S T A T E   O F   N E W   Y O R K
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                                  7383

                            I N  S E N A T E

                              April 5, 2010
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
  relation to simulcasting; to amend  the  penal  law,  in  relation  to
  conducting  account  wagering without a license; and to repeal certain
  provisions of the racing, pari-mutuel wagering and breeding law relat-
  ing thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 10 of the racing, pari-mutuel wagering and breeding
law is REPEALED and a new article 10 is added to read as follows:
                                ARTICLE X
                              SIMULCASTING
SECTION 1000. STATEMENT OF PURPOSE.
        1001. DEFINITIONS.
        1002. GENERAL JURISDICTION.
        1003. SIMULCASTING AUTHORIZED.
        1004. SIMULCAST LICENSING.
        1005. STATE  RACING AND WAGERING BOARD AUTHORITY OVER SIMULCAST-
                ING AND ACCOUNT WAGERS.
        1006. SIMULCASTS TO RACING ASSOCIATIONS.
        1007. SIMULCASTS TO OFF-TRACK BETTING CORPORATION BRANCHES.
        1008. TELEVISION, INTERNET AND VIDEO STREAMING OF HORSE RACES.
        1009. CONDITIONS FOR ACCOUNT WAGERING LICENSES.
        1010. LICENSED ACCOUNT WAGERING AT RACING ASSOCIATIONS.
        1011. LICENSED ACCOUNT  WAGERING  AT  OFF-TRACK  BETTING  CORPO-
                RATIONS.
        1012. LICENSED  ACCOUNT WAGERING AT MULTI-JURISDICTIONAL ACCOUNT
                WAGERING PROVIDERS.
  S 1000. STATEMENT OF PURPOSE. THE SPORT OF  HORSE  RACING  IS  LARGELY
DEPENDENT  ON  THE  SIMULCASTING  OF RACES BETWEEN HOST TRACKS AND OTHER
RACETRACKS, OFF-TRACK BETTING SITES, AND  PRIVATE  HOMES.  IN  ORDER  TO
SUPPORT THE SPORT OF HORSE RACING, SIMULCASTING OF HORSE RACES SHOULD BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD16400-03-0

S. 7383                             2

ENCOURAGED  IN  ORDER  TO  STRENGTHEN  THE ECONOMIC CONTRIBUTIONS OF THE
RACING INDUSTRY TO NEW YORK STATE. SIMULCASTING MAY  ONLY  BE  CONDUCTED
PURSUANT  TO THE STRICT CONTROLS OF THIS ARTICLE AND THE RULES AND REGU-
LATIONS OF THE NEW YORK STATE RACING AND WAGERING BOARD.
  S  1001.  DEFINITIONS.  AS USED IN THIS ARTICLE: 1. "ACCOUNT WAGERING"
MEANS A FORM OF PARI-MUTUEL WAGERING IN WHICH A  PERSON  ESTABLISHES  AN
ACCOUNT WITH A RACING ASSOCIATION, AN OFF-TRACK BETTING CORPORATION OR A
STATE  RACING  AND WAGERING BOARD APPROVED MULTI-JURISDICTIONAL WAGERING
HUB, AND SUBSEQUENTLY ISSUES WAGERING INSTRUCTIONS CONCERNING THE  FUNDS
IN  THIS  ACCOUNT, THEREBY AUTHORIZING THE ENTITY HOLDING THE ACCOUNT TO
PLACE WAGERS ON THE ACCOUNT OWNER'S BEHALF. AN ACCOUNT WAGER MAY BE MADE
ONLY BY THE ENTITY HOLDING THE ACCOUNT PURSUANT TO WAGERING INSTRUCTIONS
ISSUED BY THE OWNER OF THE FUNDS COMMUNICATED BY TELEPHONE  CALL  OR  BY
COMMUNICATION THROUGH OTHER ELECTRONIC MEANS.
  2.  "ACCOUNT  WAGERING  LICENSEE" MEANS RACING ASSOCIATIONS, OFF-TRACK
BETTING CORPORATIONS, AND NEW  YORK  STATE  RACING  AND  WAGERING  BOARD
APPROVED MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS WHICH HAVE BEEN
AUTHORIZED BY THE BOARD TO OFFER ACCOUNT WAGERING.
  3.  "DORMANT  ACCOUNT"  MEANS  AN  ACCOUNT  WAGERING ACCOUNT HELD BY A
RACING ASSOCIATION OR AN OFF-TRACK BETTING CORPORATION  WHICH  HAS  BEEN
INACTIVE FOR THREE YEARS.
  4.  "GUEST  TRACK"  MEANS A RACING ASSOCIATION WHERE SIMULCASTS ORIGI-
NATED FROM ANOTHER RACETRACK OR RACING ASSOCIATION ARE DISPLAYED.
  5. "HOST TRACK" MEANS THE RACETRACK OR THE RACING ASSOCIATION AT WHICH
THE RACE WHICH IS THE SUBJECT OF SIMULCAST WAGERING IS RUN.
  6. "MARKET ORIGIN FEE ACCOUNT" SHALL MEAN AN ACCOUNT MAINTAINED BY THE
STATE RACING AND WAGERING BOARD WHICH SHALL  BE  AUTHORIZED  TO  RECEIVE
PAYMENTS  FROM  OFF-TRACK  BETTING CORPORATIONS AND MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDERS ON BEHALF OF  RACING  ASSOCIATIONS,  HORSEMEN
AND  BREEDERS  IN  NEW YORK STATE. OF THE MARKET ORIGIN FEE, EIGHTY-NINE
AND ONE-HALF PERCENT SHALL BE PAID TO RACING ASSOCIATIONS.  PAYMENTS  TO
INDIVIDUAL  RACING  ASSOCIATIONS  SHALL  BE  DETERMINED BASED ON A RATIO
WHERE THE NUMERATOR IS THE RACING ASSOCIATION'S TOTAL IN-STATE HANDLE ON
ITS LIVE RACES BOTH AT RACING ASSOCIATIONS AND OFF-TRACK BETTING  CORPO-
RATIONS  DURING  THE  PREVIOUS CALENDAR YEAR, AND THE DENOMINATOR IS THE
TOTAL IN-STATE HANDLE ON LIVE RACES CONDUCTED BY ALL RACING ASSOCIATIONS
IN NEW YORK STATE AT RACING ASSOCIATIONS AND  OFF-TRACK  BETTING  CORPO-
RATIONS  DURING  THE  PREVIOUS  CALENDAR  YEAR, EXCEPT THAT NO LESS THAN
TWENTY PERCENT OF THIS FEE SHALL BE APPORTIONED TO HARNESS RACING  ASSO-
CIATIONS,  AND  NO MORE THAN SEVENTY PERCENT OF THIS FEE SHALL BE APPOR-
TIONED TO AN ENFRANCHISED ASSOCIATION. OF THE REMAINING TEN AND ONE-HALF
PERCENT OF THE MARKET ORIGIN FEE, 32.4 PERCENT  SHALL  BE  PAID  TO  THE
AGRICULTURE  AND  NEW YORK STATE BREEDING AND DEVELOPMENT FUND, AND 67.6
PERCENT SHALL BE PAID TO THE NEW YORK STATE  THOROUGHBRED  BREEDING  AND
DEVELOPMENT FUND. SUCH PAYMENTS SHALL BE MADE AT LEAST ONCE EVERY THIRTY
DAYS IN ACCORDANCE WITH A SCHEDULE TO BE ESTABLISHED BY THE STATE RACING
AND WAGERING BOARD.
  7.  "MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER" MEANS A BUSINESS
ENTITY DOMICILED OUTSIDE NEW YORK STATE WHICH IS LICENSED IN  MORE  THAN
ONE  JURISDICTION  AND  OFFERS  PARI-MUTUEL ACCOUNT WAGERING ON RACES IT
SIMULCASTS AND OTHER RACES IT OFFERS IN ITS WAGERING MENU.
  8. "RACETRACK" MEANS RACING ASSOCIATIONS AND FACILITIES EITHER  INSIDE
OR  OUTSIDE  NEW  YORK  STATE OFFERING WAGERING ON LIVE HORSE RACING FOR
WHICH SUCH FACILITIES ARE LICENSED IN THEIR STATE OR APPROPRIATE  JURIS-
DICTION.

