2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 5-A - Off-Track Pari-Mutuel Betting › 521 - Approval of Plans of Operation; Amendments.

§  521.  Approval  of  plans  of  operation;  amendments.  In order to
accomplish the objectives of this article, the commission shall have the
power, subject to the provisions of this article  but  without  limiting
the  generality  of  any provision of this chapter, to approve a plan of
operation submitted by any regional corporation  created  under  article
five of this chapter.
1.  Before the commission may grant such approval, the commission must
review and approve a feasibility study submitted  by  such  corporation,
including but not limited to the following subjects:
a.  the  overall  practicability  of  establishing  and  operating  an
efficient and profitable system of off-track betting in such  region  or
in such counties that have elected to participate in the corporation;
b. the potential market;
c. the estimated costs of operation;
d. the probable types of wagering and number of opportunities required
for successful operation; and
e.  the  probable  impact  of  the  proposed  operation  upon on-track
attendance and pari-mutuel betting within  the  region.  The  commission
may,   within   the  time  provided  for  approval,  request  additional
information from the corporation. Disapproval of the  feasibility  study
shall be accompanied by a statement of the reasons therefor and shall be
treated  as  disapproval  of  a  plan  under  subdivision  three of this
section.
2. The plan of operation shall include the following:
a. the organizational  structure  of  the  corporation  including  the
approximate number and compensation of employees;
b. a narrative description of the system;
c.  the  types  and approximate cost of data processing, communication
and  transmission  facilities  that  will  be  used,  including  back-up
systems;
d. security measures;
e. the type and number of betting opportunities to be offered;
f. the race tracks and races for which bets will be taken;
g. the maximum and minimum number of retail outlets or betting offices
to be established;
h. the proposed system of accounts; and
i. the amount and proposed sources of financing.
3.  Within  ninety  days of receipt of the feasibility study and plan,
the commission shall issue an order approving  the  plan,  approving  it
with modifications or denying approval and stating its reasons therefor.
Within  such period the commission may request additional information or
suggest amendments. If the commission fails to approve the plan  without
modification,  the  corporation  may request a public hearing to be held
within thirty days of the issuance of an order approving an  application
with  modifications  or denying it. The commission shall issue its final
determination within ten days  of  such  hearing.  The  corporation  may
submit an amended application no sooner than ninety days after a denial.
4. A plan of operation may be amended from time to time at the request
of  either the corporation or the commission. The corporation shall have
the right to be heard concerning any  amendment  to  the  plan  proposed
after  implementation  and the commission shall dispose of such proposed
amendments as expeditiously as practicable, but  no  later  than  thirty
days  following  submission  by  the  corporation  or,  in  the  case of
amendments proposed by the commission, objection by the corporation.
5. Any arrangements for  telecasts  or  broadcasts  of  running  races
pursuant  to  contracts  with track operators shall constitute a part of
the plan of operation, or an amendment thereto, as the case may be.
6. The plan of operation  of  the  New  York  city  off-track  betting
corporation  in  effect  on  July first, nineteen hundred seventy-three,
shall be deemed approved by the  commission,  but  shall  thereafter  be
subject to the general jurisdiction of the commission in the same manner
as are the plans of other regional corporations.
7.  a.  The  city  of  Schenectady  may  continue to operate off-track
pari-mutuel betting within such city, subject to the jurisdiction of the
commission, until the commission approves a plan of operation  submitted
by  the Capital District regional off-track betting corporation and such
plan of operation is implemented; provided,  however,  that  during  any
period  that  the  city  of  Schenectady  continues to operate off-track
pari-mutuel betting within such city pursuant to  this  subdivision,  it
may  accept  off-track  wagers  on races at any harness track within the
state which so agrees subject to the approval of  the  commission  until
such  time  as the harness track located within the Capital District and
the city of Schenectady mutually agree on the provision  of  appropriate
space  and  facilities at such track for such city and such agreement is
implemented. Such plan  of  operation  shall  make  due  provision  with
respect  to  investments and obligations of the city of Schenectady made
or incurred in the  operation  of  off-track  pari-mutuel  betting.  The
county of Schenectady shall reimburse the city of Schenectady on account
of  lost revenues from the operation of off-track betting. The amount of
reimbursement shall be calculated under the rules of the  commission  to
guarantee  that  the  city shall receive annually an amount equal to the
net revenue received  from  off-track  betting  for  the  calendar  year
nineteen hundred seventy-three or a percent of the net revenues received
by such county obtained by dividing the bets originating in such city by
the  bets  originating  in  such  county during the distribution period,
whichever is less. Reimbursement shall continue  for  a  period  of  ten
years and shall be made in substantially equal quarterly payments.
