efficient and transparent manner, with the
22 highest degree of integrity and is fully accountable to the people of
23 the state of New York.
24 5. The franchised corporation shall comply with all applicable laws
25 and regulations and retain an independent business integrity counsel,
26 who, among other things, will act as an independent source to help
27 ensure the integrity of the franchised corporation, its officers and
28 employees, and its operations.
29 6. The franchised corporation shall honor and be bound by all collec-
30 tive bargaining agreements to which the previous franchise holder was a
31 party for their remaining term.
32 The franchised corporation shall, upon the request of an off-track
33 betting corporation, purchase simulcasting rights jointly with the off-
34 track betting corporation so that the off-track betting corporation pays
35 the same price for the purchased simulcasting rights that the franchised
36 corporation pays. To the extent permitted by law, the franchised corpo-
37 ration shall also share simulcasting pricing information in the market
38 with off-track betting corporations;
39 7. The franchised corporation shall conduct public meetings in cooper-
40 ation with local advisory boards established pursuant to section two
41 hundred twelve of this article within one hundred eighty days following
42 the effective date of this section on or near the racetrack facilities
43 of Aqueduct, Belmont and Saratoga. Thereafter, public meetings shall be
44 held no less than twice yearly in cooperation with the local advisory
45 boards established pursuant to section two hundred twelve of the racing,
46 pari-mutuel wagering and breeding law, in order to solicit the concerns
47 of the community surrounding the respective racing operations.
48 § 207. Board of directors of a franchised corporation. 1. a. The board
49 of directors shall consist of twenty-five members, fourteen of whom may
50 consist of board members serving on the New York Racing Association,
51 Inc. board at the time of enactment of this section and shall be
52 selected in a manner and for terms to be prescribed by the New York
53 Racing Association, Inc., which shall also fill any vacancies in those
54 positions; and the remaining eleven shall be appointed by public offi-
55 cers, subject to removal and replacement by their appointing authority,
56 and shall be comprised of seven members appointed by the governor of
S. 6950 8 A. 9998
1 whom one shall be appointed by the governor and shall be a current or
2 former officer or director of a New York state off-track betting corpo-
3 ration, of whom one shall be appointed by the governor upon the recom-
4 mendation of the New York Thoroughbred Breeders Inc., of whom one shall
5 be appointed by the governor upon the recommendation of the New York
6 thoroughbred horsemen's association (or such other entity as is certi-
7 fied and approved pursuant to section two hundred twenty-eight of this
8 chapter), and of whom one shall be appointed by the governor upon the
9 recommendation of the New York state American Federation of Labor and
10 Congress of Industrial Organizations, two of whom shall be appointed by
11 the temporary president of the senate, and two of whom shall be
12 appointed by the speaker of the assembly. Board members shall elect from
13 its members a chair and a vice-chair who shall act as chair in the
14 absence of the chair, and the initial chair shall serve for no longer
15 than four years. All board members shall have equal voting rights.
16 b. The franchised corporation shall establish a compensation committee
17 to fix salary guidelines, such guidelines to be consistent with an oper-
18 ation of other first class thoroughbred racing operations in the United
19 States; a finance committee, to review annual operating and capital
20 budgets for each of the three racetracks; a nominating committee, to
21 nominate any new directors to be designated by the franchised corpo-
22 ration to replace its existing directors; and an executive committee.
23 Each of the compensation, finance, nominating and executive committees
24 shall include at least one of the directors appointed by the governor,
25 and the executive committee shall include at least one of the directors
26 appointed by the temporary president of the senate and at least one of
27 the directors appointed by the speaker of the assembly.
28 2. Members of the board of directors shall serve without compensation
29 for their services, but publicly appointed members of the board shall be
30 entitled to reimbursement from the franchised corporation for actual and
31 necessary expenses incurred in the performance of their official duties.
32 3. Members of the board of directors, except as otherwise provided by
33 law, may engage in private employment, or in a profession or business,
34 however no member shall have any direct or indirect economic interest in
35 any video lottery gaming facility, excluding incidental benefits based
36 on purses or awards won in the ordinary conduct of racing operations, or
37 any direct or indirect interest in any development undertaken at the
38 racetracks of the state racing franchise.
39 4. The affirmative vote of a majority of members of the board of
40 directors shall be necessary for the transaction of any business or the
41 exercise of any power or function of the franchised corporation. The
42 franchised corporation may delegate on an annual basis to one or more of
43 its members, or its officers, agents or employees, such powers and
44 duties as it may deem proper.
45 § 208. Conditions of franchise award. 1. In consideration of the
46 franchise and in accordance with its franchise agreement, the franchised
47 corporation shall remit to the state, each year, no later than April
48 fifth, a franchise fee payment. The franchise fee payment is calculated
49 as follows: adjusted net income: including all sources of audited gener-
50 ally accepted accounting principles net income as of December thirty-
51 first, plus (i) the amount of depreciation and amortization for such
52 year set forth on the statement of cash flows (ii) less the amount
53 received by the franchised corporation for capital expenditures and
54 (iii) less principal payments made for the repayment of debt. The fran-
55 chised corporation shall remit this payment as long as its operating
56 cash is at an amount greater than the average of the current year's
S. 6950 9 A. 9998
1 budgeted forty-five days of generally accepted accounting principles
2 Operating Expenses. Operating cash is defined as cash used exclusively
3 for operations and excludes all restricted cash accounts, segregated
4 accounts as per audited financial statements and cash on hand needed to
5 fund the on-track pari-mutuel operations through the vault.
6 2. As a condition of franchise acceptance, the franchised corporation
7 and its predecessor shall irrevocably relinquish any present or future
8 rights that it might have, or might claim, with respect to thoroughbred
9 racing facilities and associated assets located in Queens county, Sara-
10 toga county and jointly located in Nassau and Queens counties whereat
11 running races, steeplechases or race meetings and pari-mutuel betting on
12 the outcome of the same have been conducted, including (a) all the land
13 underlying the racetracks, (b) all improvements thereon and all physical
14 assets thereon, and (c) all assets associated with the franchise and the
15 operation of the racetracks, including, without limitation all rights to
16 intellectual property and simulcasting now existing or hereafter
17 created, and any and all franchise rights or interests in such assets
18 including but not limited to leasehold improvements and interests. The
19 franchised corporation shall take all appropriate action as soon as
20 possible, but in no event later than one hundred eighty days following
21 an order of confirmation by the bankruptcy court to ensure that the
22 state is vested with unencumbered ownership in the real estate for the
23 three racetracks, including all improvements thereon.
24 3. As a condition of franchise acceptance, the franchised corporation
25 shall make application with the racing and wagering board for live
26 thoroughbred racing dates at thoroughbred racing facilities located in
27 Queens county, Saratoga county and jointly located in Nassau and Queens
28 counties in a manner substantially similar to the racing dates presently
29 undertaken.
30 4. As a condition of franchise acceptance, the franchised corporation
31 shall agree that it will conduct running races, steeplechases and race
32 meetings in accordance with the provisions thereof and that all running
33 races, steeplechases or race meetings conducted thereunder shall be
34 subject to such reasonable rules and regulations from time to time
35 prescribed by the state racing and wagering board.
36 4-a. As a condition of franchise acceptance, the franchised corpo-
37 ration shall enter into a franchise agreement that shall require such
38 franchised corporation to use its best efforts to satisfy performance
39 standards, measured every four years by the franchise oversight board.
40 Such performance standards shall relate to racing dates, New York bred
41 horse races, horse stalls, jockey and equine safety, state concentrated
42 animal feeding operation, backstretch conditions, the Saratoga training
43 facility, handle and attendance, purses, expenses of the franchised
44 corporation, and the communities surrounding Aqueduct racetrack, Belmont
45 Park racetrack and the Saratoga race course. As a condition of franchise
46 acceptance, the franchised corporation shall continue to lease for nomi-
47 nal consideration the ballfield property near the Aqueduct racetrack
48 that includes block 11535 of lots 62, 118, 119, 127, 129 and 138; block
49 11536 of lots 73, 110 and 113; block 11551 of lots 5, 9, 10, 12, 14 and
50 110; and block 11562 of lot 204 in Queens County, as a ballfield for the
51 appropriate community organization, and convey the parcel near the Aque-
52 duct racetrack that includes blocks 11558 and 11560 of lot 1 in Queens
53 county to the New York city public school construction authority should
54 such authority desire and commit to purchase such parcel at fair market
55 value.
S. 6950 10 A. 9998
1 5. A franchise may be revoked and cancelled by the state racing and
2 wagering board only for the reasons and in the manner prescribed under
3 the provisions of sections two hundred twelve and two hundred forty-four
4 of this article. The action of the state racing and wagering board in
5 revoking a franchise shall be reviewable in the supreme court in the
6 manner provided by and subject to the provisions of article seventy-
7 eight of the civil practice law and rules.
8 6. (a) All contracts entered into by the franchised corporation for
9 the procurement of goods or services shall be pursuant to a competitive
10 bidding purchasing policy approved by the franchise oversight board.
11 (b) In its review of the contracts pursuant to this section in any
12 contract in excess of one hundred thousand dollars, the franchise over-
13 sight board may review the character and fitness of the entity or its
14 principals entering into contracts with a franchised corporation and
15 provided further the oversight board may require such information as it
16 deems necessary including the power to subpoena such books, records, and
17 other pertinent information related to the contracts from the contractor
18 or vendor of any contract.
19 7. Notwithstanding the provisions of section seven of the general
20 business law, or any other inconsistent provision of general, special or
21 local law, the state racing and wagering board shall specify annually
22 the dates on which, and the hour of the first post time for days during
23 which, such franchised corporation may operate at the places and for the
24 full number of days specified in its franchise.
25 8. The state racing and wagering board shall permit the franchised
26 corporation to conduct pari-mutuel betting in the manner and subject to
27 the conditions prescribed by this chapter, at the racetracks described
28 in such racing franchise for the duration of such racing franchise.
29 9. (a) The franchised corporation shall maintain a separate account
30 for all funds held on deposit in trust by the corporation for individual
31 horsemen's accounts. Purse funds shall be paid by the corporation as
32 required to meet its purse payment obligations. Funds held in horsemen's
33 accounts shall only be released or applied as requested and directed by
34 the individual horseman.
35 (b) Unless otherwise permitted by written agreement with the
36 horsemen's organization recognized pursuant to section two hundred twen-
37 ty-eight of this article the franchised corporation shall fund purses in
38 an amount (on an annual basis and not a per-race basis) in excess of
39 that required by this chapter, so as to reduce the purse cushion at the
40 end of each calendar year by the amount set forth below:
41 YearReduction of PurseMaximum Purse Cushion at
42 Cushion for Calendar YearYear End Not to Exceed
43 2008$0$20.0 million
44 2009$1.0 million$19.0 million
45 2010$1.0 million$18.0 million
46 2011$2.0 million$16.0 million
47 2012$2.0 million$14.0 million
48 2013$3.0 million$11.0 million
49 2014$3.0 million$8.0 million
50 2015$2.0 million$6.0 million
51 Thereafter the maximum purse cushion at year end shall not exceed $6.0
52 million.
53 (c) The account shall be subject to annual audit by a certified public
54 accountant approved and paid by the appropriately recognized horsemen's
55 organization.
S. 6950 11 A. 9998
1 § 209. State comptroller responsibility. Notwithstanding any other
2 provision of this article, the state comptroller may from time to time
3 at the request of the franchise oversight board, examine the books and
4 accounts of such franchised corporation and any other matters relating
5 to its financial operations and report the results of each audit to the
6 governor, the legislature, the attorney general, the franchise oversight
7 board and the state racing and wagering board.
8 § 210. Franchise termination. Upon receiving notification, in accord-
9 ance with the provisions of section two hundred ten-a of this article,
10 from any franchised corporation that it intends to relinquish such fran-
11 chise prior to the expiration date of such franchise, or that such fran-
12 chised corporation intends to end its corporate existence prior to such
13 expiration date, or upon the revocation of such franchise or exclusive
14 right to operate and maintain such franchise, the franchise oversight
15 board shall take such action as is necessary to assure the continuation
16 of the racing and pari-mutuel activities at the racing facilities oper-
17 ated pursuant to the franchise agreement.
18 § 15. Section 208-a of the racing, pari-mutuel wagering and breeding
19 law, as added by chapter 1006 of the laws of 1983, subdivision 1 as
20 amended by chapter 1007 of the laws of 1983 and subdivision 4 as amended
21 by chapter 445 of the laws of 1997, is amended to read as follows:
22 § [208-a] 210-a. Relinquishment of [franchises by nonprofit racing
23 association] franchise. 1. No [nonprofit racing association] franchised
24 corporation shall relinquish a franchise granted to it pursuant to
25 section two hundred [eight] six of this [chapter or a franchise granted
26 to it pursuant to section two hundred twenty-four of this chapter] arti-
27 cle at any time within the term of any such [franchises] franchise with-
28 out giving separate written notification of its intention to effect
29 relinquishment by certified mail return receipt requested to the [New
30 York state thoroughbred racing capital investment fund and] franchise
31 oversight board and the state racing and wagering board not less than
32 one hundred eighty days prior to the date such [association] franchised
33 corporation proposes to be the effective date of relinquishment.
34 2. Such [an association] a franchised corporation shall not present a
35 certificate of dissolution of its corporate existence under article ten
36 of the [business] not-for-profit corporation law to the department of
37 state with the consent required by law attached thereto for a period of
38 at least one hundred eighty days following the date that the association
39 elected to dissolve its corporate status in the manner authorized by the
40 provisions of such article.
41 3. Such [an association] a franchised corporation also shall not pres-
42 ent a petition for judicial dissolution of its corporate existence to a
43 court pursuant to the provisions of [section] article eleven [hundred
44 six of such law under the provisions of section eleven hundred two,
45 eleven hundred three or eleven hundred four of such law or any combina-
46 tion of such sections] of the not-for-profit corporation law for a peri-
47 od of at least one hundred eighty days following the date that action
48 was completed under section eleven hundred two[, eleven hundred three or
49 eleven hundred four of such law or any combination of such sections] of
50 the not-for-profit corporation law authorizing the presentation of such
51 petition and the [association] franchised corporation agrees to name the
52 [fund] franchise oversight board in the petition for the purpose of
53 enabling the [fund] franchise oversight board to receive a copy of any
54 order to show cause made by a court under the provisions of [such]
55 section eleven hundred [six] four of the not-for-profit corporation law.
S. 6950 12 A. 9998
1 4. [Such an association during the term of such a franchise shall not
2 sell or liquidate any of its racing facilities without the prior written
3 approval of both the board of the New York state thoroughbred racing
4 capital investment fund and the New York state racing and wagering board
5 in the manner provided by section two hundred nine-a of this chapter and
6 after January first, nineteen hundred ninety-eight, shall not convey any
7 existing racing facility without a law authorizing such conveyance.]
8 If the franchised corporation voluntarily relinquishes its franchise
9 prior to expiration, or voluntarily declines to continue conducting race
10 meetings and pari-mutuel betting on the races run at such race meetings
11 as required by its franchises unless such declination is the result of
12 strikes, acts of God, or other unavoidable causes not under the control
13 of such franchised corporation, or voluntarily affects corporate dissol-
14 ution in the manner provided for by article ten or eleven of the not-
15 for-profit corporation law and other applicable provisions of law, or if
16 such franchise is revoked by the board, then, notwithstanding any other
17 provision of law to the contrary, the franchised corporation shall
18 transfer to the franchise oversight board at the time of such relin-
19 quishment, declination, revocation or dissolution all right, title and
20 interest held by such franchised corporation in all such facilities and
21 associated assets, and all capital improvements made to the real proper-
22 ty and such facilities.
23 § 16. Section 208-b of the racing, pari-mutuel wagering and breeding
24 law, as added by chapter 354 of the laws of 2005, is amended to read as
25 follows:
26 § [208-b] 212. [Non-profit racing association oversight board] Fran-
27 chise oversight board. 1. There is hereby created a [non-profit racing
28 association] franchise oversight board [consisting of five members
29 appointed by the governor, herein referred to in this section as the
30 board] which shall consist of five members appointed by the governor.
31 Of the five members, one shall be appointed upon the recommendation of
32 the temporary president of the senate and one shall be appointed upon
33 the recommendation of the speaker of the assembly. [Each member] Of the
34 initially appointed board, one member appointed by the governor shall
35 serve for a one year term, one member appointed by the governor shall
36 serve for a two year term, one member appointed by the governor shall
37 serve for a three year term, while each of the members appointed by the
38 governor upon the recommendation of the temporary president of the
39 senate and upon the recommendation of the speaker of the assembly shall
40 serve for a four year term. All successors shall serve for a term of
41 four years. All members shall continue in office until their successors
42 have been appointed and qualified. The governor shall designate the
43 chair from among the sitting members who shall serve as such at the
44 pleasure of the governor.
45 2. The members shall serve without compensation for their services as
46 members, but shall be entitled to reimbursement for actual and necessary
47 expenses incurred in the performance of their duties. The state shall
48 save harmless and indemnify members of the board and any officer,
49 employee, agent or other person or persons pursuant to section seventeen
50 of the public officers law against any claim, demand, suit or judgment
51 arising by reason of any act or omission to act by such member, officer,
52 employee, agent or person occurring in the discharge of his or her
53 duties and within the scope of his or her service on behalf of the fran-
54 chise oversight board.
55 3. Such members, except as otherwise provided by law, may engage in
56 private or public employment, or in a profession or business. The board,
S. 6950 13 A. 9998
1 its members, officers and employees shall be subject to the provisions
2 of sections seventy-three and seventy-four of the public officers law.
3 No [current] former trustee or officer of a non-profit racing associ-
4 ation [and no] known as The New York Racing Association, Inc. or its
5 predecessor, no current director or officer of a franchised corporation
6 or any individual registered with the [temporary state commission on
7 lobbying] New York commission on public integrity shall be appointed as
8 members to the board nor shall any member of the board have any direct
9 or indirect interest in any racehorse, thoroughbred racing or pari-mutu-
10 el wagering business, video lottery terminal facility or any development
11 at any racing facility.
12 4. Notwithstanding any inconsistent provisions of law, general,
13 special or local, no officer or employee of the state or of any civil
14 division thereof shall be deemed to have forfeited or shall forfeit
15 their office or employment by reason of their acceptance of membership
16 on the board created by this section.
17 5. The affirmative vote of three members shall be necessary for the
18 transaction of any business or the exercise of any power or function of
19 the franchise oversight board except as otherwise provided here in this
20 article.
21 [6. Notwithstanding any other law to the contrary, the board shall be
22 directed and is authorized to oversee, monitor and review all trans-
23 actions and operations of a non-profit racing association authorized by
24 this chapter; provided, however, that nothing in this section shall be
25 deemed to reduce, diminish or impede the authority of the state racing
26 and wagering board to, pursuant to article one of this chapter, deter-
27 mine and enforce compliance by a non-profit racing association. Such
28 oversight shall include, but not be limited to:
29 a. review and make recommendations concerning the annual operating
30 budgets of such non-profit racing association which shall include peri-
31 odic adjustments as determined by the board;
32 b. review and make recommendations concerning operating revenues and
33 the establishment of a financial plan which extends through the fran-
34 chise period of such non-profit racing association as authorized by
35 section two hundred eight of this article;
36 c. review and make recommendations concerning accounting, internal
37 control systems and security procedures;
38 d. review and make recommendations concerning such non-profit racing
39 association's revenue and expenditure policies which shall include
40 collective bargaining agreements management and employee compensation
41 plans, vendor contracts and capital improvement plans;
42 e. review and approve such non-profit racing association's compliance
43 with the laws, rules and regulations applicable to its activities;
44 f. receive, review, approve or disapprove capital plans submitted
45 annually by the non-profit racing association. A capital plan shall be
46 approved only where it is determined that it is consistent with the
47 state's interest and financially feasible; and
48 g. make recommendations for establishing model governance principles
49 to improve accountability and transparency.
50 7. Recommendations of the board shall be approved and implemented by
51 the board of trustees of such non-profit racing association in a timely
52 manner. If such board of trustees fails or refuses to approve or imple-
53 ment any recommendation of the board, the trustees shall respond to the
54 board, in writing, within thirty days of such recommendation, setting
55 forth the reasons such recommendation or recommendations were not
56 approved.
S. 6950 14 A. 9998
1 8. The board shall be an authorized licensee to operate video lottery
2 gaming at Aqueduct racetrack in the event of revocation or expiration of
3 the franchise granted to a non-profit racing association in accordance
4 with section two hundred eight of this article.
5 9. The board shall report quarterly to the governor and the legisla-
6 ture, beginning no later than December thirty-first, two thousand five,
7 stating its findings and recommendations to implement policy and legis-
8 lative changes necessary to encourage the continuation of high quality
9 thoroughbred racing in New York state and to protect the legitimate
10 interests of the state and the thoroughbred racing industry.
11 10. Any franchised or licensed non-profit racing association shall
12 make all records and documents pertaining to its financial practices,
13 and other documents and records necessary to carry out its duties,
14 available to the board upon request and within thirty days of such
15 request.
16 11. The board shall have the power, at any time, to examine or cause
17 to be examined by a third party, the books, papers, records and accounts
18 of any non-profit racing association. The non-profit racing association
19 shall reimburse the board for the actual costs incurred in conducting
20 such examination.
21 12. The board shall utilize employees of the state racing and wagering
22 board to carry out its duties.]
23 6. Within thirty days following the appointment of the members of the
24 franchise oversight board, the members of the oversight board shall
25 establish a local advisory board for each racing operation comprised of
26 the following members to meet at least twice yearly:
27 a. The local advisory board for the Saratoga racetrack facility shall
28 be comprised of fifteen members and include five designees from each of
29 the following: the board of supervisors, the mayor of the city of Sara-
30 toga and the franchised corporation.
31 b. The local advisory board for the Aqueduct racetrack facility shall
32 be comprised of fifteen members, nine of whom shall be designees of New
33 York City Queens Community Board Ten, three designees of the franchised
34 corporation and three designees of the video lottery gaming operator.
35 The members of the local advisory boards shall serve for a period of
36 two years. In the event of a vacancy occurring during a term of appoint-
37 ment by reason of death, resignation, disqualification or otherwise such
38 vacancy shall be filled for the unexpired term in the same manner as the
39 original appointment. The members of the local advisory board shall
40 serve without compensation, except that each member shall be allowed the
41 necessary and actual expenses incurred in the performance of his or her
42 duties pursuant to this section.
43 7. The Saratoga local advisory boards in cooperation with the state
44 historic preservation office and the franchise oversight board shall
45 compile a complete, updated historic resources inventory identifying all
46 buildings and landscape features and their current condition at the
47 Saratoga Racecourse. The local advisory board may, at its discretion, in
48 the performance of its responsibilities, seek advice from groups or
49 individuals with relevant expertise.
50 All buildings and landscaped features of historic, architectural or
51 cultural significance at the Saratoga Racecourse may be advanced by the
52 local advisory board for consideration for inclusion in the National and
53 State Registers of Historic Places and in local historic districts.
54 8. a. The duties and responsibilities of the franchise oversight board
55 shall include, but not be limited to, the following:
S. 6950 15 A. 9998
1 (i) represent the interests of the state in all real estate develop-
2 ment proposed for Aqueduct racetrack or real estate development at
3 Belmont Park racetrack. Any such real estate development shall only be
4 undertaken pursuant to a competitive process approved by the board,
5 after consultation with the applicable local advisory boards and consid-
6 eration of local zoning and planning regulation, and in a manner that
7 will not adversely impact any historic structure that is included in or
8 eligible for inclusion in the National or the State Register of Historic
9 Places, be consistent with any plan approved for such community, and
10 shall be subject to unanimous approval of the franchise oversight board
11 and all statutory and regulatory requirements; provided, however, that,
12 subject to approval of the franchise oversight board and subject to all
13 statutory and regulatory requirements, the franchised corporation shall
14 have full powers and rights to develop, redevelop, refurbish, renovate
15 or make such other improvements, capital expenditures or otherwise, to
16 the racetracks and the fixtures and improvements thereon consistent with
17 projects specifically identified in the franchised corporation's
18 approved track facility improvement plan.
19 The franchise oversight board shall be guided by the goals of ensuring
20 the continuation of high quality thoroughbred racing at the thoroughbred
21 racing facilities located within the state, raising revenue for or in
22 aid or support of education in this state from video lottery gaming at
23 facilities of the state racing franchise, and maximizing revenue for
24 governments from pari-mutuel wagering on racing at facilities of the
25 state racing franchise.
26 (ii) monitor and enforce compliance with definitive documents that
27 comprise the franchise agreement between the franchised corporation and
28 the state of New York governing the franchised corporation's operation
29 of thoroughbred racing and pari-mutuel wagering at the racetracks. The
30 franchise agreement shall contain objective performance standards that
31 shall allow contract review in a manner consistent with this chapter.
32 The franchise oversight board shall notify the franchised corporation
33 authorized by this chapter in writing of any material breach of the
34 performance standards or repeated non-material breaches which the fran-
35 chise oversight board may determine collectively constitute a material
36 breach of the performance standards. Prior to taking any action against
37 such franchised corporation, the franchise oversight board shall provide
38 the franchised corporation with the reasonable opportunity to cure any
39 material breach of the performance standards or repeated non-material
40 breaches which the franchise oversight board may determine collectively
41 constitute a material breach of the performance standards. Upon a writ-
42 ten finding of a material breach of the performance standards or
43 repeated non-material breaches which the franchise oversight board may
44 determine collectively constitute a material breach of the performance
45 standards, the franchise oversight board may recommend that the fran-
46 chise agreement be terminated. The franchise oversight board shall refer
47 such recommendation to the racing and wagering board for a hearing
48 conducted pursuant to section two hundred forty-five of this article for
49 a determination of whether to terminate the franchise agreement with the
50 franchised corporation;
51 (iii) oversee, monitor and review all significant transactions and
52 operations of the franchised corporation authorized by this chapter;
53 provided, however, that nothing in this section shall be deemed to
54 reduce, diminish or impede the authority of the state racing and wager-
55 ing board to, pursuant to article one of this chapter, determine and
56 enforce compliance by the franchised corporation with terms of racing
S. 6950 16 A. 9998
1 laws and regulations. Such oversight shall include, but not be limited
2 to:
3 (A) review and make recommendations concerning the annual operating
4 budgets of such franchised corporation;
5 (B) review and make recommendations concerning operating revenues and
6 the establishment of a financial plan;
7 (C) review and make recommendations concerning accounting, internal
8 control systems and security procedures;
9 (D) review such franchised corporation's revenue and expenditure
10 polices which shall include collective bargaining agreements management
11 and employee compensation plans, vendor contracts and capital improve-
12 ment plans;
13 (E) review such franchise corporation's compliance with the laws,
14 rules and regulations applicable to its activities;
15 (F) make recommendations for establishing model governance principles
16 to improve accountability and transparency; and
17 (G) receive, review, approve or disapprove capital expense plans
18 submitted annually by the franchised corporation.
19 (iv) evaluate, review and approve the racing franchisee's selection of
20 a vendor or vendors to contract with the franchised corporation for
21 provision of totalizator services, and manage, subject to the franchised
22 corporation's unilateral right to opt out, directly or indirectly, inte-
23 gration of any offered internet wagering platform. The franchise over-
24 sight board shall consider in its evaluation of any such proposed vendor
25 their ability to reduce the totalizator expenses and general development
26 and production costs of any internet wagering platform of an authorized
27 off-track betting corporation and the state racing franchise holder.
28 (v) facilitate discussions and voluntary agreements between the fran-
29 chised corporation and off-track betting corporations to streamline
30 operations, decrease operating costs and maximize opportunities pertain-
31 ing to costs and revenues, and encourage an exchange of views and expe-
32 riences from the franchised corporation and the off-track betting corpo-
33 rations to improve the racing product in New York and to realize
34 efficiencies;
35 (vi) review and approve all purchasing policies pursuant to paragraph
36 (a) of subdivision six of section two hundred eight of this article;
37 (vii) review and provide any recommendations on all simulcasting
38 contracts (buy and sell) that are also subject to prior approval of the
39 racing and wagering board;
40 (viii) enter into on behalf of the state as lessor, one or more ground
41 leases, for one dollar in consideration annually, for each of Aqueduct
42 racetrack, Belmont Park and Saratoga racecourse to the franchised corpo-
43 ration, for a term that will extend until the racing franchise expires,
44 is revoked, terminated or ends by any other means provided by law. Such
45 leases shall be executed contemporaneously with the conveyance of the
46 racetracks by the franchised corporation's predecessor to the state;
47 (ix) enter into on behalf of the state as licensor, a long term
48 license agreement with the franchised corporation for the use of the
49 simulcast signal and associated intellectual property rights, for
50 consideration of one dollar annually and for a term that will extend
51 until the racing franchise expires, is revoked, terminated or ends by
52 any other means provided by law. Such license agreement shall be
53 executed contemporaneously with the conveyance of the franchised corpo-
54 ration's assets associated with the franchise agreement.
55 (x) conduct running races or steeplechases at racing facilities and
56 conduct pari-mutuel betting on the outcome of the same when necessary to
S. 6950 17 A. 9998
1 assure the continuation of the racing and pari-mutuel betting activities
2 at such racing facilities (A) in the event that the racing and/or pari-
3 mutuel betting franchises of the franchised corporation authorized by
4 this chapter then holding such franchises have either been terminated in
5 the manner provided by law or have been relinquished by such corpo-
6 ration, or such corporation declines to continue conducting race meet-
7 ings and pari-mutuel betting on the outcome of the same as required by
8 such franchises unless such declination is the result of strikes, acts
9 of God, or other unavoidable causes not under the control of such corpo-
10 ration, or the corporate existence of such corporation has been
11 dissolved in the manner provided by law prior to the end of the term of
12 any such franchise and (B) until such time as a new franchise is grant-
13 ed;
14 (xi) as lessor of the racing facilities and real estate, be responsi-
15 ble for payment of all property taxes related to such racing facilities
16 and real estate.
17 (xii) report annually to the governor and the legislature, beginning
18 no later than December thirty-first, two thousand eight, stating its
19 findings and recommendations to implement policy and legislative changes
20 necessary to encourage the continuation of high quality thoroughbred
21 racing in New York state and to protect the legitimate interests of the
22 state and the thoroughbred racing industry;
23 (xiii) require the franchised corporation to make all records and
24 documents pertaining to its financial practices, and other documents and
25 records necessary to carry out its duties, available to the franchise
26 oversight board within thirty days of a written request;
27 (xiv) examine or cause to be examined by a third party, the books,
28 papers, records and accounts of the franchised corporation;
29 (xv) sue and be sued;
30 (xvi) make and execute contracts and all other instruments necessary
31 or convenient for the exercise of its powers and functions under this
32 article;
33 (xvii) request and accept the assistance of any state agency, includ-
34 ing but not limited to, the racing and wagering board, the division of
35 the lottery office of parks, recreation and historic preservation, the
36 department of environmental conservation and the department of taxation
37 and finance, in obtaining information related to the franchised corpo-
38 ration's compliance with the terms of the franchise agreement; and
39 (xviii) do all things necessary, convenient or desirable to carry out
40 its purposes and for the exercise of the powers granted in this article.
41 b. Notwithstanding any other provision of this article, the franchised
42 corporation shall be entitled to make capital expenditures, except those
43 capital expenditures for the Saratoga Racecourse that may, on the advice
44 of the New York state historic preservation office, adversely impact any
45 historic structure that is included in or is eligible for inclusion in
46 the national or state register of historic places, to the physical plant
47 of the racetracks, grandstand, backstretch, parking and public areas set
48 forth in the New York Racing Association's capital expenditure plan
49 ("capital plan") filed with the racing and wagering board in two thou-
50 sand seven. Any material modification to the capital plan as determined
51 by the franchise oversight board and each future capital investment plan
52 for the tracks, grandstand, backstretch, parking and public areas of the
53 racetracks operated by the franchised corporation involving the expendi-
54 ture of more than five million dollars in the aggregate shall require
55 the prior approval of the franchise oversight board. Within five years
56 from the date of commencement of the video lottery terminal operations
S. 6950 18 A. 9998
1 at Aqueduct, and every five years thereafter, the franchised corporation
2 shall submit to the oversight board a capital plan for the five year
3 period commencing on January first of the following year. Such plans
4 shall contain both the intended object of expenditure and the proposed
5 sources of financing. The franchised corporation shall report to the
6 franchise oversight board within ninety days following the end of each
7 fiscal year as to the amount spent pursuant to the capital plan.
8 § 16-a. The racing, pari-mutuel wagering and breeding law is amended
9 by adding a new section 213 to read as follows:
10 § 213. Project labor agreements. 1. For the purposes of this section,
11 "project labor agreement" shall mean a pre-hire collective bargaining
12 agreement between a contractor and the labor organization, including an
13 organization composed of more than one labor union, determined by the
14 franchise oversight board as representing the largest number of employ-
15 ees likely to work on the project, establishing the labor organization
16 as the collective bargaining representative for all persons who will
17 perform work on the project, and which provides that only contractors
18 and subcontractors who sign a pre-negotiated agreement with the labor
19 organization can perform project work.
20 2. Notwithstanding the provisions of any general, special, or local
21 law to the contrary, in regard to the video gaming terminal facility or
22 related development at a thoroughbred racing facility:
23 (a) The franchise oversight board may require a contractor awarded a
24 contract, subcontract, lease, grant, bond, covenant or other agreement
25 for a project to enter into a project labor agreement during and for the
26 work involved with such project when such requirement is part of the
27 franchise oversight board's request for proposals for the project and
28 when the franchise oversight board determines that the record supporting
29 the decision to enter into such an agreement establishes that the inter-
30 ests underlying the competitive bidding laws are best met by requiring a
31 project labor agreement including: obtaining the best work at the lowest
32 possible price; preventing favoritism, fraud and corruption; the impact
33 of delay; the possibility of cost savings; and any local history of
34 labor unrest.
35 (b) Any contract to which the franchise oversight board is a party,
36 and any contract entered into by a third party acting in place of, on
37 behalf of and for the benefit of the franchise oversight board pursuant
38 to any lease, permit or other agreement between such third party and the
39 franchise oversight board, for the construction, reconstruction, demoli-
40 tion, excavation, rehabilitation, repair, renovation, alteration, or
41 improvement, of a project undertaken pursuant to this chapter, shall be
42 subject to all of the provisions of article eight of the labor law,
43 including the enforcement of prevailing wage requirements by the fiscal
44 officer as defined in paragraph e of subdivision five of section two
45 hundred twenty of the labor law to the same extent as a contract of the
46 state, and shall be deemed public work for purposes of such article.
47 (c) Every contract entered into by the franchise oversight board for a
48 project shall contain a provision that the contractor shall furnish a
49 labor and material bond guaranteeing prompt payment of moneys that are
50 due to all persons furnishing labor and materials pursuant to the
51 requirements of any contracts for a project undertaken pursuant to this
52 section and a performance bond for the faithful performance of the
53 project, which shall conform to the provisions of section one hundred
54 three-f of the general municipal law, and that a copy of such perform-
55 ance and payment bonds shall be kept by the franchise oversight board
56 and shall be open to public inspection.
S. 6950 19 A. 9998
1 (d) For the purposes of article fifteen-A of the executive law, any
2 person entering into a contract for a project authorized pursuant to
3 this section shall be deemed a state agency as that term is defined in
4 such article and such contracts shall be deemed state contracts within
5 the meaning of that term as set forth in such article.
6 (e) Whenever the franchise oversight board enters into a contract,
7 subcontract, lease, grant, bond, covenant or other agreement for
8 construction, reconstruction, demolition, excavation, rehabilitation,
9 repair, renovation, alteration, or improvement with respect to each
10 project undertaken pursuant to this chapter, the franchise oversight
11 board shall consider the financial and organizational capacity of
12 contractors and subcontractors in relation to the magnitude of work they
13 may perform, the record of performance of contractors and subcontractors
14 on previous work, the record of contractors and subcontractors in
15 complying with existing labor standards and maintaining harmonious labor
16 relations, and the commitment of contractors to work with minority and
17 women owned business enterprises pursuant to article fifteen-A of the
18 executive law through joint ventures or subcontractor relationships.
19 (f) The franchise oversight board shall further require, on any
20 contract for construction in excess of three million dollars with
21 respect to any contract for construction, reconstruction, demolition,
22 excavation, rehabilitation, repair, renovation, alteration, or improve-
23 ment that each contractor and subcontractor shall participate in appren-
24 tice training programs in the trades of work it employs that have been
25 approved by the department of labor for not less than three years. The
26 franchise oversight board shall further require that each contractor and
27 subcontractor shall have graduated at least one apprentice in the last
28 three years and shall have at least one apprentice currently enrolled in
29 such training program. Additionally it must be demonstrated that the
30 program has made significant efforts to attract and retain minority
31 apprentices, as determined by affirmative action goals established for
32 such programs by the department of labor.
