Bill Text: NY A09749 | 2019-2020 | General Assembly | Introduced
Bill Title: Implements technical changes regarding the racing and wagering board.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2020-10-07 - SIGNED CHAP.243 [A09749 Detail]
Download: New_York-2019-A09749-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9749 IN ASSEMBLY February 10, 2020 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Racing and Wagering AN ACT to amend the racing, pari-mutuel wagering and breeding law, the general municipal law, the alcoholic beverage control law and the administrative code of the city of New York, in relation to implement- ing technical changes contemplated by section 10 of part A of chapter 60 of the laws of 2012 and making further technical changes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. 1. The legislature recognizes that 2 section 10 of part A of chapter 60 of the laws of 2012 provides as 3 follows: 4 (a) Wherever the term "racing and wagering board", "state racing 5 commission" or "state harness racing commission" appears in the execu- 6 tive law, the general municipal law, article 34 of the tax law or the 7 racing, pari-mutuel wagering and breeding law or otherwise in the 8 consolidated or unconsolidated laws of this state, such term is hereby 9 changed to "state gaming commission". 10 (b) Wherever the term "chairman of the racing and wagering board" 11 appears in the consolidated or unconsolidated laws of this state, such 12 term is hereby changed to "chair of the state gaming commission". 13 (c) The legislative bill drafting commission is hereby directed to 14 effectuate this provision, and shall be guided by a memorandum of 15 instruction setting forth the specific provisions of law to be amended. 16 Such memorandum shall be transmitted to the legislative bill drafting 17 commission within sixty days of the effective date of this provision. 18 Such memorandum shall be issued jointly by the governor, the temporary 19 president of the senate and the speaker of the assembly, or by the dele- 20 gate of each. 21 2. In lieu of the memorandum of instruction referred to in paragraph 22 (c) of section 10 of part A of chapter 60 of the laws of 2012, the 23 legislature intends for this bill to set forth all changes to consol- 24 idated law directed by paragraphs (a) and (b) of section 10 of part A of 25 chapter 60 of the laws of 2012. The legislature does not intend for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14398-03-0A. 9749 2 1 subdivision (a) of section 10 of part A of chapter 60 of the laws of 2 2012 to apply to racing, pari-mutuel wagering and breeding law sections 3 107, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 129 and 4 paragraph b of subdivision 8 of section 212, each of which make specific 5 reference to "former" entities, for which references should not be 6 amended. 7 § 2. The opening paragraph of section 101 of the racing, pari-mutuel 8 wagering and breeding law, as added by section 1 of part A of chapter 60 9 of the laws of 2012, is amended to read as follows: 10 As used in this [article] chapter, the following terms shall have the 11 following meanings, unless the context requires otherwise: 12 § 3. Subdivision (b) of section 201 of the racing, pari-mutuel wager- 13 ing and breeding law, as amended by chapter 18 of the laws of 2008, is 14 amended to read as follows: 15 (b) Approval. No certificate of incorporation under this section wher- 16 ein the right to conduct running or steeplechase race meetings is 17 claimed, shall hereafter be filed without the approval of the [state18racing and wagering board] commission, indorsed thereon or annexed ther- 19 eto, stating that, in its opinion, the purposes of this article and the 20 public interest will be promoted by such incorporation, and that such 21 incorporation will be conducive to the interests of legitimate racing; 22 nor shall any certificate amending the said certificate of incorporation 23 in any particular or any certificate of merger affecting said corpo- 24 ration be filed without the approval of the [state racing and wagering25board] commission, indorsed thereon or annexed thereto stating that, in 26 its opinion, the purposes of this article and the public interest will 27 be promoted by such amendment or by such merger and that such amendment 28 or such merger will be conducive to the interests of legitimate racing. 29 § 4. Section 202 of the racing, pari-mutuel wagering and breeding law, 30 as amended by chapter 549 of the laws of 2013, is amended to read as 31 follows: 32 § 202. Restriction upon commencement of business. No business corpo- 33 ration organized under the provisions of this article shall engage in 34 the prosecution or management of its business until the whole of its 35 capital stock shall have been subscribed, nor until it shall have filed 36 in the offices where certificates of incorporation were filed, a further 37 certificate stating that the whole of its capital stock has been in good 38 faith subscribed, executed and acknowledged by its president or vice- 39 president and treasurer or secretary, and verified by them to the effect 40 that the statements contained in it are true. 41 Notwithstanding the foregoing, corporations organized pursuant to 42 section two hundred one of the not-for-profit corporation law as chari- 43 table corporations as defined in paragraph (a) of section one hundred 44 two (Definitions) of the not-for-profit corporation law shall not engage 45 in the prosecution or management of its business until its certificate 46 of incorporation has been accepted for filing by the secretary of state 47 and such confirmation of filing has been filed with the [board] commis- 48 sion and the franchise oversight board. 49 § 5. Section 204 of the racing, pari-mutuel wagering and breeding law, 50 as amended by chapter 18 of the laws of 2008, is amended to read as 51 follows: 52 § 204. Certificate of payment of stock. Except as provided in this 53 article, no business corporation hereafter organized under this article 54 or heretofore organized in pursuance of law for any purpose authorized 55 by this article, shall have any of the powers conferred by section two 56 hundred three of this article until [it] such corporation shall haveA. 9749 3 1 filed in the office or offices where its certificate of incorporation 2 was filed, a further certificate stating that its capital stock has been 3 fully paid in cash, and if claiming the right to conduct running race 4 meetings, that, except as may be authorized by the [board] commission, 5 it actually maintains a racetrack of not less than five-eighths of one 6 mile in length or circumference, the location of which shall be speci- 7 fied in such certificate. Such certificate shall be executed and 8 acknowledged by [its] such corporation's president or vice-president and 9 [its] such corporation's treasurer or secretary, and verified by them to 10 the effect that the statements contained in [it] such certificate are 11 true. In the case of racing courses to be used for running races or 12 steeplechases, a license from the [state racing and wagering board] 13 commission must also be obtained in the manner hereinafter provided, and 14 such license be filed with such certificate. 15 § 6. Section 205 of the racing, pari-mutuel wagering and breeding law, 16 as amended by chapter 18 of the laws of 2008, is amended to read as 17 follows: 18 § 205. License for running races and steeplechase meetings. Any non- 19 franchised corporation desiring to obtain the benefits of the provisions 20 of section two hundred three of this article, if proposing to conduct a 21 race course or race meeting for running races or steeplechases, may 22 annually apply to the [state racing and wagering board] commission for a 23 license to conduct running races and race meetings or steeplechases and 24 steeplechase meetings, as the case may be. If, in the judgment of such 25 [board] commission the public interest, convenience or necessity will be 26 served thereby and a proper case for the issuance of such license is 27 shown consistent with the purposes of this article and the best interest 28 of racing generally, [it] the commission may grant such license, for a 29 term within the calendar year, which shall specify the dates and period 30 of time during which, and the place where, the licensee may operate. The 31 fee for such license shall be one hundred dollars for each racing day, 32 payable upon issuance of license. In considering an application for a 33 license under this section, the [state racing and wagering board] 34 commission may give consideration to the number of licenses already 35 granted and to the location of the tracks previously licensed. Every 36 such license shall contain a condition that all running races or race 37 meetings conducted thereunder shall be subject to such reasonable rules 38 and regulations from time to time prescribed by the [board] commission, 39 designated as the "rules of racing". Before promulgating such rules of 40 racing or modifying or abrogating any of them, the [board] commission 41 shall give the jockey club, a corporation organized under the laws of 42 the state of New York, an opportunity to submit recommendations relative 43 to such rules for running races and race meetings, and to the national 44 steeplechase and hunt association, a corporation organized under the 45 laws of the state of New York, an opportunity to submit recommendations 46 relative to such rules for steeplechases and steeplechase meetings, and 47 the [board] commission may adopt, to the extent that it deems appropri- 48 ate, any rules so submitted by either of such corporations or by any 49 other nationally recognized association or corporation [which] that has 50 for its purpose the improvement of the breed. 51 § 7. Subdivisions 3, 4, 5, 7 and 8 of section 208 of the racing, pari- 52 mutuel wagering and breeding law, as added by chapter 18 of the laws of 53 2008, are amended to read as follows: 54 3. As a condition of franchise acceptance, the franchised corporation 55 shall make application with the [racing and wagering board] commission 56 for live thoroughbred racing dates at thoroughbred racing facilitiesA. 9749 4 1 located in Queens county, Saratoga county and jointly located in Nassau 2 and Queens counties in a manner substantially similar to the racing 3 dates presently undertaken. 4 4. As a condition of franchise acceptance, the franchised corporation 5 shall agree that it will conduct running races, steeplechases and race 6 meetings in accordance with the provisions thereof and that all running 7 races, steeplechases or race meetings conducted thereunder shall be 8 subject to such reasonable rules and regulations from time to time 9 prescribed by the [state racing and wagering board] gaming commission. 10 5. A franchise may be revoked and cancelled by the [state racing and11wagering board] commission only for the reasons and in the manner 12 prescribed under the provisions of sections two hundred twelve and two 13 hundred forty-four of this article. The action of the [state racing and14wagering board] commission in revoking a franchise shall be reviewable 15 in the supreme court in the manner provided by and subject to the 16 provisions of article seventy-eight of the civil practice law and rules. 17 7. Notwithstanding the provisions of section seven of the general 18 business law, or any other inconsistent provision of general, special or 19 local law, the [state racing and wagering board] commission shall speci- 20 fy annually the dates on which, and the hour of the first post time for 21 days during which, such franchised corporation may operate at the places 22 and for the full number of days specified in its franchise. 23 8. The [state racing and wagering board] commission shall permit the 24 franchised corporation to conduct pari-mutuel betting in the manner and 25 subject to the conditions prescribed by this chapter, at the racetracks 26 described in such racing franchise for the duration of such racing fran- 27 chise. 28 § 8. Section 209 of the racing, pari-mutuel wagering and breeding law, 29 as added by chapter 140 of the laws of 2008, is amended to read as 30 follows: 31 § 209. Examination of the books and accounts by the state comptroller. 32 Notwithstanding any other provision of this article, the state comp- 33 troller may from time to time examine the books and accounts of such 34 [franchise] franchised corporation, including its receipts, disburse- 35 ments, contracts, leases, loans, investments and any other matters 36 relating to its financial operations, including the franchised corpo- 37 ration's calculation of the franchise fee payment pursuant to the 38 provisions of subdivision one of section two hundred eight of this arti- 39 cle and report the results of each audit to the governor, the legisla- 40 ture, the attorney general, the franchise oversight board and the [state41racing and wagering board] commission. 42 § 9. Subdivision 1 of section 210-a of the racing, pari-mutuel wager- 43 ing and breeding law, as amended by chapter 18 of the laws of 2008, is 44 amended to read as follows: 45 1. No franchised corporation shall relinquish a franchise granted to 46 it pursuant to section two hundred six of this article at any time with- 47 in the term of any such franchise without giving separate written 48 notification of its intention to effect relinquishment by certified mail 49 return receipt requested to the franchise oversight board and the [state50racing and wagering board] commission not less than one hundred eighty 51 days prior to the date such franchised corporation proposes to be the 52 effective date of relinquishment. 53 § 10. Section 211 of the racing, pari-mutuel wagering and breeding law 54 is amended to read as follows: 55 § 211. Fair association, when entitled to privileges. Any state, coun- 56 ty or other fair association shall be entitled to the privilegesA. 9749 5 1 conferred by section two hundred four of this [chapter] article upon 2 filing in the offices wherein its certificate of incorporation is filed, 3 a certificate [which shall set] that sets forth its intention to avail 4 itself of such privileges; and any such state, county or other fair 5 association shall not be required to obtain any license or file any 6 other certificate. State, county and other fair associations entitled to 7 conduct trotting races may also conduct running races in connection 8 therewith, and the provisions of this article requiring a racetrack to 9 be of specified dimensions shall not apply to such association; but no 10 running races shall be conducted for more than five days on any track or 11 grounds, unless the license of the [state racing and wagering board] 12 commission therefor is first obtained. 13 § 11. Subdivision 6, subparagraph (iv) of paragraph a and paragraph b 14 of subdivision 8 of section 212 of the racing, pari-mutuel wagering and 15 breeding law, subdivision 6 as amended by chapter 688 of the laws of 16 2019, subparagraph (iv) of paragraph a and paragraph b of subdivision 8 17 as added by chapter 18 of the laws of 2008, are amended to read as 18 follows: 19 6. Within thirty days following the appointment of the members of the 20 franchise oversight board, the members of the oversight board shall 21 establish a local advisory board for each racing operation [comprised22of] comprising the following members to meet at least twice yearly: 23 a. The local advisory board for the Saratoga racetrack facility shall 24 [be comprised of] comprise fifteen members and include five designees 25 from each of the following: the board of supervisors, the mayor of the 26 city of Saratoga and the franchised corporation. 27 b. The local advisory board for the Aqueduct racetrack facility shall 28 [be comprised of] comprise fifteen members, nine of whom shall be desig- 29 nees of New York City Queens Community Board Ten, three designees of the 30 franchised corporation and three designees of the video lottery gaming 31 operator. 32 c. The local advisory board for the Belmont racetrack facility shall 33 [be comprised of] comprise fifteen members, to be appointed as follows: 34 (i) [Five] five members from Nassau county to be appointed by the 35 Nassau county executive. Four of such members must reside in the hamlet 36 of Elmont[.]; 37 (ii) [Two] two members from the town of Hempstead to be appointed by 38 the supervisor of the town of Hempstead. Both members must reside in the 39 hamlet of Elmont[.]; 40 (iii) [Two] two members to be appointed by the mayor of the village of 41 Floral Park, subject to village board approval[.]; 42 (iv) [One] one member to be appointed by the mayor of the village of 43 South Floral Park, subject to village board approval[.]; 44 (v) [Three] three members to be appointed by the New York Racing Asso- 45 ciation, Inc.; and 46 (vi) [Two] two members to be appointed by the New York City Queens 47 Community Board 13. 48 The members of the local advisory boards shall serve for a period of 49 two years. In the event of a vacancy occurring during a term of appoint- 50 ment by reason of death, resignation, disqualification or otherwise such 51 vacancy shall be filled for the unexpired term in the same manner as the 52 original appointment. The members of the local advisory board shall 53 serve without compensation, except that each member shall be allowed the 54 necessary and actual expenses incurred in the performance of his or her 55 duties pursuant to this section.A. 9749 6 1 (iv) evaluate, review and approve the racing franchisee's selection of 2 a vendor or vendors to contract with the franchised corporation for 3 provision of totalizator services, and manage, subject to the franchised 4 corporation's unilateral right to opt out, directly or indirectly, inte- 5 gration of any offered internet wagering platform. The franchise over- 6 sight board shall consider in its evaluation of any such proposed vendor 7 [their] the ability of such vendor to reduce the totalizator expenses 8 and general development and production costs of any internet wagering 9 platform of an authorized off-track betting corporation and the state 10 racing franchise holder. 11 b. Notwithstanding any other provision of this article, the franchised 12 corporation shall be entitled to make capital expenditures, except those 13 capital expenditures for the Saratoga Racecourse that may, on the advice 14 of the New York state historic preservation office, adversely impact any 15 historic structure that is included in or is eligible for inclusion in 16 the national or state register of historic places, to the physical plant 17 of the racetracks, grandstand, backstretch, parking and public areas set 18 forth in the New York Racing Association's capital expenditure plan 19 ("capital plan") filed with the [racing and wagering board] commission 20 in two thousand seven. Any material modification to the capital plan as 21 determined by the franchise oversight board and each future capital 22 investment plan for the tracks, grandstand, backstretch, parking and 23 public areas of the racetracks operated by the franchised corporation 24 involving the expenditure of more than five million dollars in the 25 aggregate shall require the prior approval of the franchise oversight 26 board. Within five years from the date of commencement of the video 27 lottery terminal operations at Aqueduct, and every five years thereaft- 28 er, the franchised corporation shall submit to the oversight board a 29 capital plan for the [five year] five-year period commencing on January 30 first of the following year. Such plans shall contain both the intended 31 object of expenditure and the proposed sources of financing. The fran- 32 chised corporation shall report to the franchise oversight board within 33 ninety days following the end of each fiscal year as to the amount spent 34 pursuant to the capital plan. 35 § 12. Subdivision 1 of section 216 of the racing, pari-mutuel wagering 36 and breeding law, as amended by chapter 18 of the laws of 2008, is 37 amended to read as follows: 38 1. Any franchised corporation desiring to grant, give, devise, or sell 39 any assets including tangible and intangible assets, racing facilities 40 and real estate shall apply to the [state racing and wagering board] 41 commission and to the franchise oversight board for approval of such 42 disposition, provided, however, that the approval of such [boards] 43 commission and such board shall not be necessary for the sale of proper- 44 ty, other than real property, [which] that is appropriately, customarily 45 and usually sold by the association in the normal course of its busi- 46 ness. If in the judgment of [each such] the commission and the franchise 47 oversight board, acting individually, the public interest, convenience 48 or necessity and the best interest of racing will be served thereby, 49 [each such] the commission and franchise oversight board shall each 50 enter an order granting approval of such disposition and of the terms 51 thereof. 52 § 13. Section 217 of the racing, pari-mutuel wagering and breeding 53 law, as amended by chapter 18 of the laws of 2008, is amended to read as 54 follows: 55 § 217. Revocation of licenses. If any corporation to which a license 56 shall be granted shall fail or refuse to comply with the provisions ofA. 9749 7 1 this chapter, or with the terms and conditions of its license, or if for 2 any other reason the continuance of such license shall not be deemed 3 conducive to the interests of legitimate racing, the [board] commission, 4 upon its own initiative or upon complaint of the jockey club, in the 5 case of race courses to be used for running races, or upon the complaint 6 of the national steeplechase and hunt association in the case of race 7 courses to be used for steeplechases, shall have the power to cancel and 8 revoke such license. Written notice of such complaint shall be given to 9 such corporation by [said board] the commission within five days after 10 receiving such complaint, or after determining to take action, which 11 notice shall specify a time and place of hearing thereon. If the [board] 12 commission cancels and revokes such license, then all powers exercised 13 under section two hundred three of this article by the corporation to 14 which such license was granted shall cease and determine. 15 § 14. Section 218 of the racing, pari-mutuel wagering and breeding 16 law, as amended by chapter 140 of the laws of 2008, is amended to read 17 as follows: 18 § 218. Stewards at race meetings. There shall be three stewards to 19 supervise each running race meeting conducted pursuant to sections two 20 hundred five and two hundred six of this article. One of such stewards 21 shall be the official steward of the [board] commission, one shall be 22 appointed by the jockey club or by the national steeplechase and hunt 23 association as may be appropriate, and one shall be appointed by the 24 corporation conducting such race meeting. Such stewards shall exercise 25 such powers and perform such duties at each race meeting as may be 26 prescribed by the rules of the [state racing and wagering board] commis- 27 sion. During the absence or inability to act of an official steward of 28 the [board] commission, or in the event of the failure or inability to 29 appoint either of the other two stewards, the powers and duties of such 30 steward shall be exercised and performed without compensation by a 31 member of the [board] commission designated by the [board] commission 32 for that purpose. 33 § 15. Section 219 of the racing, pari-mutuel wagering and breeding 34 law, as amended by chapter 18 of the laws of 2008, is amended to read as 35 follows: 36 § 219. Advertising or promotional material. Notwithstanding any other 37 provision of law, rule or regulation nothing herein shall be deemed to 38 authorize the stewards or the [racing and wagering board] commission to 39 promulgate any rule or regulation [which] that would prohibit a jockey 40 from wearing any advertising or promotional material on his or her 41 clothing. The wearing of such advertising or promotional material [will] 42 shall be permitted only when the owner of a horse for whom such jockey 43 is riding provides the jockey with prior written authorization. Notwith- 44 standing the foregoing, when a corporation, company or any other entity 45 sponsors a race or race day at any franchised corporation or any racing 46 association or corporation, such racing association may prohibit a jock- 47 ey from wearing advertising material that represents a competitor of 48 such sponsoring corporation, company or other entity. 49 § 16. Subdivisions 1, 2 and 3 of section 220 of the racing, pari-mutu- 50 el wagering and breeding law, subdivision 1 as amended by chapter 140 of 51 the laws of 2008 and subdivisions 2 and 3 as amended by chapter 18 of 52 the laws of 2008, are amended to read as follows: 53 1. For the purpose of maintaining a proper control over race meetings 54 conducted pursuant to sections two hundred five and two hundred six of 55 this article, the [state racing and wagering board] commission shall 56 license owners, which term shall be deemed to include [part owners]A. 9749 8 1 part-owners and lessees, trainers, assistant trainers and jockeys, jock- 2 ey agents, stable employees, and such other persons as the [board] 3 commission may by rule prescribe at running races and at steeplechases, 4 provided, however, that no such license shall be required for seasonal 5 employees hired solely to work for no longer than six weeks during the 6 summer meet at Saratoga racetrack. In the event that a proposed licensee 7 is other than a natural person, the [board] commission shall require by 8 regulation disclosure of the names and addresses of all owners of an 9 interest in such entity. The [board] commission may retain, employ or 10 appoint such officers, employees and agents, as it may deem necessary to 11 receive, examine and make recommendations, for the consideration of the 12 [board] commission, in respect of applications for such licenses; 13 prescribe their duties in connection therewith, and fix their compen- 14 sation therefor within the limitations prescribed by law. Each applicant 15 for a license shall pay to the [board] commission an annual license fee 16 as follows: owner's license, if a renewal, fifty dollars, and if an 17 original application, one hundred dollars; trainer's license, thirty 18 dollars; assistant trainer's license, thirty dollars; jockey's license, 19 fifty dollars; jockey agent's license, twenty dollars; and stable 20 employee's license, five dollars. Each applicant may apply for a [two21year] two-year or [three year] three-year license by payment to the 22 [board] commission of the appropriate multiple of the annual fee. The 23 [board] commission may by rule fix the license fees to be paid by other 24 persons required to be licensed by the rules of the [board] commission, 25 not to exceed thirty dollars per category. The application for the 26 license shall be in writing in such form as the [board] commission may 27 prescribe, and contain such information as the [board] commission may 28 require. The [board] commission shall henceforth cause all applicants 29 for licenses to be photographed and fingerprinted and may issue iden- 30 tification cards to licensees. Such fingerprints shall be submitted to 31 the division of criminal justice services for a state criminal history 32 record check, as defined in subdivision one of section three thousand 33 thirty-five of the education law, and may be submitted to the federal 34 bureau of investigation for a national criminal history record check. A 35 fee equal to the actual cost of issuance shall be charged for the 36 initial issuance of such identification cards. Each such license unless 37 revoked for cause shall be for the period of no more than one, two or 38 three years, determined by rule of the [board] commission, expiring on 39 the applicant's birth date. Licenses current on the effective date of 40 this provision shall not be reduced in duration by this provision. An 41 applicant who applies for a license that, if issued, would take effect 42 less than six months prior to the applicant's birth date may, by payment 43 of a fifty percent higher fee, receive a license which shall not expire 44 until the applicant's second succeeding birth date. All receipts of the 45 [board] commission derived from the operation of this section shall be 46 paid by it into the state treasury on or before the tenth day of each 47 month. All officials connected with the actual conduct of racing shall 48 be [approved] subject to approval by the [board] commission. 49 2. If the [state racing and wagering board shall find] commission 50 finds that the financial responsibility, experience, character and 51 general fitness of the applicant are such that the participation of such 52 person will be consistent with the public interest, convenience or 53 necessity and with the best interests of racing generally in conformity 54 with the purposes of this article, [it] the commission shall thereupon 55 grant a license. If the [board shall find] commission finds that theA. 9749 9 1 applicant fails to meet any of said conditions, it shall not grant such 2 license and it shall notify the applicant of the denial. 3 The [board] commission may refuse to issue or renew a license, or may 4 suspend or revoke a license issued pursuant to this section, if [it5shall find] the commission finds that the applicant, or any person who 6 is a partner, agent, employee or associate of the applicant, has been 7 convicted of a crime in any jurisdiction, or is or has been associating 8 or consorting with any person who has or persons who have been convicted 9 of a crime or crimes in any jurisdiction or jurisdictions or is consort- 10 ing or associating with or has consorted or associated with bookmakers, 11 touts, or persons of similar pursuits, or has himself or herself engaged 12 in similar pursuits, or is financially irresponsible, or has been guilty 13 of or attempted any fraud or misrepresentation in connection with 14 racing, breeding, or otherwise, or has violated or attempted to violate 15 any law with respect to racing in any jurisdiction or any rule, regu- 16 lation or order of the [board] commission, or shall have violated any 17 rule of racing which shall have been approved or adopted by the [board] 18 commission, or has been guilty of or engaged in similar, related or like 19 practices. 20 3. No license shall be revoked unless such revocation is by [board] 21 commission determination upon a meeting of the [board] commission. Prior 22 to revocation or suspension of license a licensee shall be entitled to a 23 hearing on notice except that summary suspension where emergency action 24 is required in accordance with subdivision three of section four hundred 25 one of the state administrative procedure act may be ordered. In the 26 conduct of such hearing the [board] commission shall not be bound by 27 technical rules of evidence but all evidence offered before the [board] 28 commission shall be reduced to writing, and such evidence together with 29 the exhibits, if any, and the findings of the [board] commission, shall 30 be permanently preserved and shall constitute the record of the [board] 31 commission in such case. Such hearing may be presided over by the 32 [chairman] chair of the [board] commission or by any member or by an 33 officer of the [board] commission designated by the [chairman] chair in 34 writing to act as hearing officer and such person or persons may issue 35 subpoenas for witnesses and administer oaths to witnesses. The hearing 36 officer, at the conclusion of the hearing shall make findings [which] 37 that, if concurred in by [two members] a majority of the [board] commis- 38 sion, shall become the findings of the [board] commission. The action of 39 the [board] commission in refusing, suspending or in revoking a license 40 shall be reviewable in the supreme court in the manner provided by the 41 provisions of article seventy-eight of the civil practice law and rules. 42 § 17. Section 221 of the racing, pari-mutuel wagering and breeding 43 law, as amended by chapter 325 of the laws of 2004 and as renumbered by 44 chapter 18 of the laws of 2008, paragraph a of subdivision 2 as amended 45 by chapter 18 of the laws of 2008, paragraph b of subdivision 2 as added 46 by chapter 325 of the laws of 2004, subdivision 6 as amended by section 47 1 of part SS of chapter 59 of the laws of 2017, the opening paragraph of 48 subdivision 7 as amended by section 1 of part ZZ of chapter 59 of the 49 laws of 2019, subdivision 7 as amended by section 2 of part SS of chap- 50 ter 59 of the laws of 2017 and subdivision 12 as amended and subdivi- 51 sions 13 and 14 as added by section 3 of part SS of chapter 59 of the 52 laws of 2017, is amended to read as follows: 53 § 221. New York Jockey Injury Compensation Fund, Inc. 1. There is 54 created a not-for-profit corporation to be known as The New York Jockey 55 Injury Compensation Fund, Inc. and referred to in this section as "the 56 fund". To the extent that the provisions of the not-for-profit corpo-A. 9749 10 1 ration law do not conflict with the provisions of this article, or the 2 plan of operation of the fund hereunder, the not-for-profit corporation 3 law shall apply to the fund and the fund shall be a type C corporation 4 pursuant to the not-for-profit corporation law. If an applicable 5 provision of this article or the plan of operation of the fund hereunder 6 relates to a matter embraced in a provision of the not-for-profit corpo- 7 ration law but is not in conflict therewith, both provisions shall 8 apply. The fund shall perform its functions under the plan of operation 9 established and approved under this section and shall exercise its 10 powers through a board of directors established under this section. 11 2. a. The board of directors shall consist of seven members, six of 12 whom are to be selected from the general membership of the fund in a 13 manner and for terms to be prescribed by the initial fund board. For the 14 purposes of establishing and organizing the fund, at least one hundred 15 fifty days prior to the date that this article shall take effect, the 16 boards of directors of the horsemen's organizations representing at 17 least fifty-one percent of the horsemen utilizing the facilities of any 18 racing corporation, shall designate six members who shall serve as the 19 initial board of directors of the fund. The seventh member shall be 20 elected every two years on the second Tuesday of June, or as designated 21 by the fund, pursuant to paragraph b of this subdivision by a vote of 22 jockeys and apprentice jockeys duly licensed pursuant to this article or 23 article four of this chapter. The members of the board shall elect annu- 24 ally from the members a chairperson and a vice-chairperson who shall act 25 as chairperson in the absence of the chairperson. Each member of the 26 board of directors shall have equal voting rights with the others. 27 b. (i) The election of the seventh board member shall be conducted by 28 an election administrator selected by the fund no later than November 29 fifteenth of the year preceding the election. The fund shall inform the 30 [state racing and wagering board] commission of its selection thereof. 31 The fund shall enter into a contract with the election administrator at 32 least one hundred twenty days prior to the date of the election. The 33 fund shall be responsible for costs associated with the contract with 34 the election administrator. 35 (ii) The election administrator may be the individual, organization, 36 or corporation under contract with the fund to provide management 37 services as of November fifteenth of the year preceding the election. 38 The election administrator shall devise and provide nominating petitions 39 to candidates, shall validate such petitions upon submittal by verifying 40 the eligibility of the jockeys and apprentice jockeys to sign such 41 petitions, and shall be responsible for the printing, dissemination, 42 validation, and tabulation of ballots for such election. The [state43racing and wagering board] commission shall provide a list of all duly 44 licensed jockeys and apprentice jockeys to the fund for purposes of 45 validating nominating petitions and ballots. The election administrator 46 shall report the results of the election to the [state racing and wager-47ing board] commission, which shall then certify the election of the 48 seventh board member. 49 (iii) Any individual seeking election pursuant to this subdivision 50 shall provide a nominating petition containing the signatures of no 51 fewer than ten duly licensed jockeys or apprentice jockeys eligible to 52 sign such petition. To be eligible to sign such petition, a jockey or 53 apprentice jockey shall possess a valid jockey's license as of March 54 first in the year of the election. Such petitions may be signed by 55 eligible jockeys or apprentice jockeys beginning April first of an 56 election year and shall be returned to the election administrator forA. 9749 11 1 validation no later than the first Monday of May of an election year. If 2 a jockey's license expires between March second and the first Monday of 3 May and has not been renewed by the latter date, the election adminis- 4 trator shall invalidate such jockey's signature on the nominating peti- 5 tion so submitted. 6 (iv) To be eligible to vote in the election, jockeys and apprentice 7 jockeys must possess a valid jockey's license at least thirty days prior 8 to the date of the election. If such jockey's license expires during the 9 thirty days preceding the election and such license has not been renewed 10 as of the date of the election, such jockey shall not be eligible to 11 vote. 12 (v) If, following an election of the seventh board member, such member 13 is unable to discharge his or her duties as a board member or is other- 14 wise unable to complete his or her term, the fund's chairperson shall 15 offer the seventh board member's position to the candidate who received 16 the highest total number of votes following that received by the elected 17 board member during the election. If such candidate declines to accept 18 such position, the chairperson shall offer the position to each remain- 19 ing candidate in descending order of the total number of votes received 20 by each such candidate during the election until a candidate has 21 accepted the position. If none of the remaining candidates has accepted 22 the position, the chairperson may appoint an interim member to the posi- 23 tion for such time as intervenes until a new seventh board member is 24 elected. 25 3. Members of the board of directors shall serve without compensation 26 for their services, but shall be entitled to reimbursement for actual 27 and necessary expenses incurred in the performance of their official 28 duties. 29 4. Members of the board of directors, except as otherwise provided by 30 law, may engage in private employment, or in a profession or business. 31 5. The affirmative vote of four members of the board of directors 32 shall be necessary for the transaction of any business or the exercise 33 of any power or function of the fund. The fund may delegate to one or 34 more of its members, or its officers, agents or employees, such powers 35 and duties as it may deem proper. 36 6. (a) The fund shall secure workers' compensation insurance coverage 37 on a blanket basis for the benefit of all jockeys, apprentice jockeys 38 and exercise persons licensed pursuant to this article or article four 39 of this chapter who are employees under section two of the workers' 40 compensation law, and may elect, with the approval of the [gaming] 41 commission, to secure workers' compensation insurance for employees of 42 licensed trainers or owners. In the event the fund elects, with the 43 approval of the [gaming] commission, to secure workers' compensation 44 insurance for employees of licensed trainers or owners, the fund may 45 discontinue to secure workers' compensation insurance for employees of 46 licensed trainers or owners only upon prior approval of the [gaming] 47 commission. 48 (b) The fund may elect, with the approval of the [gaming] commission, 49 to secure workers' compensation insurance coverage through a form of 50 self-insurance, provided that the fund has met the requirements of the 51 workers' compensation board, including, without limitation, subdivision 52 three of section fifty of the workers' compensation law. 53 7. In order to pay the costs of the insurance required by this section 54 and by the workers' compensation law and to carry out its other powers 55 and duties and to pay for any of its liabilities under section four- 56 teen-a of the workers' compensation law, the New York Jockey InjuryA. 9749 12 1 Compensation Fund, Inc. shall ascertain the total funding necessary and 2 establish the sums that are to be paid by all owners and trainers 3 licensed or required to be licensed under section two hundred twenty of 4 this article, to obtain the total funding amount required annually. In 5 order to provide that any sum required to be paid by an owner or trainer 6 is equitable, the fund shall establish payment schedules [which] that 7 reflect such factors as are appropriate, including where applicable, the 8 geographic location of the racing corporation at which the owner or 9 trainer participates, the duration of such participation, the amount of 10 any purse earnings, the number of horses involved, or such other factors 11 as the fund shall determine to be fair, equitable and in the best inter- 12 ests of racing. In no event shall the amount deducted from an owner's 13 share of purses exceed two [per centum] percent; provided, however, for 14 two thousand nineteen the New York Jockey Injury Compensation Fund, Inc. 15 may use up to two million dollars from the account established pursuant 16 to subdivision nine of section two hundred eight of this article to pay 17 the annual costs required by this section and the funds from such 18 account shall not count against the two [per centum] percent of purses 19 deducted from an owner's share of purses. The amount deducted from an 20 owner's share of purses shall not exceed one [per centum] percent after 21 April first, two thousand twenty. In the cases of multiple ownerships 22 and limited racing appearances, the fund shall equitably adjust the sum 23 required. 24 The [gaming] commission shall, as a condition of racing, require any 25 racing corporation or any quarterhorse racing association or corporation 26 authorized under this chapter to conduct pari-mutuel betting at a race 27 meeting or races run thereat, to require that each trainer [utilizing] 28 using the facilities of such association or corporation and each owner 29 racing a horse shall place or have placed on deposit with the horsemen's 30 bookkeeper of such racing association or corporation, an amount to be 31 established and paid in a manner to be determined by the fund. 32 Should the fund determine that the amount [which] that has been 33 collected in the manner prescribed is inadequate to pay the annual costs 34 required by this section, it shall notify the [gaming] commission of the 35 deficiency and the amount of the additional sum or sums necessary to be 36 paid by each owner and/or trainer in order to cover such deficiency. The 37 [gaming] commission shall, as an additional condition of racing, direct 38 any racing corporation or any quarterhorse racing association or corpo- 39 ration authorized under this chapter to conduct pari-mutuel betting at a 40 race meeting or races run thereat, to require each trainer and owner to 41 place such additional sum or sums on deposit with the respective 42 horsemen's bookkeeper. 43 All amounts collected by a horsemen's bookkeeper pursuant to this 44 section shall be transferred to the fund created under this section and 45 shall be used by the fund to purchase workers' compensation insurance 46 for jockeys, apprentice jockeys and exercise persons licensed pursuant 47 to this article or article four of this chapter who are employees under 48 section two of the workers' compensation law, and at the election of the 49 fund, with the approval of the [gaming] commission, to secure workers' 50 compensation insurance for employees of licensed trainers or owners to 51 pay for any of its liabilities under section fourteen-a of the workers' 52 compensation law and to administer the workers' compensation program for 53 such jockeys, apprentice jockeys and exercise persons and, if approved 54 by the [gaming] commission, employees of licensed trainers or owners 55 required by this section and the workers' compensation law.A. 9749 13 1 In the event the fund elects, with the approval of the [gaming] 2 commission, to secure workers' compensation insurance for employees of 3 licensed trainers or owners, the fund may elect to have the sum required 4 to be paid by an owner or trainer pursuant to this section be subject to 5 an examination of workers' compensation claims attributable under the 6 fund to each such owner or trainer, including the frequency and severity 7 of accidents and injuries. 8 8. a. The fund shall submit to the [state racing and wagering board] 9 commission a plan of operation and any amendments thereto necessary or 10 suitable to assure the fair, reasonable and equitable administration of 11 the fund. Such amendments, if any, relating to the assessment of the 12 costs of insurance for the subsequent year, other than deficiency 13 assessments, shall be submitted to the [board] commission no later than 14 November fifteenth of each year. The plan of operation and any amend- 15 ments thereto shall become effective upon approval in writing by the 16 [board] commission, and shall be published by the fund upon such 17 approval in one or more trade publications likely to be obtained by 18 owners and trainers. 19 b. If the fund fails to submit a suitable plan of operation within one 20 hundred eighty days following the effective date of this section or if 21 at any time thereafter the fund fails to submit suitable amendments to 22 the plan, the [board] commission shall, after notice and hearing, adopt 23 and promulgate such reasonable rules as are necessary or advisable to 24 effectuate the provisions of this article. Such rules shall continue in 25 force until modified by the [board] commission or superseded by a plan 26 submitted by the fund and approved by the [board] commission. 27 c. The plan of operation shall constitute the by-laws of the fund and 28 shall, in addition to requirements enumerated elsewhere in this article: 29 (i) [Establish] establish procedures for handling the assets of the 30 fund[.]; 31 (ii) [Establish] establish regular places and times for meetings of 32 the board of directors[.]; 33 (iii) [Establish] establish procedures for records to be kept of all 34 financial transactions of the fund, its agents and the board of direc- 35 tors[.]; 36 (iv) [Establish] establish a formula for determining the appropriate 37 amount of the assessments under this section[.]; 38 (v) [Establish] establish the rules and procedures to govern the 39 conduct of an election held pursuant to paragraph b of subdivision two 40 of this section[.]; and 41 (vi) [Contain] contain such additional provisions as the [board] 42 commission or fund may deem necessary or proper for the execution of the 43 powers and duties of the fund. 44 9. The fund shall be subject to examination and regulation by the 45 [board] commission. The fund shall submit to the [board] commission not 46 later than May first of each year, a financial report for the preceding 47 calendar year in a form approved by the [board] commission and a report 48 of its activities during the preceding calendar year. 49 10. The fund shall be exempt from payment of all fees and all taxes 50 levied by this state or any of its subdivisions, except taxes levied on 51 real property. 52 11. The fund shall purchase such insurance as necessary to protect any 53 director, officer, agent or other representative from liability. 54 12. For purposes of this section, the term "employees of licensed 55 trainers or owners" shall have the same meaning as subdivision twenty- 56 four of section two of the workers' compensation law.A. 9749 14 1 13. a. There is created a racing safety committee to review the risk 2 management report submitted to the commission by the fund on or about 3 September thirtieth, two thousand sixteen and to make non-binding recom- 4 mendations for the implementation of the safety proposals and initi- 5 atives set forth in such report. Such committee shall consist of seven 6 members, each to serve a term of three years, with one member each 7 appointed by: 8 (i) the fund; 9 (ii) the [gaming] commission; 10 (iii) the franchised corporation; 11 (iv) the racing association or corporation licensed pursuant to this 12 article or article four of this chapter to operate the racing and train- 13 ing facilities at Finger Lakes racetrack; 14 (v) the horsemen's organization representing at least fifty-one 15 percent of the owners and trainers using the facilities of the fran- 16 chised corporation; 17 (vi) the horsemen's organization representing at least fifty-one 18 percent of the owners and trainers using the facilities of the Finger 19 Lakes racetrack; and 20 (vii) the Jockeys' Guild. 21 The member of the racing safety committee appointed by the fund shall 22 serve as chairperson and the member of the racing safety committee 23 appointed by the commission shall serve as vice-chairperson. Members of 24 the racing safety committee shall have equal voting rights. 25 b. The racing safety committee shall meet within ninety days following 26 the effective date of this subdivision to review and discuss the imple- 27 mentation of the recommendations contained in the risk management report 28 submitted to the [gaming] commission by the fund on or about September 29 thirtieth, two thousand sixteen. The racing safety committee shall meet 30 on or after July first, two thousand seventeen, and at least annually 31 thereafter, to review the workers' compensation loss information and the 32 status of safety-related findings and recommendations and to develop an 33 annual strategic plan to address identified safety issues. 34 c. The members appointed pursuant to subparagraph (iii) and (iv) of 35 paragraph a of this subdivision, in consultation with the other members 36 of the racing safety committee, shall: 37 (i) Within one hundred eighty days following the effective date of 38 this subdivision, for each track, develop safety rules for training 39 activities to be documented and communicated, in both English and Span- 40 ish, to jockeys, apprentice jockeys, and exercise persons licensed 41 pursuant to this article or article four of this chapter who are employ- 42 ees under section two of the workers' compensation law, and at the 43 election of the fund, with the approval of the [gaming] commission, 44 employees of licensed trainers or owners. Such safety rules shall 45 include, but not be limited to, proper usage of personal protective 46 equipment, required response to loose horses, prohibition of cell phone 47 use while mounted on a horse, general requirements for jogging, gallop- 48 ing, breezing, ponying a horse, and starting gate safety protocols. 49 Refresher training related to such safety rules shall be required at the 50 start of each meet. 51 (ii) Prior to the start of each meet, following the effective date of 52 this subdivision, meet with trainers or their representatives to discuss 53 and address identified safety issues. 54 (iii) Within one hundred eighty days following the effective date of 55 this subdivision, for each track, develop a written, documented emergen- 56 cy response plan to address response protocols to on-track accidents andA. 9749 15 1 incidents, which, at a minimum, shall include detailed information 2 regarding roles and responsibilities for individuals who are responsible 3 for track-related accidents and incidents, including, but not limited 4 to, outriders, emergency medical technicians/paramedics, ambulance driv- 5 ers, security, and veterinary staff and clockers. 6 (iv) Within two hundred ten days following the effective date of this 7 subdivision, communicate the emergency response plan to all on-track 8 personnel as part of new hire orientation and job assignment. 9 (v) Within two hundred ten days following the effective date of this 10 subdivision, and at least once annually thereafter, for each track, 11 conduct a mock emergency response drill for on-track accidents prior to 12 the opening of each race meet. Such emergency response drill shall be 13 filmed and used for education and training purposes for personnel, 14 including in new hire orientation, and to assess the performance of 15 individuals involved in the emergency response. 16 (vi) Within one hundred eighty days following the effective date of 17 this subdivision, upgrade the current level of emergency medical respon- 18 ders from emergency medical technicians to paramedics. 19 14. The fund and the [gaming] commission shall have such power as is 20 necessary to implement the provisions of this section. 21 § 18. Subdivision 1 and the opening paragraph and paragraph f of 22 subdivision 2 of section 221-a of the racing, pari-mutuel wagering and 23 breeding law, as amended by section 1 of part OO of chapter 60 of the 24 laws of 2016, are amended as follows: 25 1. A franchised corporation shall, as a condition of racing, establish 26 a program to administer the purchase of health insurance for eligible 27 jockeys. 28 Such program shall be funded through the deposit of one and one-half 29 percent of the gross purse enhancement amount from video lottery gaming 30 at a thoroughbred track pursuant to paragraph two of subdivision b and 31 paragraph one of subdivision f of section sixteen hundred twelve of the 32 tax law. The franchised corporation shall establish a segregated account 33 for the receipt of these monies and these monies shall remain separate 34 from any other funds. Any corporation or association licensed pursuant 35 to this article shall pay into such account any amount due within ten 36 days of the receipt of revenue pursuant to section sixteen hundred 37 twelve of the tax law. Any portion of such funding to the account unused 38 during a calendar year, less an amount sufficient to cover anticipated 39 premium liabilities over the next sixty days, shall be returned on a pro 40 rata basis in accordance with the amounts originally contributed and 41 shall be used for the purpose of enhancing purses at such tracks. 42 Provided, however, if a corporation or association licensed pursuant to 43 this article provides an alternative source of funding for this program, 44 an amount equal to this alternative funding, but not in excess of the 45 amount originally contributed during the year from the gross purse 46 enhancement amount from video lottery gaming attributable to such corpo- 47 ration or association, shall be returned to the corporation or associ- 48 ation and used for the purpose of enhancing purses at such track. 49 Provided, further, any such alternative source of funding must be 50 approved by the [gaming] commission. 51 The franchised corporation shall enter into a memorandum of under- 52 standing with the jockey's organization that represents at least fifty- 53 one percent of eligible active jockeys establishing a plan of operation 54 for the program, provided that such memorandum of understanding shall be 55 approved by the [gaming] commission upon a determination that such memo- 56 randum of understanding meets the statutory requirements of this sectionA. 9749 16 1 and is in the best interest of racing and shall include, but not be 2 limited to, the following conditions: 3 f. the [gaming] commission shall have the following powers: 4 (i) to rule on eligibility in the event of a denial of coverage pursu- 5 ant to paragraph e of this subdivision. In the event of a denial of 6 coverage, such individual denied eligibility may appeal to the [gaming] 7 commission; 8 (ii) to make a determination if an individual would have qualified 9 pursuant to subparagraph (i) of paragraph e of this subdivision in the 10 event that the individual suffers an injury and contends that he or she 11 would have qualified had they not suffered such injury; and 12 (iii) to audit the books and records of the program. 13 § 19. Section 225 of the racing, pari-mutuel wagering and breeding 14 law, as amended by chapter 18 of the laws of 2008, is amended to read as 15 follows: 16 § 225. Registration of race horses. The true name, sex and age, and 17 also the pedigree, unless such pedigree is unknown, of every horse, 18 mare, gelding, colt or filly shall be registered with the jockey club, 19 United States trotting association, American quarter horse association, 20 the national steeplechase and hunt association or such other entity as 21 the [racing and wagering board] commission may designate before it shall 22 be eligible to compete in any race conducted under a license or fran- 23 chise of the [state racing and wagering board] commission and such name 24 shall continue to be its true name unless and until the same shall be 25 changed according to the rules and regulations of such organization. The 26 class to which any such animal belongs for the purpose of the entry or 27 competition in any race shall be determined by the public performance 28 thereof in former contests or trials of speed, as prescribed by the 29 printed rules of the person, association or corporation sponsoring such 30 race. 31 § 20. Section 228 of the racing, pari-mutuel wagering and breeding 32 law, as amended by chapter 18 of the laws of 2008 and the opening para- 33 graph of subdivision 2 as amended by chapter 122 of the laws of 2019, is 34 amended to read as follows: 35 § 228. Pension plans for backstretch employees. 1. The [state racing36and wagering board] commission may, as a condition of racing, require 37 all trainers and owners engaged in racing at meetings of any corporation 38 subject to its jurisdiction to participate in a pension plan or trust 39 established, or which may be established, by trainers and owners for the 40 benefit of stable employees (backstretch workers) regularly employed at 41 such meetings; [provided that the board shall find] if the commission 42 finds that participation in the plan by all such owners and trainers is 43 in the best interests of racing and [provided,] further finds, [that the44board shall find,] based upon certification by the trustees of such 45 plan, that at least eighty percent of such trainers and owners have 46 agreed in writing to participate, or are, in fact, participating there- 47 in. 48 2. The [New York state gaming] commission shall, as a condition of 49 racing, require any franchised corporation and every other corporation 50 subject to its jurisdiction to withhold one percent of all purses, 51 except that for the franchised corporation, starting on September first, 52 two thousand seven and continuing through August thirty-first, two thou- 53 sand twenty, two percent of all purses shall be withheld, and, in the 54 case of the franchised corporation, to pay such sum to the horsemen's 55 organization or its successor that was first entitled to receive 56 payments pursuant to this section in accordance with rules of theA. 9749 17 1 commission adopted effective November third, nineteen hundred eighty- 2 three representing at least fifty-one percent of the owners and trainers 3 [utilizing] using the facilities of such franchised corporation, on the 4 condition that such horsemen's organization shall expend as much as is 5 necessary, but not to exceed one-half of one percent of such total sum, 6 to acquire and maintain the equipment required to establish a program at 7 a state college within this state with an approved equine science 8 program to test for the presence of steroids in horses, provided further 9 that the qualified organization shall also, in an amount to be deter- 10 mined by its board of directors, annually include in its expenditures 11 for benevolence programs, funds to support an organization providing 12 services necessary to backstretch employees, and, in the case of every 13 other corporation, to pay such one percent sum of purses to the 14 horsemen's organization or its successor that was first entitled to 15 receive payments pursuant to this section in accordance with rules of 16 the commission adopted effective May twenty-third, nineteen hundred 17 eighty-six representing at least fifty-one percent of the owners and 18 trainers [utilizing] using the facilities of such corporation. 