Assembly Bill A9997

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2010	held for consideration in racing and wagering
Feb 24, 2010	referred to racing and wagering

2009-A9997 (ACTIVE) - Details

Current Committee:: Assembly Racing And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Rpld & add §§501, 502, 503, 505, 507, 516, 518, 519, 521, 523, 527, 532, 601 - 607, 609-a - 614, 617, 623 & 624, RWB L

2009-A9997 (ACTIVE) - Summary

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

2009-A9997 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A9997

TITLE  OF  BILL:    An act to amend the racing, pari-mutuel wagering and
breeding 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 such law relat-
ing thereto

PURPOSE: This legislation is designed to save 2000  jobs  threatened  by
the  current bankruptcy of the NYC-OTB and the insolvency of the Nassau-
OTB, by unfreezing the so-called "Static Legislation" that  now  governs
and hamstrings the regional off-track betting corporations (hereinafter,
the  "ROTB") that requires them to pay-out static percentages from their
adjusted gross income without regard to the effect of  such  payouts  on
the  ability of the ROTBs to maintain their operations, fund their capi-
tal projects and satisfy post-employment  obligations  to  their  former
employees.  The legislation would replace that approach with a true "Net
Income" formula that would frontload most of the elements  of  the  ROTB
operating  budgets, establish reasonable capital reserves and fully fund
their post-employment obligations.  The  proposal  also  calls  for  the
consolidation  of  the state run NYC-01B with the Nassau-OTB to form the
Metropolitan OTB in order to effect economies of scale, authorize  Video
Lottery  Terminals (hereinafter "VLTs") at Nassau County's Belmont Race-
track on the same basis as is currently permitted at its sister  facili-
ties in New York city (Aqueduct Racetrack) and Westchester county (Yonk-
ers Raceway), and slash a major part of burdensome overhead by combining

and  relocating  the  headquarters  of the new MOTB out of the expensive
real estate market in lower Manhattan to a vast more affordable location
in Nassau County that is a mere 25 minutes and only  LIRR  express  stop
from midtown New York City.

SUMMARY  OF  SPECIFIC PROVISIONS: The following group of provisions will
be enacted into comprehensive, amended and new, chapter 47-A legislation
designed to address and resolve the following systemic problems:

1. Enabling legislation be enacted and/or amended to,

(a) Dissolve the current state-run NYC-OTB by way of reorganization;

(b) Dissolve the Nassau-OTB by way of reorganization;

(c) Create a new Metropolitan-OTB consisting of a combined  NYC-OTB  and
Nassau-OTB; and

(d) Establish a lean, streamlined, affordable high-tech headquarters for
the new Metropolitan-OTB in Freeport, NY

2.  New  legislation  altering  the  system for payout of the net income
("Handle") of regional 0113 corporations pursuant to Section 527 and new
subsection 519-4 to exclude the true and entire  cost  of  functions  of
regional  off-track  betting  corporations as re-defined in sections 501
and 602 of chapter 47-A, including salaries and wages,  insurance,  rent

and  real  estate  taxes, payments in lieu of taxes and/or to compensate
municipalities for loss of admission taxes pursuant to section 531-2  of
this  chapter, contributions to any post-retirement employee fund and/or
pension  and  other  post-employment expenses, the costs of acquisition,
construction or equipping of branch offices  and  other  facilities  and
premises of the corporation, the state tax levied pursuant to subsection
section  527-1,  debt service, and a capital reserve of no more than 3%,
before any distributions are made in accordance with said section.

3. New legislation permitting Video Lottery Terminal locations at,

(a) Belmont Racetrack,

(b) One additional Metropolitan OTB VLT at a location in the City of New
York designated by the Site Selection Committee, and

(c) One additional Metropolitan OTB VLT at a location in the  County  of
Nassau designated by the Site Selection Committee

JUSTIFICATION: Despite the way in which the current economic predicament
has  been  packaged,  there is absolutely nothing wrong with the NYC-OTB
corporation or the New York state OTB system, including the way in which
the six regional OTB corporations operate and the revenue that  most  of
them  produce,  that  good management cannot cure.  The system generates
substantial revenue and is a major New York State employer that, if need
be, could be a standalone industry. In fact, if every racetrack  in  New
York  State closed down tomorrow, the New York, state OTB industry would
still generate over $100 million dollars in revenue from current betting
on races held at out-of-state race tracks. The ROTBs operating  deficits
and  solvency crises are, in major part, an artificially induced by-pro-
duct of delayed statutory payments due to  the  horse  racing  industry,
including their take from in-state and out-of-state simulcast revenues.

There is an immediate need to take action to rescue the NYC-OTB from its
current  economic crisis and 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 operations, the systemic problem
is with the non-business model that is foisted upon the ROTBs. Under the
current legislative  scheme,  OTB  corporations  must  distribute  their
income  before  fully  paying  their bills, or risk having the shortfall
treated as an actionable debt that allows the racing  industry  to  cast
them  into bankruptcy as creditors, rather than as business partners who
must share in the vicissitudes of the marketplace. Unless and until that
debilitating malady is addressed, the OTB system will  not  be  able  to
effectively  avail  itself  of  modem  technology,  new marketplaces, or
weather economic downturns  and  the  attendant  drastic  reductions  in
"Handles" that fund their bottom lines.

NYC-OTB  and  Nassau-01B pump over a billion and a half dollars directly
into the State's economy and supplies even more  economic  fuel  through
the  more  than 2000 full time workers currently employed by those enti-
ties. It is estimated that approximately 70% of  that  work  force  will

lose  their  jobs  if the NYC-OTB emerges from bankruptcy under the plan
currently employed by those entities. It is estimated that approximately
70% of that work force will lose their jobs if the NYC-OTB emerges  from
bankruptcy  under the plan currently being urged upon the legislature by
its current administration, and Nassau-OTB is allowed to suffer the same
fate. Although the top heavy OTB executive  and  management-level  head-
quarters  staff  must  be  consolidated  and/or reduced, most of the OTB
positions are middle-class jobs that are productive  and  have  reduced,
most  of the OTB positions are middle-class jobs that are productive and
have a significant multiplier effect. Moreover,  while  the  OTB  corpo-
rations' cost of fringe a significant multiplier effect. Moreover, while
the  OTB corporations' cost of fringe benefits have increased since 2001
- in step with similar employees  benefit  package  increases  in  every
segment  of  the nation's workforce - off-track betting system employees
and their costs have not been the problem. Salary and wage expenses  for
NYC-OTB workers that were $65.4 million eight years ago in 2001 actually
went down to $65.3 million in 2008.

In order to save working-class jobs and ensure this reliable cash source
that  is  such  a  critical  element of the machine that provides needed
revenues to local governments and which fuels this important segment  of
the State's economy, the regional off-track betting corporations must be
permitted to operate pursuant to a permanent adjustment to the statutory
distribution scheme that will allow them to fully pay their bills before
non-tax distributions are made.

PRIOR LEGISLATIVE HISTORY: A9391

FISCAL IMPLICATIONS:

EFFECTIVE DATE:  This act shall take effect immediately.

2009-A9997 (ACTIVE) - Bill Text download pdf

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

                                  9997

                          I N  A S S E M B L Y

                            February 24, 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, in
  relation to combining the Nassau and New York city regional  off-track
  betting  corporations  into  the Metropolitan off-track betting corpo-
  ration; and to repeal certain provisions of such law relating thereto

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

  Section  1.    Legislative findings and intent. The legislature hereby
finds that the New York city off-track betting corporation (NYC OTB) and
Nassau county off-track betting corporation (Nassau OTB)  are  insolvent
and  facing  closure.  The  legislature  further  finds that nearly $1.1
billion dollars, almost half of all money wagered on horse racing in New
York state, is wagered through NYC OTB, and  that  nearly  $250  million
dollars,  almost  twenty percent of all money wagered on horse racing in
New York state, is derived from wagering through Nassau OTB. The revenue
distributed to the racing  industry,  which  is  derived  from  wagering
through NYC OTB and Nassau OTB, plays an integral role in sustaining the
viability  of  the  entire  horse racing industry in New York state, and
together NYC OTB and Nassau OTB employ almost 2,000 people in the great-
er New York city-Nassau county metropolitan area. The legislature there-
fore determines that the continued operation of NYC OTB and  Nassau  OTB
under a combined corporate umbrella, to be known as the Metropolitan OTB
pursuant to sections 502 and 603 of the racing, pari-mutuel wagering and
breeding law, is of paramount importance to the public interest.
  The  legislature  further finds that, since its inception in 1973, New
York's regional off-track betting system has provided  state  and  local
governments  with  significant revenues to support government operations
and to aid  in  reducing  increases  in  local  property  taxation.  The
regional  off-track  betting system has been integrated into the state's
pari-mutuel racing and breeding industry to provide  statewide  accessi-
bility  and  exposure  to  New  York's  quality thoroughbred and harness
racing. Such accessibility and exposure has significantly contributed to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15935-02-0

A. 9997                             2

the economic well-being of New York's  racetracks,  their  horsemen  and
employees and the growth of horse breeding in the state.
  The  legislature further finds that since its inception, the statutory
framework under which the regional off-track betting system  must  func-
tion and operate has met obstacles to change in a changing technological
environment. The static statutory framework has caused economic distress
among  the  regional  off-track  betting  corporations which may lead to
reduced revenues to state and local governments, local employment and  a
negative  impact  on  racing  and  breeding in New York. As a result, an
in-depth analysis and regular periodic reviews of this system should  be
conducted  to  determine  how  to enhance and improve the system of off-
track betting in New York state in the future.
  S 2. Sections 501, 502, 503, 505, 507 and 516 of the racing,  pari-mu-
tuel  wagering  and  breeding law are REPEALED and six new sections 501,
502, 503, 505, 507 and 516 are added to read as follows:
  S 501. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN AND INCLUDE:
  1. "STATE BOARD." THE STATE RACING AND WAGERING BOARD.
  2. "BOARD OF DIRECTORS." THE BOARD OF DIRECTORS OF  A  CORPORATION  AS
SUCH  BOARD  IS CONSTITUTED PURSUANT TO SECTION FIVE HUNDRED TWO OF THIS
ARTICLE.
  3. "CORPORATION." EACH  REGIONAL  OFF-TRACK  BETTING  CORPORATION,  AS
CREATED BY SECTION FIVE HUNDRED TWO OF THIS ARTICLE.
  4.  "PARTICIPATING COUNTY." ANY OF THE COUNTIES IN A REGION WHICH HAVE
ELECTED TO JOIN A CORPORATION IN THE MANNER PROVIDED FOR IN SECTION FIVE
HUNDRED TWO OF THIS ARTICLE.
  5. "BONDS AND NOTES." BONDS AND NOTES,  RESPECTIVELY,  AUTHORIZED  AND
ISSUED BY THE CORPORATION PURSUANT TO THIS ARTICLE.
  6.  "COST  OF CORPORATION'S FUNCTIONS." ALL PRE-DISTRIBUTION COSTS AND
EXPENSES INCURRED BY THE CORPORATION IN CONNECTION WITH THE  PERFORMANCE
OF  THE  FUNCTIONS  OF  THE  CORPORATION  AS  DESCRIBED BY THIS ARTICLE,
INCLUDING, BUT NOT LIMITED TO, ALL OPERATING EXPENSES OF THE CORPORATION
SUCH AS SALARIES AND WAGES,  INSURANCE,  RENT  AND  REAL  ESTATE  TAXES,
PAYMENTS  IN  LIEU OF TAXES AND/OR TO COMPENSATE MUNICIPALITIES FOR LOSS
OF ADMISSION TAXES PURSUANT TO SUBDIVISION TWO OF SECTION  FIVE  HUNDRED
THIRTY-ONE OF THIS CHAPTER, CONTRIBUTIONS TO ANY POST-RETIREMENT EMPLOY-
EE  FUND AND/OR PENSION AND OTHER POST-EMPLOYMENT EXPENSES, THE COSTS OF
ACQUISITION, CONSTRUCTION OR  EQUIPMENT  OF  BRANCH  OFFICES  AND  OTHER
FACILITIES AND PREMISES OF THE CORPORATION, A REASONABLE CAPITAL RESERVE
FUND  OF  NO  MORE  THAN  THREE PERCENT OF NET PRE-DISTRIBUTION REVENUE,
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, PREMISES, OR OTHERWISE,  AND  THE
STATE  TAX  LEVIED  PURSUANT  TO SUBDIVISION ONE OF SECTION FIVE HUNDRED
TWENTY-SEVEN OF THIS CHAPTER.
  7. "REGION." THE SEVERAL REGIONS DEFINED BY SUBDIVISION ONE OF SECTION
FIVE HUNDRED NINETEEN OF THIS CHAPTER.
  8. "TRACK." THE GROUNDS OR ENCLOSURE  WITHIN  WHICH  HORSE  RACES  ARE
CONDUCTED  BY ANY PERSON, ASSOCIATION OR CORPORATION LAWFULLY AUTHORIZED
TO CONDUCT SUCH RACES.
  9. "GOVERNING BODY." THE APPROPRIATE STATE OR COUNTY LEGISLATIVE BODY.
  10. "BRANCH OFFICE." AN ESTABLISHMENT MAINTAINED AND OPERATED  BY  THE
CORPORATION,  WHERE OFF-TRACK, PARI-MUTUEL BETTING ON HORSE RACES MAY BE
PLACED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS  ARTICLE  AND
THE RULES AND REGULATIONS ISSUED PURSUANT THERETO.

A. 9997                             3

  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  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
COMBINED NEW  YORK  CITY-NASSAU  COUNTY  OFF-TRACK  BETTING  CORPORATION
(HEREINAFTER,  THE  "METROPOLITAN  OTB")  ESTABLISHED  PURSUANT  TO  AND
SUBJECT TO ARTICLE SIX OF THIS CHAPTER  SHALL  CONSTITUTE  THE  REGIONAL
CORPORATION  AND  SUCH  ARTICLE  SIX SHALL GOVERN SUCH COMBINED NEW YORK
CITY-NASSAU COUNTY OFF-TRACK BETTING CORPORATION. EACH  REGIONAL  CORPO-
RATION SHALL BE A BODY CORPORATE AND POLITIC CONSTITUTING A PUBLIC BENE-
FIT  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 GOVERNING 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 COMPEN-
SATED BY THE REGIONAL CORPORATION; PROVIDED, HOWEVER, THAT THE MAYOR  OF
A  CITY  OF  OVER ONE HUNDRED FIFTY THOUSAND THAT HAS ELECTED TO PARTIC-
IPATE IN THE MANAGEMENT OF A CORPORATION 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 NOT MORE THAN THREE OF WHOM SHALL BE MEMBERS  OF  THE  SAME
PARTY, TWO APPOINTED BY THE GOVERNOR ON THE RECOMMENDATION OF THE TEMPO-
RARY  PRESIDENT  OF  THE  SENATE,  TWO  APPOINTED BY THE GOVERNOR ON THE
RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY AND ONE APPOINTED  BY  THE
GOVERNOR,  WHO  SHALL  BE  THE CHAIRMAN AND SERVE AT THE PLEASURE OF THE
GOVERNOR, WHO MAY CHANGE HIS DESIGNATION OF  ANY  SUCH  DIRECTOR  TO  BE
CHAIRMAN.  EACH DIRECTOR OF THE REGIONAL CORPORATIONS SHALL SERVE AT THE
PLEASURE OF THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER  OF
THE  ASSEMBLY,  MAYOR,  OR  GOVERNING  BODY UPON WHOSE RECOMMENDATION OR
DESIGNATION HE WAS APPOINTED, AS THE CASE MAY BE.
  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

A. 9997                             4

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;
  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-
MAN.
  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, EXCEPT IN THE CASE OF THE  METROPOLITAN
OTB, THAT 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  OBLI-
GATIONS  OF  THE  NEW  YORK  CITY REGIONAL OFF-TRACK BETTING CORPORATION
AND/OR THE NASSAU COUNTY REGIONAL OFF-TRACK BETTING CORPORATION AS SHALL
BE OUTSTANDING ON THE EFFECTIVE DATE OF THIS SECTION 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 SECTIONS FIVE HUNDRED EIGHT, FIVE HUNDRED ELEVEN  AND/OR
SIX HUNDRED ELEVEN OF THIS CHAPTER. EXCEPT IN THE INSTANCE OF THE METRO-
POLITAN  OTB,  UPON TERMINATION OF THE EXISTENCE OF THE CORPORATION, ALL
OF ITS RIGHTS, PROPERTY, ASSETS AND FUNDS SHALL THEREUPON VEST IN AND BE

A. 9997                             5

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 DETER-
MINE.
  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.
  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  THE 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.

A. 9997                             6

  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 OR HER
COMPENSATION.
  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 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 PURSU-
ANT 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, AND TO EXECUTE ALL INSTRUMENTS NECES-
SARY OR CONVENIENT TO ACCOMPLISH ITS CORPORATE PURPOSES;
  8. TO CONSTRUCT SUCH BUILDINGS, STRUCTURES AND FACILITIES  AS  MAY  BE
NECESSARY;
  9.  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. 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
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.  A.  TO  PROMULGATE,  AMEND  AND REPEAL SUCH RULES AND REGULATIONS
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;

A. 9997                             7

  B.  EXCEPT  IN  THE CASE OF THE METROPOLITAN OTB WHICH SHALL FILE WITH
THE SECRETARY OF STATE, NO RULE OR REGULATION PROMULGATED  BY  A  CORPO-
RATION PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION SHALL BE EFFECTIVE
UNTIL A COPY THEREOF IS FILED WITH THE CLERK OF EACH PARTICIPATING COUN-
TY;
  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;
  12. WHEN LICENSED TO CONDUCT HARNESS RACE MEETINGS PURSUANT TO ARTICLE
THREE OF THIS CHAPTER, WESTERN REGIONAL  OFF-TRACK  BETTING  CORPORATION
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 SIMULCAST
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.  TO PERFORM SUCH OTHER ACTS AND ENGAGE IN SUCH OTHER ACTIVITIES AS
MAY BE NECESSARY AND PROPER FOR EXERCISING ITS POWERS AND PERFORMING ITS
DUTIES UNDER THIS ARTICLE.
  S 505. ACQUISITION OR LEASING OF PROPERTY. 1. A  PARTICIPATING  COUNTY
MAY,  IN ACCORDANCE WITH THE PROVISIONS OF LAW GOVERNING THE ACQUISITION
OR LEASING OF REAL PROPERTY BY SUCH COUNTY, ACQUIRE REAL PROPERTY IN THE
NAME OF SUCH COUNTY BY PURCHASE OR CONDEMNATION FOR USE  BY  THE  CORPO-
RATION,  OR LEASE REAL PROPERTY FROM OTHER OWNERS FOR SUCH PURPOSE, AND,
BY RESOLUTION OF THE GOVERNING BODY OF SUCH COUNTY, MAY THROUGH LEASE OR
CONTRACT MADE UPON SUCH TERMS AND CONDITIONS, WITH OR WITHOUT  CONSIDER-
ATION,  AND FOR SUCH PERIOD OF TIME AS MAY BE AGREED UPON BY SUCH COUNTY
AND THE CORPORATION, AUTHORIZE THE USE OR OCCUPANCY OF SUCH REAL PROPER-
TY BY THE CORPORATION FOR THE CARRYING OUT OF ITS CORPORATE PURPOSE.
  2. SUCH COUNTY MAY, IN ACCORDANCE WITH THE PROVISIONS OF LAW GOVERNING
THE ACQUISITION OR LEASING OF PERSONAL PROPERTY BY SUCH COUNTY,  ACQUIRE
OR LEASE PERSONAL PROPERTY FOR USE BY THE CORPORATION AND, ACTING BY THE
GOVERNING  BODY  OF SUCH COUNTY, MAY BY LEASE OR CONTRACT MADE UPON SUCH
TERMS AND CONDITIONS, WITH OR WITHOUT CONSIDERATION, AND FOR SUCH PERIOD
OF TIME AS MAY BE AGREED UPON BY SUCH COUNTY AND THE CORPORATION AUTHOR-
IZE THE USE OF SUCH PROPERTY BY THE CORPORATION  OR  TRANSFER  TITLE  TO
SUCH PROPERTY TO IT, FOR THE CARRYING OUT OF ITS CORPORATE PURPOSE.
  3.  SUCH COUNTY MAY, BY RESOLUTION OF THE GOVERNING BODY OF SUCH COUN-
TY, OR BY AN INSTRUMENT AUTHORIZED BY SUCH A RESOLUTION,  AUTHORIZE  THE
CORPORATION TO USE OR OCCUPY FOR ITS CORPORATE PURPOSE ANY REAL PROPERTY
THEN  OWNED BY OR UNDER LEASE TO SUCH COUNTY, UPON SUCH TERMS AND CONDI-
TIONS, WITH OR WITHOUT CONSIDERATION, AND FOR SUCH PERIOD  OF  TIME,  AS
MAY BE AGREED UPON BY SUCH COUNTY AND THE CORPORATION; PROVIDED THAT, IN
THE  CASE  OF  ANY  SUCH  PROPERTY  THEN UNDER LEASE TO SUCH COUNTY, THE

A. 9997                             8

AUTHORIZATION GRANTED BY SUCH COUNTY TO THE CORPORATION SHALL BE  WITHIN
AND  CONSISTENT WITH THE RIGHTS OF SUCH COUNTY AS LESSEE OF SUCH PROPER-
TY.
  4.  EACH  CORPORATION,  FOR THE CARRYING OUT OF ITS CORPORATE PURPOSE,
MAY ITSELF ACQUIRE REAL PROPERTY IN THE NAME OF THE PARTICIPATING  COUN-
TIES AT THE COST AND EXPENSE OF THE CORPORATION BY PURCHASE OR CONDEMNA-
TION PURSUANT TO THE LAWS GOVERNING THE CONDEMNATION OF REAL PROPERTY BY
EACH  COUNTY.  THE  CORPORATION SHALL HAVE THE USE AND OCCUPANCY OF SUCH
REAL PROPERTY SO LONG AS ITS CORPORATE EXISTENCE SHALL CONTINUE.
  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.
  B. IN THE EXERCISE OF ITS  POWERS  AND  AUTHORITY  UNDER  SECTION  SIX
HUNDRED  SEVEN  OF  THIS  CHAPTER, THE METROPOLITAN OTB SHALL LOCATE ITS
HEADQUARTERS AND A FULL SERVICE, HIGH QUALITY OFF-TRACK GAMING AND VIDEO
LOTTERY GAMING, SIMULCAST 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 ENTER-
TAINMENT 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  HEAD-
QUARTERS  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, INCLUD-
ING:
  (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.

