S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7639
 
                             I N  S E N A T E
 
                             February 3, 2020
                                ___________
 
 Introduced  by  Sen. ADDABBO -- 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, the
   general municipal law, the alcoholic  beverage  control  law  and  the
   administrative code of the city of New York, in relation to implement-
   ing  technical changes contemplated by section 10 of part A of chapter
   60 of the laws of 2012 and making further technical changes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings. 1. The legislature recognizes that
 section 10 of part A of chapter 60 of  the  laws  of  2012  provides  as
 follows:
   (a)  Wherever  the  term  "racing  and  wagering board", "state racing
 commission" or "state harness racing commission" appears in  the  execu-
 tive  law,  the  general municipal law, article 34 of the tax law or the
 racing, pari-mutuel wagering  and  breeding  law  or  otherwise  in  the
 consolidated  or  unconsolidated laws of this state, such term is hereby
 changed to "state gaming commission".
   (b) Wherever the term "chairman of  the  racing  and  wagering  board"
 appears  in  the consolidated or unconsolidated laws of this state, such
 term is hereby changed to "chair of the state gaming commission".
   (c) The legislative bill drafting commission  is  hereby  directed  to
 effectuate  this  provision,  and  shall  be  guided  by a memorandum of
 instruction setting forth the specific provisions of law to be  amended.
 Such  memorandum  shall  be transmitted to the legislative bill drafting
 commission within sixty days of the effective date  of  this  provision.
 Such  memorandum  shall be issued jointly by the governor, the temporary
 president of the senate and the speaker of the assembly, or by the dele-
 gate of each.
   2. In lieu of the memorandum of instruction referred to  in  paragraph
 (c)  of  section  10  of  part  A of chapter 60 of the laws of 2012, the
 legislature intends for this bill to set forth all  changes  to  consol-
 idated law directed by paragraphs (a) and (b) of section 10 of part A of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14398-03-0

 S. 7639                             2
 
 chapter  60  of  the  laws  of 2012. The legislature does not intend for
 subdivision (a) of section 10 of part A of chapter 60  of  the  laws  of
 2012  to apply to racing, pari-mutuel wagering and breeding law sections
 107,  117,  118,  119,  120,  121, 122, 123, 124, 125, 126, 127, 129 and
 paragraph b of subdivision 8 of section 212, each of which make specific
 reference to "former" entities,  for  which  references  should  not  be
 amended.
   §  2.  The opening paragraph of section 101 of the racing, pari-mutuel
 wagering and breeding law, as added by section 1 of part A of chapter 60
 of the laws of 2012, is amended to read as follows:
   As used in this [article] CHAPTER, the following terms shall have  the
 following meanings, UNLESS THE CONTEXT REQUIRES OTHERWISE:
   §  3. Subdivision (b) of section 201 of the racing, pari-mutuel wager-
 ing and breeding law, as amended by chapter 18 of the laws of  2008,  is
 amended to read as follows:
   (b) Approval. No certificate of incorporation under this section wher-
 ein  the  right  to  conduct  running  or  steeplechase race meetings is
 claimed, shall hereafter be filed without the  approval  of  the  [state
 racing and wagering board] COMMISSION, indorsed thereon or annexed ther-
 eto,  stating that, in its opinion, the purposes of this article and the
 public interest will be promoted by such incorporation,  and  that  such
 incorporation  will  be conducive to the interests of legitimate racing;
 nor shall any certificate amending the said certificate of incorporation
 in any particular or any certificate of  merger  affecting  said  corpo-
 ration  be  filed without the approval of the [state racing and wagering
 board] COMMISSION, indorsed thereon or annexed thereto stating that,  in
 its  opinion,  the purposes of this article and the public interest will
 be promoted by such amendment or by such merger and that such  amendment
 or such merger will be conducive to the interests of legitimate racing.
   § 4. Section 202 of the racing, pari-mutuel wagering and breeding law,
 as  amended  by  chapter  549 of the laws of 2013, is amended to read as
 follows:
   § 202. Restriction upon commencement of business. No  business  corpo-
 ration  organized  under  the provisions of this article shall engage in
 the prosecution or management of its business until  the  whole  of  its
 capital  stock shall have been subscribed, nor until it shall have filed
 in the offices where certificates of incorporation were filed, a further
 certificate stating that the whole of its capital stock has been in good
 faith subscribed, executed and acknowledged by its  president  or  vice-
 president and treasurer or secretary, and verified by them to the effect
 that the statements contained in it are true.
   Notwithstanding  the  foregoing,  corporations  organized  pursuant to
 section two hundred one of the not-for-profit corporation law as  chari-
 table  corporations  as  defined in paragraph (a) of section one hundred
 two (Definitions) of the not-for-profit corporation law shall not engage
 in the prosecution or management of its business until  its  certificate
 of  incorporation has been accepted for filing by the secretary of state
 and such confirmation of filing has been filed with the [board]  COMMIS-
 SION and the franchise oversight board.
   § 5. Section 204 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:
   § 204. Certificate of payment of stock. Except  as  provided  in  this
 article,  no business corporation hereafter organized under this article
 or heretofore organized in pursuance of law for any  purpose  authorized
 by  this  article, shall have any of the powers conferred by section two

 S. 7639                             3
 
 hundred three of this article until [it]  SUCH  CORPORATION  shall  have
 filed  in  the  office or offices where its certificate of incorporation
 was filed, a further certificate stating that its capital stock has been
 fully  paid  in  cash, and if claiming the right to conduct running race
 meetings, that, except as may be authorized by the  [board]  COMMISSION,
 it  actually  maintains a racetrack of not less than five-eighths of one
 mile in length or circumference, the location of which shall  be  speci-
 fied  in  such  certificate.  Such  certificate  shall  be  executed and
 acknowledged by [its] SUCH CORPORATION'S president or vice-president and
 [its] SUCH CORPORATION'S treasurer or secretary, and verified by them to
 the effect that the statements contained in [it]  SUCH  CERTIFICATE  are
 true.  In  the  case  of  racing courses to be used for running races or
 steeplechases, a license from the  [state  racing  and  wagering  board]
 COMMISSION must also be obtained in the manner hereinafter provided, and
 such license be filed with such certificate.
   § 6. Section 205 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:
   § 205. License for running races and steeplechase meetings.  Any  non-
 franchised corporation desiring to obtain the benefits of the provisions
 of  section two hundred three of this article, if proposing to conduct a
 race course or race meeting for  running  races  or  steeplechases,  may
 annually apply to the [state racing and wagering board] COMMISSION for a
 license  to conduct running races and race meetings or steeplechases and
 steeplechase meetings, as the case may be. If, in the judgment  of  such
 [board] COMMISSION the public interest, convenience or necessity will be
 served  thereby  and  a  proper case for the issuance of such license is
 shown consistent with the purposes of this article and the best interest
 of racing generally, [it] THE COMMISSION may grant such license,  for  a
 term  within the calendar year, which shall specify the dates and period
 of time during which, and the place where, the licensee may operate. The
 fee for such license shall be one hundred dollars for each  racing  day,
 payable  upon  issuance  of license. In considering an application for a
 license under this  section,  the  [state  racing  and  wagering  board]
 COMMISSION  may  give  consideration  to  the number of licenses already
 granted and to the location of the  tracks  previously  licensed.  Every
 such  license  shall  contain a condition that all running races or race
 meetings conducted thereunder shall be subject to such reasonable  rules
 and  regulations from time to time prescribed by the [board] COMMISSION,
 designated as the "rules of racing". Before promulgating such  rules  of
 racing  or  modifying  or abrogating any of them, the [board] COMMISSION
 shall give the jockey club, a corporation organized under  the  laws  of
 the state of New York, an opportunity to submit recommendations relative
 to  such  rules for running races and race meetings, and to the national
 steeplechase and hunt association, a  corporation  organized  under  the
 laws  of the state of New York, an opportunity to submit recommendations
 relative to such rules for steeplechases and steeplechase meetings,  and
 the  [board] COMMISSION may adopt, to the extent that it deems appropri-
 ate, any rules so submitted by either of such  corporations  or  by  any
 other  nationally recognized association or corporation [which] THAT has
 for its purpose the improvement of the breed.
   § 7. Subdivisions 3, 4, 5, 7 and 8 of section 208 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:
   3.  As a condition of franchise acceptance, the franchised corporation
 shall make application with the [racing and wagering  board]  COMMISSION

 S. 7639                             4
 
 for  live  thoroughbred  racing  dates at thoroughbred racing facilities
 located in Queens county, Saratoga county and jointly located in  Nassau
 and  Queens  counties  in  a  manner substantially similar to the racing
 dates presently undertaken.
   4.  As a condition of franchise acceptance, the franchised corporation
 shall agree that it will conduct running races, steeplechases  and  race
 meetings  in accordance with the provisions thereof and that all running
 races, steeplechases or race  meetings  conducted  thereunder  shall  be
 subject  to  such  reasonable  rules  and  regulations from time to time
 prescribed by the [state racing and wagering board] GAMING COMMISSION.
   5. A franchise may be revoked and cancelled by the [state  racing  and
 wagering  board]  COMMISSION  only  for  the  reasons  and in the manner
 prescribed under the provisions of sections two hundred twelve  and  two
 hundred  forty-four of this article. The action of the [state racing and
 wagering board] COMMISSION  in revoking a franchise shall be  reviewable
 in  the  supreme  court  in  the  manner  provided by and subject to the
 provisions of article seventy-eight of the civil practice law and rules.
   7. Notwithstanding the provisions of  section  seven  of  the  general
 business law, or any other inconsistent provision of general, special or
 local law, the [state racing and wagering board] COMMISSION shall speci-
 fy  annually the dates on which, and the hour of the first post time for
 days during which, such franchised corporation may operate at the places
 and for the full number of days specified in its franchise.
   8. The [state racing and wagering board] COMMISSION shall  permit  the
 franchised  corporation to conduct pari-mutuel betting in the manner and
 subject to the conditions prescribed by this chapter, at the  racetracks
 described in such racing franchise for the duration of such racing fran-
 chise.
   § 8. Section 209 of the racing, pari-mutuel wagering and breeding law,
 as  added  by  chapter  140  of  the laws of 2008, is amended to read as
 follows:
   § 209. Examination of the books and accounts by the state comptroller.
 Notwithstanding any other provision of this  article,  the  state  comp-
 troller  may  from  time  to time examine the books and accounts of such
 [franchise] FRANCHISED corporation, including  its  receipts,  disburse-
 ments,  contracts,  leases,  loans,  investments  and  any other matters
 relating to its financial operations, including  the  franchised  corpo-
 ration's  calculation  of  the  franchise  fee  payment  pursuant to the
 provisions of subdivision one of section two hundred eight of this arti-
 cle and report the results of each audit to the governor,  the  legisla-
 ture, the attorney general, the franchise oversight board and the [state
 racing and wagering board] COMMISSION.
   §  9. Subdivision 1 of section 210-a of the racing, pari-mutuel wager-
 ing and breeding law, as amended by chapter 18 of the laws of  2008,  is
 amended to read as follows:
   1.  No  franchised corporation shall relinquish a franchise granted to
 it pursuant to section two hundred six of this article at any time with-
 in the term of  any  such  franchise  without  giving  separate  written
 notification of its intention to effect relinquishment by certified mail
 return receipt requested to the franchise oversight board and the [state
 racing  and  wagering board] COMMISSION not less than one hundred eighty
 days prior to the date such franchised corporation proposes  to  be  the
 effective date of relinquishment.
   § 10. Section 211 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:

 S. 7639                             5
 
   § 211. Fair association, when entitled to privileges. Any state, coun-
 ty  or  other  fair  association  shall  be  entitled  to the privileges
 conferred by section two hundred four of  this  [chapter]  ARTICLE  upon
 filing in the offices wherein its certificate of incorporation is filed,
 a  certificate  [which shall set] THAT SETS forth its intention to avail
 itself of such privileges; and any such  state,  county  or  other  fair
 association  shall  not  be  required  to obtain any license or file any
 other certificate. State, county and other fair associations entitled to
 conduct trotting races may also  conduct  running  races  in  connection
 therewith,  and  the provisions of this article requiring a racetrack to
 be of specified dimensions shall not apply to such association;  but  no
 running races shall be conducted for more than five days on any track or
 grounds,  unless  the  license  of the [state racing and wagering board]
 COMMISSION therefor is first obtained.
   § 11. Subdivision 6, subparagraph (iv) of paragraph a and paragraph  b
 of  subdivision 8 of section 212 of the racing, pari-mutuel wagering and
 breeding law, subdivision 6 as amended by chapter 688  of  the  laws  of
 2019,  subparagraph (iv) of paragraph a and paragraph b of subdivision 8
 as added by chapter 18 of the laws of  2008,  are  amended  to  read  as
 follows:
   6.  Within thirty days following the appointment of the members of the
 franchise oversight board, the members  of  the  oversight  board  shall
 establish  a  local  advisory board for each racing operation [comprised
 of] COMPRISING the following members to meet at least twice yearly:
   a. The local advisory board for the Saratoga racetrack facility  shall
 [be  comprised  of]  COMPRISE fifteen members and include five designees
 from each of the following: the board of supervisors, the mayor  of  the
 city of Saratoga and the franchised corporation.
   b.  The local advisory board for the Aqueduct racetrack facility shall
 [be comprised of] COMPRISE fifteen members, nine of whom shall be desig-
 nees of New York City Queens Community Board Ten, three designees of the
 franchised corporation and three designees of the video  lottery  gaming
 operator.
   c.  The  local advisory board for the Belmont racetrack facility shall
 [be comprised of] COMPRISE fifteen members, to be appointed as follows:
   (i) [Five] FIVE members from Nassau county  to  be  appointed  by  the
 Nassau  county executive. Four of such members must reside in the hamlet
 of Elmont[.];
   (ii) [Two] TWO members from the town of Hempstead to be  appointed  by
 the supervisor of the town of Hempstead. Both members must reside in the
 hamlet of Elmont[.];
   (iii) [Two] TWO members to be appointed by the mayor of the village of
 Floral Park, subject to village board approval[.];
   (iv)  [One]  ONE member to be appointed by the mayor of the village of
 South Floral Park, subject to village board approval[.];
   (v) [Three] THREE members to be appointed by the New York Racing Asso-
 ciation, Inc.; AND
   (vi) [Two] TWO members to be appointed by the  New  York  City  Queens
 Community Board 13.
   The  members  of the local advisory boards shall serve for a period of
 two years. In the event of a vacancy occurring during a term of appoint-
 ment by reason of death, resignation, disqualification or otherwise such
 vacancy shall be filled for the unexpired term in the same manner as the
 original appointment. The members of  the  local  advisory  board  shall
 serve without compensation, except that each member shall be allowed the

 S. 7639                             6
 
 necessary  and actual expenses incurred in the performance of his or her
 duties pursuant to this section.
   (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 services, and manage, subject to the franchised
 corporation's unilateral right to opt out, directly or indirectly, inte-
 gration of any offered internet wagering platform. The  franchise  over-
 sight board shall consider in its evaluation of any such proposed vendor
 [their]  THE  ability  OF SUCH VENDOR to reduce the totalizator 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.
   b. Notwithstanding any other provision of this article, the franchised
 corporation shall be entitled to make capital expenditures, except those
 capital expenditures for the Saratoga Racecourse that may, on the advice
 of the New York state historic preservation office, adversely impact any
 historic structure that is included in or is eligible for  inclusion  in
 the national or state register of historic places, to the physical plant
 of the racetracks, grandstand, backstretch, parking and public areas set
 forth  in  the  New  York  Racing Association's capital expenditure plan
 ("capital plan") filed with the [racing and wagering  board]  COMMISSION
 in  two thousand seven. Any material modification to the capital plan as
 determined by the franchise oversight  board  and  each  future  capital
 investment  plan  for  the  tracks, grandstand, backstretch, parking and
 public areas of the racetracks operated by  the  franchised  corporation
 involving  the  expenditure  of  more  than  five million dollars in the
 aggregate shall require the prior approval of  the  franchise  oversight
 board.  Within  five  years  from  the date of commencement of the video
 lottery terminal operations at Aqueduct, and every five years  thereaft-
 er,  the  franchised  corporation  shall submit to the oversight board a
 capital plan for the [five year] FIVE-YEAR period commencing on  January
 first  of the following year. Such plans shall contain both the intended
 object of expenditure and the proposed sources of financing.  The  fran-
 chised  corporation shall report to the franchise oversight board within
 ninety days following the end of each fiscal year as to the amount spent
 pursuant to the capital plan.
   § 12. Subdivision 1 of section 216 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:
   1. Any franchised corporation desiring to grant, give, devise, or sell
 any  assets  including tangible and intangible assets, racing facilities
 and real estate shall apply to the [state  racing  and  wagering  board]
 COMMISSION  and  to  the  franchise oversight board for approval of such
 disposition, provided, however,  that  the  approval  of  such  [boards]
 COMMISSION AND SUCH BOARD shall not be necessary for the sale of proper-
 ty, other than real property, [which] THAT is appropriately, customarily
 and  usually  sold  by the association in the normal course of its busi-
 ness. If in the judgment of [each such] THE COMMISSION AND THE FRANCHISE
 OVERSIGHT board, acting individually, the public  interest,  convenience
 or  necessity  and  the  best interest of racing will be served thereby,
 [each such] THE COMMISSION AND  FRANCHISE  OVERSIGHT  board  shall  EACH
 enter  an  order  granting approval of such disposition and of the terms
 thereof.
   § 13. Section 217 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. 7639                             7
 
   §  217.  Revocation of licenses. If any corporation to which a license
 shall be granted shall fail or refuse to comply with the  provisions  of
 this chapter, or with the terms and conditions of its license, or if for
 any  other  reason  the  continuance of such license shall not be deemed
 conducive to the interests of legitimate racing, the [board] COMMISSION,
 upon  its  own  initiative  or upon complaint of the jockey club, in the
 case of race courses to be used for running races, or upon the complaint
 of the national steeplechase and hunt association in the  case  of  race
 courses to be used for steeplechases, shall have the power to cancel and
 revoke  such license. Written notice of such complaint shall be given to
 such corporation by [said board] THE COMMISSION within five  days  after
 receiving  such  complaint,  or  after determining to take action, which
 notice shall specify a time and place of hearing thereon. If the [board]
 COMMISSION cancels and revokes such license, THEN all  powers  exercised
 under  section  two  hundred three of this article by the corporation to
 which such license was granted shall cease and determine.
   § 14. Section 218 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as  amended by chapter 140 of the laws of 2008, is amended to read
 as follows:
   § 218. Stewards at race meetings. There shall  be  three  stewards  to
 supervise  each  running race meeting conducted pursuant to sections two
 hundred five and two hundred six of this article. One of  such  stewards
 shall  be  the  official steward of the [board] COMMISSION, one shall be
 appointed by the jockey club or by the national  steeplechase  and  hunt
 association  as  may  be  appropriate, and one shall be appointed by the
 corporation conducting such race meeting. Such stewards  shall  exercise
 such  powers  and  perform  such  duties  at each race meeting as may be
 prescribed by the rules of the [state racing and wagering board] COMMIS-
 SION. During the absence or inability to act of an official  steward  of
 the  [board]  COMMISSION, or in the event of the failure or inability to
 appoint either of the other two stewards, the powers and duties of  such
 steward  shall  be  exercised  and  performed  without compensation by a
 member of the [board] COMMISSION designated by  the  [board]  COMMISSION
 for that purpose.
   §  15.  Section  219  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:
   § 219. Advertising or promotional material. Notwithstanding any  other
 provision  of  law, rule or regulation nothing herein shall be deemed to
 authorize the stewards or the [racing and wagering board] COMMISSION  to
 promulgate  any  rule or regulation [which] THAT would prohibit a jockey
 from wearing any advertising or  promotional  material  on  his  or  her
 clothing. The wearing of such advertising or promotional material [will]
 SHALL  be  permitted only when the owner of a horse for whom such jockey
 is riding provides the jockey with prior written authorization. Notwith-
 standing the foregoing, when a corporation, company or any other  entity
 sponsors  a race or race day at any franchised corporation or any racing
 association or corporation, such racing association may prohibit a jock-
 ey from wearing advertising material that  represents  a  competitor  of
 such sponsoring corporation, company or other entity.
   § 16. Subdivisions 1, 2 and 3 of section 220 of the racing, pari-mutu-
 el wagering and breeding law, subdivision 1 as amended by chapter 140 of
 the  laws  of  2008 and subdivisions 2 and 3 as amended by chapter 18 of
 the laws of 2008, are amended to read as follows:
   1. For the purpose of maintaining a proper control over race  meetings
 conducted  pursuant  to sections two hundred five and two hundred six of

 S. 7639                             8
 
 this article, the [state racing and  wagering  board]  COMMISSION  shall
 license  owners,  which  term  shall  be deemed to include [part owners]
 PART-OWNERS and lessees, trainers, assistant trainers and jockeys, jock-
 ey  agents,  stable  employees,  and  such  other persons as the [board]
 COMMISSION may by rule prescribe at running races and at  steeplechases,
 provided,  however,  that no such license shall be required for seasonal
 employees hired solely to work for no longer than six weeks  during  the
 summer meet at Saratoga racetrack. In the event that a proposed licensee
 is  other than a natural person, the [board] COMMISSION shall require by
 regulation disclosure of the names and addresses of  all  owners  of  an
 interest  in  such  entity. The [board] COMMISSION may retain, employ or
 appoint such officers, employees and agents, as it may deem necessary to
 receive, examine and make recommendations, for the consideration of  the
 [board]  COMMISSION,  in  respect  of  applications  for  such licenses;
 prescribe their duties in connection therewith, and  fix  their  compen-
 sation therefor within the limitations prescribed by law. Each applicant
 for  a license shall pay to the [board] COMMISSION an annual license fee
 as follows: owner's license, if a renewal,  fifty  dollars,  and  if  an
 original  application,  one  hundred  dollars; trainer's license, thirty
 dollars; assistant trainer's license, thirty dollars; jockey's  license,
 fifty  dollars;  jockey  agent's  license,  twenty  dollars;  and stable
 employee's license, five dollars. Each applicant may apply  for  a  [two
 year]  TWO-YEAR  or  [three  year]  THREE-YEAR license by payment to the
 [board] COMMISSION of the appropriate multiple of the  annual  fee.  The
 [board]  COMMISSION may by rule fix the license fees to be paid by other
 persons required to be licensed by the rules of the [board]  COMMISSION,
 not  to  exceed  thirty  dollars  per  category. The application for the
 license shall be in writing in such form as the [board]  COMMISSION  may
 prescribe,  and  contain  such information as the [board] COMMISSION may
 require. The [board] COMMISSION shall henceforth  cause  all  applicants
 for  licenses  to  be photographed and fingerprinted and may issue iden-
 tification cards to licensees. Such fingerprints shall be  submitted  to
 the  division  of criminal justice services for a state criminal history
 record check, as defined in subdivision one of  section  three  thousand
 thirty-five  of  the  education law, and may be submitted to the federal
 bureau of investigation for a national criminal history record check.  A
 fee  equal  to  the  actual  cost  of  issuance shall be charged for the
 initial issuance of such identification cards. Each such license  unless
 revoked  for  cause  shall be for the period of no more than one, two or
 three years, determined by rule of the [board] COMMISSION,  expiring  on
 the  applicant's  birth  date. Licenses current on the effective date of
 this provision shall not be reduced in duration by  this  provision.  An
 applicant  who  applies for a license that, if issued, would take effect
 less than six months prior to the applicant's birth date may, by payment
 of a fifty percent higher fee, receive a license which shall not  expire
 until  the applicant's second succeeding birth date. All receipts of the
 [board] COMMISSION derived from the operation of this section  shall  be
 paid  by  it  into the state treasury on or before the tenth day of each
 month. All officials connected with the actual conduct of  racing  shall
 be [approved] SUBJECT TO APPROVAL by the [board] COMMISSION.
   2.  If  the  [state  racing  and wagering board shall find] COMMISSION
 FINDS that  the  financial  responsibility,  experience,  character  and
 general fitness of the applicant are such that the participation of such
 person  will  be  consistent  with  the  public interest, convenience or
 necessity and with the best interests of racing generally in  conformity
 with  the  purposes of this article, [it] THE COMMISSION shall thereupon

 S. 7639                             9
 
 grant a license. If the [board shall find]  COMMISSION  FINDS  that  the
 applicant  fails to meet any of said conditions, it shall not grant such
 license and it shall notify the applicant of the denial.
   The  [board] COMMISSION may refuse to issue or renew a license, or may
 suspend or revoke a license issued pursuant  to  this  section,  if  [it
 shall  find]  THE COMMISSION FINDS that the applicant, or any person who
 is a partner, agent, employee or associate of the  applicant,  has  been
 convicted  of a crime in any jurisdiction, or is or has been associating
 or consorting with any person who has or persons who have been convicted
 of a crime or crimes in any jurisdiction or jurisdictions or is consort-
 ing or associating with or has consorted or associated with  bookmakers,
 touts, or persons of similar pursuits, or has himself OR HERSELF engaged
 in similar pursuits, or is financially irresponsible, or has been guilty
 of  or  attempted  any  fraud  or  misrepresentation  in connection with
 racing, breeding, or otherwise, or has violated or attempted to  violate
 any  law  with  respect to racing in any jurisdiction or any rule, regu-
 lation or order of the [board] COMMISSION, or shall  have  violated  any
 rule  of racing which shall have been approved or adopted by the [board]
 COMMISSION, or has been guilty of or engaged in similar, related or like
 practices.
   3. No license shall be revoked unless such revocation  is  by  [board]
 COMMISSION determination upon a meeting of the [board] COMMISSION. Prior
 to revocation or suspension of license a licensee shall be entitled to a
 hearing  on notice except that summary suspension where emergency action
 is required in accordance with subdivision three of section four hundred
 one of the state administrative procedure act may  be  ordered.  In  the
 conduct  of  such  hearing  the [board] COMMISSION shall not be bound by
 technical rules of evidence but all evidence offered before the  [board]
 COMMISSION  shall be reduced to writing, and such evidence together with
 the exhibits, if any, and the findings of the [board] COMMISSION,  shall
 be  permanently preserved and shall constitute the record of the [board]
 COMMISSION in such case. Such  hearing  may  be  presided  over  by  the
 [chairman]  CHAIR  of  the  [board] COMMISSION or by any member or by an
 officer of the [board] COMMISSION designated by the [chairman] CHAIR  in
 writing  to  act as hearing officer and such person or persons may issue
 subpoenas for witnesses and administer oaths to witnesses.  The  hearing
 officer,  at  the  conclusion of the hearing shall make findings [which]
 THAT, if concurred in by [two members] A MAJORITY of the [board] COMMIS-
 SION, shall become the findings of the [board] COMMISSION. The action of
 the [board] COMMISSION in refusing, suspending or in revoking a  license
 shall  be  reviewable in the supreme court in the manner provided by the
 provisions of article seventy-eight of the civil practice law and rules.
   § 17. Section 221 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as amended by chapter 325 of the laws of 2004 and as renumbered by
 chapter 18 of the laws of 2008, paragraph a of subdivision 2 as  amended
 by chapter 18 of the laws of 2008, paragraph b of subdivision 2 as added
 by  chapter 325 of the laws of 2004, subdivision 6 as amended by section
 1 of part SS of chapter 59 of the laws of 2017, the opening paragraph of
 subdivision 7 as amended by section 1 of part ZZ of chapter  59  of  the
 laws  of 2019, subdivision 7 as amended by section 2 of part SS of chap-
 ter 59 of the laws of 2017 and subdivision 12 as  amended  and  subdivi-
 sions  13  and  14 as added by section 3 of part SS of chapter 59 of the
 laws of 2017, is amended to read as follows:
   § 221. New York Jockey Injury Compensation  Fund,  Inc.  1.  There  is
 created  a not-for-profit corporation to be known as The New York Jockey
 Injury Compensation Fund, Inc. and referred to in this section  as  "the

 S. 7639                            10
 
 fund".  To  the  extent that the provisions of the not-for-profit corpo-
 ration law do not conflict with the provisions of this article,  or  the
 plan  of operation of the fund hereunder, the not-for-profit corporation
 law  shall  apply to the fund and the fund shall be a type C corporation
 pursuant  to  the  not-for-profit  corporation  law.  If  an  applicable
 provision of this article or the plan of operation of the fund hereunder
 relates to a matter embraced in a provision of the not-for-profit corpo-
 ration  law  but  is  not  in  conflict therewith, both provisions shall
 apply. The fund shall perform its functions under the plan of  operation
 established  and  approved  under  this  section  and shall exercise its
 powers through a board of directors established under this section.
   2.  a. The board of directors shall consist of seven members,  six  of
 whom  are  to  be  selected from the general membership of the fund in a
 manner and for terms to be prescribed by the initial fund board. For the
 purposes of establishing and organizing the fund, at least  one  hundred
 fifty  days  prior  to the date that this article shall take effect, the
 boards of directors of  the  horsemen's  organizations  representing  at
 least  fifty-one percent of the horsemen utilizing the facilities of any
 racing corporation, shall designate six members who shall serve  as  the
 initial  board  of  directors  of  the fund. The seventh member shall be
 elected every two years on the second Tuesday of June, or as  designated
 by  the  fund,  pursuant to paragraph b of this subdivision by a vote of
 jockeys and apprentice jockeys duly licensed pursuant to this article or
 article four of this chapter. The members of the board shall elect annu-
 ally from the members a chairperson and a vice-chairperson who shall act
 as chairperson in the absence of the chairperson.  Each  member  of  the
 board of directors shall have equal voting rights with the others.
   b.  (i) The election of the seventh board member shall be conducted by
 an election administrator selected by the fund no  later  than  November
 fifteenth  of the year preceding the election. The fund shall inform the
 [state racing and wagering board] COMMISSION of its  selection  thereof.
 The  fund shall enter into a contract with the election administrator at
 least one hundred twenty days prior to the date  of  the  election.  The
 fund  shall  be  responsible for costs associated with the contract with
 the election administrator.
   (ii) The election administrator may be the  individual,  organization,
 or  corporation  under  contract  with  the  fund  to provide management
 services as of November fifteenth of the year  preceding  the  election.
 The election administrator shall devise and provide nominating petitions
 to candidates, shall validate such petitions upon submittal by verifying
 the  eligibility  of  the  jockeys  and  apprentice jockeys to sign such
 petitions, and shall be responsible  for  the  printing,  dissemination,
 validation,  and  tabulation  of  ballots  for such election. The [state
 racing and wagering board] COMMISSION shall provide a list of  all  duly
 licensed  jockeys  and  apprentice  jockeys  to the fund for purposes of
 validating nominating petitions and ballots. The election  administrator
 shall report the results of the election to the [state racing and wager-
 ing  board]  COMMISSION,  which  shall  then certify the election of the
 seventh board member.
   (iii) Any individual seeking election  pursuant  to  this  subdivision
 shall  provide  a  nominating  petition  containing the signatures of no
 fewer than ten duly licensed jockeys or apprentice jockeys  eligible  to
 sign  such  petition.  To be eligible to sign such petition, a jockey or
 apprentice jockey shall possess a valid jockey's  license  as  of  March
 first  in  the  year  of  the  election. Such petitions may be signed by
 eligible jockeys or apprentice  jockeys  beginning  April  first  of  an

 S. 7639                            11
 
 election  year  and  shall be returned to the election administrator for
 validation no later than the first Monday of May of an election year. If
 a jockey's license expires between March second and the first Monday  of
 May  and  has not been renewed by the latter date, the election adminis-
 trator shall invalidate such jockey's signature on the nominating  peti-
 tion so submitted.
   (iv)  To  be  eligible to vote in the election, jockeys and apprentice
 jockeys must possess a valid jockey's license at least thirty days prior
 to the date of the election. If such jockey's license expires during the
 thirty days preceding the election and such license has not been renewed
 as of the date of the election, such jockey shall  not  be  eligible  to
 vote.
   (v) If, following an election of the seventh board member, such member
 is  unable to discharge his or her duties as a board member or is other-
 wise unable to complete his or her term, the  fund's  chairperson  shall
 offer  the seventh board member's position to the candidate who received
 the highest total number of votes following that received by the elected
 board member during the election. If such candidate declines  to  accept
 such  position, the chairperson shall offer the position to each remain-
 ing candidate in descending order of the total number of votes  received
 by  each  such  candidate  during  the  election  until  a candidate has
 accepted the position. If none of the remaining candidates has  accepted
 the position, the chairperson may appoint an interim member to the posi-
 tion  for  such  time  as intervenes until a new seventh board member is
 elected.
   3. Members of the board of directors shall serve without  compensation
 for  their  services,  but shall be entitled to reimbursement for actual
 and necessary expenses incurred in the  performance  of  their  official
 duties.
   4.  Members of the board of directors, except as otherwise provided by
 law, may engage in private employment, or in a profession or business.
   5. The affirmative vote of four members  of  the  board  of  directors
 shall  be  necessary for the transaction of any business or the exercise
 of any power or function of the fund. The fund may delegate  to  one  or
 more  of  its members, or its officers, agents or employees, such powers
 and duties as it may deem proper.
   6. (a) The fund shall secure workers' compensation insurance  coverage
 on  a  blanket  basis for the benefit of all jockeys, apprentice jockeys
 and exercise persons licensed pursuant to this article or  article  four
 of  this  chapter  who  are  employees under section two of the workers'
 compensation law, and may elect,  with  the  approval  of  the  [gaming]
 commission,  to  secure workers' compensation insurance for employees of
 licensed trainers or owners. In the event  the  fund  elects,  with  the
 approval  of  the  [gaming]  commission, to secure workers' compensation
 insurance for employees of licensed trainers or  owners,  the  fund  may
 discontinue  to  secure workers' compensation insurance for employees of
 licensed trainers or owners only upon prior  approval  of  the  [gaming]
 commission.
   (b)  The fund may elect, with the approval of the [gaming] commission,
 to secure workers' compensation insurance coverage  through  a  form  of
 self-insurance,  provided  that the fund has met the requirements of the
 workers' compensation board, including, without limitation,  subdivision
 three of section fifty of the workers' compensation law.
   7. 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-

 S. 7639                            12

 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] THAT
 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] PERCENT; provided, however, for
 two thousand nineteen 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 article to pay
 the annual costs required by  this  section  and  the  funds  from  such
 account  shall  not count against the two [per centum] PERCENT 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] PERCENT after
 April first, two thousand twenty. In the cases  of  multiple  ownerships
 and  limited racing appearances, the fund shall equitably adjust the sum
 required.
   The [gaming] commission shall, as a condition of racing,  require  any
 racing corporation or any quarterhorse racing association or corporation
 authorized  under  this chapter to conduct pari-mutuel betting at a race
 meeting or races run thereat, to require that each  trainer  [utilizing]
 USING  the  facilities of such association or corporation and each owner
 racing a horse shall place or have placed on deposit with the horsemen's
 bookkeeper of such racing association or corporation, an  amount  to  be
 established and paid in a manner to be determined by the fund.
   Should  the  fund  determine  that  the  amount  [which] THAT has been
 collected in the manner prescribed is inadequate to pay the annual costs
 required by this section, it shall notify the [gaming] commission of the
 deficiency and the amount of the additional sum or sums necessary to  be
 paid by each owner and/or trainer in order to cover such deficiency. The
 [gaming]  commission shall, as an additional condition of racing, direct
 any racing corporation or any quarterhorse racing association or  corpo-
 ration authorized under this chapter to conduct pari-mutuel betting at a
 race  meeting or races run thereat, to require each trainer and owner to
 place such additional  sum  or  sums  on  deposit  with  the  respective
 horsemen's bookkeeper.
   All  amounts  collected  by  a  horsemen's bookkeeper pursuant to this
 section shall be transferred to the fund created under this section  and
 shall  be  used  by the fund to purchase workers' compensation insurance
 for jockeys, apprentice jockeys and exercise persons  licensed  pursuant
 to  this article or article four of this chapter who are employees under
 section two of the workers' compensation law, and at the election of the
 fund, with the approval of the [gaming] commission, to  secure  workers'
 compensation  insurance  for employees of licensed trainers or owners to
 pay for any of its liabilities under section fourteen-a of the  workers'
 compensation law and to administer the workers' compensation program for
 such  jockeys,  apprentice jockeys and exercise persons and, if approved
 by the [gaming] commission, employees of  licensed  trainers  or  owners
 required by this section and the workers' compensation law.

 S. 7639                            13
 
   In  the  event  the  fund  elects,  with  the approval of the [gaming]
 commission, to secure workers' compensation insurance for  employees  of
 licensed trainers or owners, the fund may elect to have the sum required
 to be paid by an owner or trainer pursuant to this section be subject to
 an  examination  of  workers' compensation claims attributable under the
 fund to each such owner or trainer, including the frequency and severity
 of accidents and injuries.
   8. a. The fund shall submit to the [state racing and  wagering  board]
 COMMISSION  a  plan of operation and any amendments thereto necessary or
 suitable to assure the fair, reasonable and equitable administration  of
 the  fund.    Such amendments, if any, relating to the assessment of the
 costs of insurance  for  the  subsequent  year,  other  than  deficiency
 assessments,  shall be submitted to the [board] COMMISSION no later than
 November fifteenth of each year. The plan of operation  and  any  amend-
 ments  thereto  shall  become  effective upon approval in writing by the
 [board] COMMISSION, and  shall  be  published  by  the  fund  upon  such
 approval  in  one  or  more  trade publications likely to be obtained by
 owners and trainers.
   b. If the fund fails to submit a suitable plan of operation within one
 hundred eighty days following the effective date of this section  or  if
 at  any  time thereafter the fund fails to submit suitable amendments to
 the plan, the [board] COMMISSION shall, after notice and hearing,  adopt
 and  promulgate  such  reasonable rules as are necessary or advisable to
 effectuate the provisions of this article. Such rules shall continue  in
 force  until  modified by the [board] COMMISSION or superseded by a plan
 submitted by the fund and approved by the [board] COMMISSION.
   c. The plan of operation shall constitute the by-laws of the fund  and
 shall, in addition to requirements enumerated elsewhere in this article:
   (i)  [Establish]  ESTABLISH  procedures for handling the assets of the
 fund[.];
   (ii) [Establish] ESTABLISH regular places and times  for  meetings  of
 the board of directors[.];
   (iii)  [Establish]  ESTABLISH procedures for records to be kept of all
 financial transactions of the fund, its agents and the board  of  direc-
 tors[.];
   (iv)  [Establish]  ESTABLISH a formula for determining the appropriate
 amount of the assessments under this section[.];
   (v) [Establish] ESTABLISH the  rules  and  procedures  to  govern  the
 conduct  of  an election held pursuant to paragraph b of subdivision two
 of this section[.]; AND
   (vi) [Contain] CONTAIN  such  additional  provisions  as  the  [board]
 COMMISSION or fund may deem necessary or proper for the execution of the
 powers and duties of the fund.
   9.  The  fund  shall  be  subject to examination and regulation by the
 [board] COMMISSION.  The fund shall submit to the [board] COMMISSION not
 later than May first of each year, a financial report for the  preceding
 calendar  year in a form approved by the [board] COMMISSION and a report
 of its activities during the preceding calendar year.
   10. The fund shall be exempt from payment of all fees  and  all  taxes
 levied  by this state or any of its subdivisions, except taxes levied on
 real property.
   11. The fund shall purchase such insurance as necessary to protect any
 director, officer, agent or other representative from liability.
   12. For purposes of this section,  the  term  "employees  of  licensed
 trainers  or  owners" shall have the same meaning as subdivision twenty-
 four of section two of the workers' compensation law.

 S. 7639                            14
 
   13. a. There is created a racing safety committee to review  the  risk
 management  report  submitted  to the commission by the fund on or about
 September thirtieth, two thousand sixteen and to make non-binding recom-
 mendations for the implementation of the  safety  proposals  and  initi-
 atives  set  forth in such report. Such committee shall consist of seven
 members, each to serve a term of  three  years,  with  one  member  each
 appointed by:
   (i) the fund;
   (ii) the [gaming] commission;
   (iii) the franchised corporation;
   (iv)  the  racing association or corporation licensed pursuant to this
 article or article four of this chapter to operate the racing and train-
 ing facilities at Finger Lakes racetrack;
   (v)  the  horsemen's  organization  representing  at  least  fifty-one
 percent  of  the  owners  and trainers using the facilities of the fran-
 chised corporation;
   (vi) the  horsemen's  organization  representing  at  least  fifty-one
 percent  of  the  owners and trainers using the facilities of the Finger
 Lakes racetrack; and
   (vii) the Jockeys' Guild.
   The member of the racing safety committee appointed by the fund  shall
 serve  as  chairperson  and  the  member  of the racing safety committee
 appointed by the commission shall serve as vice-chairperson. Members  of
 the racing safety committee shall have equal voting rights.
   b. The racing safety committee shall meet within ninety days following
 the  effective date of this subdivision to review and discuss the imple-
 mentation of the recommendations contained in the risk management report
 submitted to the [gaming] commission by the fund on or  about  September
 thirtieth,  two thousand sixteen. The racing safety committee shall meet
 on or after July first, two thousand seventeen, and  at  least  annually
 thereafter, to review the workers' compensation loss information and the
 status  of safety-related findings and recommendations and to develop an
 annual strategic plan to address identified safety issues.
   c. The members appointed pursuant to subparagraph (iii)  and  (iv)  of
 paragraph  a of this subdivision, in consultation with the other members
 of the racing safety committee, shall:
   (i) Within one hundred eighty days following  the  effective  date  of
 this  subdivision,  for  each  track,  develop safety rules for training
 activities to be documented and communicated, in both English and  Span-
 ish,  to  jockeys,  apprentice  jockeys,  and  exercise persons licensed
 pursuant to this article or article four of this chapter who are employ-
 ees under section two of the  workers'  compensation  law,  and  at  the
 election  of  the  fund,  with  the approval of the [gaming] commission,
 employees of licensed  trainers  or  owners.  Such  safety  rules  shall
 include,  but  not  be  limited  to, proper usage of personal protective
 equipment, required response to loose horses, prohibition of cell  phone
 use  while mounted on a horse, general requirements for jogging, gallop-
 ing, breezing, ponying a horse,  and  starting  gate  safety  protocols.
 Refresher training related to such safety rules shall be required at the
 start of each meet.
   (ii)  Prior to the start of each meet, following the effective date of
 this subdivision, meet with trainers or their representatives to discuss
 and address identified safety issues.
   (iii) Within one hundred eighty days following the effective  date  of
 this subdivision, for each track, develop a written, documented emergen-
 cy response plan to address response protocols to on-track accidents and

 S. 7639                            15
 
 incidents,  which,  at  a  minimum,  shall  include detailed information
 regarding roles and responsibilities for individuals who are responsible
 for track-related accidents and incidents, including,  but  not  limited
 to, outriders, emergency medical technicians/paramedics, ambulance driv-
 ers, security, and veterinary staff and clockers.
   (iv)  Within two hundred ten days following the effective date of this
 subdivision, communicate the emergency response  plan  to  all  on-track
 personnel as part of new hire orientation and job assignment.
   (v)  Within  two hundred ten days following the effective date of this
 subdivision, and at least once  annually  thereafter,  for  each  track,
 conduct  a mock emergency response drill for on-track accidents prior to
 the opening of each race meet. Such emergency response  drill  shall  be
 filmed  and  used  for  education  and  training purposes for personnel,
 including in new hire orientation, and  to  assess  the  performance  of
 individuals involved in the emergency response.
   (vi)  Within  one  hundred eighty days following the effective date of
 this subdivision, upgrade the current level of emergency medical respon-
 ders from emergency medical technicians to paramedics.
   14. The fund and the [gaming] commission shall have such power  as  is
 necessary to implement the provisions of this section.
   §  18.  Subdivision  1  and  the  opening paragraph and paragraph f of
 subdivision 2 of section 221-a of the racing, pari-mutuel  wagering  and
 breeding  law,  as  amended by section 1 of part OO of chapter 60 of the
 laws of 2016, are amended as follows:
   1. A franchised corporation shall, as a condition of racing, establish
 a program to administer the purchase of health  insurance  for  eligible
 jockeys.
   Such  program  shall be funded through the deposit of one and one-half
 percent of the gross purse enhancement amount from video lottery  gaming
 at  a  thoroughbred track pursuant to paragraph two of subdivision b and
 paragraph one of subdivision f of section sixteen hundred twelve of  the
 tax law. The franchised corporation shall establish a segregated account
 for  the  receipt of these monies and these monies shall remain separate
 from any other funds. Any corporation or association  licensed  pursuant
 to  this  article  shall pay into such account any amount due within ten
 days of the receipt of  revenue  pursuant  to  section  sixteen  hundred
 twelve of the tax law. Any portion of such funding to the account unused
 during  a  calendar year, less an amount sufficient to cover anticipated
 premium liabilities over the next sixty days, shall be returned on a pro
 rata basis in accordance with the  amounts  originally  contributed  and
 shall  be  used  for  the  purpose  of  enhancing purses at such tracks.
 Provided, however, if a corporation or association licensed pursuant  to
 this article provides an alternative source of funding for this program,
 an  amount  equal  to this alternative funding, but not in excess of the
 amount originally contributed during  the  year  from  the  gross  purse
 enhancement amount from video lottery gaming attributable to such corpo-
 ration  or  association, shall be returned to the corporation or associ-
 ation and used for the  purpose  of  enhancing  purses  at  such  track.
 Provided,  further,  any  such  alternative  source  of  funding must be
 approved by the [gaming] commission.
   The franchised corporation shall enter into  a  memorandum  of  under-
 standing  with the jockey's organization that represents at least fifty-
 one percent of eligible active jockeys establishing a plan of  operation
 for the program, provided that such memorandum of understanding shall be
 approved by the [gaming] commission upon a determination that such memo-
 randum of understanding meets the statutory requirements of this section

 S. 7639                            16
 
 and  is  in  the  best  interest of racing and shall include, but not be
 limited to, the following conditions:
   f. the [gaming] commission shall have the following powers:
   (i) to rule on eligibility in the event of a denial of coverage pursu-
 ant  to  paragraph  e  of  this subdivision. In the event of a denial of
 coverage, such individual denied eligibility may appeal to the  [gaming]
 commission;
   (ii)  to  make  a  determination if an individual would have qualified
 pursuant to subparagraph (i) of paragraph e of this subdivision  in  the
 event  that the individual suffers an injury and contends that he or she
 would have qualified had they not suffered such injury; and
   (iii) to audit the books and records of the program.
   § 19. Section 225 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:
   §  225.  Registration  of race horses. The true name, sex and age, and
 also the pedigree, unless such pedigree  is  unknown,  of  every  horse,
 mare,  gelding,  colt or filly shall be registered with the jockey club,
 United States trotting association, American quarter horse  association,
 the  national  steeplechase and hunt association or such other entity as
 the [racing and wagering board] COMMISSION may designate before it shall
 be eligible to compete in any race conducted under a  license  or  fran-
 chise  of the [state racing and wagering board] COMMISSION and such name
 shall continue to be its true name unless and until the  same  shall  be
 changed according to the rules and regulations of such organization. The
 class  to  which any such animal belongs for the purpose of the entry or
 competition in any race shall be determined by  the  public  performance
 thereof  in  former  contests  or  trials of speed, as prescribed by the
 printed rules of the person, association or corporation sponsoring  such
 race.
   §  20.  Section  228  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 18 of the laws of 2008 and the opening  para-
 graph of subdivision 2 as amended by chapter 122 of the laws of 2019, is
 amended to read as follows:
   §  228.  Pension plans for backstretch employees. 1. The [state racing
 and wagering board] COMMISSION may, as a condition  of  racing,  require
 all trainers and owners engaged in racing at meetings of any corporation
 subject  to  its  jurisdiction to participate in a pension plan or trust
 established, or which may be established, by trainers and owners for the
 benefit of stable employees (backstretch workers) regularly employed  at
 such  meetings;  [provided  that the board shall find] IF THE COMMISSION
 FINDS that participation in the plan by all such owners and trainers  is
 in the best interests of racing and [provided,] further FINDS, [that the
 board  shall  find,]  based  upon  certification by the trustees of such
 plan, that at least eighty percent of  such  trainers  and  owners  have
 agreed  in writing to participate, or are, in fact, participating there-
 in.
   2. The [New York state gaming] commission shall,  as  a  condition  of
 racing,  require  any franchised corporation and every other corporation
 subject to its jurisdiction to  withhold  one  percent  of  all  purses,
 except that for the franchised corporation, starting on September first,
 two thousand seven and continuing through August thirty-first, two thou-
 sand  twenty,  two  percent of all purses shall be withheld, and, in the
 case of the franchised corporation, to pay such sum  to  the  horsemen's
 organization  or  its  successor  that  was  first  entitled  to receive
 payments pursuant to this  section  in  accordance  with  rules  of  the

 S. 7639                            17
 
 commission  adopted  effective  November third, nineteen hundred eighty-
 three representing at least fifty-one percent of the owners and trainers
 [utilizing] USING the facilities of such franchised corporation, on  the
 condition  that  such horsemen's organization shall expend as much as is
 necessary, but not to exceed one-half of one percent of such total  sum,
 to acquire and maintain the equipment required to establish a program at
 a  state  college  within  this  state  with  an approved equine science
 program to test for the presence of steroids in horses, provided further
 that the qualified organization shall also, in an amount  to  be  deter-
 mined  by  its  board of directors, annually include in its expenditures
 for benevolence programs, funds to  support  an  organization  providing
 services  necessary  to backstretch employees, and, in the case of every
 other corporation, to  pay  such  one  percent  sum  of  purses  to  the
 horsemen's  organization  or  its  successor  that was first entitled to
 receive payments pursuant to this section in accordance  with  rules  of
 the  commission  adopted  effective  May  twenty-third, nineteen hundred
 eighty-six representing at least fifty-one percent  of  the  owners  and
 trainers [utilizing] USING the facilities of such corporation.
   In  either  case,  any  other horsemen's organization may apply to the
 [board] COMMISSION to be  approved  as  the  qualified  organization  to
 receive  payment  of  the one percent of all purses by submitting to the
 [board] COMMISSION proof of both,  that  (i)  it  represents  more  than
 fifty-one  percent  of all the owners and trainers [utilizing] USING the
 same facilities and (ii) the horsemen's organization previously approved
 as qualified by the [board]  COMMISSION  does  not  represent  fifty-one
 percent of all the owners and trainers [utilizing] USING the same facil-
 ities.  If  the  [board]  COMMISSION is satisfied that the documentation
 submitted with the application of any other horsemen's  organization  is
 conclusive  with  respect  to [items] SUBPARAGRAPHS (i) and (ii) of this
 paragraph, [it] THE COMMISSION may approve the applicant as  the  quali-
 fied recipient organization.
   In  the best interests of racing, upon receipt of such an application,
 the [board] COMMISSION may direct the payments to the previously  quali-
 fied horsemen's organization to continue uninterrupted, or it may direct
 the  payments to be withheld and placed in interest-bearing accounts for
 a period not to exceed  ninety  days,  during  which  time  the  [board]
 COMMISSION shall review and approve or disapprove the application. Funds
 held  in  such  manner shall be paid to the organization approved by the
 [board] COMMISSION.  In no event shall  the  [board]  COMMISSION  accept
 more  than  one  such  application  in  any  calendar year from the same
 horsemen's organization.
   The funds authorized to be paid by the [board] COMMISSION  are  to  be
 used  exclusively  for  the benefit of those horsemen racing in New York
 state through the administrative purposes of  such  qualified  organiza-
 tion,  benevolent activities on behalf of backstretch employees, and for
 the promotion of equine research.
   § 21. Section 229 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:
   § 229. Backstretch employees drug and alcohol rehabilitation eligibil-
 ity. Any licensed not-for-profit organization providing drug and alcohol
 rehabilitation  services to backstretch employees shall receive informa-
 tion concerning available funding and existing programs from  a  coordi-
 nated  effort  of the [board] COMMISSION and division of substance abuse
 services.

