Senate Bill S3590A

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

                                  3590

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 28, 2011
                               ___________

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

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

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

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law is REPEALED and a new article 10 is added to read as follows: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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07561-01-1

              

S. 3590                             2

  S 1000. STATEMENT OF PURPOSE. THE SPORT OF  HORSE  RACING  IS  LARGELY
DEPENDENT  ON  THE  SIMULCASTING  OF RACES BETWEEN HOST TRACKS AND OTHER
RACETRACKS, OFF-TRACK BETTING SITES, AND  PRIVATE  HOMES.  IN  ORDER  TO
SUPPORT THE SPORT OF HORSE RACING, SIMULCASTING OF HORSE RACES SHOULD BE
ENCOURAGED  IN  ORDER  TO  STRENGTHEN  THE ECONOMIC CONTRIBUTIONS OF THE
RACING INDUSTRY TO NEW YORK STATE. SIMULCASTING MAY  ONLY  BE  CONDUCTED
PURSUANT  TO THE STRICT CONTROLS OF THIS ARTICLE AND THE RULES AND REGU-
LATIONS OF THE NEW YORK STATE RACING AND WAGERING BOARD.
  S 1001. DEFINITIONS. AS USED IN THIS ARTICLE:  1.  "ACCOUNT  WAGERING"
MEANS  A  FORM  OF PARI-MUTUEL WAGERING IN WHICH A PERSON ESTABLISHES AN
ACCOUNT WITH A RACING ASSOCIATION, AN OFF-TRACK BETTING CORPORATION OR A
STATE RACING AND WAGERING BOARD APPROVED  MULTI-JURISDICTIONAL  WAGERING
HUB,  AND SUBSEQUENTLY ISSUES WAGERING INSTRUCTIONS CONCERNING THE FUNDS
IN THIS ACCOUNT, THEREBY AUTHORIZING THE ENTITY HOLDING THE  ACCOUNT  TO
PLACE WAGERS ON THE ACCOUNT OWNER'S BEHALF. AN ACCOUNT WAGER MAY BE MADE
ONLY BY THE ENTITY HOLDING THE ACCOUNT PURSUANT TO WAGERING INSTRUCTIONS
ISSUED  BY  THE  OWNER OF THE FUNDS COMMUNICATED BY TELEPHONE CALL OR BY
COMMUNICATION THROUGH OTHER ELECTRONIC MEANS.
  2. "ACCOUNT WAGERING LICENSEE" MEANS  RACING  ASSOCIATIONS,  OFF-TRACK
BETTING  CORPORATIONS,  AND  NEW  YORK  STATE  RACING AND WAGERING BOARD
APPROVED MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS WHICH HAVE BEEN
AUTHORIZED BY THE BOARD TO OFFER ACCOUNT WAGERING.