19 In either case, any other horsemen's organization may apply to the 20 [board] commission to be approved as the qualified organization to 21 receive payment of the one percent of all purses by submitting to the 22 [board] commission proof of both, that (i) it represents more than 23 fifty-one percent of all the owners and trainers [utilizing] using the 24 same facilities and (ii) the horsemen's organization previously approved 25 as qualified by the [board] commission does not represent fifty-one 26 percent of all the owners and trainers [utilizing] using the same facil- 27 ities. If the [board] commission is satisfied that the documentation 28 submitted with the application of any other horsemen's organization is 29 conclusive with respect to [items] subparagraphs (i) and (ii) of this 30 paragraph, [it] the commission may approve the applicant as the quali- 31 fied recipient organization. 32 In the best interests of racing, upon receipt of such an application, 33 the [board] commission may direct the payments to the previously quali- 34 fied horsemen's organization to continue uninterrupted, or it may direct 35 the payments to be withheld and placed in interest-bearing accounts for 36 a period not to exceed ninety days, during which time the [board] 37 commission shall review and approve or disapprove the application. Funds 38 held in such manner shall be paid to the organization approved by the 39 [board] commission. In no event shall the [board] commission accept 40 more than one such application in any calendar year from the same 41 horsemen's organization. 42 The funds authorized to be paid by the [board] commission are to be 43 used exclusively for the benefit of those horsemen racing in New York 44 state through the administrative purposes of such qualified organiza- 45 tion, benevolent activities on behalf of backstretch employees, and for 46 the promotion of equine research. 47 § 21. Section 229 of the racing, pari-mutuel wagering and breeding 48 law, as amended by chapter 18 of the laws of 2008, is amended to read as 49 follows: 50 § 229. Backstretch employees drug and alcohol rehabilitation eligibil- 51 ity. Any licensed not-for-profit organization providing drug and alcohol 52 rehabilitation services to backstretch employees shall receive informa- 53 tion concerning available funding and existing programs from a coordi- 54 nated effort of the [board] commission and division of substance abuse 55 services.A. 9749 18 1 § 22. Section 232 of the racing, pari-mutuel wagering and breeding 2 law, as separately amended by chapter 18 and chapter 530 of the laws of 3 2008, is amended to read as follows: 4 § 232. License to conduct pari-mutuel betting at race meetings for 5 running races or steeplechases. 1. Any corporation, at the time of 6 making application to the [state racing and wagering board] commission 7 for a license to conduct a race course or a race meeting for running 8 races or steeplechases, or at such subsequent time as the [board] 9 commission may permit, may apply to such [board] commission for a 10 license to conduct at such race meeting pari-mutuel betting on the races 11 to be run thereat. The [board] commission may prescribe the form in 12 which such application shall be made and the information to be furnished 13 by such corporation. If the [board be] commission is satisfied from such 14 application, or from other sources of information, that the racetrack of 15 such corporation for which such application is made has facilities and 16 equipment sufficient to accommodate its probable number of patrons, [it] 17 the commission shall issue to such corporation a license to conduct 18 pari-mutuel betting in the manner and subject to the conditions 19 prescribed by this chapter, at the racetrack described in such license 20 on the days specified in such license. 21 2. The refusal of an application for such license shall be preceded by 22 notice and an opportunity to be heard. In the conduct of such hearing 23 the [board] commission shall not be bound by technical rules of evidence 24 but all evidence offered before the [board] commission shall be reduced 25 to writing, and such evidence together with the exhibits, if any, and 26 the findings of the [board] commission, shall be permanently preserved 27 and shall constitute the record of the [board] commission in such case. 28 Such hearing may be presided over by the [chairman] chair of the [board] 29 commission or by any member or by an officer of the [board] commission 30 designated by the [chairman] chair in writing to act as hearing officer 31 and such person or persons may issue subpoenas for witnesses and admin- 32 ister oaths to witnesses. The hearing officer, at the conclusion of the 33 hearing shall make findings which, if concurred in by [two members] a 34 majority of the [board] commission, shall become the findings of the 35 [board] commission. The action of the [board] commission in refusing a 36 license shall be reviewable in the supreme court in the manner provided 37 by the provisions of article seventy-eight of the civil practice law and 38 rules. 39 § 23. Section 233 of the racing, pari-mutuel wagering and breeding 40 law, as amended by chapter 18 of the laws of 2008, is amended to read as 41 follows: 42 § 233. Bond required of corporation conducting pari-mutuel betting. 1. 43 Every corporation franchised or licensed by the [state racing and wager-44ing board] commission to conduct pari-mutuel betting, annually and 45 before the opening of any race meeting, shall execute and file with the 46 state comptroller, a bond to the state in a penalty to be fixed by the 47 commissioner of taxation and finance not exceeding five hundred thousand 48 dollars, with sureties approved by the attorney general, that it will 49 keep its books and records and make reports as required by this chapter, 50 that it will pay to the state all taxes imposed by this chapter, that it 51 will distribute to the patrons of pari-mutuel pools conducted by it all 52 sums due upon presentation of winning tickets held by them, and that it 53 will otherwise comply with all the provisions of this chapter in 54 relation to the conduct of races and of pari-mutuel betting on its race- 55 track.A. 9749 19 1 2. In addition hereto, every such corporation first licensed or fran- 2 chised after January first, nineteen hundred eighty-six, annually and 3 before the opening of any race meeting shall execute and file with the 4 state comptroller, a bond to the state in a penalty to be fixed by the 5 [board] commission not exceeding five hundred thousand dollars, with 6 sureties approved by the attorney general, that [it] such corporation 7 will make all purse payments advertised and offered as premiums, prizes 8 or awards to owners of horses competing in races at such track within 9 one week of such race, or, if such payment is ordered held by the 10 [board] commission pending investigation by it of any race, into a trust 11 account pending completion of such investigation. 12 § 24. Section 234 of the racing, pari-mutuel wagering and breeding 13 law, as amended by chapter 18 of the laws of 2008, is amended to read as 14 follows: 15 § 234. Place and manner of conducting pari-mutuel betting. Any corpo- 16 ration licensed or franchised to conduct pari-mutuel betting at a horse 17 race meeting shall provide a place or places within the race meeting 18 grounds or enclosure at which such licensee or franchisee shall conduct 19 the pari-mutuel system of betting by its patrons on the results of the 20 horse races at such meeting. Such place or places shall be provided with 21 necessary equipment for issuing or vending pari-mutuel tickets, and 22 adding machine equipment and a device capable of accurate and speedy 23 determination of the amount of money in each pool and on each horse and 24 the amount of award or dividend to winning patrons and displaying the 25 same to its patrons. Such place shall also be equipped with automatic or 26 hand-operated machinery for displaying on a mutuel indicator in plain 27 view of the public, the total amount of sales separately for straight, 28 place and show on every race and on each horse in such race. The machine 29 or mutuel indicator shall also display the approximate straight odds on 30 each horse in any race; the value of a two-dollar winning mutuel ticket, 31 straight, place and show, on the first three horses in any race; the 32 elapsed time of the race; the value of a two-dollar daily double ticket, 33 if a daily double be conducted; and any other information that may be 34 necessary for the guidance of the general public that the [state racing35and wagering board] commission may require. All such machines and equip- 36 ment must be approved by the [board] commission and the department of 37 taxation and finance before being used, but the [board] commission shall 38 not require the installation of any particular make of mechanical or 39 electrical equipment. 40 § 25. Section 235 of the racing, pari-mutuel wagering and breeding 41 law, as amended by chapter 18 of the laws of 2008, is amended to read as 42 follows: 43 § 235. Rules for the conduct of pari-mutuel betting. 1. The [state44racing and wagering board] commission shall make rules regulating the 45 conduct of pari-mutuel betting, as authorized pursuant to this chapter. 46 2. The rules shall provide that all winning pari-mutuel tickets must 47 be presented for payment before April first of the year following the 48 year of their purchase and failure to present any such ticket within the 49 prescribed period of time shall constitute a waiver of the right to 50 participate in the award or dividend. 51 3. The department of taxation and finance is hereby charged with the 52 financial administration of pari-mutuel betting as herein described and 53 as supplemented by the rules and regulations of the [state racing and54wagering board] commission. The department of taxation and finance 55 shall have authority to prescribe the forms and the system of accounting 56 to be employed and through its representatives shall at all times haveA. 9749 20 1 access to the issuing or vending machines, the adding machines and all 2 other pari-mutuel betting equipment. 3 § 26. Subdivisions 1, 2 and 3 of section 236 of the racing, pari-mutu- 4 el wagering and breeding law, subdivision 1 as amended by section 1 of 5 part BB of chapter 60 of the laws of 2016, and subdivisions 2 and 3 as 6 amended by chapter 18 of the laws of 2008, are amended to read as 7 follows: 8 1. Every corporation authorized under this chapter to conduct pari-mu- 9 tuel betting at a race meeting on races run thereat, except as provided 10 in section two hundred thirty-eight of this article with respect to the 11 franchised corporation, shall distribute all sums deposited in any pari- 12 mutuel pool to the holders of winning tickets therein, providing such 13 tickets be presented for payment before April first of the year follow- 14 ing the year of their purchase, less an amount that shall be established 15 and retained by such racing corporation of between fourteen to twenty 16 percent of the total deposits in pools resulting from regular on-track 17 bets and less sixteen to twenty-two percent of the total deposits in 18 pools resulting from multiple on-track bets and less twenty to thirty 19 percent of the total deposits in pools resulting from exotic on-track 20 bets and less twenty to thirty-six percent of the total pools resulting 21 from super exotic on-track bets, plus the breaks. The retention rate to 22 be established is subject to the prior approval of the [gaming] commis- 23 sion. Such rate may not be changed more than once per calendar quarter 24 to be effective on the first day of the calendar quarter. "Exotic bets" 25 and "multiple bets" shall have the meanings set forth in section five 26 hundred nineteen of this chapter and breaks are hereby defined as the 27 odd cents over any multiple of five for payoffs greater than one dollar 28 five cents but less than five dollars, over any multiple of ten for 29 payoffs greater than five dollars but less than twenty-five dollars, 30 over any multiple of twenty-five for payoffs greater than twenty-five 31 dollars but less than two hundred fifty dollars, or over any multiple of 32 fifty for payoffs over two hundred fifty dollars. "Super exotic bets" 33 shall have the meaning set forth in section three hundred one of this 34 chapter. Of the amount so retained there shall be paid by such corpo- 35 ration to the department of taxation and finance as a reasonable tax by 36 the state for the privilege of conducting pari-mutuel betting on the 37 races run at the race meeting held by such corporation, which tax is 38 hereby levied, the following percentages of the total pool, plus fifty- 39 five percent of the breaks; the applicable rates for regular and multi- 40 ple bets shall be one and one-half percent; the applicable rates for 41 exotic bets shall be six and three-quarter percent and the applicable 42 rate for super exotic bets shall be seven and three-quarter percent. 43 Effective on and after September first, nineteen hundred ninety-four, 44 the applicable tax rate shall be one percent of all wagers, provided 45 that, an amount equal to one-half the difference between the taxation 46 rate for on-track regular, multiple and exotic bets as of December thir- 47 ty-first, nineteen hundred ninety-three and the rates on such on-track 48 wagers as herein provided shall be used exclusively for purses. 49 Provided, however, that for any twelve-month period beginning on April 50 first in nineteen hundred ninety and any year thereafter, each of the 51 applicable rates set forth above shall be increased by one-quarter of 52 one percent on all on-track bets of any such racing corporation that did 53 not expend an amount equal to at least one-half of one percent of its 54 on-track bets during the immediately preceding calendar year for 55 enhancements consisting of capital improvements as defined by section 56 two hundred thirty-seven of this article, repairs to its physical plant,A. 9749 21 1 structures, and equipment used in its racing or wagering operations as 2 certified by the [gaming] commission to the commissioner of taxation and 3 finance no later than eighty days after the close of such calendar year, 4 and five special events at each track in each calendar year, not other- 5 wise conducted in the ordinary course of business, the purpose of which 6 shall be to encourage, attract and promote track attendance and encour- 7 age new and continued patronage, which events shall be subject to the 8 prior approval of the [gaming] commission for purposes of this subdivi- 9 sion. In the determination of the amounts expended for such enhance- 10 ments, the [gaming] commission may consider the immediately preceding 11 twelve-month calendar period or the average of the two immediately 12 preceding twelve-month calendar periods. Provided further, however, that 13 of the portion of the increased amounts retained by such corporation 14 above those amounts retained in nineteen hundred eighty-four, an amount 15 of such increase shall be distributed to purses in the same proportion 16 as commissions and purses were distributed during nineteen hundred 17 eighty-four as certified by the [gaming] commission. Such corporation in 18 the second zone shall receive a credit against the daily tax imposed by 19 this subdivision in an amount equal to four-tenths of one percent of 20 total daily pools resulting from the simulcast of such corporation's 21 races to licensed facilities operated by regional off-track betting 22 corporations in accordance with section one thousand eight of this chap- 23 ter, provided however, that sixty percent of the amount of such credit 24 shall be used exclusively to increase purses for overnight races 25 conducted by such corporation; and, provided further, that in no event 26 shall such total daily credit exceed four-tenths of one percent of the 27 total daily pool of such corporation. 28 Such corporation shall pay to the New York state thoroughbred breeding 29 and development fund one-half of one percent of the total daily on-track 30 pari-mutuel pools from regular, multiple and exotic bets, and three 31 percent of super exotic bets. The corporation shall receive credit as a 32 reduction of the tax by the state for the privilege of conducting pari- 33 mutuel betting for the amounts, except amounts paid from super exotic 34 betting pools, paid to the New York state thoroughbred breeding and 35 development fund after January first, nineteen hundred seventy-eight. 36 Such corporation shall distribute to purses an amount equal to fifty 37 percent of any compensation it receives from simulcasting or from wager- 38 ing conducted outside the United States. Such corporation shall pay to 39 the [gaming] commission as a regulatory fee, which fee is hereby levied, 40 six-tenths of one percent of the total daily on-track pari-mutuel pools 41 of such corporation. 42 2. The balance of the retained percentage of such pool and of the 43 breaks shall be held by such corporation for its own use and purposes, 44 except that in addition to any payments to purses provided for in subdi- 45 vision one of this section, an amount equal to two and one-half [per46centum] percent of the total pools resulting from on-track regular bets 47 and exotic bets and an amount equal to three and one-half [per centum] 48 percent of the total pools resulting from on-track multiple bets and an 49 amount equal to twelve [per centum] percent of on-track super exotic 50 bets shall be used exclusively for the purpose of increasing purses 51 (including stakes, premiums and prizes) awarded to horses in races 52 conducted by such corporation. Such two and one-half [per centum] 53 percent and three and one-half [per centum] percent shall be in addition 54 to (i) four and one-half [per centum] percent of such total pools 55 resulting from regular and multiple wagers and five and one-half [per56centum] percent of such total pools resulting from exotic wagers, orA. 9749 22 1 (ii) the percentage of such total pools used for purses (including 2 stakes, premiums and prizes) during the year nineteen hundred eighty- 3 two, whichever is larger. Such percentage of the total pools mentioned 4 in this subdivision shall be used for purses (including stakes, premiums 5 and prizes) in races hereafter conducted by such corporation, and any 6 portion not so used during any year shall be so used during the follow- 7 ing year, failing which such portion shall be payable to the commission- 8 er of taxation and finance as additional tax. The [racing and wagering9board] commission shall report annually, on or before July first, to the 10 director of the budget, the [chairman] chair of the senate finance 11 committee and the [chairman] chair of the assembly ways and means 12 committee the extent to which such corporation [utilized] used and 13 retained percentages and breakage for operations, maintenance, capital 14 improvements, advertising and promotion, administration and general 15 overhead and evaluate the effectiveness and make recommendations with 16 respect to the application of the reduced rates of taxation as provided 17 for in subdivision one of this section in accomplishing the objectives 18 stated therein. Such report shall also specify the amount of such 19 retained percentages and breakage used for investments not directly 20 related to racing activities and such amounts used to declare dividends 21 or other profit distributions, additions to capital stock, its sale and 22 transfer and additions to retained earnings. Such reports shall also 23 include an analysis of any such agreements or proposals to conduct or 24 otherwise expand wagers authorized under article ten of this chapter and 25 present its conclusions with respect to the conduct of such wagering, 26 the nature of such proposals and agreements, and recommendations to 27 ensure the future maintenance of the intent of this article. 28 3. Tax rates in event of a failure to maintain pari-mutuel racing 29 activity. a. Notwithstanding any other provision of this section to the 30 contrary, for any calendar year commencing on or after January first, 31 nineteen hundred eighty-nine, in which a racing corporation in zone two 32 does not conduct a minimum number of pari-mutuel programs and pari-mutu- 33 el races at its facilities equal to at least ninety [per centum] percent 34 of the programs and races so conducted during nineteen hundred eighty- 35 five or during nineteen hundred eighty-six, whichever is less, in lieu 36 of the tax rates set forth in subdivision one of this section the appli- 37 cable pari-mutuel tax rates for such corporation with respect to 38 on-track pari-mutuel betting pools during such year shall be increased 39 by one [per centum] percent of regular, multiple and exotic betting 40 pools. Notwithstanding the foregoing, no increase shall be proposed 41 unless such corporation has been afforded notice and opportunity to be 42 heard. The [racing and wagering board] commission shall promulgate rules 43 and regulations to implement the provisions relating to notice and hear- 44 ing. 45 b. The provisions of this subdivision shall not apply to a corporation 46 for any calendar year for which the [state racing and wagering board] 47 commission certifies to the commissioner of taxation and finance: 48 (i) by December fifteenth of the year immediately preceding such year, 49 that such corporation has been assigned for such year, from the programs 50 and races it requested, at least the minimum number of programs and 51 races prescribed in paragraph a of this subdivision, or, if fewer than 52 such number were assigned for such year, that the assignment of such 53 lesser number was for good cause due to factors beyond the control of 54 such corporation or because the [board] commission found that it would 55 be uneconomical or impractical for such corporation to be assigned the 56 prescribed number; andA. 9749 23 1 (ii) by January thirty-first of the year immediately subsequent to 2 such year, that such corporation did conduct such number of programs and 3 races as were certified pursuant to subparagraph (i) of this paragraph, 4 or if it failed to conduct such number that such failure was for good 5 cause due to factors beyond its control or because the [board] commis- 6 sion found it uneconomical or impractical for such corporation to 7 conduct such a number. 8 c. For any calendar year for which the [state racing and wagering9board] commission does not certify pursuant to the provisions of subpar- 10 agraph (i) of paragraph b of this subdivision with respect to a corpo- 11 ration, the tax imposed by this section shall be computed by substitut- 12 ing the provisions of paragraph a of this subdivision for the provisions 13 of subdivision one of this section and shall pay the tax so computed to 14 the commissioner of taxation and finance. In such computation and 15 payment, all other provisions of this section shall apply as if the 16 provisions of this paragraph and of paragraph a of this subdivision had 17 been incorporated in whole in subdivision one of this section. 18 d. For any calendar year for which the [state racing and wagering19board] commission does not certify pursuant to the provisions of subpar- 20 agraph (ii) of paragraph b of this subdivision with respect to a corpo- 21 ration, the tax required to be paid hereunder for such year shall be 22 equal to the difference between the tax imposed pursuant to paragraph a 23 of this subdivision and the tax imposed pursuant to the provisions of 24 subdivision one of this section less one-half of such difference in 25 recognition of purses [which] that were required to be paid, plus an 26 additional amount equal to ten [per centum] percent of such tax in the 27 event of a willful failure to comply with the provisions of subparagraph 28 (ii) of paragraph b of this subdivision, and such corporation shall pay 29 the tax so computed to the commissioner of taxation and finance on or 30 before March fifteenth of the following year. Notwithstanding the 31 provisions of this subdivision, in the event that upon appeal from the 32 determination of the [state racing and wagering board] commission that 33 the certification provided in paragraph b of this subdivision will not 34 be made, it is finally determined that [such board was erroneous] the 35 commission erred in failing to so certify and that any moneys received 36 by the commissioner of taxation and finance under paragraph c of this 37 subdivision were paid in error, the same shall be refunded at the rate 38 of interest of six percent per annum. Payment of such balance of tax 39 due, or the anticipation of such payment, shall not affect the determi- 40 nation of purses in the year in which such tax arises or in the year in 41 which such payment is made nor shall such payment in any other manner be 42 considered in any statutory or contractual calculation of purse obli- 43 gations. 44 e. Written notice of the certification of the [board] commission 45 pursuant to the provisions of paragraph b of this subdivision shall be 46 given by the [board] commission to the applicable corporation by the 47 dates therein specified. In like manner, written notice that such 48 certification will not be made shall be given by the [board] commission 49 to the commissioner of taxation and finance and the applicable corpo- 50 ration by such dates. 51 § 27. Section 237 of the racing, pari-mutuel wagering and breeding 52 law, as amended by chapter 18 of the laws of 2008, is amended to read as 53 follows: 54 § 237. Capital improvements. 1. [Definitions.] For the purposes of 55 this section, [the following terms shall have the meanings set forth56unless the context requires a different meaning:A. 9749 24 1a. "Board" shall mean the New York state racing and wagering board.2b. "Capital] "capital improvement" shall mean any addition to, 3 replacement of or remodeling of the physical plant, structures and 4 equipment now or hereafter owned or leased by a racing corporation 5 [which] that is used or is to be used by such corporation in connection 6 with the conduct of horse race meetings, and shall include improvements 7 to land but not land itself. 8 2. (a) Any non-franchised corporation authorized under this chapter to 9 conduct pari-mutuel betting at a race meeting on races run thereat, may 10 elect upon thirty days written notice to the [racing and wagering board] 11 commission to withhold from the pari-mutuel pool in addition to any 12 other amounts required by this section, one [per centum] percent of the 13 total deposits in pools resulting from regular and multiple on-track 14 bets; provided, however, that any such corporation withholding pursuant 15 to this subdivision shall use at least fifty percent of such one [per16centum] percent exclusively for capital improvements as defined in 17 subdivision one of this section subject to the rules and regulations of 18 the [racing and wagering board] commission. An amount, not to exceed 19 fifty percent of such one [per centum] percent, may be used for adver- 20 tising and promotion expenses subject to the rules and regulations of 21 the [board] commission. For the purposes of this paragraph the term 22 "advertising" shall be limited to paid advertising through radio, tele- 23 vision, the print media, direct mail or billboards. Promotions shall 24 mean activities [which] that are intended to increase the attendance at, 25 or visibility of, any such corporation and shall include premium [give-26aways] giveaways, prizes, free admission, free parking, free programs, 27 additional monies for purses or other activities of a promotional nature 28 [which] that stimulate [on track] on-track attendance. In no event shall 29 this section be construed to permit the payment of salaries to employees 30 of any such corporation who are engaged in advertising or promotional 31 activities, provided, however, that monies credited to such capital 32 improvement account on or before July first, nineteen hundred ninety- 33 six, as certified by the [board] commission, shall not be expended for 34 any such advertising and promotion as defined herein. Such election 35 shall terminate upon thirty days written notice to the [board] commis- 36 sion. 37 (b) At least once annually, prior to approving any plan for the 38 expenditure of such capital improvement funds pursuant to this section, 39 the [board] commission shall, together with the track operator and 40 representatives of the horsemen's organization representing owners and 41 trainers [utilizing] using the facility and representatives of the jock- 42 eys organization representing licensed jockeys and apprentice jockeys 43 regularly riding or exercising at such facility, inspect the entire 44 facility, including the area commonly referred to as the backstretch, in 45 order to determine whether the capital improvement plan submitted by the 46 corporation for [board] commission approval includes adequate provision 47 for expenditures relating to the continued health, safety and well-being 48 of patrons, jockeys, backstretch personnel and the horses in their care. 49 After such inspection, if the [board] commission shall determine that 50 such proposed plan does not include adequate provision for repairs and 51 improvements necessary to correct any conditions that it has determined 52 to be unsafe or otherwise deleterious to the health and safety of 53 patrons, jockeys, employees or horses, the [board] commission shall 54 require the track operator to modify its capital improvement plan to 55 provide for the expenditure of funds for such repairs and improvements.A. 9749 25 1 3. On or after July first, nineteen hundred ninety such amounts as may 2 be withheld for the purposes of this section shall be deposited in a 3 trust fund, kept and maintained by such corporation and administered by 4 a trustee approved by the [racing and wagering board] commission for the 5 purpose of lending such sums and any interest thereon on an unsecured 6 basis to such corporation exclusively for capital improvements as 7 defined in subdivision one of this section. All such amounts borrowed by 8 such corporation from such trust shall be forgiven and deemed satisfied 9 according to a schedule of depreciation deductions for federal and New 10 York state income tax purposes for such related capital improvements. It 11 is further provided that at such time as such corporation shall surren- 12 der its pari-mutuel license or franchise or fail to apply for a pari-mu- 13 tuel license for the succeeding year by December thirty-first of the 14 preceding year that the [racing and wagering board] commission may 15 declare the trust fund at an end and all sums therein deposited plus all 16 sums due or owing from such corporation to such trust shall be disposed 17 of in accordance with provisions of law to be enacted for such purpose. 18 Such trust shall be established and administered pursuant to the rules 19 and regulations of the [racing and wagering board] commission. 20 § 28. Subdivision 1 and paragraph c of subdivision 2 of section 238 of 21 the racing, pari-mutuel wagering and breeding law, as amended by chapter 22 18 of the laws of 2008, paragraph (a) of subdivision 1 as amended by 23 section 9 of part HH of chapter 59 of the laws of 2019, paragraph (d) of 24 subdivision 1 as amended by section 2 of part BB of chapter 60 of the 25 laws of 2016 and subparagraph (i) of paragraph (d) of subdivision 1 as 26 amended by section 3 of part NN of chapter 59 of the laws of 2017, are 27 amended to read as follows: 28 1. (a) The franchised corporation authorized under this chapter to 29 conduct pari-mutuel betting at a race meeting or races run thereat shall 30 distribute all sums deposited in any pari-mutuel pool to the holders of 31 winning tickets therein, provided such tickets [be] are presented for 32 payment before April first of the year following the year of their 33 purchase, less an amount [which] that shall be established and retained 34 by such franchised corporation of between twelve to seventeen [per35centum] percent of the total deposits in pools resulting from on-track 36 regular bets, and fourteen to twenty-one [per centum] percent of the 37 total deposits in pools resulting from on-track multiple bets and 38 fifteen to twenty-five [per centum] percent of the total deposits in 39 pools resulting from on-track exotic bets and fifteen to thirty-six [per40centum] percent of the total deposits in pools resulting from on-track 41 super exotic bets, plus the breaks. The retention rate to be established 42 is subject to the prior approval of the [gaming] commission. 43 Such rate may not be changed more than once per calendar quarter to be 44 effective on the first day of the calendar quarter. "Exotic bets" and 45 "multiple bets" shall have the meanings set forth in section five 46 hundred nineteen of this chapter. "Super exotic bets" shall have the 47 meaning set forth in section three hundred one of this chapter. For 48 purposes of this section, a "pick six bet" shall mean a single bet or 49 wager on the outcomes of six races. The breaks are hereby defined as the 50 odd cents over any multiple of five for payoffs greater than one dollar 51 five cents but less than five dollars, over any multiple of ten for 52 payoffs greater than five dollars but less than twenty-five dollars, 53 over any multiple of twenty-five for payoffs greater than twenty-five 54 dollars but less than two hundred fifty dollars, or over any multiple of 55 fifty for payoffs over two hundred fifty dollars. Out of the amount so 56 retained there shall be paid by such franchised corporation to theA. 9749 26 1 commissioner of taxation and finance, as a reasonable tax by the state 2 for the privilege of conducting pari-mutuel betting on the races run at 3 the race meetings held by such franchised corporation, the following 4 percentages of the total pool for regular and multiple bets five [per5centum] percent of regular bets and four [per centum] percent of multi- 6 ple bets plus twenty [per centum] percent of the breaks; for exotic 7 wagers seven and one-half [per centum] percent plus twenty [per centum] 8 percent of the breaks, and for super exotic bets seven and one-half [per9centum] percent plus fifty [per centum] percent of the breaks. 10 For the period [June first, nineteen hundred ninety-five through11September ninth, nineteen hundred ninety-nine, such tax on regular12wagers shall be three per centum and such tax on multiple wagers shall13be two and one-half per centum, plus twenty per centum of the breaks.14For the period September tenth, nineteen hundred ninety-nine through15March thirty-first, two thousand one, such tax on all wagers shall be16two and six-tenths per centum and for the period] April first, two thou- 17 sand one through December thirty-first, two thousand twenty, such tax on 18 all wagers shall be one and six-tenths [per centum] percent, plus, in 19 each such period, twenty [per centum] percent of the breaks. Payment to 20 the New York state thoroughbred breeding and development fund by such 21 franchised corporation shall be one-half of one [per centum] percent of 22 total daily on-track pari-mutuel pools resulting from regular, multiple 23 and exotic bets and three [per centum] percent of super exotic bets 24 [provided, however, that for the period September tenth, nineteen25hundred ninety-nine through March thirty-first, two thousand one, such26payment shall be six-tenths of one per centum of regular, multiple and27exotic pools] and for the period April first, two thousand one through 28 December thirty-first, two thousand twenty, such payment shall be 29 seven-tenths of one [per centum] percent of [such] regular, multiple and 30 exotic pools. 31 (b) An amount equal to fifty [per centum] percent of any compensation 32 received by a franchised corporation from simulcasting or from wagering 33 conducted outside the United States or outside New York state and within 34 the United States shall be distributed to purses, except with respect to 35 such compensation received from Connecticut which shall be computed as a 36 percentage of wagering handle in a manner approved by the [state racing37and wagering board] commission. 38 (c) An amount equal to fifty [per centum] percent of any compensation 39 received by the franchised corporation from simulcasting or from wager- 40 ing conducted outside the United States shall be distributed to purses. 41 (d) (i) The pari-mutuel tax rate authorized by paragraph (a) of this 42 subdivision shall be effective so long as a franchised corporation noti- 43 fies the [gaming] commission by August fifteenth of each year that such 44 pari-mutuel tax rate is effective of its intent to conduct a race meet- 45 ing at Aqueduct racetrack during the months of December, January, Febru- 46 ary, March and April. For purposes of this paragraph such race meeting 47 shall consist of not less than ninety-five days of racing unless other- 48 wise agreed to in writing by the New York Thoroughbred Breeders Inc., 49 the New York thoroughbred horsemen's association (or such other entity 50 as is certified and approved pursuant to section two hundred twenty- 51 eight of this article) and approved by the commission. Not later than 52 May first of each year that such pari-mutuel tax rate is effective, the 53 [gaming] commission shall determine whether a race meeting at Aqueduct 54 racetrack consisted of the number of days as required by this paragraph. 55 In determining the number of race days, cancellation of a race day 56 because of an act of God that the [gaming] commission approves orA. 9749 27 1 because of weather conditions that are unsafe or hazardous [which] that 2 the [gaming] commission approves shall not be construed as a failure to 3 conduct a race day. Additionally, cancellation of a race day because of 4 circumstances beyond the control of such franchised corporation for 5 which the [gaming] commission gives approval shall not be construed as a 6 failure to conduct a race day. If the [gaming] commission determines 7 that the number of days of racing as required by this paragraph have not 8 occurred then the pari-mutuel tax rate in paragraph (a) of this subdivi- 9 sion shall revert to the pari-mutuel tax rates in effect prior to Janu- 10 ary first, nineteen hundred ninety-five. 11 (ii) Such franchised corporation shall pay to the [gaming] commission 12 as a regulatory fee, which fee is hereby levied, six-tenths of one 13 percent of the total daily on-track pari-mutuel pools of such franchised 14 corporation. 15 c. An amount equal to three [per centum] percent of the total pools 16 resulting from on-track regular bets and an amount equal to [four per17centum] five and ninety-four hundredths percent of the total pools 18 resulting from on-track multiple and exotic bets, and twelve [per19centum] percent of the total pools resulting from super exotic bets 20 shall be used exclusively for purses (including stakes, premiums and 21 prizes) awarded in races conducted by such franchised corporation 22 [provided, however, that during the period June first, nineteen hundred23ninety-five through September ninth, nineteen hundred ninety-nine, such24amounts for on-track regular and on-track multiple bets shall be two and25thirty-five hundredths per centum and five and one-half per centum,26respectively. During the period September tenth, nineteen hundred nine-27ty-nine through March thirty-first, two thousand one, such amounts for28on-track regular, multiple and exotic bets shall be five and four29hundredths per centum and for the period April first, two thousand one30through July twenty-fourth, two thousand one and after June thirtieth,31two thousand four, such amount for such bets shall be five and ninety-32four hundredths per centum and on and after July twenty-fifth, two thou-33sand one through June thirtieth, two thousand four, such amounts for all34on-track bets shall be five and forty hundredths per centum]. Any 35 portion of such [per centum] percent not so used during any year shall 36 be so used during the following year, failing which [it] such portion 37 shall be payable to the commissioner as additional tax. Such additional 38 tax shall be payable on or before April first in the year following the 39 year in which [it] such portion is not so used and the provisions of 40 paragraph a of this subdivision shall be applicable thereto except as to 41 the time of payment. 42 § 29. Section 240 of the racing, pari-mutuel wagering and breeding 43 law, as amended by chapter 18 of the laws of 2008, is amended to read as 44 follows: 45 § 240. Yearly audit. 1. The franchised corporation shall, at its own 46 expense, cause its annual financial statements to be audited in accord- 47 ance with generally accepted auditing standards by a qualified independ- 48 ent certified public accountant approved by the franchise oversight 49 board. The annual financial statements shall be prepared on a compar- 50 ative basis for the current and prior fiscal year and shall present the 51 financial position and results of operations in conformity with general- 52 ly accepted accounting principles. Three manually-signed copies of the 53 audited financial statements, together with the report thereon of the 54 franchised corporation's independent certified public accountant shall 55 be filed: one with the franchise oversight board, one with such fran- 56 chised corporation and one with the office of the attorney general, notA. 9749 28 1 later than ninety days following the end of the fiscal year. All such 2 annual financial statements and yearly audits shall be subject to audit 3 by the state comptroller and shall be public records. 4 2. The franchised corporation shall require the independent certified 5 public accountant to render the following additional reports: 6 a. a report on material weakness in accounting, internal controls, and 7 business and management practices discovered in the ordinary course of 8 preparing such audited financial statements. Whenever in the opinion of 9 the independent certified public accountant there exists no material 10 weaknesses in accounting, internal controls and business and management 11 practices, no report [will] shall be required; and 12 b. a report expressing the opinion of the independent certified public 13 accountant that based on his or her examination of the financial state- 14 ments the franchised corporation has followed, in all material respects, 15 during the period covered by his or her examination, the system of 16 accounting and internal control as filed with the franchise oversight 17 board. Whenever in the opinion of the independent certified public 18 accountant the franchised corporation has deviated from the system of 19 accounting and internal controls filed with the franchise oversight 20 board or the accounts, records, and control procedures examined are not 21 maintained by the franchised corporation in accordance with generally 22 accepted accounting standards the report shall enumerate such devi- 23 ations. The independent certified public accountant shall also report on 24 areas of the system no longer considered effective, and shall make 25 recommendations in writing regarding improvements in the system of 26 accounting and internal controls. 27 3. If the independent certified public accountant who was previously 28 engaged to audit the franchised corporation's financial statements 29 resigns or is dismissed as the franchised corporation's auditor, or 30 another independent certified public accountant is engaged as auditor, 31 the franchised corporation shall file a report with the franchise over- 32 sight board within ten days following the end of the month in which such 33 event occurs, setting forth the following: 34 a. the date of such resignation, dismissal, or engagement; 35 b. whether in connection with the audits of the two most recent years 36 preceding such resignation, dismissal, or engagement there were any 37 disagreements with the former accountant on any matter of accounting 38 principles or practices, financial statement disclosure, or auditing 39 scope or procedure, which disagreements if not resolved to the satisfac- 40 tion of the former accountant would have caused [him] such accountant to 41 make reference in connection with [his] such accountant's report to the 42 subject matter of the disagreement; including a description of each such 43 disagreement. The disagreements to be reported include those resolved 44 and those not resolved; and 45 c. whether the former accountant's report on the financial statements 46 for any of the past two years contained an adverse opinion or disclaimer 47 of opinion or was qualified. The nature of such adverse opinion, 48 disclaimer of opinion, or qualification shall be described. 49 4. Upon direction of the franchise oversight board, the franchised 50 corporation shall, at its own expense, cause its business and managerial 51 practices to be audited. 52 § 30. Section 242 of the racing, pari-mutuel wagering and breeding 53 law, as amended by chapter 18 of the laws of 2008, is amended to read as 54 follows: 55 § 242. Races for horses bred in the state. The [state racing and56wagering board] commission in granting a license to a corporation toA. 9749 29 1 conduct running or steeplechase races at its racetrack, if [it] the 2 commission deems such requirement practicable, may require such corpo- 3 ration to provide for at least one race during the racing season in 4 which the entries shall be exclusively horses foaled in this state. 5 § 31. Section 243 of the racing, pari-mutuel wagering and breeding 6 law, as amended by chapter 370 of the laws of 2011, is amended to read 7 as follows: 8 § 243. Free or reduced fee passes, cards or badges. A corporation 9 licensed or franchised to conduct pari-mutuel betting on races run on 10 its racetrack may issue free passes, cards or badges to any qualified 11 person. A qualified person shall include, but need not be limited to, 12 officers and employees of the corporation conducting the race meeting, 13 members, officers and employees of the [state racing and wagering board] 14 commission, members and employees of the jockey club, members and 15 employees of the national steeplechase and hunt association, members of 16 turf organizations of other states and foreign countries, public offi- 17 cers engaged in the performance of their duties, persons actually 18 employed and accredited by the press to attend such meetings, owners, 19 stable managers, trainers, jockeys, jockey managers, grooms, concessio- 20 naires, spouses, domestic partners and children of owners, trainers and 21 jockeys, other persons whose actual duties require their presence at 22 such racetrack, and any other person or guest deemed appropriate by such 23 corporation. In addition, free or reduced fee passes, cards or badges 24 may be issued to the general public or segments of the general public in 25 connection with any promotional campaign or marketing program sponsored 26 by such corporation to increase attendance at live race meets. The issu- 27 ance of free passes, cards or badges shall be under the rules and regu- 28 lations of the [state racing and wagering board] commission. 29 § 32. Section 244 of the racing, pari-mutuel wagering and breeding 30 law, as amended by chapter 18 of the laws of 2008, is amended to read as 31 follows: 32 § 244. Revocation of license or franchise. The [state racing and33wagering board] commission may revoke a license issued by it under this 34 chapter or a franchise granted pursuant to section two hundred six of 35 this article if the corporation to which such license or franchise shall 36 have been issued, or its officers or directors, shall not conduct racing 37 at its track, including pari-mutuel betting on races thereat, in accord- 38 ance with the terms and conditions of such license or franchise, with 39 the rules of [such board] the commission and with the provisions of this 40 chapter; or if such corporation or its officers or directors shall know- 41 ingly permit on its grounds or within the enclosure of its racetrack, 42 lotteries, pool selling or bookmaking, or any other kind of gambling, in 43 violation of this chapter or of the penal law. 44 § 33. Section 245 of the racing, pari-mutuel wagering and breeding 45 law, as amended by chapter 18 of the laws of 2008, is amended to read as 46 follows: 47 § 245. Hearing on refusal or revocation of license or franchise. If 48 the [state racing and wagering board shall refuse] commission refuses to 49 grant a license applied for under this [chapter] article, or [shall50determine] determines to revoke such a license granted by it or a fran- 51 chise pursuant to sections two hundred twelve and two hundred forty-four 52 of this article, the [board] commission shall give to the applicant or 53 licensee notice of a time and place for a hearing before the [board] 54 commission, at which the [board] commission will hear such applicant, 55 licensee or franchise corporation in reference thereto. The [board] 56 commission may continue such hearing from time to time for the conven-A. 9749 30 1 ience of all parties. Any of the parties affected by such hearing may be 2 represented by counsel, and the [board] commission may be represented by 3 the attorney general or an assistant attorney general. In the conduct of 4 such hearing the [board] commission shall not be bound by technical 5 rules of evidence, but all evidence offered before the [board] commis- 6 sion shall be reduced to writing, and such evidence together with the 7 exhibits, if any, and the findings of the [board] commission, shall be 8 permanently preserved and shall constitute the record of the [board] 9 commission in such case. In connection with such hearing, each member of 10 the [board] commission shall have the power to administer oaths and 11 examine witnesses, and may issue subpoenas to compel the attendance of 12 witnesses, and the production of all necessary reports, books, papers, 13 documents, correspondence and other evidence. The [board] commission 14 may, if occasion shall require, by order, refer to one or more of its 15 members, the duty of taking testimony in such matter, and to report 16 thereon to the [board] commission, but no determination shall be made 17 therein except by the [board] commission. Within thirty days after such 18 hearing, the [board] commission shall make a final determination. If 19 [it] the commission determines that such license shall not be granted, 20 or that a license issued by [it] the commission shall be revoked, or a 21 franchise revoked pursuant to sections two hundred twelve and two 22 hundred forty-four of this article, [it] the commission shall make an 23 order accordingly, and shall cause such order to be entered on [its] the 24 commission's minutes and a copy thereof served on such applicant, licen- 25 see or franchised corporation, as the case may be. The action of the 26 [board] commission in refusing to grant a license, or in revoking a 27 license, or in revoking a franchise pursuant to sections two hundred 28 twelve and two hundred forty-four of this article, shall be reviewable 29 in the supreme court in the manner provided by the provisions of article 30 seventy-eight of the civil practice law and rules. 31 § 34. Section 246 of the racing, pari-mutuel wagering and breeding 32 law, as amended by chapter 18 of the laws of 2008, is amended to read as 33 follows: 34 § 246. Approval of plans of corporation. The [state racing and wager-35ing board] commission shall not grant to a corporation hereafter formed 36 pursuant to this chapter, a license to conduct a running or steeplechase 37 race meeting within the state until such corporation shall have submit- 38 ted to the [board] commission a statement of the location of its 39 proposed grounds and racetrack, together with a plan of such racetrack, 40 and plans of all buildings, seating stands and other structures, in such 41 form as the [board] commission may prescribe, and such plans shall have 42 been approved by the [board] commission. The [board] commission at the 43 expense of the applicant may order such engineering examination thereof 44 as the [board] commission may deem necessary. Alterations of buildings, 45 seating stands or other structures, and the erection of new or addi- 46 tional buildings, seating stands or other structures on the grounds of 47 any corporation heretofore or hereafter formed pursuant to this chapter 48 may be made only with the approval of the [board] commission and after 49 examination and inspection of the plans thereof and the issuance of a 50 permit therefor by such [board] commission. The approval of the certif- 51 icate of incorporation of such corporation shall not be deemed to vest 52 in it the right to a license to conduct running or steeplechase race 53 meetings at such race course or racetrack unless such grounds, track, 54 buildings, seating stands and other structures [shall be] are completed 55 in accordance with the plans approved by the [board] commission.A. 9749 31 1 § 35. Section 247 of the racing, pari-mutuel wagering and breeding 2 law, as amended by chapter 18 of the laws of 2008, is amended to read as 3 follows: 4 § 247. Racing zones. There are hereby created two racing zones to be 5 known as the first zone and the second zone. The first zone shall 6 include all of the counties in the first, second, ninth, tenth, eleventh 7 and twelfth judicial districts. The second zone shall include all the 8 other counties of the state. Not more than six corporations shall here- 9 after be licensed by the [state racing and wagering board] commission or 10 franchised by the state to conduct a race course or race meeting for 11 running races or steeplechases at which pari-mutuel betting shall be 12 authorized within the first zone, and not more than three of such corpo- 13 rations shall hereafter be so licensed within the second zone. The 14 [state racing and wagering board] commission shall not hereafter approve 15 the incorporation of such a corporation for conducting a race course or 16 race meeting within the second zone if the location of the proposed race 17 course of such corporation is within seventy-five miles of the race 18 course of another such corporation. 19 § 36. Section 248 of the racing, pari-mutuel wagering and breeding 20 law, as amended by chapter 18 of the laws of 2008, is amended to read as 21 follows: 22 § 248. Racing season; allotment of dates for racing. In the assignment 23 of dates by the [state racing and wagering board] commission to corpo- 24 rations for conducting running races or steeplechases no conflict shall 25 be deemed to exist by reason of duplication of dates as between race 26 meetings in the first zone and race meetings in the second zone, nor as 27 between race meetings within a zone if the race courses at which such 28 meetings are held are at least thirty-five miles apart in the first zone 29 and at least seventy-five miles apart in the second zone, except that a 30 minimum of thirty-six days of racing shall be assigned exclusively to 31 the second zone unless the governor determines that a sufficient emer- 32 gency exists for reducing such number of days of racing, in which event 33 the [state racing and wagering board] commission is then authorized to 34 assign a lesser number of days of racing to the second zone. The [state35racing and wagering board] commission may separately apportion to the 36 several corporations licensed or franchised to conduct running races or 37 steeplechases as many of the racing days for the season, not to exceed 38 the maximum number of racing days permitted by law. 39 § 37. Section 250 of the racing, pari-mutuel wagering and breeding 40 law, as amended by chapter 240 of the laws of 2010, is amended to read 41 as follows: 42 § 250. Power of [state racing and wagering board] commission to impose 43 penalties. [In] The commission, in addition to its power to suspend or 44 revoke occupational licenses, licenses to conduct running races and race 45 meetings or steeplechases and steeplechase meetings and licenses to 46 conduct pari-mutuel betting at a race course or race meeting for running 47 races or steeplechases issued by [it] the commission, [the state racing48and wagering board] is [hereby] authorized to impose civil penalties 49 upon any such licensee or franchisee for a violation of any provision of 50 this chapter or the rules and regulations promulgated pursuant thereto, 51 not exceeding [twenty-five thousand dollars for each violation] the 52 amounts set forth in section one hundred sixteen of this chapter, which 53 penalties shall be paid into the state treasury. Each day upon which 54 such violation continues may be considered by the [board] commission as 55 a separate violation in assessing the amount of civil penalty to be 56 imposed. Any penalty so imposed shall be sued for by the attorney gener-A. 9749 32 1 al in the name of the people of the state of New York, if so directed by 2 the [board] commission. The amount of the penalty collected by the 3 [board] commission or recovered in any such action, or paid to the 4 [board] commission upon a compromise as hereinafter provided, shall be 5 paid by the [board] commission into the state treasury and credited to 6 the general fund. The [board] commission, for cause shown and in its 7 discretion, may extend the time for the payment of such penalty and, by 8 compromise may accept less than the amount of such penalty as imposed in 9 settlement thereof. The powers granted by this section shall not be 10 affected by the circumstances that any such license [shall have] has 11 expired by its terms prior to the imposition of such penalty. 12 § 38. Subdivision 7 of section 251 of the racing, pari-mutuel wagering 13 and breeding law, as amended by chapter 18 of the laws of 2008, is 14 amended to read as follows: 15 7. "Races." Races upon which pari-mutuel wagering is conducted at 16 thoroughbred race meetings of racing corporations as authorized by the 17 [state racing and wagering board] commission. 18 § 39. Paragraph b of subdivision 1 and the opening paragraph and para- 19 graph d of subdivision 2 of section 254 of the racing, pari-mutuel 20 wagering and breeding law, paragraph b of subdivision 1 as added and the 21 opening paragraph and paragraph d of subdivision 2 as amended by chapter 22 18 of the laws of 2008, and subparagraph (i) of paragraph d of subdivi- 23 sion 2 as amended by chapter 123 of the laws of 2013, are amended to 24 read as follows: 25 b. The fund is authorized to receive one and one-half percent of the 26 total wagered after payout of prizes for the [first year of] operation 27 of video lottery gaming at Aqueduct racetrack[, one and one-quarter28percent of the total wagered after payout of prizes for the second year29of operation, and one and one-half percent of the total wagered after30payout of prizes for the third year of operation and thereafter,] for an 31 appropriate breeding fund for the manner of racing conducted at Aqueduct 32 racetrack, Belmont Park racetrack and Saratoga race course. 