NY State Assembly Bill 2009-A9391

Assembly Bill A9391

2009-2010 Legislative Session

Relates to combining the Nassau and New York city regional off-track betting corporations into the metropolitan off-track betting corporation; repealer

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to racing and wagering

2009-A9391 (ACTIVE) - Details

Current Committee:: Assembly Racing And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Rpld & add §501 sub 6, 9 & 11, §502, §505 sub 5, §507 sub 1, §516 sub 2, rpld Art 6, amd §§503, 519 & 527, RWB L; amd 1617-a, Tax L

2009-A9391 (ACTIVE) - Summary

Relates to combining the Nassau and New York City regional off-track betting corporations into the metropolitan off-track betting corporation.

2009-A9391 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A9391

TITLE  OF  BILL:    An act to amend the racing, pari-mutuel wagering and
breeding law and the tax law, in relation to combining  the  Nassau  and
New York city regional off-track betting corporations into the metropol-
itan  off-track  betting corporation and to repeal certain provisions of
the racing, pari-mutuel wagering and breeding law relating thereto

PURPOSE OR GENERAL IDEA OF BILL:  This legislation would consolidate the
New York City OTB and the Nassau County OTB into the "Metropolitan OTB",
authorizes video lottery terminals at Nassau County's Belmont  Racetrack
on  the same basis as is currently at its sister facility Aqueduct Race-
track, and relocates the headquarters of the Metropolitan OTB  to  Free-
port, NY.

SUMMARY OF SPECIFIC PROVISIONS:  Section 1. Amends the Racing and Wager-
ing Law section 501 to expand certain definitions.

Section  2.  Amends the Racing and Wagering Law section 502 to establish
Metropolitan OTB.

Section 3. Amends the Racing and Wagering Law section 503 to require the
Metropolitan OTB to file rules and regulations  with  the  Secretary  of
State.

Section 4. Amends the Racing and Wagering Law section 505 to require the

Metropolitan  OTB to locate its headquarters at the Time Equities Build-
ing in Freeport, NY.

Section 5. Amends the Racing and  Wagering  Law  section  507  to  allow
certain corporations to enter into contracts.

Section  6.  Amends  the  Racing and Wagering Law section 516 to require
revenues of the Metropolitan OTB to be distributed among the  state  and
the  county  of  Nassau on the basis of the proportion of the total off-
track pari-mutuel wagering accepted by the corporation during the previ-
ous calendar quartet that originated in the branch  offices  located  in
New York City and Nassau county.

Section  7. Amends the Racing and Wagering Law section 519 to modify the
definition of "Region."

Section 9. Amends the Racing and Wagering Law section  527  to  requires
bills  to  be  paid prior to disposition of the retained commission from
pools resulting from regular, multiple or exotic bets.

Section 9. Repeals the Racing and Wagering Law article 6, the  New  York
city off-track betting corporation

Section  10.  Amends  the  Tax Law section 1617-a, to allow Belmont Park
racetrack to operate video lottery gaming.

Section 11. Requires any reference to the "New York  City  OTB"  or  the
"Nassau County OTB" shall refer to the "Metropolitan OTB."

Section 12. Effective date.

JUSTIFICATION:   There is an immediate need to take action to rescue the
NYC-OTB from its current economic crises and looming bankruptcy, and  to
take  definitive  steps to avoid the same fate for the Nassau-OTB. While
there is a real need to effect  more  efficient  and  streamlined  oper-
ations,  the  systemic  malady  is  with  the non-business model that is
foisted upon the ROTBs by the current legislative scheme whereunder each
such business entity must distribute its  income  before  its  pays  its
bills. Unless and until that is addressed, the ROTBs will not be able to
adjust  to  and  weather  economic  downturns  and the attendant drastic
reductions in the so-called "Handles" that fund their bottom lines.

NYC-OTB and Nassau-OTB pump over a billion and a half  dollars  directly
into  the  State's economy and supplies even more economic fuel thru the
more than 2000 full time workers currently employed by  those  entities.
It  is  estimated  that  approximately  70% of that work force will lose
their jobs if the NYC-OTB proceeds to bankruptcy  (with  Nassau-OTB  not
far  behind) if the current system is not fixed. In light of the special
interests and the hard-fought nature of their respective  participations
in  ROTE  gross  income,  it  is  not practical to attempt to rework the
percentages of the take-outs. However, a conversion to a business  model
whereby  the  profits are distributed after expenses will allow for both
economic viability , creditor, acceptance or work-outs and an influx  of
new capitalization at favorable rates. In order to save jobs and a reli-
able  cash source that is an important element of the machine that fuels
this important segment of  the  State's  economy,  the  ROTB's  must  be
allowed to pay their bills before any distributions are made.

PRIOR LEGISLATIVE HISTORY:

FISCAL IMPLICATIONS:

EFFECTIVE DATE:  This act shall take effect immediately.

2009-A9391 (ACTIVE) - Bill Text download pdf

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

                                  9391

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced by M. of A. HOOPER -- read once and referred to the Committee
  on Racing and Wagering

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law and
  the tax law, in relation to combining the Nassau  and  New  York  city
  regional  off-track  betting  corporations  into the metropolitan off-
  track betting corporation and to  repeal  certain  provisions  of  the
  racing, pari-mutuel wagering and breeding law relating thereto