  3. "DORMANT ACCOUNT" MEANS AN  ACCOUNT  WAGERING  ACCOUNT  HELD  BY  A
RACING  ASSOCIATION  OR  AN OFF-TRACK BETTING CORPORATION WHICH HAS BEEN
INACTIVE FOR THREE YEARS.
  4. "GUEST TRACK" MEANS A RACING ASSOCIATION  WHERE  SIMULCASTS  ORIGI-
NATED FROM ANOTHER RACETRACK OR RACING ASSOCIATION ARE DISPLAYED.
  5. "HOST TRACK" MEANS THE RACETRACK OR THE RACING ASSOCIATION AT WHICH
THE RACE WHICH IS THE SUBJECT OF SIMULCAST WAGERING IS RUN.
  6. "MARKET ORIGIN FEE ACCOUNT" SHALL MEAN AN ACCOUNT MAINTAINED BY THE
STATE  RACING  AND  WAGERING  BOARD WHICH SHALL BE AUTHORIZED TO RECEIVE
PAYMENTS FROM OFF-TRACK BETTING  CORPORATIONS  AND  MULTI-JURISDICTIONAL
ACCOUNT  WAGERING  PROVIDERS  ON BEHALF OF RACING ASSOCIATIONS, HORSEMEN
AND BREEDERS IN NEW YORK STATE. OF THE MARKET  ORIGIN  FEE,  EIGHTY-NINE
AND  ONE-HALF  PERCENT SHALL BE PAID TO RACING ASSOCIATIONS. PAYMENTS TO
INDIVIDUAL RACING ASSOCIATIONS SHALL BE  DETERMINED  BASED  ON  A  RATIO
WHERE THE NUMERATOR IS THE RACING ASSOCIATION'S TOTAL IN-STATE HANDLE ON
ITS  LIVE RACES BOTH AT RACING ASSOCIATIONS AND OFF-TRACK BETTING CORPO-
RATIONS DURING THE PREVIOUS CALENDAR YEAR, AND THE  DENOMINATOR  IS  THE
TOTAL IN-STATE HANDLE ON LIVE RACES CONDUCTED BY ALL RACING ASSOCIATIONS
IN  NEW  YORK  STATE AT RACING ASSOCIATIONS AND OFF-TRACK BETTING CORPO-
RATIONS DURING THE PREVIOUS CALENDAR YEAR,  EXCEPT  THAT  NO  LESS  THAN
TWENTY  PERCENT OF THIS FEE SHALL BE APPORTIONED TO HARNESS RACING ASSO-
CIATIONS, AND NO MORE THAN SEVENTY PERCENT OF THIS FEE SHALL  BE  APPOR-
TIONED TO AN ENFRANCHISED ASSOCIATION. OF THE REMAINING TEN AND ONE-HALF
PERCENT  OF  THE  MARKET  ORIGIN  FEE, 32.4 PERCENT SHALL BE PAID TO THE
AGRICULTURE AND NEW YORK STATE HORSE BREEDING AND DEVELOPMENT FUND,  AND
67.6  PERCENT  SHALL BE PAID TO THE NEW YORK STATE THOROUGHBRED BREEDING
AND DEVELOPMENT FUND. SUCH PAYMENTS SHALL BE MADE AT  LEAST  ONCE  EVERY
THIRTY DAYS IN ACCORDANCE WITH A SCHEDULE TO BE ESTABLISHED BY THE STATE
RACING AND WAGERING BOARD.
  7.  "MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER" MEANS A BUSINESS
ENTITY DOMICILED OUTSIDE NEW YORK STATE WHICH IS LICENSED IN  MORE  THAN
ONE  JURISDICTION  AND  OFFERS  PARI-MUTUEL ACCOUNT WAGERING ON RACES IT
SIMULCASTS AND OTHER RACES IT OFFERS IN ITS WAGERING MENU.

