What's happening
This bill allows recognized horsemen's organizations to use certain trust funds as collateral for securing workers' compensation insurance.
Why it matters
Allows recognized horsemen's organizations to use specific trust funds as collateral for workers' compensation insurance. , which could help them negotiate better insurance terms or access loss-sensitive programs that may reduce insurance costs over time.
Establishes a safeguard by requiring mutual agreement between the horsemen's organization and the franchised corporation. on how much money is set aside each year, ensuring both parties have input and oversight regarding the use of these funds.
Creates a clear mechanism for returning funds to their original accounts. if they are no longer needed as collateral, protecting the interests of horsemen by ensuring their money isn't indefinitely tied up and can be repurposed for other uses.
May help stabilize or reduce the financial burden of workers' compensation on horse owners and trainers. , potentially making participation in New York horse racing more viable and sustainable, especially for smaller operations.
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Who cares
Recognized horsemen’s organization
The bill would let it use a separate trust account solely as collateral for workers’ compensation coverage, including loss-sensitive programs.
Franchised racing corporation
It would have to establish and maintain the separate account, with annual deposits beginning in 2018 in amounts agreed upon with the recognized horsemen’s organization.
New York Jockey Injury Compensation Fund, Inc
The bill would authorize it to use up to $2 million from the horsemen’s trust account for 2018 annual costs without counting that money against the cap on owners’ purse deductions.
- Likely support
Horse owners and trainers
They pay the fund’s assessments, and the bill would allow money from the horsemen’s trust account to support annual costs and secure workers’ compensation coverage.
Headline styles
Let Horse Funds Secure Insurance
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 42
1 Co-sponsor
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.634
- Print number 7745a
- Amend (t) and recommit to racing, gaming and wagering
- Referred to racing, gaming and wagering
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Horsemen Use Trust Funds
In Assembly Committee · Racing And Wagering · Sponsor J. Gary Pretlow
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7745--A
IN SENATE
February 14, 2018
Introduced by Sens. BONACIC, MARCHIONE -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wagering -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part SS of chapter 59 of the laws of 2017, is amended to read as follows:
In order to pay the costs of the insurance required by this section and by the workers' compensation law and to carry out its other powers and duties and to pay for any of its liabilities under section fourteen-a of the workers' compensation law, the New York Jockey Injury Compensation Fund, Inc. shall ascertain the total funding necessary and establish the sums that are to be paid by all owners and trainers licensed or required to be licensed under section two hundred twenty of this article, to obtain the total funding amount required annually. In order to provide that any sum required to be paid by an owner or trainer is equitable, the fund shall establish payment schedules which reflect such factors as are appropriate, including where applicable, the geographic location of the racing corporation at which the owner or trainer participates, the duration of such participation, the amount of any purse earnings, the number of horses involved, or such other factors as the fund shall determine to be fair, equitable and in the best interests of racing. In no event shall the amount deducted from an owner's share of purses exceed two per centum; provided, however, for two thousand [seventeen] eighteen the New York Jockey Injury Compensation Fund, Inc. may use up to two million dollars from the account established pursuant to subdivision nine of section two hundred eight of this arti-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14725-02-8
S. 7745--A 2
cle to pay the annual costs required by this section and the funds from such account shall not count against the two per centum of purses deducted from an owner's share of purses. The amount deducted from an owner's share of purses shall not exceed one per centum after April first, two thousand twenty. In the cases of multiple ownerships and limited racing appearances, the fund shall equitably adjust the sum required.
§ 2. Paragraph (a) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part PP of chapter 60 of the laws of 2016, is amended to read as follows:
(a) The franchised corporation shall maintain a separate account for all funds held on deposit in trust by the corporation for individual horsemen's accounts. Purse funds shall be paid by the corporation as required to meet its purse payment obligations. Funds held in horsemen's accounts shall only be released or applied as requested and directed by the individual horseman. For two thousand [sixteen] eighteen the New York Jockey Injury Compensation Fund, Inc. may use up to two million dollars from the account established pursuant to this subdivision to pay the annual costs required by section two hundred twenty-one of this article.
§ 3. Paragraph (c) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law is relettered paragraph (e) and two new paragraphs (c) and (d) are added to read as follows:
(c) The franchised corporation shall establish and maintain a separate account for funds to be held on deposit in trust by the franchised corporation for the horsemen's organization recognized pursuant to section two hundred twenty-eight of this article. Starting in two thousand eighteen and annually thereafter, funds from the account established pursuant to this subdivision shall be deposited in the separate account established under this paragraph in an amount to be agreed upon by the franchised corporation and the horsemen's organization recognized pursuant to section two hundred twenty-eight of this article. Funds held in this account shall be used by the appropriately recognized horsemen's organization solely as collateral to secure workers' compensation insurance coverage, including loss sensitive programs, including through the New York Jockey Injury Compensation Fund, Inc.
