NY State Senate Bill 2023-S5549

Senate Bill S5549

2023-2024 Legislative Session

Prohibits regional off-track betting corporations from providing items of value exceeding fifteen dollars to certain associates of the corporation

download bill text pdf

Current Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to racing, gaming and wagering returned to senate died in assembly
Jun 07, 2023	referred to racing and wagering delivered to assembly passed senate
May 10, 2023	advanced to third reading
May 09, 2023	2nd report cal.
May 08, 2023	1st report cal.755
Mar 08, 2023	referred to racing, gaming and wagering

Votes

- Jun 7, 2023 - Floor Vote
  S5549
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 7, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Cooney
      
      Felder
  May 8, 2023 - Racing, Gaming And Wagering Committee Vote
  S5549
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Racing, Gaming And Wagering Committee Vote: May 8, 2023
      
      aye (6)
      
      Addabbo Jr.
      
      Comrie
      
      Martinez
      
      Sanders Jr.
      
      Stavisky
      
      Tedisco
      
      aye wr (1)
      
      Helming

co-Sponsors

2023-S5549 (ACTIVE) - Details

See Assembly Version of this Bill:: A4184
Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Add §503-b, amd §517, RWB L
Versions Introduced in 2021-2022 Legislative Session:: S7856, A9393

2023-S5549 (ACTIVE) - Summary

Prohibits regional off-track betting corporations from providing items of value exceeding fifteen dollars to any board member, officer, or employee of the corporation, any contractor, subcontractor, consultant, or other agent of the corporation, or any spouse, child, sibling or parent of such persons; adds reporting requirements for regional off-track betting corporations.

2023-S5549 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5549

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibiting regional off-track betting corporations from
providing items of value exceeding fifteen dollars to certain associates
of the corporation

 
PURPOSE:

This legislation would prohibit an OTB board member, officer, employee,
contractor, subcontractor, consultant, or other agent of the corpo-
ration, or any spouse, child, sibling or parent residing in the princi-
pal place of abode of any of the foregoing persons, or any business,
professional, or personal associates of any of the foregoing persons,
from receiving any event tickets, beverages, food, or other thing of
value that exceeds a value of fifteen dollars, except as otherwise
explicitly provided in the law.

 
SUMMARY OF SPECIFIC PROVISIONS:

The legislation would amend the racing, pari-mutuel, wagering and breed-
ing law by adding new section 503-b.

Section one adds Section 503-b. Promotional spending restricted from
corporation associates

Section two amends Section 517 of the racing, pari-mutuel wagering and
breeding law, as amended by chapter 243 of the laws of 2020 as follows:
1) Requires Annual Report to be submitted to the temporary president of
the senate and the speaker of the assembly 2) Requires the Annual Report
to include "details of its marketing and promotional plans, the struc-
ture of such plans, any spending pursuant to such plans, and how such
plans have or are anticipated to benefit the operations and financial
position of the corporation, as well as any measures taken to prohibit
self-dealing in conflict of section five hundred three-b of this article

Section 3 - Effective Date

 
JUSTIFICATION:

On September 23, 2021, the New York State Comptroller released an audit
that uncovered that the Western New York Off-Track Betting Corp. (OTB)
spent at least $121,000 on tickets to sporting events, concerts, food
and alcohol for board members, employees and other individuals without
the oversight required by state rules. The audit found that OTB offi-
cials did not keep accurate records of who received tickets and conces-
sions, which were valued, on average, at $221. Additionally, auditors
identified specific instances when board members received tickets, but
no business purpose was identified by OTB officials.

The State Comptroller's Auditors recommended that the OTB:

* Develop and adopt a written policy and procedures for the distribution
of tickets and who is eligible to get them.


* Seek reimbursement for tickets and food and beverages if not appropri-
ately given.

* Define in the marketing plan what groups or categories of complimenta-
ry items, including tickets, will be given out as required by state
regulations.

* Develop a system to maintain a complete, detailed, and accurate record
of tickets distributed.

This legislation goes beyond the OSC's key recommendations by making the
gift rules governing OTB associates consistent with the Public Officers
Law, Legislative Law, and Executive Law, where state employees may not
receive a gift of any kind valued at an amount greater than $15.

