NY State Senate Bill 2009-S660

Senate Bill S660

2009-2010 Legislative Session

Prohibits the issuance to or holding of thoroughbred track, harness track or video gaming licenses by persons convicted of moral turpitude felonies

download bill text pdf

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to racing, gaming and wagering
Jan 12, 2009	referred to racing, gaming and wagering

co-Sponsors

2009-S660 (ACTIVE) - Details

See Assembly Version of this Bill:: A936
Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Add §§112 & 204-a, amd §303, RWB L; amd §1617-a, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A4189
2013-2014: A6270

2009-S660 (ACTIVE) - Summary

Prohibits the issuance to or holding of thoroughbred track, harness track or video gaming licenses by persons convicted of a felony involving moral turpitude; applies also to certain transfers of stock; directs the state racing and wagering board to share pertinent information with the division of the lottery.

2009-S660 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S660

 TITLE OF BILL :

An act to amend the racing, pari-mutuel wagering and breeding law and
the tax law, in relation to making persons convicted of certain
felonies ineligible for thoroughbred racing, harness racing and video
lottery gaming licenses


 PURPOSE :

The purpose of this bill is to make it explicit in the law that
persons or business entities that have been convicted of a felony
involving moral turpitude are ineligible to hold a license to conduct
thoroughbred or harness racing events.

 SUMMARY OF PROVISIONS :

Section 1: Creates section 112 of the Racing, Pari-Mutuel Wagering and
Breeding Law to explicitly make persons "or business entities that
bold thoroughbred or harness racing licenses ineligible to either
obtain or continue to hold such a racing license. This provision also
empowers the Racing &, Wagering Board to immediately issue a new
temporary license to a bona fide organization to replace the former
thoroughbred or harness racing licensee whose license has been revoked

to ensure that race meets can continue to be held without
interruption.

Section 2: Creates section 204-a of the Racing &, Wagering Law to
empower the Racing and Wagering Board to approve of all stock
transfers of 25% or more for any racing association or corporation
that possesses a racing license. This is to ensure that that all new
stockholders of a racing licensee have not been convicted of any
felony involving issues of moral turpitude.

Section 3: Amends section 303 of the Racing & Wagering Law to
incorporate the new prohibitions stated in bill sections one and two
barring certain felons from managing race meets in New York State to
apply to those that hold harness race meet licenses.

Section 4: Amends Tax law section 1617-a to make it very clear that
110 person or business entity that has been convicted of a felony can
obtain or continue to hold a license to operate a video lottery gaming
facility.

 EXISTING LAW :

It his long been interpreted and inferred that persons, corporations
or other business entities would be ineligible to obtain or hold a
license to conduct thoroughbred or harness racing meets.  However, it
has come to light that perhaps this prohibition, while inferred,
should be made crystal clear within the Racing and Wagering Law.

 JUSTIFICATION :

Over the put few years, there have been investigations within New
York's racing industry that may lead to criminal convictions of
persons, corporations or other business entities that currently hold
licenses to hold thoroughbred and harness racing meets. It has long
been inferred that those that are convicted of a felony would be
ineligible to apply for or continue to hold a racing license in New
York State. In light of the current state of racing in New York State,
it may be prudent to clearly state that certain convicted felons
should not be allowed to conduct meets or handle betting monies
generated at such tracks. For the prestige and stature of New York
racing in this country, it is important that those that hold racing
licenses are held to the highest moral and ethical standards so that
the betting public will have a level of confidence on race meets that
are held in New York.

This bill also outlines a procedure to quickly replace, on temporary
basis, a horse racing licensee that has been convicted of a felony
with another licensee to ensure that race meets can still be conducted
without interruption. Without this provision, race meets could not be
held to the detriment of horse owners, track employees and the betting
public.

Under current law most professions including any attorneys,
beauticians, bus drivers, nurses, and security guards that are
convicted of any felony are automatically disqualified from holding a
license. A similar law should apply to Race Track licenses.

 LEGISLATIVE HISTORY :

S.5810 of 2003/2004, S.2346 of 2005/2006, S.347-A of 2007/2008

 FISCAL IMPLICATIONS :

None.

 LOCAL FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect January 1 next succeeding the date on which
it shall have become a law.