S. 7383                             3

  9.  "SIMULCAST" MEANS THE LIVE TRANSMISSION OF VIDEO AND AUDIO SIGNALS
CONVEYING A HORSE RACE HELD EITHER INSIDE OR OUTSIDE THIS STATE.
  10. "SIMULCAST FACILITY" MEANS THOSE RACING ASSOCIATIONS AND OFF-TRACK
BETTING  CORPORATIONS  WITHIN  THE STATE THAT ARE AUTHORIZED PURSUANT TO
THE PROVISIONS OF THIS ARTICLE TO  DISPLAY  SIMULCASTS  FOR  PARI-MUTUEL
WAGERING PURPOSES.
  S  1002.  GENERAL  JURISDICTION.  THE  STATE RACING AND WAGERING BOARD
SHALL HAVE GENERAL JURISDICTION OVER THE SIMULCASTING OF HORSE RACES  TO
AND  FROM  LOCATIONS  WITHIN  NEW  YORK STATE, AND THE BOARD SHALL ISSUE
APPROPRIATE RULES AND REGULATIONS IN ACCORDANCE WITH THE  PROVISIONS  OF
THIS ARTICLE.
  S 1003. SIMULCASTING AUTHORIZED. ALL HOST TRACKS IN NEW YORK STATE, AS
A  CONDITION  OF  THEIR LICENSURE TO CONDUCT PARI-MUTUEL WAGERING, SHALL
GRANT A COMPULSORY LICENSE TO OFF-TRACK BETTING CORPORATIONS PURSUANT TO
WHICH SIMULCASTS OF THEIR RACES SHALL BE MADE AVAILABLE TO ALL OFF-TRACK
BETTING CORPORATIONS EXCEPT THAT:
  1. A HOST TRACK LOCATED IN A COUNTY OR A CITY  WITH  A  POPULATION  IN
EXCESS OF ONE MILLION PEOPLE MAY DENY SENDING ITS SIMULCAST SIGNAL TO AN
OFF-TRACK  BETTING  BRANCH THAT IS LOCATED LESS THAN FIVE MILES FROM THE
HOST TRACK; AND
  2. A HOST TRACK IN ANY OTHER COUNTY MAY  DENY  SENDING  ITS  SIMULCAST
SIGNAL  TO AN OFF-TRACK BETTING BRANCH THAT IS LOCATED LESS THAN FIFTEEN
MILES FROM THE HOST TRACK. NOTHING SHALL PREVENT  AN  OFF-TRACK  BETTING
BRANCH  OFFICE  THAT  IS DENIED THE SIMULCAST SIGNAL FROM THE HOST TRACK
FROM TAKING WAGERS ON RACES RUN BY THE HOST TRACK. WHERE A BRANCH OFFICE
TAKES WAGERS ON RACES BUT IS DENIED  A  SIMULCAST  SIGNAL  BY  THE  HOST
TRACK,  THE DISTRIBUTION OF THE TAKEOUT SHALL BE GOVERNED BY SECTION ONE
THOUSAND SEVEN OF THIS ARTICLE.
  S 1004. SIMULCAST LICENSING. 1.  ALL  SIMULCAST  FACILITIES  SHALL  BE
LICENSED  BY  THE  STATE  RACING  AND WAGERING BOARD. THE BOARD MAY ONLY
LICENSE THOSE SIMULCAST FACILITIES WHERE THE APPROPRIATE LOCAL OFFICIALS
HAVE CONFIRMED THAT THE FACILITY IS IN COMPLIANCE WITH  ALL  LOCAL  LAWS
AND ZONING REQUIREMENTS.
  2.  THE  BOARD  SHALL  APPROVE THE SIMULCASTING FACILITY LICENSE IF IT
DETERMINES THAT  THE  FACILITY  POSSESSES  APPROPRIATE  TOTALIZATOR  AND
ACCOUNTING  CONTROLS  WHICH  WILL SAFEGUARD THE TRANSMISSION OF WAGERING
DATA, WILL EFFECTUATE COMMON POOLING, AND WILL KEEP A SYSTEM OF ACCOUNTS
WHICH WILL MAINTAIN A SEPARATE  RECORD  OF  REVENUES  COLLECTED  BY  THE
FACILITY,  THE DISTRIBUTION OF SUCH REVENUES, AND AN ACCOUNTING OF COSTS
RELATIVE TO THE OPERATION OF THE FACILITY.
  3. SIMULCAST FACILITIES MAY  PROVIDE  FOOD  AND  BEVERAGE  SERVICE  IN
COMPLIANCE WITH APPLICABLE STATE AND LOCAL LAWS.
  4. NO SIMULCAST FACILITY THAT COLLECTS A SURCHARGE PURSUANT TO SECTION
FIVE HUNDRED THIRTY-TWO OF THIS CHAPTER SHALL CHARGE A PATRON FOR ADMIS-
SION.
  5.  OFF-TRACK  BETTING  CORPORATIONS  MAY  PROVIDE  FOR  SIMULCASTS TO
SUPPLEMENTARY PRIVATE SIMULCAST FACILITIES AUTHORIZED TO  ACCEPT  WAGERS
ON  THE QUICK DRAW LOTTERY GAME PURSUANT TO PARAGRAPH ONE OF SUBDIVISION
(A) OF SECTION SIXTEEN HUNDRED TWELVE OF THE TAX LAW. ALL  SUCH  SUPPLE-
MENTARY  PRIVATE  SIMULCAST  FACILITIES SHALL BE SUBJECT TO A BACKGROUND
CHECK AND MUST BE LICENSED BY THE BOARD. THE BOARD MAY  DENY  A  LICENSE
TO, SUSPEND, OR REVOKE A LICENSE TO A SUPPLEMENTARY PRIVATE SIMULCASTING
FACILITY IF IT FINDS THAT LICENSING OF THE FACILITY IS NOT IN THE PUBLIC
INTEREST  AND  THE  BEST INTEREST OF HONEST HORSE RACING. ALL AGREEMENTS
BETWEEN THE SUPPLEMENTARY PRIVATE SIMULCAST FACILITY AND  THE  OFF-TRACK
BETTING  CORPORATION SHALL BE IN WRITING, DISCLOSED TO THE BOARD, AND BE