A. 9997                             9

  6. IN CASE THE CORPORATION SHALL HAVE THE USE OR OCCUPANCY OF ANY REAL
PROPERTY WHICH IT SHALL DETERMINE IS NO LONGER REQUIRED FOR THE CARRYING
OUT OF ITS CORPORATE PURPOSE, THEN, IF SUCH REAL PROPERTY  WAS  ACQUIRED
AT THE COST AND EXPENSE OF A COUNTY, THE CORPORATION SHALL HAVE POWER TO
SURRENDER  ITS  USE OR OCCUPANCY THEREOF TO THE COUNTY, OR, IF SUCH REAL
PROPERTY WAS ACQUIRED AT THE COST AND EXPENSE OF  THE  CORPORATION,  THE
CORPORATION  SHALL HAVE THE POWER TO SELL, LEASE OR OTHERWISE DISPOSE OF
SAID REAL PROPERTY AT PUBLIC OR PRIVATE SALE, AND SHALL RETAIN AND  HAVE
THE  POWER  TO USE THE PROCEEDS OF SALE, RENTALS OR OTHER MONEYS DERIVED
FROM THE DISPOSITION THEREOF FOR ITS CORPORATE PURPOSE.
  7. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW
TO THE CONTRARY, EACH  CORPORATION  MAY  MAKE  PURCHASES  OF  MATERIALS,
EQUIPMENT  OR  SUPPLIES,  WHEN AVAILABLE, THROUGH A PARTICIPATING COUNTY
SUBJECT TO ANY PROCEDURES OR RULES WHICH  MAY  BE  ESTABLISHED  BY  SUCH
PARTICIPATING  COUNTY  PRESCRIBING  THE  CONDITIONS UNDER WHICH, AND THE
MANNER IN WHICH PURCHASES MAY BE MADE. ALL PURCHASES SHALL BE SUBJECT TO
AUDIT AND INSPECTION BY THE CORPORATION AND THE CORPORATION SHALL ACCEPT
SOLE RESPONSIBILITY FOR ANY PAYMENT  DUE  THE  VENDOR.  THE  CORPORATION
SHALL  MAKE  NO PURCHASE THROUGH THE PARTICIPATING COUNTY WHEN BIDS HAVE
BEEN RECEIVED FOR SUCH PURCHASE BY THE CORPORATION, UNLESS SUCH PURCHASE
MAY BE MADE UPON THE SAME TERMS,  CONDITIONS  AND  SPECIFICATIONS  AT  A
LOWER PRICE THROUGH THE PARTICIPATING COUNTY.
  S  507.  CONTRACTS  OF  CORPORATIONS.    1. EACH CORPORATION SHALL LET
CONTRACTS FOR CONSTRUCTION OR ANY OTHER WORK, INCLUDING  THE  FURNISHING
OF  MATERIALS  OR  SUPPLIES  INCIDENT  THERETO,  AND  CONTRACTS  FOR THE
PURCHASE OR PROCUREMENT OF EQUIPMENT, MATERIALS 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 WITH-
OUT PUBLIC LETTING, PROVIDED, HOWEVER, THAT WHERE THE CORPORATION DETER-
MINES  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 AUTHORIZED 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 SECTION SIX HUNDRED NINE OF THIS CHAPTER
IN THE CASE OF THE METROPOLITAN OFF-TRACK BETTING CORPORATION.
  2. THE CORPORATION MAY MAKE RULES AND REGULATIONS GOVERNING THE QUALI-
FICATIONS  OF  BIDDERS  ENTERING  INTO SUCH A CONTRACT WHERE THE COST OF
SUCH A CONTRACT  EXCEEDS  TEN  THOUSAND  DOLLARS.  THE  BIDDING  MAY  BE
RESTRICTED  TO  THOSE  WHO  SHALL HAVE QUALIFIED PRIOR TO THE RECEIPT OF
BIDS ACCORDING TO STANDARDS FIXED BY THE CORPORATION; PROVIDED, HOWEVER,
THAT NOTICE OR NOTICES FOR THE SUBMISSION  OF  QUALIFICATIONS  SHALL  BE
PUBLISHED  IN  A  NEWSPAPER  WITH A GENERAL CIRCULATION IN THE REGION AT
LEAST ONCE, NOT LESS THAN TEN DAYS PRIOR  TO  THE  DATE  FIXED  FOR  THE
FILING OF QUALIFICATIONS.
  3.  IT  SHALL BE A MISDEMEANOR FOR A DIRECTOR OF THE CORPORATION OR AN
OFFICER, AGENT,  EXECUTIVE  OR  OTHER  EMPLOYEE  RETAINED,  EMPLOYED  OR
APPOINTED  BY  THE  CORPORATION  TO  BE IN ANY MANNER OR WAY INTERESTED,
DIRECTLY OR INDIRECTLY, AS PRINCIPAL, SURETY OR OTHERWISE IN A CONTRACT,
THE EXPENSE OR CONSIDERATION WHEREOF IS PAYABLE  OUT  OF  FUNDS  OF  THE
CORPORATION.

A. 9997                            10

  S  516.  MONEYS  OF  CORPORATIONS; DISPOSITION OF NET REVENUES. 1. THE
MONETARY TRANSACTIONS OF THE CORPORATION AND THE KEEPING  OF  ITS  BOOKS
AND  ACCOUNTS  SHALL  BE UNDER THE SUPERVISION OF THE BOARD OF DIRECTORS
WHO SHALL BE SUBJECT TO THE GENERAL AND  SPECIFIC  JURISDICTION  OF  THE
STATE BOARD AND TO AUDIT BY THE COMPTROLLER.
  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.  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.
  3. THE COMPTROLLER  AND  HIS  LEGALLY  AUTHORIZED  REPRESENTATIVE  ARE
AUTHORIZED  TO  AND  SHALL FROM TIME TO TIME BUT AT LEAST ONCE ANNUALLY,
EXAMINE THE  ACCOUNTS  AND  BOOKS  OF  THE  CORPORATION,  INCLUDING  ITS
RECEIPTS,  DISBURSEMENTS,  CONTRACTS, LEASES, SINKING FUNDS, INVESTMENTS
AND ANY OTHER RECORDS AND PAPERS RELATING TO ITS FINANCIAL STANDING.
  4. THE CORPORATION SHALL HAVE POWER, NOTWITHSTANDING THE PROVISIONS OF
THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY OF ITS BONDS AS TO THE
CUSTODY, COLLECTION, SECURING, INVESTMENT AND PAYMENT OF ANY  MONEYS  OF
THE CORPORATION OR ANY MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT
OF  BONDS IN ANY WAY TO SECURE BONDS, AND TO CARRY OUT ANY SUCH CONTRACT
NOTWITHSTANDING THAT SUCH CONTRACT MAY BE INCONSISTENT WITH THE PREVIOUS
PROVISIONS OF THIS SECTION.
  5. MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF  BONDS  OR  IN
ANY  WAY  TO  SECURE BONDS AND DEPOSITS OF SUCH MONEYS MAY BE SECURED IN
THE SAME MANNER AS MONEYS OF THE CORPORATION, AND ALL  BANKS  AND  TRUST
COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOSITS.
  S  3.  There is hereby created a task force on the future of off-track
betting in New York state. The task force shall  be  comprised  of  five
members,  appointed  by  the governor, one of whom shall be appointed on
the recommendation of the temporary president of the senate and  one  of
whom  shall  be  appointed  on  the recommendation of the speaker of the
assembly. All members shall be appointed within 30 days of the effective
date of this act. Task force members shall receive no  compensation  for
their  services, but shall be reimbursed for actual and necessary travel
expenses incurred in the performance of their duties. The task force  is

A. 9997                            11

authorized  to utilize the services and support of the racing and wager-
ing board, the division of the lottery and any other state entity  which
may  contribute  to  its  mission. The task force shall analyze and make
recommendations  concerning  the  optimal  utilization  of  the  state's
regional off-track betting system with an emphasis on the system's capa-
bility to raise revenues for state and local governments and  strengthen
the racing and breeding industries in New York. Such analyses and recom-
mendations  shall  result from a study to be conducted by the task force
in consultation with representatives of the state's  regional  off-track
betting corporations, representatives of local governments, thoroughbred
and  harness  racetrack  operators,  horsemen and breeders, operators of
video  lottery  terminals  at  various  tracks,   pari-mutuel/technology
vendors  serving  the  pari-mutuel  industry and New York State American
Federation of Labor-Congress of Industrial Organizations. The task force
shall no later than March 1, 2011 report its  findings  and  recommenda-
tions  to  the governor and the legislature.  However, the status of its
ongoing inquiry shall be made available at any time to the governor, the
temporary president of the senate and the speaker of the  assembly  upon
request.
  Such  analysis should, but may not be limited to, focus on the current
and future pari-mutuel marketplace with respect to wagering at off-track
sites,  legislative  and  regulatory  issues,  the  industry's  changing
competitive  environment,  the  economic contributions of the racing and
breeding industry to New York and its communities and potential  revenue
impacts  to  the state and industry, and the necessity for regulation of
advance deposit wagering providers that are engaged in the  business  of
accepting  pari-mutuel  wagering on horse racing from persons within New
York state.
  S 4. Notwithstanding any other provision of this act or any other law,
rule or regulation, the public benefit corporations  known  as  the  New
York  city off-track betting corporation and the Nassau county off-track
betting corporation, shall upon the effective date of this act, continue
in existence as a combined corporation to be known as  the  Metropolitan
off-track  betting corporation and shall continue to be the public bene-
fit corporation authorized to operate the system for off-track  pari-mu-
tuel  wagering  on  horse  races within New York city and Nassau county,
subject to the provisions of  this  act,  and  in  accordance  with  the
racing,  pari-mutuel  wagering and breeding law and all other applicable
requirements of law.  The  Metropolitan  off-track  betting  corporation
shall  continue  to be bound on and after the effective date of this act
by any contract, lease,  memorandum  of  understanding,  requirement  of
statute  or  other lawful obligation or liability by or to which the New
York city or Nassau county off-track betting corporation  was  a  party,
obligated  or bound, or that otherwise applied to such corporation as of
or prior to the effective date of this act. Except as otherwise  specif-
ically  provided  in this act, the Metropolitan off-track betting corpo-
ration shall continue to exercise the statutory, contractual  and  other
rights,  privileges, powers and duties that applied to such corporations
as of or prior to the effective date of this act.  To  the  extent  that
existing  collective  bargaining  agreements refer to actions, powers or
approvals by agencies of the city  of  New  York  or  Nassau  county  in
relation  to  matters not within the scope of section 606 of the racing,
pari-mutuel wagering and breeding law, such corporation shall, beginning
promptly upon the effective date of this act, negotiate with such repre-
sentatives to arrive at interim agreements that contain, except  as  may
otherwise  be  agreed  by the parties, substantially equivalent actions,

A. 9997                            12

powers or approvals by  such  corporation  or  agencies  of  the  state,
including  approval  by  the  governor's  office  of employee relations;
provided, however that such corporation shall reimburse New  York  city,
Nassau  county  or their designees for the actual costs of such actions,
incurred after the effective date of this act and prior to the execution
of such interim agreements. Nothing  contained  in  this  act  shall  be
construed  to  diminish  the  rights  of  employees under any collective
bargaining agreement, or any rights pursuant to paragraph (e) of  subdi-
vision 1 of section 209-a of the civil service law.
  S  5.  Notwithstanding any other provision of law or regulation to the
contrary, all funds accumulated in the capital acquisition funds, estab-
lished pursuant to sections 508 and 609-a  of  the  racing,  pari-mutuel
wagering  and breeding law, prior to July 1, 2010 or deposited into such
fund thereafter shall be made available to  the  Metropolitan  off-track
betting corporation for any corporate purpose.
  S  6.  Notwithstanding  any  other provision of law or regulation, the
board of directors of the Metropolitan off-track betting corporation may
meet in executive session, including  telephonically,  on  an  emergency
basis without notice at any time prior to August 1, 2010.
  S 7. Notwithstanding any other provision of law or regulation, nothing
in  this  act shall diminish the rights that retired employees and offi-
cers of the New York city and Nassau  county  off-track  betting  corpo-
rations   have   to  participate  in,  and  receive  benefits  from  any
city/county authorized health  insurance  or  welfare  benefit  program;
provided,  however, that the corporation shall reimburse the city/county
or its designee for the actual cost of such benefits.
  S 8. The opening paragraph of section 509-a of the racing, pari-mutuel
wagering and breeding law, as amended by chapter  346  of  the  laws  of
1990, is amended to read as follows:
  The  corporation  may  create and establish a capital acquisition fund
for the purpose of financing the acquisition, construction or  equipping
of  offices,  facilities  or  premises  of the corporation. Such capital
acquisition fund shall consist of (i) the amounts specified pursuant  to
subdivision  [three-a]  THREE of section five hundred thirty-two of this
chapter; and  (ii)  contributions  from  the  corporation's  pari-mutuel
wagering pools, subject to the following limitations:
  S  9. Sections 518, 519, 521, 523, 527 and 532 of the racing, pari-mu-
tuel wagering and breeding law are REPEALED and six  new  sections  518,
519, 521, 523, 527 and 532 are added to read as follows:
  S  518.  OFF-TRACK PARI-MUTUEL BETTING; OBJECTIVES. IN THE EXERCISE OF
THE POWER VESTED IN IT BY SUBDIVISION ONE OF SECTION NINE OF ARTICLE ONE
OF THE  STATE  CONSTITUTION,  THE  LEGISLATURE  HEREBY  PRESCRIBES  THAT
OFF-TRACK PARI-MUTUEL BETTING ON HORSE RACES, CONDUCTED UNDER THE ADMIN-
ISTRATION  OF  THE  STATE  RACING  AND  WAGERING BOARD IN THE MANNER AND
SUBJECT TO THE CONDITIONS PROVIDED FOR IN THIS ARTICLE, SHALL BE LAWFUL,
NOTWITHSTANDING THE PROVISIONS OF ANY OTHER  LAW,  GENERAL,  SPECIAL  OR
LOCAL,   INCLUDING   ANY   LAW  PROHIBITING  OR  RESTRICTING  LOTTERIES,
POOL-SELLING OR BOOKMAKING OR ANY OTHER KIND OF GAMBLING; IT  BEING  THE
PURPOSE  OF  THIS  ARTICLE TO DERIVE FROM SUCH BETTING, AS AUTHORIZED BY
THIS ARTICLE, A REASONABLE REVENUE FOR THE SUPPORT OF GOVERNMENT, AND TO
PREVENT AND CURB UNLAWFUL  BOOKMAKING  AND  ILLEGAL  WAGERING  ON  HORSE
RACES. IT IS ALSO THE INTENTION OF THIS ARTICLE TO ENSURE THAT OFF-TRACK
BETTING  IS  CONDUCTED IN A MANNER COMPATIBLE WITH THE WELL-BEING OF THE
HORSE RACING AND BREEDING INDUSTRIES IN THIS STATE, WHICH INDUSTRIES ARE
AND SHOULD CONTINUE TO BE MAJOR SOURCES OF REVENUE TO  STATE  AND  LOCAL
GOVERNMENT AND SOURCES OF EMPLOYMENT FOR THOUSANDS OF STATE RESIDENTS.

A. 9997                            13

  S 519. DEFINITIONS. THE FOLLOWING TERMS SHALL MEAN AND INCLUDE:
  1.  "REGION."  ONE OR MORE OF THE FOLLOWING NAMED REGIONS COMPRISED OF
THE COUNTIES INDICATED:
  A. SUFFOLK: SUFFOLK COUNTY;
  B. NASSAU: NASSAU COUNTY;
  C. NEW YORK CITY: THE FIVE COUNTIES COMPRISING THE CITY OF NEW YORK;
  D. CATSKILL: BROOME, CHEMUNG, CHENANGO,  DELAWARE,  ORANGE,  ROCKLAND,
SULLIVAN,  TIOGA,  DUTCHESS,  TOMPKINS,  WESTCHESTER,  PUTNAM AND ULSTER
COUNTIES;
  E. CAPITAL  DISTRICT:  ALBANY,  CLINTON,  COLUMBIA,  CORTLAND,  ESSEX,
FRANKLIN, FULTON, GREENE, HAMILTON, HERKIMER, MADISON, MONTGOMERY, ONEI-
DA,  OTSEGO, RENSSELAER, SARATOGA, SCHENECTADY, SCHOHARIE, ST. LAWRENCE,
WARREN AND WASHINGTON COUNTIES;
  F. CENTRAL: LEWIS AND ONONDAGA COUNTIES;
  G. WESTERN: ALLEGANY, CATTARAUGUS, CAYUGA, CHAUTAUQUA, ERIE,  GENESEE,
JEFFERSON,   LIVINGSTON,  MONROE,  NIAGARA,  ONTARIO,  ORLEANS,  OSWEGO,
SCHUYLER, SENECA, STEUBEN, WAYNE, WYOMING AND YATES COUNTIES;
  H. NOTWITHSTANDING THE OTHER PROVISIONS OF THIS SUBDIVISION, WHEN  AND
IF THE CENTRAL REGIONAL OFF-TRACK BETTING CORPORATION IS ESTABLISHED, IT
SHALL  INCLUDE,  IN  ADDITION TO THE COUNTIES LISTED IN PARAGRAPH F, THE
FOLLOWING: CAYUGA, CHENANGO, CORTLAND,  FRANKLIN,  HERKIMER,  JEFFERSON,
MADISON, ONEIDA, OSWEGO, OTSEGO AND TOMPKINS COUNTIES.
  I.  NOTWITHSTANDING THE OTHER PROVISIONS OF THIS SUBDIVISION, WHEN THE
METROPOLITAN REGIONAL OFF-TRACK BETTING CORPORATION IS  ESTABLISHED,  IT
SHALL INCLUDE NEW YORK CITY AND NASSAU COUNTY.
  2.  "EXOTIC  BET" OR "EXOTIC WAGER." A SINGLE BET OR WAGER ON THREE OR
MORE HORSES, EVIDENCED BY A SINGLE TICKET AND REPRESENTING  AN  INTEREST
IN A SINGLE BETTING POOL.
  3.  "MULTIPLE  BET"  OR "MULTIPLE WAGER." A SINGLE BET OR WAGER ON TWO
HORSES, EVIDENCED BY A SINGLE TICKET AND REPRESENTING AN INTEREST  IN  A
SINGLE BETTING POOL.
  4.  "RETAINED  COMMISSION."  THE  PERCENTAGE RETAINED BY EACH REGIONAL
CORPORATION CONDUCTING OFF-TRACK BETTING OF ALL SUMS  DEPOSITED  IN  ANY
PARI-MUTUEL POOL THROUGH SUCH CORPORATION, LESS THE AMOUNTS REFUNDED AND
PAID  OR  HELD  FOR  PAYMENT  TO THE HOLDERS OF WINNING TICKETS THEREIN,
PROVIDED SUCH TICKETS BE PRESENTED FOR PAYMENT PRIOR TO APRIL  FIRST  OF
THE  YEAR FOLLOWING THE YEAR OF THEIR PURCHASE, AND LESS AN AMOUNT WHICH
SHALL BE RETAINED TO COVER THE "COST OF CORPORATION'S FUNCTIONS" AS  SET
FORTH  IN  SECTIONS FIVE HUNDRED ONE AND SIX HUNDRED TWO OF THIS CHAPTER
AND THE STATE TAX LEVIED PURSUANT TO SUBDIVISION  ONE  OF  SECTION  FIVE
HUNDRED  TWENTY-SEVEN  OF  THIS  ARTICLE,  AT THE SAME RATE OF RETENTION
ESTABLISHED BY THE TRACK ACCEPTING WAGERS FROM EACH SUCH REGIONAL CORPO-
RATION.
  5. "ARTICLE." AS USED IN THIS ARTICLE MAY ALSO REFER TO ARTICLES  FIVE
AND SIX.
  S  521. APPROVAL OF PLANS OF OPERATION; AMENDMENTS. IN ORDER TO ACCOM-
PLISH THE OBJECTIVES OF THIS ARTICLE, THE BOARD SHALL  HAVE  THE  POWER,
SUBJECT  TO  THE  PROVISIONS  OF  THIS  ARTICLE BUT WITHOUT LIMITING THE
GENERALITY OF ANY PROVISION OF THIS CHAPTER, TO APPROVE A PLAN OF OPERA-
TION SUBMITTED BY ANY REGIONAL CORPORATION CREATED UNDER ARTICLE FIVE OF
THIS CHAPTER.
  1. BEFORE IT MAY GRANT  SUCH  APPROVAL,  THE  BOARD  MUST  REVIEW  AND
APPROVE A FEASIBILITY STUDY SUBMITTED BY SUCH CORPORATION, INCLUDING BUT
NOT LIMITED TO THE FOLLOWING SUBJECTS:

A. 9997                            14

  A.  THE  OVERALL PRACTICABILITY OF ESTABLISHING AND OPERATING AN EFFI-
CIENT AND PROFITABLE SYSTEM OF OFF-TRACK BETTING IN SUCH  REGION  OR  IN
SUCH COUNTIES THAT HAVE ELECTED TO PARTICIPATE IN THE CORPORATION;
  B. THE POTENTIAL MARKET;
  C. THE ESTIMATED COSTS OF OPERATION;
  D. THE PROBABLE TYPES OF WAGERING AND NUMBER OF OPPORTUNITIES REQUIRED
FOR SUCCESSFUL OPERATION;
  E. THE PROBABLE IMPACT OF THE PROPOSED OPERATION UPON ON-TRACK ATTEND-
ANCE  AND  PARI-MUTUEL  BETTING WITHIN THE REGION. THE BOARD MAY, WITHIN
THE TIME PROVIDED FOR APPROVAL, REQUEST ADDITIONAL INFORMATION FROM  THE
CORPORATION.  DISAPPROVAL  OF THE FEASIBILITY STUDY SHALL BE ACCOMPANIED
BY A STATEMENT OF THE REASONS THEREFOR AND SHALL BE  TREATED  AS  DISAP-
PROVAL OF A PLAN UNDER SUBDIVISION THREE OF THIS SECTION.
  2. THE PLAN OF OPERATION SHALL INCLUDE THE FOLLOWING:
  A.  THE  ORGANIZATIONAL  STRUCTURE  OF  THE  CORPORATION INCLUDING THE
APPROXIMATE NUMBER AND COMPENSATION OF EMPLOYEES;
  B. A NARRATIVE DESCRIPTION OF THE SYSTEM;
  C. THE TYPES AND APPROXIMATE COST OF  DATA  PROCESSING,  COMMUNICATION
AND  TRANSMISSION  FACILITIES  THAT  WILL BE UTILIZED, INCLUDING BACK-UP
SYSTEMS;
  D. SECURITY MEASURES;
  E. THE TYPE AND NUMBER OF BETTING OPPORTUNITIES TO BE OFFERED;
  F. THE RACE TRACKS AND RACES FOR WHICH BETS WILL BE TAKEN;
  G. THE MAXIMUM AND MINIMUM NUMBER OF RETAIL OUTLETS OR BETTING OFFICES
TO BE ESTABLISHED;
  H. THE PROPOSED SYSTEM OF ACCOUNTS; AND
  I. THE AMOUNT AND PROPOSED SOURCES OF FINANCING.
  3. WITHIN NINETY DAYS OF RECEIPT OF THE FEASIBILITY  STUDY  AND  PLAN,
THE  BOARD  SHALL  ISSUE  AN ORDER APPROVING THE PLAN, APPROVING IT WITH
MODIFICATIONS OR DENYING APPROVAL  AND  STATING  ITS  REASONS  THEREFOR.
WITHIN  SUCH  PERIOD  THE  BOARD  MAY  REQUEST ADDITIONAL INFORMATION OR
SUGGEST AMENDMENTS. IF THE BOARD  FAILS  TO  APPROVE  THE  PLAN  WITHOUT
MODIFICATION,  THE  CORPORATION  MAY REQUEST A PUBLIC HEARING TO BE HELD
WITHIN THIRTY DAYS OF THE ISSUANCE OF AN ORDER APPROVING AN  APPLICATION
WITH MODIFICATIONS OR DENYING IT. THE BOARD SHALL ISSUE ITS FINAL DETER-
MINATION  WITHIN TEN DAYS OF SUCH HEARING. THE CORPORATION MAY SUBMIT AN
AMENDED APPLICATION NO SOONER THAN NINETY DAYS AFTER A DENIAL.
  4. A PLAN OF OPERATION MAY BE AMENDED FROM TIME TO TIME AT THE REQUEST
OF EITHER THE CORPORATION OR THE BOARD. THE CORPORATION SHALL  HAVE  THE
RIGHT  TO  BE  HEARD CONCERNING ANY AMENDMENT TO THE PLAN PROPOSED AFTER
IMPLEMENTATION AND THE BOARD SHALL DISPOSE OF SUCH  PROPOSED  AMENDMENTS
AS EXPEDITIOUSLY AS PRACTICABLE, BUT NO LATER THAN THIRTY DAYS FOLLOWING
SUBMISSION  BY THE CORPORATION OR, IN THE CASE OF AMENDMENTS PROPOSED BY
THE BOARD, OBJECTION BY THE CORPORATION.
  5. ANY ARRANGEMENTS FOR  TELECASTS  OR  BROADCASTS  OF  RUNNING  RACES
PURSUANT  TO  CONTRACTS  WITH TRACK OPERATORS SHALL CONSTITUTE A PART OF
THE PLAN OF OPERATION, OR AN AMENDMENT THERETO, AS THE CASE MAY BE.
  6. A.  THE PLAN OF OPERATION OF THE NEW YORK  CITY  OFF-TRACK  BETTING
CORPORATION  IN  EFFECT  ON  JULY FIRST, NINETEEN HUNDRED SEVENTY-THREE,
SHALL BE DEEMED APPROVED BY THE BOARD, BUT SHALL THEREAFTER  BE  SUBJECT
TO  THE  GENERAL JURISDICTION OF THE BOARD IN THE SAME MANNER AS ARE THE
PLANS OF OTHER REGIONAL CORPORATIONS.
  B. THE PLAN OF OPERATION FOR THE METROPOLITAN OFF-TRACK BETTING CORPO-
RATION,  TO  BE  ADOPTED  BY  SAID  CORPORATION  NO  LATER   THAN   JULY
THIRTY-FIRST,  TWO  THOUSAND TEN, SHALL BE DEEMED APPROVED BY THE BOARD,

