S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1605
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
   relation to thoroughbred equine drug testing standards
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new article 11-A to read as follows:
                               ARTICLE XI-A
                     INTERSTATE COMPACT ON ANTI-DOPING
                        AND DRUG TESTING STANDARDS
 SECTION 1113. PURPOSES.
         1114. DEFINITIONS.
         1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION.
         1116. OPERATION OF COMPACT COMMISSION.
         1117. GENERAL POWERS AND DUTIES.
         1118. OTHER POWERS AND DUTIES.
         1119. COMPACT RULE MAKING.
         1120. STATUS AND RELATIONSHIP TO MEMBER STATES.
         1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES.
         1122. ENFORCEMENT OF COMPACT.
         1123. LEGAL ACTIONS AGAINST COMPACT.
         1124. RESTRICTIONS ON AUTHORITY.
         1125. CONSTRUCTION, SAVINGS AND SEVERABILITY.
   § 1113. PURPOSES. THE PURPOSES OF THE COMPACT ARE:
   A.  TO ENABLE MEMBER STATES TO ACT JOINTLY AND COOPERATIVELY TO CREATE
 MORE UNIFORM, EFFECTIVE, AND EFFICIENT BREED SPECIFIC  RULES  AND  REGU-
 LATIONS  RELATING TO THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDI-
 CATIONS FOR THE HEALTH AND WELFARE OF THE HORSE  AND  THE  INTEGRITY  OF
 THOROUGHBRED  RACING, AND TESTING FOR SUCH SUBSTANCES, IN OR AFFECTING A
 MEMBER STATE; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04898-01-3
              

 A. 1605                             2
 
   B. TO AUTHORIZE THE NEW YORK STATE GAMING COMMISSION TO PARTICIPATE IN
 THE COMPACT.
   §  1114.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   A. "COMPACT COMMISSION" MEANS THE ORGANIZATION OF DELEGATES  FROM  THE
 MEMBER  STATES  THAT IS AUTHORIZED AND EMPOWERED BY THE COMPACT TO CARRY
 OUT THE PURPOSES OF THE COMPACT;
   B. "COMPACT RULE" MEANS A RULE OR REGULATION ADOPTED BY A MEMBER STATE
 REGULATING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR
 THE HEALTH AND WELFARE OF THE THOROUGHBRED HORSE AND  THE  INTEGRITY  OF
 THOROUGHBRED RACING, AND TESTING FOR SUCH SUBSTANCES, IN LIVE PARI-MUTU-
 EL THOROUGHBRED HORSE RACING THAT OCCURS IN OR AFFECTS SUCH STATES;
   C. "DELEGATE" MEANS THE CHAIRPERSON OF THE MEMBER STATE RACING COMMIS-
 SION  OR  SIMILAR REGULATORY BODY IN A STATE, OR SUCH PERSON'S DESIGNEE,
 WHO REPRESENTS THE MEMBER STATE, AS  A  VOTING  MEMBER  OF  THE  COMPACT
 COMMISSION AND ANYONE WHO IS SERVING AS SUCH PERSON'S ALTERNATE;
   D.  "THOROUGHBRED  EQUINE  DRUG  RULE" MEANS A RULE OR REGULATION THAT
 RELATES TO THE ADMINISTRATION OF DRUGS, MEDICATIONS, OR OTHER SUBSTANCES
 TO A THOROUGHBRED HORSE THAT MAY PARTICIPATE IN LIVE THOROUGHBRED  HORSE
 RACING  WITH  PARI-MUTUEL  WAGERING  INCLUDING,  BUT NOT LIMITED TO, THE
 REGULATION OF THE PERMISSIBLE USE  OF  SUCH  SUBSTANCES  TO  ENSURE  THE
 INTEGRITY  OF  THOROUGHBRED RACING AND THE HEALTH, SAFETY AND WELFARE OF