S. 7383                             4

AVAILABLE TO THE PUBLIC UNDER THE  PROVISIONS  OF  ARTICLE  SIX  OF  THE
PUBLIC  OFFICERS  LAW.  THE BOARD SHALL PROMULGATE RULES AND REGULATIONS
GOVERNING THE LICENSING OF SUPPLEMENTARY  PRIVATE  SIMULCASTING  FACILI-
TIES.
  S  1005.  STATE  RACING AND WAGERING BOARD AUTHORITY OVER SIMULCASTING
AND ACCOUNT WAGERS. 1. EACH SIMULCASTING LICENSEE SHALL  PAY  A  NON-RE-
FUNDABLE  FEE  TO  BE  DETERMINED BY THE BOARD FOR EACH BRANCH OFFICE OR
SUPPLEMENTARY PRIVATE SIMULCASTING FACILITY FOR WHICH IT  IS  SEEKING  A
LICENSE.
  2. IN ADDITION TO THE PENALTIES AUTHORIZED PURSUANT TO SECTIONS 225.45
AND 225.50 OF THE PENAL LAW, THE BOARD MAY, AFTER NOTICE AND AN OPPORTU-
NITY  FOR A HEARING, REVOKE OR SUSPEND THE LICENSE OF ANY RACING ASSOCI-
ATION, OFF-TRACK BETTING CORPORATION, SUPPLEMENTARY PRIVATE SIMULCASTING
FACILITY,  OR  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING  PROVIDER  FOR  A
VIOLATION  OF  THIS  ARTICLE  OR  THE  RULES AND REGULATIONS PROMULGATED
PURSUANT TO THIS ARTICLE.  THE BOARD IS ALSO AUTHORIZED AND EMPOWERED TO
IMPOSE MONETARY FINES FOR VIOLATIONS  OF  THIS  ARTICLE,  NOT  EXCEEDING
TWENTY-FIVE THOUSAND DOLLARS FOR EACH VIOLATION.
  S  1006.  SIMULCASTS  TO  RACING ASSOCIATIONS. EACH RACING ASSOCIATION
WHICH IS LICENSED TO CONDUCT LIVE PARI-MUTUEL RACING FOR THIRTY DAYS  OR
MORE EACH YEAR MAY BE LICENSED BY THE STATE RACING AND WAGERING BOARD TO
OFFER  PARI-MUTUEL  WAGERING  AND SIMULCASTING ON LIVE RACING FROM OTHER
RACETRACKS AND RACING ASSOCIATIONS UNDER THE FOLLOWING CONDITIONS:
  1. THE PARI-MUTUEL TAX ON EACH WAGER SHALL BE SIX PERCENT OF TAKEOUT.
  2. THERE IS A SIGNED CONTRACT BETWEEN THE GUEST RACING ASSOCIATION AND
ITS HORSEMEN WHICH GOVERNS THE DISTRIBUTION  OF  THE  RETAINED  REVENUES
RECEIVED BY THE GUEST RACING ASSOCIATION FROM THE SIMULCASTS.
  3.  WHERE  THE  HOST  TRACK IS A RACING ASSOCIATION, THERE IS A SIGNED
CONTRACT BETWEEN THE HOST RACING  ASSOCIATION  AND  ITS  HORSEMEN  WHICH
GOVERNS  THE  DISTRIBUTION OF REVENUES TO BE RECEIVED BY THE HOST RACING
ASSOCIATION.
  4. WHERE THE HOST TRACK IS A RACETRACK, THERE IS COMPLIANCE WITH CHAP-
TER FIFTY-SEVEN OF TITLE FIFTEEN OF  THE  UNITED  STATES  CODE  COMMONLY
REFERRED TO AS THE "INTERSTATE HORSERACING ACT."
  5.  A  LICENSED  GUEST  HARNESS RACING ASSOCIATION SHALL PAY AN AMOUNT
EQUAL TO THREE-FOURTHS OF ONE PER CENTUM OF  DAILY  POOLS  DERIVED  FROM
BETS  IT  RECEIVES  TO  THE  AGRICULTURE AND NEW YORK STATE BREEDING AND
DEVELOPMENT FUND. A LICENSED GUEST THOROUGHBRED RACING ASSOCIATION SHALL
PAY AN AMOUNT EQUAL TO THREE-FOURTHS OF ONE PER CENTUM  OF  DAILY  POOLS
DERIVED  FROM BETS IT RECEIVES TO THE NEW YORK STATE THOROUGHBRED BREED-
ING AND DEVELOPMENT FUND.
  6. ANY SIMULCASTS BETWEEN A HOST TRACK AND A GUEST TRACK SHALL  RESULT
IN  THE  COMBINATION  OF  ALL  WAGERS  PLACED AT THE GUEST FACILITY WITH
WAGERS PLACED AT THE HOST FACILITY SO AS TO PRODUCE  COMMON  PARI-MUTUEL
BETTING  POOLS  FOR  THE  CALCULATION  OF  ODDS AND THE DETERMINATION OF
PAYOUTS FROM SUCH POOL, PURSUANT TO SECTION NINE HUNDRED  FIVE  OF  THIS
CHAPTER.
  S  1007. SIMULCASTS TO OFF-TRACK BETTING CORPORATION BRANCHES.  SIMUL-
CASTS TO LICENSED OFF-TRACK BETTING CORPORATION'S BRANCHES AND  LICENSED
SUPPLEMENTARY  PRIVATE  SIMULCASTING FACILITIES SHALL BE APPROVED BY THE
STATE RACING AND WAGERING BOARD UNDER THE FOLLOWING CONDITIONS:
  1. THE PARI-MUTUEL TAX ON EACH WAGER SHALL BE SIX PERCENT OF TAKEOUT.
  2. WHERE THE HOST FACILITY IS A RACETRACK, THERE  IS  COMPLIANCE  WITH
CHAPTER  FIFTY-SEVEN OF TITLE FIFTEEN OF THE UNITED STATES CODE COMMONLY
REFERRED TO AS THE "INTERSTATE HORSERACING ACT."

S. 7383                             5

  3. SIMULCASTS BETWEEN A HOST TRACK AND  AN  OFF-TRACK  BETTING  CORPO-
RATION  BRANCH  OR  SUPPLEMENTARY  PRIVATE  SIMULCASTING  FACILITY SHALL
RESULT IN THE COMBINATION OF ALL WAGERS PLACED AT THE OFF-TRACK  BETTING
CORPORATION  BRANCH  OR SUPPLEMENTARY PRIVATE SIMULCASTING FACILITY WITH
WAGERS  PLACED  AT  THE  HOST  TRACK SO AS TO PRODUCE COMMON PARI-MUTUEL
BETTING POOLS FOR THE CALCULATION  OF  ODDS  AND  THE  DETERMINATION  OF
PAYOUTS  FROM  SUCH  POOL, PURSUANT TO SECTION NINE HUNDRED FIVE OF THIS
CHAPTER.
  4. THIRTY-FOUR PERCENT OF THE FIRST FIFTY MILLION DOLLARS  IN  TAKEOUT
AND  FORTY-ONE  PERCENT  OF  TAKEOUT  AMOUNTS IN EXCESS OF FIFTY MILLION
DOLLARS PER ENTITY ARE TO  BE  DISTRIBUTED  TO  THE  MARKET  ORIGIN  FEE
ACCOUNT.
  5. AN OFF-TRACK BETTING CORPORATION MAY WITH THE APPROVAL OF THE COUN-
TY  AND THE MUNICIPALITY WHERE THE FACILITY IS TO BE LOCATED OPEN SIMUL-
CAST THEATERS WHERE THE SURCHARGE IN SECTION FIVE HUNDRED THIRTY-TWO  OF
THIS  CHAPTER  SHALL NOT BE APPLICABLE TO WAGERS. ALL SIMULCAST THEATERS
MUST BE LICENSED BY THE BOARD, AND THE BOARD MAY NOT LICENSE A SIMULCAST
THEATER UNTIL THE APPROPRIATE LOCAL OFFICIALS HAVE  CONFIRMED  THAT  THE
FACILITY IS IN COMPLIANCE WITH ALL LOCAL LAWS AND ZONING REQUIREMENTS. A
SIMULCAST  THEATER  MAY  NOT BE OPENED AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN WITHIN TEN MILES OF A  RACING  ASSOCIATION,  UNLESS  THAT  RACING
ASSOCIATION  HAS  APPROVED  THE  OPERATION  OF  A  SIMULCAST THEATER. AN
OFF-TRACK BETTING CORPORATION SHALL BE AUTHORIZED TO FORM A  PARTNERSHIP
OR  JOINT VENTURE WITH A RACING ASSOCIATION IN THE OPERATION OF A SIMUL-
CAST THEATER. NO OFF-TRACK BETTING CORPORATION SHALL  BE  AUTHORIZED  TO
PLACE  A  SIMULCAST  THEATER  IN  A  COUNTY  WHERE A DIFFERENT OFF-TRACK
BETTING CORPORATION IS AUTHORIZED TO OPERATE. A SIMULCAST THEATER  SHALL
BE REQUIRED TO PAY THE FEES AND TAXES AUTHORIZED BY THIS SECTION.
  S  1008.  TELEVISION,  INTERNET AND VIDEO STREAMING OF HORSE RACES.  A
RACETRACK MAY TELEVISE, VIDEO STREAM OR BROADCAST VIA THE INTERNET  LIVE
HORSE  RACES  INTO  HOMES  AND  PRIVATE  RESIDENCES  IN  NEW YORK STATE.
OFF-TRACK BETTING CORPORATIONS AND NEW YORK STATE  RACING  AND  WAGERING
BOARD  APPROVED MULTI-JURISDICTIONAL WAGERING PROVIDERS WITH THE WRITTEN
APPROVAL OF THE HOST TRACK MAY TELEVISE, VIDEO STREAM OR  BROADCAST  VIA
THE  INTERNET LIVE HORSE RACES ON STATIONS OR NETWORKS THAT THEY CONTROL
OR OPERATE.
  S 1009. CONDITIONS FOR ACCOUNT WAGERING LICENSES. 1. A RACING  ASSOCI-
ATION,  AN  OFF-TRACK  BETTING  CORPORATION  AND  A MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER MAY APPLY TO THE NEW  YORK  STATE  RACING  AND
WAGERING BOARD TO BE LICENSED TO OFFER ACCOUNT WAGERING.
  2.  A  RACING  ASSOCIATION,  AN  OFF-TRACK  BETTING  CORPORATION AND A
MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER MAY FORM  A  PARTNERSHIP,
JOINT VENTURE, OR ANY OTHER AFFILIATION IN ORDER TO FURTHER THE PURPOSES
OF THIS SECTION.
  3.  THE BOARD SHALL DEVELOP AND ADOPT RULES AND REGULATIONS TO LICENSE
AND REGULATE ALL PHASES OF ACCOUNT WAGERING.
  4. EACH APPLICANT FOR AN ACCOUNT WAGERING LICENSE SHALL SUBMIT A  NON-
REFUNDABLE  FEE  TO  BE DETERMINED BY THE BOARD.  SUCH LICENSE FEE SHALL
NOT BE LESS THAN ONE HUNDRED THOUSAND DOLLARS.
  5. THE ACCOUNT WAGERING LICENSEE SHALL UTILIZE PERSONAL IDENTIFICATION
NUMBERS (PINS) AND OTHER TECHNOLOGIES TO ASSURE THAT  ONLY  THE  ACCOUNT
HOLDER HAS ACCESS TO THE ADVANCE DEPOSIT WAGERING ACCOUNT.
  6.  THE  ACCOUNT  WAGERING PROVIDER SHALL PROVIDE FOR WITHDRAWALS FROM
THE WAGERING ACCOUNT ONLY BY MEANS  OF  A  CHECK  MADE  PAYABLE  TO  THE
ACCOUNT HOLDER AND SENT TO THE ADDRESS OF THE ACCOUNT HOLDER OR BY MEANS
OF  AN  ELECTRONIC  TRANSFER  TO AN ACCOUNT HELD BY THE VERIFIED ACCOUNT