 S. 7639                            18
 
   § 22. Section 232 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as separately amended by chapter 18 and chapter 530 of the laws of
 2008, is amended to read as follows:
   §  232.  License  to  conduct pari-mutuel betting at race meetings for
 running races or steeplechases. 1.  Any  corporation,  at  the  time  of
 making  application  to the [state racing and wagering board] COMMISSION
 for a license to conduct a race course or a  race  meeting  for  running
 races  or  steeplechases,  or  at  such  subsequent  time as the [board]
 COMMISSION may permit, may  apply  to  such  [board]  COMMISSION  for  a
 license to conduct at such race meeting pari-mutuel betting on the races
 to  be  run  thereat.  The  [board] COMMISSION may prescribe the form in
 which such application shall be made and the information to be furnished
 by such corporation. If the [board be] COMMISSION IS satisfied from such
 application, or from other sources of information, that the racetrack of
 such corporation for which such application is made has  facilities  and
 equipment sufficient to accommodate its probable number of patrons, [it]
 THE  COMMISSION  shall  issue  to  such corporation a license to conduct
 pari-mutuel  betting  in  the  manner  and  subject  to  the  conditions
 prescribed  by  this chapter, at the racetrack described in such license
 on the days specified in such license.
   2. The refusal of an application for such license shall be preceded by
 notice and an opportunity to be heard. In the conduct  of  such  hearing
 the [board] COMMISSION shall not be bound by technical rules of evidence
 but  all evidence offered before the [board] COMMISSION shall be reduced
 to writing, and such evidence together with the exhibits,  if  any,  and
 the  findings  of the [board] COMMISSION, shall be permanently preserved
 and shall constitute the record of the [board] COMMISSION in such  case.
 Such hearing may be presided over by the [chairman] CHAIR of the [board]
 COMMISSION  or  by any member or by an officer of the [board] COMMISSION
 designated by the [chairman] CHAIR in writing to act as hearing  officer
 and  such person or persons may issue subpoenas for witnesses and admin-
 ister oaths to witnesses. The hearing officer, at the conclusion of  the
 hearing  shall  make  findings which, if concurred in by [two members] A
 MAJORITY of the [board] COMMISSION, shall become  the  findings  of  the
 [board]  COMMISSION.  The action of the [board] COMMISSION in refusing a
 license shall be reviewable in the supreme court in the manner  provided
 by the provisions of article seventy-eight of the civil practice law and
 rules.
   §  23.  Section  233  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:
   § 233. Bond required of corporation conducting pari-mutuel betting. 1.
 Every corporation franchised or licensed by the [state racing and wager-
 ing board] COMMISSION  to  conduct  pari-mutuel  betting,  annually  and
 before  the opening of any race meeting, shall execute and file with the
 state comptroller, a bond to the state in a penalty to be fixed  by  the
 commissioner of taxation and finance not exceeding five hundred thousand
 dollars,  with  sureties  approved by the attorney general, that it will
 keep its books and records and make reports as required by this chapter,
 that it will pay to the state all taxes imposed by this chapter, that it
 will distribute to the patrons of pari-mutuel pools conducted by it  all
 sums  due upon presentation of winning tickets held by them, and that it
 will otherwise comply  with  all  the  provisions  of  this  chapter  in
 relation to the conduct of races and of pari-mutuel betting on its race-
 track.

 S. 7639                            19
 
   2.  In addition hereto, every such corporation first licensed or fran-
 chised after January first, nineteen hundred  eighty-six,  annually  and
 before  the  opening of any race meeting shall execute and file with the
 state comptroller, a bond to the state in a penalty to be fixed  by  the
 [board]  COMMISSION  not  exceeding  five hundred thousand dollars, with
 sureties approved by the attorney general, that  [it]  SUCH  CORPORATION
 will  make all purse payments advertised and offered as premiums, prizes
 or awards to owners of horses competing in races at  such  track  within
 one  week  of  such  race,  or,  if  such payment is ordered held by the
 [board] COMMISSION pending investigation by it of any race, into a trust
 account pending completion of such investigation.
   § 24. Section 234 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:
   §  234. Place and manner of conducting pari-mutuel betting. Any corpo-
 ration licensed or franchised to conduct pari-mutuel betting at a  horse
 race  meeting  shall  provide  a place or places within the race meeting
 grounds or enclosure at which such licensee or franchisee shall  conduct
 the  pari-mutuel  system of betting by its patrons on the results of the
 horse races at such meeting. Such place or places shall be provided with
 necessary equipment for issuing  or  vending  pari-mutuel  tickets,  and
 adding  machine  equipment  and  a device capable of accurate and speedy
 determination of the amount of money in each pool and on each horse  and
 the  amount  of  award or dividend to winning patrons and displaying the
 same to its patrons. Such place shall also be equipped with automatic or
 hand-operated machinery for displaying on a mutuel  indicator  in  plain
 view  of  the public, the total amount of sales separately for straight,
 place and show on every race and on each horse in such race. The machine
 or mutuel indicator shall also display the approximate straight odds  on
 each horse in any race; the value of a two-dollar winning mutuel ticket,
 straight,  place  and  show,  on the first three horses in any race; the
 elapsed time of the race; the value of a two-dollar daily double ticket,
 if a daily double be conducted; and any other information  that  may  be
 necessary  for the guidance of the general public that the [state racing
 and wagering board] COMMISSION may require. All such machines and equip-
 ment must be approved by the [board] COMMISSION and  the  department  of
 taxation and finance before being used, but the [board] COMMISSION shall
 not  require  the  installation  of any particular make of mechanical or
 electrical equipment.
   § 25. Section 235 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:
   §  235.  Rules  for  the conduct of pari-mutuel betting. 1. The [state
 racing and wagering board] COMMISSION shall make  rules  regulating  the
 conduct of pari-mutuel betting, as authorized pursuant to this chapter.
   2.  The  rules shall provide that all winning pari-mutuel tickets must
 be presented for payment before April first of the  year  following  the
 year of their purchase and failure to present any such ticket within the
 prescribed  period  of  time  shall  constitute a waiver of the right to
 participate in the award or dividend.
   3. The department of taxation and finance is hereby charged  with  the
 financial  administration of pari-mutuel betting as herein described and
 as supplemented by the rules and regulations of the  [state  racing  and
 wagering  board]  COMMISSION.    The  department of taxation and finance
 shall have authority to prescribe the forms and the system of accounting
 to be employed and through its representatives shall at all  times  have

 S. 7639                            20
 
 access  to  the issuing or vending machines, the adding machines and all
 other pari-mutuel betting equipment.
   § 26. Subdivisions 1, 2 and 3 of section 236 of the racing, pari-mutu-
 el  wagering  and breeding law, subdivision 1 as amended by section 1 of
 part BB of chapter 60 of the laws of 2016, and subdivisions 2 and  3  as
 amended  by  chapter  18  of  the  laws  of 2008, are amended to read as
 follows:
   1. Every corporation authorized under this chapter to conduct pari-mu-
 tuel betting at a race meeting on races run thereat, except as  provided
 in  section two hundred thirty-eight of this article with respect to the
 franchised corporation, shall distribute all sums deposited in any pari-
 mutuel pool to the holders of winning tickets  therein,  providing  such
 tickets  be presented for payment before April first of the year follow-
 ing the year of their purchase, less an amount that shall be established
 and retained by such racing corporation of between  fourteen  to  twenty
 percent  of  the total deposits in pools resulting from regular on-track
 bets and less sixteen to twenty-two percent of  the  total  deposits  in
 pools  resulting  from  multiple on-track bets and less twenty to thirty
 percent of the total deposits in pools resulting  from  exotic  on-track
 bets  and less twenty to thirty-six percent of the total pools resulting
 from super exotic on-track bets, plus the breaks. The retention rate  to
 be  established is subject to the prior approval of the [gaming] commis-
 sion.  Such rate may not be changed more than once per calendar  quarter
 to  be effective on the first day of the calendar quarter. "Exotic bets"
 and "multiple bets" shall have the meanings set forth  in  section  five
 hundred  nineteen  of  this chapter and breaks are hereby defined as the
 odd cents over any multiple of five for payoffs greater than one  dollar
 five  cents  but  less  than  five dollars, over any multiple of ten for
 payoffs greater than five dollars but  less  than  twenty-five  dollars,
 over  any  multiple  of twenty-five for payoffs greater than twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty for payoffs over two hundred fifty dollars.  "Super  exotic  bets"
 shall  have  the  meaning set forth in section three hundred one of this
 chapter. Of the amount so retained there shall be paid  by  such  corpo-
 ration  to the department of taxation and finance as a reasonable tax by
 the state for the privilege of conducting  pari-mutuel  betting  on  the
 races  run  at  the  race meeting held by such corporation, which tax is
 hereby levied, the following percentages of the total pool, plus  fifty-
 five  percent of the breaks; the applicable rates for regular and multi-
 ple bets shall be one and one-half percent;  the  applicable  rates  for
 exotic  bets  shall  be six and three-quarter percent and the applicable
 rate for super exotic bets shall be  seven  and  three-quarter  percent.
 Effective  on  and  after September first, nineteen hundred ninety-four,
 the applicable tax rate shall be one percent  of  all  wagers,  provided
 that,  an  amount  equal to one-half the difference between the taxation
 rate for on-track regular, multiple and exotic bets as of December thir-
 ty-first, nineteen hundred ninety-three and the rates on  such  on-track
 wagers  as  herein  provided  shall  be  used  exclusively  for  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-quarter  of
 one percent on all on-track bets of any such racing corporation that did
 not  expend  an  amount equal to at least one-half of one percent of its
 on-track  bets  during  the  immediately  preceding  calendar  year  for
 enhancements  consisting  of  capital improvements as defined by section
 two hundred thirty-seven of this article, repairs to its physical plant,

 S. 7639                            21
 
 structures, and equipment used in its racing or wagering  operations  as
 certified by the [gaming] commission 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 other-
 wise conducted in the ordinary course of business, the purpose of  which
 shall  be to encourage, attract and promote track attendance and encour-
 age new and continued patronage, which events shall be  subject  to  the
 prior  approval of the [gaming] commission for purposes of this subdivi-
 sion. In the determination of the amounts  expended  for  such  enhance-
 ments,  the  [gaming]  commission may consider the immediately preceding
 twelve-month calendar period or  the  average  of  the  two  immediately
 preceding twelve-month calendar periods. Provided further, however, that
 of  the  portion  of  the increased amounts retained by such corporation
 above those amounts retained in nineteen hundred eighty-four, an  amount
 of  such  increase shall be distributed to purses in the same proportion
 as commissions and  purses  were  distributed  during  nineteen  hundred
 eighty-four as certified by the [gaming] commission. Such corporation in
 the  second zone shall receive a credit against the daily tax imposed by
 this subdivision in an amount equal to four-tenths  of  one  percent  of
 total  daily  pools  resulting  from the simulcast of such corporation's
 races to licensed facilities  operated  by  regional  off-track  betting
 corporations in accordance with section one thousand eight of this chap-
 ter,  provided  however, that sixty percent of the amount of such credit
 shall be  used  exclusively  to  increase  purses  for  overnight  races
 conducted  by  such corporation; and, provided further, that in no event
 shall such total daily credit exceed four-tenths of one percent  of  the
 total daily pool of such corporation.
   Such corporation shall pay to the New York state thoroughbred breeding
 and development fund one-half of one percent of the total daily on-track
 pari-mutuel  pools  from  regular,  multiple  and exotic bets, and three
 percent of super exotic bets. The corporation shall receive credit as  a
 reduction  of the tax by the state for the privilege of conducting pari-
 mutuel betting for the amounts, except amounts paid  from  super  exotic
 betting  pools,  paid  to  the  New York state thoroughbred breeding and
 development fund after January first, nineteen hundred seventy-eight.
   Such corporation shall distribute to purses an amount equal  to  fifty
 percent of any compensation it receives from simulcasting or from wager-
 ing  conducted  outside the United States. Such corporation shall pay to
 the [gaming] commission as a regulatory fee, which fee is hereby levied,
 six-tenths of one percent of the total daily on-track pari-mutuel  pools
 of such corporation.
   2.  The  balance  of  the  retained percentage of such pool and of the
 breaks shall be held by such corporation for its own use  and  purposes,
 except that in addition to any payments to purses provided for in subdi-
 vision  one  of  this  section, an amount equal to two and one-half [per
 centum] PERCENT of the total pools resulting from on-track regular  bets
 and  exotic  bets and an amount equal to three and one-half [per centum]
 PERCENT of the total pools resulting from on-track multiple bets and  an
 amount  equal  to  twelve  [per centum] PERCENT of on-track super exotic
 bets shall be used exclusively for  the  purpose  of  increasing  purses
 (including  stakes,  premiums  and  prizes)  awarded  to horses in races
 conducted by such  corporation.  Such  two  and  one-half  [per  centum]
 PERCENT and three and one-half [per centum] PERCENT shall be in addition
 to  (i)  four  and  one-half  [per  centum]  PERCENT of such total pools
 resulting from regular and multiple wagers and five  and  one-half  [per
 centum]  PERCENT  of  such  total pools resulting from exotic wagers, or

 S. 7639                            22
 
 (ii) the percentage of such  total  pools  used  for  purses  (including
 stakes,  premiums  and  prizes) during the year nineteen hundred eighty-
 two, whichever is larger. Such percentage of the total  pools  mentioned
 in this subdivision shall be used for purses (including stakes, premiums
 and  prizes)  in  races hereafter conducted by such corporation, and any
 portion not so used during any year shall be so used during the  follow-
 ing year, failing which such portion shall be payable to the commission-
 er  of  taxation and finance as additional tax. The [racing and wagering
 board] COMMISSION shall report annually, on or before July first, to the
 director of the budget, the  [chairman]  CHAIR  of  the  senate  finance
 committee  and  the  [chairman]  CHAIR  of  the  assembly ways and means
 committee the extent to  which  such  corporation  [utilized]  USED  and
 retained  percentages  and breakage for operations, maintenance, capital
 improvements, advertising  and  promotion,  administration  and  general
 overhead  and  evaluate  the effectiveness and make recommendations with
 respect to the application of the reduced rates of taxation as  provided
 for  in  subdivision one of this section in accomplishing the objectives
 stated therein. Such report  shall  also  specify  the  amount  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.
   3. Tax rates in event of a  failure  to  maintain  pari-mutuel  racing
 activity.  a. Notwithstanding any other provision of this section to the
 contrary, for any calendar year commencing on or  after  January  first,
 nineteen  hundred eighty-nine, in which a racing corporation in zone two
 does not conduct a minimum number of pari-mutuel programs and pari-mutu-
 el races at its facilities equal to at least ninety [per centum] PERCENT
 of the programs and races so conducted during nineteen  hundred  eighty-
 five  or  during nineteen hundred eighty-six, whichever is less, in lieu
 of the tax rates set forth in subdivision one of this section the appli-
 cable pari-mutuel  tax  rates  for  such  corporation  with  respect  to
 on-track  pari-mutuel  betting pools during such year shall be increased
 by one [per centum] PERCENT of  regular,  multiple  and  exotic  betting
 pools.    Notwithstanding  the  foregoing, no increase shall be proposed
 unless such corporation has been afforded notice and opportunity  to  be
 heard. The [racing and wagering board] COMMISSION shall promulgate rules
 and regulations to implement the provisions relating to notice and hear-
 ing.
   b. The provisions of this subdivision shall not apply to a corporation
 for  any  calendar  year for which the [state racing and wagering board]
 COMMISSION certifies to the commissioner of taxation and finance:
   (i) by December fifteenth of the year immediately preceding such year,
 that such corporation has been assigned for such year, from the programs
 and races it requested, at least the  minimum  number  of  programs  and
 races  prescribed  in paragraph a of this subdivision, or, if fewer than
 such number were assigned for such year, that  the  assignment  of  such
 lesser  number  was  for good cause due to factors beyond the control of
 such corporation or because the [board] COMMISSION found that  it  would
 be  uneconomical  or impractical for such corporation to be assigned the
 prescribed number; and

 S. 7639                            23
 
   (ii) by January thirty-first of the  year  immediately  subsequent  to
 such year, that such corporation did conduct such number of programs and
 races  as were certified pursuant to subparagraph (i) of this paragraph,
 or if it failed to conduct such number that such failure  was  for  good
 cause  due  to factors beyond its control or because the [board] COMMIS-
 SION found it  uneconomical  or  impractical  for  such  corporation  to
 conduct such a number.
   c.  For  any  calendar  year  for which the [state racing and wagering
 board] COMMISSION does not certify pursuant to the provisions of subpar-
 agraph (i) of paragraph b of this subdivision with respect to  a  corpo-
 ration,  the tax imposed by this section shall be computed by substitut-
 ing the provisions of paragraph a of this subdivision for the provisions
 of subdivision one of this section and shall pay the tax so computed  to
 the  commissioner  of  taxation  and  finance.  In  such computation and
 payment, all other provisions of this section  shall  apply  as  if  the
 provisions  of this paragraph and of paragraph a of this subdivision had
 been incorporated in whole in subdivision one of this section.
   d. For any calendar year for which  the  [state  racing  and  wagering
 board] COMMISSION does not certify pursuant to the provisions of subpar-
 agraph  (ii) of paragraph b of this subdivision with respect to a corpo-
 ration, the tax required to be paid hereunder for  such  year  shall  be
 equal  to the difference between the tax imposed pursuant to paragraph a
 of this subdivision and the tax imposed pursuant to  the  provisions  of
 subdivision  one  of  this  section  less one-half of such difference in
 recognition of purses [which] THAT were required to  be  paid,  plus  an
 additional  amount  equal to ten [per centum] PERCENT of such tax in the
 event of a willful failure to comply with the provisions of subparagraph
 (ii) of paragraph b of this subdivision, and such corporation shall  pay
 the  tax  so  computed to the commissioner of taxation and finance on or
 before March  fifteenth  of  the  following  year.  Notwithstanding  the
 provisions  of  this subdivision, in the event that upon appeal from the
 determination of the [state racing and wagering board]  COMMISSION  that
 the  certification  provided in paragraph b of this subdivision will not
 be made, it is finally determined that [such board  was  erroneous]  THE
 COMMISSION  ERRED  in failing to so certify and that any moneys received
 by the commissioner of taxation and finance under paragraph  c  of  this
 subdivision  were  paid in error, the same shall be refunded at the rate
 of interest of six percent per annum. Payment of  such  balance  of  tax
 due,  or the anticipation of such payment, shall not affect the determi-
 nation of purses in the year in which such tax arises or in the year  in
 which such payment is made nor shall such payment in any other manner be
 considered  in  any  statutory or contractual calculation of purse obli-
 gations.
   e. Written notice of  the  certification  of  the  [board]  COMMISSION
 pursuant  to  the provisions of paragraph b of this subdivision shall be
 given by the [board] COMMISSION to the  applicable  corporation  by  the
 dates  therein  specified.  In  like  manner,  written  notice that such
 certification will not be made shall be given by the [board]  COMMISSION
 to  the  commissioner  of taxation and finance and the applicable corpo-
 ration by such dates.
   § 27. Section 237 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:
   §  237.  Capital  improvements.  1. [Definitions.] For the purposes of
 this section, [the following terms shall have  the  meanings  set  forth
 unless the context requires a different meaning:

 S. 7639                            24

   a. "Board" shall mean the New York state racing and wagering board.
   b.  "Capital]  "CAPITAL  improvement"  shall  mean  any  addition  to,
 replacement of or remodeling  of  the  physical  plant,  structures  and
 equipment  now  or  hereafter  owned  or  leased by a racing corporation
 [which] THAT is used or is to be used by such corporation in  connection
 with  the conduct of horse race meetings, and shall include improvements
 to land but not land itself.
   2. (a) Any non-franchised corporation authorized under this chapter to
 conduct pari-mutuel betting at a race meeting on races run thereat,  may
 elect upon thirty days written notice to the [racing and wagering board]
 COMMISSION  to  withhold  from  the  pari-mutuel pool in addition to any
 other amounts required by this section, one [per centum] PERCENT of  the
 total  deposits  in  pools  resulting from regular and multiple on-track
 bets; provided, however, that any such corporation withholding  pursuant
 to  this  subdivision  shall use at least fifty percent of such one [per
 centum] PERCENT exclusively  for  capital  improvements  as  defined  in
 subdivision  one of this section subject to the rules and regulations of
 the [racing and wagering board] COMMISSION. An  amount,  not  to  exceed
 fifty  percent  of such one [per centum] PERCENT, may be used for adver-
 tising and promotion expenses subject to the rules  and  regulations  of
 the  [board]  COMMISSION.  For  the  purposes of this paragraph the term
 "advertising" shall be limited to paid advertising through radio,  tele-
 vision,  the  print  media,  direct mail or billboards. Promotions shall
 mean activities [which] THAT are intended to increase the attendance at,
 or visibility of, any such corporation and shall include premium  [give-
 aways]  GIVEAWAYS,  prizes, free admission, free parking, free programs,
 additional monies for purses or other activities of a promotional nature
 [which] THAT stimulate [on track] ON-TRACK attendance. In no event shall
 this section be construed to permit the payment of salaries to employees
 of any such corporation who are engaged in  advertising  or  promotional
 activities,  provided,  however,  that  monies  credited to such capital
 improvement account on or before July first,  nineteen  hundred  ninety-
 six,  as  certified by the [board] COMMISSION, shall not be expended for
 any such advertising and promotion  as  defined  herein.  Such  election
 shall  terminate  upon thirty days written notice to the [board] COMMIS-
 SION.
   (b) At least once annually,  prior  to  approving  any  plan  for  the
 expenditure  of such capital improvement funds pursuant to this section,
 the [board] COMMISSION shall,  together  with  the  track  operator  and
 representatives  of  the horsemen's organization representing owners and
 trainers [utilizing] USING the facility and representatives of the jock-
 eys organization representing licensed jockeys  and  apprentice  jockeys
 regularly  riding  or  exercising  at  such facility, inspect the entire
 facility, including the area commonly referred to as the backstretch, in
 order to determine whether the capital improvement plan submitted by the
 corporation for [board] COMMISSION approval includes adequate  provision
 for expenditures relating to the continued health, safety and well-being
 of patrons, jockeys, backstretch personnel and the horses in their care.
 After  such  inspection,  if the [board] COMMISSION shall determine that
 such proposed plan does not include adequate provision for  repairs  and
 improvements  necessary to correct any conditions that it has determined
 to be unsafe or otherwise  deleterious  to  the  health  and  safety  of
 patrons,  jockeys,  employees  or  horses,  the [board] COMMISSION shall
 require the track operator to modify its  capital  improvement  plan  to
 provide for the expenditure of funds for such repairs and improvements.

 S. 7639                            25
 
   3. On or after July first, nineteen hundred ninety such amounts as may
 be  withheld  for  the  purposes of this section shall be deposited in a
 trust fund, kept and maintained by such corporation and administered  by
 a trustee approved by the [racing and wagering board] COMMISSION for the
 purpose  of  lending  such sums and any interest thereon on an unsecured
 basis to  such  corporation  exclusively  for  capital  improvements  as
 defined in subdivision one of this section. All such amounts borrowed by
 such  corporation from such trust shall be forgiven and deemed satisfied
 according to a schedule of depreciation deductions for federal  and  New
 York state income tax purposes for such related capital improvements. It
 is  further provided that at such time as such corporation shall surren-
 der its pari-mutuel license or franchise or fail to apply for a pari-mu-
 tuel license for the succeeding year by  December  thirty-first  of  the
 preceding  year  that  the  [racing  and  wagering board] COMMISSION may
 declare the trust fund at an end and all sums therein deposited plus all
 sums due or owing from such corporation to such trust shall be  disposed
 of  in accordance with provisions of law to be enacted for such purpose.
 Such trust shall be established and administered pursuant to  the  rules
 and regulations of the [racing and wagering board] COMMISSION.
   § 28. Subdivision 1 and paragraph c of subdivision 2 of section 238 of
 the racing, pari-mutuel wagering and breeding law, as amended by chapter
 18  of  the  laws  of 2008, paragraph (a) of subdivision 1 as amended by
 section 9 of part HH of chapter 59 of the laws of 2019, paragraph (d) of
 subdivision 1 as amended by section 2 of part BB of chapter  60  of  the
 laws  of  2016 and subparagraph (i) of paragraph (d) of subdivision 1 as
 amended by section 3 of part NN of chapter 59 of the laws of  2017,  are
 amended to read as follows:
   1.  (a)  The  franchised  corporation authorized under this chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets  therein,  provided such tickets [be] ARE presented for
 payment before April first of the  year  following  the  year  of  their
 purchase,  less an amount [which] THAT shall be established and retained
 by such franchised corporation  of  between  twelve  to  seventeen  [per
 centum]  PERCENT  of the total deposits in pools resulting from on-track
 regular bets, and fourteen to twenty-one [per  centum]  PERCENT  of  the
 total  deposits  in  pools  resulting  from  on-track  multiple bets and
 fifteen to twenty-five [per centum] PERCENT of  the  total  deposits  in
 pools resulting from on-track exotic bets and fifteen to thirty-six [per
 centum]  PERCENT  of the total deposits in pools resulting from on-track
 super exotic bets, plus the breaks. The retention rate to be established
 is subject to the prior approval of the [gaming] commission.
   Such rate may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the

 S. 7639                            26
 
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages  of  the  total pool for regular and multiple bets five [per
 centum] PERCENT of regular bets and four [per centum] PERCENT of  multi-
 ple  bets  plus  twenty  [per  centum] PERCENT of the breaks; for exotic
 wagers seven and one-half [per centum] PERCENT plus twenty [per  centum]
 PERCENT of the breaks, and for super exotic bets seven and one-half [per
 centum] PERCENT plus fifty [per centum] PERCENT of the breaks.
   For  the  period  [June  first,  nineteen  hundred ninety-five through
 September ninth, nineteen  hundred  ninety-nine,  such  tax  on  regular
 wagers  shall  be three per centum and such tax on multiple wagers shall
 be two and one-half per centum, plus twenty per centum  of  the  breaks.
 For  the  period  September  tenth, nineteen hundred ninety-nine through
 March thirty-first, two thousand one, such tax on all  wagers  shall  be
 two and six-tenths per centum and for the period] April first, two thou-
 sand one through December thirty-first, two thousand twenty, such tax on
 all  wagers  shall  be one and six-tenths [per centum] PERCENT, plus, in
 each such period, twenty [per centum] PERCENT of the breaks. Payment  to
 the  New  York  state thoroughbred breeding and development fund by such
 franchised corporation shall be one-half of one [per centum] PERCENT  of
 total  daily on-track pari-mutuel pools resulting from regular, multiple
 and exotic bets and three [per centum]  PERCENT  of  super  exotic  bets
 [provided,  however,  that  for  the  period  September  tenth, nineteen
 hundred ninety-nine through March thirty-first, two thousand  one,  such
 payment  shall  be six-tenths of one per centum of regular, multiple and
 exotic pools] and for the period April first, two thousand  one  through
 December  thirty-first,  two  thousand  twenty,  such  payment  shall be
 seven-tenths of one [per centum] PERCENT of [such] REGULAR, MULTIPLE AND
 EXOTIC pools.
   (b) An amount equal to fifty [per centum] PERCENT of any  compensation
 received  by a franchised corporation from simulcasting or from wagering
 conducted outside the United States or outside New York state and within
 the United States shall be distributed to purses, except with respect to
 such compensation received from Connecticut which shall be computed as a
 percentage of wagering handle in a manner approved by the [state  racing
 and wagering board] COMMISSION.
   (c)  An amount equal to fifty [per centum] PERCENT of any compensation
 received by the franchised corporation from simulcasting or from  wager-
 ing conducted outside the United States shall be distributed to purses.
   (d)  (i)  The pari-mutuel tax rate authorized by paragraph (a) of this
 subdivision shall be effective so long as a franchised corporation noti-
 fies the [gaming] commission by August fifteenth of each year that  such
 pari-mutuel  tax rate is effective of its intent to conduct a race meet-
 ing at Aqueduct racetrack during the months of December, January, Febru-
 ary, March and April. For purposes of this paragraph such  race  meeting
 shall  consist of not less than ninety-five days of racing unless other-
 wise agreed to in writing by the New York  Thoroughbred  Breeders  Inc.,
 the  New  York thoroughbred horsemen's association (or such other entity
 as is certified and approved pursuant to  section  two  hundred  twenty-
 eight  of  this  article) and approved by the commission. Not later than
 May first of each year that such pari-mutuel tax rate is effective,  the
 [gaming]  commission  shall determine whether a race meeting at Aqueduct
 racetrack consisted of the number of days as required by this paragraph.
 In determining the number of race  days,  cancellation  of  a  race  day
 because  of  an  act  of  God  that  the [gaming] commission approves or

 S. 7639                            27
 
 because of weather conditions that are unsafe or hazardous [which]  THAT
 the  [gaming] commission approves shall not be construed as a failure to
 conduct a race day. Additionally, cancellation of a race day because  of
 circumstances  beyond  the  control  of  such franchised corporation for
 which the [gaming] commission gives approval shall not be construed as a
 failure to conduct a race day. If  the  [gaming]  commission  determines
 that the number of days of racing as required by this paragraph have not
 occurred then the pari-mutuel tax rate in paragraph (a) of this subdivi-
 sion  shall revert to the pari-mutuel tax rates in effect prior to Janu-
 ary first, nineteen hundred ninety-five.
   (ii) Such franchised corporation shall pay to the [gaming]  commission
 as  a  regulatory  fee,  which  fee  is hereby levied, six-tenths of one
 percent of the total daily on-track pari-mutuel pools of such franchised
 corporation.
   c. An amount equal to three [per centum] PERCENT of  the  total  pools
 resulting  from  on-track  regular bets and an amount equal to [four per
 centum] FIVE AND NINETY-FOUR  HUNDREDTHS  PERCENT  of  the  total  pools
 resulting  from  on-track  multiple  and  exotic  bets,  and twelve [per
 centum] PERCENT of the total pools  resulting  from  super  exotic  bets
 shall  be  used  exclusively  for purses (including stakes, premiums and
 prizes) awarded  in  races  conducted  by  such  franchised  corporation
 [provided,  however, that during the period June first, nineteen hundred
 ninety-five through September ninth, nineteen hundred ninety-nine,  such
 amounts for on-track regular and on-track multiple bets shall be two and
 thirty-five  hundredths  per  centum  and  five and one-half per centum,
 respectively.  During the period September tenth, nineteen hundred nine-
 ty-nine through March thirty-first, two thousand one, such  amounts  for
 on-track  regular,  multiple  and  exotic  bets  shall  be five and four
 hundredths per centum and for the period April first, two  thousand  one
 through  July  twenty-fourth, two thousand one and after June thirtieth,
 two thousand four, such amount for such bets shall be five  and  ninety-
 four hundredths per centum and on and after July twenty-fifth, two thou-
 sand one through June thirtieth, two thousand four, such amounts for all
 on-track  bets  shall  be  five  and  forty  hundredths per centum]. Any
 portion of such [per centum] PERCENT not so used during any  year  shall
 be  so  used  during the following year, failing which [it] SUCH PORTION
 shall be payable to the commissioner as additional tax. Such  additional
 tax  shall be payable on or before April first in the year following the
 year in which [it] SUCH PORTION is not so used  and  the  provisions  of
 paragraph a of this subdivision shall be applicable thereto except as to
 the time of payment.
   §  29.  Section  240  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:
   § 240. Yearly audit. 1. The franchised corporation shall, at  its  own
 expense,  cause its annual financial statements to be audited in accord-
 ance with generally accepted auditing standards by a qualified independ-
 ent certified public accountant  approved  by  the  franchise  oversight
 board.  The  annual  financial statements shall be prepared on a compar-
 ative basis for the current and prior fiscal year and shall present  the
 financial position and results of operations in conformity with general-
 ly  accepted  accounting principles. Three manually-signed copies of the
 audited financial statements, together with the report  thereon  of  the
 franchised  corporation's  independent certified public accountant shall
 be filed: one with the FRANCHISE OVERSIGHT board, one  with  such  fran-
 chised  corporation and one with the office of the attorney general, not

 S. 7639                            28
 
 later than ninety days following the end of the fiscal  year.  All  such
 annual  financial statements and yearly audits shall be subject to audit
 by the state comptroller and shall be public records.
   2.  The franchised corporation shall require the independent certified
 public accountant to render the following additional reports:
   a. a report on material weakness in accounting, internal controls, and
 business and management practices discovered in the ordinary  course  of
 preparing  such audited financial statements. Whenever in the opinion of
 the independent certified public accountant  there  exists  no  material
 weaknesses  in accounting, internal controls and business and management
 practices, no report [will] SHALL be required; and
   b. a report expressing the opinion of the independent certified public
 accountant that based on his OR HER examination of the financial  state-
 ments the franchised corporation has followed, in all material respects,
 during  the  period  covered  by  his  OR HER examination, the system of
 accounting and internal control as filed with  the  FRANCHISE  OVERSIGHT
 board.  Whenever  in  the  opinion  of  the independent certified public
 accountant the franchised corporation has deviated from  the  system  of
 accounting  and  internal  controls  filed  with the FRANCHISE OVERSIGHT
 board or the accounts, records, and control procedures examined are  not
 maintained  by  the  franchised corporation in accordance with generally
 accepted accounting standards the  report  shall  enumerate  such  devi-
 ations. The independent certified public accountant shall also report on
 areas  of  the  system  no  longer  considered effective, and shall make
 recommendations in writing  regarding  improvements  in  the  system  of
 accounting and internal controls.
   3.  If  the independent certified public accountant who was previously
 engaged to  audit  the  franchised  corporation's  financial  statements
 resigns  or  is  dismissed  as  the franchised corporation's auditor, or
 another independent certified public accountant is engaged  as  auditor,
 the  franchised corporation shall file a report with the FRANCHISE OVER-
 SIGHT board within ten days following the end of the month in which such
 event occurs, setting forth the following:
   a. the date of such resignation, dismissal, or engagement;
   b. whether in connection with the audits of the two most recent  years
 preceding  such  resignation,  dismissal,  or  engagement there were any
 disagreements with the former accountant on  any  matter  of  accounting
 principles  or  practices,  financial  statement disclosure, or auditing
 scope or procedure, which disagreements if not resolved to the satisfac-
 tion of the former accountant would have caused [him] SUCH ACCOUNTANT to
 make reference in connection with [his] SUCH ACCOUNTANT'S report to  the
 subject matter of the disagreement; including a description of each such
 disagreement.  The  disagreements  to be reported include those resolved
 and those not resolved; and
   c. whether the former accountant's report on the financial  statements
 for any of the past two years contained an adverse opinion or disclaimer
 of  opinion  or  was  qualified.  The  nature  of  such adverse opinion,
 disclaimer of opinion, or qualification shall be described.
   4. Upon direction of the FRANCHISE  OVERSIGHT  board,  the  franchised
 corporation shall, at its own expense, cause its business and managerial
 practices to be audited.
   §  30.  Section  242  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:
   § 242. Races for horses bred in  the  state.  The  [state  racing  and
 wagering  board]  COMMISSION  in  granting a license to a corporation to

 S. 7639                            29
 
 conduct running or steeplechase races at  its  racetrack,  if  [it]  THE
 COMMISSION  deems  such requirement practicable, may require such corpo-
 ration to provide for at least one race  during  the  racing  season  in
 which the entries shall be exclusively horses foaled in this state.
   §  31.  Section  243  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 370 of the laws of 2011, is amended  to  read
 as follows:
   §  243.  Free  or  reduced  fee passes, cards or badges. A corporation
 licensed or franchised to conduct pari-mutuel betting on  races  run  on
 its  racetrack  may  issue free passes, cards or badges to any qualified
 person. A qualified person shall include, but need not  be  limited  to,
 officers  and  employees of the corporation conducting the race meeting,
 members, officers and employees of the [state racing and wagering board]
 COMMISSION, members and  employees  of  the  jockey  club,  members  and
 employees  of the national steeplechase and hunt association, members of
 turf organizations of other states and foreign countries,  public  offi-
 cers  engaged  in  the  performance  of  their  duties, persons actually
 employed and accredited by the press to attend  such  meetings,  owners,
 stable  managers, trainers, jockeys, jockey managers, grooms, concessio-
 naires, spouses, domestic partners and children of owners, trainers  and
 jockeys,  other  persons  whose  actual duties require their presence at
 such racetrack, and any other person or guest deemed appropriate by such
 corporation. In addition, free or reduced fee passes,  cards  or  badges
 may be issued to the general public or segments of the general public in
 connection  with any promotional campaign or marketing program sponsored
 by such corporation to increase attendance at live race meets. The issu-
 ance of free passes, cards or badges shall be under the rules and  regu-
 lations of the [state racing and wagering board] COMMISSION.
   §  32.  Section  244  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:
   § 244. Revocation of license  or  franchise.  The  [state  racing  and
 wagering  board] COMMISSION may revoke a license issued by it under this
 chapter or a franchise granted pursuant to section two  hundred  six  of
 this article if the corporation to which such license or franchise shall
 have been issued, or its officers or directors, shall not conduct racing
 at its track, including pari-mutuel betting on races thereat, in accord-
 ance  with  the  terms and conditions of such license or franchise, with
 the rules of [such board] THE COMMISSION and with the provisions of this
 chapter; or if such corporation or its officers or directors shall know-
 ingly permit on its grounds or within the enclosure  of  its  racetrack,
 lotteries, pool selling or bookmaking, or any other kind of gambling, in
 violation of this chapter or of the penal law.
   §  33.  Section  245  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:
   § 245. Hearing on refusal or revocation of license  or  franchise.  If
 the [state racing and wagering board shall refuse] COMMISSION REFUSES to
 grant  a  license  applied  for  under this [chapter] ARTICLE, or [shall
 determine] DETERMINES to revoke such a license granted by it or a  fran-
 chise pursuant to sections two hundred twelve and two hundred forty-four
 of  this  article, the [board] COMMISSION shall give to the applicant or
 licensee notice of a time and place for a  hearing  before  the  [board]
 COMMISSION,  at  which  the [board] COMMISSION will hear such applicant,
 licensee or franchise corporation in reference  thereto.    The  [board]
 COMMISSION  may  continue such hearing from time to time for the conven-

 S. 7639                            30
 
 ience of all parties. Any of the parties affected by such hearing may be
 represented by counsel, and the [board] COMMISSION may be represented by
 the attorney general or an assistant attorney general. In the conduct of
 such  hearing  the  [board]  COMMISSION  shall not be bound by technical
 rules of evidence, but all evidence offered before the  [board]  COMMIS-
 SION  shall  be  reduced to writing, and such evidence together with the
 exhibits, if any, and the findings of the [board] COMMISSION,  shall  be
 permanently  preserved  and  shall  constitute the record of the [board]
 COMMISSION in such case. In connection with such hearing, each member of
 the [board] COMMISSION shall have the  power  to  administer  oaths  and
 examine  witnesses,  and may issue subpoenas to compel the attendance of
 witnesses, and the production of all necessary reports,  books,  papers,
 documents,  correspondence  and  other  evidence. The [board] COMMISSION
 may, if occasion shall require, by order, refer to one or  more  of  its
 members,  the  duty  of  taking  testimony in such matter, and to report
 thereon to the [board] COMMISSION, but no determination  shall  be  made
 therein  except by the [board] COMMISSION. Within thirty days after such
 hearing, the [board] COMMISSION shall make  a  final  determination.  If
 [it]  THE  COMMISSION determines that such license shall not be granted,
 or that a license issued by [it] THE COMMISSION shall be revoked,  or  a
 franchise  revoked  pursuant  to  sections  two  hundred  twelve and two
 hundred forty-four of this article, [it] THE COMMISSION  shall  make  an
 order accordingly, and shall cause such order to be entered on [its] THE
 COMMISSION'S minutes and a copy thereof served on such applicant, licen-
 see  or  franchised  corporation,  as the case may be. The action of the
 [board] COMMISSION in refusing to grant a  license,  or  in  revoking  a
 license,  or  in  revoking  a franchise pursuant to sections two hundred
 twelve and two hundred forty-four of this article, shall  be  reviewable
 in the supreme court in the manner provided by the provisions of article
 seventy-eight of the civil practice law and rules.
   §  34.  Section  246  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:
   § 246. Approval of plans of corporation. The [state racing and  wager-
 ing  board] COMMISSION shall not grant to a corporation hereafter formed
 pursuant to this chapter, a license to conduct a running or steeplechase
 race meeting within the state until such corporation shall have  submit-
 ted  to  the  [board]  COMMISSION  a  statement  of  the location of its
 proposed grounds and racetrack, together with a plan of such  racetrack,
 and plans of all buildings, seating stands and other structures, in such
 form  as the [board] COMMISSION may prescribe, and such plans shall have
 been approved by the [board] COMMISSION. The [board] COMMISSION  at  the
 expense  of the applicant may order such engineering examination thereof
 as the [board] COMMISSION may deem necessary. Alterations of  buildings,
 seating  stands  or  other  structures, and the erection of new or addi-
 tional buildings, seating stands or other structures on the  grounds  of
 any  corporation heretofore or hereafter formed pursuant to this chapter
 may be made only with the approval of the [board] COMMISSION  and  after
 examination  and  inspection  of the plans thereof and the issuance of a
 permit therefor by such [board] COMMISSION.  The approval of the certif-
 icate of incorporation of such corporation shall not be deemed  to  vest
 in  it  the  right  to a license to conduct running or steeplechase race
 meetings at such race course or racetrack unless  such  grounds,  track,
 buildings,  seating stands and other structures [shall be] ARE completed
 in accordance with the plans approved by the [board] COMMISSION.