33 The fund is authorized to dispose and distribute the moneys received 34 by it pursuant to this chapter and in accordance with distribution sche- 35 dules promulgated by the fund and adopted in the rules and regulations 36 of the [board] commission. Such schedules shall be developed and based 37 on reasonable estimates of fund income for the fiscal year of the fund 38 and made available prior to January first of each year. In formulating 39 distribution schedules, the board of directors of the fund may determine 40 that for those New York-breds foaled after December thirty-first, nine- 41 teen hundred eighty-seven, the amounts to be made available in awards to 42 the breeders and owners of such New York-breds [which] that have been 43 sired by registered New York stallions may exceed the amounts to be made 44 available to the breeders and owners of such New York-breds sired by 45 other than registered New York stallions. Such schedules may be 46 adjusted, from time to time, by majority vote of the board of directors 47 of the fund, for the following purposes and no other: 48 d. (i) An amount as shall be determined by the fund but not in excess 49 of forty-four percent to provide purse moneys exclusively for New York- 50 breds entered in all races, the conditions of which have been approved 51 by the fund[. Provided]; provided, however, that the fund shall set 52 aside forty percent of the funds allotted under this subdivision to 53 tracks operated by corporations licensed or franchised in accordance 54 with the provisions of section two hundred five or section two hundred 55 six of this article except that in addition to the other amounts allot- 56 ted by the fund under this paragraph, seventy-five percent of fundA. 9749 33 1 revenues derived from payments received in accordance with subdivision 2 one of section five hundred twenty-seven of this chapter shall be allot- 3 ted exclusively to purses at a track operated by a corporation licensed 4 under the provisions of section two hundred five of this article. 5 (ii) The fund may direct a portion or portions of revenues allocated 6 in this paragraph and dedicated to a racing corporation licensed in 7 accordance with section two hundred five of this article to pari-mutuel 8 races at such track [which] that are not restricted to New York-breds 9 provided that the revenues so allocated shall [only] be used only to 10 enrich any purses awarded to New York-breds finishing first, second, 11 third, fourth or fifth in such non-restricted races. 12 § 40. Section 301 of the racing, pari-mutuel wagering and breeding 13 law, the section heading as separately amended by chapter 363 and chap- 14 ter 678 of the laws of 1984, paragraphs a, b and c of subdivision 2 as 15 relettered by chapter 211 of the laws of 1999, subdivision 4 as amended 16 by section 5 of part F3 of chapter 62 of the laws of 2003 and subdivi- 17 sion 5 as added by chapter 116 of the laws of 2001, is amended to read 18 as follows: 19 § 301. General powers of [state racing and wagering board] commission; 20 harness racing defined; super exotic bet defined, authorized. 1. Pursu- 21 ant to the provisions of sections two hundred twenty-two through seven 22 hundred five of this chapter, the [state racing and wagering board] 23 commission shall have power to supervise generally all harness race 24 meetings in this state at which pari-mutuel betting is conducted. The 25 [board] commission may adopt rules and regulations not inconsistent with 26 sections two hundred twenty-two through seven hundred five of this chap- 27 ter to carry into effect its purposes and provisions and to prevent 28 circumvention or evasion thereof. In order that the rules of harness 29 horse racing may be uniform throughout the United States, the [board] 30 commission may adopt the rules and regulations of the United States 31 Trotting Association, in whole or in part, and may adopt such other or 32 different rules as [it] the commission deems necessary to carry into 33 effect the purposes and provisions of sections two hundred twenty-two 34 through seven hundred five of this chapter. 35 2. Without limiting the generality of the foregoing, and in addition 36 to its other powers: 37 a. The [state racing and wagering board] commission shall prescribe 38 rules and regulations for effectually preventing the use of improper 39 devices, the administration of drugs or stimulants or other improper 40 acts for the purpose of affecting the speed of harness horses in races 41 in which they are about to participate. 42 b. The rules of the [board] commission shall also provide that all 43 winning pari-mutuel tickets must be presented for payment before April 44 first of the year following the year of their purchase and failure to 45 present any such ticket within the prescribed period of time shall 46 constitute a waiver of the right to participate in the award or divi- 47 dend. 48 c. The [board] commission shall have power in its discretion, consist- 49 ent with the powers of [the state tax commission] department of taxation 50 and finance, to prescribe uniform methods of keeping accounts, records 51 and books to be observed by associations or corporations licensed under 52 the provisions of this article or by any association or corporation 53 [which] that owns stock in, or shares in the profits, or participates in 54 the management or affairs of, such licensed association or corporation, 55 or by any person, firm, association or corporation holding any conces- 56 sion, right or privilege to perform any service or sell any article atA. 9749 34 1 any track at which pari-mutuel harness racing meets are conducted. The 2 [board] commission may also in its discretion, consistent with the 3 powers of the state tax commission, prescribe by order forms of 4 accounts, records and memoranda to be kept by such persons, firms, asso- 5 ciations or corporations. The [board] commission shall have power to 6 visit, investigate, and place expert accountants, or such other persons 7 as it may deem necessary, in the offices, tracks or other places of 8 business of any such person, firm, association or corporation for the 9 purpose of seeing that the provisions of sections two hundred twenty-two 10 through seven hundred five of this chapter and the rules and regulations 11 issued by the [board] commission thereunder are strictly complied with. 12 Such persons, firms, associations or corporations shall annually file 13 with the [board] commission, on such date as the [board] commission 14 shall prescribe, a report showing their financial condition and finan- 15 cial transactions during the fiscal year, including a balance sheet and 16 a profit and loss statement, verified by the oath of at least two of its 17 principal officers, if it be an association or corporation having offi- 18 cers, and by one or more of the owners or proprietors thereof if not an 19 association or corporation. The report shall be in such form and contain 20 such other matters as the [board] commission may determine from time to 21 time to be necessary to disclose accurately the financial condition and 22 operation of such persons, firms, associations or corporations during 23 the preceding fiscal year. The [board] commission may for good cause 24 shown grant a reasonable extension of time for the filing of any such 25 report. 26 3. The term "racing", as used in this article, shall be construed to 27 mean only horse racing in which the horses participating are harnessed 28 to a sulky, carriage, or similar vehicle, and shall not include any form 29 of horse racing in which the horses participating are mounted by a jock- 30 ey. 31 4. The term "super exotic bet" or "super exotic wager", as used in 32 this chapter, shall mean a single bet or wager on six or more horses, 33 evidenced by a single ticket and representing an interest in a betting 34 pool hereby authorized to be conducted by licensed racing associations 35 or corporations or regional off-track betting corporations pursuant to 36 rules and regulations of the [state racing and wagering board] commis- 37 sion. Such rules and regulations shall provide the manner in which 38 winning tickets in such pool shall be determined and may provide that a 39 portion only of the amounts otherwise available to winners of such pools 40 be paid to holders of consolation tickets combining the most winning 41 horses as provided in such rules and regulations and that the balance of 42 amounts otherwise available to winners from such pool be carried forward 43 and deposited in any subsequent super exotic pools. Such rules and regu- 44 lations shall also provide that an amount not to exceed six [per centum] 45 percent of the total wagers in each super exotic pool may be used or 46 accumulated to reimburse any such association or corporation conducting 47 such pool for the cost of assuring an advertised winning pay-out for 48 winning wagers or for a capital improvement fund or to reimburse any 49 such association or corporation for amounts it has contributed to the 50 amounts otherwise available for winning wagers to increase the pay-out 51 therefor. Such rules and regulations may further provide that all of the 52 amounts available for winning tickets and accumulations therefor shall 53 be distributed periodically to holders of tickets combining the most 54 winners in a pool conducted upon a date specified by the [board] commis- 55 sion and, in any event, shall provide for complete disposition of all 56 amounts available for winning tickets and accumulations therefor beforeA. 9749 35 1 the end of the licensed meet during which such super exotic pools are 2 conducted. Notwithstanding the foregoing or any other provisions of 3 law, all distributions, taxes and regulatory fees on super exotic bets 4 shall be distributed as though the bet were an exotic bet, except that a 5 balance may be retained and deposited in subsequent pools. 6 5. The [board] commission shall have the power to issue licenses to 7 western regional off-track betting corporation or to a subsidiary of 8 said western regional off-track betting corporation for the purpose of 9 conducting harness race meetings at Batavia Downs race track and to make 10 capital improvements to said track, provided that such corporation 11 otherwise meets the terms and conditions for licensure as provided under 12 this article. Notwithstanding the provisions of articles five and five-a 13 of this chapter, said corporation shall be deemed to be a harness racing 14 corporation with respect to pari-mutuel wagering conducted at said track 15 pursuant to this chapter, except that net revenues derived from such 16 pari-mutuel wagering shall be distributed among the counties that 17 participate in such corporation on the basis of population, as defined 18 as the total population in each participating county shown by the latest 19 preceding decennial federal census completed and published as a final 20 population count by the United States bureau of the census preceding the 21 commencement of the calendar year in which such distribution is to be 22 made. 23 § 41. Section 302 of the racing, pari-mutuel wagering and breeding 24 law, subdivision 5 as amended by chapter 687 of the laws of 1983, is 25 amended to read as follows: 26 § 302. Incorporation. Any number of persons, not less than five, may 27 become a corporation for the purpose of conducting harness horse race 28 meetings at which pari-mutuel betting will be conducted, with all the 29 general powers of corporations created under the laws of this state, by 30 making, signing, acknowledging and filing a certificate [which] that 31 shall contain the: 32 1. [The] name of the proposed corporation[.]; 33 2. [The] objects for which [it] the corporation is to be formed and 34 the location at which it is proposed to conduct its business[.]; 35 3. [The] amount and description of the capital stock[.]; 36 4. [The] location of [its] the corporation's principal business 37 office[.]; 38 5. [Its] duration[.] of the corporation; 39 6. [The] number of [its] the corporation's directors, not less than 40 five nor more than thirteen[.]; 41 7. [The] names and post office addresses of the directors for the 42 first year[.]; and 43 8. [The] post office addresses of the subscribers and a statement of 44 the number of shares of stock [which] that each agrees to take in the 45 corporation. 46 No certificate of incorporation under this section shall hereafter be 47 filed without the approval of the [state racing and wagering board] 48 commission indorsed thereon or annexed thereto. 49 No corporation organized pursuant to this article or operating a 50 harness horse race meet pursuant to the provisions of section three 51 hundred four of this article, shall have or be given the right or power 52 to conduct any harness horse race meet pursuant to this article except 53 at the location designated in its certificate of incorporation as the 54 place at which it was proposed to conduct its business, or at the place 55 or places where it is presently licensed to conduct a harness horse race 56 meet or meetings by the [state racing and wagering board] commission;A. 9749 36 1 provided, however, that this restriction shall not apply to any such 2 corporation or association whose racing plant or the usefulness thereof 3 or of any material part thereof, in the discretion of the [board] 4 commission, shall, for any reason beyond the control of such corporation 5 or association, be totally destroyed or so substantially interfered with 6 or damaged as to render same unfit for continued operation. Pending the 7 rebuilding, or restoration of its usefulness or the making of the 8 required repairs to said plant or the part thereof so destroyed or 9 damaged, the [state racing and wagering board] commission may license 10 such corporation or association to conduct its harness horse race meet- 11 ings at any other suitable location. 12 § 42. Section 303 of the racing, pari-mutuel wagering and breeding law 13 is amended to read as follows: 14 § 303. Filing of information concerning stock transfers; necessity for 15 [board's] commission approval. 1. Whenever a transfer of stock of any 16 association or corporation [which] that is licensed under this article, 17 or of any association or corporation [which] that leases to such licen- 18 see the track at which it conducts pari-mutuel harness races, or [which] 19 that owns twenty-five percent or more of the stock of such licensee 20 shall be made, there shall be filed simultaneously with the association 21 or corporation [which] that issued such stock the following: 22 a. In duplicate, an affidavit executed by the transferee stating that 23 [he] the affiant is to be the sole beneficial owner thereof, and whether 24 or not [he] the affiant has (i) [has] been convicted of a crime involv- 25 ing moral turpitude, (ii) [has] been engaged in bookmaking or other 26 forms of illegal gambling, (iii) [has] been found guilty of any fraud or 27 misrepresentation in connection with racing or breeding, (iv) [has] been 28 guilty of any violation or attempt to violate any law, rule or regu- 29 lation of any racing jurisdiction for which suspension from racing might 30 be imposed in such jurisdiction, or (v) [has] violated any rule, regu- 31 lation or order of the [board] commission; if the transferee is not, or 32 is not to be, the sole beneficial owner thereof, then there shall be 33 annexed to said affidavit of the transferee, and expressly stated in 34 such affidavit to be deemed a part thereof, a true and complete copy, or 35 if oral, a complete statement of all the terms, of the agreement or 36 understanding pursuant to which the stock is to be so held by the trans- 37 feree, including a detailed statement of the interest therein of each 38 person who is to have any interest therein; and at the same time. 39 b. In duplicate, an affidavit executed by each person for whom [the40said] such stock, or any interest therein, is to be held by said trans- 41 feree, setting forth whether or not the affiant has (i) [has] been 42 convicted of a crime involving moral turpitude, (ii) [has] engaged in 43 bookmaking or other forms of illegal gambling, (iii) [has] been found 44 guilty of any fraud or misrepresentation in connection with racing or 45 breeding, (iv) [has] been guilty of any violation or attempt to violate 46 any law, rule or regulation of any racing jurisdiction for which suspen- 47 sion from racing might be imposed in such jurisdiction, or (v) [has] 48 violated any rule, regulation or order of the [board] commission; to 49 each of which affidavits shall be annexed, and expressly stated in such 50 affidavit to be deemed a part thereof, a true and complete copy, or if 51 oral, a complete statement of all the terms, of the agreement or under- 52 standing pursuant to which the stock is to be so held by the transferee, 53 including a detailed statement of the interest therein of each person 54 who is to have any interest therein. 55 c. Said association or corporation shall forthwith file with the 56 [board] commission one of each of said duplicate affidavits.A. 9749 37 1 2. If, after the filing of any affidavit [hereinabove] required to be 2 filed by subdivision one of this section, there [be] is any change in 3 the status of any such affiant with respect to any of the matters set 4 forth in subparagraph (i), (ii), (iii), (iv) or (v) of paragraph a of 5 subdivision one of this section of the affidavit theretofore filed by 6 him or her, such affiant shall forthwith file with the association or 7 corporation with which [his] the affiant's affidavit was so filed a new 8 affidavit, executed [by him] in duplicate, setting forth such change of 9 status, and the association or corporation shall forthwith file one of 10 said affidavits with the [board] commission. 11 3. Whenever any change [shall be] is made in the amount, nature, or 12 otherwise, of the interest of any person having an interest in stock of 13 any such association or corporation, or any new interest [shall be] is 14 created therein, without a transfer [thereof] of such interest as 15 [hereinabove] provided in subdivisions one and two of this section, the 16 record owner of such stock, and each person whose interest therein has 17 been so attempted to be changed or created, shall file with the associ- 18 ation or corporation [which] that issued such stock, in duplicate, affi- 19 davits as provided by paragraphs a and b of subdivision one of this 20 section, except that such affidavits need not include the matters 21 referred to in subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 22 a of subdivision one of this section, unless then required pursuant to 23 subdivision two of this section, and one copy thereof shall forthwith be 24 filed by the association or corporation with the [board] commission. 25 4. The [board] commission may, upon application to it for good cause 26 shown, waive compliance with subdivisions one, two and three of this 27 section. 28 5. If the [board] commission determines that it is inconsistent with 29 the public interest, convenience or necessity, or with the best inter- 30 ests of racing generally, that any person continue to be a stockholder 31 of record, or the beneficial owner of any interest in stock standing in 32 the name of another, in any association or corporation licensed under 33 this article, or of any association or corporation [which] that leases 34 to such licensee the track at which it conducts pari-mutuel harness 35 racing or [which] that owns twenty-five percent or more of the stock of 36 such licensee, the [board] commission shall have full power and authori- 37 ty to order or direct each such stockholder or beneficial owner irre- 38 spective of the time when such stockholder or beneficial owner acquired 39 his or her stock or interest therein to dispose of such stock or inter- 40 est within a period of time to be specified by the [board] commission, 41 which period the [board] commission shall have full power and authority 42 to extend from time to time. 43 6. If the [board] commission shall make any order or direction as 44 provided in subdivision five of this section, the person aggrieved 45 thereby shall be given notice of the time and place of a hearing before 46 the [board] commission at which the [board] commission will hear such 47 person in reference thereto. The action of the [board] commission in 48 making any such order or direction shall be reviewable in the courts of 49 this state in the manner provided by, and subject to the provisions of 50 article seventy-eight of the civil practice law and rules. 51 7. Upon application of the [board] commission, the supreme court of 52 this state shall have jurisdiction to issue final orders, on notice and 53 after hearing, commanding any person to comply with the provisions of 54 the orders or directions issued by the [board] commission under subdivi- 55 sion five of this section.A. 9749 38 1 8. In case of conflict between this section and article eight of the 2 uniform commercial code, this section shall control. 3 § 43. Subdivision (b) and the closing paragraph of section 303-a of 4 the racing, pari-mutuel wagering and breeding law, as added by chapter 5 281 of the laws of 1994, are amended to read as follows: 6 (b) Non-managing owners. There shall be no restriction on the number 7 of non-managing owners of a race horse except that no horse shall be 8 entered or started [which] that is owned by thirty-five or fewer owners 9 unless all such owners are licensed; in the event that a horse is owned 10 by more than thirty-five owners, only those individuals having a three 11 percent or greater property interest in such horse shall be required to 12 be licensed as an owner. 13 The [board] commission shall adopt rules and regulations regarding 14 ownership of horses not inconsistent with this section. 15 § 44. Section 304 of the racing, pari-mutuel wagering and breeding law 16 is amended to read as follows: 17 § 304. Right to hold harness race meetings and races. Any corporation 18 formed under the provisions of sections two hundred twenty-two through 19 seven hundred five of this chapter, and any corporation or association 20 which shall have conducted harness horse race meetings during two years 21 prior to March thirty-first, nineteen hundred forty, and any town or 22 county fair association or other fair association shall have the power 23 and the right to hold one or more harness horse race meetings in each 24 year and to hold, maintain and conduct harness races at such meetings. 25 At such harness race meetings the corporation or association, or the 26 owners of horses engaged in such races, or others who are not partic- 27 ipants in the race, may contribute purses, prizes, premiums or stakes to 28 be contested for, but no person or persons other than the owner or 29 owners of a horse or horses contesting in a race shall have any pecuni- 30 ary interest in a purse, prize, premium or stake contested for in such 31 race, or be entitled to or receive any portion thereof after such race 32 is finished, and the whole of such purse, prize, premium or stake shall 33 be allotted in accordance with the terms and conditions of such race. 34 Such meeting shall not be held except during the period extending from 35 the first day of January to the thirty-first day of December inclusive 36 in each year. In counties having a population of two hundred fifty thou- 37 sand or less, the [state racing and wagering board] commission may, 38 however, permit the holding of one or more harness horse race meetings 39 and the conduct of harness races at such meetings on a day or days not 40 during such period if the [board] commission is satisfied that a special 41 occasion makes the holding of such meetings and the conduct of such 42 races on such day or days proper or necessary; but in no event shall 43 such meetings or races be held or conducted on the twenty-fifth day of 44 December. Such power and right, however, shall not include the right to 45 conduct pari-mutuel betting at such harness horse race meetings except 46 pursuant to license granted by the [state racing and wagering board] 47 commission pursuant to sections two hundred twenty-two through seven 48 hundred five of this chapter. 49 § 45. Section 305 of the racing, pari-mutuel wagering and breeding law 50 is amended to read as follows: 51 § 305. Pari-mutuel betting at harness races. No more than eight 52 corporations or associations shall be licensed by the [state racing and53wagering board] commission in any one year to conduct a pari-mutuel meet 54 or meets. Said pari-mutuel betting conducted at such meetings shall be 55 under the general supervision and control of the [state racing and56wagering board] commission which shall make rules regulating the conductA. 9749 39 1 of such pari-mutuel betting in accordance with the provisions of 2 sections two hundred twenty-two through seven hundred five of this chap- 3 ter. The [state tax commission] department of taxation and finance is 4 charged with the financial administration of pari-mutuel betting as 5 prescribed in this article and as supplemented by the rules and regu- 6 lations of the [state racing and wagering board] commission. The [state7tax commission] department of taxation and finance shall have authority 8 to prescribe the forms and the system of accounting to be employed, and 9 through its representatives shall at all times have power of access to 10 and examination of any equipment relating to such betting. 11 § 46. Section 307 of the racing, pari-mutuel wagering and breeding 12 law, subdivision 5-a as amended by chapter 18 of the laws of 2008, 13 subdivision 5-b as added by chapter 542 of the laws of 1999 and subdivi- 14 sion 10 as added by chapter 530 of the laws of 2008, is amended to read 15 as follows: 16 § 307. Licenses for harness race meetings. 1. Any association or 17 corporation desiring to conduct harness race meetings at which pari-mu- 18 tuel betting shall be permitted may apply annually to the [state racing19and wagering board] commission for a license so to do. If, in the judg- 20 ment of the [state racing and wagering board] commission the public 21 interest, convenience or necessity will be served thereby and a proper 22 case for the issuance of such license is shown consistent with the 23 purposes of sections two hundred twenty-two through seven hundred five 24 of this chapter and the best interests of racing generally, it may grant 25 such license for a term ending not later than the thirty-first day of 26 December next succeeding the granting thereof, specifying dates and 27 hours during which and the place where the licensee may operate; 28 provided, however, that any harness racetrack which applies to the 29 [state racing and wagering board] commission for permission to make one 30 or more capital improvements may, in connection with such application or 31 before or after such application, also apply to the [state racing and32wagering board] commission for, and the [state racing and wagering33board] commission shall, as an inducement for or in recognition of the 34 making of such capital improvement, grant a capital improvement license, 35 which may be conditioned on the completion of the capital improvement if 36 not yet made, for a period of not more than twenty-five years, but in no 37 event for a period longer than is necessary to amortize any loan for 38 capital improvements and shall specify for each year of the term of said 39 license the minimum number of days on which, and the minimum number of 40 hours on each such day, and the places where said licensee may conduct 41 such harness race meetings at which pari-mutuel betting shall be permit- 42 ted. Such a capital improvement license shall be issued if in the judg- 43 ment of the [state racing and wagering board] commission the public 44 interest, convenience or necessity will be served thereby and a proper 45 case for the issuance of such a license is shown consistent with the 46 purposes of sections two hundred twenty-two through seven hundred five 47 of this chapter and the best interests of racing generally, and in 48 determining the period and other terms of such capital improvement 49 license, the [state racing and wagering board] commission shall be guid- 50 ed by the nature of the capital improvement and the cost thereof. Such 51 capital improvement license shall automatically expire, irrespective of 52 the term thereof, when the loan of funds upon which it has been issued, 53 has been paid off by the licensee. Where a capital improvement license 54 is granted, the [state racing and wagering board] commission shall spec- 55 ify annually the dates on which, but not beyond the thirty-first day of 56 December, and hours during which such licensee may operate, at the plac-A. 9749 40 1 es and for the full number of days and hours specified in its capital 2 improvement license. 3 2. Every such license shall be issued upon condition: 4 a. [That] that every harness horse race meeting at which pari-mutuel 5 betting is conducted shall be subject to the supervision of and to the 6 reasonable rules and regulations from time to time prescribed by the 7 [state racing and wagering board] commission, and 8 b. [That] that pari-mutuel betting conducted thereunder shall also be 9 subject to the supervision of and to the reasonable regulations from 10 time to time prescribed by the [state tax commission] department of 11 taxation and finance. Any such license may also be issued upon any other 12 condition that the [state racing and wagering board] commission shall 13 determine to be necessary or desirable to insure that the public inter- 14 est, convenience or necessity is served. 15 3. Applications for licenses shall be in such form as may be 16 prescribed by the [board] commission and shall contain such information 17 or other material or evidence as the [board] commission may require. 18 Each application for renewal of a license shall be deemed to be an 19 application for a new license. The fee for such licenses shall be one 20 hundred dollars for each racing day payable in installments in advance 21 of each week's racing which sums shall be paid into the general fund of 22 the state treasury by the [board] commission. The term "racing week" 23 shall include those days as defined by the rules and regulations of the 24 [racing and wagering board] commission. 25 4. In considering an application for a license under this section the 26 [state racing and wagering board] commission may give consideration to 27 the number of licenses already granted and to the location of the tracks 28 previously licensed. No such license shall be granted to any track which 29 has not conducted pari-mutuel harness racing during at least ten calen- 30 dar years and which is located within ten miles of a state, county or 31 town fair conducting harness racing for the three consecutive years 32 immediately preceding April second, nineteen hundred fifty-three, which 33 license shall be operative during the racing dates of such fair, unless 34 the association, corporation or society conducting such fair shall 35 affirmatively waive objection to the issuance of such license for dates 36 within such period. No such license shall be granted to any track 37 located within the corporate limits of a city of the first class. No 38 such license shall be granted to any harness horse racetrack located 39 within twenty-five miles of any track already licensed for the same 40 dates and hours except with the consent of the licensee located within 41 such twenty-five mile area. 42 5. The [board] commission may refuse to grant a license to an associ- 43 ation or corporation if it shall determine that: 44 a. Any officer, director, member or stockholder of such association or 45 corporation applying for a license, or of any association or corporation 46 [which] that owns stock in or shares in the profits, or participates in 47 the management, of the affairs of such applicant, or [which] that leases 48 to such applicant the track where [it shall] such applicant will operate 49 has: 50 (i) [has] been convicted of a crime involving moral turpitude; 51 (ii) [has] engaged in bookmaking or other forms of illegal gambling; 52 (iii) [has] been found guilty of any fraud or misrepresentation in 53 connection with racing or breeding; 54 (iv) [has] been guilty of any violation or attempt to violate any law, 55 rule or regulation of any racing jurisdiction for which suspension from 56 racing might be imposed in such jurisdiction;A. 9749 41 1 (v) [has] violated any rule, regulation or order of the [board] 2 commission; or 3 b. The experience, character or general fitness of any officer, direc- 4 tor or stockholder of any of the aforesaid associations or corporations 5 is such that the participation of such person in harness racing or 6 related activities would be inconsistent with the public interest, 7 convenience or necessity or with the best interests of racing generally; 8 but if the [board] commission determines that the interest of any stock- 9 holder referred to in this paragraph or in paragraph a of this subdivi- 10 sion is insufficient in the opinion of the [board] commission to affect 11 adversely the conduct of pari-mutuel harness racing by such association 12 or corporation in accordance with the provisions of this article, the 13 [board] commission may disregard such interest in determining whether or 14 not to grant a license to such association or corporation; or 15 c. The applicant is not the owner of the track at which it will 16 conduct pari-mutuel harness racing pursuant to the license applied for, 17 or that any person, firm, association or corporation other than the 18 applicant shares, or will share, in the profits of the applicant, other 19 than by dividends as a stockholder, or participates or will participate 20 in the management of the affairs of the applicant. 21 5-a. The [board] commission shall not issue a license pursuant to this 22 section to any harness racing association or corporation [which] that 23 does not apply to conduct at its facilities a minimum number of pari-mu- 24 tuel programs and pari-mutuel races at its facilities equal to at least 25 seventy-five [per centum] percent of the programs and races so conducted 26 during nineteen hundred eighty-five or during nineteen hundred eighty- 27 six, or one hundred [per centum] percent of the programs and races so 28 conducted during two thousand, whichever is greater; provided, however, 29 that for a harness racing association or corporation located in West- 30 chester and Erie counties, such minimum number of pari-mutuel programs 31 and pari-mutuel races at its facilities shall equal at least one hundred 32 [per centum] percent of the programs and races conducted during two 33 thousand. If the track did not conduct races during two thousand, such 34 minimum number of pari-mutuel programs and pari-mutuel races at its 35 facilities shall equal at least ninety [per centum] percent of the 36 programs and races conducted during two thousand at Buffalo raceway, in 37 the town of Hamburg and county of Erie, unless cancellation of a race 38 day because of an act of God, [which] that the [board] commission 39 approves or because of weather conditions that are unsafe or hazardous 40 [which] that the [board] commission approves shall not be construed as a 41 failure to conduct a race day; provided further, the [board] commission 42 shall not grant a license to such association or corporation upon appli- 43 cation unless such programs and races are conducted during the same 44 calendar year period as were conducted during the applicable period 45 above [utilized] used to measure the minimum number of pari-mutuel 46 programs and pari-mutuel races, as approved by the [board] commission. 47 Nothing in the foregoing paragraph shall affect any agreement in effect 48 on or before the effective date of this paragraph. The [board] commis- 49 sion may grant a license to such association or corporation to conduct 50 fewer such programs and races for good cause shown due to factors beyond 51 the control of such association or corporation, and upon consent of the 52 representative horsemen's association, as determined pursuant to section 53 three hundred eighteen of this article. 54 5-b. Notwithstanding any inconsistent provision of subdivision five-a 55 of this section and article ten of this chapter, where the [board] 56 commission certifies by December first of the proceeding year that theA. 9749 42 1 number of standardbred horses eligible for competition is less than that 2 of the base year as defined in subdivision five-a of this section, and 3 only if the authorized horsemen's association concurs as evidenced by a 4 written agreement between the track and the horsemen's association, a 5 licensee pursuant to this section may submit and the [board] commission 6 may accept a license application requesting a reduced number of race 7 dates where it is in the best interest of racing within this state and 8 provided that the licensee shall not be penalized or required by the 9 [board] commission to diminish simulcasting activities or incur an 10 increased tax liability as a result of a [board sanctioned] commission- 11 sanctioned reduction in its live racing activity under this subdivision. 12 6. The [board] commission shall also have power to refuse to grant a 13 license: 14 a. [To] to any association or corporation, the charter or certificate 15 of incorporation of which [shall fail] fails to contain a provision 16 requiring any stockholder, upon written demand of the association or 17 corporation, to sell his, her or its stock to the association or corpo- 18 ration at a price to be fixed in the manner otherwise provided by law, 19 provided such demand be made pursuant to written direction of the 20 [board] commission; and from and after the date of the making of such 21 demand, prohibiting the transfer of such certificate of stock, except to 22 the association or corporation; or 23 b. [To] to any association or corporation [which] that, having been a 24 licensee, has failed in the opinion of the [board] commission to proper- 25 ly maintain its track and plant in good condition or has failed to make 26 adequate provision for rehabilitation and capital improvements to its 27 track and plant. 28 7. Pending final determination of any question under this section, the 29 [board] commission may issue a temporary license upon such terms and 30 conditions as it may deem necessary, desirable or proper to effectuate 31 the provisions of sections two hundred twenty-two through seven hundred 32 five of this chapter. 33 8. Notwithstanding any other provision of this article, the [state34racing and wagering board] commission may, no more than once in any 35 calendar year, grant a license to any authorized harness racing associ- 36 ation or corporation to hold and conduct one additional harness race 37 meeting of not more than seven days duration, with pari-mutuel betting, 38 on any mile track within this state, to enable said authorized harness 39 racing association or corporation to conduct a special stakes race not 40 limited to the Hambletonian stakes and associated events. 41 9. The [board] commission shall have power to direct that every 42 certificate of stock of an association or corporation licensed under the 43 provisions of sections two hundred twenty-two through seven hundred five 44 of this chapter shall bear a legend plainly and prominently imprinted 45 upon the face of the certificate reading: "This certificate of stock is 46 transferable only subject to the provisions of section three hundred 47 three of the racing, pari-mutuel wagering and breeding law". 48 10. Notwithstanding the provisions of section three hundred twenty-one 49 of this [chapter] article, the refusal of an application for such 50 license shall be preceded by notice and an opportunity to be heard. In 51 the conduct of such hearing the [board] commission shall not be bound by 52 technical rules of evidence but all evidence offered before the [board] 53 commission shall be reduced to writing, and such evidence together with 54 the exhibits, if any, and the findings of the [board] commission, shall 55 be permanently preserved and shall constitute the record of the [board] 56 commission in such case. Such hearing may be presided over by theA. 9749 43 1 [chairman] chair of the [board] commission or by any member or by an 2 officer of the [board] commission designated by the [chairman] chair in 3 writing to act as hearing officer and such person or persons may issue 4 subpoenas for witnesses and administer oaths to witnesses. The hearing 5 officer, at the conclusion of the hearing shall make findings which, if 6 concurred in by [two members] a majority of the [board] commission, 7 shall become the findings of the [board] commission. The action of the 8 [board] commission in refusing a license shall be reviewable in the 9 supreme court in the manner provided by the provisions of article seven- 10 ty-eight of the civil practice law and rules. 11 § 47. The section heading and subdivision (a) of section 307-a of the 12 racing, pari-mutuel wagering and breeding law, as amended by chapter 284 13 of the laws of 2017, are amended to read as follows: 14 New [York bred] York-bred or wholly owned harness races. (a) Any asso- 15 ciation or corporation licensed to conduct harness race meetings at 16 which pari-mutuel betting is permitted may, if in its sole discretion 17 such association or corporation determines that it would be beneficial, 18 offer non-stakes races [which] that are limited to New [York bred] York- 19 bred horses or horses wholly owned by New York state residents. These 20 races may be written on such terms and conditions as any other race 21 authorized pursuant to law or regulation of the commission, notwith- 22 standing any preference date requirements. 23 § 48. Subdivisions 1, 2 and 4 of section 308 of the racing, pari-mutu- 24 el wagering and breeding law, as amended by section 1 of part CC of 25 chapter 60 of the laws of 2016, are amended to read as follows: 26 1. At all harness race meetings licensed by the [gaming] commission in 27 accordance with the provisions of sections two hundred twenty-two 28 through seven hundred five of this chapter qualified judges and starters 29 shall be designated by the [gaming] commission. Such officials shall 30 enforce the rules and regulations of the [gaming] commission and shall 31 render regular written reports of the activities and conduct of such 32 race meetings to the [gaming] commission. 33 2. The licensed racing corporations shall reimburse the [gaming] 34 commission for the per diem cost to the commission to employ one associ- 35 ate judge and the starter to serve at harness race meetings. The commis- 36 sion shall notify each such licensed racing corporation of the per diem 37 cost of the associate judge and the starter at the track of such 38 licensed racing corporation within sixty days of the end of each month. 39 Payment of the reimbursement required by this section shall be made to 40 the commission by each entity required to make such payments within 41 thirty days of such notification by the commission and shall cover all 42 the costs incurred during that month. A penalty of five percent of 43 payment due, and interest at the rate of one percent per month calcu- 44 lated from such date that payment is due to the date of the payment of 45 the per diem cost shall be payable in case any per diem cost imposed by 46 this subdivision is not paid when due. The commission shall promulgate 47 rules and regulations to ensure the proper reimbursement of such costs. 48 4. Any associate judge and starter whose per diem costs are reimbursed 49 by a licensed racing corporation shall remain employees of the [gaming] 50 commission and shall retain all the rights and privileges of their 51 current civil service jurisdictional classification and status and 52 collective bargaining unit representation. 53 § 49. Section 309 of the racing, pari-mutuel wagering and breeding 54 law, subdivision 1 as amended by chapter 164 of the laws of 2003, is 55 amended to read as follows:A. 9749 44 1 § 309. Licenses for participants and employees at harness race meet- 2 ings. 1. For the purpose of maintaining a proper control over harness 3 race meetings conducted pursuant to sections two hundred twenty-two 4 through seven hundred five of this chapter, the [state racing and wager-5ing board] commission may license drivers and such other persons partic- 6 ipating in harness horse race meets, as the [board] commission may by 7 rule prescribe, including, if the [board deem] commission deems it 8 necessary so to do, owners, and some or all persons exercising their 9 occupation or employed at harness race meets, provided, however, that no 10 such license shall be required for seasonal employees hired solely to 11 work for no longer than six weeks during the summer meet at the Syracuse 12 mile. Each applicant for a license shall pay to the [board] commission 13 an annual license fee as follows: owner's license, if a renewal, fifty 14 dollars, and if an original application, one hundred dollars; trainer's 15 license, twenty dollars; assistant trainer's license, twenty dollars; 16 driver's license, twenty dollars; farrier's license, twenty dollars; and 17 stable employee's license, five dollars. Such fees shall be paid to the 18 [board] commission and by it paid into the state treasury. The [board] 19 commission may by rule fix the license fees to be paid by other persons 20 required to be licensed by the rules of the [board] commission, not to 21 exceed twenty dollars per category. All such licenses, unless revoked 22 for cause shall be for the period of no more than one, two or three 23 years, as determined by rule of the [board] commission, expiring on the 24 applicant's birth date. Licenses current on the effective date of this 25 provision shall not be reduced in duration by this provision. An appli- 26 cant who applies for a license that, if issued, would take effect less 27 than six months prior to the applicant's birth date may, by payment of a 28 fifty percent higher fee, receive a license [which] that shall not 29 expire until the applicant's second succeeding birth date. For each 30 category of license, the applicant may apply for a two or three year 31 license by payment to the [board] commission of the appropriate multiple 32 of the annual fee. The applications for licenses shall be in writing, 33 accompanied by fingerprints and a photograph of the applicant, and shall 34 be in such form, and contain such other information, as the [board] 35 commission may require. Such fingerprints shall be submitted to the 36 division of criminal justice services for a state criminal history 37 record check, as defined in subdivision one of section three thousand 38 thirty-five of the education law, and may be submitted to the federal 39 bureau of investigation for a national criminal history record check. 40 Every person employed after May first, nineteen hundred fifty-four, by 41 such association or corporation, including officers and directors there- 42 of, whether or not such person be licensed, shall file fingerprints and 43 a photograph with the [board] commission within ten days after such 44 employment. The fingerprints so obtained from applicants for licenses 45 and from employees not to be licensed shall be forthwith transmitted by 46 the [board] commission to the division of criminal justice services and 47 may also be submitted to the federal bureau of investigation or any 48 other government agency having facilities for checking fingerprints for 49 the purpose of establishing the identity and the previous criminal 50 record, if any, of such person and such agency shall promptly report its 51 findings to the [board] commission in writing. 52 2. If the [state racing and wagering board shall find] commission 53 finds that the experience, character and general fitness of the appli- 54 cant are such that the participation of such person in harness horse 55 race meets will be consistent with the public interest, convenience and 56 necessity and with the best interests of racing generally in conformityA. 9749 45 1 with the purposes of sections two hundred twenty-two through seven 2 hundred five of this chapter, [it] the commission may thereupon grant a 3 license. 4 Without limiting the generality of the foregoing, the [board] commis- 5 sion may refuse to issue a license, pursuant to this section, if [it6shall find] the commission finds that the applicant has: 7 a. [Has] been convicted of a crime involving moral turpitude; 8 b. [Has] engaged in bookmaking or other form of illegal gambling; 9 c. [Has] been found guilty of any fraud or misrepresentation in 10 connection with racing or breeding; 11 d. [Has] been found guilty of any violation or attempt to violate any 12 law, rule or regulation of racing in any jurisdiction for which suspen- 13 sion from racing might be imposed in such jurisdiction; or 14 e. [Who has] violated any rule, regulation or order of the [board] 15 commission. The [board] commission may suspend or revoke a license 16 issued pursuant to this section if [it shall determine] the commission 17 determines that (i) the applicant or licensee has (1) [has] been 18 convicted of a crime involving moral turpitude; (2) [has] engaged in 19 bookmaking or other form of illegal gambling; (3) [has] been found guil- 20 ty of any fraud in connection with racing or breeding; (4) [has] been 21 guilty of any violation or attempt to violate any law, rule or regu- 22 lation of any racing jurisdiction for which suspension from racing might 23 be imposed in such jurisdiction; or (5) [who has] violated any rule, 24 regulation or order of the [board] commission, or (ii) [that] the expe- 25 rience, character or general fitness of any applicant or licensee is 26 such that the participation of such person in harness racing or related 27 activities would be inconsistent with the public interest, convenience 28 or necessity or with the best interests of racing generally. 29 3. Pending final determination of any question under this section, the 30 [board] commission may issue a temporary license upon such terms and 31 conditions as it may deem necessary, desirable or proper to effectuate 32 the provisions of sections two hundred twenty-two through seven hundred 33 five of this chapter. 34 § 50. Section 310 of the racing, pari-mutuel wagering and breeding 35 law, as amended by chapter 240 of the laws of 2010, is amended to read 36 as follows: 37 § 310. Power of the [state racing and wagering board] commission to 38 impose fines and penalties. [In] The commission, in addition to its 39 power to suspend or revoke licenses granted by [it] the commission, [the40state racing and wagering board] is [hereby] authorized and empowered to 41 impose monetary fines upon any corporation, association or person 42 participating in any way in any harness race meet at which pari-mutuel 43 betting is conducted, other than as a patron, and whether licensed by 44 the [board] commission or not, for a violation of any provision of this 45 chapter or the rules promulgated by the [board] commission pursuant 46 thereto, not exceeding [twenty-five thousand dollars for each violation] 47 the amounts set forth in section one hundred sixteen of this chapter. 48 The [board] commission is further authorized and empowered to impose 49 monetary fines, not exceeding [twenty-five thousand dollars for each50violation] the amounts set forth in section one hundred sixteen of this 51 chapter, upon any such corporation, association or person for a 52 violation of any order issued by the [board] commission pursuant to the 53 provisions of this chapter or the rules promulgated by the [board] 54 commission pursuant thereto, provided that a copy of such order shall 55 have been served, either personally or by registered mail, upon the 56 corporation, association or person to whom the same was directed, priorA. 9749 46 1 to the occurrence of the violation for which such fine is imposed. Such 2 fines shall be paid into the treasury of the state. The action of the 3 [board] commission in imposing any monetary fine shall be reviewable in 4 the supreme court in the manner provided by and subject to the 5 provisions of article seventy-eight of the civil practice law and rules. 6 § 51. Section 311 of the racing, pari-mutuel wagering and breeding law 7 is amended to read as follows: 8 § 311. Refunds. Moneys received by the [board] commission pursuant to 9 this article may within one year from the receipt thereof be refunded to 10 the party for whose account the same were received on proof satisfactory 11 to the [board] commission that: 12 1. [Such] such moneys were in excess of the amount required by law[.]; 13 2. [The] the license for which application was made has been refused 14 by the [board.] commission; 15 3. [Such] such moneys were received as a fine and the [board] commis- 16 sion has after review reduced the amount of such fine[.]; or 17 4. [Upon appeal, the court] upon judicial review, a court of competent 18 jurisdiction reduced or remitted the fine imposed. 19 Such refunds shall, upon approval by the [board] commission and after 20 audit by the comptroller, be paid from any moneys in the custody of the 21 department received pursuant to this article. 22 § 52. Subdivision 2 of section 312 of the racing, pari-mutuel wagering 23 and breeding law, as amended by chapter 476 of the laws of 2018, is 24 amended to read as follows: 25 2. Any appointment of a special police officer under this section 26 shall [only] be made only with the approval of the [state racing and27wagering board] commission. Application for such approval shall be in 28 such form as may be prescribed by the [board] commission and shall 29 contain such other information or material or evidence as the [board] 30 commission shall require. In acting on an application for such approval 31 the [board] commission shall consider the background, experience, integ- 32 rity, and competence of the candidate for appointment, the public inter- 33 est, convenience or necessity and the interests of harness racing gener- 34 ally. The [board] commission in its discretion may set the term of any 35 such appointment, terminate any existing appointment at any time and 36 prescribe conditions and rules for the conduct of such office. 37 § 53. Section 313 of the racing, pari-mutuel wagering and breeding law 38 is amended to read as follows: 39 § 313. Place and manner of conducting pari-mutuel betting. Any corpo- 40 ration or association licensed to conduct pari-mutuel betting at a 41 harness race meeting shall provide a place or places within race meeting 42 grounds or enclosure at which such licensee shall conduct the pari-mutu- 43 el system of betting by its patrons on the result of the harness horse 44 races at such meetings. Such licensee shall cause to be erected a sign 45 or board upon which shall be displayed the approximate straight odds on 46 each horse in any race; the total amount wagered upon each horse in each 47 pool; the value of a [two dollar] two-dollar winning mutuel ticket, 48 straight, place or show on the first three horses in any race; the 49 elapsed time of the race; the value of a [two dollar] two-dollar winning 50 daily double ticket, if a daily double be conducted, and any other 51 information that the [state racing and wagering board] commission may 52 deem necessary for the guidance of the general public. All machines and 53 equipment used for pari-mutuel betting or for the display of the forego- 54 ing information must be approved by the [state racing and wagering55board] commission and the [state tax commission] department of taxation 56 and finance before being used, but neither the [board] commission norA. 9749 47 1 the [commission] department of taxation and finance shall require the 2 installation of any particular make of mechanical or electrical equip- 3 ment. 4 § 54. Subdivision 2 of section 314 of the racing, pari-mutuel wagering 5 and breeding law is amended to read as follows: 6 2. Notwithstanding the provisions of any general or special statute of 7 this state or of any local law or ordinance of any municipality within 8 the state, whether such provision or provisions be penal in character or 9 otherwise, the provisions of sections two hundred twenty-two through 10 seven hundred five of this chapter and the rules, regulations and 11 requirements of the [state racing and wagering board] commission relat- 12 ing to the time when and place where or manner in which the harness 13 races shall be conducted in this state and the control of the grounds 14 and structures erected or to be erected thereon upon and at which such 15 racing is conducted and the activities conducted thereat and thereon in 16 connection with any trial or contest of speed or power of endurance of 17 harness horses shall be construed and deemed to be exclusive of and 18 shall supersede any provisions of such other general or special statute, 19 local law or ordinance in any wise relating thereto, insofar as the same 20 affect or relate to trotting or harness racing, nor shall the provisions 21 of article two hundred twenty-five of the penal law be deemed to apply 22 to pari-mutuel betting conducted pursuant to sections two hundred twen- 23 ty-two through seven hundred five of this chapter. 24 § 55. Section 315 of the racing, pari-mutuel wagering and breeding law 25 is amended to read as follows: 26 § 315. Bond required of corporation or association conducting pari-mu- 27 tuel betting. Every corporation or association licensed by the [state28racing and wagering board] commission to conduct harness horse race 29 meetings at which pari-mutuel betting shall be permitted, annually and 30 before the opening of any race meeting shall execute and file with the 31 state comptroller a bond to this state in a penalty to be fixed by the 32 [state tax commission] department of taxation and finance not exceeding 33 two hundred fifty thousand dollars, with sureties approved by the attor- 34 ney general, that it will keep its books and records and make reports as 35 required by sections two hundred twenty-two through seven hundred five 36 of this chapter, that it will pay to the state all taxes imposed by this 37 chapter, that it will distribute to the patrons of pari-mutuel pools 38 conducted by it all sums due upon presentation of winning tickets held 39 by them, and that it will otherwise comply with all of the provisions of 40 sections two hundred twenty-two through seven hundred five of this chap- 41 ter and with the rules and regulations prescribed by the [state racing42and wagering board] commission and the [state tax commission] department 43 of taxation and finance. 44 § 56. Section 317 of the racing, pari-mutuel wagering and breeding law 45 is amended to read as follows: 46 § 317. Filing of certain agreements with the [state racing and wager-47ing board] commission. Every association or corporation licensed to 48 conduct harness race meetings at which pari-mutuel betting is permitted 49 shall promptly after entering into any lease, agreement concerning any 50 concession, labor management relations, the hiring of designated classes 51 of officers, employees or contractors specified by the [board] commis- 52 sion or any such other contract, agreement or arrangement as the [state53racing and wagering board] commission may from time to time prescribe, 54 file with the [state racing board] commission a true and correct copy, 55 or an accurate summary, if oral, thereof.A. 9749 48 1 § 57. Subdivisions 1 and 5 of section 318 of the racing, pari-mutuel 2 wagering and breeding law, the opening paragraph of subdivision 1 as 3 amended by section 6 of part F3 of chapter 62 of the laws of 2003, the 4 second undesignated paragraph of subdivision 1, the opening paragraph of 5 paragraph a of subdivision 1 and subparagraphs (i) and (ii) of paragraph 6 a of subdivision 1 as amended and subparagraph (iv) of paragraph b of 7 subdivision 1 as added by chapter 281 of the laws of 1994, paragraphs a, 8 b and c of subdivision 1 as amended and subdivision 5 as added by chap- 9 ter 261 of the laws of 1988, subparagraph (iii) of paragraph a of subdi- 10 vision 1 and subparagraph (i) of paragraph b of subdivision 1 as amended 11 by chapter 280 of the laws of 2001, subparagraph (ii) of paragraph b of 12 subdivision 1 as amended by chapter 484 of the laws of 2000, paragraph d 13 of subdivision 1 as amended by section 3 of part BB of chapter 60 of the 14 laws of 2016 and paragraph d of subdivision 5 as amended by chapter 503 15 of the laws of 1989, are amended to read as follows: 16 1. Except as otherwise provided by law, every association or corpo- 17 ration authorized under this article to conduct pari-mutuel betting at a 18 harness horse race meeting on races run thereat shall distribute all 19 sums deposited in any pari-mutuel pool to the holders of winning tickets 20 therein, provided such tickets be presented for payment prior to April 21 first of the year following the year of their purchase, less an amount 22 [which] that shall be established and retained by such racing associ- 23 ation or corporation of between fourteen and twenty [per centum] percent 24 of the total deposits in pools resulting from regular bets, less sixteen 25 to twenty-two [per centum] percent of the total deposits in pools 26 resulting from multiple bets, less twenty to thirty [per centum] percent 27 of the total deposits in pools resulting from exotic bets, and less 28 twenty to thirty-six [per centum] percent of the total betting deposits 29 in pools resulting from super exotic bets, plus the breaks. The 30 retention rate to be established is subject to the prior approval of the 31 [racing and wagering board] commission. Such rate may not be changed 32 more than once per calendar quarter to be effective on the first day of 33 the calendar quarter. 