S. 3590                             3

  8. "RACETRACK" MEANS RACING ASSOCIATIONS AND FACILITIES EITHER  INSIDE
OR  OUTSIDE  NEW  YORK  STATE OFFERING WAGERING ON LIVE HORSE RACING FOR
WHICH SUCH FACILITIES ARE LICENSED IN THEIR STATE OR APPROPRIATE  JURIS-
DICTION.
  9.  "SIMULCAST" MEANS THE LIVE TRANSMISSION OF VIDEO AND AUDIO SIGNALS
CONVEYING A HORSE RACE HELD EITHER INSIDE OR OUTSIDE THIS STATE.
  10. "SIMULCAST FACILITY" MEANS THOSE RACING ASSOCIATIONS AND OFF-TRACK
BETTING CORPORATIONS WITHIN THE STATE THAT ARE  AUTHORIZED  PURSUANT  TO
THE  PROVISIONS  OF  THIS  ARTICLE TO DISPLAY SIMULCASTS FOR PARI-MUTUEL
WAGERING PURPOSES.
  S 1002. GENERAL JURISDICTION. THE  STATE  RACING  AND  WAGERING  BOARD
SHALL  HAVE GENERAL JURISDICTION OVER THE SIMULCASTING OF HORSE RACES TO
AND FROM LOCATIONS WITHIN NEW YORK STATE,  AND  THE  BOARD  SHALL  ISSUE
APPROPRIATE  RULES  AND REGULATIONS IN ACCORDANCE WITH THE PROVISIONS OF
THIS ARTICLE.
  S 1003. SIMULCASTING AUTHORIZED. ALL HOST TRACKS IN NEW YORK STATE, AS
A CONDITION OF THEIR LICENSURE TO CONDUCT  PARI-MUTUEL  WAGERING,  SHALL
GRANT A COMPULSORY LICENSE TO OFF-TRACK BETTING CORPORATIONS PURSUANT TO
WHICH SIMULCASTS OF THEIR RACES SHALL BE MADE AVAILABLE TO ALL OFF-TRACK
BETTING CORPORATIONS EXCEPT THAT:
  1.  A  HOST  TRACK  LOCATED IN A COUNTY OR A CITY WITH A POPULATION IN
EXCESS OF ONE MILLION PEOPLE MAY DENY SENDING ITS SIMULCAST SIGNAL TO AN
OFF-TRACK BETTING BRANCH THAT IS LOCATED LESS THAN FIVE MILES  FROM  THE
HOST TRACK; AND
  2.  A  HOST  TRACK  IN ANY OTHER COUNTY MAY DENY SENDING ITS SIMULCAST
SIGNAL TO AN OFF-TRACK BETTING BRANCH THAT IS LOCATED LESS THAN  FIFTEEN
MILES  FROM  THE  HOST TRACK. NOTHING SHALL PREVENT AN OFF-TRACK BETTING
BRANCH OFFICE THAT IS DENIED THE SIMULCAST SIGNAL FROM  THE  HOST  TRACK