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

  Section 1. Subdivisions 6, 9 and 11 of  section  501  of  the  racing,
pari-mutuel  wagering and breeding law are REPEALED and three new subdi-
visions 6, 9 and 11 are added to read as follows:
  6. "COST OF CORPORATION'S FUNCTIONS." ALL  PREDISTRIBUTION  COSTS  AND
EXPENSES INCURRED BY THE CORPORATION IN CONNECTION WITH CARRYING OUT THE
FUNCTIONS  AS  DESCRIBED BY THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO,
OPERATING EXPENSES OF THE CORPORATION, PENSION AND OTHER POST-EMPLOYMENT
EXPENSES, THE COSTS OF ACQUISITION, CONSTRUCTION OR EQUIPMENT OF  BRANCH
OFFICES  AND  OTHER  FACILITIES OF THE CORPORATION, A REASONABLE RESERVE
FUND OF NO MORE THAN THREE PER CENTUM OF NET  PRE-DISTRIBUTION  REVENUE,
AND  INTEREST  AND PRINCIPAL ON BONDS, NOTES OR OTHER OBLIGATIONS OF THE
CORPORATION WHETHER ISSUED TO FINANCE THE ACQUISITION,  CONSTRUCTION  OR
EQUIPMENT OF SUCH OFFICES, FACILITIES OR PREMISES, OR OTHERWISE.
  9. "GOVERNING BODY." THE APPROPRIATE STATE OR COUNTY LEGISLATIVE BODY.
  11.  "ENABLING  LEGISLATION." AN ACT OF THE STATE LEGISLATURE AND/OR A
LOCAL LAW, ORDINANCE OR RESOLUTION SUBJECT TO  A  PERMISSIVE  REFERENDUM
PURSUANT TO THE MUNICIPAL HOME RULE LAW.
  S  2. Section 502 of the racing, pari-mutuel wagering and breeding law
is REPEALED and a new section 502 is added to read as follows:
  S 502. ESTABLISHMENT OF REGIONAL OFF-TRACK BETTING CORPORATIONS.  1. A
REGIONAL OFF-TRACK BETTING CORPORATION IS HEREBY  ESTABLISHED  FOR  EACH
REGION,  EXCEPT  THE NEW YORK CITY AND NASSAU COUNTY REGIONS FOR WHICH A
NEW YORK CITY-NASSAU COUNTY OFF-TRACK BETTING CORPORATION  (HEREINAFTER,
THE  "METROPOLITAN  OTB") ESTABLISHED PURSUANT TO AND SUBJECT TO ARTICLE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD15277-01-9

A. 9391                             2

SIX OF THIS CHAPTER SHALL CONSTITUTE THE REGIONAL CORPORATION  AND  SUCH
ARTICLE  SIX  SHALL  GOVERN  SUCH  NEW YORK CITY-NASSAU COUNTY OFF-TRACK
BETTING CORPORATION. EACH REGIONAL CORPORATION SHALL BE A BODY CORPORATE
AND  POLITIC CONSTITUTING A PUBLIC BENEFIT CORPORATION. EACH CORPORATION
SHALL BE ADMINISTERED BY A BOARD OF DIRECTORS CONSISTING OF TWO  MEMBERS
FROM  EACH  PARTICIPATING  COUNTY  CONTAINING A CITY OF OVER ONE HUNDRED
FIFTY THOUSAND IN POPULATION, ACCORDING TO THE LAST FEDERAL CENSUS,  AND
ONE  MEMBER  FROM  EACH  OTHER PARTICIPATING COUNTY. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, THE MEMBERS SHALL  BE  APPOINTED
BY THE COUNTY GOVERNING BODY, AND MAY, AT THE DISCRETION OF SUCH GOVERN-
ING  BODY  OF  COUNTIES WHICH HAVE A POPULATION OF LESS THAN TWO HUNDRED
THOUSAND, INCLUDE SITTING MEMBERS OF SUCH GOVERNING BODY. A MEMBER OF  A
GOVERNING  BODY  WHO  IS APPOINTED A DIRECTOR AFTER JULY FIRST, NINETEEN
HUNDRED NINETY SHALL NOT BE COMPENSATED  BY  THE  REGIONAL  CORPORATION;
PROVIDED,  HOWEVER,  THAT  THE MAYOR OF A CITY OF OVER ONE HUNDRED FIFTY
THOUSAND THAT HAS ELECTED TO PARTICIPATE IN THE MANAGEMENT OF  A  CORPO-
RATION  PURSUANT  TO  SUBDIVISION  TWO  OF  THIS SECTION SHALL, WITH THE
APPROVAL OF THE CITY'S LEGISLATIVE BODY, APPOINT ONE OF THE  MEMBERS  TO
WHICH  THE  COUNTY  CONTAINING SUCH CITY IS ENTITLED. IN THE CASE OF THE
CORPORATION ESTABLISHED FOR THE SUFFOLK REGION, THE BOARD  OF  DIRECTORS
OF  EACH  CORPORATION  SHALL  CONSIST  OF THREE MEMBERS APPOINTED BY THE
GOVERNING BODY OF EACH COUNTY, NOT  MORE  THAN  TWO  OF  WHOM  SHALL  BE
MEMBERS  OF  THE  SAME POLITICAL PARTY.  IN THE CASE OF THE METROPOLITAN
OTB, THE BOARD OF DIRECTORS SHALL CONSIST OF FIVE MEMBERS, TWO APPOINTED
BY THE GOVERNOR ON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT OF  THE
SENATE,  TWO  APPOINTED  BY  THE  GOVERNOR  ON THE RECOMMENDATION OF THE
SPEAKER OF THE ASSEMBLY AND ONE APPOINTED BY THE GOVERNOR, NOT MORE THAN
THREE OF WHOM SHALL BE MEMBERS OF THE SAME PARTY.  EACH  DIRECTOR  SHALL
SERVE  AT THE PLEASURE OF THE GOVERNING BODY, GOVERNOR OR MAYOR APPOINT-
ING HIM, AS THE CASE MAY BE. THE MEMBER APPOINTED BY THE GOVERNOR  SHALL
BE THE CHAIR TO SERVE A TERM OF ONE YEAR.
  2.  A  CITY  WITH  A  POPULATION  OF  OVER ONE HUNDRED FIFTY THOUSAND,
ACCORDING TO THE LAST FEDERAL CENSUS, MAY ELECT TO  PARTICIPATE  IN  THE
MANAGEMENT AND REVENUES OF A REGIONAL CORPORATION IF THE COUNTY IN WHICH
SUCH  CITY IS LOCATED HAS ELECTED TO BECOME A PARTICIPATING COUNTY. SUCH
ELECTION SHALL BE BY ENABLING LEGISLATION. UPON SUCH ELECTION, SUCH CITY
SHALL PARTICIPATE IN THE AMOUNT OF ANY LOANS OR CONTRIBUTIONS MADE OR TO
BE MADE BY THE PARTICIPATING COUNTY CONTAINING THE CITY  TO  THE  CORPO-
RATION,  PURSUANT  TO  SECTION  FIVE HUNDRED SIX OF THIS ARTICLE, IN THE
PROPORTION THAT SUCH CITY WILL PARTICIPATE IN NET  REVENUES  PAYABLE  TO
SUCH  COUNTY OR SUCH OTHER EQUITABLE ARRANGEMENT AS SHALL BE APPROVED BY
THE BOARD.
  3. UPON THE PASSAGE OF ENABLING LEGISLATION BY THE GOVERNING  BODY  OF
NOT  LESS THAN THREE COUNTIES WITHIN A REGION REPRESENTING NOT LESS THAN
THIRTY PERCENT OF THE POPULATION OF SUCH REGION, AS  DETERMINED  BY  THE
LAST  FEDERAL  CENSUS,  OR  IN  THE CASE OF THE SUFFOLK REGION, UPON THE
PASSAGE OF ENABLING LEGISLATION BY THE GOVERNING BODY OF SUFFOLK COUNTY,
OR IN THE CASE OF THE METROPOLITAN REGION, UPON THE PASSAGE OF  ENABLING
LEGISLATION  BY THE LEGISLATURE OF THE STATE OF NEW YORK, OR IN THE CASE
OF THE MID-HUDSON REGION UPON THE PASSAGE OF ENABLING LEGISLATION BY THE
GOVERNING BODY OF THE COUNTY OF WESTCHESTER AND OF THE GOVERNING BODY OF
ONE OTHER COUNTY IN  SUCH  REGION,  AND  FOLLOWING  THE  APPOINTMENT  OF
MEMBERS  OF THE BOARD OF DIRECTORS, SUCH CORPORATION SHALL FILE WITH THE
SECRETARY OF STATE AND WITH  THE  STATE  RACING  AND  WAGERING  BOARD  A
CERTIFICATE SETTING FORTH:
  A. THE DATE OF PASSAGE OF THE ENABLING LEGISLATION;

