Allows funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage.
STATE OF NEW YORK
________________________________________________________________________
7745--A
IN SENATE
February 14, 2018
___________
Introduced by Sens. BONACIC, MARCHIONE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Racing,
Gaming and Wagering -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to funds held in trust by a franchised corporation for a
recognized horsemen's organization to be used as collateral to secure
workers' compensation insurance coverage
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The opening paragraph of subdivision 7 of section 221 of
2 the racing, pari-mutuel wagering and breeding law, as amended by section
3 2 of part SS of chapter 59 of the laws of 2017, is amended to read as
4 follows:
5 In order to pay the costs of the insurance required by this section
6 and by the workers' compensation law and to carry out its other powers
7 and duties and to pay for any of its liabilities under section four-
8 teen-a of the workers' compensation law, the New York Jockey Injury
9 Compensation Fund, Inc. shall ascertain the total funding necessary and
10 establish the sums that are to be paid by all owners and trainers
11 licensed or required to be licensed under section two hundred twenty of
12 this article, to obtain the total funding amount required annually. In
13 order to provide that any sum required to be paid by an owner or trainer
14 is equitable, the fund shall establish payment schedules which reflect
15 such factors as are appropriate, including where applicable, the
16 geographic location of the racing corporation at which the owner or
17 trainer participates, the duration of such participation, the amount of
18 any purse earnings, the number of horses involved, or such other factors
19 as the fund shall determine to be fair, equitable and in the best inter-
20 ests of racing. In no event shall the amount deducted from an owner's
21 share of purses exceed two per centum; provided, however, for two thou-
22 sand [seventeen] eighteen the New York Jockey Injury Compensation Fund,
23 Inc. may use up to two million dollars from the account established
24 pursuant to subdivision nine of section two hundred eight of this arti-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14725-02-8
S. 7745--A 2
1 cle to pay the annual costs required by this section and the funds from
2 such account shall not count against the two per centum of purses
3 deducted from an owner's share of purses. The amount deducted from an
4 owner's share of purses shall not exceed one per centum after April
5 first, two thousand twenty. In the cases of multiple ownerships and
6 limited racing appearances, the fund shall equitably adjust the sum
7 required.
8 § 2. Paragraph (a) of subdivision 9 of section 208 of the racing,
9 pari-mutuel wagering and breeding law, as amended by section 2 of part
10 PP of chapter 60 of the laws of 2016, is amended to read as follows:
11 (a) The franchised corporation shall maintain a separate account for
12 all funds held on deposit in trust by the corporation for individual
13 horsemen's accounts. Purse funds shall be paid by the corporation as
14 required to meet its purse payment obligations. Funds held in horsemen's
15 accounts shall only be released or applied as requested and directed by
16 the individual horseman. For two thousand [sixteen] eighteen the New
17 York Jockey Injury Compensation Fund, Inc. may use up to two million
18 dollars from the account established pursuant to this subdivision to pay
19 the annual costs required by section two hundred twenty-one of this
20 article.
21 § 3. Paragraph (c) of subdivision 9 of section 208 of the racing,
22 pari-mutuel wagering and breeding law is relettered paragraph (e) and
23 two new paragraphs (c) and (d) are added to read as follows:
24 (c) The franchised corporation shall establish and maintain a separate
25 account for funds to be held on deposit in trust by the franchised
26 corporation for the horsemen's organization recognized pursuant to
27 section two hundred twenty-eight of this article. Starting in two thou-
28 sand eighteen and annually thereafter, funds from the account estab-
29 lished pursuant to this subdivision shall be deposited in the separate
30 account established under this paragraph in an amount to be agreed upon
31 by the franchised corporation and the horsemen's organization recognized
32 pursuant to section two hundred twenty-eight of this article. Funds
33 held in this account shall be used by the appropriately recognized
34 horsemen's organization solely as collateral to secure workers' compen-
35 sation insurance coverage, including loss sensitive programs, including
36 through the New York Jockey Injury Compensation Fund, Inc.
37 (d) In the event the horsemen's organization recognized pursuant to
38 section two hundred twenty-eight of this article determines that the
39 funds are no longer needed as collateral to secure workers' compensation
40 insurance coverage, then, upon agreement by the franchised corporation
41 and the appropriately recognized horsemen's organization, funds in the
42 separate account established under paragraph (c) of this subdivision
43 shall be returned to the account established pursuant to this subdivi-
44 sion.
45 § 4. This act shall take effect immediately.