 THOROUGHBRED RACE HORSES, APPROPRIATE SANCTIONS FOR RULE VIOLATIONS, AND
 QUALITY LABORATORY TESTING PROGRAMS TO DETECT  SUCH  SUBSTANCES  IN  THE
 BODILY SYSTEM OF A THOROUGHBRED RACE HORSE;
   E. "LIVE RACING" MEANS LIVE THOROUGHBRED HORSE RACING WITH PARI-MUTUEL
 WAGERING;
   F. "MEMBER STATE" MEANS EACH STATE THAT HAS ENACTED THE COMPACT;
   G.  "NATIONAL INDUSTRY STAKEHOLDER" MEANS A NON-GOVERNMENTAL ORGANIZA-
 TION THAT FROM A NATIONAL PERSPECTIVE SIGNIFICANTLY  REPRESENTS  ONE  OR
 MORE CATEGORIES OF PARTICIPANTS IN LIVE THOROUGHBRED RACING AND PARI-MU-
 TUEL WAGERING;
   H.  "PARTICIPANTS  IN  LIVE THOROUGHBRED RACING" MEANS ALL PERSONS WHO
 PARTICIPATE IN, OPERATE, PROVIDE INDUSTRY SERVICES FOR, OR ARE  INVOLVED
 WITH LIVE THOROUGHBRED RACING WITH PARI-MUTUEL WAGERING;
   I.  "STATE" MEANS EACH OF THE SEVERAL STATES OF THE UNITED STATES, THE
 DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AND EACH TERRITO-
 RY OR POSSESSION OF THE UNITED STATES; AND
   J. "STATE RACING COMMISSION" MEANS THE STATE RACING COMMISSION, OR ITS
 EQUIVALENT, IN EACH MEMBER STATE. WHERE A MEMBER  STATE  HAS  MORE  THAN
 ONE, IT SHALL MEAN ALL SUCH RACING COMMISSIONS, OR THEIR EQUIVALENTS.
   §  1115.  COMPOSITION  AND  MEETINGS OF COMPACT COMMISSION. THE MEMBER
 STATES SHALL CREATE AND PARTICIPATE IN A COMPACT COMMISSION AS FOLLOWS:
   A. THE COMPACT SHALL COME INTO FORCE WHEN ENACTED BY ANY TWO  ELIGIBLE
 STATES,  AND  SHALL  THEREAFTER  BECOME EFFECTIVE AS TO ANY OTHER MEMBER
 STATE THAT ENACTS THE COMPACT. ANY STATE THAT HAS ADOPTED OR  AUTHORIZED
 PARI-MUTUEL WAGERING OR LIVE THOROUGHBRED HORSE RACING SHALL BE ELIGIBLE
 TO BECOME A PARTY TO THE COMPACT. A COMPACT RULE SHALL NOT BECOME EFFEC-
 TIVE IN A NEW MEMBER STATE BASED MERELY UPON IT ENTERING THE COMPACT.
   B. THE MEMBER STATES HEREBY CREATE THE INTERSTATE ANTI-DOPING AND DRUG
 TESTING STANDARDS COMPACT COMMISSION, A BODY CORPORATE AND AN INTERSTATE
 GOVERNMENTAL  ENTITY OF THE MEMBER STATES, TO COORDINATE THE RULE MAKING
 ACTIONS OF EACH MEMBER STATE RACING COMMISSION THROUGH A COMPACT COMMIS-
 SION.
   C. THE COMPACT COMMISSION SHALL CONSIST OF ONE  DELEGATE,  THE  CHAIR-
 PERSON  OF  THE  STATE RACING COMMISSION OR SUCH PERSON'S DESIGNEE, FROM
 A. 1605                             3
 
 EACH MEMBER STATE. WHEN A DELEGATE IS NOT PRESENT TO PERFORM ANY DUTY IN
 THE COMPACT COMMISSION, A DESIGNATED ALTERNATE MAY SERVE. THE PERSON WHO
 REPRESENTS A MEMBER STATE IN THE  COMPACT  COMMISSION  SHALL  SERVE  AND
 PERFORM SUCH DUTIES WITHOUT COMPENSATION OR REMUNERATION; PROVIDED, THAT
 SUBJECT  TO  THE  AVAILABILITY OF BUDGETED FUNDS, EACH MAY BE REIMBURSED
 FOR ORDINARY AND NECESSARY COSTS AND  EXPENSES.  THE  DESIGNATION  OF  A
 DELEGATE,  INCLUDING  THE  ALTERNATE,  SHALL  BE  EFFECTIVE WHEN WRITTEN
 NOTICE HAS BEEN  PROVIDED  TO  THE  COMPACT  COMMISSION.  THE  DELEGATE,
 INCLUDING  THE  ALTERNATE,  MUST  BE  A  MEMBER OR EMPLOYEE OF THE STATE
 RACING COMMISSION.