S. 7383                             6

HOLDER OR THE ACCOUNT  HOLDER  MAY  WITHDRAW  FUNDS  FROM  THE  WAGERING
ACCOUNT  AT  A FACILITY APPROVED BY THE COMMISSION BY PRESENTING VERIFI-
ABLE PERSONAL AND ACCOUNT IDENTIFICATION INFORMATION.
  7.  RACING  ASSOCIATIONS  AND  OFF-TRACK BETTING CORPORATIONS MAY TAKE
WAGERS FROM INDIVIDUALS RESIDING OUTSIDE NEW YORK STATE WHERE  THERE  IS
COMPLIANCE  WITH  CHAPTER  FIFTY-SEVEN  OF  TITLE  FIFTEEN OF THE UNITED
STATES CODE COMMONLY REFERRED TO AS THE "INTERSTATE HORSERACING ACT."
  8. THE ACCOUNT HOLDER'S DEPOSITS TO  THE  WAGERING  ACCOUNT  SHALL  BE
SUBMITTED  BY  THE  ACCOUNT  HOLDER TO THE ACCOUNT WAGERING LICENSEE AND
SHALL BE IN THE FORM OF ONE OF THE FOLLOWING:
  (A) CASH GIVEN TO THE ACCOUNT WAGERING LICENSEE;
  (B) CHECK, MONEY ORDER, NEGOTIABLE ORDER OF  WITHDRAWAL,  OR  WIRE  OR
ELECTRONIC TRANSFER, PAYABLE AND REMITTED TO THE ACCOUNT WAGERING LICEN-
SEE; OR
  (C)  CHARGES MADE TO AN ACCOUNT HOLDER'S DEBIT OR CREDIT CARD UPON THE
ACCOUNT HOLDER'S DIRECT AND PERSONAL INSTRUCTION, WHICH INSTRUCTION  MAY
BE  GIVEN  BY  TELEPHONE  COMMUNICATION OR OTHER ELECTRONIC MEANS TO THE
ACCOUNT WAGERING LICENSEE OR ITS AGENT BY THE ACCOUNT HOLDER IF THE  USE
OF THE CARD HAS BEEN APPROVED BY THE ACCOUNT WAGERING LICENSEE.
  9.  (A)  THE  ACCOUNT SHALL BE IN THE NAME OF A NATURAL PERSON AND MAY
NOT BE IN THE NAME OF ANY BENEFICIARY, CUSTODIAN,  JOINT  TRUST,  CORPO-
RATION, PARTNERSHIP OR OTHER ORGANIZATION OR ENTITY.
  (B)  AN  ACCOUNT MAY BE ESTABLISHED BY A PERSON COMPLETING AN APPLICA-
TION FORM APPROVED BY THE  BOARD  AND  SUBMITTING  IT  TOGETHER  WITH  A
CERTIFICATION,  OR  OTHER  PROOF,  OF  AGE AND RESIDENCY. THE FORM SHALL
INCLUDE THE ADDRESS  OF  THE  PRINCIPAL  RESIDENCE  OF  THE  PROSPECTIVE
ACCOUNT  HOLDER AND A STATEMENT THAT A FALSE STATEMENT MADE IN REGARD TO
AN APPLICATION MAY SUBJECT THE APPLICANT TO PROSECUTION.
  (C) THE PROSPECTIVE ACCOUNT HOLDER SHALL SUBMIT THE COMPLETED APPLICA-
TION TO THE ACCOUNT WAGERING LICENSEE. THE ACCOUNT WAGERING LICENSEE MAY
ACCEPT OR REJECT AN APPLICATION AFTER RECEIPT AND REVIEW OF THE APPLICA-
TION AND CERTIFICATION, OR OTHER PROOF, OF AGE AND RESIDENCY FOR COMPLI-
ANCE WITH THIS SECTION.
  10. A WAGERING ACCOUNT SHALL NOT BE ASSIGNABLE OR OTHERWISE TRANSFERA-
BLE.
  11. EXCEPT AS OTHERWISE PROVIDED IN THIS  ARTICLE  OR  IN  REGULATIONS
WHICH  THE  BOARD MAY ADOPT HEREUNDER, ALL ACCOUNT WAGERS SHALL BE FINAL
AND NO WAGER SHALL BE CANCELED BY THE ACCOUNT HOLDER AT ANY  TIME  AFTER
THE WAGER HAS BEEN ACCEPTED BY THE ACCOUNT WAGERING LICENSEE.
  12.  DORMANT  ACCOUNTS SHALL BE TREATED AS ABANDONED PROPERTY PURSUANT
TO SECTION THREE HUNDRED OF THE ABANDONED PROPERTY LAW.
  S 1010. LICENSED ACCOUNT WAGERING AT RACING ASSOCIATIONS. IN ORDER  TO
BE  LICENSED  BY  THE NEW YORK STATE RACING AND WAGERING BOARD, WAGERING
ACCOUNTS AT RACING ASSOCIATIONS SHALL ALSO BE  IN  COMPLIANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND FOUR OF THIS ARTICLE.
  S  1011.  LICENSED ACCOUNT WAGERING AT OFF-TRACK BETTING CORPORATIONS.
1. IN ORDER TO BE LICENSED BY THE NEW YORK  STATE  RACING  AND  WAGERING
BOARD, WAGERING ACCOUNTS AT OFF-TRACK BETTING CORPORATIONS SHALL ALSO BE
IN  COMPLIANCE  WITH THE PROVISIONS OF SECTION ONE THOUSAND FIVE OF THIS
ARTICLE.
  2. EACH OFF-TRACK BETTING CORPORATION IS AUTHORIZED TO  DETERMINE  THE
EXTENT  TO  WHICH  THE  PROVISIONS OF SECTION FIVE HUNDRED THIRTY-TWO OF
THIS CHAPTER (I.E. SURCHARGE) WILL BE APPLICABLE TO ITS ACCOUNT HOLDERS.
THE POLICIES ADOPTED BY THE OFF-TRACK BETTING CORPORATION IN  REGARD  TO
SECTION  FIVE  HUNDRED  THIRTY-TWO  OF THIS CHAPTER SHALL BE SUPPLIED IN
WRITING TO EVERY ACCOUNT HOLDER.