2009-S660 (ACTIVE) - Bill Text download pdf

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

                                   660

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 12, 2009
                               ___________

Introduced  by  Sens. LARKIN, NOZZOLIO, ROBACH, VOLKER -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Racing, Gaming and Wagering

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law and
  the tax law, in relation to making persons convicted of certain  felo-
  nies  ineligible  for  thoroughbred  racing,  harness racing and video
  lottery gaming licenses

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

  Section  1.    The  racing,  pari-mutuel  wagering and breeding law is
amended by adding a new section 112 to read as follows:
  S 112. PERSONS CONVICTED OF CERTAIN FELONIES  INELIGIBLE  FOR  CERTAIN
LICENSES.  1.   THE PROVISIONS OF THIS SECTION APPLY TO LICENSES SUBJECT
TO SECTION TWO HUNDRED FIVE OF THIS  CHAPTER  FOR  RUNNING  THOROUGHBRED
RACES  AND LICENSES SUBJECT TO SECTION THREE HUNDRED SEVEN OF THIS CHAP-
TER FOR THE CONDUCT OF HARNESS RACE MEETINGS.
  2. A.  FOR THE PURPOSES OF THIS SECTION,  A  CONVICTION  OF  A  FELONY
SHALL  MEAN  THE CONVICTION OF A FELONY INVOLVING MORAL TURPITUDE BY ANY
COURT IN THIS STATE OR BY ANY COURT OF THE UNITED STATES OR BY ANY COURT
OF ANY OTHER STATE OF THE UNITED STATES; PROVIDED, HOWEVER,  THAT  IF  A
CRIME  OF  WHICH A PERSON IS CONVICTED BY ANY COURT OF THE UNITED STATES
OR ANY OTHER STATE  IS  A  FELONY  IN  THE  JURISDICTION  IN  WHICH  THE
CONVICTION  IS HAD BUT IS NOT A FELONY INVOLVING MORAL TURPITUDE IN THIS
STATE, THEN THE CONVICTION SHALL NOT BE DEEMED A CONVICTION OF A  FELONY
FOR  THE  PURPOSE  OF THIS SECTION. IN THE EVENT THAT A CRIME OF WHICH A
PERSON IS CONVICTED BY ANY COURT OF THE UNITED STATES OR BY ANY COURT OF
ANY OTHER STATE IS NOT  A  FELONY  IN  THE  JURISDICTION  IN  WHICH  THE
CONVICTION  IS  HAD  BUT  IS  A FELONY INVOLVING MORAL TURPITUDE IN THIS
STATE, THEN THE CONVICTION SHALL BE DEEMED A CONVICTION OF A FELONY  FOR
THE PURPOSES OF THIS SECTION.  IF A PERSON CONVICTED OF SUCH A FELONY OR
CRIME  DEEMED TO BE SUCH A FELONY IS SUBSEQUENTLY PARDONED BY THE GOVER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01078-01-9