 S. 7639                            31

   § 35. Section 247 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:
   §  247.  Racing zones. There are hereby created two racing zones to be
 known as the first zone and  the  second  zone.  The  first  zone  shall
 include all of the counties in the first, second, ninth, tenth, eleventh
 and  twelfth  judicial  districts. The second zone shall include all the
 other counties of the state. Not more than six corporations shall  here-
 after be licensed by the [state racing and wagering board] COMMISSION or
 franchised  by  the  state  to conduct a race course or race meeting for
 running races or steeplechases at which  pari-mutuel  betting  shall  be
 authorized within the first zone, and not more than three of such corpo-
 rations  shall  hereafter  be  so  licensed  within the second zone. The
 [state racing and wagering board] COMMISSION shall not hereafter approve
 the incorporation of such a corporation for conducting a race course  or
 race meeting within the second zone if the location of the proposed race
 course  of  such  corporation  is  within seventy-five miles of the race
 course of another such corporation.
   § 36. Section 248 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:
   § 248. Racing season; allotment of dates for racing. In the assignment
 of  dates  by the [state racing and wagering board] COMMISSION to corpo-
 rations for conducting running races or steeplechases no conflict  shall
 be  deemed  to  exist  by reason of duplication of dates as between race
 meetings in the first zone and race meetings in the second zone, nor  as
 between  race  meetings  within a zone if the race courses at which such
 meetings are held are at least thirty-five miles apart in the first zone
 and at least seventy-five miles apart in the second zone, except that  a
 minimum  of  thirty-six  days of racing shall be assigned exclusively to
 the second zone unless the governor determines that a  sufficient  emer-
 gency  exists for reducing such number of days of racing, in which event
 the [state racing and wagering board] COMMISSION is then  authorized  to
 assign  a lesser number of days of racing to the second zone. The [state
 racing and wagering board] COMMISSION may separately  apportion  to  the
 several  corporations licensed or franchised to conduct running races or
 steeplechases as many of the racing days for the season, not  to  exceed
 the maximum number of racing days permitted by law.
   §  37.  Section  250  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 240 of the laws of 2010, is amended  to  read
 as follows:
   § 250. Power of [state racing and wagering board] COMMISSION to impose
 penalties.   [In] THE COMMISSION, IN addition to its power to suspend or
 revoke occupational licenses, licenses to conduct running races and race
 meetings or steeplechases and  steeplechase  meetings  and  licenses  to
 conduct pari-mutuel betting at a race course or race meeting for running
 races  or steeplechases issued by [it] THE COMMISSION, [the state racing
 and wagering board] is [hereby] authorized  to  impose  civil  penalties
 upon any such licensee or franchisee for a violation of any provision of
 this  chapter or the rules and regulations promulgated pursuant thereto,
 not exceeding [twenty-five thousand  dollars  for  each  violation]  THE
 AMOUNTS  SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER, which
 penalties shall be paid into the state treasury.  Each  day  upon  which
 such  violation continues may be considered by the [board] COMMISSION as
 a separate violation in assessing the amount  of  civil  penalty  to  be
 imposed. Any penalty so imposed shall be sued for by the attorney gener-

 S. 7639                            32
 
 al in the name of the people of the state of New York, if so directed by
 the  [board]  COMMISSION.    The  amount of the penalty collected by the
 [board] COMMISSION or recovered in any  such  action,  or  paid  to  the
 [board]  COMMISSION  upon a compromise as hereinafter provided, shall be
 paid by the [board] COMMISSION into the state treasury and  credited  to
 the  general  fund.  The  [board] COMMISSION, for cause shown and in its
 discretion, may extend the time for the payment of such penalty and,  by
 compromise may accept less than the amount of such penalty as imposed in
 settlement  thereof.  The  powers  granted  by this section shall not be
 affected by the circumstances that any such  license  [shall  have]  HAS
 expired by its terms prior to the imposition of such penalty.
   § 38. Subdivision 7 of section 251 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:
   7. "Races." Races upon which  pari-mutuel  wagering  is  conducted  at
 thoroughbred  race  meetings of racing corporations as authorized by the
 [state racing and wagering board] COMMISSION.
   § 39. Paragraph b of subdivision 1 and the opening paragraph and para-
 graph d of subdivision 2 of  section  254  of  the  racing,  pari-mutuel
 wagering and breeding law, paragraph b of subdivision 1 as added and the
 opening paragraph and paragraph d of subdivision 2 as amended by chapter
 18  of the laws of 2008, and subparagraph (i) of paragraph d of subdivi-
 sion 2 as amended by chapter 123 of the laws of  2013,  are  amended  to
 read as follows:
   b.  The  fund is authorized to receive one AND ONE-HALF percent of the
 total wagered after payout of prizes for the [first year  of]  operation
 of  video  lottery  gaming  at  Aqueduct racetrack[, one and one-quarter
 percent of the total wagered after payout of prizes for the second  year
 of  operation,  and  one and one-half percent of the total wagered after
 payout of prizes for the third year of operation and thereafter,] for an
 appropriate breeding fund for the manner of racing conducted at Aqueduct
 racetrack, Belmont Park racetrack and Saratoga race course.
   The fund is authorized to dispose and distribute the  moneys  received
 by it pursuant to this chapter and in accordance with distribution sche-
 dules  promulgated  by the fund and adopted in the rules and regulations
 of the [board] COMMISSION.  Such schedules shall be developed and  based
 on  reasonable  estimates of fund income for the fiscal year of the fund
 and made available prior to January first of each year.  In  formulating
 distribution schedules, the board of directors OF THE FUND may determine
 that  for those New York-breds foaled after December thirty-first, nine-
 teen hundred eighty-seven, the amounts to be made available in awards to
 the breeders and owners of such New York-breds [which]  THAT  have  been
 sired by registered New York stallions may exceed the amounts to be made
 available  to  the  breeders  and owners of such New York-breds sired by
 other  than  registered  New  York  stallions.  Such  schedules  may  be
 adjusted,  from time to time, by majority vote of the board of directors
 OF THE FUND, for the following purposes and no other:
   d. (i) An amount as shall be determined by the fund but not in  excess
 of  forty-four percent to provide purse moneys exclusively for New York-
 breds entered in all races, the conditions of which have  been  approved
 by  the  fund[.  Provided];  PROVIDED,  however, that the fund shall set
 aside forty percent of the funds  allotted  under  this  subdivision  to
 tracks  operated  by  corporations  licensed or franchised in accordance
 with the provisions of section two hundred five or section  two  hundred
 six  of this article except that in addition to the other amounts allot-
 ted by the fund under  this  paragraph,  seventy-five  percent  of  fund

 S. 7639                            33
 
 revenues  derived  from payments received in accordance with subdivision
 one of section five hundred twenty-seven of this chapter shall be allot-
 ted exclusively to purses at a track operated by a corporation  licensed
 under the provisions of section two hundred five of this article.
   (ii)  The  fund may direct a portion or portions of revenues allocated
 in this paragraph and dedicated to  a  racing  corporation  licensed  in
 accordance  with section two hundred five of this article to pari-mutuel
 races at such track [which] THAT are not restricted  to  New  York-breds
 provided  that  the  revenues  so allocated shall [only] be used ONLY to
 enrich any purses awarded to New  York-breds  finishing  first,  second,
 third, fourth or fifth in such non-restricted races.
   §  40.  Section  301  of the racing, pari-mutuel wagering and breeding
 law, the section heading as separately amended by chapter 363 and  chap-
 ter  678  of the laws of 1984, paragraphs a, b and c of subdivision 2 as
 relettered by chapter 211 of the laws of 1999, subdivision 4 as  amended
 by  section  5 of part F3 of chapter 62 of the laws of 2003 and subdivi-
 sion 5 as added by chapter 116 of the laws of 2001, is amended  to  read
 as follows:
   § 301. General powers of [state racing and wagering board] COMMISSION;
 harness  racing defined; super exotic bet defined, authorized. 1. Pursu-
 ant to the provisions of sections two hundred twenty-two  through  seven
 hundred  five  of  this  chapter,  the [state racing and wagering board]
 COMMISSION shall have power to  supervise  generally  all  harness  race
 meetings  in  this  state at which pari-mutuel betting is conducted. The
 [board] COMMISSION may adopt rules and regulations not inconsistent with
 sections two hundred twenty-two through seven hundred five of this chap-
 ter to carry into effect its purposes  and  provisions  and  to  prevent
 circumvention  or  evasion thereof.   In order that the rules of harness
 horse racing may be uniform throughout the United  States,  the  [board]
 COMMISSION  may  adopt  the  rules  and regulations of the United States
 Trotting Association, in whole or in part, and may adopt such  other  or
 different  rules  as  [it]  THE COMMISSION deems necessary to carry into
 effect the purposes and provisions of sections  two  hundred  twenty-two
 through seven hundred five of this chapter.
   2.  Without  limiting the generality of the foregoing, and in addition
 to its other powers:
   a. The [state racing and wagering board]  COMMISSION  shall  prescribe
 rules  and  regulations  for  effectually preventing the use of improper
 devices, the administration of drugs or  stimulants  or  other  improper
 acts  for  the purpose of affecting the speed of harness horses in races
 in which they are about to participate.
   b. The rules of the [board] COMMISSION shall  also  provide  that  all
 winning  pari-mutuel  tickets must be presented for payment before April
 first of the year following the year of their purchase  and  failure  to
 present  any  such  ticket  within  the  prescribed period of time shall
 constitute a waiver of the right to participate in the  award  or  divi-
 dend.
   c. The [board] COMMISSION shall have power in its discretion, consist-
 ent with the powers of [the state tax commission] DEPARTMENT OF TAXATION
 AND  FINANCE,  to prescribe uniform methods of keeping accounts, records
 and books to be observed by associations or corporations licensed  under
 the  provisions  of  this  article  or by any association or corporation
 [which] THAT owns stock in, or shares in the profits, or participates in
 the management or affairs of, such licensed association or  corporation,
 or  by  any person, firm, association or corporation holding any conces-
 sion, right or privilege to perform any service or sell any  article  at

 S. 7639                            34
 
 any  track  at which pari-mutuel harness racing meets are conducted. The
 [board] COMMISSION may also  in  its  discretion,  consistent  with  the
 powers  of  the  state  tax  commission,  prescribe  by  order  forms of
 accounts, records and memoranda to be kept by such persons, firms, asso-
 ciations  or  corporations.  The  [board] COMMISSION shall have power to
 visit, investigate, and place expert accountants, or such other  persons
 as  it  may  deem  necessary,  in the offices, tracks or other places of
 business of any such person, firm, association or  corporation  for  the
 purpose of seeing that the provisions of sections two hundred twenty-two
 through seven hundred five of this chapter and the rules and regulations
 issued  by the [board] COMMISSION thereunder are strictly complied with.
 Such persons, firms, associations or corporations  shall  annually  file
 with  the  [board]  COMMISSION,  on  such date as the [board] COMMISSION
 shall prescribe, a report showing their financial condition  and  finan-
 cial  transactions during the fiscal year, including a balance sheet and
 a profit and loss statement, verified by the oath of at least two of its
 principal officers, if it be an association or corporation having  offi-
 cers,  and by one or more of the owners or proprietors thereof if not an
 association or corporation. The report shall be in such form and contain
 such other matters as the [board] COMMISSION may determine from time  to
 time  to be necessary to disclose accurately the financial condition and
 operation of such persons, firms, associations  or  corporations  during
 the  preceding  fiscal  year.  The [board] COMMISSION may for good cause
 shown grant a reasonable extension of time for the filing  of  any  such
 report.
   3.  The  term "racing", as used in this article, shall be construed to
 mean only horse racing in which the horses participating  are  harnessed
 to a sulky, carriage, or similar vehicle, and shall not include any form
 of horse racing in which the horses participating are mounted by a jock-
 ey.
   4.  The  term  "super  exotic bet" or "super exotic wager", as used in
 this chapter, shall mean a single bet or wager on six  or  more  horses,
 evidenced  by  a single ticket and representing an interest in a betting
 pool hereby authorized to be conducted by licensed  racing  associations
 or  corporations  or regional off-track betting corporations pursuant to
 rules and regulations of the [state racing and wagering  board]  COMMIS-
 SION.  Such  rules  and  regulations  shall  provide the manner in which
 winning tickets in such pool shall be determined and may provide that  a
 portion only of the amounts otherwise available to winners of such pools
 be  paid  to  holders  of consolation tickets combining the most winning
 horses as provided in such rules and regulations and that the balance of
 amounts otherwise available to winners from such pool be carried forward
 and deposited in any subsequent super exotic pools. Such rules and regu-
 lations shall also provide that an amount not to exceed six [per centum]
 PERCENT of the total wagers in each super exotic pool  may  be  used  or
 accumulated  to reimburse any such association or corporation conducting
 such pool for the cost of assuring an  advertised  winning  pay-out  for
 winning  wagers  or  for  a capital improvement fund or to reimburse any
 such association or corporation for amounts it has  contributed  to  the
 amounts  otherwise  available for winning wagers to increase the pay-out
 therefor. Such rules and regulations may further provide that all of the
 amounts available for winning tickets and accumulations  therefor  shall
 be  distributed  periodically  to  holders of tickets combining the most
 winners in a pool conducted upon a date specified by the [board] COMMIS-
 SION and, in any event, shall provide for complete  disposition  of  all
 amounts  available for winning tickets and accumulations therefor before

 S. 7639                            35

 the end of the licensed meet during which such super  exotic  pools  are
 conducted.    Notwithstanding  the  foregoing or any other provisions of
 law, all distributions, taxes and regulatory fees on super  exotic  bets
 shall be distributed as though the bet were an exotic bet, except that a
 balance may be retained and deposited in subsequent pools.
   5.  The  [board]  COMMISSION shall have the power to issue licenses to
 western regional off-track betting corporation or  to  a  subsidiary  of
 said  western  regional off-track betting corporation for the purpose of
 conducting harness race meetings at Batavia Downs race track and to make
 capital improvements to  said  track,  provided  that  such  corporation
 otherwise meets the terms and conditions for licensure as provided under
 this article. Notwithstanding the provisions of articles five and five-a
 of this chapter, said corporation shall be deemed to be a harness racing
 corporation with respect to pari-mutuel wagering conducted at said track
 pursuant  to  this  chapter,  except that net revenues derived from such
 pari-mutuel wagering  shall  be  distributed  among  the  counties  that
 participate  in  such corporation on the basis of population, as defined
 as the total population in each participating county shown by the latest
 preceding decennial federal census completed and published  as  a  final
 population count by the United States bureau of the census preceding the
 commencement  of  the  calendar year in which such distribution is to be
 made.
   § 41. Section 302 of the racing,  pari-mutuel  wagering  and  breeding
 law,  subdivision  5  as  amended by chapter 687 of the laws of 1983, is
 amended to read as follows:
   § 302. Incorporation.  Any number of persons, not less than five,  may
 become  a  corporation  for the purpose of conducting harness horse race
 meetings at which pari-mutuel betting will be conducted,  with  all  the
 general  powers of corporations created under the laws of this state, by
 making, signing, acknowledging and filing  a  certificate  [which]  THAT
 shall contain THE:
   1. [The] name of the proposed corporation[.];
   2.  [The]  objects  for which [it] THE CORPORATION is to be formed and
 the location at which it is proposed to conduct its business[.];
   3. [The] amount and description of the capital stock[.];
   4. [The]  location  of  [its]  THE  CORPORATION'S  principal  business
 office[.];
   5. [Its] duration[.] OF THE CORPORATION;
   6.  [The]  number  of [its] THE CORPORATION'S directors, not less than
 five nor more than thirteen[.];
   7. [The] names and post office addresses  of  the  directors  for  the
 first year[.]; AND
   8.  [The]  post office addresses of the subscribers and a statement of
 the number of shares of stock [which] THAT each agrees to  take  in  the
 corporation.
   No  certificate of incorporation under this section shall hereafter be
 filed without the approval of the  [state  racing  and  wagering  board]
 COMMISSION indorsed thereon or annexed thereto.
   No  corporation  organized  pursuant  to  this  article or operating a
 harness horse race meet pursuant to  the  provisions  of  section  three
 hundred  four of this article, shall have or be given the right or power
 to conduct any harness horse race meet pursuant to this  article  except
 at  the  location  designated in its certificate of incorporation as the
 place at which it was proposed to conduct its business, or at the  place
 or places where it is presently licensed to conduct a harness horse race
 meet  or  meetings  by the [state racing and wagering board] COMMISSION;

 S. 7639                            36

 provided, however, that this restriction shall not  apply  to  any  such
 corporation  or association whose racing plant or the usefulness thereof
 or of any material part  thereof,  in  the  discretion  of  the  [board]
 COMMISSION, shall, for any reason beyond the control of such corporation
 or association, be totally destroyed or so substantially interfered with
 or  damaged as to render same unfit for continued operation. Pending the
 rebuilding, or restoration of  its  usefulness  or  the  making  of  the
 required  repairs  to  said  plant  or  the part thereof so destroyed or
 damaged, the [state racing and wagering board]  COMMISSION  may  license
 such  corporation or association to conduct its harness horse race meet-
 ings at any other suitable location.
   § 42. Section 303 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 303. Filing of information concerning stock transfers; necessity for
 [board's] COMMISSION approval. 1. Whenever a transfer of  stock  of  any
 association  or corporation [which] THAT is licensed under this article,
 or of any association or corporation [which] THAT leases to such  licen-
 see the track at which it conducts pari-mutuel harness races, or [which]
 THAT  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] THAT issued such stock the following:
   a.  In duplicate, an affidavit executed by the transferee stating that
 [he] THE AFFIANT is to be the sole beneficial owner thereof, and whether
 or not [he] THE AFFIANT HAS (i) [has] been convicted of a crime  involv-
 ing  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] COMMISSION; 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 trans-
 feree, 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] SUCH stock, or any interest therein, is to be held by said  trans-
 feree,  setting  forth  whether  or  not  the affiant HAS (i) [has] been
 convicted of a 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] COMMISSION; 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  under-
 standing 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 association or  corporation  shall  forthwith  file  with  the
 [board] COMMISSION one of each of said duplicate affidavits.

 S. 7639                            37
 
   2.  If, after the filing of any affidavit [hereinabove] required to be
 filed BY SUBDIVISION ONE OF THIS SECTION, there [be] IS  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 forthwith file with  the  association  or
 corporation  with which [his] THE AFFIANT'S affidavit was so filed a new
 affidavit, executed [by him] in duplicate, setting forth such change  of
 status,  and  the association or corporation shall forthwith file one of
 said affidavits with the [board] COMMISSION.
   3. Whenever any change [shall be] IS made in the  amount,  nature,  or
 otherwise,  of the interest of any person having an interest in stock of
 any such association or corporation, or any new interest [shall  be]  IS
 created  therein,  without  a  transfer  [thereof]  OF  SUCH INTEREST as
 [hereinabove] provided IN SUBDIVISIONS ONE AND TWO OF THIS SECTION,  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  associ-
 ation or corporation [which] THAT issued such stock, in duplicate, affi-
 davits  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  subdivision 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] COMMISSION.
   4. The [board] COMMISSION may, upon application to it for  good  cause
 shown,  waive  compliance  with  subdivisions one, two and three of this
 section.
   5. If the [board] COMMISSION determines that it is  inconsistent  with
 the  public  interest, convenience or necessity, or with the best inter-
 ests 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] THAT leases
 to such licensee the track at  which  it  conducts  pari-mutuel  harness
 racing  or [which] THAT owns twenty-five percent or more of the stock of
 such licensee, the [board] COMMISSION shall have full power and authori-
 ty to order or direct each such stockholder or  beneficial  owner  irre-
 spective  of the time when such stockholder or beneficial owner acquired
 his OR HER stock or interest therein to dispose of such stock or  inter-
 est  within  a period of time to be specified by the [board] COMMISSION,
 which period the [board] COMMISSION shall have full power and  authority
 to extend from time to time.
   6.  If  the  [board]  COMMISSION  shall make any order or direction as
 provided in subdivision five  of  this  section,  the  person  aggrieved
 thereby  shall be given notice of the time and place of a hearing before
 the [board] COMMISSION at which the [board] COMMISSION  will  hear  such
 person  in  reference  thereto.  The action of the [board] COMMISSION 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. Upon application of the [board] COMMISSION, the  supreme  court  of
 this  state 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] COMMISSION under subdivi-
 sion five of this section.

 S. 7639                            38
 
   8.  In  case of conflict between this section and article eight of the
 uniform commercial code, this section shall control.
   §  43.  Subdivision  (b) and the closing paragraph of section 303-a of
 the racing, pari-mutuel wagering and breeding law, as added  by  chapter
 281 of the laws of 1994, are amended to read as follows:
   (b)  Non-managing  owners. There shall be no restriction on the number
 of non-managing owners of a race horse except that  no  horse  shall  be
 entered  or started [which] THAT is owned by thirty-five or fewer owners
 unless all such owners are licensed; in the event that a horse is  owned
 by  more  than thirty-five owners, only those individuals having a three
 percent or greater property interest in such horse shall be required  to
 be licensed as an owner.
   The  [board]  COMMISSION  shall  adopt rules and regulations regarding
 ownership of horses not inconsistent with this section.
   § 44. Section 304 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 304. Right to hold harness race meetings and races.  Any corporation
 formed under the provisions of sections two hundred  twenty-two  through
 seven  hundred  five of this chapter, and any corporation or association
 which shall have conducted harness horse race meetings during two  years
 prior  to  March  thirty-first,  nineteen hundred forty, and any town or
 county fair association or other fair association shall have  the  power
 and  the  right  to hold one or more harness horse race meetings in each
 year and to hold, maintain and conduct harness races at  such  meetings.
 At  such  harness  race  meetings the corporation or association, or the
 owners of horses engaged in such races, or others who  are  not  partic-
 ipants in the race, may contribute purses, prizes, premiums or stakes to
 be  contested  for,  but  no  person  or persons other than the owner or
 owners of a horse or horses contesting in a race shall have any  pecuni-
 ary  interest  in a purse, prize, premium or stake contested for in such
 race, or be entitled to or receive any portion thereof after  such  race
 is  finished, and the whole of such purse, prize, premium or stake shall
 be allotted in accordance with the terms and conditions  of  such  race.
 Such  meeting  shall not be held except during the period extending from
 the first day of January to the thirty-first day of  December  inclusive
 in each year. In counties having a population of two hundred fifty thou-
 sand  or  less,  the  [state  racing and wagering board] COMMISSION may,
 however, permit the holding of one or more harness horse  race  meetings
 and  the  conduct of harness races at such meetings on a day or days not
 during such period if the [board] COMMISSION is satisfied that a special
 occasion makes the holding of such meetings  and  the  conduct  of  such
 races  on  such  day  or days proper or necessary; but in no event shall
 such meetings or races be held or conducted on the twenty-fifth  day  of
 December.  Such power and right, however, shall not include the right to
 conduct pari-mutuel betting at such harness horse race  meetings  except
 pursuant  to  license  granted  by the [state racing and wagering board]
 COMMISSION pursuant to sections two  hundred  twenty-two  through  seven
 hundred five of this chapter.
   § 45. Section 305 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  305.  Pari-mutuel  betting  at  harness races.   No more than eight
 corporations or associations shall be licensed by the [state racing  and
 wagering board] COMMISSION in any one year to conduct a pari-mutuel meet
 or  meets.  Said pari-mutuel betting conducted at such meetings shall be
 under the general supervision and  control  of  the  [state  racing  and
 wagering board] COMMISSION which shall make rules regulating the conduct

 S. 7639                            39
 
 of  such  pari-mutuel  betting  in  accordance  with  the  provisions of
 sections two hundred twenty-two through seven hundred five of this chap-
 ter. The [state tax commission] DEPARTMENT OF TAXATION  AND  FINANCE  is
 charged  with  the  financial  administration  of pari-mutuel betting as
 prescribed in this article and as supplemented by the  rules  and  regu-
 lations  of the [state racing and wagering board] COMMISSION. The [state
 tax commission] DEPARTMENT OF TAXATION AND FINANCE shall have  authority
 to  prescribe the forms and the system of accounting to be employed, and
 through its representatives shall at all times have power of  access  to
 and examination of any equipment relating to such betting.
   §  46.  Section  307  of the racing, pari-mutuel wagering and breeding
 law, subdivision 5-a as amended by chapter  18  of  the  laws  of  2008,
 subdivision 5-b as added by chapter 542 of the laws of 1999 and subdivi-
 sion  10 as added by chapter 530 of the laws of 2008, is amended to read
 as follows:
   § 307. Licenses for harness  race  meetings.  1.  Any  association  or
 corporation  desiring to conduct harness race meetings at which pari-mu-
 tuel betting shall be permitted may apply annually to the [state  racing
 and  wagering board] COMMISSION for a license so to do. If, in the judg-
 ment of the [state racing and  wagering  board]  COMMISSION  the  public
 interest,  convenience  or necessity will be served thereby and a proper
 case for the issuance of such  license  is  shown  consistent  with  the
 purposes  of  sections two hundred twenty-two through seven hundred five
 of this chapter and the best interests of racing generally, it may grant
 such license for a term ending not later than the  thirty-first  day  of
 December  next  succeeding  the  granting  thereof, specifying dates and
 hours during which  and  the  place  where  the  licensee  may  operate;
 provided,  however,  that  any  harness  racetrack  which applies to the
 [state racing and wagering board] COMMISSION for permission to make  one
 or more capital improvements may, in connection with such application or
 before  or  after  such application, also apply to the [state racing and
 wagering board] COMMISSION for,  and  the  [state  racing  and  wagering
 board]  COMMISSION  shall, as an inducement for or in recognition of the
 making of such capital improvement, grant a capital improvement license,
 which may be conditioned on the completion of the capital improvement if
 not yet made, for a period of not more than twenty-five years, but in no
 event for a period longer than is necessary to  amortize  any  loan  for
 capital improvements and shall specify for each year of the term of said
 license  the  minimum number of days on which, and the minimum number of
 hours on each such day, and the places where said licensee  may  conduct
 such harness race meetings at which pari-mutuel betting shall be permit-
 ted.  Such a capital improvement license shall be issued if in the judg-
 ment of the [state racing and  wagering  board]  COMMISSION  the  public
 interest,  convenience  or necessity will be served thereby and a proper
 case for the issuance of such a license is  shown  consistent  with  the
 purposes  of  sections two hundred twenty-two through seven hundred five
 of this chapter and the best  interests  of  racing  generally,  and  in
 determining  the  period  and  other  terms  of such capital improvement
 license, the [state racing and wagering board] COMMISSION shall be guid-
 ed by the nature of the capital improvement and the cost  thereof.  Such
 capital  improvement license shall automatically expire, irrespective of
 the term thereof, when the loan of funds upon which it has been  issued,
 has  been  paid off by the licensee. Where a capital improvement license
 is granted, the [state racing and wagering board] COMMISSION shall spec-
 ify annually the dates on which, but not beyond the thirty-first day  of
 December, and hours during which such licensee may operate, at the plac-

 S. 7639                            40
 
 es  and  for  the full number of days and hours specified in its capital
 improvement license.
   2. Every such license shall be issued upon condition:
   a.  [That]  THAT every harness horse race meeting at which pari-mutuel
 betting is conducted shall be subject to the supervision of and  to  the
 reasonable  rules  and  regulations  from time to time prescribed by the
 [state racing and wagering board] COMMISSION, and
   b. [That] THAT pari-mutuel betting conducted thereunder shall also  be
 subject  to  the  supervision  of and to the reasonable regulations from
 time to time prescribed by the  [state  tax  commission]  DEPARTMENT  OF
 TAXATION AND FINANCE. Any such license may also be issued upon any other
 condition  that  the  [state racing and wagering board] COMMISSION shall
 determine to be necessary or desirable to insure that the public  inter-
 est, convenience or necessity is served.
   3.  Applications  for  licenses  shall  be  in  such  form  as  may be
 prescribed by the [board] COMMISSION and shall contain such  information
 or  other  material  or  evidence as the [board] COMMISSION may require.
 Each application for renewal of a license  shall  be  deemed  to  be  an
 application  for  a  new license. The fee for such licenses shall be one
 hundred dollars for each racing day payable in installments  in  advance
 of  each week's racing which sums shall be paid into the general fund of
 the state treasury by the [board] COMMISSION.   The term  "racing  week"
 shall  include those days as defined by the rules and regulations of the
 [racing and wagering board] COMMISSION.
   4. In considering an application for a license under this section  the
 [state  racing  and wagering board] COMMISSION may give consideration to
 the number of licenses already granted and to the location of the tracks
 previously licensed. No such license shall be granted to any track which
 has not conducted pari-mutuel harness racing during at least ten  calen-
 dar  years  and  which is located within ten miles of a state, county or
 town fair conducting harness racing  for  the  three  consecutive  years
 immediately  preceding April second, nineteen hundred fifty-three, which
 license shall be operative during the racing dates of such fair,  unless
 the  association,  corporation  or  society  conducting  such fair shall
 affirmatively waive objection to the issuance of such license for  dates
 within  such  period.  No  such  license  shall  be granted to any track
 located within the corporate limits of a city of  the  first  class.  No
 such  license  shall  be  granted to any harness horse racetrack located
 within twenty-five miles of any track  already  licensed  for  the  same
 dates  and  hours except with the consent of the licensee located within
 such twenty-five mile area.
   5. The [board] COMMISSION may refuse to grant a license to an  associ-
 ation or corporation if it shall determine that:
   a. Any officer, director, member or stockholder of such association or
 corporation applying for a license, or of any association or corporation
 [which]  THAT owns stock in or shares in the profits, or participates in
 the management, of the affairs of such applicant, or [which] THAT leases
 to such applicant the track where [it shall] SUCH APPLICANT WILL operate
 HAS:
   (i) [has] been convicted of a 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 suspension from
 racing might be imposed in such jurisdiction;

 S. 7639                            41
 
   (v) [has] violated any  rule,  regulation  or  order  of  the  [board]
 COMMISSION; or
   b. The experience, character or general fitness of any officer, direc-
 tor  or stockholder of any of the aforesaid associations or corporations
 is such that the participation of  such  person  in  harness  racing  or
 related  activities  would  be  inconsistent  with  the public interest,
 convenience or necessity or with the best interests of racing generally;
 but if the [board] COMMISSION determines that the interest of any stock-
 holder referred to in this paragraph or in paragraph a of this  subdivi-
 sion  is insufficient in the opinion of the [board] COMMISSION to affect
 adversely the conduct of pari-mutuel harness racing by such  association
 or  corporation  in  accordance with the provisions of this article, the
 [board] COMMISSION may disregard such interest in determining whether or
 not to grant a license to such association or corporation; or
   c. The applicant is not the owner  of  the  track  at  which  it  will
 conduct  pari-mutuel harness racing pursuant to the license applied for,
 or that any person, firm, association  or  corporation  other  than  the
 applicant  shares, or will share, in the profits of the applicant, other
 than by dividends as a stockholder, or participates or will  participate
 in the management of the affairs of the applicant.
   5-a. The [board] COMMISSION shall not issue a license pursuant to this
 section  to  any  harness racing association or corporation [which] THAT
 does not apply to conduct at its facilities a minimum number of pari-mu-
 tuel programs and pari-mutuel races at its facilities equal to at  least
 seventy-five [per centum] PERCENT of the programs and races so conducted
 during  nineteen  hundred eighty-five or during nineteen hundred eighty-
 six, or one hundred [per centum] PERCENT of the programs  and  races  so
 conducted  during two thousand, whichever is greater; provided, however,
 that for a harness racing association or corporation  located  in  West-
 chester  and  Erie counties, such minimum number of pari-mutuel programs
 and pari-mutuel races at its facilities shall equal at least one hundred
 [per centum] PERCENT of the programs  and  races  conducted  during  two
 thousand.  If  the track did not conduct races during two thousand, such
 minimum number of pari-mutuel programs  and  pari-mutuel  races  at  its
 facilities  shall  equal  at  least  ninety  [per centum] PERCENT of the
 programs and races conducted during two thousand at Buffalo raceway,  in
 the  town  of  Hamburg and county of Erie, unless cancellation of a race
 day because of an act  of  God,  [which]  THAT  the  [board]  COMMISSION
 approves  or  because of weather conditions that are unsafe or hazardous
 [which] THAT the [board] COMMISSION approves shall not be construed as a
 failure to conduct a race day; provided further, the [board]  COMMISSION
 shall not grant a license to such association or corporation upon appli-
 cation  unless  such  programs  and  races are conducted during the same
 calendar year period as were  conducted  during  the  applicable  period
 above  [utilized]  USED  to  measure  the  minimum number of pari-mutuel
 programs and pari-mutuel races, as approved by the  [board]  COMMISSION.
 Nothing  in the foregoing paragraph shall affect any agreement in effect
 on or before the effective date of this paragraph. The  [board]  COMMIS-
 SION  may  grant a license to such association or corporation to conduct
 fewer such programs and races for good cause shown due to factors beyond
 the control of such association or corporation, and upon consent of  the
 representative horsemen's association, as determined pursuant to section
 three hundred eighteen of this article.
   5-b.  Notwithstanding any inconsistent provision of subdivision five-a
 of this section and article ten  of  this  chapter,  where  the  [board]
 COMMISSION  certifies  by December first of the proceeding year that the

 S. 7639                            42
 
 number of standardbred horses eligible for competition is less than that
 of the base year as defined in subdivision five-a of this  section,  and
 only  if the authorized horsemen's association concurs as evidenced by a
 written  agreement  between  the track and the horsemen's association, a
 licensee pursuant to this section may submit and the [board]  COMMISSION
 may  accept  a  license  application requesting a reduced number of race
 dates where it is in the best interest of racing within this  state  and
 provided  that  the  licensee  shall not be penalized or required by the
 [board] COMMISSION to  diminish  simulcasting  activities  or  incur  an
 increased  tax liability as a result of a [board sanctioned] COMMISSION-
 SANCTIONED reduction in its live racing activity under this subdivision.
   6. The [board] COMMISSION shall also have power to refuse to  grant  a
 license:
   a.  [To] TO any association or corporation, the charter or certificate
 of incorporation of which [shall fail]  FAILS  to  contain  a  provision
 requiring  any  stockholder,  upon  written demand of the association or
 corporation, to sell his, HER OR ITS stock to the association or  corpo-
 ration  at  a price to be fixed in the manner otherwise provided by law,
 provided such demand be  made  pursuant  to  written  direction  of  the
 [board]  COMMISSION;  and  from and after the date of the making of such
 demand, prohibiting the transfer of such certificate of stock, except to
 the association or corporation; or
   b. [To] TO any association or corporation [which] THAT, having been  a
 licensee, has failed in the opinion of the [board] COMMISSION to proper-
 ly  maintain its track and plant in good condition or has failed to make
 adequate provision for rehabilitation and capital  improvements  to  its
 track and plant.
   7. Pending final determination of any question under this section, the
 [board]  COMMISSION  may  issue  a temporary license upon such terms and
 conditions as it may deem necessary, desirable or proper  to  effectuate
 the  provisions of sections two hundred twenty-two through seven hundred
 five of this chapter.
   8. Notwithstanding any other provision of  this  article,  the  [state
 racing  and  wagering  board]  COMMISSION  may, no more than once in any
 calendar year, grant a license to any authorized harness racing  associ-
 ation  or  corporation  to  hold and conduct one additional harness race
 meeting of not more than seven days duration, with pari-mutuel  betting,
 on  any  mile track within this state, to enable said authorized harness
 racing association or corporation to conduct a special stakes  race  not
 limited to the Hambletonian stakes and associated events.
   9.  The  [board]  COMMISSION  shall  have  power  to direct that every
 certificate of stock of an association or corporation licensed under the
 provisions of sections two hundred twenty-two through seven hundred five
 of this chapter shall bear a legend plainly  and  prominently  imprinted
 upon  the face of the certificate reading: "This certificate of stock is
 transferable only subject to the provisions  of  section  three  hundred
 three of the racing, pari-mutuel wagering and breeding law".
   10. Notwithstanding the provisions of section three hundred twenty-one
 of  this  [chapter]  ARTICLE,  the  refusal  of  an application for such
 license shall be preceded by notice and an opportunity to be  heard.  In
 the conduct of such hearing the [board] COMMISSION shall not be bound by
 technical  rules of evidence but all evidence offered before the [board]
 COMMISSION shall be reduced to writing, and such evidence together  with
 the  exhibits, if any, and the findings of the [board] COMMISSION, shall
 be permanently preserved and shall constitute the record of the  [board]
 COMMISSION  in  such  case.  Such  hearing  may  be presided over by the

 S. 7639                            43

 [chairman] CHAIR of the [board] COMMISSION or by any  member  or  by  an
 officer  of the [board] COMMISSION designated by the [chairman] CHAIR in
 writing to act as hearing officer and such person or persons  may  issue
 subpoenas  for  witnesses and administer oaths to witnesses. The hearing
 officer, at the conclusion of the hearing shall make findings which,  if
 concurred  in  by  [two  members]  A MAJORITY of the [board] COMMISSION,
 shall become the findings of the [board] COMMISSION. The action  of  the
 [board]  COMMISSION  in  refusing  a  license shall be reviewable in the
 supreme court in the manner provided by the provisions of article seven-
 ty-eight of the civil practice law and rules.
   § 47. The section heading and subdivision (a) of section 307-a of  the
 racing, pari-mutuel wagering and breeding law, as amended by chapter 284
 of the laws of 2017, are amended to read as follows:
   New [York bred] YORK-BRED or wholly owned harness races. (a) Any asso-
 ciation  or  corporation  licensed  to  conduct harness race meetings at
 which pari-mutuel betting is permitted may, if in  its  sole  discretion
 such  association or corporation determines that it would be beneficial,
 offer non-stakes races [which] THAT are limited to New [York bred] YORK-
 BRED horses or horses wholly owned by New York  state  residents.  These
 races  may  be  written  on  such terms and conditions as any other race
 authorized pursuant to law or regulation  of  the  commission,  notwith-
 standing any preference date requirements.
   § 48. Subdivisions 1, 2 and 4 of section 308 of the racing, pari-mutu-
 el  wagering  and  breeding  law,  as amended by section 1 of part CC of
 chapter 60 of the laws of 2016, are amended to read as follows:
   1. At all harness race meetings licensed by the [gaming] commission in
 accordance with  the  provisions  of  sections  two  hundred  twenty-two
 through seven hundred five of this chapter qualified judges and starters
 shall  be  designated  by  the [gaming] commission. Such officials shall
 enforce the rules and regulations of the [gaming] commission  and  shall
 render  regular  written  reports  of the activities and conduct of such
 race meetings to the [gaming] commission.
   2. The licensed  racing  corporations  shall  reimburse  the  [gaming]
 commission for the per diem cost to the commission to employ one associ-
 ate judge and the starter to serve at harness race meetings. The commis-
 sion  shall notify each such licensed racing corporation of the per diem
 cost of the associate judge  and  the  starter  at  the  track  of  such
 licensed  racing corporation within sixty days of the end of each month.
 Payment of the reimbursement required by this section shall be  made  to
 the  commission  by  each  entity  required to make such payments within
 thirty days of such notification by the commission and shall  cover  all
 the  costs  incurred  during  that  month.  A penalty of five percent of
 payment due, and interest at the rate of one percent  per  month  calcu-
 lated  from  such date that payment is due to the date of the payment of
 the per diem cost shall be payable in case any per diem cost imposed  by
 this  subdivision  is not paid when due. The commission shall promulgate
 rules and regulations to ensure the proper reimbursement of such costs.
   4. Any associate judge and starter whose per diem costs are reimbursed
 by a licensed racing corporation shall remain employees of the  [gaming]
 commission  and  shall  retain  all  the  rights and privileges of their
 current civil  service  jurisdictional  classification  and  status  and
 collective bargaining unit representation.
   §  49.  Section  309  of the racing, pari-mutuel wagering and breeding
 law, subdivision 1 as amended by chapter 164 of the  laws  of  2003,  is
 amended to read as follows:

 S. 7639                            44

   §  309.  Licenses for participants and employees at harness race meet-
 ings.  1. For the purpose of maintaining a proper control  over  harness
 race  meetings  conducted  pursuant  to  sections two hundred twenty-two
 through seven hundred five of this chapter, the [state racing and wager-
 ing board] COMMISSION may license drivers and such other persons partic-
 ipating  in  harness  horse race meets, as the [board] COMMISSION may by
 rule prescribe, including, if  the  [board  deem]  COMMISSION  DEEMS  it
 necessary  so  to  do,  owners, and some or all persons exercising their
 occupation or employed at harness race meets, provided, however, that no
 such license shall be required for seasonal employees  hired  solely  to
 work for no longer than six weeks during the summer meet at the Syracuse
 mile.  Each  applicant for a license shall pay to the [board] COMMISSION
 an annual license fee as follows: owner's license, if a  renewal,  fifty
 dollars,  and if an original application, one hundred dollars; trainer's
 license, twenty dollars; assistant trainer's  license,  twenty  dollars;
 driver's license, twenty dollars; farrier's license, twenty dollars; and
 stable  employee's license, five dollars. Such fees shall be paid to the
 [board] COMMISSION and by it paid into the state treasury.  The  [board]
 COMMISSION  may by rule fix the license fees to be paid by other persons
 required to be licensed by the rules of the [board] COMMISSION,  not  to
 exceed  twenty  dollars  per category. All such licenses, unless revoked
 for cause shall be for the period of no more  than  one,  two  or  three
 years,  as determined by rule of the [board] COMMISSION, expiring on the
 applicant's birth date. Licenses current on the effective date  of  this
 provision  shall not be reduced in duration by this provision. An appli-
 cant who applies for a license that, if issued, would take  effect  less
 than six months prior to the applicant's birth date may, by payment of a
 fifty  percent  higher  fee,  receive  a  license [which] THAT shall not
 expire until the applicant's second  succeeding  birth  date.  For  each
 category  of  license,  the  applicant may apply for a two or three year
 license by payment to the [board] COMMISSION of the appropriate multiple
 of the annual fee. The applications for licenses shall  be  in  writing,
 accompanied by fingerprints and a photograph of the applicant, and shall
 be  in  such  form,  and  contain such other information, as the [board]
 COMMISSION may require. Such fingerprints  shall  be  submitted  to  the
 division  of  criminal  justice  services  for  a state criminal history
 record check, as defined in subdivision one of  section  three  thousand
 thirty-five  of  the  education law, and may be submitted to the federal
 bureau of investigation for a national criminal history record check.
   Every person employed after May first, nineteen hundred fifty-four, by
 such association or corporation, including officers and directors there-
 of, whether or not such person be licensed, shall file fingerprints  and
 a  photograph  with  the  [board]  COMMISSION within ten days after such
 employment.  The fingerprints so obtained from applicants  for  licenses
 and  from employees not to be licensed shall be forthwith transmitted by
 the [board] COMMISSION to the division of criminal justice services  and
 may  also  be  submitted  to  the federal bureau of investigation or any
 other government agency having facilities for checking fingerprints  for
 the  purpose  of  establishing  the  identity  and the previous criminal
 record, if any, of such person and such agency shall promptly report its
 findings to the [board] COMMISSION in writing.
   2. If the [state racing and  wagering  board  shall  find]  COMMISSION
 FINDS  that  the experience, character and general fitness of the appli-
 cant are such that the participation of such  person  in  harness  horse
 race  meets will be consistent with the public interest, convenience and
 necessity and with the best interests of racing generally in  conformity

 S. 7639                            45
 
 with  the  purposes  of  sections  two  hundred twenty-two through seven
 hundred five of this chapter, [it] THE COMMISSION may thereupon grant  a
 license.
   Without  limiting the generality of the foregoing, the [board] COMMIS-
 SION may refuse to issue a license, pursuant to  this  section,  if  [it
 shall find] THE COMMISSION FINDS that the applicant HAS:
   a. [Has] been convicted of a crime involving moral turpitude;
   b. [Has] engaged in bookmaking or other form of illegal gambling;
   c.  [Has]  been  found  guilty  of  any  fraud or misrepresentation in
 connection with racing or breeding;
   d. [Has] been found guilty of any violation or attempt to violate  any
 law,  rule or regulation of racing in any jurisdiction for which suspen-
 sion from racing might be imposed in such jurisdiction; or
   e. [Who has] violated any rule, regulation or  order  of  the  [board]
 COMMISSION.  The  [board]  COMMISSION  may  suspend  or revoke a license
 issued pursuant to this section if [it shall determine]  THE  COMMISSION
 DETERMINES  that  (i)  the  applicant  or  licensee  HAS  (1) [has] been
 convicted of a crime involving moral turpitude;  (2)  [has]  engaged  in
 bookmaking or other form of illegal gambling; (3) [has] been found guil-
 ty  of  any  fraud in connection with racing or breeding; (4) [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 (5) [who has] violated any rule,
 regulation or order of the [board] COMMISSION, or (ii) [that] the  expe-
 rience,  character  or  general  fitness of any applicant or licensee is
 such that the participation of such person in harness racing or  related
 activities  would  be inconsistent with the public interest, convenience
 or necessity or with the best interests of racing generally.
   3. Pending final determination of any question under this section, the
 [board] COMMISSION may issue a temporary license  upon  such  terms  and
 conditions  as  it may deem necessary, desirable or proper to effectuate
 the provisions of sections two hundred twenty-two through seven  hundred
 five of this chapter.
   §  50.  Section  310  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 240 of the laws of 2010, is amended  to  read
 as follows:
   §  310.  Power  of the [state racing and wagering board] COMMISSION to
 impose fines and penalties. [In] THE  COMMISSION,  IN  addition  to  its
 power to suspend or revoke licenses granted by [it] THE COMMISSION, [the
 state racing and wagering board] is [hereby] authorized and empowered to
 impose  monetary  fines  upon  any  corporation,  association  or person
 participating in any way in any harness race meet at  which  pari-mutuel
 betting  is  conducted,  other than as a patron, and whether licensed by
 the [board] COMMISSION or not, for a violation of any provision of  this
 chapter  or  the  rules  promulgated  by the [board] COMMISSION pursuant
 thereto, not exceeding [twenty-five thousand dollars for each violation]
 THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN  OF  THIS  CHAPTER.
 The  [board]  COMMISSION  is  further authorized and empowered to impose
 monetary fines, not exceeding [twenty-five  thousand  dollars  for  each
 violation]  THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS
 CHAPTER,  upon  any  such  corporation,  association  or  person  for  a
 violation  of any order issued by the [board] COMMISSION pursuant to the
 provisions of this chapter or  the  rules  promulgated  by  the  [board]
 COMMISSION  pursuant  thereto,  provided that a copy of such order shall
 have been served, either personally or  by  registered  mail,  upon  the
 corporation,  association or person to whom the same was directed, prior

 S. 7639                            46
 
 to the occurrence of the violation for which such fine is imposed.  Such
 fines  shall  be  paid into the treasury of the state. The action of the
 [board] COMMISSION in imposing any monetary fine shall be reviewable  in
 the  supreme  court  in  the  manner  provided  by  and  subject  to the
 provisions of article seventy-eight of the civil practice law and rules.
   § 51. Section 311 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 311. Refunds. Moneys received by the [board] COMMISSION pursuant  to
 this article may within one year from the receipt thereof be refunded to
 the party for whose account the same were received on proof satisfactory
 to the [board] COMMISSION that:
   1. [Such] SUCH moneys were in excess of the amount required by law[.];
   2.  [The]  THE license for which application was made has been refused
 by the [board.] COMMISSION;
   3. [Such] SUCH moneys were received as a fine and the [board]  COMMIS-
 SION has after review reduced the amount of such fine[.]; OR
   4. [Upon appeal, the court] UPON JUDICIAL REVIEW, A COURT OF COMPETENT
 JURISDICTION reduced or remitted the fine imposed.
   Such  refunds shall, upon approval by the [board] COMMISSION and after
 audit by the comptroller, be paid from any moneys in the custody of  the
 department received pursuant to this article.
   § 52. Subdivision 2 of section 312 of the racing, pari-mutuel wagering
 and  breeding  law,  as  amended  by chapter 476 of the laws of 2018, is
 amended to read as follows:
   2. Any appointment of a special  police  officer  under  this  section
 shall  [only]  be  made  ONLY with the approval of the [state racing and
 wagering board] COMMISSION. Application for such approval  shall  be  in
 such  form  as  may  be  prescribed  by the [board] COMMISSION and shall
 contain such other information or material or evidence  as  the  [board]
 COMMISSION  shall require. In acting on an application for such approval
 the [board] COMMISSION shall consider the background, experience, integ-
 rity, and competence of the candidate for appointment, the public inter-
 est, convenience or necessity and the interests of harness racing gener-
 ally. The [board] COMMISSION in its discretion may set the term  of  any
 such  appointment,  terminate  any  existing appointment at any time and
 prescribe conditions and rules for the conduct of such office.
   § 53. Section 313 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 313. Place and manner of conducting pari-mutuel betting.  Any corpo-
 ration or association licensed  to  conduct  pari-mutuel  betting  at  a
 harness race meeting shall provide a place or places within race meeting
 grounds or enclosure at which such licensee shall conduct the pari-mutu-
 el  system  of betting by its patrons on the result of the harness horse
 races at such meetings. Such licensee shall cause to be erected  a  sign
 or  board upon which shall be displayed the approximate straight odds on
 each horse in any race; the total amount wagered upon each horse in each
 pool; the value of a [two  dollar]  TWO-DOLLAR  winning  mutuel  ticket,
 straight,  place  or  show  on  the  first three horses in any race; the
 elapsed time of the race; the value of a [two dollar] TWO-DOLLAR winning
 daily double ticket, if a daily  double  be  conducted,  and  any  other
 information  that  the  [state racing and wagering board] COMMISSION may
 deem necessary for the guidance of the general public. All machines  and
 equipment used for pari-mutuel betting or for the display of the forego-
 ing  information  must  be  approved  by  the [state racing and wagering
 board] COMMISSION and the [state tax commission] DEPARTMENT OF  TAXATION
 AND  FINANCE  before  being used, but neither the [board] COMMISSION nor

 S. 7639                            47

 the [commission] DEPARTMENT OF TAXATION AND FINANCE  shall  require  the
 installation  of  any particular make of mechanical or electrical equip-
 ment.
   § 54. Subdivision 2 of section 314 of the racing, pari-mutuel wagering
 and breeding law is amended to read as follows:
   2. Notwithstanding the provisions of any general or special statute of
 this  state  or of any local law or ordinance of any municipality within
 the state, whether such provision or provisions be penal in character or
 otherwise, the provisions of sections  two  hundred  twenty-two  through
 seven  hundred  five  of  this  chapter  and  the rules, regulations and
 requirements of the [state racing and wagering board] COMMISSION  relat-
 ing  to  the  time  when  and place where or manner in which the harness
 races shall be conducted in this state and the control  of  the  grounds
 and  structures  erected or to be erected thereon upon and at which such
 racing is conducted and the activities conducted thereat and thereon  in
 connection  with  any trial or contest of speed or power of endurance of
 harness horses shall be construed and deemed  to  be  exclusive  of  and
 shall supersede any provisions of such other general or special statute,
 local law or ordinance in any wise relating thereto, insofar as the same
 affect or relate to trotting or harness racing, nor shall the provisions
 of  article  two hundred twenty-five of the penal law be deemed to apply
 to pari-mutuel betting conducted pursuant to sections two hundred  twen-
 ty-two through seven hundred five of this chapter.
   § 55. Section 315 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 315. Bond required of corporation or association conducting pari-mu-
 tuel  betting.   Every corporation or association licensed by the [state
 racing and wagering board] COMMISSION  to  conduct  harness  horse  race
 meetings  at  which pari-mutuel betting shall be permitted, annually and
 before the opening of any race meeting shall execute and file  with  the
 state  comptroller  a bond to this state in a penalty to be fixed by the
 [state tax commission] DEPARTMENT OF TAXATION AND FINANCE not  exceeding
 two hundred fifty thousand dollars, with sureties approved by the attor-
 ney general, that it will keep its books and records and make reports as
 required  by  sections two hundred twenty-two through seven hundred five
 of this chapter, that it will pay to the state all taxes imposed by this
 chapter, that it will distribute to the  patrons  of  pari-mutuel  pools
 conducted  by  it all sums due upon presentation of winning tickets held
 by them, and that it will otherwise comply with all of the provisions of
 sections two hundred twenty-two through seven hundred five of this chap-
 ter and with the rules and regulations prescribed by the  [state  racing
 and wagering board] COMMISSION and the [state tax commission] DEPARTMENT
 OF TAXATION AND FINANCE.
   § 56. Section 317 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  317. Filing of certain agreements with the [state racing and wager-
 ing board] COMMISSION. Every  association  or  corporation  licensed  to
 conduct  harness race meetings at which pari-mutuel betting is permitted
 shall promptly after entering into any lease, agreement  concerning  any
 concession, labor management relations, the hiring of designated classes
 of  officers,  employees or contractors specified by the [board] COMMIS-
 SION or any such other contract, agreement or arrangement as the  [state
 racing  and  wagering board] COMMISSION may from time to time prescribe,
 file with the [state racing board] COMMISSION a true and  correct  copy,
 or an accurate summary, if oral, thereof.