   D. THE COMPACT DELEGATE FROM EACH STATE SHALL PARTICIPATE AS AN  AGENT
 OF  THE STATE RACING COMMISSION. EACH DELEGATE SHALL HAVE THE ASSISTANCE
 OF THE STATE RACING COMMISSION IN REGARD  TO  ALL  DECISION  MAKING  AND
 ACTIONS OF THE STATE IN AND THROUGH THE COMPACT COMMISSION.
   E.  EACH  MEMBER STATE, BY ITS DELEGATE, SHALL BE ENTITLED TO ONE VOTE
 IN THE COMPACT COMMISSION. A MAJORITY VOTE OF THE TOTAL NUMBER OF DELEG-
 ATES SHALL BE REQUIRED TO PROPOSE A COMPACT RULE, RECEIVE AND DISTRIBUTE
 ANY FUNDS, AND TO ADOPT, AMEND, OR RESCIND THE BY-LAWS. A  COMPACT  RULE
 SHALL  TAKE  EFFECT IN AND FOR EACH MEMBER STATE WHEN ADOPTED BY A SUPER
 MAJORITY VOTE OF EIGHTY PERCENT OF THE TOTAL NUMBER  OF  MEMBER  STATES.
 OTHER COMPACT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF THE DELEGATES WHO
 ARE MEETING.
   F.  MEETINGS  AND  VOTES OF THE COMPACT COMMISSION MAY BE CONDUCTED IN
 PERSON OR BY TELEPHONE OR OTHER ELECTRONIC COMMUNICATION.  MEETINGS  MAY
 BE  CALLED  BY  THE  CHAIRPERSON OF THE COMPACT COMMISSION OR BY ANY TWO
 DELEGATES.  REASONABLE NOTICE OF EACH MEETING SHALL BE PROVIDED  TO  ALL
 DELEGATES SERVING IN THE COMPACT COMMISSION.
   G. NO ACTION MAY BE TAKEN AT A COMPACT COMMISSION MEETING UNLESS THERE
 IS  A QUORUM, WHICH IS EITHER A MAJORITY OF THE DELEGATES IN THE COMPACT
 COMMISSION, OR WHERE APPLICABLE,  ALL  THE  DELEGATES  FROM  ANY  MEMBER
 STATES WHO PROPOSE OR ARE VOTING AFFIRMATIVELY TO ADOPT A COMPACT RULE.
   H.  ONCE  EFFECTIVE,  THE  COMPACT  SHALL CONTINUE IN FORCE AND REMAIN
 BINDING ACCORDING TO ITS TERMS UPON EACH MEMBER STATE; PROVIDED THAT,  A
 MEMBER STATE MAY WITHDRAW FROM THE COMPACT BY REPEALING THE STATUTE THAT
 ENACTED  THE  COMPACT  INTO  LAW. THE RACING COMMISSION OF A WITHDRAWING
 STATE SHALL GIVE WRITTEN NOTICE OF SUCH WITHDRAWAL TO THE COMPACT CHAIR-
 PERSON, WHO SHALL NOTIFY THE MEMBER STATE RACING  COMMISSIONS.  A  WITH-
 DRAWING  STATE  SHALL REMAIN RESPONSIBLE FOR ANY UNFULFILLED OBLIGATIONS
 AND LIABILITIES. THE EFFECTIVE DATE OF WITHDRAWAL FROM THE COMPACT SHALL
 BE THE EFFECTIVE DATE OF THE REPEAL.