S. 660                              2

NOR OF THE STATE WHERE SUCH CONVICTION WAS HAD, OR BY THE  PRESIDENT  OF
THE UNITED STATES, OR SHALL RECEIVE A CERTIFICATE OF GOOD CONDUCT GRANT-
ED  BY  THE  BOARD OF PAROLE PURSUANT TO THE PROVISIONS OF THE EXECUTIVE
LAW  FOR  THE  PURPOSE  OF  REMOVING  THE  DISABILITY UNDER THIS SECTION
BECAUSE OF SUCH CONVICTION, THE BOARD MAY, IN ITS DISCRETION, ON  APPLI-
CATION  OF  SUCH  PERSON,  AND  ON  THE SUBMISSION TO IT OF SATISFACTORY
EVIDENCE OF GOOD MORAL CHARACTER AND SUITABILITY, LICENSE SUCH PERSON.
  B. FOR THE PURPOSES OF THIS SECTION, "MAJOR  STOCKHOLDER"  SHALL  MEAN
ANY PERSON WHICH OWNS OR SEEKS TO OWN TWENTY-FIVE PERCENT OR MORE OF THE
STOCK OF AN ASSOCIATION, FRANCHISEE OR CORPORATION.
  3.  A.  THE  STATE  RACING  AND WAGERING BOARD SHALL REFUSE TO GRANT A
LICENSE TO AN ASSOCIATION, FRANCHISEE OR CORPORATION IF IT SHALL  DETER-
MINE  THAT  ANY  OFFICER,  DIRECTOR, MEMBER OR MAJOR STOCKHOLDER OF SUCH
ASSOCIATION, FRANCHISEE OR CORPORATION APPLYING FOR A LICENSE  HAS  BEEN
CONVICTED OF A FELONY.
  B.  THE  STATE  RACING  AND WAGERING BOARD SHALL REVOKE ANY LICENSE IN
EFFECT ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION IF THE  PROVISIONS
OF  PARAGRAPH  A  OF  THIS SUBDIVISION WOULD PRECLUDE ITS ISSUANCE IF IT
WERE TO BE APPLIED FOR ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
  4. UPON THE REVOCATION OF A LICENSE PURSUANT TO PARAGRAPH B OF  SUBDI-
VISION  THREE OF THIS SECTION, THE STATE RACING AND WAGERING BOARD SHALL
ISSUE A LICENSE TO A PROVISIONAL OPERATOR TO OPERATE SUCH RACE  MEETINGS
OR OTHERWISE, AS THE CASE MAY BE, FOR A PERIOD NOT IN EXCESS OF ONE YEAR
PENDING  THE  APPROVAL  OF  A SUCCESSOR LICENSEE. A PROVISIONAL OPERATOR
SHALL RECEIVE NO COMPENSATION OR OTHER REVENUE FROM SUCH OPERATION OTHER
THAN A MANAGEMENT FEE, THE AMOUNT OF WHICH OR  MANNER  OF  FIXING  WHICH
SHALL BE DETERMINED BY THE BOARD.
  5.  ANY INFORMATION OBTAINED BY THE STATE RACING AND WAGERING BOARD IN
THE ENFORCEMENT OF THIS SECTION PERTAINING TO A FELONY CONVICTION  SHALL
BE  FORTHWITH  TRANSMITTED TO THE DIVISION OF THE LOTTERY IN FURTHERANCE
OF SUCH DIVISION'S DUTIES UNDER SUBDIVISION E OF SECTION SIXTEEN HUNDRED
SEVENTEEN-A OF THE TAX LAW.
  6. THE STATE RACING AND WAGERING BOARD SHALL APPROVE NO STOCK TRANSFER
SUBJECT TO THE PROVISIONS OF SECTION TWO HUNDRED FOUR-A OR THREE HUNDRED
THREE OF THIS CHAPTER TO ANY PERSON WHO  WOULD  BE  INELIGIBLE  FOR  THE
ISSUANCE  OF  A  LICENSE PURSUANT TO PARAGRAPH A OF SUBDIVISION THREE OF
THIS SECTION AND SHALL ACCORDINGLY REQUIRE DIVESTMENT THEREOF.
  S 2. The racing, pari-mutuel wagering and breeding law is  amended  by
adding a new section 204-a to read as follows:
  S  204-A.  FILING OF INFORMATION CONCERNING STOCK TRANSFERS; NECESSITY
FOR STATE RACING AND WAGERING BOARD'S APPROVAL. 1. WHENEVER  A  TRANSFER
OF  TWENTY-FIVE PERCENT OR MORE OF THE STOCK OF ANY FRANCHISEE OR CORPO-
RATION WHICH IS LICENSED UNDER THIS ARTICLE, OR  OF  ANY  FRANCHISEE  OR
CORPORATION WHICH LEASES TO SUCH LICENSEE THE TRACK AT WHICH IT CONDUCTS
PARI-MUTUEL  THOROUGHBRED  RUNNING  RACES,  OR  WHICH  OWNS  TWENTY-FIVE
PERCENT OR MORE OF THE STOCK OF SUCH LICENSEE SHALL BE MADE, THERE SHALL
BE FILED SIMULTANEOUSLY WITH THE FRANCHISEE OR CORPORATION WHICH  ISSUED
SUCH STOCK THE FOLLOWING:
  A.  IN DUPLICATE, AN AFFIDAVIT EXECUTED BY THE TRANSFEREE STATING THAT
HE OR SHE IS TO BE THE SOLE BENEFICIAL OWNER THEREOF, AND WHETHER OR NOT
HE OR SHE (I) HAS BEEN CONVICTED OF A FELONY, AS DEFINED IN  SUBDIVISION
TWO  OF  SECTION  ONE  HUNDRED  TWELVE  OF  THIS CHAPTER, OR OTHER CRIME
INVOLVING MORAL TURPITUDE, (II) HAS BEEN ENGAGED IN BOOKMAKING OR  OTHER
FORM  OF  ILLEGAL  GAMBLING, (III) HAS BEEN FOUND GUILTY OF ANY FRAUD OR
MISREPRESENTATION IN CONNECTION WITH RACING OR BREEDING, (IV)  HAS  BEEN
FOUND  GUILTY  OF  ANY  VIOLATION OR ATTEMPT TO VIOLATE ANY LAW, RULE OR

