senate Bill S7076

2013-2014 Legislative Session

Expands the reports a franchised thoroughbred racing corporation must make available to the franchise oversight board

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 19, 2014 referred to racing and wagering
delivered to assembly
passed senate
May 19, 2014 advanced to third reading
May 14, 2014 2nd report cal.
May 13, 2014 1st report cal.615
Apr 23, 2014 referred to racing, gaming and wagering

Votes

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S7076 - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Amd §212, RWB L

S7076 - Bill Texts

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Expands the reports a franchised thoroughbred racing corporation must make available to the franchise oversight board.

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BILL NUMBER:S7076

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to oversight of a franchised racing
corporation and to make technical amendments thereto

Purpose of the Bill:

This bill would strengthen the ability of the Franchise Oversight
Board (FOB) to review the records of the franchised corporation that
operates the State-owned horse racing tracks.

Summary of Provisions:

Section 1 of the bill would amend Racing, Pari-Mutual Wagering and
Breeding Law (Racing Law) § 212(8)(a)(xiii) to authorize the FOB to
require the franchised corporation, which is now The New York Racing
Association, Inc. (NYRA), to make available within 30 days of a
request of the FOB any reports of the independent business integrity
counsel. The bill further provides that with respect to such mandatory
disclosure to the FOB, the attorney-client privilege would not apply,
but that such privilege would continue to apply with respect to other
parties.

Section 1 of the bill would also amend subparagraphs (iii), (iv),
(vii), and (xvii) of Racing Law § 212(8)(a) to refer to the Gaming
Commission rather than the former Racing and Wagering Board and to
correct a typographical error and make other minor technical
amendments.

Existing Law:

Racing Law § 206(5) requires the franchised corporation to "retain an
independent business integrity counsel, who, among other things, will
act as an independent source to help ensure the integrity of the
franchised corporation, its officers and employees, and its
operations." Racing Law § 212(8)(a)(xiii) currently provides that the
FOB may "require the franchised corporation to make all records and
documents pertaining to its financial practices, and other documents
and records necessary to carry out its duties" available to the FOB
within 30 days of a request. Currently, however, NYRA has been
reluctant to provide reports of the independent business integrity
counsel to the FOB over concern that doing so would waive NYRA's
attorney-client privilege with respect to such reports.

Prior Legislative History:

This is a new proposal.

Statement in Support:

In order for the FOB to carry out its oversight responsibilities, this
bill would make explicit the FOB's entitlement to receive reports of
NYRA's independent business integrity counsel. The existence of the
attorney-client privilege between NYRA and its business integrity
counsel makes it problematic for NYRA to make reports of its business
integrity counsel available to the FOB. By providing that the


privilege does not apply to such reports in regard to the FOB, NYRA's
interest in protecting the privilege with respect to outside parties
would be preserved, while allowing the FOB to fulfill its oversight
function. The other provisions in the bill make technical amendments
to Racing Law § 212(8)(a) for the purpose of clarification.

Budget Implications:

There are no fiscal implications to the State from this bill.

Local Impact:

There is no impact on local governments from this bill.

Effective Date:

This bill would take effect immediately.

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

                                  7076

                            I N  S E N A T E

                             April 23, 2014
                               ___________

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

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

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

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13909-02-4

S. 7076                             2

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

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