Directs OTB corporations to submit copy of annual budget to the racing and wagering board, and, upon finding of reasonable basis by such board to believe any such OTB corporation is not complying with applicable laws or rules and regulations, cause its business and managerial practices to be audited at its own expense.
Ayes (61): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (1): Morahan
TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and breeding law, in relation to audits and budgets of off-track betting corporations
PURPOSE: To authorize the Racing and Wagering Board (Board), upon a finding based on a reasonable basis that an off-track betting corporation (OTB) is not complying with the law, to order an OTB to cause its business and managerial practices to be audited. It also requires that OTB corporations submit copies of the corporation's annual budget to the Board no later than 20 days after approval by the corporation's board of directors.
SUMMARY OF PROVISIONS: Section 1: Amends section 524(1) of the Racing, Pari-Mutuel Wagering and Breeding Law to explicitly authorize the Board to direct an OTB corporation to cause its business and managerial practices to be audited at the corporation's expense if there is a reasonable basis to believe that such corporation is in violation of the law.
Section 2: Section 524(4) is amended to add language requiring the submission of an approved OTB annual budget to the Board within 20 days of its adoption.
Section 3: Effective date.
EXISTING LAW: The Board has no explicit authorization to audit an OTB even if it appears that such OTB is in violation of the law.
JUSTIFICATION: OTB corporations are public benefit corporations which should be operated in the public interest and in the most efficient manner possible. In addition, they should be operated in a manner consistent with the statutory requirements set forth in the Racing Law. Recent events have focused attention on the practices of these public benefit corporations and have demonstrated the need to require this type of managerial and business examination, when necessary, in order to provide a basis for assuring compliance with statutory objectives and generally accepted business management practices. Submission of already approved OTB annual budgets will also enhance the ability to monitor off-track betting corporation activities.
Many other State agencies such as the Insurance and Health Departments have the statutory authority to order an audit of a regulated party if that Department believes regulatory irregularities are occurring. It is only proper that OTBs should be monitored in a way that ensures that the maximum amount of money possible is going to localities and not to perpetuate inefficient OTB operations.
LEGISLATIVE HISTORY: S.7018 of 2001 S.2088 of 2003/2004 S.1205 of 2005/2006
FISCAL IMPLICATIONS: None.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: 180 days after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 2717 2009-2010 Regular Sessions IN SENATE February 27, 2009 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wager- ing AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to audits and budgets of off-track betting corporations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 524 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. The board shall, consistent with the powers of the
[state tax commission]DEPARTMENT OF TAXATION AND FINANCE, prescribe uniform meth- ods of keeping accounts, records and books to be observed by regional corporations. The board shall, 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 corpo- rations. The board shall have power to visit, investigate, and place expert accountants, or such other persons as it 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 thereunder are strictly complied with. UPON A FINDING BY THE BOARD OF A REASONABLE BASIS TO BELIEVE THAT ANY SUCH OFFTRACK BETTING CORPORATION IS NOT COMPLYING WITH THE RULES AND REGULATIONS OF THE BOARD OR WITH APPLICABLE PROVISIONS OF LAW, THE BOARD, AFTER PROVIDING A WRITTEN REPORT SETTING FORTH ITS FINDINGS, MAY BY A MAJORITY VOTE DIRECT SUCH CORPORATION TO CAUSE ITS BUSINESS AND MANAGERIAL PRACTICES TO BE AUDITED AT ITS OWN EXPENSE TO ENSURE THAT SUCH CORPORATION COMPLIES WITH THE RULES AND REGULATIONS OF THE BOARD OR ANY APPLICABLE PROVISION OF LAW. S 2. Subdivision 4 of section 524 of the racing, pari-mutuel wagering and breeding law is amended to read as follows:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05162-01-9 S. 2717 2
4. The reports required under this section shall be in such form and contain such other matters as the board may determine from time to time to be necessary to disclose accurately the financial condition and oper- ation of such corporations. EACH REGIONAL CORPORATION SHALL SUBMIT A COPY OF THE CORPORATION'S ANNUAL BUDGET TO THE BOARD NO LATER THAN TWEN- TY DAYS FOLLOWING APPROVAL OF SUCH BUDGET BY THE CORPORATION'S BOARD OF DIRECTORS. The board may for good cause shown grant a reasonable exten- sion of time for the filing of any such report. S 3. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, that the state racing and wagering board is authorized to promulgate any rules and regulations prior to such effective date to implement the provisions of this act.