S. 660                              3

REGULATION OF ANY RACING JURISDICTION FOR WHICH SUSPENSION  FROM  RACING
MIGHT  BE  IMPOSED  IN  SUCH JURISDICTION, OR (V) HAS VIOLATED ANY RULE,
REGULATION OR ORDER OF THE STATE  RACING  AND  WAGERING  BOARD;  IF  THE
TRANSFEREE  IS  NOT  OR  IS NOT TO BE THE SOLE BENEFICIAL OWNER THEREOF,
THEN THERE SHALL BE ANNEXED TO SAID AFFIDAVIT  OF  THE  TRANSFEREE,  AND
EXPRESSLY  STATED  IN SUCH AFFIDAVIT TO BE DEEMED A PART THEREOF, A TRUE
AND COMPLETE COPY OR IF ORAL, A COMPLETE STATEMENT OF ALL THE TERMS,  OF
THE  AGREEMENT  OR UNDERSTANDING PURSUANT TO WHICH THE STOCK IS TO BE SO
HELD BY THE TRANSFEREE, INCLUDING A DETAILED STATEMENT OF  THE  INTEREST
THEREIN  OF  EACH PERSON WHO IS TO HAVE ANY INTEREST THEREIN; AND AT THE
SAME TIME.
  B. IN DUPLICATE, AN AFFIDAVIT EXECUTED BY EACH  PERSON  FOR  WHOM  THE
SAID  STOCK  OR  ANY  INTEREST THEREIN IS TO BE HELD BY SAID TRANSFEREE,
SETTING FORTH WHETHER OR NOT THE AFFIANT (I) HAS  BEEN  CONVICTED  OF  A
FELONY,  AS  DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED TWELVE OF
THIS CHAPTER, OR OTHER CRIME INVOLVING MORAL TURPITUDE, (II) HAS ENGAGED
IN BOOKMAKING OR OTHER FORM OF ILLEGAL GAMBLING, (III)  HAS  BEEN  FOUND
GUILTY  OF  ANY  FRAUD OR MISREPRESENTATION IN CONNECTION WITH RACING OR
BREEDING, (IV) HAS BEEN GUILTY OF ANY VIOLATION OR  ATTEMPT  TO  VIOLATE
ANY LAW, RULE OR REGULATION OF ANY RACING JURISDICTION FOR WHICH SUSPEN-
SION  FROM  RACING  MIGHT  BE  IMPOSED  IN SUCH JURISDICTION, OR (V) HAS
VIOLATED ANY RULE, REGULATION OR ORDER OF THE STATE RACING AND  WAGERING
BOARD; TO EACH OF WHICH AFFIDAVITS SHALL BE ANNEXED, AND EXPRESSLY STAT-
ED  IN  SUCH  AFFIDAVIT TO BE DEEMED A PART THEREOF, A TRUE AND COMPLETE
COPY OR IF ORAL, A COMPLETE STATEMENT OF ALL THE TERMS, OF THE AGREEMENT
OR UNDERSTANDING PURSUANT TO WHICH THE STOCK IS TO BE  SO  HELD  BY  THE
TRANSFEREE,  INCLUDING  A  DETAILED STATEMENT OF THE INTEREST THEREIN OF
EACH PERSON WHO IS TO HAVE ANY INTEREST THEREIN.