A. 9997                            15

BUT SHALL THEREAFTER BE SUBJECT TO THE GENERAL JURISDICTION OF THE BOARD
IN THE SAME MANNER AS ARE THE PLANS OF OTHER REGIONAL CORPORATIONS.
  7.  A. THE CITY OF SCHENECTADY MAY CONTINUE TO OPERATE OFF-TRACK PARI-
MUTUEL BETTING WITHIN SUCH CITY, SUBJECT  TO  THE  JURISDICTION  OF  THE
STATE  RACING  AND  WAGERING  BOARD,  UNTIL THE BOARD APPROVES A PLAN OF
OPERATION SUBMITTED BY THE CAPITAL DISTRICT REGIONAL  OFF-TRACK  BETTING
CORPORATION  AND SUCH PLAN OF OPERATION IS IMPLEMENTED; PROVIDED, HOWEV-
ER, THAT DURING ANY PERIOD THAT THE CITY  OF  SCHENECTADY  CONTINUES  TO
OPERATE  OFF-TRACK PARI-MUTUEL BETTING WITHIN SUCH CITY PURSUANT TO THIS
SUBDIVISION, IT MAY ACCEPT OFF-TRACK WAGERS  ON  RACES  AT  ANY  HARNESS
TRACK  WITHIN  THE  STATE WHICH SO AGREES SUBJECT TO THE APPROVAL OF THE
STATE RACING AND WAGERING BOARD UNTIL SUCH TIME  AS  THE  HARNESS  TRACK
LOCATED WITHIN THE CAPITAL DISTRICT AND THE CITY OF SCHENECTADY MUTUALLY
AGREE OF THE PROVISION OF APPROPRIATE SPACE AND FACILITIES AT SUCH TRACK
FOR  SUCH CITY AND SUCH AGREEMENT IS IMPLEMENTED. SUCH PLAN OF OPERATION
SHALL MAKE DUE PROVISION WITH RESPECT TO INVESTMENTS AND OBLIGATIONS  OF
THE  CITY  OF SCHENECTADY MADE OR INCURRED IN THE OPERATION OF OFF-TRACK
PARI-MUTUEL BETTING. THE COUNTY OF SCHENECTADY SHALL REIMBURSE THE  CITY
OF  SCHENECTADY  ON  ACCOUNT  OF  LOST  REVENUES  FROM  THE OPERATION OF
OFF-TRACK BETTING. THE AMOUNT OF REIMBURSEMENT SHALL BE CALCULATED UNDER
THE RULES OF THE BOARD TO GUARANTEE THAT THE CITY SHALL RECEIVE ANNUALLY
AN AMOUNT EQUAL TO THE NET REVENUE RECEIVED FROM OFF-TRACK  BETTING  FOR
THE  CALENDAR YEAR NINETEEN HUNDRED SEVENTY-THREE OR A PER CENTUM OF THE
NET REVENUES RECEIVED BY SUCH COUNTY OBTAINED BY DIVIDING THE BETS ORIG-
INATING IN SUCH CITY BY THE BETS ORIGINATING IN SUCH COUNTY  DURING  THE
DISTRIBUTION PERIOD, WHICHEVER IS LESS. REIMBURSEMENT SHALL CONTINUE FOR
A PERIOD OF TEN YEARS AND SHALL BE MADE IN SUBSTANTIALLY EQUAL QUARTERLY
PAYMENTS.
  B.  UNTIL SUCH TIME AS THE CAPITAL DISTRICT REGIONAL OFF-TRACK BETTING
CORPORATION'S PLAN OF OPERATION HAS BEEN APPROVED BY  THE  STATE  RACING
AND  WAGERING  BOARD  AND THE COUNTY OF SCHENECTADY HAS ENACTED ENABLING
LEGISLATION TO JOIN SUCH CORPORATIONS AND  SUCH  COUNTY'S  PARTICIPATION
HAS BEEN IMPLEMENTED, THE CITY OF SCHENECTADY SHALL HAVE ALL THE RIGHTS,
POWERS,  DUTIES  AND OBLIGATIONS OF THE COUNTY OF SCHENECTADY UNDER THIS
CHAPTER, INCLUDING BUT NOT LIMITED TO THE RIGHT TO  PARTICIPATE  IN  THE
FORMATION  OF  SUCH  CORPORATION  OR  SUBSEQUENTLY TO PARTICIPATE IN THE
OPERATION THEREOF, AS THE CASE MAY  BE,  EXCEPT  THAT  THE  GEOGRAPHICAL
BOUNDARIES  OF SUCH CITY'S PARTICIPATION SHALL BE LIMITED TO THE CITY OF
SCHENECTADY.
  C. THE STATE OF NEW YORK AND THE COUNTY  OF  NASSAU  MAY  CONTINUE  TO
OPERATE  OFF-TRACK  PARI-MUTUEL  BETTING WITHIN THE CITY OF NEW YORK AND
THE COUNTY OF NASSAU, SUBJECT TO THE JURISDICTION OF  THE  STATE  RACING
AND  WAGERING  BOARD,  UNTIL THE METROPOLITAN REGIONAL OFF-TRACK BETTING
CORPORATION APPROVES A PLAN OF OPERATION, TO BE ADOPTED  BY  THE  CORPO-
RATION  NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND TEN, WHICH PLAN OF
OPERATION SHALL BE IMPLEMENTED NO LATER THAN  AUGUST  THIRTY-FIRST,  TWO
THOUSAND  TEN;  PROVIDED,  HOWEVER,  THAT DURING ANY PERIOD THAT THE NEW
YORK CITY OFF-TRACK BETTING  CORPORATION  AND/OR  THE  NASSAU  OFF-TRACK
BETTING  CORPORATION  CONTINUES TO OPERATE OFF-TRACK PARI-MUTUEL BETTING
WITHIN SUCH CITY AND/OR COUNTY PURSUANT  TO  THIS  SUBDIVISION,  IT  MAY
ACCEPT  OFF-TRACK  WAGERS ON RACES AT ANY HARNESS TRACK WITHIN THE STATE
FOR WHICH IT MAY ACCEPT BETS ON THE EFFECTIVE DATE HEREOF. SUCH PLAN  OF
OPERATION SHALL MAKE DUE PROVISION WITH RESPECT TO INVESTMENTS AND OBLI-
GATIONS  OF  THE  CITY  OF  NEW YORK AND/OR THE COUNTY OF NASSAU MADE OR
INCURRED IN THE OPERATION OF OFF-TRACK PARI-MUTUEL BETTING  THROUGH  THE

A. 9997                            16

DATE  SAID  PLAN  OF  OPERATION  FOR THE METROPOLITAN REGIONAL OFF-TRACK
BETTING CORPORATION IS IMPLEMENTED.
  8. THE BOARD MAY AUTHORIZE AND APPROVE:
  A.  AN  APPLICATION  SUBMITTED  BY THE NEW YORK CITY OFF-TRACK BETTING
CORPORATION TO AMEND ITS PLAN OF OPERATION, PURSUANT TO  THE  PROVISIONS
OF THIS SECTION, TO PROVIDE FOR THE DISPLAY IN NO MORE THAN TWO EXISTING
FACILITIES  WITHIN RICHMOND COUNTY OF TELECASTS OF LIVE AUDIO AND VISUAL
SIGNALS OF HARNESS RACING FROM ANY HARNESS RACING ASSOCIATION OR  CORPO-
RATION  WITHIN  ITS REGION; PROVIDED, HOWEVER, THAT: (I) THE ASSOCIATION
OR CORPORATION CONDUCTING SUCH RACING HAS ENTERED INTO A WRITTEN  AGREE-
MENT  FOR SUCH TELECASTS WITH THE NEW YORK CITY OFF-TRACK BETTING CORPO-
RATION PURSUANT TO SECTION FIVE HUNDRED TWENTY-SEVEN  OF  THIS  ARTICLE,
WHICH AGREEMENT SHALL TERMINATE NO LATER THAN THE THIRTIETH DAY OF JUNE,
NINETEEN  HUNDRED  EIGHTY-FIVE; (II) ALL EXPENSES INCURRED IN THE IMPLE-
MENTATION OF SUCH AMENDMENT TO ITS PLAN OF OPERATION FOR SUCH  TELECAST-
ING  SHALL  BE THE RESPONSIBILITY OF THE NEW YORK CITY OFF-TRACK BETTING
CORPORATION; AND (III) THE BOARD SHALL SUBMIT REPORTS  TO  THE  GOVERNOR
AND  THE  LEGISLATURE  EVALUATING  THE RESULTS OF SUCH EXPERIMENT ON THE
COMPATIBILITY WITH THE WELL-BEING  OF  THE  HORSE  RACING  AND  BREEDING
INDUSTRIES  IN  THIS  STATE,  AND ITS EFFECT ON HANDLE AND ATTENDANCE AT
OFF-TRACK FACILITIES WITHIN RICHMOND COUNTY, AND  INCLUDING  RECOMMENDA-
TIONS  REGARDING  THE FUTURE AUTHORIZATION OF THE TELECAST OF LIVE AUDIO
AND VISUAL SIGNALS INTO OFF-TRACK BETTING FACILITIES; AND
  B. ONE OTHER APPLICATION SUBMITTED  BY  AN  OFF-TRACK  BETTING  CORPO-
RATION,  OTHER  THAN THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, TO
AMEND ITS PLAN OF OPERATION, PURSUANT TO THE PROVISIONS OF THIS SECTION,
TO PROVIDE FOR THE DISPLAY IN TWO EXISTING FACILITIES WITHIN ITS  REGION
OF TELECASTS OF LIVE AUDIO AND VISUAL SIGNALS OF HARNESS RACING FROM ANY
HARNESS  RACING  ASSOCIATION  OR CORPORATION WITHIN ITS REGION; PROVIDED
HOWEVER, THAT: (I) THE ASSOCIATION OR CORPORATION CONDUCTING SUCH RACING
HAS ENTERED INTO A  WRITTEN  AGREEMENT  FOR  SUCH  TELECASTS  WITH  SUCH
OFF-TRACK   BETTING   CORPORATION   PURSUANT  TO  SECTION  FIVE  HUNDRED
TWENTY-SEVEN OF THIS ARTICLE, WHICH AGREEMENT SHALL TERMINATE  NO  LATER
THAN  THE  THIRTIETH DAY OF JUNE, NINETEEN HUNDRED EIGHTY-FIVE; (II) ALL
EXPENSES INCURRED IN THE IMPLEMENTATION OF SUCH AMENDMENT TO ITS PLAN OF
OPERATION FOR SUCH  TELECASTING  SHALL  BE  THE  RESPONSIBILITY  OF  THE
OFF-TRACK  BETTING CORPORATION; AND (III) THE BOARD SHALL SUBMIT REPORTS
TO THE GOVERNOR AND THE  LEGISLATURE  EVALUATING  THE  RESULTS  OF  SUCH
EXPERIMENT  ON THE COMPATIBILITY WITH THE WELL-BEING OF THE HORSE RACING
AND BREEDING INDUSTRIES IN THIS STATE, AND AT OFF-TRACK FACILITIES WITH-
IN ITS  REGION,  AND  INCLUDING  RECOMMENDATIONS  REGARDING  THE  FUTURE
AUTHORIZATION  OF  THE  TELECAST  OF  LIVE AUDIO AND VISUAL SIGNALS INTO
OFF-TRACK BETTING FACILITIES.
  C. PROVIDED, HOWEVER,  THAT  SUCH  AUDIO  AND  VISUAL  TELECASTS  INTO
APPROVED FACILITIES SHALL COMMENCE NO EARLIER THAN SIXTY DAYS AFTER SUCH
TELECASTS  HAVE  BEEN  APPROVED. DURING SUCH TIME, THE OFF-TRACK BETTING
CORPORATION SHALL PROVIDE TO THE BOARD DAILY DATA, TO INCLUDE BUT NOT BE
LIMITED TO, WAGERS, SEPARATELY BY TYPE OF RACING AND WAGERS,  ATTENDANCE
AND  PROMOTION  EXPENDITURES  OF  SUCH  FACILITIES IN SUCH MANNER AS THE
BOARD MAY REQUIRE. SUCH DATA WILL BE USED AS THE  PRE-TELECAST  BASE  TO
EVALUATE  THE  IMPACT  OF SUCH TELECASTS. IN ADDITION, SUCH SIMILAR DATA
AND INFORMATION SHALL ALSO BE SUPPLIED TO THE BOARD  DURING  THE  PERIOD
THAT  SUCH  TELECASTS  ARE  AUTHORIZED. NO CHANGE IN THE TYPES OF WAGERS
OFFERED TO PATRONS MAY BE MADE WITHOUT PRIOR  WRITTEN  APPROVAL  BY  THE
BOARD OF AT LEAST THIRTY DAYS IN ADVANCE OF SUCH REQUESTED CHANGE.

A. 9997                            17

  S  523.  GENERAL  LIMITATIONS  ON  OFF-TRACK  BETTING. THE BOARD SHALL
REQUIRE THAT ANY  REGIONAL  CORPORATION  CONDUCT  OFF-TRACK  PARI-MUTUEL
BETTING IN ACCORDANCE WITH THIS SECTION.
  1.  THE  SYSTEM  OF  OFF-TRACK  BETTING  OPERATED BY SUCH CORPORATION,
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, SHALL RESULT IN THE COMBI-
NATION OF ALL OFF-TRACK WAGERS WITH ON-TRACK WAGERS  SO  AS  TO  PRODUCE
COMMON  PARI-MUTUEL  BETTING  POOLS  FOR THE CALCULATION OF ODDS AND THE
DETERMINATION OF PAYOUTS FROM SUCH POOL, WHICH PAYOUT SHALL BE THE  SAME
FOR  ALL WINNING TICKETS, IRRESPECTIVE OF WHETHER A WAGER IS PLACED OFF-
TRACK OR ON-TRACK.
  2. EXOTIC AND MULTIPLE BETS ON RACES  RUN  WITHIN  THE  STATE  MAY  BE
APPROVED  BY THE BOARD WITHOUT A COMPARABLE ON-TRACK POOL, PROVIDED THAT
THE CORPORATION OR ASSOCIATION CONDUCTING SUCH RACES  SHALL  HAVE  FILED
WITH  THE  BOARD A WRITTEN CONSENT FOR SUCH OFF-TRACK EXOTIC OR MULTIPLE
BETS ON RACES HELD AT ITS TRACK.
  3. THE BOARD MAY APPROVE SEPARATE OFF-TRACK  POOLS  ON  RACES  RUN  IN
OTHER  STATES SUBJECT TO THE LIMITATIONS OF THIS SECTION AND OF SUBDIVI-
SION EIGHT OF THIS SECTION IN PARTICULAR.
  4. NO REGIONAL CORPORATION AUTHORIZED TO CONDUCT OFF-TRACK BETTING  BY
THE  BOARD  SHALL  ACCEPT  OFF-TRACK  WAGERS ON RACES RUN AT ANY HARNESS
TRACK LOCATED WITHOUT ITS REGION WHILE A HARNESS TRACK WITHIN ITS REGION
IS CONDUCTING A RACE MEETING INVOLVING PARI-MUTUEL BETTING  WITHOUT  THE
APPROVAL  OF  THE  REGIONAL  OPERATING HARNESS TRACK; PROVIDED, HOWEVER,
THAT FOR THE PURPOSES OF  THIS  SUBDIVISION,  THE  SUFFOLK  REGION,  THE
METROPOLITAN  REGION,  AND  THE PORTION OF THE CATSKILL REGION OUTSIDE A
SPECIAL BETTING DISTRICT  SHALL  BE  CONSIDERED  A  SINGLE  REGION;  AND
FURTHER  PROVIDED,  HOWEVER,  THAT FOR THE PURPOSES OF THIS SUBDIVISION,
THERE SHALL BE CREATED A HARNESS SPECIAL BETTING DISTRICT, CONSISTING OF
THE COUNTIES OF CAYUGA, CHENANGO, CORTLAND, FRANKLIN, HERKIMER,  JEFFER-
SON, LEWIS, MADISON, ONEIDA, ONONDAGA, OSWEGO, OTSEGO, ST.  LAWRENCE AND
TOMPKINS  IN  WHICH NO OFF-TRACK BETTING ON RACES RUN AT A HARNESS TRACK
WITHOUT SUCH SPECIAL BETTING DISTRICT SHALL BE PERMITTED WHILE A HARNESS
TRACK WITHIN SUCH SPECIAL BETTING DISTRICT IS CONDUCTING A RACE  MEETING
INVOLVING PARI-MUTUEL BETTING.
  4-A. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SUBDIVISION FOUR OF
THIS SECTION, REGIONAL OFF-TRACK BETTING CORPORATIONS ARE HEREBY AUTHOR-
IZED  AND  EMPOWERED IN EACH YEAR TO ACCEPT WAGERS ON THE RACES KNOWN AS
THE "DR. HARRY M. ZWEIG MEMORIAL TROT" AND "EMPIRE COMMISSION'S CUP"  (A
PACE)  TO  BE  RUN  UNDER  THE AUSPICES OF THE NEW YORK STATE INDUSTRIAL
EXHIBIT AUTHORITY.
  5. EXCEPT FOR RACES CONDUCTED BY A THOROUGHBRED TRACK IN THE  CATSKILL
REGION  DURING  A  MIXED  MEETING,  NO REGIONAL CORPORATION SHALL ACCEPT
WAGERS ON ANY THOROUGHBRED OR STEEPLECHASE RACE RUN ON ANY  THOROUGHBRED
OR STEEPLECHASE TRACK LOCATED WITHOUT ITS REGION WHILE A THOROUGHBRED OR
STEEPLECHASE  TRACK  WITHIN  ITS  REGION  IS  CONDUCTING  A RACE MEETING
INVOLVING PARI-MUTUEL BETTING WITHOUT  THE  APPROVAL  OF  THE  OPERATING
REGIONAL  THOROUGHBRED  OR  STEEPLECHASE TRACK, EXCEPT THAT THE CATSKILL
AND SUFFOLK REGIONAL CORPORATIONS MAY ACCEPT WAGERS ON ANY  THOROUGHBRED
TRACK OUTSIDE ITS REGION WHILE A THOROUGHBRED TRACK WITHIN THE REGION IS
CONDUCTING SUCH A RACE MEETING PROVIDED THE REGIONAL CORPORATION ACCEPTS
WAGERS  ON SUCH TRACK WITHIN THE REGION; PROVIDED, HOWEVER, THAT FOR THE
PURPOSES OF THIS SUBDIVISION, THERE  SHALL  BE  CREATED  A  THOROUGHBRED
SPECIAL  BETTING  DISTRICT, CONSISTING OF THE COUNTIES OF ORLEANS, GENE-
SEE, WYOMING, ALLEGANY, MONROE,  LIVINGSTON,  STEUBEN,  WAYNE,  ONTARIO,
YATES,  SENECA,  SCHUYLER,  CAYUGA,  TOMPKINS, ONONDAGA AND CORTLAND, IN
WHICH NO OFF-TRACK BETTING ON RACES RUN AT A  THOROUGHBRED  OR  STEEPLE-

