2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 5 - Regional Off-Track Betting Corporations › 502 - Establishment of Regional Off-Track Betting Corporations.

§  502. Establishment of regional off-track betting corporations. 1. A
  regional off-track betting corporation is hereby  established  for  each
  region,  except  the  New  York  city region for which the New York city
  off-track betting corporation established pursuant  to  and  subject  to
  article  six  of  this chapter shall constitute the regional corporation
  and such article six shall govern such New York city  off-track  betting
  corporation.  Each  regional  corporation  shall be a body corporate and
  politic constituting a  public  benefit  corporation.  Each  corporation
  shall  be administered by a board of directors consisting of two members
  from each participating county containing a city  of  over  one  hundred
  fifty  thousand in population, according to the last federal census, and
  one member from each other  participating  county.  Notwithstanding  any
  other  provision  of law to the contrary, the members shall be appointed
  by the county governing  body,  and  may,  at  the  discretion  of  such
  governing  body  of  counties  which  have a population of less than two
  hundred thousand, include sitting members  of  such  governing  body.  A
  member of a governing body who is appointed a director after July first,
  nineteen  hundred  ninety  shall  not  be  compensated  by  the regional
  corporation; provided, however, that the mayor of a  city  of  over  one
  hundred fifty thousand that has elected to participate in the management
  of a corporation pursuant to subdivision two of this section shall, with
  the  approval of the city's legislative body, appoint one of the members
  to which the county containing such city is entitled. In the case of the
  corporation established for the Suffolk region and  Nassau  region,  the
  board  of  directors  of each corporation shall consist of three members
  appointed by the governing body of each county, not  more  than  two  of
  whom  shall  be members of the same political party. Each director shall
  serve at the pleasure of the governing body or mayor appointing him,  as
  the  case  may be. A chairman shall be elected by the members to serve a
  term of one year.
2. A city with a population of more than one hundred  fifty  thousand,
  according  to  the  last federal census, may elect to participate in the
  management and revenues of a regional corporation if the county in which
  such city is located has elected to become a participating county.  Such
  election shall be by enabling legislation. Upon such election, such city
  shall participate in the amount of any loans or contributions made or to
  be  made  by  the  participating  county  containing  the  city  to  the
  corporation, pursuant to section five hundred six of  this  article,  in
  the  proportion  that such city will participate in net revenues payable
  to such county or such other equitable arrangement as shall be  approved
  by the commission.
3.  Upon  the passage of enabling legislation by the governing body of
  not less than three counties within a region representing not less  than
  thirty  percent  of  the population of such region, as determined by the
  last federal census, or in the case of  the  Suffolk  region,  upon  the
  passage of enabling legislation by the governing body of Suffolk county,
  or  in  the  case  of  the  Nassau  region, upon the passage of enabling
  legislation by the governing body of Nassau county, or in  the  case  of
  the  Mid-Hudson  region  upon the passage of enabling legislation by the
  governing body of the county of Westchester and of the governing body of
  one other county in  such  region,  and  following  the  appointment  of
  members  of the board of directors, such corporation shall file with the
  secretary of state and with the commission a certificate setting forth:
a. The date of passage of the enabling legislation;
b. The name of the agency, which shall  be  the  name  of  the  region
  followed by the words "regional off-track betting corporation"; and
c. The names of the members of the board of directors and the chair.
4.  Each  of  the  counties  of  the  region  that  has  not  become a
  participating county at the time of filing of the  certificate  required
  by  subdivision  three  of  this  section may do so by enacting enabling
  legislation, a duly certified copy of which must be filed with the board
  of  directors,  the  commission,  the  secretary of state and the county
  clerk of each participating county. In the event that a county elects to
  participate after June first, nineteen  hundred  ninety,  the  effective
  date  of  approval  by the commission shall not be earlier than the date
  that branch offices are established and operating. If, at  the  time  of
  such  election,  the commission has approved a plan of operation for the
  corporation, a county may not  become  a  participating  county  without
  approval  by  the commission of a modified feasibility study and amended
  plan of operation which shall be submitted by  the  corporation  to  the
  commission pursuant to section five hundred twenty-one of this chapter.
If the participating counties in the region have contributed or loaned
  funds  or other consideration to the corporation, the board of directors
  may  require  that  any  county  subsequently  electing  to   become   a
  participating  county make such contributions in the same proportion, if
  any, as may have governed such contributions or loans  by  participating
  counties.  Any  dispute  as  to  the  value  of consideration or as to a
  contribution required by the board of directors shall be resolved by the
  commission.
5. a. If the certificate required by subdivision three of this section
  is not filed by December thirty-first,  nineteen  hundred  seventy-five,
  the corporate existence of a corporation shall terminate, but otherwise,
  each  corporation  and  its  corporate  existence  shall  continue until
  terminated by law; provided, however, that no such law shall take effect
  so long as the corporation shall have bonds, notes or other  obligations
  outstanding. Upon termination of the existence of the corporation all of
  its  rights,  property,  assets and funds shall thereupon vest in and be
  possessed by the participating counties  in  the  same  proportion  such
  property,  assets  and funds may have been contributed by each county or
  according to the manner in which the revenues  of  the  corporation  are
  distributed pursuant to section five hundred sixteen of this article, or
  any combination of both such methods, as the commission shall determine.
b.  Notwithstanding the provisions of paragraph a of this subdivision,
  those counties comprising the Central region  prior  to  January  first,
  nineteen hundred seventy-four, even though such counties are included in
  off-track  betting  regions  other  than  the Central region, shall have
  until December thirty-first, nineteen hundred  eighty-two  to  file  the
  certificate required by subdivision three of this section.
6.  Each  director  shall  continue to serve until the appointment and
  qualification of his successor.