   § 1116. OPERATION OF COMPACT COMMISSION.  THE  COMPACT  COMMISSION  IS
 HEREBY  GRANTED,  SO  THAT  IT  MAY  BE AN EFFECTIVE MEANS TO PURSUE AND
 ACHIEVE THE PURPOSES OF EACH MEMBER STATE IN THE COMPACT, THE POWER  AND
 DUTY:
   A.  TO ADOPT, AMEND, AND RESCIND BY-LAWS TO GOVERN ITS CONDUCT, AS MAY
 BE NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF THE COMPACT; TO
 PUBLISH THEM IN A CONVENIENT FORM; AND TO FILE A COPY OF THEM  WITH  THE
 STATE RACING COMMISSION OF EACH MEMBER STATE;
   B. TO ELECT ANNUALLY FROM AMONG THE DELEGATES, INCLUDING ALTERNATES, A
 CHAIRPERSON,  VICE-CHAIRPERSON,  AND  TREASURER  WITH SUCH AUTHORITY AND
 DUTIES AS MAY BE SPECIFIED IN THE BY-LAWS;
   C. TO ESTABLISH AND APPOINT COMMITTEES WHICH IT  DEEMS  NECESSARY  FOR
 THE  CARRYING  OUT OF ITS FUNCTIONS, INCLUDING ADVISORY COMMITTEES WHICH
 SHALL BE COMPRISED OF NATIONAL INDUSTRY STAKEHOLDERS  AND  ORGANIZATIONS
 AND  SUCH  OTHER  PERSONS  AS  MAY  BE DESIGNATED IN ACCORDANCE WITH THE
 A. 1605                             4
 
 BY-LAWS, TO OBTAIN THEIR TIMELY AND MEANINGFUL INPUT  INTO  THE  COMPACT
 RULE MAKING PROCESSES;
   D. TO ESTABLISH AN EXECUTIVE COMMITTEE, WITH MEMBERSHIP ESTABLISHED IN
 THE  BY-LAWS,  WHICH  SHALL OVERSEE THE DAY-TO-DAY ACTIVITIES OF COMPACT
 ADMINISTRATION AND MANAGEMENT BY THE EXECUTIVE DIRECTOR AND STAFF;  HIRE
 AND FIRE AS MAY BE NECESSARY AFTER CONSULTATION WITH THE COMPACT COMMIS-
 SION;  ADMINISTER  AND  ENFORCE COMPLIANCE WITH THE PROVISIONS, BY-LAWS,
 AND RULES OF THE COMPACT; AND PERFORM SUCH OTHER DUTIES AS  THE  BY-LAWS
 MAY ESTABLISH;
   E. TO CREATE, APPOINT, AND ABOLISH ALL THOSE OFFICES, EMPLOYMENTS, AND
 POSITIONS,  INCLUDING  AN  EXECUTIVE  DIRECTOR,  USEFUL  TO  FULFILL ITS
 PURPOSES;
   F. TO DELEGATE DAY-TO-DAY MANAGEMENT AND ADMINISTRATION OF ITS DUTIES,
 AS NEEDED, TO AN EXECUTIVE DIRECTOR AND SUPPORT STAFF; AND
   G. TO ADOPT AN ANNUAL BUDGET SUFFICIENT TO PROVIDE FOR THE PAYMENT  OF
 THE  REASONABLE EXPENSES OF ITS ESTABLISHMENT, ORGANIZATION, AND ONGOING
 ACTIVITIES; PROVIDED, THAT THE BUDGET SHALL BE FUNDED BY ONLY  VOLUNTARY
 CONTRIBUTIONS.
   §  1117. GENERAL POWERS AND DUTIES. TO ALLOW EACH MEMBER STATE, AS AND
 WHEN IT CHOOSES, TO ACHIEVE THE PURPOSE OF THE COMPACT THROUGH JOINT AND
 COOPERATIVE ACTION, THE MEMBER STATES ARE HEREBY GRANTED THE  POWER  AND
 DUTY, BY AND THROUGH THE COMPACT COMMISSION:
   A.  TO  ACT  JOINTLY  AND COOPERATIVELY TO CREATE A MORE EQUITABLE AND
 UNIFORM PARI-MUTUEL THOROUGHBRED RACING AND WAGERING INTERSTATE  REGULA-
 TORY  FRAMEWORK  BY THE ADOPTION OF STANDARDIZED RULES FOR THE PERMITTED
 AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR THE HEALTH, AND  WELFARE
 OF  THE  THOROUGHBRED  HORSE  AND  THE INTEGRITY OF THOROUGHBRED RACING,
 INCLUDING RULES GOVERNING THE USE OF  DRUGS  AND  MEDICATIONS  AND  DRUG
 TESTING; AND
   B.  TO PROPOSE AND ADOPT BREED SPECIFIC COMPACT EQUINE DRUGS AND MEDI-
 CATIONS RULES FOR THE HEALTH, AND WELFARE  OF  THE  THOROUGHBRED  HORSE,
 INCLUDING  RULES GOVERNING THE PERMITTED AND PROHIBITED USE OF DRUGS AND
 MEDICATIONS AND DRUG TESTING, WHICH SHALL HAVE THE FORCE AND  EFFECT  OF
 STATE RULES OR REGULATIONS IN THE MEMBER STATES, TO GOVERN LIVE PARI-MU-
 TUEL THOROUGHBRED HORSE RACING.