A. 9997                            18

CHASE  TRACK WITHOUT SUCH SPECIAL DISTRICT INCLUDING SUCH A TRACK WITHIN
THE CATSKILL REGION SHALL BE PERMITTED WHILE A THOROUGHBRED OR  STEEPLE-
CHASE  TRACK  WITHIN  SUCH SPECIAL DISTRICT IS CONDUCTING A RACE MEETING
INVOLVING  PARI-MUTUEL  BETTING  WITHOUT  THE  APPROVAL OF THE OPERATING
REGIONAL THOROUGHBRED OR STEEPLECHASE  TRACK;  PROVIDED,  HOWEVER,  THAT
WITHIN  SUCH  DISTRICT IN THE COUNTIES OF WYOMING, ALLEGANY, STEUBEN AND
SCHUYLER OFF-TRACK BETTING ON RACES RUN  AT  A  TRACK  BY  A  FRANCHISED
CORPORATION  WITHOUT  SUCH SPECIAL DISTRICT SHALL BE PERMITTED. NOTWITH-
STANDING ANY INCONSISTENT PROVISION IN THE FOREGOING, THE REGIONAL  OFF-
TRACK BETTING CORPORATIONS ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT
ALL WAGERS ON RACES KNOWN AS THE "BELMONT STAKES", THE "TRAVERS STAKES",
THE  "BREEDERS'  CUP  SERIES"  AND THE "NEW YORK DERBY"; AND SUCH CORPO-
RATION, OUTSIDE OF A HARNESS SPECIAL BETTING DISTRICT, IS HEREBY AUTHOR-
IZED AND  EMPOWERED  TO  ACCEPT  WAGERS  ON  THE  RACES  COMPRISING  THE
SEVEN-DAY MEETING KNOWN AS THE "SYRACUSE MILE".
  6.  A.  NO  REGIONAL  CORPORATION  MAY ACCEPT WAGERS ON RACES RUN AT A
THOROUGHBRED OR STEEPLECHASE TRACK IN ANOTHER STATE OR COUNTRY  WHILE  A
THOROUGHBRED  OR  STEEPLECHASE  TRACK  WITHIN THIS STATE IS CONDUCTING A
RACE MEETING INVOLVING  PARI-MUTUEL  BETTING;  PROVIDED,  HOWEVER,  THAT
NOTWITHSTANDING  ANY  INCONSISTENT PROVISION, THE BOARD MAY DESIGNATE NO
MORE THAN FIFTEEN THOROUGHBRED OR STEEPLECHASE RACES PER YEAR  AS  RACES
OF  SPECIAL  INTEREST  ON  WHICH  OFF-TRACK  PARI-MUTUEL  BETTING MAY BE
ACCEPTED BY REGIONAL CORPORATIONS, PROVIDED FURTHER THAT FOR PURPOSES OF
THIS SUBDIVISION THE ACCEPTANCE OF WAGERS ON A SERIES OF RACES KNOWN  AS
THE  "BREEDERS'  CUP"  SHALL  BE  CONSIDERED AS A SINGLE THOROUGHBRED OR
STEEPLECHASE RACE OF SPECIAL INTEREST AND ALL SUCH RACES SHALL BE DETER-
MINED IN ACCORDANCE WITH ARTICLE NINE OF THIS CHAPTER.
  B. WHEN A RACE MEETING IS NOT BEING CONDUCTED BY A  FRANCHISED  CORPO-
RATION  AND  A  THOROUGHBRED  RACE MEETING IS BEING CONDUCTED AT A TRACK
LOCATED WITHIN  THE  THOROUGHBRED  SPECIAL  BETTING  DISTRICT,  REGIONAL
CORPORATIONS   AND   PORTIONS  OF  REGIONAL  CORPORATIONS  OUTSIDE  SUCH
DISTRICT, SHALL, IN ADDITION TO ACCEPTING WAGERS ON RACES AT SUCH TRACK,
ALSO BE PERMITTED TO ACCEPT WAGERS ON THOROUGHBRED RACES RUN IN  ANOTHER
STATE.  IN  THE  EVENT  THAT  WAGERS ARE ACCEPTED ON RACES RUN AT BOTH A
TRACK LOCATED IN THE THOROUGHBRED SPECIAL  BETTING  DISTRICT  AND  AT  A
TRACK  LOCATED  IN  ANOTHER  STATE, THE BALANCE OF THE AMOUNT PAYABLE TO
TRACKS WITHIN THIS STATE PURSUANT TO PARAGRAPH F OF SUBDIVISION  ONE  OF
SECTION FIVE HUNDRED TWENTY-SEVEN OF THIS ARTICLE, BUT (I) NOT LESS THAN
ONE  PER  CENTUM  ON REGULAR AND MULTIPLE WAGERING AND TWO PER CENTUM ON
EXOTIC WAGERS, SHALL BE PAID TO THE TRACK LOCATED WITHIN  THE  THOROUGH-
BRED  SPECIAL  BETTING DISTRICT RUNNING THOROUGHBRED RACES, AND (II) NOT
LESS THAN THREE-QUARTERS OF ONE  PER  CENTUM  OF  REGULAR  AND  MULTIPLE
WAGERING  AND  ONE  AND ONE-QUARTER PER CENTUM ON EXOTIC WAGERS SHALL BE
PAID TO THE HARNESS TRACK OPERATOR CONDUCTING RACING WITHIN  THE  REGION
WITHIN WHICH THE WAGERS ON SUCH OUT-OF-STATE RACES ARE PLACED.
  C.  IF AS A RESULT OF THE AUTHORIZATION GRANTED IN PARAGRAPH B OF THIS
SUBDIVISION, THE AVERAGE DAILY DISTRIBUTION TO HARNESS  TRACK  OPERATORS
FROM  REGIONAL  OFF-TRACK  BETTING  CORPORATIONS AND ATTRIBUTABLE TO THE
CONDUCT OF OFF-TRACK BETTING ON THOROUGHBRED RACES RUN  CONCURRENTLY  BY
BOTH  AN  IN-STATE  AND AN OUT-OF-STATE TRACK OPERATOR DURING THE PERIOD
FROM  JUNE   FIRST,   NINETEEN   HUNDRED   SEVENTY-EIGHT   THROUGH   MAY
THIRTY-FIRST,  NINETEEN  HUNDRED SEVENTY-NINE AND EACH SUCCEEDING TWELVE
MONTH PERIOD THEREAFTER IS LESS THAN THE AVERAGE DAILY  DISTRIBUTION  TO
SUCH  OPERATORS  FROM OFF-TRACK BETTING CORPORATIONS AND ATTRIBUTABLE TO
THE CONDUCT OF RACING BY A THOROUGHBRED RACING  ASSOCIATION  DURING  THE
BASE  PERIOD  OF  JUNE FIRST, NINETEEN HUNDRED SEVENTY-SEVEN THROUGH MAY

A. 9997                            19

THIRTY-FIRST, NINETEEN HUNDRED SEVENTY-EIGHT, SUCH  OPERATORS  SHALL  BE
ENTITLED  TO A CREDIT AGAINST THE STATE TAX IMPOSED UPON ITS PARI-MUTUEL
REVENUES. THE TAX CREDIT FOR ANY TWELVE MONTH PERIOD SHALL BE AN  AMOUNT
CALCULATED  BY  MULTIPLYING  THE SHORTFALL IN THE AVERAGE DAILY DISTRIB-
UTION BY THE NUMBER OF DAYS IN EACH TWELVE MONTH  PERIOD  THAT  REGIONAL
OFF-TRACK BETTING CORPORATIONS CONDUCT BETTING ON THOROUGHBRED RACES RUN
CONCURRENTLY  BY  BOTH  AN  IN-STATE AND AN OUT-OF-STATE TRACK OPERATOR.
THE BOARD SHALL SO CERTIFY TO THE STATE TAX  COMMISSION  THE  AMOUNT  OF
CREDIT  APPLICABLE  TO  EACH HARNESS TRACK OPERATOR NO LATER THAN THIRTY
DAYS FOLLOWING THE CLOSE OF EACH TWELVE MONTH PERIOD.
  7. NO REGIONAL CORPORATION MAY ACCEPT WAGERS ON RACES RUN AT A HARNESS
TRACK IN ANOTHER STATE OR COUNTRY WHILE  A  HARNESS  TRACK  WITHIN  THIS
STATE  IS  CONDUCTING  A  RACE  MEETING  INVOLVING  PARI-MUTUEL BETTING;
PROVIDED, HOWEVER, THAT NOTWITHSTANDING ANY INCONSISTENT PROVISIONS  THE
BOARD  MAY  DESIGNATE NO MORE THAN FIFTY HARNESS RACES PER YEAR AS RACES
OF SPECIAL INTEREST  ON  WHICH  OFF-TRACK  PARI-MUTUEL  BETTING  MAY  BE
ACCEPTED BY REGIONAL CORPORATIONS.
  8.  POOLS  PERMITTED  BY  SUBDIVISIONS  THREE,  SIX  AND SEVEN OF THIS
SECTION SHALL BE COMBINED INTO A SINGLE STATEWIDE POOL  FOR  THE  CALCU-
LATION  OF  ODDS AND THE DETERMINATION OF PAYOUTS WHICH SHALL BE UNIFORM
THROUGHOUT THE STATE.
  9. NOTWITHSTANDING ANY OTHER PROVISION OF THIS  ARTICLE  ANY  REGIONAL
CORPORATION  HAVING  A  MISSED POOL AS DEFINED IN THIS SUBDIVISION SHALL
DISPOSE OF SUCH POOL AS FOLLOWS:
  A. ANY MISSED POOLS OF WAGERS  PLACED  AT  OFF-TRACK  BETTING  PARLORS
SUBSEQUENT  TO  DECEMBER  THIRTY-FIRST,  NINETEEN HUNDRED EIGHTY-TWO AND
PRIOR TO AUGUST FIRST, NINETEEN HUNDRED NINETY-FOUR WHICH WERE NOT  USED
TO CALCULATE PAYOUTS TO WINNING BETTORS BECAUSE SUCH WAGERS FAILED TO BE
TRANSMITTED  TO  AND  WERE  NOT  INCLUDED  IN  THE STATEWIDE PARI-MUTUEL
BETTING POOL SHALL BE RETAINED BY  SUCH  CORPORATION  FOR  ITS  ORDINARY
OPERATING EXPENSES.
  B.  ON  OR BEFORE AUGUST FIRST, NINETEEN HUNDRED NINETY-FOUR THE BOARD
SHALL PROMULGATE RULES  AND  REGULATIONS,  WHICH  DIRECT  SAID  REGIONAL
CORPORATIONS  AND SAID MISSED POOLS TO THE IN-STATE TRACK CONDUCTING THE
RACE ON WHICH THE WAGER WAS PLACED TO BE USED  FOR  THE  NEXT  AVAILABLE
COMMON POOL.
  S 527. DISPOSITION OF OFF-TRACK POOLS; STATE TAX. EACH REGIONAL CORPO-
RATION  CONDUCTING OFF-TRACK BETTING SHALL DISTRIBUTE ALL SUMS DEPOSITED
IN ANY PARI-MUTUEL POOL THROUGH  SUCH  CORPORATION  TO  THE  HOLDERS  OF
WINNING  TICKETS THEREIN, PROVIDED SUCH TICKETS BE PRESENTED FOR PAYMENT
PRIOR TO APRIL FIRST OF THE YEAR FOLLOWING THE YEAR OF  THEIR  PURCHASE,
LESS THE RETAINED COMMISSION DERIVED AND SET IN ACCORDANCE WITH SUBDIVI-
SION  FOUR  OF SECTION FIVE HUNDRED NINETEEN OF THIS ARTICLE AT THE SAME
RATE ESTABLISHED BY THE TRACK ACCEPTING WAGERS FROM EACH  SUCH  REGIONAL
CORPORATION.
  1. THE DISPOSITION OF THE RETAINED COMMISSION, DERIVED AND SET LESS AN
AMOUNT  WHICH THE REGIONAL OFF-TRACK BETTING CORPORATION SHALL RETAIN TO
COVER, THE "COST OF CORPORATION'S FUNCTIONS" AS SET  FORTH  IN  SECTIONS
FIVE  HUNDRED  ONE AND SIX HUNDRED TWO OF THIS CHAPTER AND THE STATE TAX
LEVIED PURSUANT TO THIS SUBDIVISION, 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  ASSO-
CIATIONS  OR  CORPORATIONS  OR  RACES  RUN  OUTSIDE  THE STATE, SHALL 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

A. 9997                            20

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, AFTER
DEDUCTION OF ITS "COST OF  CORPORATION'S  FUNCTIONS"  AS  SET  FORTH  IN
SECTIONS  FIVE  HUNDRED  ONE AND SIX HUNDRED TWO OF THIS CHAPTER AND THE
STATE TAX LEVIED PURSUANT TO  THIS  SUBDIVISION,  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  AGRI-
CULTURE  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 PERCENTUM TO EACH SUCH FUND. FOR THE
PURPOSES OF  THIS  SECTION,  THE  METROPOLITAN,  SUFFOLK,  AND  CATSKILL
REGIONS  SHALL  CONSTITUTE  A  SINGLE  REGION AND ANY THOROUGHBRED TRACK
LOCATED 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.

A. REGULAR AND MULTIPLE BETS:
                                       TRACK
                                      HOLDING   REGIONAL     STATE
                                       RACE       TRACK       TAX
POOLS ON RACES RUN BY:

FRANCHISED CORPORATIONS:
  IN REGION;.....................      3.50       N/A         .30
  OUT-REGION, DURING A REGIONAL
  MEETING;.......................      1.00       2.50        .30
  OUT-REGION, NO REGIONAL
  MEETING;.......................      1.75       1.75        .30
RACING CORPORATIONS
  IN SPECIAL
  BETTING DISTRICT:
  IN-SPECIAL BETTING DISTRICT;...      3.80       N/A        1.00

A. 9997                            21

  OUT-DISTRICT, DURING A REGIONAL
  MEETING;.......................      1.00       2.80       1.00
  OUT-DISTRICT, NO REGIONAL
  MEETING;.......................      1.90       1.90       1.00
HARNESS RACING ASSOCIATIONS OR
  CORPORATIONS WITHIN SUFFOLK,
  OR CATSKILL REGIONS:
  IN REGION;.....................      4.00       N/A         .70
  OUT-REGION, DURING A REGIONAL
  MEETING;.......................      1.00       3.00        .70
  OUT-REGION, NO REGIONAL
  MEETING;.......................      2.00       2.00        .70
HARNESS RACING ASSOCIATIONS OR
  CORPORATIONS:
  IN-SPECIAL BETTING
  DISTRICT;......................      4.00       N/A         .50
  OUT-DISTRICT, DURING A
  REGIONAL MEETING;..............      1.00       3.00        .50
  OUT-DISTRICT, NO REGIONAL
  MEETING;.......................      2.00       2.00        .50
OTHER HARNESS RACING ASSOCIATIONS
  OR CORPORATIONS:
  IN REGION;.....................      4.00       N/A         .50
  OUT-REGION, DURING A REGIONAL
  MEETING;.......................      1.00       3.00        .50
  OUT-REGION, NO REGIONAL
  MEETING;.......................      2.00       2.00        .50
QUARTER HORSE RACING ASSOCIATIONS
  OR CORPORATIONS;...............      3.50       N/A        1.10
OUT-OF-STATE TRACKS:.............      3.50 DIVIDED          1.10
                                       PURSUANT TO
                                       PARAGRAPH
                                       G OF THIS
                                       SUBDIVISION

B. EXOTIC BETS:
                                       TRACK
                                      HOLDING   REGIONAL     STATE
                                       RACE       TRACK       TAX
POOLS ON RACES RUN BY:

FRANCHISED CORPORATIONS:
  IN REGION;.....................      6.50       N/A        1.30
  OUT-REGION, DURING A REGIONAL
  MEETING;.......................      2.00       4.50       1.30
  OUT-REGION, NO REGIONAL
  MEETING;.......................      3.25       3.25       1.30
RACING CORPORATIONS
  IN SPECIAL
  BETTING DISTRICT:
  IN-SPECIAL BETTING DISTRICTS;..      6.80       N/A        3.00
  OUT-DISTRICT, DURING A REGIONAL
  MEETING;.......................      2.00       4.80       3.00
  OUT-DISTRICT, NO REGIONAL
  MEETING;.......................      3.40       3.40       3.00

A. 9997                            22

HARNESS RACING ASSOCIATIONS OR
  CORPORATIONS WITHIN SUFFOLK
  OR CATSKILL REGIONS:
  IN REGION;.....................      7.00       N/A        2.70
  OUT-REGION, DURING A REGIONAL
  MEETING;.......................      2.00       5.00       2.70
  OUT-REGION, NO REGIONAL
  MEETING;.......................      3.50       3.50       2.70
HARNESS RACING ASSOCIATIONS
  OR CORPORATIONS:
  IN-SPECIAL BETTING
  DISTRICT;......................      7.00       N/A        2.50
  OUT-DISTRICT, DURING A
  REGIONAL MEETING;..............      2.00       5.00       2.50
  OUT-DISTRICT, NO REGIONAL
  MEETING;.......................      3.50       3.50       2.50
OTHER HARNESS RACING ASSOCIA-
  TIONS OR CORPORATIONS:
  IN REGION;.....................      7.00       N/A        2.50
  OUT-REGION, DURING A
  REGIONAL MEETING;..............      2.00       5.00       2.50
  OUT-REGION, NO REGIONAL
  MEETING;.......................      3.50       3.50       2.50
QUARTER HORSE RACING ASSOCIA-
  TIONS OR CORPORATIONS;.........      6.50       N/A        3.10
OUT-OF-STATE TRACKS:.............      6.50 DIVIDED          3.10
                                       PURSUANT TO
                                       PARAGRAPH
                                       G OF THIS
                                       SUBDIVISION

C. SUPER EXOTIC BETS:
                                       TRACK
                                      HOLDING   REGIONAL     STATE
                                       RACE       TRACK       TAX
POOLS ON RACES RUN BY:

FRANCHISED CORPORATIONS:
  IN REGION;.....................     12.00       N/A        3.50
  OUT-REGION, DURING A REGIONAL
  MEETING;.......................      3.00      10.00       2.50
  OUT-REGION, NO REGIONAL
  MEETING;.......................      6.00       6.00       3.50
RACING CORPORATIONS
  IN SPECIAL
  BETTING DISTRICT:
  IN-SPECIAL BETTING DISTRICTS;..     12.00       N/A        3.50
  OUT-DISTRICT, DURING A REGIONAL
  MEETING;.......................      3.00      10.00       2.50
  OUT-DISTRICT, NO REGIONAL
  MEETING;.......................      6.00       6.00       3.50
HARNESS RACING ASSOCIATIONS OR
  CORPORATIONS WITHIN SUFFOLK
  OR CATSKILL REGIONS:
  IN-REGION;.....................     12.00       N/A        3.50
  OUT-REGION, DURING A REGIONAL

A. 9997                            23

  MEETING;.......................      3.00      10.00       2.50
  OUT-REGION, NO REGIONAL
  MEETING;.......................      6.00       6.00       3.50
HARNESS RACING ASSOCIATIONS
  OR CORPORATIONS:
  IN-SPECIAL BETTING
  DISTRICT;......................     12.00       N/A        3.50
  OUT-DISTRICT, DURING A
  REGIONAL MEETING;..............      3.00      10.00       2.50
  OUT-DISTRICT, NO REGIONAL
  MEETING;.......................      6.00       6.00       3.50
OTHER HARNESS RACING ASSOCIATIONS
  OR CORPORATIONS:
  IN-REGION;.....................     12.00       N/A        3.50
  OUT-REGION, DURING A
  REGIONAL MEETING;..............      3.00      10.00       2.50
  OUT-REGION, NO REGIONAL
  MEETING;.......................      6.00       6.00       3.50

  D.  FOR  THE PORTION OF THE WESTERN REGION INCLUDED WITHIN A THOROUGH-
BRED SPECIAL BETTING DISTRICT AND NOT WITHIN A HARNESS  SPECIAL  BETTING
DISTRICT,  WHEN  NO  THOROUGHBRED  RACE MEETING IS CONDUCTED BY A RACING
CORPORATION LOCATED  WITHIN  SUCH  THOROUGHBRED  SPECIAL  DISTRICT,  THE
DISTRIBUTION  OF  THE  RETAINED  COMMISSION TO "REGIONAL TRACKS" BY SUCH
REGIONAL CORPORATION DERIVED FROM  WAGERS  PLACED  WITHIN  SUCH  SPECIAL
BETTING DISTRICT SHALL BE DIVIDED AS FOLLOWS:
  (I)  WHEN A HARNESS CORPORATION LOCATED IN SUCH DISTRICT IS CONDUCTING
A MEET THE FULL AMOUNT TO SUCH HARNESS CORPORATION; AND WHEN  A  HARNESS
CORPORATION IN THE REGION BUT NOT LOCATED IN SUCH DISTRICT IS CONDUCTING
A  MEET,  FORTY PERCENT TO THE THOROUGHBRED RACING CORPORATION AND SIXTY
PERCENT TO THE HARNESS CORPORATION CONDUCTING A MEET;
  (II) WHEN NO RACING IS  BEING  CONDUCTED,  FORTY  PER  CENTUM  TO  THE
THOROUGHBRED  RACING CORPORATION AND THE BALANCE DIVIDED EQUALLY BETWEEN
THE HARNESS RACING CORPORATIONS LOCATED IN SUCH REGION; AND
  (III) WHEN NO RACING IS BEING CONDUCTED AND NO MORE THAN  ONE  HARNESS
RACING  ASSOCIATION  IS  LICENSED  DURING THE CALENDAR YEAR TO CONDUCT A
RACE MEETING, FIFTY PER CENTUM TO THE  THOROUGHBRED  RACING  CORPORATION
AND  FIFTY  PER CENTUM TO THE HARNESS RACING ASSOCIATION LOCATED IN SUCH
REGION.
  E. FOR THE PORTIONS OF THE CAPITAL  DISTRICT,  CATSKILL,  CENTRAL  AND
WESTERN  REGIONS  INCLUDED  WITHIN  A  HARNESS  RACING  SPECIAL  BETTING
DISTRICT, EXCEPT THOSE PORTIONS DESCRIBED IN PARAGRAPH E OF THIS  SUBDI-
VISION,  THE HARNESS TRACK LOCATED IN SUCH SPECIAL DISTRICT SHALL BE THE
"REGIONAL TRACK" FOR THE PURPOSES OF THE DISTRIBUTIONS MADE PURSUANT  TO
PARAGRAPHS A AND B OF THIS SUBDIVISION.
  F.  FOR  THE  PORTIONS  OF  THE  CATSKILL, CENTRAL AND WESTERN REGIONS
INCLUDED IN BOTH A THOROUGHBRED SPECIAL BETTING DISTRICT AND  A  HARNESS
SPECIAL BETTING DISTRICT, THE DISTRIBUTION OF THE RETAINED COMMISSION TO
"REGIONAL  TRACKS"  BY  SUCH  REGIONAL  CORPORATIONS DERIVED FROM WAGERS
PLACED WITHIN SUCH PORTIONS OF SUCH REGIONS SHALL BE DIVIDED AS FOLLOWS:
  (I) WHEN A HARNESS CORPORATION LOCATED IN THE HARNESS SPECIAL  BETTING
DISTRICT  IS CONDUCTING A MEET AND NO THOROUGHBRED RACE MEETING IS BEING
CONDUCTED BY A RACING CORPORATION LOCATED IN  THE  THOROUGHBRED  SPECIAL
BETTING DISTRICT, THE FULL AMOUNT TO SUCH HARNESS ASSOCIATION;
  (II)  WHEN  A  THOROUGHBRED  CORPORATION  LOCATED  IN THE THOROUGHBRED
SPECIAL BETTING DISTRICT IS CONDUCTING A MEET AND NO HARNESS RACE  MEET-