(d) In the event the horsemen's organization recognized pursuant to section two hundred twenty-eight of this article determines that the funds are no longer needed as collateral to secure workers' compensation insurance coverage, then, upon agreement by the franchised corporation and the appropriately recognized horsemen's organization, funds in the separate account established under paragraph (c) of this subdivision shall be returned to the account established pursuant to this subdivision.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the racing, pari-mutuel wagering and breeding law, in relation to funds held in trust by a franchised corporation for a recog- nized horsemen's organization to be used as collateral to secure work- ers' compensation insurance coverage
Purpose
This bill would enable the establishment of a separate account to be held on deposit in trust by the New York Racing Association (NYRA) for the New York Thoroughbred Horsemens' Association (NYTHA). Starting in 2018 and annually thereafter, funds from the NYRA unpaid purse cushion, in an amount to be agreed upon by NYRA and NYTHA, would be transferred to this account. Funds held in this account would be used by NYTHA sole- ly as collateral to secure workers' compensation insurance coverage, including loss sensitive programs, including through the NYJICF.
This bill also would permit the New York Jockey Injury Compensation Fund (NYJICF) in 2018 to continue to use up to two million dollars from the NYRA unpaid purse cushion account without such funds counting against the two per cent of purses that may be deducted from any owner's share of purses to pay for the cost of workers' compensation insurance procured by the NYJICF.
Read the full memo (707 words)
Summary of provisions
Sections 1 & 2: Amend the opening paragraph of Subdivision 7 of Section 221 of the Racing, Pari-Mutuel Wagering and Breeding Law and Paragraph (a) of Subdivision 9 of Section 208 of the Racing, Pari-Mutuel Wagering and Breeding Law to enable the NYJICF to continue in 2018 to use up to $2 million dollars from the NYRA unpaid purse cushion account to help pay for the cost of workers' compensation insurance procured by the NYJICF, without such unused purse cushion funds counting against the two per cent of purses deducted from any owner's share of purses to pay for such workers' compensation insurance coverage.
Section 3: Renumbers paragraph (c) of Subdivision 9 of Section 208 of the Racing, Pari-Mutuel Wagering and Breeding Law and adds new para- graphs (c) and (d) of Section 208 of the Racing, Pari-Mutuel Wagering and Breeding Law to enable the establishment of a separate account to be held on deposit in trust by NYRA for NYTHA, with funds from such account being used by NYTHA solely as collateral to secure workers' compensation insurance coverage, including loss sensitive programs, including through the NYJICF. In 2018 and annually thereafter, funds from the NYRA unpaid purse cushion, in an amount to be agreed upon by NYRA and NYTHA, would be transferred to this account.
Section 4: Effective date.
Justification
In 2017, Racing, Pari-mutuel Wagering and Breeding Law § 221(6)(b) was amended to authorize the NYJICF, upon the approval of the Gaming Commis- sion, to elect to self-insure its workers' compensation insurance obli- gations. However, to self-insure its workers' compensation insurance obligations, the NYJICF must either place on deposit a significant amount of cash or obtain a letter of credit. Therefore, NYTHA seeks authority to transfer funds from the NYRA unpaid purse cushion account, in an amount agreed upon by NYRA and NYTHA, to a new fund to be able to use this funding as collateral to secure workers' compensation insurance coverage.
In addition, to pay the cost of the workers' compensation insurance procured by the NYJICF, the NYJICF prepares an annual assessment plan, which is subject to Gaming Commission review and approval. For 2016 and 2017, the NYJICF was granted the authority to use up to $2 million dollars from the NYRA unpaid purse cushion account to be used by the NYJICF to help pay for the workers' compensation insurance that it procures. The NYJICF drew down $1,806,787 in 2016 and $1,546,705 in 2017,which represents over a $260,000 decrease year-over-year. For 2018, the NYJICF seeks continued authority to use up to $2 million dollars from such NYRA unpaid purse cushion.
If enacted, this bill will make racing in New York State more compet- itive with other states in the short-term, as well make it possible for the NYJICF to self-insure its workers' compensation insurance obliga- tions-a potential long-term solutions to help reduce the costs of the NYJICF-procured workers' compensation insurance coverage.
Legislative history
New bill.
Fiscal implications
None to state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.