Authorizes the state gaming commission to impose monetary fines upon any corporation, association or person participating in a thoroughbred race meeting or off-track betting, whether licensed by such commission or not, for violation of a commission rule or regulation; does not apply to track or parlor patrons.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5920
SPONSOR: Woerner TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to the imposition of fines
PURPOSE:
This bill explicitly empowers the Gaming Commission to impose fines for
violations on entities or persons participating in pari-mutuel thorough-
bred racing. It also creates a new subdivision to empower the Commission
to impose fines on entities or persons participating in off-track
betting.
SUMMARY OF PROVISIONS:
Section 1: Adds a new Section 213-b authorizing the Gaming Commission to
impose monetary fines upon any corporation, association or person
participating in a thoroughbred race meeting (other than as a patron) at
which parimutuel wagering is conducted who violates any provision of the
Racing, Pari-mutuel Wagering and Breeding Law, Commission rules or
orders, or the approved plan of operation for the conduct of racetrack
betting.
Section 2: Adds a new subdivision Section 522(4)to empower the Gaming
Commission to impose monetary fines upon any person, corporation or
association participating in any way in off track betting, who violates
any provision of the Racing, Pari-mutuel Wagering and Breeding Law,
Commission rules or orders, or the approved plan of operation for the
conduct of off-track betting. The maximum fine would be $5,000 for each
violation. The Commission's imposition of a fine would be subject to
State Administrative Procedure Act provisions and reviewable by a court
of competent jurisdiction.
EXISTING LAW:
Article 2 of the Racing, Pari-Mutuel Wagering and Breeding Law that
regulates thoroughbred racing does not contain explicit authorization
for the imposition of fines for a violation of Sections 210 through 221.
Article V-a (off-track pari-mutuel betting) provides only one method for
the imposition of sanctions for a violation of the statute, commission
rules or the approved plan of operation by an off-track betting corpo-
ration. That method is to suspend the off-track betting corporation's
plan of operation.
STATEMENT IN SUPPORT:
The harness, quarter horse and simulcast articles of the Racing, Pari-
mutuel Wagering and Breeding Law (Sections 310, 410 and 1005) authorizes
the Commission to the impose of fines of up to $5,000 upon entities and
individuals participating in pari-mutuel racing. However, authorization
is not present in Article 2 governing thoroughbred racing for violation
of all provisions of this article. Even though the Commission's imposi-
tion of fines has not been legally challenged on this basis, this defi-
ciency should be addressed to avoid potential litigation. The power to
fine is the most practical enforcement method in racing and exists in
all racing jurisdictions. The current system of sanctions to ensure
compliance with the off-track betting provisions of the law is impracti-
cable. To terminate all corporate operations or a portion thereof, with
the resulting loss Of revenues to all segments of the racing industry,
as well as state and local governments, is a drastic action that should
be taken in only the most serious instances. To enable the Commission to
properly discharge its oversight, supervisory and regulatory functions,
additional alternative sanctions should be available to the Commission
directly within Article V-a.
LEGISLATIVE HISTORY:
2023-2024 A879 referred to Racing and Wagering
2021-2022 A1586 referred to Racing and Wagering
2019-2020 A4157 referred to Racing and Wagering
2017/2018 A9202 referred to Racing and Wagering
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take immediately
STATE OF NEW YORK
________________________________________________________________________
5920
2025-2026 Regular Sessions
IN ASSEMBLY
February 24, 2025
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to the imposition of fines
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The racing, pari-mutuel wagering and breeding law is
2 amended by adding a new section 213-a to read as follows:
3 § 213-a. Power of the commission to impose fines and penalties. In
4 addition to its power to suspend or revoke licenses granted by it, the
5 state gaming commission is hereby authorized and empowered to impose
6 monetary fines upon any corporation, association or person participating
7 in any way in any thoroughbred race meet at which pari-mutuel betting is
8 conducted, other than as a patron, and whether licensed by the commis-
9 sion or not, for a violation of any provision of this chapter or the
10 rules promulgated by the commission pursuant thereto, not exceeding ten
11 thousand dollars for each violation. The commission is further author-
12 ized and empowered to impose monetary fines, not exceeding ten thousand
13 dollars for each violation, upon any such corporation, association or
14 person for a violation of any order issued by the commission pursuant to
15 this article or the rules promulgated by the commission pursuant there-
16 to, provided that a copy of such order shall have been served either
17 personally or by registered mail, upon the corporation, association or
18 person to whom the same was directed, prior to the occurrence of the
19 violation, for which such fine is imposed. The commission shall only
20 impose such fine upon a corporation, association or person in an amount
21 which reflects the severity of the violation. The commission shall
22 impose such fines subject to the notice and hearing provisions of the
23 state administrative procedure act. Such fines shall be paid into the
24 treasury of the state. The action of the commission in imposing any
25 monetary fine shall be reviewable in the supreme court in the manner
26 provided by and subject to the provisions of article seventy-eight of
27 the civil practice law and rules.
28 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02446-01-5