A. 9997                            24

ING  IS  BEING CONDUCTED BY A HARNESS ASSOCIATION LOCATED IN THE HARNESS
SPECIAL BETTING DISTRICT, THE FULL AMOUNT TO  SUCH  THOROUGHBRED  CORPO-
RATION;
  (III) WHEN NO RACING IS BEING CONDUCTED THE AMOUNT TO BE DIVIDED EVEN-
LY  BETWEEN  THE THOROUGHBRED TRACK LOCATED IN SUCH THOROUGHBRED SPECIAL
BETTING DISTRICT AND THE HARNESS TRACK LOCATED IN SUCH  HARNESS  SPECIAL
BETTING DISTRICT.
  G.  WITH  RESPECT  TO  THE AMOUNTS PAYABLE TO TRACK OPERATORS FROM THE
RETAINED COMMISSION ON POOLS  RESULTING  FROM  THOROUGHBRED  OR  HARNESS
RACES  OUTSIDE  THIS STATE, THE REGIONAL CORPORATION SHALL FIRST PAY ANY
CONTRACTUAL OBLIGATION OWNED TO THE OUT-OF-STATE TRACK OPERATOR,  OR  TO
ANOTHER STATE OR ENTITY THEREOF, AS THE CASE MAY BE. THE BALANCE OF SUCH
AMOUNTS SHALL BE DIVIDED AS FOLLOWS:
  (I)  FOR  THE  BETTING REGION COMPOSED OF THE METROPOLITAN AND SUFFOLK
REGIONS AND THE PORTION OF THE CATSKILL REGION OUTSIDE A SPECIAL BETTING
DISTRICT: WHEN BOTH HARNESS AND THOROUGHBRED MEETS ARE  IN  PROGRESS  IN
SUCH BETTING REGION, THE BALANCE TO THE ASSOCIATION OR CORPORATION HOLD-
ING  THE SAME TYPE OF MEET AS THE OUT-OF-STATE RACE; WHEN ONLY A HARNESS
MEET IS IN PROGRESS IN SUCH BETTING REGION, THE BALANCE TO  THE  HARNESS
TRACK  OPERATOR;  WHEN  ONLY  A THOROUGHBRED MEET IS IN PROGRESS IN SUCH
BETTING REGION, THE BALANCE TO THE THOROUGHBRED TRACK OPERATOR; WHEN  NO
MEET  IS  IN PROGRESS, FIFTY PER CENTUM OF THE BALANCE TO THE FRANCHISED
CORPORATION AND THE REMAINDER DIVIDED AMONG HARNESS RACING  CORPORATIONS
OR ASSOCIATIONS WITHIN SUCH BETTING REGION;
  (II)  FOR  THE  CAPITAL DISTRICT REGION AND THE PORTION OF THE WESTERN
REGION OUTSIDE A SPECIAL BETTING DISTRICT: WHEN A  HARNESS  MEET  IS  IN
PROGRESS IN SUCH REGION AND A THOROUGHBRED MEET IS IN PROGRESS OUTSIDE A
SPECIAL BETTING DISTRICT, THE  BALANCE TO WHICHEVER OPERATOR IS CONDUCT-
ING THE SAME TYPE OF MEET AS THE OUT-OF-STATE RACE; WHEN NO HARNESS MEET
IS  IN PROGRESS, THE BALANCE TO THE RACING ASSOCIATION OUTSIDE A SPECIAL
BETTING DISTRICT; AND WHEN NO MEET IS IN PROGRESS WITHIN SUCH REGION AND
NO THOROUGHBRED MEET IS IN PROGRESS OUTSIDE A SPECIAL BETTING  DISTRICT,
FIFTY  PER  CENTUM  OF  THE  BALANCE TO THE RACING ASSOCIATION OUTSIDE A
SPECIAL BETTING DISTRICT AND  THE  REMAINDER  TO  THE  LICENSED  HARNESS
RACING CORPORATIONS OR ASSOCIATIONS WITHIN SUCH REGION;
  (III)  FOR  THE  PORTION  OF  THE WESTERN REGION WITHIN A THOROUGHBRED
SPECIAL BETTING DISTRICT BUT   NOT  WITHIN  A  HARNESS  SPECIAL  BETTING
DISTRICT:    WHEN A HARNESS MEET AND A THOROUGHBRED MEET ARE IN PROGRESS
WITHIN SUCH REGION AND THE DISTRICT, THE BALANCE TO THE  ASSOCIATION  OR
CORPORATION  CONDUCTING  THE  SAME  TYPE  OF MEET AS THE OUT-OF-STATE OR
OUT-OF-REGION RACE; WHEN A HARNESS MEET IS IN PROGRESS  IN  SUCH  REGION
BUT NO THOROUGHBRED MEET IS IN PROGRESS IN THE SPECIAL BETTING DISTRICT,
THE  BALANCE TO THE HARNESS TRACK OPERATOR WITHIN SUCH REGION; WHEN ONLY
A THOROUGHBRED MEET IS IN PROGRESS IN SUCH BETTING REGION,  THE  BALANCE
TO  THE  THOROUGHBRED  TRACK OPERATOR; AND   WHEN NO MEET IS IN PROGRESS
WITHIN SUCH REGION THE BALANCE  IS  DIVIDED  FORTY  PER  CENTUM  TO  THE
THOROUGHBRED  RACING  CORPORATION  WITHIN THE DISTRICT AND THE REMAINDER
DIVIDED BETWEEN THE HARNESS RACING ASSOCIATIONS OR  CORPORATIONS  WITHIN
THE  REGION  PROVIDED,  HOWEVER, THAT IF NO MORE THAN ONE HARNESS RACING
ASSOCIATION OR CORPORATION IS LICENSED TO CONDUCT A RACE MEETING,  FIFTY
PER  CENTUM  TO  THE THOROUGHBRED RACING CORPORATION WITHIN THE DISTRICT
AND FIFTY PER CENTUM TO THE LICENSED HARNESS RACING  ASSOCIATION  WITHIN
THE REGION;
  (IV)  FOR  THE PORTIONS OF THE CAPITAL DISTRICT, CATSKILL, CENTRAL AND
WESTERN REGIONS INCLUDED IN A HARNESS SPECIAL BETTING DISTRICT:  WHEN  A
HARNESS  MEETING IS IN PROGRESS IN SUCH HARNESS SPECIAL BETTING DISTRICT

A. 9997                            25

AND A THOROUGHBRED MEETING  IS  IN  PROGRESS  OUTSIDE  THE  THOROUGHBRED
SPECIAL  BETTING DISTRICT, THE BALANCE TO THE ASSOCIATION OR CORPORATION
HOLDING THE SAME KIND OF RACE; WHEN NO HARNESS MEET IS IN PROGRESS,  THE
BALANCE  TO  THE  RACING CORPORATION HOLDING A THOROUGHBRED RACE MEETING
OUTSIDE THE THOROUGHBRED SPECIAL BETTING DISTRICT; WHEN A HARNESS  MEET-
ING  IS  IN  PROGRESS  IN  THE  HARNESS  SPECIAL BETTING DISTRICT AND NO
THOROUGHBRED MEETING  IS IN PROGRESS OUTSIDE  THE  THOROUGHBRED  SPECIAL
BETTING  DISTRICT,  THE  BALANCE  TO THE HARNESS TRACK OPERATING IN SUCH
HARNESS SPECIAL BETTING DISTRICT; WHEN NO HARNESS  MEET  IS  BEING  HELD
WITHIN SUCH HARNESS SPECIAL BETTING DISTRICT AND NO THOROUGHBRED MEET IS
BEING  HELD OUTSIDE THE THOROUGHBRED SPECIAL BETTING DISTRICT, FIFTY PER
CENTUM OF SUCH AMOUNT TO THE HARNESS RACING CORPORATION IN SUCH  HARNESS
SPECIAL  BETTING DISTRICT AND FIFTY PER CENTUM TO THE THOROUGHBRED TRACK
OPERATOR OUTSIDE THE THOROUGHBRED SPECIAL BETTING DISTRICT;
  (V) FOR THE PORTIONS OF THE CATSKILL AND WESTERN REGIONS  INCLUDED  IN
BOTH  A  THOROUGHBRED  SPECIAL  BETTING  DISTRICT  AND A HARNESS SPECIAL
BETTING DISTRICT: WHEN A HARNESS MEET AND A  THOROUGHBRED  MEET  ARE  IN
PROGRESS  WITHIN  BOTH  SUCH DISTRICTS THE BALANCE TO THE ASSOCIATION OR
CORPORATION CONDUCTING THE SAME TYPE OF MEET AS THE  OUT-OF-STATE  RACE;
WHEN  A HARNESS MEET IS IN PROGRESS BUT NO THOROUGHBRED MEET THE BALANCE
TO THE HARNESS TRACK OPERATOR WITHIN SUCH DISTRICT; WHEN A  THOROUGHBRED
MEET  IS IN PROGRESS BUT NO HARNESS MEET THE BALANCE TO THE THOROUGHBRED
TRACK OPERATOR IN THE DISTRICT; AND WHEN NO  MEET  IS  IN  PROGRESS  THE
BALANCE  TO  BE DIVIDED EVENLY BETWEEN THE HARNESS TRACK OPERATOR IN THE
HARNESS SPECIAL BETTING DISTRICT AND THE THOROUGHBRED  OPERATOR  LOCATED
WITHIN THE THOROUGHBRED SPECIAL BETTING DISTRICT;
  (VI) NOTWITHSTANDING ANY CONTRARY PROVISION CONTAINED IN THIS SECTION,
THE  PORTION  OF RETAINED COMMISSIONS FROM OFF-TRACK POOLS DISTRIBUTABLE
TO THE TRACK HOLDING THE RACE SHALL BE FOR REGULAR  AND  MULTIPLE  BETS:
FIVE  AND  THREE-QUARTERS  PER  CENTUM  AND  FOR  EXOTIC BETS: SEVEN AND
THREE-QUARTERS PER CENTUM FOR THE THREE RACES COMMONLY  REFERRED  TO  AS
THE TRIPLE CROWN CONSISTING OF THE KENTUCKY DERBY, THE PREAKNESS AND THE
BELMONT STAKES, RUN RESPECTIVELY AT CHURCHILL DOWNS, KENTUCKY, AT PIMLI-
CO,  MARYLAND  AND  AT  BELMONT  PARK,  NEW  YORK; ADDITIONALLY THE SAME
COMMISSIONS SHALL APPLY TO THE SERIES OF RACES KNOWN  AS  THE  BREEDERS'
CUP  AND  THE  PORTION  DISTRIBUTABLE FROM RETAINED COMMISSIONS SHALL BE
PAID TO THE BREEDERS' CUP, LTD. IRRESPECTIVE OF WHETHER  THE  RACES  ARE
HELD  AT A TRACK WITHIN OR WITHOUT THE STATE; PROVIDED, HOWEVER, THAT AS
A CONDITION PRECEDENT TO THE OBLIGATION OF  A  REGIONAL  CORPORATION  TO
MAKE  THE  FOREGOING DISTRIBUTIONS AS REQUIRED IN THIS SUBPARAGRAPH WITH
RESPECT TO WAGERS ON THE BELMONT STAKES, SUCH REGIONAL CORPORATION SHALL
HAVE ACCEPTED WAGERS ON AT LEAST ONE OR BOTH OF THE IMMEDIATELY  PRECED-
ING  KENTUCKY  DERBY  AND PREAKNESS RACES; AND PROVIDED FURTHER THAT THE
DISTRIBUTABLE PORTION OF SUCH RETAINED COMMISSIONS WITH RESPECT  TO  THE
BELMONT STAKES SHALL BE DEEMED TO INCLUDE THE ADDITIONAL AMOUNTS PAYABLE
PURSUANT  TO  THE PROVISIONS OF PARAGRAPH B OF SUBDIVISION THREE OF THIS
SECTION; AND PROVIDED FURTHER, NOTWITHSTANDING THE FOREGOING  PROVISIONS
OF  THIS  SUBPARAGRAPH,  THAT OF THE RETAINED COMMISSIONS RESULTING FROM
OFF-TRACK WAGERS PLACED IN A SPECIAL BETTING  DISTRICT  ON  THE  BELMONT
STAKES,  THE  TRACK  HOLDING  THE RACE SHALL RECEIVE ONE PER CENTUM FROM
REGULAR AND MULTIPLE BETS AND TWO PER CENTUM FROM EXOTIC BETS,  AND  THE
THOROUGHBRED  TRACK CONDUCTING RACING WITHIN SUCH DISTRICT SHALL RECEIVE
FOUR AND THREE-QUARTERS PER CENTUM FROM REGULAR AND MULTIPLE  BETS,  AND
FIVE AND THREE-QUARTERS PER CENTUM FROM EXOTIC BETS.
  2.  PAYMENT  OF THE STATE TAX IMPOSED BY THIS SECTION SHALL BE MADE TO
THE COMMISSIONER BY EACH SUCH REGIONAL CORPORATION ON THE LAST  BUSINESS

A. 9997                            26

DAY  OF  EACH  MONTH  AND  SHALL COVER TAXES DUE FOR THE PERIOD FROM THE
SIXTEENTH DAY OF THE PRECEDING MONTH THROUGH THE FIFTEENTH  DAY  OF  THE
CURRENT  MONTH PROVIDED, HOWEVER, THAT SUCH PAYMENTS REQUIRED TO BE MADE
ON  MARCH  THIRTY-FIRST SHALL INCLUDE ALL TAXES DUE AND ACCRUING THROUGH
THE LAST FULL WEEK OF RACING IN MARCH OF THE CURRENT YEAR OR  AS  OTHER-
WISE DETERMINED BY THE COMMISSIONER AND SHALL BE ACCOMPANIED BY A REPORT
UNDER  OATH,  SHOWING  SUCH  INFORMATION AS IT MAY REQUIRE. A PENALTY OF
FIVE PERCENT, AND INTEREST AT THE RATE OF ONE PERCENT PER MONTH FROM THE
DATE THE REPORT IS REQUIRED TO BE FILED TO THE DATE OF  THE  PAYMENT  OF
THE TAX, SHALL BE PAYABLE IN CASE ANY TAX IMPOSED BY THIS SECTION IS NOT
PAID  WHEN DUE.  IF THE COMMISSIONER DETERMINES THAT ANY MONEYS RECEIVED
BY THE COMMISSIONER UNDER THIS SECTION WERE PAID IN ERROR,  THE  COMMIS-
SIONER  MAY  CAUSE  THE  SAME TO BE REFUNDED WITHOUT INTEREST OUT OF ANY
MONEYS COLLECTED THEREUNDER, PROVIDED AN APPLICATION THEREFOR  IS  FILED
WITH  THE  COMMISSIONER  WITHIN  ONE  YEAR  FROM  THE TIME THE ERRONEOUS
PAYMENT IS MADE. SUCH TAXES,  INTEREST  AND  PENALTIES  WHEN  COLLECTED,
AFTER  THE DEDUCTION OF REFUNDS OF TAXES ERRONEOUSLY PAID, SHALL BE PAID
BY THE COMMISSIONER INTO THE GENERAL FUND OF THE STATE TREASURY.
  3. A. OF  THE  PORTION  OF  RETAINED  COMMISSION  ON  OFF-TRACK  POOLS
DISTRIBUTED  TO  RACING CORPORATIONS, ONE-HALF SHALL BE USED EXCLUSIVELY
FOR THE PURPOSE OF INCREASING PURSES,  INCLUDING  STAKES,  PREMIUMS  AND
PRIZES,  AWARDED  TO  HORSES  IN RACES CONDUCTED BY SUCH ASSOCIATIONS OR
CORPORATIONS AND ANY PORTION OF SAID FRACTION NOT  SO  USED  DURING  ANY
YEAR  SHALL BE USED DURING THE FOLLOWING YEAR, FAILING WHICH IT SHALL BE
RETURNED TO THE REGIONAL OFF-TRACK BETTING  CORPORATIONS  ON  OR  BEFORE
APRIL FIRST IN THE YEAR FOLLOWING THE YEAR IN WHICH IT IS NOT SO USED TO
BE DISTRIBUTED PRIOR TO JUNE FIRST TO PARTICIPATING LOCAL GOVERNMENTS IN
THE  SAME  PROPORTIONS  AS  THE DISTRIBUTIONS TO SUCH GOVERNMENTS IN THE
PRIOR CALENDAR YEAR, PROVIDED, HOWEVER, IN  A  HARNESS  SPECIAL  BETTING
DISTRICT  THE  PORTION  OF RETAINED COMMISSIONS TO BE USED FOR PURSES OR
THE METHODOLOGY FOR CALCULATING THE AMOUNT TO BE USED FOR PURSES MAY  BE
SPECIFIED  IN A WRITTEN CONTRACT BETWEEN A HARNESS RACING ASSOCIATION OR
CORPORATION AND ITS REPRESENTATIVE HORSEMEN'S ASSOCIATION.
  B. IN ADDITION TO ANY OTHER  AMOUNT  REQUIRED  BY  THIS  SECTION,  BUT
SUBJECT  TO THE LIMITATIONS ON GROSS DISTRIBUTIONS SET FORTH IN SUBDIVI-
SION ONE OF THIS SECTION, OF THE PORTION OF COMMISSIONS  RETAINED  BY  A
REGIONAL  CORPORATION, AN AMOUNT EQUAL TO ONE AND ONE-QUARTER PER CENTUM
OF REGULAR AND MULTIPLE POOLS AND THREE-QUARTERS OF ONE  PER  CENTUM  OF
EXOTIC  POOLS  DERIVED  FROM  WAGERS  ON  RACES CONDUCTED BY A NONPROFIT
RACING ASSOCIATION SHALL BE PAID TO SUCH NONPROFIT RACING ASSOCIATION TO
BE USED EXCLUSIVELY FOR THE  PURPOSE  OF  INCREASING  PURSES,  INCLUDING
STAKES,  PREMIUMS  AND  PRIZES.  PROVIDED,  HOWEVER, FOR THE PERIOD JULY
TWENTY-FIFTH, TWO THOUSAND ONE  THROUGH  JUNE  THIRTIETH,  TWO  THOUSAND
FOUR,  IF  A REGIONAL CORPORATION FOR THE NEW YORK CITY, NASSAU, SUFFOLK
OR CATSKILL REGION SHALL PAY, OF THE PORTION OF THE COMMISSIONS RETAINED
BY SUCH REGIONAL CORPORATION ON ALL POOLS, AN AMOUNT EQUAL  TO  SIX  AND
FIFTY  HUNDREDTHS  PER  CENTUM  TO  SUCH NONPROFIT RACING ASSOCIATION OF
WHICH THREE AND EIGHTY HUNDREDTHS PER CENTUM SHALL BE  USED  EXCLUSIVELY
FOR  THE  PURPOSE  OF  INCREASING PURSES, INCLUDING STAKES, PREMIUMS AND
PRIZES. PROVIDED, FURTHER THAT FOR THE  PERIOD  JULY  TWENTY-FIFTH,  TWO
THOUSAND ONE THROUGH JUNE THIRTIETH, TWO THOUSAND FOUR A REGIONAL CORPO-
RATION  FOR  THE  CAPITAL  OR WESTERN REGION SHALL PAY TO SUCH NONPROFIT
RACING ASSOCIATION OF THE PORTION OF THE COMMISSIONS  RETAINED  BY  SUCH
REGIONAL  CORPORATION  ON ALL POOLS WHEN THERE IS A REGIONAL MEETING, AN
AMOUNT EQUAL TO THREE AND EIGHTY-FIVE HUNDREDTHS OF WHICH TWO AND  FIFTY
HUNDREDTHS SHALL BE USED EXCLUSIVELY FOR THE PURPOSE OF INCREASING PURS-

A. 9997                            27

ES,  INCLUDING STAKES, PREMIUMS AND PRIZES. AN ADDITIONAL TWO AND SIXTY-
FIVE HUNDREDTHS SHALL BE PAID TO THE REGIONAL HARNESS TRACK. WHEN  THERE
IS  NO  REGIONAL  MEETING,  AN  AMOUNT  EQUAL  TO  FOUR  AND  SIXTY-FIVE
HUNDREDTHS  SHALL  BE PAID TO SUCH NONPROFIT RACING ASSOCIATION OF WHICH
TWO AND NINETY HUNDREDTHS SHALL BE USED EXCLUSIVELY FOR THE  PURPOSE  OF
INCREASING  PURSES, INCLUDING STAKES, PREMIUMS AND PRIZES. AN ADDITIONAL
ONE AND EIGHTY-FIVE HUNDREDTHS SHALL BE PAID  TO  THE  REGIONAL  HARNESS
TRACK.  ANY  PORTION OF SAID AMOUNT NOT SO USED DURING ANY YEAR SHALL BE
USED DURING THE FOLLOWING YEAR, FAILING WHICH IT SHALL  BE  RETURNED  TO
THE  REGIONAL CORPORATION ON OR BEFORE APRIL FIRST IN THE YEAR FOLLOWING
THE YEAR IN WHICH IT IS NOT SO USED  TO  BE  DISTRIBUTED  TO  THE  STATE
AND/OR THE PARTICIPATING LOCAL GOVERNMENTS, AS THE CASE MAY BE.
  C.  IN  ADDITION  TO  ANY  OTHER  AMOUNT REQUIRED BY THIS SECTION, BUT
SUBJECT TO THE LIMITATIONS ON GROSS DISTRIBUTIONS SET FORTH IN  SUBDIVI-
SION  ONE  OF  THIS SECTION, OF THE PORTION OF COMMISSIONS RETAINED BY A
REGIONAL CORPORATION, AN AMOUNT EQUAL TO ONE AND ONE-TENTH PER CENTUM OF
REGULAR AND MULTIPLE POOLS AND SIX-TENTHS OF ONE PER  CENTUM  OF  EXOTIC
POOLS  DERIVED  FROM  WAGERS ON RACES CONDUCTED BY A THOROUGHBRED RACING
CORPORATION, LICENSED BY THE BOARD, OTHER THAN A FRANCHISED CORPORATION,
SHALL BE PAID TO SUCH THOROUGHBRED RACING CORPORATION TO BE USED  EXCLU-
SIVELY  FOR THE PURPOSE OF INCREASING PURSES, INCLUDING STAKES, PREMIUMS
AND PRIZES. ANY PORTION OF SAID AMOUNT NOT SO USED DURING ANY YEAR SHALL
BE USED DURING THE FOLLOWING YEAR, FAILING WHICH IT SHALL BE RETURNED TO
THE REGIONAL CORPORATION ON OR BEFORE APRIL FIRST IN THE YEAR  FOLLOWING
THE  YEAR  IN  WHICH  IT  IS  NOT SO USED TO BE DISTRIBUTED TO THE STATE
AND/OR THE PARTICIPATING LOCAL GOVERNMENTS, AS THE CASE MAY BE.
  4. A. OF  THE  PORTION  OF  RETAINED  COMMISSION  ON  OFF-TRACK  POOLS
DISTRIBUTED TO HARNESS RACING ASSOCIATIONS OR CORPORATIONS AUTHORIZED TO
CONDUCT  RACING  IN WESTCHESTER OR NASSAU COUNTY, ONE-HALF SHALL BE USED
EXCLUSIVELY FOR THE PURPOSE  OF  INCREASING  PURSES,  INCLUDING  STAKES,
PREMIUMS AND PRIZES AWARDED TO HORSES IN RACES CONDUCTED BY SUCH ASSOCI-
ATIONS OR CORPORATIONS.
  B.  THE  PORTION OF RETAINED COMMISSION ON OFF-TRACK POOLS DISTRIBUTED
TO OTHER HARNESS OR QUARTER HORSE RACING  ASSOCIATIONS  OR  CORPORATIONS
SHALL  BE  DEEMED  TO BE PART OF THE ON-TRACK COMMISSION FOR PURPOSES OF
CALCULATING PURSES, INCLUDING STAKES, PREMIUMS AND  PRIZES,  AWARDED  TO
HORSES IN RACES CONDUCTED BY SUCH ASSOCIATIONS OR CORPORATIONS.
  5.  A.  SUBJECT TO THE LIMITATIONS ON GROSS DISTRIBUTIONS SET FORTH IN
SUBDIVISION ONE OF THIS SECTION, ONE PER CENTUM OF DAILY  POOLS  DERIVED
FROM BETS ON HARNESS RACES SHALL BE PAID TO THE AGRICULTURE AND NEW YORK
STATE BREEDING AND DEVELOPMENT FUND EXCEPT THAT FOR SUPER EXOTIC BETTING
POOLS SUCH AMOUNT SHALL BE THREE PER CENTUM OF SUCH BETS.
  B.  SUBJECT  TO  THE  LIMITATIONS  ON GROSS DISTRIBUTIONS SET FORTH IN
SUBDIVISION ONE OF THIS SECTION, AN AMOUNT EQUAL TO ONE-HALF OF ONE  PER
CENTUM  OF  TOTAL DAILY OFF-TRACK PARI-MUTUEL POOLS RESULTING FROM REGU-
LAR, MULTIPLE AND EXOTIC BETS AND THREE PER CENTUM OF SUPER EXOTIC  BETS
ON  THOROUGHBRED  OR  STEEPLECHASE  RACES  SHALL BE PAID TO THE NEW YORK
STATE THOROUGHBRED BREEDING AND DEVELOPMENT FUND.
  C. SUBJECT TO THE LIMITATIONS ON  GROSS  DISTRIBUTIONS  SET  FORTH  IN
SUBDIVISION  ONE  OF  THIS  SECTION, FROM THE TOTAL BREAKS RETAINED BY A
REGIONAL CORPORATION, AN AMOUNT EQUAL TO TEN PER CENTUM  OF  THE  BREAKS
DERIVED  FROM  BETS ON QUARTER HORSE RACES SHALL BE PAID TO THE NEW YORK
STATE QUARTER HORSE BREEDING AND DEVELOPMENT FUND.
  5-A. SUBJECT TO THE LIMITATIONS ON GROSS DISTRIBUTIONS  SET  FORTH  IN
SUBDIVISION ONE OF THIS SECTION, AND NOTWITHSTANDING ANY OTHER PROVISION
OF  LAW,  A  REGIONAL  CORPORATION  SHALL  RETAIN,  IN ADDITION TO THOSE