S. 7383                             7

  S 1012. LICENSED  ACCOUNT  WAGERING  AT  MULTI-JURISDICTIONAL  ACCOUNT
WAGERING PROVIDERS. A MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER MAY
ONLY BE LICENSED UNDER THE FOLLOWING CONDITIONS:
  1.  THE  MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER IS LICENSED IN
THE JURISDICTION IN WHICH IT OPERATES.
  2. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER POSSESSES APPRO-
PRIATE TOTALIZATOR AND ACCOUNTING  CONTROLS  WHICH  WILL  SAFEGUARD  THE
TRANSMISSION  OF  WAGERING DATA AND WILL KEEP A SYSTEM OF ACCOUNTS WHICH
WILL MAINTAIN A SEPARATE RECORD OF REVENUES COLLECTED  BY  THE  WAGERING
PROVIDER,  THE DISTRIBUTION OF SUCH REVENUES, AND AN ACCOUNTING OF COSTS
RELATIVE TO THE OPERATION OF THE WAGERING PROVIDER. WAGERS  PLACED  WITH
THE  MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER SHALL RESULT IN THE
COMBINATION OF ALL WAGERS PLACED AT THE HOST  TRACK  SO  AS  TO  PRODUCE
COMMON  PARI-MUTUEL  BETTING  POOLS  FOR THE CALCULATION OF ODDS AND THE
DETERMINATION OF PAYOUTS  FROM  SUCH  POOL,  PURSUANT  TO  SECTION  NINE
HUNDRED FIVE OF THIS CHAPTER.
  3.  THE  CHARACTER  AND  THE  BACKGROUND  OF  THE MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER IS IN THE PUBLIC INTEREST AND THE BEST  INTER-
EST OF HONEST HORSE RACING.
  4.  THE  MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER SHALL UTILIZE
THE SERVICES OF AN INDEPENDENT  THIRD  PARTY  TO  PERFORM  IDENTITY  AND
VERIFICATION  SERVICES WITH RESPECT TO NEW YORKERS ESTABLISHING WAGERING
ACCOUNTS.
  5. THE BOARD SHALL BE ALLOWED ACCESS TO THE PREMISES OF THE MULTI-JUR-
ISDICTIONAL ACCOUNT WAGERING PROVIDER TO VISIT, INVESTIGATE,  AND  PLACE
EXPERT  ACCOUNTANTS  AND  OTHER  PERSONS  IT  DESIRES  NECESSARY FOR THE
PURPOSE OF INSURING COMPLIANCE WITH THE RULES  AND  REGULATIONS  OF  THE
BOARD.
  6.  A  MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL PAY ON THE
WAGERS OF NEW YORK STATE  RESIDENTS:  (A)  A  PARI-MUTUEL  TAX  OF  FOUR
PERCENT  OF TAKEOUT; (B) A FEE OF THIRTY-FOUR PERCENT OF THE FIRST FIFTY
MILLION DOLLARS IN TAKEOUT AND FORTY-ONE PERCENT OF TAKEOUT  AMOUNTS  IN
EXCESS  OF  FIFTY  MILLION DOLLARS TO THE MARKET ORIGIN FEE ACCOUNT; AND
(C) A FEE OF FIVE PERCENT OF TAKEOUT TO THE COUNTY OF RESIDENCE  OF  THE
NEW  YORK  STATE  ACCOUNT HOLDER. IF THE COUNTY OF RESIDENCE IS WITHIN A
CITY WITH A POPULATION IN EXCESS OF ONE MILLION PEOPLE, THE FEE SHALL BE
PAID TO THE STATE. IN COUNTIES WHICH ARE MEMBERS OF AN OFF-TRACK BETTING
CORPORATION, THE PAYMENT SHALL BE MADE TO THE OFF-TRACK  BETTING  CORPO-
RATION.  THE  MULTI-JURISDICTION  ACCOUNT  HOLDER  SHALL  BE ENTITLED TO
DEDUCT FROM ITS MARKET ORIGIN FEE DISTRIBUTIONS MADE ON THE WAGER OF THE
NEW YORK STATE RESIDENT TO RACETRACKS OTHER  THAN  HOST  TRACKS.  IN  NO
EVENT  SHALL  THE  DEDUCTION  EXCEED  TWENTY-FIVE  PERCENT OF THE MARKET
ORIGIN FEE.
  S 2. Paragraphs a and b of subdivision 2 of section 108 of the racing,
pari-mutuel wagering and breeding law, as added by chapter  434  of  the
laws of 2002, are amended to read as follows:
  a.  The board shall promulgate rules and regulations pursuant to which
people may voluntarily exclude themselves from entering the premises  of
an  association  or  corporation  licensed or enfranchised under article
two, three, or four of this chapter or a facility licensed under section
one thousand [eight or one thousand nine] FOUR of this chapter.
  b. An association or corporation licensed or enfranchised under  arti-
cle  two,  three,  or  four of this chapter or a facility licensed under
section one thousand [eight or one thousand nine] FOUR of  this  chapter
shall not be liable to any self-excluded person or to any other party in
any  judicial  proceeding for any harm, monetary or otherwise, which may

S. 7383                             8

arise as a result of  a  self-excluded  person's  engaging  in  gambling
activity while on the list of self-excluded persons; provided that noth-
ing  contained  in  this paragraph shall limit the liability of any such
association,  corporation,  or  facility for any other acts or omissions
under any other statutory law or under the common law.
  S 3. Subparagraph (i) of paragraph a and subparagraph (i) of paragraph
b of subdivision 1 of section 318 of the  racing,  pari-mutuel  wagering
and  breeding law, subparagraph (i) of paragraph a as amended by chapter
281 of the laws of 1994 and subparagraph (i) of paragraph b  as  amended
by chapter 280 of the laws of 2001, are amended to read as follows:
  (i) shall pay to the commissioner of taxation and finance as a reason-
able  tax  for  the privilege of conducting pari-mutuel betting at races
run at race meetings held by such corporation  or  association,  a  tax,
which  is hereby levied, at the following rates: of total daily on-track
pools resulting from regular bets, one and six-tenths per centum; of the
total daily on-track pools resulting from multiple bets, one  and  thir-
ty-five  hundredths  per centum; of total daily on-track pools resulting
from exotic bets, four and eighty-five hundredths  per  centum;  and  of
total  daily  on-track pools resulting from super exotic bets, seven per
centum, plus fifty per centum of the breaks. Effective September  first,
nineteen  hundred  ninety-four,  such  tax  shall be one-half of one per
centum of all wagers. Such  association  or  corporation  shall  receive
credit as a reduction of the daily tax by the state for the privilege of
conducting  pari-mutuel betting of amounts equal to one and one-half per
centum of total daily pools resulting from the simulcast of such associ-
ation's or  corporation's  races  to  licensed  facilities  operated  by
regional  off-track  betting corporations in accordance with section one
thousand [eight] FOUR of this chapter; provided,  however,  that  in  no
event shall total daily credit exceed one and one half per centum of the
total  daily pool of such association or corporation. Provided, however,
that on and after September first, nineteen  hundred  ninety-four,  such
credit  shall be four-tenths percent of total daily pools resulting from
such simulcasting and that in no event shall  such  total  daily  credit
exceed  four-tenths  percent of the total daily pool of such association
or corporation. An amount equal to fifty per centum of such credit shall
be used to increase purses.   Provided, however,  that  for  any  twelve
month period beginning on April first in nineteen hundred ninety and any
year  thereafter,  each of the applicable rates set forth above shall be
increased by one-half of one per centum on all on-track bets of any such
racing association or corporation that did not expend an amount equal to
at least one-half of one per centum of  its  on-track  bets  during  the
immediately preceding calendar year for enhancements consisting of capi-
tal  improvements  as  defined by section three hundred nineteen of this
chapter, repairs to its physical plant, structures, and  equipment  used
in  its  racing or wagering operations, as certified by the state racing
and wagering board to the commissioner of taxation and finance no  later
than eighty days after the close of such calendar year, and five special
events  at  each track in each calendar year, not otherwise conducted in
the ordinary course of business,  the  purpose  of  which  shall  be  to
encourage,  attract  and  promote track attendance and encourage new and
continued patronage, which events shall be approved by  the  racing  and
wagering board for purposes of this subdivision. In the determination of
the amounts expended for such enhancements, the board shall consider the
average  of the two immediately preceding twelve month calendar periods.
Notwithstanding the foregoing no increase shall be imposed  unless  such
corporation  or  association has been afforded notice and opportunity to