   §  1118.  OTHER POWERS AND DUTIES. THE COMPACT COMMISSION MAY EXERCISE
 SUCH INCIDENTAL POWERS AND DUTIES AS MAY BE NECESSARY AND PROPER FOR  IT
 TO  FUNCTION  IN A USEFUL MANNER, INCLUDING BUT NOT LIMITED TO THE POWER
 AND DUTY:
   A. TO ENTER INTO CONTRACTS AND AGREEMENTS WITH  GOVERNMENTAL  AGENCIES
 AND  OTHER  PERSONS, INCLUDING OFFICERS AND EMPLOYEES OF A MEMBER STATE,
 TO PROVIDE PERSONAL SERVICES FOR ITS ACTIVITIES AND SUCH OTHER  SERVICES
 AS MAY BE NECESSARY;
   B.  TO BORROW, ACCEPT, AND CONTRACT FOR THE SERVICES OF PERSONNEL FROM
 ANY STATE, FEDERAL, OR OTHER GOVERNMENTAL  AGENCY,  OR  FROM  ANY  OTHER
 PERSON OR ENTITY;
   C.  TO  RECEIVE  INFORMATION  FROM  AND TO PROVIDE INFORMATION TO EACH
 MEMBER STATE RACING COMMISSION, INCLUDING ITS  OFFICERS  AND  STAFF,  ON
 SUCH TERMS AND CONDITIONS AS MAY BE ESTABLISHED IN THE BY-LAWS;
   D.  TO  ACQUIRE, HOLD, AND DISPOSE OF ANY REAL OR PERSONAL PROPERTY BY
 GIFT, GRANT, PURCHASE, LEASE, LICENSE, AND SIMILAR MEANS AND TO  RECEIVE
 ADDITIONAL FUNDS THROUGH GIFTS, GRANTS, AND APPROPRIATIONS;
   E.  WHEN  AUTHORIZED BY A COMPACT RULE, TO CONDUCT HEARINGS AND RENDER
 REPORTS AND ADVISORY DECISIONS AND ORDERS; AND
 A. 1605                             5
 
   F. TO ESTABLISH IN THE BY-LAWS THE REQUIREMENTS  THAT  SHALL  DESCRIBE
 AND  GOVERN ITS DUTIES TO CONDUCT OPEN OR PUBLIC MEETINGS AND TO PROVIDE
 PUBLIC ACCESS TO COMPACT RECORDS AND INFORMATION.
   §  1119.  COMPACT  RULE  MAKING.  IN  THE  EXERCISE OF ITS RULE MAKING
 AUTHORITY, THE COMPACT COMMISSION SHALL:
   A. ENGAGE IN FORMAL RULE MAKING PURSUANT TO A  PROCESS  THAT  SUBSTAN-
 TIALLY  CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE ACT OF 1981
 AS AMENDED, AS MAY BE APPROPRIATE TO THE ACTIONS AND OPERATIONS  OF  THE
 COMPACT COMMISSION;
   B.  GATHER INFORMATION AND ENGAGE IN DISCUSSIONS WITH ADVISORY COMMIT-
 TEES, NATIONAL INDUSTRY STAKEHOLDERS, AND OTHERS, INCLUDING AN  OPPORTU-
 NITY  FOR  INDUSTRY ORGANIZATIONS TO SUBMIT INPUT TO MEMBER STATE RACING
 COMMISSIONS ON THE STATE LEVEL, TO FOSTER, PROMOTE AND CONDUCT A  COLLA-
 BORATIVE  APPROACH  IN  THE DESIGN AND ADVANCEMENT OF COMPACT RULES IN A
 MANNER THAT SERVES THE BEST INTERESTS  OF  THOROUGHBRED  RACING  AND  AS
 ESTABLISHED IN THE BY-LAWS;
   C.  DIRECT  THE  PUBLICATION IN EACH MEMBER STATE OF EACH THOROUGHBRED
 EQUINE DRUG RULE PROPOSED BY THE COMPACT COMMISSION, CONDUCT A REVIEW OF
 PUBLIC COMMENTS RECEIVED BY EACH MEMBER STATE RACING COMMISSION AND  THE
 COMPACT  COMMISSION  IN  RESPONSE  TO THE PUBLICATION OF ITS RULE MAKING
 PROPOSALS, CONSULT WITH NATIONAL INDUSTRY STAKEHOLDERS AND  PARTICIPANTS