 
LEGISLATIVE HISTORY:

S.7856 Passed Senate

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.

2023-S5549 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5549
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2023
                                ___________
 
 Introduced  by Sens. KENNEDY, SKOUFIS -- read twice and ordered printed,
   and when printed to be committed to the Committee  on  Racing,  Gaming
   and Wagering
 
 AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
   relation to prohibiting regional off-track betting  corporations  from
   providing  items of value exceeding fifteen dollars to certain associ-
   ates of the corporation
 
   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 section 503-b to read as follows:
   § 503-B. PROMOTIONAL SPENDING RESTRICTED FROM CORPORATION  ASSOCIATES.
 NO  REGIONAL  OFF-TRACK  BETTING CORPORATION OR ANY SUBSIDIARY WHOLLY OR
 PARTIALLY CONTROLLED BY SUCH  REGIONAL  OFF-TRACK  BETTING  CORPORATION,
 INCLUDING  BUT  NOT  LIMITED TO VIDEO LOTTERY TERMINAL FACILITIES, SHALL
 MAKE AVAILABLE TO ANY BOARD MEMBER, OFFICER, OR EMPLOYEE OF  THE  CORPO-
 RATION, ANY CONTRACTOR, SUBCONTRACTOR, CONSULTANT, OR OTHER AGENT OF THE
 CORPORATION,  OR  ANY  SPOUSE,  CHILD, SIBLING OR PARENT RESIDING IN THE
 PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGOING PERSONS, OR  ANY  BUSI-
 NESS,  PROFESSIONAL,  OR  PERSONAL  ASSOCIATES  OF  ANY OF THE FOREGOING
 PERSONS, ANY EVENT TICKETS, BEVERAGES, FOOD, OR  OTHER  THING  OF  VALUE
 THAT  EXCEEDS A VALUE OF FIFTEEN DOLLARS, EXCEPT AS OTHERWISE EXPLICITLY
 PROVIDED IN THIS CHAPTER. THIS LIMITATION SHALL APPLY, BUT NOT BE LIMIT-
 ED TO, THE MARKETING PLAN AND PROMOTIONAL ACTIVITIES OF THE CORPORATION.
 ALL PROMOTIONAL AND MARKETING ACTIVITIES OF  THE  CORPORATION  SHALL  BE
 SUBJECT  TO APPROVAL AND OVERSIGHT BY THE GAMING COMMISSION, WHICH SHALL
 ENSURE THAT SUCH  MARKETING  PLAN  AND  ACTIVITIES  OF  THE  CORPORATION
 PROHIBIT SELF-DEALING.
   § 2. Section 517 of the racing, pari-mutuel wagering and breeding law,
 as  amended  by  chapter  243 of the laws of 2020, is amended to read as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02054-01-3

 S. 5549                             2
 
   § 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 commission, THE TEMPORARY PRESIDENT
 OF  THE SENATE, THE SPEAKER OF THE ASSEMBLY, and the state comptroller a
 complete and detailed audited report setting forth:
   1. its operations and accomplishments during such fiscal year;
   2. its receipts and expenditures during such fiscal year in accordance
 with categories or classifications established by  the  corporation  for
 its own operating and capital outlay purposes;
   3. 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 of branch offices being planned or in the process of  being
 constructed  or  otherwise established and branch offices that have been
 constructed or established;
   5. DETAILS OF ITS MARKETING AND PROMOTIONAL PLANS,  THE  STRUCTURE  OF
 SUCH PLANS, ANY SPENDING PURSUANT TO SUCH PLANS, AND HOW SUCH PLANS HAVE
 OR  ARE  ANTICIPATED TO BENEFIT THE OPERATIONS AND FINANCIAL POSITION OF
 THE CORPORATION, AS WELL AS ANY MEASURES TAKEN TO PROHIBIT  SELF-DEALING
 IN CONFLICT OF SECTION FIVE HUNDRED THREE-B OF THIS ARTICLE; and
   [5] 6. such other information relating to the operations of the corpo-
 ration  as shall be deemed pertinent by the directors, the participating
 counties, the commission, and the state comptroller.
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.

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Senate Bill S5549

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Sponsored By

Timothy M. Kennedy