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

                                  7076

                            I N  S E N A T E

                             April 23, 2014
                               ___________

Introduced  by  Sen. BONACIC -- (at request of the New York State Gaming
  Commission) -- read twice and ordered printed, and when printed to  be
  committed to the Committee on Racing, Gaming and Wagering

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
  relation to oversight of a franchised racing corporation and  to  make
  technical amendments thereto

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

  Section 1. Subparagraphs (iii), (iv),  (vii),  (xiii)  and  (xvii)  of
paragraph  a  of subdivision 8 of section 212 of the racing, pari-mutuel
wagering and breeding law, as added by chapter 18 of the laws  of  2008,
are amended to read as follows:
  (iii)  oversee,  monitor  and  review all significant transactions and
operations of the franchised corporation  authorized  by  this  chapter;
provided,  however,  that  nothing  in  this  section shall be deemed to
reduce, diminish or impede the authority of the state [racing and wager-
ing board] GAMING COMMISSION to, pursuant to article one of  this  chap-
ter, determine and enforce compliance by the franchised corporation with
terms  of racing laws and regulations. Such oversight shall include, but
not be limited to:
  (A) review and make recommendations concerning  the  annual  operating
budgets of such franchised corporation;
  (B)  review and make recommendations concerning operating revenues and
the establishment of a financial plan;
  (C) review and make recommendations  concerning  accounting,  internal
control systems and security procedures;
  (D)  review  such  franchised  corporation's  revenue  and expenditure
[polices] POLICIES, which shall include collective bargaining agreements
management and employee compensation plans, vendor contracts and capital
improvement plans;
  (E) review such franchise  corporation's  compliance  with  the  laws,
rules and regulations applicable to its activities;
  (F)  make recommendations for establishing model governance principles
to improve accountability and transparency; and

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

                                                           LBD13909-02-4

S. 7076                             2

  (G) receive, review,  approve  or  disapprove  capital  expense  plans
submitted annually by the franchised corporation.
  (iv) evaluate, review and approve the racing franchisee's selection of
a  vendor  or  vendors  to  contract with the franchised corporation for
provision of [totalizator] TOTALISATOR services, and manage, subject  to
the  franchised  corporation's  unilateral right to opt out, directly or
indirectly, integration of any offered internet wagering  platform.  The
franchise  oversight  board shall consider in its evaluation of any such
proposed vendor their ability to reduce  the  [totalizator]  TOTALISATOR
expenses  and  general  development and production costs of any internet
wagering platform of an authorized off-track betting corporation and the
state racing franchise holder.
  (vii) review and  provide  any  recommendations  on  all  simulcasting
contracts  (buy and sell) that are also subject to prior approval of the
[racing and wagering board] STATE GAMING COMMISSION;
  (xiii) require the franchised corporation  to  make  all  records  and
documents pertaining to its financial practices, and other documents and
records  necessary to carry out its duties, INCLUDING WITHOUT LIMITATION
ANY REPORTS OF INDEPENDENT BUSINESS INTEGRITY COUNSEL RETAINED  PURSUANT
TO  SUBDIVISION  FIVE  OF SECTION TWO HUNDRED SIX OF THIS ARTICLE.  SUCH
REPORTS ARE NOT PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE SET FORTH  IN
SECTION  FORTY-FIVE HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES OR
OTHERWISE IN RELATION TO THIS  MANDATORY  DISCLOSURE  TO  THE  FRANCHISE
OVERSIGHT  BOARD,  BUT  SUCH  REPORTS RETAIN SUCH PRIVILEGE IN REGARD TO
OTHER PARTIES UNLESS THE FRANCHISE OVERSIGHT  BOARD  NEEDS  TO  DISCLOSE
SUCH  REPORTS  TO  PROMOTE OR ENSURE COMPLIANCE BY THE FRANCHISED CORPO-
RATION WITH THE LAWS AND RULES OF THE STATE OF NEW  YORK.  SUCH  RECORDS
AND DOCUMENTS SHALL BE available to the franchise oversight board within
thirty days of a written request;
  (xvii)  request and accept the assistance of any state agency, includ-
ing but not limited to, the [racing and  wagering  board]  STATE  GAMING
COMMISSION,  the  [division  of the lottery] office of parks, recreation
and historic preservation, the department of environmental  conservation
and  the  department  of  taxation and finance, in obtaining information
related to the franchised corporation's compliance with the terms of the
franchise agreement; and
  S 2. This act shall take effect  immediately;  provided,  however  the
amendments to section 212 of the racing, pari-mutuel wagering and breed-
ing  law made by section one of this act shall not affect the expiration
and repeal of such section pursuant to chapter 354 of the laws  of  2005
and shall expire and be deemed repealed therewith.