 IN  LIVE  THOROUGHBRED  RACING  WITH  REGARD  TO  SUCH  PROCESS  AND ANY
 REVISIONS TO THE COMPACT RULE PROPOSAL, AND MEET UPON THE COMPLETION  OF
 THE  PUBLIC  COMMENT  PERIOD  TO  CONDUCT  A VOTE ON THE ADOPTION OF THE
 PROPOSED COMPACT RULE AS A STATE RULE IN THE MEMBER STATES; AND
   D. HAVE A STANDING COMMITTEE  THAT  REVIEWS  AT  LEAST  QUARTERLY  THE
 PARTICIPATION IN AND VALUE OF COMPACT RULES AND, WHEN IT DETERMINES THAT
 A  REVISION  IS  APPROPRIATE  OR  WHEN REQUESTED TO BY ANY MEMBER STATE,
 SUBMITS A REVISING PROPOSED COMPACT RULE. TO THE EXTENT A REVISION WOULD
 ONLY ADD OR REMOVE A MEMBER STATE OR STATES FROM WHERE  A  COMPACT  RULE
 HAS BEEN ADOPTED, THE VOTE REQUIRED BY THIS SECTION SHALL BE REQUIRED OF
 ONLY SUCH STATE OR STATES.  THE STANDING COMMITTEE SHALL GATHER INFORMA-
 TION  AND ENGAGE IN DISCUSSIONS WITH NATIONAL INDUSTRY STAKEHOLDERS, WHO
 MAY ALSO DIRECTLY RECOMMEND A COMPACT RULE PROPOSAL OR REVISION  TO  THE
 COMPACT COMMITTEE.
   §  1120.  STATUS  AND  RELATIONSHIP TO MEMBER STATES.   A. THE COMPACT
 COMMISSION, AS AN INTERSTATE GOVERNMENTAL ENTITY, SHALL BE  EXEMPT  FROM
 ALL TAXATION IN AND BY THE MEMBER STATES.
   B.  THE  COMPACT  COMMISSION SHALL NOT PLEDGE THE CREDIT OF ANY MEMBER
 STATE EXCEPT BY AND WITH THE APPROPRIATE LEGAL AUTHORITY OF THAT STATE.
   C. EACH MEMBER STATE SHALL REIMBURSE OR OTHERWISE PAY THE EXPENSES  OF
 ITS DELEGATE, INCLUDING ANY ALTERNATE, IN THE COMPACT COMMISSION.
   D. NO MEMBER STATE, EXCEPT AS PROVIDED IN SECTION ELEVEN HUNDRED TWEN-
 TY-THREE  OF  THIS  ARTICLE, SHALL BE HELD LIABLE FOR THE DEBTS OR OTHER
 FINANCIAL OBLIGATIONS INCURRED BY THE COMPACT COMMISSION.
   E. NO MEMBER STATE SHALL HAVE, WHILE IT PARTICIPATES  IN  THE  COMPACT
 COMMISSION,  ANY CLAIM TO OR OWNERSHIP OF ANY PROPERTY HELD BY OR VESTED
 IN THE COMPACT COMMISSION OR TO ANY COMPACT COMMISSION FUNDS HELD PURSU-
 ANT TO THE COMPACT EXCEPT FOR STATE LICENSE  OR  OTHER  FEES  OR  MONEYS
 COLLECTED BY THE COMPACT COMMISSION AS ITS AGENT.
   F. THE COMPACT DISSOLVES UPON THE DATE OF THE WITHDRAWAL OF THE MEMBER
 STATE  THAT REDUCES MEMBERSHIP IN THE COMPACT TO ONE STATE. UPON DISSOL-
 UTION, THE COMPACT BECOMES NULL AND VOID AND  SHALL  BE  OF  NO  FURTHER
 FORCE OR EFFECT, ALTHOUGH THOROUGHBRED EQUINE DRUG RULES ADOPTED THROUGH
 THE  COMPACT  SHALL  REMAIN  STATE  RULES  IN EACH MEMBER STATE THAT HAD
 ADOPTED THEM, AND THE BUSINESS AND  AFFAIRS  OF  THE  COMPACT  SHALL  BE
 A. 1605                             6
 
 CONCLUDED  AND  ANY  SURPLUS  FUNDS  SHALL  BE DISTRIBUTED TO THE FORMER
 MEMBER STATES IN ACCORDANCE WITH THE BY-LAWS.
