2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 3 - Harness Racing and Breeding › 303 - Filing of Information Concerning Stock Transfers; Necessity for Commission Approval.

§ 303. Filing of information concerning stock transfers; necessity for
  commission  approval. 1. Whenever a transfer of stock of any association
  or  corporation  that  is  licensed  under  this  article,  or  of   any
  association  or  corporation  that  leases to such licensee the track at
  which it conducts pari-mutuel harness races, or  that  owns  twenty-five
  percent or more of the stock of such licensee shall be made, there shall
  be  filed simultaneously with the association or corporation that issued
  such stock the following:
a. In duplicate, an affidavit executed by the transferee stating  that
  the  affiant  is to be the sole beneficial owner thereof, and whether or
  not the affiant has (i)  been  convicted  of  a  crime  involving  moral
  turpitude,  (ii)  been  engaged  in bookmaking or other forms of illegal
  gambling, (iii) been found guilty of any fraud or  misrepresentation  in
  connection with racing or breeding, (iv) been guilty of any violation or
  attempt   to   violate  any  law,  rule  or  regulation  of  any  racing
  jurisdiction for which suspension from racing might be imposed  in  such
  jurisdiction,  or  (v)  violated  any  rule,  regulation or order of the
  commission; if the transferee  is  not,  or  is  not  to  be,  the  sole
  beneficial  owner thereof, then there shall be annexed to said affidavit
  of the transferee, and expressly stated in such affidavit to be deemed a
  part thereof, a true and complete copy, or if oral, a complete statement
  of all the terms, of the agreement or understanding  pursuant  to  which
  the  stock  is  to  be  so  held by the transferee, including a detailed
  statement of the interest therein of each person  who  is  to  have  any
  interest therein; and at the same time.
b.  In  duplicate,  an affidavit executed by each person for whom such
  stock, or any interest therein,  is  to  be  held  by  said  transferee,
  setting  forth  whether  or  not the affiant has (i) been convicted of a
  crime involving moral turpitude, (ii) engaged  in  bookmaking  or  other
  forms  of  illegal  gambling,  (iii)  been  found guilty of any fraud or
  misrepresentation in connection  with  racing  or  breeding,  (iv)  been
  guilty  of  any  violation  or  attempt  to  violate  any  law,  rule or
  regulation of any racing jurisdiction for which suspension  from  racing
  might  be  imposed  in  such  jurisdiction,  or  (v)  violated any rule,
  regulation or order of the commission; to each of which affidavits shall
  be annexed, and expressly stated in such affidavit to be deemed  a  part
  thereof,  a  true and complete copy, or if oral, a complete statement of
  all the terms, of the agreement or understanding pursuant to  which  the
  stock is to be so held by the transferee, including a detailed statement
  of  the  interest  therein  of  each  person who is to have any interest
  therein.
c. Said association or  corporation  shall  forthwith  file  with  the
  commission one of each of said duplicate affidavits.
2.  If,  after  the  filing  of  any affidavit required to be filed by
  subdivision one of this section, there is any change in  the  status  of
  any  such  affiant  with  respect  to  any  of  the matters set forth in
  subparagraph (i), (ii), (iii), (iv) or (v) of paragraph a of subdivision
  one of this section of the affidavit theretofore filed by  him  or  her,
  such  affiant  shall  forthwith file with the association or corporation
  with which the  affiant's  affidavit  was  so  filed  a  new  affidavit,
  executed  in  duplicate,  setting  forth  such change of status, and the
  association or corporation shall forthwith file one of  said  affidavits
  with the commission.
3. Whenever any change is made in the amount, nature, or otherwise, of
  the  interest  of  any  person  having  an interest in stock of any such
  association or corporation, or any  new  interest  is  created  therein,
  without  a transfer of such interest as provided in subdivisions one and
  two of this section, the record owner of such  stock,  and  each  person

  whose  interest  therein has been so attempted to be changed or created,
  shall file with the association or corporation that issued  such  stock,
  in   duplicate,  affidavits  as  provided  by  paragraphs  a  and  b  of
  subdivision  one  of  this section, except that such affidavits need not
  include the matters referred to in subparagraphs (i), (ii), (iii),  (iv)
  and  (v)  of paragraph a of subdivision one of this section, unless then
  required pursuant to subdivision two  of  this  section,  and  one  copy
  thereof  shall forthwith be filed by the association or corporation with
  the commission.
4. The commission may, upon application to it for  good  cause  shown,
  waive compliance with subdivisions one, two and three of this section.
5.  If  the  commission  determines  that  it is inconsistent with the
  public interest, convenience or necessity, or with the best interests of
  racing generally, that any  person  continue  to  be  a  stockholder  of
  record, or the beneficial owner of any interest in stock standing in the
  name  of  another, in any association or corporation licensed under this
  article, or of any  association  or  corporation  that  leases  to  such
  licensee  the  track  at which it conducts pari-mutuel harness racing or
  that owns twenty-five percent or more of the stock of such licensee, the
  commission shall have full power and authority to order or  direct  each
  such  stockholder or beneficial owner irrespective of the time when such
  stockholder or beneficial owner acquired his or her  stock  or  interest
  therein  to dispose of such stock or interest within a period of time to
  be specified by the commission, which period the commission  shall  have
  full power and authority to extend from time to time.
6.  If the commission shall make any order or direction as provided in
  subdivision five of this section, the person aggrieved thereby shall  be
  given notice of the time and place of a hearing before the commission at
  which  the  commission  will  hear such person in reference thereto. The
  action of the commission in making any such order or direction shall  be
  reviewable  in  the  courts of this state in the manner provided by, and
  subject to the provisions of article seventy-eight of the civil practice
  law and rules.
7. Upon application of the commission, the supreme court of this state
  shall have jurisdiction to issue  final  orders,  on  notice  and  after
  hearing,  commanding  any  person  to  comply with the provisions of the
  orders or directions issued by the commission under subdivision five  of
  this section.
8.  In  case of conflict between this section and article eight of the
  uniform commercial code, this section shall control.