A. 9391                             3

  B.  THE  NAME  OF  THE  AGENCY,  WHICH SHALL BE THE NAME OF THE REGION
FOLLOWED BY THE WORDS "REGIONAL OFF-TRACK BETTING CORPORATION"; AND
  C. THE NAMES OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THE CHAIR.
  4. EACH OF THE COUNTIES OF THE REGION THAT HAVE NOT BECOME PARTICIPAT-
ING COUNTIES AT THE TIME OF FILING OF THE CERTIFICATE REQUIRED BY SUBDI-
VISION THREE OF THIS SECTION MAY DO SO BY ENACTING ENABLING LEGISLATION,
A  DULY  CERTIFIED  COPY OF WHICH MUST BE FILED WITH THE BOARD OF DIREC-
TORS, THE STATE BOARD, THE SECRETARY OF STATE AND THE  COUNTY  CLERK  OF
EACH  PARTICIPATING COUNTY. IN THE EVENT THAT A COUNTY ELECTS TO PARTIC-
IPATE AFTER JUNE FIRST, NINETEEN HUNDRED NINETY, THE EFFECTIVE  DATE  OF
APPROVAL  BY  THE  STATE  BOARD  SHALL NOT BE EARLIER THAN THE DATE THAT
BRANCH OFFICES ARE ESTABLISHED AND OPERATING. IF, AT THE  TIME  OF  SUCH
ELECTION,  THE  STATE  BOARD  HAS  APPROVED  A PLAN OF OPERATION FOR THE
CORPORATION, A COUNTY MAY NOT  BECOME  A  PARTICIPATING  COUNTY  WITHOUT
APPROVAL  BY THE STATE BOARD OF A MODIFIED FEASIBILITY STUDY AND AMENDED
PLAN OF OPERATION WHICH SHALL BE SUBMITTED BY  THE  CORPORATION  TO  THE
STATE BOARD PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THIS CHAPTER.
  IF THE PARTICIPATING COUNTIES IN THE REGION HAVE CONTRIBUTED OR LOANED
FUNDS  OR OTHER CONSIDERATION TO THE CORPORATION, THE BOARD OF DIRECTORS
MAY REQUIRE THAT ANY COUNTY SUBSEQUENTLY ELECTING TO  BECOME  A  PARTIC-
IPATING  COUNTY  MAKE SUCH CONTRIBUTIONS IN THE SAME PROPORTION, IF ANY,
AS MAY HAVE GOVERNED SUCH CONTRIBUTIONS OR LOANS BY PARTICIPATING  COUN-
TIES.  ANY  DISPUTE AS TO THE VALUE OF CONSIDERATION OR AS TO A CONTRIB-
UTION REQUIRED BY THE BOARD OF DIRECTORS SHALL BE RESOLVED BY THE  STATE
BOARD.
  5. A. IF THE CERTIFICATE REQUIRED BY SUBDIVISION THREE OF THIS SECTION
IS  NOT  FILED  BY DECEMBER THIRTY-FIRST, NINETEEN HUNDRED SEVENTY-FIVE,
THE CORPORATE EXISTENCE OF A CORPORATION SHALL TERMINATE, BUT OTHERWISE,
EACH CORPORATION AND ITS CORPORATE EXISTENCE SHALL CONTINUE UNTIL TERMI-
NATED BY LAW; PROVIDED, HOWEVER, THAT EXCEPT IN THE CASE OF  THE  METRO-
POLITAN  OTB,  NO  SUCH LAW SHALL TAKE EFFECT SO LONG AS THE CORPORATION
SHALL HAVE BONDS, NOTES OR OTHER OBLIGATIONS  OUTSTANDING  AND,  IN  THE
INSTANCE  OF  THE  METROPOLITAN  OTB, ANY OR ALL OF SUCH BONDS, NOTES OR
OTHER OBLIGATIONS OF THE NEW YORK CITY REGIONAL OFF-TRACK BETTING CORPO-
RATION AND/OR THE NASSAU COUNTY REGIONAL OFF-TRACK  BETTING  CORPORATION
AS  SHALL  BE OUTSTANDING ON THE EFFECTIVE DATE HEREOF SHALL BECOME FULL
FAITH OBLIGATIONS OF SAID METROPOLITAN REGIONAL OFF-TRACK BETTING CORPO-
RATION AND SHALL BE CONSOLIDATED,  ABSORBED,  MODIFIED,  RE-CAPITALIZED,
RE-ISSUED,  REFUNDED AND/OR LIQUIDATED AS THE BOARD OF DIRECTORS OF SAID
REGIONAL CORPORATION SHALL DETERMINE TO BE APPROPRIATE HEREUNDER  OR  IN
ACCORDANCE WITH SECTION FIVE HUNDRED EIGHT AND/OR FIVE HUNDRED ELEVEN OF
THIS  ARTICLE.    EXCEPT  IN  THE INSTANCE OF THE METROPOLITAN OTB, UPON
TERMINATION OF THE EXISTENCE OF THE CORPORATION ALL OF ITS RIGHTS, PROP-
ERTY, ASSETS AND FUNDS SHALL THEREUPON VEST IN AND BE POSSESSED  BY  THE
PARTICIPATING  COUNTIES IN THE SAME PROPORTION SUCH PROPERTY, ASSETS AND
FUNDS MAY HAVE BEEN CONTRIBUTED BY  EACH  COUNTY  OR  ACCORDING  TO  THE
MANNER IN WHICH THE REVENUES OF THE CORPORATION ARE DISTRIBUTED PURSUANT
TO  SECTION  FIVE HUNDRED SIXTEEN OF THIS ARTICLE, OR ANY COMBINATION OF
BOTH SUCH METHODS, AS THE STATE BOARD SHALL DETERMINE.
  B. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH A OF THIS  SUBDIVISION,
THOSE  COUNTIES  COMPRISING  THE  CENTRAL REGION PRIOR TO JANUARY FIRST,
NINETEEN HUNDRED SEVENTY-FOUR, EVEN THOUGH SUCH COUNTIES ARE INCLUDED IN
OFF-TRACK BETTING REGIONS OTHER THAN  THE  CENTRAL  REGION,  SHALL  HAVE
UNTIL  DECEMBER  THIRTY-FIRST,  NINETEEN  HUNDRED EIGHTY-TWO TO FILE THE
CERTIFICATE REQUIRED BY SUBDIVISION THREE OF THIS SECTION.

