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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to racing and wagering
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.694
- Reported and committed to finance
- Referred to racing, gaming and wagering
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.