 S. 7639                            48
 
   §  57.  Subdivisions 1 and 5 of section 318 of the racing, pari-mutuel
 wagering and breeding law, the opening paragraph  of  subdivision  1  as
 amended  by  section 6 of part F3 of chapter 62 of the laws of 2003, the
 second undesignated paragraph of subdivision 1, the opening paragraph of
 paragraph a of subdivision 1 and subparagraphs (i) and (ii) of paragraph
 a  of  subdivision  1 as amended and subparagraph (iv) of paragraph b of
 subdivision 1 as added by chapter 281 of the laws of 1994, paragraphs a,
 b and c of subdivision 1 as amended and subdivision 5 as added by  chap-
 ter 261 of the laws of 1988, subparagraph (iii) of paragraph a of subdi-
 vision 1 and subparagraph (i) of paragraph b of subdivision 1 as amended
 by  chapter 280 of the laws of 2001, subparagraph (ii) of paragraph b of
 subdivision 1 as amended by chapter 484 of the laws of 2000, paragraph d
 of subdivision 1 as amended by section 3 of part BB of chapter 60 of the
 laws of 2016 and paragraph d of subdivision 5 as amended by chapter  503
 of the laws of 1989, are amended to read as follows:
   1.  Except  as  otherwise provided by law, every association or corpo-
 ration authorized under this article to conduct pari-mutuel betting at a
 harness horse race meeting on races run  thereat  shall  distribute  all
 sums deposited in any pari-mutuel pool to the holders of winning tickets
 therein,  provided  such tickets be presented for payment prior to April
 first of the year following the year of their purchase, less  an  amount
 [which]  THAT  shall  be established and retained by such racing associ-
 ation or corporation of between fourteen and twenty [per centum] PERCENT
 of the total deposits in pools resulting from regular bets, less sixteen
 to twenty-two [per centum]  PERCENT  of  the  total  deposits  in  pools
 resulting from multiple bets, less twenty to thirty [per centum] PERCENT
 of  the  total  deposits  in  pools resulting from exotic bets, and less
 twenty to thirty-six [per centum] PERCENT of the total betting  deposits
 in  pools  resulting  from  super  exotic  bets,  plus  the  breaks. The
 retention rate to be established is subject to the prior approval of the
 [racing and wagering board] COMMISSION. Such rate  may  not  be  changed
 more  than once per calendar quarter to be effective on the first day of
 the calendar quarter.
   "Exotic bets" and "multiple bets" shall have the meanings set forth in
 section five hundred nineteen of this chapter, "super exotic bets" shall
 have the meaning set forth in subdivision four of section three  hundred
 one of this article and "the breaks" are hereby defined as the odd cents
 over  any  multiple  of ten for regular and multiple bets, or for exotic
 bets, over any multiple of fifty, or for super  exotic  bets,  over  any
 multiple of one hundred calculated on the basis of one dollar and other-
 wise payable to a patron, provided however, that effective after October
 fifteenth, nineteen hundred ninety-four breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty for payoffs over two hundred fifty dollars.
   a.  Of  the  sum  so retained from on-track pari-mutuel betting pools,
 such association or corporation authorized to operate in Westchester  or
 Nassau county: (i) shall pay to the commissioner of taxation and finance
 as  a reasonable 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:]  RATE  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,

 S. 7639                            49

 one and thirty-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 Septem-
 ber  first, nineteen hundred ninety-four, such tax shall be] one-half of
 one [per centum] PERCENT of all wagers FROM TOTAL DAILY ON-TRACK  POOLS.
 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] FOUR-TENTHS
 PERCENT of total daily pools resulting from the simulcast of such  asso-
 ciation's  or  corporation's  races  to  licensed facilities operated by
 regional off-track betting corporations in accordance with  section  one
 thousand  eight  of  this  chapter;  provided, however, that in no event
 shall total daily credit exceed [one and  one  half  per  centum]  FOUR-
 TENTHS  PERCENT  of  the  total daily pool of such association or corpo-
 ration. [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]  PERCENT  of  such  credit  shall  be  used to increase purses[.
 Provided]; PROVIDED, however, that for any [twelve  month]  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] PERCENT 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] PERCENT 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 [chapter] ARTICLE, repairs to  its  phys-
 ical  plant,  structures,  and  equipment used in its racing or wagering
 operations, as certified  by  the  [state  racing  and  wagering  board]
 COMMISSION  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]  SUBJECT TO THE APPROVAL OF THE COMMISSION for purposes
 of this subdivision. In the determination of the  amounts  expended  for
 such  enhancements, the [board] COMMISSION shall consider the average of
 the two immediately preceding [twelve month] TWELVE-MONTH calendar peri-
 ods.  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] COMMISSION shall promulgate
 rules and regulations to implement the provisions relating to notice and
 hearing.
   (ii) except as otherwise provided in this paragraph an amount equal to
 six  and  eight-tenths  [per centum] PERCENT of the total pool resulting
 from on-track regular bets, an amount equal to seven and ninety-five one
 hundredths [per  centum]  PERCENT  of  the  total  pool  resulting  from
 on-track multiple bets, an amount equal to ten and one-half [per centum]
 PERCENT of the total pool resulting from on-track exotic bets, an amount
 equal  to  fifteen  and one-half [per centum] PERCENT of the total daily
 pool resulting from on-track super exotic bets shall be used exclusively
 for purses, of which an amount of not  less  than  ninety  [per  centum]

 S. 7639                            50
 
 PERCENT  shall  be  used  exclusively  for  purses  for  overnight races
 conducted by such association or  corporation.    Such  amounts  may  be
 reduced  upon  an  application approved by the [board] COMMISSION and an
 agreement between the licensed harness racing corporation or association
 and  the representative horsemen's organization as a condition to reduce
 the amounts of retained percentages as provided  for  in  this  section.
 However,  of  the total amount available for purses, an amount as deter-
 mined by contractual obligations between an organization representing at
 least fifty-one [per centum] PERCENT of the owners and trainers [utiliz-
 ing] USING the facilities of such association or corporation for racing,
 training or stabling purposes and the association or corporation,  shall
 be  used  for  the  administrative purposes of said organization and for
 such welfare  and  medical  plans  for  regularly  employed  backstretch
 employees  principally employed at the facilities of such corporation or
 association as provided by said organization,  provided,  however,  that
 eligibility  for  benefits  in  such plans shall not be conditioned upon
 membership in such organization by any employee or employer thereof, and
 any denial of eligibility for benefits in such plans which, upon  inves-
 tigation  and  review  by  the [board] COMMISSION, is determined to have
 resulted from a person, firm, association, corporation  or  organization
 knowingly  aiding in or permitting eligibility for benefits being condi-
 tioned upon membership in such organization shall subject such organiza-
 tion to the penalties imposed under sections three hundred ten and three
 hundred twenty-one of this article but the  ratio  between  the  amounts
 actually  expended for such welfare and medical plans and the cost actu-
 ally incurred in administering such welfare and medical plans for fiscal
 years of such corporation or  association,  on  or  after  July  twenty-
 fourth,  nineteen  hundred  eighty-one, shall not be less than the ratio
 between such amounts actually expended and such costs actually  incurred
 for  the  fiscal  year immediately prior to such date. Such organization
 shall annually on or before July first certify to the [state racing  and
 wagering  board]  COMMISSION  that it represents at least fifty-one [per
 centum] PERCENT of such owners and trainers and provide copies  of  such
 certification to such association or corporation. Any other organization
 claiming  to  represent  at least fifty-one [per centum] PERCENT of such
 owners and trainers may file a challenge  with  the  [state  racing  and
 wagering  board] COMMISSION within fifteen days of such original certif-
 ication. The [state racing and wagering board] COMMISSION shall  examine
 such  claim  and may undertake studies and conduct hearings to determine
 the validity of such claim. Within sixty days of  receiving  such  chal-
 lenge  and  based  upon  the  findings of such studies and hearings, the
 [state racing and wagering board] COMMISSION shall render a decision  on
 the validity of such claim and advise such organizations and association
 or  corporation  of  its  determination.  Upon  receipt of such original
 certification by such organization, the association or corporation shall
 make such payments to said organization and, in the event of a challenge
 brought to any other organization, such payments shall  continue  to  be
 made until such time as the [state racing and wagering board] COMMISSION
 renders its decision on such challenge; and
   (iii)  the  balance  of  the retained percentage of such pools and the
 balance of the breaks may be held by such association or corporation for
 its own use and purposes except as  provided  in  paragraph  c  of  this
 subdivision and in subdivision four of section three hundred one of this
 article,  provided,  however,  that  the [board] COMMISSION shall report
 annually, on or before July first, to the director of  the  budget,  the
 [chairman]  CHAIR  of  the  senate  finance committee and the [chairman]

 S. 7639                            51
 
 CHAIR of the assembly ways and means committee the extent to which  such
 corporations  and associations [utilized] USED such retained percentages
 and breakage for operations, maintenance, capital  improvements,  adver-
 tising  and  promotion, administration and general overhead and evaluate
 the effectiveness and make recommendations with respect to the  applica-
 tion  of  the  reduced rates of taxation as provided for in subparagraph
 (i) of this paragraph 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  activ-
 ities  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 and article ten of this
 chapter.
   b. (i) Of the sums retained by any other licensed harness racing asso-
 ciation 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] PERCENT; for multiple bets shall be  one  and
 one-tenth  [per  centum] PERCENT; for exotic bets shall be five and six-
 tenths [per centum] PERCENT and for super exotic  bets  shall  be  seven
 [per  centum]  PERCENT,  plus  fifty [per centum] PERCENT of the breaks.
 Effective  September  first,  nineteen  hundred  ninety-four,  for   all
 licensed  harness racing associations and corporations [which] THAT 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]
 PERCENT of all wagers, plus fifty [per centum] PERCENT of the breaks.
   Provided,  however,  that  for  any [twelve month] TWELVE-MONTH period
 beginning on April first in nineteen hundred ninety and any year  there-
 after,  each  of the applicable rates set forth above shall be increased
 by one-quarter of one [per centum] PERCENT 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] PERCENT 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]  COMMISSION 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] SUBJECT TO  THE  APPROVAL
 OF  THE  COMMISSION  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]
 COMMISSION may consider the immediately preceding [twelve month] TWELVE-
 MONTH  calendar  period  or the average of the two immediately preceding
 [twelve month] TWELVE-MONTH calendar periods. Notwithstanding the  fore-
 going  no  increase  shall be imposed unless such corporation or associ-

 S. 7639                            52
 
 ation 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] COMMIS-
 SION 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] FOUR-TENTHS  PERCENT  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
 of  this  chapter,  provided  however,  that in no event shall the total
 daily credit exceed [one per centum] FOUR-TENTHS PERCENT  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 associ-
 ation 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.]  The  [racing
 and wagering board] COMMISSION shall report annually, before July first,
 to  the  director  of  the  budget,  the  [chairman] CHAIR of the senate
 finance committee and the [chairman] CHAIR  of  the  assembly  ways  and
 means  committee  the extent to which such corporations and associations
 [utilized] USED such retained percentages and breakage  for  operations,
 maintenance,  capital  improvements, advertising and promotion, adminis-
 tration and general overhead and evaluate  the  effectiveness  and  make
 recommendations  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.
   (ii)  Of  the  sums  retained  by  such association or corporation, an
 amount equal to one and three-quarters [per centum] PERCENT of the total
 pool resulting from on-track regular, multiple and exotic bets shall  be
 used  exclusively  for the purpose of increasing purses awarded in over-
 night races conducted by such association or corporation.  Such  amounts
 shall  be  in  addition  to  purse moneys otherwise provided pursuant to
 existing contractual obligations. In this  regard  an  amount  equal  to
 twelve  [per  centum]  PERCENT  of  the total bets in super exotic pools
 shall be used for purses in lieu of  any  such  contractual  obligations
 [which]  THAT  might  otherwise  apply  to purses to be awarded on super
 exotic bets. Any portion of such amount not  so  used  during  any  year
 shall  be  so used during the following year, failing which such portion
 shall be payable to the commissioner of taxation and  finance  as  addi-

 S. 7639                            53
 
 tional tax. In addition to the amounts required in this paragraph, fifty
 percent  of  all additional sums retained, as a result of tax reductions
 provided in this section after September first, nineteen  hundred  nine-
 ty-four to qualified licensed harness racing associations, shall be used
 exclusively for purposes of increasing purses awarded in overnight races
 conducted by such association or corporation, provided that such associ-
 ation  or  corporation  has  entered  into  a written agreement with its
 representative horsemen's organization on  and  after  September  first,
 nineteen  hundred ninety-four. Notwithstanding anything contained herein
 to the contrary, in a harness special betting district the amount to  be
 used for purses or the methodology for calculating the amount to be used
 for  purses  may  be  specified  in a written contract between a harness
 racing association or  corporation  and  its  representative  horsemen's
 association.  The balance of the retained percentage of such pool may be
 held by such corporation or association for its own use and purposes.
   (iii) Of the amount of the breaks  from  on-track  regular,  multiple,
 exotic  and  super exotic bets such association or corporation shall pay
 fifty [per centum] PERCENT to THE commissioner of taxation and  finance.
 The  balance  of  such  breaks may be held by such association or corpo-
 ration for its own use and purposes.
   (iv) The [state racing and  wagering  board]  COMMISSION  shall  as  a
 condition  of  racing  require  an  association authorized to operate in
 areas other than Westchester or Nassau county to withhold one percent of
 all purses and to pay such sum to the horsemen's organization represent-
 ing the owners and trainers [utilizing] USING  the  facilities  of  such
 association  which  had  a  contract  with the association governing the
 conditions of racing on January first, nineteen hundred  ninety-two,  as
 determined by the [board] COMMISSION.
   Any  other horsemen's organization may apply to the [board] COMMISSION
 to be approved as the qualified organization to receive payment  of  the
 one  percent of all purses by submitting to the [board] COMMISSION proof
 of both, that (i) [it] SUCH ORGANIZATION represents more than  fifty-one
 percent of all the owners and trainers [utilizing] USING the same facil-
 ities and (ii) the horsemen's organization previously approved as quali-
 fied  by  the [board] COMMISSION does not represent fifty-one percent of
 all the owners and trainers [utilizing] USING the  same  facilities.  If
 the  [board]  COMMISSION  is  satisfied that the documentation submitted
 with the application of any other horsemen's organization is  conclusive
 with  respect  to  SUBPARAGRAPHS (i) and (ii) [above] OF THIS PARAGRAPH,
 [it] THE COMMISSION may approve the applicant as the qualified recipient
 organization.
   In the best interests of racing, upon receipt of such an  application,
 the  [board] COMMISSION may direct the payments to the previously quali-
 fied horsemen's organization to continue uninterrupted, or it may direct
 the payments to be withheld and placed in interest-bearing accounts  for
 a  period  not  to  exceed  ninety  days,  during which time the [board]
 COMMISSION shall review and approve or disapprove the application. Funds
 held in such manner shall be paid to the organization  approved  by  the
 [board] COMMISSION. In no event shall the [board] COMMISSION accept more
 than  one such application in any calendar year from the same horsemen's
 organization.
   The funds authorized to be paid by the [board] COMMISSION  are  to  be
 used  exclusively  for  the benefit of those horsemen racing in New York
 state through the administrative purposes of  such  qualified  organiza-
 tion,  benevolent activities on behalf of backstretch employees, and for
 the promotion of equine research.

 S. 7639                            54
 
   c. Of the sums retained by any harness racing  association  or  corpo-
 ration, an amount equal to [three-fifths of] one [per centum] PERCENT of
 the  total  pools  resulting  from on-track regular, multiple and exotic
 bets and an amount equal to three [per  centum]  PERCENT  of  the  total
 pools  resulting  from  on-track  super exotic bets shall be paid to the
 agriculture  and  New  York  state  horse  breeding  development  fund[,
 provided,  however, that after April first, nineteen hundred eighty-six,
 the amount to be paid to the agriculture and New York state horse breed-
 ing development fund shall equal one  per  centum  of  the  total  pools
 resulting  from on-track regular, multiple and exotic bets and an amount
 equal to three per centum of the total pools resulting from super exotic
 bets].
   d. Every harness racing association or corporation shall  pay  to  the
 [gaming]  commission  as  a  regulatory fee, which fee is hereby levied,
 six-tenths of one percent of the total daily on-track pari-mutuel  pools
 of such association or corporation.
   5. Tax rates in event of failure to maintain pari-mutuel racing activ-
 ity.  a.  Notwithstanding  any  other  provision  of this section to the
 contrary, for any calendar year commencing on or  after  January  first,
 nineteen  hundred  eighty-nine, in which a harness racing association or
 corporation does not conduct a minimum number  of  pari-mutuel  programs
 and  pari-mutuel  races  at its facilities equal to at least ninety [per
 centum] PERCENT of the programs and races so conducted  during  nineteen
 hundred  eighty-five or during nineteen hundred eighty-six, whichever is
 less, in lieu of the tax rates set forth  in  subdivision  one  of  this
 section  the  applicable  pari-mutuel  tax rates for such association or
 corporation with respect to on-track pari-mutuel  betting  pools  during
 such year shall be as follows:
   (i)  For  such  an association or corporation authorized to operate in
 Westchester or Nassau county: of total daily  on-track  pools  resulting
 from  regular  bets,  three  and  seventy-five  hundredths  [per centum]
 PERCENT of the first five hundred thousand dollars comprising such pools
 and five and twenty-five hundredths [per centum] PERCENT of  the  amount
 in  excess  of  five  hundred  thousand dollars, plus fifty [per centum]
 PERCENT of the breaks; of total  daily  on-track  pools  resulting  from
 multiple  bets, four and seventy-five hundredths [per centum] PERCENT of
 the first three hundred thousand dollars comprising such pools  and  six
 and  twenty-five hundredths [per centum] PERCENT of the amount in excess
 of three hundred thousand dollars, plus fifty [per  centum]  PERCENT  of
 the  breaks;  of  total daily on-track pools resulting from exotic bets,
 eight and seventy-five hundredths [per centum] PERCENT of the first  two
 hundred  thousand dollars comprising such pools, and ten and twenty-five
 hundredths [per centum] PERCENT of the amount in excess of  two  hundred
 thousand  dollars, plus fifty [per centum] PERCENT of the breaks; and of
 total daily on-track pools resulting from super exotic bets, seven  [per
 centum] PERCENT, plus fifty [per centum] PERCENT of the breaks; and
   (ii)  For any harness racing association or corporation other than one
 described in subparagraph (i) of this paragraph: of total daily on-track
 pools resulting  from  regular  bets,  one  and  one-half  [per  centum]
 PERCENT,  plus  fifty [per centum] PERCENT of the breaks; of total daily
 on-track pools resulting from multiple bets, two [per  centum]  PERCENT,
 plus  fifty  [per centum] PERCENT of the breaks; of total daily on-track
 pools resulting from exotic bets, six and one-half [per centum] PERCENT,
 plus fifty [per centum] PERCENT  of  the  breaks;  and  of  total  daily
 on-track  pools  resulting  from  super  exotic bets, seven [per centum]
 PERCENT, plus fifty [per centum] PERCENT of the breaks.

 S. 7639                            55
 
   b. The provisions of this subdivision shall not apply  to  an  associ-
 ation  or  corporation for any calendar year for which the [state racing
 and wagering board] COMMISSION certifies to the commissioner of taxation
 and finance:
   (i) by December fifteenth of the year immediately preceding such year,
 that  such  association  or corporation has been assigned for such year,
 from the programs and races it requested, at least the minimum number of
 programs and races prescribed in paragraph a of this subdivision, or, if
 fewer than such number were assigned for such year, that the  assignment
 of  such  lesser  number  was  for  good cause due to factors beyond the
 control of such  association  or  corporation  or  because  the  [board]
 COMMISSION  found  that it would be uneconomical or impractical for such
 association or corporation to be assigned the prescribed number; and
   (ii) by January thirty-first of the  year  immediately  subsequent  to
 such  year, that such association or corporation did conduct such number
 of programs and races as were certified pursuant to subparagraph (i)  of
 this paragraph, or if it failed to conduct such number that such failure
 was  for  good  cause  due  to factors beyond its control or because the
 [board] COMMISSION found it uneconomical or impractical for such associ-
 ation or corporation to conduct such a number.
   c. For any calendar year for which  the  [state  racing  and  wagering
 board] COMMISSION does not certify pursuant to the provisions of subpar-
 agraph (i) of paragraph b of this subdivision with respect to an associ-
 ation  or corporation, the tax imposed by this section shall be computed
 by substituting the provisions of paragraph a of  this  subdivision  for
 the provisions of paragraph a or b, whichever is applicable, of subdivi-
 sion  one  of  this  section  and  shall  pay the tax so computed to the
 commissioner of taxation and finance. In such computation  and  payment,
 all other provisions of this section shall apply as if the provisions of
 this  paragraph and of paragraph a of this subdivision had been incorpo-
 rated in whole in paragraph a or b, whichever is applicable, of subdivi-
 sion one of this section.
   d. For any calendar year for which  the  [state  racing  and  wagering
 board] COMMISSION does not certify pursuant to the provisions of subpar-
 agraph  (ii) of paragraph b of this subdivision with respect to an asso-
 ciation or corporation, the tax required to be paid hereunder  for  such
 year  shall  be equal to the difference between the tax imposed pursuant
 to the provisions of paragraph a of this subdivision and the tax imposed
 pursuant to the provisions of paragraph a or b, whichever is applicable,
 of subdivision one of this section, less one-half of such difference  in
 recognition  of  purses  [which]  THAT were required to be paid, plus an
 additional amount equal to ten [per centum] PERCENT of such tax  in  the
 event of a willful failure to comply with the provisions of subparagraph
 (ii)  of  paragraph b of this subdivision and such association or corpo-
 ration shall pay the tax so computed to the commissioner of taxation and
 finance on or before March fifteenth of  the  following  year.  Notwith-
 standing  the  provisions  of  this  subdivision, in the event that upon
 appeal from the determination of the [state racing and  wagering  board]
 COMMISSION that the certification provided in paragraph b of this subdi-
 vision  will  not be made, it is finally determined that [such board was
 erroneous] THE COMMISSION ERRED in failing to so certify  and  that  any
 moneys  received by the commissioner of taxation and finance under para-
 graph c of this subdivision were  paid  in  error,  the  same  shall  be
 refunded  at  the  rate of interest of six percent per annum. Payment of
 such tax due, or the anticipation of such payment, shall not affect  the
 determination  of  purses in the year in which such tax arises or in the

 S. 7639                            56
 
 year in which such payment is made nor shall such payment in  any  other
 manner  be  considered  in  any  statutory or [contractural] CONTRACTUAL
 calculation of purse obligations.
   e.  Written  notice  of  the  certification  of the [board] COMMISSION
 pursuant to the provisions of paragraph b of this subdivision  shall  be
 given  by the [board] COMMISSION to the [appplicable] APPLICABLE associ-
 ation or corporation by the dates therein  specified.  In  like  manner,
 written  notice  that such certification will not be made shall be given
 by the [board] COMMISSION to the commissioner of  taxation  and  finance
 and the applicable association or corporation by such dates.
   §  58.  Section  319  of the racing, pari-mutuel wagering and breeding
 law, as added by chapter 687 of the  laws  of  1983,  subdivision  2  as
 amended by chapter 532 of the laws of 1989, paragraph (a) of subdivision
 2  as  amended  by  chapter  2  of the laws of 1995 and subdivision 3 as
 amended by chapter 116 of the laws  of  2001,  is  amended  to  read  as
 follows:
   §  319.  Capital  improvements.  1. [Definitions.] For the purposes of
 this section, [the following terms shall have  the  meanings  set  forth
 unless the context requires a different meaning:
   a. "Board" shall mean the New York state racing and wagering board.
   b.  "Capital]  "CAPITAL  improvement"  shall  mean  any  addition  to,
 replacement of or remodeling  of  the  physical  plant,  structures  and
 equipment  now  or  hereafter owned or leased by a racing corporation or
 association [which] THAT is used or is to be used by such corporation or
 association in connection with the conduct of horse race  meetings,  and
 shall include improvements to land but not land itself.
   2.  (a)  Notwithstanding the provisions of section three hundred eigh-
 teen of this article, a harness track, may elect upon thirty days  writ-
 ten notice to the [racing and wagering board] COMMISSION to withhold, in
 addition to any other amounts required by this section, one [per centum]
 PERCENT of the total deposits in pools resulting from regular and multi-
 ple bets, provided, however, that any harness track withholding pursuant
 to  this  subdivision  shall use at least fifty percent of such one [per
 centum] PERCENT exclusively  for  capital  improvements  as  defined  in
 subdivision  one of this section subject to the rules and regulations of
 the [racing and wagering board] COMMISSION.   An amount, not  to  exceed
 fifty  percent  of such one [per centum] PERCENT, may be used for adver-
 tising and promotion expenses subject to the rules  and  regulations  of
 the  [board] COMMISSION.  Provided further, however, that if the harness
 track was owned prior to December thirty-first, nineteen hundred  eight-
 y-five,  by  a  nonprofit  county  agricultural  society and leased by a
 racing association such one [per centum] PERCENT shall be  paid  by  the
 association  to  the  society as additional rent. Such society shall use
 such one [per centum] PERCENT exclusively for  capital  improvements  as
 defined  in  subdivision  one  of  this section subject to the rules and
 regulations of the [racing and wagering board] COMMISSION.  The  capital
 improvements  shall be determined by a committee of the society composed
 of the executive director of the society, the [chairman]  CHAIR  of  the
 board  of  directors  of the racing association, or his OR HER designee,
 and the general manager of the racing association. For the  purposes  of
 this paragraph the term "advertising" shall be limited to paid advertis-
 ing  through  radio,  television,  the print media, direct mail or bill-
 boards. Promotions shall mean activities [which] THAT  are  intended  to
 increase  the attendance at, or visibility of, a harness track and shall
 include premium [give-aways] GIVEAWAYS,  prizes,  free  admission,  free
 parking, free programs, additional monies for purses or other activities

 S. 7639                            57

 of a promotional nature which stimulate on track attendance. In no event
 shall  this  section  be  construed to permit the payment of salaries to
 employees of such a harness track who  are  engaged  in  advertising  or
 promotional activities.
   (b)  At  least  once  annually,  prior  to  approving any plan for the
 expenditure of such capital improvement funds pursuant to this  section,
 the  [board]  COMMISSION  shall,  together  with  the track operator and
 representatives of the horsemen's organization representing  owners  and
 trainers  [utilizing]  USING  the facility, inspect the entire facility,
 including the area commonly referred to as the backstretch, in order  to
 determine  whether the capital improvement plan submitted by the associ-
 ation or corporation for [board] COMMISSION approval  includes  adequate
 provision  for expenditures relating to the continued health, safety and
 well-being of patrons, backstretch personnel and  the  horses  in  their
 care.  After  such inspection, if the [board] COMMISSION shall determine
 that such proposed plan does not include adequate provision for  repairs
 and  improvements necessary to correct any conditions that it has deter-
 mined to be unsafe or otherwise deleterious to the health and safety  of
 patrons,  employees  or horses, the [board] COMMISSION shall require the
 track operator to modify its capital improvement plan to provide for the
 expenditure of funds for such repairs and improvements.
   3. On or after July first, nineteen hundred ninety for a harness track
 other than a harness track  authorized  to  operate  in  Westchester  or
 Nassau  county  or a harness track owned by a non-profit county agricul-
 tural society and leased by a harness racing association such amounts as
 may be withheld for the purposes of this section shall be deposited in a
 trust fund, kept and maintained by such corporation or  association  and
 administered  by  a  trustee approved by the [racing and wagering board]
 COMMISSION for the purpose of lending such sums and any interest thereon
 on an unsecured basis to such corporation or association exclusively for
 capital improvements as defined in subdivision one of this section.  All
 such amounts borrowed by such corporation or association from such trust
 shall be forgiven and deemed satisfied according to a schedule of depre-
 ciation  deductions  for  federal and New York state income tax purposes
 for such related capital improvements. It is further  provided  that  at
 such  time  as such corporation or association shall surrender its pari-
 mutuel license or fail to  apply  for  a  pari-mutuel  license  for  the
 succeeding  year by December thirty-first of the preceding year that the
 [racing and wagering board] COMMISSION may declare the trust fund at  an
 end  and all sums therein deposited plus all sums due or owing from such
 corporation or association to such trust shall be disposed of in accord-
 ance with provisions of law to be enacted for such purpose; except  that
 the  [racing  and wagering board] COMMISSION shall direct that such sums
 therein deposited and all sums due and owing from  such  corporation  or
 association  be  transferred to the credit of a successor in interest to
 such corporation or association upon the licensing of such successor  in
 interest  by the [board] COMMISSION. Such trust shall be established and
 administered pursuant to the rules and regulations of  the  [racing  and
 wagering board] COMMISSION.
   § 59. Section 320 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  320.  Revocation of license.  The [state racing and wagering board]
 COMMISSION may revoke or suspend a license for the  conduct  of  harness
 race meetings at which pari-mutuel betting is conducted:
   a.  For  any cause [which] THAT would permit or require its refusal to
 issue a license, or

 S. 7639                            58

   b. If it shall determine that: the corporation or association to which
 such license shall have been issued, or its officers or directors,  fail
 to  conduct  racing  at  its track, including pari-mutuel betting on the
 races thereat, in accordance with  the  terms  and  conditions  of  such
 license,  the  rules of [such board] THE COMMISSION or of the [state tax
 commission] DEPARTMENT OF TAXATION AND FINANCE,  or  the  provisions  of
 sections two hundred twenty-two through seven hundred five of this chap-
 ter,  or if such corporation or association or its officers or directors
 shall knowingly permit on its grounds or within  the  enclosure  of  its
 racetrack,  lotteries,  pool-selling or bookmaking, or any other kind of
 gambling, in violation of sections two hundred twenty-two through  seven
 hundred five of this chapter or of the penal law.
   § 60. Section 321 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  321.  Hearing  of  refusal or revocation of license.  If the [state
 racing and wagering board shall refuse] COMMISSION REFUSES  to  grant  a
 license  applied for under sections two hundred twenty-two through seven
 hundred five of this chapter, or [shall  revoke]  REVOKES  or  [suspend]
 SUSPENDS such a license granted by it, or [shall impose] IMPOSES a mone-
 tary fine upon a participant in harness racing the applicant or licensee
 or  party  fined  may demand, within ten days after notice of [the said]
 SUCH act of the [board] COMMISSION, a hearing before the [board] COMMIS-
 SION and the [board] COMMISSION shall give prompt notice of a  time  and
 place  for  such  hearing at which the [board] COMMISSION will hear such
 applicant or licensee or party fined in reference thereto.  Pending such
 hearing and final determination [thereon], the  action  of  the  [board]
 COMMISSION  in  refusing to grant or in revoking or suspending a license
 or in imposing a monetary fine shall remain in full  force  and  effect.
 The  [board]  COMMISSION may continue such hearing from time to time for
 the convenience of any of the parties. Any of the  parties  affected  by
 such  hearing  may be represented by counsel, and the [board] COMMISSION
 may be represented by the attorney general, a deputy attorney general or
 its counsel. In the conduct of such hearing the [board] COMMISSION shall
 not be bound by technical rules of evidence, but  all  evidence  offered
 before  the  [board]  COMMISSION  shall  be reduced to writing, and such
 evidence together with the exhibits, if any, and  the  findings  of  the
 [board]  COMMISSION, shall be permanently preserved and shall constitute
 the record of the [board] COMMISSION in such case.  In  connection  with
 such hearing, each member of the [board] COMMISSION shall have the power
 to  administer  oaths  and examine witnesses, and may issue subpoenas to
 compel attendance of witnesses, and the production of all  material  and
 relevant  reports,  books,  papers,  documents, correspondence and other
 evidence. The [board] COMMISSION may,  if  occasion  shall  require,  by
 order,  refer  to  one  or  more of its members or officers, the duty of
 taking testimony in such matter, and to report thereon  to  the  [board]
 COMMISSION,  but  no  determination  shall be made therein except by the
 [board] COMMISSION.  Within thirty days after  the  conclusion  of  such
 hearing,  the  [board]  COMMISSION  shall make a final order in writing,
 setting forth the reasons for the action taken by it and a copy  thereof
 shall  be  served  on  such applicant or licensee or party fined, as the
 case may be. The action of the [board] COMMISSION in refusing to grant a
 license or in revoking or suspending a license or in imposing a monetary
 fine shall be reviewable in the supreme court in the manner provided  by
 the  provisions  of  article seventy-eight of the civil practice law and
 rules.

 S. 7639                            59
 
   § 61. Section 322 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:
   §  322.  Approval  of plans of corporation or association.  The [state
 racing and wagering board] COMMISSION shall not grant to  a  corporation
 or  association  hereafter formed pursuant to sections two hundred twen-
 ty-two through seven hundred five of this chapter, a license to  conduct
 a  harness  race  meeting  at which pari-mutuel betting may be conducted
 within the state  until  such  corporation  or  association  shall  have
 submitted  to  the [board] COMMISSION a statement of the location of its
 proposed grounds and racetrack, together with a plan of such  racetrack,
 and  plans of all buildings, seating stands and other structures in such
 form as the [board] COMMISSION may prescribe, and such plans shall  have
 been  approved  in  writing by the [board] COMMISSION.  Such plans shall
 show that its paddock and barn areas can accommodate and serve the needs
 of horses and horse trainers that participate in  live  racing  at  such
 facility.  Alterations  or discontinuance of existing buildings, seating
 stands and other structures, and  the  erection  of  new  or  additional
 buildings,  seating stands or other structures may be made only with the
 prior written approval of the [board] COMMISSION and  after  examination
 and  inspection of the plans thereof and the issuance of a permit there-
 for by the [state racing and wagering board] COMMISSION.    The  [board]
 COMMISSION  at  the  expense of the applicant may order such engineering
 examination thereof as the [board] COMMISSION may  deem  necessary.  The
 approval  of  the  certificate  of  incorporation of such corporation or
 association shall not be deemed to vest in it the right to a license  to
 conduct  harness  race  meetings at such race course or racetrack unless
 such grounds, track, buildings,  seating  stands  and  other  structures
 shall  be completed in accordance with the plans approved by the [board]
 COMMISSION.
   § 62. Section 324 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as  amended by chapter 370 of the laws of 2011, is amended to read
 as follows:
   § 324. Free or reduced fee passes, cards or badges. A  corporation  or
 association  licensed  to  conduct  pari-mutuel betting on harness horse
 races run at its racetrack may issue free passes, cards or badges to any
 qualified person. A qualified person shall  include,  but  need  not  be
 limited  to,  officers  and  employees of the corporation or association
 conducting the race meeting, members, officers,  and  employees  of  the
 [state  racing and wagering board] COMMISSION, members of harness racing
 associations of other states  and  foreign  countries,  public  officers
 engaged  in  the  performance of their duties, persons actually employed
 and accredited by the press to  attend  such  meetings,  owners,  stable
 managers, trainers, drivers, concessionaires, spouses, domestic partners
 and children of owners, trainers and drivers, other persons whose actual
 duties require their presence at such racetrack, and any other person or
 guest  deemed  appropriate  by such corporation or association. In addi-
 tion, free or reduced fee passes, cards or badges may be issued  to  the
 general  public or segments of the general public in connection with any
 promotional campaign or marketing program sponsored by such  corporation
 or  association  to increase attendance at live race meets. The issuance
 of free passes, cards or badges shall be under the rules and regulations
 of the [state racing and wagering board] COMMISSION.
   § 63. Subdivisions 1 and 2 of section 330 of the  racing,  pari-mutuel
 wagering and breeding law, subdivision 1 as amended and subdivision 2 as

 S. 7639                            60
 
 added  by  section  12  of part A of chapter 60 of the laws of 2012, are
 amended to read as follows:
   1.  There  is  hereby  created  within the state gaming commission the
 "agriculture and New York state horse breeding development  fund".  Such
 fund shall be a body corporate and politic constituting a public benefit
 corporation. It shall be administered by a board of directors consisting
 of  the  [chairman] CHAIR of the [state gaming] commission or his or her
 designee, the commissioner of agriculture and markets, and three members
 appointed by the governor, all of whom  are  experienced  or  have  been
 actively  engaged  in  the  breeding  of standardbred horses in New York
 state, one upon the recommendation of the  temporary  president  of  the
 senate  and  one upon the recommendation of the speaker of the assembly.
 The governor shall designate the chair from among the sitting members OF
 SUCH BOARD OF DIRECTORS, who shall serve as such at the pleasure of  the
 governor.  Appointed  members  shall  serve for a term of four years and
 shall continue to hold office until their successors are  appointed  and
 qualified.  The  members  of  the  BOARD  OF DIRECTORS OF THE fund shall
 receive no compensation from the fund for their services as such members
 but shall be reimbursed by the fund for the expenses actually and neces-
 sarily [incurred by them] THEY INCUR in the performance of their  duties
 under sections two hundred twenty-two through seven hundred five of this
 chapter. Such fund shall have perpetual existence and shall exercise all
 powers  authorized  by  this chapter and reasonably necessary for accom-
 plishing its purposes. Such powers shall be exercised in the name of the
 fund.
   2. The board OF DIRECTORS OF THE FUND may delegate to one or  more  of
 the  members  or  officers  of the fund such powers and duties as it may
 deem proper and shall [utilize] USE, pursuant to a contract OR  MEMORAN-
 DUM OF UNDERSTANDING approved by the director of the budget, the service
 employees  of  the  [state  gaming]  commission  and the state office of
 racing promotion and development.
   § 64. Section 401 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 401. General powers of [state racing and wagering board] COMMISSION.
 1. Pursuant to the provisions of sections two hundred twenty-two through
 seven hundred five of this  chapter,  the  [state  racing  and  wagering
 board]  COMMISSION  shall  have power to supervise generally all quarter
 horse race meetings in  this  state  at  which  pari-mutuel  betting  is
 conducted.  The  [board]  COMMISSION may adopt rules and regulations not
 inconsistent with sections two hundred twenty-two through seven  hundred
 five  of  this  chapter to carry into effect its purposes and provisions
 and to prevent circumvention or evasion thereof. In order that the rules
 of quarter horse racing may be uniform throughout the United States, the
 [board] COMMISSION may adopt the rules and regulations of  the  American
 Quarter Horse Association, in whole or in part, and may adopt such other
 or  different  rules  as  it  deems  necessary  to carry into effect the
 purposes and provisions of sections two hundred twenty-two through seven
 hundred five of this chapter.
   2. Without limiting the generality of the foregoing, and  in  addition
 to its other powers:
   a.  The  [state racing and wagering board] COMMISSION shall have power
 to fix minimum and maximum charges for admission to quarter  horse  race
 meetings  at  which  pari-mutuel betting is conducted provided, however,
 that the [state racing and wagering board] COMMISSION shall  have  power
 to  fix  the  charge for admission of members of the armed forces of the

 S. 7639                            61
 
 United States in uniform at one-half of the amount fixed for such admis-
 sion generally under authority of this section.
   b.  The  [state  racing and wagering board] COMMISSION shall prescribe
 rules and regulations for effectually preventing  the  use  of  improper
 devices,  the  administration  of  drugs or stimulants or other improper
 acts for the purpose of affecting the speed of  quarter  horses  in  any
 race in which they are about to participate.
   c.  The  rules  of  the [board] COMMISSION shall also provide that all
 winning pari-mutuel tickets must be presented for payment  before  April
 first  of  the  year following the year of their purchase and failure to
 present any such ticket within  the  prescribed  period  of  time  shall
 constitute  a  waiver  of the right to participate in the award or divi-
 dend.
   d. The [board] COMMISSION shall have power in its discretion, consist-
 ent with the powers of the [state tax commission] DEPARTMENT OF TAXATION
 AND FINANCE, to prescribe uniform methods of keeping  accounts,  records
 and  books to be observed by associations or corporations licensed under
 the provisions of this article or  by  any  association  or  corporation
 [which] THAT owns stock in, or shares in the profits, or participates in
 the  management or affairs of, such licensed association or corporation,
 or by any person, firm, association or corporation holding  any  conces-
 sion,  right  or privilege to perform any service or sell any article at
 any track at which pari-mutuel quarter horse racing meets are conducted.
 The [board] COMMISSION may also in its discretion, consistent  with  the
 powers of the [state tax commission] DEPARTMENT OF TAXATION AND FINANCE,
 prescribe  by  order forms of accounts, records and memoranda to be kept
 by such  persons,  firms,  associations  or  corporations.  The  [board]
 COMMISSION  shall  have  power  to  visit, investigate, and place expert
 accountants, or such other persons as it  may  deem  necessary,  in  the
 offices,  tracks  or  other places of business of any such person, firm,
 association or corporation for the purpose of seeing that the provisions
 of sections two hundred twenty-two through seven hundred  five  of  this
 chapter and rules and regulations issued by the [board] COMMISSION ther-
 eunder  are strictly complied with. Such persons, firms, associations or
 corporations shall annually file with the [board]  COMMISSION,  on  such
 date  as  the [board] COMMISSION shall prescribe, a report showing their
 financial condition and financial transactions during the  fiscal  year,
 including  a  balance sheet and a profit and loss statement, verified by
 the oath of at least two of its principal officers, if it be an  associ-
 ation  or  corporation having officers, and by one or more of the owners
 or proprietors thereof if not an association or corporation. The  report
 shall  be  in  such  form  and contain such other matters as the [board]
 COMMISSION may determine from time to time to be necessary  to  disclose
 accurately the financial condition and operation of such persons, firms,
 associations  or  corporations  during  the  preceding  fiscal year. The
 [board] COMMISSION may for good cause shown grant a reasonable extension
 of time for the filing of any such report.
   § 65. The second undesignated paragraph of section 402 of the  racing,
 pari-mutuel wagering and breeding law is amended to read as follows:
   No  certificate of incorporation under this section shall hereafter be
 filed without the approval of the  [state  racing  and  wagering  board]
 COMMISSION indorsed thereon or annexed thereto.
   § 66. Section 403 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 403. Filing of information concerning stock transfers; necessity for
 [board's]  COMMISSION approval. 1. Whenever THERE IS a transfer of stock

 S. 7639                            62
 
 of any association or corporation [which] THAT is  licensed  under  this
 article,  or  of  any  association or corporation [which] THAT leases to
 such licensee the track at [which] THAT it conducts pari-mutuel  quarter
 horse  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]  THAT  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 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 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  [board]  COMMISSION; if the transferee is not, or is not to be, the
 sole beneficial owner thereof, then there shall be annexed to said affi-
 davit 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
 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 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] COMMISSION; 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, including a detailed statement
 of the interest therein of each person who is to have any interest ther-
 ein.
   c.  Said  association  or  corporation  shall  forthwith file with the
 [board] COMMISSION one of each of said duplicate affidavits.
   2. If, after the filing of any affidavit [hereinabove] required to  be
 filed  BY  SUBDIVISION  ONE OF THIS SECTION, there [be] IS 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)] PARAGRAPH A OR B
 of subdivision one of this section, of the affidavit [theretofore] filed
 by [him] SUCH AFFIANT, THEN such affiant shall forthwith file  with  the
 association  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 association  or  corporation  shall  forthwith
 file one of said affidavits with the [board] COMMISSION.
   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  IN  THIS

 S. 7639                            63
 
 SECTION,  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] THAT issued such stock, in dupli-
 cate, 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)]  PARAGRAPH
 A OR B of subdivision 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] COMMISSION.
   4.  The  [board] COMMISSION may, upon application to it for good cause
 shown, waive compliance with subdivisions one, two  and  three  of  this
 section.
   5.  If  the [board] COMMISSION determines that it is inconsistent with
 the public interest, convenience or necessity, or with the  best  inter-
 ests  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]  THAT  leases
 to  such  licensee  the  track  at which it conducts pari-mutuel quarter
 horse racing or [which] THAT owns twenty-five percent  or  more  of  the
 stock of such licensee, the [board] COMMISSION shall have full power and
 authority  to  order or direct each such stockholder or beneficial owner
 irrespective of the time  when  such  stockholder  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  specified  by  the  [board]
 COMMISSION,  which  period  the [board] COMMISSION shall have full power
 and authority to extend from time to time.
   6. If the [board] COMMISSION shall make  any  order  or  direction  as
 provided  in  subdivision  five  of  this  section, the person aggrieved
 thereby shall be given notice of the time and place of a hearing  before
 the  [board]  COMMISSION  at  which  the  board will hear such person in
 reference thereto. The action of the [board] COMMISSION  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.  Upon  application  of the [board] COMMISSION, the supreme court of
 this state 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] COMMISSION under subdivi-
 sion five of this section.
   8. In case of conflict between this section and article eight  of  the
 uniform commercial code, this section shall control.
   § 67. Section 404 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 404. Right to hold quarter horse race meetings and races. Any corpo-
 ration  formed  under the provisions of the pari-mutuel revenue law, and
 any corporation and association [which] THAT shall have conducted  quar-
 ter  horse  race meetings during two years prior to the enactment of the
 pari-mutuel revenue law, and any town  or  county  fair  association  or
 other fair association shall have the power and the right to hold one or
 more  quarter horse race meetings in each year and to hold, maintain and
 conduct quarter horse races at such meetings. At such quarter horse race
 meetings the corporation or association, or the owners of horses engaged
 in such races, or others who are  not  participants  in  the  race,  may
 contribute  purses,  prizes, premiums or stakes to be contested for, but
 no person or persons other than the owner or owners of a horse or horses

 S. 7639                            64
 
 contesting in a race shall have  any  pecuniary  interest  in  a  purse,
 prize, premium or stake contested for in such race, or be entitled to or
 receive  any  portion thereof after such race is finished, and the whole
 of  such  purse, prize, premium or stake shall be allotted in accordance
 with the terms and conditions of such race. [Such meeting shall  not  be
 held except during the period extending from the first day of January to
 the  thirty-first  day  of December, inclusive in each year.] Such power
 and right, however, shall not include the right to  conduct  pari-mutuel
 betting  at  such quarter horse race meetings except pursuant to license
 granted by the [state racing and wagering board] COMMISSION pursuant  to
 sections two hundred twenty-two through seven hundred five of this chap-
 ter.
   § 68. Section 405 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  405.  Pari-mutuel betting at quarter horse races. No more than five
 corporations or associations shall be licensed by the [state racing  and
 wagering board] COMMISSION in any one year to conduct a pari-mutuel meet
 or  meets.  Said pari-mutuel betting conducted at such meetings shall be
 under the general supervision and  control  of  the  [state  racing  and
 wagering board] COMMISSION which shall make rules regulating the conduct
 of  such  pari-mutuel  betting  in  accordance  with  the  provisions of
 sections two hundred twenty-two through seven hundred five of this chap-
 ter. The [state tax commission] DEPARTMENT OF TAXATION  AND  FINANCE  is
 charged  with  the  financial  administration  of pari-mutuel betting as
 prescribed in this article and as supplemented by the  rules  and  regu-
 lations of the [board] COMMISSION. The [state tax commission] DEPARTMENT
 OF  TAXATION AND FINANCE shall have authority to prescribe the forms and
 the system of accounting to be employed, and through its representatives
 shall at all times have power of access to and examination of any equip-
 ment relating to such betting.
   § 69. Section 407 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 407. Licenses for quarter horse race meetings. 1. Any association or
 corporation desiring to conduct quarter horse  race  meetings  at  which
 pari-mutuel  betting shall be permitted may apply annually to the [state
 racing and wagering board] COMMISSION for a license so to do. If, in the
 judgment of [such board] THE COMMISSION the public interest, convenience
 or necessity will be served thereby and a proper case for  the  issuance
 of  such  license  is shown consistent with the purposes of sections two
 hundred twenty-two through seven hundred five of this  chapter  and  the
 best  interests  of racing generally, [it] THE COMMISSION may grant such
 license for a time ending not later than the thirty-first day of  Decem-
 ber  next,  specifying  dates and hours during which and the place where
 the licensee may operate.
   2. Every such license shall be issued upon condition:
   a. [That] THAT every quarter horse race meeting at  which  pari-mutuel
 betting  is  conducted shall be subject to the supervision of and to the
 reasonable rules and regulations from time to  time  prescribed  by  the
 [state racing and wagering board] COMMISSION, and
   b.  [That] THAT pari-mutuel betting conducted thereunder shall also be
 subject to the supervision of and to  the  reasonable  regulations  from
 time  to  time  prescribed  by  the [state tax commission] DEPARTMENT OF
 TAXATION AND FINANCE. Any such license may also be issued upon any other
 condition that the [state racing and wagering  board]  COMMISSION  shall
 determine  to be necessary or desirable to insure that the public inter-
 est, convenience or necessity is served.