S. 7383                             9

be heard. The racing and wagering board shall promulgate rules and regu-
lations to implement the provisions relating to notice and hearing.
  (i)  Of the sums retained by any other licensed harness racing associ-
ation or corporation other than those described in paragraph a  of  this
subdivision,  the  applicable  tax  rates for regular bets shall be six-
tenths of one per centum; for multiple bets shall be one  and  one-tenth
per  centum; for exotic bets shall be five and six-tenths per centum and
for super exotic bets shall be seven per centum, plus fifty  per  centum
of  the breaks. Effective September first, nineteen hundred ninety-four,
for all licensed harness racing associations and corporations which have
entered into a contract with their representative horsemen's association
on and after such date, such tax shall be one-half of one per centum  of
all wagers, plus fifty per centum of the breaks.
  Provided, however, that for any twelve month period beginning on April
first  in  nineteen  hundred ninety and any year thereafter, each of the
applicable rates set forth above shall be increased  by  one-quarter  of
one  per  centum  on all on-track bets of any such racing association or
corporation that did not expend an amount equal to at least one-half  of
one  per  centum  of  its on-track bets during the immediately preceding
calendar year for enhancements consisting  of  capital  improvements  as
defined  by  section  three hundred nineteen of this article, repairs to
its physical plant, structures, and equipment  used  in  its  racing  or
wagering operations, as certified by the state racing and wagering board
to  the  commissioner  of taxation and finance no later than eighty days
after the close of such calendar year, and five special events  at  each
track  in  each  calendar  year, not otherwise conducted in the ordinary
course of business, the purpose of which shall be to encourage,  attract
and  promote track attendance and encourage new and continued patronage,
which events shall be approved by the  racing  and  wagering  board  for
purposes  of  this subdivision. In this regard, expenditures by a county
agricultural society pursuant to section three hundred nineteen of  this
article  shall  be credited to the applicable harness racing association
or corporation for this purpose. In the  determination  of  the  amounts
expended  for  such enhancements, the board may consider the immediately
preceding twelve month calendar period or the average of the  two  imme-
diately  preceding  twelve  month  calendar periods. Notwithstanding the
foregoing no increase shall be imposed unless such corporation or  asso-
ciation  has  been  afforded a notice and opportunity to be heard and no
increase shall be imposed during nineteen  hundred  ninety-five  on  the
authorized  harness  racing  association  conducting a special seven day
harness race meeting that did not make such required expenditures during
nineteen hundred  ninety-four.  The  racing  and  wagering  board  shall
promulgate rules and regulations to implement the provisions relating to
notice and hearing.
  Such  associations or corporations shall receive credit as a reduction
of the daily tax by the state for the privilege of conducting pari-mutu-
el betting of amounts equal to one  per  centum  of  total  daily  pools
resulting  from  the  simulcast  of  such association's or corporation's
races to licensed facilities  operated  by  regional  off-track  betting
corporations  in  accordance  with  section one thousand [eight] FOUR of
this chapter, provided however, that in no event shall the  total  daily
credit exceed one per centum of the total daily pool of such association
or  corporation  which  tax  is  hereby  levied and shall be paid to the
commissioner of taxation and finance as a reasonable tax imposed by  the
state  for  the privilege of conducting pari-mutuel betting at races run
at race meetings held by  such  association  or  corporation.  Provided,

S. 7383                            10

however, that on and after September first, nineteen hundred ninety-four
such  credit shall be four-tenths percent of total daily pools resulting
from such simulcasting and that in no event shall such total daily cred-
it  exceed  four-tenths  percent of the total daily pool of such associ-
ation or corporation. The racing and wagering board shall report annual-
ly, before July first, to the director of the budget,  the  chairman  of
the  senate  finance committee and the chairman of the assembly ways and
means committee the extent to which such corporations  and  associations
utilized  such retained percentages and breakage for operations, mainte-
nance, capital improvements, advertising and  promotion,  administration
and general overhead and evaluate the effectiveness and make recommenda-
tions  with  respect to the application of the reduced rates of taxation
as provided for in this subparagraph  in  accomplishing  the  objectives
stated  therein.  Such  report  shall  also  specify the amounts of such
retained percentages and breakage  used  for  investments  not  directly
related  to racing activities and such amounts used to declare dividends
or other profit distributions, additions to capital stock, its sale  and
transfer  and  additions  to retained earnings.  Such reports shall also
include an analysis of any such agreements or proposals  to  conduct  or
otherwise expand wagers authorized under article ten of this chapter and
present  its  conclusions  with respect to the conduct of such wagering,
the nature of such proposals  and  agreements,  and  recommendations  to
ensure the future maintenance of the intent of this article.
  S  4. Subparagraph (v) of paragraph b of subdivision 3 and subdivision
6 of section 532 of the racing, pari-mutuel wagering and  breeding  law,
subparagraph (v) of paragraph b of subdivision 3 as added by chapter 286
of  the  laws  of  1985 and subdivision 6 as added by chapter 346 of the
laws of 1990, are amended to read as follows:
  (v) where the track conducting the race is located in  a  thoroughbred
special  betting  district  and  is simulcasting pursuant to section one
thousand [eight] SIX  of  this  chapter  outside  such  special  betting
district,  ninety  per  centum to the off-track betting operator and ten
per centum to the county in which such track is located.
  6. Notwithstanding any provision herein or  in  section  one  thousand
[nine]  SEVEN of this chapter to the contrary where the track conducting
the race is a thoroughbred track located in the Catskill region conduct-
ing a mixed meeting such surcharge shall  be  collected  on  all  wagers
placed  in  branch offices or simulcast theaters of a regional off-track
betting corporation. The  revenues  received  from  any  such  surcharge
imposed  in  accordance  with  this  section  plus  the  breaks shall be
distributed monthly as follows:
  a. one-fifth to the county in which such track is located;
  b. three-fifths to a regional track located in the region in which the
bet is placed in accordance with  provisions  of  section  five  hundred
twenty-seven  of this article, one-half thereof to be used for purses at
such regional track, except that in any region containing  two  or  more
regional tracks such tracks shall be entitled to an equal share;
  c.  one-fifth  to  be  retained by the off-track betting operator with
whom such bet originated as operating revenues.
  S 5. Section 105 of the racing, pari-mutuel wagering and breeding  law
is amended to read as follows:
  S  105. Supplementary regulatory powers of the board.  Notwithstanding
any inconsistent provision of law the board through its rules and  regu-
lations  or  in allotting dates for racing or in licensing race meetings
at which pari-mutuel betting is permitted shall  be  empowered  to:  (i)
permit  racing  at  which pari-mutuel betting is conducted on any or all

S. 7383                            11

dates from the first day of January  through  the  thirty-first  day  of
December,  inclusive  of  Sundays but exclusive of December twenty-fifth
and Palm Sunday and Easter Sunday; and  (ii)  fix  minimum  and  maximum
charges for admission at any race meeting. NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT THE ACCEPTANCE OF WAGERS, INCLUDING THE DISPLAY
OF  SIMULCAST  SIGNALS,  ON  OUT-OF-STATE  OR  OUT-OF-COUNTRY  RACES  BY
REGIONAL OFF-TRACK BETTING CORPORATIONS OR ANY OTHER  AUTHORIZED  ENTITY
ON  PALM SUNDAY TO THE EXTENT THAT SUCH ACCEPTANCE IS OTHERWISE CONSIST-
ENT WITH THIS CHAPTER.
  S 6. Section 503 of the racing, pari-mutuel wagering and breeding law,
subdivision 10 as amended, subdivision 12 as added and subdivision 13 as
renumbered by chapter 116 of the laws of 2001, is  amended  to  read  as
follows:
  S  503.  Powers  of  regional corporations. Subject to the general and
specific limitations [of sections two hundred twenty-two  through  seven
hundred  five]  of  this  chapter  and  the authority of the state board
pursuant to articles one and five-a of this  chapter,  each  corporation
shall have power:
  1. To sue and be sued;
  2. To have a seal and alter the same at pleasure;
  3.  To acquire, hold, lease, rent and dispose of personal property for
its corporate purposes;
  4. To acquire, in the name of the corporation, by purchase,  condemna-
tion,  gift,  grant  or  devise  or otherwise, and to use, real property
which  is  necessary  or  convenient  for  carrying  out  its  corporate
purposes; provided that the corporation shall not condemn any real prop-
erty  without  first  having  obtained  the consent of the chief elected
official in the jurisdiction in which such real property is located. All
real property acquired by  the  corporation  by  condemnation  shall  be
acquired  in  the  manner  provided  by law for the condemnation of real
property in the jurisdiction in which the real property is located;
  5. To make by-laws for the management and regulation of its affairs;
  6. To appoint officers, agents,  and  employees,  to  prescribe  their
qualifications, and to fix their compensation;
  7.  To  make contracts and leases, INCLUDING JOINT VENTURES WITH THIRD
PARTIES OR ENTITIES, and to execute all instruments necessary or conven-
ient to accomplish its corporate purposes;
  8. TO ENTER INTO, AMEND,  CANCEL  AND  TERMINATE  AGREEMENTS  FOR  THE
PERFORMANCE  WITH  AND  AMONG  OTHER  REGIONAL  OFF-TRACK BETTING CORPO-
RATIONS,  LICENSED  RACING  ASSOCIATIONS,  MULTI-JURISDICTIONAL  ACCOUNT
WAGERING PROVIDERS, AS DEFINED IN SECTION ONE THOUSAND ONE OF THIS CHAP-
TER,  THIRD PARTY JOINT VENTURERS OR OTHER ENTITIES, OF THEIR RESPECTIVE
FUNCTIONS, POWERS AND DUTIES ON A COOPERATIVE OR CONTRACT BASIS;
  9. ACTING THROUGH ITS BOARD OF DIRECTORS, TO NEGOTIATE  AND  IMPLEMENT
MERGERS,  ACQUISITIONS  OR  CONSOLIDATIONS  WITH OR AMONG OTHER REGIONAL
OFF-TRACK BETTING CORPORATIONS, THIRD PARTIES OR OTHER ENTITIES.
  [8.] 10. To construct such buildings, structures and facilities as may
be necessary;
  [9.] 11. To accept grants, loans and  contributions  from  the  United
States,  and  the  state  or  any agency or instrumentality of either of
them, or any participating county, or a city, or any  person,  including
gifts  or  transfers  by  bequest  or  otherwise, and to use the same or
expend the proceeds thereof for its corporate purposes;
  [10.] 12. In the manner and subject to the provisions [of sections two
hundred twenty-two through seven hundred  five]  of  this  chapter,  and
subject  to  the  rules and regulations of the state board, to establish