34 "Exotic bets" and "multiple bets" shall have the meanings set forth in 35 section five hundred nineteen of this chapter, "super exotic bets" shall 36 have the meaning set forth in subdivision four of section three hundred 37 one of this article and "the breaks" are hereby defined as the odd cents 38 over any multiple of ten for regular and multiple bets, or for exotic 39 bets, over any multiple of fifty, or for super exotic bets, over any 40 multiple of one hundred calculated on the basis of one dollar and other- 41 wise payable to a patron, provided however, that effective after October 42 fifteenth, nineteen hundred ninety-four breaks are hereby defined as the 43 odd cents over any multiple of five for payoffs greater than one dollar 44 five cents but less than five dollars, over any multiple of ten for 45 payoffs greater than five dollars but less than twenty-five dollars, 46 over any multiple of twenty-five for payoffs greater than twenty-five 47 dollars but less than two hundred fifty dollars, or over any multiple of 48 fifty for payoffs over two hundred fifty dollars. 49 a. Of the sum so retained from on-track pari-mutuel betting pools, 50 such association or corporation authorized to operate in Westchester or 51 Nassau county: (i) shall pay to the commissioner of taxation and finance 52 as a reasonable tax for the privilege of conducting pari-mutuel betting 53 at races run at race meetings held by such corporation or association, a 54 tax, which is hereby levied, at the [following rates:] rate of [total55daily on-track pools resulting from regular bets, one and six-tenths per56centum; of the total daily on-track pools resulting from multiple bets,A. 9749 49 1one and thirty-five hundredths per centum; of total daily on-track pools2resulting from exotic bets, four and eighty-five hundredths per centum;3and of total daily on-track pools resulting from super exotic bets,4seven per centum, plus fifty per centum of the breaks. Effective Septem-5ber first, nineteen hundred ninety-four, such tax shall be] one-half of 6 one [per centum] percent of all wagers from total daily on-track pools. 7 Such association or corporation shall receive credit as a reduction of 8 the daily tax by the state for the privilege of conducting pari-mutuel 9 betting of amounts equal to [one and one-half per centum] four-tenths 10 percent of total daily pools resulting from the simulcast of such asso- 11 ciation's or corporation's races to licensed facilities operated by 12 regional off-track betting corporations in accordance with section one 13 thousand eight of this chapter; provided, however, that in no event 14 shall total daily credit exceed [one and one half per centum] four- 15 tenths percent of the total daily pool of such association or corpo- 16 ration. [Provided, however, that on and after September first, nineteen17hundred ninety-four, such credit shall be four-tenths percent of total18daily pools resulting from such simulcasting and that in no event shall19such total daily credit exceed four-tenths percent of the total daily20pool of such association or corporation.] An amount equal to fifty [per21centum] percent of such credit shall be used to increase purses[.22Provided]; provided, however, that for any [twelve month] twelve-month 23 period beginning on April first in nineteen hundred ninety and any year 24 thereafter, each of the applicable rates set forth above shall be 25 increased by one-half of one [per centum] percent on all on-track bets 26 of any such racing association or corporation that did not expend an 27 amount equal to at least one-half of one [per centum] percent of its 28 on-track bets during the immediately preceding calendar year for 29 enhancements consisting of capital improvements as defined by section 30 three hundred nineteen of this [chapter] article, repairs to its phys- 31 ical plant, structures, and equipment used in its racing or wagering 32 operations, as certified by the [state racing and wagering board] 33 commission to the commissioner of taxation and finance no later than 34 eighty days after the close of such calendar year, and five special 35 events at each track in each calendar year, not otherwise conducted in 36 the ordinary course of business, the purpose of which shall be to 37 encourage, attract and promote track attendance and encourage new and 38 continued patronage, which events shall be [approved by the racing and39wagering board] subject to the approval of the commission for purposes 40 of this subdivision. In the determination of the amounts expended for 41 such enhancements, the [board] commission shall consider the average of 42 the two immediately preceding [twelve month] twelve-month calendar peri- 43 ods. Notwithstanding the foregoing no increase shall be imposed unless 44 such corporation or association has been afforded notice and opportunity 45 to be heard. The [racing and wagering board] commission shall promulgate 46 rules and regulations to implement the provisions relating to notice and 47 hearing. 48 (ii) except as otherwise provided in this paragraph an amount equal to 49 six and eight-tenths [per centum] percent of the total pool resulting 50 from on-track regular bets, an amount equal to seven and ninety-five one 51 hundredths [per centum] percent of the total pool resulting from 52 on-track multiple bets, an amount equal to ten and one-half [per centum] 53 percent of the total pool resulting from on-track exotic bets, an amount 54 equal to fifteen and one-half [per centum] percent of the total daily 55 pool resulting from on-track super exotic bets shall be used exclusively 56 for purses, of which an amount of not less than ninety [per centum]A. 9749 50 1 percent shall be used exclusively for purses for overnight races 2 conducted by such association or corporation. Such amounts may be 3 reduced upon an application approved by the [board] commission and an 4 agreement between the licensed harness racing corporation or association 5 and the representative horsemen's organization as a condition to reduce 6 the amounts of retained percentages as provided for in this section. 7 However, of the total amount available for purses, an amount as deter- 8 mined by contractual obligations between an organization representing at 9 least fifty-one [per centum] percent of the owners and trainers [utiliz-10ing] using the facilities of such association or corporation for racing, 11 training or stabling purposes and the association or corporation, shall 12 be used for the administrative purposes of said organization and for 13 such welfare and medical plans for regularly employed backstretch 14 employees principally employed at the facilities of such corporation or 15 association as provided by said organization, provided, however, that 16 eligibility for benefits in such plans shall not be conditioned upon 17 membership in such organization by any employee or employer thereof, and 18 any denial of eligibility for benefits in such plans which, upon inves- 19 tigation and review by the [board] commission, is determined to have 20 resulted from a person, firm, association, corporation or organization 21 knowingly aiding in or permitting eligibility for benefits being condi- 22 tioned upon membership in such organization shall subject such organiza- 23 tion to the penalties imposed under sections three hundred ten and three 24 hundred twenty-one of this article but the ratio between the amounts 25 actually expended for such welfare and medical plans and the cost actu- 26 ally incurred in administering such welfare and medical plans for fiscal 27 years of such corporation or association, on or after July twenty- 28 fourth, nineteen hundred eighty-one, shall not be less than the ratio 29 between such amounts actually expended and such costs actually incurred 30 for the fiscal year immediately prior to such date. Such organization 31 shall annually on or before July first certify to the [state racing and32wagering board] commission that it represents at least fifty-one [per33centum] percent of such owners and trainers and provide copies of such 34 certification to such association or corporation. Any other organization 35 claiming to represent at least fifty-one [per centum] percent of such 36 owners and trainers may file a challenge with the [state racing and37wagering board] commission within fifteen days of such original certif- 38 ication. The [state racing and wagering board] commission shall examine 39 such claim and may undertake studies and conduct hearings to determine 40 the validity of such claim. Within sixty days of receiving such chal- 41 lenge and based upon the findings of such studies and hearings, the 42 [state racing and wagering board] commission shall render a decision on 43 the validity of such claim and advise such organizations and association 44 or corporation of its determination. Upon receipt of such original 45 certification by such organization, the association or corporation shall 46 make such payments to said organization and, in the event of a challenge 47 brought to any other organization, such payments shall continue to be 48 made until such time as the [state racing and wagering board] commission 49 renders its decision on such challenge; and 50 (iii) the balance of the retained percentage of such pools and the 51 balance of the breaks may be held by such association or corporation for 52 its own use and purposes except as provided in paragraph c of this 53 subdivision and in subdivision four of section three hundred one of this 54 article, provided, however, that the [board] commission shall report 55 annually, on or before July first, to the director of the budget, the 56 [chairman] chair of the senate finance committee and the [chairman]A. 9749 51 1 chair of the assembly ways and means committee the extent to which such 2 corporations and associations [utilized] used such retained percentages 3 and breakage for operations, maintenance, capital improvements, adver- 4 tising and promotion, administration and general overhead and evaluate 5 the effectiveness and make recommendations with respect to the applica- 6 tion of the reduced rates of taxation as provided for in subparagraph 7 (i) of this paragraph in accomplishing the objectives stated therein. 8 Such report shall also specify the amounts of such retained percentages 9 and breakage used for investments not directly related to racing activ- 10 ities and such amounts used to declare dividends or other profit 11 distributions, additions to capital stock, its sale and transfer and 12 additions to retained earnings. Such reports shall also include an 13 analysis of any such agreements or proposals to conduct or otherwise 14 expand wagers authorized under article ten of this chapter and present 15 its conclusions with respect to the conduct of such wagering, the nature 16 of such proposals and agreements, and recommendations to ensure the 17 future maintenance of the intent of this article and article ten of this 18 chapter. 19 b. (i) Of the sums retained by any other licensed harness racing asso- 20 ciation or corporation other than those described in paragraph a of this 21 subdivision, the applicable tax rates for regular bets shall be six- 22 tenths of one [per centum] percent; for multiple bets shall be one and 23 one-tenth [per centum] percent; for exotic bets shall be five and six- 24 tenths [per centum] percent and for super exotic bets shall be seven 25 [per centum] percent, plus fifty [per centum] percent of the breaks. 26 Effective September first, nineteen hundred ninety-four, for all 27 licensed harness racing associations and corporations [which] that have 28 entered into a contract with their representative horsemen's association 29 on and after such date, such tax shall be one-half of one [per centum] 30 percent of all wagers, plus fifty [per centum] percent of the breaks. 31 Provided, however, that for any [twelve month] twelve-month period 32 beginning on April first in nineteen hundred ninety and any year there- 33 after, each of the applicable rates set forth above shall be increased 34 by one-quarter of one [per centum] percent on all on-track bets of any 35 such racing association or corporation that did not expend an amount 36 equal to at least one-half of one [per centum] percent of its on-track 37 bets during the immediately preceding calendar year for enhancements 38 consisting of capital improvements as defined by section three hundred 39 nineteen of this article, repairs to its physical plant, structures, and 40 equipment used in its racing or wagering operations, as certified by the 41 [state racing and wagering board] commission to the commissioner of 42 taxation and finance no later than eighty days after the close of such 43 calendar year, and five special events at each track in each calendar 44 year, not otherwise conducted in the ordinary course of business, the 45 purpose of which shall be to encourage, attract and promote track 46 attendance and encourage new and continued patronage, which events shall 47 be [approved by the racing and wagering board] subject to the approval 48 of the commission for purposes of this subdivision. In this regard, 49 expenditures by a county agricultural society pursuant to section three 50 hundred nineteen of this article shall be credited to the applicable 51 harness racing association or corporation for this purpose. In the 52 determination of the amounts expended for such enhancements, the [board] 53 commission may consider the immediately preceding [twelve month] twelve- 54 month calendar period or the average of the two immediately preceding 55 [twelve month] twelve-month calendar periods. Notwithstanding the fore- 56 going no increase shall be imposed unless such corporation or associ-A. 9749 52 1 ation has been afforded a notice and opportunity to be heard [and no2increase shall be imposed during nineteen hundred ninety-five on the3authorized harness racing association conducting a special seven day4harness race meeting that did not make such required expenditures during5nineteen hundred ninety-four]. The [racing and wagering board] commis- 6 sion shall promulgate rules and regulations to implement the provisions 7 relating to notice and hearing. 8 Such associations or corporations shall receive credit as a reduction 9 of the daily tax by the state for the privilege of conducting pari-mutu- 10 el betting of amounts equal to [one per centum] four-tenths percent of 11 total daily pools resulting from the simulcast of such association's or 12 corporation's races to licensed facilities operated by regional off- 13 track betting corporations in accordance with section one thousand eight 14 of this chapter, provided however, that in no event shall the total 15 daily credit exceed [one per centum] four-tenths percent of the total 16 daily pool of such association or corporation which tax is hereby levied 17 and shall be paid to the commissioner of taxation and finance as a 18 reasonable tax imposed by the state for the privilege of conducting 19 pari-mutuel betting at races run at race meetings held by such associ- 20 ation or corporation. [Provided, however, that on and after September21first, nineteen hundred ninety-four such credit shall be four-tenths22percent of total daily pools resulting from such simulcasting and that23in no event shall such total daily credit exceed four-tenths percent of24the total daily pool of such association or corporation.] The [racing25and wagering board] commission shall report annually, before July first, 26 to the director of the budget, the [chairman] chair of the senate 27 finance committee and the [chairman] chair of the assembly ways and 28 means committee the extent to which such corporations and associations 29 [utilized] used such retained percentages and breakage for operations, 30 maintenance, capital improvements, advertising and promotion, adminis- 31 tration and general overhead and evaluate the effectiveness and make 32 recommendations with respect to the application of the reduced rates of 33 taxation as provided for in this subparagraph in accomplishing the 34 objectives stated therein. Such report shall also specify the amounts of 35 such retained percentages and breakage used for investments not directly 36 related to racing activities and such amounts used to declare dividends 37 or other profit distributions, additions to capital stock, its sale and 38 transfer and additions to retained earnings. Such reports shall also 39 include an analysis of any such agreements or proposals to conduct or 40 otherwise expand wagers authorized under article ten of this chapter and 41 present its conclusions with respect to the conduct of such wagering, 42 the nature of such proposals and agreements, and recommendations to 43 ensure the future maintenance of the intent of this article. 44 (ii) Of the sums retained by such association or corporation, an 45 amount equal to one and three-quarters [per centum] percent of the total 46 pool resulting from on-track regular, multiple and exotic bets shall be 47 used exclusively for the purpose of increasing purses awarded in over- 48 night races conducted by such association or corporation. Such amounts 49 shall be in addition to purse moneys otherwise provided pursuant to 50 existing contractual obligations. In this regard an amount equal to 51 twelve [per centum] percent of the total bets in super exotic pools 52 shall be used for purses in lieu of any such contractual obligations 53 [which] that might otherwise apply to purses to be awarded on super 54 exotic bets. Any portion of such amount not so used during any year 55 shall be so used during the following year, failing which such portion 56 shall be payable to the commissioner of taxation and finance as addi-A. 9749 53 1 tional tax. In addition to the amounts required in this paragraph, fifty 2 percent of all additional sums retained, as a result of tax reductions 3 provided in this section after September first, nineteen hundred nine- 4 ty-four to qualified licensed harness racing associations, shall be used 5 exclusively for purposes of increasing purses awarded in overnight races 6 conducted by such association or corporation, provided that such associ- 7 ation or corporation has entered into a written agreement with its 8 representative horsemen's organization on and after September first, 9 nineteen hundred ninety-four. Notwithstanding anything contained herein 10 to the contrary, in a harness special betting district the amount to be 11 used for purses or the methodology for calculating the amount to be used 12 for purses may be specified in a written contract between a harness 13 racing association or corporation and its representative horsemen's 14 association. The balance of the retained percentage of such pool may be 15 held by such corporation or association for its own use and purposes. 16 (iii) Of the amount of the breaks from on-track regular, multiple, 17 exotic and super exotic bets such association or corporation shall pay 18 fifty [per centum] percent to the commissioner of taxation and finance. 19 The balance of such breaks may be held by such association or corpo- 20 ration for its own use and purposes. 21 (iv) The [state racing and wagering board] commission shall as a 22 condition of racing require an association authorized to operate in 23 areas other than Westchester or Nassau county to withhold one percent of 24 all purses and to pay such sum to the horsemen's organization represent- 25 ing the owners and trainers [utilizing] using the facilities of such 26 association which had a contract with the association governing the 27 conditions of racing on January first, nineteen hundred ninety-two, as 28 determined by the [board] commission. 29 Any other horsemen's organization may apply to the [board] commission 30 to be approved as the qualified organization to receive payment of the 31 one percent of all purses by submitting to the [board] commission proof 32 of both, that (i) [it] such organization represents more than fifty-one 33 percent of all the owners and trainers [utilizing] using the same facil- 34 ities and (ii) the horsemen's organization previously approved as quali- 35 fied by the [board] commission does not represent fifty-one percent of 36 all the owners and trainers [utilizing] using the same facilities. If 37 the [board] commission is satisfied that the documentation submitted 38 with the application of any other horsemen's organization is conclusive 39 with respect to subparagraphs (i) and (ii) [above] of this paragraph, 40 [it] the commission may approve the applicant as the qualified recipient 41 organization. 42 In the best interests of racing, upon receipt of such an application, 43 the [board] commission may direct the payments to the previously quali- 44 fied horsemen's organization to continue uninterrupted, or it may direct 45 the payments to be withheld and placed in interest-bearing accounts for 46 a period not to exceed ninety days, during which time the [board] 47 commission shall review and approve or disapprove the application. Funds 48 held in such manner shall be paid to the organization approved by the 49 [board] commission. In no event shall the [board] commission accept more 50 than one such application in any calendar year from the same horsemen's 51 organization. 52 The funds authorized to be paid by the [board] commission are to be 53 used exclusively for the benefit of those horsemen racing in New York 54 state through the administrative purposes of such qualified organiza- 55 tion, benevolent activities on behalf of backstretch employees, and for 56 the promotion of equine research.A. 9749 54 1 c. Of the sums retained by any harness racing association or corpo- 2 ration, an amount equal to [three-fifths of] one [per centum] percent of 3 the total pools resulting from on-track regular, multiple and exotic 4 bets and an amount equal to three [per centum] percent of the total 5 pools resulting from on-track super exotic bets shall be paid to the 6 agriculture and New York state horse breeding development fund[,7provided, however, that after April first, nineteen hundred eighty-six,8the amount to be paid to the agriculture and New York state horse breed-9ing development fund shall equal one per centum of the total pools10resulting from on-track regular, multiple and exotic bets and an amount11equal to three per centum of the total pools resulting from super exotic12bets]. 13 d. Every harness racing association or corporation shall pay to the 14 [gaming] commission as a regulatory fee, which fee is hereby levied, 15 six-tenths of one percent of the total daily on-track pari-mutuel pools 16 of such association or corporation. 17 5. Tax rates in event of failure to maintain pari-mutuel racing activ- 18 ity. a. Notwithstanding any other provision of this section to the 19 contrary, for any calendar year commencing on or after January first, 20 nineteen hundred eighty-nine, in which a harness racing association or 21 corporation does not conduct a minimum number of pari-mutuel programs 22 and pari-mutuel races at its facilities equal to at least ninety [per23centum] percent of the programs and races so conducted during nineteen 24 hundred eighty-five or during nineteen hundred eighty-six, whichever is 25 less, in lieu of the tax rates set forth in subdivision one of this 26 section the applicable pari-mutuel tax rates for such association or 27 corporation with respect to on-track pari-mutuel betting pools during 28 such year shall be as follows: 29 (i) For such an association or corporation authorized to operate in 30 Westchester or Nassau county: of total daily on-track pools resulting 31 from regular bets, three and seventy-five hundredths [per centum] 32 percent of the first five hundred thousand dollars comprising such pools 33 and five and twenty-five hundredths [per centum] percent of the amount 34 in excess of five hundred thousand dollars, plus fifty [per centum] 35 percent of the breaks; of total daily on-track pools resulting from 36 multiple bets, four and seventy-five hundredths [per centum] percent of 37 the first three hundred thousand dollars comprising such pools and six 38 and twenty-five hundredths [per centum] percent of the amount in excess 39 of three hundred thousand dollars, plus fifty [per centum] percent of 40 the breaks; of total daily on-track pools resulting from exotic bets, 41 eight and seventy-five hundredths [per centum] percent of the first two 42 hundred thousand dollars comprising such pools, and ten and twenty-five 43 hundredths [per centum] percent of the amount in excess of two hundred 44 thousand dollars, plus fifty [per centum] percent of the breaks; and of 45 total daily on-track pools resulting from super exotic bets, seven [per46centum] percent, plus fifty [per centum] percent of the breaks; and 47 (ii) For any harness racing association or corporation other than one 48 described in subparagraph (i) of this paragraph: of total daily on-track 49 pools resulting from regular bets, one and one-half [per centum] 50 percent, plus fifty [per centum] percent of the breaks; of total daily 51 on-track pools resulting from multiple bets, two [per centum] percent, 52 plus fifty [per centum] percent of the breaks; of total daily on-track 53 pools resulting from exotic bets, six and one-half [per centum] percent, 54 plus fifty [per centum] percent of the breaks; and of total daily 55 on-track pools resulting from super exotic bets, seven [per centum] 56 percent, plus fifty [per centum] percent of the breaks.A. 9749 55 1 b. The provisions of this subdivision shall not apply to an associ- 2 ation or corporation for any calendar year for which the [state racing3and wagering board] commission certifies to the commissioner of taxation 4 and finance: 5 (i) by December fifteenth of the year immediately preceding such year, 6 that such association or corporation has been assigned for such year, 7 from the programs and races it requested, at least the minimum number of 8 programs and races prescribed in paragraph a of this subdivision, or, if 9 fewer than such number were assigned for such year, that the assignment 10 of such lesser number was for good cause due to factors beyond the 11 control of such association or corporation or because the [board] 12 commission found that it would be uneconomical or impractical for such 13 association or corporation to be assigned the prescribed number; and 14 (ii) by January thirty-first of the year immediately subsequent to 15 such year, that such association or corporation did conduct such number 16 of programs and races as were certified pursuant to subparagraph (i) of 17 this paragraph, or if it failed to conduct such number that such failure 18 was for good cause due to factors beyond its control or because the 19 [board] commission found it uneconomical or impractical for such associ- 20 ation or corporation to conduct such a number. 21 c. For any calendar year for which the [state racing and wagering22board] commission does not certify pursuant to the provisions of subpar- 23 agraph (i) of paragraph b of this subdivision with respect to an associ- 24 ation or corporation, the tax imposed by this section shall be computed 25 by substituting the provisions of paragraph a of this subdivision for 26 the provisions of paragraph a or b, whichever is applicable, of subdivi- 27 sion one of this section and shall pay the tax so computed to the 28 commissioner of taxation and finance. In such computation and payment, 29 all other provisions of this section shall apply as if the provisions of 30 this paragraph and of paragraph a of this subdivision had been incorpo- 31 rated in whole in paragraph a or b, whichever is applicable, of subdivi- 32 sion one of this section. 33 d. For any calendar year for which the [state racing and wagering34board] commission does not certify pursuant to the provisions of subpar- 35 agraph (ii) of paragraph b of this subdivision with respect to an asso- 36 ciation or corporation, the tax required to be paid hereunder for such 37 year shall be equal to the difference between the tax imposed pursuant 38 to the provisions of paragraph a of this subdivision and the tax imposed 39 pursuant to the provisions of paragraph a or b, whichever is applicable, 40 of subdivision one of this section, less one-half of such difference in 41 recognition of purses [which] that were required to be paid, plus an 42 additional amount equal to ten [per centum] percent of such tax in the 43 event of a willful failure to comply with the provisions of subparagraph 44 (ii) of paragraph b of this subdivision and such association or corpo- 45 ration shall pay the tax so computed to the commissioner of taxation and 46 finance on or before March fifteenth of the following year. Notwith- 47 standing the provisions of this subdivision, in the event that upon 48 appeal from the determination of the [state racing and wagering board] 49 commission that the certification provided in paragraph b of this subdi- 50 vision will not be made, it is finally determined that [such board was51erroneous] the commission erred in failing to so certify and that any 52 moneys received by the commissioner of taxation and finance under para- 53 graph c of this subdivision were paid in error, the same shall be 54 refunded at the rate of interest of six percent per annum. Payment of 55 such tax due, or the anticipation of such payment, shall not affect the 56 determination of purses in the year in which such tax arises or in theA. 9749 56 1 year in which such payment is made nor shall such payment in any other 2 manner be considered in any statutory or [contractural] contractual 3 calculation of purse obligations. 4 e. Written notice of the certification of the [board] commission 5 pursuant to the provisions of paragraph b of this subdivision shall be 6 given by the [board] commission to the [appplicable] applicable associ- 7 ation or corporation by the dates therein specified. In like manner, 8 written notice that such certification will not be made shall be given 9 by the [board] commission to the commissioner of taxation and finance 10 and the applicable association or corporation by such dates. 11 § 58. Section 319 of the racing, pari-mutuel wagering and breeding 12 law, as added by chapter 687 of the laws of 1983, subdivision 2 as 13 amended by chapter 532 of the laws of 1989, paragraph (a) of subdivision 14 2 as amended by chapter 2 of the laws of 1995 and subdivision 3 as 15 amended by chapter 116 of the laws of 2001, is amended to read as 16 follows: 17 § 319. Capital improvements. 1. [Definitions.] For the purposes of 18 this section, [the following terms shall have the meanings set forth19unless the context requires a different meaning:20a. "Board" shall mean the New York state racing and wagering board.21b. "Capital] "capital improvement" shall mean any addition to, 22 replacement of or remodeling of the physical plant, structures and 23 equipment now or hereafter owned or leased by a racing corporation or 24 association [which] that is used or is to be used by such corporation or 25 association in connection with the conduct of horse race meetings, and 26 shall include improvements to land but not land itself. 27 2. (a) Notwithstanding the provisions of section three hundred eigh- 28 teen of this article, a harness track, may elect upon thirty days writ- 29 ten notice to the [racing and wagering board] commission to withhold, in 30 addition to any other amounts required by this section, one [per centum] 31 percent of the total deposits in pools resulting from regular and multi- 32 ple bets, provided, however, that any harness track withholding pursuant 33 to this subdivision shall use at least fifty percent of such one [per34centum] percent exclusively for capital improvements as defined in 35 subdivision one of this section subject to the rules and regulations of 36 the [racing and wagering board] commission. An amount, not to exceed 37 fifty percent of such one [per centum] percent, may be used for adver- 38 tising and promotion expenses subject to the rules and regulations of 39 the [board] commission. Provided further, however, that if the harness 40 track was owned prior to December thirty-first, nineteen hundred eight- 41 y-five, by a nonprofit county agricultural society and leased by a 42 racing association such one [per centum] percent shall be paid by the 43 association to the society as additional rent. Such society shall use 44 such one [per centum] percent exclusively for capital improvements as 45 defined in subdivision one of this section subject to the rules and 46 regulations of the [racing and wagering board] commission. The capital 47 improvements shall be determined by a committee of the society composed 48 of the executive director of the society, the [chairman] chair of the 49 board of directors of the racing association, or his or her designee, 50 and the general manager of the racing association. For the purposes of 51 this paragraph the term "advertising" shall be limited to paid advertis- 52 ing through radio, television, the print media, direct mail or bill- 53 boards. Promotions shall mean activities [which] that are intended to 54 increase the attendance at, or visibility of, a harness track and shall 55 include premium [give-aways] giveaways, prizes, free admission, free 56 parking, free programs, additional monies for purses or other activitiesA. 9749 57 1 of a promotional nature which stimulate on track attendance. In no event 2 shall this section be construed to permit the payment of salaries to 3 employees of such a harness track who are engaged in advertising or 4 promotional activities. 5 (b) At least once annually, prior to approving any plan for the 6 expenditure of such capital improvement funds pursuant to this section, 7 the [board] commission shall, together with the track operator and 8 representatives of the horsemen's organization representing owners and 9 trainers [utilizing] using the facility, inspect the entire facility, 10 including the area commonly referred to as the backstretch, in order to 11 determine whether the capital improvement plan submitted by the associ- 12 ation or corporation for [board] commission approval includes adequate 13 provision for expenditures relating to the continued health, safety and 14 well-being of patrons, backstretch personnel and the horses in their 15 care. After such inspection, if the [board] commission shall determine 16 that such proposed plan does not include adequate provision for repairs 17 and improvements necessary to correct any conditions that it has deter- 18 mined to be unsafe or otherwise deleterious to the health and safety of 19 patrons, employees or horses, the [board] commission shall require the 20 track operator to modify its capital improvement plan to provide for the 21 expenditure of funds for such repairs and improvements. 22 3. On or after July first, nineteen hundred ninety for a harness track 23 other than a harness track authorized to operate in Westchester or 24 Nassau county or a harness track owned by a non-profit county agricul- 25 tural society and leased by a harness racing association such amounts as 26 may be withheld for the purposes of this section shall be deposited in a 27 trust fund, kept and maintained by such corporation or association and 28 administered by a trustee approved by the [racing and wagering board] 29 commission for the purpose of lending such sums and any interest thereon 30 on an unsecured basis to such corporation or association exclusively for 31 capital improvements as defined in subdivision one of this section. All 32 such amounts borrowed by such corporation or association from such trust 33 shall be forgiven and deemed satisfied according to a schedule of depre- 34 ciation deductions for federal and New York state income tax purposes 35 for such related capital improvements. It is further provided that at 36 such time as such corporation or association shall surrender its pari- 37 mutuel license or fail to apply for a pari-mutuel license for the 38 succeeding year by December thirty-first of the preceding year that the 39 [racing and wagering board] commission may declare the trust fund at an 40 end and all sums therein deposited plus all sums due or owing from such 41 corporation or association to such trust shall be disposed of in accord- 42 ance with provisions of law to be enacted for such purpose; except that 43 the [racing and wagering board] commission shall direct that such sums 44 therein deposited and all sums due and owing from such corporation or 45 association be transferred to the credit of a successor in interest to 46 such corporation or association upon the licensing of such successor in 47 interest by the [board] commission. Such trust shall be established and 48 administered pursuant to the rules and regulations of the [racing and49wagering board] commission. 50 § 59. Section 320 of the racing, pari-mutuel wagering and breeding law 51 is amended to read as follows: 52 § 320. Revocation of license. The [state racing and wagering board] 53 commission may revoke or suspend a license for the conduct of harness 54 race meetings at which pari-mutuel betting is conducted: 55 a. For any cause [which] that would permit or require its refusal to 56 issue a license, orA. 9749 58 1 b. If it shall determine that: the corporation or association to which 2 such license shall have been issued, or its officers or directors, fail 3 to conduct racing at its track, including pari-mutuel betting on the 4 races thereat, in accordance with the terms and conditions of such 5 license, the rules of [such board] the commission or of the [state tax6commission] department of taxation and finance, or the provisions of 7 sections two hundred twenty-two through seven hundred five of this chap- 8 ter, or if such corporation or association or its officers or directors 9 shall knowingly permit on its grounds or within the enclosure of its 10 racetrack, lotteries, pool-selling or bookmaking, or any other kind of 11 gambling, in violation of sections two hundred twenty-two through seven 12 hundred five of this chapter or of the penal law. 13 § 60. Section 321 of the racing, pari-mutuel wagering and breeding law 14 is amended to read as follows: 15 § 321. Hearing of refusal or revocation of license. If the [state16racing and wagering board shall refuse] commission refuses to grant a 17 license applied for under sections two hundred twenty-two through seven 18 hundred five of this chapter, or [shall revoke] revokes or [suspend] 19 suspends such a license granted by it, or [shall impose] imposes a mone- 20 tary fine upon a participant in harness racing the applicant or licensee 21 or party fined may demand, within ten days after notice of [the said] 22 such act of the [board] commission, a hearing before the [board] commis- 23 sion and the [board] commission shall give prompt notice of a time and 24 place for such hearing at which the [board] commission will hear such 25 applicant or licensee or party fined in reference thereto. Pending such 26 hearing and final determination [thereon], the action of the [board] 27 commission in refusing to grant or in revoking or suspending a license 28 or in imposing a monetary fine shall remain in full force and effect. 29 The [board] commission may continue such hearing from time to time for 30 the convenience of any of the parties. Any of the parties affected by 31 such hearing may be represented by counsel, and the [board] commission 32 may be represented by the attorney general, a deputy attorney general or 33 its counsel. In the conduct of such hearing the [board] commission shall 34 not be bound by technical rules of evidence, but all evidence offered 35 before the [board] commission shall be reduced to writing, and such 36 evidence together with the exhibits, if any, and the findings of the 37 [board] commission, shall be permanently preserved and shall constitute 38 the record of the [board] commission in such case. In connection with 39 such hearing, each member of the [board] commission shall have the power 40 to administer oaths and examine witnesses, and may issue subpoenas to 41 compel attendance of witnesses, and the production of all material and 42 relevant reports, books, papers, documents, correspondence and other 43 evidence. The [board] commission may, if occasion shall require, by 44 order, refer to one or more of its members or officers, the duty of 45 taking testimony in such matter, and to report thereon to the [board] 46 commission, but no determination shall be made therein except by the 47 [board] commission. Within thirty days after the conclusion of such 48 hearing, the [board] commission shall make a final order in writing, 49 setting forth the reasons for the action taken by it and a copy thereof 50 shall be served on such applicant or licensee or party fined, as the 51 case may be. The action of the [board] commission in refusing to grant a 52 license or in revoking or suspending a license or in imposing a monetary 53 fine shall be reviewable in the supreme court in the manner provided by 54 the provisions of article seventy-eight of the civil practice law and 55 rules.A. 9749 59 1 § 61. Section 322 of the racing, pari-mutuel wagering and breeding 2 law, as amended by chapter 18 of the laws of 2008, is amended to read as 3 follows: 4 § 322. Approval of plans of corporation or association. The [state5racing and wagering board] commission shall not grant to a corporation 6 or association hereafter formed pursuant to sections two hundred twen- 7 ty-two through seven hundred five of this chapter, a license to conduct 8 a harness race meeting at which pari-mutuel betting may be conducted 9 within the state until such corporation or association shall have 10 submitted to the [board] commission a statement of the location of its 11 proposed grounds and racetrack, together with a plan of such racetrack, 12 and plans of all buildings, seating stands and other structures in such 13 form as the [board] commission may prescribe, and such plans shall have 14 been approved in writing by the [board] commission. Such plans shall 15 show that its paddock and barn areas can accommodate and serve the needs 16 of horses and horse trainers that participate in live racing at such 17 facility. Alterations or discontinuance of existing buildings, seating 18 stands and other structures, and the erection of new or additional 19 buildings, seating stands or other structures may be made only with the 20 prior written approval of the [board] commission and after examination 21 and inspection of the plans thereof and the issuance of a permit there- 22 for by the [state racing and wagering board] commission. The [board] 23 commission at the expense of the applicant may order such engineering 24 examination thereof as the [board] commission may deem necessary. The 25 approval of the certificate of incorporation of such corporation or 26 association shall not be deemed to vest in it the right to a license to 27 conduct harness race meetings at such race course or racetrack unless 28 such grounds, track, buildings, seating stands and other structures 29 shall be completed in accordance with the plans approved by the [board] 30 commission. 31 § 62. Section 324 of the racing, pari-mutuel wagering and breeding 32 law, as amended by chapter 370 of the laws of 2011, is amended to read 33 as follows: 34 § 324. Free or reduced fee passes, cards or badges. A corporation or 35 association licensed to conduct pari-mutuel betting on harness horse 36 races run at its racetrack may issue free passes, cards or badges to any 37 qualified person. A qualified person shall include, but need not be 38 limited to, officers and employees of the corporation or association 39 conducting the race meeting, members, officers, and employees of the 40 [state racing and wagering board] commission, members of harness racing 41 associations of other states and foreign countries, public officers 42 engaged in the performance of their duties, persons actually employed 43 and accredited by the press to attend such meetings, owners, stable 44 managers, trainers, drivers, concessionaires, spouses, domestic partners 45 and children of owners, trainers and drivers, other persons whose actual 46 duties require their presence at such racetrack, and any other person or 47 guest deemed appropriate by such corporation or association. In addi- 48 tion, free or reduced fee passes, cards or badges may be issued to the 49 general public or segments of the general public in connection with any 50 promotional campaign or marketing program sponsored by such corporation 51 or association to increase attendance at live race meets. The issuance 52 of free passes, cards or badges shall be under the rules and regulations 53 of the [state racing and wagering board] commission. 54 § 63. Subdivisions 1 and 2 of section 330 of the racing, pari-mutuel 55 wagering and breeding law, subdivision 1 as amended and subdivision 2 asA. 9749 60 1 added by section 12 of part A of chapter 60 of the laws of 2012, are 2 amended to read as follows: 3 1. There is hereby created within the state gaming commission the 4 "agriculture and New York state horse breeding development fund". Such 5 fund shall be a body corporate and politic constituting a public benefit 6 corporation. It shall be administered by a board of directors consisting 7 of the [chairman] chair of the [state gaming] commission or his or her 8 designee, the commissioner of agriculture and markets, and three members 9 appointed by the governor, all of whom are experienced or have been 10 actively engaged in the breeding of standardbred horses in New York 11 state, one upon the recommendation of the temporary president of the 12 senate and one upon the recommendation of the speaker of the assembly. 13 The governor shall designate the chair from among the sitting members of 14 such board of directors, who shall serve as such at the pleasure of the 15 governor. Appointed members shall serve for a term of four years and 16 shall continue to hold office until their successors are appointed and 17 qualified. The members of the board of directors of the fund shall 18 receive no compensation from the fund for their services as such members 19 but shall be reimbursed by the fund for the expenses actually and neces- 20 sarily [incurred by them] they incur in the performance of their duties 21 under sections two hundred twenty-two through seven hundred five of this 22 chapter. Such fund shall have perpetual existence and shall exercise all 23 powers authorized by this chapter and reasonably necessary for accom- 24 plishing its purposes. Such powers shall be exercised in the name of the 25 fund. 26 2. The board of directors of the fund may delegate to one or more of 27 the members or officers of the fund such powers and duties as it may 28 deem proper and shall [utilize] use, pursuant to a contract or memoran- 29 dum of understanding approved by the director of the budget, the service 30 employees of the [state gaming] commission and the state office of 31 racing promotion and development. 32 § 64. Section 401 of the racing, pari-mutuel wagering and breeding law 33 is amended to read as follows: 34 § 401. General powers of [state racing and wagering board] commission. 35 1. Pursuant to the provisions of sections two hundred twenty-two through 36 seven hundred five of this chapter, the [state racing and wagering37board] commission shall have power to supervise generally all quarter 38 horse race meetings in this state at which pari-mutuel betting is 39 conducted. The [board] commission may adopt rules and regulations not 40 inconsistent with sections two hundred twenty-two through seven hundred 41 five of this chapter to carry into effect its purposes and provisions 42 and to prevent circumvention or evasion thereof. In order that the rules 43 of quarter horse racing may be uniform throughout the United States, the 44 [board] commission may adopt the rules and regulations of the American 45 Quarter Horse Association, in whole or in part, and may adopt such other 46 or different rules as it deems necessary to carry into effect the 47 purposes and provisions of sections two hundred twenty-two through seven 48 hundred five of this chapter. 49 2. Without limiting the generality of the foregoing, and in addition 50 to its other powers: 51 a. The [state racing and wagering board] commission shall have power 52 to fix minimum and maximum charges for admission to quarter horse race 53 meetings at which pari-mutuel betting is conducted provided, however, 54 that the [state racing and wagering board] commission shall have power 55 to fix the charge for admission of members of the armed forces of theA. 9749 61 1 United States in uniform at one-half of the amount fixed for such admis- 2 sion generally under authority of this section. 3 b. The [state racing and wagering board] commission shall prescribe 4 rules and regulations for effectually preventing the use of improper 5 devices, the administration of drugs or stimulants or other improper 6 acts for the purpose of affecting the speed of quarter horses in any 7 race in which they are about to participate. 8 c. The rules of the [board] commission shall also provide that all 9 winning pari-mutuel tickets must be presented for payment before April 10 first of the year following the year of their purchase and failure to 11 present any such ticket within the prescribed period of time shall 12 constitute a waiver of the right to participate in the award or divi- 13 dend. 14 d. The [board] commission shall have power in its discretion, consist- 15 ent with the powers of the [state tax commission] department of taxation 16 and finance, to prescribe uniform methods of keeping accounts, records 17 and books to be observed by associations or corporations licensed under 18 the provisions of this article or by any association or corporation 19 [which] that owns stock in, or shares in the profits, or participates in 20 the management or affairs of, such licensed association or corporation, 21 or by any person, firm, association or corporation holding any conces- 22 sion, right or privilege to perform any service or sell any article at 23 any track at which pari-mutuel quarter horse racing meets are conducted. 24 The [board] commission may also in its discretion, consistent with the 25 powers of the [state tax commission] department of taxation and finance, 26 prescribe by order forms of accounts, records and memoranda to be kept 27 by such persons, firms, associations or corporations. The [board] 28 commission shall have power to visit, investigate, and place expert 29 accountants, or such other persons as it may deem necessary, in the 30 offices, tracks or other places of business of any such person, firm, 31 association or corporation for the purpose of seeing that the provisions 32 of sections two hundred twenty-two through seven hundred five of this 33 chapter and rules and regulations issued by the [board] commission ther- 34 eunder are strictly complied with. Such persons, firms, associations or 35 corporations shall annually file with the [board] commission, on such 36 date as the [board] commission shall prescribe, a report showing their 37 financial condition and financial transactions during the fiscal year, 38 including a balance sheet and a profit and loss statement, verified by 39 the oath of at least two of its principal officers, if it be an associ- 40 ation or corporation having officers, and by one or more of the owners 41 or proprietors thereof if not an association or corporation. The report 42 shall be in such form and contain such other matters as the [board] 43 commission may determine from time to time to be necessary to disclose 44 accurately the financial condition and operation of such persons, firms, 45 associations or corporations during the preceding fiscal year. The 46 [board] commission may for good cause shown grant a reasonable extension 47 of time for the filing of any such report. 48 § 65. The second undesignated paragraph of section 402 of the racing, 49 pari-mutuel wagering and breeding law is amended to read as follows: 50 No certificate of incorporation under this section shall hereafter be 51 filed without the approval of the [state racing and wagering board] 52 commission indorsed thereon or annexed thereto. 53 § 66. Section 403 of the racing, pari-mutuel wagering and breeding law 54 is amended to read as follows: 55 § 403. Filing of information concerning stock transfers; necessity for 56 [board's] commission approval. 1. Whenever there is a transfer of stockA. 9749 62 1 of any association or corporation [which] that is licensed under this 2 article, or of any association or corporation [which] that leases to 3 such licensee the track at [which] that it conducts pari-mutuel quarter 4 horse races, or which owns twenty-five percent or more of the stock of 5 such licensee [shall be made], there shall be filed simultaneously with 6 the association or corporation [which] that issued such stock the 7 following: 8 a. In duplicate, an affidavit executed by the transferee stating that 9 he or she is to be the sole beneficial owner thereof, and whether or not 10 he or she (i) has been convicted of a crime involving moral turpitude, 11 (ii) has been engaged in bookmaking or other forms of illegal gambling, 12 (iii) has been found guilty of any fraud or misrepresentation in 13 connection with racing or breeding, (iv) has been guilty of any 14 violation or attempt to violate any law, rule or regulation of any 15 racing jurisdiction for which suspension from racing might be imposed in 16 such jurisdiction, or (v) has violated any rule, regulation or order of 17 the [board] commission; if the transferee is not, or is not to be, the 18 sole beneficial owner thereof, then there shall be annexed to said affi- 19 davit of the transferee, and expressly stated in such affidavit to be 20 deemed a part thereof, a true and complete copy, or if oral, a complete 21 statement of all the terms, of the agreement or understanding pursuant 22 to which the stock is to be so held by the transferee, including a 23 detailed statement of the interest therein of each person who is to have 24 any interest therein; and at the same time. 25 b. In duplicate, an affidavit executed by each person for whom the 26 said stock, or any interest therein, is to be held by said transferee, 27 setting forth whether or not the affiant (i) has been convicted of a 28 crime involving moral turpitude, (ii) has engaged in bookmaking or other 29 forms of illegal gambling, (iii) has been found guilty of any fraud or 30 misrepresentation in connection with racing or breeding, (iv) has been 31 guilty of any violation or attempt to violate any law, rule or regu- 32 lation of any racing jurisdiction for which suspension from racing might 33 be imposed in such jurisdiction, or (v) has violated any rule, regu- 34 lation or order of the [board] commission; to each of which affidavits 35 shall be annexed, and expressly stated in such affidavit to be deemed a 36 part thereof, a true and complete copy, or if oral, a complete statement 37 of all the terms of the agreement or understanding pursuant to which the 38 stock is to be so held by the transferee, including a detailed statement 39 of the interest therein of each person who is to have any interest ther- 40 ein. 41 c. Said association or corporation shall forthwith file with the 42 [board] commission one of each of said duplicate affidavits. 43 2. If, after the filing of any affidavit [hereinabove] required to be 44 filed by subdivision one of this section, there [be] is any change in 45 the status of any such affiant with respect to any of the matters set 46 forth in [subparagraph (i), (ii), (iii), (iv) or (v)] paragraph a or b 47 of subdivision one of this section, of the affidavit [theretofore] filed 48 by [him] such affiant, then such affiant shall forthwith file with the 49 association or corporation with which his or her affidavit was so filed 50 a new affidavit, executed by him or her in duplicate, setting forth such 51 change of status, and the association or corporation shall forthwith 52 file one of said affidavits with the [board] commission. 53 3. Whenever any change shall be made in the amount, nature, or other- 54 wise, of the interest of any person having an interest in stock of any 55 such association or corporation, or any new interest shall be created 56 therein, without a transfer thereof as [hereinabove] provided in thisA. 9749 63 1 section, the record owner of such stock, and each person whose interest 2 therein has been so attempted to be changed or created, shall file with 3 the association or corporation [which] that issued such stock, in dupli- 4 cate, affidavits as provided by paragraphs a and b of subdivision one of 5 this section, except that such affidavits need not include the matters 6 referred to in [subparagraphs (i), (ii), (iii), (iv) and (v)] paragraph 7 a or b of subdivision one of this section, unless then required pursuant 8 to subdivision two of this section, and one copy thereof shall forthwith 9 be filed by the association or corporation with the [board] commission. 10 4. The [board] commission may, upon application to it for good cause 11 shown, waive compliance with subdivisions one, two and three of this 12 section. 13 5. If the [board] commission determines that it is inconsistent with 14 the public interest, convenience or necessity, or with the best inter- 15 ests of racing generally, that any person continue to be a stockholder 16 of record or the beneficial owner of any interest in stock standing in 17 the name of another, in any association or corporation licensed under 18 this article, or of any association or corporation [which] that leases 19 to such licensee the track at which it conducts pari-mutuel quarter 20 horse racing or [which] that owns twenty-five percent or more of the 21 stock of such licensee, the [board] commission shall have full power and 22 authority to order or direct each such stockholder or beneficial owner 23 irrespective of the time when such stockholder or beneficial owner 24 acquired his or her stock or interest therein to dispose of such stock 25 or interest within a period of time to be specified by the [board] 26 commission, which period the [board] commission shall have full power 27 and authority to extend from time to time. 28 6. If the [board] commission shall make any order or direction as 29 provided in subdivision five of this section, the person aggrieved 30 thereby shall be given notice of the time and place of a hearing before 31 the [board] commission at which the board will hear such person in 32 reference thereto. The action of the [board] commission in making any 33 such order or direction shall be reviewable in the courts of this state 34 in the manner provided by, and subject to the provisions of article 35 seventy-eight of the civil practice law and rules. 36 7. Upon application of the [board] commission, the supreme court of 37 this state shall have jurisdiction to issue final orders, on notice and 38 after hearing, commanding any person to comply with the provisions of 39 the orders or directions issued by the [board] commission under subdivi- 40 sion five of this section. 