33 (g) Whenever the franchise oversight board enters into a contract
34 under which employees are employed to perform building service work, as
35 that term is defined in section two hundred thirty of the labor law,
36 such work shall be subject to article nine of the labor law to the same
37 extent as building services work performed pursuant to a contract with a
38 public agency.
39 (h) All developers of and entities having an operational interest in
40 any hotel or video lottery terminal facility at a thoroughbred racing
41 facility in which the state has a proprietary interest or is otherwise
42 acting as a market participant must have entered into an agreement with
43 the labor organization(s) that is/are actively engaged in representing
44 and attempting to represent hotel service, food and beverage, house-
45 keeping, and gaming employees in New York city and the surrounding areas
46 and, where applicable, the Saratoga area that is valid and enforceable
47 under 29 U.S.C. section 185(a) and that prohibits any strikes, picketing
48 or other economic interference with the hotel or video lottery terminal
49 facility and ensures that any operations at the hotel or video lottery
50 terminal facilities involving the use of hotel or video lottery terminal
51 employees that are conducted by contractors, subcontractors, licensees,
52 assignees, tenants or subtenants, shall be done under contracts enforce-
53 able under 29 U.S.C. section 185(a) containing the same provisions as
54 specified above.
55 § 17. Section 209 of the racing, pari-mutuel wagering and breeding law
56 is amended to read as follows:
S. 6950 20 A. 9998
1 § [209] 214. Acquisition of racing facilities. Any franchised corpo-
2 ration [or association incorporated under section two hundred two of
3 this chapter, or licensed or enfranchised under this article,] desiring
4 to acquire racing facilities, including real estate, [of one or more
5 other such corporations or associations] or the capital stock [thereof]
6 of one or more racing associations shall apply to the [state racing and
7 wagering] franchise oversight board for approval of such acquisition. If
8 in the judgment of such board the public interest, convenience or neces-
9 sity and the best interest of racing generally will be served thereby,
10 such board shall enter an order granting approval of such acquisition
11 and of the terms thereof.
12 § 18. Section 209-a of the racing, pari-mutuel wagering and breeding
13 law, as amended by chapter 1007 of the laws of 1983, is amended to read
14 as follows:
15 § [209-a] 216. Disposition of racing facilities or certain assets. 1.
16 Any franchised corporation [or association incorporated under section
17 two hundred two of this chapter, which is licensed or enfranchised under
18 this article,] desiring to grant, give, devise, or sell [its capital
19 stock or the capital stock of any other such corporations or associ-
20 ations acquired pursuant to the provisions of section seven-b of chapter
21 four hundred forty of the laws of nineteen hundred twenty-six as added
22 by chapter eight hundred twelve of the laws of nineteen hundred fifty-
23 five and continued as section two hundred nine of this article by chap-
24 ter eight hundred sixty-five of the laws of nineteen hundred eighty-two
25 or] any [other] assets including tangible and intangible assets, racing
26 facilities and real estate [acquired pursuant to the provisions of such
27 section two hundred nine,] shall apply to the state racing and wagering
28 board and to the franchise oversight board [of the New York state
29 thoroughbred racing capital investment fund] for approval of such dispo-
30 sition, provided, however, that the approval of such boards shall not be
31 necessary for the sale of property, other than real property, which is
32 appropriately, customarily and usually sold by the association in the
33 normal course of its business [or which is necessary or appropriate in
34 the normal course of its business]. If in the judgment of each such
35 board, acting individually, the public interest, convenience or necessi-
36 ty and the best interest of racing will be served thereby, each such
37 board shall enter an order granting approval of such disposition and of
38 the terms thereof.
39 2. Such franchised corporation during the term of such a franchise
40 shall not pledge, mortgage or otherwise encumber any of the racetrack
41 facilities or properties acquired after the effective date of this
42 subdivision without the prior written approval of the franchise over-
43 sight board.
44 The franchised corporation may incur indebtedness, including without
45 limitation, the issuance of non-convertible debt securities in
46 connection therewith, and grant liens on and security interests in
47 assets and interests, including without limitation, the revenue streams
48 referred to herein, except that any debt incurred or funds raised shall
49 be used to promote racing at the franchise racetracks. The franchised
50 corporation shall not create any lien or security interest in any asset
51 that runs with the franchise, such as the simulcasting contract, the
52 repayment of which would extend beyond the term of the franchise. All
53 incurrence of debt or grant of liens or security interests other than
54 those arising within the ordinary course of business such as
55 materialmen's and mechanics' liens first require the approval of the
56 franchise oversight board.
S. 6950 21 A. 9998
1 3. The state through the urban development corporation may borrow to
2 fund racetrack capital improvements at Aqueduct racetrack, Belmont Park
3 racetrack and Saratoga race course and borrow on behalf of the fran-
4 chised corporation pursuant to franchise oversight board approval
5 secured against the franchised corporation's right to receive payments
6 for racetrack capital improvements pursuant to subdivision f of section
7 sixteen hundred twelve of the tax law, provided, however, the indenture
8 shall restrict the use of net proceeds to capital expenditures at the
9 racetrack and provided further that any such borrowing shall be secured
10 only by such future stream of racetrack capital improvement payments
11 payable to the franchised corporation. The urban development corporation
12 shall initially borrow funds necessary for approved capital expenditures
13 in years one through five and then at appropriate times as determined by
14 the franchise oversight board for years six through ten, years eleven
15 through fifteen, years sixteen through twenty and years twenty-one
16 through twenty-five. The amount of borrowing for approved capital
17 expenditures shall not exceed the amount that would have been paid out
18 for facility improvements in the event the full payment pursuant to
19 subdivision f of section sixteen hundred twelve of the tax law for that
20 purpose was made.
21 § 19. Section 210 of the racing, pari-mutuel wagering and breeding law
22 is amended to read as follows:
23 § [210] 217. Revocation of licenses. If any corporation [or associ-
24 ation] to which a license shall be granted shall fail or refuse to
25 comply with the provisions of this [article] chapter, or with the terms
26 and conditions of its license, or if for any other reason the contin-
27 uance of such license shall not be deemed conducive to the interests of
28 legitimate racing, the board, upon its own initiative or upon complaint
29 of the jockey club, in the case of race courses to be used for running
30 races, or upon the complaint of the national steeplechase and hunt asso-
31 ciation in the case of race courses to be used for steeplechases, shall
32 have the power to cancel and revoke such license. Written notice of
33 such complaint shall be given to such corporation [or association] by
34 said board within five days after receiving such complaint, or after
35 determining to take action, which notice shall specify a time and place
36 of hearing thereon. If the board cancels and revokes such license all
37 powers exercised under section two hundred [four] three of this [chap-
38 ter] article by the corporation [or association] to which such license
39 was granted shall cease and determine.
40 § 20. Intentionally omitted.
41 § 21. Section 212 of the racing, pari-mutuel wagering and breeding law
42 is amended to read as follows:
43 § [212] 218. Stewards at race meetings. There shall be three stewards
44 to supervise each running race meeting conducted pursuant to section two
45 hundred [seven] five of this [chapter] article. One of such stewards
46 shall be the official steward of the board, one shall be appointed by
47 the jockey club or by the national steeplechase and hunt association as
48 may be appropriate, and one shall be appointed by the corporation [or
49 association] conducting such race meeting. Such stewards shall exercise
50 such powers and perform such duties at each race meeting as may be
51 prescribed by the rules of the state racing and wagering board. During
52 the absence or inability to act of an official steward of the board, or
53 in the event of the failure or inability to appoint either of the other
54 two stewards, the powers and duties of such steward shall be exercised
55 and performed without compensation by a member of the board designated
56 by the board for that purpose.
S. 6950 22 A. 9998
1 § 22. Section 212-a of the racing, pari-mutuel wagering and breeding
2 law, as added by chapter 194 of the laws of 1994, is amended to read as
3 follows:
4 § [212-a] 219. Advertising or promotional material. Notwithstanding
5 any other provision of law, rule or regulation nothing herein shall be
6 deemed to authorize the stewards or the racing and wagering board to
7 promulgate any rule or regulation which would prohibit a jockey from
8 wearing any advertising or promotional material on his or her clothing.
9 The wearing of such advertising or promotional material will be permit-
10 ted only when the owner of a horse for whom such jockey is riding
11 provides the jockey with prior written authorization. Notwithstanding
12 the foregoing, when a corporation, company or any other entity sponsors
13 a race or race day at any [non-profit racing association] franchised
14 corporation or any racing association or corporation, such racing asso-
15 ciation may prohibit a jockey from wearing advertising material that
16 represents a competitor of such sponsoring corporation, company or other
17 entity.
18 § 23. Section 213 of the racing, pari-mutuel wagering and breeding
19 law, the section heading as amended and subdivision 5 as added by chap-
20 ter 672 of the laws of 1997, subdivision 1 as amended by chapter 164 of
21 the laws of 2003, subdivision 3 as amended by chapter 153 of the laws of
22 1986, is amended to read as follows:
23 § [213] 220. Licenses for participants and employees at race meet-
24 ings[; competitive bidding and review of certain contracts of a non-pro-
25 fit racing association]. 1. For the purpose of maintaining a proper
26 control over race meetings conducted pursuant to section two hundred
27 [seven] five of this article, the state racing and wagering board shall
28 license owners, which term shall be deemed to include part owners and
29 lessees, trainers, assistant trainers and jockeys, jockey agents, stable
30 employees, and such other persons as the board may by rule prescribe at
31 running races and at steeplechases [and hunts], provided, however, that
32 no such license shall be required for seasonal employees hired solely to
33 work for no longer than six weeks during the summer meet at Saratoga
34 racetrack. In the event that a proposed licensee is other than a natural
35 person, the board shall require by regulation disclosure of the names
36 and addresses of all owners of an interest in such entity. The board may
37 retain, employ or appoint such officers, employees and agents, as it may
38 deem necessary to receive, examine and make recommendations, for the
39 consideration of the board, in respect of applications for such
40 licenses; prescribe their duties in connection therewith, and fix their
41 compensation therefor within the limitations prescribed by law. Each
42 applicant for a license shall pay to the board an annual license fee as
43 follows: owner's license, if a renewal, fifty dollars, and if an
44 original application, one hundred dollars; trainer's license, thirty
45 dollars; assistant trainer's license, thirty dollars; jockey's license,
46 fifty dollars; jockey agent's license, twenty dollars; and stable
47 employee's license, five dollars. Each applicant may apply for a two
48 year or three year license by payment to the board of the appropriate
49 multiple of the annual fee. The board may by rule fix the license fees
50 to be paid by other persons required to be licensed by the rules of the
51 board, not to exceed thirty dollars per category. The application for
52 the license shall be in writing in such form as the board may prescribe,
53 and contain such information as the board may require. The board shall
54 henceforth cause all applicants for licenses to be photographed and
55 fingerprinted and may issue identification cards to licensees. Such
56 fingerprints shall be submitted to the division of criminal justice
S. 6950 23 A. 9998
1 services for a state criminal history record check, as defined in subdi-
2 vision one of section three thousand thirty-five of the education law,
3 and may be submitted to the federal bureau of investigation for a
4 national criminal history record check. A fee equal to the actual cost
5 of issuance shall be charged for the initial issuance of such identifi-
6 cation cards. Each such license unless revoked for cause shall be for
7 the period of no more than one, two or three years, determined by rule
8 of the board, expiring on the applicant's birth date. Licenses current
9 on the effective date of this provision shall not be reduced in duration
10 by this provision. An applicant who applies for a license that, if
11 issued, would take effect less than six months prior to the applicant's
12 birth date may, by payment of a fifty percent higher fee, receive a
13 license which shall not expire until the applicant's second succeeding
14 birth date. All receipts of the board derived from the operation of this
15 section shall be paid by it into the state treasury on or before the
16 tenth day of each month. All officials connected with the actual conduct
17 of racing shall be approved by the board.
18 2. If the state racing and wagering board shall find that the finan-
19 cial responsibility, experience, character and general fitness of the
20 applicant are such that the participation of such person will be
21 consistent with the public interest, convenience or necessity and with
22 the best interests of racing generally in conformity with the purposes
23 of this article, it shall thereupon grant a license. If the board shall
24 find that the applicant fails to meet any of said conditions, it shall
25 not grant such license and it shall notify the applicant of the denial.
26 The board may refuse to issue or renew a license, or may suspend or
27 revoke a license issued pursuant to this section, if it shall find that
28 the applicant, or any person who is a partner, agent, employee or asso-
29 ciate of the applicant, has been convicted of a crime in any jurisdic-
30 tion, or is or has been associating or consorting with any person who
31 has or persons who have been convicted of a crime or crimes in any
32 jurisdiction or jurisdictions or is consorting or associating with or
33 has consorted or associated with bookmakers, touts, or persons of simi-
34 lar pursuits, or has himself engaged in similar pursuits, or is finan-
35 cially irresponsible, or has been guilty of or attempted any fraud or
36 misrepresentation in connection with racing, breeding, or otherwise, or
37 has violated or attempted to violate any law with respect to racing in
38 any jurisdiction or any rule, regulation or order of the board, or shall
39 have violated any rule of racing which shall have been approved or
40 adopted by the board, or has been guilty of or engaged in similar,
41 related or like practices.
42 3. No license shall be revoked unless such revocation is by board
43 determination upon a meeting of the board. Prior to revocation or
44 suspension of license a licensee shall be entitled to a hearing on
45 notice except that summary suspension where emergency action is required
46 in accordance with subdivision three of section four hundred one of the
47 state administrative procedure act may be ordered. In the conduct of
48 such hearing the board shall not be bound by technical rules of evidence
49 but all evidence offered before the board shall be reduced to writing,
50 and such evidence together with the exhibits, if any, and the findings
51 of the board, shall be permanently preserved and shall constitute the
52 record of the board in such case. Such hearing may be presided over by
53 the chairman of the board or by any member or by an officer of the board
54 designated by the chairman in writing to act as hearing officer and such
55 person or persons may issue subpoenas for witnesses and administer oaths
56 to witnesses. The hearing officer, at the conclusion of the hearing
S. 6950 24 A. 9998
1 shall make findings which, if concurred in by two members of the board,
2 shall become the findings of the board. The action of the board in
3 refusing, suspending or in revoking a license shall be reviewable in the
4 supreme court in the manner provided by the provisions of article seven-
5 ty-eight of the civil practice law and rules.
6 4. Within one year from the date of payment and upon the audit of the
7 state comptroller, [the department of state] monies may [refund any] be
8 refunded for any fee paid pursuant to this section[,] for which no
9 license is issued or refund that portion of the payment that is in
10 excess of the amount prescribed by this section.
11 [5. a. All contracts entered into by a non-profit racing association
12 for the procurement of goods or services of a value in excess of two
13 hundred fifty thousand dollars shall be awarded only by a process of
14 competitive bidding approved by the board.
15 b. A non-profit racing association shall be exempt from competitive
16 bid requirements under this section, if the goods or services are neces-
17 sary on an "emergency" basis as defined under paragraph b of subdivision
18 one of section one hundred sixty-three of the state finance law or if
19 the required goods are available from a "sole source" as such term is
20 defined in paragraph g of subdivision one of section one hundred sixty-
21 three of the state finance law. In the event of an emergency, such asso-
22 ciation shall notify the board, in writing, within fifteen days after
23 such emergency, of the events and circumstances constituting such emer-
24 gency. In the event of a "sole source" procurement, such association
25 shall notify the board, in writing, at least fifteen days prior to
26 contracting for such goods, of the facts establishing the unique nature
27 of such source.
28 c. In its review of the contracts pursuant to this section or any
29 non-competitively bid contract in excess of one hundred thousand
30 dollars, the board may review the character and fitness of the entity or
31 its principals entering into contracts with a non-profit racing associ-
32 ation and provided further the board may require such information as it
33 deems necessary including the power to subpoena such books, records and
34 other pertinent information related to the contracts from the contractor
35 or vendor of any contract.]
36 § 24. Intentionally omitted.
37 § 25. Section 213-a of the racing, pari-mutuel wagering and breeding
38 law is renumbered section 221.
39 § 26. Paragraph a of subdivision 2 of section 221 of the racing, pari-
40 mutuel wagering and breeding law, as amended by chapter 325 of the laws
41 of 2004, such section as renumbered by section twenty-five of this act,
42 is amended to read as follows:
43 a. The board of directors shall consist of seven members, six of whom
44 are to be selected from the general membership of the fund in a manner
45 and for terms to be prescribed by the initial fund board. For the
46 purposes of establishing and organizing the fund, at least one hundred
47 fifty days prior to the date that this article shall take effect, the
48 boards of directors of the horsemen's organizations representing at
49 least fifty-one percent of the horsemen utilizing the facilities of any
50 racing [associations or corporations] corporation, shall designate six
51 members who shall serve as the initial board of directors of the fund.
52 The seventh member shall be elected every two years on the second Tues-
53 day of June, or as designated by the fund, pursuant to paragraph b of
54 this subdivision by a vote of jockeys and apprentice jockeys duly
55 licensed pursuant to this article or article four of this chapter. The
56 members of the board shall elect annually from the members a chairperson
S. 6950 25 A. 9998
1 and a vice-chairperson who shall act as chairperson in the absence of
2 the chairperson. Each member of the board of directors shall have equal
3 voting rights with the others.
4 § 27. Subdivision 7 of section 221 of the racing, pari-mutuel wagering
5 and breeding law, as amended by chapter 325 of the laws of 2004, the
6 closing paragraph as amended by chapter 169 of the laws of 2007, and
7 such section as renumbered by section twenty-five of this act, is
8 amended to read as follows:
9 7. In order to pay the costs of the insurance required by this section
10 and by the workers' compensation law and to carry out its other powers
11 and duties and to pay for any of its liabilities under section four-
12 teen-a of the workers' compensation law, the New York Jockey Injury
13 Compensation Fund, Inc. shall ascertain the total funding necessary and
14 establish the sums that are to be paid by all owners and trainers
15 licensed or required to be licensed under section two hundred [thirteen]
16 twenty of this article, to obtain the total funding amount required
17 annually. In order to provide that any sum required to be paid by an
18 owner or trainer is equitable, the fund shall establish payment sched-
19 ules which reflect such factors as are appropriate, including where
20 applicable, the geographic location of the racing [association or]
21 corporation at which the owner or trainer participates, the duration of
22 such participation, the amount of any purse earnings, the number of
23 horses involved, or such other factors as the fund shall determine to be
24 fair, equitable and in the best interests of racing. In no event shall
25 the amount deducted from an owner's share of purses exceed one per
26 centum. In the cases of multiple ownerships and limited racing appear-
27 ances, the fund shall equitably adjust the sum required.
28 The state racing and wagering board shall, as a condition of racing,
29 require any racing [association or corporation or any nonprofit racing
30 association or] corporation or any quarterhorse racing association or
31 corporation authorized under this chapter to conduct pari-mutuel betting
32 at a race meeting or races run thereat, to require that each trainer
33 utilizing the facilities of such association or corporation and each
34 owner racing a horse shall place or have placed on deposit with the
35 horsemen's bookkeeper of such racing association or corporation, an
36 amount to be established and paid in a manner to be determined by the
37 fund.
38 Should the fund determine that the amount which has been collected in
39 the manner prescribed is inadequate to pay the annual costs required by
40 this section, it shall notify the state racing and wagering board of the
41 deficiency and the amount of the additional sum or sums necessary to be
42 paid by each owner and/or trainer in order to cover such deficiency. The
43 state racing and wagering board shall, as an additional condition of
44 racing, direct any racing [association or corporation or any nonprofit
45 racing association or] corporation or any quarterhorse racing associ-
46 ation or corporation authorized under this chapter to conduct pari-mutu-
47 el betting at a race meeting or races run thereat, to require each
48 trainer and owner to place such additional sum or sums on deposit with
49 the respective horsemen's bookkeeper.
50 All amounts collected by a horsemen's bookkeeper pursuant to this
51 section shall be transferred to the fund created under this section and
52 shall be used by the fund to purchase workers' compensation insurance
53 for jockeys, apprentice jockeys and exercise persons licensed pursuant
54 to this article or article four of this chapter who are employees under
55 section two of the workers' compensation law, to pay for any of its
56 liabilities under section fourteen-a of the workers' compensation law
S. 6950 26 A. 9998
1 and to administer the workers' compensation program for such jockeys,
2 apprentice jockeys and exercise persons required by this section and the
3 workers' compensation law.
4 § 28. Section 214 of the racing, pari-mutuel wagering and breeding law
5 is amended to read as follows:
6 § [214] 222. Notice to be posted upon grounds. Every corporation to be
7 organized under this article or which shall be entitled to exercise any
8 of the powers conferred by section two hundred [four] three of this
9 [chapter] article shall cause to be properly posted in conspicuous posi-
10 tions upon the grounds whereon such races are held, printed notices or
11 placards in large and legible type, which notices or placards shall be
12 to the effect that all disorderly conduct, pool-selling, bookmaking or
13 any other kind of gambling is prohibited, and such notices or placards
14 shall contain a copy of subdivision nine of section 225.00 of the penal
15 law.
16 § 29. Section 215 of the racing, pari-mutuel wagering and breeding law
17 is amended to read as follows:
18 § [215] 223. Special policemen. For the purpose of preserving order
19 and preventing offenses against the laws prohibiting gambling, the trus-
20 tees or directors of any corporation created under or subject to the
21 provisions of this article are hereby authorized to appoint from time to
22 time, five or more special policemen, and the same to remove at pleas-
23 ure, who, when appointed, shall be peace officers with the same powers
24 within and about such grounds as are set forth in section 2.20 of the
25 criminal procedure law, whose duty, when appointed, shall be to preserve
26 order within and around the grounds and racetracks of [said] such corpo-
27 ration, to protect the property within [said] such grounds, to eject or
28 arrest all persons who shall be improperly within the grounds of such
29 corporation or who shall be guilty of disorderly conduct, or who shall
30 neglect or refuse to pay the fees or to observe the rules prescribed by
31 [said] such corporation; and it shall be the further duty of [said] such
32 policemen, when appointed, to prevent all violations of law with refer-
33 ence to pool-selling, bookmaking and other gambling, and to arrest any
34 and all persons violating such provisions, and to convey such person or
35 persons so arrested, with a statement of the cause of such arrest,
36 before a court having jurisdiction of such offense, to be dealt with
37 according to the law. The appointment of policemen in pursuance of this
38 section shall not be deemed to supersede in any way on the grounds and
39 racetrack of such corporation the authority of peace officers or police
40 officers of the jurisdiction within which such grounds and racetrack are
41 located.
42 § 30. Section 216 of the racing, pari-mutuel wagering and breeding law
43 is renumbered section 224.
44 § 31. Section 217 of the racing, pari-mutuel wagering and breeding law
45 is amended to read as follows:
46 § [217] 225. Registration of race horses. The true name, sex and age,
47 and also the pedigree, unless such pedigree is unknown, of every horse,
48 mare, gelding, colt or filly shall be registered with the jockey club,
49 United States trotting association, American quarter horse association
50 [or] the [National] national steeplechase and hunt association or such
51 other entity as the racing and wagering board may designate before it
52 shall be eligible to compete in any race conducted under a license or
53 franchise of the state racing and wagering board and such name shall
54 continue to be its true name unless and until the same shall be changed
55 according to the rules and regulations of such organization. The class
56 to which any such animal belongs for the purpose of the entry or compe-
S. 6950 27 A. 9998
1 tition in any race shall be determined by the public performance thereof
2 in former contests or trials of speed, as prescribed by the printed
3 rules of the person, association or corporation sponsoring such race.
4 § 32. Section 218 of the racing, pari-mutuel wagering and breeding law
5 is amended to read as follows:
6 § [218] 226. Increased or additional entrance fees. A corporation [or
7 association] authorized by or entitled to the benefits of this article,
8 conducting a running[,] or steeplechase [or hunt] meeting, shall have
9 the right to charge increased or additional entrance fees for admission
10 to any special portion or portions of the grounds of such corporation
11 [or association], unless such pool-selling or bookmaking as is punisha-
12 ble by fine or imprisonment, or other acts so punishable be thereon
13 authorized or knowingly permitted.
14 § 33. Section 219 of the racing, pari-mutuel wagering and breeding law
15 is amended to read as follows:
16 § [219] 227. [State] Admission tax. 1. Every corporation[, associ-
17 ation or person] holding a race meeting pursuant to this article shall
18 collect in addition to the admission price of tickets sold or otherwise
19 disposed of, if any for each such meeting held by such corporation[,
20 association or person], a tax equivalent to four per centum of such
21 admission price which tax is hereby imposed. In case of failure to
22 collect such tax the same shall be imposed upon the corporation[, asso-
23 ciation or person] holding the race meeting. Such tax shall be paid to
24 the [state tax commission] department of taxation and finance within ten
25 days after the close of each such race meeting, provided, however, that
26 if the race meeting continues for a period of more than thirty days the
27 tax shall be paid at such regular intervals as the [tax commission]
28 department of taxation and finance may require. The payment of tax shall
29 be accompanied by a report under oath showing the total of all such
30 taxes, together with such other information as the [tax commission]
31 department of taxation and finance may require. The amounts so collected
32 shall be paid into the state treasury to the credit of the general fund
33 to be appropriated up to the extent of two hundred thousand dollars
34 annually by the legislature for the benefit of agricultural fairs enti-
35 tled to share in the distribution of moneys for agricultural purposes.
36 Before any corporation[, association or person] liable to pay the tax
37 hereby imposed shall hold any race meeting, or exercise any of the
38 powers conferred by section two hundred [four] three of this [chapter]
39 article, they shall pay all taxes theretofore due; and shall file a
40 statement with the [tax commission] department of taxation and finance
41 containing the name of the place and stating the time when such races
42 are to be held. Nothing in this section shall apply to a race meeting
43 conducted by any state, county or other agricultural association.
44 2. The [tax commission] department of taxation and finance shall have
45 the power to examine or cause to be examined the books and records of
46 the corporation[, association, person or persons] so conducting any such
47 race meeting, and may hear testimony and take proofs material for its
48 information; and therefrom or from any other data which shall be satis-
49 factory to it the [tax commission] department of taxation and finance
50 may order and state an account for the tax due the state, together with
51 the expense of such examination. A penalty of five per centum and inter-
52 est at the rate of one per centum per month from the due date to the
53 date of payment of the tax shall be payable in case any tax imposed by
54 this section is not paid when due.
55 § 34. Section 220 of the racing, pari-mutuel wagering and breeding law
56 is amended to read as follows:
S. 6950 28 A. 9998
1 § [220] 220-a. Corporations continued. Corporations heretofore formed
2 under chapter five hundred seventy of the laws of eighteen hundred nine-
3 ty-five, chapter four hundred forty of the laws of nineteen hundred
4 twenty-six, or under article twenty of the membership corporations law,
5 are hereby continued without change of corporate status, power or obli-
6 gation, under the provisions of this article.
7 § 35. Section 221 of the racing, pari-mutuel wagering and breeding
8 law, subdivision 1 as designated by chapter 981 of the laws of 1983,
9 subdivision 2 as amended by chapter 764 of the laws of 1992, and the
10 opening paragraph of subdivision 2 as amended by chapter 440 of the laws
11 of 2007, is amended to read as follows:
12 § [221] 228. Pension plans for backstretch employees. 1. The state
13 racing and wagering board may, as a condition of racing, require all
14 trainers and owners engaged in racing at meetings of any [association
15 or] corporation subject to its jurisdiction to participate in a pension
16 plan or trust established, or which may be established, by trainers and
17 owners for the benefit of stable employees (backstretch workers) regu-
18 larly employed at such meetings; provided that the board shall find that
19 participation in the plan by all such owners and trainers is in the best
20 interests of racing and provided, further, that the board shall find,
21 based upon certification by the trustees of such plan, that at least
22 eighty percent of such trainers and owners have agreed in writing to
23 participate, or are, in fact, participating therein.
24 2. The state racing and wagering board shall, as a condition of
25 racing, require any [non-profit racing association] franchised corpo-
26 ration and every other corporation [or association] subject to its
27 jurisdiction to withhold one percent of all purses, except that for [a
28 non-profit racing association] the franchised corporation, starting on
29 [the first day of the first calendar month following the effective date
30 of the chapter of the laws of two thousand seven that amended this para-
31 graph] September first, two thousand seven and continuing for a period
32 of twelve months thereafter, two percent of all purses shall be with-
33 held, and, in the case of [a non-profit association] the franchised
34 corporation, to pay such sum to the horsemen's organization or its
35 successor that was first entitled to receive payments pursuant to this
36 section in accordance with rules of the board adopted effective November
37 third, nineteen hundred eighty-three representing at least fifty-one
38 percent of the owners and trainers utilizing the facilities of such
39 [association] franchised corporation and, in the case of every other
40 corporation, to pay such one percent sum of purses to the horsemen's
41 organization or its successor that was first entitled to receive
42 payments pursuant to this section in accordance with rules of the board
43 adopted effective May twenty-third, nineteen hundred eighty-six repres-
44 enting at least fifty-one percent of the owners and trainers utilizing
45 the facilities of such corporation.
46 In either case, any other horsemen's organization may apply to the
47 board to be approved as the qualified organization to receive payment of
48 the one percent of all purses by submitting to the board proof of both,
49 that (i) it represents more than fifty-one percent of all the owners and
50 trainers utilizing the same facilities and (ii) the horsemen's organiza-
51 tion previously approved as qualified by the board does not represent
52 fifty-one percent of all the owners and trainers utilizing the same
53 facilities. If the board is satisfied that the documentation submitted
54 with the application of any other horsemen's organization is conclusive
55 with respect to items (i) and (ii) [above] of this paragraph, it may
56 approve the applicant as the qualified recipient organization.
S. 6950 29 A. 9998
1 In the best interests of racing, upon receipt of such an application,
2 the board may direct the payments to the previously qualified horsemen's
3 organization to continue uninterrupted, or it may direct the payments to
4 be withheld and placed in interest-bearing accounts for a period not to
5 exceed ninety days, during which time the board shall review and approve
6 or disapprove the application. Funds held in such manner shall be paid
7 to the organization approved by the board. In no event shall the board
8 accept more than one such application in any calendar year from the same
9 horsemen's organization.
10 The funds authorized to be paid by the board are to be used exclusive-
11 ly for the benefit of those horsemen racing in New York state through
12 the administrative purposes of such qualified organization, benevolent
13 activities on behalf of backstretch employees, and for the promotion of
14 equine research.
15 § 36. Section 221-a of the racing, pari-mutuel wagering and breeding
16 law, as added by chapter 346 of the laws of 1990, is amended to read as
17 follows:
18 § [221-a] 229. Backstretch employees drug and alcohol rehabilitation
19 eligibility. Any licensed [non-for-profit] not-for-profit organization
20 providing drug and alcohol rehabilitation services to backstretch
21 employees shall receive information concerning available funding and
22 existing programs from a coordinated effort of the board and division of
23 substance abuse services.
24 § 37. Section 221-b of the racing, pari-mutuel wagering and breeding
25 law, as added by chapter 112 of the laws of 1998, is amended to read as
26 follows:
27 § [221-b] 230. Membership in a national thoroughbred racing associ-
28 ation. Notwithstanding any other provision of law to the contrary, if a
29 majority of the board of directors of a horsemen's organization quali-
30 fied pursuant to section two hundred [twenty-one] twenty-eight of this
31 article shall annually approve, the qualified horsemen's organization
32 may request that [a non-profit racing association] the franchised corpo-
33 ration make payments, from funds earned and retained for purses, to the
34 National Thoroughbred Racing Association, for the purposes of establish-
35 ing and maintaining membership for such organization. Upon receipt of a
36 duly adopted corporate resolution requesting payment to the National
37 Thoroughbred Racing Association from a qualified horsemen's organiza-
38 tion, [a non-profit racing association] the franchised corporation shall
39 make payments from funds earned and retained for purses on behalf of
40 such qualified horsemen's organization, provided:
41 1. In no event shall the sum of the payments made pursuant to the
42 corporate resolution during any twelve month period exceed an amount
43 equal to one and one-quarter [percentum] per centum of the total purses
44 paid at all tracks operated by [such non-profit racing association] the
45 franchised corporation during the preceding calendar year.
46 2. Payments shall be made by the [non-profit racing association] fran-
47 chised corporation in accordance with a schedule provided in the corpo-
48 rate resolution by the board of the qualified horsemen's organization.
49 Such schedule shall (i) identify the twelve month period commencing on
50 April first during which a specific sum is to be paid and (ii) delineate
51 a timetable for making the payments, which are to be equal in amount and
52 made no less frequently than every three months.
53 3. Upon receipt of a duly adopted corporate resolution from the quali-
54 fied horsemen's organization stating that a majority of its board
55 members has voted to rescind approval of such payments, the [non-profit
56 racing association] franchised corporation shall make no further
S. 6950 30 A. 9998
1 payments unless and until it receives a duly adopted corporate resol-
2 ution as described in this section.
3 § 38. Section 222 of the racing, pari-mutuel wagering and breeding law
4 is amended to read as follows:
5 § [222] 231. Pari-mutuel betting on horse races legalized. In the
6 exercise of the authority vested in it by section nine of article one of
7 the state constitution, as amended by vote of the people at the general
8 election in November, nineteen hundred thirty-nine, the legislature
9 prescribes that pari-mutuel betting on horse races shall be lawful in
10 this state if conducted in the manner and subject to the conditions and
11 supervision provided by [sections two hundred twenty-two through seven
12 hundred five of] this chapter, notwithstanding the provisions of any
13 other law, general, special or local, prohibiting or restricting
14 lotteries, pool-selling or bookmaking, or any other kind of gambling; it
15 being the purpose of [sections two hundred twenty-two through seven
16 hundred five of] this chapter to derive from such betting as herein
17 authorized a reasonable revenue for the support of government and to
18 promote agriculture generally and the improvement of breeding of horses
19 particularly in the state. Such pari-mutuel betting shall only be
20 conducted within the grounds or enclosure of a racetrack on races at
21 such track and on such dates when racing at such track shall have been
22 authorized pursuant to [sections two hundred twenty-two through seven
23 hundred five of] this chapter; provided, however, that nothing in this
24 section shall be deemed to prohibit off-track pari-mutuel betting in a
25 municipality pursuant to article five, [five-a or article] five-A or six
26 of this chapter.
27 § 39. Section 223 of the racing, pari-mutuel wagering and breeding law
28 is amended to read as follows:
29 § [223] 232. License to conduct pari-mutuel betting at race meetings
30 for running races or steeplechases. Any corporation [or association],
31 at the time of making application to the state racing and wagering board
32 for a license to conduct a race course or a race meeting for running
33 races or steeplechases, or at such subsequent time as the board may
34 permit, may apply to such board for a license to conduct at such race
35 meeting pari-mutuel betting on the races to be run thereat. The board
36 may prescribe the form in which such application shall be made and the
37 information to be furnished by such corporation [or association]. If the
38 board be satisfied from such application, or from other sources of
39 information, that the racetrack of such corporation [or association] for
40 which such application is made has facilities and equipment sufficient
41 to accommodate its probable number of patrons, it shall issue to such
42 corporation [or association] a license to conduct pari-mutuel betting in
43 the manner and subject to the conditions prescribed by [sections two
44 hundred twenty-two through seven hundred five of] this chapter, at the
45 racetrack described in such license on the days specified in such
46 license.
47 § 40. Section 224 of the racing, pari-mutuel wagering and breeding law
48 is REPEALED.
49 § 41. Section 225 of the racing, pari-mutuel wagering and breeding
50 law, as amended by chapter 346 of the laws of 1990, is amended to read
51 as follows:
52 § [225] 233. Bond required of corporation [or association] conducting
53 pari-mutuel betting. 1. Every corporation [or association] franchised
54 or licensed by [or to which a franchise is issued by] the state racing
55 and wagering board to conduct pari-mutuel betting, annually and before
56 the opening of any race meeting, shall execute and file with the state
S. 6950 31 A. 9998
1 comptroller, a bond to the state in a penalty to be fixed by the commis-
2 sioner of taxation and finance not exceeding five hundred thousand
3 dollars, with sureties approved by the attorney general, that it will
4 keep its books and records and make reports as required by [sections two
5 hundred twenty-five through seven hundred five of] this chapter, that it
6 will pay to the state all taxes imposed by this chapter, that it will
7 distribute to the patrons of pari-mutuel pools conducted by it all sums
8 due upon presentation of winning tickets held by them, and that it will
9 otherwise comply with all the provisions of this chapter in relation to
10 the conduct of races and of pari-mutuel betting on its racetrack.