 S. 7639                            65
 
   3. Applications  for  licenses  shall  be  in  such  form  as  may  be
 prescribed  by the [board] COMMISSION and shall contain such information
 or other material or evidence as the  [board]  COMMISSION  may  require.
 Each  application  for  renewal  of  a  license shall be deemed to be an
 application  for  a  new license. The fee for such licenses shall be one
 hundred dollars for each racing day payable in installments  in  advance
 of  each week's racing which sums shall be paid into the general fund of
 the state treasury by the [board] COMMISSION.   The term  "racing  week"
 shall  include those days as defined by the rules and regulations of the
 [state racing and wagering board] COMMISSION.
   4. In considering an application for a license under this section  the
 [state  racing  and wagering board] COMMISSION may give consideration to
 the number of licenses already granted and to the location of the tracks
 previously licensed.   No such license shall be  granted  to  any  track
 located  within  the  corporate  limits of a city of the first class. No
 such license shall be granted to any  quarter  horse  racetrack  located
 within  fifty  miles  of  any  existing harness, thoroughbred or quarter
 horse track except with the consent of the licensee located within  such
 [fifty mile] FIFTY-MILE area, provided, however, that in the counties of
 Suffolk, Niagara and Albany such license shall be granted to any quarter
 horse  racetrack  located  more than thirty-five miles from any existing
 harness, thoroughbred or quarter horse track, except with the consent of
 the licensee located within such thirty-five mile area.
   5. The [board] COMMISSION may refuse to grant a license to an  associ-
 ation  or  corporation if [it shall determine] THE COMMISSION DETERMINES
 that:
   a. any officer, director, member or stockholder of such association or
 corporation applying for a license, or of any association or corporation
 [which] THAT owns stock or shares in the profits or participates in  the
 management,  of the affairs of such applicant, or [which] THAT leases to
 such applicant the track where [it] SUCH APPLICANT shall operate HAS:
   (i) [has] been convicted of a 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 suspension from
 racing might be imposed in such jurisdiction; OR
   (v) [has] violated any  rule,  regulation  or  order  of  the  [board]
 COMMISSION; or
   b. the experience, character or general fitness of any officer, direc-
 tor  or stockholder of any of the aforesaid associations or corporations
 is such that the participation of such person in quarter horse racing or
 related activities would  be  inconsistent  with  the  public  interest,
 convenience or necessity or with the best interests of racing generally;
 but if the [board] COMMISSION determines that the interest of any stock-
 holder  referred to in this paragraph or in paragraph a of this subdivi-
 sion is insufficient in the opinion of the [board] COMMISSION to  affect
 adversely  the conduct of pari-mutuel quarter horse racing by such asso-
 ciation or corporation in accordance with the provisions of  this  arti-
 cle,  the  [board] COMMISSION may disregard such interest in determining
 whether or not to grant a license to such association or corporation; or
   c. the applicant is not the owner  of  the  track  at  which  it  will
 conduct pari-mutuel quarter horse racing pursuant to the license applied
 for, or that any person, firm, association or corporation other than the
 applicant  shares, or will share, in the profits of the applicant, other

 S. 7639                            66
 
 than by dividends as a stockholder, or participates or will  participate
 in the management of the affairs of the applicant.
   6.  The  [board] COMMISSION shall also have power to refuse to grant a
 license:
   a. to any association or corporation, the charter  or  certificate  of
 incorporation  of  which shall fail to contain a provision requiring any
 stockholder, upon written demand of the association or  corporation,  to
 sell his OR HER stock to the association or corporation at a price to be
 fixed in the manner provided in article five of the business corporation
 law,  provided  such demand be made pursuant to written direction of the
 [board] COMMISSION; and from and after the date of the  making  of  such
 demand, prohibiting the transfer of such certificate of stock, except to
 the association or corporation; or
   b.  to  any  association  or  corporation  [which] THAT, having been a
 licensee, has failed in the opinion of the [board] COMMISSION to proper-
 ly maintain its track and plant in good condition or has failed to  make
 adequate  provision  for  rehabilitation and capital improvements to its
 track and plant.
   7. Pending final determination of any question under this section, the
 [board] COMMISSION may issue a temporary license  upon  such  terms  and
 conditions  as  it may deem necessary, desirable or proper to effectuate
 the provisions of sections two hundred twenty-two through seven  hundred
 five of this chapter.
   8.  Notwithstanding  any  other  provision of this article, the [state
 racing and wagering board] COMMISSION may grant a license to any author-
 ized quarter horse racing association or corporation to hold and conduct
 one additional quarter horse race meeting of not more  than  one  racing
 week's  duration,  with  pari-mutuel  betting, on any quarter mile track
 within this state.
   9. The [board] COMMISSION  shall  have  power  to  direct  that  every
 certificate  of  stock  of any association or corporation licensed under
 the provisions of sections two hundred twenty-two through seven  hundred
 five  of  this  chapter  shall  bear  a  legend  plainly and prominently
 imprinted upon the face of the certificate reading: "This certificate of
 stock is transferable only subject to the  provisions  of  section  four
 hundred three of the racing, pari-mutuel wagering and breeding law".
   § 70. Section 408 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 408.  Officials at quarter horse race meetings. At all quarter horse
 race  meetings licensed by the [state racing and wagering board] COMMIS-
 SION in accordance with provisions of sections  two  hundred  twenty-two
 through  seven hundred five of this chapter, qualified judges and start-
 ers shall be designated by the [state racing and wagering board] COMMIS-
 SION. Such officials shall enforce the  rules  and  regulations  of  the
 [state  racing  and  wagering board] COMMISSION and shall render regular
 written reports of the activities and conduct of such race  meetings  to
 the [state racing and wagering board] COMMISSION.
   §  71.  Section  409  of the racing, pari-mutuel wagering and breeding
 law, subdivision 1 as amended by chapter 164 of the  laws  of  2003,  is
 amended to read as follows:
   §  409.  Licenses for participants and employees at quarter horse race
 meetings.  1. For the purpose of maintaining a proper control over quar-
 ter horse race meetings conducted pursuant to sections two hundred twen-
 ty-two through seven hundred five of this chapter, the [state racing and
 wagering board] COMMISSION may license jockeys or riders and such  other
 persons  participating  in  quarter  horse  race  meets,  as the [board]

 S. 7639                            67
 
 COMMISSION may by rule prescribe, including, if the [board deem] COMMIS-
 SION DEEMS it necessary [so] to do SO, owners, and some or  all  persons
 exercising  their  occupation  or  employed at quarter horse race meets.
 Each  applicant  for  a  license  shall pay to the [board] COMMISSION an
 annual license fee as follows: owner's  license,  if  a  renewal,  fifty
 dollars,  and if an original application, one hundred dollars; trainer's
 license, twenty dollars; assistant trainer's  license,  twenty  dollars;
 jockey's license, fifty dollars; jockey agent's license, twenty dollars;
 farrier's  license,  twenty dollars; and stable employee's license, five
 dollars. Such fees shall be paid to the [board]  COMMISSION  and  by  it
 paid into the state treasury. The [board] COMMISSION may by rule fix the
 license  fees to be paid by other persons required to be licensed by the
 rules of the [board] COMMISSION, not to exceed twenty dollars per  cate-
 gory.  All  such  licenses,  unless  revoked for cause, shall be for the
 period of no more than one, two or three years, as determined by rule of
 the [board] COMMISSION, expiring on the applicant's birth date. Licenses
 current on the effective date of this provision shall not be reduced  in
 duration by this provision. An applicant who applies for a license that,
 if  issued,  would  take effect less than six months prior to the appli-
 cant's birth date may, by payment of a fifty percent higher fee, receive
 a license [which] THAT shall not expire  until  the  applicant's  second
 succeeding  birth  date. For each category of license, the applicant may
 apply for a [two] TWO- or [three year] THREE-YEAR license by payment  to
 the  [board]  COMMISSION  of the appropriate multiple of the annual fee.
 The applications for licenses shall be in writing, accompanied by  fing-
 erprints  and  a photograph of the applicant, and shall be in such form,
 and contain such  other  information,  as  the  [board]  COMMISSION  may
 require.  Such fingerprints shall be submitted to the division of crimi-
 nal justice services for a  state  criminal  history  record  check,  as
 defined  in subdivision one of section three thousand thirty-five of the
 education law, and may be submitted to the federal  bureau  of  investi-
 gation for a national criminal history record check.
   Every  person  employed by such association or corporation licensed to
 conduct pari-mutuel quarter horse racing, including officers and  direc-
 tors thereof, whether or not such person be licensed, shall file finger-
 prints  and  a photograph with the [board] COMMISSION within thirty days
 after being so employed or taking such  office.  Every  person  employed
 after  January  first, nineteen hundred seventy-one, by such association
 or corporation, including officers and directors thereof, whether or not
 such person be licensed, shall file fingerprints and a  photograph  with
 the  [board]  COMMISSION  within ten days after such employment or after
 taking such office. The fingerprints so  obtained  from  applicants  for
 licenses and from employees not to be licensed shall be forthwith trans-
 mitted  by  the  [board]  COMMISSION to the division of criminal justice
 services and may also be submitted to the  federal  bureau  of  investi-
 gation  or  any  other  government agency having facilities for checking
 fingerprints for the purpose of establishing the identity and the previ-
 ous criminal record, if any,  of  such  person  and  such  agency  shall
 promptly report its findings to the [board] COMMISSION in writing.
   2.  If  the  [board  shall find] COMMISSION FINDS that the experience,
 character and general fitness of the applicant are such that the partic-
 ipation of such person in quarter horse race meets  will  be  consistent
 with  the  public  interest, convenience and necessity and with the best
 interests of  racing  generally  in  conformity  with  the  purposes  of
 sections two hundred twenty-two through seven hundred five of this chap-
 ter, [it] THE COMMISSION may [thereupon] grant a license.

 S. 7639                            68
 
   Without  limiting the generality of the foregoing, the [board] COMMIS-
 SION may refuse to issue a license, pursuant to  this  section,  if  [it
 shall find] THE COMMISSION FINDS that the applicant HAS:
   a. [Has] been convicted of a crime involving moral turpitude;
   b. [Has] engaged in bookmaking or other form of illegal gambling;
   c.  [Has]  been  found  guilty  of  any  fraud or misrepresentation in
 connection with racing or breeding;
   d. [Has] been found guilty of any violation or attempt to violate  any
 law,  rule or regulation of racing in any jurisdiction for which suspen-
 sion from racing might be imposed in such jurisdiction; or
   e. [Who has] violated any rule, regulation or  order  of  the  [board]
 COMMISSION.  The  [board]  COMMISSION  may  suspend  or revoke a license
 issued pursuant to this section if [it shall determine]  THE  COMMISSION
 DETERMINES  that (i) the applicant or licensee (1) has been convicted of
 a crime involving moral turpitude; (2)  has  engaged  in  bookmaking  or
 other  form  of illegal gambling; (3) has been found guilty of any fraud
 in connection with racing or  breeding;  (4)  has  been  guilty  of  any
 violation  or  attempt  to  violate  any  law, rule or regulation of any
 racing jurisdiction for which suspension from racing might be imposed in
 such jurisdiction; or (5) [who] has violated  any  rule,  regulation  or
 order  of the [board] COMMISSION, or (ii) [that] the experience, charac-
 ter or general fitness of any applicant or licensee  is  such  that  the
 participation  of  such person in quarter horse racing or related activ-
 ities would be inconsistent with the  public  interest,  convenience  or
 necessity or with the best interests of racing generally.
   3. Pending final determination of any question under this section, the
 [board]  COMMISSION  may  issue  a temporary license upon such terms and
 conditions as [it] THE COMMISSION may deem necessary, desirable or prop-
 er to effectuate the  provisions  of  sections  two  hundred  twenty-two
 through seven hundred five of this chapter.
   §  72.  Section  410  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 240 of the laws of 2010, is amended  to  read
 as follows:
   § 410. Power of [state racing and wagering board] COMMISSION to impose
 fines  and  penalties. [In] THE COMMISSION, IN addition to its powers to
 suspend or revoke licenses granted by it, [the state racing and wagering
 board] is hereby authorized and empowered to impose monetary fines  upon
 any  corporation,  association or person participating in any way in any
 quarter horse race meet at which pari-mutuel betting is conducted, other
 than as a patron, and whether licensed by the [board] COMMISSION or not,
 for a violation of any provision of this chapter or the rules promulgat-
 ed by the [board] COMMISSION pursuant thereto,  not  exceeding  [twenty-
 five  thousand  dollars  for  each  violation]  THE AMOUNTS SET FORTH IN
 SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER. The [board]  COMMISSION  is
 further authorized and empowered to impose monetary fines, not exceeding
 [twenty-five  thousand dollars for each violation] THE AMOUNTS SET FORTH
 IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER,  upon  any  such  corpo-
 ration, association or person for a violation of any order issued by the
 [board]  COMMISSION  pursuant  to  the provisions of this chapter or the
 rules promulgated by the [board] COMMISSION pursuant  thereto,  provided
 that  a  copy of such order shall have been served, either personally or
 by registered mail, upon the corporation, association or person to  whom
 the  same  was  directed,  prior  to the occurrence of the violation for
 which such fine is imposed. Such fines shall be paid into  the  treasury
 of the state. The action of the [board] COMMISSION in imposing any mone-
 tary  fine  shall  be  reviewable  in  the  supreme  court in the manner

 S. 7639                            69
 
 provided by and subject to the provisions of  article  seventy-eight  of
 the civil practice law and rules.
   § 73. Section 411 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  411. Refunds. Moneys received by the [board] COMMISSION pursuant to
 this article may within one year from the receipt thereof be refunded to
 the party for whose account the same were received on proof satisfactory
 to the [board] COMMISSION that:
   1. [Such] SUCH moneys were in excess of the amount required by law[.];
   2. [The] THE license for which application was made has  been  refused
 by the [board.] COMMISSION;
   3.  [Such] SUCH moneys were received as a fine and the [board] COMMIS-
 SION has after review reduced the amount of such fine[.]; OR
   4. [Upon appeal, the court] UPON JUDICIAL REVIEW, A COURT OF COMPETENT
 JURISDICTION reduced or remitted the fine imposed.
   Such refunds shall, upon approval by the [board] COMMISSION and  after
 audit  by the comptroller, be paid from any moneys in the custody of the
 department OF TAXATION AND FINANCE received pursuant to this article.
   § 74. Subdivision 2 of section 412 of the racing, pari-mutuel wagering
 and breeding law, as amended by chapter 476 of  the  laws  of  2018,  is
 amended to read as follows:
   2.  Any  appointment  of  a special police officer under this section,
 shall [only] be made ONLY with the approval of  the  [state  racing  and
 wagering  board] COMMISSION.   Application for such approval shall be in
 such form as may be prescribed  by  the  [board]  COMMISSION  and  shall
 contain  such  other  information or material or evidence as the [board]
 COMMISSION shall require. In acting on an application for such  approval
 the [board] COMMISSION shall consider the background, experience, integ-
 rity, and competence of the candidate for appointment, the public inter-
 est,  convenience or necessity and the interests of quarter horse racing
 generally. The [board] COMMISSION in its discretion may set the term  of
 any such appointment, terminate any existing appointment at any time and
 prescribe conditions and rules for the conduct of such office.
   § 75. Section 413 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  413. Place and manner of conducting pari-mutuel betting. Any corpo-
 ration or association licensed to conduct pari-mutuel betting at a quar-
 ter horse race meeting shall provide a place or places within race meet-
 ing grounds or enclosure  at  which  such  licensee  shall  conduct  the
 pari-mutuel  system of betting by its patrons on the result of the quar-
 ter horse races at such meetings.   Such  licensee  shall  cause  to  be
 erected  a  sign  or board upon which shall be displayed the approximate
 straight odds on each horse in any race; the total amount  wagered  upon
 each  horse in each pool; the value of a [two dollar] TWO-DOLLAR winning
 mutuel ticket, straight, place or show on the first three horses in  any
 race; the elapsed time of the race; the value of a [two dollar] TWO-DOL-
 LAR  winning  daily  double ticket, if a daily double [be] IS conducted,
 and any other information that the [state  racing  and  wagering  board]
 COMMISSION  may  deem  necessary for the guidance of the general public.
 All machines and equipment used  for  pari-mutuel  betting  or  for  the
 display  of  the  foregoing  information  must be approved by the [state
 racing and wagering board] COMMISSION and  the  [state  tax  commission]
 DEPARTMENT  OF  TAXATION  AND FINANCE before being used, but neither the
 [board] COMMISSION nor  the  [commission]  DEPARTMENT  OF  TAXATION  AND
 FINANCE shall require the installation of any particular make of mechan-
 ical or electrical equipment.

 S. 7639                            70
 
   § 76. Section 415 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 415. Bond required of corporation or association conducting pari-mu-
 tuel  betting.  Every  corporation or association licensed by the [state
 racing and wagering board] COMMISSION  to  conduct  quarter  horse  race
 meetings  at  which pari-mutuel betting shall be permitted, annually and
 before the opening of any race meeting shall execute and file  with  the
 state  comptroller  a bond to this state in a penalty to be fixed by the
 [state tax commission] DEPARTMENT OF TAXATION AND FINANCE not  exceeding
 two hundred fifty thousand dollars, with sureties approved by the attor-
 ney general, that it will keep its books and records and make reports as
 required  by  sections two hundred twenty-two through seven hundred five
 of this chapter, that it will pay to the  state  all  taxes  imposed  by
 sections two hundred twenty-two through seven hundred five of this chap-
 ter,  that  it  will  distribute  to  the  patrons  of pari-mutuel pools
 conducted by it all sums due upon presentation of winning  tickets  held
 by them, and that it will otherwise comply with all of the provisions of
 sections two hundred twenty-two through seven hundred five of this chap-
 ter  and  with the rules and regulations prescribed by the [state racing
 and wagering board] COMMISSION and the [state tax commission] DEPARTMENT
 OF TAXATION AND FINANCE.
   § 77. Section 417 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 417. Filing of certain agreements with [state  racing  and  wagering
 board]  COMMISSION. Every association or corporation licensed to conduct
 quarter horse race meetings at which pari-mutuel  betting  is  permitted
 shall  promptly  after entering into any lease, agreement concerning any
 concession, labor management relations, the hiring of designated classes
 of officers, employees or contractors specified by the  [board]  COMMIS-
 SION or any such other contract, agreement or arrangement as the [board]
 COMMISSION may from time to time prescribe file with the [board] COMMIS-
 SION a true and correct copy, or an accurate summary, if oral, thereof.
   §  78.  Section  418  of the racing, pari-mutuel wagering and breeding
 law, subdivision 4 as added by chapter 286 and paragraph a  of  subdivi-
 sion 4 as amended by chapter 287 of the laws of 1985, is amended to read
 as follows:
   §  418.  Disposition  of  pari-mutuel  pools.  1. Every association or
 corporation authorized under sections  two  hundred  twenty-two  through
 seven  hundred  five of this chapter to conduct pari-mutuel betting at a
 quarter horse race meeting on races run  thereat  shall  distribute  all
 sums deposited in any pari-mutuel pool to the holders of winning tickets
 therein  provided  such  tickets  be  presented for payment before April
 first of the year following the year of their purchase,  less  seventeen
 [per centum] PERCENT of the total deposits in pools resulting from regu-
 lar  on-track  bets  and less nineteen [per centum] PERCENT of the total
 deposits in pools resulting from multiple bets and less twenty-five [per
 centum] PERCENT of the total deposits in  pools  resulting  from  exotic
 on-track bets, plus the breaks. "Multiple bet" or "multiple wager" shall
 mean  a  single bet or wager on two horses, evidenced by a single ticket
 and representing an interest in a single betting pool. "Exotic  bet"  or
 "exotic wager" shall mean a single bet or wager on three or more horses,
 evidenced  by  a  single ticket and representing an interest in a single
 betting pool. The breaks for regular bets and multiple bets  are  hereby
 defined  as  the  odd cents over any multiple of ten or for exotic bets,
 over any multiple of fifty calculated on the basis  of  one  dollar  and
 otherwise payable to a patron. Of the sum so retained the applicable tax

 S. 7639                            71
 
 rates for regular bets shall be three [per centum] PERCENT; the applica-
 ble tax rates for multiple bets shall be three and one-half [per centum]
 PERCENT;  the  applicable  tax rates for exotic bets shall be eight [per
 centum]  PERCENT,  plus sixty-five [per centum] PERCENT of the amount of
 the breaks from on-track regular, multiple and exotic bets shall be paid
 by such corporation or association to the [state tax commission] DEPART-
 MENT OF TAXATION AND FINANCE as a reasonable tax by the  state  for  the
 privilege  of  conducting  pari-mutuel  betting  on the races run at the
 quarter horse race meetings held by  such  corporation  or  association,
 which  tax  is hereby levied, and the balance of the retained percentage
 of such pool and of the breaks may be held by such corporation or  asso-
 ciation  for  its  own  use  and purposes. The payment of such state tax
 shall be made to the [state tax commission] DEPARTMENT OF  TAXATION  AND
 FINANCE  at  such regular intervals as the [said tax commission] DEPART-
 MENT OF TAXATION AND FINANCE may require, and shall be accompanied by  a
 report  under  oath showing the total of all such contributions together
 with such other information as the [said tax commission]  DEPARTMENT  OF
 TAXATION AND FINANCE may require. A penalty of five [per centum] PERCENT
 and  interest at the rate of one [per centum] PERCENT per month from the
 date the report is required to be filed to the date of  payment  of  the
 tax shall be payable in case any tax imposed by this section is not paid
 when  due.  If  the  [state  tax  commission] DEPARTMENT OF TAXATION AND
 FINANCE determines that any moneys received under this section were paid
 in error, it may cause the same to be refunded without interest  out  of
 any  moneys  collected  thereunder,  provided an application therefor is
 filed with it within one year from the time the  erroneous  payment  was
 made.  Such  taxes,  interest  and  penalties  when collected, after the
 deduction of refunds of taxes erroneously paid, shall  be  paid  by  the
 [state  tax  commission]  DEPARTMENT  OF  TAXATION  AND FINANCE into the
 general fund of the state treasury. Ten  [per  centum]  PERCENT  of  the
 breaks  shall  be  paid to the New York state quarter horse breeding and
 development fund.
   2. Except as may be authorized by the legislature,  no  county,  city,
 town,  village  or  other political subdivision of the state may impose,
 levy or collect a tax on admission fees or tax on admission,  on  wagers
 made  by patrons in the form of purchases of pari-mutuel tickets or upon
 such tickets, on pari-mutuel pools, on breaks, on dividends or  payments
 made  to  winning  bettors,  or on that part of the pari-mutuel pools or
 breaks to be retained by quarter horse racing  corporations  or  associ-
 ations under this section.
   3.  The  sums paid by any corporation or association to the [state tax
 commission] DEPARTMENT OF TAXATION AND FINANCE shall  be  determined  by
 multiplying  each  applicable  rate  for total daily pools from on-track
 regular bets by the percentage [which] THAT on-track regular bets is  of
 the  total  on-track  daily pool and by multiplying each applicable rate
 for total daily pools on on-track exotic bets by the percentage  [which]
 THAT  exotic  bets is of total daily pool, then combining the two deter-
 mined percentages and applying the result to the  appropriate  level  of
 the total daily pool from on-track regular and exotic bets.
   [4. Notwithstanding the provisions of subdivision one of this section,
 prior  to  April first, nineteen hundred eighty-nine, the applicable tax
 rates shall be as follows:
   a. From April first, nineteen hundred eighty-six through  March  thir-
 ty-first,  nineteen hundred eighty-seven, of the sum retained the appli-
 cable tax rates for regular bets shall  be  three-quarters  of  one  per
 centum;  the  applicable rates for multiple, exotic bets shall be seven-

 S. 7639                            72

 eighths of one per centum; plus sixteen and one-quarter  per  centum  of
 the breaks from all bets.
   b.  After  April  first,  nineteen  hundred  eighty-seven  of  the sum
 retained the applicable tax rates for all bets shall be one  per  centum
 of all wagers, plus twenty per centum of the breaks.]
   § 79. Section 419 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  419.  Revocation  of license. The [state racing and wagering board]
 COMMISSION may revoke or suspend a license for the  conduct  of  quarter
 horse race meetings at which pari-mutuel betting is conducted[.]:
   1.  [For]  FOR  any  cause  [which]  THAT would permit or require [its
 refusal] THE COMMISSION TO REFUSE to issue a license, or
   2. [If it shall determine] IF THE COMMISSION  DETERMINES  that[:]  the
 corporation  or  association to which such license [shall have] HAS been
 issued, or its officers or directors, [fail] FAILS to conduct racing  at
 its  track, including pari-mutuel betting on the races [thereat] AT SUCH
 TRACK, in accordance with the terms and conditions of such license,  the
 rules  of  [such  board] THE COMMISSION or of the [state tax commission]
 DEPARTMENT OF TAXATION AND FINANCE, or the provisions  of  sections  two
 hundred  twenty-two  through  seven  hundred five of this chapter, or if
 such corporation or association or its officers or directors shall know-
 ingly permit on its grounds or within the enclosure  of  its  racetrack,
 lotteries, pool-selling or bookmaking, or any other kind of gambling, in
 violation  of sections two hundred twenty-two through seven hundred five
 of this chapter or of the penal law.
   § 80. Section 420 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 420. Hearing of refusal or revocation  of  license.  If  the  [state
 racing  and  wagering  board shall refuse] COMMISSION REFUSES to grant a
 license applied for under sections two hundred twenty-two through  seven
 hundred  five  of  this  chapter, or [shall revoke] REVOKES or [suspend]
 SUSPENDS such license granted by it, or [shall impose] IMPOSES  a  mone-
 tary fine upon a participant in quarter horse racing, THEN the applicant
 or  licensee  or party fined may demand, within ten days after notice of
 [the said] SUCH act of the [board]  COMMISSION,  a  hearing  before  the
 [board]  COMMISSION  and the [board] COMMISSION shall give prompt notice
 of a time and place for such hearing at  which  the  [board]  COMMISSION
 will  hear such applicant or licensee or party fined in reference there-
 to.   Pending such hearing and final  determination  [thereon]  OF  SUCH
 MATTER,  the action of the [board] COMMISSION in refusing to grant or in
 revoking or suspending a license or in imposing a  monetary  fine  shall
 remain  in  full  force  and effect. The [board] COMMISSION may continue
 such hearing from time to time,  for  the  convenience  of  any  of  the
 parties.  Any of the parties affected by such hearing may be represented
 by counsel, and the [board] COMMISSION may be represented by the  attor-
 ney general, a deputy attorney general or its counsel. In the conduct of
 such  hearing  the  [board]  COMMISSION  shall not be bound by technical
 rules of evidence, but all evidence offered before the  [board]  COMMIS-
 SION  shall  be  reduced to writing, and such evidence together with the
 exhibits, if any, and the findings of the [board] COMMISSION,  shall  be
 permanently  preserved  and  shall  constitute the record of the [board]
 COMMISSION in such case. In connection with such hearing, each member of
 the [board] COMMISSION shall have the  power  to  administer  oaths  and
 examine  witnesses,  and  may  issue  subpoenas  to compel attendance of
 witnesses, and the production of  all  material  and  relevant  reports,
 books, papers, documents, correspondence and other evidence. The [board]

 S. 7639                            73

 COMMISSION  may,  if  occasion  shall require, by order, refer to one or
 more of its members or officers, the duty of taking  testimony  in  such
 matter, and to report thereon to the [board] COMMISSION, but no determi-
 nation  shall  be  made therein except by the [board] COMMISSION. Within
 thirty days after the conclusion of such hearing, the [board] COMMISSION
 shall make a final order in writing, setting forth the reasons  for  the
 action  taken by it and a copy thereof shall be served on such applicant
 or licensee or party fined, as the case may  be.    The  action  of  the
 [board]  COMMISSION  in  refusing  to  grant a license or in revoking or
 suspending a license or in imposing a monetary fine shall be  reviewable
 in  the  supreme  court  in  the  manner  provided by and subject to the
 provisions of article seventy-eight of the civil practice law and rules.
   § 81. Section 421 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 421. Approval of plans of corporation  or  association.  The  [state
 racing  and  wagering board] COMMISSION shall not grant to a corporation
 or association hereafter formed pursuant to sections two  hundred  twen-
 ty-two  through seven hundred five of this chapter, a license to conduct
 a quarter horse  race  meeting  at  which  pari-mutuel  betting  may  be
 conducted  within  the state until such corporation or association shall
 have submitted to the [board] COMMISSION a statement of the location  of
 its  proposed  grounds and racetrack, together with a plan of such race-
 track, and plans of all buildings, seating stands and  other  structures
 in  such  form  as  the [board] COMMISSION may prescribe, and such plans
 shall have been approved in writing by the  [board]  COMMISSION.  Alter-
 ations  of  existing buildings, seating stands and other structures, and
 the erection of new or additional buildings,  seating  stands  or  other
 structures  may  be  made  only with the written approval of the [board]
 COMMISSION and after examination and inspection of the plans thereof and
 the issuance of a permit therefor by  the  [state  racing  and  wagering
 board]  COMMISSION.  The [board] COMMISSION at the expense of the appli-
 cant may order such  engineering  examination  thereof  as  the  [board]
 COMMISSION may deem necessary. The approval of the certificate of incor-
 poration  of such corporation or association shall not be deemed to vest
 in it the right to a license to conduct quarter horse race  meetings  at
 such  race  course  or  racetrack unless such grounds, track, buildings,
 seating stands and other structures shall  be  completed  in  accordance
 with the plans approved by the [board] COMMISSION.
   §  82.  Section  422  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 370 of the laws of 2011, is amended  to  read
 as follows:
   §  422.  Free or reduced fee passes, cards or badges. A corporation or
 association licensed to conduct pari-mutuel  betting  on  quarter  horse
 races run at its racetrack may issue free passes, cards or badges to any
 qualified  person.  A  qualified  person  shall include, but need not be
 limited to, officers and employees of  the  corporation  or  association
 conducting  the  race  meeting,  members, officers, and employees of the
 [state racing and wagering board] COMMISSION, members of  quarter  horse
 racing  associations of other states and foreign countries, public offi-
 cers engaged in  the  performance  of  their  duties,  persons  actually
 employed  and  accredited  by the press to attend such meetings, owners,
 stable managers, trainers, jockeys, concessionaires,  spouses,  domestic
 partners  and  children  of  owners, trainers and jockeys, other persons
 whose actual duties require their presence at such  racetrack,  and  any
 other  person or guest deemed appropriate by such corporation or associ-
 ation. In addition, free or reduced fee passes, cards or badges  may  be

 S. 7639                            74
 
 issued  to  the  general  public  or  segments  of the general public in
 connection with any promotional campaign or marketing program  sponsored
 by  such  corporation or association to increase attendance at live race
 meets.  The  issuance of free passes, cards or badges shall be under the
 rules and regulations of the [state racing and wagering  board]  COMMIS-
 SION.
   § 83. Section 428 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  428.  Construction.  Notwithstanding the provisions of any general,
 special, or local law or  ordinance,  the  provisions  of  sections  two
 hundred  twenty-two  through  seven hundred five of this chapter and the
 rules and regulations and requirements of the [state racing and wagering
 board] COMMISSION relating to the time when and place where or manner in
 which the quarter horse races shall be conducted in this state  and  the
 control  of  the grounds and structures erected or to be erected thereon
 upon and at which such racing is conducted and the activities  conducted
 thereat  and thereon in connection with any trial or contest of speed or
 power of endurance of quarter horses shall be construed and deemed to be
 exclusive of and shall supersede any provisions of such  other  general,
 special  or  local  law  or  ordinance in any wise relating thereto, nor
 shall the provisions of article two hundred twenty-five of the penal law
 be deemed to apply to pari-mutuel betting conducted pursuant to sections
 two hundred twenty-two through seven hundred five of this chapter.
   § 84. Subdivisions 3 and 7 of section 430 of the  racing,  pari-mutuel
 wagering and breeding law are amended to read as follows:
   3.  "New  York-bred."  A  quarter  horse  foaled in New York state and
 registered in the registry administered by quarter horse breeding  asso-
 ciations  in  this  state  designated  by the [state racing and wagering
 board] COMMISSION.
   7. "Races." Races upon which  pari-mutuel  wagering  is  conducted  at
 quarter  horse  race  meetings of racing associations or corporations as
 authorized by the [state racing and wagering board] COMMISSION.
   § 85. Subdivisions 1 and 3 of section 431 of the  racing,  pari-mutuel
 wagering  and  breeding  law, subdivision 1 as amended by chapter 197 of
 the laws of 2007, subdivision 3 as amended by section 8  of  part  A  of
 chapter 60 of the laws of 2012, is amended to read as follows:
   1.  A  corporation  to  be  known as the "New York state quarter horse
 breeding and development  fund  corporation"  is  hereby  created.  Such
 corporation  shall be a body corporate and politic constituting a public
 benefit corporation, the objective of which shall be  to  encourage  the
 breeding  of  quarter  horses  and  the development of the quarter horse
 industry in this state. It shall be administered by a board of directors
 consisting of the [chairman] CHAIR of the  [state  racing  and  wagering
 board]  COMMISSION or his or her designee, who shall be [chairman] CHAIR
 of the board of directors of the corporation, the commissioner of  agri-
 culture  and  markets, and the members of the [state racing and wagering
 board] COMMISSION.
   3. The [board] COMMISSION may delegate to one or more of the directors
 or officers of the fund such powers and duties as it may deem proper and
 shall [utilize] USE, pursuant to a contract approved by the director  of
 the  budget,  the service employees of the [state gaming] commission and
 the state office of racing promotion and development.
   § 86. Paragraph e of subdivision 2 of section 433 of the racing, pari-
 mutuel wagering and breeding law is amended to read as follows:
   e. Five percent or such lower proportion  as  the  [state  racing  and
 wagering  board]  COMMISSION  may  prescribe  based upon the operational

 S. 7639                            75
 
 experience and objectives  of  the  fund,  for  the  administration  and
 management  of  the  fund.  If  the  [board] COMMISSION shall reduce the
 proportion of the fund's resources  applicable  to  administration,  the
 proportions  otherwise  applicable  shall  be increased accordingly. All
 moneys of the fund in excess of twenty-five thousand dollars on hand  at
 the  end  of  each  calendar  year  shall be remitted to and vest in the
 state.
   § 87. Section 501 of the racing,  pari-mutuel  wagering  and  breeding
 law, is amended to read as follows:
   §  501. Definitions. As used in this article, IN ADDITION TO THE DEFI-
 NITIONS SET FORTH IN SECTION  ONE  HUNDRED  ONE  OF  THIS  CHAPTER,  the
 following terms shall mean and include:
   1. ["State board." The state racing and wagering board.
   2.]  "Board  of directors." The board of directors of a corporation as
 such board is constituted pursuant to section five hundred two  of  this
 article.
   [3] 2.  "Corporation." Each regional off-track betting corporation, as
 created by section five hundred two of this article.
   [4]  3.  "Participating county." Any of the counties in a region which
 have elected to join a corporation in the manner provided for in section
 five hundred two of this article.
   [5] 4.  "Bonds and notes." Bonds and notes,  respectively,  authorized
 and issued by the corporation pursuant to this article.
   [6]  5.    "Cost  of  corporation's functions." All costs and expenses
 incurred by the corporation in connection with carrying  out  the  func-
 tions as described by this article, including, but not limited to, oper-
 ating   expenses   of   the   corporation,  the  costs  of  acquisition,
 construction or equipment of branch offices and other facilities of  the
 corporation,  and  interest and principal on bonds, notes or other obli-
 gations  of  the  corporation  issued  to   finance   the   acquisition,
 construction or equipment of such offices, facilities or premises.
   [7]  6.    "Region." The several regions defined by subdivision one of
 section five hundred nineteen of this chapter.
   [8] 7.  "Track." The grounds or enclosure within which horse races are
 conducted by any person, association or corporation lawfully  authorized
 to conduct such races.
   [9] 8.  "Governing body." The appropriate county legislative body.
   [10]  9.  "Branch office." An establishment maintained and operated by
 the corporation, where off-track, pari-mutuel betting on horse races may
 be placed in accordance with the terms and conditions  of  this  article
 and the rules and regulations issued pursuant thereto.
   [11] 10.  "Enabling legislation." A local law, ordinance or resolution
 subject  to  a permissive referendum pursuant to the municipal home rule
 law.
   § 88. Subdivisions 2, 3 and 4, paragraph a of subdivision 5 and subdi-
 vision 7 and 16 of section 502 of the racing, pari-mutuel  wagering  and
 breeding  law,  subdivision  4  as amended by chapter 346 of the laws of
 1990, and subdivision 16 as added by chapter 908 of the  laws  of  1990,
 are amended to read as follows:
   2.  A  city  with  a  population of [over] MORE THAN one hundred fifty
 thousand, according to the last federal census, may elect to participate
 in the management and revenues of a regional corporation if  the  county
 in  which  such  city  is  located has elected to become a participating
 county. Such election  shall  be  by  enabling  legislation.  Upon  such
 election,  such  city  shall  participate  in the amount of any loans or
 contributions made or to be made by the participating county  containing

 S. 7639                            76
 
 the  city  to  the  corporation, pursuant to section five hundred six of
 this article, in the proportion that such city will participate  in  net
 revenues  payable  to such county or such other equitable arrangement as
 shall be approved by the [board] COMMISSION.
   3.  Upon  the passage of enabling legislation by the governing body of
 not less than three counties within a region representing not less  than
 thirty  percent  of  the population of such region, as determined by the
 last federal census, or in the case of  the  Suffolk  region,  upon  the
 passage of enabling legislation by the governing body of Suffolk county,
 or in the case of the Nassau region, upon the passage of enabling legis-
 lation  by  the  governing  body of Nassau county, or in the case of the
 Mid-Hudson region upon  the  passage  of  enabling  legislation  by  the
 governing body of the county of Westchester and of the governing body of
 one  other  county  in  such  region,  and  following the appointment of
 members of the board of directors, such corporation shall file with  the
 secretary  of  state  and  with  the  [state  racing and wagering board]
 COMMISSION a certificate setting forth:
   a. The date of passage of the enabling legislation;
   b. The name of the agency, which shall  be  the  name  of  the  region
 followed by the words "regional off-track betting corporation"; and
   c.  The names of the members of the board of directors and the [chair-
 man] CHAIR.
   4. Each of the counties of the region that [have]  HAS  not  become  A
 participating [counties] COUNTY at the time of filing of the certificate
 required  by  subdivision  three  of  this section may do so by enacting
 enabling legislation, a duly certified copy of which must be filed  with
 the  board  of directors, the [state board] COMMISSION, the secretary of
 state and the county clerk of each participating county.  In  the  event
 that  a  county elects to participate after June first, nineteen hundred
 ninety, the effective date of approval by the [state  board]  COMMISSION
 shall  not  be earlier than the date that branch offices are established
 and operating. If, at the time  of  such  election,  the  [state  board]
 COMMISSION has approved a plan of operation for the corporation, a coun-
 ty  may not become a participating county without approval by the [state
 board] COMMISSION of a modified feasibility study and  amended  plan  of
 operation  which  shall  be  submitted  by the corporation to the [state
 board] COMMISSION pursuant to section five hundred  twenty-one  of  this
 chapter.
   If the participating counties in the region have contributed or loaned
 funds  or other consideration to the corporation, the board of directors
 may require that any county subsequently electing to  become  a  partic-
 ipating  county  make such contributions in the same proportion, if any,
 as may have governed such contributions or loans by participating  coun-
 ties.  Any  dispute as to the value of consideration or as to a contrib-
 ution required by the board of directors shall be resolved by the [state
 board] COMMISSION.
   a. If the certificate required by subdivision three of this section is
 not filed by December thirty-first, nineteen hundred  seventy-five,  the
 corporate  existence  of  a  corporation shall terminate, but otherwise,
 each corporation and its corporate existence shall continue until termi-
 nated by law; provided, however, that no such law shall take  effect  so
 long  as  the  corporation  shall have bonds, notes or other obligations
 outstanding. Upon termination of the existence of the corporation all of
 its rights, property, assets and funds shall thereupon vest  in  and  be
 possessed  by  the  participating  counties  in the same proportion such
 property, assets and funds may have been contributed by each  county  or

 S. 7639                            77
 
 according  to  the  manner  in which the revenues of the corporation are
 distributed pursuant to section five hundred sixteen of this article, or
 any combination of both such methods, as the  [state  board]  COMMISSION
 shall determine.
   7.  The  directors  shall  be removable for cause by the [state board]
 COMMISSION, upon charges and after a hearing.
   16. Notwithstanding any inconsistent provision of this chapter or  any
 other  law,  any  director, administrator, or other employee of a corpo-
 ration may be issued and hold any license issued by  the  [state  board]
 COMMISSION.
   §  89. The opening paragraph, subdivisions 4 and 10 and paragraph c of
 subdivision 11 of section 503 of the racing,  pari-mutuel  wagering  and
 breeding  law,  subdivision  10 as amended by chapter 116 of the laws of
 2001, are amended to read as follows:
   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] COMMISSION pursuant to articles  one  and
 five-a of this chapter, each corporation shall have power:
   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]  THAT  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;
   10.  In  the  manner  and  subject  to  the provisions of sections two
 hundred twenty-two through seven  hundred  five  of  this  chapter,  and
 subject to the rules and regulations of the [state board] COMMISSION, to
 establish and conduct within the region a system of off-track pari-mutu-
 el betting on horse races, and, if licensed to do so under article three
 of this chapter, conduct harness race meetings;
   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]  SUCH  COUNTY  COMPTROLLER
 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;
   § 90. Subdivision 1 of section 503-a of the racing, pari-mutuel wager-
 ing and breeding law, as added by section 2 of part II of chapter 58  of
 the laws of 2012, is amended to read as follows:
   1.  In addition to the powers enumerated in section five hundred three
 of this article, financially insolvent regional off-track betting corpo-
 rations, as determined by the [racing  and  wagering  board]  COMMISSION
 upon review of certified financial statements, are hereby authorized and
 may  file any petition with any United States district court or court of
 bankruptcy under any provision of laws of  the  United  States  for  the
 composition  or  adjustment  of  municipal  indebtedness,  provided such
 corporation is authorized by a resolution adopted by a majority  of  the

 S. 7639                            78
 
 participating  counties  to  such  region,  or, for a corporation wholly
 contained within one county, by a resolution adopted by such county. The
 provisions of this subdivision shall not apply to the  Suffolk  regional
 off-track betting corporation until April first, two thousand fourteen.
   § 91. Subdivision 2 of section 504 of the racing, pari-mutuel wagering
 and  breeding  law,  as  amended  by chapter 476 of the laws of 2018, is
 amended to read as follows:
   2. Any appointment of a special police  officer  under  this  section,
 shall  [only]  be  made  ONLY with the approval of the [state racing and
 wagering board] COMMISSION.  Application for such approval shall  be  in
 such  form  as  may  be  prescribed  by the [board] COMMISSION and shall
 contain such other information or material  or  evidence  as  [it  shall
 require]  THE COMMISSION REQUIRES.  In acting on an application for such
 approval the [board] COMMISSION shall consider the  background,  experi-
 ence,  integrity,  and  competence of the candidate for appointment, the
 public interest, convenience or necessity and the interests of legalized
 wagering generally. The [board] COMMISSION in its discretion may set the
 term of any such appointment, terminate any existing appointment at  any
 time and prescribe conditions and rules for the conduct of such office.
   § 92. Paragraph j of subdivision 4 of section 508 of the racing, pari-
 mutuel wagering and breeding law is amended to read as follows:
   j.  Any  other matters of like or different character[, which] THAT in
 any way affect the security or protection of the holders of the bonds or
 notes.
   § 93. Paragraph c of subdivision 1 of section 509 of the racing, pari-
 mutuel wagering and breeding law is amended to read as follows:
   c. Any other moneys [which] THAT may be made available to  the  corpo-
 ration  for  the  purpose  of  such  capital reserve fund from any other
 source or sources.  All moneys held in the capital reserve fund,  except
 as  hereinafter  provided,  shall  be used solely for the payment of the
 principal of bonds of the corporation, the payment of interest  on  such
 bonds, or the payment of any redemption premium required to be paid when
 such  bonds  are  redeemed  prior  to  maturity; provided, however, that
 moneys in such capital reserve fund shall not be withdrawn therefrom  at
 any  time in such amount as would reduce the amount of such fund to less
 than the maximum amount of principal and interest maturing and  becoming
 due in any succeeding fiscal year of the corporation on all bonds of the
 corporation then outstanding, except for the purpose of paying principal
 of  and  interest on such bonds of the corporation maturing and becoming
 due and for the payment of which other moneys of the corporation are not
 available. Any income or interest earned by, or increment to, the  capi-
 tal  reserve  fund  due  to the investment thereof may be transferred to
 other funds or accounts to the extent it does not reduce the  amount  of
 the  capital  reserve  fund  below  the  maximum amount of principal and
 interest maturing and becoming due in any such succeeding fiscal year on
 all bonds of the corporation then outstanding.
   § 94. Subdivisions 1 and 2 of section 512 of the  racing,  pari-mutuel
 wagering and breeding law are amended to read as follows:
   1.  In  the  event  that a corporation [shall default] DEFAULTS in the
 payment of the principal of or interest on any issue of bonds  or  notes
 after  the  same [shall become] BECOMES due, whether at maturity or upon
 call for redemption, and such default [shall continue] CONTINUES  for  a
 period  of  thirty days, or in the provisions of this article, or [shall
 default] DEFAULTS in any agreement made with the holders of any issue of
 the bonds or notes, the holders of twenty-five [per centum]  PERCENT  in
 aggregate  principal  amount  of  the  bonds or notes of such issue then

 S. 7639                            79
 
 outstanding, by instrument or instruments filed in  the  office  of  the
 clerk  of  any  county in which the corporation operates and approved or
 acknowledged in the same manner as a deed to be recorded, may appoint  a
 trustee to represent the holders of such bonds or notes for the purposes
 herein provided.
   2.  Such trustee may, and upon written request of the holders of twen-
 ty-five [per centum] PERCENT in principal amount of such bonds or  notes
 then outstanding shall, in his, HER or its own name:
   a.  [By]  BY suit, action or special proceedings enforce all rights of
 the holders of the bonds or notes, including the right  to  require  the
 corporation to carry out any agreements with such holders and to perform
 its duties under this title;
   b. [Bring] BRING suit upon such bonds or notes;
   c. [By] BY action or suit, require the corporation to account as if it
 were  the  trustee  of an express trust for the holders of such bonds or
 notes;
   d. [By] BY action or suit, enjoin any acts or things [which] THAT  may
 be  unlawful  or in violation of the rights of the holders of such bonds
 or notes; AND
   e. [Declare] DECLARE all such bonds or notes due and payable,  and  if
 all  defaults  shall be made good, then, with the consent of the holders
 of twenty-five [per centum] PERCENT of  the  principal  amount  of  such
 bonds  or  notes then outstanding, annul such declaration and its conse-
 quences.
   § 95. Paragraph a of subdivision 2 of section 514 of the racing, pari-
 mutuel wagering and breeding law is amended to read as follows:
   a. The name and post office address of each claimant, and  of  his  OR
 HER attorney if any;
   § 96. Section 517 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  517. Annual reports. In addition to the reports required by article
 five-a of this chapter, within one hundred twenty days after the end  of
 the  fiscal  year of the corporation, the directors thereof shall submit
 to the participating counties, the [state  board]  COMMISSION,  and  the
 state comptroller a complete and detailed audited report setting forth:
   1. [Its] ITS operations and accomplishments during such fiscal year;
   2.  [Its]  ITS  receipts  and  expenditures during such fiscal year in
 accordance with categories or classifications established by the  corpo-
 ration for its own operating and capital outlay purposes;
   3.  [Its]  ITS  assets  and liabilities at the end of such fiscal year
 including a schedule of its bonds, notes or other  obligations  and  the
 status of reserves, depreciations, special, sinking or other funds;
   4. [Details] DETAILS of branch offices being planned or in the process
 of  being  constructed  or otherwise established and branch offices that
 have been constructed or established; AND
   5. [Such] SUCH other information relating to  the  operations  of  the
 corporation  as  shall be deemed pertinent by the directors, the partic-
 ipating counties, the [state board]  COMMISSION,  and  the  state  comp-
 troller.
   § 97. Section 518 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   §  518.  Off-track pari-mutuel betting; objectives. In the exercise of
 the power vested in it by subdivision one of section nine of article one
 of the state constitution, the legislature hereby prescribes  that  off-
 track  pari-mutuel  betting on horse races, conducted under the adminis-
 tration of the [state racing  and  wagering  board]  COMMISSION  in  the

 S. 7639                            80
 
 manner and subject to the conditions provided for in this article, shall
 be  lawful,  notwithstanding  the  provisions of any other law, general,
 special  or  local,  including  any  law  prohibiting   or   restricting
 lotteries,  pool-selling or bookmaking or any other kind of gambling; it
 being the purpose of this  article  to  derive  from  such  betting,  as
 authorized  by  this  article,  a  reasonable revenue for the support of
 government, and to prevent and  curb  unlawful  bookmaking  and  illegal
 wagering  on  horse  races.  It is also the intention of this article to
 ensure that off-track betting is conducted in a manner  compatible  with
 the  well-being  of  the  horse  racing  and breeding industries in this
 state, which industries are and should continue to be major  sources  of
 revenue  to  state  and  local  government and sources of employment for
 thousands of state residents.
   § 98. Section 520 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:
   § 520. General jurisdiction. 1. The [state racing and wagering  board]
 COMMISSION  shall  have  general  jurisdiction over the operation of all
 off-track betting facilities within the  state[,  and  the  board].  THE
 COMMISSION  shall  issue  rules  and  regulations in accordance with the
 provisions of this article in order to ensure the accomplishment of  the
 purposes set out in section five hundred eighteen of this article.
   2.  The  [board]  COMMISSION  shall own or lease all communication and
 transmission facilities [utilized] USED to transmit wagering information
 between regions, as provided by and subject to the exceptions in section
 five hundred twenty-five of this article and may establish a data  proc-
 essing  center,  within  the  amounts appropriated therefor, and provide
 data processing services to regional corporations, on a transaction  fee
 basis.
   3.  Without  limiting  the  generality  of  the foregoing, the [board]
 COMMISSION 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] USE of publications,  written
 materials  or communications equipment therein as the [board] COMMISSION
 determines to be in the interest of public order and the furtherance  of
 the  objectives  of this article and shall prohibit the sale of food and
 beverages in all facilities  where  bets  may  be  placed.  The  [board]
 COMMISSION  shall  also provide for the methods for the results of races
 to be communicated to regional corporations and disseminated thereby.
   § 99. Section 521 of the racing,  pari-mutuel  wagering  and  breeding
 law, the opening paragraph as amended by chapter 18 of the laws of 2008,
 and  subdivision  8  as  amended  by chapter 306 of the laws of 1984, is
 amended to read as follows:
   § 521. Approval of plans of operation; amendments. In order to  accom-
 plish  the objectives of this article, the [board] COMMISSION shall have
 the power, subject to the provisions of this article but without  limit-
 ing  the  generality of any provision of this chapter, to approve a plan
 of operation submitted by any regional corporation created under article
 five of this chapter.
   1. Before [it] THE COMMISSION may grant  such  approval,  the  [board]
 COMMISSION must review and approve a feasibility study submitted by such
 corporation, including but not limited to the following subjects:
   a.  [The]  THE overall practicability of establishing and operating an
 efficient and profitable system of off-track betting in such  region  or
 in such counties that have elected to participate in the corporation;
   b. [The] THE potential market;
   c. [The] THE estimated costs of operation;

 S. 7639                            81
 
   d.  [The]  THE  probable types of wagering and number of opportunities
 required for successful operation; AND
   e.  [The]  THE probable impact of the proposed operation upon on-track
 attendance and  pari-mutuel  betting  within  the  region.  The  [board]
 COMMISSION  may,  within  the  time provided for approval, request addi-
 tional information from the corporation. Disapproval of the  feasibility
 study  shall  be  accompanied by a statement of the reasons therefor and
 shall be treated as disapproval of a plan  under  subdivision  three  of
 this section.
   2. The plan of operation shall include the following:
   a. [The] THE organizational structure of the corporation including the
 approximate number and compensation of employees;
   b. [A] A narrative description of the system;
   c.  [The]  THE types and approximate cost of data processing, communi-
 cation and transmission facilities that will be [utilized] USED, includ-
 ing back-up systems;
   d. [Security] SECURITY measures;
   e. [The] THE type and number of betting opportunities to be offered;
   f. [The] THE race tracks and races for which bets will be taken;
   g. [The] THE maximum and minimum number of retail outlets  or  betting
 offices to be established;
   h. [The] THE proposed system of accounts; and
   i. [The] THE amount and proposed sources of financing.
   3.  Within  ninety  days of receipt of the feasibility study and plan,
 the [board] COMMISSION shall issue an order approving the plan,  approv-
 ing  it  with  modifications or denying approval and stating its reasons
 therefor.  Within such period the [board] COMMISSION may  request  addi-
 tional  information  or  suggest  amendments.  If the [board] COMMISSION
 fails to approve the plan  without  modification,  the  corporation  may
 request  a  public hearing to be held within thirty days of the issuance
 of an order approving an application with modifications or  denying  it.
 The  [board]  COMMISSION  shall issue its final determination within ten
 days of such hearing. The corporation may submit an amended  application
 no sooner than ninety days after a denial.
   4. A plan of operation may be amended from time to time at the request
 of  either  the  corporation or the [board] COMMISSION.  The corporation
 shall have the right to be heard concerning any amendment  to  the  plan
 proposed  after  implementation and the [board] COMMISSION shall dispose
 of such proposed amendments as  expeditiously  as  practicable,  but  no
 later  than  thirty  days following submission by the corporation or, in
 the case of amendments proposed by the [board] COMMISSION, objection  by
 the corporation.
   5.  Any  arrangements  for  telecasts  or  broadcasts of running races
 pursuant to contracts with track operators shall constitute  a  part  of
 the plan of operation, or an amendment thereto, as the case may be.
   6. The plan of operation of the New York city off-track betting corpo-
 ration in effect on July first, nineteen hundred seventy-three, shall be
 deemed  approved  by  the  [board]  COMMISSION,  but shall thereafter be
 subject to the general jurisdiction of the  [board]  COMMISSION  in  the
 same manner as are the plans of other regional corporations.
   7.  a. The city of Schenectady may continue to operate off-track pari-
 mutuel betting within such city, subject  to  the  jurisdiction  of  the
 [state  racing and wagering board] COMMISSION, until the [board] COMMIS-
 SION approves a plan of operation  submitted  by  the  Capital  District
 regional  off-track  betting  corporation  and such plan of operation is
 implemented; provided, however, that during any period that the city  of