7. The directors shall be removable for cause by the commission,  upon
  charges and after a hearing.
8.  The  powers of the corporation shall be vested in and exercised by
  the board of directors at a meeting duly held at a  time  fixed  by  any
  by-law  adopted  by  the board, or at any duly adjourned meeting of such
  meeting or at any meeting held upon reasonable  notice  to  all  of  the
  directors,  or  upon written waiver thereof, and a majority of the whole
  number of directors shall constitute a quorum; provided that neither the
  business nor the powers  of  the  corporation  shall  be  transacted  or
  exercised  except  pursuant to the favorable vote of at least a majority
  of the  directors  present  at  a  meeting  at  which  a  quorum  is  in
  attendance.
9.  The  board  of  directors  may  delegate  to  one  or  more of the
  directors, officers, agents or employees of the corporation such  powers
  and duties as it may deem proper.
10.  a.  The  directors may receive a sum of two hundred fifty dollars
  for each day or part thereof spent in attendance  at  meetings  held  in
  accordance  with  subdivision  eight  of this section, but not to exceed
  twenty-five hundred dollars during any one year.
b. The directors may receive a sum of one hundred dollars for each day
  or  part  thereof  at  meetings  other than those defined in subdivision
  eight of this section or otherwise  in  the  work  of  the  corporation;
  provided that such activities are approved by the board as a whole. Such
  additional  expenses  shall  not  exceed  fifteen hundred dollars in any
  calendar year.
c. The chairman of the board elected in  accordance  with  subdivision
  one  of  this  section  shall  receive  additional  compensation  of one
  thousand dollars  per  year  to  cover  those  expenses  and  activities
  associated with such office.
d. In addition, the directors shall be reimbursed for their actual and
  necessary expenses incurred in the performance of their official duties.
e.  Any  expenses incurred by a director in excess of those authorized
  by paragraph d of this subdivision shall be the  responsibility  of  the
  appointing  political  subdivision,  payable  on  vouchers  certified or
  approved by the chief fiscal officer of such political subdivision as is
  provided by law.
11. The directors may engage in outside employment or in a  profession
  or  business  unless  otherwise  prohibited  from  doing so by virtue of
  holding another public office  subject  to  the  provisions  of  article
  eighteen  of the general municipal law. For the purposes of such article
  eighteen, the corporation shall be a "municipality" and a director shall
  be a "municipal officer."
12. a. The board of directors shall hold an annual  meeting  and  meet
  not less than quarterly.
b.  Each  board  member  shall  receive,  not  less than seven days in
  advance of a meeting, documentation necessary  to  ensure  knowledgeable
  and  engaged  participation.  Such  documentation shall include material
  relevant  to  each  agenda  item  including  background  information  of
  discussion items, resolutions to be considered and associated documents,
  a  monthly  financial statement which shall include an updated cash flow
  statement and aged  payable  listing  of  industry  payables,  financial
  statements, management reports, committee reports and compliance items.
c.  Staff  of  the  corporation shall annually submit to the board for
  approval a financial plan accompanied by expenditure, revenue  and  cash
  flow  projections.  The  plan  shall  contain projection of revenues and
  expenditures based on reasonable and appropriate assumptions and methods
  of estimations, and shall provide  that  operations  will  be  conducted
  within  the  cash  resources  available.  The  financial plan shall also
  include information regarding projected  employment  levels,  collective
  bargaining  agreements  and  other  actions  relating to employee costs,
  capital construction and such other matters as the board may direct.
d. Staff of the corporation shall prepare and submit to the board on a
  quarterly basis a report of summarized  budget  data  depicting  overall
  trends,  by  major  category within funds, of actual revenues and budget
  expenditures for the entire budget rather than individual line items, as
  well  as  updated  quarterly  cash  flow  projections  of  receipts  and
  disbursements.   Such   reports  shall  compare  revenue  estimates  and
  appropriations as set forth in such budget and in the quarterly  revenue
  and   expenditure  projections  submitted  therewith,  with  the  actual
  revenues and expenditures made to date. Such reports shall also  compare
  actual  receipts  and  disbursements with the estimates contained in the
  cash flow projections, together with variances  and  their  explanation.
  All  quarterly  reports shall be accompanied by recommendations from the

  president setting forth any remedial action  necessary  to  resolve  any
  unfavorable budget variance including the overestimation of revenues and
  the  underestimation of appropriations. These reports shall be completed
  within  thirty days after the end of each quarter and shall be submitted
  to the board by the corporation comptroller.
e. Revenue  estimates  and  the  financial  plan  shall  be  regularly
  reexamined by the board and staff and shall provide a modified financial
  plan  in  such  detail  and  within  such  time periods as the board may
  require. In the event of reductions in such revenue estimates, the board
  shall consider and approve such adjustments  in  revenue  estimates  and
  reductions  in total expenditures as may be necessary to conform to such
  revised revenue estimates or aggregate expenditure limitations.
13. The fiscal year of the corporation shall be the calendar year.
14. A general manager, who shall be the chief executive officer of the
  corporation, shall be in charge of the administration of its affairs. He
  shall perform his duties as chief executive officer, together  with  any
  other  duties  assigned  to  him  by  the  corporation, under its direct
  supervision and control and shall give full time to such duties.
15.  Any  person  prohibited  by  any  law  or  rule  from   accepting
  compensation   described  in  subdivision  ten  of  this  section  shall
  nonetheless be permitted to serve as a  director  provided  said  person
  waives his compensation.
16.  Notwithstanding any inconsistent provision of this chapter or any
  other  law,  any  director,  administrator,  or  other  employee  of   a
  corporation may be issued and hold any license issued by the commission.