11 2. In addition hereto, every such corporation [or association] first
12 licensed or franchised after January first, nineteen hundred eighty-six,
13 annually and before the opening of any race meeting shall execute and
14 file with the state comptroller, a bond to the state in a penalty to be
15 fixed by the board not exceeding five hundred thousand dollars, with
16 sureties approved by the attorney general, that it will make all purse
17 payments advertised and offered as premiums, prizes or awards to owners
18 of horses competing in races at such track within one week of such race,
19 or, if such payment is ordered held by the board pending investigation
20 by it of any race, into a trust account pending completion of such
21 investigation[, such bond to cover purses for quarter horse races in
22 like manner if such licensee is conducting a mixed meeting pursuant to
23 section two hundred seven of this article and article four of this chap-
24 ter].
25 § 42. Section 226 of the racing, pari-mutuel wagering and breeding law
26 is amended to read as follows:
27 § [226] 234. Place and manner of conducting pari-mutuel betting. Any
28 corporation [or association] licensed or franchised to conduct pari-mu-
29 tuel betting at a horse race meeting shall provide a place or places
30 within the race meeting grounds or enclosure at which such licensee or
31 franchisee shall conduct the pari-mutuel system of betting by its
32 patrons on the results of the horse races at such meeting. Such place or
33 places shall be provided with necessary equipment for issuing or vending
34 pari-mutuel tickets, and adding machine equipment and a device capable
35 of accurate and speedy determination of the amount of money in each pool
36 and on each horse and the amount of award or dividend to winning patrons
37 and displaying the same to its patrons. Such place shall also be
38 equipped with automatic or hand-operated machinery for displaying on a
39 mutuel indicator in plain view of the public, the total amount of sales
40 separately for straight, place and show on every race and on each horse
41 in such race. The machine or mutuel indicator shall also display the
42 approximate straight odds on each horse in any race; the value of a
43 two-dollar winning mutuel ticket, straight, place and show, on the first
44 three horses in any race; the elapsed time of the race; the value of a
45 two-dollar daily double ticket, if a daily double be conducted; and any
46 other information that may be necessary for the guidance of the general
47 public that the state racing and wagering board may require. All such
48 machines and equipment must be approved by the board and the [state tax
49 commission] department of taxation and finance before being used, but
50 the board shall not require the installation of any particular make of
51 mechanical or electrical equipment.
52 § 43. Section 227 of the racing, pari-mutuel wagering and breeding law
53 is amended to read as follows:
54 § [227] 235. Rules for the conduct of pari-mutuel betting. 1. The
55 state racing and wagering board shall make rules regulating the conduct
S. 6950 32 A. 9998
1 of pari-mutuel betting, as authorized pursuant to [sections two hundred
2 twenty-two through seven hundred five of] this chapter.
3 2. The rules shall provide that all winning pari-mutuel tickets must
4 be presented for payment before April first of the year following the
5 year of their purchase and failure to present any such ticket within the
6 prescribed period of time shall constitute a waiver of the right to
7 participate in the award or dividend.
8 3. The [state tax commission] department of taxation and finance is
9 hereby charged with the financial administration of pari-mutuel betting
10 as herein described and as supplemented by the rules and regulations of
11 the state racing and wagering board. The [state tax commission] depart-
12 ment of taxation and finance shall have authority to prescribe the forms
13 and the system of accounting to be employed and through its represen-
14 tatives shall at all times have access to the issuing or vending
15 machines, the adding machines and all other pari-mutuel betting equip-
16 ment.
17 § 44. Section 228 of the racing, pari-mutuel wagering and breeding
18 law, subdivision 1 as amended by section 1 of part B of chapter 59 of
19 the laws of 2005, subdivision 2 as amended by chapter 280 of the laws of
20 2001, subdivision 2-a as amended by chapter 405 of the laws of 1992,
21 subdivision 3 as added and subdivision 5 as renumbered by chapter 261 of
22 the laws of 1988, paragraph d of subdivision 3 as amended by chapter 503
23 of the laws of 1989, and subdivision 4 as amended by chapter 2 of the
24 laws of 1995, is amended to read as follows:
25 § [228] 236. Disposition of pari-mutuel pools; percentage payable to
26 state as a tax; authority of counties or certain cities to impose a tax.
27 1. Every corporation [or association] authorized under this chapter to
28 conduct pari-mutuel betting at a race meeting on races run thereat,
29 except as provided in section two hundred [twenty-nine] thirty-eight of
30 this [chapter] article with respect to [nonprofit racing associations]
31 the franchised corporation, shall distribute all sums deposited in any
32 pari-mutuel pool to the holders of winning tickets therein, providing
33 such tickets be presented for payment before April first of the year
34 following the year of their purchase, less an amount which shall be
35 established and retained by such racing [association or] corporation of
36 between fourteen to twenty per centum of the total deposits in pools
37 resulting from regular on-track bets and less sixteen to twenty-two per
38 centum of the total deposits in pools resulting from multiple on-track
39 bets and less twenty to thirty per centum of the total deposits in pools
40 resulting from exotic on-track bets and less twenty to thirty-six per
41 centum of the total pools resulting from super exotic on-track bets,
42 plus the breaks. The retention rate to be established is subject to the
43 prior approval of the racing and wagering board. Such rate may not be
44 changed more than once per calendar quarter to be effective on the first
45 day of the calendar quarter. "Exotic bets" and "multiple bets" shall
46 have the meanings set forth in section five hundred nineteen of this
47 chapter and breaks are hereby defined as the odd cents over any multiple
48 of ten, or for exotic bets over any multiple of fifty, or for super
49 exotic bets, over any multiple of one hundred, calculated on the basis
50 of one dollar, otherwise payable to a patron provided, however, that
51 effective after October fifteenth, nineteen hundred ninety-four breaks
52 are hereby defined as the odd cents over any multiple of five for
53 payoffs greater than one dollar five cents but less than five dollars,
54 over any multiple of ten for payoffs greater than five dollars but less
55 than twenty-five dollars, over any multiple of twenty-five for payoffs
56 greater than twenty-five dollars but less than two hundred fifty
S. 6950 33 A. 9998
1 dollars, or over any multiple of fifty for payoffs over two hundred
2 fifty dollars. "Super exotic bets" shall have the meaning set forth in
3 section three hundred one of this chapter. Of the amount so retained
4 there shall be paid by such corporation [or association] to the [state
5 tax commission] department of taxation and finance as a reasonable tax
6 by the state for the privilege of conducting pari-mutuel betting on the
7 races run at the race meeting held by such corporation [or association],
8 which tax is hereby levied, the following percentages of the total pool,
9 plus fifty-five per centum of the breaks; the applicable rates for regu-
10 lar and multiple bets shall be one and one-half per centum; the applica-
11 ble rates for exotic bets shall be six and three-quarter per centum and
12 the applicable rate for super exotic bets shall be seven and three-quar-
13 ter per centum. Effective on and after September first, nineteen hundred
14 ninety-four, the applicable tax rate shall be one per centum of all
15 wagers, provided that, an amount equal to one-half the difference
16 between the taxation rate for on-track regular, multiple and exotic bets
17 as of December thirty-first, nineteen hundred ninety-three and the rates
18 on such on-track wagers as herein provided shall be used exclusively for
19 purses. Provided, however, that for any twelve-month period beginning on
20 April first in nineteen hundred ninety and any year thereafter, each of
21 the applicable rates set forth above shall be increased by one-quarter
22 of one per centum on all on-track bets of any such racing [association
23 or] corporation that did not expend an amount equal to at least one-half
24 of one per centum of its on-track bets during the immediately preceding
25 calendar year for enhancements consisting of capital improvements as
26 defined by section two hundred [twenty-eight-a] thirty-seven of this
27 article, repairs to its physical plant, structures, and equipment used
28 in its racing or wagering operations as certified by the state racing
29 and wagering board to the commissioner of taxation and finance no later
30 than eighty days after the close of such calendar year, and five special
31 events at each track in each calendar year, not otherwise conducted in
32 the ordinary course of business, the purpose of which shall be to
33 encourage, attract and promote track attendance and encourage new and
34 continued patronage, which events shall be approved by the racing and
35 wagering board for purposes of this subdivision. In the determination of
36 the amounts expended for such enhancements, the board may consider the
37 immediately preceding twelve month calendar period or the average of the
38 two immediately preceding twelve month calendar periods. Provided
39 further, however, that of the portion of the increased amounts retained
40 by such [association or] corporation above those amounts retained in
41 nineteen hundred eighty-four, an amount of such increase shall be
42 distributed to purses in the same proportion as commissions and purses
43 were distributed during nineteen hundred eighty-four as certified by the
44 board. Such corporation [or association] in the second zone shall
45 receive a credit against the daily tax imposed by this subdivision in an
46 amount equal to one per centum of total daily pools resulting from the
47 simulcast of such corporation's [or association's] races to licensed
48 facilities operated by regional off-track betting corporations in
49 accordance with section one thousand eight of this chapter, provided
50 however, that sixty per centum of the amount of such credit shall be
51 used exclusively to increase purses for overnight races conducted by
52 such corporation [or association]; and, provided further, that in no
53 event shall such total daily credit exceed one per centum of the total
54 daily pool of such [association or] corporation. Provided, however, that
55 on and after September first, nineteen hundred ninety-four such credit
56 shall be four-tenths percent of total daily pools resulting from such
S. 6950 34 A. 9998
1 simulcasting and that in no event shall such total daily credit equal
2 four-tenths percent of the total daily pool of such [association or]
3 corporation.
4 Such corporation [or association] shall pay to the New York state
5 thoroughbred breeding and development fund one-half of one per centum of
6 the total daily on-track pari-mutuel pools from regular, multiple and
7 exotic bets, and three per centum of super exotic bets. The corporation
8 [or association] shall receive credit as a reduction of the tax by the
9 state for the privilege of conducting pari-mutuel betting for the
10 amounts, except amounts paid from super exotic betting pools, paid to
11 the New York state thoroughbred breeding and development fund after
12 January first, nineteen hundred seventy-eight.
13 Such corporation [or association] shall distribute to purses an amount
14 equal to fifty per centum of any compensation it receives from simul-
15 casting or from wagering conducted outside the United States. Such
16 corporation [or association] shall pay to the racing and wagering board
17 as a regulatory fee, which fee is hereby levied, fifty hundredths of one
18 per centum of the total daily on-track pari-mutuel pools of such corpo-
19 ration [or association].
20 2. The balance of the retained percentage of such pool and of the
21 breaks shall be held by such corporation [or association] for its own
22 use and purposes, except that in addition to any payments to purses
23 provided for in subdivision one of this section, an amount equal to two
24 and one-half per centum of the total pools resulting from on-track regu-
25 lar bets and exotic bets and an amount equal to three and one-half per
26 centum of the total pools resulting from on-track multiple bets and an
27 amount equal to twelve per centum of on-track super exotic bets shall be
28 used exclusively for the purpose of increasing purses (including stakes,
29 premiums and prizes) awarded to horses in races conducted by such corpo-
30 ration [or association]. Such two and one-half per centum and three and
31 one-half per centum shall be in addition to (i) four and one-half per
32 centum of such total pools resulting from regular and multiple wagers
33 and five and one-half per centum of such total pools resulting from
34 exotic wagers, or (ii) the percentage of such total pools used for purs-
35 es (including stakes, premiums and prizes) during the year nineteen
36 hundred eighty-two, whichever is larger. Such percentage of the total
37 pools mentioned in this subdivision shall be used for purses (including
38 stakes, premiums and prizes) in races hereafter conducted by such corpo-
39 ration [or association], and any portion not so used during any year
40 shall be so used during the following year, failing which such portion
41 shall be payable to the commissioner of taxation and finance as addi-
42 tional tax. The racing and wagering board shall report annually, on or
43 before July first, to the director of the budget, the chairman of the
44 senate finance committee and the chairman of the assembly ways and means
45 committee the extent to which such corporation [or association] utilized
46 and retained percentages and breakage for operations, maintenance, capi-
47 tal improvements, advertising and promotion, administration and general
48 overhead and evaluate the effectiveness and make recommendations with
49 respect to the application of the reduced rates of taxation as provided
50 for in subdivision one of this section in accomplishing the objectives
51 stated therein. Such report shall also specify the amount of such
52 retained percentages and breakage used for investments not directly
53 related to racing activities and such amounts used to declare dividends
54 or other profit distributions, additions to capital stock, its sale and
55 transfer and additions to retained earnings. Such reports shall also
56 include an analysis of any such agreements or proposals to conduct or
S. 6950 35 A. 9998
1 otherwise expand wagers authorized under article ten of this chapter and
2 present its conclusions with respect to the conduct of such wagering,
3 the nature of such proposals and agreements, and recommendations to
4 ensure the future maintenance of the intent of this article.
5 [2-a. Notwithstanding any other provision of this section to the
6 contrary and until January first, nineteen hundred ninety-five, a racing
7 association or corporation first licensed to conduct pari-mutuel racing
8 after January first, nineteen hundred eighty-six, shall pay to the
9 commissioner of taxation and finance as a reasonable tax by the state
10 for the privilege of conducting pari-mutuel betting on the races run at
11 the race meeting held by such corporation or association, which tax is
12 hereby levied, one per centum of the total pools resulting from wagers
13 on-track on such races, plus fifty-five per centum of the breaks. Such
14 racing association or corporation shall retain an additional two per
15 centum from total pools on such on-track wagers to be shared equally
16 with the horsemen engaged in races run at such race meeting; the track's
17 share thereof to be used for capital improvements pursuant to section
18 two hundred twenty-eight-a of this article, which section shall be
19 deemed to have been elected by such corporation or association.]
20 3. Tax rates in event of a failure to maintain pari-mutuel racing
21 activity. a. Notwithstanding any other provision of this section to the
22 contrary, for any calendar year commencing on or after January first,
23 nineteen hundred eighty-nine, in which a racing [association or] corpo-
24 ration in zone two does not conduct a minimum number of pari-mutuel
25 programs and pari-mutuel races at its facilities equal to at least nine-
26 ty per centum of the programs and races so conducted during nineteen
27 hundred eighty-five or during nineteen hundred eighty-six, whichever is
28 less, in lieu of the tax rates set forth in subdivision one of this
29 section the applicable pari-mutuel tax rates for such [association or]
30 corporation with respect to on-track pari-mutuel betting pools during
31 such year shall be increased by one per centum of regular, multiple and
32 exotic betting pools. Notwithstanding the foregoing, no increase shall
33 be proposed unless such corporation [or association] has been afforded
34 notice and opportunity to be heard. The racing and wagering board shall
35 promulgate rules and regulations to implement the provisions relating to
36 notice and hearing.
37 b. The provisions of this subdivision shall not apply to [an associ-
38 ation or] a corporation for any calendar year for which the state racing
39 and wagering board certifies to the commissioner of taxation and
40 finance:
41 (i) by December fifteenth of the year immediately preceding such year,
42 that such [association or] corporation has been assigned for such year,
43 from the programs and races it requested, at least the minimum number of
44 programs and races prescribed in paragraph a of this subdivision, or, if
45 fewer than such number were assigned for such year, that the assignment
46 of such lesser number was for good cause due to factors beyond the
47 control of such [association or] corporation or because the board found
48 that it would be uneconomical or impractical for such [association or]
49 corporation to be assigned the prescribed number; and
50 (ii) by January thirty-first of the year immediately subsequent to
51 such year, that such [association or] corporation did conduct such
52 number of programs and races as were certified pursuant to subparagraph
53 (i) of this paragraph, or if it failed to conduct such number that such
54 failure was for good cause due to factors beyond its control or because
55 the board found it uneconomical or impractical for such [association or]
56 corporation to conduct such a number.
S. 6950 36 A. 9998
1 c. For any calendar year for which the state racing and wagering board
2 does not certify pursuant to the provisions of subparagraph (i) of para-
3 graph b of this subdivision with respect to [an association or] a corpo-
4 ration, the tax imposed by this section shall be computed by substitut-
5 ing the provisions of paragraph a of this subdivision for the provisions
6 of subdivision one of this section and shall pay the tax so computed to
7 the commissioner of taxation and finance. In such computation and
8 payment, all other provisions of this section shall apply as if the
9 provisions of this paragraph and of paragraph a of this subdivision had
10 been incorporated in whole in subdivision one of this section.
11 d. For any calendar year for which the state racing and wagering board
12 does not certify pursuant to the provisions of subparagraph (ii) of
13 paragraph b of this subdivision with respect to [an association or] a
14 corporation, the tax required to be paid hereunder for such year shall
15 be equal to the difference between the tax imposed pursuant to paragraph
16 a of this subdivision and the tax imposed pursuant to the provisions of
17 subdivision one of this section less one-half of such difference in
18 recognition of purses which were required to be paid, plus an additional
19 amount equal to ten per centum of such tax in the event of a willful
20 failure to comply with the provisions of subparagraph (ii) of paragraph
21 b of this subdivision, and such [association or] corporation shall pay
22 the tax so computed to the commissioner of taxation and finance on or
23 before March fifteenth of the following year. Notwithstanding the
24 provisions of this subdivision, in the event that upon appeal from the
25 determination of the state racing and wagering board that the certif-
26 ication provided in paragraph b of this subdivision will not be made, it
27 is finally determined that such board was erroneous in failing to so
28 certify and that any moneys received by the commissioner of taxation and
29 finance under paragraph c of this subdivision were paid in error, the
30 same shall be refunded at the rate of interest of six percent per annum.
31 Payment of such balance of tax due, or the anticipation of such payment,
32 shall not affect the determination of purses in the year in which such
33 tax arises or in the year in which such payment is made nor shall such
34 payment in any other manner be considered in any statutory or [contrac-
35 tural] contractual calculation of purse obligations.
36 e. Written notice of the certification of the board pursuant to the
37 provisions of paragraph b of this subdivision shall be given by the
38 board to the [appplicable association or] applicable corporation by the
39 dates therein specified. In like manner, written notice that such
40 certification will not be made shall be given by the board to the
41 commissioner of taxation and finance and the applicable [association or]
42 corporation by such dates.
43 4. The payment of the state tax imposed by this section shall be made
44 to the commissioner of taxation and finance on the last business day of
45 each month and shall cover taxes due for the period from the sixteenth
46 day of the preceding month through the fifteenth day of the current
47 month provided, however, that such payments required to be made on March
48 thirty-first shall include all taxes due and accruing through the last
49 full week of racing in March of the current year or as otherwise deter-
50 mined by the commissioner of taxation and finance, and shall be accompa-
51 nied by a report under oath, showing the total of all such contrib-
52 utions, together with such other information as the commissioner of
53 taxation and finance may require. A penalty of five per centum and
54 interest at the rate of one per centum per month from the date the
55 report is required to be filed to the date of payment of the tax shall
56 be payable in case any tax imposed by this section is not paid when due.
S. 6950 37 A. 9998
1 If the commissioner of taxation and finance determines that any moneys
2 received under this subdivision were paid in error, the commissioner of
3 taxation and finance may cause the same to be refunded without interest
4 out of any moneys collected thereunder, provided an application therefor
5 is filed with the commissioner of taxation and finance within one year
6 from the time the erroneous payment was made. Such taxes, interest and
7 penalties when collected, after the deduction of refunds of taxes erro-
8 neously paid, shall be paid by the commissioner of taxation and finance
9 into the general fund of the state treasury.
10 5. No county, city, town, village or other political subdivision of
11 the state may impose, levy or collect a tax on admission fees or tickets
12 of admission, on wagers made by patrons, in the form of purchases of
13 pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on
14 breaks, on dividends or payments made to winning bettors, or on that
15 part of the pari-mutuel pools or breaks to be retained by racing corpo-
16 rations [or associations] under this section, except as otherwise
17 provided in this chapter.
18 § 45. Section 228-a of the racing, pari-mutuel wagering and breeding
19 law, as added by chapter 687 of the laws of 1983, subdivision 2 as
20 amended by chapter 532 of the laws of 1989, paragraph (a) of subdivision
21 2 as amended by chapter 309 of the laws of 1996, paragraph (b) of subdi-
22 vision 2 as amended and subdivision 3 as added by chapter 346 of the
23 laws of 1990, is amended to read as follows:
24 § [228-a] 237. Capital improvements. 1. Definitions. For the purposes
25 of this section, the following terms shall have the meanings set forth
26 unless the context requires a different meaning:
27 a. "Board" shall mean the New York state racing and wagering board.
28 b. "Capital improvement" shall mean any addition to, replacement of or
29 remodeling of the physical plant, structures and equipment now or here-
30 after owned or leased by a racing corporation [or association] which is
31 used or is to be used by such corporation [or association] in connection
32 with the conduct of horse race meetings, and shall include improvements
33 to land but not land itself.
34 2. (a) Any non-franchised corporation [or association] authorized
35 under [sections two hundred twenty-two through seven hundred five of]
36 this chapter to conduct pari-mutuel betting at a race meeting on races
37 run thereat, may elect upon thirty days written notice to the racing and
38 wagering board to withhold from the pari-mutuel pool in addition to any
39 other amounts required by this section, one per centum of the total
40 deposits in pools resulting from regular and multiple on-track bets;
41 provided, however, that any such corporation [or association] withhold-
42 ing pursuant to this subdivision shall use at least fifty percent of
43 such one per centum exclusively for capital improvements as defined in
44 subdivision one of this section subject to the rules and regulations of
45 the racing and wagering board. An amount, not to exceed fifty percent
46 of such one per centum, may be used for advertising and promotion
47 expenses subject to the rules and regulations of the board. For the
48 purposes of this paragraph the term "advertising" shall be limited to
49 paid advertising through radio, television, the print media, direct mail
50 or billboards. Promotions shall mean activities which are intended to
51 increase the attendance at, or visibility of, any such corporation [or
52 association] and shall include premium give-aways, prizes, free admis-
53 sion, free parking, free programs, additional monies for purses or other
54 activities of a promotional nature which stimulate on track attendance.
55 In no event shall this section be construed to permit the payment of
56 salaries to employees of any such corporation [or association] who are
S. 6950 38 A. 9998
1 engaged in advertising or promotional activities, provided, however,
2 that monies credited to such capital improvement account on or before
3 July first, nineteen hundred ninety-six, as certified by the board,
4 shall not be expended for any such advertising and promotion as defined
5 herein. Such election shall terminate upon thirty days written notice
6 to the board.
7 (b) At least once annually, prior to approving any plan for the
8 expenditure of such capital improvement funds pursuant to this section,
9 the board shall, together with the track operator and representatives of
10 the horsemen's organization representing owners and trainers utilizing
11 the facility and representatives of the jockeys organization represent-
12 ing licensed jockeys and apprentice jockeys regularly riding or exercis-
13 ing at such facility, inspect the entire facility, including the area
14 commonly referred to as the backstretch, in order to determine whether
15 the capital improvement plan submitted by the [association or] corpo-
16 ration for board approval includes adequate provision for expenditures
17 relating to the continued health, safety and well-being of patrons,
18 jockeys, backstretch personnel and the horses in their care. After such
19 inspection, if the board shall determine that such proposed plan does
20 not include adequate provision for repairs and improvements necessary to
21 correct any conditions that it has determined to be unsafe or otherwise
22 deleterious to the health and safety of patrons, jockeys, employees or
23 horses, the board shall require the track operator to modify its capital
24 improvement plan to provide for the expenditure of funds for such
25 repairs and improvements.
26 3. On or after July first, nineteen hundred ninety such amounts as may
27 be withheld for the purposes of this section shall be deposited in a
28 trust fund, kept and maintained by such corporation [or association] and
29 administered by a trustee approved by the racing and wagering board for
30 the purpose of lending such sums and any interest thereon on an unse-
31 cured basis to such corporation [or association] exclusively for capital
32 improvements as defined in subdivision one of this section. All such
33 amounts borrowed by such corporation [or association] from such trust
34 shall be forgiven and deemed satisfied according to a schedule of depre-
35 ciation deductions for federal and New York state income tax purposes
36 for such related capital improvements. It is further provided that at
37 such time as such corporation [or association] shall surrender its pari-
38 mutuel license or franchise or fail to apply for a pari-mutuel license
39 for the succeeding year by December thirty-first of the preceding year
40 that the racing and wagering board may declare the trust fund at an end
41 and all sums therein deposited plus all sums due or owing from such
42 corporation [or association] to such trust shall be disposed of in
43 accordance with provisions of law to be enacted for such purpose. Such
44 trust shall be established and administered pursuant to the rules and
45 regulations of the racing and wagering board.
46 § 46. Section 229 of the racing, pari-mutuel wagering and breeding
47 law, subdivision 1 as separately amended by chapters 918 and 1007 of the
48 laws of 1983, paragraph (a) of subdivision 1 as amended by section 8 of
49 part A of chapter 60 of the laws of 2007, paragraph (b) of subdivision 1
50 as amended by section 13 of chapter 346 of the laws of 1990, paragraph
51 (e) of subdivision 1 as amended by section 2 of part B of chapter 59 of
52 the laws of 2005, subdivision 2 as amended by chapter 2 of the laws of
53 1995, paragraph c of subdivision 2 as amended by chapter 94 of the laws
54 of 2001, and subdivision 5 as added by chapter 354 of the laws of 2005,
55 is amended to read as follows:
S. 6950 39 A. 9998
1 § [229] 238. Disposition of pari-mutuel pools of [nonprofit racing
2 associations] the franchised corporation; percentage payable to state as
3 a tax; authority of counties or certain cities to impose a tax. 1. (a)
4 [Every nonprofit racing association] The franchised corporation author-
5 ized under this chapter to conduct pari-mutuel betting at a race meeting
6 or races run thereat shall distribute all sums deposited in any pari-mu-
7 tuel pool to the holders of winning tickets therein, provided such tick-
8 ets be presented for payment before April first of the year following
9 the year of their purchase, less an amount which shall be established
10 and retained by such [nonprofit racing association] franchised corpo-
11 ration of between twelve to seventeen per centum of the total deposits
12 in pools resulting from on-track regular bets, and fourteen to twenty-
13 one per centum of the total deposits in pools resulting from on-track
14 multiple bets and fifteen to twenty-five per centum of the total depos-
15 its in pools resulting from on-track exotic bets and fifteen to thirty-
16 six per centum of the total deposits in pools resulting from on-track
17 super exotic bets, plus the breaks. The retention rate to be established
18 is subject to the prior approval of the racing and wagering board. Such
19 rate may not be changed more than once per calendar quarter to be effec-
20 tive on the first day of the calendar quarter. "Exotic bets" and "multi-
21 ple bets" shall have the meanings set forth in section five hundred
22 nineteen of this chapter. "Super exotic bets" shall have the meaning set
23 forth in section three hundred one of this chapter. For purposes of this
24 section, a "pick six bet" shall mean a single bet or wager on the
25 outcomes of six races. The breaks are hereby defined as the odd cents
26 over any multiple of five for payoffs greater than one dollar five cents
27 but less than five dollars, over any multiple of ten for payoffs greater
28 than five dollars but less than twenty-five dollars, over any multiple
29 of twenty-five for payoffs greater than twenty-five dollars but less
30 than two hundred fifty dollars, or over any multiple of fifty for
31 payoffs over two hundred fifty dollars. Out of the amount so retained
32 there shall be paid by such [nonprofit racing association] franchised
33 corporation to the commissioner of taxation and finance, as a reasonable
34 tax by the state for the privilege of conducting pari-mutuel betting on
35 the races run at the race meetings held by such [nonprofit racing asso-
36 ciation] franchised corporation, the following percentages of the total
37 pool for regular and multiple bets five per centum of regular bets and
38 four per centum of multiple bets plus twenty per centum of the breaks;
39 for exotic wagers seven and one-half per centum plus twenty per centum
40 of the breaks, and for super exotic bets seven and one-half per centum
41 plus fifty per centum of the breaks. For the period June first, nineteen
42 hundred ninety-five through September ninth, nineteen hundred ninety-
43 nine, such tax on regular wagers shall be three per centum and such tax
44 on multiple wagers shall be two and one-half per centum, plus twenty per
45 centum of the breaks. For the period September tenth, nineteen hundred
46 ninety-nine through March thirty-first, two thousand one, such tax on
47 all wagers shall be two and six-tenths per centum and for the period
48 April first, two thousand one through December thirty-first, two thou-
49 sand [eight] nine, such tax on all wagers shall be one and six-tenths
50 per centum, plus, in each such period, twenty per centum of the breaks.
51 Payment to the New York state thoroughbred breeding and development fund
52 by such [association] franchised corporation shall be one-half of one
53 per centum of total daily on-track pari-mutuel pools resulting from
54 regular, multiple and exotic bets and three per centum of super exotic
55 bets provided, however, that for the period September tenth, nineteen
56 hundred ninety-nine through March thirty-first, two thousand one, such
S. 6950 40 A. 9998
1 payment shall be six-tenths of one per centum of regular, multiple and
2 exotic pools and for the period April first, two thousand one through
3 December thirty-first, two thousand eight, such payment shall be seven-
4 tenths of one per centum of such pools.
5 (b) An amount equal to fifty per centum of any compensation received
6 by a [nonprofit racing association or] franchised corporation from
7 simulcasting or from wagering conducted outside the United States or
8 outside New York state and within the United States shall be distributed
9 to purses, except with respect to such compensation received from
10 Connecticut which shall be computed as a percentage of wagering handle
11 in a manner approved by the state racing and wagering board.
12 [(e)] (c) An amount equal to fifty per centum of any compensation
13 received by the franchised corporation from simulcasting or from wager-
14 ing conducted outside the United States shall be distributed to purses.
15 (d) The pari-mutuel tax rate authorized by paragraph (a) of this
16 subdivision shall be effective so long as a [non-profit racing associ-
17 ation] franchised corporation notifies the racing and wagering board by
18 August fifteenth of each year that such pari-mutuel tax rate is effec-
19 tive of its intent to conduct a race meeting at Aqueduct racetrack
20 during the months of December, January, February, March and April. For
21 purposes of this paragraph such race meeting shall consist of not less
22 than ninety-five days of racing. Not later than May first of each year
23 that such pari-mutuel tax rate is effective, the racing and wagering
24 board shall determine whether a race meeting at Aqueduct racetrack
25 consisted of the number of days as required by this paragraph. In deter-
26 mining the number of race days, cancellation of a race day because of an
27 act of God, which the racing and wagering board approves or because of
28 weather conditions that are unsafe or hazardous which the racing and
29 wagering board approves shall not be construed as a failure to conduct a
30 race day. Additionally, cancellation of a race day because of circum-
31 stances beyond the control of such [non-profit racing association] fran-
32 chised corporation for which the racing and wagering board gives
33 approval shall not be construed as a failure to conduct a race day. If
34 the racing and wagering board determines that the number of days of
35 racing as required by this paragraph have not occurred then the pari-mu-
36 tuel tax rate in paragraph (a) of this subdivision shall revert to the
37 pari-mutuel tax rates in effect prior to January first, nineteen hundred
38 ninety-five. Such [non-profit racing association] franchised corporation
39 shall pay to the racing and wagering board as a regulatory fee, which
40 fee is hereby levied, fifty hundredths of one per centum of the total
41 daily on-track pari-mutuel pools of such [association] franchised corpo-
42 ration.
43 2. a. Subject to the provisions of [subdivision three of] this section
44 the payment of such state tax shall be made to the commissioner of taxa-
45 tion and finance on the last business day of each month and shall cover
46 taxes due for the period from the sixteenth day of the preceding month
47 through the fifteenth day of the current month provided, however, that
48 such payments required to be made on March thirty-first shall include
49 all taxes due and accruing through the last full week of racing in March
50 of the current year or as otherwise determined by the commissioner, and
51 shall be accompanied by a report under oath, showing such information as
52 the commissioner may require. A penalty of five per centum and interest
53 at the rate of one per centum per month from the date the report is
54 required to be filed to the date of the payment of the tax shall be
55 payable in case any tax imposed by this section is not paid when due. If
56 the commissioner determines that any moneys received by the commissioner
S. 6950 41 A. 9998
1 under this section were paid in error, the commissioner may cause the
2 same to be refunded without interest out of any moneys collected there-
3 under, provided an application therefor is filed with the commissioner
4 within one year from the time the erroneous payment was made. Such
5 taxes, interest and penalties when collected, after the deduction of
6 refunds of taxes erroneously paid, shall be paid by the commissioner
7 into the general fund of the state treasury.
8 b. The balance of the retained percentage of such pool and of the
9 breaks shall be held by such [nonprofit racing association] franchised
10 corporation for its corporate purposes, except as provided in paragraph
11 c of this subdivision.
12 c. An amount equal to three per centum of the total pools resulting
13 from on-track regular bets and an amount equal to four per centum of the
14 total pools resulting from on-track multiple and exotic bets, and twelve
15 per centum of the total pools resulting from super exotic bets shall be
16 used exclusively for purses (including stakes, premiums and prizes)
17 awarded in races conducted by such [association] franchised corporation
18 provided, however, that during the period June first, nineteen hundred
19 ninety-five through September ninth, nineteen hundred ninety-nine, such
20 amounts for on-track regular and on-track multiple bets shall be two and
21 thirty-five hundredths per centum and five and one-half per centum,
22 respectively. During the period September tenth, nineteen hundred nine-
23 ty-nine through March thirty-first, two thousand one, such amounts for
24 on-track regular, multiple and exotic bets shall be five and four
25 hundredths per centum and for the period April first, two thousand one
26 through July twenty-fourth, two thousand one and after June thirtieth,
27 two thousand four, such amount for such bets shall be five and ninety-
28 four hundredths per centum and on and after July twenty-fifth, two thou-
29 sand one through June thirtieth, two thousand four, such amounts for all
30 on-track bets shall be five and forty hundredths per centum. Any portion
31 of [said] such per centum not so used during any year shall be so used
32 during the following year, failing which it shall be payable to the
33 commissioner as additional tax. Such additional tax shall be payable on
34 or before April first in the year following the year in which it is not
35 so used and the provisions of paragraph a of this subdivision shall be
36 applicable thereto except as to the time of payment.
37 3. [If the state racing and wagering board shall certify for a speci-
38 fied number of years amounts not exceeding five million dollars with
39 respect to any one year for all nonprofit racing associations as being
40 required for payment of the cost of acquisition of racing facilities,
41 including real estate, or the stock of corporations owning such facili-
42 ties, and the cost of erection, improvement or acquisition of seating
43 stands, buildings and other structures, grounds or track, the plans for
44 which have been approved by the state racing and wagering board, or for
45 the payment of the cost of amortization of debt contracted with the
46 approval of said board for any or all of such purposes, including in
47 such cost the interest on such debt and other costs incurred by such
48 nonprofit racing associations as a result of such amortization obli-
49 gation, such tax by the state shall be paid and collected with respect
50 to each year as to each such nonprofit racing association as follows:
51 (1) nothing out of the first sums so retained up to an amount equal to
52 the amount so certified for such year with respect to such association,
53 which first sums so retained shall be exempt from such tax and no lien
54 or charge shall attach thereto in favor of the state for the payment of
55 any tax; (2) one hundred per centum out of the next sums so retained
56 until the amount paid as tax equals the percentages specified in para-
S. 6950 42 A. 9998
1 graph (i) or (ii) of subdivision one of this section, as the case may
2 be, of the total deposits theretofore made; and thereafter (3) out of
3 the remainder of the sums so retained, the percentages specified in
4 paragraph (i) or (ii) of subdivision one of this section, as the case
5 may be, of the total deposits thereafter made.
6 As a condition for granting its approval of any such plans for the
7 erection, improvement or acquisition of seating stands, buildings or
8 other structures, grounds or track, the state racing and wagering board
9 shall, wherever practicable, require any such nonprofit racing associ-
10 ation to award any contracts therefor after and as the result of compet-
11 itive bidding, and the board is hereby authorized to adopt such rules
12 and regulations as it deems necessary fully to effectuate this require-
13 ment.
14 4.] No county, city, town, village or other political subdivision of
15 the state may impose, levy or collect a tax on admission fees or tickets
16 of admission, on wagers made by patrons in the form of purchases of
17 pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on
18 breaks, on dividends or payments made to winning bettors, or on [that
19 part of the pari-mutuel pools or breaks to be] revenue retained by
20 [nonprofit racing associations under this section] the franchised corpo-
21 ration, except as provided in former article two-B of the general city
22 law, and as otherwise provided in [sections two hundred twenty-two
23 through seven hundred five of] this chapter.
24 [5.] 4. Notwithstanding any inconsistent provision of this chapter,
25 whenever [a non-profit racing association] the franchised corporation
26 operates the Breeder's Cup Meet at one of its racing facilities, such
27 [non-profit racing association] franchised corporation shall not be
28 required to pay to the department of taxation and finance pursuant to
29 this section the pari-mutuel tax on the pari-mutuel pools of such [non-
30 profit racing association's] franchised corporation's races during the
31 Breeder's Cup Meet. For the purposes of this subdivision, the Breeder's
32 Cup Meet shall consist of three days: the day on which the Breeder's Cup
33 races are conducted, the day preceding such races and the day subsequent
34 to such races.
