Prohibits the issuance to or holding of thoroughbred track, harness track or video gaming licenses by persons convicted of a felony involving moral turpitude; applies also to certain transfers of stock; directs the state racing and wagering board to share pertinent information with the division of the lottery.
STATE OF NEW YORK
________________________________________________________________________
6270
2013-2014 Regular Sessions
IN ASSEMBLY
March 25, 2013
___________
Introduced by M. of A. GABRYSZAK -- read once and referred to the
Committee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law and
the tax law, in relation to making persons convicted of certain felo-
nies ineligible for thoroughbred racing, harness racing and video
lottery gaming licenses
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 116-a to read as follows:
3 § 116-a. Persons convicted of certain felonies ineligible for certain
4 licenses. 1. The provisions of this section apply to licenses subject
5 to section two hundred five of this chapter for running thoroughbred
6 races and licenses subject to section three hundred seven of this chap-
7 ter for the conduct of harness race meetings.
8 2. a. For the purposes of this section, a conviction of a felony
9 shall mean the conviction of a felony involving moral turpitude by any
10 court in this state or by any court of the United States or by any court
11 of any other state of the United States; provided, however, that if a
12 crime of which a person is convicted by any court of the United States
13 or any other state is a felony in the jurisdiction in which the
14 conviction is had but is not a felony involving moral turpitude in this
15 state, then the conviction shall not be deemed a conviction of a felony
16 for the purposes of this section. In the event that a crime of which a
17 person is convicted by any court of the United States or by any court of
18 any other state is not a felony in the jurisdiction in which the
19 conviction is had but is a felony involving moral turpitude in this
20 state, then the conviction shall be deemed a conviction of a felony for
21 the purposes of this section. If a person convicted of such a felony or
22 crime deemed to be such a felony is subsequently pardoned by the gover-
23 nor of the state where such conviction was had, or by the president of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09806-01-3
A. 6270 2
1 the United States, or shall receive a certificate of good conduct grant-
2 ed by the board of parole pursuant to the provisions of the executive
3 law for the purpose of removing the disability under this section
4 because of such conviction, the board may, in its discretion, on appli-
5 cation of such person, and on the submission to it of satisfactory
6 evidence of good moral character and suitability, license such person.
7 b. For the purposes of this section, "major stockholder" shall mean
8 any person which owns or seeks to own twenty-five percent or more of the
9 stock of an association, franchisee or corporation.
10 3. a. The state racing and wagering board shall refuse to grant a
11 license to an association, franchisee or corporation if it shall deter-
12 mine that any officer, director, member or major stockholder of such
13 association, franchisee or corporation applying for a license has been
14 convicted of a felony.
15 b. The state racing and wagering board shall revoke any license in
16 effect on or after the effective date of this section if the provisions
17 of paragraph a of this subdivision would preclude its issuance if it
18 were to be applied for on or after the effective date of this section.
19 4. Upon the revocation of a license pursuant to paragraph b of subdi-
20 vision three of this section, the state racing and wagering board shall
21 issue a license to a provisional operator to operate such race meetings
22 or otherwise, as the case may be, for a period not in excess of one year
23 pending the approval of a successor licensee. A provisional operator
24 shall receive no compensation or other revenue from such operation other
25 than a management fee, the amount of which or manner of fixing which
26 shall be determined by the board.
27 5. Any information obtained by the state racing and wagering board in
28 the enforcement of this section pertaining to a felony conviction shall
29 be forthwith transmitted to the division of the lottery in furtherance
30 of such division's duties under subdivision g of section sixteen hundred
31 seventeen-a of the tax law.
32 6. The state racing and wagering board shall approve no stock transfer
33 subject to the provisions of section two hundred four-a or three hundred
34 three of this chapter to any person who would be ineligible for the
35 issuance of a license pursuant to paragraph a of subdivision three of
36 this section and shall accordingly require divestment thereof.