  C. SAID FRANCHISEE OR CORPORATION SHALL FORTHWITH FILE WITH THE  STATE
RACING AND WAGERING BOARD ONE OF EACH OF SAID DUPLICATE AFFIDAVITS.
  2. IF, AFTER THE FILING OF ANY AFFIDAVIT REQUIRED TO BE FILED PURSUANT
TO SUBDIVISION ONE OF THIS SECTION, THERE BE ANY CHANGE IN THE STATUS OF
ANY SUCH AFFIANT WITH RESPECT TO ANY OF THE MATTERS SET FORTH IN SUBPAR-
AGRAPH  (I),  (II), (III), (IV) OR (V) OF PARAGRAPH A OF SUBDIVISION ONE
OF THIS SECTION OF THE AFFIDAVIT THERETOFORE FILED BY HIM OR  HER,  SUCH
AFFIANT  SHALL  FORTHWITH  FILE  WITH THE FRANCHISEE OR CORPORATION WITH
WHICH HIS OR HER AFFIDAVIT WAS SO FILED A NEW AFFIDAVIT, EXECUTED BY HIM
OR HER IN DUPLICATE, SETTING FORTH SUCH CHANGE OF STATUS, AND THE  FRAN-
CHISEE  OR  CORPORATION SHALL FORTHWITH FILE ONE OF SAID AFFIDAVITS WITH
THE STATE RACING AND WAGERING BOARD.
  3. WHENEVER ANY CHANGE SHALL BE MADE IN THE AMOUNT, NATURE  OR  OTHER-
WISE  OF THE INTEREST OF ANY PERSON HAVING A TWENTY-FIVE PERCENT OR MORE
INTEREST IN THE ISSUED STOCK OF ANY SUCH FRANCHISEE OR  CORPORATION,  OR
ANY  NEW  INTEREST SHALL BE CREATED THEREIN, WITHOUT A TRANSFER THEREOF,
THE RECORD OWNER OF SUCH STOCK AND EACH PERSON  WHOSE  INTEREST  THEREIN
HAS BEEN SO ATTEMPTED TO BE CHANGED OR CREATED SHALL FILE WITH THE FRAN-
CHISEE  OR CORPORATION WHICH ISSUED SUCH STOCK, IN DUPLICATE, AFFIDAVITS
AS PROVIDED BY PARAGRAPHS A AND B OF SUBDIVISION ONE  OF  THIS  SECTION,
EXCEPT  THAT SUCH AFFIDAVITS NEED NOT INCLUDE THE MATTERS REFERRED TO IN
SUBPARAGRAPHS (I), (II), (III), (IV) AND (V) OF PARAGRAPH A OF  SUBDIVI-
SION  ONE  OF THIS SECTION, UNLESS THEN REQUIRED PURSUANT TO SUBDIVISION
TWO OF THIS SECTION AND ONE COPY THEREOF SHALL FORTHWITH BE FILED BY THE
FRANCHISEE OR CORPORATION WITH THE STATE RACING AND WAGERING BOARD.
  4. IF THE STATE RACING AND WAGERING BOARD DETERMINES THAT IT IS INCON-
SISTENT WITH THE PUBLIC INTEREST, CONVENIENCE OR NECESSITY, OR WITH  THE
BEST  INTERESTS  OF  RACING  GENERALLY, THAT ANY PERSON CONTINUE TO BE A