35 § 47. Section 18 of chapter 346 of the laws of 1990 amending the
36 racing, pari-mutuel wagering and breeding law and other laws relating to
37 simulcasting and the imposition of certain taxes is REPEALED.
38 § 48. Section 231 of the racing, pari-mutuel wagering and breeding law
39 is amended to read as follows:
40 § [231] 239. Books and records of pari-mutuel betting. Every corpo-
41 ration or association conducting a horse race meeting at which pari-mu-
42 tuel betting on the races run at such meeting is authorized shall keep
43 its books and records so as to clearly show by a separate record the
44 total amount of money contributed to every pari-mutuel pool, including
45 daily double pools, if any. The [state tax commission] department of
46 taxation and finance or its duly authorized representatives shall at all
47 reasonable times have access to all such books and records for the
48 purpose of examining and checking the same and ascertaining whether or
49 not the proper amount or amounts due to the state are being paid by such
50 licensed or franchised corporation [or association].
51 § 49. Section 231-a of the racing, pari-mutuel wagering and breeding
52 law, as added by chapter 672 of the laws of 1997, is amended to read as
53 follows:
54 § [231-a] 240. Yearly audit. 1. The [non-profit racing association]
55 franchised corporation shall, at its own expense, cause its annual
56 financial statements to be audited in accordance with generally accepted
S. 6950 43 A. 9998
1 auditing standards by a qualified independent certified public account-
2 ant approved by the franchise oversight board. The annual financial
3 statements shall be prepared on a comparative basis for the current and
4 prior fiscal year and shall present the financial position and results
5 of operations in conformity with generally accepted accounting princi-
6 ples. [Two] Three manually-signed copies of the audited financial state-
7 ments, together with the report thereon of the [non-profit racing asso-
8 ciation's] franchised corporation's independent certified public
9 accountant shall be filed: one with the board [and], one with such
10 [non-profit racing association] franchised corporation and one with the
11 office of the attorney general, not later than ninety days following the
12 end of the fiscal year. All such annual financial statements and yearly
13 audits shall be subject to audit by the state comptroller and shall be
14 public records.
15 2. The [non-profit racing association] franchised corporation shall
16 require the independent certified public accountant to render the
17 following additional reports:
18 a. a report on material weakness in accounting, internal controls, and
19 business and management practices discovered in the ordinary course of
20 preparing such audited financial statements. Whenever in the opinion of
21 the independent certified public accountant there exists no material
22 weaknesses in accounting, internal controls and business and management
23 practices, no report will be required; and
24 b. a report expressing the opinion of the independent certified public
25 accountant that based on his examination of the financial statements the
26 [non-profit racing association] franchised corporation has followed, in
27 all material respects, during the period covered by his examination, the
28 system of accounting and internal control as filed with the board. When-
29 ever in the opinion of the independent certified public accountant the
30 [non-profit racing association] franchised corporation has deviated from
31 the system of accounting and internal controls filed with the board or
32 the accounts, records, and control procedures examined are not main-
33 tained by the [non-profit racing association] franchised corporation in
34 accordance with generally accepted accounting standards the report shall
35 enumerate such deviations. The independent certified public accountant
36 shall also report on areas of the system no longer considered effective,
37 and shall make recommendations in writing regarding improvements in the
38 system of accounting and internal controls.
39 3. If the independent certified public accountant who was previously
40 engaged to audit the [non-profit racing association's] franchised corpo-
41 ration's financial statements resigns or is dismissed as the [non-profit
42 racing association's] franchised corporation's auditor, or another inde-
43 pendent certified public accountant is engaged as auditor, the [non-pro-
44 fit racing association] franchised corporation shall file a report with
45 the board within ten days following the end of the month in which such
46 event occurs, setting forth the following:
47 a. the date of such resignation, dismissal, or engagement;
48 b. whether in connection with the audits of the two most recent years
49 preceding such resignation, dismissal, or engagement there were any
50 disagreements with the former accountant on any matter of accounting
51 principles or practices, financial statement disclosure, or auditing
52 scope or procedure, which disagreements if not resolved to the satisfac-
53 tion of the former accountant would have caused him to make reference in
54 connection with his report to the subject matter of the disagreement;
55 including a description of each such disagreement. The disagreements to
56 be reported include those resolved and those not resolved; and
S. 6950 44 A. 9998
1 c. whether the former accountant's report on the financial statements
2 for any of the past two years contained an adverse opinion or disclaimer
3 of opinion or was qualified. The nature of such adverse [option] opin-
4 ion, disclaimer of opinion, or qualification shall be described.
5 4. Upon direction of the board, the [non-profit racing association]
6 franchised corporation shall, at its own expense, cause its business and
7 managerial practices to be audited.
8 § 50. Section 232 of the racing, pari-mutuel wagering and breeding law
9 is amended to read as follows:
10 § [232] 241. Disposition of unpaid money due on account of pari-mutu-
11 el tickets not presented. The sum held by any corporation [or associ-
12 ation] authorized to conduct pari-mutuel betting for payment of
13 outstanding winning pari-mutuel tickets and for refunding the price of
14 pari-mutuel tickets shall be retained by such corporation [or associ-
15 ation] for such purposes until April first of the succeeding year;
16 provided, however, that ninety-five [percentum] per centum of such sum
17 remaining unclaimed as of the last day of February of such year shall be
18 paid to the [state tax commission] department of taxation and finance by
19 March fifteenth. On April tenth, the balance of such sum remaining
20 unclaimed and any other unclaimed amount received in the course of
21 conducting pari-mutuel betting shall be paid to the [state tax commis-
22 sion] department of taxation and finance. A penalty of five per centum
23 and interest at the rate of one per centum per month from the due date
24 to the date of payment of the unclaimed balance due March fifteenth or
25 April tenth, as the case may be, shall be payable in case such balance
26 is not paid when due. Such amounts, interest and penalties when
27 collected shall be paid by the [state tax commission] department of
28 taxation and finance into the general fund of the state treasury.
29 § 51. Section 233 of the racing, pari-mutuel wagering and breeding law
30 is REPEALED.
31 § 52. Section 235 of the racing, pari-mutuel wagering and breeding law
32 is amended to read as follows:
33 § [235] 242. Races for horses bred in the state. The state racing and
34 wagering board in granting a license to a corporation [or association]
35 to conduct running or steeplechase races at its racetrack, if it deems
36 such requirement practicable, may require such corporation [or associ-
37 ation] to provide for at least one race during the racing season in
38 which the entries shall be exclusively horses foaled in this state.
39 § 53. Section 236 of the racing, pari-mutuel wagering and breeding
40 law, as amended by chapter 416 of the laws of 2004, is amended to read
41 as follows:
42 § [236] 243. Free passes, cards or badges. A corporation [or associ-
43 ation] licensed or franchised to conduct pari-mutuel betting on races
44 run on its racetrack, shall not issue free passes, cards or badges
45 except to persons hereafter described: officers and employees of the
46 corporation [or association] conducting the race meeting, members, offi-
47 cers and employees of the state racing and wagering board, members and
48 employees of the jockey club, members and employees of the national
49 steeplechase and hunt association, members of turf organizations of
50 other states and foreign countries, public officers engaged in the
51 performance of their duties, persons actually employed and accredited by
52 the press to attend such meetings, owners, stable managers, trainers,
53 jockeys, jockey managers, grooms, concessionaires, spouses, domestic
54 partners and children of owners, trainers and jockeys, and other persons
55 whose actual duties require their presence at such racetrack. The issu-
56 ance of free passes, cards or badges shall be under the rules and regu-
S. 6950 45 A. 9998
1 lations of the state racing and wagering board and a list of all persons
2 to whom free passes, cards or badges are issued shall be filed with the
3 state racing and wagering board.
4 § 54. Sections 237, 238 and 239 of the racing, pari-mutuel wagering
5 and breeding law are amended to read as follows:
6 § [237] 244. Revocation of license or franchise. The state racing and
7 wagering board may revoke a license issued by it under [sections two
8 hundred twenty-two through seven hundred five of] this chapter or a
9 franchise granted pursuant to section two hundred six of this article if
10 the corporation [or association] to which such license or franchise
11 shall have been issued, or its officers or directors, shall not conduct
12 racing at its track, including pari-mutuel betting on races thereat, in
13 accordance with the terms and conditions of such license or franchise,
14 with the rules of such board and with the provisions of this chapter; or
15 if such corporation [or association] or its officers or directors shall
16 knowingly permit on its grounds or within the enclosure of its race-
17 track, lotteries, pool selling or bookmaking, or any other kind of
18 gambling, in violation of [sections two hundred twenty-two through seven
19 hundred five of] this chapter or of the penal law.
20 § [238] 245. Hearing on refusal or revocation of license or franchise.
21 If the state racing and wagering board shall refuse to grant a license
22 applied for under [sections two hundred twenty-two through seven hundred
23 five of] this chapter, or shall determine to revoke such a license
24 granted by it or a franchise pursuant to sections two hundred twelve and
25 two hundred forty-four of this article, the board shall give to the
26 applicant or licensee notice of a time and place for a hearing before
27 the board, at which the board will hear such applicant [or], licensee or
28 franchise corporation in reference thereto. The board may continue such
29 hearing from time to time for the convenience of all parties. Any of the
30 parties affected by such hearing may be represented by counsel, and the
31 board may be represented by the attorney general or an assistant attor-
32 ney general. In the conduct of such hearing the board shall not be bound
33 by technical rules of evidence, but all evidence offered before the
34 board shall be reduced to writing, and such evidence together with the
35 exhibits, if any, and the findings of the board, shall be permanently
36 preserved and shall constitute the record of the board in such case. In
37 connection with such hearing, each member of the board shall have the
38 power to administer oaths and examine witnesses, and may issue subpoenas
39 to compel the attendance of witnesses, and the production of all neces-
40 sary reports, books, papers, documents, correspondence and other
41 evidence. The board may, if occasion shall require, by order, refer to
42 one or more of its members, the duty of taking testimony in such matter,
43 and to report thereon to the board, but no determination shall be made
44 therein except by the board. Within thirty days after such hearing, the
45 board shall make a final determination. If it determines that such
46 license shall not be granted, or that a license issued by it shall be
47 revoked, or a franchise revoked pursuant to sections two hundred twelve
48 and two hundred forty-four of this article, it shall make an order
49 accordingly, and shall cause such order to be entered on its minutes and
50 a copy thereof served on such applicant [or], licensee or franchised
51 corporation, as the case may be. The action of the board in refusing to
52 grant a license, or in revoking a license, or in revoking a franchise
53 pursuant to sections two hundred twelve and two hundred forty-four of
54 this article, shall be reviewable in the supreme court in the manner
55 provided by the provisions of article seventy-eight of the civil prac-
56 tice law and rules.
S. 6950 46 A. 9998
1 § [239] 246. Approval of plans of corporation [or association]. The
2 state racing and wagering board shall not grant to a corporation [or
3 association] hereafter formed pursuant to [sections two hundred one
4 through two hundred twenty-one of] this chapter, a license to conduct a
5 running or steeplechase race meeting within the state until such corpo-
6 ration [or association] shall have submitted to the board a statement of
7 the location of its proposed grounds and racetrack, together with a plan
8 of such racetrack, and plans of all buildings, seating stands and other
9 structures, in such form as the board may prescribe, and such plans
10 shall have been approved by the board. The board at the expense of the
11 applicant may order such engineering examination thereof as the board
12 may deem necessary. Alterations of buildings, seating stands or other
13 structures, and the erection of new or additional buildings, seating
14 stands or other structures on the grounds of any corporation [or associ-
15 ation] heretofore or hereafter formed pursuant to [sections two hundred
16 one through two hundred twenty-one of] this chapter may be made only
17 with the approval of the board and after examination and inspection of
18 the plans thereof and the issuance of a permit therefor by such board.
19 The approval of the certificate of incorporation of such corporation [or
20 association] shall not be deemed to vest in it the right to a license to
21 conduct running or steeplechase race meetings at such race course or
22 racetrack unless such grounds, track, buildings, seating stands and
23 other structures shall be completed in accordance with the plans
24 approved by the board.
25 § 55. Section 240 of the racing, pari-mutuel wagering and breeding
26 law, as amended by chapter 286 of the laws of 1985, is amended to read
27 as follows:
28 § [240] 247. Racing zones. There are hereby created two racing zones
29 to be known as the first zone and the second zone. The first zone shall
30 include all of the counties in the first, second, ninth, tenth, eleventh
31 and twelfth judicial districts. The second zone shall include all the
32 other counties of the state. Not more than six corporations [or associ-
33 ations] shall hereafter be licensed by the state racing and wagering
34 board or franchised by the state to conduct a race course or race meet-
35 ing for running races or steeplechases at which pari-mutuel betting
36 shall be authorized within the first zone, and not more than three of
37 such corporations [or associations] shall hereafter be so licensed with-
38 in the second zone. The state racing and wagering board shall not here-
39 after approve the incorporation of such a corporation [or association]
40 for conducting a race course or race meeting within the second zone if
41 the location of the proposed race course of such corporation [or associ-
42 ation] is within seventy-five miles of the race course of another such
43 corporation [or association].
44 § 56. Section 241 of the racing, pari-mutuel wagering and breeding
45 law, as amended by chapter 687 of the laws of 1988, is amended to read
46 as follows:
47 § [241] 248. Racing season; allotment of dates for racing. In the
48 assignment of dates by the state racing and wagering board to corpo-
49 rations [or associations] for conducting running races or steeplechases
50 no conflict shall be deemed to exist by reason of duplication of dates
51 as between race meetings in the first zone and race meetings in the
52 second zone, nor as between race meetings within a zone if the race
53 courses at which such meetings are held are at least thirty-five miles
54 apart in the first zone and at least seventy-five miles apart in the
55 second zone, except that a minimum of [twenty-four] thirty-six days of
56 racing shall be assigned exclusively to the second zone unless the
S. 6950 47 A. 9998
1 governor determines that a sufficient emergency exists for reducing such
2 number of days of racing, in which event the state racing and wagering
3 board is then authorized to assign a lesser number of days of racing to
4 the second zone. The state racing and wagering board may separately
5 apportion to the several corporations [or associations] licensed or
6 franchised to conduct running races or steeplechases as many of the
7 racing days for the season, not to exceed the maximum number of racing
8 days permitted by law.
9 § 57. Sections 242 and 243 of the racing, pari-mutuel wagering and
10 breeding law are amended to read as follows:
11 § [242] 249. Pari-mutuel employees to be citizens and residents. At
12 least eighty-five per centum of the persons employed each day by a
13 racing corporation [or association] conducting a race meeting, to oper-
14 ate or assist in the operation of its pari-mutuel system of betting
15 shall be citizens of the United States and residents of the state of New
16 York for at least two years preceding the date of their employment.
17 Each person, prior to his employment by a racing corporation [or associ-
18 ation], shall be required to execute and submit to such racing corpo-
19 ration [or association] a duly verified affidavit setting forth his
20 qualifications for employment pursuant to the provisions of this
21 section.
22 § [243] 250. Power of state racing and wagering board to impose
23 penalties. In addition to its power to suspend or revoke occupational
24 licenses, licenses to conduct running races and race meetings or stee-
25 plechases and steeplechase meetings and licenses to conduct pari-mutuel
26 betting at a race course or race meeting for running races or steeple-
27 chases issued by it, the state racing and wagering board is hereby
28 authorized to impose civil penalties upon any such licensee or franchi-
29 see for a violation of any provision of sections two hundred twenty-two
30 through seven hundred five of this chapter or the rules and regulations
31 promulgated pursuant thereto, not exceeding five thousand dollars for
32 each violation, which penalties shall be paid into the state treasury.
33 Each day upon which such violation continues may be considered by the
34 board as a separate violation in assessing the amount of civil penalty
35 to be imposed. Any penalty so imposed shall be sued for by the attorney
36 general in the name of the people of the state of New York, if so
37 directed by the board. The amount of the penalty collected by the board
38 or recovered in any such action, or paid to the board upon a compromise
39 as hereinafter provided, shall be paid by the department of state into
40 the state treasury and credited to the general fund. The board, for
41 cause shown and in its discretion, may extend the time for the payment
42 of such penalty and, by compromise may accept less than the amount of
43 such penalty as imposed in settlement thereof. The powers granted by
44 this section shall not be affected by the circumstances that any such
45 license shall have expired by its terms prior to the imposition of such
46 penalty.
47 § 58. Section 244 of the racing, pari-mutuel wagering and breeding
48 law, subdivision 3 as amended by chapter 200 of the laws of 1998, is
49 amended to read as follows:
50 § [244] 251. Definitions. As used in sections two hundred [forty-
51 five] fifty-two through two hundred [forty-nine] fifty-six of this
52 [chapter] article, the following terms shall mean and include:
53 1. "Fund." The New York state thoroughbred breeding and development
54 fund corporation established by section two hundred [forty-five] fifty-
55 two of this [chapter] article.
S. 6950 48 A. 9998
1 2. "Board." The board of directors of the corporation as such board is
2 constituted pursuant to section two hundred [forty-five] fifty-two of
3 this [chapter] article.
4 3. "New York-bred." A thoroughbred which is registered in the registry
5 designated and administered by such fund in accordance with such rules
6 concerning domicile and registration requirements as may be established
7 by the fund and: was on or before December thirty-first, nineteen
8 hundred eighty, foaled in this state; or is on or after January first,
9 nineteen hundred eighty-one, either: (i) sired by a New York stallion
10 and foaled from a mare domiciled in this state; (ii) foaled from a mare
11 domiciled in this state which mare has been serviced back exclusively by
12 a New York stallion in the year of such foaling; or (iii) on or after
13 January first, nineteen hundred ninety-five foaled from a mare domiciled
14 in New York. The fund shall report to the governor and the legislature
15 on or before December fifteenth, nineteen hundred ninety-nine effects of
16 paragraph (iii) of this subdivision on the New York state breeding
17 industry.
18 4. "Breeder." The owner of the mare at the time the mare foals a New
19 York-bred.
20 5. "New York stallion." A stallion standing in New York at the time he
21 was bred to the dam of a New York-bred; a stallion must be registered
22 with the fund or its designated agent and must be (i) owned by a resi-
23 dent of this state and standing the entire stud season in this state; or
24 (ii) owned by a resident of another state but standing the entire stud
25 season in this state and leased by a resident of this state for a term
26 of not less than two years; or (iii) owned jointly by a resident of this
27 state together with a resident of another state and standing the entire
28 stud season in this state and leased by a resident of this state for a
29 term of not less than two years. Leases shall be filed with the fund or
30 its designated agent.
31 6. "Stallion owner." The owner of a stallion standing in New York at
32 the time he was bred to the dam of a New York-bred.
33 7. "Races." Races upon which pari-mutuel wagering is conducted at
34 thoroughbred race meetings of racing [associations or] corporations as
35 authorized by the state racing and wagering board.
36 § 59. Sections 245 and 246 of the racing, pari-mutuel wagering and
37 breeding law are renumbered sections 252 and 253.
38 § 60. Section 247 of the racing, pari-mutuel wagering and breeding
39 law, subdivision 1 as amended by chapter 286 of the laws of 1985, the
40 opening paragraph of subdivision 2 as amended by chapter 919 of the laws
41 of 1986, paragraphs a, b, and c of subdivision 2 as amended by chapter
42 631 of the laws of 1999, paragraph d of subdivision 2 as amended by
43 chapter 455 of the laws of 2003, and subparagraph (ii) of paragraph d of
44 subdivision 2 as amended by chapter 32 of the laws of 2004, is amended
45 to read as follows:
46 § [247] 254. Resources of fund. 1. a. The fund is authorized and
47 directed to collect and receive in each calendar year from any racing
48 [association or] corporation or regional off-track betting corporations
49 from on-track wagers or off-track wagers, as the case may be, the sum of
50 one-half of one percent of regular, multiple and exotic wagers, and
51 three percent of super exotic wagers and to deposit such moneys in a
52 bank or banks in this state.
53 b. The fund is authorized to receive one percent of the total wagered
54 after payout of prizes for the first year of operation of video lottery
55 gaming at Aqueduct racetrack, one and one-quarter percent of the total
56 wagered after payout of prizes for the second year of operation, and one
S. 6950 49 A. 9998
1 and one-half percent of the total wagered after payout of prizes for the
2 third year of operation and thereafter, for an appropriate breeding fund
3 for the manner of racing conducted at Aqueduct racetrack, Belmont Park
4 racetrack and Saratoga race course.
5 2. The fund is authorized to dispose and distribute the moneys
6 received by it pursuant to [the provisions of sections two hundred twen-
7 ty-two through seven hundred five of] this chapter and in accordance
8 with distribution schedules promulgated by the fund and adopted in the
9 rules and regulations of the board. Such schedules shall be developed
10 and based on reasonable estimates of fund income for the fiscal year of
11 the fund and made available prior to January first of each year. In
12 formulating distribution schedules, the board of directors may determine
13 that for those New York-breds foaled after December thirty-first, nine-
14 teen hundred eighty-seven, the amounts to be made available in awards to
15 the breeders and owners of such New York-breds which have been sired by
16 registered New York stallions may exceed the amounts to be made avail-
17 able to the breeders and owners of such New York-breds sired by other
18 than registered New York stallions. Such schedules may be adjusted, from
19 time to time, by majority vote of the board of directors, for the
20 following purposes and no other:
21 a. An amount as shall be determined by the fund, but not in excess of
22 forty-three percent as awards to breeders of New York-breds finishing
23 first, second, third and fourth in pari-mutuel races run in New York
24 state; except that during any calendar year when the total percentage of
25 breeder awards exceeds forty-three percent of total revenue, the fund,
26 by a two-thirds vote of its board, may increase the percentage of reven-
27 ue allotted to breeder awards, but in no event shall the allotment
28 exceed fifty percent of total revenue.
29 b. An amount as shall be determined by the fund, but not in excess of
30 thirty-three percent as premiums to owners of New York-breds finishing
31 first, second, third and fourth in pari-mutuel races run in New York
32 state and not restricted to New York-breds; except that during any
33 calendar year when the total percentage of owner awards exceeds thirty-
34 three percent of total revenue, the fund, by a two-thirds vote of its
35 board, may increase the percentage of revenue allotted to owner awards,
36 but in no event shall the allotment exceed forty percent of total reven-
37 ue.
38 c. An amount as shall be determined by the fund but not in excess of
39 fifteen percent as awards to stallion owners, whose New York stallions
40 have sired New York-breds finishing first, second, third and fourth in
41 pari-mutuel races run in New York state; except that during any calendar
42 year when the total percentage of stallion awards exceeds fifteen
43 percent of total revenue, the fund, by a two-thirds vote of its board,
44 may increase the percentage of revenue allotted to stallion awards, but
45 in no event shall the allotment exceed twenty percent of total revenue.
46 d. (i) An amount as shall be determined by the fund but not in excess
47 of forty-four percent to provide purse moneys for races exclusively for
48 New York-breds, the conditions of which have been approved by the fund.
49 Provided, however, that the fund shall set aside forty percent of the
50 funds allotted under this subdivision to tracks operated by [associ-
51 ations or] corporations licensed or franchised in accordance with the
52 provisions of section two hundred [seven] five or section two hundred
53 [eight] six of this article except that in addition to the other amounts
54 allotted by the fund under this paragraph, seventy-five percent of fund
55 revenues derived from payments received in accordance with subdivision
56 one of section five hundred twenty-seven of this chapter shall be allot-
S. 6950 50 A. 9998
1 ted exclusively to purses at a track operated by a corporation [or asso-
2 ciation] licensed under the provisions of section two hundred [seven]
3 five of this article.
4 (ii) The fund may direct a portion or portions of revenues allocated
5 in this paragraph and dedicated to a racing [association or] corporation
6 licensed in accordance with section two hundred [seven] five of this
7 article to pari-mutuel races at such track which are not restricted to
8 New York-breds provided that the revenues so allocated shall only be
9 used to enrich any purses awarded to New York-breds finishing first,
10 second, third, fourth or fifth in such non-restricted races.
11 e. An amount as shall be determined by the fund but not in excess of
12 five percent to advance and promote breeding and raising of thorough-
13 breds in this state by the publication and dissemination of information
14 relating thereto, and the encouragement of interest, including among
15 youth, in the breeding and raising of New York-breds, and to advance and
16 promote interest generally in agricultural pursuits.
17 f. An amount as shall be determined by the fund but not in excess of
18 four percent for the administration and management of the fund.
19 g. An amount equal to two percent thereof for the promotion of equine
20 research through a fund of a land grant university within this state
21 with a regents approved veterinary college facility.
22 All moneys of the fund in excess of seventy-five thousand dollars on
23 hand at the end of each calendar year shall be apportioned between and
24 paid to the state and the regional off-track betting corporations based
25 on the level of contributions to such fund during the year by the racing
26 [associations or] corporations and the regional off-track betting corpo-
27 rations, respectively. Payment of such money to the state and such
28 corporations, respectively, shall be made by March fifteenth of the year
29 following the close of such calendar year.
30 That portion returned to the regional off-track betting corporations
31 shall be distributed prior to May first of such year to the participat-
32 ing local governments within each region in the same proportion as the
33 net earnings of such corporation for the prior calendar year were
34 distributed.
35 § 61. Sections 248, 249 and 250 of the racing, pari-mutuel wagering
36 and breeding law are renumbered sections 255, 256 and 257, respectively.
37 § 62. Article 2-A of the racing, pari-mutuel wagering and breeding law
38 is REPEALED.
39 § 63. The opening paragraph of section 521 of the racing, pari-mutuel
40 wagering and breeding law is amended to read as follows:
41 In order to accomplish the objectives of this article, the board shall
42 have the power, subject to the provisions of this article but without
43 limiting the generality of any provision of [sections two hundred twen-
44 ty-two through seven hundred five of] this chapter, to approve a plan of
45 operation submitted by any regional corporation created under article
46 five of this chapter.
47 § 64. Subdivision 1 of section 522 of the racing, pari-mutuel wagering
48 and breeding law is amended to read as follows:
49 1. The board may suspend its approval of any plan of operation if the
50 regional corporation whose plan of operation has been approved or its
51 officers or directors fail to conduct off-track pari-mutuel betting on
52 horse races in accordance with the provisions of the plan of operation,
53 with the applicable rules of the board or with the provisions of this
54 article, article five and article six of this chapter, as the case may
55 be; or if such corporation or its officers or directors shall knowingly
56 permit on any of its premises lotteries, pool-selling or bookmaking or
S. 6950 51 A. 9998
1 any other kind of gambling, in violation of [sections two hundred twen-
2 ty-two through seven hundred five of] this chapter or of the penal law.
3 Suspension shall continue for the period necessary to remedy the situ-
4 ation or condition requiring such suspension.
5 § 65. Subdivision 5 of section 523 of the racing, pari-mutuel wagering
6 and breeding law, as separately amended by chapters 288 and 362 of the
7 laws of 1991, is amended to read as follows:
8 5. Except for races conducted by a thoroughbred track in the Catskill
9 region during a mixed meeting, no regional corporation shall accept
10 wagers on any thoroughbred or steeplechase race run on any thoroughbred
11 or steeplechase track located without its region while a thoroughbred or
12 steeplechase track within its region is conducting a race meeting
13 involving pari-mutuel betting without the approval of the operating
14 regional thoroughbred or steeplechase track, except that the Catskill
15 and Suffolk regional corporations may accept wagers on any thoroughbred
16 track outside its region while a thoroughbred track within the region is
17 conducting such a race meeting provided the regional corporation accepts
18 wagers on such track within the region; provided, however, that for the
19 purposes of this subdivision, there shall be created a thoroughbred
20 special betting district, consisting of the counties of Orleans, Gene-
21 see, Wyoming, Allegany, Monroe, Livingston, Steuben, Wayne, Ontario,
22 Yates, Seneca, Schuyler, Cayuga, Tompkins, Onondaga and Cortland, in
23 which no off-track betting on races run at a thoroughbred or steeple-
24 chase track without such special district including such a track within
25 the Catskill region shall be permitted while a thoroughbred or steeple-
26 chase track within such special district is conducting a race meeting
27 involving pari-mutuel betting without the approval of the operating
28 regional thoroughbred or steeplechase track; provided, however, that
29 within such district in the counties of Wyoming, Allegany, Steuben and
30 Schuyler off-track betting on races run at a [nonprofit racing associ-
31 ation or steeplechase] track by a franchised corporation without such
32 special district shall be permitted. Notwithstanding any inconsistent
33 provision in the foregoing, the regional off-track betting corporations
34 are hereby authorized and empowered to accept all wagers on races known
35 as the "Belmont Stakes", the "Travers Stakes", the "[Breeders] Breeders'
36 Cup Series" and the "New York Derby"; and such corporation, outside of a
37 harness special betting district, is hereby authorized and empowered to
38 accept wagers on the races comprising the seven-day race meeting known
39 as the "Syracuse Mile".
40 § 66. Paragraph b of subdivision 6 of section 523 of the racing, pari-
41 mutuel wagering and breeding law is amended to read as follows:
42 b. When a race meeting is not being conducted by [nonprofit racing
43 associations] a franchised corporation and a thoroughbred race meeting
44 is being conducted at a track located within the thoroughbred special
45 betting district, regional corporations and portions of regional corpo-
46 rations outside such district, shall, in addition to accepting wagers on
47 races at such track, also be permitted to accept wagers on thoroughbred
48 races run in another state. In the event that wagers are accepted on
49 races run at both a track located in the thoroughbred special betting
50 district and at a track located in another state, the balance of the
51 amount payable to tracks within this state pursuant to paragraph f of
52 subdivision one of section five hundred twenty-seven of this article,
53 but (i) not less than one per centum on regular and multiple wagering
54 and two per centum on exotic wagers, shall be paid to the track located
55 within the thoroughbred special betting district running thoroughbred
56 races, and (ii) not less than three-quarters of one per centum of regu-
S. 6950 52 A. 9998
1 lar and multiple wagering and one and one-quarter per centum on exotic
2 wagers shall be paid to the harness track operator conducting racing
3 within the region within which the wagers on such out-of-state races are
4 placed.
5 § 67. Intentionally omitted.
6 § 68. Subdivision 1 of section 524 of the racing, pari-mutuel wagering
7 and breeding law, as amended by chapter 363 of the laws of 1984, is
8 amended to read as follows:
9 1. The board shall, consistent with the powers of the state tax
10 commission, prescribe uniform methods of keeping accounts, records and
11 books to be observed by regional corporations. The board shall, consist-
12 ent with the powers of the state tax commission, prescribe by order
13 forms of accounts, records and memoranda to be kept by such corpo-
14 rations. The board shall have power to visit, investigate, and place
15 expert accountants, or such other persons as it may deem necessary, in
16 the offices, or other places of business of any such corporation for the
17 purpose of seeing that the provisions of [sections two hundred twenty-
18 two through seven hundred five of] this chapter and the rules and regu-
19 lations issued by the board thereunder are strictly complied with.
20 § 69. Section 527 of the racing, pari-mutuel wagering and breeding
21 law, the opening paragraph as amended by section 10 of part F3 of chap-
22 ter 62 of the laws of 2003, the opening paragraph of subdivision 1 as
23 amended by section 4 of part B of chapter 59 of the laws of 2005, para-
24 graphs a and b of subdivision 1 as amended by section 1 of part OO of
25 chapter 59 of the laws of 2006, paragraph c of subdivision 1 and subdi-
26 vision 5-a as amended by chapter 346 of the laws of 1990, paragraph d
27 and subparagraphs (ii) and (iii) of paragraph g of subdivision 1 as
28 amended by chapter 281 of the laws of 1994, subparagraph (i) of para-
29 graph d as amended by chapter 309 of the laws of 1996, paragraphs e, f,
30 and g of subdivision 1 as relettered and paragraphs a and b of subdivi-
31 sion 5 and subdivision 8 as amended by chapter 286 of the laws of 1985,
32 subparagraph (vi) of paragraph g of subdivision 1 and subdivision 2 as
33 amended by chapter 2 of the laws of 1995, paragraph a of subdivision 3
34 as amended by chapter 484 of the laws of 2000, paragraph b of subdivi-
35 sion 3 as amended by section 4 of chapter 94 of the laws of 2001, and
36 subdivision 7 as added by chapter 638 of the laws of 1983, is amended to
37 read as follows:
38 § 527. Disposition of off-track pools; state tax. Each regional
39 corporation conducting off-track betting shall distribute all sums
40 deposited in any pari-mutuel pool through such corporation to the hold-
41 ers of winning tickets therein, providing such tickets be presented for
42 payment prior to April first of the year following the year of their
43 purchase, less an amount which it shall retain at the same rate estab-
44 lished by the track accepting wagers from each such regional corpo-
45 ration.
46 1. The disposition of the retained commission from pools resulting
47 from regular, multiple or exotic bets, as the case may be, whether
48 placed on races run within a region or outside a region, conducted by
49 [nonprofit racing associations,] racing [associations] corporations,
50 harness racing associations or corporations, quarter horse racing asso-
51 ciations or corporations or races run outside the state shall be
52 governed by the tables in paragraphs a and b of this subdivision. The
53 rate denominated "state tax" shall represent the rate of a reasonable
54 tax imposed upon the retained commission for the privilege of conducting
55 off-track pari-mutuel betting, which tax is hereby levied and shall be
56 payable in the manner set forth in this section. Each off-track betting
S. 6950 53 A. 9998
1 corporation shall pay to the racing and wagering board as a regulatory
2 fee, which fee is hereby levied, fifty hundredths of one percent of the
3 total daily pools of such corporation. Each corporation shall also pay
4 twenty per centum of the breaks derived from bets on harness races and
5 fifty per centum of the breaks derived from bets on all other races to
6 the agriculture and New York State horse breeding and development fund
7 and to the thoroughbred breeding and development fund, the total of such
8 payments to be apportioned fifty per centum to each such fund. For the
9 purposes of this section, the New York city, Suffolk, Nassau, and the
10 Catskill regions shall constitute a single region and any thoroughbred
11 track located within the Capital District region shall be deemed to be
12 within such single region. A "regional meeting" shall refer to either
13 harness or thoroughbred meetings, or both, except that a [nonprofit
14 racing association] franchised corporation shall not be a regional track
15 for the purpose of receiving distributions from bets on thoroughbred
16 races conducted by a thoroughbred track in the Catskill region conduct-
17 ing a mixed meeting. With the exception of a harness racing association
18 or corporation first licensed to conduct pari-mutuel wagering at a track
19 located in Tioga county after January first, two thousand five, racing
20 [associations or] corporations first licensed to conduct pari-mutuel
21 racing after January first, nineteen hundred eighty-six or a harness
22 racing association or corporation first licensed to conduct pari-mutuel
23 wagering at a track located in Genesee County after January first, two
24 thousand five, and quarter horse tracks shall not be "regional tracks";
25 if there is more than one harness track within a region, such tracks
26 shall evenly divide payments made pursuant to the tables in paragraphs a
27 and b of this subdivision when neither track is running. In the event a
28 track elects to reduce its retained percentage from any or all of its
29 pari-mutuel pools, the payments to the track holding the race and the
30 regional track required by paragraphs a and b of this subdivision shall
31 be reduced in proportion to such reduction. Nothing in this section
32 shall be construed to authorize the conduct of off-track betting contra-
33 ry to the provisions of section five hundred twenty-three of this arti-
34 cle.