41 8. In case of conflict between this section and article eight of the 42 uniform commercial code, this section shall control. 43 § 67. Section 404 of the racing, pari-mutuel wagering and breeding law 44 is amended to read as follows: 45 § 404. Right to hold quarter horse race meetings and races. Any corpo- 46 ration formed under the provisions of the pari-mutuel revenue law, and 47 any corporation and association [which] that shall have conducted quar- 48 ter horse race meetings during two years prior to the enactment of the 49 pari-mutuel revenue law, and any town or county fair association or 50 other fair association shall have the power and the right to hold one or 51 more quarter horse race meetings in each year and to hold, maintain and 52 conduct quarter horse races at such meetings. At such quarter horse race 53 meetings the corporation or association, or the owners of horses engaged 54 in such races, or others who are not participants in the race, may 55 contribute purses, prizes, premiums or stakes to be contested for, but 56 no person or persons other than the owner or owners of a horse or horsesA. 9749 64 1 contesting in a race shall have any pecuniary interest in a purse, 2 prize, premium or stake contested for in such race, or be entitled to or 3 receive any portion thereof after such race is finished, and the whole 4 of such purse, prize, premium or stake shall be allotted in accordance 5 with the terms and conditions of such race. [Such meeting shall not be6held except during the period extending from the first day of January to7the thirty-first day of December, inclusive in each year.] Such power 8 and right, however, shall not include the right to conduct pari-mutuel 9 betting at such quarter horse race meetings except pursuant to license 10 granted by the [state racing and wagering board] commission pursuant to 11 sections two hundred twenty-two through seven hundred five of this chap- 12 ter. 13 § 68. Section 405 of the racing, pari-mutuel wagering and breeding law 14 is amended to read as follows: 15 § 405. Pari-mutuel betting at quarter horse races. No more than five 16 corporations or associations shall be licensed by the [state racing and17wagering board] commission in any one year to conduct a pari-mutuel meet 18 or meets. Said pari-mutuel betting conducted at such meetings shall be 19 under the general supervision and control of the [state racing and20wagering board] commission which shall make rules regulating the conduct 21 of such pari-mutuel betting in accordance with the provisions of 22 sections two hundred twenty-two through seven hundred five of this chap- 23 ter. The [state tax commission] department of taxation and finance is 24 charged with the financial administration of pari-mutuel betting as 25 prescribed in this article and as supplemented by the rules and regu- 26 lations of the [board] commission. The [state tax commission] department 27 of taxation and finance shall have authority to prescribe the forms and 28 the system of accounting to be employed, and through its representatives 29 shall at all times have power of access to and examination of any equip- 30 ment relating to such betting. 31 § 69. Section 407 of the racing, pari-mutuel wagering and breeding law 32 is amended to read as follows: 33 § 407. Licenses for quarter horse race meetings. 1. Any association or 34 corporation desiring to conduct quarter horse race meetings at which 35 pari-mutuel betting shall be permitted may apply annually to the [state36racing and wagering board] commission for a license so to do. If, in the 37 judgment of [such board] the commission the public interest, convenience 38 or necessity will be served thereby and a proper case for the issuance 39 of such license is shown consistent with the purposes of sections two 40 hundred twenty-two through seven hundred five of this chapter and the 41 best interests of racing generally, [it] the commission may grant such 42 license for a time ending not later than the thirty-first day of Decem- 43 ber next, specifying dates and hours during which and the place where 44 the licensee may operate. 45 2. Every such license shall be issued upon condition: 46 a. [That] that every quarter horse race meeting at which pari-mutuel 47 betting is conducted shall be subject to the supervision of and to the 48 reasonable rules and regulations from time to time prescribed by the 49 [state racing and wagering board] commission, and 50 b. [That] that pari-mutuel betting conducted thereunder shall also be 51 subject to the supervision of and to the reasonable regulations from 52 time to time prescribed by the [state tax commission] department of 53 taxation and finance. Any such license may also be issued upon any other 54 condition that the [state racing and wagering board] commission shall 55 determine to be necessary or desirable to insure that the public inter- 56 est, convenience or necessity is served.A. 9749 65 1 3. Applications for licenses shall be in such form as may be 2 prescribed by the [board] commission and shall contain such information 3 or other material or evidence as the [board] commission may require. 4 Each application for renewal of a license shall be deemed to be an 5 application for a new license. The fee for such licenses shall be one 6 hundred dollars for each racing day payable in installments in advance 7 of each week's racing which sums shall be paid into the general fund of 8 the state treasury by the [board] commission. The term "racing week" 9 shall include those days as defined by the rules and regulations of the 10 [state racing and wagering board] commission. 11 4. In considering an application for a license under this section the 12 [state racing and wagering board] commission may give consideration to 13 the number of licenses already granted and to the location of the tracks 14 previously licensed. No such license shall be granted to any track 15 located within the corporate limits of a city of the first class. No 16 such license shall be granted to any quarter horse racetrack located 17 within fifty miles of any existing harness, thoroughbred or quarter 18 horse track except with the consent of the licensee located within such 19 [fifty mile] fifty-mile area, provided, however, that in the counties of 20 Suffolk, Niagara and Albany such license shall be granted to any quarter 21 horse racetrack located more than thirty-five miles from any existing 22 harness, thoroughbred or quarter horse track, except with the consent of 23 the licensee located within such thirty-five mile area. 24 5. The [board] commission may refuse to grant a license to an associ- 25 ation or corporation if [it shall determine] the commission determines 26 that: 27 a. any officer, director, member or stockholder of such association or 28 corporation applying for a license, or of any association or corporation 29 [which] that owns stock or shares in the profits or participates in the 30 management, of the affairs of such applicant, or [which] that leases to 31 such applicant the track where [it] such applicant shall operate has: 32 (i) [has] been convicted of a crime involving moral turpitude; 33 (ii) [has] engaged in bookmaking or other forms of illegal gambling; 34 (iii) [has] been found guilty of any fraud or misrepresentation in 35 connection with racing or breeding; 36 (iv) [has] been guilty of any violation or attempt to violate any law, 37 rule or regulation of any racing jurisdiction for which suspension from 38 racing might be imposed in such jurisdiction; or 39 (v) [has] violated any rule, regulation or order of the [board] 40 commission; or 41 b. the experience, character or general fitness of any officer, direc- 42 tor or stockholder of any of the aforesaid associations or corporations 43 is such that the participation of such person in quarter horse racing or 44 related activities would be inconsistent with the public interest, 45 convenience or necessity or with the best interests of racing generally; 46 but if the [board] commission determines that the interest of any stock- 47 holder referred to in this paragraph or in paragraph a of this subdivi- 48 sion is insufficient in the opinion of the [board] commission to affect 49 adversely the conduct of pari-mutuel quarter horse racing by such asso- 50 ciation or corporation in accordance with the provisions of this arti- 51 cle, the [board] commission may disregard such interest in determining 52 whether or not to grant a license to such association or corporation; or 53 c. the applicant is not the owner of the track at which it will 54 conduct pari-mutuel quarter horse racing pursuant to the license applied 55 for, or that any person, firm, association or corporation other than the 56 applicant shares, or will share, in the profits of the applicant, otherA. 9749 66 1 than by dividends as a stockholder, or participates or will participate 2 in the management of the affairs of the applicant. 3 6. The [board] commission shall also have power to refuse to grant a 4 license: 5 a. to any association or corporation, the charter or certificate of 6 incorporation of which shall fail to contain a provision requiring any 7 stockholder, upon written demand of the association or corporation, to 8 sell his or her stock to the association or corporation at a price to be 9 fixed in the manner provided in article five of the business corporation 10 law, provided such demand be made pursuant to written direction of the 11 [board] commission; and from and after the date of the making of such 12 demand, prohibiting the transfer of such certificate of stock, except to 13 the association or corporation; or 14 b. to any association or corporation [which] that, having been a 15 licensee, has failed in the opinion of the [board] commission to proper- 16 ly maintain its track and plant in good condition or has failed to make 17 adequate provision for rehabilitation and capital improvements to its 18 track and plant. 19 7. Pending final determination of any question under this section, the 20 [board] commission may issue a temporary license upon such terms and 21 conditions as it may deem necessary, desirable or proper to effectuate 22 the provisions of sections two hundred twenty-two through seven hundred 23 five of this chapter. 24 8. Notwithstanding any other provision of this article, the [state25racing and wagering board] commission may grant a license to any author- 26 ized quarter horse racing association or corporation to hold and conduct 27 one additional quarter horse race meeting of not more than one racing 28 week's duration, with pari-mutuel betting, on any quarter mile track 29 within this state. 30 9. The [board] commission shall have power to direct that every 31 certificate of stock of any association or corporation licensed under 32 the provisions of sections two hundred twenty-two through seven hundred 33 five of this chapter shall bear a legend plainly and prominently 34 imprinted upon the face of the certificate reading: "This certificate of 35 stock is transferable only subject to the provisions of section four 36 hundred three of the racing, pari-mutuel wagering and breeding law". 37 § 70. Section 408 of the racing, pari-mutuel wagering and breeding law 38 is amended to read as follows: 39 § 408. Officials at quarter horse race meetings. At all quarter horse 40 race meetings licensed by the [state racing and wagering board] commis- 41 sion in accordance with provisions of sections two hundred twenty-two 42 through seven hundred five of this chapter, qualified judges and start- 43 ers shall be designated by the [state racing and wagering board] commis- 44 sion. Such officials shall enforce the rules and regulations of the 45 [state racing and wagering board] commission and shall render regular 46 written reports of the activities and conduct of such race meetings to 47 the [state racing and wagering board] commission. 48 § 71. Section 409 of the racing, pari-mutuel wagering and breeding 49 law, subdivision 1 as amended by chapter 164 of the laws of 2003, is 50 amended to read as follows: 51 § 409. Licenses for participants and employees at quarter horse race 52 meetings. 1. For the purpose of maintaining a proper control over quar- 53 ter horse race meetings conducted pursuant to sections two hundred twen- 54 ty-two through seven hundred five of this chapter, the [state racing and55wagering board] commission may license jockeys or riders and such other 56 persons participating in quarter horse race meets, as the [board]A. 9749 67 1 commission may by rule prescribe, including, if the [board deem] commis- 2 sion deems it necessary [so] to do so, owners, and some or all persons 3 exercising their occupation or employed at quarter horse race meets. 4 Each applicant for a license shall pay to the [board] commission an 5 annual license fee as follows: owner's license, if a renewal, fifty 6 dollars, and if an original application, one hundred dollars; trainer's 7 license, twenty dollars; assistant trainer's license, twenty dollars; 8 jockey's license, fifty dollars; jockey agent's license, twenty dollars; 9 farrier's license, twenty dollars; and stable employee's license, five 10 dollars. Such fees shall be paid to the [board] commission and by it 11 paid into the state treasury. The [board] commission may by rule fix the 12 license fees to be paid by other persons required to be licensed by the 13 rules of the [board] commission, not to exceed twenty dollars per cate- 14 gory. All such licenses, unless revoked for cause, shall be for the 15 period of no more than one, two or three years, as determined by rule of 16 the [board] commission, expiring on the applicant's birth date. Licenses 17 current on the effective date of this provision shall not be reduced in 18 duration by this provision. An applicant who applies for a license that, 19 if issued, would take effect less than six months prior to the appli- 20 cant's birth date may, by payment of a fifty percent higher fee, receive 21 a license [which] that shall not expire until the applicant's second 22 succeeding birth date. For each category of license, the applicant may 23 apply for a [two] two- or [three year] three-year license by payment to 24 the [board] commission of the appropriate multiple of the annual fee. 25 The applications for licenses shall be in writing, accompanied by fing- 26 erprints and a photograph of the applicant, and shall be in such form, 27 and contain such other information, as the [board] commission may 28 require. Such fingerprints shall be submitted to the division of crimi- 29 nal justice services for a state criminal history record check, as 30 defined in subdivision one of section three thousand thirty-five of the 31 education law, and may be submitted to the federal bureau of investi- 32 gation for a national criminal history record check. 33 Every person employed by such association or corporation licensed to 34 conduct pari-mutuel quarter horse racing, including officers and direc- 35 tors thereof, whether or not such person be licensed, shall file finger- 36 prints and a photograph with the [board] commission within thirty days 37 after being so employed or taking such office. Every person employed 38 after January first, nineteen hundred seventy-one, by such association 39 or corporation, including officers and directors thereof, whether or not 40 such person be licensed, shall file fingerprints and a photograph with 41 the [board] commission within ten days after such employment or after 42 taking such office. The fingerprints so obtained from applicants for 43 licenses and from employees not to be licensed shall be forthwith trans- 44 mitted by the [board] commission to the division of criminal justice 45 services and may also be submitted to the federal bureau of investi- 46 gation or any other government agency having facilities for checking 47 fingerprints for the purpose of establishing the identity and the previ- 48 ous criminal record, if any, of such person and such agency shall 49 promptly report its findings to the [board] commission in writing. 50 2. If the [board shall find] commission finds that the experience, 51 character and general fitness of the applicant are such that the partic- 52 ipation of such person in quarter horse race meets will be consistent 53 with the public interest, convenience and necessity and with the best 54 interests of racing generally in conformity with the purposes of 55 sections two hundred twenty-two through seven hundred five of this chap- 56 ter, [it] the commission may [thereupon] grant a license.A. 9749 68 1 Without limiting the generality of the foregoing, the [board] commis- 2 sion may refuse to issue a license, pursuant to this section, if [it3shall find] the commission finds that the applicant has: 4 a. [Has] been convicted of a crime involving moral turpitude; 5 b. [Has] engaged in bookmaking or other form of illegal gambling; 6 c. [Has] been found guilty of any fraud or misrepresentation in 7 connection with racing or breeding; 8 d. [Has] been found guilty of any violation or attempt to violate any 9 law, rule or regulation of racing in any jurisdiction for which suspen- 10 sion from racing might be imposed in such jurisdiction; or 11 e. [Who has] violated any rule, regulation or order of the [board] 12 commission. The [board] commission may suspend or revoke a license 13 issued pursuant to this section if [it shall determine] the commission 14 determines that (i) the applicant or licensee (1) has been convicted of 15 a crime involving moral turpitude; (2) has engaged in bookmaking or 16 other form of illegal gambling; (3) has been found guilty of any fraud 17 in connection with racing or breeding; (4) has been guilty of any 18 violation or attempt to violate any law, rule or regulation of any 19 racing jurisdiction for which suspension from racing might be imposed in 20 such jurisdiction; or (5) [who] has violated any rule, regulation or 21 order of the [board] commission, or (ii) [that] the experience, charac- 22 ter or general fitness of any applicant or licensee is such that the 23 participation of such person in quarter horse racing or related activ- 24 ities would be inconsistent with the public interest, convenience or 25 necessity or with the best interests of racing generally. 26 3. Pending final determination of any question under this section, the 27 [board] commission may issue a temporary license upon such terms and 28 conditions as [it] the commission may deem necessary, desirable or prop- 29 er to effectuate the provisions of sections two hundred twenty-two 30 through seven hundred five of this chapter. 31 § 72. Section 410 of the racing, pari-mutuel wagering and breeding 32 law, as amended by chapter 240 of the laws of 2010, is amended to read 33 as follows: 34 § 410. Power of [state racing and wagering board] commission to impose 35 fines and penalties. [In] The commission, in addition to its powers to 36 suspend or revoke licenses granted by it, [the state racing and wagering37board] is hereby authorized and empowered to impose monetary fines upon 38 any corporation, association or person participating in any way in any 39 quarter horse race meet at which pari-mutuel betting is conducted, other 40 than as a patron, and whether licensed by the [board] commission or not, 41 for a violation of any provision of this chapter or the rules promulgat- 42 ed by the [board] commission pursuant thereto, not exceeding [twenty-43five thousand dollars for each violation] the amounts set forth in 44 section one hundred sixteen of this chapter. The [board] commission is 45 further authorized and empowered to impose monetary fines, not exceeding 46 [twenty-five thousand dollars for each violation] the amounts set forth 47 in section one hundred sixteen of this chapter, upon any such corpo- 48 ration, association or person for a violation of any order issued by the 49 [board] commission pursuant to the provisions of this chapter or the 50 rules promulgated by the [board] commission pursuant thereto, provided 51 that a copy of such order shall have been served, either personally or 52 by registered mail, upon the corporation, association or person to whom 53 the same was directed, prior to the occurrence of the violation for 54 which such fine is imposed. Such fines shall be paid into the treasury 55 of the state. The action of the [board] commission in imposing any mone- 56 tary fine shall be reviewable in the supreme court in the mannerA. 9749 69 1 provided by and subject to the provisions of article seventy-eight of 2 the civil practice law and rules. 3 § 73. Section 411 of the racing, pari-mutuel wagering and breeding law 4 is amended to read as follows: 5 § 411. Refunds. Moneys received by the [board] commission pursuant to 6 this article may within one year from the receipt thereof be refunded to 7 the party for whose account the same were received on proof satisfactory 8 to the [board] commission that: 9 1. [Such] such moneys were in excess of the amount required by law[.]; 10 2. [The] the license for which application was made has been refused 11 by the [board.] commission; 12 3. [Such] such moneys were received as a fine and the [board] commis- 13 sion has after review reduced the amount of such fine[.]; or 14 4. [Upon appeal, the court] upon judicial review, a court of competent 15 jurisdiction reduced or remitted the fine imposed. 16 Such refunds shall, upon approval by the [board] commission and after 17 audit by the comptroller, be paid from any moneys in the custody of the 18 department of taxation and finance received pursuant to this article. 19 § 74. Subdivision 2 of section 412 of the racing, pari-mutuel wagering 20 and breeding law, as amended by chapter 476 of the laws of 2018, is 21 amended to read as follows: 22 2. Any appointment of a special police officer under this section, 23 shall [only] be made only with the approval of the [state racing and24wagering board] commission. Application for such approval shall be in 25 such form as may be prescribed by the [board] commission and shall 26 contain such other information or material or evidence as the [board] 27 commission shall require. In acting on an application for such approval 28 the [board] commission shall consider the background, experience, integ- 29 rity, and competence of the candidate for appointment, the public inter- 30 est, convenience or necessity and the interests of quarter horse racing 31 generally. The [board] commission in its discretion may set the term of 32 any such appointment, terminate any existing appointment at any time and 33 prescribe conditions and rules for the conduct of such office. 34 § 75. Section 413 of the racing, pari-mutuel wagering and breeding law 35 is amended to read as follows: 36 § 413. Place and manner of conducting pari-mutuel betting. Any corpo- 37 ration or association licensed to conduct pari-mutuel betting at a quar- 38 ter horse race meeting shall provide a place or places within race meet- 39 ing grounds or enclosure at which such licensee shall conduct the 40 pari-mutuel system of betting by its patrons on the result of the quar- 41 ter horse races at such meetings. Such licensee shall cause to be 42 erected a sign or board upon which shall be displayed the approximate 43 straight odds on each horse in any race; the total amount wagered upon 44 each horse in each pool; the value of a [two dollar] two-dollar winning 45 mutuel ticket, straight, place or show on the first three horses in any 46 race; the elapsed time of the race; the value of a [two dollar] two-dol- 47 lar winning daily double ticket, if a daily double [be] is conducted, 48 and any other information that the [state racing and wagering board] 49 commission may deem necessary for the guidance of the general public. 50 All machines and equipment used for pari-mutuel betting or for the 51 display of the foregoing information must be approved by the [state52racing and wagering board] commission and the [state tax commission] 53 department of taxation and finance before being used, but neither the 54 [board] commission nor the [commission] department of taxation and 55 finance shall require the installation of any particular make of mechan- 56 ical or electrical equipment.A. 9749 70 1 § 76. Section 415 of the racing, pari-mutuel wagering and breeding law 2 is amended to read as follows: 3 § 415. Bond required of corporation or association conducting pari-mu- 4 tuel betting. Every corporation or association licensed by the [state5racing and wagering board] commission to conduct quarter horse race 6 meetings at which pari-mutuel betting shall be permitted, annually and 7 before the opening of any race meeting shall execute and file with the 8 state comptroller a bond to this state in a penalty to be fixed by the 9 [state tax commission] department of taxation and finance not exceeding 10 two hundred fifty thousand dollars, with sureties approved by the attor- 11 ney general, that it will keep its books and records and make reports as 12 required by sections two hundred twenty-two through seven hundred five 13 of this chapter, that it will pay to the state all taxes imposed by 14 sections two hundred twenty-two through seven hundred five of this chap- 15 ter, that it will distribute to the patrons of pari-mutuel pools 16 conducted by it all sums due upon presentation of winning tickets held 17 by them, and that it will otherwise comply with all of the provisions of 18 sections two hundred twenty-two through seven hundred five of this chap- 19 ter and with the rules and regulations prescribed by the [state racing20and wagering board] commission and the [state tax commission] department 21 of taxation and finance. 22 § 77. Section 417 of the racing, pari-mutuel wagering and breeding law 23 is amended to read as follows: 24 § 417. Filing of certain agreements with [state racing and wagering25board] commission. Every association or corporation licensed to conduct 26 quarter horse race meetings at which pari-mutuel betting is permitted 27 shall promptly after entering into any lease, agreement concerning any 28 concession, labor management relations, the hiring of designated classes 29 of officers, employees or contractors specified by the [board] commis- 30 sion or any such other contract, agreement or arrangement as the [board] 31 commission may from time to time prescribe file with the [board] commis- 32 sion a true and correct copy, or an accurate summary, if oral, thereof. 33 § 78. Section 418 of the racing, pari-mutuel wagering and breeding 34 law, subdivision 4 as added by chapter 286 and paragraph a of subdivi- 35 sion 4 as amended by chapter 287 of the laws of 1985, is amended to read 36 as follows: 37 § 418. Disposition of pari-mutuel pools. 1. Every association or 38 corporation authorized under sections two hundred twenty-two through 39 seven hundred five of this chapter to conduct pari-mutuel betting at a 40 quarter horse race meeting on races run thereat shall distribute all 41 sums deposited in any pari-mutuel pool to the holders of winning tickets 42 therein provided such tickets be presented for payment before April 43 first of the year following the year of their purchase, less seventeen 44 [per centum] percent of the total deposits in pools resulting from regu- 45 lar on-track bets and less nineteen [per centum] percent of the total 46 deposits in pools resulting from multiple bets and less twenty-five [per47centum] percent of the total deposits in pools resulting from exotic 48 on-track bets, plus the breaks. "Multiple bet" or "multiple wager" shall 49 mean a single bet or wager on two horses, evidenced by a single ticket 50 and representing an interest in a single betting pool. "Exotic bet" or 51 "exotic wager" shall mean a single bet or wager on three or more horses, 52 evidenced by a single ticket and representing an interest in a single 53 betting pool. The breaks for regular bets and multiple bets are hereby 54 defined as the odd cents over any multiple of ten or for exotic bets, 55 over any multiple of fifty calculated on the basis of one dollar and 56 otherwise payable to a patron. Of the sum so retained the applicable taxA. 9749 71 1 rates for regular bets shall be three [per centum] percent; the applica- 2 ble tax rates for multiple bets shall be three and one-half [per centum] 3 percent; the applicable tax rates for exotic bets shall be eight [per4centum] percent, plus sixty-five [per centum] percent of the amount of 5 the breaks from on-track regular, multiple and exotic bets shall be paid 6 by such corporation or association to the [state tax commission] depart- 7 ment of taxation and finance as a reasonable tax by the state for the 8 privilege of conducting pari-mutuel betting on the races run at the 9 quarter horse race meetings held by such corporation or association, 10 which tax is hereby levied, and the balance of the retained percentage 11 of such pool and of the breaks may be held by such corporation or asso- 12 ciation for its own use and purposes. The payment of such state tax 13 shall be made to the [state tax commission] department of taxation and 14 finance at such regular intervals as the [said tax commission] depart- 15 ment of taxation and finance may require, and shall be accompanied by a 16 report under oath showing the total of all such contributions together 17 with such other information as the [said tax commission] department of 18 taxation and finance may require. A penalty of five [per centum] percent 19 and interest at the rate of one [per centum] percent per month from the 20 date the report is required to be filed to the date of payment of the 21 tax shall be payable in case any tax imposed by this section is not paid 22 when due. If the [state tax commission] department of taxation and 23 finance determines that any moneys received under this section were paid 24 in error, it may cause the same to be refunded without interest out of 25 any moneys collected thereunder, provided an application therefor is 26 filed with it within one year from the time the erroneous payment was 27 made. Such taxes, interest and penalties when collected, after the 28 deduction of refunds of taxes erroneously paid, shall be paid by the 29 [state tax commission] department of taxation and finance into the 30 general fund of the state treasury. Ten [per centum] percent of the 31 breaks shall be paid to the New York state quarter horse breeding and 32 development fund. 33 2. Except as may be authorized by the legislature, no county, city, 34 town, village or other political subdivision of the state may impose, 35 levy or collect a tax on admission fees or tax on admission, on wagers 36 made by patrons in the form of purchases of pari-mutuel tickets or upon 37 such tickets, on pari-mutuel pools, on breaks, on dividends or payments 38 made to winning bettors, or on that part of the pari-mutuel pools or 39 breaks to be retained by quarter horse racing corporations or associ- 40 ations under this section. 41 3. The sums paid by any corporation or association to the [state tax42commission] department of taxation and finance shall be determined by 43 multiplying each applicable rate for total daily pools from on-track 44 regular bets by the percentage [which] that on-track regular bets is of 45 the total on-track daily pool and by multiplying each applicable rate 46 for total daily pools on on-track exotic bets by the percentage [which] 47 that exotic bets is of total daily pool, then combining the two deter- 48 mined percentages and applying the result to the appropriate level of 49 the total daily pool from on-track regular and exotic bets. 50 [4. Notwithstanding the provisions of subdivision one of this section,51prior to April first, nineteen hundred eighty-nine, the applicable tax52rates shall be as follows:53a. From April first, nineteen hundred eighty-six through March thir-54ty-first, nineteen hundred eighty-seven, of the sum retained the appli-55cable tax rates for regular bets shall be three-quarters of one per56centum; the applicable rates for multiple, exotic bets shall be seven-A. 9749 72 1eighths of one per centum; plus sixteen and one-quarter per centum of2the breaks from all bets.3b. After April first, nineteen hundred eighty-seven of the sum4retained the applicable tax rates for all bets shall be one per centum5of all wagers, plus twenty per centum of the breaks.] 6 § 79. Section 419 of the racing, pari-mutuel wagering and breeding law 7 is amended to read as follows: 8 § 419. Revocation of license. The [state racing and wagering board] 9 commission may revoke or suspend a license for the conduct of quarter 10 horse race meetings at which pari-mutuel betting is conducted[.]: 11 1. [For] for any cause [which] that would permit or require [its12refusal] the commission to refuse to issue a license, or 13 2. [If it shall determine] if the commission determines that[:] the 14 corporation or association to which such license [shall have] has been 15 issued, or its officers or directors, [fail] fails to conduct racing at 16 its track, including pari-mutuel betting on the races [thereat] at such 17 track, in accordance with the terms and conditions of such license, the 18 rules of [such board] the commission or of the [state tax commission] 19 department of taxation and finance, or the provisions of sections two 20 hundred twenty-two through seven hundred five of this chapter, or if 21 such corporation or association or its officers or directors shall know- 22 ingly permit on its grounds or within the enclosure of its racetrack, 23 lotteries, pool-selling or bookmaking, or any other kind of gambling, in 24 violation of sections two hundred twenty-two through seven hundred five 25 of this chapter or of the penal law. 26 § 80. Section 420 of the racing, pari-mutuel wagering and breeding law 27 is amended to read as follows: 28 § 420. Hearing of refusal or revocation of license. If the [state29racing and wagering board shall refuse] commission refuses to grant a 30 license applied for under sections two hundred twenty-two through seven 31 hundred five of this chapter, or [shall revoke] revokes or [suspend] 32 suspends such license granted by it, or [shall impose] imposes a mone- 33 tary fine upon a participant in quarter horse racing, then the applicant 34 or licensee or party fined may demand, within ten days after notice of 35 [the said] such act of the [board] commission, a hearing before the 36 [board] commission and the [board] commission shall give prompt notice 37 of a time and place for such hearing at which the [board] commission 38 will hear such applicant or licensee or party fined in reference there- 39 to. Pending such hearing and final determination [thereon] of such 40 matter, the action of the [board] commission in refusing to grant or in 41 revoking or suspending a license or in imposing a monetary fine shall 42 remain in full force and effect. The [board] commission may continue 43 such hearing from time to time, for the convenience of any of the 44 parties. Any of the parties affected by such hearing may be represented 45 by counsel, and the [board] commission may be represented by the attor- 46 ney general, a deputy attorney general or its counsel. In the conduct of 47 such hearing the [board] commission shall not be bound by technical 48 rules of evidence, but all evidence offered before the [board] commis- 49 sion shall be reduced to writing, and such evidence together with the 50 exhibits, if any, and the findings of the [board] commission, shall be 51 permanently preserved and shall constitute the record of the [board] 52 commission in such case. In connection with such hearing, each member of 53 the [board] commission shall have the power to administer oaths and 54 examine witnesses, and may issue subpoenas to compel attendance of 55 witnesses, and the production of all material and relevant reports, 56 books, papers, documents, correspondence and other evidence. The [board]A. 9749 73 1 commission may, if occasion shall require, by order, refer to one or 2 more of its members or officers, the duty of taking testimony in such 3 matter, and to report thereon to the [board] commission, but no determi- 4 nation shall be made therein except by the [board] commission. Within 5 thirty days after the conclusion of such hearing, the [board] commission 6 shall make a final order in writing, setting forth the reasons for the 7 action taken by it and a copy thereof shall be served on such applicant 8 or licensee or party fined, as the case may be. The action of the 9 [board] commission in refusing to grant a license or in revoking or 10 suspending a license or in imposing a monetary fine shall be reviewable 11 in the supreme court in the manner provided by and subject to the 12 provisions of article seventy-eight of the civil practice law and rules. 13 § 81. Section 421 of the racing, pari-mutuel wagering and breeding law 14 is amended to read as follows: 15 § 421. Approval of plans of corporation or association. The [state16racing and wagering board] commission shall not grant to a corporation 17 or association hereafter formed pursuant to sections two hundred twen- 18 ty-two through seven hundred five of this chapter, a license to conduct 19 a quarter horse race meeting at which pari-mutuel betting may be 20 conducted within the state until such corporation or association shall 21 have submitted to the [board] commission a statement of the location of 22 its proposed grounds and racetrack, together with a plan of such race- 23 track, and plans of all buildings, seating stands and other structures 24 in such form as the [board] commission may prescribe, and such plans 25 shall have been approved in writing by the [board] commission. Alter- 26 ations of existing buildings, seating stands and other structures, and 27 the erection of new or additional buildings, seating stands or other 28 structures may be made only with the written approval of the [board] 29 commission and after examination and inspection of the plans thereof and 30 the issuance of a permit therefor by the [state racing and wagering31board] commission. The [board] commission at the expense of the appli- 32 cant may order such engineering examination thereof as the [board] 33 commission may deem necessary. The approval of the certificate of incor- 34 poration of such corporation or association shall not be deemed to vest 35 in it the right to a license to conduct quarter horse race meetings at 36 such race course or racetrack unless such grounds, track, buildings, 37 seating stands and other structures shall be completed in accordance 38 with the plans approved by the [board] commission. 39 § 82. Section 422 of the racing, pari-mutuel wagering and breeding 40 law, as amended by chapter 370 of the laws of 2011, is amended to read 41 as follows: 42 § 422. Free or reduced fee passes, cards or badges. A corporation or 43 association licensed to conduct pari-mutuel betting on quarter horse 44 races run at its racetrack may issue free passes, cards or badges to any 45 qualified person. A qualified person shall include, but need not be 46 limited to, officers and employees of the corporation or association 47 conducting the race meeting, members, officers, and employees of the 48 [state racing and wagering board] commission, members of quarter horse 49 racing associations of other states and foreign countries, public offi- 50 cers engaged in the performance of their duties, persons actually 51 employed and accredited by the press to attend such meetings, owners, 52 stable managers, trainers, jockeys, concessionaires, spouses, domestic 53 partners and children of owners, trainers and jockeys, other persons 54 whose actual duties require their presence at such racetrack, and any 55 other person or guest deemed appropriate by such corporation or associ- 56 ation. In addition, free or reduced fee passes, cards or badges may beA. 9749 74 1 issued to the general public or segments of the general public in 2 connection with any promotional campaign or marketing program sponsored 3 by such corporation or association to increase attendance at live race 4 meets. The issuance of free passes, cards or badges shall be under the 5 rules and regulations of the [state racing and wagering board] commis- 6 sion. 7 § 83. Section 428 of the racing, pari-mutuel wagering and breeding law 8 is amended to read as follows: 9 § 428. Construction. Notwithstanding the provisions of any general, 10 special, or local law or ordinance, the provisions of sections two 11 hundred twenty-two through seven hundred five of this chapter and the 12 rules and regulations and requirements of the [state racing and wagering13board] commission relating to the time when and place where or manner in 14 which the quarter horse races shall be conducted in this state and the 15 control of the grounds and structures erected or to be erected thereon 16 upon and at which such racing is conducted and the activities conducted 17 thereat and thereon in connection with any trial or contest of speed or 18 power of endurance of quarter horses shall be construed and deemed to be 19 exclusive of and shall supersede any provisions of such other general, 20 special or local law or ordinance in any wise relating thereto, nor 21 shall the provisions of article two hundred twenty-five of the penal law 22 be deemed to apply to pari-mutuel betting conducted pursuant to sections 23 two hundred twenty-two through seven hundred five of this chapter. 24 § 84. Subdivisions 3 and 7 of section 430 of the racing, pari-mutuel 25 wagering and breeding law are amended to read as follows: 26 3. "New York-bred." A quarter horse foaled in New York state and 27 registered in the registry administered by quarter horse breeding asso- 28 ciations in this state designated by the [state racing and wagering29board] commission. 30 7. "Races." Races upon which pari-mutuel wagering is conducted at 31 quarter horse race meetings of racing associations or corporations as 32 authorized by the [state racing and wagering board] commission. 33 § 85. Subdivisions 1 and 3 of section 431 of the racing, pari-mutuel 34 wagering and breeding law, subdivision 1 as amended by chapter 197 of 35 the laws of 2007, subdivision 3 as amended by section 8 of part A of 36 chapter 60 of the laws of 2012, is amended to read as follows: 37 1. A corporation to be known as the "New York state quarter horse 38 breeding and development fund corporation" is hereby created. Such 39 corporation shall be a body corporate and politic constituting a public 40 benefit corporation, the objective of which shall be to encourage the 41 breeding of quarter horses and the development of the quarter horse 42 industry in this state. It shall be administered by a board of directors 43 consisting of the [chairman] chair of the [state racing and wagering44board] commission or his or her designee, who shall be [chairman] chair 45 of the board of directors of the corporation, the commissioner of agri- 46 culture and markets, and the members of the [state racing and wagering47board] commission. 48 3. The [board] commission may delegate to one or more of the directors 49 or officers of the fund such powers and duties as it may deem proper and 50 shall [utilize] use, pursuant to a contract approved by the director of 51 the budget, the service employees of the [state gaming] commission and 52 the state office of racing promotion and development. 53 § 86. Paragraph e of subdivision 2 of section 433 of the racing, pari- 54 mutuel wagering and breeding law is amended to read as follows: 55 e. Five percent or such lower proportion as the [state racing and56wagering board] commission may prescribe based upon the operationalA. 9749 75 1 experience and objectives of the fund, for the administration and 2 management of the fund. If the [board] commission shall reduce the 3 proportion of the fund's resources applicable to administration, the 4 proportions otherwise applicable shall be increased accordingly. All 5 moneys of the fund in excess of twenty-five thousand dollars on hand at 6 the end of each calendar year shall be remitted to and vest in the 7 state. 8 § 87. Section 501 of the racing, pari-mutuel wagering and breeding 9 law, is amended to read as follows: 10 § 501. Definitions. As used in this article, in addition to the defi- 11 nitions set forth in section one hundred one of this chapter, the 12 following terms shall mean and include: 13 1. ["State board." The state racing and wagering board.142.] "Board of directors." The board of directors of a corporation as 15 such board is constituted pursuant to section five hundred two of this 16 article. 17 [3] 2. "Corporation." Each regional off-track betting corporation, as 18 created by section five hundred two of this article. 19 [4] 3. "Participating county." Any of the counties in a region which 20 have elected to join a corporation in the manner provided for in section 21 five hundred two of this article. 22 [5] 4. "Bonds and notes." Bonds and notes, respectively, authorized 23 and issued by the corporation pursuant to this article. 24 [6] 5. "Cost of corporation's functions." All costs and expenses 25 incurred by the corporation in connection with carrying out the func- 26 tions as described by this article, including, but not limited to, oper- 27 ating expenses of the corporation, the costs of acquisition, 28 construction or equipment of branch offices and other facilities of the 29 corporation, and interest and principal on bonds, notes or other obli- 30 gations of the corporation issued to finance the acquisition, 31 construction or equipment of such offices, facilities or premises. 32 [7] 6. "Region." The several regions defined by subdivision one of 33 section five hundred nineteen of this chapter. 34 [8] 7. "Track." The grounds or enclosure within which horse races are 35 conducted by any person, association or corporation lawfully authorized 36 to conduct such races. 37 [9] 8. "Governing body." The appropriate county legislative body. 38 [10] 9. "Branch office." An establishment maintained and operated by 39 the corporation, where off-track, pari-mutuel betting on horse races may 40 be placed in accordance with the terms and conditions of this article 41 and the rules and regulations issued pursuant thereto. 42 [11] 10. "Enabling legislation." A local law, ordinance or resolution 43 subject to a permissive referendum pursuant to the municipal home rule 44 law. 45 § 88. Subdivisions 2, 3 and 4, paragraph a of subdivision 5 and subdi- 46 vision 7 and 16 of section 502 of the racing, pari-mutuel wagering and 47 breeding law, subdivision 4 as amended by chapter 346 of the laws of 48 1990, and subdivision 16 as added by chapter 908 of the laws of 1990, 49 are amended to read as follows: 50 2. A city with a population of [over] more than one hundred fifty 51 thousand, according to the last federal census, may elect to participate 52 in the management and revenues of a regional corporation if the county 53 in which such city is located has elected to become a participating 54 county. Such election shall be by enabling legislation. Upon such 55 election, such city shall participate in the amount of any loans or 56 contributions made or to be made by the participating county containingA. 9749 76 1 the city to the corporation, pursuant to section five hundred six of 2 this article, in the proportion that such city will participate in net 3 revenues payable to such county or such other equitable arrangement as 4 shall be approved by the [board] commission. 5 3. Upon the passage of enabling legislation by the governing body of 6 not less than three counties within a region representing not less than 7 thirty percent of the population of such region, as determined by the 8 last federal census, or in the case of the Suffolk region, upon the 9 passage of enabling legislation by the governing body of Suffolk county, 10 or in the case of the Nassau region, upon the passage of enabling legis- 11 lation by the governing body of Nassau county, or in the case of the 12 Mid-Hudson region upon the passage of enabling legislation by the 13 governing body of the county of Westchester and of the governing body of 14 one other county in such region, and following the appointment of 15 members of the board of directors, such corporation shall file with the 16 secretary of state and with the [state racing and wagering board] 17 commission a certificate setting forth: 18 a. The date of passage of the enabling legislation; 19 b. The name of the agency, which shall be the name of the region 20 followed by the words "regional off-track betting corporation"; and 21 c. The names of the members of the board of directors and the [chair-22man] chair. 23 4. Each of the counties of the region that [have] has not become a 24 participating [counties] county at the time of filing of the certificate 25 required by subdivision three of this section may do so by enacting 26 enabling legislation, a duly certified copy of which must be filed with 27 the board of directors, the [state board] commission, the secretary of 28 state and the county clerk of each participating county. In the event 29 that a county elects to participate after June first, nineteen hundred 30 ninety, the effective date of approval by the [state board] commission 31 shall not be earlier than the date that branch offices are established 32 and operating. If, at the time of such election, the [state board] 33 commission has approved a plan of operation for the corporation, a coun- 34 ty may not become a participating county without approval by the [state35board] commission of a modified feasibility study and amended plan of 36 operation which shall be submitted by the corporation to the [state37board] commission pursuant to section five hundred twenty-one of this 38 chapter. 39 If the participating counties in the region have contributed or loaned 40 funds or other consideration to the corporation, the board of directors 41 may require that any county subsequently electing to become a partic- 42 ipating county make such contributions in the same proportion, if any, 43 as may have governed such contributions or loans by participating coun- 44 ties. Any dispute as to the value of consideration or as to a contrib- 45 ution required by the board of directors shall be resolved by the [state46board] commission. 47 a. If the certificate required by subdivision three of this section is 48 not filed by December thirty-first, nineteen hundred seventy-five, the 49 corporate existence of a corporation shall terminate, but otherwise, 50 each corporation and its corporate existence shall continue until termi- 51 nated by law; provided, however, that no such law shall take effect so 52 long as the corporation shall have bonds, notes or other obligations 53 outstanding. Upon termination of the existence of the corporation all of 54 its rights, property, assets and funds shall thereupon vest in and be 55 possessed by the participating counties in the same proportion such 56 property, assets and funds may have been contributed by each county orA. 9749 77 1 according to the manner in which the revenues of the corporation are 2 distributed pursuant to section five hundred sixteen of this article, or 3 any combination of both such methods, as the [state board] commission 4 shall determine. 5 7. The directors shall be removable for cause by the [state board] 6 commission, upon charges and after a hearing. 7 16. Notwithstanding any inconsistent provision of this chapter or any 8 other law, any director, administrator, or other employee of a corpo- 9 ration may be issued and hold any license issued by the [state board] 10 commission. 11 § 89. The opening paragraph, subdivisions 4 and 10 and paragraph c of 12 subdivision 11 of section 503 of the racing, pari-mutuel wagering and 13 breeding law, subdivision 10 as amended by chapter 116 of the laws of 14 2001, are amended to read as follows: 15 Subject to the general and specific limitations of sections two 16 hundred twenty-two through seven hundred five of this chapter and the 17 authority of the [state board] commission pursuant to articles one and 18 five-a of this chapter, each corporation shall have power: 19 4. To acquire, in the name of the corporation, by purchase, condemna- 20 tion, gift, grant or devise or otherwise, and to use, real property 21 [which] that is necessary or convenient for carrying out its corporate 22 purposes; provided that the corporation shall not condemn any real prop- 23 erty without first having obtained the consent of the chief elected 24 official in the jurisdiction in which such real property is located. All 25 real property acquired by the corporation by condemnation shall be 26 acquired in the manner provided by law for the condemnation of real 27 property in the jurisdiction in which the real property is located; 28 10. In the manner and subject to the provisions of sections two 29 hundred twenty-two through seven hundred five of this chapter, and 30 subject to the rules and regulations of the [state board] commission, to 31 establish and conduct within the region a system of off-track pari-mutu- 32 el betting on horse races, and, if licensed to do so under article three 33 of this chapter, conduct harness race meetings; 34 c. Any violation of any rule or regulation, filed with the county 35 clerk of each county in which such corporation operates and designated 36 by the letter "R" by resolution of the board of directors of the corpo- 37 ration, shall be a violation and shall be punishable by imprisonment for 38 not more than three months, or by a fine of not more than one thousand 39 dollars, or by both such imprisonment and fine. All such fines collected 40 shall be payable to the county comptroller in the county in which the 41 violation occurred and shall be paid by [him] such county comptroller 42 into the general fund of such county. Any such rule shall be effective, 43 notwithstanding that any act or omission made an offense or punishable 44 thereby may be a crime or violation or punishable under any other 45 provision of law; 46 § 90. Subdivision 1 of section 503-a of the racing, pari-mutuel wager- 47 ing and breeding law, as added by section 2 of part II of chapter 58 of 48 the laws of 2012, is amended to read as follows: 49 1. In addition to the powers enumerated in section five hundred three 50 of this article, financially insolvent regional off-track betting corpo- 51 rations, as determined by the [racing and wagering board] commission 52 upon review of certified financial statements, are hereby authorized and 53 may file any petition with any United States district court or court of 54 bankruptcy under any provision of laws of the United States for the 55 composition or adjustment of municipal indebtedness, provided such 56 corporation is authorized by a resolution adopted by a majority of theA. 9749 78 1 participating counties to such region, or, for a corporation wholly 2 contained within one county, by a resolution adopted by such county. The 3 provisions of this subdivision shall not apply to the Suffolk regional 4 off-track betting corporation until April first, two thousand fourteen. 5 § 91. Subdivision 2 of section 504 of the racing, pari-mutuel wagering 6 and breeding law, as amended by chapter 476 of the laws of 2018, is 7 amended to read as follows: 8 2. Any appointment of a special police officer under this section, 9 shall [only] be made only with the approval of the [state racing and10wagering board] commission. Application for such approval shall be in 11 such form as may be prescribed by the [board] commission and shall 12 contain such other information or material or evidence as [it shall13require] the commission requires. In acting on an application for such 14 approval the [board] commission shall consider the background, experi- 15 ence, integrity, and competence of the candidate for appointment, the 16 public interest, convenience or necessity and the interests of legalized 17 wagering generally. The [board] commission in its discretion may set the 18 term of any such appointment, terminate any existing appointment at any 19 time and prescribe conditions and rules for the conduct of such office. 20 § 92. Paragraph j of subdivision 4 of section 508 of the racing, pari- 21 mutuel wagering and breeding law is amended to read as follows: 22 j. Any other matters of like or different character[, which] that in 23 any way affect the security or protection of the holders of the bonds or 24 notes. 25 § 93. Paragraph c of subdivision 1 of section 509 of the racing, pari- 26 mutuel wagering and breeding law is amended to read as follows: 27 c. Any other moneys [which] that may be made available to the corpo- 28 ration for the purpose of such capital reserve fund from any other 29 source or sources. All moneys held in the capital reserve fund, except 30 as hereinafter provided, shall be used solely for the payment of the 31 principal of bonds of the corporation, the payment of interest on such 32 bonds, or the payment of any redemption premium required to be paid when 33 such bonds are redeemed prior to maturity; provided, however, that 34 moneys in such capital reserve fund shall not be withdrawn therefrom at 35 any time in such amount as would reduce the amount of such fund to less 36 than the maximum amount of principal and interest maturing and becoming 37 due in any succeeding fiscal year of the corporation on all bonds of the 38 corporation then outstanding, except for the purpose of paying principal 39 of and interest on such bonds of the corporation maturing and becoming 40 due and for the payment of which other moneys of the corporation are not 41 available. Any income or interest earned by, or increment to, the capi- 42 tal reserve fund due to the investment thereof may be transferred to 43 other funds or accounts to the extent it does not reduce the amount of 44 the capital reserve fund below the maximum amount of principal and 45 interest maturing and becoming due in any such succeeding fiscal year on 46 all bonds of the corporation then outstanding. 47 § 94. Subdivisions 1 and 2 of section 512 of the racing, pari-mutuel 48 wagering and breeding law are amended to read as follows: 49 1. In the event that a corporation [shall default] defaults in the 50 payment of the principal of or interest on any issue of bonds or notes 51 after the same [shall become] becomes due, whether at maturity or upon 52 call for redemption, and such default [shall continue] continues for a 53 period of thirty days, or in the provisions of this article, or [shall54default] defaults in any agreement made with the holders of any issue of 55 the bonds or notes, the holders of twenty-five [per centum] percent in 56 aggregate principal amount of the bonds or notes of such issue thenA. 9749 79 1 outstanding, by instrument or instruments filed in the office of the 2 clerk of any county in which the corporation operates and approved or 3 acknowledged in the same manner as a deed to be recorded, may appoint a 4 trustee to represent the holders of such bonds or notes for the purposes 5 herein provided. 6 2. Such trustee may, and upon written request of the holders of twen- 7 ty-five [per centum] percent in principal amount of such bonds or notes 8 then outstanding shall, in his, her or its own name: 9 a. [By] by suit, action or special proceedings enforce all rights of 10 the holders of the bonds or notes, including the right to require the 11 corporation to carry out any agreements with such holders and to perform 12 its duties under this title; 13 b. [Bring] bring suit upon such bonds or notes; 14 c. [By] by action or suit, require the corporation to account as if it 15 were the trustee of an express trust for the holders of such bonds or 16 notes; 17 d. [By] by action or suit, enjoin any acts or things [which] that may 18 be unlawful or in violation of the rights of the holders of such bonds 19 or notes; and 20 e. [Declare] declare all such bonds or notes due and payable, and if 21 all defaults shall be made good, then, with the consent of the holders 22 of twenty-five [per centum] percent of the principal amount of such 23 bonds or notes then outstanding, annul such declaration and its conse- 24 quences. 