A. 9391                             4

  6. EACH DIRECTOR SHALL CONTINUE TO SERVE  UNTIL  THE  APPOINTMENT  AND
QUALIFICATION OF HIS SUCCESSOR.
  7. THE DIRECTORS SHALL BE REMOVABLE FOR CAUSE BY THE STATE BOARD, UPON
CHARGES AND AFTER A HEARING.
  8.  THE  POWERS OF THE CORPORATION SHALL BE VESTED IN AND EXERCISED BY
THE BOARD OF DIRECTORS AT A MEETING DULY HELD AT A  TIME  FIXED  BY  ANY
BY-LAW  ADOPTED  BY SUCH BOARD, OR AT ANY DULY ADJOURNED MEETING OF SUCH
MEETING OR AT ANY MEETING HELD UPON REASONABLE  NOTICE  TO  ALL  OF  THE
DIRECTORS,  OR  UPON WRITTEN WAIVER THEREOF, AND A MAJORITY OF THE WHOLE
NUMBER OF DIRECTORS SHALL CONSTITUTE A QUORUM; PROVIDED THAT NEITHER THE
BUSINESS NOR THE POWERS OF THE CORPORATION SHALL BE TRANSACTED OR  EXER-
CISED  EXCEPT  PURSUANT  TO THE FAVORABLE VOTE OF AT LEAST A MAJORITY OF
THE DIRECTORS PRESENT AT A MEETING AT WHICH A QUORUM IS IN ATTENDANCE.
  9. THE BOARD OF DIRECTORS MAY DELEGATE TO ONE OR MORE  OF  THE  DIREC-
TORS,  OFFICERS,  AGENTS OR EMPLOYEES OF THE CORPORATION SUCH POWERS AND
DUTIES AS IT MAY DEEM PROPER.
  10. A. THE DIRECTORS MAY RECEIVE A SUM OF TWO  HUNDRED  FIFTY  DOLLARS
FOR  EACH  DAY  OR  PART THEREOF SPENT IN ATTENDANCE AT MEETINGS HELD IN
ACCORDANCE WITH SUBDIVISION EIGHT OF THIS SECTION,  BUT  NOT  TO  EXCEED
TWENTY-FIVE HUNDRED DOLLARS DURING ANY ONE YEAR.
  B. THE DIRECTORS MAY RECEIVE A SUM OF ONE HUNDRED DOLLARS FOR EACH DAY
OR  PART  THEREOF  AT  MEETINGS  OTHER THAN THOSE DEFINED IN SUBDIVISION
EIGHT OF THIS SECTION OR OTHERWISE  IN  THE  WORK  OF  THE  CORPORATION;
PROVIDED THAT SUCH ACTIVITIES ARE APPROVED BY THE BOARD AS A WHOLE. SUCH
ADDITIONAL  EXPENSES  SHALL  NOT  EXCEED  FIFTEEN HUNDRED DOLLARS IN ANY
CALENDAR YEAR.
  C. THE CHAIRMAN OF THE BOARD ELECTED IN  ACCORDANCE  WITH  SUBDIVISION
ONE  OF  THIS SECTION SHALL RECEIVE ADDITIONAL COMPENSATION OF ONE THOU-
SAND DOLLARS PER YEAR TO COVER THOSE EXPENSES AND ACTIVITIES  ASSOCIATED
WITH SUCH OFFICE.
  D. IN ADDITION, THE DIRECTORS SHALL BE REIMBURSED FOR THEIR ACTUAL AND
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES.
  E.  ANY  EXPENSES INCURRED BY A DIRECTOR IN EXCESS OF THOSE AUTHORIZED
BY PARAGRAPH D OF THIS SUBDIVISION SHALL BE THE  RESPONSIBILITY  OF  THE
APPOINTING  POLITICAL  SUBDIVISION,  PAYABLE  ON  VOUCHERS  CERTIFIED OR
APPROVED BY THE CHIEF FISCAL OFFICER OF SUCH POLITICAL SUBDIVISION AS IS
PROVIDED BY LAW.
  11. THE DIRECTORS MAY ENGAGE IN OUTSIDE EMPLOYMENT OR IN A  PROFESSION
OR BUSINESS UNLESS OTHERWISE PROHIBITED FROM DOING SO BY VIRTUE OF HOLD-
ING  ANOTHER PUBLIC OFFICE SUBJECT TO THE PROVISIONS OF ARTICLE EIGHTEEN
OF THE GENERAL MUNICIPAL LAW. FOR THE PURPOSES OF SUCH ARTICLE EIGHTEEN,
THE CORPORATION SHALL BE A "MUNICIPALITY" AND  A  DIRECTOR  SHALL  BE  A
"MUNICIPAL OFFICER."
  12. THE BOARD OF DIRECTORS SHALL HOLD AN ANNUAL MEETING.
  13. THE FISCAL YEAR OF THE CORPORATION SHALL BE THE CALENDAR YEAR.