35 a. Regular and multiple bets:
36 Track
37 holding Regional State
38 race track tax
39 Pools on races run by:
40 [Nonprofit racing associations]
41 Franchised corporations:
42 in region;..................... 3.50 N/A .30
43 out-region, during a regional
44 meeting;....................... 1.00 2.50 .30
45 out-region, no regional
46 meeting;....................... 1.75 1.75 .30
47 Racing [associations]
48 corporations
49 in special
50 betting district:
51 in-special betting district;... 3.80 N/A 1.00
52 out-district, during a regional
53 meeting;....................... 1.00 2.80 1.00
S. 6950 54 A. 9998
1 out-district, no regional
2 meeting;....................... 1.90 1.90 1.00
3 [Thoroughbred races of racing
4 associations in Catskill region
5 conducting a mixed meeting:
6 anywhere, during a regional
7 harness meeting;............... 3.15 3.15 .50
8 anywhere, no regional harness
9 meeting;....................... 6.30 -- .50]
10 Harness racing associations or
11 corporations within Suffolk,
12 Nassau, or Catskill regions:
13 in region;..................... 4.00 N/A .70
14 out-region, during a regional
15 meeting;....................... 1.00 3.00 .70
16 out-region, no regional
17 meeting;....................... 2.00 2.00 .70
18 Harness racing associations or
19 corporations:
20 in-special betting
21 district;...................... 4.00 N/A .50
22 out-district, during a
23 regional meeting;.............. 1.00 3.00 .50
24 out-district, no regional
25 meeting;....................... 2.00 2.00 .50
26 Other harness racing associations
27 or corporations:
28 in region;..................... 4.00 N/A .50
29 out-region, during a regional
30 meeting;....................... 1.00 3.00 .50
31 out-region, no regional
32 meeting;....................... 2.00 2.00 .50
33 Quarter horse racing associations
34 or corporations;............... 3.50 N/A 1.10
35 Out-of-state tracks:............. 3.50 divided 1.10
36 pursuant to
37 paragraph
38 g of this
39 subdivision
40 b. Exotic bets:
41 Track
42 holding Regional State
43 race track tax
44 Pools on races run by:
45 [Nonprofit racing associations]
46 Franchised corporations:
47 in region;..................... 6.50 N/A 1.30
48 out-region, during a regional
49 meeting;....................... 2.00 4.50 1.30
50 out-region, no regional
51 meeting;....................... 3.25 3.25 1.30
52 Racing [associations]
53 corporations
S. 6950 55 A. 9998
1 in special
2 betting district:
3 in-special betting districts;.. 6.80 N/A 3.00
4 out-district, during a regional
5 meeting;....................... 2.00 4.80 3.00
6 out-district, no regional
7 meeting;....................... 3.40 3.40 3.00
8 [Thoroughbred races of racing
9 associations in Catskill region
10 conducting a mixed meeting:
11 anywhere, during a regional
12 harness meeting;............... 5.65 5.65 .50
13 anywhere, no regional harness
14 meeting;....................... 11.30 -- .50]
15 Harness racing associations or
16 corporations within Suffolk,
17 Nassau, or Catskill
18 regions:
19 in region;..................... 7.00 N/A 2.70
20 out-region, during a regional
21 meeting;....................... 2.00 5.00 2.70
22 out-region, no regional
23 meeting;....................... 3.50 3.50 2.70
24 Harness racing associations
25 or corporations:
26 in-special betting
27 district;...................... 7.00 N/A 2.50
28 out-district, during a
29 regional meeting;.............. 2.00 5.00 2.50
30 out-district, no regional
31 meeting;....................... 3.50 3.50 2.50
32 Other harness racing associa-
33 tions or corporations:
34 in-region;..................... 7.00 N/A 2.50
35 out-region, during a
36 regional meeting;.............. 2.00 5.00 2.50
37 out-region, no regional
38 meeting;....................... 3.50 3.50 2.50
39 Quarter horse racing associa-
40 tions or corporations;......... 6.50 N/A 3.10
41 Out-of-state tracks:............. 6.50 divided 3.10
42 pursuant to
43 paragraph
44 g of this
45 subdivision
46 c. Super Exotic Bets:
47 Track
48 holding Regional State
49 race track tax
50 Pools on races run by:
51 [Nonprofit racing associations]
52 Franchised corporations:
53 in region;..................... 12.00 N/A 3.50
54 out-region, during a regional
S. 6950 56 A. 9998
1 meeting;....................... 3.00 10.00 2.50
2 out-region, no regional
3 meeting;....................... 6.00 6.00 3.50
4 Racing [associations]
5 corporations
6 in special
7 betting district:
8 in-special betting districts;.. 12.00 N/A 3.50
9 out-district, during a regional
10 meeting;....................... 3.00 10.00 2.50
11 out-district, no regional
12 meeting;....................... 6.00 6.00 3.50
13 [Thoroughbred races of racing
14 associations in Catskill region
15 conducting a mixed meeting:
16 anywhere, during a regional
17 harness meeting;............... 7.00 7.00 3.50
18 anywhere, no regional harness
19 meeting;....................... 14.00 -- 3.50]
20 Harness racing associations or
21 corporations within Suffolk,
22 Nassau, or Catskill regions:
23 in-region;..................... 12.00 N/A 3.50
24 out-region, during a regional
25 meeting;....................... 3.00 10.00 2.50
26 out-region, no regional
27 meeting;....................... 6.00 6.00 3.50
28 Harness racing associations
29 or corporations:
30 in-special betting
31 district;...................... 12.00 N/A 3.50
32 out-district, during a
33 regional meeting;.............. 3.00 10.00 2.50
34 out-district, no regional
35 meeting;....................... 6.00 6.00 3.50
36 Other harness racing associations
37 or corporations:
38 in-region;..................... 12.00 N/A 3.50
39 out-region, during a
40 regional meeting;.............. 3.00 10.00 2.50
41 out-region, no regional
42 meeting;....................... 6.00 6.00 3.50
43 d. For the portion of the Western region included within a thorough-
44 bred special betting district and not within a harness special betting
45 district, when no thoroughbred race meeting is conducted by a racing
46 [association or] corporation located within such thoroughbred special
47 district, the distribution of the retained commission to "regional
48 tracks" by such regional corporation derived from wagers placed within
49 such special betting district shall be divided as follows:
50 (i) when a harness corporation located in such district is conducting
51 a meet the full amount to such harness corporation; and when a harness
52 corporation in the region but not located in such district is conducting
53 a meet, forty percent to the thoroughbred racing [association or] corpo-
54 ration and sixty percent to the harness corporation conducting a meet;
S. 6950 57 A. 9998
1 (ii) when no racing is being conducted, forty per centum to the
2 thoroughbred racing [association or] corporation and the balance divided
3 equally between the harness racing corporations located in such region;
4 and
5 (iii) when no racing is being conducted and no more than one harness
6 racing association is licensed during the calendar year to conduct a
7 race meeting, fifty per centum to the thoroughbred racing [association]
8 corporation and fifty per centum to the harness racing association
9 located in such region.
10 e. For the portions of the Capital District, Catskill, Central and
11 Western regions included within a harness racing special betting
12 district, except those portions described in paragraph e of this subdi-
13 vision, the harness track located in such special district shall be the
14 "regional track" for the purposes of the distributions made pursuant to
15 paragraphs a and b of this subdivision.
16 f. For the portions of the Catskill, Central and Western regions
17 included in both a thoroughbred special betting district and a harness
18 special betting district, the distribution of the retained commission to
19 "regional tracks" by such regional corporations derived from wagers
20 placed within such portions of such regions shall be divided as follows:
21 (i) when a harness corporation located in the harness special betting
22 district is conducting a meet and no thoroughbred race meeting is being
23 conducted by a racing [association or] corporation located in the
24 thoroughbred special betting district, the full amount to such harness
25 association;
26 (ii) when a thoroughbred [association or] corporation located in the
27 thoroughbred special betting district is conducting a meet and no
28 harness race meeting is being conducted by a harness association located
29 in the harness special betting district, the full amount to such
30 thoroughbred [association or] corporation;
31 (iii) when no racing is being conducted the amount to be divided even-
32 ly between the thoroughbred track located in such thoroughbred special
33 betting district and the harness track located in such harness special
34 betting district.
35 g. With respect to the amounts payable to track operators from the
36 retained commission on pools resulting from thoroughbred or harness
37 races outside this state, the regional corporation shall first pay any
38 contractual obligation owed to the out-of-state track operator, or to
39 another state or entity thereof, as the case may be. The balance of such
40 amounts shall be divided as follows:
41 (i) for the betting region composed of the New York city, Suffolk and
42 Nassau regions and the portion of the Catskill region outside a special
43 betting district: when both harness and thoroughbred meets are in
44 progress in such betting region, the balance to the association or
45 corporation holding the same type of meet as the out-of-state race; when
46 only a harness meet is in progress in such betting region, the balance
47 to the harness track operator; when only a thoroughbred meet is in
48 progress in such betting region, the balance to the thoroughbred track
49 operator; when no meet is in progress, fifty per centum of the balance
50 to the [nonprofit racing association] franchised corporation and the
51 remainder divided among harness racing corporations or associations
52 within such betting region;
53 (ii) for the Capital District region and the portion of the Western
54 region outside a special betting district: when a harness meet is in
55 progress in such region and a thoroughbred meet is in progress outside a
56 special betting district, the balance to whichever operator is conduct-
S. 6950 58 A. 9998
1 ing the same type of meet as the out-of-state race; when no harness meet
2 is in progress, the balance to the racing association outside a special
3 betting district; and when no meet is in progress within such region and
4 no thoroughbred meet is in progress outside a special betting district,
5 fifty per centum of the balance to the racing association outside a
6 special betting district and the remainder to the licensed harness
7 racing corporations or associations within such region;
8 (iii) for the portion of the Western region within a thoroughbred
9 special betting district but not within a harness special betting
10 district: when a harness meet and a thoroughbred meet are in progress
11 within such region and the district, the balance to the association or
12 corporation conducting the same type of meet as the out-of-state or
13 out-of-region race; when a harness meet is in progress in such region
14 but no thoroughbred meet is in progress in the special betting district,
15 the balance to the harness track operator within such region; when only
16 a thoroughbred meet is in progress in such betting region, the balance
17 to the thoroughbred track operator; and when no meet is in progress
18 within such region the balance is divided, forty per centum to the
19 thoroughbred racing [association] corporation within the district and
20 the remainder divided between the harness racing associations or corpo-
21 rations within the region provided, however, that if no more than one
22 harness racing association or corporation is licensed to conduct a race
23 meeting, fifty per centum to the thoroughbred racing [association]
24 corporation within the district and fifty per centum to the licensed
25 harness racing association within the region;
26 (iv) for the portions of the Capital District, Catskill, Central and
27 Western regions included in a harness special betting district: when a
28 harness meeting is in progress in such harness special betting district
29 and a thoroughbred meeting is in progress outside the thoroughbred
30 special betting district, the balance to the association or corporation
31 holding the same kind of race; when no harness meet is in progress, the
32 balance to the racing [association] corporation holding a thoroughbred
33 race meeting outside the thoroughbred special betting district; when a
34 harness meeting is in progress in the harness special betting district
35 and no thoroughbred meeting is in progress outside the thoroughbred
36 special betting district, the balance to the harness track operating in
37 such harness special betting district; when no harness meet is being
38 held within such harness special betting district and no thoroughbred
39 meet is being held outside the thoroughbred special betting district,
40 fifty per centum of such amount to the harness racing corporation in
41 such harness special betting district and fifty per centum to the
42 thoroughbred track operator outside the thoroughbred special betting
43 district;
44 (v) for the portions of the Catskill and Western regions included in
45 both a thoroughbred special betting district and a harness special
46 betting district: when a harness meet and a thoroughbred meet are in
47 progress within both such districts the balance to the association or
48 corporation conducting the same type of meet as the out-of-state race;
49 when a harness meet is in progress but no thoroughbred meet the balance
50 to the harness track operator within such district; when a thoroughbred
51 meet is in progress but no harness meet the balance to the thoroughbred
52 track operator in the district; and when no meet is in [progess]
53 progress the balance to be divided evenly between the harness track
54 operator in the harness special betting district and the thoroughbred
55 operator located within the thoroughbred special betting district;
S. 6950 59 A. 9998
1 (vi) notwithstanding any contrary provision contained in this section,
2 the portion of retained commissions from off-track pools distributable
3 to the track holding the race shall be for regular and multiple bets:
4 five and three-quarters per centum and for exotic bets: seven and three-
5 quarters per centum for the three races commonly referred to as the
6 Triple Crown consisting of the Kentucky Derby, the Preakness and the
7 Belmont Stakes, run respectively at Churchill Downs, Kentucky, at Pimli-
8 co, Maryland and at Belmont Park, New York; additionally the same
9 commissions shall apply to the series of races known as the [Breeders]
10 Breeders' Cup and the portion distributable from retained commissions
11 shall be paid to the [Breeders] Breeders' Cup, ltd. irrespective of
12 whether the races are held at a track within or without the state;
13 provided, however, that as a condition precedent to the obligation of a
14 regional corporation to make the foregoing distributions as required in
15 this subparagraph with respect to wagers on the Belmont Stakes, such
16 regional corporation shall have accepted wagers on at least one or both
17 of the immediately preceding Kentucky Derby and Preakness races; and
18 provided further that the distributable portion of such retained commis-
19 sions with respect to the Belmont Stakes shall be deemed to include the
20 additional amounts payable pursuant to the provisions of paragraph b of
21 subdivision three of this section; and provided further, notwithstanding
22 the foregoing provisions of this subparagraph, that of the retained
23 commissions resulting from off-track wagers placed in a special betting
24 district on the Belmont Stakes, the track holding the race shall receive
25 one per centum from regular and multiple bets and two per centum from
26 exotic bets, and the thoroughbred track conducting racing within such
27 district shall receive four and three-quarters per centum from regular
28 and multiple bets, and five and three-quarters per centum from exotic
29 bets.
30 2. Payment of the state tax imposed by this section shall be made to
31 the commissioner by each such regional corporation on the last business
32 day of each month and shall cover taxes due for the period from the
33 sixteenth day of the preceding month through the fifteenth day of the
34 current month provided, however, that such payments required to be made
35 on March thirty-first shall include all taxes due and accruing through
36 the last full week of racing in March of the current year or as other-
37 wise determined by the commissioner and shall be accompanied by a report
38 under oath, showing such information as it may require. A penalty of
39 five percent, and interest at the rate of one percent per month from the
40 date the report is required to be filed to the date of the payment of
41 the tax, shall be payable in case any tax imposed by this section is not
42 paid when due. If the commissioner determines that any moneys received
43 by the commissioner under this section were paid in error, the commis-
44 sioner may cause the same to be refunded without interest out of any
45 moneys collected thereunder, provided an application therefor is filed
46 with the commissioner within one year from the time the erroneous
47 payment is made. Such taxes, interest and penalties when collected,
48 after the deduction of refunds of taxes erroneously paid, shall be paid
49 by the commissioner into the general fund of the state treasury.
50 3. a. Of the portion of retained commission on off-track pools
51 distributed to racing [associations or] corporations [or nonprofit
52 racing association], one-half shall be used exclusively for the purpose
53 of increasing purses, including stakes, premiums and prizes, awarded to
54 horses in races conducted by such associations or corporations and any
55 portion of said fraction not so used during any year shall be used
56 during the following year, failing which it shall be returned to the
S. 6950 60 A. 9998
1 regional off-track betting corporations on or before April first in the
2 year following the year in which it is not so used to be distributed
3 prior to June first to participating local governments in the same
4 proportions as the distributions to such governments in the prior calen-
5 dar year, provided, however, in a harness special betting district the
6 portion of retained commissions to be used for purses or the methodology
7 for calculating the amount to be used for purses may be specified in a
8 written contract between a harness racing association or corporation and
9 its representative horsemen's association.
10 b. In addition to any other amount required by this section, of the
11 portion of commissions retained by a regional corporation, an amount
12 equal to one and eighty-five hundredths per centum of regular pools and
13 an amount equal to two and thirty-five hundredths per centum of multiple
14 pools and two and thirty-five hundredths per centum of exotic pools
15 derived from wagers on races conducted by a [nonprofit racing associ-
16 ation] franchised corporation shall be paid to such [nonprofit racing
17 association] corporation to be used exclusively for the purpose of
18 increasing purses, including stakes, premiums and prizes. Provided,
19 however, for the period July twenty-fifth, two thousand one through June
20 thirtieth, two thousand four, a regional corporation for the New York
21 city, Nassau, Suffolk or Catskill region shall pay, of the portion of
22 the commissions retained by such regional corporation on all pools, an
23 amount equal to six and fifty hundredths per centum to such [nonprofit
24 racing association] franchised corporation of which three and eighty
25 hundredths per centum shall be used exclusively for the purpose of
26 increasing purses, including stakes, premiums and prizes. Provided,
27 further for the period July twenty-fifth, two thousand one through June
28 thirtieth, two thousand four a regional corporation for the capital or
29 western region shall pay to such [nonprofit racing association] fran-
30 chised corporation of the portion of the commissions retained by such
31 regional corporation on all pools when there is a regional meeting, an
32 amount equal to three and eighty-five hundredths of which two and eight-
33 y-five hundredths shall be used exclusively for the purpose of increas-
34 ing purses, including stakes, premiums and prizes. An additional two and
35 sixty-five hundredths shall be paid to the regional harness track. When
36 there is no regional meeting, an amount equal to four and sixty-five
37 hundredths shall be paid to such nonprofit racing association of which
38 two and ninety hundredths shall be used exclusively for the purpose of
39 increasing purses, including stakes, premiums and prizes. An additional
40 one and eighty-five hundredths shall be paid to the regional harness
41 track. In addition to any other amounts required to be paid to a [non-
42 profit racing association] franchised corporation, for the period July
43 twenty-first, nineteen hundred ninety-five through July twenty-fourth,
44 two thousand one, an additional one and twenty-five hundredths per
45 centum of multiple pools derived from wagers on races conducted by a
46 [nonprofit racing association] franchised corporation shall be paid to
47 such association for its own use and purposes. Any portion of said
48 amount not so used during any year shall be used during the following
49 year, failing which it shall be returned to the regional corporation on
50 or before April first in the year following the year in which it is not
51 so used to be distributed to the participating local governments.
52 c. In addition to any other amount required by this section, of the
53 portion of commissions retained by a regional corporation, an amount
54 equal to one and one-tenth per centum of regular and multiple pools and
55 six-tenths of one per centum of exotic pools derived from wagers on
56 races conducted by a thoroughbred racing [association] corporation,
S. 6950 61 A. 9998
1 licensed by the board, other than a [nonprofit racing association] fran-
2 chised corporation, shall be paid to such thoroughbred racing [associ-
3 ation] corporation to be used exclusively for the purpose of increasing
4 purses, including stakes, premiums and prizes. Any portion of said
5 amount not so used during any year shall be used during the following
6 year, failing which it shall be returned to the regional corporation on
7 or before April first in the year following the year in which it is not
8 so used to be distributed to the participating local governments.
9 4. a. Of the portion of retained commission on off-track pools
10 distributed to harness racing associations or corporations authorized to
11 conduct racing in Westchester or Nassau county, one-half shall be used
12 exclusively for the purpose of increasing purses, including stakes,
13 premiums and prizes awarded to horses in races conducted by such associ-
14 ations or corporations.
15 b. The portion of retained commission on off-track pools distributed
16 to other harness or quarter horse racing associations or corporations
17 shall be deemed to be part of the on-track commission for purposes of
18 calculating purses, including stakes, premiums and prizes, awarded to
19 horses in races conducted by such associations or corporations.
20 5. a. [From the total retained by a regional corporation, an amount
21 equal to three-fifths of one per centum through March thirty-first,
22 nineteen hundred eighty-six, and one] One per centum [thereafter] of
23 daily pools derived from bets on harness races shall be paid to the
24 agriculture and New York state breeding and development fund except that
25 for super exotic betting pools such amount shall be three per centum of
26 such bets.
27 b. An amount equal to one-half of one per centum of total daily off-
28 track pari-mutuel pools resulting from regular, multiple and exotic bets
29 and three per centum of super exotic bets on thoroughbred or steeple-
30 chase races shall be paid to the New York state thoroughbred breeding
31 and development fund.
32 c. From the total breaks retained by a regional corporation, an amount
33 equal to ten per centum of the breaks derived from bets on quarter horse
34 races shall be paid to the New York state quarter horse breeding and
35 development fund.
36 5-a. Notwithstanding any other provision of law, a regional corpo-
37 ration shall retain, in addition to those amounts described in the open-
38 ing paragraph of this section, from regular and multiple bets on races
39 run at tracks electing to withhold pursuant to section two hundred
40 [twenty-eight-a] thirty-seven or section three hundred nineteen of this
41 chapter, an amount equal to one per centum of pools resulting from total
42 wagering at such tracks, one-half of which shall be paid to such tracks
43 or non-profit county agricultural society, except that the full one per
44 centum shall be paid to a thoroughbred track in the Catskill region
45 conducting a mixed meeting, to be used exclusively for capital improve-
46 ments pursuant to sections two hundred [twenty-eight-a] thirty-seven and
47 three hundred nineteen of this chapter and subject to the rules and
48 regulations of the racing and wagering board and one-half to be retained
49 by the regional corporation for its own corporate purposes.
50 6. The net amount remaining to each regional corporation after payment
51 of taxes and distributions pursuant to this section and after payment of
52 operating expenses and principal and interest on any obligations shall,
53 in the case of the New York city off-track betting corporation, accrue
54 and be payable to the general fund of the city of New York and in the
55 case of other regional corporations shall accrue and be payable to
S. 6950 62 A. 9998
1 participating counties pursuant to section five hundred sixteen of this
2 chapter.
3 7. In addition to any other amount required by this section, of the
4 portion of commissions retained by a regional corporation, an amount
5 equal to one per centum of multiple pools derived from wagers on races
6 conducted by a thoroughbred racing [association] corporation, licensed
7 by the board, other than a [nonprofit racing association] franchised
8 corporation, shall be paid to such thoroughbred racing [association]
9 corporation and held by such [association] corporation for its own use
10 and purposes, except that an amount equal to one-half per centum shall
11 be used exclusively for the purpose of increasing purses, including
12 stakes, premiums and prizes, awarded to horses in races conducted by
13 such [association] corporation. Any portion of said amount not so used
14 during any year shall be used during the following year, failing which
15 it shall be returned to the regional corporation on or before April
16 first in the year following the year in which it is not so used to be
17 distributed to the participating local governments.
18 8. From the nineteen per centum of the total deposits in pools result-
19 ing from multiple bets on thoroughbred races outside this state, two per
20 centum shall be paid to a [non-profit racing association] franchised
21 corporation to be used exclusively for the purpose of increasing purses,
22 including stakes, premiums and prizes. Any portion of said amount not so
23 used during any year shall be used during the following year, failing
24 which it shall be returned to the regional corporation on or before
25 April first in the year following the year in which it is not so used to
26 be distributed to the participating local governments. Notwithstanding
27 the provisions of section fifteen of chapter three hundred sixty-three
28 of the laws of nineteen hundred eighty-four, the provisions of this
29 subdivision shall not expire.
30 § 70. Subdivision 3 of section 528 of the racing, pari-mutuel wagering
31 and breeding law is amended to read as follows:
32 3. Subdivisions one and two of this section shall apply in like manner
33 to any agreements with another state or any agency, subdivision or enti-
34 ty thereof concerning off-track pari-mutuel betting conducted in another
35 state on races run in this state. No franchised corporation, nor any
36 racing corporation or association licensed [or franchised] by the board
37 shall enter into such an agreement without the board's express approval.
38 § 71. Section 530 of the racing, pari-mutuel wagering and breeding law
39 is amended to read as follows:
40 § 530. Job security for track employees. Plans of operation of
41 regional off-track betting corporations shall include provision for job
42 security for employees of racetracks within each region compatible with
43 and in furtherance of the objectives of this article and subject to the
44 approval of the state racing and wagering board. Job security agreements
45 that may be concluded from time to time after July first, nineteen
46 hundred seventy-three between track employee organizations and the New
47 York city off-track betting corporation or any other regional off-track
48 betting corporation shall be subject to the approval of the board and
49 when approved shall be deemed a part of the plan of operation of such
50 corporation and any other regional corporation; provided, however, that
51 nothing in this article or any other provision of [sections two hundred
52 twenty-two through seven hundred five of] this chapter shall be
53 construed to require or empower the board to abrogate job security
54 agreements between the New York city off-track betting corporation and
55 any track employee organization, in effect on July first, nineteen
S. 6950 63 A. 9998
1 hundred seventy-three and any such contracts shall be deemed to be a
2 part of the plan of operation of such corporation.
3 § 72. Subparagraph (vi) of paragraph b of subdivision 3 of section 532
4 of the racing, pari-mutuel wagering and breeding law is REPEALED.
5 § 73. Section 802 of the racing, pari-mutuel wagering and breeding law
6 is amended to read as follows:
7 § 802. Amount of tax; collection; payment to municipality; disposition
8 of proceeds. In cities or counties adjacent to a city having a popu-
9 lation in excess of two million, any local law adopted pursuant to
10 section eight hundred one of this chapter shall require every corpo-
11 ration, association or person holding a harness horse race meeting with-
12 in the area to which such law is applicable, to collect in addition to
13 the admission price of tickets sold or otherwise disposed of to patrons
14 for admission, for each such meeting held by such corporation[,] or
15 association [or persons], a tax not in excess of thirty per centum of
16 such admission price; provided that in any such county containing a city
17 having a population in excess of one hundred thousand, which city has
18 adopted a local law imposing a tax on admissions to harness horse race
19 meetings conducted in such city, any local law adopted by such county in
20 accordance with the provisions of this article shall require the
21 collection of an additional tax not in excess of five per centum on
22 admissions to such harness horse race meetings conducted in such city.
23 In all other cities, having a population in excess of one hundred thou-
24 sand, or counties, any local law adopted pursuant to section eight
25 hundred one of this chapter shall require every corporation[,] or asso-
26 ciation [or person] holding a harness horse race meeting within the area
27 to which such law is applicable, to collect in addition to the admission
28 price of tickets sold or otherwise disposed of to patrons for admission,
29 for each such meeting held by such corporation[,] or association [or
30 person], a tax not in excess of fifteen per centum of such admission
31 price. In all cities having a population of one hundred thousand or
32 less, any local law adopted pursuant to section eight hundred one of
33 this chapter shall require every corporation[,] or association [or
34 person] holding a harness horse race meeting wholly or partly within the
35 area to which such law is applicable, to collect in addition to the
36 admission price of tickets sold or otherwise disposed of to patrons for
37 admission for each such meeting held by such corporation[,] or associ-
38 ation [or person], a tax, which will not be in excess of fifteen per
39 centum of such admission price. In any town, any local law adopted
40 pursuant to section eight hundred one of this chapter shall require
41 every corporation[,] or association [or person] holding a harness horse
42 race meeting wholly or partially within the area to which such law is
43 applicable, to collect in addition to the admission price of tickets
44 sold or otherwise disposed of to patrons for admission, for each such
45 meeting held by such corporation[,] or association [or person], a tax,
46 which will not be in excess of fifteen per centum of such admission
47 price. In case of failure to collect such tax the same shall be imposed
48 upon the corporation[,] or association [or person] holding such meeting.
49 Such tax shall be paid to the county, town or city within ten days after
50 the close of each such meeting. The amount so collected shall be depos-
51 ited in the general fund of the county, town or city and, unless
52 restricted by local law to a specified purpose or purposes, shall be
53 available for any lawful county, town or city purpose.
54 § 74. Section 807 of the racing, pari-mutuel wagering and breeding law
55 is amended to read as follows:
S. 6950 64 A. 9998
1 § 807. Amount of tax; liability on failure to collect. Any local law
2 adopted pursuant to section eight hundred six of this chapter shall
3 require every corporation[,] or association [or person] holding a
4 running horse race meeting to collect in addition to the admission price
5 of tickets sold or otherwise disposed of to patrons for admission, for
6 each such meeting held by such corporation[,] or association [or
7 person], a tax not in excess of fifteen per centum of such admission
8 price. In case of failure to collect such tax the same shall be imposed
9 upon the corporation[,] or association [or person] holding such meeting.
10 § 75. Subdivision 1 of section 811 of the racing, pari-mutuel wagering
11 and breeding law is amended to read as follows:
12 1. Notwithstanding the provisions of any general, special or local law
13 or ordinance, Suffolk and Tioga counties are hereby authorized and
14 empowered to adopt and amend laws imposing a tax on admissions to quar-
15 ter horse racing meetings authorized pursuant to [sections two hundred
16 twenty-two through seven hundred five of] this chapter. The county,
17 pursuant to any local law adopted pursuant to this section shall require
18 every corporation[,] or association [or person] holding a quarter horse
19 racing meeting, wholly or partially within the county, to collect regu-
20 larly a tax on admission for each such meeting held by such corpo-
21 ration[,] or association[, or person]. In case of failure to collect
22 such taxes the same shall be imposed upon the corporation[,] or associ-
23 ation[, or person] holding such meeting. Such taxes shall be paid to the
24 county within ten days after the close of such meeting. The amount so
25 collected shall be deposited in the general fund of the county and
26 unless restricted by local law to a specified purpose or purposes, shall
27 be available for any lawful county purpose.
28 § 76. Section 901 of the racing, pari-mutuel wagering and breeding
29 law, as amended by section 11 of part F3 of chapter 62 of the laws of
30 2003, is amended to read as follows:
31 § 901. Reduction in retained commission. 1. Notwithstanding the
32 provisions of subdivision two of section five hundred twenty-three of
33 this chapter, the board shall authorize regional off-track betting
34 corporations to accept additional wagers on multiple betting opportu-
35 nities on races conducted by any [nonprofit racing association,
36 provided, however, that from July thirty-first, nineteen hundred seven-
37 ty-eight through January first, nineteen hundred seventy-nine, the
38 following wagering opportunities shall be authorized only for such
39 corporations:
40 a. An "additional daily double," defined as a single bet or wager to
41 select the winning horses in any two races other than the first four
42 races, and
43 b. A "quinella," defined as a single bet or wager to select the horses
44 finishing first and second, in either order of finish, in the same race.
45 The "quinella" shall be offered on as many as three races on each day
46 racing is conducted] franchised corporation.
47 [Provided, however, that on and after January first, nineteen hundred
48 seventy-nine, nonprofit racing associations] A franchised corporation
49 may elect to offer such similar additional daily double and quinella
50 wagering opportunities. If such [associations offer] franchised corpo-
51 ration offers two or more quinellas, as defined herein, the provisions
52 of section five hundred twenty-three of this chapter, as modified by the
53 provisions of subdivisions one, two and three of this section, with
54 respect to combined pools shall apply with respect to such wagering
55 opportunities. At any time such [associations do] a franchised corpo-
56 ration does not offer at least two quinellas, the provisions of this
S. 6950 65 A. 9998
1 subdivision with respect to separate authorizations for regional corpo-
2 rations shall remain in effect with respect to such quinella wagers.
3 At any time such [associations do] franchised corporation does not
4 offer such an additional daily double, the provisions of this subdivi-
5 sion with respect to separate authorizations for regional corporations
6 shall remain in effect with respect to such an additional daily double
7 wager.
8 Whenever regional off-track betting corporations offer wagers pursuant
9 to this subdivision that are not combined in a common pool with similar
10 on-track wagers, the provisions of subdivision eight of section five
11 hundred twenty-three of this chapter shall apply to such wagers.
12 2. a. In addition to the authority granted under subdivision one of
13 this section, the board shall require, under conditions subject to its
14 approval, the [track operator for such nonprofit racing associations]
15 franchised corporation to provide direct transmissions into selected
16 regional off-track facilities of a current "live call of the race,"
17 defined as the current positions of the horses at specified places on
18 the track during the race. The track operator itself may perform the
19 broadcast; or, provide appropriate space and facilities to enable a
20 single, alternative broadcast to be performed solely for the use of
21 regional off-track betting corporations, the expense of such alternative
22 broadcast to be borne by such regional corporations, at the discretion
23 of such regional corporations. In either case, all incremental trans-
24 mission costs are to be borne by such regional corporations.
25 b. The regional off-track betting facilities, each of which shall have
26 been in operation for six months or more prior to receiving such trans-
27 missions and at least forty percent of which shall have had a total pool
28 on races of such [nonprofit racing associations] franchised corporation
29 during such period equal to or greater than the median pool on such
30 races in all such facilities in such county, that shall receive such
31 transmissions are authorized as follows, provided that such requirements
32 with respect to duration of operation and total pool shall not apply to
33 facilities in the New York city region:
34 (i) for the New York city region, any facility, located more than five
35 miles from [such operating non-profit racing association track] any
36 thoroughbred racetrack operated by a franchised corporation, for which
37 the New York city off-track betting corporation requests such trans-
38 missions of such [nonprofit racing associations] franchised corporation.
39 (ii) for the Nassau region, one facility located at least ten miles
40 from any thoroughbred [track] racetrack operated by [such nonprofit
41 racing associations] a franchised corporation.
42 (iii) for the Suffolk region, one facility.
43 (iv) for the Catskill and Western regions, six facilities each,
44 provided, however, that no such transmissions are authorized into the
45 portion of the Western and Catskill regions in the thoroughbred special
46 betting district on those days that a thoroughbred track is conducting
47 racing in such special betting district.
48 (v) for the Capital District region, six facilities, provided, howev-
49 er, that no such transmissions are authorized into the Capital District
50 region on those days that a [nonprofit racing association] franchised
51 corporation is conducting races at a track located within such region.
52 Nothing in this subparagraph shall prohibit such region and a [nonprofit
53 racing association] franchised corporation from entering into an agree-
54 ment to provide such transmissions in additional facilities subject to
55 the restrictions in this subparagraph.
S. 6950 66 A. 9998
1 c. The board shall approve the request of each such regional off-track
2 betting corporation to transmit the call of the race, beginning January
3 first, nineteen hundred seventy-nine, into an additional, like number of
4 facilities as specified in paragraph b of this subdivision and subject
5 to the conditions in such paragraph. Provided, however, that nothing
6 shall prohibit such [nonprofit racing association] franchised corpo-
7 ration from entering into agreements with such regional off-track
8 betting corporations designating additional facilities within the
9 regions of such regional off-track betting corporations that may offer a
10 "live call of the race", except that no such transmissions are author-
11 ized into the portion of the Western and Catskill regions in the
12 thoroughbred special betting district on those days that a thoroughbred
13 track is conducting racing in such special betting district.
14 d. Notwithstanding any provisions to the contrary in this subdivision,
15 during and only during the period that such [nonprofit racing associ-
16 ation] franchised corporation shall conduct races at a racetrack not
17 within the counties of Suffolk, Nassau and the five counties comprising
18 the city of New York, the track operator for such [nonprofit racing
19 association] franchised corporation shall provide direct transmissions
20 into all of the facilities operated by off-track betting corporations,
21 except those within the Capital District region and any facilities with-
22 in a thoroughbred special betting district, other than those facilities
23 authorized to accept wagers on races conducted by such [nonprofit asso-
24 ciation] franchised corporation, on those days that a thoroughbred
25 [racing track] racetrack is conducting racing in such special betting
26 district, of a current "live call of the race" as defined, and subject
27 to the conditions provided for, in paragraph a of this subdivision.
28 Provided, however, nothing shall prohibit such [nonprofit racing associ-
29 ation] franchised corporation from entering into an agreement with the
30 Capital District regional corporation designating specific facilities
31 within the Capital District region that may offer a "live call of the
32 race".
33 3. A [nonprofit racing association] franchised corporation shall make
34 available such space and facilities as may be required to enable
35 regional off-track betting corporations to obtain the information speci-
36 fied in section two hundred [twenty-six] thirty-four of this chapter for
37 transmission to patrons in the facilities of such corporations. In addi-
38 tion, such associations shall cooperate with such corporations in order
39 to develop a system whereby off-track wagers are combined with on-track
40 wagers in a common pool, and the odds or potential payoff reflecting or
41 based upon that pool are displayed at off-track facilities periodically
42 during the time preceding the race on which such wagers are made. The
43 purpose of the system is to enable wagers placed off-track to be
44 combined concurrently with wagers placed on-track until as close to the
45 beginning of the race as is technically feasible, with due regard for
46 the security and accuracy of such system. The costs of the changes
47 adopted pursuant to this section shall be borne by those regional off-
48 track betting corporations electing to receive such information or to
49 combine the on-track and off-track pools on a more timely basis.
50 4. Notwithstanding any other provision of law, the Western region
51 off-track betting corporation is hereby authorized to develop a system,
52 subject to approval of the board, whereby off-track wagers are combined
53 on a current basis with on-track wagers on races conducted by [an asso-
54 ciation or] a corporation licensed to conduct thoroughbred races at a
55 track located within the Western region. Such [association or] corpo-
56 ration shall cooperate in the provision of such wagers and shall also
S. 6950 67 A. 9998
1 provide on such races direct transmission into the facilities of such
2 regional corporation of a current "live call of the race" as defined in
3 paragraph a of subdivision two of this section.
4 § 77. Subdivision 2 of section 902 of the racing, pari-mutuel wagering
5 and breeding law, as amended by chapter 60 of the laws of 1993, is
6 amended to read as follows:
7 2. Notwithstanding any inconsistent provision of law, [on and after
8 April first, nineteen hundred eighty-six,] all costs and expenses of the
9 state racing and wagering board for equine drug testing and research
10 shall be paid from an appropriation from the state treasury, on the
11 certification of the chairman of the state racing and wagering board,
12 upon the audit and warrant of the comptroller and pursuant to a plan
13 developed by the state racing and wagering board as approved by the
14 director of the budget.
