Bill S646A-2009

Increases the maximum fine from $5,000 to $20,000, that can be imposed by the racing and wagering board for violations relating to horse racing

Increases the maximum fine from $5,000 to $20,000, that can be imposed by the racing and wagering board upon licensees and franchisees for violations relating to thoroughbred and harness racing and quarter horse racing and breeding, and simulcast of horse racing.

Details

Actions

  • Jan 6, 2010: REFERRED TO RACING, GAMING AND WAGERING
  • Mar 17, 2009: PRINT NUMBER 646A
  • Mar 17, 2009: AMEND (T) AND RECOMMIT TO FINANCE
  • Mar 10, 2009: REPORTED AND COMMITTED TO FINANCE
  • Jan 12, 2009: REFERRED TO RACING, GAMING AND WAGERING

Memo

 BILL NUMBER:  S646A

TITLE OF BILL : An act to amend the racing, pari-mutuel wagering and breeding law, in relation to the imposition of fines related to thoroughbred, harness, and quarter horse racing and breeding, and simulcast of horse racing

PURPOSE : The purpose of this bill is to increase the fines that the Racing and Wagering Board may impose for infractions of the Racing & Wagering Law from $ 5,000 to $20,000.

SUMMARY OF PROVISIONS :

Section 1: Amends the Racing, Pari-mutuel Wagering, and Breeding Law section 250 to increase the fines that may be levied by the Racing and Wagering Board for infractions of such law related to thoroughbred racing from $5,000 to $20,000.

Section 2: Amends the Racing, Pari-mutuel, and Breeding Law section 310 to increase the fines that may be imposed by the Board for violations of such law related to harness racing from $5,000 to $20,000.

Section 3: Amends the Racing, Pari-mutuel, and Breeding Law section 410 to increase the fines that may be imposed by the Board for violations of such law related to quarter horse racing from $5,000 to $20,000.

Section 4: Amends the Racing, Pari-mutuel, and Breeding Law section 1005 to increase the fines that may be imposed by the Board for violations of such law related to simulcasting of racing signals from $5,000 to $20,000.

EXISTING LAW : Under existing law, the Board may impose fines of no more than $5,000 for a violation of the Racing & Wagering Law.

JUSTIFICATION : The Board needs the authority to impose heavier fines to ensure that all racing licensees adhere to the Racing Law. The current fines were first set at $5,000 53 years ago in 1953. In 1953, the United States had just ended the Korean War, Ike was sworn in as President, Joe DiMaggio had retired from baseball two years earlier, Mickey Mantle and Willie Mays had their rookie year two years earlier, and Gary Carter, a NY Mets catcher, was born one year later in 1954.

The value of a dollar in 1953 is now worth 13 cents in 2006 dollars. The fines, in 1953 dollars, have been substantially reduced in real terms due to the cost of inflation. $5,000 in fines (in 1953 dollars) would now be $ 38,500 in 2006 dollars if the fines had kept up with the rate of inflation. This bill merely increases the maximum fines from $ 5,000 to $ 20,000 not $ 38,500 as would be the case if the fines were to equal the real value of such fines in 1953 dollars.

Presently, the low fine limits have little deterrent affect to stop individuals from administering performance enhancing drugs to horses or committing other violations of the Racing Law. Further, with the advent of cell phones, video cameras and other telecommunications technology, banning a trainer from the race course grounds no longer effectively punishes or removes such a individual from participating in the conduct of horse racing or advising his or her employees on how to prepare a horse prior to a race. While the Board might be able to subpoena telephone records of a sanctioned individual to determine if such person was improperly in communication with his or her racing staff at the track, such an enforcement tactic is both expensive and impinges on individual civil liberties. Increasing the fine structure is a much more effective way to ensure that violations of the Racing Law do not occur and encourage racing licensees to comply with the law.

LEGISLATIVE HISTORY : S.6983 of 2006

FISCAL IMPLICATIONS : None.

LOCAL FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : Immediate.

Text

STATE OF NEW YORK ________________________________________________________________________ 646--A 2009-2010 Regular Sessions IN SENATE January 12, 2009 ___________
Introduced by Sen. LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wager- ing -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to the imposition of fines related to thoroughbred, harness, and quarter horse racing and breeding, and simulcast of horse racing THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 250 of the racing, pari-mutuel wagering and breed- ing law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: S 250. Power of state racing and wagering board to impose penalties. 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 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 [sections two hundred twenty-two through seven hundred five of] this chapter or the rules and regulations promulgated pursuant thereto, not exceeding [five] TWENTY thousand dollars for each violation, which penalties shall be paid into the state treasury. Each day upon which such violation continues may be considered by the board 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- al in the name of the people of the state of New York, if so directed by the board. The amount of the penalty collected by the board or recovered in any such action, or paid to the board upon a compromise as hereinaft- er provided, shall be paid by the [department of state] BOARD into the
state treasury and credited to the general fund. The board, 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 expired by its terms prior to the imposition of such penalty. S 2. Section 310 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: S 310. Power of the state racing and wagering board to impose fines and penalties. In addition to its power 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 harness race meet at which pari-mutuel betting is conducted, other than as a patron, and whether licensed by the board or not, for a violation of any provision of [sections two hundred twenty-two through seven hundred five of] this chapter or the rules promulgated by the board pursuant thereto, not exceeding [five] TWENTY thousand dollars for each violation. The board is further authorized and empowered to impose monetary fines, not exceeding [five] TWENTY thousand dollars for each violation, upon any such corporation, association or person for a violation of any order issued by the board pursuant to the provisions of [sections two hundred twenty-two through seven hundred five of] this chapter or the rules promulgated by the board 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 in imposing any monetary fine shall be review- able 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. S 3. Section 410 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: S 410. Power of state racing and wagering board to impose fines and penalties. 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 or not, for a violation of any provision [of sections two hundred twenty-two through seven hundred five] of this chapter or the rules promulgated by the board pursuant thereto, not exceeding [five] TWENTY thousand dollars for each violation. The board is further authorized and empowered to impose monetary fines, not exceeding [five] TWENTY thousand dollars for each violation, upon any such corporation, association or person for a violation of any order issued by the board pursuant to the provisions [of sections two hundred twenty-two through seven hundred five] of this chapter or the rules promulgated by the board 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 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.
S 4. Section 1005 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: S 1005. Power of the board to impose fines and penalties. In addition to its power 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 simulcasts on which pari-mutuel betting is conducted, other than as a patron, and whether licensed by the board or not, for a violation of any provision of this [article] CHAPTER or the rules promulgated by the board pursuant thereto, not exceeding [five] TWENTY thousand dollars for each violation. The board is further authorized and empowered to impose monetary fines, not exceeding [five] TWENTY thousand dollars for each violation, upon any such corporation, association or person for a violation of any order issued by the board pursuant to the provisions of this [article] CHAPTER or the rules promulgated by the board pursuant thereto, provided that a copy of such order shall have been served, either personally or by registered mail, upon the corpo- ration, 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. S 5. This act shall take effect immediately.

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