S. 7383                            12

and conduct within the region a system of off-track pari-mutuel  betting
on  horse  races,  and, if licensed to do so under article three of this
chapter, conduct harness race meetings;
  [11.]  13.  a.  To  promulgate,  amend and repeal such rules and regu-
lations consistent with the provisions [of sections two hundred  twenty-
two through seven hundred five] of this chapter as it may deem necessary
or  desirable  to carry out the purposes of this article. Such rules and
regulations shall have the force and effect of law;
  b. No rule or regulation promulgated by a corporation pursuant to  the
provisions  of  this subdivision shall be effective until a copy thereof
is filed with the clerk of each participating county;
  c. Any violation of any rule or  regulation,  filed  with  the  county
clerk  of  each county in which such corporation operates and designated
by the letter "R" by resolution of the board of directors of the  corpo-
ration, shall be a violation and shall be punishable by imprisonment for
not  more  than three months, or by a fine of not more than one thousand
dollars, or by both such imprisonment and fine. All such fines collected
shall be payable to the county comptroller in the county  in  which  the
violation  occurred  and  shall  be paid by him into the general fund of
such county. Any such rule shall be effective, notwithstanding that  any
act  or omission made an offense or punishable thereby may be a crime or
violation or punishable under any other provision of law;
  [12.] 14. When licensed to conduct harness race meetings  pursuant  to
article three of this chapter, western regional off-track betting corpo-
ration  shall  be authorized to enter into an agreement to make payments
in lieu of taxes to the Batavia city school district in an  amount  that
is  based  upon the assessed value of Batavia Downs race track as of the
first day of January, nineteen hundred ninety-eight and to enter into an
agreement with the county of Genesee to pay five-tenths of  one  percent
of  the  total deposits in pools resulting from the acceptance of simul-
cast wagering at Batavia Downs race track in order  to  compensate  such
county  for losses that may occur as the result of the closure of branch
offices in said county.
  [13.] 15. To perform such other acts and engage in such  other  activ-
ities  as  may  be  necessary  and  proper for exercising its powers and
performing its duties under this article.
  S 7. Subdivision 3 of section 520 of the racing, pari-mutuel  wagering
and breeding law is amended to read as follows:
  3.  Without  limiting the generality of the foregoing, the board shall
establish such general regulations to  limit  the  access  to  off-track
betting  establishments  of  persons  not  permitted to bet therein, the
availability or utilization of publications, written materials or commu-
nications equipment therein as the board determines to be in the  inter-
est  of public order and the furtherance of the objectives of this arti-
cle [and shall prohibit the sale of food and beverages in all facilities
where bets may be placed]. The board shall also provide for the  methods
for the results of races to be communicated to regional corporations and
disseminated thereby.
  S  8. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
and breeding law is amended to read as follows:
  2. Ninety-five percent  of  the  balance  of  such  account  remaining
unclaimed  as  of the last day of February of such year shall be paid to
the state tax commission by March fifteenth. On or before April tenth of
each year the balance of such account and any  other  unclaimed  amounts
received  in the course of conducting off-track betting shall be paid by
such corporation to the state tax commission. A penalty of five  percent

S. 7383                            13

and  interest  at the rate of one percent per month from the due date to
the date of payment of the unclaimed  balance  due  March  fifteenth  or
April  tenth,  as the case may be, shall be payable in case such balance
is  not  paid  when  due.  Such  amounts,  interest  and  penalties when
collected by the state tax commission shall be deposited into the gener-
al fund of the state treasury.   NOTWITHSTANDING THE FOREGOING,  IN  THE
CASE OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, THE PAYMENTS TO
THE  STATE  TAX  COMMISSION  DESCRIBED IN AND OTHERWISE MANDATED BY THIS
SUBDIVISION SHALL NOT BE MADE, AND THE  FULL  BALANCE  OF  SUCH  ACCOUNT
REMAINING  UNCLAIMED  AND  ALL  OTHER  UNCLAIMED AMOUNTS RECEIVED IN THE
COURSE OF CONDUCTING OFF-TRACK BETTING  BY  SUCH  CORPORATION  SHALL  BE
RETAINED BY SUCH CORPORATION FOR ITS CORPORATE PURPOSES.
  S 9. Section 530 of the racing, pari-mutuel wagering and breeding law,
as  amended  by  chapter  18  of the laws of 2008, is amended to read as
follows:
  S 530. Job  security  for  track  employees.  Plans  of  operation  of
regional  off-track  betting  corporations [shall] MAY include provision
for job security for employees of racetracks within each region  compat-
ible  with  and  in  furtherance  of  the objectives of this article and
subject to the approval of the state  racing  and  wagering  board.  Job
security  agreements  that may be concluded from time to time after July
first, nineteen hundred seventy-three between track  employee  organiza-
tions  and  the New York city off-track betting corporation or any other
regional off-track betting corporation shall be subject to the  approval
of  the  board  and  when approved shall be deemed a part of the plan of
operation of  such  corporation  and  any  other  regional  corporation;
provided,  however,  that nothing in this article or any other provision
of this chapter shall be construed to require or empower  the  board  to
abrogate  job  security  agreements  between the New York city off-track
betting corporation and any track employee organization,  in  effect  on
July  first, nineteen hundred seventy-three and any such contracts shall
be deemed to be a part of the plan of operation of such corporation.
  S 10. Subdivisions 1, 3 and 3-a of section 532 of the racing, pari-mu-
tuel wagering and breeding law, subdivision 1 and the opening  paragraph
of subdivision 3 as amended by chapter 115 of the laws of 2008, subpara-
graph (v) of paragraph b of subdivision 3 as added by chapter 286 of the
laws of 1985, subparagraph (vi) of paragraph b of subdivision 3 as added
by chapter 365 of the laws of 2009 and subdivision 3-a as added by chap-
ter 346 of the laws of 1990, are amended to read as follows:
  1.    Notwithstanding  any  other provision of law, each regional off-
track betting corporation, or off-track betting operator, including  the
New  York  city  off-track  betting  corporation,  conducting  off-track
betting [shall] MAY, IN ACCORDANCE WITH PROVISIONS OF ITS PLAN OF OPERA-
TION SUBMITTED TO THE BOARD, impose a surcharge of UP TO five per centum
on the portion of pari-mutuel wagering pools  distributable  to  persons
having  placed  bets at off-track betting facilities located within such
region. The revenues derived from such surcharge, plus the breaks, shall
be held separate and apart from any amounts otherwise authorized  to  be
retained from pari-mutuel pools. Such surcharge is hereby levied subject
to  the conditions set forth in this subdivision and article ten of this
chapter.
  [3.] 2. The revenues received from any surcharge imposed  by  subdivi-
sion one of this section, plus the breaks, shall be distributed monthly,
as follows:
  a.  Fifty  per  centum  [to such city] (I) IN THE CASE OF THE NEW YORK
CITY OFF-TRACK BETTING CORPORATION, TO SUCH CORPORATION, or (II) IN  THE