15 § 78. Section 903 of the racing, pari-mutuel wagering and breeding law
16 is REPEALED and section 904, as added by chapter 764 of the laws of
17 1992, is renumbered section 903 and amended to read as follows:
18 § 903. Simulcasting rights; Breeders' Cup Ltd. Notwithstanding any
19 inconsistent provision of this chapter and upon the approval of the
20 board, a [nonprofit racing association, organized pursuant to section
21 two hundred two of this chapter,] franchised corporation is authorized
22 to enter into an agreement with the Breeders' Cup Ltd. for the disposi-
23 tion of all revenues derived by such [association] franchised corpo-
24 ration from and limited to the live transmission of the audio/visual
25 signals of and from pari-mutuel wagering on races run by such [associ-
26 ation or] franchised corporation to be known as the "Breeders' Cup Event
27 Day", in such manner as such [association or] franchised corporation
28 shall determine. [All expenses incurred by a nonprofit racing associ-
29 ation pursuant to the provisions of this section, shall be deemed to be
30 extraordinary nonrecurring charges for the purposes of paragraph b of
31 subdivision one of section two hundred eight of this chapter.]
32 § 79. Section 905 of the racing, pari-mutuel wagering and breeding
33 law, as amended by chapter 919 of the laws of 1986, the opening para-
34 graph of subdivision 1, subdivision 2 as amended and subdivision 2-a as
35 added by chapter 503 of the laws of 1992, paragraph a of subdivision 1
36 as amended by section 5 of part B of chapter 59 of the laws of 2005,
37 paragraph c of subdivision 1 as amended by section 12 of part F3 of
38 chapter 62 of the laws of 2003, is renumbered section 904 and amended to
39 read as follows:
40 § 904. On-track wagers on the Kentucky Derby, the Preakness and the
41 Breeders' Cup. 1. Notwithstanding any inconsistent provision of this
42 chapter, whenever a regional off-track betting corporation accepts
43 wagers on and displays the simulcast of the Kentucky Derby, the Preak-
44 ness or races known as the "Breeders' Cup", any corporation or associ-
45 ation [or non-profit racing association] conducting pari-mutuel betting
46 pursuant to this chapter may elect to accept wagers on and display the
47 simulcast of the Kentucky Derby, the Preakness and the races known as
48 the Breeders' Cup. Upon such election:
49 a. The applicable state tax provided for in paragraphs a and b of
50 subdivision one of section five hundred twenty-seven of this chapter
51 shall be one-half per centum for regular, multiple and exotic bets. Any
52 harness racing or association or corporation, [nonprofit racing associ-
53 ation] or thoroughbred racing [association or] corporation authorized
54 pursuant to this section shall pay to the racing and wagering board as a
55 regulatory fee, which fee is hereby levied, fifty hundredths of one
56 percent of the total daily pari-mutuel pools.
S. 6950 68 A. 9998
1 b. The system of on and off-track betting shall result in the combina-
2 tion of all off-track wagers with on-track wagers so as to produce
3 common pari-mutuel betting pools. Provided, however, that the board may
4 authorize separate pari-mutuel wagering pools for any corporation or
5 association electing to accept such wagers, if it determines that a
6 common on and off-track pari-mutuel betting pool, due to limitations in
7 existing computer systems and information transmission and receiving
8 capacities cannot practically be accomplished so as to maximize a
9 reasonable number of separate wagering interests. The resulting separate
10 pools for regional off-track betting corporations shall be subject to
11 the limitations set forth in subdivision eight of section five hundred
12 twenty-three of this chapter.
13 c. Every association[,] and corporation [and non-profit racing associ-
14 ation] shall distribute all sums deposited in any pari-mutuel pool to
15 the holders of winning tickets therein, providing such tickets be
16 presented for payment before April first of the year following the year
17 of their purchase, less an amount which it shall retain at the same rate
18 established by the sending track plus the breaks.
19 d. For [non-profit racing associations] a franchised corporation, the
20 applicable state tax and distributions to purses and the New York state
21 thoroughbred breeding and development fund shall be the same amounts as
22 provided in section two hundred [twenty-nine] thirty-eight of this chap-
23 ter provided, however, that upon election of any corporation [or associ-
24 ation] to accept such wagers, no additional amounts may be withheld as
25 provided in section two hundred [twenty-eight-a] thirty-seven of this
26 chapter.
27 e. For any [association or] corporation licensed pursuant to article
28 two of this chapter, [other than a non-profit racing association], the
29 applicable state tax shall be one percent of all wagers, the amount
30 payable to the thoroughbred breeding and development fund shall be one-
31 half of one percent and distribution to purses shall be fifty percent of
32 the amount retained by the track after all statutory and contracted
33 payments are made. No additional amounts may be withheld as provided in
34 section two hundred [twenty-eight-a] thirty-seven of this chapter.
35 f. For any association or corporation licensed pursuant to article
36 three of this chapter, the applicable state tax shall be one percent of
37 all wagers, the amount payable to the thoroughbred breeding and develop-
38 ment fund shall be one-half of one percent and distributions to purses
39 shall be one and three-quarters percent. No additional amounts may be
40 withheld as provided in section three hundred nineteen of this chapter.
41 For the purposes of purse distributions, any association or corporation
42 located in the Western Off-Track Betting Region shall remit said
43 distributions to the thoroughbred track located within said region and
44 all other corporations or associations shall remit said purse distrib-
45 utions to a [non-profit racing association] franchised corporation.
46 Notwithstanding any other provision of law, any such association or
47 corporation conducting pari-mutuel wagering on races run by a [non-pro-
48 fit racing association] franchised corporation on the days when they are
49 accepting wagers on the Kentucky Derby, the Preakness or the Breeders'
50 Cup shall pay a state pari-mutuel tax of one percent of all such wagers
51 in lieu of the tax imposed by paragraph a of subdivision three of
52 section one thousand seven of this chapter.
53 2. The state racing and wagering board shall approve an application
54 from any racing corporation or association [or non-profit racing associ-
55 ation] pursuant to subdivision one of this section to accept on-track
56 wagers and display the simulcast of the Kentucky Derby or the Preakness
S. 6950 69 A. 9998
1 provided, however, that no application shall be approved by the board
2 that it determines may cause a reduction of the total number of racing
3 events normally conducted at the track on a daily basis.
4 2-a. The state racing and wagering board shall approve an application
5 from any racing corporation or association [or non-profit racing associ-
6 ation] pursuant to subdivision one of this section to accept on-track
7 wagers on the Breeders' Cup races, and, in instances where the applica-
8 tion contemplates the on-track display of simulcasts of and wagering on
9 the entire card of Breeders' Cup races, the board shall authorize, for
10 that day, a reduction of the total number of racing events normally
11 conducted at the track on a daily basis provided that the total number
12 of live racing events conducted at the track shall not be less than two.
13 3. Every racing association or corporation [or non-profit racing asso-
14 ciation] authorized to accept wagers on the Kentucky Derby, the Preak-
15 ness or the Breeders' Cup pursuant to subdivision one of this section
16 shall be subject to all appropriate provisions of this chapter pursuant
17 to the conduct of a race meeting by such association or corporation [or
18 non-profit racing association].
19 4. Notwithstanding any other provision of law, whenever a harness
20 racing association or corporation is receiving the simulcast of races
21 run at a thoroughbred racing [association or] corporation, such harness
22 racing association may also receive the telecast of and accept wagers on
23 any out of state races which are telecast to the thoroughbred racing
24 [association or] corporation. Pools resulting from wagers in the out of
25 state races shall be combined with the appropriate pools resulting from
26 wagers on such races at the thoroughbred racing [association or] corpo-
27 ration.
28 § 80. Section 907 of the racing, pari-mutual wagering and breeding law
29 is renumbered section 905.
30 § 81. Section 908 of the racing, pari-mutuel wagering and breeding law
31 is renumbered section 906 and subdivision 1 of such section, as added by
32 chapter 2 of the laws of 1995, is amended to read as follows:
33 1. Notwithstanding any other provision of law, [a non-profit racing
34 association,] a thoroughbred racing [association] corporation, a harness
35 racing corporation or association, a regional off-track betting corpo-
36 ration or a combination thereof, may operate a handicapping tournament
37 at which the participants may be charged an entry fee if the tournament
38 is conducted in accordance with the provisions of this section.
39 § 82. Section 909 of the racing, pari-mutuel wagering and breeding
40 law, as added by chapter 373 of the laws of 2004, is renumbered section
41 907 and is amended to read as follows:
42 § 907. Proposition Wagers. 1. a. Every racing association or corpo-
43 ration licensed or franchised in accordance with article two, three or
44 four of this chapter shall have the authority to offer proposition
45 wagering on its own races. For the purposes of this section, a proposi-
46 tion wager shall mean pari-mutuel wagers, approved by the racing and
47 wagering board, that are based on the results of a live horse race or a
48 series of horse races. Proposition wagers may include pari-mutuel wagers
49 on the leading trainers, drivers, or jockeys during an entire race meet-
50 ing and pari-mutuel wagers on the leading trainers, drivers, and jockeys
51 competing on a single program in one or more stakes races or in races
52 that award purses of one hundred thousand dollars or more. The board
53 shall promulgate rules and regulations to administer the conduct and
54 offering of proposition wagers. The board, in promulgating rules and
55 regulations to implement this section and in approving proposition
56 wagers, shall consider: (i) the class of the race or races that are to
S. 6950 70 A. 9998
1 be the subject of the wager, (ii) whether the rules governing the propo-
2 sition wager are comprehensible to bettors, (iii) whether the outcome of
3 the wager is subject to potential manipulation or abuse by third parties
4 or by licensees of the board, (iv) the length of time between the time
5 that the bets are placed and the time that the outcome of the bets will
6 be determined, and (v) whether authorization of the wager will enhance
7 the best interests of New York racing generally.
8 b. The total percentage deducted from a proposition wager shall be
9 fifteen per centum of the total amount handled in the pari-mutuel pool
10 for those wagers, or, at the request of the association or corporation
11 offering the proposition wager, and with the approval of the racing and
12 wagering board, a lower percentage range of between seven and fifteen
13 per centum may be designated.
14 c. Out of the amount retained by the association or corporation offer-
15 ing the proposition wager, there shall be paid as a tax to the commis-
16 sioner of taxation and finance .25 per centum of the total amount
17 handled in the pari-mutuel pool for these wagers plus twenty per centum
18 of the breaks as defined in subdivision one of section two hundred
19 [twenty-nine] thirty-eight of this chapter.
20 d. (i) A racing association or corporation licensed or franchised in
21 accordance with article two of this chapter shall pay an amount equal to
22 .5 per centum of the total pools from proposition wagers to the New York
23 state thoroughbred breeding and development fund.
24 (ii) A racing association or corporation licensed in accordance with
25 article three of this chapter shall pay an amount equal to .5 per centum
26 of the total pools from proposition wagers to the agriculture and New
27 York state horse breeding development fund.
28 (iii) A racing association or corporation licensed in accordance with
29 article four of this chapter shall pay an amount equal to .5 per centum
30 of the total pools from proposition wagers to the New York state quarter
31 horse breeding and development fund.
32 e. After distributions have been made pursuant to paragraphs c and d
33 of this subdivision, fifty per centum of the amount retained by the
34 association or corporation on proposition wagers shall be distributed to
35 purses. Fifty per centum of compensation received by the association or
36 corporation, on account of proposition wagering on races conducted by
37 such association or corporation, from simulcast facilities or off-track
38 betting facilities, whether or not located in New York, shall be
39 distributed to purses.
40 2. a. A guest facility may enter into a contract with the host racing
41 association or corporation to offer wagering on the same proposition
42 wagers offered by the host racing association. As used in this section,
43 a guest facility shall mean any regional off-track betting corporation
44 or [and] an in-state facility accepting pari-mutuel wagers other than
45 the facility where the subject races are run.
46 b. The retention rate of a guest facility offering proposition wager-
47 ing shall be the same as the retention rate utilized by the host racing
48 association or corporation. The amount to be paid as a tax by a guest
49 facility shall be the same as that paid pursuant to paragraph c of
50 subdivision one of this section.
51 c. (i) Guest facilities licensed under section one thousand seven of
52 this chapter which are also licensed or enfranchised racing associations
53 or corporations under article two of this chapter shall pay an amount
54 equal to .5 per centum of total pools from proposition wagers to the New
55 York state thoroughbred breeding and development fund.
S. 6950 71 A. 9998
1 (ii) Guest facilities licensed under section one thousand seven of
2 this chapter which are also licensed as racing associations or corpo-
3 rations under article three of this chapter shall pay an amount equal to
4 .5 per centum of total pools from proposition wagers to the agriculture
5 and New York state horse breeding and development fund.
6 (iii) Guest facilities licensed under section one thousand seven of
7 this chapter which are also licensed as racing associations or corpo-
8 rations under article four of this chapter shall pay an amount equal to
9 .5 per centum of total pools from proposition wagers to the New York
10 state quarter horse breeding and development fund.
11 (iv) Guest facilities which are not also licensed or enfranchised
12 under article two, three or four of this chapter shall pay an amount
13 equal to .5 per centum of total pools from proposition wagers (A) to the
14 New York state thoroughbred breeding and development fund if the host
15 track is a thoroughbred track, (B) to the agriculture and New York state
16 horse breeding and development fund if the host track is a harness
17 track, (C) to the New York state quarter horse breeding and development
18 fund if the host track is a quarter horse track and (D) to the New York
19 state thoroughbred breeding and development fund if the proposition
20 wagers are based on a mix of thoroughbred and quarter horse races. If
21 there is no association or corporation licensed under article four of
22 this chapter, the distribution of funds that would otherwise be distrib-
23 uted to the New York state quarter horse breeding and development fund
24 shall be divided equally between the New York state thoroughbred breed-
25 ing and development fund and the agriculture and New York state horse
26 breeding and development fund.
27 d. Guest facilities which are also licensed or enfranchised racing
28 associations or corporations shall, after distributions are made pursu-
29 ant to paragraphs a, b and c of this subdivision shall distribute fifty
30 per centum of their remaining retention to purses.
31 e. Every [non-profit] racing [association, other association, or]
32 corporation, off-track betting corporation, or operator of a simulcast
33 theater shall pay to the racing and wagering board as a regulatory fee,
34 which fee is hereby levied, thirty-nine hundredths of one per centum of
35 the total daily on-track pari-mutuel pools of such association or corpo-
36 ration or other entity of proposition wagers.
37 § 83. Section 910 of the racing, pari-mutuel wagering and breeding
38 law, as added by chapter 354 of the laws of 2005, is renumbered section
39 908 and is amended to read as follows:
40 § 908. Non-refundable tax credit. Each regional [off track] off-track
41 betting corporation shall be entitled to a monthly non-refundable tax
42 credit to be applied against the pari-mutuel tax on all pools on races
43 conducted within New York state. Such credit shall be equal to fifty-
44 four percent of the pari-mutuel tax attributable to such corporation's
45 daily increase in wagers on races at each respective track authorized by
46 this chapter on races conducted within New York state compared to such
47 corporation's average daily wagers on races conducted within New York
48 state during the year ending December thirty-first, two thousand four.
49 § 84. Section 911 of the racing, pari-mutuel wagering and breeding law
50 is REPEALED.
51 § 85. Section 912 of the racing, pari-mutuel wagering and breeding
52 law, as renumbered by chapter 293 of the laws of 2007, is renumbered
53 section 909.
54 § 86. Section 912 of the racing, pari-mutuel wagering and breeding
55 law, as added by chapter 535 of the laws of 2007, is renumbered section
56 910.
S. 6950 72 A. 9998
1 § 87. Subdivision 2 of section 1002 of the racing, pari-mutuel wager-
2 ing and breeding law, as amended by chapter 280 of the laws of 2001, is
3 amended to read as follows:
4 2. The board shall annually submit reports on or before July first
5 following each year in which simulcasting is conducted to the director
6 of the budget, the chairman of the senate finance committee and the
7 chairman of the assembly ways and means committee evaluating the results
8 of such simulcasts on the compatibility with the well-being of the horse
9 racing, breeding and pari-mutuel wagering industries in this state and
10 make any recommendations it deems appropriate. Such reports may be
11 submitted together with the reports required by subdivision two of
12 section two hundred [twenty-eight] thirty-six and subparagraph (iii) of
13 paragraph a and subparagraph (i) of paragraph b of subdivision one of
14 section three hundred eighteen of this chapter.
15 § 88. Paragraph (a) of subdivision 1 of section 1003 of the racing,
16 pari-mutuel wagering and breeding law, as amended by section 1 of part A
17 of chapter 60 of the laws of 2007, is amended to read as follows:
18 (a) Any racing association or corporation or regional off-track
19 betting corporation, authorized to conduct pari-mutuel wagering under
20 this chapter, desiring to display the simulcast of horse races on which
21 pari-mutuel betting shall be permitted in the manner and subject to the
22 conditions provided for in this article may apply to the board for a
23 license so to do. Applications for licenses shall be in such form as may
24 be prescribed by the board and shall contain such information or other
25 material or evidence as the board may require. No license shall be
26 issued by the board authorizing the simulcast transmission of thorough-
27 bred races from a track located in Suffolk county. The fee for such
28 licenses shall be five hundred dollars per simulcast facility per year
29 payable by the licensee to the board for deposit into the general fund.
30 Except as provided herein, the board shall not approve any application
31 to conduct simulcasting into individual or group residences, homes or
32 other areas for the purposes of or in connection with pari-mutuel wager-
33 ing. The board may approve simulcasting into residences, homes or other
34 areas to be conducted jointly by one or more regional off-track betting
35 corporations and one or more of the following: a [non-profit racing
36 association, a] franchised corporation, thoroughbred racing corporation
37 [or association] or a harness racing corporation or association;
38 provided (i) the simulcasting consists only of those races on which
39 pari-mutuel betting is authorized by this chapter at one or more simul-
40 cast facilities for each of the contracting off-track betting corpo-
41 rations which shall include wagers made in accordance with section one
42 thousand [sixteen] fifteen, one thousand [seventeen] sixteen and one
43 thousand [seventeen-a] seventeen of this chapter; provided further that
44 the contract provisions or other simulcast arrangements for such simul-
45 cast facility shall be no less favorable than those in effect on January
46 first, two thousand five; (ii) that each off-track betting corporation
47 having within its geographic boundaries such residences, homes or other
48 areas technically capable of receiving the simulcast signal shall be a
49 contracting party; (iii) the distribution of revenues shall be subject
50 to contractual agreement of the parties except that statutory payments
51 to non-contracting parties, if any, may not be reduced; provided, howev-
52 er, that nothing herein to the contrary shall prevent a track from tele-
53 vising its races on an irregular basis primarily for promotional or
54 marketing purposes as found by the board. For purposes of this para-
55 graph, the provisions of section one thousand thirteen of this article
56 shall not apply. Any agreement authorizing an in-home simulcasting
S. 6950 73 A. 9998
1 experiment commencing prior to May fifteenth, nineteen hundred ninety-
2 five, may, and all its terms, be extended until June thirtieth, two
3 thousand [eight] nine; provided, however, that any party to such agree-
4 ment may elect to terminate such agreement upon conveying written notice
5 to all other parties of such agreement at least forty-five days prior to
6 the effective date of the termination, via registered mail. Any party to
7 an agreement receiving such notice of an intent to terminate, may
8 request the board to mediate between the parties new terms and condi-
9 tions in a replacement agreement between the parties as will permit
10 continuation of an in-home experiment until June thirtieth, two thousand
11 [eight] nine; and (iv) no in-home simulcasting in the thoroughbred
12 special betting district shall occur without the approval of the
13 regional thoroughbred track.
14 § 89. The opening paragraph of subdivision 1, subparagraph (iii) of
15 paragraph d and paragraph g of subdivision 3 of section 1007 of the
16 racing, pari-mutuel wagering and breeding law, the opening paragraph of
17 subdivision 1 as amended by chapter 2 of the laws of 1995, subparagraph
18 (iii) of paragraph d of subdivision 3 as amended by section 2 of part A
19 of chapter 60 of the laws of 2007, paragraph g of subdivision 3 as
20 amended by section 6 of part B of chapter 59 of the laws of 2005, are
21 amended to read as follows:
22 The board may authorize and approve one or more applications for a
23 license by any harness racing association or corporation, [non-profit
24 racing association] or thoroughbred racing [association or] corporation
25 as provided in section one thousand three of this article to provide for
26 the simulcast of horse races for wagering purposes from a track operated
27 by any association or corporation which is conducting a pari-mutuel race
28 meeting under this chapter to a receiving track operated by any associ-
29 ation or corporation applying for such license except it shall not be
30 applicable when a throughbred track in zone two is simulcasting to a
31 thoroughbred track in zone one, provided, however, that no application
32 shall be approved by the board:
33 (iii) Of the sums retained by a receiving track located in Westchester
34 county on races received from a [non-profit racing association] fran-
35 chised corporation, for the period commencing [July twenty-first, nine-
36 teen hundred ninety-five] January first, two thousand eight and continu-
37 ing through June thirtieth, two thousand [eight] nine, the amount used
38 exclusively for purses to be awarded at races conducted by such receiv-
39 ing track shall be computed as follows: of the sums so retained, two and
40 one-half percent of the total pools. Such amount shall be increased or
41 decreased in the amount of fifty percent of the difference in total
42 commissions determined by comparing the total commissions available
43 after July twenty-first, nineteen hundred ninety-five to the total
44 commissions that would have been available to such track prior to July
45 twenty-first, nineteen hundred ninety-five.
46 g. Any harness racing or association or corporation, [non-profit
47 racing association] or thoroughbred racing [association or] corporation
48 authorized pursuant to this section shall pay to the racing and wagering
49 board as a regulatory fee, which fee is hereby levied, fifty hundredths
50 of one percent of the total daily pari-mutuel pools.
51 § 90. Subdivisions 1, 2 and 2-a of section 1008 of the racing, pari-
52 mutuel wagering and breeding law, subdivisions 1 and 2 as added by chap-
53 ter 363 of the laws of 1984, the opening paragraph of subdivision 1 and
54 paragraph c of subdivision 2 as amended by chapter 346 of the laws of
55 1990, subparagraph (ii) of paragraph c of subdivision 2 as amended by
S. 6950 74 A. 9998
1 chapter 35 of the laws of 1993, subdivision 2-a as amended by chapter
2 524 of the laws of 1991, are amended to read as follows:
3 1. The board may in accordance with the provisions of section one
4 thousand three of this article and section five hundred twenty-three of
5 this chapter authorize and approve[:
6 a. An] an application for licenses submitted by any off-track betting
7 corporation to display the simulcasts of racing from any thoroughbred or
8 harness racing association or corporation located in the state.
9 2. Such application shall include, but not be limited to, a copy of a
10 written agreement between the sending track and such regional off-track
11 betting corporation and the following:
12 a. The location of each branch office to display the simulcast;
13 b. Any remuneration the sending track will receive in addition to the
14 provisions of section five hundred twenty-seven of this chapter; and
15 c. (i) Except as provided in section [ten hundred] one thousand thir-
16 teen of this chapter, if such sending track is not a thoroughbred track
17 in the Catskill region conducting a mixed meeting, letters of consent to
18 such agreement by the regional track or tracks conducting a meeting or
19 meetings of the same type of racing during the period for which simul-
20 casting is proposed. For purposes of this article, a track first
21 licensed to conduct pari-mutuel racing after January first, nineteen
22 hundred eighty-five, shall not be considered a regional track for
23 purposes of applicable letters of consent as required in this section
24 and section one thousand nine of this chapter. Such period shall be
25 defined as a twenty-four hour day from midnight to midnight. For those
26 tracks located in the city of New York or the counties of Westchester or
27 Nassau, such period shall be limited to the same time of day, defined as
28 afternoon against afternoon, twilight against twilight and evening
29 against evening, the hours for which shall be as further specified by
30 the board.
31 (ii) For any simulcasting facility located within an area of a circle
32 whose radius is forty miles, the center of which shall be measured from
33 a regional track, and as provided in section [ten hundred] one thousand
34 thirteen of this chapter, the board shall not approve such application
35 unless such regional track, as described in subparagraph (i), has given
36 its written authorization, provided however, that between thirty-one and
37 forty miles such approval shall not be unreasonably withheld. Such
38 approval shall not be required if the simulcasting facility is located
39 without the forty mile radius or if the sending track is a thoroughbred
40 track in the Catskill region conducting a mixed meeting. Such written
41 authorization shall not be required nor shall the provisions of section
42 five hundred twenty-three of this chapter apply to those races that such
43 regional track may elect to receive as a simulcast race during its regu-
44 larly scheduled race meeting.
45 2-a. In the interest of providing maximum distribution of the simul-
46 cast signal of New York pari-mutuel races among regional off-track
47 betting corporations, whenever a sending track makes its simulcast
48 signal available to an off-track betting region authorized to accept its
49 wagers, such sending track shall make its simulcast signal available to
50 all such regions authorized to accept its wagers in accordance with
51 section five hundred twenty-three of this chapter, and subdivision two
52 of this section. In the event the sending track and the off-track
53 betting corporations are unable to agree upon terms, including the iden-
54 tification of branch offices required to receive the signal, such terms,
55 conditions and consideration shall be determined by binding arbitration
S. 6950 75 A. 9998
1 as provided in section [ten hundred] one thousand thirteen of this chap-
2 ter.
3 § 91. Subdivisions 1, 2, 3, 5 and 11 of section 1009 of the racing,
4 pari-mutuel wagering and breeding law, as added by chapter 363 of the
5 laws of 1984, subdivision 1 as amended by section 27 of part F3 of chap-
6 ter 62 of the laws of 2003, paragraph b of subdivision 3 as amended by
7 section 27-a of part F3 of chapter 62 of the laws of 2003, subdivisions
8 2 and 5 and paragraph c of subdivision 3 as amended and paragraph f of
9 subdivision 3 and subdivision 11 as added by chapter 346 of the laws of
10 1990, paragraph e of subdivision 3 as amended by chapter 524 of the laws
11 of 1991, paragraph a of subdivision 5 as amended by chapter 503 of the
12 laws of 1992, are amended to read as follows:
13 1. The board may authorize and approve eight licenses, except that any
14 approval of a license for a [non-profit racing association] franchised
15 corporation shall not decrease the number of licenses available, as of
16 July first, nineteen hundred ninety to any other eligible operator under
17 subdivision two of this section, for the operation of simulcast theaters
18 as defined in section one thousand one of this article. One such license
19 shall only be approved for the regional off-track betting corporation
20 defined by paragraph b of subdivision one of section five hundred nine-
21 teen of this chapter.
22 2. Such a simulcast theater, pursuant to a license issued in accord-
23 ance with the provisions of this section and section one thousand three
24 of this article may be owned or leased, and operated, (a) by one or more
25 racing associations or corporations; (b) by the regional off-track
26 betting corporation of the region where such simulcast theater facility
27 is to be located; (c) jointly by one or more racing associations or
28 corporations and the regional off-track betting corporation of the
29 region where such simulcast theater facility is to be located; or (d) by
30 a [non-profit racing association] franchised corporation; provided,
31 however, that for the purposes of paragraph (a) of subdivision two-a of
32 this section, an entity authorized by paragraph (b) or (c) of this
33 subdivision to own, lease or operate a simulcast theater may, pursuant
34 to a competitive bidding procedure carried out in accordance with rules
35 and regulations issued by the board, select another person, firm or
36 corporation to operate or jointly own or lease such facility and enter
37 into a written agreement with such person, firm or corporation provided
38 that such party shall be subject to the licensing requirements of the
39 board.
40 3. Any application for such license shall be subject to those condi-
41 tions set forth in section one thousand three and shall also include:
42 a. A written agreement between the sending tracks and the applicant;
43 b. Letters of consent to the application from any regional track which
44 is not a party to the operation of the proposed theater unless such
45 track is located more than forty miles from the proposed simulcast thea-
46 ter; and a copy of any agreement between the applicant and such corpo-
47 ration pursuant to which such consent has been given, subject to the
48 provision of subdivision two of section one thousand seven of this arti-
49 cle. Notwithstanding the foregoing, the Nassau region may apply to
50 locate one simulcast theater within Nassau County without a letter of
51 consent from the operator of the regional track provided the proposed
52 simulcast theater is not within fifteen miles of the closest border of
53 any racing facility [owned] operated by a [non-profit racing associ-
54 ation] franchised corporation.
55 c. Except for an application from a [non-profit racing association]
56 franchised corporation to operate within the Suffolk region, Nassau
S. 6950 76 A. 9998
1 region, New York City region, or Westchester county in the absence of
2 enabling legislation, a letter of consent to the application from the
3 regional off-track betting corporation of the region where such simul-
4 cast theater facility is to be located if such corporation is not a
5 party to the operation of the proposed theater.
6 d. If such theater is to be jointly operated by one or more racing
7 associations or corporations or by one or more racing associations or
8 corporations and the regional off-track betting corporation of the
9 region where such simulcast theater is to be located or if the costs,
10 revenues and/or net profits from the operation of such facility are to
11 be allocated among more than one such party, a copy of a written agree-
12 ment among such corporations or associations as to the rights and
13 responsibilities of each such party and the provisions pursuant to which
14 costs, revenues and/or net profits are to be allocated.
15 e. A copy of a resolution adopted by the governing body of the city,
16 town or village in which the proposed simulcast theater is to be
17 located, approving the application and requesting that the application
18 for the proposed simulcasting theater be approved. In a city of one
19 million or more, approval of the mayor shall also be required. Approval
20 of the governing body of the county and the county executive within
21 which such municipality is located shall also be required. If the
22 proposed facility is to be located wholly within a village, approval by
23 the governing body of the town or towns within which such village is
24 located shall also be required.
25 f. An application from a [non-profit racing association] franchised
26 corporation shall not be considered by a city of one million or more,
27 earlier than eighteen months after this provision shall have become law.
28 5. a. [Except when wagers are accepted pursuant to section one thou-
29 sand fourteen of this article an] An admission fee to simulcast theaters
30 shall be charged and the amount of such admission fee shall be subject
31 to the approval of the racing and wagering board.
32 b. Such admission fee shall be subject to a state admission tax
33 imposed at the rate of four per centum of the admission fee. The tax
34 shall be administered by the commissioner of taxation and finance and
35 the provisions of section three hundred six of this chapter relating to
36 the administration and collection of the tax imposed by such section
37 shall apply to the tax imposed by this paragraph, in the same manner and
38 with the same force and effect as if the language of such provisions had
39 been incorporated in full into this paragraph and had expressly referred
40 to the tax imposed by this paragraph, except to the extent that any such
41 provision is either inconsistent with a provision of this paragraph or
42 is not relevant to this paragraph.
43 c. Any county (except a county wholly within a city) or city, or both,
44 in which a simulcast theater is located, is hereby authorized and
45 empowered to adopt and amend local laws imposing a tax on such admission
46 fee at a rate not to exceed fifteen per centum of the admission fee. The
47 provisions of article eight of this chapter relating to the adminis-
48 tration and collection of the taxes authorized to be imposed by such
49 article (including the provisions relating to judicial review) shall
50 apply to a tax imposed pursuant to the authority of this paragraph, in
51 the same manner and with the same force and effect as if the language of
52 such provisions had been incorporated in full into this paragraph and
53 had expressly referred to a tax authorized to be imposed pursuant to
54 this paragraph, except to the extent that any such provision is either
55 inconsistent with a provision of this paragraph or is not relevant to
56 this paragraph.
S. 6950 77 A. 9998
1 11. The provisions of section [ten hundred] one thousand thirteen of
2 this chapter shall apply to any disputes with regard to the requirements
3 of [paragraph] subdivision three of this section provided, however, that
4 binding arbitration shall not be a remedy if the proposed simulcast
5 theater is less than forty miles from a regional track.
6 § 92. Section 1011 of the racing, pari-mutuel wagering and breeding
7 law, as amended by chapter 346 of the laws of 1990, subdivisions b and c
8 as amended by chapter 524 of the laws of 1991, is amended to read as
9 follows:
10 § 1011. Certain credit to off-track betting corporations. a. During
11 the period that a [nonprofit racing association] franchised corporation
12 is simulcasting from a facility [owned] operated by such [non-profit
13 racing association] franchised corporation in the second zone as defined
14 in section two hundred [forty] forty-seven of this chapter to a facility
15 [owned] operated by such [nonprofit racing association] franchised
16 corporation pursuant to section one thousand seven of this chapter, any
17 off-track betting corporation operating in a county in which such asso-
18 ciation maintains a racetrack shall receive a credit of twenty-five per
19 centum of the state taxes due pursuant to section five hundred twenty-
20 seven of this chapter on wagers placed on races conducted by such asso-
21 ciation, provided that such corporation has entered into an agreement
22 with the employee organization representing the employees of such corpo-
23 ration in which it has agreed not to reduce its workforce as a result of
24 such simulcasting.
25 b. During the days that a [non-profit racing association] franchised
26 corporation is simulcasting from a racetrack facility [owned] operated
27 by such [non-profit racing association] franchised corporation and
28 located in the first zone to a racetrack facility [owned] operated by
29 such [non-profit racing association] franchised corporation located
30 wholly within a city of one million or more, one per centum of the total
31 wagers placed at such receiving facility shall be paid to such city.
32 c. During the days that a [non-profit racing association] franchised
33 corporation is simulcasting from a facility located wholly within a city
34 in the first zone to a racetrack facility [owned] operated by such
35 [non-profit racing association] franchised corporation located partially
36 within a city with a population in excess of one million and partially
37 within a county, one-half per centum of the total wagers placed at such
38 receiving facility shall be paid to such city and one-half per centum of
39 such wagers shall be paid to such county.
40 § 93. Section 1012 of the racing, pari-mutuel wagering and breeding
41 law, as amended by section 20 of part F3 of chapter 62 of the laws of
42 2003, subdivision 4-a as added and subdivision 5 as amended by chapter
43 314 of the laws of 2006, is amended to read as follows:
44 § 1012. Telephone accounts and telephone wagering. Any regional off-
45 track betting corporation, and any [non-profit racing association or]
46 franchised corporation, harness, thoroughbred, quarter horse racing
47 association or corporation licensed to conduct pari-mutuel racing may
48 maintain telephone betting accounts for wagers placed on races and
49 special events offered by such corporation[, corporation] or associ-
50 ation.
51 1. Any regional off-track betting corporation and any [non-profit
52 racing association or] franchised corporation, harness, thoroughbred,
53 quarter horse racing association or corporation licensed to conduct
54 pari-mutuel racing may require a minimum account balance in an amount to
55 be determined by such entity.
S. 6950 78 A. 9998
1 2. a. Any regional off-track betting corporation may suspend
2 collection of the surcharge imposed under section five hundred thirty-
3 two of this chapter on winning wagers placed in telephone accounts main-
4 tained by such regional corporation.
5 b. In a city of one million or more any regional off-track betting
6 corporation, with the approval of the mayor of such city, may suspend
7 collection of the surcharge imposed under section five hundred thirty-
8 two of this chapter in winning wagers placed in telephone accounts main-
9 tained by such regional corporation.
10 3. Any telephone account maintained by a regional off-track betting
11 corporation, [non-profit racing association or] franchised corporation,
12 harness, thoroughbred, quarter horse association or corporation, with
13 inactivity for a period of three years shall be forfeited and paid to
14 the commissioner of taxation and finance. Such amounts when collected
15 shall be paid by the commissioner of taxation and finance into the
16 general fund of the state treasury.
17 4. The maintenance and operation of such telephone accounts provided
18 for in this section shall be subject to rules and regulations of the
19 state racing and wagering board. The board shall include in such regu-
20 lation a requirement that telephone account information pertaining to
21 surcharge and nonsurcharge telephone accounts shall be separately
22 reported.
23 4-a. For the purposes of this section, "telephone betting accounts"
24 and "telephone wagering" shall mean and include all those wagers which
25 utilize any wired or wireless communications device, including but not
26 limited to wireline telephones, wireless telephones, and the internet,
27 to transmit the placement of wagers on races and special events offered
28 by any regional off-track betting corporation, and any [non-profit
29 racing association or] harness, thoroughbred, quarter horse racing asso-
30 ciation or corporation licensed or franchised to conduct pari-mutuel
31 racing in New York state.
32 5. The provisions of this section shall expire and be of no further
33 force and effect after June thirtieth, two thousand nine.
34 § 94. Section 1015 of the racing, pari-mutuel wagering and breeding
35 law, as added by chapter 281 of the laws of 1994, subdivision 1 as
36 amended by section 21 of part F3 of chapter 62 of the laws of 2003, the
37 opening paragraph of subdivision 1 as amended by section 3 of part A of
38 chapter 60 of the laws of 2007, subparagraph (iv) of paragraph i of
39 subdivision 1 as amended by section 9 of part B of chapter 59 of the
40 laws of 2005, is amended to read as follows:
41 § [1015] 1014. Simulcasting of out-of-state thoroughbred races. 1.