37 § 2. The racing, pari-mutuel wagering and breeding law is amended by
38 adding a new section 204-a to read as follows:
39 § 204-a. Filing of information concerning stock transfers; necessity
40 for state racing and wagering board's approval. 1. Whenever a transfer
41 of twenty-five percent or more of the stock of any franchisee or corpo-
42 ration which is licensed under this article, or of any franchisee or
43 corporation which leases to such licensee the track at which it conducts
44 pari-mutuel thoroughbred running races, or which owns twenty-five
45 percent or more of the stock of such licensee shall be made, there shall
46 be filed simultaneously with the franchisee or corporation which issued
47 such stock the following:
48 a. In duplicate, an affidavit executed by the transferee stating that
49 he or she is to be the sole beneficial owner thereof, and whether or not
50 he or she (i) has been convicted of a felony, as defined in subdivision
51 two of section one hundred sixteen-a of this chapter, or other crime
52 involving moral turpitude, (ii) has been engaged in bookmaking or other
53 form of illegal gambling, (iii) has been found guilty of any fraud or
54 misrepresentation in connection with racing or breeding, (iv) has been
55 found guilty of any violation or attempt to violate any law, rule or
56 regulation of any racing jurisdiction for which suspension from racing
A. 6270 3
1 might be imposed in such jurisdiction, or (v) has violated any rule,
2 regulation or order of the state racing and wagering board; if the
3 transferee is not or is not to be the sole beneficial owner thereof,
4 then there shall be annexed to said affidavit of the transferee, and
5 expressly stated in such affidavit to be deemed a part thereof, a true
6 and complete copy or if oral, a complete statement of all the terms, of
7 the agreement or understanding pursuant to which the stock is to be so
8 held by the transferee, including a detailed statement of the interest
9 therein of each person who is to have any interest therein; and at the
10 same time.
11 b. In duplicate, an affidavit executed by each person for whom the
12 said stock or any interest therein is to be held by said transferee,
13 setting forth whether or not the affiant (i) has been convicted of a
14 felony, as defined in subdivision two of section one hundred sixteen-a
15 of this chapter, or other crime involving moral turpitude, (ii) has
16 engaged in bookmaking or other form of illegal gambling, (iii) has been
17 found guilty of any fraud or misrepresentation in connection with racing
18 or breeding, (iv) has been guilty of any violation or attempt to violate
19 any law, rule or regulation of any racing jurisdiction for which suspen-
20 sion from racing might be imposed in such jurisdiction, or (v) has
21 violated any rule, regulation or order of the state racing and wagering
22 board; to each of which affidavits shall be annexed, and expressly stat-
23 ed in such affidavit to be deemed a part thereof, a true and complete
24 copy or if oral, a complete statement of all the terms, of the agreement
25 or understanding pursuant to which the stock is to be so held by the
26 transferee, including a detailed statement of the interest therein of
27 each person who is to have any interest therein.
28 c. Said franchisee or corporation shall forthwith file with the state
29 racing and wagering board one of each of said duplicate affidavits.
30 2. If, after the filing of any affidavit required to be filed pursuant
31 to subdivision one of this section, there be any change in the status of
32 any such affiant with respect to any of the matters set forth in subpar-
33 agraph (i), (ii), (iii), (iv) or (v) of paragraph a of subdivision one
34 of this section of the affidavit theretofore filed by him or her, such
35 affiant shall forthwith file with the franchisee or corporation with
36 which his or her affidavit was so filed a new affidavit, executed by him
37 or her in duplicate, setting forth such change of status, and the fran-
38 chisee or corporation shall forthwith file one of said affidavits with
39 the state racing and wagering board.
40 3. Whenever any change shall be made in the amount, nature or other-
41 wise of the interest of any person having a twenty-five percent or more
42 interest in the issued stock of any such franchisee or corporation, or
43 any new interest shall be created therein, without a transfer thereof,
44 the record owner of such stock and each person whose interest therein
45 has been so attempted to be changed or created shall file with the fran-
46 chisee or corporation which issued such stock, in duplicate, affidavits
47 as provided by paragraphs a and b of subdivision one of this section,
48 except that such affidavits need not include the matters referred to in
49 subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph a of subdivi-
50 sion one of this section, unless then required pursuant to subdivision
51 two of this section and one copy thereof shall forthwith be filed by the
52 franchisee or corporation with the state racing and wagering board.