S. 7383                            14

CASE  OF THE OTHER REGIONAL OFF-TRACK BETTING CORPORATIONS, to the coun-
ties and cities entitled to receive revenues from  the  regional  corpo-
ration  pursuant  to section five hundred sixteen of this chapter and in
the  same  proportion  as  provided  therein, or to an off-track betting
operator; and
  b. The balance as follows:
  (i) where the track conducting the race on which the bet was placed is
located within a city with a population in excess of one  hundred  thou-
sand, to such city;
  (ii)  where  the track conducting the race on which the bet was placed
is not located within a city with a population in excess of one  hundred
thousand, to the county in which such track is located;
  (iii)  where the track conducting the race on which the bet was placed
is located partially within a city with a population in  excess  of  one
million  and  partially  within a county, twenty-five per centum of such
balance to the city and the remainder to the county; and
  (iv) where the track conducting the race on which the bet  was  placed
is  located outside the state, [in the same manner as described in para-
graph a of this subdivision] TO THE OFF-TRACK BETTING CORPORATION  WHERE
THE WINNING WAGER WAS PLACED.
  (v)  where  the track conducting the race is located in a thoroughbred
special betting district and is simulcasting  pursuant  to  section  one
thousand  eight  of  this chapter outside such special betting district,
ninety per centum to the off-track betting operator and ten  per  centum
to the county in which such track is located.
  (vi)  for  the  period  of  September  first, two thousand seven until
August thirty-first, two thousand twelve and where the track  conducting
the  race  on which the bet was placed is a harness track located in the
county of Erie, to such track.
  [3-a.] 3. Such five per centum surcharge  herein  provided  is  hereby
increased  by  a  supplemental  UP  TO  one  per centum surcharge on the
portion of pari-mutuel wagering pools  of  multiple,  exotic  and  super
exotic  bets  distributable  to  persons having placed bets at off-track
betting facilities to be distributed in accordance with  the  provisions
of  section  five  hundred nine-a or six hundred nine-a of this chapter,
whichever may be applicable to the  corporation  with  which  such  bets
originated.
  S  11. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 533 to read as follows:
  S 533. REBATES AND OTHER REWARDS.  1. THE TERM "REBATE" SHALL MEAN THE
PORTION  OF  THE  RETAINED  COMMISSION  FROM  WAGERING  ACCEPTED  BY  AN
OFF-TRACK  BETTING  CORPORATION  AWARDED  TO BETTORS THAT IS INTENDED TO
REDUCE OR REFUND ALL OR A PORTION OF THE  TAKEOUT  TO  SUCH  BETTORS.  A
REBATE  SHALL INCLUDE REFUNDS TO BETTORS ON ANY PORTION OR PERCENTAGE OF
THE FULL FACE VALUE OF A PARI-MUTUEL WAGER, OR INCREASING THE PAYOFF OF,
OR PAYING A BONUS ON, A WINNING PARI-MUTUEL WAGER, AS WELL AS AWARDS  OF
MERCHANDISE,  SERVICES  (INCLUDING ADMISSION, SEATING, PROGRAMS OR OTHER
PERIODICALS), FREE OR REDUCED  COST  PARI-MUTUEL  WAGERS,  AND  MONETARY
AWARDS.
  2. WITH THE CONSENT OF THE HOST RACETRACK, AND FOLLOWING APPROVAL FROM
THE  BOARD,  AN  OFF-TRACK  BETTING CORPORATION MAY OFFER REBATES ON THE
RACES RUN AT SUCH TRACK.
  3. THE BOARD MAY APPROVE  REBATES  OFFERED  BY  AN  OFF-TRACK  BETTING
CORPORATION PROVIDED, AT A MINIMUM, THERE IS COMPLIANCE WITH EACH OF THE
FOLLOWING REQUIREMENTS:

S. 7383                            15

  A.  THE  REBATES, AND REBATE PROGRAM, HAVE BEEN AUTHORIZED BY ALL HOST
RACETRACKS ON WHOSE RACES THE DOLLAR VALUE OF WAGERS PLACED  BY  BETTORS
SHALL  FORM THE BASIS, IN WHOLE OR IN PART, FOR THE DETERMINATION OF THE
AMOUNT OR CHARACTER OF THE REBATE;
  B.  THE  OFF-TRACK  BETTING CORPORATION FULLY AND ACCURATELY DISCLOSES
THE REBATE PROGRAM TO THE BOARD, WHICH SHALL INCLUDE DISCLOSURE  OF  THE
MONETARY VALUE OF ALL AWARDS REBATED TO BETTORS IN THE PREVIOUS CALENDAR
YEAR,  AND  THE  TERMS  AND CONDITIONS GOVERNING THE AWARD OF REBATES TO
INDIVIDUAL BETTORS FOR THE UPCOMING CALENDAR YEAR;
  C. THE OFF-TRACK BETTING  CORPORATION  PROVIDES  ASSURANCES  THAT  THE
AMOUNTS  GOVERNING THE REBATES ARE DETERMINED SOLELY BY: (I) THE AMOUNTS
WAGERED BY THE BETTOR; (II) THE TAKEOUT ON THE BET  ESTABLISHED  AT  THE
HOST TRACK; AND/OR (III) HOW FREQUENTLY THE BETTOR WAGERS.
  4.  NOTHING  CONTAINED  IN THIS SECTION SHALL BE CONSTRUED AS LIMITING
THE AUTHORITY OF THE BOARD TO PROMULGATE RULES AND REGULATIONS GOVERNING
REBATES AND REBATE PROGRAMS OFFERED BY AN OFF-TRACK BETTING CORPORATION,
WHICH RULES AND REGULATIONS MAY IMPOSE ADDITIONAL AND  FURTHER  REQUIRE-
MENTS  AND  CONDITIONS  UPON  OFF-TRACK  BETTING CORPORATIONS SEEKING TO
OFFER, OR OFFERING, REBATES, THAN AS SET FORTH  IN  SUBDIVISION  TWO  OF
THIS SECTION.
  S  12.  Section  225.00  of the penal law is amended by adding two new
subdivisions 13 and 14 to read as follows:
  13.  "ACCOUNT WAGERING" MEANS A FORM OF PARI-MUTUEL WAGERING ON  HORSE
RACES  IN WHICH A PERSON ESTABLISHES AN ACCOUNT WITH AN ACCOUNT WAGERING
LICENSEE, AND SUBSEQUENTLY ISSUES WAGERING INSTRUCTIONS  CONCERNING  THE
FUNDS  IN  THIS ACCOUNT, THEREBY AUTHORIZING THE LICENSEE TO PLACE HORSE
RACE WAGERS ON BEHALF OF THE ACCOUNT HOLDER.
  14. "MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER" MEANS A  BUSINESS
ENTITY  DOMICILED  OUTSIDE OF NEW YORK STATE THAT IS LICENSED IN ANOTHER
STATE OR JURISDICTION TO OFFER PARI-MUTUEL ACCOUNT WAGERING ON RACES  IT
SIMULCASTS  AND  OTHER  RACES  OFFERED  IN  ITS WAGERING MENU TO PERSONS
LOCATED IN OR OUT OF  THE  STATE  OR  OTHER  JURISDICTION  ISSUING  SUCH
LICENSE.
  S  13.  The penal law is amended by adding two new sections 225.45 and
225.50 to read as follows:
S 225.45 CONDUCTING ACCOUNT WAGERING WITHOUT A  LICENSE  IN  THE  SECOND
           DEGREE.
  A PERSON IS GUILTY OF CONDUCTING ACCOUNT WAGERING WITHOUT A LICENSE IN
THE  SECOND DEGREE WHEN HE OR IT KNOWINGLY ACCEPTS OR OFFERS OR SEEKS TO
ACCEPT ACCOUNT WAGERS ON HORSE RACES FROM  BETTORS  LOCATED  WITHIN  THE
STATE BUT IS NOT APPROVED TO DO SO AND LICENSED AS A MULTI-JURISDICTION-
AL  ACCOUNT  WAGERING  PROVIDER,  OR  OTHER  AUTHORIZED ACCOUNT WAGERING
LICENSEE, BY THE STATE RACING AND WAGERING BOARD IN ACCORDANCE WITH  THE
PROVISIONS OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
  CONDUCTING  ACCOUNT WAGERING WITHOUT A LICENSE IN THE SECOND DEGREE IS
A CLASS D FELONY.
S 225.50 CONDUCTING ACCOUNT WAGERING WITHOUT  A  LICENSE  IN  THE  FIRST
           DEGREE.
  A PERSON IS GUILTY OF CONDUCTING ACCOUNT WAGERING WITHOUT A LICENSE IN
THE  FIRST  DEGREE WHEN HE OR IT KNOWINGLY ACCEPTS OR OFFERS OR SEEKS TO
ACCEPT ACCOUNT WAGERS ON HORSE RACES FROM  BETTORS  LOCATED  WITHIN  THE
STATE BUT IS NOT APPROVED TO DO SO AND LICENSED AS A MULTI-JURISDICTION-
AL  ACCOUNT  WAGERING  PROVIDER,  OR  OTHER  AUTHORIZED ACCOUNT WAGERING
LICENSEE, BY THE STATE RACING AND WAGERING BOARD IN ACCORDANCE WITH  THE
PROVISIONS  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND THE

S. 7383                            16

AGGREGATE VALUE OF ALL SUCH ACCOUNT WAGERS IS FIFTY THOUSAND DOLLARS  OR
GREATER.
  CONDUCTING ACCOUNT WAGERING WITHOUT A LICENSE IN THE FIRST DEGREE IS A
CLASS C FELONY.
  S 14. This act shall take effect immediately.