  14. A GENERAL MANAGER, WHO SHALL BE THE CHIEF EXECUTIVE OFFICER OF THE
CORPORATION, SHALL BE IN CHARGE OF THE ADMINISTRATION OF ITS AFFAIRS. HE
OR  SHE  SHALL  PERFORM  HIS  OR  HER DUTIES AS CHIEF EXECUTIVE OFFICER,
TOGETHER WITH ANY OTHER DUTIES ASSIGNED TO HIM  OR  HER  BY  THE  CORPO-
RATION,  UNDER  ITS  DIRECT  SUPERVISION AND CONTROL AND SHALL GIVE FULL
TIME TO SUCH DUTIES.
  15. ANY PERSON PROHIBITED BY ANY LAW OR RULE  FROM  ACCEPTING  COMPEN-
SATION DESCRIBED IN SUBDIVISION TEN OF THIS SECTION SHALL NONETHELESS BE
PERMITTED TO SERVE AS A DIRECTOR PROVIDED SAID PERSON WAIVES HIS COMPEN-
SATION.

A. 9391                             5

  16.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS CHAPTER OR ANY
OTHER LAW, ANY DIRECTOR, ADMINISTRATOR, OR OTHER EMPLOYEE  OF  A  CORPO-
RATION MAY BE ISSUED AND HOLD ANY LICENSE ISSUED BY THE STATE BOARD.
  S  3.  Paragraphs  b  and  c  of  subdivision 11 of section 503 of the
racing, pari-mutuel wagering and breeding law, are amended  to  read  as
follows:
  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] EXCEPT IN  THE
CASE  OF  THE  METROPOLITAN  OTB  WHICH SHALL FILE WITH THE SECRETARY OF
STATE, NO RULE OR REGULATION PROMULGATED BY A  CORPORATION  PURSUANT  TO
THE PROVISIONS OF THIS SUBDIVISION SHALL BE EFFECTIVE UNTIL A COPY THER-
EOF IS FILED WITH THE CLERK OF EACH PARTICIPATING COUNTY;
  C.  ANY  VIOLATION OF ANY RULE OR REGULATION, FILED WITH THE SECRETARY
OF STATE OR 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 CORPORATION, SHALL BE A VIOLATION AND SHALL BE PUNISHA-
BLE 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;
  S 4. Subdivision 5 of section 505 of the racing, pari-mutuel  wagering
and  breeding  law is  REPEALED and a new subdivision 5 is added to read
as follows:
  5. A. CONTRACTS MAY BE ENTERED INTO BY A PARTICIPATING COUNTY AND  THE
CORPORATION  CONTAINING  UNDERTAKINGS  BY  A PARTICIPATING COUNTY (I) TO
ACQUIRE OR LEASE REAL OR PERSONAL PROPERTY  AND  AUTHORIZE  THE  USE  OR
OCCUPANCY  OF  SAME  BY THE CORPORATION, OR (II) TO AUTHORIZE THE CORPO-
RATION TO USE OR OCCUPY REAL OR PERSONAL PROPERTY THEN OWNED BY OR UNDER
LEASE TO A PARTICIPATING COUNTY, OR (III) TO PERFORM ANY OTHER  ACTS  ON
THE PART OF SUCH COUNTY AUTHORIZED BY SUBDIVISIONS ONE, TWO AND THREE OF
THIS SECTION, PROVIDED THE ACTS OF SUCH COUNTY CALLED FOR BY SUCH UNDER-
TAKINGS  ARE IN CONFORMITY WITH THE PROVISIONS OF, AND WITHIN THE POWERS
GRANTED TO THE COUNTY BY, SUCH SUBDIVISIONS ONE, TWO AND THREE  OF  THIS
SECTION.  THE MAKING OF ANY SUCH CONTRACT SHALL BE AUTHORIZED, ON BEHALF
OF THE COUNTY, BY THE GOVERNING BODY OR  THE  COUNTY  EXECUTIVE,  OR  BY
BOTH,  AS  THE CASE MAY BE, IN THE SAME MANNER AS THE ACT OR ACTS OF THE
COUNTY CALLED FOR BY THE UNDERTAKING OR UNDERTAKINGS  IN  SUCH  CONTRACT
ARE  REQUIRED  TO  BE AUTHORIZED UNDER THE APPLICABLE PROVISIONS OF SUCH
SUBDIVISIONS ONE, TWO AND THREE OF THIS SECTION.