25 § 95. Paragraph a of subdivision 2 of section 514 of the racing, pari- 26 mutuel wagering and breeding law is amended to read as follows: 27 a. The name and post office address of each claimant, and of his or 28 her attorney if any; 29 § 96. Section 517 of the racing, pari-mutuel wagering and breeding law 30 is amended to read as follows: 31 § 517. Annual reports. In addition to the reports required by article 32 five-a of this chapter, within one hundred twenty days after the end of 33 the fiscal year of the corporation, the directors thereof shall submit 34 to the participating counties, the [state board] commission, and the 35 state comptroller a complete and detailed audited report setting forth: 36 1. [Its] its operations and accomplishments during such fiscal year; 37 2. [Its] its receipts and expenditures during such fiscal year in 38 accordance with categories or classifications established by the corpo- 39 ration for its own operating and capital outlay purposes; 40 3. [Its] its assets and liabilities at the end of such fiscal year 41 including a schedule of its bonds, notes or other obligations and the 42 status of reserves, depreciations, special, sinking or other funds; 43 4. [Details] details of branch offices being planned or in the process 44 of being constructed or otherwise established and branch offices that 45 have been constructed or established; and 46 5. [Such] such other information relating to the operations of the 47 corporation as shall be deemed pertinent by the directors, the partic- 48 ipating counties, the [state board] commission, and the state comp- 49 troller. 50 § 97. Section 518 of the racing, pari-mutuel wagering and breeding law 51 is amended to read as follows: 52 § 518. Off-track pari-mutuel betting; objectives. In the exercise of 53 the power vested in it by subdivision one of section nine of article one 54 of the state constitution, the legislature hereby prescribes that off- 55 track pari-mutuel betting on horse races, conducted under the adminis- 56 tration of the [state racing and wagering board] commission in theA. 9749 80 1 manner and subject to the conditions provided for in this article, shall 2 be lawful, notwithstanding the provisions of any other law, general, 3 special or local, including any law prohibiting or restricting 4 lotteries, pool-selling or bookmaking or any other kind of gambling; it 5 being the purpose of this article to derive from such betting, as 6 authorized by this article, a reasonable revenue for the support of 7 government, and to prevent and curb unlawful bookmaking and illegal 8 wagering on horse races. It is also the intention of this article to 9 ensure that off-track betting is conducted in a manner compatible with 10 the well-being of the horse racing and breeding industries in this 11 state, which industries are and should continue to be major sources of 12 revenue to state and local government and sources of employment for 13 thousands of state residents. 14 § 98. Section 520 of the racing, pari-mutuel wagering and breeding law 15 is amended to read as follows: 16 § 520. General jurisdiction. 1. The [state racing and wagering board] 17 commission shall have general jurisdiction over the operation of all 18 off-track betting facilities within the state[, and the board]. The 19 commission shall issue rules and regulations in accordance with the 20 provisions of this article in order to ensure the accomplishment of the 21 purposes set out in section five hundred eighteen of this article. 22 2. The [board] commission shall own or lease all communication and 23 transmission facilities [utilized] used to transmit wagering information 24 between regions, as provided by and subject to the exceptions in section 25 five hundred twenty-five of this article and may establish a data proc- 26 essing center, within the amounts appropriated therefor, and provide 27 data processing services to regional corporations, on a transaction fee 28 basis. 29 3. Without limiting the generality of the foregoing, the [board] 30 commission shall establish such general regulations to limit the access 31 to off-track betting establishments of persons not permitted to bet 32 therein, the availability or [utilization] use of publications, written 33 materials or communications equipment therein as the [board] commission 34 determines to be in the interest of public order and the furtherance of 35 the objectives of this article and shall prohibit the sale of food and 36 beverages in all facilities where bets may be placed. The [board] 37 commission shall also provide for the methods for the results of races 38 to be communicated to regional corporations and disseminated thereby. 39 § 99. Section 521 of the racing, pari-mutuel wagering and breeding 40 law, the opening paragraph as amended by chapter 18 of the laws of 2008, 41 and subdivision 8 as amended by chapter 306 of the laws of 1984, is 42 amended to read as follows: 43 § 521. Approval of plans of operation; amendments. In order to accom- 44 plish the objectives of this article, the [board] commission shall have 45 the power, subject to the provisions of this article but without limit- 46 ing the generality of any provision of this chapter, to approve a plan 47 of operation submitted by any regional corporation created under article 48 five of this chapter. 49 1. Before [it] the commission may grant such approval, the [board] 50 commission must review and approve a feasibility study submitted by such 51 corporation, including but not limited to the following subjects: 52 a. [The] the overall practicability of establishing and operating an 53 efficient and profitable system of off-track betting in such region or 54 in such counties that have elected to participate in the corporation; 55 b. [The] the potential market; 56 c. [The] the estimated costs of operation;A. 9749 81 1 d. [The] the probable types of wagering and number of opportunities 2 required for successful operation; and 3 e. [The] the probable impact of the proposed operation upon on-track 4 attendance and pari-mutuel betting within the region. The [board] 5 commission may, within the time provided for approval, request addi- 6 tional information from the corporation. Disapproval of the feasibility 7 study shall be accompanied by a statement of the reasons therefor and 8 shall be treated as disapproval of a plan under subdivision three of 9 this section. 10 2. The plan of operation shall include the following: 11 a. [The] the organizational structure of the corporation including the 12 approximate number and compensation of employees; 13 b. [A] a narrative description of the system; 14 c. [The] the types and approximate cost of data processing, communi- 15 cation and transmission facilities that will be [utilized] used, includ- 16 ing back-up systems; 17 d. [Security] security measures; 18 e. [The] the type and number of betting opportunities to be offered; 19 f. [The] the race tracks and races for which bets will be taken; 20 g. [The] the maximum and minimum number of retail outlets or betting 21 offices to be established; 22 h. [The] the proposed system of accounts; and 23 i. [The] the amount and proposed sources of financing. 24 3. Within ninety days of receipt of the feasibility study and plan, 25 the [board] commission shall issue an order approving the plan, approv- 26 ing it with modifications or denying approval and stating its reasons 27 therefor. Within such period the [board] commission may request addi- 28 tional information or suggest amendments. If the [board] commission 29 fails to approve the plan without modification, the corporation may 30 request a public hearing to be held within thirty days of the issuance 31 of an order approving an application with modifications or denying it. 32 The [board] commission shall issue its final determination within ten 33 days of such hearing. The corporation may submit an amended application 34 no sooner than ninety days after a denial. 35 4. A plan of operation may be amended from time to time at the request 36 of either the corporation or the [board] commission. The corporation 37 shall have the right to be heard concerning any amendment to the plan 38 proposed after implementation and the [board] commission shall dispose 39 of such proposed amendments as expeditiously as practicable, but no 40 later than thirty days following submission by the corporation or, in 41 the case of amendments proposed by the [board] commission, objection by 42 the corporation. 43 5. Any arrangements for telecasts or broadcasts of running races 44 pursuant to contracts with track operators shall constitute a part of 45 the plan of operation, or an amendment thereto, as the case may be. 46 6. The plan of operation of the New York city off-track betting corpo- 47 ration in effect on July first, nineteen hundred seventy-three, shall be 48 deemed approved by the [board] commission, but shall thereafter be 49 subject to the general jurisdiction of the [board] commission in the 50 same manner as are the plans of other regional corporations. 51 7. a. The city of Schenectady may continue to operate off-track pari- 52 mutuel betting within such city, subject to the jurisdiction of the 53 [state racing and wagering board] commission, until the [board] commis- 54 sion approves a plan of operation submitted by the Capital District 55 regional off-track betting corporation and such plan of operation is 56 implemented; provided, however, that during any period that the city ofA. 9749 82 1 Schenectady continues to operate off-track pari-mutuel betting within 2 such city pursuant to this subdivision, it may accept off-track wagers 3 on races at any harness track within the state which so agrees subject 4 to the approval of the [state racing and wagering board] commission 5 until such time as the harness track located within the Capital District 6 and the city of Schenectady mutually agree on the provision of appropri- 7 ate space and facilities at such track for such city and such agreement 8 is implemented. Such plan of operation shall make due provision with 9 respect to investments and obligations of the city of Schenectady made 10 or incurred in the operation of off-track pari-mutuel betting. The coun- 11 ty of Schenectady shall reimburse the city of Schenectady on account of 12 lost revenues from the operation of off-track betting. The amount of 13 reimbursement shall be calculated under the rules of the [board] commis- 14 sion to guarantee that the city shall receive annually an amount equal 15 to the net revenue received from off-track betting for the calendar year 16 nineteen hundred seventy-three or a [per centum] percent of the net 17 revenues received by such county obtained by dividing the bets originat- 18 ing in such city by the bets originating in such county during the 19 distribution period, whichever is less. Reimbursement shall continue for 20 a period of ten years and shall be made in substantially equal quarterly 21 payments. 22 b. Until such time as the Capital District regional off-track betting 23 corporation's plan of operation has been approved by the [state racing24and wagering board] commission and the county of Schenectady has enacted 25 enabling legislation to join such corporations and such county's partic- 26 ipation has been implemented, the city of Schenectady shall have all the 27 rights, powers, duties and obligations of the county of Schenectady 28 under this chapter, including but not limited to the right to partic- 29 ipate in the formation of such corporation or subsequently to partic- 30 ipate in the operation thereof, as the case may be, except that the 31 geographical boundaries of such city's participation shall be limited to 32 the city of Schenectady. 33 8. The [board] commission may authorize and approve: 34 a. [An] an application submitted by the New York city off-track 35 betting corporation to amend its plan of operation, pursuant to the 36 provisions of this section, to provide for the display in no more than 37 two existing facilities within Richmond county of telecasts of live 38 audio and visual signals of harness racing from any harness racing asso- 39 ciation or corporation within its region; provided, however, that 40 (i) the association or corporation conducting such racing has entered 41 into a written agreement for such telecasts with the New York city off- 42 track betting corporation pursuant to section five hundred twenty-seven 43 of this chapter, which agreement shall terminate no later than the thir- 44 tieth day of June, nineteen hundred eighty-five, 45 (ii) all expenses incurred in the implementation of such amendment to 46 its plan of operation for such telecasting shall be the responsibility 47 of the New York city off-track betting corporation, and 48 (iii) the [board] commission shall submit reports to the governor and 49 the legislature evaluating the results of such experiment on the compat- 50 ibility with the well-being of the horse racing and breeding industries 51 in this state, and its effect on handle and attendance at off-track 52 facilities within Richmond county, and including recommendations regard- 53 ing the future authorization of the telecast of live audio and visual 54 signals into off-track betting facilities; and 55 b. [One] one other application submitted by an off-track betting 56 corporation, other than the New York city off-track betting corporation,A. 9749 83 1 to amend its plan of operation, pursuant to the provisions of this 2 section, to provide for the display in two existing facilities within 3 its region of telecasts of live audio and visual signals of harness 4 racing from any harness racing association or corporation within its 5 region; provided however, that 6 (i) the association or corporation conducting such racing has entered 7 into a written agreement for such telecasts with such off-track betting 8 corporation pursuant to section five hundred twenty-seven of this chap- 9 ter, which agreement shall terminate no later than the thirtieth day of 10 June, nineteen hundred eighty-five, 11 (ii) all expenses incurred in the implementation of such amendment to 12 its plan of operation for such telecasting shall be the responsibility 13 of the off-track betting corporation, and 14 (iii) the [board] commission shall submit reports to the governor and 15 the legislature evaluating the results of such experiment on the compat- 16 ibility with the well-being of the horse racing and breeding industries 17 in this state, and at off-track facilities within its region, and 18 including recommendations regarding the future authorization of the 19 telecast of live audio and visual signals into off-track betting facili- 20 ties. 21 c. [Provided] provided, however, that such audio and visual telecasts 22 into approved facilities shall commence no earlier than sixty days after 23 such telecasts have been approved. During such time, the off-track 24 betting corporation shall provide to the [board] commission daily data, 25 to include but not be limited to, wagers, separately by type of racing 26 and wagers, attendance and promotion expenditures of such facilities in 27 such manner as the [board] commission may require. Such data [will] 28 shall be used as the pre-telecast base to evaluate the impact of such 29 telecasts. In addition, such similar data and information shall also be 30 supplied to the [board] commission during the period that such telecasts 31 are authorized. No change in the types of wagers offered to patrons may 32 be made without prior written approval by the [board] commission of at 33 least thirty days in advance of such requested change. 34 § 100. Section 522 of the racing, pari-mutuel wagering and breeding 35 law, subdivision 1 as amended by chapter 18 of the laws of 2008, subdi- 36 vision 2 as amended by chapter 38 of the laws of 2006 and subdivision 4 37 as added by chapter 241 of the laws of 2010, is amended to read as 38 follows: 39 § 522. Suspension of approval. 1. The [board] commission may suspend 40 its approval of any plan of operation if the regional corporation whose 41 plan of operation has been approved or its officers or directors [fail] 42 fails to conduct off-track pari-mutuel betting on horse races in accord- 43 ance with the provisions of the plan of operation, with the applicable 44 rules of the [board] commission or with the provisions of this article, 45 article five and article six of this chapter, as the case may be; or if 46 such corporation or its officers or directors shall knowingly permit on 47 any of its premises lotteries, pool-selling or bookmaking or any other 48 kind of gambling, in violation of this chapter or of the penal law. 49 Suspension shall continue for the period necessary to remedy the situ- 50 ation or condition requiring such suspension. 51 2. If the [board shall determine to suspend] commission suspends 52 approval of any plan of operation [it] the commission shall give the 53 regional corporation involved notice of the time and place for a hearing 54 before the [board] commission, at which the [board will] commission 55 shall hear such regional corporation in reference thereto. The [board] 56 commission may continue such hearing from time to time for the conven-A. 9749 84 1 ience of all parties. Any of the parties affected by such hearing may be 2 represented by counsel, and the [board] commission may be represented by 3 its own counsel or by the attorney general. In the conduct of such hear- 4 ing the [board] commission shall not be bound by technical rules of 5 evidence, but all evidence offered before the [board] commission shall 6 be reduced to writing, and such evidence together with the exhibits, if 7 any, and the findings of the [board] commission shall be permanently 8 preserved and shall constitute the record of the [board] commission in 9 such case. Within thirty days after such hearing, the [board] commis- 10 sion shall make a final determination. Such hearing may be presided over 11 by the [chairperson] chair of the [board] commission or by any member or 12 an officer of the [board] commission designated by the [chairperson] 13 chair in writing to act as hearing officer and such person or persons 14 may issue subpoenas for witnesses and administer oaths to witnesses. The 15 hearing officer, at the conclusion of the hearing, shall make findings, 16 which, if concurred in by [two members] a majority of a quorum of the 17 [board] commission, shall become the findings of the [board] commission. 18 If [it] the commission determines that such approval [be] is suspended, 19 [it] the commission shall make an order accordingly[,] and shall cause 20 such order to be entered on its minutes and a copy thereof served on 21 such regional corporation. The action of the [board] commission in 22 suspending such approval shall be reviewable in the supreme court in the 23 manner provided by the provisions of article seventy-eight of the civil 24 practice law and rules. 25 3. The [board] commission may suspend approval of any plan of opera- 26 tion for a reason set forth in subdivision one of this section as of the 27 delivery to the regional corporation of the notice of hearing required 28 by subdivision two of this section pending final determination of the 29 [board] commission following the hearing; provided, however, that no 30 suspension of approval pursuant to this subdivision shall be for a peri- 31 od longer than twenty days. 32 4. [In] The commission, in addition to its power to suspend or revoke 33 plans of operation approved or licenses granted by it, [the board] is 34 hereby authorized and empowered to impose monetary fines upon any corpo- 35 ration, association or person participating in any way in off-track 36 betting on which pari-mutuel betting is conducted, other than as a 37 patron, and whether licensed by the [board] commission or not, for 38 violation of any provisions of this chapter, or the rules promulgated by 39 the [board] commission pursuant thereto, or an approved plan of opera- 40 tion, not exceeding fifty thousand dollars for each violation. The 41 [board] commission is further authorized and empowered to impose mone- 42 tary fines, not exceeding fifty thousand dollars for each violation, 43 upon any such corporation, association or person for a violation of any 44 order issued by the [board] commission pursuant to the provisions of 45 this chapter or the rules promulgated by the [board] commission pursuant 46 thereto, provided that a copy of such order shall have been served 47 either personally or by certified mail, upon the corporation, associ- 48 ation or person to whom the same was directed, prior to the occurrence 49 of the violation for which such fine is imposed. The [board] commission 50 shall impose such monetary fines, subject to the notice and hearing 51 provisions of the state administrative procedure act. Such fines shall 52 be paid into the state treasury. The action of the [board] commission in 53 imposing any monetary fine shall be reviewable in the supreme court in 54 the manner provided by and subject to the provisions of article seven- 55 ty-eight of the civil practice law and rules.A. 9749 85 1 § 101. The opening paragraph and subdivisions 2, 3, 4, 6, 7 and 9 of 2 section 523 of the racing, pari-mutuel wagering and breeding law, subdi- 3 vision 4 as amended by chapter 286 of the laws of 1985, paragraph a of 4 subdivision 6 as amended by chapter 346 of the laws of 1990, paragraph b 5 of subdivision 6 as amended by chapter 18 of the laws of 2008, subdivi- 6 sion 7 as amended by chapter 2 of the laws of 1995 and subdivision 9 as 7 added by chapter 281 of the laws of 1994, are amended to read as 8 follows: 9 The [board] commission shall require that any regional corporation 10 conduct off-track pari-mutuel betting in accordance with this section. 11 2. Exotic and multiple bets on races run within the state may be 12 approved by the [board] commission without a comparable on-track pool, 13 provided that the corporation or association conducting such races shall 14 have filed with the [board] commission a written consent for such off- 15 track exotic or multiple bets on races held at its track. 16 3. The [board] commission may approve separate off-track pools on 17 races run in other states subject to the limitations of this section and 18 of subdivision eight of this section in particular. 19 4. No regional corporation authorized to conduct off-track betting by 20 the [board] commission shall accept off-track wagers on races run at any 21 harness track located without its region while a harness track within 22 its region is conducting a race meeting involving pari-mutuel betting 23 without the approval of the regional operating harness track; provided, 24 however, that for the purposes of this subdivision, the Suffolk region, 25 the Nassau region, the New York city region, and the portion of the 26 Catskill region outside a special betting district shall be considered a 27 single region; and further provided, however, that for the purposes of 28 this subdivision, there shall be created a harness special betting 29 district, consisting of the counties of Cayuga, Chenango, Cortland, 30 Franklin, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, 31 Otsego, St. Lawrence and Tompkins in which no off-track betting on races 32 run at a harness track without such special betting district shall be 33 permitted while a harness track within such special betting district is 34 conducting a race meeting involving pari-mutuel betting. 35 6. a. No regional corporation may accept wagers on races run at a 36 thoroughbred or steeplechase track in another state or country while a 37 thoroughbred or steeplechase track within this state is conducting a 38 race meeting involving pari-mutuel betting; provided, however, that 39 notwithstanding any inconsistent provision, the [board] commission may 40 designate no more than fifteen thoroughbred or steeplechase races per 41 year as races of special interest on which off-track pari-mutuel betting 42 may be accepted by regional corporations, provided further that for 43 purposes of this subdivision the acceptance of wagers on a series of 44 races known as the "Breeders' Cup" shall be considered as a single 45 thoroughbred or steeplechase race of special interest and all such races 46 shall be determined in accordance with article nine of this chapter. 47 b. When a race meeting is not being conducted by a franchised corpo- 48 ration and a thoroughbred race meeting is being conducted at a track 49 located within the thoroughbred special betting district, regional 50 corporations and portions of regional corporations outside such 51 district, shall, in addition to accepting wagers on races at such track, 52 also be permitted to accept wagers on thoroughbred races run in another 53 state. In the event that wagers are accepted on races run at both a 54 track located in the thoroughbred special betting district and at a 55 track located in another state, the balance of the amount payable to 56 tracks within this state pursuant to paragraph f of subdivision one ofA. 9749 86 1 section five hundred twenty-seven of this article, but (i) not less than 2 one [per centum] percent on regular and multiple wagering and two [per3centum] percent on exotic wagers, shall be paid to the track located 4 within the thoroughbred special betting district running thoroughbred 5 races, and (ii) not less than three-quarters of one [per centum] percent 6 of regular and multiple wagering and one and one-quarter [per centum] 7 percent on exotic wagers shall be paid to the harness track operator 8 conducting racing within the region within which the wagers on such 9 out-of-state races are placed. 10 c. If as a result of the authorization granted in paragraph b of this 11 subdivision, the average daily distribution to harness track operators 12 from regional off-track betting corporations and attributable to the 13 conduct of off-track betting on thoroughbred races run concurrently by 14 both an in-state and an out-of-state track operator during the period 15 from June first, nineteen hundred seventy-eight through May thirty- 16 first, nineteen hundred seventy-nine and each succeeding [twelve month] 17 twelve-month period thereafter is less than the average daily distrib- 18 ution to such operators from off-track betting corporations and attrib- 19 utable to the conduct of racing by a thoroughbred racing association 20 during the base period of June first, nineteen hundred seventy-seven 21 through May thirty-first, nineteen hundred seventy-eight, such operators 22 shall be entitled to a credit against the state tax imposed upon its 23 pari-mutuel revenues. The tax credit for any [twelve month] twelve-month 24 period shall be an amount calculated by multiplying the shortfall in the 25 average daily distribution by the number of days in each [twelve month] 26 twelve-month period that regional off-track betting corporations conduct 27 betting on thoroughbred races run concurrently by both an in-state and 28 an out-of-state track operator. The [board] commission shall so certify 29 to the [state tax commission] department of taxation and finance the 30 amount of credit applicable to each harness track operator no later than 31 thirty days following the close of each [twelve month] twelve-month 32 period. 33 7. No regional corporation may accept wagers on races run at a harness 34 track in another state or country while a harness track within this 35 state is conducting a race meeting involving pari-mutuel betting; 36 provided, however, that notwithstanding any inconsistent provisions the 37 [board] commission may designate no more than fifty harness races per 38 year as races of special interest on which off-track pari-mutuel betting 39 may be accepted by regional corporations. 40 9. [(a)] Notwithstanding any other provision of this article any 41 regional corporation having a missed pool as defined in this subdivision 42 shall dispose of such pool [as follows:43(1) Any missed pools of wagers placed at off-track betting parlors44subsequent to December thirty-first, nineteen hundred eighty-two and45prior to August first, nineteen hundred ninety-four which were not used46to calculate payouts to winning bettors because such wagers failed to be47transmitted to and were not included in the statewide pari-mutuel48betting pool shall be retained by such corporation for its ordinary49operating expenses.50(2) On or before August first, nineteen hundred ninety-four the board51shall promulgate] according to rules and regulations of the commission, 52 which shall direct [said] such regional corporations and [said] such 53 missed pools to the in-state track conducting the race on which the 54 wager was placed to be used for the next available common pool. 55 § 102. Section 524 of the racing, pari-mutuel wagering and breeding 56 law, subdivisions 1 and 4 as amended by chapter 459 of the laws of 2010A. 9749 87 1 and subdivision 3 as amended by section 9 of part F-3 of chapter 62 of 2 the laws of 2003, is amended to read as follows: 3 § 524. Reports, accounts, investigations. 1. The [board] commission 4 shall, consistent with the powers of the department of taxation and 5 finance, prescribe uniform methods of keeping accounts, records and 6 books to be observed by regional corporations. The [board] commission 7 shall, consistent with the powers of the department of taxation and 8 finance, prescribe by order forms of accounts, records and memoranda to 9 be kept by such corporations. The [board] commission shall have power to 10 visit, investigate, and place expert accountants, or such other persons 11 as [it] the commission may deem necessary, in the offices, or other 12 places of business of any such corporation for the purpose of seeing 13 that the provisions of this chapter and the rules and regulations issued 14 by the [board] commission thereunder are strictly complied with. Upon a 15 finding by the [board] commission of a reasonable basis to believe that 16 any such [offtrack] off-track betting corporation is not complying with 17 the rules and regulations of the [board] commission or with applicable 18 provisions of law, the [board] commission, after providing a written 19 report setting forth its findings, may by a majority vote direct such 20 corporation to cause [its] such corporation's business and managerial 21 practices to be audited at [its] such corporation's own expense to 22 ensure that such corporation complies with the rules and regulations of 23 the [board] commission or any applicable provision of law. 24 2. Each regional corporation approved by the [board] commission to 25 conduct off-track pari-mutuel betting shall submit daily accounting 26 reports to the [board] commission, within forty-eight hours after each 27 racing day, accounting for all tickets sold and winning tickets cashed 28 or refunds and such other information as the [board] commission may 29 require. Copies of such daily reports shall be submitted to each racing 30 association or corporation conducting races on which off-track wagers 31 were accepted by such regional corporation. 32 3. Quarterly financial statements shall be submitted by each corpo- 33 ration to the [board] commission within fifteen days after the end of 34 each calendar quarter[,] and shall include a balance sheet, a statement 35 of revenue net of expenses, statement of cash flow, a breakdown of oper- 36 ating and administrative expenses for the quarter preceding submission 37 of the report and for the year to date. All such reports shall be 38 subject to audit by the state comptroller and shall be public records. 39 4. The reports required under this section shall be in such form and 40 contain such other matters as the [board] commission may determine from 41 time to time to be necessary to disclose accurately the financial condi- 42 tion and operation of such corporations. Each regional corporation shall 43 submit a copy of the corporation's annual budget to the [board] commis- 44 sion no later than twenty days following approval of such budget by the 45 corporation's board of directors. The [board] commission may for good 46 cause shown grant a reasonable extension of time for the filing of any 47 such report. 48 § 103. Section 525 of the racing, pari-mutuel wagering and breeding 49 law, as amended by chapter 538 of the laws of 1999, is amended as 50 follows: 51 § 525. Statewide transmission. Subject to the general limitations of 52 this article, the provisions of its plan of operation and the rules and 53 regulations of the [board] commission, each regional corporation may 54 provide for direct transmission of off-track wagering information to a 55 track within its region for the purpose of creating a joint or combined 56 pool as required by section five hundred twenty-three of this article.A. 9749 88 1 § 104. Section 526 of the racing, pari-mutuel wagering and breeding 2 law is amended to read as follows: 3 § 526. Use of track facilities; combined pools. In order to effectuate 4 the general policy of this article that off-track and on-track wagers be 5 combined into single pools to provide uniform odds and payouts, track 6 operators shall be subject to the requirements of this section. 7 1. a. At the request of a regional corporation, a track operator 8 conducting a race meeting at a track in this state, shall, upon such 9 terms and conditions as may be agreed upon by such operator and the 10 corporation subject to the approval of the [board] commission, provide 11 appropriate space and facilities at its track whereby the corporation 12 may perform the functions hereinafter described with respect to the 13 transmission and reception of wagering and racing information; provided, 14 however, that payments to the track operator pursuant to section five 15 hundred twenty-seven of this article shall be deemed adequate consider- 16 ation for the occupancy of vacant space at such track or the use of 17 existing facilities. The terms and conditions shall provide that the 18 corporation shall bear the cost of any additional office space or the 19 installation, leasing, operation, maintenance and servicing of addi- 20 tional facilities or equipment [shall be borne by the corporation]. 21 b. In the event that a corporation and such operator shall be unable 22 to agree upon the space and facilities of such track to be provided to 23 the corporation by such operator, or the terms and conditions of the use 24 and occupancy thereof by the corporation, the [board] commission shall, 25 upon application in writing made either by the corporation or by such 26 operator, determine the appropriate space and facilities to be provided 27 to such corporation and the terms, conditions and costs of its use and 28 occupancy by such corporation. 29 c. Upon the decision of the [board] commission, the corporation shall 30 be entitled to use and occupy immediately the space and facilities 31 prescribed by the [board] commission, upon the terms and conditions 32 established by the [board] commission. 33 2. No track operator shall prevent a regional corporation from using 34 and occupying the space and facilities prescribed according to subdivi- 35 sion one of this section, nor fail to cause off-track wagers to be 36 combined with on-track wagers into single pools, provided off-track 37 wagering information is transmitted to the track in an accurate and 38 timely fashion, nor prevent such transmission of racing information by 39 the regional corporation to its offices as may be consistent with the 40 regulations of the [board] commission. 41 3. The [board] commission shall be entitled to the use and occupancy 42 of space and facilities upon reasonable terms in like manner as a 43 regional corporation whenever [it] the commission shall so require in 44 order to perform its statewide transmission function pursuant to section 45 five hundred twenty-five of this article. Any claim arising from such 46 occupancy and use shall be determined by the court of claims. 47 4. The [board] commission, on its own behalf or on behalf of a 48 regional corporation, may apply to the supreme court for an injunction 49 directing any track operator to comply with this section. In any such 50 action the [board] commission shall not be required to post bond or 51 security. 52 5. Nothing contained in this section shall be construed as requiring 53 the [board] commission or any regional corporation to pay or deliver to 54 any track operator any sum received from any bettor as a wager or other- 55 wise, but the net amount due from the [board] commission or such 56 regional corporation to the operator, in the event that payments toA. 9749 89 1 winning bettors at the track exceed the portion of the pari-mutuel pool 2 attributable to such bettors, or the net amount due from the operator to 3 the [board] commission or regional corporation, in the event that 4 payments to winning bettors off the track exceed the portion of the 5 pari-mutuel pool attributable to such bettors, as the case may be, shall 6 be paid within seven days of a race. 7 § 105. The opening paragraph of subdivision 1, paragraphs b and c of 8 subdivision 3 and subdivisions 5 and 5-a of section 527 of the racing, 9 pari-mutuel wagering and breeding law, as amended by chapter 18 of the 10 laws of 2008 and the opening paragraph of subdivision 1 as amended by 11 chapter 241 of the laws of 2019, are amended to read as follows: 12 The disposition of the retained commission from pools resulting from 13 regular, multiple or exotic bets, as the case may be, whether placed on 14 races run within a region or outside a region, conducted by racing 15 corporations, harness racing associations or corporations, quarter horse 16 racing associations or corporations or races run outside the state shall 17 be governed by the tables in paragraphs a and b of this subdivision. The 18 rate denominated "state tax" shall represent the rate of a reasonable 19 tax imposed upon the retained commission for the privilege of conducting 20 off-track pari-mutuel betting, which tax is hereby levied and shall be 21 payable in the manner set forth in this section. Each off-track betting 22 corporation shall pay to the [gaming] commission as a regulatory fee, 23 which fee is hereby levied, six-tenths of one percent of the total daily 24 pools of such corporation. Each corporation shall also pay twenty 25 percent of the breaks derived from bets on harness races and fifty 26 percent of the breaks derived from bets on all other races to the agri- 27 culture and New York State horse breeding and development fund and to 28 the thoroughbred breeding and development fund, the total of such 29 payments to be apportioned fifty percent to each such fund. For the 30 purposes of this section, the New York city, Suffolk, Nassau, and the 31 Catskill regions shall constitute a single region and any thoroughbred 32 track located within the Capital District region shall be deemed to be 33 within such single region. A "regional meeting" shall refer to either 34 harness or thoroughbred meetings, or both, except that a franchised 35 corporation shall not be a regional track for the purpose of receiving 36 distributions from bets on thoroughbred races conducted by a thorough- 37 bred track in the Catskill region conducting a mixed meeting. With the 38 exception of a harness racing association or corporation first licensed 39 to conduct pari-mutuel wagering at a track located in Tioga, Saratoga or 40 Westchester county after January first, two thousand five, racing corpo- 41 rations first licensed to conduct pari-mutuel racing after January 42 first, nineteen hundred eighty-six or a harness racing association or 43 corporation first licensed to conduct pari-mutuel wagering at a track 44 located in Genesee County after January first, two thousand five, and 45 quarter horse tracks shall not be "regional tracks"; if there is more 46 than one harness track within a region, such tracks shall evenly divide 47 payments made pursuant to the tables in paragraphs a and b of this 48 subdivision when neither track is running. In the event a track elects 49 to reduce its retained percentage from any or all of its pari-mutuel 50 pools, the payments to the track holding the race and the regional track 51 required by paragraphs a and b of this subdivision shall be reduced in 52 proportion to such reduction. Nothing in this section shall be construed 53 to authorize the conduct of off-track betting contrary to the provisions 54 of section five hundred twenty-three of this article. 55 b. In addition to any other amount required by this section, of the 56 portion of commissions retained by a regional corporation, an amountA. 9749 90 1 equal to one and eighty-five hundredths [per centum] percent of regular 2 pools and an amount equal to two and thirty-five hundredths [per centum] 3 percent of multiple pools and two and thirty-five hundredths [per4centum] percent of exotic pools derived from wagers on races conducted 5 by a franchised corporation shall be paid to such corporation to be used 6 exclusively for the purpose of increasing purses, including stakes, 7 premiums and prizes. [Provided, however, for the period July twenty-8fifth, two thousand one through June thirtieth, two thousand four, a9regional corporation for the New York city, Nassau, Suffolk or Catskill10region shall pay, of the portion of the commissions retained by such11regional corporation on all pools, an amount equal to six and fifty12hundredths per centum to such franchised corporation of which three and13eighty hundredths per centum shall be used exclusively for the purpose14of increasing purses, including stakes, premiums and prizes. Provided,15further for the period July twenty-fifth, two thousand one through June16thirtieth, two thousand four a regional corporation for the capital or17western region shall pay to such franchised corporation of the portion18of the commissions retained by such regional corporation on all pools19when there is a regional meeting, an amount equal to three and eighty-20five hundredths of which two and eighty-five hundredths shall be used21exclusively for the purpose of increasing purses, including stakes,22premiums and prizes.] An additional two and sixty-five hundredths shall 23 be paid to the regional harness track. When there is no regional meet- 24 ing, an amount equal to four and sixty-five hundredths shall be paid to 25 such nonprofit racing association of which two and [ninety hundredths] 26 nine tenths shall be used exclusively for the purpose of increasing 27 purses, including stakes, premiums and prizes. An additional one and 28 eighty-five hundredths shall be paid to the regional harness track. In 29 addition to any other amounts required to be paid to a franchised corpo- 30 ration, for the period July twenty-first, nineteen hundred ninety-five 31 through July twenty-fourth, two thousand one, an additional one and 32 twenty-five hundredths [per centum] percent of multiple pools derived 33 from wagers on races conducted by a franchised corporation shall be paid 34 to such association for its own use and purposes. Any portion of said 35 amount not so used during any year shall be used during the following 36 year, failing which it shall be returned to the regional corporation on 37 or before April first in the year following the year in which it is not 38 so used to be distributed to the participating local governments. 39 c. In addition to any other amount required by this section, of the 40 portion of commissions retained by a regional corporation, an amount 41 equal to one and one-tenth [per centum] percent of regular and multiple 42 pools and six-tenths of one [per centum] percent of exotic pools derived 43 from wagers on races conducted by a thoroughbred racing corporation, 44 licensed by the [board] commission, other than a franchised corporation, 45 shall be paid to such thoroughbred racing corporation to be used exclu- 46 sively for the purpose of increasing purses, including stakes, premiums 47 and prizes. Any portion of [said] such amount not so used during any 48 year shall be used during the following year, failing which [it] such 49 amount shall be returned to the regional corporation on or before April 50 first in the year following the year in which it is not so used to be 51 distributed to the participating local governments. 52 5. a. One [per centum] percent of daily pools derived from bets on 53 harness races shall be paid to the agriculture and New York state breed- 54 ing and development fund except that for super exotic betting pools such 55 amount shall be three [per centum] percent of such bets.A. 9749 91 1 b. An amount equal to one-half of one [per centum] percent of total 2 daily off-track pari-mutuel pools resulting from regular, multiple and 3 exotic bets and three [per centum] percent of super exotic bets on 4 thoroughbred or steeplechase races shall be paid to the New York state 5 thoroughbred breeding and development fund. 6 c. From the total breaks retained by a regional corporation, an amount 7 equal to ten [per centum] percent of the breaks derived from bets on 8 quarter horse races shall be paid to the New York state quarter horse 9 breeding and development fund. 10 5-a. Notwithstanding any other provision of law, a regional corpo- 11 ration shall retain, in addition to those amounts described in the open- 12 ing paragraph of this section, from regular and multiple bets on races 13 run at tracks electing to withhold pursuant to section two hundred thir- 14 ty-seven or section three hundred nineteen of this chapter, an amount 15 equal to one [per centum] percent of pools resulting from total wagering 16 at such tracks, one-half of which shall be paid to such tracks or non- 17 profit county agricultural society, except that the full one [per18centum] percent shall be paid to a thoroughbred track in the Catskill 19 region conducting a mixed meeting, to be used exclusively for capital 20 improvements pursuant to sections two hundred thirty-seven and three 21 hundred nineteen of this chapter and subject to the rules and regu- 22 lations of the [racing and wagering board] commission and one-half to be 23 retained by the regional corporation for its own corporate purposes. 24 § 105-a. Paragraph b of subdivision 3 of section 527 of the racing, 25 pari-mutuel wagering and breeding law, as amended by chapter 94 of the 26 laws of 2001, is amended to read as follows: 27 b. In addition to any other amount required by this section, of the 28 portion of commissions retained by a regional corporation, an amount 29 equal to one and one-quarter [per centum] percent of regular and multi- 30 ple pools and three-quarters of one [per centum] percent of exotic pools 31 derived from wagers on races conducted by a nonprofit racing association 32 shall be paid to such nonprofit racing association to be used exclusive- 33 ly for the purpose of increasing purses, including stakes, premiums and 34 prizes. [Provided, however, for the period July twenty-fifth, two thou-35sand one through June thirtieth, two thousand four, if a regional corpo-36ration for the New York city, Nassau, Suffolk or Catskill region shall37pay, of the portion of the commissions retained by such regional corpo-38ration on all pools, an amount equal to six and fifty hundredths per39centum to such nonprofit racing association of which three and eighty40hundredths per centum shall be used exclusively for the purpose of41increasing purses, including stakes, premiums and prizes. Provided,42further that for the period July twenty-fifth, two thousand one through43June thirtieth, two thousand four a regional corporation for the capital44or western region shall pay to such nonprofit racing association of the45portion of the commissions retained by such regional corporation on all46pools when there is a regional meeting, an amount equal to three and47eighty-five hundredths of which two and fifty hundredths shall be used48exclusively for the purpose of increasing purses, including stakes,49premiums and prizes.] An additional two and sixty-five hundredths shall 50 be paid to the regional harness track. When there is no regional meet- 51 ing, an amount equal to four and sixty-five hundredths shall be paid to 52 such nonprofit racing association of which two and [ninety hundredths] 53 nine-tenths shall be used exclusively for the purpose of increasing 54 purses, including stakes, premiums and prizes. An additional one and 55 eighty-five hundredths shall be paid to the regional harness track. Any 56 portion of said amount not so used during any year shall be used duringA. 9749 92 1 the following year, failing which it shall be returned to the regional 2 corporation on or before April first in the year following the year in 3 which it is not so used to be distributed to the participating local 4 governments. 5 § 106. Section 528 of the racing, pari-mutuel wagering and breeding 6 law, subdivision 3 as amended by chapter 18 of the laws of 2008, is 7 amended to read as follows: 8 § 528. Agreements involving other states. 1. The [board] commission 9 shall be empowered to conclude agreements with another state or a racing 10 corporation or association in another state, as the case may be, on 11 behalf of any or all regional corporations for the purpose of conducting 12 off-track betting on races run in another state, subject to the other 13 provisions of this article. 14 2. No regional corporation shall conclude such an agreement without 15 the express approval of the [board] commission, which shall be withheld 16 upon a finding that such agreement would be contrary to the purposes of 17 this article or upon the [board's] commission's determination to act 18 directly, pursuant to this section. 19 3. Subdivisions one and two of this section shall apply in like manner 20 to any agreements with another state or any agency, subdivision or enti- 21 ty thereof concerning off-track pari-mutuel betting conducted in another 22 state on races run in this state. No franchised corporation, nor any 23 racing corporation or association licensed by the [board] commission 24 shall enter into such an agreement without the [board's] commission's 25 express approval. 26 § 107. Section 529 of the racing, pari-mutuel wagering and breeding 27 law is amended to read as follows: 28 § 529. Unclaimed winnings and refunds. The [board] commission shall 29 require each regional corporation to establish a non-escrowed account 30 for payment of outstanding winning tickets and for payment of refunds to 31 ticket holders entitled thereto under the rules of the [board] commis- 32 sion. 33 1. All tickets must be presented for payment to the regional corpo- 34 ration from which purchased prior to April first of the year following 35 the year of purchase. 36 2. Ninety-five percent of the balance of such account remaining 37 unclaimed as of the last day of February of such year shall be paid to 38 the [state tax commission] department of taxation and finance by March 39 fifteenth. On or before April tenth of each year the balance of such 40 account and any other unclaimed amounts received in the course of 41 conducting off-track betting shall be paid by such corporation to the 42 [state tax commission] department of taxation and finance. A penalty of 43 five percent and interest at the rate of one percent per month from the 44 due date to the date of payment of the unclaimed balance due March 45 fifteenth or April tenth, as the case may be, shall be payable in case 46 such balance is not paid when due. Such amounts, interest and penalties 47 when collected by the [state tax commission] department of taxation and 48 finance shall be deposited into the general fund of the state treasury. 49 § 108. Section 530 of the racing, pari-mutuel wagering and breeding 50 law, as amended by chapter 18 of the laws of 2008, is amended to read as 51 follows: 52 § 530. Job security for track employees. Plans of operation of 53 regional off-track betting corporations shall include provision for job 54 security for employees of racetracks within each region compatible with 55 and in furtherance of the objectives of this article and subject to the 56 approval of the [state racing and wagering board] commission. Job secu-A. 9749 93 1 rity agreements that may be concluded from time to time after July 2 first, nineteen hundred seventy-three between track employee organiza- 3 tions and the New York city off-track betting corporation or any other 4 regional off-track betting corporation shall be subject to the approval 5 of the [board] commission and when approved shall be deemed a part of 6 the plan of operation of such corporation and any other regional corpo- 7 ration; provided, however, that nothing in this article or any other 8 provision of this chapter shall be construed to require or empower the 9 [board] commission to abrogate job security agreements between the New 10 York city off-track betting corporation and any track employee organiza- 11 tion, in effect on July first, nineteen hundred seventy-three and any 12 such contracts shall be deemed to be a part of the plan of operation of 13 such corporation. 14 § 109. Section 531 of the racing, pari-mutuel wagering and breeding 15 law is amended to read as follows: 16 § 531. Reduction of local admissions taxes as a pre-condition of off- 17 track betting. 1. Notwithstanding article eight of this chapter[,] and 18 subdivision twenty-four of section sixty-four of the town law, no local- 19 ly imposed taxes on admissions to harness or running races shall be in 20 the aggregate more than three [per centum] percent of such admissions on 21 and after the first day that off-track pari-mutuel betting is conducted 22 or continues to be conducted in such locality imposing the tax by a 23 regional corporation, pursuant to this article, established for the 24 region in which such races are conducted. 25 2. A regional corporation, except for such corporations consisting of 26 only one participating county or one city, shall annually reimburse any 27 city or town within such region for any reduction in admissions tax 28 revenues equal to the difference between such revenues for: 29 a. [The] the twelve months immediately preceding the reduction 30 required by this section, and 31 b. [Each] each twelve-month period subsequent to July thirty-first, 32 nineteen hundred seventy-eight. 33 § 110. Subdivisions 1, 3 and 4 of section 532 of the racing, pari-mu- 34 tuel wagering and breeding law, subdivision 1 and the opening paragraph 35 of subdivision 3 as amended by chapter 115 of the laws of 2008, subpara- 36 graph (v) of paragraph b of subdivision 3 as added by chapter 286 of the 37 laws of 1985, subparagraph (vi) of paragraph b of subdivision 3 as 38 amended by chapter 201 of the laws of 2017, are amended to read as 39 follows: 40 1. Notwithstanding any other provision of law, each regional off-track 41 betting corporation, or off-track betting operator, including the New 42 York city off-track betting corporation, conducting off-track betting 43 shall impose a surcharge of five [per centum] percent on the portion of 44 pari-mutuel wagering pools distributable to persons having placed bets 45 at off-track betting facilities located within such region. The revenues 46 derived from such surcharge, plus the breaks, shall be held separate and 47 apart from any amounts otherwise authorized to be retained from pari-mu- 48 tuel pools. Such surcharge is hereby levied subject to the conditions 49 set forth in this subdivision and article ten of this chapter. 50 3. The revenues received from any surcharge imposed by subdivision one 51 of this section, plus the breaks, shall be distributed monthly, as 52 follows: 53 a. [Fifty per centum] fifty percent to such city, or to the counties 54 and cities entitled to receive revenues from the regional corporation 55 pursuant to section five hundred sixteen of this chapter and in the same 56 proportion as provided therein, or to an off-track betting operator; andA. 9749 94 1 b. [The] the balance as follows: 2 (i) where the track conducting the race on which the bet was placed is 3 located within a city with a population in excess of one hundred thou- 4 sand, to such city; 5 (ii) where the track conducting the race on which the bet was placed 6 is not located within a city with a population in excess of one hundred 7 thousand, to the county in which such track is located; 8 (iii) where the track conducting the race on which the bet was placed 9 is located partially within a city with a population in excess of one 10 million and partially within a county, twenty-five [per centum] percent 11 of such balance to the city and the remainder to the county; [and] 12 (iv) where the track conducting the race on which the bet was placed 13 is located outside the state, in the same manner as described in para- 14 graph a of this subdivision[.]; 15 (v) where the track conducting the race is located in a thoroughbred 16 special betting district and is simulcasting pursuant to section one 17 thousand eight of this chapter outside such special betting district, 18 ninety [per centum] percent to the off-track betting operator and ten 19 [per centum] percent to the county in which such track is located[.]; 20 and 21 (vi) for the period of September first, two thousand seventeen until 22 August thirty-first, two thousand twenty-two and where the track 23 conducting the race on which the bet was placed is a harness track 24 located in the county of Erie, to such track. 25 4. The [state racing and wagering board] commission shall issue regu- 26 lations providing for monthly distribution to cities and counties of the 27 revenues received under this section, through the regional off-track 28 betting corporation in which such cities or counties are located; 29 provided, however, in the event that such cities or counties otherwise 30 entitled to receive such revenues are not participating cities or coun- 31 ties with a regional off-track betting corporation then such monthly 32 distributions shall be payable directly to such cities or counties. 33 Regional off-track betting corporations that receive payments under this 34 subdivision shall distribute such payments to appropriate participating 35 cities and counties within three business days following receipt of such 36 payments. The [board] commission shall also provide for periodic 37 reports by regional off-track betting corporations to ensure that the 38 purposes of this section are carried out. 39 § 111. Paragraphs b and c of subdivision 12 of section 604 of the 40 racing, pari-mutuel wagering and breeding law, as amended by chapter 115 41 of the laws of 2008, are amended to read as follows: 42 b. No rule or regulation promulgated by the corporation pursuant to 43 the provisions of this subdivision shall be effective until a copy ther- 44 eof is filed with the [racing and wagering board] commission. 45 c. Any violation of any rule or regulation, filed with the [racing and46wagering board] commission and designated by the letter "R" by resol- 47 ution of the board of directors of the corporation, shall be an offense 48 triable by a judge of the criminal court of the city, and shall be 49 punishable by imprisonment for not more than six months, or by a fine of 50 not more than one thousand dollars, or by both such imprisonment and 51 fine. All such fines collected shall be paid into the general fund of 52 the state. Any such rule or regulation shall be effective, notwithstand- 53 ing that any act or omission made an offense or punishable thereby may 54 be a crime or offense or punishable under any other provision of law;A. 9749 95 1 § 112. Subdivision 1 of section 610 of the racing, pari-mutuel wager- 2 ing and breeding law, as amended by chapter 115 of the laws of 2008, is 3 amended to read as follows: 4 1. The monetary transactions of the corporation and the keeping of its 5 books and accounts shall be under the supervision of the director of the 6 division of the budget. The chair of the [racing and wagering board] 7 commission may at any time request and shall be provided for review such 8 books and accounts. 