Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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---|---|
Oct 07, 2020 |
signed chap.243 |
Sep 25, 2020 |
delivered to governor |
Jul 21, 2020 |
returned to senate passed assembly ordered to third reading rules cal.192 substituted for a9749 |
Jul 21, 2020 |
substituted by s7639 |
Jul 20, 2020 |
ordered to third reading rules cal.192 rules report cal.192 reported |
Jul 15, 2020 |
reported referred to rules |
Feb 10, 2020 |
referred to racing and wagering |
Assembly Bill A9749
Signed By Governor2019-2020 Legislative Session
Relates to implementing technical changes regarding the racing and wagering board
download bill text pdfSponsored By
PRETLOW
Archive: Last Bill Status Via S7639 - Signed by Governor
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Feb 25, 2020
aye (59)- Addabbo Jr.
- Akshar
- Amedore
- Bailey
- Benjamin
- Biaggi
- Borrello
- Breslin
- Brooks
- Carlucci
- Comrie
- Felder
- Flanagan
- Funke
- Gallivan
- Gaughran
- Gianaris
- Gounardes
- Griffo
- Harckham
- Helming
- Hoylman-Sigal
- Jackson
- Jacobs
- Jordan
- Kaminsky
- Kaplan
- Kavanagh
- Kennedy
- Krueger
- Lanza
- Little
- Liu
- Martinez
- May
- Mayer
- Metzger
- Montgomery
- Myrie
- O'Mara
- Ortt
- Persaud
- Ramos
- Ranzenhofer
- Ritchie
- Rivera
- Robach
- Salazar
- Sanders Jr.
- Savino
- Sepúlveda
- Serino
- Serrano
- Seward
- Skoufis
- Stavisky
- Stewart-Cousins
- Tedisco
- Thomas
nay (1)
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2019-A9749 (ACTIVE) - Details
- See Senate Version of this Bill:
- S7639
- Law Section:
- Racing, Pari-Mutuel Wagering and Breeding Law
- Laws Affected:
- Amd RWB L, generally; amd §§195-q, 476 & 854, Gen Muni L; amd §100, ABC L; amd §§20-339 & 20-435, NYC Ad Cd
2019-A9749 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 9749 I N A S S E M B L Y February 10, 2020 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Racing and Wagering 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 chapter 60 of the laws of 2012. The legislature does not intend for EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD14398-03-0 A. 9749 2 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 hundred three of this article until [it] SUCH CORPORATION shall have A. 9749 3 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 for live thoroughbred racing dates at thoroughbred racing facilities A. 9749 4 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: § 211. Fair association, when entitled to privileges. Any state, coun- ty or other fair association shall be entitled to the privileges A. 9749 5 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 necessary and actual expenses incurred in the performance of his or her duties pursuant to this section. A. 9749 6 (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: § 217. Revocation of licenses. If any corporation to which a license shall be granted shall fail or refuse to comply with the provisions of A. 9749 7 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 this article, the [state racing and wagering board] COMMISSION shall license owners, which term shall be deemed to include [part owners] A. 9749 8 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 grant a license. If the [board shall find] COMMISSION FINDS that the A. 9749 9 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 fund". To the extent that the provisions of the not-for-profit corpo- A. 9749 10 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 election year and shall be returned to the election administrator for A. 9749 11 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- teen-a of the workers' compensation law, the New York Jockey Injury A. 9749 12 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. A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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. A. 9749 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 A. 9749 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, A. 9749 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 A. 9749 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 A. 9749 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: A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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- A. 9749 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. A. 9749 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- A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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; A. 9749 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. A. 9749 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. A. 9749 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 A. 9749 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- A. 9749 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; A. 9749 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 A. 9749 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 A. 9749 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: A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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, A. 9749 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] A. 9749 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] A. 9749 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- A. 9749 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- A. 9749 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. A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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] A. 9749 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. A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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- A. 9749 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] A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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 A. 9749 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; A. 9749 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 A. 9749 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, A. 9749 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- A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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- A. 9749 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 A. 9749 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; A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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: A. 9749 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: A. 9749 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 A. 9749 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, A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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: A. 9749 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. A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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) A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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- A. 9749 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. A. 9749 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 A. 9749 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 A. 9749 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. A. 9749 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; A. 9749 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 A. 9749 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: A. 9749 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- A. 9749 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.
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