S07744 Summary:

Add S202-b, rpld S207 sub 1 a; amd S207, Part A S14, Chap 60 of 2012
Enacts the New York state racing franchise accountability and transparency act of 2012; creates a temporary reorganization board to serve for a period of three years.
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S07744 Actions:

06/19/2012referred to racing and wagering
06/20/2012substituted for a10717
06/20/2012ordered to third reading rules cal.436
06/20/2012passed assembly
06/20/2012returned to senate
09/28/2012SIGNED CHAP.457
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S07744 Floor Votes:

DATE:06/20/2012Assembly Vote  YEA/NAY: 144/0
ArroyoYConteERGottfriedYLope PDYO'DonnellYScarboroughY
AubryYCookYGrafYLope VJYOrtizYSchimelY
BarronYCrouchYHawleyYMageeYPeoples StokesYSimotasY
Brook KrasnyYFarrellYJordanYMcLaughlinYReillyYTitusY
BurlingYFinchYKatzYMengERRive J YTobaccoY
ButlerYFitzpatrickYKavanaghYMill D YRive N YWalterY
CahillYFriendYKearnsYMill JMYRive PMYWeinsteinY
CalhounYGabryszakYKellnerYMill MGYRobertsYWeisenbergY
CastroYGiglioYLavineYMoyaYRussellYMr SpkrY

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S07744 Text:

                STATE OF NEW YORK
            S. 7744                                                 A. 10717
                SENATE - ASSEMBLY
                                      June 16, 2012
        IN  SENATE  -- Introduced by Sens. SKELOS, BONACIC -- (at request of the
          Governor) -- read twice and ordered printed, and when  printed  to  be
          committed to the Committee on Rules
        IN  ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of
          A. Pretlow) -- (at request of the Governor) -- read once and  referred
          to the Committee on Racing and Wagering

        AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
          relation to enacting the New York state racing franchise  accountabil-
          ity and transparency act of 2012; to amend part A of chapter 60 of the
          laws  of  2012  amending the racing, pari-mutuel wagering and breeding
          law and other laws relating to supervision and regulation of the state
          gaming industry, in relation to  the  effectiveness  thereof;  and  to
          repeal  certain  provisions  of  the  racing, pari-mutuel wagering and
          breeding law relating thereto
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Short title. Sections one through six of this act shall be
     2  known and may be cited as the "New York state racing franchise  account-
     3  ability and transparency act of 2012".

     4    § 2. Legislative findings. The legislature finds and declares a strong
     5  horse  racing  and breeding industry to be a valuable contributor to the
     6  New York state economy and a tourism generator for the entire state. The
     7  legislature further finds that The New York Racing Association, Inc. was
     8  authorized to incorporate by Chapter 18 of the Laws of 2008  to  further
     9  the  interests  of  thoroughbred  racing,  the  public  interest and the
    10  purposes of Article II of the Racing, Pari-Mutuel Wagering and  Breeding
    11  Law  and  to further the raising and breeding and improving the breed of
    12  horses.
    13    The structure of gaming and racing is undergoing change in  New  York,
    14  with  the  establishment  of racinos, the creation of the New York state
    15  gaming commission, and first passage of a  constitutional  amendment  on
    16  commercial  casinos. Therefore, the legislature finds in order to ensure

    17  the viability and continuity of horse racing, the  racing  industry  and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 7744                             2                           A. 10717
     1  industries  that  support  and  are  sustained  by  the racing industry,
     2  exigent circumstances necessitate a temporary structural change  in  the
     3  organization  of The New York Racing Association, Inc., in the form of a
     4  temporary  board.  This  temporary  reorganization  board shall be under
     5  public control to ensure The New York Racing Association, Inc.  works in
     6  the best interest of all stakeholders in horse  racing  including  fans,

     7  owners  and  breeders by managing the state racing franchise with trans-
     8  parency and accountability. In no later  than  three  years,  the  state
     9  racing  franchise shall be returned to private control, remaining in the
    10  form of a not-for-profit corporation.
    11    The legislature further finds  that  these  statutory  changes  to  be
    12  consistent  with  the  state  racing  franchise  agreement, appropriate,
    13  necessary and in the best interests of The New York Racing  Association,
    14  Inc.  and the racing industry in general.
    15    §  3.  The racing, pari-mutuel wagering and breeding law is amended by
    16  adding a new section 202-b to read as follows:
    17    § 202-b. No debt of the state.   Nothing  in  this  article  shall  be
    18  construed  to accept a liability to or create a debt of the state within
    19  the meaning of any constitutional or statutory provision.