9 § 113. Subdivisions 4 and 7 of section 611 of the racing, pari-mutuel 10 wagering and breeding law are amended to read as follows: 11 4. Any resolution or resolutions authorizing any bonds or notes may 12 contain provisions, which shall be a part of the contract or contracts 13 with the holders thereof, as to: 14 a. [Pledging] pledging all or any part of the moneys or revenues or 15 other assets of the corporation to secure the payment of such bonds or 16 notes; 17 b. [The] the setting aside of reserves or sinking funds and the regu- 18 lation or disposition thereof; 19 c. [Limitations] limitations on the purposes to which the proceeds of 20 the sale of any issue of bonds or notes then or thereafter to be issued 21 may be applied and pledging such proceeds to secure the payment of the 22 bonds or notes or any issue thereof; 23 d. [Limitations] limitations on the issuance of additional bonds or 24 notes; the terms upon which such additional bonds or notes may be issued 25 and secured; the refunding of outstanding bonds or notes; 26 e. [The] the procedures, if any, by which the terms of any contract 27 with the holders of bonds or notes may be extended or abrogated, the 28 amount of bonds or notes the holders of which must consent thereto and 29 the manner in which such consent may be given; 30 f. [The] the creation of special funds into which any moneys or reven- 31 ues of the corporation may be deposited; 32 g. [Limitations] limitations on the amounts that the corporation may 33 expend for administrative or other expenses thereof; 34 h. [Vesting] vesting in a trustee such properties, rights, powers and 35 duties in trust as the corporation may determine and limiting or abro- 36 gating the right of the holders of the bonds or notes to appoint a trus- 37 tee under section six hundred sixteen of this chapter; 38 i. [Defining] defining the acts or omissions to act [which] that shall 39 constitute a default in the obligations and duties of the corporation to 40 the holders of the bonds or notes and providing for the rights and reme- 41 dies of the holders of the bonds or notes in the event of such default, 42 including as a matter of right the appointment of a receiver; providing, 43 however, that such rights and remedies shall not be inconsistent with 44 the general laws of the state and the other provisions of this article; 45 and 46 j. [Any] any other matters, of like or different character, [which] 47 that in any way affect the security or protection of the holders of the 48 bonds or notes. 49 7. The corporation, subject to such agreements with the holders of 50 bonds or notes as may then exist, shall have the power out of any funds 51 available therefor to purchase any bonds or notes issued by it at a 52 price not exceeding the redemption price thereof, which price shall be: 53 a. [If] if the bonds or notes are then redeemable, the redemption 54 price then applicable plus accrued interest to the next interest payment 55 date thereon, orA. 9749 96 1 b. [If] if the bonds or notes are not then redeemable, the redemption 2 price applicable on the first date after such purchase upon which bonds 3 or notes become subject to redemption plus accrued interest to such 4 date. All bonds or notes so purchased shall be cancelled. 5 § 114. Subdivision 1 of section 612 of the racing, pari-mutuel wager- 6 ing and breeding law, paragraph a of subdivision 1 as amended by chapter 7 115 of the laws of 2008, is amended as follows: 8 1. The corporation shall create and establish a special fund herein 9 referred to as the capital reserve fund, and shall pay into such capital 10 reserve fund: 11 a. [Any] any moneys appropriated and made available by the state for 12 the purpose of such capital reserve fund, 13 b. [Any] any proceeds of sale of bonds or notes to the extent provided 14 in the resolution or resolutions of the corporation authorizing the 15 issuance thereof, and 16 c. [Any] any other moneys [which] that may be made available to the 17 corporation for the purpose of such capital reserve fund from any other 18 source or sources. All moneys held in the capital reserve fund, except 19 as hereinafter provided, shall be used solely for the payment of the 20 principal of bonds of the corporation, the payment of interest on such 21 bonds, or the payment of any redemption premium required to be paid when 22 such bonds are redeemed prior to maturity; provided, however, that 23 moneys in such capital reserve fund shall not be withdrawn therefrom at 24 any time in such amount as would reduce the amount of such fund to less 25 than the maximum amount of principal and interest maturing and becoming 26 due in any succeeding fiscal year of the corporation on all bonds of the 27 corporation then outstanding, except for the purpose of paying principal 28 of and interest on such bonds of the corporation maturing and becoming 29 due and for the payment of which other moneys of the corporation are not 30 available. Any income or interest earned by, or increment to, the capi- 31 tal reserve fund due to the investment thereof may be transferred to 32 other funds or accounts to the extent it does not reduce the amount of 33 the capital reserve fund below the maximum amount of principal and 34 interest maturing and becoming due in any such succeeding fiscal year on 35 all bonds of the corporation then outstanding. 36 § 115. Subdivision 2 of section 616 of the racing, pari-mutuel wager- 37 ing and breeding law is amended to read as follows: 38 2. Such trustee may, and upon written request of the holders of twen- 39 ty-five [per centum] percent in principal amount of such bonds or notes 40 then outstanding shall, in his, her or its own name: 41 a. [By] by suit, action or special proceedings enforce all rights of 42 the holders of the bonds or notes, including the right to require the 43 corporation to carry out any agreements with such holders and to perform 44 its duties under this article; 45 b. [Bring] bring suit upon such bonds or notes; 46 c. [By] by action or suit, require the corporation to account as if it 47 were the trustee of an express trust for the holders of such bonds or 48 notes; 49 d. [By] by action or suit, enjoin any acts or things [which] that may 50 be unlawful or in violation of the rights of the holders of such bonds 51 or notes; and 52 e. [Declare] declare all such bonds or notes due and payable, and if 53 all defaults shall be made good, then, with the consent of the holders 54 of twenty-five [per centum] percent of the principal amount of such 55 bonds or notes then outstanding, annul such declaration and its conse- 56 quences.A. 9749 97 1 § 116. Subdivisions 1, 4 and 5 of section 619 of the racing, pari-mu- 2 tuel wagering and breeding law are amended to read as follows: 3 1. As used in this section the following terms shall mean and include: 4 a. "Corporation counsel." The corporation counsel of the city. 5 b. "Employee." Any officer, director or employee of the corporation, a 6 former officer, director or employee of the corporation, his or her 7 estate or judicially appointed personal representative. The term employ- 8 ee shall not include an independent contractor. 9 4. The duty to defend or indemnify and save harmless prescribed by 10 this section shall be conditioned upon: 11 a. [Delivery] delivery to the corporation counsel at the office of the 12 law department of the city by the employee of the original or a copy of 13 any summons, complaint, process, notice, demand or pleading within ten 14 days after he or she is served with such document, and 15 b. [The] the full cooperation of the employee in the defense of such 16 action or proceeding and in defense of any action or proceeding against 17 the corporation based upon the same act or omission, and in the prose- 18 cution of any appeal. Such delivery shall be deemed a request by the 19 employee that the corporation provide for his or her defense pursuant to 20 this section. In the event that the corporation counsel shall assume an 21 employee's defense and thereafter the employee fails to or refuses to 22 cooperate in the formation or presentation of his or her defense, the 23 court shall permit the corporation counsel to withdraw his or her repre- 24 sentation ten days after giving written notice to the employee of his or 25 her intention to discontinue such representation. 26 5. In the event that the act or omission upon which the court proceed- 27 ing against the employee is based was or is also the basis of a disci- 28 plinary proceeding by the corporation against the employee, represen- 29 tation and indemnification pursuant to this section may be withheld: 30 a. [Until] until such disciplinary proceeding has been resolved, and 31 b. [Unless] unless the resolution of the disciplinary proceeding exon- 32 erated the employee as to such act or omission. 33 § 117. The opening paragraph of section 621 of the racing, pari-mutuel 34 wagering and breeding law, as amended by chapter 115 of the laws of 35 2008, is amended to read as follows: 36 Within one hundred twenty days after the end of the fiscal year of the 37 corporation, the directors thereof shall submit to the governor, the 38 legislature, the [racing and wagering board] commission and the state 39 comptroller a complete and detailed report setting forth: 40 § 118. Section 702 of the racing, pari-mutuel wagering and breeding 41 law is amended to read as follows: 42 § 702. Committee. The Harry M. Zweig memorial fund for equine research 43 committee is established for the purpose of administering the funds. The 44 committee [will] shall consist of not less than nine and not more than 45 fifteen members including but not limited to: 46 1. [The chairman] the chair of the [state racing and wagering board] 47 commission, or his or her designee[.]; 48 2. [The] the dean of New York state veterinary college at Cornell, or 49 his or her designee[.]; 50 3. [A] a member or the executive director of the agriculture and New 51 York state horse breeding development fund to be nominated by such 52 fund[.]; 53 4. [A] a member or the executive director of the New York state 54 thoroughbred breeding and development fund to be nominated by such 55 fund[.]; andA. 9749 98 1 5. [Other] other bona fide residents of the state who have a cogent 2 interest in the racing and breeding industry in the state of which at 3 least five [will] shall be New York breeders, owners, trainers or veter- 4 inarians in equine practice. 5 The committee as so constituted pursuant to rules and regulations of 6 the [state racing and wagering board] commission is hereby continued, 7 and shall establish its own by-laws which will include a system for 8 electing its own officers and for perpetuating its membership, providing 9 for the terms of its members, their replacement and succession, and such 10 other administrative details as it deems necessary to effectuate the 11 purposes of this article. The [state racing and wagering board] commis- 12 sion shall review such by-laws and amendments thereto prior to their 13 implementation. 14 § 119. Section 703 of the racing, pari-mutuel wagering and breeding 15 law, subdivision 3 as added by section 1 of subpart C of part DD of 16 chapter 59 of the laws of 2019, is amended to read as follows: 17 § 703. Finances of fund. 1. Two percent of all moneys accruing respec- 18 tively to the agriculture and New York state horse breeding development 19 fund and the New York state thoroughbred breeding and development fund, 20 for the purpose of conducting equine research, shall be deposited by 21 such funds in a special interest bearing account, title to which shall 22 be in New York state veterinary college at Cornell and control over 23 which shall be in the committee subject to audit by the state comp- 24 troller. Withdrawals from such accounts shall be made only upon the 25 authorization of the committee and the signatures of two of the commit- 26 tee's members as designated by the committee. All moneys transferred by 27 such funds to special accounts pursuant to rules and regulations of the 28 [state racing and wagering board] commission, prior to the date on which 29 this article shall have become law, shall be deemed to have been depos- 30 ited as provided in this subdivision. Moneys accrued subsequently shall 31 be deposited monthly within one month of their accrual by such funds and 32 notice thereof shall be forwarded to the committee and the [state racing33and wagering board] commission. 34 2. On or before January first and July first, of each subsequent 35 calendar year, such funds shall provide to the committee and the [state36racing and wagering board] commission a certified statement of amounts 37 then deposited to the credit of the committee and a projection of funds 38 to be deposited to the credit of such committee for the subsequent [six39month] six-month period. 40 3. Upon the authorization through a resolution by the committee, the 41 fund may acquire moneys by the acceptance of conditional gifts, grants, 42 devises or bequests given in furtherance of the mission of the fund to 43 the extent that any such gift, grant, devise, or bequest is in the form 44 of cash, securities, or other form of personal property that is readily 45 convertible to cash, and only if the condition of the gift is that it be 46 used for the unrestricted purpose of equine research. The fund may not 47 accept a conditional gift, grant, devise, or bequest if the condition 48 would require the fund to undertake to acquire property, construct, 49 alter, or renovate any real property, or alter or suspend the research 50 that the fund is already conducting or supporting. All moneys accepted 51 shall be deposited into a segregated account subject to the requirements 52 and conditions of subdivision one of this section. The fund shall 53 provide notice of the acceptance of such moneys to the [gaming] commis- 54 sion. 55 § 120. Subdivisions 4 and 6 of section 704 of the racing, pari-mutuel 56 wagering and breeding law are amended to read as follows:A. 9749 99 1 4. The committee shall cause all such proposals to be transmitted 2 within five days of receipt, to the [state racing and wagering board] 3 commission. 4 6. The committee's approval, disapproval and/or recommendations with 5 regard to each proposal or its adoption of a budget shall be sent to the 6 [state racing and wagering board] commission. 7 § 121. Section 705 of the racing, pari-mutuel wagering and breeding 8 law is amended to read as follows: 9 § 705. Research grants. 1. Upon approval of a proposal by the commit- 10 tee, [it] the committee shall then enter into a contractual relationship 11 with the applicant for the research grant within the limit of the funds 12 available therefor and subject to the following limitations: 13 a. All grants so provided shall be used for the direct cost of 14 approved projects and shall not be used to supplant funds otherwise 15 available to the applicant or to the institution with which [he] the 16 applicant is affiliated, or for the general cost recoveries [which] that 17 are rightfully the prior obligation of the institution to which the 18 research grant is made. 19 b. No funds shall be expended for the acquisition, construction or 20 renovation of capital facilities without specific prior written approval 21 by the committee. 22 c. Payments shall be made upon certified vouchers submitted to the 23 committee, prepared in a format satisfactory to the committee. 24 2. Copies of grant contracts shall be furnished to the [state racing25and wagering board] commission, and each of the funds named in section 26 seven hundred three of this article. 27 § 122. Subdivision 2 of section 810 of the racing, pari-mutuel wager- 28 ing and breeding law is amended to read as follows: 29 2. Where the race meeting grounds or enclosure is situated in two 30 counties, one of which is wholly within a city, then: 31 a. If the tax is imposed by such city, the fiscal officers of such 32 city shall deposit the revenues of such taxes in a special fund and 33 shall pay to the county, not located in such city, within sixty days 34 after collection thereof, seventy-five [per centum] percent of the 35 moneys in such special fund, for deposit in the general fund of such 36 county as hereinbefore provided, less the expenses for the collection of 37 such tax, and except that the sum of five thousand dollars shall be 38 retained at all times in such special fund for the purpose of making 39 refunds or any necessary adjustments. The fiscal officers of such city 40 shall pay the balance then remaining in such special fund into the 41 general fund of such city as hereinbefore provided[;]. 42 b. If the tax is not imposed by such city, but is imposed by such 43 county, the fiscal officers of such county shall deposit the revenues of 44 such taxes in a special fund and shall pay to such city within sixty 45 days after collection thereof, twenty-five [per centum] percent of the 46 moneys in such special fund, for deposit in the general fund of such 47 city as hereinbefore provided, less the expenses for the collection of 48 such tax and except that the sum of five thousand dollars shall be 49 retained at all times in such special fund for the purpose of making 50 refunds or any necessary adjustments. The fiscal officers of such county 51 shall pay the balance remaining in such special fund into the general 52 fund of such county as hereinbefore provided. 53 § 123. Subdivision 1 and paragraphs a and c of subdivision 2 of 54 section 901 of the racing, pari-mutuel wagering and breeding law, as 55 amended by chapter 18 of the laws of 2008, are amended to read as 56 follows:A. 9749 100 1 1. Notwithstanding the provisions of subdivision two of section five 2 hundred twenty-three of this chapter, the [board] commission shall 3 authorize regional off-track betting corporations to accept additional 4 wagers on multiple betting opportunities on races conducted by any fran- 5 chised corporation. 6 A franchised corporation may elect to offer such similar additional 7 daily double and quinella wagering opportunities. If such franchised 8 corporation offers two or more quinellas, as defined herein, the 9 provisions of section five hundred twenty-three of this chapter, as 10 modified by the provisions of subdivisions one, two and three of this 11 section, with respect to combined pools shall apply with respect to such 12 wagering opportunities. At any time such a franchised corporation does 13 not offer at least two quinellas, the provisions of this subdivision 14 with respect to separate authorizations for regional corporations shall 15 remain in effect with respect to such quinella wagers. 16 At any time such franchised corporation does not offer such an addi- 17 tional daily double, the provisions of this subdivision with respect to 18 separate authorizations for regional corporations shall remain in effect 19 with respect to such an additional daily double wager. 20 Whenever regional off-track betting corporations offer wagers pursuant 21 to this subdivision that are not combined in a common pool with similar 22 on-track wagers, the provisions of subdivision eight of section five 23 hundred twenty-three of this chapter shall apply to such wagers. 24 a. In addition to the authority granted under subdivision one of this 25 section, the [board] commission shall require, under conditions subject 26 to its approval, the franchised corporation to provide direct trans- 27 missions into selected regional off-track facilities of a current "live 28 call of the race," defined as the current positions of the horses at 29 specified places on the track during the race. The track operator itself 30 may perform the broadcast; or, provide appropriate space and facilities 31 to enable a single, alternative broadcast to be performed solely for the 32 use of regional off-track betting corporations, the expense of such 33 alternative broadcast to be borne by such regional corporations, at the 34 discretion of such regional corporations. In either case, all incre- 35 mental transmission costs are to be borne by such regional corporations. 36 c. The [board] commission shall approve the request of each such 37 regional off-track betting corporation to transmit the call of the race, 38 beginning January first, nineteen hundred seventy-nine, into an addi- 39 tional, like number of facilities as specified in paragraph b of this 40 subdivision and subject to the conditions in such paragraph. Provided, 41 however, that nothing shall prohibit such franchised corporation from 42 entering into agreements with such regional off-track betting corpo- 43 rations designating additional facilities within the regions of such 44 regional off-track betting corporations that may offer a "live call of 45 the race", except that no such transmissions are authorized into the 46 portion of the Western and Catskill regions in the thoroughbred special 47 betting district on those days that a thoroughbred track is conducting 48 racing in such special betting district. 49 § 124. Subdivision 1 of section 902 of the racing, pari-mutuel wager- 50 ing and breeding law, as amended by section 2 of part JJ of chapter 59 51 of the laws of 2019, is amended to read as follows: 52 1. In order to assure the public's confidence and continue the high 53 degree of integrity in racing at the pari-mutuel betting tracks, equine 54 drug testing at race meetings shall be conducted by a state college or 55 at a land grant university within this state. The [gaming] commission 56 shall promulgate any rules and regulations necessary to implement theA. 9749 101 1 provisions of this section, including administrative penalties of loss 2 of purse money, fines, or denial, suspension or revocation of a license 3 for racing drugged horses. 4 § 125. Section 903 of the racing, pari-mutuel wagering and breeding 5 law, as amended by chapter 18 of the laws of 2008, is amended to read as 6 follows: 7 § 903. Simulcasting rights; Breeders' Cup Ltd. Notwithstanding any 8 inconsistent provision of this chapter and upon the approval of the 9 [board] commission, a franchised corporation is authorized to enter into 10 an agreement with the Breeders' Cup Ltd. for the disposition of all 11 revenues derived by such franchised corporation from and limited to the 12 live transmission of the audio/visual signals of and from pari-mutuel 13 wagering on races run by such franchised corporation to be known as the 14 "Breeders' Cup Event Day", in such manner as such franchised corporation 15 shall determine. 16 § 126. Paragraphs a, b, c and e of subdivision 1 and subdivisions 2 17 and 2-a of section 904 of the racing, pari-mutuel wagering and breeding 18 law, as amended by chapter 18 of the laws of 2008, paragraph a of subdi- 19 vision 1 as amended by section 5 of part BB of chapter 60 of the laws of 20 2016, are amended to read as follows: 21 a. The applicable state tax provided for in paragraphs a and b of 22 subdivision one of section five hundred twenty-seven of this chapter 23 shall be one-half percent for regular, multiple and exotic bets. Any 24 harness racing or association or corporation, or thoroughbred racing 25 corporation authorized pursuant to this section shall pay to the 26 [gaming] commission as a regulatory fee, which fee is hereby levied, 27 six-tenths of one percent of the total daily pari-mutuel pools. 28 b. The system of on and off-track betting shall result in the combina- 29 tion of all off-track wagers with on-track wagers so as to produce 30 common pari-mutuel betting pools. Provided, however, that the [board] 31 commission may authorize separate pari-mutuel wagering pools for any 32 corporation or association electing to accept such wagers, if [it] the 33 commission determines that a common on and off-track pari-mutuel betting 34 pool, due to limitations in existing computer systems and information 35 transmission and receiving capacities cannot practically be accomplished 36 so as to maximize a reasonable number of separate wagering interests. 37 The resulting separate pools for regional off-track betting corporations 38 shall be subject to the limitations set forth in subdivision eight of 39 section five hundred twenty-three of this chapter. 40 c. Every association and corporation shall distribute all sums depos- 41 ited in any pari-mutuel pool to the holders of winning tickets therein, 42 providing such tickets be presented for payment before April first of 43 the year following the year of their purchase, less an amount [which] 44 that it shall retain at the same rate established by the sending track 45 plus the breaks. 46 e. For any corporation licensed pursuant to article two of this chap- 47 ter,[,] the applicable state tax shall be one percent of all wagers, the 48 amount payable to the thoroughbred breeding and development fund shall 49 be one-half of one percent and distribution to purses shall be fifty 50 percent of the amount retained by the track after all statutory and 51 contracted payments are made. No additional amounts may be withheld as 52 provided in section two hundred thirty-seven of this chapter. 53 2. The [state racing and wagering board] commission shall approve an 54 application from any racing corporation or association pursuant to 55 subdivision one of this section to accept on-track wagers and display 56 the simulcast of the Kentucky Derby or the Preakness provided, however,A. 9749 102 1 that no application shall be approved by the board that it determines 2 may cause a reduction of the total number of racing events normally 3 conducted at the track on a daily basis. 4 2-a. The [state racing and wagering board] commission shall approve an 5 application from any racing corporation or association pursuant to 6 subdivision one of this section to accept on-track wagers on the Breed- 7 ers' Cup races, and, in instances where the application contemplates the 8 on-track display of simulcasts of and wagering on the entire card of 9 Breeders' Cup races, the [board] commission shall authorize, for that 10 day, a reduction of the total number of racing events normally conducted 11 at the track on a daily basis provided that the total number of live 12 racing events conducted at the track shall not be less than two. 13 § 127. Subdivision 1, paragraphs a, b, c and e of subdivision 2 and 14 subdivision 3 of section 905 of the racing, pari-mutuel wagering and 15 breeding law, as amended by chapter 346 of the laws of 1990, subdivision 16 3 as amended by chapter 62 of the laws of 2003, and such section as 17 renumbered by chapter 18 of the laws of 2008, are amended to read as 18 follows: 19 1. The combination of New York wagers with wagers of the same type 20 made in other states or foreign countries is hereby authorized pursuant 21 to rules and regulations of the [state racing and wagering board] 22 commission so as to produce a common pari-mutuel pool for the calcu- 23 lation of odds and the determination of pay-outs from such pool, which 24 payout shall be, as far as may be consistent herewith, the same for all 25 winning bets of such type irrespective of whether a wager is placed in 26 this state or in another state or foreign country. 27 a. The [board] commission may authorize the combination of out-of- 28 state or foreign wagers on horse races in New York state with the same 29 type of wagers made in New York state at the site of the statewide 30 interface designated by the [board] commission for the combination of 31 on-track and off-track wagers made in New York state. 32 b. In this regard the [board] commission shall enact rules and regu- 33 lations including but not limited to insuring the following standards: 34 that the out-of-state or foreign wagering operator is duly authorized to 35 conduct such wagering by the laws of the applicable out-of-state or 36 foreign government and is of satisfactory ethical and financial repute; 37 that all such wagers are made in a format consistent with the format for 38 such wagers in New York state as to number of betting entries and the 39 combination of such entries into coupled entries and fields; that if the 40 laws of such other state or foreign country permit, that such wagers 41 shall be subject to the identical retention and breakage rates as 42 pertain at the site of the New York interface; that if the laws of such 43 other state or foreign country prescribe a retention or breakage rate 44 different from that in New York state it would not be contrary to the 45 public interest to compute odds and payouts for such out-of-state or 46 foreign wagers consistent with such law; that if it is consistent with 47 the public interest to compute odds and payouts for such out-of-state or 48 foreign wagers according to retention or breakage rates different from 49 those in New York state, that the site of the New York interface is 50 ready and able to carry out such computations consistent with the formu- 51 las hereinafter prescribed; that [regarding] in regard to foreign 52 wagers, that for computational purposes all foreign wagers to be 53 combined [will] shall be converted into American dollars at the prevail- 54 ing exchange rates established by a money center bank on the date of the 55 race (although breakage [will] shall be computed consistent with foreign 56 currency denominations); that other than the variations caused byA. 9749 103 1 retention or breakage computations that all odds and pay-outs [will] 2 shall be computed and calculated, refunds or cancellations awarded or 3 allowed, and overpayments or underpayments corrected solely in accord- 4 ance with the applicable rules in New York state whose laws shall govern 5 all disputes pertinent thereto; that the means, methods and times of 6 transmission of wagering data necessary to the proper implementation of 7 this subdivision shall be as prescribed and approved by the [board] 8 commission; that all entities whose wagers are so combined have agreed 9 that the odds and final pay-offs [will] shall be computed in accordance 10 with the data available for computation at the site of the statewide 11 interface at the start of the race and that pay-off computations in 12 accordance therewith shall be final regardless of mistakes in trans- 13 mission or failures to transmit or receive all wagers and that the out- 14 of-state or foreign operators [will] shall be solely responsible for 15 claims asserted in that regard for wagers made through such operators; 16 that the out-of-state or foreign operator consents to be subject to 17 audit by the commissioner of taxation and finance or his or her designee 18 to verify the accuracy and completeness of all wagers required to be 19 transmitted by it hereunder; and such other rules and regulations as may 20 be deemed necessary and appropriate by the [board] commission. 21 c. If different retention or breakage rates than those prevailing at 22 the site of the New York interface are prescribed by the laws governing 23 such out-of-state or foreign betting operator, and the [board] commis- 24 sion is satisfied that it would not be contrary to the public interest 25 to accept such wagers for combination with New York wagers, calculations 26 of the current odds and final pay-off prices shall be made as follows: 27 (i) All New York state and out-of-state and foreign wagers of the same 28 type shall be combined into single pools for calculation. 29 (ii) As many tentative payout prices as there are different retention 30 and breakage rates applicable (including the prevailing New York rate) 31 shall be calculated on the basis of returning the appropriate rate of 32 return, less breaks after imposition of each such rate of retention and 33 breaks. 34 (iii) To each such out-of-state or foreign operator shall be allocated 35 an amount sufficient for it to pay the appropriate pay-off to holders of 36 winning wagers placed with it together with the applicable retention 37 amount on its total wagers. 38 (iv) To each New York operator shall be allocated an amount sufficient 39 for it to pay the appropriate pay-off to holders of winning wagers 40 placed with it together with the applicable New York retention amount on 41 its total wagers. 42 (v) The total amount of the combined pool less the combined total of 43 all allocations as determined in subparagraphs (iii) and (iv) of this 44 paragraph shall be credited to a special breakage account. The amount in 45 such account giving appropriate weight to rates established for breakage 46 shall be allocated as breaks among all operators in the combined pool in 47 accordance with the rules and regulations of the [board] commission. 48 Should a minus pool eventuate in which the total combined pool is insuf- 49 ficient to reimburse each operator for the allocation due to it then the 50 allocation due to each such operator [will] shall be reduced as may be 51 appropriate and such operator [will] shall be responsible for satisfying 52 its liability from its own operating capital. 53 e. The operator of the site of the statewide interface [will] shall be 54 responsible for the actual collection or transmittal of funds in settle- 55 ment of the liabilities of all operators participating in the combined 56 pool.A. 9749 104 1 3. Combining New York wagers on horse races conducted in other states 2 or foreign countries with wagers on such races made elsewhere. 3 a. The [board] commission may authorize the combination of wagers made 4 in New York state upon the outcome of out-of-state or foreign horse 5 races with wagers made upon such races elsewhere in accordance with 6 rules and regulations of the [board] commission which shall include but 7 not be limited to the following provisions: 8 (i) that if such combination is authorized that all New York state 9 operators must participate therein to assure uniform New York odds and 10 pay-outs; 11 (ii) that if the out-of-state or foreign computation is made on the 12 basis of different retention or breakage rates and (A) such out-of-state 13 or foreign laws do not permit New York wagers to be computed in accord- 14 ance with New York retention and breakage rates, that such variation 15 does not exceed twenty percent and [will] shall be allocated pro rata 16 among winning wagers in New York state and recipients of such retention 17 and breakage rates in New York state, or (B) if such out-of-state or 18 foreign laws do permit New York bets to be computed in accordance with 19 New York retention and breakage rates that such rates [will] shall be 20 applied and that the out-of-state or foreign operator doing such calcu- 21 lations is willing and able to properly perform such function; 22 (iii) that the out-of-state or foreign rules governing such wagers are 23 understandable to New York wagerers and in the best judgment of the 24 [board will] commission shall not deviate substantially from customary 25 and standard pari-mutuel practice in general; 26 (iv) that the New York operators are able to perform such transmission 27 and computer retrieval functions as may be required; 28 (v) that such combination will enhance the best interest of racing 29 generally; and 30 (vi) such other rules and regulations as may be deemed necessary and 31 appropriate by the [board] commission. 32 b. Nothing herein shall be construed to authorize or prescribe any act 33 contrary to federal law. 34 § 128. Paragraph (b) of subdivision 2 of section 906 of the racing, 35 pari-mutuel wagering and breeding law, as added by chapter 2 of the laws 36 of 1995 and such section as renumbered by chapter 18 of the laws of 37 2008, is amended to read as follows: 38 (b) The [board] commission shall approve the rules and the payment of 39 prizes of a handicapping tournament. No operator of a handicapping tour- 40 nament may accept an entry fee for a tournament until the [board] 41 commission has approved the rules and the payment of prizes of a handi- 42 capping tournament. 43 § 129. Section 910 of the racing, pari-mutuel wagering and breeding 44 law, as added by chapter 535 of the laws of 2007 and renumbered by chap- 45 ter 18 of the laws of 2008, is amended to read as follows: 46 § 910. Reciprocity of licenses. All license denials, suspensions and 47 revocations imposed by the pertinent racing and gambling authorities of 48 other jurisdictions, including states, United States territories, and 49 Canadian provinces shall be recognized and enforced by the [board] 50 commission unless application is made for a hearing at which time the 51 applicant may show cause as to why such penalty should not be enforced 52 against the applicant in this state. If a hearing is granted, the 53 [board] commission may delay the imposition of the suspension or revoca- 54 tion of the license. The [board] commission must take reasonable steps 55 to make the licensee aware of the availability of a hearing for exampleA. 9749 105 1 by listing it on the official website, in the license instructions or in 2 the racing program. 3 § 130. Section 911 of the racing, pari-mutuel wagering and breeding 4 law, as added by section 1 of part II of chapter 58 of the laws of 2012, 5 is amended to read as follows: 6 § 911. Advance deposit wagering. The [racing and wagering board] 7 commission shall study the impact of advance deposit wagering on horse 8 racing and pari-mutuel handle in New York state. The study shall include 9 but not be limited to the impact of out-of-state entities accepting 10 wagers from New York state residents, the annual dollar amount wagered 11 by New York state residents through out-of-state advance deposit wager- 12 ing accounts, the number of out-of-state advance deposit wagering 13 accounts held by New York state residents, and information concerning 14 New York state residents who utilize out-of-state advance deposit wager- 15 ing accounts, including, but not limited to, residency. The [racing and16wagering board] commission shall submit the study, together with any 17 recommendations, to the governor and legislature no later than September 18 fifteenth, two thousand twelve. 19 § 131. The fifth undesignated paragraph of section 1000 of the racing, 20 pari-mutuel wagering and breeding law, as added by chapter 363 of the 21 laws of 1984, is amended to read as follows: 22 Accordingly, the legislature hereby authorizes experimentation with 23 the telecasts of horse races, on which pari-mutuel wagering shall be 24 permitted, under the regulation of the [state racing and wagering board] 25 commission in the manner and subject to the conditions provided in this 26 article. 27 § 132. The opening paragraph and subdivisions h, i, j, k, l, m, n, o, 28 p, q, r, s and t of section 1001 of the racing, pari-mutuel wagering and 29 breeding law, as amended by chapter 174 of the laws of 2013, are amended 30 to read as follows: 31 As used in this article, in addition to the definitions set forth in 32 section one hundred one of this chapter, the following terms shall have 33 the following meanings: 34 h. ["Commission" means the state gaming commission;35i.] "Branch office" means an establishment maintained and operated by 36 an off-track betting corporation, where off-track pari-mutuel betting on 37 horse races may be placed in accordance with the terms and conditions of 38 this chapter and rules and regulations issued pursuant thereto; 39 [j.] i. "Simulcast facility" means those facilities within the state 40 that are authorized pursuant to the provisions of this article to 41 display simulcasts for pari-mutuel wagering purposes; 42 [k.] j. "Off-track betting region" means those regions as defined in 43 section five hundred nineteen of this chapter; 44 [l.] k. "Simulcast theater" means a simulcast facility [which] that is 45 also a public entertainment and wagering facility, [and] which may 46 include any or all of the following: a [large screen] large-screen tele- 47 vision projection and display unit, a display system for odds, pools, 48 and payout prices, areas for viewing and seating, a food and beverage 49 facility, and any other convenience currently provided at racetracks and 50 not inconsistent with local zoning ordinances; 51 [m.] l. "Simulcast districts" means one or more of the following named 52 districts [comprised of] comprising the counties within which pari-mutu- 53 el racing events are conducted as follows: 54 District 1 New York City, Suffolk, Nassau, and 55 Westchester counties 56 District 2 Sullivan countyA. 9749 106 1 District 3 Saratoga county 2 District 4 Oneida county 3 District 5 Erie, Genesee and Ontario counties 4 [n.] m. "Initial out-of-state thoroughbred track" means the track 5 commencing full-card simulcasting to New York prior to any other out-of- 6 state thoroughbred track after 1:00 PM on any calendar day. 7 [o.] n. "Second out-of-state thoroughbred track" means the track (or 8 subsequent track or tracks where otherwise authorized by this article) 9 conducting full-card simulcasting to New York after the race program 10 from the initial out-of-state thoroughbred track that has commenced 11 simulcasting on any calendar day. 12 [p.] o. "Mixed meeting" means a race meeting [which] that has a combi- 13 nation of thoroughbred, quarter horse, Appaloosa, paint, and/or Arabian 14 racing on the same race program. 15 [q.] p. "Account wagering" means a form of pari-mutuel wagering in 16 which a person establishes an account with an account wagering licensee 17 and subsequently communicates via telephone or other electronic media to 18 the account wagering licensee wagering instructions concerning the funds 19 in such person's account and wagers to be placed on the account owner's 20 behalf. 21 [r.] q. "Account wagering licensee" means racing associations, and 22 corporations; franchised corporations, off-track betting corporations, 23 and [commission approved] commission-approved multi-jurisdictional 24 account wagering providers that have been authorized by the commission 25 to offer account wagering. 26 [s.] r. "Dormant account" means an account wagering account held by an 27 account wagering licensee in which there has been no wagering activity 28 for three years. 29 [t.] s. "Multi-jurisdictional account wagering provider" means a busi- 30 ness entity domiciled in a jurisdiction, other than the state of New 31 York, that does not operate either a simulcast facility that is open to 32 the public within the state of New York or a licensed or franchised 33 racetrack within the state, but which is licensed by such other juris- 34 diction to offer pari-mutuel account wagering on races such provider 35 simulcasts and other races it offers in its wagering menu to persons 36 located in or out of the jurisdiction issuing such license. 37 § 133. Subdivision 2 of section 1002 of the racing, pari-mutuel wager- 38 ing and breeding law, as amended by chapter 174 of the laws of 2013, is 39 amended to read as follows: 40 2. The commission shall annually submit reports on or before July 41 first following each year in which simulcasting and account wagering is 42 conducted to the director of the budget, the [chairman] chair of the 43 senate finance committee and the [chairman] chair of the assembly ways 44 and means committee evaluating the results of such simulcasts and 45 account wagering on the compatibility with the well-being of the horse 46 racing, breeding and pari-mutuel wagering industries in this state and 47 make any recommendations [it] the commission deems appropriate. Such 48 reports may be submitted together with the reports required by subdivi- 49 sion two of section two hundred thirty-six and subparagraph (iii) of 50 paragraph a and subparagraph (i) of paragraph b of subdivision one of 51 section three hundred eighteen of this chapter. 52 § 134. Paragraph (b) of subdivision 1 and the opening paragraph of 53 subdivision 2 of section 1003 of the racing, pari-mutuel wagering and 54 breeding law, as amended by chapter 174 of the laws of 2013, are amended 55 to read as follows:A. 9749 107 1 (b) Any agreement authorizing in-home simulcasting pursuant to this 2 section shall be in writing, and upon written request, a copy shall be 3 provided to the representative horsemen's group of the racing associ- 4 ation or corporation that is party to said agreement. Such agreement 5 shall include a categorical statement of new and incremental expenses 6 directly related and attributable to the conduct of in-home simulcast- 7 ing. The representative horsemen's group may, within thirty days of 8 receiving the agreement, petition the [board] commission for a determi- 9 nation as to the appropriateness and reasonableness of any expenses 10 attributed by either the racing association or corporation or the off- 11 track betting corporation. 12 Before [it] the commission may grant such license, the commission 13 shall review and approve a plan of operation submitted by such applicant 14 including, but not limited to the following information: 15 § 135. Section 1004 of the racing, pari-mutuel wagering and breeding 16 law, as added by chapter 363 of the laws of 1984, is amended to read as 17 follows: 18 § 1004. Suspension of simulcast licenses. 1. The [board] commission 19 may suspend any license authorizing the operation of a facility as a 20 simulcast facility, granted to an operator, if such operator fails to 21 conduct operations in accordance with the provisions of the plan of 22 operation, with the applicable rules of the [board] commission or with 23 the provisions of this article. 24 2. If the [board shall determine] commission determines to suspend any 25 license to operate a simulcast facility, [it] the commission shall give 26 the operator involved notice of the time and plan for a hearing before 27 the [board] commission at which the [board] commission will hear such 28 operator in reference thereto. The [board] commission 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] commission may be represented by its own counsel or by the 32 attorney general. In the conduct of such hearing the [board] commission 33 shall not be bound by technical rules of evidence, but all evidence 34 offered before the [board] commission shall be reduced to writing, and 35 such evidence together with the exhibits, if any, and the findings of 36 the [board] commission shall be permanently preserved and shall consti- 37 tute the record of the [board] commission in such case. The [board] 38 commission may by order, if occasion shall require, refer to one or more 39 of its members or officers the duty of taking testimony in such matter 40 and to report thereon to the [board] commission, but no determination 41 shall be made thereon except by the [board] commission. Within thirty 42 days after such hearing, the [board] commission shall make a final 43 determination. If [it] the commission determines that such license be 44 suspended, [it] the commission shall make an order accordingly, and 45 shall cause such order to be entered on its minutes and a copy thereof 46 served on such operator. The action of the [board] commission in 47 suspending such license shall be reviewable in the supreme court in the 48 manner provided by the provisions of article seventy-eight of the civil 49 practice law and rules. 50 3. The [board] commission may immediately suspend any license to oper- 51 ate a simulcast facility for a reason set forth in subdivision one of 52 this section as of the delivery to the affected operator of the notice 53 of hearing required by subdivision two of this section pending final 54 determination of the [board] commission following the hearing. Such 55 emergency suspension shall be followed by a hearing as provided in 56 subdivision two of this section within twenty days following suspension.A. 9749 108 1 § 136. Section 1005 of the racing, pari-mutuel wagering and breeding 2 law, as amended by chapter 240 of the laws of 2010, is amended to read 3 as follows: 4 § 1005. Power of the [board] commission to impose fines and penalties. 5 In addition to its power to suspend or revoke licenses granted by it, 6 the [state racing and wagering board] commission is hereby authorized 7 and empowered to impose monetary fines upon any corporation, association 8 or person participating in any way in simulcasts on which pari-mutuel 9 betting is conducted, other than as a patron, and whether licensed by 10 the [board] commission or not, for a violation of any provision of this 11 chapter or the rules promulgated by the [board] commission pursuant 12 thereto, not exceeding [twenty-five thousand dollars for each violation] 13 the amounts set forth in section one hundred sixteen of this chapter. 14 The [board] commission is further authorized and empowered to impose 15 monetary fines, not exceeding [twenty-five thousand dollars for each16violation] the amounts set forth in section one hundred sixteen of this 17 chapter, upon any such corporation, association or person for a 18 violation of any order issued by the [board] commission pursuant to the 19 provisions of this chapter or the rules promulgated by the [board] 20 commission pursuant thereto, provided that a copy of such order shall 21 have been served, either personally or by registered mail, upon the 22 corporation, association or person to whom the same was directed, prior 23 to the occurrence of the violation for which such fine is imposed. Such 24 fines shall be paid into the state treasury. The action of the board in 25 imposing any monetary fine shall be reviewable in the supreme court in 26 the manner provided by and subject to the provisions of article seven- 27 ty-eight of the civil practice law and rules. 28 § 137. Section 1006 of the racing, pari-mutuel wagering and breeding 29 law, as added by chapter 363 of the laws of 1984, is amended to read as 30 follows: 31 § 1006. Refunds. 1. Moneys received by the [board] commission pursuant 32 to this article may be refunded to the party for whose account the same 33 were received on proof satisfactory to the [board] commission that: 34 a. [Such] such moneys were in excess of the amount required by law; 35 b. [The] the license for which application was made has been refused 36 by the [board] commission; 37 c. [Such] such moneys were received as a fine and the [board] commis- 38 sion has after review reduced or remitted the amount of such fine; or 39 d. [Upon] upon appeal, the court reduced or remitted the fine imposed. 40 2. Such refunds shall, upon approval by the [board] commission and 41 after audit by the comptroller, be paid from any moneys received pursu- 42 ant to this article. 43 § 138. Subdivisions 1, 3 and 3-a and paragraph a of subdivision 5 of 44 section 1007 of the racing, pari-mutuel wagering and breeding law, 45 subdivision 1 as added by chapter 363 of the laws of 1984, the opening 46 paragraph of subdivision 1 as amended by chapter 18 of the laws of 2008, 47 paragraph b of subdivision 1 as amended by chapter 116 of the laws of 48 2001, subdivision 3 as amended by chapter 286 of the laws of 1985, para- 49 graph a of subdivision 3 as amended by chapter 281 of the laws of 1994, 50 paragraph b of subdivision 3 as amended by chapter 287 of the laws of 51 1985, paragraph d of subdivision 3 as amended by section 6 of part E of 52 chapter 56 of the laws of 1998, subparagraph (iii) of paragraph d of 53 subdivision 3 as amended by section 2 of part HH of chapter 59 of the 54 laws of 2019, paragraph e of subdivision 3 as added by chapter 286 of 55 the laws of 1985 and as relettered by chapter 346 of the laws of 1990, 56 paragraph f of subdivision 3 as added by chapter 503 of the laws of 1989A. 9749 109 1 and as relettered by chapter 346 of the laws of 1990, paragraph g of 2 subdivision 3 as amended by section 6 of part BB of chapter 60 of the 3 laws of 2016, subdivision 3-a as added by chapter 488 of the laws of 4 1988, and paragraph a of subdivision 5 as amended by chapter 35 of the 5 laws of 1993, are amended to read as follows: 6 1. The [board] commission may authorize and approve one or more appli- 7 cations for a license by any harness racing association or corporation, 8 or thoroughbred racing corporation as provided in section one thousand 9 three of this article to provide for the simulcast of horse races for 10 wagering purposes from a track operated by any association or corpo- 11 ration [which is conducting] that conducts a pari-mutuel race meeting 12 under this chapter to a receiving track operated by any association or 13 corporation applying for such license except it shall not be applicable 14 when a [throughbred] thoroughbred track in zone two [is simulcasting] 15 simulcasts to a thoroughbred track in zone one, provided, however, that 16 no application shall be approved by the [board] commission: 17 a. [That it] that the commission determines may cause any reduction of 18 the total number of racing events conducted on an annual or daily basis 19 at the receiving track; and 20 b. [Without] without a written agreement between the receiving track 21 or corporation applying for such license and the sending track and a 22 letter of consent to such agreement from any racing association or 23 corporation [which] that operates another track within the simulcast 24 district in which the receiving track is located, and is conducting a 25 race meeting during the period for which simulcasting is proposed; 26 provided, however, that such consent shall not be withheld if the 27 receiving track is more than thirty miles from such other track. Such 28 period shall be defined as a twenty-four hour day from midnight to 29 midnight. For those tracks located in the city of New York or the county 30 of Westchester or Nassau, such period shall be limited to the same time 31 of day defined as afternoon against afternoon and evening against even- 32 ing. 33 3. Notwithstanding any inconsistent provisions of this chapter, the 34 sums retained by any receiving track from the total deposits in pools 35 wagered on simulcast racing events as provided in subdivision one of 36 this section shall be equal to the retained percentages applicable to 37 the sending track. 38 a. Of the sums retained by the receiving track from simulcast pools 39 the pari-mutuel tax shall be levied at the lower of the pari-mutuel tax 40 rate in effect on December thirty-first, nineteen hundred ninety-three 41 at the receiving track, plus ten [per centum] percent of the breaks or 42 the following rates: two percent of simulcast pools generated by regular 43 wagers, two and one-half percent of simulcast pools generated by multi- 44 ple wagers, and seven percent of simulcast pools generated by exotic and 45 super exotic wagers, plus ten [per centum] percent of the breaks. 46 b. Of the sums retained by the receiving track as provided in this 47 subdivision, [an amount equal to six-tenths of one per centum and, after48April first, nineteen hundred eighty-six,] an amount equal to one [per49centum] percent of daily pools derived from bets on simulcasts of 50 harness races shall be paid to the agriculture and New York state breed- 51 ing and development fund, and an amount equal to one-half of one [per52centum] percent of daily pools derived from bets on simulcasts of 53 running races shall be paid to the New York state thoroughbred breeding 54 and development fund.A. 9749 110 1 c. Of the sums retained by the receiving track as provided in this 2 subdivision, an amount as determined through agreement between the send- 3 ing and receiving tracks shall be distributed to the sending track. 4 d. (i) Of the sums retained by a receiving track located in Westches- 5 ter County, two and one-half [per centum] percent of total pools shall 6 be used exclusively for increasing purses to be awarded at races 7 conducted by such receiving track. 8 (ii) Of the sums retained by other receiving tracks while such tracks 9 are conducting a race meeting, fifty [per centum] percent of the net 10 amounts remaining after payments required in this section and fifty [per11centum] percent of the net amounts derived from all simulcasting author- 12 ized by chapter two hundred eighty-one of the laws of nineteen hundred 13 ninety-four and other such direct expenses as [is] are necessary to 14 provide the [track to track] track-to-track program but excluding charg- 15 es for depreciation, administration overhead expenses, taxes not direct- 16 ly related to such program and management fees shall be used exclusively 17 for increasing purses awarded at races conducted by such receiving 18 track. Nothing in this section shall preclude the right of a horsemen's 19 organization representing owners and trainers at the receiving track 20 from entering into an agreement with such receiving track to provide for 21 an audit or other such verification of such net amounts available for 22 purses. 23 (iii) Of the sums retained by a receiving track located in Westchester 24 county on races received from a franchised corporation, for the period 25 commencing January first, two thousand eight and continuing through June 26 thirtieth, two thousand twenty, the amount used exclusively for purses 27 to be awarded at races conducted by such receiving track shall be 28 computed as follows: of the sums so retained, two and one-half percent 29 of the total pools. Such amount shall be increased or decreased in the 30 amount of fifty percent of the difference in total commissions deter- 31 mined by comparing the total commissions available after July twenty- 32 first, nineteen hundred ninety-five to the total commissions that would 33 have been available to such track prior to July twenty-first, nineteen 34 hundred ninety-five. 35 e. If an admission fee is charged at a receiving track, such fee shall 36 be subject to state and local admission taxes at the rate applicable to 37 the receiving track pursuant to this chapter. 38 f. The payment of the state tax imposed by this section shall be made 39 to the commissioner of taxation and finance at such regular intervals as 40 the commissioner of taxation and finance may require, and shall be 41 accompanied by a report, under oath, [which] that sets forth such infor- 42 mation as the commissioner of taxation and finance may require. A penal- 43 ty of five [per centum] percent and interest at the rate of one [per44centum] percent per month from the date the report is required to be 45 filed to the date of payment of the tax shall be payable in case any tax 46 imposed by this section is not paid when due. If the commissioner of 47 taxation and finance determines that any moneys received under this 48 paragraph were paid in error, such commissioner may cause the same to be 49 refunded without interest out of any moneys collected thereunder, 50 provided an application therefor is filed with [the] such commissioner 51 within one year from the time the erroneous payment was made. Such 52 taxes, interest and penalties when collected, after the deduction of 53 refunds of taxes erroneously paid, shall be paid by the commissioner of 54 taxation and finance into the general fund of the state treasury. 55 g. Any harness racing or association or corporation, or thoroughbred 56 racing corporation authorized pursuant to this section shall pay to theA. 9749 111 1 [gaming] commission as a regulatory fee, which fee is hereby levied, 2 six-tenths of one percent of the total daily pari-mutuel pools. 3 3-a. Notwithstanding any inconsistent provision of this chapter, of 4 the sums received by a sending track, a portion shall be distributed to 5 purses in accordance with a written agreement between the racing associ- 6 ation or corporation operating such track and the horsemen's organiza- 7 tion representing owners and trainers at such track, as determined by 8 the [board] commission. In the absence of such an agreement, fifty [per9centum] percent of the sums received by a sending track shall be 10 distributed to purses. 11 a. that is conducting a race meeting of the same type of racing during 12 the same time that racing is being conducted at the sending track, 13 provided, however, that the [board] commission may establish conditions 14 to authorize the acceptance of wagers of a sending track during a race 15 meeting of the same type of racing as special events in the best inter- 16 ests of racing or as other events that the [board] commission determines 17 to be in the best interests of racing provided, however, that the 18 conduct of such other events shall be subject to an agreement between 19 the receiving track and the horsemen's organization representing owners 20 and trainers at such track; 21 § 139. Subdivision 1, paragraph c of subdivision 2, paragraph b of 22 subdivision 3 and subdivisions 4 and 5 of section 1008 of the racing, 23 pari-mutuel wagering and breeding law, subdivision 1 and paragraph c of 24 subdivision 2 as amended by chapter 18 of the laws of 2008, paragraph b 25 of subdivision 3 as amended by section 7 of part BB of chapter 60 of the 26 laws of 2016, subdivision 4 as amended and subdivision 5 as added by 27 chapter 346 of the laws of 1990 and paragraph a of subdivision 4 as 28 amended by chapter 445 of the laws of 1997, are amended to read as 29 follows: 30 1. The [board] commission may in accordance with the provisions of 31 section one thousand three of this article and section five hundred 32 twenty-three of this chapter authorize and approve an application for 33 licenses submitted by any off-track betting corporation to display the 34 simulcasts of racing from any thoroughbred or harness racing association 35 or corporation located in the state. 