A. 9997                            28

AMOUNTS DESCRIBED IN THE OPENING PARAGRAPH OF THIS SECTION, FROM REGULAR
AND MULTIPLE BETS ON RACES RUN AT TRACKS ELECTING TO  WITHHOLD  PURSUANT
TO SECTION TWO HUNDRED THIRTY-SEVEN OR SECTION THREE HUNDRED NINETEEN OF
THIS  CHAPTER, AN AMOUNT EQUAL TO ONE PER CENTUM OF POOLS RESULTING FROM
TOTAL WAGERING AT SUCH TRACKS, ONE-HALF OF WHICH SHALL BE PAID  TO  SUCH
TRACKS  OR  NON-PROFIT COUNTY AGRICULTURAL SOCIETY, EXCEPT THAT THE FULL
ONE PER CENTUM SHALL BE PAID  TO  SUCH  TRACK  IN  THE  CATSKILL  REGION
CONDUCTING  A MIXED MEETING, TO BE USED EXCLUSIVELY FOR CAPITAL IMPROVE-
MENTS PURSUANT TO SECTIONS TWO HUNDRED THIRTY-SEVEN  AND  THREE  HUNDRED
NINETEEN OF THIS CHAPTER AND SUBJECT TO THE RULES AND REGULATIONS OF THE
RACING  AND  WAGERING  BOARD AND ONE-HALF TO BE RETAINED BY THE REGIONAL
CORPORATION FOR ITS OWN CORPORATE PURPOSES.
  6. THE NET AMOUNT REMAINING TO EACH REGIONAL CORPORATION AFTER PAYMENT
OF TAXES AND DISTRIBUTIONS PURSUANT TO THIS SECTION AND AFTER PAYMENT OF
OPERATING EXPENSES AND PRINCIPAL AND INTEREST ON ANY OBLIGATIONS  SHALL,
IN  THE  CASE  OF  THE  METROPOLITAN  OFF-TRACK  BETTING CORPORATION, BE
RETAINED BY THE CORPORATION, AND IN THE CASE OF  OTHER  REGIONAL  CORPO-
RATIONS  SHALL  ACCRUE AND BE PAYABLE TO PARTICIPATING COUNTIES PURSUANT
TO SECTION FIVE HUNDRED SIXTEEN OF THIS CHAPTER; PROVIDED, HOWEVER, THAT
THE METROPOLITAN OFF-TRACK BETTING CORPORATION,  AFTER  PAYMENT  OF  ALL
CURRENT  TAXES  AND  DISTRIBUTIONS  SHALL USE SUCH NET AMOUNT TO PAY ALL
LIABILITIES OF SUCH  CORPORATION  AS  OF  THE  EFFECTIVE  DATE  OF  THIS
SECTION,  AND AT SUCH TIME AS ALL LIABILITIES HAVE BEEN PAID SUCH CORPO-
RATION SHALL PAY REMAINING AMOUNTS TO THE COMPTROLLER OF  THE  STATE  OF
NEW  YORK  FOR DEPOSIT IN THE GENERAL FUND OF THE STATE FOR DISTRIBUTION
TO THE STATE TREASURY 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.
  7.  IN  ADDITION  TO ANY OTHER AMOUNT REQUIRED BY THIS SECTION, OF THE
PORTION OF COMMISSIONS RETAINED BY A  REGIONAL  CORPORATION,  AN  AMOUNT
EQUAL  TO  ONE PER CENTUM OF MULTIPLE POOLS DERIVED FROM WAGERS ON RACES
CONDUCTED BY A THOROUGHBRED RACING CORPORATION, LICENSED BY  THE  BOARD,
OTHER  THAN A FRANCHISED CORPORATION, SHALL BE PAID TO SUCH THOROUGHBRED
RACING CORPORATION AND HELD BY SUCH CORPORATION  FOR  ITS  OWN  USE  AND
PURPOSES,  EXCEPT  THAT  AN AMOUNT EQUAL TO ONE-HALF PER CENTUM SHALL BE
USED EXCLUSIVELY FOR THE PURPOSE OF INCREASING PURSES, INCLUDING STAKES,
PREMIUMS AND PRIZES, AWARDED TO HORSES IN RACES CONDUCTED BY SUCH CORPO-
RATION. ANY PORTION OF SAID AMOUNT NOT SO USED DURING ANY YEAR SHALL  BE
USED  DURING  THE  FOLLOWING YEAR, FAILING WHICH IT SHALL BE RETURNED TO
THE REGIONAL CORPORATION ON OR BEFORE APRIL FIRST IN THE YEAR  FOLLOWING
THE YEAR IN WHICH IT IS NOT SO USED TO BE DISTRIBUTED TO THE PARTICIPAT-
ING LOCAL GOVERNMENTS.
  8.    SUBJECT  TO  THE LIMITATIONS ON GROSS DISTRIBUTIONS SET FORTH IN
SUBDIVISION ONE OF THIS SECTION, FROM THE NINETEEN  PER  CENTUM  OF  THE
TOTAL  DEPOSITS  IN  POOLS  RESULTING FROM MULTIPLE BETS ON THOROUGHBRED
RACES OUTSIDE THIS STATE, TWO PER CENTUM SHALL BE PAID TO  A  FRANCHISED
CORPORATION TO BE USED EXCLUSIVELY FOR THE PURPOSE OF INCREASING PURSES,
INCLUDING STAKES, PREMIUMS AND PRIZES. ANY PORTION OF SAID AMOUNT NOT SO
USED  DURING  ANY  YEAR SHALL BE USED DURING THE FOLLOWING YEAR, FAILING
WHICH IT SHALL BE RETURNED TO THE  REGIONAL  CORPORATION  ON  OR  BEFORE
APRIL FIRST IN THE YEAR FOLLOWING THE YEAR IN WHICH IT IS NOT SO USED TO
BE DISTRIBUTED TO THE STATE OR PARTICIPATING LOCAL GOVERNMENTS. NOTWITH-
STANDING  THE  PROVISIONS  OF  SECTION  FIFTEEN OF CHAPTER THREE HUNDRED
SIXTY-THREE OF THE LAWS OF NINETEEN HUNDRED EIGHTY-FOUR, THE  PROVISIONS
OF THIS SUBDIVISION SHALL NOT EXPIRE.

A. 9997                            29

  S  532.  SURCHARGE  ON OFF-TRACK WINNINGS; DISPOSITION OF REVENUES. 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 AND THE  SUCCESSOR  METROPOLITAN
OFF-TRACK BETTING CORPORATION, CONDUCTING OFF-TRACK BETTING SHALL IMPOSE
A  SURCHARGE  OF  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.
  2. SUBJECT TO THE LIMITATIONS ON  GROSS  DISTRIBUTIONS  SET  FORTH  IN
SUBDIVISION  ONE  OF  THIS  SECTION,  THE  REVENUES  RECEIVED  FROM  ANY
SURCHARGE IMPOSED BY SUBDIVISION ONE OF THIS SECTION, PLUS  THE  BREAKS,
SHALL BE DISTRIBUTED MONTHLY, AS FOLLOWS:
  A.  FIFTY PER CENTUM TO SUCH CITY, OR TO THE COUNTIES AND CITIES ENTI-
TLED TO RECEIVE REVENUES  FROM  THE  REGIONAL  CORPORATION  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.
  (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.  SUCH FIVE PER CENTUM SURCHARGE HEREIN PROVIDED IS HEREBY INCREASED
BY A SUPPLEMENTAL 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 APPLICA-
BLE TO THE CORPORATION WITH WHICH SUCH BETS ORIGINATED.
  4. THE STATE RACING AND WAGERING BOARD SHALL ISSUE REGULATIONS PROVID-
ING FOR MONTHLY DISTRIBUTION TO CITIES AND COUNTIES OF REVENUES RECEIVED
UNDER THIS SECTION, THROUGH THE REGIONAL OFF-TRACK  BETTING  CORPORATION
IN  WHICH SUCH CITIES OR COUNTIES ARE LOCATED; PROVIDED, HOWEVER, IN THE
EVENT THAT SUCH CITIES OR COUNTIES OTHERWISE ENTITLED  TO  RECEIVE  SUCH
REVENUES  ARE  NOT  PARTICIPATING  CITIES  OR  COUNTIES  WITH A REGIONAL

A. 9997                            30

OFF-TRACK BETTING CORPORATION THEN SUCH MONTHLY DISTRIBUTIONS  SHALL  BE
PAYABLE  DIRECTLY TO SUCH CITIES OR COUNTIES. REGIONAL OFF-TRACK BETTING
CORPORATIONS THAT RECEIVE PAYMENTS UNDER THIS SUBDIVISION SHALL DISTRIB-
UTE SUCH PAYMENTS TO APPROPRIATE PARTICIPATING CITIES AND COUNTIES WITH-
IN  THREE  BUSINESS  DAYS FOLLOWING RECEIPT OF SUCH PAYMENTS.  THE BOARD
SHALL ALSO PROVIDE FOR PERIODIC REPORTS BY  REGIONAL  OFF-TRACK  BETTING
CORPORATIONS  TO  ENSURE  THAT  THE PURPOSES OF THIS SECTION ARE CARRIED
OUT.
  5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, MONEYS DISTRIBUTABLE TO
THE COUNTY OF SARATOGA PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH  B  OF
SUBDIVISION TWO OF THIS SECTION SHALL BE DISTRIBUTED AS FOLLOWS:
  A.  THE FIRST ONE MILLION SIX HUNDRED FIFTY-EIGHT THOUSAND ONE HUNDRED
FIFTY-FOUR DOLLARS AND SIXTY-FOUR CENTS OF DISTRIBUTABLE REVENUES  SHALL
BE PAID TO THE COUNTY OF SARATOGA.
  B.  THE  NEXT  THREE HUNDRED TWENTY-TWO THOUSAND NINE HUNDRED FOURTEEN
DOLLARS AND TWENTY-ONE CENTS OF DISTRIBUTABLE REVENUES SHALL BE PAID  TO
THE CITY OF SARATOGA.
  C.  IF  ANY  SURPLUS  MONEYS ARE AVAILABLE AFTER THE PAYMENTS ARE MADE
PURSUANT TO PARAGRAPHS A AND B OF THIS SUBDIVISION SUCH  SURPLUS  MONEYS
SHALL BE PAID AS FOLLOWS:
  (I) 83.7% OF SUCH SURPLUS SHALL BE PAID TO THE COUNTY OF SARATOGA.
  (II) 16.3% OF SUCH SURPLUS SHALL BE PAID TO THE CITY OF SARATOGA.
  UPON  THE  RELEASE  OF  THE  FEDERAL  CENSUS  FIGURES  FOR  THE CENSUS
CONDUCTED IN NINETEEN HUNDRED EIGHTY, THE ALLOCATION  OF  SUCH  REVENUES
SHALL  BE  APPORTIONED  BETWEEN  THE  COUNTY OF SARATOGA AND THE CITY OF
SARATOGA AND SHALL BE DETERMINED BY THE PERCENTAGES OF THE  TOTAL  POPU-
LATION OF THE COUNTY OF SARATOGA AND THE CITY OF SARATOGA IN RELATION TO
EACH OTHER.
  6.  NOTWITHSTANDING  ANY  PROVISION  HEREIN OR IN SECTION ONE THOUSAND
NINE OF THIS CHAPTER TO THE CONTRARY WHERE THE TRACK CONDUCTING THE RACE
IS A THOROUGHBRED TRACK LOCATED IN  THE  CATSKILL  REGION  CONDUCTING  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 MONTH-
LY 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 THE 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.
  7. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,  ANY  PAYMENTS
OTHERWISE  PAYABLE  TO  A CITY WITH A POPULATION OF ONE MILLION OR MORE,
PURSUANT TO THIS SECTION, OTHER THAN PAYMENTS PURSUANT TO  SUBPARAGRAPHS
(I)  AND  (III) OF PARAGRAPH B OF SUBDIVISION TWO OF THIS SECTION, SHALL
BE PAYABLE TO THE CORPORATION AND SHALL BE AVAILABLE FOR  ITS  CORPORATE
PURPOSES.
  S  10.  Sections  601,  602, 603, 604, 605, 606, 607, 609-a, 610, 611,
613, 614, 617, 623 and 624  of  the  racing,  pari-mutuel  wagering  and
breeding  law  are REPEALED and fifteen new sections 601, 602, 603, 604,
605, 606, 607, 609-a, 610, 611, 613, 614, 617, 623 and 624 are added  to
read as follows:

A. 9997                            31

  S  601.  DECLARATION OF POLICY AND STATEMENT OF PURPOSES. IT IS HEREBY
FOUND, DETERMINED AND DECLARED THAT THERE IS AN IMMEDIATE NEED  TO  TAKE
ACTION  TO  RESCUE  THE  NEW YORK CITY REGIONAL OFF-TRACK BETTING CORPO-
RATION FROM ITS CURRENT ECONOMIC CRISIS AND PENDING BANKRUPTCY,  AND  TO
TAKE  DEFINITIVE STEPS TO IMPROVE THE FINANCIAL AND OPERATING POSTURE OF
THE NASSAU REGIONAL OFF-TRACK BETTING CORPORATION. THERE IS ALSO A  NEED
TO EFFECT MORE EFFICIENT AND STREAMLINED OPERATIONS OF THE SEVERAL DOWN-
STATE  REGIONAL  OFF-TRACK BETTING CORPORATIONS.  NEW YORK CITY REGIONAL
OFF-TRACK BETTING CORPORATION  AND  NASSAU  REGIONAL  OFF-TRACK  BETTING
CORPORATION  CONTRIBUTE  OVER A BILLION AND A HALF DOLLARS DIRECTLY INTO
THE STATE'S ECONOMY AND SUPPLIES EVEN MORE  ECONOMIC  FUEL  THROUGH  THE
MORE  THAN  TWO  THOUSAND  FULL TIME WORKERS CURRENTLY EMPLOYED BY THOSE
ENTITIES. IT IS ESTIMATED THAT APPROXIMATELY  SEVENTY  PERCENT  OF  THAT
WORK  FORCE WILL LOSE THEIR JOBS IF THE NEW YORK CITY REGIONAL OFF-TRACK
BETTING CORPORATION  BANKRUPTCY  PLAN  IS  APPROVED  AND/OR  THE  NASSAU
REGIONAL OFF-TRACK BETTING CORPORATION IS FORCED TO DRASTICALLY DOWNSIZE
OR  FILE  FOR BANKRUPTCY PROTECTION. THE LEGISLATURE FINDS THAT IT IS IN
THE BEST INTEREST OF THE  STATE  THAT  THOSE  REGIONAL  CORPORATIONS  BE
CONSOLIDATED  AND  THAT  SAID COMBINATION WILL ALLOW FOR EFFICIENCIES OF
SCALE, ECONOMIC VIABILITY,  CREDITOR  ACCEPTANCE  OF  WORK-OUTS  AND  AN
INFLUX OF NEW CAPITALIZATION AT FAVORABLE RATES; AND, FURTHER FINDS THAT
CONSOLIDATION  WILL SAVE JOBS THAT PROVIDE A CRUCIAL CASH SOURCE THAT IS
AN IMPORTANT ELEMENT OF THE MACHINE THAT FUELS THIS IMPORTANT SEGMENT OF
THE STATE'S ECONOMY.
  S 602. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN AND INCLUDE:
  1. "ADMINISTRATIVE CODE." THE ADMINISTRATIVE CODE OF THE CITY.
  2. "BOARD." THE BOARD OF DIRECTORS OF THE CORPORATION AS SUCH BOARD IS
CONSTITUTED PURSUANT TO SECTION FIVE HUNDRED TWO  OF  THIS  CHAPTER  AND
SECTION SIX HUNDRED THREE OF THIS ARTICLE.
  3.  "BONDS"  AND "NOTES." BONDS AND NOTES RESPECTIVELY, AUTHORIZED AND
ISSUED BY THE CORPORATION PURSUANT TO THIS ARTICLE.
  4. "BRANCH OFFICE." AN ESTABLISHMENT MAINTAINED AND  OPERATED  BY  THE
CORPORATION,  WHERE  OFF-TRACK,  PARI-MUTUEL  BETS ON HORSE RACES MAY BE
PLACED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS  ARTICLE  AND
THE REGULATIONS PROMULGATED PURSUANT THERETO.
  5. "CHARTER." THE NEW YORK CITY CHARTER.
  6. "CITY." THE CITY OF NEW YORK.
  7. "COUNTY." THE COUNTY OF NASSAU.
  8.  "CORPORATION."  THE  METROPOLITAN  OFF-TRACK  BETTING  CORPORATION
ESTABLISHED BY SECTION FIVE HUNDRED TWO OF THIS CHAPTER AND SECTION  SIX
HUNDRED THREE OF THIS ARTICLE.
  9.  "COST  OF CORPORATION'S FUNCTIONS." ALL PRE-DISTRIBUTION COSTS AND
EXPENSES INCURRED BY THE CORPORATION IN CONNECTION WITH THE  PERFORMANCE
OF  THE  FUNCTIONS  OF  THE  CORPORATION  AS  DESCRIBED BY THIS ARTICLE,
INCLUDING, BUT NOT LIMITED TO, ALL OPERATING EXPENSES OF THE CORPORATION
SUCH AS SALARIES AND WAGES,  INSURANCE,  RENT  AND  REAL  ESTATE  TAXES,
PAYMENTS  IN  LIEU OF TAXES AND/OR TO COMPENSATE MUNICIPALITIES FOR LOSS
OF ADMISSION TAXES PURSUANT TO SUBDIVISION TWO OF SECTION  FIVE  HUNDRED
THIRTY-ONE OF THIS CHAPTER, CONTRIBUTIONS TO ANY POST-RETIREMENT EMPLOY-
EE  FUND AND/OR PENSION AND OTHER POST-EMPLOYMENT EXPENSES, THE COSTS OF
ACQUISITION, CONSTRUCTION OR  EQUIPMENT  OF  BRANCH  OFFICES  AND  OTHER
FACILITIES AND PREMISES OF THE CORPORATION, A REASONABLE CAPITAL RESERVE
FUND  OF  NO  MORE  THAN  THREE PERCENT OF NET PRE-DISTRIBUTION REVENUE,
INTEREST AND PRINCIPAL ON BONDS,  NOTES  OR  OTHER  OBLIGATIONS  OF  THE
CORPORATION,  WHETHER ISSUED TO FINANCE THE ACQUISITION, CONSTRUCTION OR

A. 9997                            32

EQUIPMENT OF SUCH OFFICES, FACILITIES, PREMISES, OR OTHERWISE,  AND  THE
STATE  TAX  LEVIED  PURSUANT  TO SUBDIVISION ONE OF SECTION FIVE HUNDRED
TWENTY-SEVEN OF THIS CHAPTER.
  10. "COMMISSIONER OF FINANCE." THE COMMISSIONER OF FINANCE OF THE CITY
OF NEW YORK.
  11. "MAYOR." THE MAYOR OF THE CITY OF NEW YORK.
  11-A. "COUNTY EXECUTIVE." THE COUNTY EXECUTIVE OF NASSAU COUNTY.
  12. "STATE." THE STATE OF NEW YORK.
  13.  "TRACK."  THE  GROUNDS  OR ENCLOSURE WITHIN WHICH HORSE RACES ARE
CONDUCTED BY ANY PERSON, CORPORATION OR ASSOCIATION LAWFULLY  AUTHORIZED
TO HOLD SUCH RACES.
  14. "SITE SELECTION BOARD." THE SITE SELECTION BOARD SHALL BE COMPOSED
OF  A DESIGNEE OF THE GOVERNOR, A DESIGNEE OF THE TEMPORARY PRESIDENT OF
THE SENATE, A DESIGNEE OF THE SPEAKER OF THE ASSEMBLY, WITH RESPECT TO A
BRANCH OFFICE LOCATED WHOLLY OR PARTLY WITHIN THE COUNTY, A DESIGNEE  OF
THE  COUNTY  EXECUTIVE OF NASSAU COUNTY, WITH RESPECT TO A BRANCH OFFICE
LOCATED WHOLLY OR PARTLY WITHIN A BOROUGH OF THE CITY, THE PRESIDENT  OR
PRESIDENTS  OF  THE  BOROUGH  OR  BOROUGHS IN WHICH THE PROPOSED SITE IS
LOCATED, AND A DESIGNEE OF THE CHIEF  EXECUTIVE  OFFICER  OF  THE  URBAN
DEVELOPMENT CORPORATION.
  S 603. METROPOLITAN OFF-TRACK BETTING CORPORATION. 1. A CORPORATION TO
BE  KNOWN  AS THE "METROPOLITAN OFF-TRACK BETTING CORPORATION" IS HEREBY
CREATED. SUCH CORPORATION SHALL BE A BODY CORPORATE AND POLITIC  CONSTI-
TUTING A PUBLIC BENEFIT CORPORATION. IT SHALL BE ADMINISTERED BY A BOARD
OF DIRECTORS CONSISTING OF FIVE MEMBERS, WHO MAY BE PUBLIC OFFICERS, NOT
MORE  THAN  THREE  OF  WHOM  SHALL  BE  MEMBERS  OF  THE SAME PARTY, TWO
APPOINTED BY THE GOVERNOR ON THE RECOMMENDATION OF THE TEMPORARY  PRESI-
DENT  OF THE SENATE, TWO APPOINTED BY THE GOVERNOR ON THE RECOMMENDATION
OF THE SPEAKER OF THE ASSEMBLY AND ONE APPOINTED BY  THE  GOVERNOR,  WHO
SHALL BE THE CHAIRMAN AND SERVE AT THE PLEASURE OF THE GOVERNOR, WHO MAY
CHANGE  HIS DESIGNATION OF ANY SUCH DIRECTOR TO BE CHAIRMAN. EACH DIREC-
TOR OF THE CORPORATION SHALL SERVE AT  THE  PLEASURE  OF  THE  GOVERNOR,
TEMPORARY  PRESIDENT  OF  THE  SENATE OR SPEAKER OF THE ASSEMBLY, AS THE
CASE MAY BE. IT SHALL BE DIVIDED INTO AN EASTERN DISTRICT  COMPRISED  OF
THE  COUNTY OF NASSAU AND A WESTERN DISTRICT COMPRISED OF THE FIVE COUN-
TIES OF THE CITY OF NEW YORK.
  2. OF THE DIRECTORS, ONE APPOINTED BY THE GOVERNOR FOR A  TERM  ENDING
ON  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  ELEVEN, ONE APPOINTED ON THE
RECOMMENDATION OF THE TEMPORARY PRESIDENT  OF  THE  SENATE  FOR  A  TERM
ENDING  ON  DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE, ONE APPOINTED ON
THE RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY FOR A TERM  ENDING  ON
DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE, AND THE REMAINING TWO DIREC-
TORS  APPOINTED  ON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT OF THE
SENATE AND THE SPEAKER OF THE ASSEMBLY FOR A TERM ENDING DECEMBER  THIR-
TY-FIRST,  TWO THOUSAND FOURTEEN. UPON THE EXPIRATION OF SUCH TERMS, THE
TERMS OF OFFICE OF THEIR  SUCCESSORS  SHALL  BE  FOUR  YEARS.  VACANCIES
OCCURRING DURING ANY SUCH TERM SHALL BE FILLED FOR THE UNEXPIRED TERM BY
THE APPOINTING AUTHORITY.
  3. THE GOVERNOR SHALL DESIGNATE ONE OF THE DIRECTORS TO BE CHAIRMAN OF
THE  BOARD  OF  DIRECTORS AND MAY, AT HIS OR HER PLEASURE, CHANGE HIS OR
HER DESIGNATION OF ANY SUCH DIRECTOR TO BE CHAIRMAN.
  4. EACH DIRECTOR SHALL CONTINUE TO SERVE  UNTIL  THE  APPOINTMENT  AND
QUALIFICATION OF HIS OR HER SUCCESSOR.
  5.  THE  DIRECTORS  SHALL BE REMOVABLE FOR CAUSE BY THE GOVERNOR, UPON
CHARGES AND AFTER A HEARING.

