Bill S7162-2009

Authorizes formation of limited liability companies for the purpose of conducting horse race meetings at which pari-mutuel betting will be conducted

Authorizes formation of limited liability companies for the purpose of conducting horse race meetings at which pari-mutuel betting will be conducted.

Details

Actions

  • Jun 14, 2010: referred to racing and wagering
  • Jun 14, 2010: DELIVERED TO ASSEMBLY
  • Jun 14, 2010: PASSED SENATE
  • Jun 7, 2010: ADVANCED TO THIRD READING
  • Jun 3, 2010: 2ND REPORT CAL.
  • Jun 2, 2010: 1ST REPORT CAL.694
  • May 4, 2010: REPORTED AND COMMITTED TO FINANCE
  • Mar 18, 2010: REFERRED TO RACING, GAMING AND WAGERING

Votes

VOTE: COMMITTEE VOTE: - Racing, Gaming and Wagering - May 4, 2010
Ayes (9): Adams, Onorato, Stachowski, Johnson C, Addabbo, Bonacic, Nozzolio, Griffo, McDonald

Memo

 BILL NUMBER:  S7162

TITLE OF BILL : An act to amend the racing, pari-mutuel wagering and breeding law, in relation to limited liability companies

PURPOSE : This bill would authorize limited liability companies (LLCs) to hold racing licenses to conduct pari-mutuel horse racing.

SUMMARY OF PROVISIONS : Section 1 of the bill would add a new § 113 to the Racing, Pari-Mutuel Wagering and Breeding (Racing) Law to authorize the formation of LLCs for the purpose of conducting pari-mutuel horse racing. This provision would apply to thoroughbred, harness and quarter horse racing events. While this bill authorizes LLCs to hold a racing license, such companies would need to satisfy all of the other conditions applicable to other racing corporations that hold such licenses.

Sections 2, 3 and 4 of the bill would amend Racing Law §§ 201, 302 and 402 to incorporate by reference those sections of law that outline the procedures that need to be satisfied before a racing corporation certificate of incorporation can be filed with the Secretary of State and before a racing license can be issued to such a racing corporation.

Section 5 of the bill would provide for the effective date.

EXISTING LAW : None.

LEGISLATIVE HISTORY : Similar legislation was introduced as S.6109 in 2007.

STATEMENT IN SUPPORT : The laws that establish the criteria for forming a racing corporation were first added to New York State law in 1940. At that time, LLCs were not in existence. More recently, LLCs have become a much more common form of business organization. However, the Racing Law does not allow such companies to hold a racing license. The value of LLCs in today's business climate is that they can limit potential liability to the company's principals and can have certain tax benefits.

Several racing corporations, while holding a racing license, operate as a holding company with a controlled subsidiary that is operated as a LLC. This corporate arrangement can be cumbersome because it means that different sets of accounting books may be required to comply with regulatory laws for corporations and LLCs. This bill would allow a LLC to apply for and obtain its own racing license without creating either another corporate subsidiary or holding company.

BUDGET IMPLICATIONS : None.

EFFECTIVE DATE : This bill would take effect immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 7162 IN SENATE March 18, 2010 ___________
Introduced by Sen. ADAMS -- (at request of the New York State Racing and Wagering Board) -- 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 limited liability companies 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 113 to read as follows: S 113. LIMITED LIABILITY COMPANIES. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER TO THE CONTRARY, A LIMITED LIABILITY COMPANY MAY BE FORMED FOR THE PURPOSE OF CONDUCTING HORSE RACE MEETINGS AT WHICH PARI-MUTUEL BETTING WILL BE CONDUCTED PURSUANT TO THIS CHAPTER. THE REQUIREMENTS FOR THE FORMATION OF SUCH A LIMITED LIABILITY COMPANY SHALL BE CONSISTENT WITH THE SPECIFIC REQUIREMENTS RELATING TO THE FORMATION OF CORPORATIONS TO CONDUCT RACE MEETINGS FOR THOROUGHBRED RACING, HARNESS RACING OR QUARTER HORSE RACING, PURSUANT TO ARTICLE TWO, THREE OR FOUR OF THIS CHAPTER. ANY RESTRICTIONS OR OTHER PROVISIONS OF LAW APPLICABLE TO SUCH CORPORATION, AS SET FORTH IN THE APPROPRIATE ARTICLE OF THIS CHAPTER, SHALL BE APPLICABLE TO LIMITED LIABILITY COMPANIES. NO ARTICLE OF ORGANIZATION PURSUANT TO THIS SECTION, OR ANY REINSTATEMENT OR AMENDMENT THEREOF SHALL BE FILED WITHOUT THE APPROVAL OF THE STATE RACING AND WAGERING BOARD ENDORSED THEREON OR ANNEXED THERETO. S 2. Section 201 of the racing, pari-mutuel wagering and breeding law is amended by adding a new closing paragraph to read as follows: NO PROVISION OF THIS ARTICLE SHALL BE DEEMED TO PROHIBIT A LIMITED LIABILITY COMPANY FROM CONDUCTING RACE MEETINGS PURSUANT TO THIS ARTI- CLE, AS AUTHORIZED BY SECTION ONE HUNDRED THIRTEEN OF THIS CHAPTER. S 3. Section 302 of the racing, pari-mutuel wagering and breeding law is amended by adding a new closing paragraph to read as follows: NO PROVISION OF THIS ARTICLE SHALL BE DEEMED TO PROHIBIT A LIMITED LIABILITY COMPANY FROM CONDUCTING RACE MEETINGS PURSUANT TO THIS ARTI- CLE, AS AUTHORIZED BY SECTION ONE HUNDRED THIRTEEN OF THIS CHAPTER.
S 4. Section 402 of the racing, pari-mutuel wagering and breeding law is amended by adding a new closing paragraph to read as follows: NO PROVISION OF THIS ARTICLE SHALL BE DEEMED TO PROHIBIT A LIMITED LIABILITY COMPANY FROM CONDUCTING RACE MEETINGS PURSUANT TO THIS ARTI- CLE, AS AUTHORIZED BY SECTION ONE HUNDRED THIRTEEN OF THIS CHAPTER. S 5. This act shall take effect immediately.

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