S. 660                              4

MAJOR STOCKHOLDER, AS DEFINED IN SUBDIVISION TWO OF SECTION ONE  HUNDRED
TWELVE  OF THIS CHAPTER, OF RECORD OR THE BENEFICIAL OWNER OF ANY INTER-
EST IN STOCK STANDING IN THE NAME OF ANOTHER IN ANY FRANCHISEE OR CORPO-
RATION LICENSED UNDER THIS ARTICLE, OR WHICH OWNS TWENTY-FIVE PERCENT OR
MORE  OF THE STOCK OF SUCH LICENSEE, THE STATE RACING AND WAGERING BOARD
SHALL HAVE FULL POWER AND AUTHORITY TO ORDER OR DIRECT EACH SUCH  STOCK-
HOLDER OR BENEFICIAL OWNER IRRESPECTIVE OF THE TIME WHEN SUCH STOCKHOLD-
ER  OR BENEFICIAL OWNER ACQUIRED HIS OR HER STOCK OR INTEREST THEREIN TO
DISPOSE OF SUCH STOCK OR INTEREST WITHIN A PERIOD OF TIME TO  BE  SPECI-
FIED  BY  THE  STATE  RACING  AND WAGERING BOARD, WHICH PERIOD THE BOARD
SHALL HAVE FULL POWER AND AUTHORITY TO EXTEND FROM TIME TO TIME.
  5. IF THE STATE RACING AND WAGERING BOARD  SHALL  MAKE  ANY  ORDER  OR
DIRECTION  AS  PROVIDED  IN SUBDIVISION FOUR OF THIS SECTION, THE PERSON
AGGRIEVED THEREBY SHALL BE GIVEN NOTICE OF THE TIME AND PLACE OF A HEAR-
ING BEFORE THE BOARD AT WHICH THE BOARD WILL HEAR SUCH PERSON IN  REFER-
ENCE THERETO. THE ACTION OF THE BOARD IN MAKING ANY SUCH ORDER OR DIREC-
TION  SHALL  BE  REVIEWABLE  IN  THE  COURTS OF THIS STATE IN THE MANNER
PROVIDED BY, AND SUBJECT TO THE PROVISIONS OF ARTICLE  SEVENTY-EIGHT  OF
THE CIVIL PRACTICE LAW AND RULES.
  6.  UPON  APPLICATION  OF  THE  STATE  RACING  AND WAGERING BOARD, THE
SUPREME COURT SHALL HAVE JURISDICTION TO ISSUE FINAL ORDERS,  ON  NOTICE
AND  AFTER  HEARING, COMMANDING ANY PERSON TO COMPLY WITH THE PROVISIONS
OF THE ORDERS OR DIRECTIONS ISSUED BY THE BOARD UNDER  SUBDIVISION  FOUR
OF THIS SECTION.
  7.  IN  CASE OF CONFLICT BETWEEN THIS SECTION AND ARTICLE EIGHT OF THE
UNIFORM COMMERCIAL CODE, THE PROVISIONS OF THIS SECTION SHALL CONTROL.
  S 3. Section 303 of the racing, pari-mutuel wagering and breeding  law
is amended to read as follows:
  S 303. Filing of information concerning stock transfers; necessity for
board's  approval. 1. Whenever a transfer of stock of any association or
corporation which is licensed under this article, or of any  association
or  corporation  which  leases  to  such  licensee the track at which it
conducts pari-mutuel harness races, or which owns twenty-five percent or
more of the stock of such licensee shall be made, there shall  be  filed
simultaneously  with  the  association  or corporation which issued such
stock the following:
  a. In duplicate, an affidavit executed by the transferee stating  that
he OR SHE is to be the sole beneficial owner thereof, and whether or not
he  OR SHE (i) has been convicted of a FELONY, AS DEFINED IN SUBDIVISION
TWO OF SECTION ONE HUNDRED  TWELVE  OF  THIS  CHAPTER,  OR  OTHER  crime
involving  moral turpitude, (ii) has been engaged in bookmaking or other
forms of illegal gambling, (iii) has been found guilty of any  fraud  or
misrepresentation  in  connection with racing or breeding, (iv) has been
guilty of any violation or attempt to violate any  law,  rule  or  regu-
lation of any racing jurisdiction for which suspension from racing might
be  imposed  in  such  jurisdiction, or (v) has violated any rule, regu-
lation or order of the board; if the transferee is not, or is not to be,
the sole beneficial owner thereof, then there shall be annexed  to  said
affidavit  of  the transferee, and expressly stated in such affidavit to
be deemed a part thereof, a true  and  complete  copy,  or  if  oral,  a
complete  statement  of all the terms, of the agreement or understanding
pursuant to which the stock is to be so held by the transferee,  includ-
ing  a  detailed statement of the interest therein of each person who is
to have any interest therein; and at the same time.
  b. In duplicate, an affidavit executed by each  person  for  whom  the
said  stock,  or any interest therein, is to be held by said transferee,