b.  Until such time as the Capital District regional off-track betting
corporation's plan of operation has been approved by the commission  and
the  county of Schenectady has enacted enabling legislation to join such
corporations and such county's participation has been  implemented,  the
city  of  Schenectady  shall  have  all  the  rights, powers, duties and
obligations of the county of Schenectady under this  chapter,  including
but  not  limited  to  the right to participate in the formation of such
corporation or subsequently to participate in the operation thereof,  as
the  case may be, except that the geographical boundaries of such city's
participation shall be limited to the city of Schenectady.
8. The commission may authorize and approve:
a. an application submitted by the New  York  city  off-track  betting
corporation  to  amend its plan of operation, pursuant to the provisions
of this section, to provide for the display in no more than two existing
facilities within Richmond county of telecasts of live audio and  visual
signals  of  harness  racing  from  any  harness  racing  association or
corporation within its region; provided, however, that
(i) the association or corporation conducting such racing has  entered
into  a  written  agreement  for  such  telecasts with the New York city
off-track  betting  corporation  pursuant  to   section   five   hundred
twenty-seven  of  this chapter, which agreement shall terminate no later
than the thirtieth day of June, nineteen hundred eighty-five,
(ii) all expenses incurred in the implementation of such amendment  to
its  plan  of operation for such telecasting shall be the responsibility
of the New York city off-track betting corporation, and
(iii) the commission shall submit reports  to  the  governor  and  the
legislature   evaluating   the   results   of  such  experiment  on  the
compatibility with the well-being  of  the  horse  racing  and  breeding

industries  in  this  state,  and its effect on handle and attendance at
off-track   facilities   within   Richmond   county,    and    including
recommendations  regarding  the  future authorization of the telecast of
live audio and visual signals into off-track betting facilities; and
b.   one   other   application   submitted  by  an  off-track  betting
corporation, other than the New York city off-track betting corporation,
to amend its plan of operation,  pursuant  to  the  provisions  of  this
section,  to  provide  for the display in two existing facilities within
its region of telecasts of live audio  and  visual  signals  of  harness
racing  from  any  harness  racing association or corporation within its
region; provided however, that
(i) the association or corporation conducting such racing has  entered
into  a written agreement for such telecasts with such off-track betting
corporation pursuant  to  section  five  hundred  twenty-seven  of  this
chapter, which agreement shall terminate no later than the thirtieth day
of June, nineteen hundred eighty-five,
(ii)  all expenses incurred in the implementation of such amendment to
its plan of operation for such telecasting shall be  the  responsibility
of the off-track betting corporation, and
(iii)  the  commission  shall  submit  reports to the governor and the
legislature  evaluating  the  results  of   such   experiment   on   the
compatibility  with  the  well-being  of  the  horse racing and breeding
industries in this state, and at off-track facilities within its region,
and including recommendations regarding the future authorization of  the
telecast  of  live  audio  and  visual  signals  into  off-track betting
facilities.
c. provided, however,  that  such  audio  and  visual  telecasts  into
approved facilities shall commence no earlier than sixty days after such
telecasts  have  been  approved. During such time, the off-track betting
corporation shall provide to the commission daily data, to  include  but
not  be  limited  to,  wagers,  separately by type of racing and wagers,
attendance and promotion expenditures of such facilities in such  manner
as  the  commission  may  require.  Such  data  shall  be  used  as  the
pre-telecast base to evaluate the impact of such telecasts. In addition,
such similar  data  and  information  shall  also  be  supplied  to  the
commission  during  the  period  that  such telecasts are authorized. No
change in the types of wagers offered to patrons  may  be  made  without
prior  written  approval  by  the  commission of at least thirty days in
advance of such requested change.