   §  1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES.  A. EACH MEMBER
 STATE IN THE COMPACT SHALL ACCEPT THE DECISIONS, DULY APPLICABLE TO  IT,
 OF THE COMPACT COMMISSION IN REGARD TO COMPACT RULES AND RULE MAKING.
   B.  THE COMPACT SHALL NOT BE CONSTRUED TO DIMINISH OR LIMIT THE POWERS
 AND RESPONSIBILITIES OF THE MEMBER STATE RACING  COMMISSION  OR  SIMILAR
 REGULATORY  BODY,  OR  TO INVALIDATE ANY ACTION IT HAS PREVIOUSLY TAKEN,
 EXCEPT TO THE EXTENT IT HAS, BY  ITS  COMPACT  DELEGATE,  EXPRESSED  ITS
 CONSENT  TO  A  SPECIFIC RULE OR OTHER ACTION OF THE COMPACT COMMISSION.
 THE COMPACT DELEGATE FROM EACH STATE SHALL SERVE AS  THE  AGENT  OF  THE
 STATE  RACING  COMMISSION  AND  SHALL  POSSESS SUBSTANTIAL KNOWLEDGE AND
 EXPERIENCE AS A REGULATOR  OR  PARTICIPANT  IN  THE  THOROUGHBRED  HORSE
 RACING INDUSTRY.
   §  1122. ENFORCEMENT OF COMPACT.  A. THE COMPACT COMMISSION SHALL HAVE
 STANDING TO INTERVENE IN ANY LEGAL ACTION THAT PERTAINS TO  THE  SUBJECT
 MATTER OF THE COMPACT AND MIGHT AFFECT ITS POWERS, DUTIES, OR ACTIONS.
   B.  THE  COURTS  AND  EXECUTIVE IN EACH MEMBER STATE SHALL ENFORCE THE
 COMPACT AND TAKE ALL ACTIONS NECESSARY AND APPROPRIATE TO EFFECTUATE ITS
 PURPOSES AND INTENT. COMPACT PROVISIONS, BY-LAWS,  AND  RULES  SHALL  BE
 RECEIVED  BY  ALL JUDGES, DEPARTMENTS, AGENCIES, BODIES, AND OFFICERS OF
 EACH MEMBER STATE AND ITS POLITICAL SUBDIVISIONS AS EVIDENCE OF THEM.
   § 1123. LEGAL ACTIONS AGAINST COMPACT.  A. ANY PERSON MAY  COMMENCE  A
 CLAIM,  ACTION,  OR  PROCEEDING  AGAINST THE COMPACT COMMISSION IN STATE
 COURT FOR DAMAGES. THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF  THE
 SAME  LIMITS  OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY
 THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR  NON-COMPACT  MATTERS
 OF  THE  STATE  RACING  COMMISSION  IN  THE  STATE. ALL LEGAL RIGHTS AND
 DEFENSES THAT ARISE FROM THE COMPACT SHALL  ALSO  BE  AVAILABLE  TO  THE
 COMPACT COMMISSION.
   B.  A  COMPACT  DELEGATE,  ALTERNATE, OR OTHER MEMBER OR EMPLOYEE OF A
 STATE RACING COMMISSION WHO UNDERTAKES COMPACT ACTIVITIES OR DUTIES DOES
 SO IN THE COURSE OF BUSINESS OF THEIR STATE RACING COMMISSION, AND SHALL
 HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY,  DEFENSES,  RIGHTS  TO
 INDEMNITY  AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES
 FOR NON-COMPACT MATTERS OF STATE EMPLOYEES IN THEIR STATE. THE EXECUTIVE
 DIRECTOR AND OTHER EMPLOYEES OF THE COMPACT COMMISSION  SHALL  HAVE  THE
 BENEFIT  OF  THESE  SAME LEGAL RIGHTS AND DEFENSES OF STATE EMPLOYEES IN
 THE MEMBER STATE IN WHICH THEY ARE PRIMARILY EMPLOYED. ALL LEGAL  RIGHTS
 AND  DEFENSES  THAT  ARISE  FROM  THE COMPACT SHALL ALSO BE AVAILABLE TO
 THEM.