42 The provisions of this section shall govern the simulcasting of races
43 conducted at thoroughbred tracks located in another state or country on
44 any day during which a [non-profit racing association] franchised corpo-
45 ration is conducting a race meeting in Saratoga county at Saratoga
46 thoroughbred racetrack until June thirtieth, two thousand [eight] nine
47 and on any day regardless of whether or not a [non-profit racing associ-
48 ation] franchised corporation is conducting a race meeting in Saratoga
49 county at Saratoga thoroughbred racetrack after June thirtieth, two
50 thousand [eight] nine. On any day on which a [non-profit racing associ-
51 ation] franchised corporation has not scheduled a racing program but a
52 thoroughbred racing corporation located within the state is conducting
53 racing, every off-track betting corporation branch office and every
54 simulcasting facility licensed in accordance with section one thousand
55 seven (that have entered into a written agreement with such facility's
56 representative horsemen's organization, as approved by the board), one
S. 6950 79 A. 9998
1 thousand eight, or one thousand nine of this article shall be authorized
2 to accept wagers and display the live simulcast signal from thoroughbred
3 tracks located in another state or foreign country subject to the
4 following provisions:
5 a. Each off-track betting branch office accepting wagers on an out-of-
6 state track shall accept wagers on races run at the in-state track and
7 every simulcasting facility licensed in accordance with sections one
8 thousand seven, one thousand eight and one thousand nine of this article
9 which is accepting wagers and displaying the simulcast signal from an
10 out-of-state track shall similarly accept wagers and display the signal
11 from the in-state track.
12 b. Simulcasting facilities shall be authorized to accept wagers and
13 display the live simulcast signal from out-of-state thoroughbred tracks.
14 c. If a regional harness track is conducting racing on a day on which
15 out-of-state simulcasting is authorized, the off-track betting corpo-
16 ration shall be required to accept wagers and display the live simulcast
17 signal of such races provided the terms and conditions for accepting
18 such signal are no less favorable than those in effect on April first,
19 nineteen hundred ninety-three.
20 d. Each off-track betting corporation shall determine the average
21 daily handle on the in-state thoroughbred corporation, the average daily
22 handle from out-of-state tracks and the average total daily payment made
23 to the in-state thoroughbred track on each day from April first, nine-
24 teen hundred ninety-three through December thirty-first, nineteen
25 hundred ninety-three on which the off-track betting corporation accepted
26 wagers on races conducted at such track and races conducted on an out-
27 of-state track on a day on which no scheduled races were conducted by a
28 [non-profit racing association] franchised corporation. This calculation
29 shall be provided to the racing and wagering board and the chief execu-
30 tive officers of the in-state thoroughbred track and the horsemen's
31 organization. If there is a dispute as to the amount of such calcu-
32 lations, written documentation from the off-track betting corporation
33 and the track, shall be supplied to the racing and wagering board which
34 shall make a determination of the correct amounts which determination
35 shall be final and binding on all parties.
36 e. An amount equal to the calculated number shall be determined to be
37 the amount payable to the in-state thoroughbred racing corporation as
38 though such number were calculated on actual handle, using the payment
39 schedules, including distribution to purses, of article five-A and arti-
40 cle ten of this chapter provided such track conducts a program of racing
41 equivalent in racing dates and wagering opportunities to the nineteen
42 hundred ninety-three program.
43 f. The amount shall be distributed in accordance with the provisions
44 of this section. The board shall determine the amount of and dates of
45 such payments, which dates shall, as far as practicable, reflect the
46 payments made to such track during the comparable period of nineteen
47 hundred ninety-three.
48 g. (1) At the conclusion of the thoroughbred track corporation's nine-
49 teen hundred ninety-four racing season or as shortly thereafter as
50 possible but not later than December twentieth, nineteen hundred nine-
51 ty-four, the off-track betting corporations and the racing and wagering
52 board shall determine the average daily handle for the in-state
53 thoroughbred racing corporation and the average daily handle for races
54 conducted at out-of-state or out-of-country tracks. If average daily
55 handle for any off-track betting corporation exceeds by ten percent the
56 average daily handle as calculated in paragraph d of this subdivision,
S. 6950 80 A. 9998
1 such off-track betting corporation shall pay to the in-state thorough-
2 bred racing corporation an amount calculated by multiplying the average
3 daily handle in excess of one hundred ten percent of the average daily
4 handle of nineteen hundred ninety-three by the effective commission rate
5 paid by such corporation in nineteen hundred ninety-three. Such calcu-
6 lation shall be computed separately for handle on in-state tracks and
7 handle on out-of-state tracks.
8 (2) For purposes of this section, the effective commission rate shall
9 be determined by dividing the total commission paid by the total handle
10 rounded to the nearest hundredth.
11 (3) For purposes of this chapter, total and average daily handle shall
12 have the same meaning as total and average daily wagers or bets.
13 h. (1) Licensed harness tracks shall receive in lieu of any other
14 payments on wagers placed at off-track betting facilities outside the
15 special betting district on races conducted by an in-state thoroughbred
16 racing corporation, two and eight-tenths percent on regular and multiple
17 bets during a regional meeting and one and nine-tenths percent of such
18 bets if there is no regional meeting and four and eight-tenths percent
19 on exotic bets on days on which there is a regional meeting and three
20 and four-tenths percent of such bets if there is no regional meeting.
21 (2) (i) In addition, licensed harness tracks shall receive one and
22 one-half per centum on total handle on races conducted at an out-of-
23 state or out-of-country thoroughbred track provided such harness track
24 is neither accepting wagers nor displaying the signal from an out-of-
25 state track.
26 (ii) In those regions in which there is more than one licensed harness
27 track, if no track is accepting wagers or displaying the live simulcast
28 signal from the out-of-state track, the total sum shall be divided among
29 the tracks in proportion to the ratio the wagers placed on races
30 conducted by each track bears to the corporation's total in-region
31 harness handle. If one or more tracks are accepting wagers or displaying
32 the live simulcast signal, the total amount shall be divided among those
33 tracks not accepting wagers or displaying the simulcast signal for an
34 out-of-state track.
35 (3) The terms used in this section shall have the same applicability
36 and meaning as interpreted and applied in sections five hundred twenty-
37 three and five hundred twenty-seven of this chapter.
38 i. Any facility authorized to accept wagers on out-of-state tracks
39 shall distribute all sums deposited in any pari-mutuel pool to the hold-
40 ers of winning tickets therein, provided such tickets are presented for
41 payment prior to April first of the year following the year of their
42 purchase less eighteen per centum of the total deposits in pools result-
43 ing from regular bets, less twenty-one per centum of the total deposits
44 in pools resulting from multiple bets, less twenty-six per centum of the
45 total deposits in pools resulting from exotic bets, less thirty-six per
46 centum of the total deposits in pools resulting from super exotic bets
47 plus the breaks as defined in section two hundred [twenty-eight] thir-
48 ty-six of this chapter except that the retention rates and breaks shall
49 be as prescribed by another state or country if such wagers are combined
50 with those in the other state or country pursuant to section nine
51 hundred [seven] five of this chapter.
52 (i) [of] Of the sum so retained, the applicable tax rate shall be one
53 and one-half percent of all such wagers plus fifty percent of the
54 breaks; provided, however, fifty percent of the breaks accruing from
55 off-track betting corporations licensed in accordance with section one
56 thousand eight of this article and from simulcast theaters licensed in
S. 6950 81 A. 9998
1 accordance with section one thousand nine of this article, shall be paid
2 to the agriculture and New York state horse breeding and development
3 fund and to the thoroughbred breeding and development fund, the total of
4 such payments to be apportioned fifty per centum to each such fund.
5 (ii) [of] Of the sums so retained, one-half of one per centum of all
6 wagers shall be paid to the New York state thoroughbred breeding and
7 development fund, except that of the sums so retained on such wagers at
8 licensed harness tracks, one-half of one per centum shall be paid to the
9 agricultural and New York State horse breeding and development fund.
10 (iii) [of] Of the sum so retained, two percent of all wagers shall be
11 paid to a [non-profit racing association] franchised corporation to be
12 used exclusively for the purpose of increasing purses, including stakes,
13 premiums and prizes, provided further that such amount shall not exceed
14 the amount paid to such non-profit racing association in nineteen
15 hundred ninety-three from wagers placed on out-of-state tracks on a day
16 when no racing was being conducted by the non-profit racing association
17 and a racing program was being conducted by a thoroughbred racing corpo-
18 ration located in the state. The excess, if any, shall be paid to a
19 thoroughbred racing corporation located in the state until August thir-
20 ty-first, nineteen hundred ninety-five and on and after July nineteen,
21 nineteen hundred ninety-six to be used exclusively for the purpose of
22 increasing purses, including stakes, premiums and prizes. [An additional
23 two percent of the sum so retained shall be paid to non-profit racing
24 association until August thirty-first, nineteen hundred ninety-five,
25 provided however fifty percent of such amounts shall be used exclusively
26 for purses at a non-profit racing association.]
27 (iv) [any] Any thoroughbred racing [association or] corporation [or
28 non-profit racing association] or harness racing association or corpo-
29 ration or off-track betting corporation authorized pursuant to this
30 section shall pay to the racing and wagering board as a regulatory fee,
31 which fee is hereby levied, fifty hundredths of one percent of all
32 wagering pools.
33 j. (1) All wagers authorized by this section shall be combined so as
34 to produce common pari-mutuel betting pools for the calculation of odds
35 and the determination of payouts from such pools, which payouts shall be
36 made pursuant to the rules of the board. Every location authorized to
37 accept wagers or display simulcasting pursuant to this section shall be
38 subject to all appropriate provisions of this chapter.
39 (2) Every regional off-track betting corporation may simulcast all
40 out-of-state races authorized by this section at any licensed simulcast
41 facility except for those facilities located in a thoroughbred special
42 betting district.
43 Facilities located in such special betting district may display the
44 simulcast signal with the permission of the thoroughbred track located
45 in such district or if such track displays the signal from an out-of-
46 state or out-of-country track.
47 k. The provisions of section five hundred thirty-two of this chapter
48 shall apply as follows:
49 (1) for all wagers placed at facilities licensed to receive such out-
50 of-state or out-of-country simulcasts in accordance with section one
51 thousand eight of this article, distribution shall first be made in
52 accordance with subdivision three-a of section five hundred thirty-two
53 of this chapter, and then fifty percent of the remaining amount in
54 accordance with paragraph a of subdivision three of section five hundred
55 thirty-two of this chapter and the other fifty percent shall be retained
56 by such operator for its general purpose.
S. 6950 82 A. 9998
1 (2) upon application of any facility licensed in accordance with
2 sections one thousand seven and one thousand nine of this article, the
3 board shall authorize the imposition of a sum equal to the amount
4 authorized by section five hundred thirty-two of this chapter which
5 shall apply to wagers placed at such facility. Such sums received by
6 facilities licensed in accordance with section one thousand nine of this
7 article shall be retained for the general purpose of the corporation.
8 Such sums received by such facilities licensed in accordance with
9 section one thousand seven of this article shall be distributed as
10 follows:
11 (i) fifty percent shall be used exclusively for purses awarded in
12 races conducted by such licensed facility; and
13 (ii) fifty percent shall be retained by such licensed facility for its
14 general purposes.
15 2. Nothing in this section shall be construed to prohibit the accept-
16 ance of wagers on races conducted at out-of-state tracks without the
17 display of the live simulcast signal if authorized under any other
18 provision of this chapter.
19 § 95. Subdivision 1 and the opening paragraph and paragraph e of
20 subdivision 3 of section 1016 of the racing, pari-mutuel wagering and
21 breeding law, subdivision 1 as amended by section 4 of part A of chapter
22 60 of the laws of 2007, the opening paragraph of subdivision 3 as
23 amended by section 22 of part F3 of chapter 62 of the laws of 2003,
24 paragraph e of subdivision 3 as amended by section 10 of part B of chap-
25 ter 59 of the laws of 2005, are amended and such section is renumbered
26 section 1015 to read as follows:
27 1. The provisions of this section shall govern the simulcasting of
28 races conducted at harness tracks located in another state or country
29 during the period July first, nineteen hundred ninety-four through June
30 thirtieth, two thousand [eight] nine. This section shall supersede all
31 inconsistent provisions of this chapter.
32 Any facility authorized to accept wagers on out-of-state tracks shall
33 distribute all sums deposited in any pari-mutuel pool to the holders of
34 any tickets therein provided such tickets are presented for payment
35 prior to April first of the year following the year of their purchase
36 less nineteen per centum of total deposits in pools resulting from regu-
37 lar bets, less twenty-one per centum of total deposits of pools result-
38 ing from multiple bets, less twenty-seven per centum of total deposits
39 of pools resulting from exotic bets, less thirty-six per centum of total
40 deposits of pools resulting from super exotic bets plus the breaks as
41 defined in section three hundred eighteen of this chapter except that
42 the retention rates and breaks shall be as prescribed by another state
43 or country if such wagers are combined with those in the other state or
44 country pursuant to section nine hundred [seven] five of this chapter.
45 e. Any thoroughbred racing [association or] corporation [or non-profit
46 racing association] or harness racing association or corporation or
47 off-track betting corporation authorized pursuant to this section shall
48 pay to the racing and wagering board as a regulatory fee, which fee is
49 hereby levied, fifty hundredths of one percent of all wagering pools.
50 § 96. Section 1017 of the racing, pari-mutuel wagering and breeding
51 law, as added by chapter 445 of the laws of 1997, subdivision 1 as
52 amended by section 23 of part F3 of chapter 62 of the laws of 2003, the
53 opening paragraph of subdivision 1 as amended by section 5 of part A of
54 chapter 60 of the laws of 2007, clause (B) of subparagraph 2 of para-
55 graph b of subdivision 1 as amended by section 11 of part B of chapter
56 59 of the laws of 2005, is amended to read as follows:
S. 6950 83 A. 9998
1 § [1017] 1016. Simulcasting of out-of-state thoroughbred races 1. The
2 provisions of this section shall govern the simulcasting of races
3 conducted at thoroughbred tracks located in another state or country on
4 any day during which a [non-profit racing association] franchised corpo-
5 ration is not conducting a race meeting in Saratoga county at Saratoga
6 thoroughbred racetrack until June thirtieth, two thousand [eight] nine.
7 Every off-track betting corporation branch office and every simulcasting
8 facility licensed in accordance with section one thousand seven that
9 have entered into a written agreement with such facility's represen-
10 tative horsemen's organization as approved by the board, one thousand
11 eight or one thousand nine of this article shall be authorized to accept
12 wagers and display the live full-card simulcast signal of thoroughbred
13 tracks (which may include quarter horse or mixed meetings provided that
14 all such wagering on such races shall be construed to be thoroughbred
15 races) located in another state or foreign country, subject to the
16 following provisions; provided, however, no such written agreement shall
17 be required of a [non-profit racing association] franchised corporation
18 licensed in accordance with section one thousand seven of this article:
19 a. Each off-track betting branch office accepting wagers on an out-of-
20 state track shall accept wagers on races run at all in-state thorough-
21 bred tracks which are conducting racing programs and every simulcasting
22 facility licensed in accordance with sections one thousand eight and one
23 thousand nine of this article which is accepting wagers and displaying
24 the simulcast signal from an out-of-state track shall similarly accept
25 wagers and display the signal from all in-state thoroughbred tracks
26 conducting racing programs.
27 b. Any facility authorized to accept wagers on out-of-state tracks
28 shall distribute all sums deposited in any pari-mutuel pool to the hold-
29 ers of winning tickets therein, provided such tickets are presented for
30 payment prior to April first of the year following the year of their
31 purchase less eighteen per centum of the total deposits in pools result-
32 ing from regular bets, less twenty-one per centum of the total deposits
33 in pools resulting from multiple bets, less twenty-six per centum of the
34 total deposits in pools resulting from exotic bets, and less twenty-sev-
35 en per centum of the total deposits in pools resulting from super exotic
36 bets, plus the breaks as defined in section two hundred [twenty-eight]
37 thirty-six of this chapter except that the retention rates and breaks
38 shall be as prescribed by another state or country if such wagers are
39 combined with those in the other state or country pursuant to section
40 nine hundred [seven] five of this chapter.
41 (1) Of the sums so retained, the applicable tax rates shall be as
42 governed by clauses (A) and (B) of subparagraphs three, four, five and
43 six of this paragraph [b of this subdivision] plus fifty percent of the
44 breaks; provided, however, fifty percent of the breaks accruing from
45 off-track betting corporations licensed in accordance with section one
46 thousand eight of this article and from simulcast theaters licensed in
47 accordance with section one thousand nine of this article, shall be paid
48 to the agriculture and New York State horse breeding and development
49 fund and to the thoroughbred breeding and development fund, the total of
50 such payments to be apportioned fifty per centum to each such fund.
51 (2) (A) Of the sums so retained, one-half of one per centum of all
52 wagers shall be paid to the New York State thoroughbred breeding and
53 development fund, except that of the sums so retained on such wagers at
54 licensed harness tracks, one-half of one per centum shall be paid to the
55 agricultural and New York State horse breeding and development fund.
S. 6950 84 A. 9998
1 (B) Any harness racing or association or corporation[, non-profit
2 racing association] or thoroughbred racing [association or] corporation
3 authorized pursuant to this section shall pay to the racing and wagering
4 board as a regulatory fee, which fee is hereby levied, fifty hundredths
5 of one percent of the total daily pari-mutuel pools.
6 (3) Distribution of wagers placed on the initial out-of-state
7 thoroughbred track at facilities licensed in accordance with sections
8 one thousand eight and one thousand nine of this article.
9 (A) Of the sums so retained on days when a [non-profit racing associ-
10 ation] franchised corporation is not conducting a race meeting within
11 the state and a thoroughbred racing [association or] corporation is
12 conducting a race meeting
13 Super-
14 Regular Multiple Exotic exotic
15 bets bets bets bets
16 State Tax 1.50 1.50 1.50 1.50
17 Non-franchised
18 Thoroughbred Racing [association
19 or] corporation 0.50 0.50 0.50 0.50
20 Non-franchised
21 Thoroughbred Racing [association
22 or] corporation payments to purses 1.50 2.00 1.50 2.00
23 [Nonprofit racing association]
24 Franchised corporation 0.50 0.50 0.50 0.50
25 [Nonprofit racing association]
26 Franchised corporation
27 payments to purses 2.00 2.00 2.50 4.00
28 (B) Of the sums so retained on days when a [non-profit racing associ-
29 ation] franchised corporation is conducting a race meeting within the
30 state
31 Super-
32 Regular Multiple Exotic exotic
33 bets bets bets bets
34 State Tax 1.00 1.00 1.00 1.00
35 Non-franchised
36 Thoroughbred Racing [association
37 or] corporation 0.50 0.50 0.50 0.00
38 Non-franchised
39 Thoroughbred Racing [association
40 or] corporation payments to purses 0.50 0.50 0.50 0.50
41 [Nonprofit racing association]
42 Franchised corporation 2.00 1.50 1.50 2.00
43 [Nonprofit racing association]
44 Franchised corporation
45 payments to purses 2.00 3.00 3.00 5.00
S. 6950 85 A. 9998
1 (C) Payments to purses as required under clauses (A) and (B) of this
2 subparagraph shall be paid to the thoroughbred racing [association or]
3 corporation [or to the non-profit racing association] to be used exclu-
4 sively for the purpose of increasing purses, including stakes, premiums
5 and prizes.
6 (4) Distribution of wagers placed on other than the initial out-of-
7 state thoroughbred track at facilities licensed in accordance with
8 sections one thousand eight and one thousand nine of this article.
9 (A) Of the sums so retained on days when a [non-profit racing associ-
10 ation] franchised corporation is not conducting a race meeting within
11 the state and a thoroughbred racing [association or] corporation is
12 conducting a race meeting
13 Super-
14 Regular Multiple Exotic exotic
15 bets bets bets bets
16 State Tax 1.00 1.00 1.00 1.00
17 Non-franchised
18 Thoroughbred Racing [association 2.00 2.00 2.00 2.50
19 or] corporation payments to purses
20 [Nonprofit racing association]
21 Franchised corporation 1.00 1.00 1.00 1.00
22 [Nonprofit racing association]
23 Franchised corporation
24 payments to purses 2.00 2.00 2.50 4.00
25 (B) Of the sums so retained on days when a [non-profit racing associ-
26 ation] franchised corporation is conducting a race meeting within the
27 state
28 Super-
29 Regular Multiple Exotic exotic
30 bets bets bets bets
31 State Tax 0.50 0.50 0.50 0.50
32 Non-franchised
33 Thoroughbred racing [association 0.50 0.25 0.50 0.50
34 or] corporation
35 Non-franchised
36 Thoroughbred racing [association 0.50 0.25 0.50 0.50
37 or] corporation payments to purses
38 [Nonprofit racing association]
39 Franchised corporation 2.25 2.25 2.00 2.50
40 [Nonprofit racing association]
41 Franchised corporation
42 payments to purses 2.25 3.25 3.00 4.50
43 (C) Payments to purses as required under clauses (A) and (B) of this
44 subparagraph shall be paid to the thoroughbred racing [association or]
45 corporation or to the [non-profit racing association] franchised corpo-
S. 6950 86 A. 9998
1 ration to be used exclusively for the purpose of increasing purses,
2 including stakes, premiums and prizes.
3 (D) On days when no thoroughbred track is conducting a race meeting,
4 facilities licensed in accordance with sections one thousand eight and
5 one thousand nine of this article are authorized to accept the simulcast
6 signal from more than two out-of-state thoroughbred tracks. The distrib-
7 ution of wagers on such out-of-state thoroughbred track or tracks shall
8 be in accordance with clause (B) of this subparagraph.
9 (5) Distribution of wagers placed on the initial out-of-state
10 thoroughbred track at facilities licensed in accordance with section one
11 thousand seven of this article.
12 (A) Of the sums so retained on days when a [non-profit racing associ-
13 ation] franchised corporation is not conducting a race meeting within
14 the state and a thoroughbred racing [association or] corporation is
15 conducting a race meeting
16 Super-
17 Regular Multiple Exotic exotic
18 bets bets bets bets
19 State Tax 1.50 1.50 1.50 1.50
20 Non-franchised
21 Thoroughbred racing [association 0.25 0.25 0.25 0.50
22 or] corporation
23 Non-franchised
24 Thoroughbred racing [association 0.75 1.00 0.75 1.00
25 or] corporation payments to purses
26 [Nonprofit racing association] 0.25 0.25 0.25 0.25
27 Franchised corporation
28 [Nonprofit racing association]
29 Franchised corporation
30 payments to purses 1.00 1.00 2.25 2.00
31 (B) Of the sums so retained on days when a [non-profit racing associ-
32 ation] franchised corporation is conducting a race meeting within the
33 state
34 Super-
35 Regular Multiple Exotic exotic
36 bets bets bets bets
37 State Tax 1.00 1.00 1.00 1.00
38 Non-franchised Thoroughbred racing
39 [association or] corporation 0.25 0.25 0.25 0.25
40 Non-franchised Thoroughbred racing
41 [association or] corporation
42 payments to purses 0.25 0.25 0.25 0.25
43 [Nonprofit racing association]
44 Franchised corporation 1.00 0.75 0.75 1.00
45 [Nonprofit racing association]
S. 6950 87 A. 9998
1 Franchised corporation payments
2 to purses 1.00 1.50 1.50 2.50
3 (C) Payments to purses as required under clauses (A) and (B) of this
4 subparagraph shall be paid to [the] a thoroughbred racing [association
5 or] corporation [or to the non-profit racing association] to be used
6 exclusively for the purpose of increasing purses, including stakes,
7 premiums and prizes.
8 (D) For wagers placed at a [non-profit racing association or a]
9 thoroughbred racing [association or] corporation the state tax shall be
10 the amounts specified in clauses (A) and (B) of this subparagraph and
11 retention thereafter shall be identical to sums retained for each type
12 of on-track wager.
13 (E) On days when a [non-profit racing association] franchised corpo-
14 ration is not conducting a race meeting and when a licensed harness
15 track is neither accepting wagers nor displaying the signal from an
16 in-state thoroughbred corporation or association or an out-of-state
17 thoroughbred track:
18 (i) Such licensed regional harness track shall receive in lieu of any
19 other payments on wagers placed at off-track betting facilities outside
20 the special betting district on races conducted by an in-state thorough-
21 bred racing corporation, two and eight-tenths percent on regular and
22 multiple bets during a regional meeting and one and nine-tenths percent
23 of such bets if there is no regional meeting and four and eight-tenths
24 percent on exotic bets on days on which there is a regional meeting and
25 three and four-tenths percent of such bets if there is no regional meet-
26 ing.
27 (ii) Such licensed regional harness track shall receive one and one-
28 half per centum on total regional handle on races conducted at out-of-
29 state or out-of-country thoroughbred tracks.
30 (iii) In those regions in which there is more than one licensed
31 regional harness track, if no track is accepting wagers or displaying
32 the live simulcast signal from the out-of-state track, the total sum
33 shall be divided among the tracks in proportion to the ratio the wagers
34 placed on races conducted by each track bears to the corporation's total
35 in-region harness handle. If one or more tracks are accepting wagers or
36 displaying the live simulcast signal, the total amount shall be divided
37 among those tracks not accepting wagers or displaying the simulcast
38 signal for an out-of-state track or in-state thoroughbred corporation or
39 association.
40 (F) Of the sums retained by a licensed harness facility, fifty percent
41 shall be used exclusively for purses awarded in races conducted by such
42 licensed facility and the remaining fifty percent shall be retained by
43 such licensed facility for its general purposes, provided, however, that
44 in a harness special betting district the portion of the sums retained
45 by a licensed harness facility to be used for purses or the methodology
46 for calculating the amount to be used for purses may be specified in a
47 written contract between a harness racing association or corporation and
48 its representative horsemen's association.
49 (6) Distribution of wagers placed on other than the initial out-of-
50 state thoroughbred track at facilities licensed in accordance with
51 section one thousand seven of this article.
52 (A) Of the sums so retained on days when a [non-profit racing associ-
53 ation] franchised corporation is not conducting a race meeting within
54 the state and a thoroughbred racing [association or] corporation is
55 conducting a race meeting
S. 6950 88 A. 9998
1 Super-
2 Regular Multiple Exotic exotic
3 bets bets bets bets
4 State Tax 1.00 1.00 1.00 1.00
5 Non-franchised Thoroughbred Racing
6 [association or] corporation payments
7 to purses 1.00 1.00 1.00 1.25
8 [Nonprofit racing association]
9 Franchised corporation 0.50 0.50 0.50 0.50
10 [Nonprofit racing association] 1.00 1.00 1.25 2.00
11 Franchised corporation
12 payments to purses
13 (B) Of the sums so retained on days when a [non-profit racing associ-
14 ation] franchised corporation is conducting a race meeting within the
15 state
16 Super-
17 Regular Multiple Exotic exotic
18 bets bets bets bets
19 State Tax 0.50 0.50 0.50 0.50
20 Non-franchised
21 Thoroughbred Racing
22 [association or] corporation 0.25 0.25 0.25 0.25
23 Non-franchised
24 Thoroughbred Racing
25 [association or] corporation
26 payments to purses 0.25 0.25 0.25 0.25
27 [Nonprofit racing association]
28 Franchised corporation 1.25 1.25 1.00 1.25
29 [Nonprofit racing association]
30 Franchised corporation
31 payments to purses 1.25 2.00 1.50 2.25
32 (C) Payments to purses as required under clauses (A) and (B) of this
33 subparagraph shall be paid to [the] a thoroughbred racing [association
34 or] corporation or to the [non-profit racing association] franchised
35 corporation to be used exclusively for the purpose of increasing purses,
36 including stakes, premiums and prizes.
37 (D) For wagers placed at a [non-profit racing association] franchised
38 corporation or a thoroughbred racing [association or] corporation the
39 state tax shall be the amounts specified in clauses (A) and (B) of this
40 subparagraph and retention thereafter shall be identical to sums
41 retained for each type of on-track wager.
42 (E) On days when no thoroughbred track is conducting a race meeting,
43 facilities licensed in accordance with section one thousand seven of
44 this article are authorized to accept the simulcast signal from out-of-
45 state thoroughbred tracks. The distribution of wagers on such out-of-
S. 6950 89 A. 9998
1 state thoroughbred track or tracks shall be in accordance with clause
2 (B) of this subparagraph.
3 (F) On days when a [non-profit racing association] franchised corpo-
4 ration is not conducting a race meeting and when a licensed harness
5 track is neither accepting wagers nor displaying the signal from an
6 in-state thoroughbred corporation or association or an out-of-state
7 thoroughbred track:
8 (i) Such licensed regional harness track shall receive in lieu of any
9 other payments on wagers placed at off-track betting facilities outside
10 the special betting district on races conducted by an in-state thorough-
11 bred racing corporation, two and eight-tenths percent on regular and
12 multiple bets during a regional meeting and one and nine-tenths percent
13 of such bets if there is no regional meeting and four and eight-tenths
14 percent on exotic bets on days on which there is a regional meeting and
15 three and four-tenths percent of such bets if there is no regional meet-
16 ing.
17 (ii) Such licensed regional harness track shall receive one and one-
18 half per centum on total regional handle on races conducted at out-of-
19 state or out-of-country thoroughbred tracks.
20 (iii) In those regions in which there is more than one licensed
21 regional harness track, if no track is accepting wagers or displaying
22 the live simulcast signal from the out-of-state track, the total sum
23 shall be divided among the tracks in proportion to the ratio the wagers
24 placed on races conducted by each track bears to the corporation's total
25 in-region harness handle. If one or more tracks are accepting wagers or
26 displaying the live simulcast signal, the total amount shall be divided
27 among those tracks not accepting wagers or displaying the simulcast
28 signal for an out-of-state track or in-state thoroughbred corporation
29 [or association].
30 (G) Of the sums retained by a licensed harness facility, fifty percent
31 shall be used exclusively for purses awarded in races conducted by such
32 licensed facility and the remaining fifty percent shall be retained by
33 such licensed facility for its general purposes, provided, however, that
34 in a harness special betting district the portion of the sums retained
35 by a licensed harness facility to be used for purses or the methodology
36 for calculating the amount to be used for purses may be specified in a
37 written contract between a harness racing association or corporation and
38 its representative horsemen's association.
39 c. (1) All wagers authorized by this section shall be combined so as
40 to produce common pari-mutuel betting pools, which shall be combined
41 with the sending track, for the calculation of odds and the determi-
42 nation of payouts from such pools, which payouts shall be made pursuant
43 to the rules of the board. Every location authorized to accept wagers or
44 display simulcasting pursuant to this section shall be subject to all
45 appropriate provisions of this chapter.
46 (2) Every regional off-track betting corporation may simulcast all
47 out-of-state races authorized by this section at any licensed simulcast
48 facility except for those facilities located in a thoroughbred special
49 betting district. Facilities located in such special betting district
50 may display the simulcast signal with the permission of the thoroughbred
51 track located in such district or if such track displays the signal from
52 an out-of-state or out-of-country track.
53 d. The provisions of section five hundred thirty-two of this chapter
54 shall apply as follows:
55 (1) for all wagers placed at facilities licensed to receive such out-
56 of-state or out-of-country simulcasts in accordance with section one
S. 6950 90 A. 9998
1 thousand eight of this article, distribution shall first be made in
2 accordance with subdivision three-a of section five hundred thirty-two
3 of this chapter, and then fifty percent of the remaining amount in
4 accordance with paragraph a of subdivision three of section five hundred
5 thirty-two of this chapter and the other fifty percent shall be retained
6 by such operator for its general purpose.
7 (2) upon application of any facility licensed in accordance with
8 sections one thousand seven and one thousand nine of this article, the
9 board shall authorize the imposition of a sum equal to the amount
10 authorized by section five hundred thirty-two of this chapter which
11 shall apply to wagers placed at such facility. Such sums received by
12 facilities licensed in accordance with section one thousand nine of this
13 article shall be retained for the general purpose of the corporation.
14 Such sums received by such facilities licensed in accordance with
15 section one thousand seven of this article shall be distributed as
16 follows:
17 (A) fifty percent shall be used exclusively for purses awarded in
18 races conducted by such licensed facility; and
19 (B) fifty percent shall be retained by such licensed facility for its
20 general purposes.
21 e. Nothing in this section shall be construed to prohibit the accept-
22 ance of wagers on races conducted at out-of-state tracks without the
23 display of the live simulcast signal if authorized under any other
24 provision of this chapter.
25 2. The provisions of this section shall not be effective, nor shall
26 any out-of-state simulcast signal or wagers thereon be permitted to be
27 accepted pursuant to this section by any off-track betting corporation
28 in this state during the dates set forth in subdivision one of this
29 section until the following conditions are met and are in full force and
30 effect:
31 a. New York city off-track betting corporation has a written contrac-
32 tual agreement with an in-state thoroughbred racing [association or]
33 corporation, guaranteeing said in-state thoroughbred racing [association
34 or] corporation the same display of its signal as any out-of-state track
35 displayed under this section during the dates and time periods deline-
36 ated herein, including the display of said signal at least five days per
37 week under section one thousand three of this article, commonly known as
38 the in-home simulcasting experiment; provided said corporation's signal
39 is made available five days per week;
40 b. Said written contractual agreement shall not provide for remunera-
41 tion and shall be separate and apart from any existing statutory
42 provision, current agreement, or future agreement, regarding remunera-
43 tion of the in-state thoroughbred racing [association or] corporation by
44 [new] New York city off-track betting corporation for its simulcast
45 signal, and shall contain a clause providing for enforcement of the
46 contractual agreement in a court of general jurisdiction with the power
47 to grant equitable and/or injunctive relief;
48 c. Said written agreement shall contain a clause providing for injunc-
49 tive relief and/or liquidated damages if said contract is breached by
50 either party;
51 d. Upon a decision, ruling or order by a court of general jurisdiction
52 that said contract has been breached, no out-of-state simulcasting shall
53 be permitted under the provisions of this section until renewal of said
54 contract or a new contract containing the requirements herein is
55 executed; and
S. 6950 91 A. 9998
1 e. Provided further, that if New York city off-track betting corpo-
2 ration shall cease to display the signal of an out-of-state track
3 through in-home simulcasting pursuant to section one thousand three of
4 this article, nothing herein shall prohibit any off-track corporation
5 from displaying the out-of-state signal in its parlors and teletheaters
6 so long as the signal of an in-state thoroughbred racing [association
7 or] corporation is displayed on an equal number of screens.
8 § 97. Section 1017-a of the racing, pari-mutuel wagering and breeding
9 law, as amended by section 24 of part F3 of chapter 62 of the laws of
10 2003, is amended to read as follows:
11 § [1017-a] 1017. Out-of-state or out-of-country races. 1. Licensed
12 simulcast facilities may accept wagers and display the signal of out-of-
13 state or out-of-country thoroughbred tracks after 7:30 P.M. in accord-
14 ance with the provisions of this section. Such simulcasting may include
15 mixed meetings if such meetings are integral to such racing programs and
16 all such wagering on such races shall be construed to be thoroughbred
17 races. For facilities located within the special betting district, such
18 approval shall also be required from a thoroughbred racing [association
19 or] corporation during the period a racing program is being conducted at
20 such track. Such approval shall not be required on any day such
21 thoroughbred racing [association or] corporation is also accepting an
22 out-of-state or out-of-country signal and wager, as authorized by this
23 section. The provisions of section one thousand [seventeen] sixteen of
24 this article shall be applicable to the conduct of such simulcasting and
25 the provisions of clauses (A) and (B) of subparagraph four of paragraph
26 b of subdivision one of section one thousand [seventeen] sixteen of this
27 article shall apply to those facilities licensed in accordance with
28 sections one thousand eight and one thousand nine of this article and
29 the provisions of clauses (A) and (B) of subparagraph [(6)] six of para-
30 graph b of subdivision one of section one thousand [seventeen] sixteen
31 of this article shall apply to those facilities licensed in accordance
32 with section one thousand seven of this article, when such provisions
33 are in full force and effect pursuant to such section. Provided, howev-
34 er, the provisions of section one thousand [fifteen] fourteen of this
35 article shall be applicable to the conduct of such simulcasting, when
36 such provisions are in full force and effect pursuant to such section.
37 2. a. Maintenance of effort. Any [off track] off-track betting corpo-
38 ration which engages in accepting wagers on the simulcasts of thorough-
39 bred races from out-of-state or out-of-country as permitted under subdi-
40 vision one of this section shall submit to the board, for its approval,
41 a schedule of payments to be made in any year or portion thereof, that
42 such [off track] off-track corporation engages in nighttime thoroughbred
43 simulcasting. In order to be approved by the board, the payment schedule
44 shall be identical to the actual payments and distributions of such
45 payments to tracks and purses made by such [off track] off-track corpo-
46 ration pursuant to the provisions of section one thousand [sixteen]
47 fifteen of this article during the year two thousand two, as derived
48 from out-of-state harness races displayed after 6:00 P.M. If approved by
49 the board, such scheduled payments shall be made from revenues derived
50 from any simulcasting conducted pursuant to this section and section one
51 thousand [sixteen] fifteen of this article.
