Relates to the imposition of fines

Title of bill

An act to amend the racing, pari-mutuel wagering and breeding law, in relation to the imposition of fines

Purpose

This bill empowers the Racing and Wagering Board (Board) to impose fines on off-track betting (OTB) corporations and other persons or corporations participating in off-track betting.

Summary of provisions

Section 1 of this bill adds a new subdivision 4 to Racing, Pari-Mutuel Wagering and Breeding (Racing) Law § 522 to empower the Board to impose monetary fines upon any person, corporation or association participating in any way in off-track betting, for violation of any provision of the Racing Law, Board rules or orders, or the approved plan of operation for the conduct of off-track betting.

Section 2 of the bill contains the effective date.

Existing law

Article V-a (off-track pari-mutuel betting) provides only one method for the imposition of sanctions for a violation of the statute, Board rules or the approved plan of operation by an off-track betting corporation or its employees, except in relation to simulcasting. That method is to suspend the OTB corporation's plan of operation.

Legislative history

This is a new bill.

Statement in support

The harness, quarterhorse and simulcast articles of the Racing Law contain explicit authorization (Sections 310,410 and 1005) for the imposition of fines up to $5,000 upon entities and individuals participating in pari-mutuel racing. The current system of sanctions to insure compliance with the off-track betting provisions of the law is impracticable. Termination of all corporate operations' or a portion thereof, with the resulting loss of revenues to all segments of the racing industry, as well as State and local governments, is a drastic action that could be taken in only the most serious instances. The power to fine is the most practical enforcement method in racing and exists in all other racing jurisdictions.

In order to enable the Board to properly discharge its oversight, supervisory and regulatory functions, additional alternative sanctions should be available to the Board directly within Article V-a. This proposal would remedy an adverse court determination that sustained a challenge to a fine on the basis that the Board did not have the power to fine OTB corporations for other than Article X (simulcasting) violations. The maximum fine would be $50,000 for each violation, to be paid into the State treasury. The imposition of a fine would be subject to appeal provisions and would be reviewable in court.

Budget implications

The fines provided for by this bill might raise a limited amount of revenue for the State.

Effective date

This bill would take effect immediately.