 S. 7639                            82
 
 Schenectady  continues  to  operate off-track pari-mutuel betting within
 such city pursuant to this subdivision, it may accept  off-track  wagers
 on  races  at any harness track within the state which so agrees subject
 to  the  approval  of  the  [state racing and wagering board] COMMISSION
 until such time as the harness track located within the Capital District
 and the city of Schenectady mutually agree on the provision of appropri-
 ate space and facilities at such track for such city and such  agreement
 is  implemented.  Such  plan  of operation shall make due provision with
 respect to investments and obligations of the city of  Schenectady  made
 or incurred in the operation of off-track pari-mutuel betting. The coun-
 ty  of Schenectady shall reimburse the city of Schenectady on account of
 lost revenues from the operation of off-track  betting.  The  amount  of
 reimbursement shall be calculated under the rules of the [board] COMMIS-
 SION  to  guarantee that the city shall receive annually an amount equal
 to the net revenue received from off-track betting for the calendar year
 nineteen hundred seventy-three or a [per  centum]  PERCENT  of  the  net
 revenues received by such county obtained by dividing the bets originat-
 ing  in  such  city  by  the  bets originating in such county during the
 distribution period, whichever is less. Reimbursement shall continue for
 a period of ten years and shall be made in substantially equal quarterly
 payments.
   b. Until such time as the Capital District regional off-track  betting
 corporation's  plan  of operation has been approved by the [state racing
 and wagering board] COMMISSION and the county of Schenectady has enacted
 enabling legislation to join such corporations and such county's partic-
 ipation has been implemented, the city of Schenectady shall have all the
 rights, powers, duties and obligations  of  the  county  of  Schenectady
 under  this  chapter,  including but not limited to the right to partic-
 ipate in the formation of such corporation or  subsequently  to  partic-
 ipate  in  the  operation  thereof,  as the case may be, except that the
 geographical boundaries of such city's participation shall be limited to
 the city of Schenectady.
   8. The [board] COMMISSION may authorize and approve:
   a. [An] AN application  submitted  by  the  New  York  city  off-track
 betting  corporation  to  amend  its  plan of operation, pursuant to the
 provisions of this section, to provide for the display in no  more  than
 two  existing  facilities  within  Richmond  county of telecasts of live
 audio and visual signals of harness racing from any harness racing asso-
 ciation or corporation within its region; provided, however, that
   (i) the association or corporation conducting such racing has  entered
 into  a written agreement for such telecasts with the New York city off-
 track betting corporation pursuant to section five hundred  twenty-seven
 of this chapter, which agreement shall terminate no later than the thir-
 tieth day of June, nineteen hundred eighty-five,
   (ii)  all expenses incurred in the implementation of such amendment to
 its plan of operation for such telecasting shall be  the  responsibility
 of the New York city off-track betting corporation, and
   (iii)  the [board] COMMISSION shall submit reports to the governor and
 the legislature evaluating the results of such experiment on the compat-
 ibility with the well-being of the horse racing and breeding  industries
 in  this  state,  and  its  effect on handle and attendance at off-track
 facilities within Richmond county, and including recommendations regard-
 ing the future authorization of the telecast of live  audio  and  visual
 signals into off-track betting facilities; and
   b.  [One]  ONE  other  application  submitted  by an off-track betting
 corporation, other than the New York city off-track betting corporation,

 S. 7639                            83
 
 to amend its plan of operation,  pursuant  to  the  provisions  of  this
 section,  to  provide  for the display in two existing facilities within
 its region of telecasts of live audio  and  visual  signals  of  harness
 racing  from  any  harness  racing association or corporation within its
 region; provided however, that
   (i) the association or corporation conducting such racing has  entered
 into  a written agreement for such telecasts with such off-track betting
 corporation pursuant to section five hundred twenty-seven of this  chap-
 ter,  which agreement shall terminate no later than the thirtieth day of
 June, nineteen hundred eighty-five,
   (ii) all expenses incurred in the implementation of such amendment  to
 its  plan  of operation for such telecasting shall be the responsibility
 of the off-track betting corporation, and
   (iii) the [board] COMMISSION shall submit reports to the governor  and
 the legislature evaluating the results of such experiment on the compat-
 ibility  with the well-being of the horse racing and breeding industries
 in this state, and  at  off-track  facilities  within  its  region,  and
 including  recommendations  regarding  the  future  authorization of the
 telecast of live audio and visual signals into off-track betting facili-
 ties.
   c. [Provided] PROVIDED, however, that such audio and visual  telecasts
 into approved facilities shall commence no earlier than sixty days after
 such  telecasts  have  been  approved.  During  such time, the off-track
 betting corporation shall provide to the [board] COMMISSION daily  data,
 to  include  but not be limited to, wagers, separately by type of racing
 and wagers, attendance and promotion expenditures of such facilities  in
 such  manner  as  the  [board]  COMMISSION may require. Such data [will]
 SHALL be used as the pre-telecast base to evaluate the  impact  of  such
 telecasts.  In addition, such similar data and information shall also be
 supplied to the [board] COMMISSION during the period that such telecasts
 are authorized. No change in the types of wagers offered to patrons  may
 be  made  without prior written approval by the [board] COMMISSION of at
 least thirty days in advance of such requested change.
   § 100. Section 522 of the racing, pari-mutuel  wagering  and  breeding
 law,  subdivision 1 as amended by chapter 18 of the laws of 2008, subdi-
 vision 2 as amended by chapter 38 of the laws of 2006 and subdivision  4
 as  added  by  chapter  241  of  the laws of 2010, is amended to read as
 follows:
   § 522. Suspension of approval. 1. The [board] COMMISSION  may  suspend
 its  approval of any plan of operation if the regional corporation whose
 plan of operation has been approved or its officers or directors  [fail]
 FAILS to conduct off-track pari-mutuel betting on horse races in accord-
 ance  with  the provisions of the plan of operation, with the applicable
 rules of the [board] COMMISSION or with the provisions of this  article,
 article  five and article six of this chapter, as the case may be; or if
 such corporation or its officers or directors shall knowingly permit  on
 any  of  its premises lotteries, pool-selling or bookmaking or any other
 kind of gambling, in violation of this chapter  or  of  the  penal  law.
 Suspension  shall  continue for the period necessary to remedy the situ-
 ation or condition requiring such suspension.
   2. If the [board  shall  determine  to  suspend]  COMMISSION  SUSPENDS
 approval  of  any  plan  of operation [it] THE COMMISSION shall give the
 regional corporation involved notice of the time and place for a hearing
 before the [board] COMMISSION, at  which  the  [board  will]  COMMISSION
 SHALL  hear such regional corporation in reference thereto.  The [board]
 COMMISSION may continue such hearing from time to time for  the  conven-

 S. 7639                            84
 
 ience of all parties. Any of the parties affected by such hearing may be
 represented by counsel, and the [board] COMMISSION may be represented by
 its own counsel or by the attorney general. In the conduct of such hear-
 ing  the  [board]  COMMISSION  shall  not be bound by technical rules of
 evidence, but all evidence offered before the [board]  COMMISSION  shall
 be  reduced to writing, and such evidence together with the exhibits, if
 any, and the findings of the [board]  COMMISSION  shall  be  permanently
 preserved  and  shall constitute the record of the [board] COMMISSION in
 such case.  Within thirty days after such hearing, the  [board]  COMMIS-
 SION shall make a final determination. Such hearing may be presided over
 by the [chairperson] CHAIR of the [board] COMMISSION or by any member or
 an  officer  of  the  [board] COMMISSION designated by the [chairperson]
 CHAIR in writing to act as hearing officer and such  person  or  persons
 may issue subpoenas for witnesses and administer oaths to witnesses. The
 hearing  officer, at the conclusion of the hearing, shall make findings,
 which, if concurred in by [two members] A MAJORITY OF A  QUORUM  of  the
 [board] COMMISSION, shall become the findings of the [board] COMMISSION.
 If  [it] THE COMMISSION determines that such approval [be] IS suspended,
 [it] THE COMMISSION shall make an order accordingly[,] and  shall  cause
 such  order  to  be  entered on its minutes and a copy thereof served on
 such regional corporation. The  action  of  the  [board]  COMMISSION  in
 suspending such approval shall be reviewable in the supreme court in the
 manner  provided by the provisions of article seventy-eight of the civil
 practice law and rules.
   3. The [board] COMMISSION may suspend approval of any plan  of  opera-
 tion for a reason set forth in subdivision one of this section as of the
 delivery  to  the regional corporation of the notice of hearing required
 by subdivision two of this section pending final  determination  of  the
 [board]  COMMISSION  following  the  hearing; provided, however, that no
 suspension of approval pursuant to this subdivision shall be for a peri-
 od longer than twenty days.
   4. [In] THE COMMISSION, IN addition to its power to suspend or  revoke
 plans  of  operation  approved or licenses granted by it, [the board] is
 hereby authorized and empowered to impose monetary fines upon any corpo-
 ration, association or person participating  in  any  way  in  off-track
 betting  on  which  pari-mutuel  betting  is  conducted, other than as a
 patron, and whether licensed by  the  [board]  COMMISSION  or  not,  for
 violation of any provisions of this chapter, or the rules promulgated by
 the  [board]  COMMISSION pursuant thereto, or an approved plan of opera-
 tion, not exceeding fifty  thousand  dollars  for  each  violation.  The
 [board]  COMMISSION  is further authorized and empowered to impose mone-
 tary fines, not exceeding fifty thousand  dollars  for  each  violation,
 upon  any such corporation, association or person for a violation of any
 order issued by the [board] COMMISSION pursuant  to  the  provisions  of
 this chapter or the rules promulgated by the [board] COMMISSION pursuant
 thereto,  provided  that  a  copy  of  such order shall have been served
 either personally or by certified mail, upon  the  corporation,  associ-
 ation  or  person to whom the same was directed, prior to the occurrence
 of the violation for which such fine is imposed. The [board]  COMMISSION
 shall  impose  such  monetary  fines,  subject to the notice and hearing
 provisions of the state administrative procedure act. Such  fines  shall
 be paid into the state treasury. The action of the [board] COMMISSION in
 imposing  any  monetary fine shall be reviewable in the supreme court in
 the manner provided by and subject to the provisions of  article  seven-
 ty-eight of the civil practice law and rules.

 S. 7639                            85

   §  101.  The opening paragraph and subdivisions 2, 3, 4, 6, 7 and 9 of
 section 523 of the racing, pari-mutuel wagering and breeding law, subdi-
 vision 4 as amended by chapter 286 of the laws of 1985, paragraph  a  of
 subdivision 6 as amended by chapter 346 of the laws of 1990, paragraph b
 of  subdivision 6 as amended by chapter 18 of the laws of 2008, subdivi-
 sion 7 as amended by chapter 2 of the laws of 1995 and subdivision 9  as
 added  by  chapter  281  of  the  laws  of  1994, are amended to read as
 follows:
   The [board] COMMISSION shall require  that  any  regional  corporation
 conduct off-track pari-mutuel betting in accordance with this section.
   2.  Exotic  and  multiple  bets  on  races run within the state may be
 approved by the [board] COMMISSION without a comparable  on-track  pool,
 provided that the corporation or association conducting such races shall
 have  filed  with the [board] COMMISSION a written consent for such off-
 track exotic or multiple bets on races held at its track.
   3. The [board] COMMISSION may  approve  separate  off-track  pools  on
 races run in other states subject to the limitations of this section and
 of subdivision eight of this section in particular.
   4.  No regional corporation authorized to conduct off-track betting by
 the [board] COMMISSION shall accept off-track wagers on races run at any
 harness track located without its region while a  harness  track  within
 its  region  is  conducting a race meeting involving pari-mutuel betting
 without the approval of the regional operating harness track;  provided,
 however,  that for the purposes of this subdivision, the Suffolk region,
 the Nassau region, the New York city region,  and  the  portion  of  the
 Catskill region outside a special betting district shall be considered a
 single  region;  and further provided, however, that for the purposes of
 this subdivision, there shall  be  created  a  harness  special  betting
 district,  consisting  of  the  counties  of Cayuga, Chenango, Cortland,
 Franklin, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego,
 Otsego, St. Lawrence and Tompkins in which no off-track betting on races
 run at a harness track without such special betting  district  shall  be
 permitted  while a harness track within such special betting district is
 conducting a race meeting involving pari-mutuel betting.
   6. a. No regional corporation may accept wagers  on  races  run  at  a
 thoroughbred  or  steeplechase track in another state or country while a
 thoroughbred or steeplechase track within this  state  is  conducting  a
 race  meeting  involving  pari-mutuel  betting;  provided, however, that
 notwithstanding any inconsistent provision, the [board]  COMMISSION  may
 designate  no  more  than fifteen thoroughbred or steeplechase races per
 year as races of special interest on which off-track pari-mutuel betting
 may be accepted by regional  corporations,  provided  further  that  for
 purposes  of  this  subdivision  the acceptance of wagers on a series of
 races known as the "Breeders' Cup"  shall  be  considered  as  a  single
 thoroughbred or steeplechase race of special interest and all such races
 shall be determined in accordance with article nine of this chapter.
   b.  When  a race meeting is not being conducted by a franchised corpo-
 ration and a thoroughbred race meeting is being  conducted  at  a  track
 located  within  the  thoroughbred  special  betting  district, regional
 corporations  and  portions  of  regional  corporations   outside   such
 district, shall, in addition to accepting wagers on races at such track,
 also  be permitted to accept wagers on thoroughbred races run in another
 state. In the event that wagers are accepted on  races  run  at  both  a
 track  located  in  the  thoroughbred  special betting district and at a
 track located in another state, the balance of  the  amount  payable  to
 tracks  within  this state pursuant to paragraph f of subdivision one of

 S. 7639                            86
 
 section five hundred twenty-seven of this article, but (i) not less than
 one [per centum] PERCENT on regular and multiple wagering and  two  [per
 centum]  PERCENT  on  exotic  wagers, shall be paid to the track located
 within  the  thoroughbred  special betting district running thoroughbred
 races, and (ii) not less than three-quarters of one [per centum] PERCENT
 of regular and multiple wagering and one and  one-quarter  [per  centum]
 PERCENT  on  exotic  wagers  shall be paid to the harness track operator
 conducting racing within the region within  which  the  wagers  on  such
 out-of-state races are placed.
   c.  If as a result of the authorization granted in paragraph b of this
 subdivision, the average daily distribution to harness  track  operators
 from  regional  off-track  betting  corporations and attributable to the
 conduct of off-track betting on thoroughbred races run  concurrently  by
 both  an  in-state  and an out-of-state track operator during the period
 from June first, nineteen  hundred  seventy-eight  through  May  thirty-
 first,  nineteen hundred seventy-nine and each succeeding [twelve month]
 TWELVE-MONTH period thereafter is less than the average  daily  distrib-
 ution  to such operators from off-track betting corporations and attrib-
 utable to the conduct of racing by  a  thoroughbred  racing  association
 during  the  base  period  of June first, nineteen hundred seventy-seven
 through May thirty-first, nineteen hundred seventy-eight, such operators
 shall be entitled to a credit against the state  tax  imposed  upon  its
 pari-mutuel revenues. The tax credit for any [twelve month] TWELVE-MONTH
 period shall be an amount calculated by multiplying the shortfall in the
 average  daily distribution by the number of days in each [twelve month]
 TWELVE-MONTH period that regional off-track betting corporations conduct
 betting on thoroughbred races run concurrently by both an  in-state  and
 an  out-of-state track operator. The [board] COMMISSION shall so certify
 to the [state tax commission] DEPARTMENT OF  TAXATION  AND  FINANCE  the
 amount of credit applicable to each harness track operator no later than
 thirty  days  following  the  close  of each [twelve month] TWELVE-MONTH
 period.
   7. No regional corporation may accept wagers on races run at a harness
 track in another state or country while  a  harness  track  within  this
 state  is  conducting  a  race  meeting  involving  pari-mutuel betting;
 provided, however, that notwithstanding any inconsistent provisions  the
 [board]  COMMISSION  may  designate no more than fifty harness races per
 year as races of special interest on which off-track pari-mutuel betting
 may be accepted by regional corporations.
   9. [(a)] Notwithstanding any  other  provision  of  this  article  any
 regional corporation having a missed pool as defined in this subdivision
 shall dispose of such pool [as follows:
   (1)  Any  missed  pools  of wagers placed at off-track betting parlors
 subsequent to December thirty-first,  nineteen  hundred  eighty-two  and
 prior  to August first, nineteen hundred ninety-four which were not used
 to calculate payouts to winning bettors because such wagers failed to be
 transmitted to and  were  not  included  in  the  statewide  pari-mutuel
 betting  pool  shall  be  retained  by such corporation for its ordinary
 operating expenses.
   (2) On or before August first, nineteen hundred ninety-four the  board
 shall  promulgate] ACCORDING TO rules and regulations OF THE COMMISSION,
 which SHALL direct [said] SUCH regional  corporations  and  [said]  SUCH
 missed  pools  to  the  in-state  track conducting the race on which the
 wager was placed to be used for the next available common pool.
   § 102. Section 524 of the racing, pari-mutuel  wagering  and  breeding
 law,  subdivisions 1 and 4 as amended by chapter 459 of the laws of 2010

 S. 7639                            87
 
 and subdivision 3 as amended by section 9 of part F-3 of chapter  62  of
 the laws of 2003, is amended to read as follows:
   §  524.  Reports, accounts, investigations.  1. The [board] COMMISSION
 shall, consistent with the powers of  the  department  of  taxation  and
 finance,  prescribe  uniform  methods  of  keeping accounts, records and
 books to be observed by regional corporations.  The  [board]  COMMISSION
 shall,  consistent  with  the  powers  of the department of taxation and
 finance, prescribe by order forms of accounts, records and memoranda  to
 be kept by such corporations. The [board] COMMISSION shall have power to
 visit,  investigate, and place expert accountants, or such other persons
 as [it] THE COMMISSION may deem necessary,  in  the  offices,  or  other
 places  of  business  of  any such corporation for the purpose of seeing
 that the provisions of this chapter and the rules and regulations issued
 by the [board] COMMISSION thereunder are strictly complied with. Upon  a
 finding  by the [board] COMMISSION of a reasonable basis to believe that
 any such [offtrack] OFF-TRACK betting corporation is not complying  with
 the  rules  and regulations of the [board] COMMISSION or with applicable
 provisions of law, the [board] COMMISSION,  after  providing  a  written
 report  setting  forth  its findings, may by a majority vote direct such
 corporation to cause [its] SUCH CORPORATION'S  business  and  managerial
 practices  to  be  audited  at  [its]  SUCH CORPORATION'S own expense to
 ensure that such corporation complies with the rules and regulations  of
 the [board] COMMISSION or any applicable provision of law.
   2.  Each  regional  corporation  approved by the [board] COMMISSION to
 conduct off-track pari-mutuel  betting  shall  submit  daily  accounting
 reports  to  the [board] COMMISSION, within forty-eight hours after each
 racing day, accounting for all tickets sold and winning  tickets  cashed
 or  refunds  and  such  other  information as the [board] COMMISSION may
 require. Copies of such daily reports shall be submitted to each  racing
 association  or  corporation  conducting races on which off-track wagers
 were accepted by such regional corporation.
   3. Quarterly financial statements shall be submitted  by  each  corpo-
 ration  to  the  [board] COMMISSION within fifteen days after the end of
 each calendar quarter[,] and shall include a balance sheet, a  statement
 of revenue net of expenses, statement of cash flow, a breakdown of oper-
 ating  and  administrative expenses for the quarter preceding submission
 of the report and for the year  to  date.  All  such  reports  shall  be
 subject to audit by the state comptroller and shall be public records.
   4.  The  reports required under this section shall be in such form and
 contain such other matters as the [board] COMMISSION may determine  from
 time to time to be necessary to disclose accurately the financial condi-
 tion and operation of such corporations. Each regional corporation shall
 submit  a copy of the corporation's annual budget to the [board] COMMIS-
 SION no later than twenty days following approval of such budget by  the
 corporation's  board  of  directors. The [board] COMMISSION may for good
 cause shown grant a reasonable extension of time for the filing  of  any
 such report.
   §  103.  Section  525 of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 538 of  the  laws  of  1999,  is  amended  as
 follows:
   §  525.  Statewide transmission. Subject to the general limitations of
 this article, the provisions of its plan of operation and the rules  and
 regulations  of  the  [board]  COMMISSION, each regional corporation may
 provide for direct transmission of off-track wagering information  to  a
 track  within its region for the purpose of creating a joint or combined
 pool as required by section five hundred twenty-three of this article.

 S. 7639                            88
 
   § 104. Section 526 of the racing, pari-mutuel  wagering  and  breeding
 law is amended to read as follows:
   § 526. Use of track facilities; combined pools. In order to effectuate
 the general policy of this article that off-track and on-track wagers be
 combined  into  single  pools to provide uniform odds and payouts, track
 operators shall be subject to the requirements of this section.
   1. a. At the request of  a  regional  corporation,  a  track  operator
 conducting  a  race  meeting  at a track in this state, shall, upon such
 terms and conditions as may be agreed upon  by  such  operator  and  the
 corporation  subject  to the approval of the [board] COMMISSION, provide
 appropriate space and facilities at its track  whereby  the  corporation
 may  perform  the  functions  hereinafter  described with respect to the
 transmission and reception of wagering and racing information; provided,
 however, that payments to the track operator pursuant  to  section  five
 hundred  twenty-seven of this article shall be deemed adequate consider-
 ation for the occupancy of vacant space at such  track  or  the  use  of
 existing  facilities.  The  terms  and conditions shall provide that THE
 CORPORATION SHALL BEAR the cost of any additional office  space  or  the
 installation,  leasing,  operation,  maintenance  and servicing of addi-
 tional facilities or equipment [shall be borne by the corporation].
   b. In the event that a corporation and such operator shall  be  unable
 to  agree  upon the space and facilities of such track to be provided to
 the corporation by such operator, or the terms and conditions of the use
 and occupancy thereof by the corporation, the [board] COMMISSION  shall,
 upon  application  in  writing made either by the corporation or by such
 operator, determine the appropriate space and facilities to be  provided
 to  such  corporation and the terms, conditions and costs of its use and
 occupancy by such corporation.
   c. Upon the decision of the [board] COMMISSION, the corporation  shall
 be  entitled  to  use  and  occupy  immediately the space and facilities
 prescribed by the [board] COMMISSION,  upon  the  terms  and  conditions
 established by the [board] COMMISSION.
   2.  No  track operator shall prevent a regional corporation from using
 and occupying the space and facilities prescribed according to  subdivi-
 sion  one  of  this  section,  nor  fail to cause off-track wagers to be
 combined with on-track wagers  into  single  pools,  provided  off-track
 wagering  information  is  transmitted  to  the track in an accurate and
 timely fashion, nor prevent such transmission of racing  information  by
 the  regional  corporation  to its offices as may be consistent with the
 regulations of the [board] COMMISSION.
   3. The [board] COMMISSION shall be entitled to the use  and  occupancy
 of  space  and  facilities  upon  reasonable  terms  in like manner as a
 regional corporation whenever [it] THE COMMISSION shall  so  require  in
 order to perform its statewide transmission function pursuant to section
 five  hundred  twenty-five  of this article. Any claim arising from such
 occupancy and use shall be determined by the court of claims.
   4. The [board] COMMISSION, on  its  own  behalf  or  on  behalf  of  a
 regional  corporation,  may apply to the supreme court for an injunction
 directing any track operator to comply with this section.  In  any  such
 action  the  [board]  COMMISSION  shall  not be required to post bond or
 security.
   5. Nothing contained in this section shall be construed  as  requiring
 the  [board] COMMISSION or any regional corporation to pay or deliver to
 any track operator any sum received from any bettor as a wager or other-
 wise, but the net  amount  due  from  the  [board]  COMMISSION  or  such
 regional  corporation  to  the  operator,  in the event that payments to

 S. 7639                            89
 
 winning bettors at the track exceed the portion of the pari-mutuel  pool
 attributable to such bettors, or the net amount due from the operator to
 the  [board]  COMMISSION  or  regional  corporation,  in  the event that
 payments  to  winning  bettors  off  the track exceed the portion of the
 pari-mutuel pool attributable to such bettors, as the case may be, shall
 be paid within seven days of a race.
   § 105. The opening paragraph of subdivision 1, paragraphs b and  c  of
 subdivision  3  and subdivisions 5 and 5-a of section 527 of the racing,
 pari-mutuel wagering and breeding law, as amended by chapter 18  of  the
 laws  of  2008  and the opening paragraph of subdivision 1 as amended by
 chapter 241 of the laws of 2019, are amended to read as follows:
   The disposition of the retained commission from pools  resulting  from
 regular,  multiple or exotic bets, as the case may be, whether placed on
 races run within a region or  outside  a  region,  conducted  by  racing
 corporations, harness racing associations or corporations, quarter horse
 racing associations or corporations or races run outside the state shall
 be governed by the tables in paragraphs a and b of this subdivision. The
 rate  denominated  "state  tax" shall represent the rate of a reasonable
 tax imposed upon the retained commission for the privilege of conducting
 off-track pari-mutuel betting, which tax is hereby levied and  shall  be
 payable  in the manner set forth in this section. Each off-track betting
 corporation shall pay to the [gaming] commission as  a  regulatory  fee,
 which fee is hereby levied, six-tenths of one percent of the total daily
 pools  of  such  corporation.  Each  corporation  shall  also pay twenty
 percent of the breaks derived from  bets  on  harness  races  and  fifty
 percent  of the breaks derived from bets on all other races to the agri-
 culture and New York State horse breeding and development  fund  and  to
 the  thoroughbred  breeding  and  development  fund,  the  total of such
 payments to be apportioned fifty percent to  each  such  fund.  For  the
 purposes  of  this  section, the New York city, Suffolk, Nassau, and the
 Catskill regions shall constitute a single region and  any  thoroughbred
 track  located  within the Capital District region shall be deemed to be
 within such single region. A "regional meeting" shall  refer  to  either
 harness  or  thoroughbred  meetings,  or  both, except that a franchised
 corporation shall not be a regional track for the purpose  of  receiving
 distributions  from  bets on thoroughbred races conducted by a thorough-
 bred track in the Catskill region conducting a mixed meeting.  With  the
 exception  of a harness racing association or corporation first licensed
 to conduct pari-mutuel wagering at a track located in Tioga, Saratoga or
 Westchester county after January first, two thousand five, racing corpo-
 rations first licensed  to  conduct  pari-mutuel  racing  after  January
 first,  nineteen  hundred  eighty-six or a harness racing association or
 corporation first licensed to conduct pari-mutuel wagering  at  a  track
 located  in  Genesee  County after January first, two thousand five, and
 quarter horse tracks shall not be "regional tracks"; if  there  is  more
 than  one harness track within a region, such tracks shall evenly divide
 payments made pursuant to the tables in  paragraphs  a  and  b  of  this
 subdivision  when  neither track is running. In the event a track elects
 to reduce its retained percentage from any or  all  of  its  pari-mutuel
 pools, the payments to the track holding the race and the regional track
 required  by  paragraphs a and b of this subdivision shall be reduced in
 proportion to such reduction. Nothing in this section shall be construed
 to authorize the conduct of off-track betting contrary to the provisions
 of section five hundred twenty-three of this article.
   b. In addition to any other amount required by this  section,  of  the
 portion  of  commissions  retained  by a regional corporation, an amount

 S. 7639                            90
 
 equal to one and eighty-five hundredths [per centum] PERCENT of  regular
 pools and an amount equal to two and thirty-five hundredths [per centum]
 PERCENT  of  multiple  pools  and  two  and  thirty-five hundredths [per
 centum]  PERCENT  of exotic pools derived from wagers on races conducted
 by a franchised corporation shall be paid to such corporation to be used
 exclusively for the purpose  of  increasing  purses,  including  stakes,
 premiums  and  prizes.  [Provided,  however, for the period July twenty-
 fifth, two thousand one through June thirtieth,  two  thousand  four,  a
 regional  corporation for the New York city, Nassau, Suffolk or Catskill
 region shall pay, of the portion of the  commissions  retained  by  such
 regional  corporation  on  all  pools,  an amount equal to six and fifty
 hundredths per centum to such franchised corporation of which three  and
 eighty  hundredths  per centum shall be used exclusively for the purpose
 of increasing purses, including stakes, premiums and  prizes.  Provided,
 further  for the period July twenty-fifth, two thousand one through June
 thirtieth, two thousand four a regional corporation for the  capital  or
 western  region  shall pay to such franchised corporation of the portion
 of the commissions retained by such regional corporation  on  all  pools
 when  there  is a regional meeting, an amount equal to three and eighty-
 five hundredths of which two and eighty-five hundredths  shall  be  used
 exclusively  for  the  purpose  of  increasing purses, including stakes,
 premiums and prizes.] An additional two and sixty-five hundredths  shall
 be  paid  to the regional harness track. When there is no regional meet-
 ing, an amount equal to four and sixty-five hundredths shall be paid  to
 such  nonprofit  racing association of which two and [ninety hundredths]
 NINE TENTHS shall be used exclusively  for  the  purpose  of  increasing
 purses,  including  stakes,  premiums  and prizes. An additional one and
 eighty-five hundredths shall be paid to the regional harness  track.  In
 addition to any other amounts required to be paid to a franchised corpo-
 ration,  for  the period July twenty-first, nineteen hundred ninety-five
 through July twenty-fourth, two thousand  one,  an  additional  one  and
 twenty-five  hundredths  [per  centum] PERCENT of multiple pools derived
 from wagers on races conducted by a franchised corporation shall be paid
 to such association for its own use and purposes. Any  portion  of  said
 amount  not  so  used during any year shall be used during the following
 year, failing which it shall be returned to the regional corporation  on
 or  before April first in the year following the year in which it is not
 so used to be distributed to the participating local governments.
   c. In addition to any other amount required by this  section,  of  the
 portion  of  commissions  retained  by a regional corporation, an amount
 equal to one and one-tenth [per centum] PERCENT of regular and  multiple
 pools and six-tenths of one [per centum] PERCENT of exotic pools derived
 from  wagers  on  races  conducted by a thoroughbred racing corporation,
 licensed by the [board] COMMISSION, other than a franchised corporation,
 shall be paid to such thoroughbred racing corporation to be used  exclu-
 sively  for the purpose of increasing purses, including stakes, premiums
 and prizes. Any portion of [said] SUCH amount not  so  used  during  any
 year  shall  be  used during the following year, failing which [it] SUCH
 AMOUNT shall be returned to the regional corporation on or before  April
 first  in  the  year following the year in which it is not so used to be
 distributed to the participating local governments.
   5. a. One [per centum] PERCENT of daily pools  derived  from  bets  on
 harness races shall be paid to the agriculture and New York state breed-
 ing and development fund except that for super exotic betting pools such
 amount shall be three [per centum] PERCENT of such bets.

 S. 7639                            91
 
   b.  An  amount  equal to one-half of one [per centum] PERCENT of total
 daily off-track pari-mutuel pools resulting from regular,  multiple  and
 exotic  bets  and  three  [per  centum]  PERCENT of super exotic bets on
 thoroughbred or steeplechase races shall be paid to the New  York  state
 thoroughbred breeding and development fund.
   c. From the total breaks retained by a regional corporation, an amount
 equal  to  ten  [per  centum] PERCENT of the breaks derived from bets on
 quarter horse races shall be paid to the New York  state  quarter  horse
 breeding and development fund.
   5-a.  Notwithstanding  any  other  provision of law, a regional corpo-
 ration shall retain, in addition to those amounts described in the open-
 ing paragraph of this section, from regular and multiple bets  on  races
 run at tracks electing to withhold pursuant to section two hundred thir-
 ty-seven  or  section  three hundred nineteen of this chapter, an amount
 equal to one [per centum] PERCENT of pools resulting from total wagering
 at such tracks, one-half of which shall be paid to such tracks  or  non-
 profit  county  agricultural  society,  except  that  the  full one [per
 centum] PERCENT shall be paid to a thoroughbred track  in  the  Catskill
 region  conducting  a  mixed meeting, to be used exclusively for capital
 improvements pursuant to sections two  hundred  thirty-seven  and  three
 hundred  nineteen  of  this  chapter  and subject to the rules and regu-
 lations of the [racing and wagering board] COMMISSION and one-half to be
 retained by the regional corporation for its own corporate purposes.
   § 105-a. Paragraph b of subdivision 3 of section 527  of  the  racing,
 pari-mutuel  wagering  and breeding law, as amended by chapter 94 of the
 laws of 2001, is amended to read as follows:
   b. In addition to any other amount required by this  section,  of  the
 portion  of  commissions  retained  by a regional corporation, an amount
 equal to one and one-quarter [per centum] PERCENT of regular and  multi-
 ple pools and three-quarters of one [per centum] PERCENT of exotic pools
 derived from wagers on races conducted by a nonprofit racing association
 shall be paid to such nonprofit racing association to be used exclusive-
 ly  for the purpose of increasing purses, including stakes, premiums and
 prizes. [Provided, however, for the period July twenty-fifth, two  thou-
 sand one through June thirtieth, two thousand four, if a regional corpo-
 ration  for  the New York city, Nassau, Suffolk or Catskill region shall
 pay, of the portion of the commissions retained by such regional  corpo-
 ration  on  all  pools,  an amount equal to six and fifty hundredths per
 centum to such nonprofit racing association of which  three  and  eighty
 hundredths  per  centum  shall  be  used  exclusively for the purpose of
 increasing purses, including  stakes,  premiums  and  prizes.  Provided,
 further  that for the period July twenty-fifth, two thousand one through
 June thirtieth, two thousand four a regional corporation for the capital
 or western region shall pay to such nonprofit racing association of  the
 portion  of the commissions retained by such regional corporation on all
 pools when there is a regional meeting, an amount  equal  to  three  and
 eighty-five  hundredths  of which two and fifty hundredths shall be used
 exclusively for the purpose  of  increasing  purses,  including  stakes,
 premiums  and prizes.] An additional two and sixty-five hundredths shall
 be paid to the regional harness track. When there is no  regional  meet-
 ing,  an amount equal to four and sixty-five hundredths shall be paid to
 such nonprofit racing association of which two and  [ninety  hundredths]
 NINE-TENTHS  shall  be  used  exclusively  for the purpose of increasing
 purses, including stakes, premiums and prizes.  An  additional  one  and
 eighty-five  hundredths shall be paid to the regional harness track. Any
 portion of said amount not so used during any year shall be used  during

 S. 7639                            92
 
 the  following  year, failing which it shall be returned to the regional
 corporation on or before April first in the year following the  year  in
 which  it  is  not  so used to be distributed to the participating local
 governments.
   §  106.  Section  528 of the racing, pari-mutuel wagering and breeding
 law, subdivision 3 as amended by chapter 18 of  the  laws  of  2008,  is
 amended to read as follows:
   §  528.  Agreements  involving other states. 1. The [board] COMMISSION
 shall be empowered to conclude agreements with another state or a racing
 corporation or association in another state, as  the  case  may  be,  on
 behalf of any or all regional corporations for the purpose of conducting
 off-track  betting  on  races run in another state, subject to the other
 provisions of this article.
   2. No regional corporation shall conclude such  an  agreement  without
 the  express approval of the [board] COMMISSION, which shall be withheld
 upon a finding that such agreement would be contrary to the purposes  of
 this  article  or  upon  the [board's] COMMISSION'S determination to act
 directly, pursuant to this section.
   3. Subdivisions one and two of this section shall apply in like manner
 to any agreements with another state or any agency, subdivision or enti-
 ty thereof concerning off-track pari-mutuel betting conducted in another
 state on races run in this state. No  franchised  corporation,  nor  any
 racing  corporation  or  association  licensed by the [board] COMMISSION
 shall enter into such an agreement without  the  [board's]  COMMISSION'S
 express approval.
   §  107.  Section  529 of the racing, pari-mutuel wagering and breeding
 law is amended to read as follows:
   § 529. Unclaimed winnings and refunds. The  [board]  COMMISSION  shall
 require  each  regional  corporation to establish a non-escrowed account
 for payment of outstanding winning tickets and for payment of refunds to
 ticket holders entitled thereto under the rules of the  [board]  COMMIS-
 SION.
   1.  All  tickets  must be presented for payment to the regional corpo-
 ration from which purchased prior to April first of the  year  following
 the year of purchase.
   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] DEPARTMENT OF TAXATION AND FINANCE 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] DEPARTMENT OF TAXATION AND FINANCE. 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] DEPARTMENT OF TAXATION  AND
 FINANCE shall be deposited into the general fund of the state treasury.
   §  108.  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:
   § 530. Job  security  for  track  employees.  Plans  of  operation  of
 regional  off-track betting corporations shall include provision for job
 security for employees of racetracks within each region compatible  with
 and  in furtherance of the objectives of this article and subject to the
 approval of the [state racing and wagering board] COMMISSION. Job  secu-

 S. 7639                            93
 
 rity  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] COMMISSION and when approved shall be deemed  a  part  of
 the  plan of operation of such corporation and any other regional corpo-
 ration; provided, however, that nothing in this  article  or  any  other
 provision  of  this chapter shall be construed to require or empower the
 [board] COMMISSION to abrogate job security agreements between  the  New
 York city off-track betting corporation and any track employee organiza-
 tion,  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.
   §  109.  Section  531 of the racing, pari-mutuel wagering and breeding
 law is amended to read as follows:
   § 531. Reduction of local admissions taxes as a pre-condition of  off-
 track  betting.  1. Notwithstanding article eight of this chapter[,] and
 subdivision twenty-four of section sixty-four of the town law, no local-
 ly imposed taxes on admissions to harness or running races shall  be  in
 the aggregate more than three [per centum] PERCENT of such admissions on
 and  after the first day that off-track pari-mutuel betting is conducted
 or continues to be conducted in such locality  imposing  the  tax  by  a
 regional  corporation,  pursuant  to  this  article, established for the
 region in which such races are conducted.
   2. A regional corporation, except for such corporations consisting  of
 only  one participating county or one city, shall annually reimburse any
 city or town within such region for  any  reduction  in  admissions  tax
 revenues equal to the difference between such revenues for:
   a.  [The]  THE  twelve  months  immediately  preceding  the  reduction
 required by this section, and
   b. [Each] EACH twelve-month period subsequent  to  July  thirty-first,
 nineteen hundred seventy-eight.
   §  110. Subdivisions 1, 3 and 4 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
 amended by chapter 201 of the laws of  2017,  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  impose a surcharge of five [per centum] PERCENT 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-mu-
 tuel  pools.  Such  surcharge is hereby levied subject to the conditions
 set forth in this subdivision and article ten of this chapter.
   3. The revenues received from any surcharge imposed by subdivision one
 of this section, plus the  breaks,  shall  be  distributed  monthly,  as
 follows:
   a.  [Fifty  per centum] FIFTY PERCENT to such city, or to the counties
 and cities entitled to receive revenues from  the  regional  corporation
 pursuant to section five hundred sixteen of this chapter and in the same
 proportion as provided therein, or to an off-track betting operator; and

 S. 7639                            94
 
   b. [The] 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]  PERCENT
 of such balance to the city and the remainder to the county; [and]
   (iv)  where  the track conducting the race on which the bet was placed
 is located outside the state, in the same manner as described  in  para-
 graph a of this subdivision[.];
   (v)  where  the track conducting the race is located in a thoroughbred
 special betting district and is simulcasting  pursuant  to  section  one
 thousand  eight  of  this chapter outside such special betting district,
 ninety [per centum] PERCENT to the off-track betting  operator  and  ten
 [per  centum]  PERCENT  to the county in which such track is located[.];
 AND
   (vi) for the period of September first, two thousand  seventeen  until
 August  thirty-first,  two  thousand  twenty-two  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.
   4.  The [state racing and wagering board] COMMISSION shall issue regu-
 lations providing for monthly distribution to cities and counties of the
 revenues received under this section,  through  the  regional  off-track
 betting  corporation  in  which  such  cities  or  counties are located;
 provided, however, in the event that such cities or  counties  otherwise
 entitled  to receive such revenues are not participating cities or coun-
 ties with a regional off-track betting  corporation  then  such  monthly
 distributions  shall  be  payable  directly  to such cities or counties.
 Regional off-track betting corporations that receive payments under this
 subdivision shall distribute such payments to appropriate  participating
 cities and counties within three business days following receipt of such
 payments.    The  [board]  COMMISSION  shall  also  provide for periodic
 reports by regional off-track betting corporations to  ensure  that  the
 purposes of this section are carried out.
   §  111.  Paragraphs  b  and  c of subdivision 12 of section 604 of the
 racing, pari-mutuel wagering and breeding law, as amended by chapter 115
 of the laws of 2008, are amended to read as follows:
   b. No rule or regulation promulgated by the  corporation  pursuant  to
 the provisions of this subdivision shall be effective until a copy ther-
 eof is filed with the [racing and wagering board] COMMISSION.
   c. Any violation of any rule or regulation, filed with the [racing and
 wagering  board]  COMMISSION  and designated by the letter "R" by resol-
 ution of the board of directors of the corporation, shall be an  offense
 triable  by  a  judge  of  the  criminal court of the city, and shall be
 punishable by imprisonment for not more than six months, or by a fine of
 not more than one thousand dollars, or by  both  such  imprisonment  and
 fine.  All  such  fines collected shall be paid into the general fund of
 the state. Any such rule or regulation shall be effective, notwithstand-
 ing that any act or omission made an offense or punishable  thereby  may
 be a crime or offense or punishable under any other provision of law;

 S. 7639                            95

   §  112. Subdivision 1 of section 610 of the racing, pari-mutuel wager-
 ing and breeding law, as amended by chapter 115 of the laws of 2008,  is
 amended to read as follows:
   1. The monetary transactions of the corporation and the keeping of its
 books and accounts shall be under the supervision of the director of the
 division  of  the  budget.  The chair of the [racing and wagering board]
 COMMISSION may at any time request and shall be provided for review such
 books and accounts.
   § 113. Subdivisions 4 and 7 of section 611 of the racing,  pari-mutuel
 wagering and breeding law are amended to read as follows:
   4.  Any  resolution  or resolutions authorizing any bonds or notes may
 contain provisions, which shall be a part of the contract  or  contracts
 with the holders thereof, as to:
   a.  [Pledging]  PLEDGING  all or any part of the moneys or revenues or
 other assets of the corporation to secure the payment of such  bonds  or
 notes;
   b.  [The] THE setting aside of reserves or sinking funds and the regu-
 lation or disposition thereof;
   c. [Limitations] LIMITATIONS on the purposes to which the proceeds  of
 the  sale of any issue of bonds or notes then or thereafter to be issued
 may be applied and pledging such proceeds to secure the payment  of  the
 bonds or notes or any issue thereof;
   d.  [Limitations]  LIMITATIONS  on the issuance of additional bonds or
 notes; the terms upon which such additional bonds or notes may be issued
 and secured; the refunding of outstanding bonds or notes;
   e. [The] THE procedures, if any, by which the terms  of  any  contract
 with  the  holders  of  bonds or notes may be extended or abrogated, the
 amount of bonds or notes the holders of which must consent  thereto  and
 the manner in which such consent may be given;
   f. [The] THE creation of special funds into which any moneys or reven-
 ues of the corporation may be deposited;
   g.  [Limitations]  LIMITATIONS on the amounts that the corporation may
 expend for administrative or other expenses thereof;
   h. [Vesting] VESTING in a trustee such properties, rights, powers  and
 duties  in  trust as the corporation may determine and limiting or abro-
 gating the right of the holders of the bonds or notes to appoint a trus-
 tee under section six hundred sixteen of this chapter;
   i. [Defining] DEFINING the acts or omissions to act [which] THAT shall
 constitute a default in the obligations and duties of the corporation to
 the holders of the bonds or notes and providing for the rights and reme-
 dies of the holders of the bonds or notes in the event of such  default,
 including as a matter of right the appointment of a receiver; providing,
 however,  that  such  rights and remedies shall not be inconsistent with
 the general laws of the state and the other provisions of this  article;
 AND
   j.  [Any]  ANY  other matters, of like or different character, [which]
 THAT in any way affect the security or protection of the holders of  the
 bonds or notes.
   7.  The  corporation,  subject  to such agreements with the holders of
 bonds or notes as may then exist, shall have the power out of any  funds
 available  therefor  to  purchase  any  bonds or notes issued by it at a
 price not exceeding the redemption price thereof, which price shall be:
   a. [If] IF the bonds or notes  are  then  redeemable,  the  redemption
 price then applicable plus accrued interest to the next interest payment
 date thereon, or

 S. 7639                            96
 
   b.  [If] IF the bonds or notes are not then redeemable, the redemption
 price applicable on the first date after such purchase upon which  bonds
 or  notes  become  subject  to  redemption plus accrued interest to such
 date. All bonds or notes so purchased shall be cancelled.
   §  114. Subdivision 1 of section 612 of the racing, pari-mutuel wager-
 ing and breeding law, paragraph a of subdivision 1 as amended by chapter
 115 of the laws of 2008, is amended as follows:
   1. The corporation shall create and establish a  special  fund  herein
 referred to as the capital reserve fund, and shall pay into such capital
 reserve fund:
   a.  [Any]  ANY moneys appropriated and made available by the state for
 the purpose of such capital reserve fund,
   b. [Any] ANY proceeds of sale of bonds or notes to the extent provided
 in the resolution or resolutions  of  the  corporation  authorizing  the
 issuance thereof, and
   c.  [Any]  ANY  other moneys [which] THAT may be made available to the
 corporation for the purpose of such capital reserve fund from any  other
 source  or  sources. All moneys held in the capital reserve fund, except
 as hereinafter provided, shall be used solely for  the  payment  of  the
 principal  of  bonds of the corporation, the payment of interest on such
 bonds, or the payment of any redemption premium required to be paid when
 such bonds are redeemed  prior  to  maturity;  provided,  however,  that
 moneys  in such capital reserve fund shall not be withdrawn therefrom at
 any time in such amount as would reduce the amount of such fund to  less
 than  the maximum amount of principal and interest maturing and becoming
 due in any succeeding fiscal year of the corporation on all bonds of the
 corporation then outstanding, except for the purpose of paying principal
 of and interest on such bonds of the corporation maturing  and  becoming
 due and for the payment of which other moneys of the corporation are not
 available.  Any income or interest earned by, or increment to, the capi-
 tal reserve fund due to the investment thereof  may  be  transferred  to
 other  funds  or accounts to the extent it does not reduce the amount of
 the capital reserve fund below  the  maximum  amount  of  principal  and
 interest maturing and becoming due in any such succeeding fiscal year on
 all bonds of the corporation then outstanding.
   §  115. Subdivision 2 of section 616 of the racing, pari-mutuel wager-
 ing and breeding law is amended to read as follows:
   2. Such trustee may, and upon written request of the holders of  twen-
 ty-five  [per centum] PERCENT in principal amount of such bonds or notes
 then outstanding shall, in his, HER or its own name:
   a. [By] BY suit, action or special proceedings enforce all  rights  of
 the  holders  of  the bonds or notes, including the right to require the
 corporation to carry out any agreements with such holders and to perform
 its duties under this article;
   b. [Bring] BRING suit upon such bonds or notes;
   c. [By] BY action or suit, require the corporation to account as if it
 were the trustee of an express trust for the holders of  such  bonds  or
 notes;
   d.  [By] BY action or suit, enjoin any acts or things [which] THAT may
 be unlawful or in violation of the rights of the holders of  such  bonds
 or notes; AND
   e.  [Declare]  DECLARE all such bonds or notes due and payable, and if
 all defaults shall be made good, then, with the consent of  the  holders
 of  twenty-five  [per  centum]  PERCENT  of the principal amount of such
 bonds or notes then outstanding, annul such declaration and  its  conse-
 quences.