FROM TAKING WAGERS ON RACES RUN BY THE HOST TRACK. WHERE A BRANCH OFFICE
TAKES  WAGERS  ON  RACES  BUT  IS  DENIED A SIMULCAST SIGNAL BY THE HOST
TRACK, THE DISTRIBUTION OF THE TAKEOUT SHALL BE GOVERNED BY SECTION  ONE
THOUSAND SEVEN OF THIS ARTICLE.
  S  1004.  SIMULCAST  LICENSING.  1.  ALL SIMULCAST FACILITIES SHALL BE
LICENSED BY THE STATE RACING AND WAGERING  BOARD.  THE  BOARD  MAY  ONLY
LICENSE THOSE SIMULCAST FACILITIES WHERE THE APPROPRIATE LOCAL OFFICIALS
HAVE  CONFIRMED  THAT  THE FACILITY IS IN COMPLIANCE WITH ALL LOCAL LAWS
AND ZONING REQUIREMENTS.
  2. THE BOARD SHALL APPROVE THE SIMULCASTING  FACILITY  LICENSE  IF  IT
DETERMINES  THAT  THE  FACILITY  POSSESSES  APPROPRIATE  TOTALIZATOR AND
ACCOUNTING CONTROLS WHICH WILL SAFEGUARD THE  TRANSMISSION  OF  WAGERING
DATA, WILL EFFECTUATE COMMON POOLING, AND WILL KEEP A SYSTEM OF ACCOUNTS
WHICH  WILL  MAINTAIN  A  SEPARATE  RECORD  OF REVENUES COLLECTED BY THE
FACILITY, THE DISTRIBUTION OF SUCH REVENUES, AND AN ACCOUNTING OF  COSTS
RELATIVE TO THE OPERATION OF THE FACILITY.
  3.  SIMULCAST  FACILITIES  MAY  PROVIDE  FOOD  AND BEVERAGE SERVICE IN
COMPLIANCE WITH APPLICABLE STATE AND LOCAL LAWS.
  4. NO SIMULCAST FACILITY THAT COLLECTS A SURCHARGE PURSUANT TO SECTION
FIVE HUNDRED THIRTY-TWO OF THIS CHAPTER SHALL CHARGE A PATRON FOR ADMIS-
SION.
  5. OFF-TRACK  BETTING  CORPORATIONS  MAY  PROVIDE  FOR  SIMULCASTS  TO
SUPPLEMENTARY  PRIVATE  SIMULCAST FACILITIES AUTHORIZED TO ACCEPT WAGERS
ON THE QUICK DRAW LOTTERY GAME PURSUANT TO PARAGRAPH ONE OF  SUBDIVISION
(A)  OF  SECTION SIXTEEN HUNDRED TWELVE OF THE TAX LAW. ALL SUCH SUPPLE-
MENTARY PRIVATE SIMULCAST FACILITIES SHALL BE SUBJECT  TO  A  BACKGROUND
CHECK AND MUST BE LICENSED BY THE BOARD. THE BOARD MAY DENY A LICENSE TO
SUSPEND,  OR  REVOKE  A  LICENSE TO A SUPPLEMENTARY PRIVATE SIMULCASTING