A. 9997                            33

  6. THE POWERS OF THE CORPORATION SHALL BE VESTED IN AND  EXERCISED  BY
THE  BOARD  AT A MEETING DULY HELD AT A TIME FIXED BY ANY BY-LAW ADOPTED
BY THE 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 EXERCISED EXCEPT PURSU-
ANT  TO THE FAVORABLE VOTE OF AT LEAST A MAJORITY OF THE DIRECTORS PRES-
ENT AT A MEETING AT WHICH A QUORUM IS IN ATTENDANCE.
  7. THE BOARD MAY DELEGATE TO ONE OR MORE OF THE  DIRECTORS,  OFFICERS,
AGENTS  OR EMPLOYEES OF THE CORPORATION SUCH POWERS AND DUTIES AS IT MAY
DEEM PROPER.
  8. THE DIRECTORS SHALL BE REIMBURSED FOR THEIR  ACTUAL  AND  NECESSARY
EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES.
  9.  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 SECTION  SEVENTY-
THREE OF THE PUBLIC OFFICERS LAW.
  10. THE BOARD SHALL HOLD AN ANNUAL MEETING.
  11.  THE  FISCAL  YEAR OF THE CORPORATION SHALL BE THE SAME AS THAT OF
THE COUNTY, PROVIDED, HOWEVER, THAT THE CORPORATION SHALL  HAVE  A  NINE
MONTH  FISCAL YEAR FROM JULY FIRST, TWO THOUSAND TEN THROUGH MARCH THIR-
TY-FIRST, TWO THOUSAND ELEVEN, AND THEN THE FISCAL YEAR  OF  THE  CORPO-
RATION SHALL BE THE SAME AS THAT OF THE STATE.
  S 604. POWERS OF THE CORPORATION. THE CORPORATION SHALL HAVE POWER:
  1. TO SUE AND BE SUED;
  2. TO HAVE A SEAL AND TO ALTER THE SAME AT ITS PLEASURE;
  3.  TO ACQUIRE, HOLD, LEASE, RENT AND DISPOSE OF PERSONAL PROPERTY FOR
ITS CORPORATE PURPOSE;
  4. TO ACQUIRE, IN THE NAME OF THE STATE,  BY  PURCHASE,  CONDEMNATION,
GIFT,  GRANT  OR DEVISE OR OTHERWISE, AND TO USE, REAL PROPERTY WHICH IS
NECESSARY OR CONVENIENT FOR CARRYING OUT ITS CORPORATE PURPOSE; PROVIDED
THAT THE CORPORATION SHALL NOT CONDEMN ANY REAL PROPERTY  WITHOUT  FIRST
HAVING  OBTAINED THE CONSENT OF THE MAYOR. ALL REAL PROPERTY ACQUIRED BY
THE CORPORATION BY CONDEMNATION SHALL BE ACQUIRED IN THE MANNER PROVIDED
BY LAW FOR THE CONDEMNATION OF REAL PROPERTY BY THE STATE;
  5. TO MAKE BY-LAWS FOR THE MANAGEMENT AND REGULATION OF ITS AFFAIRS;
  6. WITH THE CONSENT OF THE STATE, TO USE AGENTS, OFFICERS,  EMPLOYEES,
AND  FACILITIES  OF THE STATE, PAYING TO THE STATE ITS AGREED PROPORTION
OF THE COMPENSATION OR COSTS;
  7. TO APPOINT OFFICERS, AGENTS AND EMPLOYEES, TO PRESCRIBE THEIR QUAL-
IFICATIONS AND TO FIX  THEIR  COMPENSATION;  SUBJECT,  HOWEVER,  TO  THE
PROVISIONS  OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, AND TO THE RIGHT
OF THE NASSAU COUNTY EXECUTIVE TO APPOINT THE EASTERN DISTRICT EXECUTIVE
VICE PRESIDENT;
  8. 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 PURPOSE; PROVIDED, HOWEVER, EXCEPT AS
OTHERWISE SET FORTH IN THIS CHAPTER, THAT THE CORPORATION MAY ONLY ENTER
INTO AGREEMENTS FOR THE PURCHASE OR LEASE OF ANY PROPERTY TO BE USED  IN
WHOLE  OR  IN PART AS AN OFF-TRACK BETTING BRANCH OFFICE WHICH IS CONDI-
TIONED UPON THE LOCATION THEREOF BEING APPROVED BY  THE  SITE  SELECTION
BOARD; AND FURTHER PROVIDED, THAT SUCH LOCATION PRIOR TO ITS USE AS SUCH
OFF-TRACK  BETTING  BRANCH  OFFICE  SHALL HAVE BEEN APPROVED BY THE SITE
SELECTION BOARD;

A. 9997                            34

  9. TO CONSTRUCT SUCH BUILDINGS, STRUCTURES AND FACILITIES  AS  MAY  BE
NECESSARY;
  10.  TO ACCEPT GRANTS, LOANS AND CONTRIBUTIONS FROM THE UNITED STATES,
THE STATE OR ANY AGENCY OR INSTRUMENTALITY OF EITHER  OF  THEM,  OR  THE
CITY,  COUNTY  OR ANY PERSON, INCLUDING GIFTS OR TRANSFERS BY BEQUEST OR
OTHERWISE, AND TO USE SAME OR EXPEND THE PROCEEDS THEREOF FOR ITS CORPO-
RATE PURPOSE;
  11. IN THE MANNER AND SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN
THIS ARTICLE, AND ARTICLE  FIVE-A  OF  THIS  CHAPTER  TO  ESTABLISH  AND
CONDUCT  A  SYSTEM  OF  OFF-TRACK PARI-MUTUEL BETTING IN THE CITY OF NEW
YORK AND THE COUNTY OF NASSAU ON HORSE RACES;
  12. A. TO PROMULGATE, AMEND AND REPEAL  SUCH  RULES  AND  REGULATIONS,
CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE, AS IT MAY DEEM NECESSARY
OR  DESIRABLE FOR THE CARRYING OUT OF THE PURPOSES OF THIS ARTICLE. SUCH
RULES AND REGULATIONS SHALL HAVE THE FORCE AND EFFECT OF LAW.
  B. NO RULE OR REGULATION PROMULGATED BY THE  CORPORATION  PURSUANT  TO
THE PROVISIONS OF THIS SUBDIVISION SHALL BE EFFECTIVE UNTIL A COPY THER-
EOF IS FILED WITH THE RACING AND WAGERING BOARD.
  C.  ANY VIOLATION OF ANY RULE OR REGULATION, FILED WITH THE RACING AND
WAGERING BOARD AND DESIGNATED BY THE LETTER "R"  BY  RESOLUTION  OF  THE
BOARD  OF DIRECTORS OF THE CORPORATION, SHALL BE AN OFFENSE TRIABLE BY A
JUDGE OF THE CRIMINAL COURT OF  THE  CITY  OF  NEW  YORK  OR  THE  FIRST
DISTRICT  COURT  OF  THE  COUNTY  OF  NASSAU, AND SHALL BE PUNISHABLE BY
IMPRISONMENT FOR NOT MORE THAN SIX 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 PAID INTO THE GENERAL FUND OF THE STATE, FOR
PROPORTIONAL DISTRIBUTION TO THE STATE AND COUNTY AS PROVIDED FOR  HERE-
IN. ANY SUCH RULE OR REGULATION SHALL BE EFFECTIVE, NOTWITHSTANDING THAT
ANY ACT OR OMISSION MADE AN OFFENSE OR PUNISHABLE THEREBY MAY BE A CRIME
OR OFFENSE OR PUNISHABLE UNDER ANY OTHER PROVISION OF LAW;
  13.  TO PERFORM SUCH OTHER ACTS AND ENGAGE IN SUCH OTHER ACTIVITIES AS
MAY BE NECESSARY AND PROPER FOR EXERCISING ITS POWERS AND PERFORMING ITS
DUTIES UNDER THIS ARTICLE.
  S 605. POLICING OF OFF-TRACK BETTING. 1. THE CORPORATION SHALL, AT ITS
OWN EXPENSE, PROVIDE SUCH POLICING AS MAY BE NECESSARY TO PRESERVE ORDER
IN BRANCH OFFICES AND OTHER FACILITIES AND PREMISES OF  THE  CORPORATION
AND ENFORCE THE PROVISIONS OF THIS ARTICLE AND THE RULES AND REGULATIONS
PROMULGATED PURSUANT THERETO.
  2.  SUCH  POLICING  SHALL  BE PROVIDED THROUGH EMPLOYEES OF THE CORPO-
RATION DESIGNATED AS: (I) SPECIAL PATROLMEN BY THE  POLICE  COMMISSIONER
OF  THE CITY OF NEW YORK OR THE COUNTY OF NASSAU AND SERVING PURSUANT TO
THE PROVISIONS OF SECTION 14-106 OF THE ADMINISTRATIVE CODE OF THE  CITY
OF NEW YORK; OR (II) SPECIAL POLICEMEN DESIGNATED IN A MANNER CONSISTENT
WITH SECTION FIVE HUNDRED FOUR OF THIS CHAPTER. WHEN SO DESIGNATED, SUCH
SPECIAL  PATROLMEN OR SPECIAL POLICEMEN SHALL, IN THE BRANCH OFFICES AND
THE OTHER FACILITIES AND PREMISES OF THE CORPORATION, AND IN  THE  AREAS
WITHIN FIVE HUNDRED FEET THEREFROM:
  A.  BE  EMPOWERED  TO  PERFORM  ALL FUNCTIONS AND TO ENFORCE ALL LAWS,
RULES AND REGULATIONS MENTIONED IN SUBDIVISION ONE OF THIS SECTION; AND
  B. POSSESS ALL OF THE POWERS AND DISCHARGE ALL OF THE DUTIES OF  REGU-
LAR MEMBERS OF THE POLICE FORCE OF THE CITY AND COUNTY.
  S  606.  PERSONNEL ADMINISTRATION; PENSION, RETIREMENT AND OTHER BENE-
FITS.  1. THE GENERAL MANAGEMENT OF THE CORPORATION SHALL BE  UNDER  THE
DIRECTION  OF  A  PRESIDENT, WHO SHALL BE THE CHIEF EXECUTIVE OFFICER OF
THE CORPORATION AND SHALL BE IN CHARGE  OF  THE  ADMINISTRATION  OF  ITS
AFFAIRS.    HE OR SHE SHALL PERFORM HIS OR HER DUTIES AS CHIEF EXECUTIVE

A. 9997                            35

OFFICER, TOGETHER WITH ANY OTHER DUTIES ASSIGNED TO HIM OR  HER  BY  THE
CORPORATION,  UNDER  THE  DIRECT SUPERVISION AND CONTROL OF THE BOARD OF
DIRECTORS, AND SHALL GIVE HIS OR HER FULL TIME TO SUCH DUTIES. THE OPER-
ATIONS OF THE WESTERN DISTRICT SHALL BE UNDER THE DIRECTION OF AN EXECU-
TIVE VICE PRESIDENT, AND THE OPERATIONS OF THE EASTERN DISTRICT SHALL BE
UNDER  THE  DIRECTION OF AN EXECUTIVE VICE PRESIDENT. THE EXECUTIVE VICE
PRESIDENTS OF THE DISTRICTS SHALL REPORT AND BE SUBJECT TO THE DIRECTION
OF THE PRESIDENT OF THE CORPORATION. THE PRESIDENT SHALL BE APPOINTED BY
AND SERVE AT THE PLEASURE OF THE BOARD OF DIRECTORS. THE EXECUTIVE  VICE
PRESIDENT OF THE EASTERN DISTRICT SHALL BE APPOINTED BY THE COUNTY EXEC-
UTIVE  OF  NASSAU  COUNTY, WITH THE ADVICE AND CONSENT OF THE SPEAKER OF
THE ASSEMBLY, AND THE EXECUTIVE VICE PRESIDENT OF THE  WESTERN  DISTRICT
SHALL  BE  APPOINTED BY THE BOARD OF DIRECTORS, FOR A TERM OF TWO YEARS,
PROVIDED THAT THE INITIAL TERMS OF ALL SUCH OFFICERS SHALL  COMMENCE  ON
JULY FIRST, TWO THOUSAND TEN AND END ON DECEMBER THIRTY-FIRST, TWO THOU-
SAND TEN.
  2.  FOR  THE  PURPOSES  OF THIS SECTION, ALL EMPLOYEES OF THE NEW YORK
CITY AND NASSAU COUNTY OFF-TRACK BETTING CORPORATIONS ON  OR  AFTER  THE
EFFECTIVE  DATE  OF THIS SECTION SHALL REMAIN EMPLOYEES OF THE METROPOL-
ITAN OFF-TRACK BETTING CORPORATION AFTER SUCH EFFECTIVE DATE.
  3. THE CORPORATION SHALL ADMINISTER  ITS  PERSONNEL  PURSUANT  TO  THE
CIVIL  SERVICE LAW AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER,
AND CLASSIFICATION AND COMPENSATION SCHEDULES OF THE STATE DEPARTMENT OF
CIVIL SERVICE, AND ALL  OTHER  APPLICABLE  PROVISIONS  OF  GENERAL  LAWS
RELATING  TO  CIVIL SERVICE ADMINISTRATION. THE CORPORATION SHALL RETAIN
ALL PERSONNEL, PAYROLL AND ASSOCIATED EMPLOYEE RECORDS AND SHALL  ENSURE
THAT  THE  NEW  YORK  CITY  AND/OR  NASSAU  COUNTY EMPLOYEES' RETIREMENT
SYSTEMS HAVE ACCESS TO SUCH RECORDS FOR RETIREMENT  PURPOSES  CONSISTENT
WITH CURRENT RECORDS RETENTION REQUIREMENTS.
  4.  ANY OFFICER OR EMPLOYEE OF THE CORPORATION WHO HERETOFORE ACQUIRED
OR SHALL HEREAFTER ACQUIRE SUCH POSITION STATUS BY TRANSFER AND  WHO  AT
THE  TIME  OF  SUCH  TRANSFER  WAS  A MEMBER OF THE NEW YORK CITY AND/OR
NASSAU COUNTY EMPLOYEES' RETIREMENT SYSTEM SHALL, WITH RESPECT  TO  SUCH
RETIREMENT  SYSTEM, CONTINUE TO HAVE THE RIGHTS, PRIVILEGES, OBLIGATIONS
AND STATUS WHICH WOULD HAVE APPLIED TO HIM OR  HER  IF  HE  OR  SHE  HAD
CONTINUED  TO  HOLD  THE OFFICE OR POSITION WHICH ENTITLED HIM OR HER TO
SUCH MEMBERSHIP PRIOR TO SUCH TRANSFER. EMPLOYMENT  BY  THE  CORPORATION
SHALL  CONSTITUTE CITY AND/OR COUNTY SERVICE FOR THE PURPOSES OF CHAPTER
ONE OF TITLE THIRTEEN OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK
AND/OR ANY SIMILAR PROVISION OF THE NASSAU COUNTY CODE.
  5. ALL EMPLOYEES AND OFFICERS OF THE CORPORATION IN CLASSES  OR  POSI-
TIONS  WHOSE  INCUMBENTS, IN EQUIVALENT CLASSES OR POSITIONS OF THE CITY
AND COUNTY, ARE ELIGIBLE AS OF THE EFFECTIVE DATE OF  THIS  SECTION,  TO
PARTICIPATE  IN  AND RECEIVE BENEFITS FROM ANY CITY OR COUNTY AUTHORIZED
HEALTH INSURANCE OR  WELFARE  BENEFIT  PROGRAM,  SHALL  BE  ELIGIBLE  TO
PARTICIPATE  IN,  AND RECEIVE BENEFITS FROM ANY SUCH HEALTH INSURANCE OR
WELFARE BENEFIT PROGRAM; PROVIDED, HOWEVER, THAT THE  CORPORATION  SHALL
REIMBURSE  THE CITY, COUNTY OR ITS DESIGNEE FOR THE ACTUAL COST OF BENE-
FITS UNDER THIS SUBDIVISION.
  S 607. ACQUISITION OR LEASING OF PROPERTY BY THE STATE OR CORPORATION;
AGREEMENTS BETWEEN THE STATE AND CORPORATION AS TO USE OR  OCCUPANCY  OF
PROPERTY.  1.  THE  STATE  MAY, IN ACCORDANCE WITH THE PROVISIONS OF LAW
GOVERNING THE ACQUISITION OR LEASING OF  REAL  PROPERTY  BY  THE  STATE,
ACQUIRE  REAL PROPERTY IN THE NAME OF THE STATE BY PURCHASE OR CONDEMNA-
TION FOR USE BY THE CORPORATION,  OR  LEASE  REAL  PROPERTY  FROM  OTHER
OWNERS  FOR  SUCH  PURPOSE,  AND MAY THROUGH LEASE OR CONTRACT MADE UPON

A. 9997                            36

SUCH TERMS AND CONDITIONS, WITH OR WITHOUT CONSIDERATION, AND  FOR  SUCH
PERIOD  OF  TIME AS MAY BE AGREED UPON BY THE STATE AND THE CORPORATION,
AUTHORIZE THE USE OR OCCUPANCY OF SUCH REAL PROPERTY BY THE  CORPORATION
FOR THE CARRYING OUT OF ITS CORPORATE PURPOSE.
  2.  THE  STATE MAY, IN ACCORDANCE WITH THE PROVISIONS OF LAW GOVERNING
THE ACQUISITION OR LEASING OF PERSONAL PROPERTY BY THE STATE, ACQUIRE OR
LEASE PERSONAL PROPERTY FOR USE BY THE CORPORATION AND MAY BY  LEASE  OR
CONTRACT  MADE UPON SUCH TERMS AND CONDITIONS, WITH OR WITHOUT CONSIDER-
ATION, AND FOR SUCH PERIOD OF TIME AS MAY BE AGREED UPON  BY  THE  STATE
AND  THE  CORPORATION  AUTHORIZE  THE USE OF SUCH PROPERTY BY THE CORPO-
RATION OR TRANSFER TITLE TO SUCH PROPERTY TO IT, FOR THE CARRYING OUT OF
ITS CORPORATE PURPOSE.
  3. CONTRACTS MAY BE ENTERED INTO BY  THE  STATE  AND  THE  CORPORATION
CONTAINING  UNDERTAKINGS  BY  THE STATE: (I) TO ACQUIRE OR LEASE REAL OR
PERSONAL PROPERTY AND AUTHORIZE THE USE OR  OCCUPANCY  OF  SAME  BY  THE
CORPORATION;  OR (II) TO PERFORM ANY OTHER ACTS ON THE PART OF THE STATE
AUTHORIZED BY SUBDIVISIONS ONE AND TWO OF  THIS  SECTION,  PROVIDED  THE
ACTS OF THE STATE CALLED FOR BY SUCH UNDERTAKINGS ARE IN CONFORMITY WITH
THE PROVISIONS OF, AND WITHIN THE POWERS GRANTED TO THE STATE BY, SUBDI-
VISIONS  ONE  AND  TWO  OF THIS SECTION. THE MAKING OF ANY SUCH CONTRACT
SHALL BE AUTHORIZED IN THE SAME MANNER AS THE ACT OR ACTS OF  THE  STATE
CALLED  FOR  BY  THE  UNDERTAKING  OR  UNDERTAKINGS IN SUCH CONTRACT ARE
REQUIRED TO BE AUTHORIZED UNDER THE APPLICABLE  PROVISIONS  OF  SUBDIVI-
SIONS ONE AND TWO OF THIS SECTION.
  4.  IF  SUCH REAL PROPERTY WAS ACQUIRED AT THE COST AND EXPENSE OF THE
CORPORATION, THE CORPORATION SHALL HAVE POWER TO SELL, LEASE  OR  OTHER-
WISE  DISPOSE OF SAID REAL PROPERTY AT PUBLIC OR PRIVATE SALE, AND SHALL
RETAIN AND HAVE THE POWER TO USE THE PROCEEDS OF SALE, RENTALS, OR OTHER
MONEYS DERIVED FROM THE DISPOSITION THEREOF FOR ITS CORPORATE PURPOSE.
  5. THE SITE SELECTION BOARD, AS DEFINED IN SECTION SIX HUNDRED TWO  OF
THIS ARTICLE SHALL OPERATE PURSUANT TO THE FOLLOWING PROCEDURES:
  A. EVERY ACT OF THE BOARD SHALL BE BY RESOLUTION ADOPTED BY A MAJORITY
OF  THE  VOTES  CAST  BY ALL THE MEMBERS. NO RESOLUTION SHALL BE ADOPTED
EXCEPT AFTER A PUBLIC HEARING, NOTICE OF WHICH SHALL BE PUBLISHED IN THE
STATE REGISTER FOR SIX CONSECUTIVE BUSINESS DAYS AND IN A  NEWSPAPER  OF
GENERAL  CIRCULATION IN THE CITY AND COUNTY FOR TWO CONSECUTIVE BUSINESS
DAYS IMMEDIATELY PRECEDING SAID HEARING.
  B. MEETING OF THE SITE SELECTION BOARD SHALL BE CALLED EITHER:
  (I) AS DIRECTED BY THE BOARD UPON  NOTICE  THEREOF  PUBLISHED  IN  THE
STATE  REGISTER  FOR SIX CONSECUTIVE BUSINESS DAYS AND IN A NEWSPAPER OF
GENERAL CIRCULATION IN THE CITY AND COUNTY FOR TWO CONSECUTIVE  BUSINESS
DAYS; OR
  (II)  UPON  WRITTEN NOTICE TO THE BOARD BY THE PRESIDENT OF THE CORPO-
RATION, THAT A SITE FOR AN OFF-TRACK  BETTING  BRANCH  OFFICE  IS  UNDER
CONSIDERATION  BY  THE  CORPORATION  FOR LEASE OR ACQUISITION. A COPY OF
SUCH WRITTEN NOTICE SHALL BE PUBLISHED IN THE  STATE  REGISTER  FOR  SIX
CONSECUTIVE  BUSINESS  DAYS AND IN A NEWSPAPER OF GENERAL CIRCULATION IN
THE CITY AND COUNTY FOR TWO CONSECUTIVE BUSINESS DAYS. ALL  MEETINGS  OF
THE BOARD SHALL BE WITHIN SEVEN CONSECUTIVE BUSINESS DAYS OF THE DATE ON
WHICH  NOTICE OF SAID MEETING IS FIRST PRINTED IN THE STATE REGISTER FOR
SIX CONSECUTIVE BUSINESS DAYS AND IN A NEWSPAPER OF GENERAL  CIRCULATION
IN THE CITY AND COUNTY FOR TWO CONSECUTIVE BUSINESS DAYS.
  C.  THE  SITE  SELECTION BOARD SHALL HAVE POWER AND AUTHORITY TO ADOPT
AND AMEND RULES AND REGULATIONS FOR THE CONDUCT OF ITS BUSINESS  AND  TO
CARRY OUT ITS POWERS AND DUTIES; PROVIDED, HOWEVER, THAT THE BOARD SHALL
ADOPT  RULES WHICH REQUIRE BOARD ACTION ON A PROPOSED SITE WITHIN THIRTY