53 4. If the state racing and wagering board determines that it is incon-
54 sistent with the public interest, convenience or necessity, or with the
55 best interests of racing generally, that any person continue to be a
56 major stockholder, as defined in subdivision two of section one hundred
A. 6270 4
1 sixteen-a of this chapter, of record or the beneficial owner of any
2 interest in stock standing in the name of another in any franchisee or
3 corporation licensed under this article, or which owns twenty-five
4 percent or more of the stock of such licensee, the state racing and
5 wagering board shall have full power and authority to order or direct
6 each such stockholder or beneficial owner irrespective of the time when
7 such stockholder or beneficial owner acquired his or her stock or inter-
8 est therein to dispose of such stock or interest within a period of time
9 to be specified by the state racing and wagering board, which period the
10 board shall have full power and authority to extend from time to time.
11 5. If the state racing and wagering board shall make any order or
12 direction as provided in subdivision four of this section, the person
13 aggrieved thereby shall be given notice of the time and place of a hear-
14 ing before the board at which the board will hear such person in refer-
15 ence thereto. The action of the board in making any such order or direc-
16 tion shall be reviewable in the courts of this state in the manner
17 provided by, and subject to the provisions of article seventy-eight of
18 the civil practice law and rules.
19 6. Upon application of the state racing and wagering board, the
20 supreme court shall have jurisdiction to issue final orders, on notice
21 and after hearing, commanding any person to comply with the provisions
22 of the orders or directions issued by the board under subdivision four
23 of this section.
24 7. In case of conflict between this section and article eight of the
25 uniform commercial code, the provisions of this section shall control.
26 § 3. Section 303 of the racing, pari-mutuel wagering and breeding law
27 is amended to read as follows:
28 § 303. Filing of information concerning stock transfers; necessity for
29 board's approval. 1. Whenever a transfer of stock of any association or
30 corporation which is licensed under this article, or of any association
31 or corporation which leases to such licensee the track at which it
32 conducts pari-mutuel harness races, or which owns twenty-five percent or
33 more of the stock of such licensee shall be made, there shall be filed
34 simultaneously with the association or corporation which issued such
35 stock the following:
36 a. In duplicate, an affidavit executed by the transferee stating that
37 he or she is to be the sole beneficial owner thereof, and whether or not
38 he or she (i) has been convicted of a felony, as defined in subdivision
39 two of section one hundred sixteen-a of this chapter, or other crime
40 involving moral turpitude, (ii) has been engaged in bookmaking or other
41 forms of illegal gambling, (iii) has been found guilty of any fraud or
42 misrepresentation in connection with racing or breeding, (iv) has been
43 guilty of any violation or attempt to violate any law, rule or regu-
44 lation of any racing jurisdiction for which suspension from racing might
45 be imposed in such jurisdiction, or (v) has violated any rule, regu-
46 lation or order of the board; if the transferee is not, or is not to be,
47 the sole beneficial owner thereof, then there shall be annexed to said
48 affidavit of the transferee, and expressly stated in such affidavit to
49 be deemed a part thereof, a true and complete copy, or if oral, a
50 complete statement of all the terms, of the agreement or understanding
51 pursuant to which the stock is to be so held by the transferee, includ-
52 ing a detailed statement of the interest therein of each person who is
53 to have any interest therein; and at the same time.
54 b. In duplicate, an affidavit executed by each person for whom the
55 said stock, or any interest therein, is to be held by said transferee,
56 setting forth whether or not the affiant (i) has been convicted of a
A. 6270 5
1 felony, as defined in subdivision two of section one hundred sixteen-a
2 of this chapter, or other crime involving moral turpitude, (ii) has
3 engaged in bookmaking or other forms of illegal gambling, (iii) has been
4 found guilty of any fraud or misrepresentation in connection with racing
5 or breeding, (iv) has been guilty of any violation or attempt to violate
6 any law, rule or regulation of any racing jurisdiction for which suspen-
7 sion from racing might be imposed in such jurisdiction, or (v) has
8 violated any rule, regulation or order of the board; to each of which
9 affidavits shall be annexed, and expressly stated in such affidavit to
10 be deemed a part thereof, a true and complete copy, or if oral, a
11 complete statement of all the terms, of the agreement or understanding
12 pursuant to which the stock is to be so held by the transferee, includ-
13 ing a detailed statement of the interest therein of each person who is
14 to have any interest therein.