S. 3590                             4

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

S. 3590                             5

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

S. 3590                             6

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

S. 3590                             7

THIS CHAPTER (I.E. SURCHARGE) WILL BE APPLICABLE TO ITS ACCOUNT HOLDERS.
THE POLICIES ADOPTED BY THE OFF-TRACK BETTING CORPORATION IN  REGARD  TO
SECTION  FIVE  HUNDRED  THIRTY-TWO  OF THIS CHAPTER SHALL BE SUPPLIED IN
WRITING TO EVERY ACCOUNT HOLDER.
  S  1012.  LICENSED  ACCOUNT  WAGERING  AT MULTI-JURISDICTIONAL ACCOUNT
WAGERING PROVIDERS. A MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER MAY
ONLY BE LICENSED UNDER THE FOLLOWING CONDITIONS:
  1. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER IS  LICENSED  IN
THE JURISDICTION IN WHICH IT OPERATES.
  2. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER POSSESSES APPRO-
PRIATE  TOTALIZATOR  AND  ACCOUNTING  CONTROLS  WHICH WILL SAFEGUARD THE
TRANSMISSION OF WAGERING DATA AND WILL KEEP A SYSTEM OF  ACCOUNTS  WHICH
WILL  MAINTAIN  A  SEPARATE RECORD OF REVENUES COLLECTED BY THE WAGERING
PROVIDER, THE DISTRIBUTION OF SUCH REVENUES, AND AN ACCOUNTING OF  COSTS
RELATIVE  TO  THE OPERATION OF THE WAGERING PROVIDER. WAGERS PLACED WITH
THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL RESULT  IN  THE
COMBINATION  OF  ALL  WAGERS  PLACED  AT THE HOST TRACK SO AS TO PRODUCE
COMMON PARI-MUTUEL BETTING POOLS FOR THE CALCULATION  OF  ODDS  AND  THE
DETERMINATION  OF  PAYOUTS  FROM  SUCH  POOL,  PURSUANT  TO SECTION NINE
HUNDRED FIVE OF THIS CHAPTER.
  3. THE  CHARACTER  AND  THE  BACKGROUND  OF  THE  MULTI-JURISDICTIONAL
ACCOUNT  WAGERING PROVIDER IS IN THE PUBLIC INTEREST AND THE BEST INTER-
EST OF HONEST HORSE RACING.
  4. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING  PROVIDER  SHALL  UTILIZE
THE  SERVICES  OF  AN  INDEPENDENT  THIRD  PARTY TO PERFORM IDENTITY AND
VERIFICATION SERVICES WITH RESPECT TO NEW YORKERS ESTABLISHING  WAGERING
ACCOUNTS.
  5. THE BOARD SHALL BE ALLOWED ACCESS TO THE PREMISES OF THE MULTI-JUR-
ISDICTIONAL  ACCOUNT  WAGERING PROVIDER TO VISIT, INVESTIGATE, AND PLACE
EXPERT ACCOUNTANTS AND  OTHER  PERSONS  IT  DESIRES  NECESSARY  FOR  THE
PURPOSE  OF  INSURING  COMPLIANCE  WITH THE RULES AND REGULATIONS OF THE
BOARD.
  6. A MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL PAY  ON  THE
WAGERS  OF  NEW  YORK  STATE  RESIDENTS:  (A)  A PARI-MUTUEL TAX OF FOUR
PERCENT OF TAKEOUT; (B) A FEE OF THIRTY-FOUR PERCENT OF THE FIRST  FIFTY
MILLION  DOLLARS  IN TAKEOUT AND FORTY-ONE PERCENT OF TAKEOUT AMOUNTS IN
EXCESS OF FIFTY MILLION DOLLARS TO THE MARKET ORIGIN  FEE  ACCOUNT;  AND
(C)  A  FEE OF FIVE PERCENT OF TAKEOUT TO THE COUNTY OF RESIDENCE OF THE
NEW YORK STATE ACCOUNT HOLDER. IF THE COUNTY OF RESIDENCE  IS  WITHIN  A
CITY WITH A POPULATION IN EXCESS OF ONE MILLION PEOPLE, THE FEE SHALL BE
PAID TO THE STATE. IN COUNTIES WHICH ARE MEMBERS OF AN OFF-TRACK BETTING
CORPORATION,  THE  PAYMENT SHALL BE MADE TO THE OFF-TRACK BETTING CORPO-
RATION. THE MULTI-JURISDICTIONAL ACCOUNT HOLDER  SHALL  BE  ENTITLED  TO
DEDUCT FROM ITS MARKET ORIGIN FEE DISTRIBUTIONS MADE ON THE WAGER OF THE
NEW  YORK  STATE  RESIDENT  TO  RACETRACKS OTHER THAN HOST TRACKS. IN NO
EVENT SHALL THE DEDUCTION  EXCEED  TWENTY-FIVE  PERCENT  OF  THE  MARKET
ORIGIN FEE.
  S 2. Paragraphs a and b of subdivision 2 of section 108 of the racing,
pari-mutuel  wagering  and  breeding law, as added by chapter 434 of the
laws of 2002, are amended to read as follows:
  a. The board shall promulgate rules and regulations pursuant to  which
people  may voluntarily exclude themselves from entering the premises of
an association or corporation licensed  or  enfranchised  under  article
two, three, or four of this chapter or a facility licensed under section
one thousand [eight or one thousand nine] FOUR of this chapter.