52 b. Additional payments. During each calendar year, to the extent, and
53 at such time in the event, that aggregate statewide wagering handle
54 after 7:30 P.M. on out-of-state and out-of-country thoroughbred races
55 exceeds one hundred million dollars, each [off track] off-track betting
56 corporation conducting such simulcasting shall pay to its regional
S. 6950 92 A. 9998
1 harness track or tracks, an amount equal to two percent of its propor-
2 tionate share of such excess handle. In any region where there are two
3 or more regional harness tracks, such two percent shall be divided
4 between or among the tracks in a proportion equal to the proportion of
5 handle on live harness races conducted at such tracks during the preced-
6 ing calendar year. Fifty percent of the sum received by each track
7 pursuant to this paragraph shall be used exclusively for increasing
8 purses, stakes and prizes at that regional harness track.
9 § 98. Section 1017-b of the racing, pari-mutuel wagering and breeding
10 law, as added by chapter 94 of the laws of 2001, the opening paragraph
11 as amended by chapter 229 of the laws of 2004, subdivision 2 as amended
12 by section 25 of part F3 of chapter 62 of the laws of 2003, paragraph b
13 of subdivision 2 as amended by section 12 of part B of chapter 59 of the
14 laws of 2005, is amended to read as follows:
15 § [1017-b] 1018. Distribution. Notwithstanding any other provision of
16 this chapter, for the period July twenty-fifth, two thousand one through
17 September [sixth] ninth, two thousand [seven] eight, when a [nonprofit
18 racing association] franchised corporation is conducting a race meeting
19 within the state at Saratoga Race Course, every off-track betting corpo-
20 ration branch office and every simulcasting facility licensed in accord-
21 ance with section one thousand seven (that has entered into a written
22 agreement with such facility's representative horsemen's organization as
23 approved by the board), one thousand eight or one thousand nine of this
24 article shall be authorized to accept wagers and display the live simul-
25 cast signal from thoroughbred tracks located in another state, provided
26 that such facility shall accept wagers on races run at all in-state
27 thoroughbred tracks which are conducting racing programs subject to the
28 following provisions; provided, however, no such written agreement shall
29 be required of a [nonprofit racing association] franchised corporation
30 licensed in accordance with section one thousand seven of this article.
31 Every facility authorized to accept wagers on out-of-state tracks
32 shall distribute all sums deposited in any pari-mutuel pool to the hold-
33 er of winning tickets therein, provided such tickets are presented for
34 payment prior to April first of the year following the year of their
35 purchase, the retention rates and breaks shall be as prescribed by
36 another state or country pursuant to section nine hundred [seven] five
37 of this chapter.
38 1. Of the sums so retained, the applicable tax rates shall be as set
39 forth in this paragraph plus fifty percent of the breaks; provided,
40 however, fifty percent of the breaks accruing from an off-track betting
41 corporation licensed in accordance with section one thousand eight of
42 this article and from simulcast theatres licensed in accordance with
43 section one thousand nine of this article, shall be paid to the agricul-
44 ture and New York state horse breeding and development fund.
45 2. a. Of the sums so retained, one-half of one per centum of all
46 wagers shall be paid to the New York state thoroughbred breeding and
47 development fund, except that of the sums so retained on such wagers at
48 licensed harness tracks, one-half of one per centum shall be paid to the
49 agriculture and New York state horse breeding and development fund.
50 b. Any thoroughbred racing [association or] corporation [or non-profit
51 racing association] or harness racing association or corporation or
52 off-track betting corporation shall pay to the racing and wagering board
53 as a regulatory fee, which fee is hereby levied, fifty hundredths of one
54 percent of all wagering pools.
S. 6950 93 A. 9998
1 3. Distribution of wagers placed on out-of-state thoroughbred tracks
2 at facilities licensed in accordance with section one thousand eight or
3 one thousand nine of this article.
4 The following percentages of the sums so retained on days when a
5 [non-profit racing association] franchised corporation is conducting a
6 meeting within the state
7 Regular Multiple Exotic Super exotic
8 bets bets bets bets
9 State tax .25 .25 .25 .25
10 Non-franchised
11 Thoroughbred racing
12 [association or]
13 corporation .50 .50 .50 .50
14 Non-franchised
15 Thoroughbred racing
16 [association or]
17 corporation payments
18 to purses .50 .50 .50 .50
19 [Nonprofit racing
20 association]
21 Franchised corporation 3.25 3.25 3.25 3.25
22 [Nonprofit racing
23 association]
24 Franchised corporation
25 payments to purses 3.25 3.25 3.25 3.25
26 4. Payments to purses as required pursuant to [paragraphs c and d of]
27 this subdivision shall be paid to the thoroughbred racing [association
28 or] corporation[, or to the nonprofit racing association] to be used
29 exclusively for the purpose of increasing purses, including stakes,
30 premiums and prizes.
31 5. For wagers placed on an out-of-state track at a [nonprofit racing
32 association] franchised corporation the state tax shall be one-quarter
33 of one percent of all wagers and three and one-quarter of one percent
34 shall be utilized by a [nonprofit racing association] franchised corpo-
35 ration exclusively for the purpose of increasing purses, including
36 stakes, premiums and prizes identified to sums retained for each type of
37 on-track wager.
38 6. The following percentages of the distribution of wagers placed on
39 out-of-state thoroughbred tracks at facilities licensed in accordance
40 with section one thousand seven of this article. Of the sums so retained
41 on days when a [nonprofit racing association] franchised corporation is
42 conducting a meeting within the state
43 Regular Multiple Exotic Super exotic
44 bets bets bets bets
45 State tax .25 .25 .25 .25
46 Non-franchised
47 Thoroughbred racing
48 [association
49 or] corporation .50 .50 .50 .50
S. 6950 94 A. 9998
1 Non-franchised
2 Thoroughbred racing
3 [association or]
4 corporation payments
5 to purses .50 .50 .50 .50
6 [Nonprofit racing
7 association] 2 2 2 2
8 Franchised corporation
9 [Nonprofit racing
10 association] Franchised
11 corporation payments
12 to purses 2 2 2 2
13 § 99. Section 532 of the real property tax law is amended by adding a
14 new subdivision (j) to read as follows:
15 (j) All lands owned by the state pursuant to subdivision two of
16 section two hundred eight of the racing, pari-mutuel wagering and breed-
17 ing law located within the counties of Nassau, Queens and Saratoga,
18 inclusive of the improvements erected thereon.
19 § 99-a. Section 530 of the real property tax law is amended by adding
20 a new subdivision 3 to read as follows:
21 3. Notwithstanding any other provision of law, paragraph j of section
22 five hundred thirty-two of this title shall be construed to mean taxa-
23 tion for any and all assessment districts, special or otherwise.
24 § 100. Subdivision 1 of section 544 of the real property tax law is
25 amended to read as follows:
26 1. The comptroller shall pay taxes levied on lands of the state in
27 each county pursuant to the foregoing sections of this title, out of
28 moneys appropriated by the legislature therefor, to the county treasurer
29 for appropriate distribution upon submission of a statement of such
30 taxes by him or her in such form and executed in such manner by the
31 county treasurer as may be required by the comptroller. Provided, howev-
32 er, that in the case of lands which are taxable pursuant to subdivision
33 (j) of section five hundred thirty-two of this title, the comptroller
34 shall pay such taxes. Such payment shall be requested, processed and
35 paid separately from all other taxes that are payable to the county
36 treasurer pursuant to this section.
37 § 101. Subdivisions b and d of section 1612 of the tax law, subdivi-
38 sion b as amended by section 2 and subdivision d as added by section 3
39 of part CC of chapter 61 of the laws of 2005, are amended and three new
40 subdivisions e, f and g are added to read as follows:
41 b. 1. Notwithstanding section one hundred twenty-one of the state
42 finance law, on or before the twentieth day of each month, the division
43 shall pay into the state treasury, to the credit of the state lottery
44 fund created by section ninety-two-c of the state finance law, not less
45 than forty-five percent of the total amount for which tickets have been
46 sold for games defined in paragraph four of subdivision a of this
47 section during the preceding month, not less than thirty-five percent of
48 the total amount for which tickets have been sold for games defined in
49 paragraph three of subdivision a of this section during the preceding
50 month, not less than twenty percent of the total amount for which tick-
51 ets have been sold for games defined in paragraph two of subdivision a
52 of this section during the preceding month, provided however that for
53 games with a prize payout of seventy-five percent of the total amount
54 for which tickets have been sold, the division shall pay not less than
S. 6950 95 A. 9998
1 ten percent of sales into the state treasury and not less than twenty-
2 five percent of the total amount for which tickets have been sold for
3 games defined in paragraph one of subdivision a of this section during
4 the preceding month; and the balance of the total revenue after payout
5 for prizes for games known as "video lottery gaming," (i) less ten
6 percent of the total revenue wagered after payout for prizes to be
7 retained by the division for operation, administration, and procurement
8 purposes; (ii) less a vendor's fee the amount of which is to be paid for
9 serving as a lottery agent under this pilot program to the track opera-
10 tor of a vendor track:
11 (A) having fewer than one thousand one hundred video gaming machines,
12 at a rate of [thirty-two] thirty-six percent for the first fifty million
13 dollars annually, twenty-nine percent for the next hundred million
14 dollars annually, and twenty-six percent thereafter of the total revenue
15 wagered at the vendor track after payout for prizes pursuant to this
16 chapter[, which amount shall be paid to the operator of the racetrack
17 for serving as a lottery agent under this pilot program, and];
18 (B) having one thousand one hundred or more video gaming machines, at
19 a rate of thirty-two percent of the total revenue wagered at the vendor
20 track after payout for prizes pursuant to this chapter, except for such
21 facility located in the county of Westchester, in which case the rate
22 shall be thirty-four percent of the total revenue wagered at the vendor
23 track after payout for prizes pursuant to this chapter, for a period of
24 twenty-four months effective beginning April first, two thousand eight;
25 provided, however, that in the event that the vendor track located in
26 Westchester county completes a successful restructuring prior to March
27 thirty-first, two thousand ten, the vendor fee will be reduced to thir-
28 ty-two percent ninety days following the completion of the successful
29 restructuring. A successful restructuring is defined as a restructuring
30 of the existing debt obligations of such vendor track located in West-
31 chester county that meets the following two conditions:
32 (i) it requires no more than twenty million dollars of additional
33 equity invested in such track; and
34 (ii) results in average net interest costs of less than nine percent.
35 Notwithstanding the foregoing, the vendor fee at such track will
36 become thirty-one percent effective April first, two thousand ten and
37 remain at that level for a period equal to two times the period of time
38 (measured in days) that the vendor fee was thirty-four percent. Not
39 later than April first, two thousand twelve, the vendor fee will become
40 thirty-two percent and remain at that level thereafter; and except for
41 Acqueduct racetrack, in which case the rate shall be thirty-one percent
42 of the total revenue wagered at the vendor track after payout for prizes
43 pursuant to this chapter;
44 (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
45 vendor track is located in an area with a population of less than one
46 million within the forty mile radius around such track, at a rate of
47 forty percent for the first fifty million dollars annually, twenty-nine
48 percent for the next hundred million dollars annually, and twenty-six
49 percent thereafter of the total revenue wagered at the vendor track
50 after payout for prizes pursuant to this chapter;
51 (D) notwithstanding clauses (A), (B) and (C) of this subparagraph,
52 when the vendor track is within fifteen miles of a Native American
53 gaming facility or, for a period of five years effective beginning April
54 first, two thousand eight within a midpoint of thirty miles from any
55 gaming facility in a contiguous state, at a rate of forty-two percent of
56 the total revenue wagered at the vendor track after payout for prizes
S. 6950 96 A. 9998
1 pursuant to this chapter unless such vendor track relocates outside the
2 specified geographic area sooner, in which case such rate shall be as
3 for all other tracks in clause (C) of ths subparagraph;
4 (E) notwithstanding clauses (A), (B), (C) and (D) of this subpara-
5 graph, when a Native American gaming facility is established, after the
6 effective date of this subparagraph, within fifteen miles of the vendor
7 track, at a rate of forty-two percent after payout for prizes pursuant
8 to this chapter;
9 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
10 agraph, the track operator of a vendor track shall be eligible for a
11 vendor's capital award of up to four percent of the total revenue
12 wagered at the vendor track after payout for prizes pursuant to this
13 chapter, which shall be used exclusively for capital project investments
14 to improve the facilities of the vendor track which promote or encourage
15 increased attendance at the video lottery gaming facility including, but
16 not limited to hotels, other lodging facilities, entertainment facili-
17 ties, retail facilities, dining facilities, events arenas, parking
18 garages and other improvements that enhance facility amenities; provided
19 that such capital investments shall be approved by the division, in
20 consultation with the state racing and wagering board, and that such
21 vendor track demonstrates that such capital expenditures will increase
22 patronage at such vendor track's facilities and increase the amount of
23 revenue generated to support state education programs. The annual amount
24 of such vendor's capital awards that a vendor track shall be eligible to
25 receive shall be limited to two million five hundred thousand dollars,
26 except for Acqueduct racetrack, for which there shall be no vendor's
27 capital awards. Except for tracks having less than one thousand one
28 hundred video gaming machines, each track operator will be required to
29 co-invest an amount of capital expenditure equal to its vendor's capital
30 award. For all tracks, except for Acqueduct racetrack, the amount of
31 any vendor's capital award that is not used during any one year period
32 may be carried over into subsequent years ending before April first, two
33 thousand thirteen; provided, however, that any amount attributable to a
34 capital expenditure approved prior to April first, two thousand thirteen
35 but completed before April first, two thousand fifteen shall be eligible
36 to receive the vendor's capital award. In no event shall such track
37 facility located within a midpoint of thirty miles from any gaming
38 facility in a contiguous state be eligible for a vendor's capital award
39 under this section, unless it shall have moved from such location or the
40 five year period commencing on April first, two thousand eight has
41 expired, whichever comes first. Any operator of a vendor track which
42 has received a vendor's capital award, choosing to divest the capital
43 improvement toward which the award was applied, prior to reaching the
44 forty year straightline depreciation value of the improvement, shall
45 reimburse the state in amounts equal to the total of any such awards;
46 and (iii) less an additional vendor's marketing allowance at a rate of
47 [eight] ten percent for the first one hundred million dollars annually
48 and [five] eight percent thereafter of the total revenue wagered at the
49 vendor track after payout for prizes to be used by the vendor track for
50 the marketing and promotion and associated costs of its video lottery
51 gaming operations and pari-mutuel horse racing operations, as long as
52 any such costs associated with pari-mutuel horse racing operations
53 simultaneously encourage increased attendance at such vendor's video
54 lottery gaming facilities, consistent with the customary manner of
55 marketing comparable operations in the industry and subject to the over-
56 all supervision of the division; provided, however, that the additional
S. 6950 97 A. 9998
1 vendor's marketing allowance shall not exceed [four] eight percent in
2 any year for any operator of a racetrack located in the county of West-
3 chester or Queens. In establishing the lottery agent fee, the division
4 shall ensure the maximum lottery support for education while also ensur-
5 ing the effective implementation of section sixteen hundred seventeen-a
6 of this article through the provision of reasonable reimbursements and
7 compensation to vendor tracks for participation in such pilot program.
8 Within twenty days after any award of lottery prizes, the division shall
9 pay into the state treasury, to the credit of the state lottery fund,
10 the balance of all moneys received from the sale of all tickets for the
11 lottery in which such prizes were awarded remaining after provision for
12 the payment of prizes as herein provided. Any revenues derived from the
13 sale of advertising on lottery tickets shall be deposited in the state
14 lottery fund.
15 2. In consideration for its licensure and participation in this pilot
16 program, each track shall reinvest in the racing industry a portion of
17 the vendor fee received pursuant to paragraph one of this subdivision in
18 the manner set forth in this subdivision. With the exception of Aque-
19 duct racetrack, each such track shall dedicate a portion of its vendor
20 fees, received pursuant to clause (A), (B), (C), (D) or (E) of subpara-
21 graph (ii) of paragraph one of this subdivision, solely for the purpose
22 of enhancing purses at such track, in an amount equal to eight and
23 three-quarters percent of the total revenue wagered at the vendor track
24 after pay out for prizes. In addition, one and one-quarter percent of
25 total revenue wagered at the vendor track after pay out for prizes,
26 received pursuant to clause (A), (B), (C), (D) or (E) of subparagraph
27 (ii) of paragraph one of this subdivision, shall be distributed to the
28 appropriate breeding fund for the manner of racing conducted by such
29 track.
30 Provided, further, that nothing in this paragraph shall prevent each
31 track from entering into an agreement, not to exceed five years, with
32 the organization authorized to represent its horsemen to increase or
33 decrease the portion of its vendor fee dedicated to enhancing purses at
34 such track during the years of participation by such track, or to race
35 fewer dates than required herein.
36 3. Nothing in paragraph two of this subdivision shall affect any
37 agreement in effect on or before the effective date of this paragraph.
38 d. [1. Notwithstanding any law, rule or regulation to the contrary,
39 fees paid by the New York Racing Association, Inc. or any successor
40 thereto to an outside agent for the marketing, management and operation
41 of video lottery gaming at Aqueduct racetrack shall be deemed "associ-
42 ated costs" within the scope of the additional vendor's marketing allow-
43 ance described in subdivision b of section sixteen hundred twelve of the
44 tax law.
45 2.] Notwithstanding any law, rule or regulation to the contrary, any
46 successor to the New York Racing Association, Inc. with respect to the
47 operation and maintenance of video lottery gaming at Aqueduct racetrack
48 shall be deemed the successor to the New York Racing Association, Inc.
49 for purposes of being subject to existing contracts and loan agreements,
50 if any, entered into by the New York Racing Association, Inc. directly
51 related to the construction, operation, management and distribution of
52 revenues of the video lottery gaming facility at Aqueduct racetrack.
53 e. The video lottery gaming operator selected to operate a video
54 lottery terminal facility at Aqueduct will be subject to a memorandum of
55 understanding between the governor, temporary president of the senate
56 and the speaker of the assembly. Notwithstanding subparagraph (i) of
S. 6950 98 A. 9998
1 paragraph a of subdivision eight of section two hundred twelve of the
2 racing, pari-mutuel wagering and breeding law, the state, pursuant to an
3 agreement with the video lottery gaming operator to operate a video
4 lottery terminal facility at Aqueduct, may authorize, as part of such
5 agreement or in conjunction with such agreement at the time it is
6 executed, additional development at the Aqueduct racing facility. The
7 selection will be made in consultation with the franchised corporation,
8 but is not subject to such corporation's approval. The franchised corpo-
9 ration shall not be eligible to compete to operate or to operate a video
10 lottery terminal facility at Aqueduct. The state will use its best
11 efforts to ensure that the video lottery terminal facility at Aqueduct
12 is opened as soon as is practicable and will, if practicable, pursue the
13 construction of a temporary video lottery terminal facility at Aqueduct
14 subject to staying within an agreed budget for such video lottery termi-
15 nal facility and subject to such temporary facility not having an
16 adverse impact on opening of the permanent facility at Aqueduct. To
17 facilitate the opening of the video lottery gaming facility at Aqueduct
18 as soon as is practicable, the division of the lottery may extend the
19 term of any existing contract related to the video lottery system.
20 f. In consideration of its licensure and participation in this
21 program, the video lottery gaming operator at Aqueduct racetrack shall
22 reinvest in the racing industry a percentage of the vendor fee received
23 pursuant to subdivision b of this section in the manner set forth in
24 this subdivision. The video lottery gaming operator at Aqueduct race-
25 track shall provide the following percentages of its vendor fee to the
26 franchised operator established pursuant to section two hundred six of
27 the racing, pari-mutuel wagering and breeding law, as follows:
28 1. An additional four percent of the total revenue wagered after
29 payout for prizes to be deposited into an account to be used for capital
30 expenditures in maintaining and upgrading Aqueduct, Belmont Park and
31 Saratoga racetracks and not paid directly to the video lottery gaming
32 operator at Aqueduct. In the event that the franchised corporation
33 established pursuant to section two hundred six of the racing, pari-mu-
34 tuel wagering and breeding law receives revenue from other sources which
35 increases the amount of revenue available to be used for capital
36 expenses in maintaining and upgrading Aqueduct, Belmont Park and Sarato-
37 ga racetracks, the amounts available pursuant to this paragraph for
38 capital expenses will be reduced equally by the amount of any additional
39 revenues received by the franchised corporation.
40 2. An additional three percent of the total revenue wagered after
41 payout for prizes to be deposited into an account to be used for general
42 thoroughbred racing operations and not paid directly to the video
43 lottery gaming operator at Aqueduct.
44 3. Six and one-half percent of the total wagered after payout of
45 prizes for the first year of operation of video lottery gaming at Aque-
46 duct racetrack, seven percent of the total wagered after payout of
47 prizes for the second year of operation, and seven and one-half percent
48 of the total wagered after payout of prizes for the third year of opera-
49 tion and thereafter, for the purpose of enhancing purses at Aqueduct
50 racetrack, Belmont Park racetrack and Saratoga race course, and
51 4. One percent of the total wagered after payout of prizes for the
52 first year of operation of video lottery gaming at Aqueduct racetrack,
53 one and one-quarter percent of the total wagered after payout of prizes
54 for the second year of operation, and one and one-half percent of the
55 total wagered after payout of prizes for the third year of operation and
56 thereafter, for an appropriate breeding fund for the manner of racing
S. 6950 99 A. 9998
1 conducted at Aqueduct racetrack, Belmont Park racetrack and Saratoga
2 race course.
3 g. In the event the state elects to construct a video lottery terminal
4 facility at the Aqueduct racetrack, all video lottery terminal revenues
5 payable to the video lottery gaming operator at the Aqueduct racetrack
6 remaining after payment of the amounts set forth in paragraphs one, two,
7 three and four of subdivision f of this section (paragraphs one, two,
8 three and four of subdivision f of this section shall be known collec-
9 tively as the "racing support payments") shall first be used to repay
10 the state's advances for (i) confirmation of the plan of bankruptcy and
11 cash advances for the franchised corporation's operations following
12 confirmation of the plan of bankruptcy in an amount not to exceed one
13 hundred five million dollars and (ii) the amount expended by the state
14 to construct such video lottery terminal facility at Aqueduct racetrack.
15 Subparagraphs (i) and (ii) of this paragraph shall be defined as the
16 state advance amount and the amounts payable to the division of the
17 lottery pursuant to this section shall be used to repay any unpaid state
18 advance amount until repaid in full.
19 § 102. Paragraph 3 of subdivision a of section 1617-a of the tax law,
20 as added by section 2 of part Z3 of chapter 62 of the laws of 2003, is
21 amended to read as follows:
22 (3) has a physical layout and location that facilitates access to and
23 from the horse racing track portion of such [racing] facility to encour-
24 age patronage of live horse racing events that are conducted at such
25 track.
26 § 102-a. Subdivision 5-a of section 307 of the racing, pari-mutuel
27 wagering and breeding law, as added by chapter 281 of the laws of 1994,
28 is amended to read as follows:
29 5-a. The board shall not issue a license pursuant to this section to
30 any harness racing association or corporation which does not apply to
31 conduct at its facilities a minimum number of pari-mutuel programs and
32 pari-mutuel races at its facilities equal to at least seventy-five per
33 centum of the programs and races so conducted during nineteen hundred
34 eighty-five or during nineteen hundred eighty-six, or one hundred per
35 centum of the programs and races so conducted during two thousand,
36 whichever is [less] greater; provided, however, that for a harness
37 racing association or corporation located in Westchester and Erie [coun-
38 ty] counties, such minimum number of pari-mutuel programs and pari-mutu-
39 el races at its facilities shall equal at least [seventy-five percent of
40 programs and races so conducted during nineteen hundred eighty-eight for
41 such track located in Westchester county and seventy-five percent of the
42 number of race programs conducted in nineteen hundred ninety-four for
43 such track located in Erie county] one hundred per centum of the
44 programs and races conducted during two thousand. If the track did not
45 conduct races during two thousand, such minimum number of pari-mutuel
46 programs and pari-mutuel races at its facilities shall equal at least
47 ninety per centum of the programs and races conducted during two thou-
48 sand at Buffalo raceway, in the town of Hamburg and county of Erie,
49 unless cancellation of a race day because of an act of God, which the
50 board approves or because of weather conditions that are unsafe or
51 hazardous which the board approves shall not be construed as a failure
52 to conduct a race day; provided further, the board [may] shall not grant
53 a license to such association or corporation upon application [for the]
54 unless such programs and races are conducted during the same calendar
55 year period as were conducted during the applicable period above
56 utilized to measure the minimum number of pari-mutuel programs and pari-
S. 6950 100 A. 9998
1 mutuel races, as approved by the board. Nothing in the foregoing para-
2 graph shall affect any agreement in effect on or before the effective
3 date of this paragraph. The board may grant a license to such associ-
4 ation or corporation to conduct [of] fewer such programs and races for
5 good cause shown due to factors beyond the control of such association
6 or corporation, and upon consent of the representative horsemen's asso-
7 ciation, as determined pursuant to section three hundred eighteen of
8 this article.
9 § 102-b. Section 322 of the racing, pari-mutuel wagering and breeding
10 law, as amended by section 1 of part D1 of chapter 63 of the laws of
11 2003, is amended to read as follows:
12 § 322. Approval of plans of corporation or association. The state
13 racing and wagering board shall not grant to a corporation or associ-
14 ation hereafter formed pursuant to sections two hundred twenty-two
15 through seven hundred five of this chapter, a license to conduct a
16 harness race meeting at which pari-mutuel betting may be conducted with-
17 in the state until such corporation or association shall have submitted
18 to the board a statement of the location of its proposed grounds and
19 racetrack, together with a plan of such racetrack, and plans of all
20 buildings, seating stands and other structures in such form as the board
21 may prescribe, and such plans shall have been approved in writing by the
22 board. Such plans shall show that its paddock and barn areas can accom-
23 modate and serve the needs of horses and horse trainers that participate
24 in live racing at such facility. Alterations or discontinuance of exist-
25 ing buildings, seating stands and other structures, and the erection of
26 new or additional buildings, seating stands or other structures may be
27 made only with the prior written approval of the board and after exam-
28 ination and inspection of the plans thereof and the issuance of a permit
29 therefor by the state racing and wagering board. The board at the
30 expense of the applicant may order such engineering examination thereof
31 as the board may deem necessary. The approval of the certificate of
32 incorporation of such corporation or association shall not be deemed to
33 vest in it the right to a license to conduct harness race meetings at
34 such race course or racetrack unless such grounds, track, buildings,
35 seating stands and other structures shall be completed in accordance
36 with the plans approved by the board.
37 § 103. (a) Subject to the provisions of chapter 59 of the laws of
38 2000, but notwithstanding any other provisions of law to the contrary,
39 the urban development corporation is hereby authorized to issue bonds or
40 notes in one or more series in an aggregate principal amount not to
41 exceed $105,000,000, excluding bonds or notes issued to finance one or
42 more debt service reserve funds, to pay costs of issuance of such bonds
43 or notes and bonds or notes issued to refund or otherwise repay such
44 bonds or notes previously issued, for the purpose of financing the
45 acquisition of clear title to the Aqueduct, Belmont and Saratoga race-
46 tracks and related real property through a payment or payments by the
47 state pursuant to an order of the United States bankruptcy court for the
48 southern district of New York approving a plan of reorganization of the
49 New York racing association. Eligible project costs may include, but not
50 be limited to the cost of site acquisition, costs relating to clearance
51 of title, professional fees and costs of issuance.
52 (b) Subject to the provisions of chapter 59 of the laws of 2000, but
53 notwithstanding any other provisions of law to the contrary, the urban
54 development corporation is hereby authorized to issue bonds or notes in
55 one or more series in an aggregate principal amount not to exceed
56 $250,000,000, excluding bonds or notes issued to finance one or more
S. 6950 101 A. 9998
1 debt service reserve funds, to pay costs of issuance of such bonds or
2 notes and bonds or notes issued to refund or otherwise repay such bonds
3 or notes previously issued, for the purpose of financing the design,
4 acquisition, construction and equipment of such structures as may be
5 necessary to properly house video lottery terminal gaming at Aqueduct
6 racetrack. Eligible project costs may include, but not be limited to,
7 the cost of property acquisition, studies, appraisals, surveys, testing,
8 environmental impact statements, infrastructure, facility design,
9 construction and equipment, costs of leasing space, professional fees
10 and costs of issuance.
11 (c) Such bonds and notes of such authorized issuer shall not be a debt
12 of the state, and the state shall not be liable thereon, nor shall they
13 be payable out of any funds other than those appropriated by the state
14 to such authorized issuer for debt service and related expenses pursuant
15 to any service contract executed pursuant to subdivision (d) of this
16 section and such bonds and notes shall contain on the face thereof a
17 statement to such effect. Except for purposes of complying with the
18 internal revenue code, any interest income earned on bond proceeds shall
19 only be used to pay debt service on such bonds.
20 (d) Notwithstanding any provisions of law to the contrary, in order to
21 assist such authorized issuer in undertaking the administration and
22 financing of the projects authorized pursuant to subdivision (a) or (b)
23 of this section, the director of the budget is hereby authorized to
24 enter into one or more service contracts with such authorized issuer,
25 none of which shall exceed more than 30 years in duration, upon such
26 terms and conditions as the director of the budget and such authorized
27 issuer shall agree, so as to annually provide to such authorized issuer,
28 in the aggregate, a sum not to exceed the annual debt service payments
29 and related expenses required for the bonds and notes issued pursuant to
30 this section. Any service contract entered into pursuant to this subdi-
31 vision shall provide that the obligation of the state to pay the amount
32 therein provided shall not constitute a debt of the state within the
33 meaning of any constitutional or statutory provision and shall be deemed
34 executory only to the extent of monies available and that no liability
35 shall be incurred by the state beyond the monies available for such
36 proposes, subject to annual appropriation by the legislature. Any such
37 contract or any payments made or to be made thereunder may be assigned
38 or pledged by such authorized issuer as security for its bonds and
39 notes, as authorized by this section.
40 § 104. The amounts as hereinafter set forth, or so much thereof as may
41 be necessary, are hereby appropriated from the fund so designated and
42 may be suballocated or transferred to any department, agency, or public
43 authority for the fiscal year beginning April 1, 2007 to carry out the
44 provisions of this act. No money shall be available for expenditure from
45 these appropriations until a certificate of approval of availability has
46 been issued by the director of the budget and a copy of such certificate
47 or any amendment thereto has been filed with the state comptroller, the
48 chair of the senate finance committee, and the chair of the assembly
49 ways and means committee.
50 There is hereby appropriated to the urban development corporation out
51 of the New York racing account of the miscellaneous capital projects
52 fund the sum of $105,000,000, for services and expenses required relat-
53 ing to payments for capital works or purposes, including, but not limit-
54 ed to, payments to the New York racing association for the purpose of
55 acquisition of clear title to the Aqueduct, Belmont and Saratoga race-
56 tracks and related real property pursuant to an order of the United
S. 6950 102 A. 9998
1 State bankruptcy court for the southern district of New York approving a
2 plan of reorganization of the New York racing association, as authorized
3 pursuant to this act (91QA0809).
4 There is hereby appropriated to the urban development corporation out
5 of the New York racing account of the miscellaneous capital projects
6 fund the sum of $250,000,000, for services and expenses required related
7 to payments for capital works or purposes, including, but not limited
8 to, costs for the design, acquisition, construction and equipment of
9 such structures as may be necessary to properly house video lottery
10 terminal gaming at Aqueduct racetrack including, but not limited to, the
11 costs of property acquisition, studies, appraisals, surveys, testing,
12 environmental impact statements, infrastructure, facility design,
13 construction and equipment, cost of leasing space, professional fees and
14 costs of issuance, as authorized pursuant to this act (91AQ0809).
15 § 105. The New York racing account of the miscellaneous capital
16 projects fund is eligible to be reimbursed from the proceeds of notes or
17 bonds issued by any public authority.
18 § 106. The state comptroller is hereby authorized and directed to loan
19 money in accordance with the provisions set forth in subdivision 5 of
20 section 4 of the state finance law to the New York racing account of the
21 miscellaneous capital projects fund.
22 § 107. Section 32 of chapter 281 of the laws of 1994, amending the
23 racing, pari-mutuel wagering and breeding law and other laws relating to
24 simulcasting, as amended by section 6 of part A of chapter 60 of the
25 laws of 2007, is amended to read as follows:
26 § 32. This act shall take effect immediately and the pari-mutuel tax
27 reductions in section six of this act shall expire and be deemed
28 repealed on July 1, [2008] 2009; provided, however, that nothing
29 contained herein shall be deemed to affect the application, qualifica-
30 tion, expiration, or repeal of any provision of law amended by any
31 section of this act, and such provisions shall be applied or qualified
32 or shall expire or be deemed repealed in the same manner, to the same
33 extent and on the same date as the case may be as otherwise provided by
34 law; provided further, however, that sections twenty-three and twenty-
35 five of this act shall remain in full force and effect only until May 1,
36 1997 and at such time shall be deemed to be repealed.
37 § 108. Section 54 of chapter 346 of the laws of 1990, amending the
38 racing, pari-mutuel wagering and breeding law and other laws relating to
39 simulcasting and the imposition of certain taxes, as amended by section
40 7 of part A of chapter 60 of the laws of 2007, is amended to read as
41 follows:
42 § 54. This act shall take effect immediately; provided, however,
43 sections three through twelve of this act shall take effect on January
44 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
45 ing law, as added by section thirty-eight of this act, shall expire and
46 be deemed repealed on July 1, [2008] 2009; and section eighteen of this
47 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
48 two of this act shall take effect as of the same date as chapter 772 of
49 the laws of 1989 took effect.
50 § 109. Severability clause. If any clause, sentence, paragraph, subdi-
51 vision, section or part of this act shall be adjudged by any court of
52 competent jurisdiction to be invalid, such judgment shall not affect,
53 impair, or invalidate the remainder thereof, but shall be confined in
54 its operation to the clause, sentence, paragraph, subdivision, section
55 or part thereof directly involved in the controversy in which such judg-
56 ment shall have been rendered. It is hereby declared to be the intent of
S. 6950 103 A. 9998
1 the legislature that this act would have been enacted even if such
2 invalid provisions had not been included herein.
3 § 110. This act shall take effect immediately; provided, that sections
4 fourteen and sixteen of this act shall take effect on the same date as
5 the non-profit racing association known as The New York Racing Associ-
6 ation, Inc.'s confirmation of a plan of reorganization in the pending
7 bankruptcy proceeding in the Southern District of New York; provided
8 that the franchise oversight board shall notify the legislative bill
9 drafting commission upon the occurrence of such confirmation of such
10 plan of reorganization in order that the commission may maintain an
11 accurate and timely effective data base of the official text of the laws
12 of the state of New York in furtherance of effectuating the provisions
13 of section 44 of the legislative law and section 70-b of the public
14 officers law; provided that the amendments to section 208-b of the
15 racing, pari-mutuel wagering and breeding law made by section sixteen of
16 this act shall be repealed on the same date as such section is repealed
17 pursuant to chapter 354 of the laws of 2005, as amended; provided howev-
18 er that the amendments to paragraph b of subdivision 3 of section 527
19 of the racing, pari-mutuel wagering and breeding law made by section
20 sixty-nine of this act shall not affect the expiration of such subdivi-
21 sion and shall be deemed to expire therewith; and provided further, the
22 amendments to section 909 of the racing, pari-mutuel wagering and breed-
23 ing law made by section eighty-two of this act shall not affect the
24 repeal of such section and shall be deemed to be repealed therewith;
25 provided however that the amendments to section 912 of the racing, pari-
26 mutuel wagering and breeding law made by section eighty-five of this act
27 shall not affect the expiration and repeal of such section and shall be
28 deemed to expire therewith; provided however that the amendments to
29 section 1012 of the racing, pari-mutuel wagering and breeding law made
30 by section ninety-three of this act shall not affect the expiration of
31 such section and shall be deemed to expire therewith; provided further
32 that section one hundred one of this act shall take effect April 1,
33 2008; provided, however that at the conclusion of each twelve month
34 interval following the effective date of section one hundred one of this
35 act, the lottery division shall make a report to the governor and legis-
36 lature assessing the impact of the redistribution of video gaming
37 machine revenues as provided for in this act with special attention to
38 evaluating the effects on funding education aid, and making such recom-
39 mendations as such lottery division analysts believe may enhance the
40 revenue production in support of education from the conduct of video
41 gaming; and section one hundred two-a of this act shall take effect on
42 the first of January next succeeding the date on which it shall have
43 become a law; and the amendments to section 1617-a of the tax law, made
44 by section one hundred two of this act, shall not affect the repeal of
45 such section and shall be deemed repealed therewith.