A. 9391                             6

  B. THE METROPOLITAN OTB SHALL  LOCATE  ITS  HEADQUARTERS  AND  A  FULL
SERVICE,  HIGH QUALITY OFF-TRACK GAMING AND VIDEO LOTTERY GAMING, SIMUL-
CAST TELE-THEATER AND PARKING LOT/GARAGE AT THE PRIME LOCATION KNOWN  AS
THE  TIME  EQUITIES  BUILDING  LOCATED AT 70 WEST SUNRISE HIGHWAY IN THE
INCORPORATED  VILLAGE  OF  FREEPORT,  NEW YORK, INCLUDING A FULL SERVICE
RESTAURANT AND OTHER DINING, LOUNGE  AND  ENTERTAINMENT  FACILITIES.  IN
FURTHERANCE  OF THE LOCATION OF SUCH HEADQUARTERS AND GAMING FACILITY AS
AFORESAID, THE METROPOLITAN OTB SHALL ENTER INTO SUCH CAPITAL LEASE WITH
THE INCORPORATED VILLAGE OF FREEPORT AS SHALL ENSURE THAT SAID  REGIONAL
OTB WILL AT ITS EXPENSE EFFECT ANY AND ALL SUCH RENOVATIONS AND UPGRADES
TO  SAID OFF-TRACK BETTING FACILITY AS SHALL BE NECESSARY AND CONVENIENT
FOR IT TO BE OPERATED AS SUCH HEADQUARTERS AND  FULL  SERVICE  OFF-TRACK
BETTING  FACILITY  TO BE LICENSED HEREUNDER AND TO BE CERTIFIED TO BE IN
COMPLIANCE WITH ALL STATE AND LOCAL FIRE AND SAFETY CODES SUCH THAT  THE
DIVISION  IS  AFFORDED  ADEQUATE  SPACE,  INFRASTRUCTURE  AND  AMENITIES
CONSISTENT WITH THE HIGHEST INDUSTRY STANDARDS FOR SUCH HEADQUARTERS AND
FULL SERVICE, HIGH QUALITY OFF-TRACK GAMING AND VIDEO LOTTERY GAMING AND
SIMULCAST TELE-THEATER FACILITIES AND OPERATIONS AS ARE FOUND  IN  OTHER
STATES, CITIES AND REGIONS, INCLUDING:
  (I)  SUPERIOR  CONSUMER  AMENITIES  AND  CONVENIENCES TO ENCOURAGE AND
ATTRACT THE PATRONAGE OF TOURISTS AND OTHER  VISITORS  FROM  ACROSS  THE
REGION, STATE AND NATION; AND
  (II) ADEQUATE MOTOR VEHICLE PARKING FACILITIES TO SATISFY EMPLOYEE AND
PATRON REQUIREMENTS.
  C.  ANY  SUCH CONTRACT BETWEEN A COUNTY OR OTHER POLITICAL SUBDIVISION
AND THE CORPORATION MAY BE PLEDGED BY  THE  CORPORATION  TO  SECURE  ITS
BONDS  OR NOTES AND MAY NOT BE MODIFIED THEREAFTER EXCEPT AS PROVIDED BY
THE TERMS OF THE PLEDGE.
  S 5. Subdivision 1 of section 507 of the racing, pari-mutuel  wagering
and  breeding  law is  REPEALED and a new subdivision 1 is added to read
as follows:
  1. EACH CORPORATION SHALL LET CONTRACTS FOR CONSTRUCTION OR ANY  OTHER
WORK,  INCLUDING THE FURNISHING OF MATERIALS OR SUPPLIES INCIDENT THERE-
TO, AND CONTRACTS FOR THE PURCHASE OR PROCUREMENT OF EQUIPMENT,  MATERI-
ALS  OR  SUPPLIES: (I) IN THE MANNER PROVIDED BY LAW WITH RESPECT TO THE
LETTING OF SUCH CONTRACTS BY COUNTIES EXCEPT THAT  WHERE  THE  ESTIMATED
EXPENSE  OF  A  CONTRACT  DOES NOT EXCEED FIFTEEN THOUSAND DOLLARS, SUCH
CONTRACT MAY BE ENTERED INTO WITHOUT PUBLIC LETTING, PROVIDED,  HOWEVER,
THAT  WHERE THE CORPORATION DETERMINES WITH RESPECT TO ANY CONTRACT THAT
IT WOULD NOT BE IN THE PUBLIC INTEREST TO COMPLY WITH THIS  SECTION  AND
THE  GOVERNING  BODY  OF  EACH COUNTY, BY RESOLUTION, RULE OR REGULATION
ADOPTED BY THE VOTE OF TWO-THIRDS OF THE WHOLE NUMBER OF  VOTES  AUTHOR-
IZED  TO  BE  CAST  BY  ALL OF THE MEMBERS OF SUCH BODY, CONCURS IN SUCH
DETERMINATION, THEN IT MAY  ENTER  INTO  SUCH  CONTRACT  WITHOUT  PUBLIC
LETTING AS AUTHORIZED BY SAID RESOLUTION, RULES AND REGULATIONS; (II) IN
CONJUNCTION  WITH  ONE  OR  MORE REGIONAL OFF-TRACK BETTING CORPORATIONS
PURSUANT TO THIS SECTION; OR (III) IN THE MANNER PROVIDED IN THIS  CHAP-
TER IF IN CONJUNCTION WITH THE METROPOLITAN OTB.
  S  6. Subdivision 2 of section 516 of the racing, pari-mutuel wagering
and breeding law is  REPEALED and a new subdivision 2 is added  to  read
as follows:
  2.   AFTER PAYMENT OF ALL OF THE COSTS OF THE CORPORATION'S FUNCTIONS,
NET REVENUE REMAINING TO THE CORPORATION SHALL  BE  DIVIDED,  QUARTERLY,
NOT MORE THAN THIRTY DAYS AFTER THE CLOSE OF THE CALENDAR QUARTER, AMONG
THE PARTICIPATING COUNTIES IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:

A. 9391                             7

  A.  EXCEPT  IN THE CASE OF THE METROPOLITAN OTB, FIFTY PERCENT OF SUCH
REVENUE DISTRIBUTED AMONG THE PARTICIPATING COUNTIES ON THE BASIS OF THE
PROPORTION OF THE TOTAL OFF-TRACK PARI-MUTUEL WAGERING ACCEPTED  BY  THE
CORPORATION  DURING THE PREVIOUS CALENDAR QUARTER THAT ORIGINATED IN THE
BRANCH OFFICES LOCATED IN EACH PARTICIPATING COUNTY;
  B.  EXCEPT  IN THE CASE OF THE METROPOLITAN OTB, FIFTY PERCENT OF SUCH
REVENUE ON THE BASIS OF POPULATION, AS DEFINED AS THE  TOTAL  POPULATION
IN  EACH  PARTICIPATING  COUNTY  SHOWN BY THE LATEST PRECEDING DECENNIAL
FEDERAL CENSUS COMPLETED AND PUBLISHED AS A FINAL  POPULATION  COUNT  BY
THE UNITED STATES BUREAU OF THE CENSUS PRECEDING THE COMMENCEMENT OF THE
CALENDAR YEAR IN WHICH SUCH DISTRIBUTION IS TO BE MADE; AND
  C. A PARTICIPATING COUNTY CONTAINING A CITY ELECTING TO PARTICIPATE IN
THE  MANAGEMENT  AND  REVENUES OF A CORPORATION UNDER SUBDIVISION TWO OF
SECTION FIVE HUNDRED  TWO  OF  THIS  ARTICLE  SHALL  DISTRIBUTE  REVENUE
RECEIVED  UNDER  PARAGRAPHS  A  AND  B  OF THIS SUBDIVISION TO SUCH CITY
ACCORDING TO THE PROPORTION SUCH CITY'S POPULATION BEARS TO THE COUNTY'S
POPULATION.
  D. IN THE CASE OF THE METROPOLITAN OTB, SUCH REVENUE SHALL BE DISTRIB-
UTED AMONG THE STATE AND THE COUNTY  OF  NASSAU  ON  THE  BASIS  OF  THE
PROPORTION  OF  THE TOTAL OFF-TRACK PARI-MUTUEL WAGERING ACCEPTED BY THE
CORPORATION DURING THE PREVIOUS CALENDAR QUARTER THAT ORIGINATED IN  THE
BRANCH OFFICES LOCATED IN NEW YORK CITY AND NASSAU COUNTY, RESPECTIVELY.
  S 7. Paragraphs b and c of subdivision 1 of section 519 of the racing,
pari-mutuel wagering and breeding law, are amended to read as follows:
  b. [Nassau: Nassau county;
  c.  New  York  city] METROPOLITAN:   [the five counties comprising the
city of New York] KINGS, QUEENS, RICHMOND, BRONX, NEW  YORK  AND  NASSAU
COUNTIES;
  S  8.  The  opening  paragraph  of subdivision 1 of section 527 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:
  The  disposition  of the retained commission from pools resulting from
regular, multiple or exotic bets, as the case may be, whether placed  on
races  run  within  a  region  or  outside a region, conducted by racing
corporations, harness racing associations or corporations, quarter horse
racing associations or corporations  or  races  run  outside  the  state
shall,  AFTER  THE REGIONAL OFF-TRACK BETTING CORPORATION'S EXPENSES FOR
DEBT SERVICE, SALARIES, WAGES, INSURANCE,  RENT,  REAL  PROPERTY  TAXES,
EMPLOYEE  POST-RETIREMENT  FUND  CONTRIBUTIONS  AND  A  CAPITAL  RESERVE
CONTRIBUTION OF THREE PER CENTUM IS DEDUCTED THEREFROM AND  RETAINED  BY
SUCH  CORPORATION,  be  governed  by the tables in paragraphs a and b of
this subdivision. The rate denominated "state tax" shall  represent  the
rate  of  a  reasonable tax imposed upon the retained commission for the
privilege of conducting off-track  pari-mutuel  betting,  which  tax  is
hereby  levied  and  shall  be  payable  in the manner set forth in this
section. Each off-track betting corporation shall pay to the racing  and
wagering  board  as  a regulatory fee, which fee is hereby levied, fifty
hundredths of one percent of the total daily pools of such  corporation.
Each  corporation shall also pay twenty per centum of the breaks derived
from bets on harness races and fifty per centum of  the  breaks  derived
from bets on all other races to the agriculture and New York State horse
breeding  and  development  fund  and  to  the thoroughbred breeding and
development fund, the total of such payments to be apportioned fifty per
centum to each such fund. For the purposes of  this  section,  the  [New
York  city,]  METROPOLITAN  Suffolk,  [Nassau,] and the Catskill regions
shall constitute a single region  and  any  thoroughbred  track  located