    20    § 4. Paragraph a of subdivision 1 of section 207 of the racing,  pari-
    21  mutuel  wagering  and  breeding law is REPEALED and a new paragraph a is
    22  added to read as follows:
    23    a. The board of directors, to be called the New  York  racing  associ-
    24  ation  reorganization board, shall consist of seventeen members, five of
    25  whom shall be elected by the present class A directors of The  New  York
    26  Racing  Association, Inc., eight to be appointed by the governor, two to
    27  be appointed by the temporary president of the  senate  and  two  to  be
    28  appointed by the speaker of the assembly.
    29    (i) The governor shall nominate a member to serve as chair, subject to
    30  confirmation  by  majority  vote  of the board of directors.  All non-ex
    31  officio members shall have equal voting rights.

    32    (ii) In the event of a member vacancy occurring by death,  resignation
    33  or  otherwise,  the  respective  appointing  officer  or  officers shall
    34  appoint a successor who shall hold office for the unexpired  portion  of
    35  the term. A vacancy from the members appointed from the present board of
    36  The  New York Racing Association, Inc., shall be filled by the remaining
    37  such members.
    38    b.  In addition to these voting members, the board shall have  two  ex
    39  officio  members  to  advise  on  critical  economic  and  equine health
    40  concerns of the racing industry, one appointed by the New York Thorough-
    41  bred Breeders Inc., and one  appointed  by  the  New  York  thoroughbred
    42  horsemen's  association  (or  such  other  entity  as  is  certified and

    43  approved pursuant to section two hundred twenty-eight of this article).
    44    c. All directors shall serve  at  the  pleasure  of  their  appointing
    45  authority.
    46    d.  The  board,  which  shall  become  effective upon appointment of a
    47  majority of public members, shall terminate three years from its date of
    48  creation. The board shall propose, no less than one hundred eighty  days
    49  prior  to its termination, recommendations to the governor and the state
    50  legislature representing a statutory plan for the  prospective  not-for-
    51  profit governing structure of The New York Racing Association, Inc.
    52    §  5. Subdivision 1 of section 207 of the racing, pari-mutuel wagering
    53  and breeding law is amended by adding a  new  paragraph  c  to  read  as
    54  follows:

    55    c.  Upon  the  effective  date of this paragraph, the structure of the
    56  board of the franchised corporation shall be deemed to  be  incorporated

        S. 7744                             3                           A. 10717
     1  within  and  made  part of the certificate of incorporation of the fran-
     2  chised corporation, and no amendment to  such  certificate  of  incorpo-
     3  ration  shall be necessary to give effect to any such provision, and any
     4  provision  contained  within such certificate inconsistent in any manner
     5  shall be superseded by the provisions  of  this  section.    Such  board
     6  shall,  however,  make  appropriate  conforming changes to all governing
     7  documents of the franchised corporation including  but  not  limited  to

     8  corporate by-laws.  Following such conforming changes, amendments to the
     9  by-laws  of  the  franchised corporation shall only be made by unanimous
    10  vote of the board.
    11    § 6. Section 207 of the racing, pari-mutuel wagering and breeding  law
    12  is amended by adding a new subdivision 5 to read as follows:
    13    5.  Each  voting  member  of  the board of directors of the franchised
    14  corporation shall annually make a written disclosure to the board of any
    15  interest held by the director, such director's spouse  or  unemancipated
    16  child,  in  any  entity  undertaking  business in the racing or breeding
    17  industry. Such interest disclosure shall be promptly updated,  in  writ-
    18  ing, in the event of any material change.

    19    The  board shall establish parameters for the reporting and disclosure
    20  of such director interests.
    21    § 7. Section 14 of part A of chapter 60 of the laws of  2012  amending
    22  the  racing,  pari-mutuel  wagering  and breeding law relating to super-
    23  vision and regulation of the state gaming  industry;  and  amending  the
    24  racing,  pari-mutuel  wagering  and  breeding law, the general municipal
    25  law, the executive law and the tax law  relating  to  the  state  gaming
    26  commission is amended to read as follows:
    27    §  14.  This act shall take effect [October 1, 2012] February 1, 2013;
    28  provided, however that effective immediately,  the  addition,  amendment
    29  and/or  repeal of any rules or regulations necessary for the implementa-
    30  tion of the foregoing provisions of this act on its effective  date  are

    31  authorized  and  directed  to  be  made  and completed on or before such
    32  effective date.
    33    § 8. This act shall take effect immediately; provided,  however,  that
    34  sections  four,  five  and  six  of  this act shall take effect upon the
    35  appointment of a majority of public directors of the temporary  reorgan-
    36  ization  board of The New York Racing Association, Inc.  as set forth in
    37  section four of this act, provided that the  chair  of  the  racing  and
    38  wagering board or his or her successor shall notify the legislative bill
    39  drafting commission upon the occurrence in order that the commission may
    40  maintain  an  accurate data base of the official text of the laws of the
    41  state of New York in furtherance of effecting the provisions of  section
    42  44 of the legislative law and section 70-b of the public officers law.
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