A. 9997                            37

DAYS OF THE BOARD'S PUBLIC HEARING PROVIDED FOR IN THIS SECTION AND THAT
BY ITS FAILURE TO ACT WITHIN THIRTY DAYS THE BOARD SHALL  BE  DEEMED  TO
HAVE APPROVED THE SITE.
  S  609-A.  CAPITAL  ACQUISITION  FUND.  THE CORPORATION MAY CREATE AND
ESTABLISH A CAPITAL ACQUISITION FUND FOR THE PURPOSE  OF  FINANCING  THE
ACQUISITION,  CONSTRUCTION  OR EQUIPPING OF OFFICES, FACILITIES OR PREM-
ISES OF THE CORPORATION. SUCH CAPITAL ACQUISITION FUND SHALL CONSIST OF:
(I) THE AMOUNTS SPECIFIED PURSUANT TO SUBDIVISION THREE OF SECTION  FIVE
HUNDRED  THIRTY-TWO  OF  THIS  CHAPTER;  AND (II) CONTRIBUTIONS FROM THE
CORPORATION'S PARI-MUTUEL WAGERING POOLS, SUBJECT TO THE FOLLOWING LIMI-
TATIONS:
  1. NO CONTRIBUTION SHALL EXCEED THE AMOUNT OF  THREE  PERCENT  OF  THE
TOTAL  PARI-MUTUEL  WAGERING POOLS FOR THE QUARTER IN WHICH THE CONTRIB-
UTION IS MADE;
  2. NO CONTRIBUTION SHALL REDUCE THE AMOUNT OF QUARTERLY NET  REVENUES,
EXCLUSIVE OF SURCHARGE REVENUES, TO AN AMOUNT LESS THAN FIFTY PERCENT OF
PRE-DISTRIBUTION  NET REVENUE AFTER DEDUCTION FOR THE COST OF THE CORPO-
RATION'S FUNCTIONS AS DEFINED IN SECTION FIVE HUNDRED ONE OF THIS  CHAP-
TER AND SECTION SIX HUNDRED TWO OF THIS ARTICLE; AND
  3.  THE  BALANCE  OF  THE  FUND  SHALL  NOT EXCEED THE LESSER OF THREE
PERCENT OF TOTAL PARI-MUTUEL WAGERING  POOLS  FOR  THE  PREVIOUS  TWELVE
MONTHS  OR THE UNDEPRECIATED VALUE OF THE CORPORATION'S OFFICES, FACILI-
TIES AND PREMISES.
  S 610. MONEYS OF CORPORATION. 1.  THE  MONETARY  TRANSACTIONS  OF  THE
CORPORATION AND THE KEEPING OF ITS BOOKS AND ACCOUNTS SHALL BE UNDER THE
SUPERVISION OF THE STATE COMPTROLLER. THE CHAIR OF THE RACING AND WAGER-
ING  BOARD MAY AT ANY TIME REQUEST AND SHALL BE PROVIDED FOR REVIEW SUCH
BOOKS AND ACCOUNTS.
  2. ALL MONEYS DUE THE STATE,  CITY  AND  COUNTY  PURSUANT  TO  ARTICLE
FIVE-A  OF  THIS  CHAPTER  SHALL BE PAID TO THE STATE COMPTROLLER OR THE
RESPECTIVE COMPTROLLER OF SUCH MUNICIPALITIES, AND PROVIDED FURTHER THAT
ANY NET REVENUE SHALL 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 PREVIOUS CALENDAR QUAR-
TER THAT ORIGINATED IN THE BRANCH OFFICES LOCATED IN NEW YORK  CITY  AND
NASSAU COUNTY, RESPECTIVELY.
  3.  THE  STATE COMPTROLLER AND HIS OR HER LEGALLY AUTHORIZED REPRESEN-
TATIVE ARE AUTHORIZED TO EXAMINE THE ACCOUNTS AND BOOKS  OF  THE  CORPO-
RATION,  INCLUDING ITS RECEIPTS, DISBURSEMENTS, CONTRACTS, LEASES, SINK-
ING FUNDS, INVESTMENTS AND ANY OTHER RECORDS AND PAPERS RELATING TO  ITS
FINANCIAL STANDING.
  4. THE CORPORATION SHALL HAVE POWER, NOTWITHSTANDING THE PROVISIONS OF
THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY OF ITS BONDS AS TO THE
CUSTODY,  COLLECTION,  SECURING, INVESTMENT AND PAYMENT OF ANY MONEYS OF
THE CORPORATION OR ANY MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT
OF BONDS IN ANY WAY TO SECURE BONDS, AND TO CARRY OUT ANY SUCH  CONTRACT
NOTWITHSTANDING THAT SUCH CONTRACT MAY BE INCONSISTENT WITH THE PREVIOUS
PROVISIONS OF THIS SECTION.
  5.  MONEYS  HELD  IN TRUST OR OTHERWISE FOR THE PAYMENT OF BONDS OR IN
ANY WAY TO SECURE BONDS AND DEPOSITS OF SUCH MONEYS MAY  BE  SECURED  IN
THE  SAME  MANNER  AS MONEYS OF THE CORPORATION, AND ALL BANKS AND TRUST
COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOSITS.
  S 611. ISSUANCE OF BONDS AND NOTES BY CORPORATION. 1. THE  CORPORATION
SHALL  HAVE  THE  POWER  AND IS HEREBY AUTHORIZED, FROM TIME TO TIME, TO
ISSUE NEGOTIABLE BONDS AND NOTES IN SUCH AGGREGATE PRINCIPAL AMOUNTS  AS
SHALL,  IN  THE  OPINION  OF THE CORPORATION, BE NECESSARY TOGETHER WITH

A. 9997                            38

SUCH OTHER MONEYS OR FUNDS AS MAY BE AVAILABLE TO  THE  CORPORATION,  TO
PROVIDE  FUNDS  SUFFICIENT  TO  ENABLE  THE CORPORATION TO CARRY OUT ITS
CORPORATE PURPOSES, INCLUDING THE ACQUISITION, CONSTRUCTION, MAINTENANCE
AND REPAIR OF PERSONAL AND REAL PROPERTY, THE PAYMENT OF INTEREST ON AND
AMORTIZATION  OF,  OR PAYMENT OF SUCH BONDS AND NOTES, THE ESTABLISHMENT
OF RESERVES OR SINKING FUNDS TO SECURE SUCH BONDS  AND  NOTES,  AND  ALL
OTHER  EXPENDITURES  OF  THE  CORPORATION  INCIDENT  TO AND NECESSARY OR
DESIRABLE FOR THE CARRYING OUT OF ITS CORPORATE PURPOSES AND  THE  EXER-
CISE OF ITS POWERS. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY THE
CORPORATION,  EVERY  ISSUE OF ITS BONDS AND NOTES SHALL BE GENERAL OBLI-
GATIONS OF THE CORPORATION PAYABLE OUT OF ANY REVENUES OR MONEYS OF  THE
CORPORATION,  SUBJECT ONLY TO ANY AGREEMENTS WITH THE HOLDERS OF PARTIC-
ULAR BONDS OR NOTES PLEDGING ANY PARTICULAR REVENUES OR MONEYS.  WHETHER
OR NOT THE BONDS OR NOTES ARE OF SUCH FORM AND CHARACTER AS TO BE  NEGO-
TIABLE  INSTRUMENTS UNDER THE PROVISIONS OF ARTICLE EIGHT OF THE UNIFORM
COMMERCIAL CODE, THE BONDS AND NOTES SHALL BE AND ARE HEREBY MADE  NEGO-
TIABLE  INSTRUMENTS  WITHIN  THE  MEANING OF AND FOR ALL THE PURPOSES OF
ARTICLE EIGHT OF THE  UNIFORM  COMMERCIAL  CODE,  SUBJECT  ONLY  TO  THE
PROVISIONS OF THE BONDS OR NOTES FOR REGISTRATION.
  2. THE CORPORATION SHALL HAVE THE POWER AND IS HEREBY AUTHORIZED, FROM
TIME  TO  TIME,  TO  ISSUE RENEWAL NOTES, AND TO REFUND ANY BONDS BY THE
ISSUANCE OF NEW BONDS, WHETHER THE BONDS TO BE REFUNDED HAVE OR HAVE NOT
MATURED, AND TO ISSUE BONDS TO PAY NOTES OR PARTLY TO REFUND BONDS  THEN
OUTSTANDING.  ANY  OR  ALL  BONDS, NOTES OR OTHER OBLIGATIONS OF THE NEW
YORK CITY REGIONAL OFF-TRACK BETTING CORPORATION AND/OR THE NASSAU COUN-
TY REGIONAL OFF-TRACK BETTING CORPORATION AS SHALL BE OUTSTANDING ON THE
EFFECTIVE DATE HEREOF SHALL BECOME FULL FAITH OBLIGATIONS OF SAID METRO-
POLITAN REGIONAL OFF-TRACK BETTING  CORPORATION  AND  SHALL  BE  CONSOL-
IDATED,  ABSORBED, MODIFIED, RE-CAPITALIZED, RE-ISSUED, RE-FUNDED AND/OR
LIQUIDATED AS THE  BOARD  OF  DIRECTORS  OF  THE  METROPOLITAN  REGIONAL
OFF-TRACK  BETTING  CORPORATION  SHALL DETERMINE TO BE APPROPRIATE HERE-
UNDER OR IN ACCORDANCE WITH SECTIONS  FIVE  HUNDRED  EIGHT  AND/OR  FIVE
HUNDRED ELEVEN OF THIS CHAPTER.
  3.  SUCH  BONDS  AND NOTES SHALL BE AUTHORIZED BY RESOLUTION OR RESOL-
UTIONS OF THE BOARD, AND SHALL MATURE AS SUCH RESOLUTION OR  RESOLUTIONS
MAY  PROVIDE. BONDS AND NOTES SHALL BEAR INTEREST AT SUCH RATE OR RATES,
BE IN SUCH DENOMINATIONS, BE IN SUCH FORM, EITHER COUPON OR  REGISTERED,
CARRY SUCH REGISTRATION PRIVILEGES, BE EXECUTED IN SUCH MANNER, BE PAYA-
BLE  IN  SUCH MEDIUM OF PAYMENT, AT SUCH PLACE OR PLACES, AND BE SUBJECT
TO SUCH TERMS OF  REDEMPTION  AS  SUCH  RESOLUTION  OR  RESOLUTIONS  MAY
PROVIDE.    BONDS  AND NOTES MAY BE SOLD BY THE CORPORATION AT PUBLIC OR
PRIVATE SALE AT SUCH PRICE OR PRICES AS THE CORPORATION SHALL DETERMINE;
PROVIDED, HOWEVER, THAT NO SUCH BONDS OR NOTES MAY BE SOLD AT A  PRIVATE
SALE  UNLESS  THE  SALE  AND THE TERMS THEREOF HAVE BEEN APPROVED BY THE
COMPTROLLER IN WRITING.
  4. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS  OR  NOTES  MAY
CONTAIN  PROVISIONS,  WHICH SHALL BE A PART OF THE CONTRACT OR CONTRACTS
WITH THE HOLDERS THEREOF, AS TO:
  A. PLEDGING ALL OR ANY PART OF THE MONEYS OR REVENUES OR OTHER  ASSETS
OF THE CORPORATION TO SECURE THE PAYMENT OF SUCH BONDS OR NOTES;
  B.  THE  SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE REGULATION
OR DISPOSITION THEREOF;
  C. LIMITATIONS ON THE PURPOSES TO WHICH THE PROCEEDS OF  THE  SALE  OF
ANY  ISSUE  OF  BONDS  OR  NOTES  THEN OR THEREAFTER TO BE ISSUED MAY BE
APPLIED AND PLEDGING SUCH PROCEEDS TO SECURE THE PAYMENT OF THE BONDS OR
NOTES OR ANY ISSUE THEREOF;

A. 9997                            39

  D. LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS OR NOTES; THE TERMS
UPON WHICH SUCH ADDITIONAL BONDS OR NOTES MAY BE ISSUED AND SECURED; THE
REFUNDING OF OUTSTANDING BONDS OR NOTES;
  E. THE PROCEDURES, IF ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH THE
HOLDERS  OF  BONDS  OR NOTES MAY BE EXTENDED OR ABROGATED, THE AMOUNT OF
BONDS OR NOTES THE HOLDERS OF WHICH MUST CONSENT THERETO AND THE  MANNER
IN WHICH SUCH CONSENT MAY BE GIVEN;
  F.  THE CREATION OF SPECIAL FUNDS INTO WHICH ANY MONEYS OR REVENUES OF
THE CORPORATION MAY BE DEPOSITED;
  G. LIMITATIONS ON THE AMOUNTS THAT  THE  CORPORATION  MAY  EXPEND  FOR
ADMINISTRATIVE OR OTHER EXPENSES THEREOF;
  H.  VESTING IN A TRUSTEE SUCH PROPERTIES, RIGHTS, POWERS AND DUTIES IN
TRUST AS THE CORPORATION MAY DETERMINE AND LIMITING  OR  ABROGATING  THE
RIGHT  OF  THE  HOLDERS OF THE BONDS OR NOTES TO APPOINT A TRUSTEE UNDER
SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE;
  I. DEFINING THE ACTS OR OMISSIONS TO  ACT  WHICH  SHALL  CONSTITUTE  A
DEFAULT  IN THE OBLIGATIONS AND DUTIES OF THE CORPORATION TO THE HOLDERS
OF THE BONDS OR NOTES AND PROVIDING FOR THE RIGHTS AND REMEDIES  OF  THE
HOLDERS OF THE BONDS OR NOTES IN THE EVENT OF SUCH DEFAULT, INCLUDING AS
A  MATTER  OF  RIGHT  THE APPOINTMENT OF A RECEIVER; PROVIDING, HOWEVER,
THAT SUCH RIGHTS AND REMEDIES SHALL NOT BE INCONSISTENT WITH THE GENERAL
LAWS OF THE STATE AND THE OTHER PROVISIONS OF THIS ARTICLE;
  J. ANY OTHER MATTERS, OF LIKE OR DIFFERENT CHARACTER, WHICH IN ANY WAY
AFFECT THE SECURITY OR PROTECTION OF THE HOLDERS OF THE BONDS OR NOTES.
  5. ANY PLEDGE OF REVENUES, MONEYS OR PROPERTY MADE BY THE  CORPORATION
SHALL  BE  VALID  AND BINDING FROM THE TIME WHEN THE PLEDGE IS MADE; THE
REVENUES, MONEYS OR PROPERTY SO PLEDGED AND THEREAFTER RECEIVED  BY  THE
CORPORATION  SHALL  IMMEDIATELY  BE  SUBJECT  TO THE LIEN OF SUCH PLEDGE
WITHOUT ANY PHYSICAL DELIVERY THEREOF OR FURTHER ACT, AND  THE  LIEN  OF
ANY SUCH PLEDGE SHALL BE VALID AND BINDING AS AGAINST ALL PARTIES HAVING
CLAIMS  OF  ANY  KIND  IN TORT, CONTRACT OR OTHERWISE AGAINST THE CORPO-
RATION  IRRESPECTIVE  OF  WHETHER  SUCH  PARTIES  HAVE  NOTICE  THEREOF.
NEITHER  THE RESOLUTION OR RESOLUTIONS NOR ANY OTHER INSTRUMENT BY WHICH
A PLEDGE IS CREATED NEED BE RECORDED.
  6. NEITHER THE DIRECTORS OF  THE  CORPORATION  NOR  ANY  OTHER  PERSON
EXECUTING SUCH BONDS OR NOTES SHALL BE SUBJECT TO ANY PERSONAL LIABILITY
OR ACCOUNTABILITY BY REASON OF THE ISSUANCE THEREOF.
  7.  THE  CORPORATION,  SUBJECT  TO SUCH AGREEMENTS WITH THE HOLDERS OF
BONDS OR NOTES AS MAY THEN EXIST, SHALL HAVE THE POWER OUT OF ANY  FUNDS
AVAILABLE  THEREFOR  TO  PURCHASE  ANY  BONDS OR NOTES ISSUED BY IT AT A
PRICE NOT EXCEEDING THE REDEMPTION PRICE THEREOF WHICH PRICE SHALL BE:
  A. IF THE BONDS OR NOTES ARE THEN  REDEEMABLE,  THE  REDEMPTION  PRICE
THEN  APPLICABLE PLUS ACCRUED INTEREST TO THE NEXT INTEREST PAYMENT DATE
THEREON, OR
  B. IF THE BONDS OR NOTES ARE NOT THEN REDEEMABLE, THE REDEMPTION PRICE
APPLICABLE ON THE FIRST DATE AFTER SUCH PURCHASE  UPON  WHICH  BONDS  OR
NOTES  BECOME  SUBJECT TO REDEMPTION PLUS ACCRUED INTEREST TO SUCH DATE.
ALL BONDS OR NOTES SO PURCHASED SHALL BE CANCELLED.
  S 613. AGREEMENT OF THE STATE. THE STATE DOES PLEDGE TO AND AGREE WITH
THE HOLDERS OF ANY AND ALL BONDS AND NOTES OF THE CORPORATION  THAT  THE
STATE WILL NOT AUTHORIZE ANY OFFICER OR AGENCY OF GOVERNMENT, OTHER THAN
THE  CORPORATION, OR ANY PRIVATE PERSON, TO CONDUCT OFF-TRACK BETTING IN
THE CITY OR COUNTY ON HORSE RACES, NOR IN ANY MANNER LIMIT OR ALTER  THE
RIGHTS  HEREBY  VESTED  IN  THE  CORPORATION TO FULFILL THE TERMS OF ANY
AGREEMENTS MADE WITH THE SAID HOLDERS, OR IN ANY WAY IMPAIR  THE  RIGHTS
AND  REMEDIES  OF  SUCH HOLDERS UNTIL THE BONDS AND NOTES, TOGETHER WITH

A. 9997                            40

THE INTEREST THEREON, INTEREST ON ANY UNPAID INSTALLMENTS  OF  INTEREST,
AND  ALL  COSTS AND EXPENSES IN CONNECTION WITH ANY ACTION OR PROCEEDING
BY OR ON BEHALF OF SUCH HOLDERS,  ARE  FULLY  MET  AND  DISCHARGED.  THE
CORPORATION  IS  AUTHORIZED  TO INCLUDE THIS PLEDGE AND AGREEMENT OF THE
STATE IN ANY AGREEMENT WITH THE HOLDERS OF SUCH BONDS OR NOTES.
  S 614. STATE, CITY AND COUNTY NOT  LIABLE  ON  BONDS  AND  NOTES.  THE
BONDS, NOTES OR OTHER OBLIGATIONS OF THE CORPORATION SHALL NOT BE A DEBT
OF  EITHER THE STATE, THE CITY OR THE COUNTY, AND NEITHER THE STATE, THE
CITY NOR THE COUNTY SHALL BE LIABLE THEREON, NOR SHALL THEY  BE  PAYABLE
OUT OF ANY FUNDS OTHER THAN THOSE OF THE CORPORATION.
  S  617.  EXEMPTION  FROM  TAXATION.  1. THE MONEYS AND PROPERTY OF THE
CORPORATION AND ANY PROPERTY UNDER ITS JURISDICTION, CONTROL  OR  SUPER-
VISION,  AND  ALL  OF ITS ACTIVITIES AND OPERATIONS SHALL BE EXEMPT FROM
TAXATION, PROVIDED THAT THE CORPORATION MAY ENTER  INTO  AGREEMENTS  FOR
PAYMENTS  IN  LIEU  OF TAXES WITH MUNICIPALITIES AND SCHOOL DISTRICTS IN
WHICH ANY OF ITS PROPERTY IS LOCATED.
  2. THE STATE COVENANTS WITH THE PURCHASERS OF AND WITH ALL  SUBSEQUENT
HOLDERS  AND  TRANSFEREES  OF  BONDS AND NOTES ISSUED BY THE CORPORATION
PURSUANT TO THIS ARTICLE, IN CONSIDERATION  OF  THE  ACCEPTANCE  OF  AND
PAYMENT  FOR THE SAID BONDS AND NOTES, THAT THE SAID BONDS AND NOTES AND
THE INCOME THEREFROM, AND ALL MONEYS, FUNDS AND REVENUE PLEDGED  TO  PAY
OR SECURE THE PAYMENT OF SUCH BONDS AND NOTES SHALL AT ALL TIMES BE FREE
FROM TAXATION, EXCEPT FOR ESTATE AND GIFT TAXES AND TAXES ON TRANSFERS.
  S  623.  INCONSISTENT  PROVISIONS OF OTHER LAWS SUPERSEDED. INSOFAR AS
THE PROVISIONS OF THIS ARTICLE ARE INCONSISTENT WITH THE  PROVISIONS  OF
ANY  OTHER  LAW,  GENERAL, SPECIAL OR LOCAL, OTHER THAN ARTICLE FIVE AND
ARTICLE FIVE-A OF THIS CHAPTER, THE PROVISIONS OF THIS ARTICLE SHALL  BE
CONTROLLING.
  S  624. TERMINATION OF THE CORPORATION. THE CORPORATION AND ITS CORPO-
RATE EXISTENCE SHALL CONTINUE UNTIL TERMINATED BY SPECIFIC  ACT  OF  THE
STATE LEGISLATURE; PROVIDED, HOWEVER, THAT NO SUCH LAW SHALL TAKE EFFECT
SO  LONG AS THE CORPORATION SHALL HAVE BONDS, NOTES OR OTHER OBLIGATIONS
OUTSTANDING. UPON TERMINATION OF THE EXISTENCE OF THE CORPORATION ALL OF
ITS RIGHTS, PROPERTY, ASSETS AND FUNDS SHALL THEREUPON VEST  IN  AND  BE
POSSESSED BY THE STATE.
  S 11. This act shall take effect immediately.

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Assembly Bill A9997

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Archive: Last Bill Status - In Assembly Committee

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2009-A9997 (ACTIVE) - Summary

2009-A9997 (ACTIVE) - Sponsor Memo

2009-A9997 (ACTIVE) - Bill Text download pdf

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