15 c. Said association or corporation shall forthwith file with the board
16 one of each of said duplicate affidavits.
17 2. If, after the filing of any affidavit hereinabove required to be
18 filed, there be any change in the status of any such affiant with
19 respect to any of the matters set forth in subparagraph (i), (ii),
20 (iii), (iv) or (v) of paragraph a of subdivision one of this section of
21 the affidavit theretofore filed by him or her, such affiant shall forth-
22 with file with the association or corporation with which his or her
23 affidavit was so filed a new affidavit, executed by him or her in dupli-
24 cate, setting forth such change of status, and the association or corpo-
25 ration shall forthwith file one of said affidavits with the board.
26 3. Whenever any change shall be made in the amount, nature, or other-
27 wise, of the interest of any person having an interest in stock of any
28 such association or corporation, or any new interest shall be created
29 therein, without a transfer thereof as hereinabove provided, the record
30 owner of such stock, and each person whose interest therein has been so
31 attempted to be changed or created, shall file with the association or
32 corporation which issued such stock, in duplicate, affidavits as
33 provided by paragraphs a and b of subdivision one of this section,
34 except that such affidavits need not include the matters referred to in
35 subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph a of subdivi-
36 sion one of this section, unless then required pursuant to subdivision
37 two of this section, and one copy thereof shall forthwith be filed by
38 the association or corporation with the board.
39 4. [The board may, upon application to it for good cause shown, waive
40 compliance with subdivisions one, two and three of this section.
41 5.] If the board determines that it is inconsistent with the public
42 interest, convenience or necessity, or with the best interests of racing
43 generally, that any person continue to be a stockholder of record, or
44 the beneficial owner of any interest in stock standing in the name of
45 another, in any association or corporation licensed under this article,
46 or of any association or corporation which leases to such licensee the
47 track at which it conducts pari-mutuel harness racing or which owns
48 twenty-five percent or more of the stock of such licensee, the board
49 shall have full power and authority to order or direct each such stock-
50 holder or beneficial owner irrespective of the time when such stockhold-
51 er or beneficial owner acquired his or her stock or interest therein to
52 dispose of such stock or interest within a period of time to be speci-
53 fied by the board, which period the board shall have full power and
54 authority to extend from time to time.
55 [6.] 5. If the board shall make any order or direction as provided in
56 subdivision [five] four of this section, the person aggrieved thereby
A. 6270 6
1 shall be given notice of the time and place of a hearing before the
2 board at which the board will hear such person in reference thereto. The
3 action of the board in making any such order or direction shall be
4 reviewable in the courts of this state in the manner provided by, and
5 subject to the provisions of article seventy-eight of the civil practice
6 law and rules.
7 [7.] 6. Upon application of the board, the supreme court of this state
8 shall have jurisdiction to issue final orders, on notice and after hear-
9 ing, commanding any person to comply with the provisions of the orders
10 or directions issued by the board under subdivision [five] four of this
11 section.
12 [8.] 7. In case of conflict between this section and article eight of
13 the uniform commercial code, this section shall control.
14 § 4. Section 1617-a of the tax law is amended by adding a new subdivi-
15 sion g to read as follows:
16 g. (1) No license under this section shall be issued to any person or
17 other entity which has been convicted of a felony.
18 (2) For the purposes of this section, the term "conviction of a felo-
19 ny" has the meaning prescribed therefor in subdivision two of section
20 one hundred sixteen-a of the racing, pari-mutuel wagering and breeding
21 law.
22 (3) The division shall revoke any such license in effect on or after
23 the effective date of this subdivision if the provisions of paragraph
24 one of this subdivision would preclude its issuance if it were to be
25 applied for on or after the effective date of this subdivision.
26 § 5. This act shall take effect on the first of January next succeed-
27 ing the date on which it shall have become a law; provided that any and
28 all rules and regulations and any other measures necessary to implement
29 any provision of this act on its effective date may be promulgated and
30 taken, respectively, on or before the effective date of such provision.