A. 9391                             8

within  the  Capital  District  region shall be deemed to be within such
single region. A "regional meeting" shall refer  to  either  harness  or
thoroughbred  meetings,  or  both,  except that a franchised corporation
shall not be a regional track for the purpose of receiving distributions
from bets on thoroughbred races conducted by a thoroughbred track in the
Catskill  region  conducting  a mixed meeting.   With the exception of a
harness racing association or  corporation  first  licensed  to  conduct
pari-mutuel  wagering  at  a track located in Tioga county after January
first, two thousand five, racing corporations first licensed to  conduct
pari-mutuel racing after January first, nineteen hundred eighty-six or a
harness  racing  association  or  corporation  first licensed to conduct
pari-mutuel wagering at a track located in Genesee County after  January
first,  two  thousand  five,  and  quarter  horse  tracks  shall  not be
"regional tracks"; if there is more than  one  harness  track  within  a
region,  such  tracks  shall evenly divide payments made pursuant to the
tables in paragraphs a and b of this subdivision when neither  track  is
running.  In  the event a track elects to reduce its retained percentage
from any or all of its pari-mutuel pools,  the  payments  to  the  track
holding  the  race and the regional track required by paragraphs a and b
of this subdivision shall be reduced in proportion  to  such  reduction.
Nothing  in  this section shall be construed to authorize the conduct of
off-track betting contrary to the provisions  of  section  five  hundred
twenty-three of this article.
  S 9. Article 6 of the racing, pari-mutuel wagering and breeding law is
REPEALED.
  S  10.  Subdivision  a of section 1617-a of the tax law, as amended by
section 2 of part O-1 of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  a. The division of the lottery is hereby authorized to license, pursu-
ant  to  rules  and regulations to be promulgated by the division of the
lottery, the operation of video lottery  gaming  at  Aqueduct,  BELMONT,
Monticello,  Yonkers,  Finger  Lakes, and Vernon Downs racetracks, or at
any other racetrack licensed pursuant to article three  of  the  racing,
pari-mutuel  wagering  and  breeding law that are located in a county or
counties in which video lottery gaming has been authorized  pursuant  to
local  law,  excluding  the  licensed  racetrack commonly referred to in
article three of the racing, pari-mutuel wagering and  breeding  law  as
the  "New  York state exposition" held in Onondaga county and the [race-
tracks] RACETRACK of the non-profit racing association known as [Belmont
Park racetrack and] the Saratoga thoroughbred racetrack.  Such rules and
regulations shall provide, as a condition of licensure, that  racetracks
to  be  licensed  are  certified  to be in compliance with all state and
local fire and safety codes, that  the  division  is  afforded  adequate
space,  infrastructure, and amenities consistent with industry standards
for such video gaming operations as found at racetracks in other states,
that racetrack employees involved in  the  operation  of  video  lottery
gaming  pursuant to this section are licensed by the racing and wagering
board, and such other terms and conditions of licensure as the  division
may  establish. Notwithstanding any inconsistent provision of law, video
lottery gaming at a racetrack pursuant to this section shall  be  deemed
an approved activity for such racetrack under the relevant city, county,
town,  or  village land use or zoning ordinances, rules, or regulations.
No entity licensed by the division operating video lottery gaming pursu-
ant to this section may house such gaming activity in a structure deemed
or approved by the division as "temporary" for a duration of longer than
eighteen-months. Nothing in this section  shall  prohibit  the  division

A. 9391                             9

from  licensing an entity to operate video lottery gaming at an existing
racetrack as authorized in this subdivision whether or not  a  different
entity  is  licensed to conduct horse racing and pari-mutuel wagering at
such  racetrack pursuant to article two or three of the racing, pari-mu-
tuel wagering and breeding law.
  The division, in consultation with  the  racing  and  wagering  board,
shall  establish  standards  for approval of the temporary and permanent
physical layout and construction of any facility or building devoted  to
a  video lottery gaming operation. In reviewing such application for the
construction or reconstruction of facilities related or devoted  to  the
operation  or  housing of video lottery gaming operations, the division,
in consultation with the racing and wagering board,  shall  ensure  that
such facility:
  (1)  possesses superior consumer amenities and conveniences to encour-
age and attract the patronage of tourists and other visitors from across
the region, state, and nation.
  (2) has adequate motor vehicle parking facilities  to  satisfy  patron
requirements.
  (3)  has a physical layout and location that facilitates access to and
from the horse racing track portion of such facility to encourage patro-
nage of live horse racing events that are conducted at such track.
  S 11. Except when the context and purpose indicates otherwise,  refer-
ences in any chapter of law or in any regulation of a state agency or in
any  state  agency  form  or  contract to "New York City OTB" or "Nassau
County OTB" shall refer to the "Metropolitan OTB".
  S 12. This act shall take effect immediately, provided, however,  that
the amendments to subdivision a of section 1617-a of the tax law made by
section ten of this act shall not affect the expiration and reversion of
such  section pursuant to section 4 of part C of chapter 383 of the laws
of 2001 and shall be deemed to expire therewith.

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