 S. 7639                            97
 
   §  116. Subdivisions 1, 4 and 5 of section 619 of the racing, pari-mu-
 tuel wagering and breeding law are amended to read as follows:
   1. As used in this section the following terms shall mean and include:
   a. "Corporation counsel." The corporation counsel of the city.
   b. "Employee." Any officer, director or employee of the corporation, a
 former  officer,  director  or  employee  of the corporation, his OR HER
 estate or judicially appointed personal representative. The term employ-
 ee shall not include an independent contractor.
   4. The duty to defend or indemnify and  save  harmless  prescribed  by
 this section shall be conditioned upon:
   a. [Delivery] DELIVERY to the corporation counsel at the office of the
 law  department of the city by the employee of the original or a copy of
 any summons, complaint, process, notice, demand or pleading  within  ten
 days after he OR SHE is served with such document, and
   b.  [The]  THE full cooperation of the employee in the defense of such
 action or proceeding and in defense of any action or proceeding  against
 the  corporation  based upon the same act or omission, and in the prose-
 cution of any appeal. Such delivery shall be deemed  a  request  by  the
 employee that the corporation provide for his OR HER defense pursuant to
 this section.  In the event that the corporation counsel shall assume an
 employee's  defense  and  thereafter the employee fails to or refuses to
 cooperate in the formation or presentation of his OR  HER  defense,  the
 court shall permit the corporation counsel to withdraw his OR HER repre-
 sentation ten days after giving written notice to the employee of his OR
 HER intention to discontinue such representation.
   5. In the event that the act or omission upon which the court proceed-
 ing  against  the employee is based was or is also the basis of a disci-
 plinary proceeding by the corporation against  the  employee,  represen-
 tation and indemnification pursuant to this section may be withheld:
   a. [Until] UNTIL such disciplinary proceeding has been resolved, and
   b. [Unless] UNLESS the resolution of the disciplinary proceeding exon-
 erated the employee as to such act or omission.
   § 117. The opening paragraph of section 621 of the racing, pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 115 of the laws of
 2008, is amended to read as follows:
   Within one hundred twenty days after the end of the fiscal year of the
 corporation, the directors thereof shall submit  to  the  governor,  the
 legislature,  the  [racing  and wagering board] COMMISSION and the state
 comptroller a complete and detailed report setting forth:
   § 118. Section 702 of the racing, pari-mutuel  wagering  and  breeding
 law is amended to read as follows:
   § 702. Committee. The Harry M. Zweig memorial fund for equine research
 committee is established for the purpose of administering the funds. The
 committee  [will]  SHALL consist of not less than nine and not more than
 fifteen members including but not limited to:
   1. [The chairman] THE CHAIR of the [state racing and  wagering  board]
 COMMISSION, or his OR HER designee[.];
   2.  [The] THE dean of New York state veterinary college at Cornell, or
 his OR HER designee[.];
   3. [A] A member or the executive director of the agriculture  and  New
 York  state  horse  breeding  development  fund  to be nominated by such
 fund[.];
   4. [A] A member or the  executive  director  of  the  New  York  state
 thoroughbred  breeding  and  development  fund  to  be nominated by such
 fund[.]; AND

 S. 7639                            98
 
   5. [Other] OTHER bona fide residents of the state who  have  a  cogent
 interest  in  the  racing and breeding industry in the state of which at
 least five [will] SHALL be New York breeders, owners, trainers or veter-
 inarians in equine practice.
   The  committee  as so constituted pursuant to rules and regulations of
 the [state racing and wagering board] COMMISSION  is  hereby  continued,
 and  shall  establish  its  own  by-laws which will include a system for
 electing its own officers and for perpetuating its membership, providing
 for the terms of its members, their replacement and succession, and such
 other administrative details as it deems  necessary  to  effectuate  the
 purposes  of this article. The [state racing and wagering board] COMMIS-
 SION shall review such by-laws and amendments  thereto  prior  to  their
 implementation.
   §  119.  Section  703 of the racing, pari-mutuel wagering and breeding
 law, subdivision 3 as added by section 1 of subpart  C  of  part  DD  of
 chapter 59 of the laws of 2019, is amended to read as follows:
   § 703. Finances of fund. 1. Two percent of all moneys accruing respec-
 tively  to the agriculture and New York state horse breeding development
 fund and the New York state thoroughbred breeding and development  fund,
 for  the  purpose  of  conducting equine research, shall be deposited by
 such funds in a special interest bearing account, title to  which  shall
 be  in  New  York  state  veterinary college at Cornell and control over
 which shall be in the committee subject to  audit  by  the  state  comp-
 troller.  Withdrawals  from  such  accounts  shall be made only upon the
 authorization of the committee and the signatures of two of the  commit-
 tee's  members as designated by the committee. All moneys transferred by
 such funds to special accounts pursuant to rules and regulations of  the
 [state racing and wagering board] COMMISSION, prior to the date on which
 this  article shall have become law, shall be deemed to have been depos-
 ited as provided in this subdivision. Moneys accrued subsequently  shall
 be deposited monthly within one month of their accrual by such funds and
 notice thereof shall be forwarded to the committee and the [state racing
 and wagering board] COMMISSION.
   2.  On  or  before  January  first  and July first, of each subsequent
 calendar year, such funds shall provide to the committee and the  [state
 racing  and  wagering board] COMMISSION a certified statement of amounts
 then deposited to the credit of the committee and a projection of  funds
 to  be deposited to the credit of such committee for the subsequent [six
 month] SIX-MONTH period.
   3. Upon the authorization through a resolution by the  committee,  the
 fund  may acquire moneys by the acceptance of conditional gifts, grants,
 devises or bequests given in furtherance of the mission of the  fund  to
 the  extent that any such gift, grant, devise, or bequest is in the form
 of cash, securities, or other form of personal property that is  readily
 convertible to cash, and only if the condition of the gift is that it be
 used  for  the unrestricted purpose of equine research. The fund may not
 accept a conditional gift, grant, devise, or bequest  if  the  condition
 would  require  the  fund  to  undertake to acquire property, construct,
 alter, or renovate any real property, or alter or suspend  the  research
 that  the  fund is already conducting or supporting. All moneys accepted
 shall be deposited into a segregated account subject to the requirements
 and conditions of subdivision  one  of  this  section.  The  fund  shall
 provide  notice of the acceptance of such moneys to the [gaming] commis-
 sion.
   § 120. Subdivisions 4 and 6 of section 704 of the racing,  pari-mutuel
 wagering and breeding law are amended to read as follows:

 S. 7639                            99
 
   4.  The  committee  shall  cause  all such proposals to be transmitted
 within five days of receipt, to the [state racing  and  wagering  board]
 COMMISSION.
   6.  The  committee's approval, disapproval and/or recommendations with
 regard to each proposal or its adoption of a budget shall be sent to the
 [state racing and wagering board] COMMISSION.
   § 121. Section 705 of the racing, pari-mutuel  wagering  and  breeding
 law is amended to read as follows:
   §  705. Research grants. 1. Upon approval of a proposal by the commit-
 tee, [it] THE COMMITTEE shall then enter into a contractual relationship
 with the applicant for the research grant within the limit of the  funds
 available therefor and subject to the following limitations:
   a.  All  grants  so  provided  shall  be  used  for the direct cost of
 approved projects and shall not be  used  to  supplant  funds  otherwise
 available  to  the  applicant  or to the institution with which [he] THE
 APPLICANT is affiliated, or for the general cost recoveries [which] THAT
 are rightfully the prior obligation of  the  institution  to  which  the
 research grant is made.
   b.  No  funds  shall  be expended for the acquisition, construction or
 renovation of capital facilities without specific prior written approval
 by the committee.
   c. Payments shall be made upon certified  vouchers  submitted  to  the
 committee, prepared in a format satisfactory to the committee.
   2.  Copies  of grant contracts shall be furnished to the [state racing
 and wagering board] COMMISSION, and each of the funds named  in  section
 seven hundred three of this article.
   § 122. Subdivision  2 of section 810 of the racing, pari-mutuel wager-
 ing and breeding law is amended to read as follows:
   2. Where the race meeting grounds or  enclosure  is  situated  in  two
 counties, one of which is wholly within a city, then:
   a.  If  the  tax  is imposed by such city, the fiscal officers of such
 city shall deposit the revenues of such taxes  in  a  special  fund  and
 shall  pay  to  the  county, not located in such city, within sixty days
 after collection thereof,  seventy-five  [per  centum]  PERCENT  of  the
 moneys  in  such  special  fund, for deposit in the general fund of such
 county as hereinbefore provided, less the expenses for the collection of
 such tax, and except that the sum of  five  thousand  dollars  shall  be
 retained  at  all  times  in such special fund for the purpose of making
 refunds or any necessary adjustments. The fiscal officers of  such  city
 shall  pay  the  balance  then  remaining  in such special fund into the
 general fund of such city as hereinbefore provided[;].
   b. If the tax is not imposed by such city,  but  is  imposed  by  such
 county, the fiscal officers of such county shall deposit the revenues of
 such  taxes  in  a  special fund and shall pay to such city within sixty
 days after collection thereof, twenty-five [per centum] PERCENT  of  the
 moneys  in  such  special  fund, for deposit in the general fund of such
 city as hereinbefore provided, less the expenses for the  collection  of
 such  tax  and  except  that  the  sum of five thousand dollars shall be
 retained at all times in such special fund for  the  purpose  of  making
 refunds or any necessary adjustments. The fiscal officers of such county
 shall  pay  the  balance remaining in such special fund into the general
 fund of such county as hereinbefore provided.
   § 123. Subdivision 1 and paragraphs  a  and  c  of  subdivision  2  of
 section  901  of  the  racing, pari-mutuel wagering and breeding law, as
 amended by chapter 18 of the laws  of  2008,  are  amended  to  read  as
 follows:

 S. 7639                            100
 
   1.  Notwithstanding  the provisions of subdivision two of section five
 hundred twenty-three of  this  chapter,  the  [board]  COMMISSION  shall
 authorize  regional  off-track betting corporations to accept additional
 wagers on multiple betting opportunities on races conducted by any fran-
 chised corporation.
   A  franchised  corporation  may elect to offer such similar additional
 daily double and quinella wagering  opportunities.  If  such  franchised
 corporation  offers  two  or  more  quinellas,  as  defined  herein, the
 provisions of section five hundred  twenty-three  of  this  chapter,  as
 modified  by  the  provisions of subdivisions one, two and three of this
 section, with respect to combined pools shall apply with respect to such
 wagering opportunities. At any time such a franchised  corporation  does
 not  offer  at  least  two quinellas, the provisions of this subdivision
 with respect to separate authorizations for regional corporations  shall
 remain in effect with respect to such quinella wagers.
   At  any  time such franchised corporation does not offer such an addi-
 tional daily double, the provisions of this subdivision with respect  to
 separate authorizations for regional corporations shall remain in effect
 with respect to such an additional daily double wager.
   Whenever regional off-track betting corporations offer wagers pursuant
 to  this subdivision that are not combined in a common pool with similar
 on-track wagers, the provisions of subdivision  eight  of  section  five
 hundred twenty-three of this chapter shall apply to such wagers.
   a.  In addition to the authority granted under subdivision one of this
 section, the [board] COMMISSION shall require, under conditions  subject
 to  its  approval,  the  franchised corporation to provide direct trans-
 missions into selected regional off-track facilities of a current  "live
 call  of  the  race,"  defined as the current positions of the horses at
 specified places on the track during the race. The track operator itself
 may perform the broadcast; or, provide appropriate space and  facilities
 to enable a single, alternative broadcast to be performed solely for the
 use  of  regional  off-track  betting  corporations, the expense of such
 alternative broadcast to be borne by such regional corporations, at  the
 discretion  of  such  regional  corporations. In either case, all incre-
 mental transmission costs are to be borne by such regional corporations.
   c. The [board] COMMISSION shall  approve  the  request  of  each  such
 regional off-track betting corporation to transmit the call of the race,
 beginning  January  first,  nineteen hundred seventy-nine, into an addi-
 tional, like number of facilities as specified in paragraph  b  of  this
 subdivision  and  subject to the conditions in such paragraph. Provided,
 however, that nothing shall prohibit such  franchised  corporation  from
 entering  into  agreements  with  such regional off-track betting corpo-
 rations designating additional facilities within  the  regions  of  such
 regional  off-track  betting corporations that may offer a "live call of
 the race", except that no such transmissions  are  authorized  into  the
 portion  of the Western and Catskill regions in the thoroughbred special
 betting district on those days that a thoroughbred track  is  conducting
 racing in such special betting district.
   § 124. Subdivision  1 of section 902 of the racing, pari-mutuel wager-
 ing and breeding law, as amended by section 2 of part JJ of  chapter  59
 of the laws of 2019, is amended to read as follows:
   1.  In  order  to assure the public's confidence and continue the high
 degree of integrity in racing at the pari-mutuel betting tracks,  equine
 drug  testing  at race meetings shall be conducted by a state college or
 at a land grant university within this state.  The  [gaming]  commission
 shall  promulgate  any  rules and regulations necessary to implement the

 S. 7639                            101
 
 provisions of this section, including administrative penalties  of  loss
 of  purse money, fines, or denial, suspension or revocation of a license
 for racing drugged horses.
   § 125. Section  903  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:
   § 903. Simulcasting rights; Breeders'  Cup  Ltd.  Notwithstanding  any
 inconsistent  provision  of  this  chapter  and upon the approval of the
 [board] COMMISSION, a franchised corporation is authorized to enter into
 an agreement with the Breeders' Cup Ltd.  for  the  disposition  of  all
 revenues  derived by such franchised corporation from and limited to the
 live transmission of the audio/visual signals of  and  from  pari-mutuel
 wagering  on races run by such franchised corporation to be known as the
 "Breeders' Cup Event Day", in such manner as such franchised corporation
 shall determine.
   § 126. Paragraphs a, b, c and e of subdivision 1  and  subdivisions  2
 and  2-a of section 904 of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 18 of the laws of 2008, paragraph a of subdi-
 vision 1 as amended by section 5 of part BB of chapter 60 of the laws of
 2016, are amended to read as follows:
   a. The applicable state tax provided for in  paragraphs  a  and  b  of
 subdivision  one  of  section  five hundred twenty-seven of this chapter
 shall be one-half percent for regular, multiple  and  exotic  bets.  Any
 harness  racing  or  association  or corporation, or thoroughbred racing
 corporation authorized  pursuant  to  this  section  shall  pay  to  the
 [gaming]  commission  as  a  regulatory fee, which fee is hereby levied,
 six-tenths of one percent of the total daily pari-mutuel pools.
   b. The system of on and off-track betting shall result in the combina-
 tion of all off-track wagers with  on-track  wagers  so  as  to  produce
 common  pari-mutuel  betting  pools. Provided, however, that the [board]
 COMMISSION may authorize separate pari-mutuel  wagering  pools  for  any
 corporation  or  association electing to accept such wagers, if [it] THE
 COMMISSION determines that a common on and off-track pari-mutuel betting
 pool, due to limitations in existing computer  systems  and  information
 transmission and receiving capacities cannot practically be accomplished
 so  as  to  maximize a reasonable number of separate wagering interests.
 The resulting separate pools for regional off-track betting corporations
 shall be subject to the limitations set forth in  subdivision  eight  of
 section five hundred twenty-three of this chapter.
   c.  Every association and corporation shall distribute all sums depos-
 ited in any pari-mutuel pool to the holders of winning tickets  therein,
 providing  such  tickets  be presented for payment before April first of
 the year following the year of their purchase, less  an  amount  [which]
 THAT  it  shall retain at the same rate established by the sending track
 plus the breaks.
   e. For any corporation licensed pursuant to article two of this  chap-
 ter,[,] the applicable state tax shall be one percent of all wagers, the
 amount  payable  to the thoroughbred breeding and development fund shall
 be one-half of one percent and distribution to  purses  shall  be  fifty
 percent  of  the  amount  retained  by the track after all statutory and
 contracted payments are made. No additional amounts may be  withheld  as
 provided in section two hundred thirty-seven of this chapter.
   2.  The  [state racing and wagering board] COMMISSION shall approve an
 application from any  racing  corporation  or  association  pursuant  to
 subdivision  one  of  this section to accept on-track wagers and display
 the simulcast of the Kentucky Derby or the Preakness provided,  however,

 S. 7639                            102
 
 that  no  application  shall be approved by the board that it determines
 may cause a reduction of the total  number  of  racing  events  normally
 conducted at the track on a daily basis.
   2-a. The [state racing and wagering board] COMMISSION shall approve an
 application  from  any  racing  corporation  or  association pursuant to
 subdivision one of this section to accept on-track wagers on the  Breed-
 ers' Cup races, and, in instances where the application contemplates the
 on-track  display  of  simulcasts  of and wagering on the entire card of
 Breeders' Cup races, the [board] COMMISSION shall  authorize,  for  that
 day, a reduction of the total number of racing events normally conducted
 at  the  track  on  a daily basis provided that the total number of live
 racing events conducted at the track shall not be less than two.
   § 127. Subdivision 1, paragraphs a, b, c and e of  subdivision  2  and
 subdivision  3  of  section  905 of the racing, pari-mutuel wagering and
 breeding law, as amended by chapter 346 of the laws of 1990, subdivision
 3 as amended by chapter 62 of the laws of  2003,  and  such  section  as
 renumbered  by  chapter  18  of the laws of 2008, are amended to read as
 follows:
   1. The combination of New York wagers with wagers  of  the  same  type
 made  in other states or foreign countries is hereby authorized pursuant
 to rules and regulations  of  the  [state  racing  and  wagering  board]
 COMMISSION  so  as  to  produce a common pari-mutuel pool for the calcu-
 lation of odds and the determination of pay-outs from such  pool,  which
 payout  shall be, as far as may be consistent herewith, the same for all
 winning bets of such type irrespective of whether a wager is  placed  in
 this state or in another state or foreign country.
   a.  The  [board]  COMMISSION  may authorize the combination of out-of-
 state or foreign wagers on horse races in New York state with  the  same
 type  of  wagers  made  in  New  York state at the site of the statewide
 interface designated by the [board] COMMISSION for  the  combination  of
 on-track and off-track wagers made in New York state.
   b.  In  this regard the [board] COMMISSION shall enact rules and regu-
 lations including but not limited to insuring the  following  standards:
 that the out-of-state or foreign wagering operator is duly authorized to
 conduct  such  wagering  by  the  laws of the applicable out-of-state or
 foreign government and is of satisfactory ethical and financial  repute;
 that all such wagers are made in a format consistent with the format for
 such  wagers  in  New York state as to number of betting entries and the
 combination of such entries into coupled entries and fields; that if the
 laws of such other state or foreign country  permit,  that  such  wagers
 shall  be  subject  to  the  identical  retention  and breakage rates as
 pertain at the site of the New York interface; that if the laws of  such
 other  state  or  foreign country prescribe a retention or breakage rate
 different from that in New York state it would not be  contrary  to  the
 public  interest  to  compute  odds and payouts for such out-of-state or
 foreign wagers consistent with such law; that if it is  consistent  with
 the public interest to compute odds and payouts for such out-of-state or
 foreign  wagers  according to retention or breakage rates different from
 those in New York state, that the site of  the  New  York  interface  is
 ready and able to carry out such computations consistent with the formu-
 las  hereinafter  prescribed;  that  [regarding]  IN  REGARD  TO foreign
 wagers, that  for  computational  purposes  all  foreign  wagers  to  be
 combined [will] SHALL be converted into American dollars at the prevail-
 ing exchange rates established by a money center bank on the date of the
 race (although breakage [will] SHALL be computed consistent with foreign
 currency  denominations);  that  other  than  the  variations  caused by

 S. 7639                            103

 retention or breakage computations that all  odds  and  pay-outs  [will]
 SHALL  be  computed  and calculated, refunds or cancellations awarded or
 allowed, and overpayments or underpayments corrected solely  in  accord-
 ance with the applicable rules in New York state whose laws shall govern
 all  disputes  pertinent  thereto;  that the means, methods and times of
 transmission of wagering data necessary to the proper implementation  of
 this  subdivision  shall  be  as  prescribed and approved by the [board]
 COMMISSION; that all entities whose wagers are so combined  have  agreed
 that  the odds and final pay-offs [will] SHALL be computed in accordance
 with the data available for computation at the  site  of  the  statewide
 interface  at  the  start  of  the race and that pay-off computations in
 accordance therewith shall be final regardless  of  mistakes  in  trans-
 mission  or failures to transmit or receive all wagers and that the out-
 of-state or foreign operators [will] SHALL  be  solely  responsible  for
 claims  asserted  in that regard for wagers made through such operators;
 that the out-of-state or foreign operator  consents  to  be  subject  to
 audit by the commissioner of taxation and finance or his OR HER designee
 to  verify  the  accuracy  and completeness of all wagers required to be
 transmitted by it hereunder; and such other rules and regulations as may
 be deemed necessary and appropriate by the [board] COMMISSION.
   c. If different retention or breakage rates than those  prevailing  at
 the  site of the New York interface are prescribed by the laws governing
 such out-of-state or foreign betting operator, and the  [board]  COMMIS-
 SION  is  satisfied that it would not be contrary to the public interest
 to accept such wagers for combination with New York wagers, calculations
 of the current odds and final pay-off prices shall be made as follows:
   (i) All New York state and out-of-state and foreign wagers of the same
 type shall be combined into single pools for calculation.
   (ii) As many tentative payout prices as there are different  retention
 and  breakage  rates applicable (including the prevailing New York rate)
 shall be calculated on the basis of returning the  appropriate  rate  of
 return,  less breaks after imposition of each such rate of retention and
 breaks.
   (iii) To each such out-of-state or foreign operator shall be allocated
 an amount sufficient for it to pay the appropriate pay-off to holders of
 winning wagers placed with it together  with  the  applicable  retention
 amount on its total wagers.
   (iv) To each New York operator shall be allocated an amount sufficient
 for  it  to  pay  the  appropriate  pay-off to holders of winning wagers
 placed with it together with the applicable New York retention amount on
 its total wagers.
   (v) The total amount of the combined pool less the combined  total  of
 all  allocations  as  determined in subparagraphs (iii) and (iv) of this
 paragraph shall be credited to a special breakage account. The amount in
 such account giving appropriate weight to rates established for breakage
 shall be allocated as breaks among all operators in the combined pool in
 accordance with the rules and regulations  of  the  [board]  COMMISSION.
 Should a minus pool eventuate in which the total combined pool is insuf-
 ficient to reimburse each operator for the allocation due to it then the
 allocation  due  to each such operator [will] SHALL be reduced as may be
 appropriate and such operator [will] SHALL be responsible for satisfying
 its liability from its own operating capital.
   e. The operator of the site of the statewide interface [will] SHALL be
 responsible for the actual collection or transmittal of funds in settle-
 ment of the liabilities of all operators participating in  the  combined
 pool.

 S. 7639                            104
 
   3.  Combining New York wagers on horse races conducted in other states
 or foreign countries with wagers on such races made elsewhere.
   a. The [board] COMMISSION may authorize the combination of wagers made
 in  New  York  state  upon  the outcome of out-of-state or foreign horse
 races with wagers made upon such  races  elsewhere  in  accordance  with
 rules  and regulations of the [board] COMMISSION which shall include but
 not be limited to the following provisions:
   (i) that if such combination is authorized that  all  New  York  state
 operators  must  participate therein to assure uniform New York odds and
 pay-outs;
   (ii) that if the out-of-state or foreign computation is  made  on  the
 basis of different retention or breakage rates and (A) such out-of-state
 or  foreign laws do not permit New York wagers to be computed in accord-
 ance with New York retention and breakage  rates,  that  such  variation
 does  not  exceed  twenty percent and [will] SHALL be allocated pro rata
 among winning wagers in New York state and recipients of such  retention
 and  breakage  rates  in  New York state, or (B) if such out-of-state or
 foreign laws do permit New York bets to be computed in  accordance  with
 New  York  retention  and breakage rates that such rates [will] SHALL be
 applied and that the out-of-state or foreign operator doing such  calcu-
 lations is willing and able to properly perform such function;
   (iii) that the out-of-state or foreign rules governing such wagers are
 understandable  to  New  York  wagerers  and in the best judgment of the
 [board will] COMMISSION SHALL not deviate substantially  from  customary
 and standard pari-mutuel practice in general;
   (iv) that the New York operators are able to perform such transmission
 and computer retrieval functions as may be required;
   (v)  that  such  combination  will enhance the best interest of racing
 generally; and
   (vi) such other rules and regulations as may be deemed  necessary  and
 appropriate by the [board] COMMISSION.
   b. Nothing herein shall be construed to authorize or prescribe any act
 contrary to federal law.
   § 128. Paragraph  (b)  of  subdivision 2 of section 906 of the racing,
 pari-mutuel wagering and breeding law, as added by chapter 2 of the laws
 of 1995 and such section as renumbered by chapter  18  of  the  laws  of
 2008, is amended to read as follows:
   (b)  The [board] COMMISSION shall approve the rules and the payment of
 prizes of a handicapping tournament. No operator of a handicapping tour-
 nament may accept an entry  fee  for  a  tournament  until  the  [board]
 COMMISSION  has approved the rules and the payment of prizes of a handi-
 capping tournament.
   § 129. Section 910 of the racing, pari-mutuel  wagering  and  breeding
 law, as added by chapter 535 of the laws of 2007 and renumbered by chap-
 ter 18 of the laws of 2008, is amended to read as follows:
   §  910.  Reciprocity of licenses. All license denials, suspensions and
 revocations imposed by the pertinent racing and gambling authorities  of
 other  jurisdictions,  including  states, United States territories, and
 Canadian provinces shall be  recognized  and  enforced  by  the  [board]
 COMMISSION  unless  application  is made for a hearing at which time the
 applicant may show cause as to why such penalty should not  be  enforced
 against  the  applicant  in  this  state.  If  a hearing is granted, the
 [board] COMMISSION may delay the imposition of the suspension or revoca-
 tion of the license. The [board] COMMISSION must take  reasonable  steps
 to  make the licensee aware of the availability of a hearing for example

 S. 7639                            105
 
 by listing it on the official website, in the license instructions or in
 the racing program.
   §  130.  Section  911 of the racing, pari-mutuel wagering and breeding
 law, as added by section 1 of part II of chapter 58 of the laws of 2012,
 is amended to read as follows:
   § 911. Advance deposit  wagering.  The  [racing  and  wagering  board]
 COMMISSION  shall  study the impact of advance deposit wagering on horse
 racing and pari-mutuel handle in New York state. The study shall include
 but not be limited to the  impact  of  out-of-state  entities  accepting
 wagers  from  New York state residents, the annual dollar amount wagered
 by New York state residents through out-of-state advance deposit  wager-
 ing  accounts,  the  number  of  out-of-state  advance  deposit wagering
 accounts held by New York state residents,  and  information  concerning
 New York state residents who utilize out-of-state advance deposit wager-
 ing  accounts, including, but not limited to, residency. The [racing and
 wagering board] COMMISSION shall submit the  study,  together  with  any
 recommendations, to the governor and legislature no later than September
 fifteenth, two thousand twelve.
   § 131. The fifth undesignated paragraph of section 1000 of the racing,
 pari-mutuel  wagering  and  breeding law, as added by chapter 363 of the
 laws of 1984, is amended to read as follows:
   Accordingly, the legislature hereby  authorizes  experimentation  with
 the  telecasts  of  horse  races, on which pari-mutuel wagering shall be
 permitted, under the regulation of the [state racing and wagering board]
 COMMISSION in the manner and subject to the conditions provided in  this
 article.
   §  132. The opening paragraph and subdivisions h, i, j, k, l, m, n, o,
 p, q, r, s and t of section 1001 of the racing, pari-mutuel wagering and
 breeding law, as amended by chapter 174 of the laws of 2013, are amended
 to read as follows:
   As used in this article, IN ADDITION TO THE DEFINITIONS SET  FORTH  IN
 SECTION  ONE HUNDRED ONE OF THIS CHAPTER, the following terms shall have
 the following meanings:
   h. ["Commission" means the state gaming commission;
   i.] "Branch office" means an establishment maintained and operated  by
 an off-track betting corporation, where off-track pari-mutuel betting on
 horse races may be placed in accordance with the terms and conditions of
 this chapter and rules and regulations issued pursuant thereto;
   [j.]  I.  "Simulcast facility" means those facilities within the state
 that are authorized pursuant  to  the  provisions  of  this  article  to
 display simulcasts for pari-mutuel wagering purposes;
   [k.]  J.  "Off-track betting region" means those regions as defined in
 section five hundred nineteen of this chapter;
   [l.] K. "Simulcast theater" means a simulcast facility [which] THAT is
 also a public entertainment  and  wagering  facility,  [and]  which  may
 include any or all of the following: a [large screen] LARGE-SCREEN tele-
 vision  projection  and  display unit, a display system for odds, pools,
 and payout prices, areas for viewing and seating, a  food  and  beverage
 facility, and any other convenience currently provided at racetracks and
 not inconsistent with local zoning ordinances;
   [m.] L. "Simulcast districts" means one or more of the following named
 districts [comprised of] COMPRISING the counties within which pari-mutu-
 el racing events are conducted as follows:
     District 1                    New York City, Suffolk, Nassau, and
                                     Westchester counties
     District 2                    Sullivan county

 S. 7639                            106
 
     District 3                    Saratoga county
     District 4                    Oneida county
     District 5                    Erie, Genesee and Ontario counties
   [n.]  M.  "Initial  out-of-state  thoroughbred  track" means the track
 commencing full-card simulcasting to New York prior to any other out-of-
 state thoroughbred track after 1:00 PM on any calendar day.
   [o.] N. "Second out-of-state thoroughbred track" means the  track  (or
 subsequent  track  or tracks where otherwise authorized by this article)
 conducting full-card simulcasting to New York  after  the  race  program
 from  the  initial  out-of-state  thoroughbred  track that has commenced
 simulcasting on any calendar day.
   [p.] O. "Mixed meeting" means a race meeting [which] THAT has a combi-
 nation of thoroughbred, quarter horse, Appaloosa, paint, and/or  Arabian
 racing on the same race program.
   [q.]  P.  "Account  wagering"  means a form of pari-mutuel wagering in
 which a person establishes an account with an account wagering  licensee
 and subsequently communicates via telephone or other electronic media to
 the account wagering licensee wagering instructions concerning the funds
 in  such person's account and wagers to be placed on the account owner's
 behalf.
   [r.] Q. "Account wagering licensee"  means  racing  associations,  and
 corporations;  franchised  corporations, off-track betting corporations,
 and  [commission  approved]   COMMISSION-APPROVED   multi-jurisdictional
 account  wagering  providers that have been authorized by the commission
 to offer account wagering.
   [s.] R. "Dormant account" means an account wagering account held by an
 account wagering licensee in which there has been no  wagering  activity
 for three years.
   [t.] S. "Multi-jurisdictional account wagering provider" means a busi-
 ness  entity  domiciled  in  a jurisdiction, other than the state of New
 York, that does not operate either a simulcast facility that is open  to
 the  public  within  the  state  of New York or a licensed or franchised
 racetrack within the state, but which is licensed by such  other  juris-
 diction  to  offer  pari-mutuel  account wagering on races such provider
 simulcasts and other races it offers in its  wagering  menu  to  persons
 located in or out of the jurisdiction issuing such license.
   § 133. Subdivision 2 of section 1002 of the racing, pari-mutuel wager-
 ing  and breeding law, as amended by chapter 174 of the laws of 2013, is
 amended to read as follows:
   2. The commission shall annually submit  reports  on  or  before  July
 first  following each year in which simulcasting and account wagering is
 conducted to the director of the budget, the  [chairman]  CHAIR  of  the
 senate  finance  committee and the [chairman] CHAIR of the assembly ways
 and means committee  evaluating  the  results  of  such  simulcasts  and
 account  wagering  on the compatibility with the well-being of the horse
 racing, breeding and pari-mutuel wagering industries in this  state  and
 make  any  recommendations  [it]  THE COMMISSION deems appropriate. Such
 reports may be submitted together with the reports required by  subdivi-
 sion  two  of  section  two hundred thirty-six and subparagraph (iii) of
 paragraph a and subparagraph (i) of paragraph b of  subdivision  one  of
 section three hundred eighteen of this chapter.
   §  134.  Paragraph  (b)  of subdivision 1 and the opening paragraph of
 subdivision 2 of section 1003 of the racing,  pari-mutuel  wagering  and
 breeding law, as amended by chapter 174 of the laws of 2013, are amended
 to read as follows:

 S. 7639                            107
 
   (b)  Any  agreement  authorizing in-home simulcasting pursuant to this
 section shall be in writing, and upon written request, a copy  shall  be
 provided  to  the  representative horsemen's group of the racing associ-
 ation or corporation that is party to  said  agreement.  Such  agreement
 shall  include  a  categorical statement of new and incremental expenses
 directly related and attributable to the conduct of  in-home  simulcast-
 ing.  The  representative  horsemen's  group  may, within thirty days of
 receiving the agreement, petition the [board] COMMISSION for a  determi-
 nation  as  to  the  appropriateness  and reasonableness of any expenses
 attributed by either the racing association or corporation or  the  off-
 track betting corporation.
   Before  [it]  THE  COMMISSION  may  grant such license, the commission
 shall review and approve a plan of operation submitted by such applicant
 including, but not limited to the following information:
   § 135. Section 1004 of the racing, pari-mutuel wagering  and  breeding
 law,  as added by chapter 363 of the laws of 1984, is amended to read as
 follows:
   § 1004. Suspension of simulcast licenses. 1.  The  [board]  COMMISSION
 may  suspend  any  license  authorizing the operation of a facility as a
 simulcast facility, granted to an operator, if such  operator  fails  to
 conduct  operations  in  accordance  with  the provisions of the plan of
 operation, with the applicable rules of the [board] COMMISSION  or  with
 the provisions of this article.
   2. If the [board shall determine] COMMISSION DETERMINES to suspend any
 license  to operate a simulcast facility, [it] THE COMMISSION shall give
 the operator involved notice of the time and plan for a  hearing  before
 the  [board]  COMMISSION  at which the [board] COMMISSION will hear such
 operator in reference thereto. The [board] COMMISSION may continue  such
 hearing from time to time for the convenience of all parties. Any of the
 parties  affected by such hearing may be represented by counsel, and the
 [board] COMMISSION may be represented by  its  own  counsel  or  by  the
 attorney  general. In the conduct of such hearing the [board] COMMISSION
 shall not be bound by technical rules  of  evidence,  but  all  evidence
 offered  before  the [board] COMMISSION shall be reduced to writing, and
 such evidence together with the exhibits, if any, and  the  findings  of
 the  [board] COMMISSION shall be permanently preserved and shall consti-
 tute the record of the [board] COMMISSION  in  such  case.  The  [board]
 COMMISSION may by order, if occasion shall require, refer to one or more
 of  its  members or officers the duty of taking testimony in such matter
 and to report thereon to the [board] COMMISSION,  but  no  determination
 shall  be  made  thereon except by the [board] COMMISSION. Within thirty
 days after such hearing, the  [board]  COMMISSION  shall  make  a  final
 determination.  If  [it]  THE COMMISSION determines that such license be
 suspended, [it] THE COMMISSION shall  make  an  order  accordingly,  and
 shall  cause  such order to be entered on its minutes and a copy thereof
 served on such  operator.  The  action  of  the  [board]  COMMISSION  in
 suspending  such license shall be reviewable in the supreme court in the
 manner provided by the provisions of article seventy-eight of the  civil
 practice law and rules.
   3. The [board] COMMISSION may immediately suspend any license to oper-
 ate  a  simulcast  facility for a reason set forth in subdivision one of
 this section as of the delivery to the affected operator of  the  notice
 of  hearing  required  by  subdivision two of this section pending final
 determination of the [board]  COMMISSION  following  the  hearing.  Such
 emergency  suspension  shall  be  followed  by  a hearing as provided in
 subdivision two OF THIS SECTION within twenty days following suspension.

 S. 7639                            108
 
   § 136. Section 1005 of the racing, pari-mutuel wagering  and  breeding
 law,  as  amended by chapter 240 of the laws of 2010, is amended to read
 as follows:
   § 1005. Power of the [board] COMMISSION to impose fines and penalties.
 In  addition  to  its power to suspend or revoke licenses granted by it,
 the [state racing and wagering board] COMMISSION  is  hereby  authorized
 and empowered to impose monetary fines upon any corporation, association
 or  person  participating  in any way in simulcasts on which pari-mutuel
 betting is conducted, other than as a patron, and  whether  licensed  by
 the  [board] COMMISSION or not, for a violation of any provision of this
 chapter or the rules promulgated  by  the  [board]  COMMISSION  pursuant
 thereto, not exceeding [twenty-five thousand dollars for each violation]
 THE  AMOUNTS  SET  FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER.
 The [board] COMMISSION is further authorized  and  empowered  to  impose
 monetary  fines,  not  exceeding  [twenty-five thousand dollars for each
 violation] THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF  THIS
 CHAPTER,  upon  any  such  corporation,  association  or  person  for  a
 violation of any order issued by the [board] COMMISSION pursuant to  the
 provisions  of  this  chapter  or  the  rules promulgated by the [board]
 COMMISSION pursuant thereto, provided that a copy of  such  order  shall
 have  been  served,  either  personally  or by registered mail, upon the
 corporation, association or person to whom the same was directed,  prior
 to  the occurrence of the violation for which such fine is imposed. Such
 fines shall be paid into the state treasury. The action of the board  in
 imposing  any  monetary fine shall be reviewable in the supreme court in
 the manner provided by and subject to the provisions of  article  seven-
 ty-eight of the civil practice law and rules.
   §  137.  Section 1006 of the racing, pari-mutuel wagering and breeding
 law, as added by chapter 363 of the laws of 1984, is amended to read  as
 follows:
   § 1006. Refunds. 1. Moneys received by the [board] COMMISSION pursuant
 to  this article may be refunded to the party for whose account the same
 were received on proof satisfactory to the [board] COMMISSION that:
   a. [Such] SUCH moneys were in excess of the amount required by law;
   b. [The] THE license for which application was made has  been  refused
 by the [board] COMMISSION;
   c.  [Such] SUCH moneys were received as a fine and the [board] COMMIS-
 SION has after review reduced or remitted the amount of such fine; OR
   d. [Upon] UPON appeal, the court reduced or remitted the fine imposed.
   2. Such refunds shall, upon approval by  the  [board]  COMMISSION  and
 after  audit by the comptroller, be paid from any moneys received pursu-
 ant to this article.
   § 138. Subdivisions 1, 3 and 3-a and paragraph a of subdivision  5  of
 section  1007  of  the  racing,  pari-mutuel  wagering and breeding law,
 subdivision 1 as added by chapter 363 of the laws of 1984,  the  opening
 paragraph of subdivision 1 as amended by chapter 18 of the laws of 2008,
 paragraph  b  of  subdivision 1 as amended by chapter 116 of the laws of
 2001, subdivision 3 as amended by chapter 286 of the laws of 1985, para-
 graph a of subdivision 3 as amended by chapter 281 of the laws of  1994,
 paragraph  b  of  subdivision 3 as amended by chapter 287 of the laws of
 1985, paragraph d of subdivision 3 as amended by section 6 of part E  of
 chapter  56  of  the  laws of 1998, subparagraph (iii) of paragraph d of
 subdivision 3 as amended by section 2 of part HH of chapter  59  of  the
 laws  of  2019,  paragraph e of subdivision 3 as added by chapter 286 of
 the laws of 1985 and as relettered by chapter 346 of the laws  of  1990,
 paragraph f of subdivision 3 as added by chapter 503 of the laws of 1989

 S. 7639                            109
 
 and  as  relettered  by  chapter 346 of the laws of 1990, paragraph g of
 subdivision 3 as amended by section 6 of part BB of chapter  60  of  the
 laws  of  2016,  subdivision  3-a as added by chapter 488 of the laws of
 1988,  and  paragraph a of subdivision 5 as amended by chapter 35 of the
 laws of 1993, are amended to read as follows:
   1. The [board] COMMISSION may authorize and approve one or more appli-
 cations for a license by any harness racing association or  corporation,
 or  thoroughbred  racing corporation as provided in section one thousand
 three of this article to provide for the simulcast of  horse  races  for
 wagering  purposes  from  a  track operated by any association or corpo-
 ration [which is conducting] THAT CONDUCTS a  pari-mutuel  race  meeting
 under  this  chapter to a receiving track operated by any association or
 corporation applying for such license except it shall not be  applicable
 when  a  [throughbred]  THOROUGHBRED track in zone two [is simulcasting]
 SIMULCASTS to a thoroughbred track in zone one, provided, however,  that
 no application shall be approved by the [board] COMMISSION:
   a. [That it] THAT THE COMMISSION determines may cause any reduction of
 the  total number of racing events conducted on an annual or daily basis
 at the receiving track; and
   b. [Without] WITHOUT a written agreement between the  receiving  track
 or  corporation  applying  for  such license and the sending track and a
 letter of consent to such  agreement  from  any  racing  association  or
 corporation  [which]  THAT  operates  another track within the simulcast
 district in which the receiving track is located, and  is  conducting  a
 race  meeting  during  the  period  for  which simulcasting is proposed;
 provided, however, that such  consent  shall  not  be  withheld  if  the
 receiving  track  is  more than thirty miles from such other track. Such
 period shall be defined as a  twenty-four  hour  day  from  midnight  to
 midnight. For those tracks located in the city of New York or the county
 of  Westchester or Nassau, such period shall be limited to the same time
 of day defined as afternoon against afternoon and evening against  even-
 ing.
   3.  Notwithstanding  any  inconsistent provisions of this chapter, the
 sums retained by any receiving track from the total  deposits  in  pools
 wagered  on  simulcast  racing  events as provided in subdivision one of
 this section shall be equal to the retained  percentages  applicable  to
 the sending track.
   a.  Of  the  sums retained by the receiving track from simulcast pools
 the pari-mutuel tax shall be levied at the lower of the pari-mutuel  tax
 rate  in  effect on December thirty-first, nineteen hundred ninety-three
 at the receiving track, plus ten [per centum] PERCENT of the  breaks  or
 the following rates: two percent of simulcast pools generated by regular
 wagers,  two and one-half percent of simulcast pools generated by multi-
 ple wagers, and seven percent of simulcast pools generated by exotic and
 super exotic wagers, plus ten [per centum] PERCENT of the breaks.
   b. Of the sums retained by the receiving track  as  provided  in  this
 subdivision, [an amount equal to six-tenths of one per centum and, after
 April  first,  nineteen hundred eighty-six,] an amount equal to one [per
 centum] PERCENT of daily  pools  derived  from  bets  on  simulcasts  of
 harness races shall be paid to the agriculture and New York state breed-
 ing  and  development  fund, and an amount equal to one-half of one [per
 centum] PERCENT of daily  pools  derived  from  bets  on  simulcasts  of
 running  races shall be paid to the New York state thoroughbred breeding
 and development fund.

 S. 7639                            110
 
   c. Of the sums retained by the receiving track  as  provided  in  this
 subdivision, an amount as determined through agreement between the send-
 ing and receiving tracks shall be distributed to the sending track.
   d.  (i) Of the sums retained by a receiving track located in Westches-
 ter County, two and one-half [per centum] PERCENT of total  pools  shall
 be  used  exclusively  for  increasing  purses  to  be  awarded at races
 conducted by such receiving track.
   (ii) Of the sums retained by other receiving tracks while such  tracks
 are  conducting  a  race  meeting, fifty [per centum] PERCENT of the net
 amounts remaining after payments required in this section and fifty [per
 centum] PERCENT of the net amounts derived from all simulcasting author-
 ized by chapter two hundred eighty-one of the laws of  nineteen  hundred
 ninety-four  and  other  such  direct  expenses as [is] ARE necessary to
 provide the [track to track] TRACK-TO-TRACK program but excluding charg-
 es for depreciation, administration overhead expenses, taxes not direct-
 ly related to such program and management fees shall be used exclusively
 for increasing purses awarded  at  races  conducted  by  such  receiving
 track.  Nothing in this section shall preclude the right of a horsemen's
 organization representing owners and trainers  at  the  receiving  track
 from entering into an agreement with such receiving track to provide for
 an  audit  or  other such verification of such net amounts available for
 purses.
   (iii) Of the sums retained by a receiving track located in Westchester
 county on races received from a franchised corporation, for  the  period
 commencing January first, two thousand eight and continuing through June
 thirtieth,  two  thousand twenty, the amount used exclusively for purses
 to be awarded at races  conducted  by  such  receiving  track  shall  be
 computed  as  follows: of the sums so retained, two and one-half percent
 of the total pools. Such amount shall be increased or decreased  in  the
 amount  of  fifty  percent of the difference in total commissions deter-
 mined by comparing the total commissions available  after  July  twenty-
 first,  nineteen hundred ninety-five to the total commissions that would
 have been available to such track prior to July  twenty-first,  nineteen
 hundred ninety-five.
   e. If an admission fee is charged at a receiving track, such fee shall
 be  subject to state and local admission taxes at the rate applicable to
 the receiving track pursuant to this chapter.
   f. The payment of the state tax imposed by this section shall be  made
 to the commissioner of taxation and finance at such regular intervals as
 the  commissioner  of  taxation  and  finance  may require, and shall be
 accompanied by a report, under oath, [which] THAT sets forth such infor-
 mation as the commissioner of taxation and finance may require. A penal-
 ty of five [per centum] PERCENT and interest at the  rate  of  one  [per
 centum]  PERCENT  per  month  from the date the report is required to be
 filed to the date of payment of the tax shall be payable in case any tax
 imposed by this section is not paid when due.  If  the  commissioner  of
 taxation  and  finance  determines  that  any moneys received under this
 paragraph were paid in error, such commissioner may cause the same to be
 refunded without  interest  out  of  any  moneys  collected  thereunder,
 provided  an  application therefor is filed with [the] SUCH commissioner
 within one year from the time  the  erroneous  payment  was  made.  Such
 taxes,  interest  and  penalties  when collected, after the deduction of
 refunds of taxes erroneously paid, shall be paid by the commissioner  of
 taxation and finance into the general fund of the state treasury.
   g.  Any  harness racing or association or corporation, or thoroughbred
 racing corporation authorized pursuant to this section shall pay to  the

 S. 7639                            111
 
 [gaming]  commission  as  a  regulatory fee, which fee is hereby levied,
 six-tenths of one percent of the total daily pari-mutuel pools.
   3-a.  Notwithstanding  any  inconsistent provision of this chapter, of
 the sums received by a sending track, a portion shall be distributed  to
 purses in accordance with a written agreement between the racing associ-
 ation  or  corporation operating such track and the horsemen's organiza-
 tion representing owners and trainers at such track,  as  determined  by
 the  [board] COMMISSION. In the absence of such an agreement, fifty [per
 centum] PERCENT of the  sums  received  by  a  sending  track  shall  be
 distributed to purses.
   a. that is conducting a race meeting of the same type of racing during
 the  same  time  that  racing  is  being conducted at the sending track,
 provided, however, that the [board] COMMISSION may establish  conditions
 to  authorize  the acceptance of wagers of a sending track during a race
 meeting of the same type of racing as special events in the best  inter-
 ests of racing or as other events that the [board] COMMISSION determines
 to  be  in  the  best  interests  of  racing provided, however, that the
 conduct of such other events shall be subject to  an  agreement  between
 the  receiving track and the horsemen's organization representing owners
 and trainers at such track;
   § 139. Subdivision 1, paragraph c of subdivision  2,  paragraph  b  of
 subdivision  3  and  subdivisions 4 and 5 of section 1008 of the racing,
 pari-mutuel wagering and breeding law, subdivision 1 and paragraph c  of
 subdivision  2 as amended by chapter 18 of the laws of 2008, paragraph b
 of subdivision 3 as amended by section 7 of part BB of chapter 60 of the
 laws of 2016, subdivision 4 as amended and subdivision  5  as  added  by
 chapter  346  of  the  laws  of 1990 and paragraph a of subdivision 4 as
 amended by chapter 445 of the laws of  1997,  are  amended  to  read  as
 follows:
   1.  The  [board]  COMMISSION  may in accordance with the provisions of
 section one thousand three of this  article  and  section  five  hundred
 twenty-three  of  this  chapter authorize and approve an application for
 licenses submitted by any off-track betting corporation to  display  the
 simulcasts of racing from any thoroughbred or harness racing association
 or corporation located in the state.
   c.  (i)  Except  as  provided in section one thousand thirteen of this
 [chapter] ARTICLE, if such sending track is not a thoroughbred track  in
 the  Catskill  region  conducting a mixed meeting, letters of consent to
 such agreement by the regional track or tracks conducting a  meeting  or
 meetings  of  the same type of racing during the period for which simul-
 casting is proposed.  For  purposes  of  this  article,  a  track  first
 licensed  to  conduct  pari-mutuel  racing after January first, nineteen
 hundred eighty-five, shall  not  be  considered  a  regional  track  for
 purposes  of  applicable  letters of consent as required in this section
 and section one thousand nine of this  [chapter]  ARTICLE.  Such  period
 shall  be  defined  as a twenty-four hour day from midnight to midnight.
 For those tracks located in the city of New  York  or  the  counties  of
 Westchester  or Nassau, such period shall be limited to the same time of
 day, defined as afternoon against afternoon, twilight  against  twilight
 and  evening  against  evening,  the hours for which shall be as further
 specified by the [board] COMMISSION.
   (ii) For any simulcasting facility located within an area of a  circle
 whose  radius is forty miles, the center of which shall be measured from
 a regional track, and as provided in section one  thousand  thirteen  of
 this  [chapter]  ARTICLE,  the [board] COMMISSION shall not approve such
 application unless such regional track, as described in subparagraph (i)

 S. 7639                            112
 
 OF THIS PARAGRAPH, has given its written authorization, provided  howev-
 er,  that  between thirty-one and forty miles such approval shall not be
 unreasonably withheld. Such approval shall not be required if the simul-
 casting  facility  is  located  without  the forty mile radius or if the
 sending track is a thoroughbred track in the Catskill region  conducting
 a  mixed  meeting.  Such written authorization shall not be required nor
 shall the provisions of section five hundred twenty-three of this  chap-
 ter  apply  to those races that such regional track may elect to receive
 as a simulcast race during its regularly scheduled race meeting.
   b. Of the sums received by the sending track, fifty percent  shall  be
 distributed  to  purses  in  addition  to moneys distributed pursuant to
 section five hundred twenty-seven of this chapter. The off-track betting
 corporation shall pay to the [gaming] commission as  a  regulatory  fee,
 which fee is hereby levied, six-tenths of one percent of the total daily
 pools.
   4.  a. Notwithstanding any other provision of law to the contrary, the
 [board] COMMISSION may authorize a  regional  off-track  betting  corpo-
 ration  to  amend  its plan of operation to provide for the sale of food
 and non-alcoholic beverages within its simulcasting facilities. For such
 facilities when facilities of  a  hotel  or  restaurant  as  defined  in
 section three of the alcoholic beverage control law are [utilized] USED,
 and  table  service  for  at  least twenty-four persons is provided, the
 [board] COMMISSION may, in its discretion,  authorize  a  regional  off-
 track  betting corporation to amend its plan of operation to provide for
 the sale of beer, wine and liquor, in  accordance  with  all  applicable
 state  and  local licensing requirements.   The [board] COMMISSION shall
 promulgate rules and regulations to carry out  the  provisions  of  this
 subdivision  with  the intent that such sale of food, alcoholic and non-
 alcoholic beverages shall be in accordance with appropriate  health  and
 sanitary  codes, and shall not include sales on credit except such sales
 [utilizing] USING a [third party] THIRD-PARTY credit card. With  respect
 to  the  sale of beer, wine and liquor, said rules and regulations shall
 provide requirements for seating capacity  and  the  minimum  number  of
 tables, which in no event shall be less than six.
   b.  (i)  Regional off-track betting corporations shall have the option
 of charging an admission fee to simulcasting  facilities  authorized  to
 sell  food, alcoholic or non-alcoholic beverages pursuant to paragraph a
 of this subdivision. The amount of such fee  shall  be  subject  to  the
 approval of the [board] COMMISSION.
   (ii) Such fee shall be subject to a state admission tax imposed at the
 rate of four [per centum] PERCENT of the admission fee. The tax shall be
 administered  by  the  commissioner  of  taxation  and  finance  and the
 provisions of section three hundred six of this chapter relating to  the
 administration  and  collection of the tax imposed by such section shall
 apply to the tax imposed by this subparagraph, in the  same  manner  and
 with the same force and effect as if the language of such provisions had
 been  incorporated in full into this subparagraph and expressly referred
 to the tax imposed by this subparagraph, except to the extent  that  any
 such  provision is either inconsistent with a provision of this subpara-
 graph or is not relevant to this subparagraph.
   (iii) Any county (except a county wholly within a city)  or  city,  or
 both,  in which such simulcasting facility is located, is hereby author-
 ized and empowered to adopt and amend local laws imposing a tax on  such
 admission  fee  at  a rate not to exceed fifteen [per centum] PERCENT of
 the admission fee. The provisions  of  article  eight  of  this  chapter
 relating to the administration and collection of the taxes authorized to