S. 3590                             8

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

S. 3590                             9

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

S. 3590                            10

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

S. 3590                            11

  S 105. Supplementary regulatory powers of the board.   Notwithstanding
any inconsistent provision of law, the board through its rules and regu-
lations  or  in allotting dates for racing or in licensing race meetings
at which pari-mutuel betting is permitted shall  be  empowered  to:  (i)
permit  racing  at  which pari-mutuel betting is conducted on any or all
dates from the first day of January  through  the  thirty-first  day  of
December,  inclusive  of  Sundays but exclusive of December twenty-fifth
and Palm Sunday and Easter Sunday; and  (ii)  fix  minimum  and  maximum
charges for admission at any race meeting. NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT THE ACCEPTANCE OF WAGERS, INCLUDING THE DISPLAY
OF  SIMULCAST  SIGNALS,  ON  OUT-OF-STATE  OR  OUT-OF-COUNTRY  RACES  BY
REGIONAL OFF-TRACK BETTING CORPORATIONS OR ANY OTHER  AUTHORIZED  ENTITY
ON  PALM SUNDAY TO THE EXTENT THAT SUCH ACCEPTANCE IS OTHERWISE CONSIST-
ENT WITH THIS CHAPTER.
  S 6. Section 503 of the racing, pari-mutuel wagering and breeding law,
subdivision 10 as amended, subdivision 12 as added and subdivision 13 as
renumbered by chapter 116 of the laws of 2001, is  amended  to  read  as
follows:
  S  503.  Powers  of  regional corporations. Subject to the general and
specific limitations [of sections two hundred twenty-two  through  seven
hundred  five]  of  this  chapter  and  the authority of the state board
pursuant to articles one and five-a of this  chapter,  each  corporation
shall have power:
  1. To sue and be sued;
  2. To have a seal and alter the same at pleasure;
  3.  To acquire, hold, lease, rent and dispose of personal property for
its corporate purposes;
  4. To acquire, in the name of the corporation, by purchase,  condemna-
tion,  gift,  grant  or  devise  or otherwise, and to use, real property
which  is  necessary  or  convenient  for  carrying  out  its  corporate
purposes; provided that the corporation shall not condemn any real prop-
erty  without  first  having  obtained  the consent of the chief elected
official in the jurisdiction in which such real property is located. All
real property acquired by  the  corporation  by  condemnation  shall  be
acquired  in  the  manner  provided  by law for the condemnation of real
property in the jurisdiction in which the real property is located;
  5. To make by-laws for the management and regulation of its affairs;
  6. To appoint officers, agents,  and  employees,  to  prescribe  their
qualifications, and to fix their compensation;
  7.  To  make contracts and leases, INCLUDING JOINT VENTURES WITH THIRD
PARTIES OR ENTITIES, and to execute all instruments necessary or conven-
ient to accomplish its corporate purposes;
  8. TO ENTER INTO, AMEND,  CANCEL  AND  TERMINATE  AGREEMENTS  FOR  THE
PERFORMANCE  WITH  AND  AMONG  OTHER  REGIONAL  OFF-TRACK BETTING CORPO-
RATIONS,  LICENSED  RACING  ASSOCIATIONS,  MULTI-JURISDICTIONAL  ACCOUNT
WAGERING PROVIDERS, AS DEFINED IN SECTION ONE THOUSAND ONE OF THIS CHAP-
TER,  THIRD PARTY JOINT VENTURERS OR OTHER ENTITIES, OF THEIR RESPECTIVE
FUNCTIONS, POWERS AND DUTIES ON A COOPERATIVE OR CONTRACT BASIS;
  9. ACTING THROUGH ITS BOARD OF DIRECTORS, TO NEGOTIATE  AND  IMPLEMENT
MERGERS,  ACQUISITIONS  OR  CONSOLIDATIONS  WITH OR AMONG OTHER REGIONAL
OFF-TRACK BETTING CORPORATIONS, THIRD PARTIES OR OTHER ENTITIES.
  [8.] 10. To construct such buildings, structures and facilities as may
be necessary;
  [9.] 11. To accept grants, loans and  contributions  from  the  United
States,  and  the  state  or  any agency or instrumentality of either of
them, or any participating county, or a city, or any  person,  including

S. 3590                            12

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

S. 3590                            13

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

S. 3590                            14

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

S. 3590                            15

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

S. 3590                            16

ACCEPT ACCOUNT WAGERS ON HORSE RACES FROM  BETTORS  LOCATED  WITHIN  THE
STATE BUT IS NOT APPROVED TO DO SO AND LICENSED AS A MULTI-JURISDICTION-
AL  ACCOUNT  WAGERING  PROVIDER,  OR  OTHER  AUTHORIZED ACCOUNT WAGERING
LICENSEE,  BY THE STATE RACING AND WAGERING BOARD IN ACCORDANCE WITH THE
PROVISIONS OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND  THE
AGGREGATE  VALUE OF ALL SUCH ACCOUNT WAGERS IS FIFTY THOUSAND DOLLARS OR
GREATER.
  CONDUCTING ACCOUNT WAGERING WITHOUT A LICENSE IN THE FIRST DEGREE IS A
CLASS C FELONY.
  S 14. This act shall take effect immediately.