Relates to the members of the franchise oversight board and the duties and responsibilities of such board

Title of bill

An act to amend the racing, pari-mutuel wagering and breeding law, in relation to the franchise oversight board

Purpose

To provide that no former or current director or officer of New York city off-track betting corporation ("NYC OTB") shall be appointed as a member of the FOB and to extend the oversight functions of the board to apply to the NYC OTB.

Summary of provisions

Amends subdivision 3 of Section 212 of the Racing, Pari-Mutuel Wagering and Breeding law to provide that no former or current director of NYC OTB shall be appointed as a member to the FOB.

Amends subdivision 8 of section 212 of the Racing, Pari-Mutuel Wagering and Breeding law to add to the powers of the FOB and give the authorization to exercise the identical oversight and approval functions that are assigned to the board concerning virtually all activities of the New York Racing Association also over the NYC OTB.

Amends subdivision 8 of section 212 of the Racing, Pari-mutuel and Breeding law to provide that NYC OTB shall transfer all wagering accounts to the franchise oversight board. Upon such transfer to the FOB, a public bidding process would be undertaken to award the ability to conduct and manage account wagering to a third party. Any management fee derived from such management would be dedicated to any outstanding obligations and/or liabilities NYC OTB has to its unionized workforce pursuant to collective bargaining agreements or otherwise.

Justification

There are no specific provisions for any agency or entity of the state to oversee all operations of the NYC OTB corporation. For forty some years, the NYC OTB has operated as an independent public benefit corporation answering in large measure (with the exception of some racing and wagering board powers) to no officially established panel with the authority to make determinations to approve or disapprove many of OTB's functions. By assigning such authority to the franchise oversight board, NYC OTB as a state owned public benefit corporation will have a state established entity reviewing its policies, capital and operating plans, simulcasting and other contracts, as well as budgets.

Legislative history

New bill.

Fiscal implications

None. However, there is a potential to increase revenues to the state under a new more efficient NYC OTB business plan.

Effective date

This act shall take effect upon the confirmation of the New York Racing Association plan of reorganization pursuant to section 16 of chapter 18 of the laws of 2008, as amended; provided further, that the amendments to section 212 of the racing, pari-mutual wagering and breeding law made by section one of this act shall be deemed repealed as provided by chapter 354 of the laws of 2005, as amended.