 S. 7639                            113
 
 be  imposed  by such article (including the provisions relating to judi-
 cial review) shall apply to a tax imposed pursuant to the  authority  of
 this subparagraph, in the same manner and with the same force and effect
 as if the language of such provisions had been incorporated in full into
 this  subparagraph  and  expressly  referred  to  a tax authorized to be
 imposed pursuant to this subparagraph, except to  the  extent  that  any
 such  provision is either inconsistent with a provision of this subpara-
 graph or is not relevant to this subparagraph.
   5. a. As a condition to receiving simulcasts in any branch office from
 any sending track a regional off-track betting corporation located in  a
 city  with  a population of one million shall simulcast the thoroughbred
 and quarter horse races of a thoroughbred track located in the  Catskill
 region  conducting  a  mixed  meeting in all such branches that will [be
 receiving] RECEIVE the simulcasts of any other thoroughbred  or  harness
 horse  races  on  any  day  that such thoroughbred track in the Catskill
 region may be conducting a mixed meeting and offers such  simulcasts  of
 its races to such corporation, provided, however, that the costs associ-
 ated  with  the transmission and receipt of the simulcast signal of such
 thoroughbred track located in the Catskill region shall be borne by such
 track.
   b. Any branch office that receives such simulcast  signal  for  forty-
 five days may cease receiving such signal if the off-track betting oper-
 ator justifies to the [board] COMMISSION that the opening of such branch
 office  has  sustained  economic loss during such forty-five day period.
 Provided, however, the track and off-track betting operator  may  waiver
 this provision by contract.
   § 140. Subdivisions 1, 2, 2-a, paragraph b of subdivision 3 and subdi-
 visions  4,  4-a,  5  and  6  of section 1009 of the racing, pari-mutuel
 wagering and breeding law, as added by chapter 363 of the laws of  1984,
 subdivisions  1,  2,  5  and  paragraph b of subdivision 3 as amended by
 chapter 18 of the laws of 2008, subdivision 2-a as added by chapter  286
 of  the  laws  of  1985,  paragraph (a) of subdivision 2-a as amended by
 chapter 626 of the laws of 1986, paragraph (c)  of  subdivision  2-a  as
 added  by  section 2 of part GG of chapter 59 of the laws of 2019, para-
 graph a of subdivision 4 as amended by section 3 of part OO  of  chapter
 59 of the laws of 2006, paragraph b of subdivision 4 as amended by chap-
 ter 261 and subdivision 4-a as added by chapter 488 of the laws of 1988,
 paragraph  c  of  subdivision  4  as added by chapter 503 of the laws of
 1989, paragraph d of subdivision 4 as amended by section 8 of part BB of
 chapter 60 of the laws of 2016, are amended to read as follows:
   1. The [board] COMMISSION may authorize and  approve  eight  licenses,
 except that any approval of a license for a franchised corporation shall
 not  decrease  the number of licenses available, as of July first, nine-
 teen hundred ninety to any other eligible operator under subdivision two
 of this section, for the operation of simulcast theaters as  defined  in
 section one thousand one of this article. One such license shall only be
 approved for the regional off-track betting corporation defined by para-
 graph  b  of  subdivision  one  of section five hundred nineteen of this
 chapter.
   2. Such a simulcast theater, pursuant to a license issued  in  accord-
 ance  with the provisions of this section and section one thousand three
 of this article may be owned or leased, and operated, (a) by one or more
 racing associations or  corporations;  (b)  by  the  regional  off-track
 betting  corporation of the region where such simulcast theater facility
 is to be located; (c) jointly by one  or  more  racing  associations  or
 corporations  and  the  regional  off-track  betting  corporation of the

 S. 7639                            114

 region where such simulcast theater facility is to be located; or (d) by
 a franchised corporation; provided, however, that for  the  purposes  of
 paragraph (a) of subdivision two-a of this section, an entity authorized
 by  paragraph  (b) or (c) of this subdivision to own, lease or operate a
 simulcast theater may,  pursuant  to  a  competitive  bidding  procedure
 carried  out  in  accordance  with  rules  and regulations issued by the
 [board] COMMISSION, select another person, firm or corporation to  oper-
 ate  or  jointly  own  or  lease  such facility and enter into a written
 agreement with such person, firm or corporation provided that such party
 shall  be  subject  to  the  licensing  requirements  of   the   [board]
 COMMISSION.
   2-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this
 section, the [board] COMMISSION may authorize one or more  licenses,  as
 provided  in  paragraphs (b) and (c) of subdivision two of this section,
 to enter into a written agreement with another person,  firm  or  corpo-
 ration  to  jointly  operate or lease such facility for the operation of
 simulcast at entertainment theaters as  special  demonstration  projects
 for  purposes  of  stimulating economic development, employment opportu-
 nities and state and local revenues. Such demonstration  projects  shall
 be  licensed  in  accordance  with  all applicable laws, rules and regu-
 lations of this article.
   (a) In Sullivan, Greene and Ulster  counties  the  [board]  COMMISSION
 shall  determine  the number of such projects to be located in privately
 owned hotels in such counties for the exclusive use of the hotel guests.
   (b) The [board] COMMISSION  may  additionally  authorize  one  special
 demonstration project within the city of New York.
   (c)  The  [board]  COMMISSION  may  authorize  a special demonstration
 project to be located in any facility licensed pursuant to article thir-
 teen  of  this  chapter  in  Schenectady  county.  Notwithstanding   the
 provisions of paragraph a of subdivision five of this section, an admis-
 sion fee shall not be required for a demonstration project authorized in
 this  paragraph.  [Provided  however,  on]  ON  any  day when a regional
 harness track conducts a live race  meeting,  a  demonstration  facility
 within  that  region  shall predominantly display the live video of such
 regional harness track.
   The regional off-track  betting  corporations  operating  such  demon-
 stration  facilities  within  New  York  city  may  elect  to  apply the
 provisions of section five hundred thirty-two of this chapter in lieu of
 any admission charges.
   b. Letters of consent to  the  application  from  any  regional  track
 [which]  THAT  is  not  a party to the operation of the proposed theater
 unless such track is located more than forty  miles  from  the  proposed
 simulcast theater; and a copy of any agreement between the applicant and
 such  corporation pursuant to which such consent has been given, subject
 to the provision of subdivision two of section  one  thousand  seven  of
 this article. Notwithstanding the foregoing, the Nassau region may apply
 to locate one simulcast theater within Nassau County without a letter of
 consent  from  the  operator of the regional track provided the proposed
 simulcast theater is not within fifteen miles of the closest  border  of
 any racing facility operated by a franchised corporation.
   4.  Notwithstanding  any  inconsistent provisions of this chapter, the
 sums retained by any associations or corporations from the total  depos-
 its  in  pools wagered on simulcast racing events at a simulcast theater
 as provided in subdivision one of this section shall  be  equal  to  the
 rates of retained percentage applicable to the sending track.

 S. 7639                            115
 
   a.  Of  the sums retained by the operator as provided in this subdivi-
 sion, the pari-mutuel tax shall be levied at the  following  rates  plus
 twenty  [per  centum] PERCENT of the breaks: from wagers on thoroughbred
 races, eight-tenths of one [per centum] PERCENT of pools generated  from
 regular  wagers;  one  and  three-tenths  [per  centum] PERCENT of pools
 generated from  multiple  wagers;  two  and  eight-tenths  [per  centum]
 PERCENT  of  pools  generated from exotic wagers; and three and one-half
 [per centum] PERCENT of pools generated from super  exotic  wagers;  and
 from  wagers  on  harness races, one-half of one [per centum] PERCENT of
 pools generated from regular wagers; one [per centum] PERCENT  of  pools
 generated from multiple wagers; two and one-half [per centum] PERCENT of
 pools  generated  from  exotic  wagers and three [per centum] PERCENT of
 pools generated from super exotic wagers[;].
   b. Of the sums retained by the operator as provided in  this  subdivi-
 sion, an amount equal to one [per centum] PERCENT of daily pools derived
 from  bets  on simulcasts of harness races shall be paid to the agricul-
 ture and New York state horse breeding development fund, and  an  amount
 equal  to  one-half  of  one [per centum] PERCENT of daily pools derived
 from bets on simulcasts of running races shall be paid to the  New  York
 state thoroughbred breeding and development fund.
   c.  The payment of the state tax imposed by this section shall be made
 to the commissioner of taxation and finance at such regular intervals as
 the commissioner of taxation and  finance  may  require,  and  shall  be
 accompanied by a report, under oath, [which] THAT sets forth such infor-
 mation as the commissioner of taxation and finance may require. A penal-
 ty  of  five  [per  centum] PERCENT and interest at the rate of one [per
 centum] PERCENT per month from the date the report  is  required  to  be
 filed to the date of payment of the tax shall be payable in case any tax
 imposed  by  this  section  is not paid when due. If the commissioner of
 taxation and finance determines that  any  moneys  received  under  this
 paragraph  were paid in error, the commissioner may cause the same to be
 refunded without  interest  out  of  any  moneys  collected  thereunder,
 provided  an  application therefor is filed with the commissioner within
 one year from the time the  erroneous  payment  was  made.  Such  taxes,
 interest and penalties when collected, after the deduction of refunds of
 taxes  erroneously  paid,  shall be paid by the commissioner of taxation
 and finance into the general fund of the state treasury.
   d. The operator shall pay to the [gaming] commission as  a  regulatory
 fee,  which fee is hereby levied, six-tenths of one percent of the total
 daily pools.
   4-a. Notwithstanding any inconsistent provision of  this  chapter,  of
 the  sums received by a sending track, a portion shall be distributed to
 purses in accordance with a written agreement between the racing associ-
 ation or corporation operating such track and the  horsemen's  organiza-
 tion  representing  owners  and trainers at such track, as determined by
 the [board] COMMISSION.  In the absence of such an agreement, fifty [per
 centum] PERCENT of the  sums  received  by  a  sending  track  shall  be
 distributed to purses.
   5.  a. An admission fee to simulcast theaters shall be charged and the
 amount of such admission fee shall be subject to  the  approval  of  the
 [racing and wagering board] COMMISSION.
   b.  Such  admission  fee  shall  be  subject  to a state admission tax
 imposed at the rate of four [per centum] PERCENT of the  admission  fee.
 The  tax  shall  be  administered  by  the  commissioner of taxation and
 finance and the provisions of section three hundred six of this  chapter
 relating to the administration and collection of the tax imposed by such

 S. 7639                            116
 
 section  shall  apply  to the tax imposed by this paragraph, in the same
 manner and with the same force and effect as if  the  language  of  such
 provisions  had  been  incorporated  in full into this paragraph and had
 expressly  referred  to the tax imposed by this paragraph, except to the
 extent that any such provision is either inconsistent with  a  provision
 of this paragraph or is not relevant to this paragraph.
   c. Any county (except a county wholly within a city) or city, or both,
 in  which  a  simulcast  theater  is  located,  is hereby authorized and
 empowered to adopt and amend local laws imposing a tax on such admission
 fee at a rate not to exceed fifteen [per centum] PERCENT of  the  admis-
 sion  fee.  The  provisions of article eight of this chapter relating to
 the administration and collection of the taxes authorized to be  imposed
 by  such  article (including the provisions relating to judicial review)
 shall apply to a tax imposed pursuant to the  authority  of  this  para-
 graph,  in  the same manner and with the same force and effect as if the
 language of such provisions had been  incorporated  in  full  into  this
 paragraph  and  had expressly referred to a tax authorized to be imposed
 pursuant to this paragraph, except to the extent that any such provision
 is either inconsistent with a provision of  this  paragraph  or  is  not
 relevant to this paragraph.
   6.  The  size,  location and operation of a simulcast theater shall be
 subject to local zoning ordinances and the approval of the  [racing  and
 wagering board] COMMISSION.
   § 141. Subdivision 1 of section 1010 of the racing, pari-mutuel wager-
 ing  and breeding law, as amended by chapter 346 of the laws of 1990, is
 amended to read as follows:
   1. Plans for operation of simulcast facilities shall include provision
 for job security for  employees  of  racetracks  and  off-track  betting
 corporations  within the district where the facility is located, compat-
 ible with and in furtherance of  the  objectives  of  this  article  and
 subject to the approval of the [state racing and wagering board] COMMIS-
 SION.  Job  security  agreements that have been or may be concluded from
 time to time after July first, nineteen  hundred  seventy-three  between
 employee  organizations  and the operators of simulcast facilities shall
 be subject to the approval of the [board] COMMISSION and  when  approved
 shall be deemed a part of the plan of operation of such simulcast facil-
 ity.
   §  142.  Section 1011 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:
   § 1011. Certain credit to off-track betting  corporations.  a.  During
 the period that a franchised corporation is simulcasting from a facility
 operated by such franchised corporation in the second zone as defined in
 section  two  hundred forty-seven of this chapter to a facility operated
 by such franchised corporation pursuant to section one thousand seven of
 this [chapter] ARTICLE, any off-track betting corporation operating in a
 county in which such association maintains a racetrack shall  receive  a
 credit of twenty-five [per centum] PERCENT of the state taxes due pursu-
 ant  to  section  five  hundred  twenty-seven  of this chapter on wagers
 placed on races conducted by such association, provided that such corpo-
 ration has entered into an  agreement  with  the  employee  organization
 representing  the  employees  of such corporation in which it has agreed
 not to reduce its workforce as a result of such simulcasting.
   b. During the days that a franchised corporation is simulcasting  from
 a racetrack facility operated by such franchised corporation and located
 in  the  first  zone to a racetrack facility operated by such franchised

 S. 7639                            117
 
 corporation located wholly within a city of one  million  or  more,  one
 [per centum] PERCENT of the total wagers placed at such receiving facil-
 ity shall be paid to such city.
   c.  During the days that a franchised corporation is simulcasting from
 a facility located wholly within a city in the first zone to a racetrack
 facility operated by such franchised corporation located partially with-
 in a city with a population in excess of one million and partially with-
 in a county, one-half [per centum] PERCENT of the total wagers placed at
 such receiving facility shall be paid to such  city  and  one-half  [per
 centum] PERCENT of such wagers shall be paid to such county.
   §  143.  Subdivision  6  of  section 1012-a of the racing, pari-mutuel
 wagering and breeding law, as added by chapter 174 of the laws of  2013,
 is amended to read as follows:
   6.  multi-jurisdictional account wagering providers shall pay a market
 origin fee equal to five [per centum] PERCENT  on  each  wager  accepted
 from New York residents. Multi-jurisdictional account wagering providers
 shall  make  the  required  payments  to the market origin account on or
 before the fifth business day of each month and such  required  payments
 shall cover payments due for the period of the preceding calendar month;
 provided,  however,  that  such  payments  required  to be made on April
 fifteenth shall be accompanied by a report under oath, showing the total
 of all such payments,  together  with  such  other  information  as  the
 commission  may  require.  A  penalty  of  five [per centum] PERCENT and
 interest at the rate of one [per centum] PERCENT per month from the date
 the report is required to be filed to the  date  the  payment  shall  be
 payable  in  case any payments required by this subdivision are NOT paid
 when due. If the commission determines that any  moneys  received  under
 this  subdivision  were paid in error, the commission may cause the same
 to be refunded without interest out of any moneys collected  thereunder,
 provided an application therefor is filed with the commission within one
 year  from the time the erroneous payment was made. The commission shall
 pay into the racing regulation account, under the joint custody  of  the
 comptroller  and  the  commission, the total amount of the fee collected
 pursuant to this section.
   § 144. The opening paragraph and paragraphs (c), (d) and (j) of subdi-
 vision 1 and subdivisions 4, 5 and 7 of  section  1013  of  the  racing,
 pari-mutuel  wagering  and  breeding law, as added by chapter 346 of the
 laws of 1990, paragraph (c) of subdivision 1 as amended by  chapter  524
 of the laws of 1991, are amended to read as follows:
   Whenever  under  this  article  a  written agreement is required to be
 obtained from a sending regional track or tracks located  within  simul-
 cast  district  one  or  two  for the purpose of simulcasting, and it is
 claimed by the applicant for such license  for  simulcasting  that  such
 written  agreement has been unreasonably refused, declined or denied, or
 offered for consideration that is unreasonable within parameters  estab-
 lished by market conditions, geographical location or historical experi-
 ence,  the  terms  and  conditions and consideration to be paid for such
 proposed simulcasting shall be  determined  by  binding  arbitration  in
 accordance  with  the  procedures  set  forth  herein and by regulations
 promulgated by the [board] COMMISSION.  Failure to agree to such binding
 arbitration by the sending  track  to  simulcast  within  the  simulcast
 district  shall be deemed as authorization for such licensee or proposed
 licensee to enter into an agreement to  receive  such  simulcast  signal
 from  another  track  or  tracks  within this state, notwithstanding the
 provisions of section five hundred twenty-three of this chapter.

 S. 7639                            118
 
   (c) Where the applicant for simulcasting thereafter maintains that the
 agreement sought has been unreasonably refused or  denied  or  that  the
 proposal  of the party or parties from whom the agreement is required is
 unreasonable or not economically feasible so as to permit the conduct of
 simulcasting,  [it]  THE APPLICANT shall notify the [racing and wagering
 board] COMMISSION, which, within fifteen days thereafter,  shall  notify
 the  track  that  binding arbitration procedures will be initiated. Such
 notification shall be delivered to the track by certified  mail,  return
 receipt  requested.  (i)  The  [board]  COMMISSION  shall  arbitrate all
 disputes  arbitrable  pursuant  to  this  section  unless  either  party
 objects,  in  such event the [board] COMMISSION shall provide and desig-
 nate to the parties a list of three or more independent arbitrators from
 a panel of such arbitrators  maintained  by  it,  having  experience  in
 dispute resolution and the economics of the pari-mutuel racing industry.
 In  order to sustain the continuity of the simulcast programs during the
 period of such arbitration, the terms and conditions of any  current  or
 pre-existing  agreement shall remain in full force and effect during the
 period of such arbitration. (ii) Within thirty days  of  such  notifica-
 tion, the track may refuse to enter into any such arbitration procedures
 by  notifying  the  [board]  COMMISSION.    Upon  such notification, the
 [board] COMMISSION shall authorize the applicant to enter into an agree-
 ment to receive a simulcast signal from another track within the  state,
 notwithstanding any other provision of law to the contrary.
   (d)  The  provisions for binding arbitration contained in this section
 shall be applicable to any proposed agreement with such  other  regional
 track. In the event a simulcast agreement has been refused by such other
 regional  track,  notwithstanding the provisions of section five hundred
 twenty-three of this chapter, the [board] COMMISSION shall authorize the
 applicant to enter into an agreement to receive a simulcast  signal  for
 purposes  of pari-mutuel wagering from any other track within this state
 conducting the same type of racing that  was  refused  by  the  regional
 tracks.
   (j)  The  arbitrator,  if not the [board] COMMISSION, shall notify the
 [board] COMMISSION of its final award which shall  be  enforced  by  the
 [board] COMMISSION pursuant to this chapter.
   4.  Nothing  herein  shall  be construed to dispense with any approval
 required for the licensing of simulcasting  by  the  [board]  COMMISSION
 under this article as any other provision of law.
   5.  Nothing  herein shall preclude all the parties to any such dispute
 from entering into a written agreement providing for the submission  and
 resolution  of  any  such dispute by any other form of final and binding
 arbitration, under any agreed upon procedure, to any arbitration  panel,
 forum  or  arbitrator within thirty days after notice of the designation
 of the list of arbitrators herein by the [board] COMMISSION.
   7. The arbitrator  appointed  pursuant  to  subdivision  one  of  this
 section shall be entitled to receive a fee for his or her services to be
 paid  equally  by  the parties. In no event shall the [board] COMMISSION
 charge a fee to arbitrate disputes.
   § 145. The opening paragraph, paragraphs d and f,  subparagraph  1  of
 paragraph  g,  item  (i)  of subparagraph 2 of paragraph h, paragraph i,
 subparagraph 1 of paragraph j and the opening paragraph of  subparagraph
 2  of  paragraph k of subdivision 1 of section 1014 of the racing, pari-
 mutuel wagering and breeding law, as amended by chapter 18 of  the  laws
 of 2008, the opening paragraph of subdivision 1, as amended by section 3
 of part HH of chapter 59 of the laws of 2019, subparagraph (iv) of para-

 S. 7639                            119
 
 graph  i of subdivision 1 as added by section 9 of part BB of chapter 60
 of the laws of 2016, are amended to read as follows:
   The  provisions of this section shall govern the simulcasting of races
 conducted at thoroughbred tracks located in another state or country  on
 any day during which a franchised corporation is conducting a race meet-
 ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
 thirtieth, two thousand twenty and on any day regardless of  whether  or
 not  a  franchised  corporation is conducting a race meeting in Saratoga
 county at Saratoga thoroughbred  racetrack  after  June  thirtieth,  two
 thousand  twenty.  On  any day on which a franchised corporation has not
 scheduled a racing program but a thoroughbred racing corporation located
 within the state is conducting racing, [every]  EACH  off-track  betting
 corporation   branch  office  and  [every]  EACH  simulcasting  facility
 licensed in accordance with section one thousand seven (that has entered
 into a written agreement with such facility's representative  horsemen's
 organization, as approved by the commission), one thousand eight, or one
 thousand  nine  of this article shall be authorized to accept wagers and
 display the live simulcast signal from thoroughbred  tracks  located  in
 another state or foreign country subject to the following provisions:
   d.  Each  off-track  betting  corporation  shall determine the average
 daily handle on the in-state thoroughbred corporation, the average daily
 handle from out-of-state tracks and the average total daily payment made
 to the in-state thoroughbred track on each day from April  first,  nine-
 teen   hundred  ninety-three  through  December  thirty-first,  nineteen
 hundred ninety-three on which the off-track betting corporation accepted
 wagers on races conducted at such track and races conducted on  an  out-
 of-state  track on a day on which no scheduled races were conducted by a
 franchised corporation.  This  calculation  shall  be  provided  to  the
 [racing  and wagering board] COMMISSION and the chief executive officers
 of the in-state thoroughbred track and the horsemen's  organization.  If
 there  is  a  dispute  as  to  the  amount of such calculations, written
 documentation from the off-track  betting  corporation  and  the  track,
 shall  be  supplied  to the [racing and wagering board] COMMISSION which
 shall make a determination of the correct amounts,  which  determination
 shall be final and binding on all parties.
   f.  The  amount shall be distributed in accordance with the provisions
 of this section. The [board] COMMISSION shall determine  the  amount  of
 and  dates  of  such payments, which dates shall, as far as practicable,
 reflect the payments made to such track during the comparable period  of
 nineteen hundred ninety-three.
   (1) At the conclusion of the thoroughbred track corporation's nineteen
 hundred  ninety-four  racing season or as shortly thereafter as possible
 but not later than December twentieth, nineteen hundred ninety-four, the
 off-track betting corporations  and  the  [racing  and  wagering  board]
 COMMISSION  shall  determine  the  average daily handle for the in-state
 thoroughbred racing corporation and the average daily handle  for  races
 conducted  at  out-of-state  or  out-of-country tracks. If average daily
 handle for any off-track betting corporation exceeds by ten percent  the
 average  daily  handle as calculated in paragraph d of this subdivision,
 such off-track betting corporation shall pay to the  in-state  thorough-
 bred  racing corporation an amount calculated by multiplying the average
 daily handle in excess of one hundred ten percent of the  average  daily
 handle of nineteen hundred ninety-three by the effective commission rate
 paid  by  such corporation in nineteen hundred ninety-three. Such calcu-
 lation shall be computed separately for handle on  in-state  tracks  and
 handle on out-of-state tracks.

 S. 7639                            120
 
   (i)  In  addition,  licensed harness tracks shall receive one and one-
 half [per centum] PERCENT on total handle on races conducted at an  out-
 of-state  or  out-of-country  thoroughbred  track  provided such harness
 track is neither accepting wagers nor  displaying  the  signal  from  an
 out-of-state track.
   i.  Any  facility  authorized  to accept wagers on out-of-state tracks
 shall distribute all sums deposited in any pari-mutuel pool to the hold-
 ers of winning tickets therein, provided such tickets are presented  for
 payment  prior  to  April  first of the year following the year of their
 purchase less eighteen [per centum] PERCENT of  the  total  deposits  in
 pools  resulting from regular bets, less twenty-one [per centum] PERCENT
 of the total deposits in pools resulting from multiple bets, less  twen-
 ty-six  [per  centum]  PERCENT  of the total deposits in pools resulting
 from exotic bets, less thirty-six [per  centum]  PERCENT  of  the  total
 deposits  in  pools  resulting from super exotic bets plus the breaks as
 defined in section two hundred thirty-six of this  chapter  except  that
 the  retention  rates and breaks shall be as prescribed by another state
 or country if such wagers are combined with those in the other state  or
 country pursuant to section nine hundred five of this chapter.
   [(i)] (1) Of the sum so retained, the applicable tax rate shall be one
 and  one-half  percent  of  all  such  wagers  plus fifty percent of the
 breaks; provided, however, fifty percent of  the  breaks  accruing  from
 off-track  betting  corporations licensed in accordance with section one
 thousand eight of this article and from simulcast theaters  licensed  in
 accordance with section one thousand nine of this article, shall be paid
 to  the  agriculture  and  New York state horse breeding and development
 fund and to the thoroughbred breeding and development fund, the total of
 such payments to be apportioned fifty [per centum] PERCENT to each  such
 fund.
   [(ii)]  (2)  Of  the  sums  so  retained, one-half of one [per centum]
 PERCENT of all wagers shall be paid to the New York  state  thoroughbred
 breeding  and  development  fund, except that of the sums so retained on
 such wagers at licensed harness tracks, one-half  of  one  [per  centum]
 PERCENT  shall  be  paid  to  the  agricultural and New York State horse
 breeding and development fund.
   [(iii)] (3) Of the sum so retained, two percent of all wagers shall be
 paid to a franchised corporation to be used exclusively for the  purpose
 of  increasing  purses,  including stakes, premiums and prizes, provided
 further that such amount shall not exceed the amount paid to  such  non-
 profit  racing  association in nineteen hundred ninety-three from wagers
 placed on out-of-state  tracks  on  a  day  when  no  racing  was  being
 conducted  by the non-profit racing association and a racing program was
 being conducted by a thoroughbred  racing  corporation  located  in  the
 state. The excess, if any, shall be paid to a thoroughbred racing corpo-
 ration  located in the state until August thirty-first, nineteen hundred
 ninety-five and on and after July nineteen, nineteen hundred  ninety-six
 to  be  used exclusively for the purpose of increasing purses, including
 stakes, premiums and prizes.
   [(iv)] (4) Any thoroughbred racing corporation or harness racing asso-
 ciation or  corporation  or  off-track  betting  corporation  authorized
 pursuant to this section shall pay to the [gaming] commission as a regu-
 latory fee, which fee is hereby levied, six-tenths of one percent of all
 wagering pools.
   (1)  All  wagers authorized by this section shall be combined so as to
 produce common pari-mutuel betting pools for the calculation of odds and
 the determination of payouts from such pools,  which  payouts  shall  be

 S. 7639                            121

 made  pursuant  to  the rules of the [board] COMMISSION.  Every location
 authorized to accept wagers or display  simulcasting  pursuant  to  this
 section shall be subject to all appropriate provisions of this chapter.
   upon  application of any facility licensed in accordance with sections
 one thousand seven and one thousand nine of this  article,  the  [board]
 COMMISSION  shall  authorize the imposition of a sum equal to the amount
 authorized by section five hundred  thirty-two  of  this  chapter  which
 shall  apply  to  wagers  placed at such facility. Such sums received by
 facilities licensed in accordance with section one thousand nine of this
 article shall be retained for the general purpose  of  the  corporation.
 Such  sums  received  by  such  facilities  licensed  in accordance with
 section one thousand seven of  this  article  shall  be  distributed  as
 follows:
   §  146.  The opening paragraph and paragraphs d and e of subdivision 3
 and paragraph c of subdivision 4 of section 1015 of the racing, pari-mu-
 tuel wagering and breeding law, the opening paragraph of  subdivision  3
 as  amended  and such section as renumbered by chapter 18 of the laws of
 2008, paragraph d of subdivision 3 and paragraph c of subdivision  4  as
 amended  by section 22 of part F3 of chapter 62 of the laws of 2003, and
 paragraph e of subdivision 3 as amended by section  10  of  part  BB  of
 chapter 60 of the laws of 2016, are amended to read as follows:
   Any  facility authorized to accept wagers on out-of-state tracks shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 any  tickets  therein  provided  such  tickets are presented for payment
 prior to April first of the year following the year  of  their  purchase
 less  nineteen [per centum] PERCENT of total deposits in pools resulting
 from regular bets, less twenty-one [per centum] PERCENT of total  depos-
 its  of  pools  resulting  from  multiple  bets,  less twenty-seven [per
 centum] PERCENT of total deposits of pools resulting from  exotic  bets,
 less  thirty-six [per centum] PERCENT of total deposits of pools result-
 ing from super exotic bets plus the breaks as defined in  section  three
 hundred  eighteen  of  this  chapter except that the retention rates and
 breaks shall be as prescribed by another state or country if such wagers
 are combined with those in  the  other  state  or  country  pursuant  to
 section nine hundred five of this chapter.
   d.  For wagers placed at an off-track betting facility in that portion
 of the western  region  located  with  a  thoroughbred  special  betting
 district,  but  not  included in a harness special betting district, one
 and one-half [per centum] PERCENT of such wagers shall be  paid  to  the
 racing association located in such district provided such association is
 neither  accepting  wagers  nor simulcasting out-of-state harness races.
 Any payments required by this subdivision shall reduce payments required
 to be made to the regional licensed harness track under  the  provisions
 of subparagraph three of paragraph b of this subdivision.
   e.  Any  thoroughbred racing corporation or harness racing association
 or corporation or off-track betting corporation authorized  pursuant  to
 this  section  shall pay to the [gaming] commission as a regulatory fee,
 which fee is hereby levied, six-tenths of one percent  of  all  wagering
 pools.
   c.  upon  application  of  any  facility  licensed  in accordance with
 sections one thousand seven and one thousand nine of this  article,  the
 [board]  COMMISSION shall authorize the imposition of a sum equal to the
 amount authorized by section five hundred  thirty-two  of  this  chapter
 [which]  THAT  shall  apply to wagers placed at such facility. Such sums
 received by facilities licensed in accordance with section one  thousand
 nine  of  this  article shall be retained for the general purpose of the

 S. 7639                            122
 
 corporation. Such sums received by such facilities licensed  in  accord-
 ance  with  section one thousand seven of this article shall be distrib-
 uted as follows:
   (1)  fifty  percent  shall  be  used exclusively for purses awarded in
 races conducted by such licensed facility; and
   (2) fifty percent shall be retained by such licensed facility for  its
 general purposes.
   §  147.  The  opening  paragraph,  subparagraphs 1 and 2, item (ii) of
 clause (E) of subparagraph 5 and item (ii) of clause (F) of subparagraph
 6 of paragraph b, subparagraph 1 of paragraph c and  the  opening  para-
 graph  of subparagraph 2 of paragraph d of subdivision 1 of section 1016
 of the racing, pari-mutuel wagering and  breeding  law,  as  amended  by
 chapter 18 of the laws of 2008 and clause (B) of subparagraph 2 of para-
 graph  b of subdivision 1 as amended by section 11 of part BB of chapter
 60 of the laws of 2016, are amended to read as follows:
   Any facility authorized to accept wagers on out-of-state tracks  shall
 distribute  all sums deposited in any pari-mutuel pool to the holders of
 winning tickets therein, provided such tickets are presented for payment
 prior to April first of the year following the year  of  their  purchase
 less  eighteen  [per  centum]  PERCENT  of  the  total deposits in pools
 resulting from regular bets, less twenty-one [per centum] PERCENT of the
 total deposits in pools resulting from multiple  bets,  less  twenty-six
 [per centum] PERCENT of the total deposits in pools resulting from exot-
 ic  bets, and less twenty-seven [per centum] PERCENT of the total depos-
 its in pools resulting from  super  exotic  bets,  plus  the  breaks  as
 defined  in  section  two hundred thirty-six of this chapter except that
 the retention rates and breaks shall be as prescribed by  another  state
 or  country if such wagers are combined with those in the other state or
 country pursuant to section nine hundred five of this chapter.
   (1) Of the sums so retained, the applicable  tax  rates  shall  be  as
 governed  by  clauses (A) and (B) of subparagraphs three, four, five and
 six of this paragraph plus fifty percent of the breaks; provided, howev-
 er, fifty percent of the breaks accruing from off-track  betting  corpo-
 rations  licensed  in accordance with section one thousand eight of this
 article and from simulcast theaters licensed in accordance with  section
 one  thousand nine of this article, shall be paid to the agriculture and
 New York State horse breeding and development fund and to the  thorough-
 bred  breeding  and  development  fund, the total of such payments to be
 apportioned fifty [per centum] PERCENT to each such fund.
   (2) (A) Of the sums so retained, one-half of one [per centum]  PERCENT
 of  all wagers shall be paid to the New York State thoroughbred breeding
 and development fund, except that of the sums so retained on such wagers
 at licensed harness tracks, one-half of one [per centum]  PERCENT  shall
 be paid to the agricultural and New York State horse breeding and devel-
 opment fund.
   (B)  Any  harness racing or association or corporation or thoroughbred
 racing corporation authorized pursuant to this section shall pay to  the
 [gaming]  commission  as  a  regulatory fee, which fee is hereby levied,
 six-tenths of one percent of the total daily pari-mutuel pools.
   (ii) Such licensed regional harness track shall receive one  and  one-
 half [per centum] PERCENT on total regional handle on races conducted at
 out-of-state or out-of-country thoroughbred tracks.
   (ii)  Such  licensed regional harness track shall receive one and one-
 half [per centum] PERCENT on total regional handle on races conducted at
 out-of-state or out-of-country thoroughbred tracks.

 S. 7639                            123
 
   (1) All wagers authorized by this section shall be combined so  as  to
 produce  common  pari-mutuel betting pools, which shall be combined with
 the sending track, for the calculation of odds and the determination  of
 payouts  from  such  pools,  which payouts shall be made pursuant to the
 rules  of  the [board] COMMISSION.   Every location authorized to accept
 wagers or display simulcasting pursuant to this section shall be subject
 to all appropriate provisions of this chapter.
   upon application of any facility licensed in accordance with  sections
 one  thousand  seven  and one thousand nine of this article, the [board]
 COMMISSION shall authorize the imposition of a sum equal to  the  amount
 authorized  by  section  five  hundred thirty-two of this chapter [which
 shall apply] THAT APPLIES to wagers placed at such facility.  Such  sums
 received  by facilities licensed in accordance with section one thousand
 nine of this article shall be retained for the general  purpose  of  the
 corporation.   Such sums received by such facilities licensed in accord-
 ance with section one thousand seven of this article shall  be  distrib-
 uted as follows:
   §  148.  Paragraph  a  of subdivision 2 of section 1017 of the racing,
 pari-mutuel wagering and breeding law, as amended by chapter 174 of  the
 laws of 2013, is amended to read as follows:
   a.  Maintenance  of  effort. Any off-track betting corporation [which]
 THAT engages in accepting wagers on the simulcasts of thoroughbred races
 from out-of-state or out-of-country as permitted under  subdivision  one
 of  this  section  shall  submit  to the commission, for its approval, a
 schedule of payments to be made in any year  or  portion  thereof,  that
 such  off-track corporation engages in nighttime thoroughbred simulcast-
 ing. In order to be approved by the  commission,  the  payment  schedule
 shall  be  identical  to  the  actual payments and distributions of such
 payments to tracks and purses made by such off-track corporation  pursu-
 ant  to  the  provisions of section one thousand fifteen of this article
 during the year two thousand two, as derived from  out-of-state  harness
 races  displayed  after  6:00  P.M.  If approved by the commission, such
 scheduled payments shall be made from revenues derived from  any  simul-
 casting  conducted  pursuant  to  this  section and section one thousand
 fifteen of this article.
   § 149. Subdivision 2 of section 1018 of the racing, pari-mutuel wager-
 ing and breeding law, as amended by chapter 18 of the laws of  2008  and
 paragraph  b  of  subdivision  2  as amended by section 12 of part BB of
 chapter 60 of the laws of 2016, is amended to read as follows:
   2. a. Of the sums so retained, one-half of one [per centum] PERCENT of
 all wagers shall be paid to the New York state thoroughbred breeding and
 development fund, except that of the sums so retained on such wagers  at
 licensed  harness  tracks, one-half of one [per centum] PERCENT shall be
 paid to the agriculture and New York state horse breeding  and  develop-
 ment fund.
   b.  Any  thoroughbred racing corporation or harness racing association
 or corporation  or  off-track  betting  corporation  shall  pay  to  the
 [gaming]  commission  as  a  regulatory fee, which fee is hereby levied,
 six-tenths of one percent of all wagering pools.
   § 150. Subdivision c of section 1101 of the racing, pari-mutuel wager-
 ing and breeding law, as added by chapter 323 of the laws  of  2001,  is
 amended to read as follows:
   c. to authorize the [New York state racing and wagering board] COMMIS-
 SION to participate in this compact;

 S. 7639                            124
 
   § 151. Subdivision b of section 1106 of the racing, pari-mutuel wager-
 ing  and  breeding  law, as added by chapter 323 of the laws of 2001, is
 amended to read as follows:
   b.  The  [chairman]  CHAIR  of  the  [racing and wagering board] STATE
 GAMING COMMISSION shall designate the official, and his  or  her  alter-
 nate, to represent New York state in the compact committee.
   §  152.  Paragraphs  1  and  3 of subdivision c of section 1111 of the
 racing, pari-mutuel wagering and breeding law, as added by  chapter  323
 of the laws of 2001, are amended to read as follows:
   (1) to charge a fee for the use of a compact license within that party
 state, for which the [racing and wagering board] COMMISSION shall charge
 the  fee,  for  each license category, set forth in sections two hundred
 thirteen and three hundred nine of this chapter;
   (3) to apply its own standards  for  licensure  or  renewal  of  state
 applicants  who  do  not  meet the licensure requirements of the compact
 committee, or who are within a category of participants in  live  racing
 [which] THAT the compact committee does not license; and
   §  153.  Section 1112 of the racing, pari-mutuel wagering and breeding
 law, as added by chapter 323 of the laws of 2001, is amended to read  as
 follows:
   § 1112. Fingerprints  and  criminal history. In order to determine the
 suitability to be licensed of an applicant or licensee, the [racing  and
 wagering  board]  COMMISSION shall require a full set of fingerprints be
 furnished to the [board] COMMISSION  to  enable  a  criminal  background
 investigation  to  be conducted.   For any person who intends to partic-
 ipate in racing in New York state, the [board] COMMISSION  shall  submit
 such  fingerprints to the division of criminal justice services, and the
 division of criminal justice services is authorized to submit such fing-
 erprints to the federal bureau of investigation, in accordance with  the
 rules  or  regulations  promulgated by such entities, to obtain relevant
 criminal history record information, if any, concerning  such  applicant
 or  licensee.    The  [board]  COMMISSION shall require the applicant or
 licensee to pay the cost of the criminal history investigation.
   § 154. The opening paragraph of section 1306 of the racing, pari-mutu-
 el wagering and breeding law, as added by chapter 174  of  the  laws  of
 2013, is amended to read as follows:
   The  New  York  state  [resort]  gaming  facility location board shall
 select, following a competitive process and subject to the  restrictions
 of  this  article, no more than four entities to apply to the commission
 for gaming facility licenses. In exercising  its  authority,  the  board
 shall  have  all  powers  necessary or convenient to fully carry out and
 effectuate its purposes including, but not  limited  to,  the  following
 powers. The board shall:
   § 155. Paragraph (a) of subdivision 1 of section 1330-a of the racing,
 pari-mutuel  wagering  and  breeding law, as added by chapter 174 of the
 laws of 2013, is amended to read as follows:
   (a) In addition to any other registration  or  reporting  required  by
 law,  any  entity  licensed under section sixteen hundred seventeen-a of
 the tax law, or [which] THAT possesses a pari-mutuel wagering license or
 franchise awarded pursuant to article two or three of this chapter  that
 makes  an expenditure of more than one thousand dollars for any written,
 typed, or other printed communication, or  any  internet-based  communi-
 cation,  or  any  television or radio communication, or any automated or
 paid telephone communications, in support or opposition to any  referen-
 dum  authorized  by  the state legislature following second passage of a
 concurrent resolution to amend  the  state  constitution  to  permit  or

 S. 7639                            125

 authorize  casino  gaming  to  a general public audience, shall file any
 reports required pursuant to the election law  simultaneously  with  the
 gaming  commission and shall provide such additional reports as required
 by the [gaming] commission. This requirement shall apply irrespective of
 whether  such  entity  makes such expenditure directly or indirectly via
 one or more persons. The  [gaming]  commission  shall  promulgate  regu-
 lations to implement the requirements of this section.
   §  156.  Paragraph (b) of subdivision 1 of section 1341 of the racing,
 pari-mutuel wagering and breeding law, as added by chapter  174  of  the
 laws of 2013, is amended to read as follows:
   (b)  Agreements between a gaming facility licensee and a junket enter-
 prise or junket representative  licensed,  qualified  or  registered  in
 accordance  with  the  provisions OF this article and the regulations of
 the commission [which] THAT provide for the compensation of  the  junket
 enterprise  or  junket  representative  by  the gaming facility licensee
 based upon the actual gaming activities of a patron procured or referred
 by the junket enterprise or junket representative  shall  be  lawful  if
 filed  with  the  commission  prior to the conduct of any junket that is
 governed by the agreement.
   § 157. Subdivision 2 of section 1345 of the racing, pari-mutuel wager-
 ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
 amended to read as follows:
   2. For the purposes OF this section, any gaming activity in a licensed
 gaming  facility  [which]  THAT results in a prohibited person obtaining
 any money or thing of value from, or being owed any money  or  thing  of
 value  by,  the gaming facility shall be considered, solely for purposes
 of this section, to be a fully executed gambling transaction.
   § 158. Subdivision 6 of section 1346 of the racing, pari-mutuel wager-
 ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
 amended to read as follows:
   6.  If  otherwise  applicable,  any  gaming  facility  entering into a
 contract for a gaming facility [capitol] CAPITAL project shall be deemed
 to be a state agency, and such contract shall be deemed to  be  a  state
 contract,  for  purposes  of  article fifteen-A of the executive law and
 section two hundred twenty-two of the labor law.
   § 159. Subdivision 1 of section 1355 of the racing, pari-mutuel wager-
 ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
 amended to read as follows:
   1.  If  an applicant who possesses a pari-mutuel wagering franchise or
 license awarded pursuant to article two or three of this chapter, or who
 possessed in two thousand thirteen a  franchise  or  a  license  awarded
 pursuant  to article two or three of this chapter or is an [articulated]
 AFFILIATED entity [or] OF such applicant, is issued  a  gaming  facility
 license pursuant to this article, the licensee shall:
   (a) Maintain payments made from video lottery gaming operations to the
 relevant  horsemen  and  breeders organizations at the same dollar level
 realized in two thousand thirteen, to be adjusted annually  pursuant  to
 changes  in  the  consumer  price  index  for  all  urban  consumers, as
 published annually by the United States department of  labor  bureau  of
 labor statistics;
   (b)  All  [racetracks]  RACETRACK  locations awarded a gaming facility
 license shall maintain racing activity and race dates pursuant to  arti-
 cles two and three of this chapter.
   § 160. Subdivision 2 of section 195-q of the general municipal law, as
 added by chapter 309 of the laws of 1996, is amended to read as follows:

 S. 7639                            126
 
   2.  The  [racing  and  wagering  board]  STATE GAMING COMMISSION shall
 submit to the director of the division of the budget an annual plan that
 details the amount of money the [racing and wagering board] STATE GAMING
 COMMISSION  deems  necessary  to  maintain  operations,  compliance  and
 enforcement  of the provisions of this article and the collection of the
 license fee authorized by this section. Contingent upon the approval  of
 the  director  of  the  division of the budget, the [racing and wagering
 board] STATE GAMING COMMISSION shall pay into an account, to be known as
 the bell jar collection account, under the joint custody  of  the  comp-
 troller  and  the  [board]  STATE GAMING COMMISSION, the total amount of
 license fees collected pursuant to this section. With  the  approval  of
 the  director  of  the  division of the budget, monies to be utilized to
 maintain the operations necessary to  enforce  the  provisions  of  this
 article  and  the  collection of the license fee imposed by this section
 shall be paid out of such account on the audit and warrant of the  comp-
 troller  on  vouchers certified or approved by the director of the divi-
 sion of the budget or his OR HER duly designated official. Those  monies
 that  are  not  utilized to maintain operations necessary to enforce the
 provisions of this article and the collection of the license fee author-
 ized by this section shall be paid out of such amount on the  audit  and
 warrant  of  the  state comptroller and shall be credited to the general
 fund.
   § 161. Paragraph (c) of subdivision 6 of section 476  of  the  general
 municipal law, as amended by chapter 190 of the laws of 1997, is amended
 to read as follows:
   (c)  Those  which  shall initiate, perform or foster the provisions of
 services to veterans by encouraging the gathering of such  veterans  and
 shall  enable  or  further the erection or maintenance of facilities for
 use by such veterans which shall be used  primarily  for  charitable  or
 patriotic  purposes,  or  those  purposes which shall be authorized by a
 bona fide organization of veterans, provided however that such  proceeds
 are  disbursed  in  accordance  with  the  rules  and regulations of the
 [racing and wagering board] STATE GAMING COMMISSION.
   § 162. Subdivision 10 of section 854 of the general municipal law,  as
 added by chapter 267 of the laws of 1977, is amended to read as follows:
   (10)  "Horse  racing facility"--shall mean any facility for the use of
 the general public  for  purpose  of  conducting  pari-mutuel  wagering,
 licensed  by the state [racing and wagering board] GAMING COMMISSION, as
 of January first,  nineteen  hundred  seventy-seven,  except  non-profit
 racing  associations, including buildings, structures, machinery, equip-
 ments, facilities and appurtenances thereto,  the  construction,  recon-
 struction,  acquisition  and/or  improvement  of  which  shall have been
 approved by the state [racing and wagering board] GAMING COMMISSION, and
 [which] THAT the agency may  deem  necessary,  useful  or  desirable  in
 connection  with  the  construction,  improvement  or  operation of such
 racing facility.
   § 163. Subdivision 4-a  of  section  100  of  the  alcoholic  beverage
 control  law, as added by chapter 762 of the laws of 1941, is amended to
 read as follows:
   4-a. At race meetings, authorized by the state [racing] GAMING commis-
 sion, notwithstanding any  inconsistent  provision  of  law,  additional
 bars,  counters  or contrivances where alcoholic beverages shall be sold
 at retail for consumption on the premises may be permitted by the liquor
 authority, upon payment to it of a fee equivalent to the amount  of  the
 annual  or  summer  license fee paid by the licensee for each such addi-

 S. 7639                            127
 
 tional bar, counter or contrivance  so  permitted  in  addition  to  the
 amount of the annual or summer license fee paid by the licensee.
   §  164.  Subdivision a of section 20-339 of the administrative code of
 the city of New York is amended to read as follows:
   a. "Control commission" or "commission"  or  "board"  shall  mean  the
 state [racing and wagering board] GAMING COMMISSION.
   §  165.  Subdivision 1 of section 20-435 of the administrative code of
 the city of New York is amended to read as follows:
   1. "Board" shall mean New  York  state  [racing  and  wagering  board]
 GAMING COMMISSION.
   § 166. This act shall take effect immediately; provided, however, that
 the  amendments  to  section 212 of the racing, pari-mutuel wagering and
 breeding law made by section eleven of this act and section 1013 of  the
 racing,  pari-mutuel  wagering  and  breeding  law  made  by section one
 hundred forty-four of this act shall  not  affect  the  repeal  of  such
 sections  and  shall be deemed repealed therewith; and provided, further
 that the amendments to paragraph b of subdivision 3 of  section  527  of
 the  racing,  pari-mutuel  wagering and breeding law made by section one
 hundred five of this act shall be subject to the expiration  and  rever-
 sion of such paragraph pursuant to section 32 of chapter 281 of the laws
 of  1994,  as amended, when upon such date the provisions of section one
 hundred five-a of this act shall take effect.