36 c. (i) Except as provided in section one thousand thirteen of this 37 [chapter] article, if such sending track is not a thoroughbred track in 38 the Catskill region conducting a mixed meeting, letters of consent to 39 such agreement by the regional track or tracks conducting a meeting or 40 meetings of the same type of racing during the period for which simul- 41 casting is proposed. For purposes of this article, a track first 42 licensed to conduct pari-mutuel racing after January first, nineteen 43 hundred eighty-five, shall not be considered a regional track for 44 purposes of applicable letters of consent as required in this section 45 and section one thousand nine of this [chapter] article. Such period 46 shall be defined as a twenty-four hour day from midnight to midnight. 47 For those tracks located in the city of New York or the counties of 48 Westchester or Nassau, such period shall be limited to the same time of 49 day, defined as afternoon against afternoon, twilight against twilight 50 and evening against evening, the hours for which shall be as further 51 specified by the [board] commission. 52 (ii) For any simulcasting facility located within an area of a circle 53 whose radius is forty miles, the center of which shall be measured from 54 a regional track, and as provided in section one thousand thirteen of 55 this [chapter] article, the [board] commission shall not approve such 56 application unless such regional track, as described in subparagraph (i)A. 9749 112 1 of this paragraph, has given its written authorization, provided howev- 2 er, that between thirty-one and forty miles such approval shall not be 3 unreasonably withheld. Such approval shall not be required if the simul- 4 casting facility is located without the forty mile radius or if the 5 sending track is a thoroughbred track in the Catskill region conducting 6 a mixed meeting. Such written authorization shall not be required nor 7 shall the provisions of section five hundred twenty-three of this chap- 8 ter apply to those races that such regional track may elect to receive 9 as a simulcast race during its regularly scheduled race meeting. 10 b. Of the sums received by the sending track, fifty percent shall be 11 distributed to purses in addition to moneys distributed pursuant to 12 section five hundred twenty-seven of this chapter. The off-track betting 13 corporation shall pay to the [gaming] commission as a regulatory fee, 14 which fee is hereby levied, six-tenths of one percent of the total daily 15 pools. 16 4. a. Notwithstanding any other provision of law to the contrary, the 17 [board] commission may authorize a regional off-track betting corpo- 18 ration to amend its plan of operation to provide for the sale of food 19 and non-alcoholic beverages within its simulcasting facilities. For such 20 facilities when facilities of a hotel or restaurant as defined in 21 section three of the alcoholic beverage control law are [utilized] used, 22 and table service for at least twenty-four persons is provided, the 23 [board] commission may, in its discretion, authorize a regional off- 24 track betting corporation to amend its plan of operation to provide for 25 the sale of beer, wine and liquor, in accordance with all applicable 26 state and local licensing requirements. The [board] commission shall 27 promulgate rules and regulations to carry out the provisions of this 28 subdivision with the intent that such sale of food, alcoholic and non- 29 alcoholic beverages shall be in accordance with appropriate health and 30 sanitary codes, and shall not include sales on credit except such sales 31 [utilizing] using a [third party] third-party credit card. With respect 32 to the sale of beer, wine and liquor, said rules and regulations shall 33 provide requirements for seating capacity and the minimum number of 34 tables, which in no event shall be less than six. 35 b. (i) Regional off-track betting corporations shall have the option 36 of charging an admission fee to simulcasting facilities authorized to 37 sell food, alcoholic or non-alcoholic beverages pursuant to paragraph a 38 of this subdivision. The amount of such fee shall be subject to the 39 approval of the [board] commission. 40 (ii) Such fee shall be subject to a state admission tax imposed at the 41 rate of four [per centum] percent of the admission fee. The tax shall be 42 administered by the commissioner of taxation and finance and the 43 provisions of section three hundred six of this chapter relating to the 44 administration and collection of the tax imposed by such section shall 45 apply to the tax imposed by this subparagraph, in the same manner and 46 with the same force and effect as if the language of such provisions had 47 been incorporated in full into this subparagraph and expressly referred 48 to the tax imposed by this subparagraph, except to the extent that any 49 such provision is either inconsistent with a provision of this subpara- 50 graph or is not relevant to this subparagraph. 51 (iii) Any county (except a county wholly within a city) or city, or 52 both, in which such simulcasting facility is located, is hereby author- 53 ized and empowered to adopt and amend local laws imposing a tax on such 54 admission fee at a rate not to exceed fifteen [per centum] percent of 55 the admission fee. The provisions of article eight of this chapter 56 relating to the administration and collection of the taxes authorized toA. 9749 113 1 be imposed by such article (including the provisions relating to judi- 2 cial review) shall apply to a tax imposed pursuant to the authority of 3 this subparagraph, in the same manner and with the same force and effect 4 as if the language of such provisions had been incorporated in full into 5 this subparagraph and expressly referred to a tax authorized to be 6 imposed pursuant to this subparagraph, except to the extent that any 7 such provision is either inconsistent with a provision of this subpara- 8 graph or is not relevant to this subparagraph. 9 5. a. As a condition to receiving simulcasts in any branch office from 10 any sending track a regional off-track betting corporation located in a 11 city with a population of one million shall simulcast the thoroughbred 12 and quarter horse races of a thoroughbred track located in the Catskill 13 region conducting a mixed meeting in all such branches that will [be14receiving] receive the simulcasts of any other thoroughbred or harness 15 horse races on any day that such thoroughbred track in the Catskill 16 region may be conducting a mixed meeting and offers such simulcasts of 17 its races to such corporation, provided, however, that the costs associ- 18 ated with the transmission and receipt of the simulcast signal of such 19 thoroughbred track located in the Catskill region shall be borne by such 20 track. 21 b. Any branch office that receives such simulcast signal for forty- 22 five days may cease receiving such signal if the off-track betting oper- 23 ator justifies to the [board] commission that the opening of such branch 24 office has sustained economic loss during such forty-five day period. 25 Provided, however, the track and off-track betting operator may waiver 26 this provision by contract. 27 § 140. Subdivisions 1, 2, 2-a, paragraph b of subdivision 3 and subdi- 28 visions 4, 4-a, 5 and 6 of section 1009 of the racing, pari-mutuel 29 wagering and breeding law, as added by chapter 363 of the laws of 1984, 30 subdivisions 1, 2, 5 and paragraph b of subdivision 3 as amended by 31 chapter 18 of the laws of 2008, subdivision 2-a as added by chapter 286 32 of the laws of 1985, paragraph (a) of subdivision 2-a as amended by 33 chapter 626 of the laws of 1986, paragraph (c) of subdivision 2-a as 34 added by section 2 of part GG of chapter 59 of the laws of 2019, para- 35 graph a of subdivision 4 as amended by section 3 of part OO of chapter 36 59 of the laws of 2006, paragraph b of subdivision 4 as amended by chap- 37 ter 261 and subdivision 4-a as added by chapter 488 of the laws of 1988, 38 paragraph c of subdivision 4 as added by chapter 503 of the laws of 39 1989, paragraph d of subdivision 4 as amended by section 8 of part BB of 40 chapter 60 of the laws of 2016, are amended to read as follows: 41 1. The [board] commission may authorize and approve eight licenses, 42 except that any approval of a license for a franchised corporation shall 43 not decrease the number of licenses available, as of July first, nine- 44 teen hundred ninety to any other eligible operator under subdivision two 45 of this section, for the operation of simulcast theaters as defined in 46 section one thousand one of this article. One such license shall only be 47 approved for the regional off-track betting corporation defined by para- 48 graph b of subdivision one of section five hundred nineteen of this 49 chapter. 50 2. Such a simulcast theater, pursuant to a license issued in accord- 51 ance with the provisions of this section and section one thousand three 52 of this article may be owned or leased, and operated, (a) by one or more 53 racing associations or corporations; (b) by the regional off-track 54 betting corporation of the region where such simulcast theater facility 55 is to be located; (c) jointly by one or more racing associations or 56 corporations and the regional off-track betting corporation of theA. 9749 114 1 region where such simulcast theater facility is to be located; or (d) by 2 a franchised corporation; provided, however, that for the purposes of 3 paragraph (a) of subdivision two-a of this section, an entity authorized 4 by paragraph (b) or (c) of this subdivision to own, lease or operate a 5 simulcast theater may, pursuant to a competitive bidding procedure 6 carried out in accordance with rules and regulations issued by the 7 [board] commission, select another person, firm or corporation to oper- 8 ate or jointly own or lease such facility and enter into a written 9 agreement with such person, firm or corporation provided that such party 10 shall be subject to the licensing requirements of the [board] 11 commission. 12 2-a. Notwithstanding the provisions of subdivision one of this 13 section, the [board] commission may authorize one or more licenses, as 14 provided in paragraphs (b) and (c) of subdivision two of this section, 15 to enter into a written agreement with another person, firm or corpo- 16 ration to jointly operate or lease such facility for the operation of 17 simulcast at entertainment theaters as special demonstration projects 18 for purposes of stimulating economic development, employment opportu- 19 nities and state and local revenues. Such demonstration projects shall 20 be licensed in accordance with all applicable laws, rules and regu- 21 lations of this article. 22 (a) In Sullivan, Greene and Ulster counties the [board] commission 23 shall determine the number of such projects to be located in privately 24 owned hotels in such counties for the exclusive use of the hotel guests. 25 (b) The [board] commission may additionally authorize one special 26 demonstration project within the city of New York. 27 (c) The [board] commission may authorize a special demonstration 28 project to be located in any facility licensed pursuant to article thir- 29 teen of this chapter in Schenectady county. Notwithstanding the 30 provisions of paragraph a of subdivision five of this section, an admis- 31 sion fee shall not be required for a demonstration project authorized in 32 this paragraph. [Provided however, on] On any day when a regional 33 harness track conducts a live race meeting, a demonstration facility 34 within that region shall predominantly display the live video of such 35 regional harness track. 36 The regional off-track betting corporations operating such demon- 37 stration facilities within New York city may elect to apply the 38 provisions of section five hundred thirty-two of this chapter in lieu of 39 any admission charges. 40 b. Letters of consent to the application from any regional track 41 [which] that is not a party to the operation of the proposed theater 42 unless such track is located more than forty miles from the proposed 43 simulcast theater; and a copy of any agreement between the applicant and 44 such corporation pursuant to which such consent has been given, subject 45 to the provision of subdivision two of section one thousand seven of 46 this article. Notwithstanding the foregoing, the Nassau region may apply 47 to locate one simulcast theater within Nassau County without a letter of 48 consent from the operator of the regional track provided the proposed 49 simulcast theater is not within fifteen miles of the closest border of 50 any racing facility operated by a franchised corporation. 51 4. Notwithstanding any inconsistent provisions of this chapter, the 52 sums retained by any associations or corporations from the total depos- 53 its in pools wagered on simulcast racing events at a simulcast theater 54 as provided in subdivision one of this section shall be equal to the 55 rates of retained percentage applicable to the sending track.A. 9749 115 1 a. Of the sums retained by the operator as provided in this subdivi- 2 sion, the pari-mutuel tax shall be levied at the following rates plus 3 twenty [per centum] percent of the breaks: from wagers on thoroughbred 4 races, eight-tenths of one [per centum] percent of pools generated from 5 regular wagers; one and three-tenths [per centum] percent of pools 6 generated from multiple wagers; two and eight-tenths [per centum] 7 percent of pools generated from exotic wagers; and three and one-half 8 [per centum] percent of pools generated from super exotic wagers; and 9 from wagers on harness races, one-half of one [per centum] percent of 10 pools generated from regular wagers; one [per centum] percent of pools 11 generated from multiple wagers; two and one-half [per centum] percent of 12 pools generated from exotic wagers and three [per centum] percent of 13 pools generated from super exotic wagers[;]. 14 b. Of the sums retained by the operator as provided in this subdivi- 15 sion, an amount equal to one [per centum] percent of daily pools derived 16 from bets on simulcasts of harness races shall be paid to the agricul- 17 ture and New York state horse breeding development fund, and an amount 18 equal to one-half of one [per centum] percent of daily pools derived 19 from bets on simulcasts of running races shall be paid to the New York 20 state thoroughbred breeding and development fund. 21 c. The payment of the state tax imposed by this section shall be made 22 to the commissioner of taxation and finance at such regular intervals as 23 the commissioner of taxation and finance may require, and shall be 24 accompanied by a report, under oath, [which] that sets forth such infor- 25 mation as the commissioner of taxation and finance may require. A penal- 26 ty of five [per centum] percent and interest at the rate of one [per27centum] percent per month from the date the report is required to be 28 filed to the date of payment of the tax shall be payable in case any tax 29 imposed by this section is not paid when due. If the commissioner of 30 taxation and finance determines that any moneys received under this 31 paragraph were paid in error, the commissioner may cause the same to be 32 refunded without interest out of any moneys collected thereunder, 33 provided an application therefor is filed with the commissioner within 34 one year from the time the erroneous payment was made. Such taxes, 35 interest and penalties when collected, after the deduction of refunds of 36 taxes erroneously paid, shall be paid by the commissioner of taxation 37 and finance into the general fund of the state treasury. 38 d. The operator shall pay to the [gaming] commission as a regulatory 39 fee, which fee is hereby levied, six-tenths of one percent of the total 40 daily pools. 41 4-a. Notwithstanding any inconsistent provision of this chapter, of 42 the sums received by a sending track, a portion shall be distributed to 43 purses in accordance with a written agreement between the racing associ- 44 ation or corporation operating such track and the horsemen's organiza- 45 tion representing owners and trainers at such track, as determined by 46 the [board] commission. In the absence of such an agreement, fifty [per47centum] percent of the sums received by a sending track shall be 48 distributed to purses. 49 5. a. An admission fee to simulcast theaters shall be charged and the 50 amount of such admission fee shall be subject to the approval of the 51 [racing and wagering board] commission. 52 b. Such admission fee shall be subject to a state admission tax 53 imposed at the rate of four [per centum] percent of the admission fee. 54 The tax shall be administered by the commissioner of taxation and 55 finance and the provisions of section three hundred six of this chapter 56 relating to the administration and collection of the tax imposed by suchA. 9749 116 1 section shall apply to the tax imposed by this paragraph, in the same 2 manner and with the same force and effect as if the language of such 3 provisions had been incorporated in full into this paragraph and had 4 expressly referred to the tax imposed by this paragraph, except to the 5 extent that any such provision is either inconsistent with a provision 6 of this paragraph or is not relevant to this paragraph. 7 c. Any county (except a county wholly within a city) or city, or both, 8 in which a simulcast theater is located, is hereby authorized and 9 empowered to adopt and amend local laws imposing a tax on such admission 10 fee at a rate not to exceed fifteen [per centum] percent of the admis- 11 sion fee. The provisions of article eight of this chapter relating to 12 the administration and collection of the taxes authorized to be imposed 13 by such article (including the provisions relating to judicial review) 14 shall apply to a tax imposed pursuant to the authority of this para- 15 graph, in the same manner and with the same force and effect as if the 16 language of such provisions had been incorporated in full into this 17 paragraph and had expressly referred to a tax authorized to be imposed 18 pursuant to this paragraph, except to the extent that any such provision 19 is either inconsistent with a provision of this paragraph or is not 20 relevant to this paragraph. 21 6. The size, location and operation of a simulcast theater shall be 22 subject to local zoning ordinances and the approval of the [racing and23wagering board] commission. 24 § 141. Subdivision 1 of section 1010 of the racing, pari-mutuel wager- 25 ing and breeding law, as amended by chapter 346 of the laws of 1990, is 26 amended to read as follows: 27 1. Plans for operation of simulcast facilities shall include provision 28 for job security for employees of racetracks and off-track betting 29 corporations within the district where the facility is located, compat- 30 ible with and in furtherance of the objectives of this article and 31 subject to the approval of the [state racing and wagering board] commis- 32 sion. Job security agreements that have been or may be concluded from 33 time to time after July first, nineteen hundred seventy-three between 34 employee organizations and the operators of simulcast facilities shall 35 be subject to the approval of the [board] commission and when approved 36 shall be deemed a part of the plan of operation of such simulcast facil- 37 ity. 38 § 142. Section 1011 of the racing, pari-mutuel wagering and breeding 39 law, as amended by chapter 18 of the laws of 2008, is amended to read as 40 follows: 41 § 1011. Certain credit to off-track betting corporations. a. During 42 the period that a franchised corporation is simulcasting from a facility 43 operated by such franchised corporation in the second zone as defined in 44 section two hundred forty-seven of this chapter to a facility operated 45 by such franchised corporation pursuant to section one thousand seven of 46 this [chapter] article, any off-track betting corporation operating in a 47 county in which such association maintains a racetrack shall receive a 48 credit of twenty-five [per centum] percent of the state taxes due pursu- 49 ant to section five hundred twenty-seven of this chapter on wagers 50 placed on races conducted by such association, provided that such corpo- 51 ration has entered into an agreement with the employee organization 52 representing the employees of such corporation in which it has agreed 53 not to reduce its workforce as a result of such simulcasting. 54 b. During the days that a franchised corporation is simulcasting from 55 a racetrack facility operated by such franchised corporation and located 56 in the first zone to a racetrack facility operated by such franchisedA. 9749 117 1 corporation located wholly within a city of one million or more, one 2 [per centum] percent of the total wagers placed at such receiving facil- 3 ity shall be paid to such city. 4 c. During the days that a franchised corporation is simulcasting from 5 a facility located wholly within a city in the first zone to a racetrack 6 facility operated by such franchised corporation located partially with- 7 in a city with a population in excess of one million and partially with- 8 in a county, one-half [per centum] percent of the total wagers placed at 9 such receiving facility shall be paid to such city and one-half [per10centum] percent of such wagers shall be paid to such county. 11 § 143. Subdivision 6 of section 1012-a of the racing, pari-mutuel 12 wagering and breeding law, as added by chapter 174 of the laws of 2013, 13 is amended to read as follows: 14 6. multi-jurisdictional account wagering providers shall pay a market 15 origin fee equal to five [per centum] percent on each wager accepted 16 from New York residents. Multi-jurisdictional account wagering providers 17 shall make the required payments to the market origin account on or 18 before the fifth business day of each month and such required payments 19 shall cover payments due for the period of the preceding calendar month; 20 provided, however, that such payments required to be made on April 21 fifteenth shall be accompanied by a report under oath, showing the total 22 of all such payments, together with such other information as the 23 commission may require. A penalty of five [per centum] percent and 24 interest at the rate of one [per centum] percent per month from the date 25 the report is required to be filed to the date the payment shall be 26 payable in case any payments required by this subdivision are not paid 27 when due. If the commission determines that any moneys received under 28 this subdivision were paid in error, the commission may cause the same 29 to be refunded without interest out of any moneys collected thereunder, 30 provided an application therefor is filed with the commission within one 31 year from the time the erroneous payment was made. The commission shall 32 pay into the racing regulation account, under the joint custody of the 33 comptroller and the commission, the total amount of the fee collected 34 pursuant to this section. 35 § 144. The opening paragraph and paragraphs (c), (d) and (j) of subdi- 36 vision 1 and subdivisions 4, 5 and 7 of section 1013 of the racing, 37 pari-mutuel wagering and breeding law, as added by chapter 346 of the 38 laws of 1990, paragraph (c) of subdivision 1 as amended by chapter 524 39 of the laws of 1991, are amended to read as follows: 40 Whenever under this article a written agreement is required to be 41 obtained from a sending regional track or tracks located within simul- 42 cast district one or two for the purpose of simulcasting, and it is 43 claimed by the applicant for such license for simulcasting that such 44 written agreement has been unreasonably refused, declined or denied, or 45 offered for consideration that is unreasonable within parameters estab- 46 lished by market conditions, geographical location or historical experi- 47 ence, the terms and conditions and consideration to be paid for such 48 proposed simulcasting shall be determined by binding arbitration in 49 accordance with the procedures set forth herein and by regulations 50 promulgated by the [board] commission. Failure to agree to such binding 51 arbitration by the sending track to simulcast within the simulcast 52 district shall be deemed as authorization for such licensee or proposed 53 licensee to enter into an agreement to receive such simulcast signal 54 from another track or tracks within this state, notwithstanding the 55 provisions of section five hundred twenty-three of this chapter.A. 9749 118 1 (c) Where the applicant for simulcasting thereafter maintains that the 2 agreement sought has been unreasonably refused or denied or that the 3 proposal of the party or parties from whom the agreement is required is 4 unreasonable or not economically feasible so as to permit the conduct of 5 simulcasting, [it] the applicant shall notify the [racing and wagering6board] commission, which, within fifteen days thereafter, shall notify 7 the track that binding arbitration procedures will be initiated. Such 8 notification shall be delivered to the track by certified mail, return 9 receipt requested. (i) The [board] commission shall arbitrate all 10 disputes arbitrable pursuant to this section unless either party 11 objects, in such event the [board] commission shall provide and desig- 12 nate to the parties a list of three or more independent arbitrators from 13 a panel of such arbitrators maintained by it, having experience in 14 dispute resolution and the economics of the pari-mutuel racing industry. 15 In order to sustain the continuity of the simulcast programs during the 16 period of such arbitration, the terms and conditions of any current or 17 pre-existing agreement shall remain in full force and effect during the 18 period of such arbitration. (ii) Within thirty days of such notifica- 19 tion, the track may refuse to enter into any such arbitration procedures 20 by notifying the [board] commission. Upon such notification, the 21 [board] commission shall authorize the applicant to enter into an agree- 22 ment to receive a simulcast signal from another track within the state, 23 notwithstanding any other provision of law to the contrary. 24 (d) The provisions for binding arbitration contained in this section 25 shall be applicable to any proposed agreement with such other regional 26 track. In the event a simulcast agreement has been refused by such other 27 regional track, notwithstanding the provisions of section five hundred 28 twenty-three of this chapter, the [board] commission shall authorize the 29 applicant to enter into an agreement to receive a simulcast signal for 30 purposes of pari-mutuel wagering from any other track within this state 31 conducting the same type of racing that was refused by the regional 32 tracks. 33 (j) The arbitrator, if not the [board] commission, shall notify the 34 [board] commission of its final award which shall be enforced by the 35 [board] commission pursuant to this chapter. 36 4. Nothing herein shall be construed to dispense with any approval 37 required for the licensing of simulcasting by the [board] commission 38 under this article as any other provision of law. 39 5. Nothing herein shall preclude all the parties to any such dispute 40 from entering into a written agreement providing for the submission and 41 resolution of any such dispute by any other form of final and binding 42 arbitration, under any agreed upon procedure, to any arbitration panel, 43 forum or arbitrator within thirty days after notice of the designation 44 of the list of arbitrators herein by the [board] commission. 45 7. The arbitrator appointed pursuant to subdivision one of this 46 section shall be entitled to receive a fee for his or her services to be 47 paid equally by the parties. In no event shall the [board] commission 48 charge a fee to arbitrate disputes. 49 § 145. The opening paragraph, paragraphs d and f, subparagraph 1 of 50 paragraph g, item (i) of subparagraph 2 of paragraph h, paragraph i, 51 subparagraph 1 of paragraph j and the opening paragraph of subparagraph 52 2 of paragraph k of subdivision 1 of section 1014 of the racing, pari- 53 mutuel wagering and breeding law, as amended by chapter 18 of the laws 54 of 2008, the opening paragraph of subdivision 1, as amended by section 3 55 of part HH of chapter 59 of the laws of 2019, subparagraph (iv) of para-A. 9749 119 1 graph i of subdivision 1 as added by section 9 of part BB of chapter 60 2 of the laws of 2016, are amended to read as follows: 3 The provisions of this section shall govern the simulcasting of races 4 conducted at thoroughbred tracks located in another state or country on 5 any day during which a franchised corporation is conducting a race meet- 6 ing in Saratoga county at Saratoga thoroughbred racetrack until June 7 thirtieth, two thousand twenty and on any day regardless of whether or 8 not a franchised corporation is conducting a race meeting in Saratoga 9 county at Saratoga thoroughbred racetrack after June thirtieth, two 10 thousand twenty. On any day on which a franchised corporation has not 11 scheduled a racing program but a thoroughbred racing corporation located 12 within the state is conducting racing, [every] each off-track betting 13 corporation branch office and [every] each simulcasting facility 14 licensed in accordance with section one thousand seven (that has entered 15 into a written agreement with such facility's representative horsemen's 16 organization, as approved by the commission), one thousand eight, or one 17 thousand nine of this article shall be authorized to accept wagers and 18 display the live simulcast signal from thoroughbred tracks located in 19 another state or foreign country subject to the following provisions: 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 franchised corporation. This calculation shall be provided to the 29 [racing and wagering board] commission and the chief executive officers 30 of the in-state thoroughbred track and the horsemen's organization. If 31 there is a dispute as to the amount of such calculations, written 32 documentation from the off-track betting corporation and the track, 33 shall be supplied to the [racing and wagering board] commission which 34 shall make a determination of the correct amounts, which determination 35 shall be final and binding on all parties. 36 f. The amount shall be distributed in accordance with the provisions 37 of this section. The [board] commission shall determine the amount of 38 and dates of such payments, which dates shall, as far as practicable, 39 reflect the payments made to such track during the comparable period of 40 nineteen hundred ninety-three. 41 (1) At the conclusion of the thoroughbred track corporation's nineteen 42 hundred ninety-four racing season or as shortly thereafter as possible 43 but not later than December twentieth, nineteen hundred ninety-four, the 44 off-track betting corporations and the [racing and wagering board] 45 commission shall determine the average daily handle for the in-state 46 thoroughbred racing corporation and the average daily handle for races 47 conducted at out-of-state or out-of-country tracks. If average daily 48 handle for any off-track betting corporation exceeds by ten percent the 49 average daily handle as calculated in paragraph d of this subdivision, 50 such off-track betting corporation shall pay to the in-state thorough- 51 bred racing corporation an amount calculated by multiplying the average 52 daily handle in excess of one hundred ten percent of the average daily 53 handle of nineteen hundred ninety-three by the effective commission rate 54 paid by such corporation in nineteen hundred ninety-three. Such calcu- 55 lation shall be computed separately for handle on in-state tracks and 56 handle on out-of-state tracks.A. 9749 120 1 (i) In addition, licensed harness tracks shall receive one and one- 2 half [per centum] percent on total handle on races conducted at an out- 3 of-state or out-of-country thoroughbred track provided such harness 4 track is neither accepting wagers nor displaying the signal from an 5 out-of-state track. 6 i. Any facility authorized to accept wagers on out-of-state tracks 7 shall distribute all sums deposited in any pari-mutuel pool to the hold- 8 ers of winning tickets therein, provided such tickets are presented for 9 payment prior to April first of the year following the year of their 10 purchase less eighteen [per centum] percent of the total deposits in 11 pools resulting from regular bets, less twenty-one [per centum] percent 12 of the total deposits in pools resulting from multiple bets, less twen- 13 ty-six [per centum] percent of the total deposits in pools resulting 14 from exotic bets, less thirty-six [per centum] percent of the total 15 deposits in pools resulting from super exotic bets plus the breaks as 16 defined in section two hundred thirty-six of this chapter except that 17 the retention rates and breaks shall be as prescribed by another state 18 or country if such wagers are combined with those in the other state or 19 country pursuant to section nine hundred five of this chapter. 20 [(i)] (1) Of the sum so retained, the applicable tax rate shall be one 21 and one-half percent of all such wagers plus fifty percent of the 22 breaks; provided, however, fifty percent of the breaks accruing from 23 off-track betting corporations licensed in accordance with section one 24 thousand eight of this article and from simulcast theaters licensed in 25 accordance with section one thousand nine of this article, shall be paid 26 to the agriculture and New York state horse breeding and development 27 fund and to the thoroughbred breeding and development fund, the total of 28 such payments to be apportioned fifty [per centum] percent to each such 29 fund. 30 [(ii)] (2) Of the sums so retained, one-half of one [per centum] 31 percent of all wagers shall be paid to the New York state thoroughbred 32 breeding and development fund, except that of the sums so retained on 33 such wagers at licensed harness tracks, one-half of one [per centum] 34 percent shall be paid to the agricultural and New York State horse 35 breeding and development fund. 36 [(iii)] (3) Of the sum so retained, two percent of all wagers shall be 37 paid to a franchised corporation to be used exclusively for the purpose 38 of increasing purses, including stakes, premiums and prizes, provided 39 further that such amount shall not exceed the amount paid to such non- 40 profit racing association in nineteen hundred ninety-three from wagers 41 placed on out-of-state tracks on a day when no racing was being 42 conducted by the non-profit racing association and a racing program was 43 being conducted by a thoroughbred racing corporation located in the 44 state. The excess, if any, shall be paid to a thoroughbred racing corpo- 45 ration located in the state until August thirty-first, nineteen hundred 46 ninety-five and on and after July nineteen, nineteen hundred ninety-six 47 to be used exclusively for the purpose of increasing purses, including 48 stakes, premiums and prizes. 49 [(iv)] (4) Any thoroughbred racing corporation or harness racing asso- 50 ciation or corporation or off-track betting corporation authorized 51 pursuant to this section shall pay to the [gaming] commission as a regu- 52 latory fee, which fee is hereby levied, six-tenths of one percent of all 53 wagering pools. 54 (1) All wagers authorized by this section shall be combined so as to 55 produce common pari-mutuel betting pools for the calculation of odds and 56 the determination of payouts from such pools, which payouts shall beA. 9749 121 1 made pursuant to the rules of the [board] commission. Every location 2 authorized to accept wagers or display simulcasting pursuant to this 3 section shall be subject to all appropriate provisions of this chapter. 4 upon application of any facility licensed in accordance with sections 5 one thousand seven and one thousand nine of this article, the [board] 6 commission shall authorize the imposition of a sum equal to the amount 7 authorized by section five hundred thirty-two of this chapter which 8 shall apply to wagers placed at such facility. Such sums received by 9 facilities licensed in accordance with section one thousand nine of this 10 article shall be retained for the general purpose of the corporation. 11 Such sums received by such facilities licensed in accordance with 12 section one thousand seven of this article shall be distributed as 13 follows: 14 § 146. The opening paragraph and paragraphs d and e of subdivision 3 15 and paragraph c of subdivision 4 of section 1015 of the racing, pari-mu- 16 tuel wagering and breeding law, the opening paragraph of subdivision 3 17 as amended and such section as renumbered by chapter 18 of the laws of 18 2008, paragraph d of subdivision 3 and paragraph c of subdivision 4 as 19 amended by section 22 of part F3 of chapter 62 of the laws of 2003, and 20 paragraph e of subdivision 3 as amended by section 10 of part BB of 21 chapter 60 of the laws of 2016, are amended to read as follows: 22 Any facility authorized to accept wagers on out-of-state tracks shall 23 distribute all sums deposited in any pari-mutuel pool to the holders of 24 any tickets therein provided such tickets are presented for payment 25 prior to April first of the year following the year of their purchase 26 less nineteen [per centum] percent of total deposits in pools resulting 27 from regular bets, less twenty-one [per centum] percent of total depos- 28 its of pools resulting from multiple bets, less twenty-seven [per29centum] percent of total deposits of pools resulting from exotic bets, 30 less thirty-six [per centum] percent of total deposits of pools result- 31 ing from super exotic bets plus the breaks as defined in section three 32 hundred eighteen of this chapter except that the retention rates and 33 breaks shall be as prescribed by another state or country if such wagers 34 are combined with those in the other state or country pursuant to 35 section nine hundred five of this chapter. 36 d. For wagers placed at an off-track betting facility in that portion 37 of the western region located with a thoroughbred special betting 38 district, but not included in a harness special betting district, one 39 and one-half [per centum] percent of such wagers shall be paid to the 40 racing association located in such district provided such association is 41 neither accepting wagers nor simulcasting out-of-state harness races. 42 Any payments required by this subdivision shall reduce payments required 43 to be made to the regional licensed harness track under the provisions 44 of subparagraph three of paragraph b of this subdivision. 45 e. Any thoroughbred racing corporation or harness racing association 46 or corporation or off-track betting corporation authorized pursuant to 47 this section shall pay to the [gaming] commission as a regulatory fee, 48 which fee is hereby levied, six-tenths of one percent of all wagering 49 pools. 50 c. upon application of any facility licensed in accordance with 51 sections one thousand seven and one thousand nine of this article, the 52 [board] commission shall authorize the imposition of a sum equal to the 53 amount authorized by section five hundred thirty-two of this chapter 54 [which] that shall apply to wagers placed at such facility. Such sums 55 received by facilities licensed in accordance with section one thousand 56 nine of this article shall be retained for the general purpose of theA. 9749 122 1 corporation. Such sums received by such facilities licensed in accord- 2 ance with section one thousand seven of this article shall be distrib- 3 uted as follows: 4 (1) fifty percent shall be used exclusively for purses awarded in 5 races conducted by such licensed facility; and 6 (2) fifty percent shall be retained by such licensed facility for its 7 general purposes. 8 § 147. The opening paragraph, subparagraphs 1 and 2, item (ii) of 9 clause (E) of subparagraph 5 and item (ii) of clause (F) of subparagraph 10 6 of paragraph b, subparagraph 1 of paragraph c and the opening para- 11 graph of subparagraph 2 of paragraph d of subdivision 1 of section 1016 12 of the racing, pari-mutuel wagering and breeding law, as amended by 13 chapter 18 of the laws of 2008 and clause (B) of subparagraph 2 of para- 14 graph b of subdivision 1 as amended by section 11 of part BB of chapter 15 60 of the laws of 2016, are amended to read as follows: 16 Any facility authorized to accept wagers on out-of-state tracks shall 17 distribute all sums deposited in any pari-mutuel pool to the holders of 18 winning tickets therein, provided such tickets are presented for payment 19 prior to April first of the year following the year of their purchase 20 less eighteen [per centum] percent of the total deposits in pools 21 resulting from regular bets, less twenty-one [per centum] percent of the 22 total deposits in pools resulting from multiple bets, less twenty-six 23 [per centum] percent of the total deposits in pools resulting from exot- 24 ic bets, and less twenty-seven [per centum] percent of the total depos- 25 its in pools resulting from super exotic bets, plus the breaks as 26 defined in section two hundred thirty-six of this chapter except that 27 the retention rates and breaks shall be as prescribed by another state 28 or country if such wagers are combined with those in the other state or 29 country pursuant to section nine hundred five of this chapter. 30 (1) Of the sums so retained, the applicable tax rates shall be as 31 governed by clauses (A) and (B) of subparagraphs three, four, five and 32 six of this paragraph plus fifty percent of the breaks; provided, howev- 33 er, fifty percent of the breaks accruing from off-track betting corpo- 34 rations licensed in accordance with section one thousand eight of this 35 article and from simulcast theaters licensed in accordance with section 36 one thousand nine of this article, shall be paid to the agriculture and 37 New York State horse breeding and development fund and to the thorough- 38 bred breeding and development fund, the total of such payments to be 39 apportioned fifty [per centum] percent to each such fund. 40 (2) (A) Of the sums so retained, one-half of one [per centum] percent 41 of all wagers shall be paid to the New York State thoroughbred breeding 42 and development fund, except that of the sums so retained on such wagers 43 at licensed harness tracks, one-half of one [per centum] percent shall 44 be paid to the agricultural and New York State horse breeding and devel- 45 opment fund. 46 (B) Any harness racing or association or corporation or thoroughbred 47 racing corporation authorized pursuant to this section shall pay to the 48 [gaming] commission as a regulatory fee, which fee is hereby levied, 49 six-tenths of one percent of the total daily pari-mutuel pools. 50 (ii) Such licensed regional harness track shall receive one and one- 51 half [per centum] percent on total regional handle on races conducted at 52 out-of-state or out-of-country thoroughbred tracks. 53 (ii) Such licensed regional harness track shall receive one and one- 54 half [per centum] percent on total regional handle on races conducted at 55 out-of-state or out-of-country thoroughbred tracks.A. 9749 123 1 (1) All wagers authorized by this section shall be combined so as to 2 produce common pari-mutuel betting pools, which shall be combined with 3 the sending track, for the calculation of odds and the determination of 4 payouts from such pools, which payouts shall be made pursuant to the 5 rules of the [board] commission. Every location authorized to accept 6 wagers or display simulcasting pursuant to this section shall be subject 7 to all appropriate provisions of this chapter. 8 upon application of any facility licensed in accordance with sections 9 one thousand seven and one thousand nine of this article, the [board] 10 commission shall authorize the imposition of a sum equal to the amount 11 authorized by section five hundred thirty-two of this chapter [which12shall apply] that applies to wagers placed at such facility. Such sums 13 received by facilities licensed in accordance with section one thousand 14 nine of this article shall be retained for the general purpose of the 15 corporation. Such sums received by such facilities licensed in accord- 16 ance with section one thousand seven of this article shall be distrib- 17 uted as follows: 18 § 148. Paragraph a of subdivision 2 of section 1017 of the racing, 19 pari-mutuel wagering and breeding law, as amended by chapter 174 of the 20 laws of 2013, is amended to read as follows: 21 a. Maintenance of effort. Any off-track betting corporation [which] 22 that engages in accepting wagers on the simulcasts of thoroughbred races 23 from out-of-state or out-of-country as permitted under subdivision one 24 of this section shall submit to the commission, for its approval, a 25 schedule of payments to be made in any year or portion thereof, that 26 such off-track corporation engages in nighttime thoroughbred simulcast- 27 ing. In order to be approved by the commission, the payment schedule 28 shall be identical to the actual payments and distributions of such 29 payments to tracks and purses made by such off-track corporation pursu- 30 ant to the provisions of section one thousand fifteen of this article 31 during the year two thousand two, as derived from out-of-state harness 32 races displayed after 6:00 P.M. If approved by the commission, such 33 scheduled payments shall be made from revenues derived from any simul- 34 casting conducted pursuant to this section and section one thousand 35 fifteen of this article. 36 § 149. Subdivision 2 of section 1018 of the racing, pari-mutuel wager- 37 ing and breeding law, as amended by chapter 18 of the laws of 2008 and 38 paragraph b of subdivision 2 as amended by section 12 of part BB of 39 chapter 60 of the laws of 2016, is amended to read as follows: 40 2. a. Of the sums so retained, one-half of one [per centum] percent of 41 all wagers shall be paid to the New York state thoroughbred breeding and 42 development fund, except that of the sums so retained on such wagers at 43 licensed harness tracks, one-half of one [per centum] percent shall be 44 paid to the agriculture and New York state horse breeding and develop- 45 ment fund. 46 b. Any thoroughbred racing corporation or harness racing association 47 or corporation or off-track betting corporation shall pay to the 48 [gaming] commission as a regulatory fee, which fee is hereby levied, 49 six-tenths of one percent of all wagering pools. 50 § 150. Subdivision c of section 1101 of the racing, pari-mutuel wager- 51 ing and breeding law, as added by chapter 323 of the laws of 2001, is 52 amended to read as follows: 53 c. to authorize the [New York state racing and wagering board] commis- 54 sion to participate in this compact;A. 9749 124 1 § 151. Subdivision b of section 1106 of the racing, pari-mutuel wager- 2 ing and breeding law, as added by chapter 323 of the laws of 2001, is 3 amended to read as follows: 4 b. The [chairman] chair of the [racing and wagering board] state 5 gaming commission shall designate the official, and his or her alter- 6 nate, to represent New York state in the compact committee. 7 § 152. Paragraphs 1 and 3 of subdivision c of section 1111 of the 8 racing, pari-mutuel wagering and breeding law, as added by chapter 323 9 of the laws of 2001, are amended to read as follows: 10 (1) to charge a fee for the use of a compact license within that party 11 state, for which the [racing and wagering board] commission shall charge 12 the fee, for each license category, set forth in sections two hundred 13 thirteen and three hundred nine of this chapter; 14 (3) to apply its own standards for licensure or renewal of state 15 applicants who do not meet the licensure requirements of the compact 16 committee, or who are within a category of participants in live racing 17 [which] that the compact committee does not license; and 18 § 153. Section 1112 of the racing, pari-mutuel wagering and breeding 19 law, as added by chapter 323 of the laws of 2001, is amended to read as 20 follows: 21 § 1112. Fingerprints and criminal history. In order to determine the 22 suitability to be licensed of an applicant or licensee, the [racing and23wagering board] commission shall require a full set of fingerprints be 24 furnished to the [board] commission to enable a criminal background 25 investigation to be conducted. For any person who intends to partic- 26 ipate in racing in New York state, the [board] commission shall submit 27 such fingerprints to the division of criminal justice services, and the 28 division of criminal justice services is authorized to submit such fing- 29 erprints to the federal bureau of investigation, in accordance with the 30 rules or regulations promulgated by such entities, to obtain relevant 31 criminal history record information, if any, concerning such applicant 32 or licensee. The [board] commission shall require the applicant or 33 licensee to pay the cost of the criminal history investigation. 34 § 154. The opening paragraph of section 1306 of the racing, pari-mutu- 35 el wagering and breeding law, as added by chapter 174 of the laws of 36 2013, is amended to read as follows: 37 The New York state [resort] gaming facility location board shall 38 select, following a competitive process and subject to the restrictions 39 of this article, no more than four entities to apply to the commission 40 for gaming facility licenses. In exercising its authority, the board 41 shall have all powers necessary or convenient to fully carry out and 42 effectuate its purposes including, but not limited to, the following 43 powers. The board shall: 44 § 155. Paragraph (a) of subdivision 1 of section 1330-a of the racing, 45 pari-mutuel wagering and breeding law, as added by chapter 174 of the 46 laws of 2013, is amended to read as follows: 47 (a) In addition to any other registration or reporting required by 48 law, any entity licensed under section sixteen hundred seventeen-a of 49 the tax law, or [which] that possesses a pari-mutuel wagering license or 50 franchise awarded pursuant to article two or three of this chapter that 51 makes an expenditure of more than one thousand dollars for any written, 52 typed, or other printed communication, or any internet-based communi- 53 cation, or any television or radio communication, or any automated or 54 paid telephone communications, in support or opposition to any referen- 55 dum authorized by the state legislature following second passage of a 56 concurrent resolution to amend the state constitution to permit orA. 9749 125 1 authorize casino gaming to a general public audience, shall file any 2 reports required pursuant to the election law simultaneously with the 3 gaming commission and shall provide such additional reports as required 4 by the [gaming] commission. This requirement shall apply irrespective of 5 whether such entity makes such expenditure directly or indirectly via 6 one or more persons. The [gaming] commission shall promulgate regu- 7 lations to implement the requirements of this section. 8 § 156. Paragraph (b) of subdivision 1 of section 1341 of the racing, 9 pari-mutuel wagering and breeding law, as added by chapter 174 of the 10 laws of 2013, is amended to read as follows: 11 (b) Agreements between a gaming facility licensee and a junket enter- 12 prise or junket representative licensed, qualified or registered in 13 accordance with the provisions of this article and the regulations of 14 the commission [which] that provide for the compensation of the junket 15 enterprise or junket representative by the gaming facility licensee 16 based upon the actual gaming activities of a patron procured or referred 17 by the junket enterprise or junket representative shall be lawful if 18 filed with the commission prior to the conduct of any junket that is 19 governed by the agreement. 20 § 157. Subdivision 2 of section 1345 of the racing, pari-mutuel wager- 21 ing and breeding law, as added by chapter 174 of the laws of 2013, is 22 amended to read as follows: 23 2. For the purposes of this section, any gaming activity in a licensed 24 gaming facility [which] that results in a prohibited person obtaining 25 any money or thing of value from, or being owed any money or thing of 26 value by, the gaming facility shall be considered, solely for purposes 27 of this section, to be a fully executed gambling transaction. 28 § 158. Subdivision 6 of section 1346 of the racing, pari-mutuel wager- 29 ing and breeding law, as added by chapter 174 of the laws of 2013, is 30 amended to read as follows: 31 6. If otherwise applicable, any gaming facility entering into a 32 contract for a gaming facility [capitol] capital project shall be deemed 33 to be a state agency, and such contract shall be deemed to be a state 34 contract, for purposes of article fifteen-A of the executive law and 35 section two hundred twenty-two of the labor law. 36 § 159. Subdivision 1 of section 1355 of the racing, pari-mutuel wager- 37 ing and breeding law, as added by chapter 174 of the laws of 2013, is 38 amended to read as follows: 39 1. If an applicant who possesses a pari-mutuel wagering franchise or 40 license awarded pursuant to article two or three of this chapter, or who 41 possessed in two thousand thirteen a franchise or a license awarded 42 pursuant to article two or three of this chapter or is an [articulated] 43 affiliated entity [or] of such applicant, is issued a gaming facility 44 license pursuant to this article, the licensee shall: 45 (a) Maintain payments made from video lottery gaming operations to the 46 relevant horsemen and breeders organizations at the same dollar level 47 realized in two thousand thirteen, to be adjusted annually pursuant to 48 changes in the consumer price index for all urban consumers, as 49 published annually by the United States department of labor bureau of 50 labor statistics; 51 (b) All [racetracks] racetrack locations awarded a gaming facility 52 license shall maintain racing activity and race dates pursuant to arti- 53 cles two and three of this chapter. 54 § 160. Subdivision 2 of section 195-q of the general municipal law, as 55 added by chapter 309 of the laws of 1996, is amended to read as follows:A. 9749 126 1 2. The [racing and wagering board] state gaming commission shall 2 submit to the director of the division of the budget an annual plan that 3 details the amount of money the [racing and wagering board] state gaming 4 commission deems necessary to maintain operations, compliance and 5 enforcement of the provisions of this article and the collection of the 6 license fee authorized by this section. Contingent upon the approval of 7 the director of the division of the budget, the [racing and wagering8board] state gaming commission shall pay into an account, to be known as 9 the bell jar collection account, under the joint custody of the comp- 10 troller and the [board] state gaming commission, the total amount of 11 license fees collected pursuant to this section. With the approval of 12 the director of the division of the budget, monies to be utilized to 13 maintain the operations necessary to enforce the provisions of this 14 article and the collection of the license fee imposed by this section 15 shall be paid out of such account on the audit and warrant of the comp- 16 troller on vouchers certified or approved by the director of the divi- 17 sion of the budget or his or her duly designated official. Those monies 18 that are not utilized to maintain operations necessary to enforce the 19 provisions of this article and the collection of the license fee author- 20 ized by this section shall be paid out of such amount on the audit and 21 warrant of the state comptroller and shall be credited to the general 22 fund. 23 § 161. Paragraph (c) of subdivision 6 of section 476 of the general 24 municipal law, as amended by chapter 190 of the laws of 1997, is amended 25 to read as follows: 26 (c) Those which shall initiate, perform or foster the provisions of 27 services to veterans by encouraging the gathering of such veterans and 28 shall enable or further the erection or maintenance of facilities for 29 use by such veterans which shall be used primarily for charitable or 30 patriotic purposes, or those purposes which shall be authorized by a 31 bona fide organization of veterans, provided however that such proceeds 32 are disbursed in accordance with the rules and regulations of the 33 [racing and wagering board] state gaming commission. 34 § 162. Subdivision 10 of section 854 of the general municipal law, as 35 added by chapter 267 of the laws of 1977, is amended to read as follows: 36 (10) "Horse racing facility"--shall mean any facility for the use of 37 the general public for purpose of conducting pari-mutuel wagering, 38 licensed by the state [racing and wagering board] gaming commission, as 39 of January first, nineteen hundred seventy-seven, except non-profit 40 racing associations, including buildings, structures, machinery, equip- 41 ments, facilities and appurtenances thereto, the construction, recon- 42 struction, acquisition and/or improvement of which shall have been 43 approved by the state [racing and wagering board] gaming commission, and 44 [which] that the agency may deem necessary, useful or desirable in 45 connection with the construction, improvement or operation of such 46 racing facility. 47 § 163. Subdivision 4-a of section 100 of the alcoholic beverage 48 control law, as added by chapter 762 of the laws of 1941, is amended to 49 read as follows: 50 4-a. At race meetings, authorized by the state [racing] gaming commis- 51 sion, notwithstanding any inconsistent provision of law, additional 52 bars, counters or contrivances where alcoholic beverages shall be sold 53 at retail for consumption on the premises may be permitted by the liquor 54 authority, upon payment to it of a fee equivalent to the amount of the 55 annual or summer license fee paid by the licensee for each such addi-A. 9749 127 1 tional bar, counter or contrivance so permitted in addition to the 2 amount of the annual or summer license fee paid by the licensee. 3 § 164. Subdivision a of section 20-339 of the administrative code of 4 the city of New York is amended to read as follows: 5 a. "Control commission" or "commission" or "board" shall mean the 6 state [racing and wagering board] gaming commission. 7 § 165. Subdivision 1 of section 20-435 of the administrative code of 8 the city of New York is amended to read as follows: 9 1. "Board" shall mean New York state [racing and wagering board] 10 gaming commission. 11 § 166. This act shall take effect immediately; provided, however, that 12 the amendments to section 212 of the racing, pari-mutuel wagering and 13 breeding law made by section eleven of this act and section 1013 of the 14 racing, pari-mutuel wagering and breeding law made by section one 15 hundred forty-four of this act shall not affect the repeal of such 16 sections and shall be deemed repealed therewith; and provided, further 17 that the amendments to paragraph b of subdivision 3 of section 527 of 18 the racing, pari-mutuel wagering and breeding law made by section one 19 hundred five of this act shall be subject to the expiration and rever- 20 sion of such paragraph pursuant to section 32 of chapter 281 of the laws 21 of 1994, as amended, when upon such date the provisions of section one 22 hundred five-a of this act shall take effect.