S. 660                              5

setting forth whether or not the affiant (i) has  been  convicted  of  a
FELONY,  AS  DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED TWELVE OF
THIS CHAPTER, OR OTHER crime involving moral turpitude, (ii) has engaged
in  bookmaking  or other forms of illegal gambling, (iii) has been found
guilty of any fraud or misrepresentation in connection  with  racing  or
breeding,  (iv)  has  been guilty of any violation or attempt to violate
any law, rule or regulation of any racing jurisdiction for which suspen-
sion from racing might be imposed  in  such  jurisdiction,  or  (v)  has
violated  any  rule,  regulation or order of the board; to each of which
affidavits shall be annexed, and expressly stated in such  affidavit  to
be  deemed  a  part  thereof,  a  true  and complete copy, or if oral, a
complete statement of all the terms, of the agreement  or  understanding
pursuant  to which the stock is to be so held by the transferee, includ-
ing a detailed statement of the interest therein of each person  who  is
to have any interest therein.
  c. Said association or corporation shall forthwith file with the board
one of each of said duplicate affidavits.
  2.  If,  after  the filing of any affidavit hereinabove required to be
filed, there be any change in  the  status  of  any  such  affiant  with
respect  to  any  of  the  matters  set forth in subparagraph (i), (ii),
(iii), (iv) or (v) of paragraph a of subdivision one of this section  of
the affidavit theretofore filed by him OR HER, such affiant shall forth-
with  file  with  the  association  or corporation with which his OR HER
affidavit was so filed a new affidavit, executed by him OR HER in dupli-
cate, setting forth such change of status, and the association or corpo-
ration shall forthwith file one of said affidavits with the board.
  3. Whenever any change shall be made in the amount, nature, or  other-
wise,  of  the interest of any person having an interest in stock of any
such association or corporation, or any new interest  shall  be  created
therein,  without a transfer thereof as hereinabove provided, the record
owner of such stock, and each person whose interest therein has been  so
attempted  to  be changed or created, shall file with the association or
corporation  which  issued  such  stock,  in  duplicate,  affidavits  as
provided  by  paragraphs  a  and  b  of subdivision one of this section,
except that such affidavits need not include the matters referred to  in
subparagraphs  (i), (ii), (iii), (iv) and (v) of paragraph a of subdivi-
sion one of this section, unless then required pursuant  to  subdivision
two  of  this  section, and one copy thereof shall forthwith be filed by
the association or corporation with the board.
  4. [The board may, upon application to it for good cause shown,  waive
compliance with subdivisions one, two and three of this section.
  5.]  If  the  board determines that it is inconsistent with the public
interest, convenience or necessity, or with the best interests of racing
generally, that any person continue to be a stockholder  of  record,  or
the  beneficial  owner  of any interest in stock standing in the name of
another, in any association or corporation licensed under this  article,
or  of  any association or corporation which leases to such licensee the
track at which it conducts pari-mutuel  harness  racing  or  which  owns
twenty-five  percent  or  more  of the stock of such licensee, the board
shall have full power and authority to order or direct each such  stock-
holder or beneficial owner irrespective of the time when such stockhold-
er  or beneficial owner acquired his OR HER stock or interest therein to
dispose of such stock or interest within a period of time to  be  speci-
fied  by  the  board,  which  period the board shall have full power and
authority to extend from time to time.

S. 660                              6

  [6.] 5. If the board shall make any order or direction as provided  in
subdivision  [five]  FOUR  of this section, the person aggrieved thereby
shall be given notice of the time and place  of  a  hearing  before  the
board at which the board will hear such person in reference thereto. The
action  of  the  board  in  making  any such order or direction shall be
reviewable in the courts of this state in the manner  provided  by,  and
subject to the provisions of article seventy-eight of the civil practice
law and rules.
  [7.] 6. Upon application of the board, the supreme court of this state
shall have jurisdiction to issue final orders, on notice and after hear-
ing,  commanding  any person to comply with the provisions of the orders
or directions issued by the board under subdivision [five] FOUR of  this
section.
  [8.]  7. In case of conflict between this section and article eight of
the uniform commercial code, this section shall control.
  S 4. Section 1617-a of the tax law is amended by adding a new subdivi-
sion e to read as follows:
  E. (1) NO LICENSE UNDER THIS SECTION SHALL BE ISSUED TO ANY PERSON  OR
OTHER ENTITY WHICH HAS BEEN CONVICTED OF A FELONY.
  (2)  FOR THE PURPOSES OF THIS SECTION, THE TERM "CONVICTION OF A FELO-
NY" HAS THE MEANING PRESCRIBED THEREFOR IN SUBDIVISION  TWO  OF  SECTION
ONE HUNDRED TWELVE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
  (3)  THE  DIVISION SHALL REVOKE ANY SUCH LICENSE IN EFFECT ON OR AFTER
THE EFFECTIVE DATE OF THIS SUBDIVISION IF THE  PROVISIONS  OF  PARAGRAPH
ONE  OF  THIS  SUBDIVISION  WOULD PRECLUDE ITS ISSUANCE IF IT WERE TO BE
APPLIED FOR ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION.
  S 5. This act shall take effect on the first of January next  succeed-
ing  the date on which it shall have become a law; provided that any and
all rules and regulations and any other measures necessary to  implement
any  provision  of this act on its effective date may be promulgated and
taken, respectively, on or before the effective date of such  provision;
and  provided, however, that the amendments to section 1617-a of the tax
law, made by section four of this act, shall not affect  the  repeal  of
such section and shall be deemed repealed therewith.

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Senate Bill S660

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Sponsored By

William Larkin