   C. EACH MEMBER STATE SHALL BE  LIABLE  FOR  AND  PAY  JUDGMENTS  FILED
 AGAINST  THE  COMPACT  COMMISSION  TO  THE EXTENT RELATED TO ITS PARTIC-
 IPATION IN THE COMPACT. WHERE LIABILITY ARISES  FROM  ACTION  UNDERTAKEN
 JOINTLY WITH OTHER MEMBER STATES, THE LIABILITY SHALL BE DIVIDED EQUALLY
 AMONG THE STATES FOR WHOM THE APPLICABLE ACTION OR OMISSION OF THE EXEC-
 UTIVE  DIRECTOR  OR OTHER EMPLOYEES OF THE COMPACT COMMISSION WAS UNDER-
 TAKEN; AND NO MEMBER STATE SHALL CONTRIBUTE TO OR PAY, OR BE JOINTLY  OR
 SEVERALLY  OR  OTHERWISE LIABLE FOR, ANY PART OF ANY JUDGMENT BEYOND ITS
 SHARE AS DETERMINED IN ACCORDANCE WITH THIS SECTION.
   § 1124. RESTRICTIONS ON AUTHORITY.  A. NEW YORK SUBSTANTIVE STATE LAWS
 APPLICABLE TO PARI-MUTUEL THOROUGHBRED HORSE RACING AND  WAGERING  SHALL
 REMAIN IN FULL FORCE AND EFFECT.
   B.  COMPACT RULES SHALL NOT PRECLUDE SUBSEQUENT RULEMAKING IN NEW YORK
 STATE ON THE SAME OR RELATED MATTER AS SET FORTH IN SECTION NINE HUNDRED
 A. 1605                             7

 TWO OF THIS CHAPTER. THE MOST RECENTLY ADOPTED RULE SHALL THEREBY BECOME
 THE GOVERNING LAW.
   C.  NEW  YORK  STATE SHALL NOT PARTICIPATE IN OR APPLY THIS INTERSTATE
 COMPACT TO ANY ASPECT OF STANDARDBRED RACING.
   § 1125. CONSTRUCTION, SAVINGS AND SEVERABILITY.  A. THE COMPACT  SHALL
 BE  LIBERALLY CONSTRUED SO AS TO EFFECTUATE ITS PURPOSES. THE PROVISIONS
 OF THE COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE,  CLAUSE,  SENTENCE,
 OR  PROVISION OF THE COMPACT IS DECLARED TO BE CONTRARY TO THE CONSTITU-
 TION OF THE UNITED STATES OR OF ANY MEMBER STATE, OR  THE  APPLICABILITY
 OF  THE  COMPACT  TO  ANY GOVERNMENT, AGENCY, PERSON, OR CIRCUMSTANCE IS
 HELD INVALID, THE VALIDITY OF THE  REMAINDER  OF  THE  COMPACT  AND  ITS
 APPLICABILITY  TO  ANY GOVERNMENT, AGENCY, PERSON, OR CIRCUMSTANCE SHALL
 NOT BE AFFECTED.  IF ALL OR SOME PORTION OF THE COMPACT IS  HELD  TO  BE
 CONTRARY  TO  THE  CONSTITUTION  OF  ANY MEMBER STATE, THE COMPACT SHALL
 REMAIN IN FULL FORCE AND EFFECT AS TO THE REMAINING MEMBER STATES AND IN
 FULL FORCE AND EFFECT AS TO THE  STATE  AFFECTED  AS  TO  ALL  SEVERABLE
 MATTERS.
   B.  IN  THE  EVENT  OF  ANY ALLEGATION, FINDING, OR RULING AGAINST THE
 COMPACT OR ITS PROCEDURES OR ACTIONS, PROVIDED THAT A MEMBER  STATE  HAS
 FOLLOWED THE COMPACT'S STATED PROCEDURES, ANY RULE IT PURPORTED TO ADOPT
 USING THE PROCEDURES OF THIS STATUTE SHALL CONSTITUTE A DULY ADOPTED AND
 VALID STATE RULE.
   § 2. This act shall take effect immediately.