S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7745--A
 
                             I N  S E N A T E
 
                             February 14, 2018
                                ___________
 
 Introduced  by Sens. BONACIC, MARCHIONE -- read twice and ordered print-
   ed, and when printed to be  committed  to  the  Committee  on  Racing,
   Gaming  and  Wagering  --  committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
   relation  to  funds  held  in  trust by a franchised corporation for a
   recognized horsemen's organization to be used as collateral to  secure
   workers' compensation insurance coverage
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The opening paragraph of subdivision 7 of section  221  of
 the racing, pari-mutuel wagering and breeding law, as amended by section
 2  of  part  SS of chapter 59 of the laws of 2017, is amended to read as
 follows:
   In order to pay the costs of the insurance required  by  this  section
 and  by  the workers' compensation law and to carry out its other powers
 and duties and to pay for any of its  liabilities  under  section  four-
 teen-a  of  the  workers'  compensation  law, the New York Jockey Injury
 Compensation Fund, Inc. shall ascertain the total funding necessary  and
 establish  the  sums  that  are  to  be  paid by all owners and trainers
 licensed or required to be licensed under section two hundred twenty  of
 this  article,  to obtain the total funding amount required annually. In
 order to provide that any sum required to be paid by an owner or trainer
 is equitable, the fund shall establish payment schedules  which  reflect
 such  factors  as  are  appropriate,  including  where  applicable,  the
 geographic location of the racing corporation  at  which  the  owner  or
 trainer  participates, the duration of such participation, the amount of
 any purse earnings, the number of horses involved, or such other factors
 as the fund shall determine to be fair, equitable and in the best inter-
 ests of racing. In no event shall the amount deducted  from  an  owner's
 share  of purses exceed two per centum; provided, however, for two thou-
 sand [seventeen] EIGHTEEN the New York Jockey Injury Compensation  Fund,
 Inc.  may  use  up  to  two million dollars from the account established
 pursuant to subdivision nine of section two hundred eight of this  arti-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14725-02-8

 S. 7745--A                          2
 
 cle  to pay the annual costs required by this section and the funds from
 such account shall not count  against  the  two  per  centum  of  purses
 deducted  from  an  owner's share of purses. The amount deducted from an
 owner's  share  of  purses  shall  not exceed one per centum after April
 first, two thousand twenty. In the  cases  of  multiple  ownerships  and
 limited  racing  appearances,  the  fund  shall equitably adjust the sum
 required.
   § 2. Paragraph (a) of subdivision 9 of  section  208  of  the  racing,
 pari-mutuel  wagering  and breeding law, as amended by section 2 of part
 PP of chapter 60 of the laws of 2016, is amended to read as follows:
   (a) The franchised corporation shall maintain a separate  account  for
 all  funds  held  on  deposit in trust by the corporation for individual
 horsemen's accounts. Purse funds shall be paid  by  the  corporation  as
 required to meet its purse payment obligations. Funds held in horsemen's
 accounts  shall only be released or applied as requested and directed by
 the individual horseman. For two thousand  [sixteen]  EIGHTEEN  the  New
 York  Jockey  Injury  Compensation  Fund, Inc. may use up to two million
 dollars from the account established pursuant to this subdivision to pay
 the annual costs required by section  two  hundred  twenty-one  of  this
 article.
   §  3.  Paragraph  (c)  of  subdivision 9 of section 208 of the racing,
 pari-mutuel wagering and breeding law is relettered  paragraph  (e)  and
 two new paragraphs (c) and (d) are added to read as follows:
   (C) THE FRANCHISED CORPORATION SHALL ESTABLISH AND MAINTAIN A SEPARATE
 ACCOUNT  FOR  FUNDS  TO  BE  HELD  ON DEPOSIT IN TRUST BY THE FRANCHISED
 CORPORATION FOR  THE  HORSEMEN'S  ORGANIZATION  RECOGNIZED  PURSUANT  TO
 SECTION  TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. STARTING IN TWO THOU-
 SAND EIGHTEEN AND ANNUALLY THEREAFTER, FUNDS  FROM  THE  ACCOUNT  ESTAB-
 LISHED  PURSUANT  TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE SEPARATE
 ACCOUNT ESTABLISHED UNDER THIS PARAGRAPH IN AN AMOUNT TO BE AGREED  UPON
 BY THE FRANCHISED CORPORATION AND THE HORSEMEN'S ORGANIZATION RECOGNIZED
 PURSUANT  TO  SECTION  TWO  HUNDRED TWENTY-EIGHT OF THIS ARTICLE.  FUNDS
 HELD IN THIS ACCOUNT SHALL  BE  USED  BY  THE  APPROPRIATELY  RECOGNIZED
 HORSEMEN'S  ORGANIZATION SOLELY AS COLLATERAL TO SECURE WORKERS' COMPEN-
 SATION INSURANCE COVERAGE, INCLUDING LOSS SENSITIVE PROGRAMS,  INCLUDING
 THROUGH THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC.
   (D)  IN  THE  EVENT THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO
 SECTION TWO HUNDRED TWENTY-EIGHT OF THIS  ARTICLE  DETERMINES  THAT  THE
 FUNDS ARE NO LONGER NEEDED AS COLLATERAL TO SECURE WORKERS' COMPENSATION
 INSURANCE  COVERAGE,  THEN, UPON AGREEMENT BY THE FRANCHISED CORPORATION
 AND THE APPROPRIATELY RECOGNIZED HORSEMEN'S ORGANIZATION, FUNDS  IN  THE
 SEPARATE  ACCOUNT  ESTABLISHED  UNDER  PARAGRAPH (C) OF THIS SUBDIVISION
 SHALL BE RETURNED TO THE ACCOUNT ESTABLISHED PURSUANT TO  THIS  SUBDIVI-
 SION.
   § 4. This act shall take effect immediately.