§ 307 — Licenses for harness race meetings

§ 307. Licenses for harness race meetings. 1. Any association or\ncorporation desiring to conduct harness race meetings at which\npari-mutuel betting shall be permitted may apply annually to the\ncommission for a license so to do. If, in the judgment of the commission\nthe public interest, convenience or necessity will be served thereby and\na proper case for the issuance of such license is shown consistent with\nthe purposes of sections two hundred twenty-two through seven hundred\nfive of this chapter and the best interests of racing generally, it may\ngrant such license for a term ending not later than the thirty-first day\nof December next succeeding the granting thereof, specifying dates and\nhours during which and the place where the licensee may operate;\nprovided, however, that any harness racetrack which applies to the\ncommission for permission to make one or more capital improvements may,\nin connection with such application or before or after such application,\nalso apply to the commission for, and the commission shall, as an\ninducement for or in recognition of the making of such capital\nimprovement, grant a capital improvement license, which may be\nconditioned on the completion of the capital improvement if not yet\nmade, for a period of not more than twenty-five years, but in no event\nfor a period longer than is necessary to amortize any loan for capital\nimprovements and shall specify for each year of the term of said license\nthe minimum number of days on which, and the minimum number of hours on\neach such day, and the places where said licensee may conduct such\nharness race meetings at which pari-mutuel betting shall be permitted.\nSuch a capital improvement license shall be issued if in the judgment of\nthe commission the public interest, convenience or necessity will be\nserved thereby and a proper case for the issuance of such a license is\nshown consistent with the purposes of sections two hundred twenty-two\nthrough seven hundred five of this chapter and the best interests of\nracing generally, and in determining the period and other terms of such\ncapital improvement license, the commission shall be guided by the\nnature of the capital improvement and the cost thereof. Such capital\nimprovement license shall automatically expire, irrespective of the term\nthereof, when the loan of funds upon which it has been issued, has been\npaid off by the licensee. Where a capital improvement license is\ngranted, the commission shall specify annually the dates on which, but\nnot beyond the thirty-first day of December, and hours during which such\nlicensee may operate, at the places and for the full number of days and\nhours specified in its capital improvement license.\n 2. Every such license shall be issued upon condition:\n a. that every harness horse race meeting at which pari-mutuel betting\nis conducted shall be subject to the supervision of and to the\nreasonable rules and regulations from time to time prescribed by the\ncommission, and\n b. that pari-mutuel betting conducted thereunder shall also be subject\nto the supervision of and to the reasonable regulations from time to\ntime prescribed by the department of taxation and finance. Any such\nlicense may also be issued upon any other condition that the commission\nshall determine to be necessary or desirable to insure that the public\ninterest, convenience or necessity is served.\n 3. Applications for licenses shall be in such form as may be\nprescribed by the commission and shall contain such information or other\nmaterial or evidence as the commission may require. Each application for\nrenewal of a license shall be deemed to be an application for a new\nlicense. The fee for such licenses shall be one hundred dollars for each\nracing day payable in installments in advance of each week's racing\nwhich sums shall be paid into the general fund of the state treasury by\nthe commission. The term "racing week" shall include those days as\ndefined by the rules and regulations of the commission.\n 4. In considering an application for a license under this section the\ncommission may give consideration to the number of licenses already\ngranted and to the location of the tracks previously licensed. No such\nlicense shall be granted to any track which has not conducted\npari-mutuel harness racing during at least ten calendar years and which\nis located within ten miles of a state, county or town fair conducting\nharness racing for the three consecutive years immediately preceding\nApril second, nineteen hundred fifty-three, which license shall be\noperative during the racing dates of such fair, unless the association,\ncorporation or society conducting such fair shall affirmatively waive\nobjection to the issuance of such license for dates within such period.\nNo such license shall be granted to any track located within the\ncorporate limits of a city of the first class. No such license shall be\ngranted to any harness horse racetrack located within twenty-five miles\nof any track already licensed for the same dates and hours except with\nthe consent of the licensee located within such twenty-five mile area.\n 5. The commission may refuse to grant a license to an association or\ncorporation if it shall determine that:\n a. Any officer, director, member or stockholder of such association or\ncorporation applying for a license, or of any association or corporation\nthat owns stock in or shares in the profits, or participates in the\nmanagement, of the affairs of such applicant, or that leases to such\napplicant the track where such applicant will operate has:\n (i) been convicted of a crime involving moral turpitude;\n (ii) engaged in bookmaking or other forms of illegal gambling;\n (iii) been found guilty of any fraud or misrepresentation in\nconnection with racing or breeding;\n (iv) been guilty of any violation or attempt to violate any law, rule\nor regulation of any racing jurisdiction for which suspension from\nracing might be imposed in such jurisdiction;\n (v) violated any rule, regulation or order of the commission; or\n b. The experience, character or general fitness of any officer,\ndirector or stockholder of any of the aforesaid associations or\ncorporations is such that the participation of such person in harness\nracing or related activities would be inconsistent with the public\ninterest, convenience or necessity or with the best interests of racing\ngenerally; but if the commission determines that the interest of any\nstockholder referred to in this paragraph or in paragraph a of this\nsubdivision is insufficient in the opinion of the commission to affect\nadversely the conduct of pari-mutuel harness racing by such association\nor corporation in accordance with the provisions of this article, the\ncommission may disregard such interest in determining whether or not to\ngrant a license to such association or corporation; or\n c. The applicant is not the owner of the track at which it will\nconduct pari-mutuel harness racing pursuant to the license applied for,\nor that any person, firm, association or corporation other than the\napplicant shares, or will share, in the profits of the applicant, other\nthan by dividends as a stockholder, or participates or will participate\nin the management of the affairs of the applicant.\n 5-a. The commission shall not issue a license pursuant to this section\nto any harness racing association or corporation that does not apply to\nconduct at its facilities a minimum number of pari-mutuel programs and\npari-mutuel races at its facilities equal to at least seventy-five\npercent of the programs and races so conducted during nineteen hundred\neighty-five or during nineteen hundred eighty-six, or one hundred\npercent of the programs and races so conducted during two thousand,\nwhichever is greater; provided, however, that for a harness racing\nassociation or corporation located in Westchester and Erie counties,\nsuch minimum number of pari-mutuel programs and pari-mutuel races at its\nfacilities shall equal at least one hundred percent of the programs and\nraces conducted during two thousand. If the track did not conduct races\nduring two thousand, such minimum number of pari-mutuel programs and\npari-mutuel races at its facilities shall equal at least ninety percent\nof the programs and races conducted during two thousand at Buffalo\nraceway, in the town of Hamburg and county of Erie, unless cancellation\nof a race day because of an act of God, that the commission approves or\nbecause of weather conditions that are unsafe or hazardous that the\ncommission approves shall not be construed as a failure to conduct a\nrace day; provided further, the commission shall not grant a license to\nsuch association or corporation upon application unless such programs\nand races are conducted during the same calendar year period as were\nconducted during the applicable period above used to measure the minimum\nnumber of pari-mutuel programs and pari-mutuel races, as approved by the\ncommission. Nothing in the foregoing paragraph shall affect any\nagreement in effect on or before the effective date of this paragraph.\nThe commission may grant a license to such association or corporation to\nconduct fewer such programs and races for good cause shown due to\nfactors beyond the control of such association or corporation, and upon\nconsent of the representative horsemen's association, as determined\npursuant to section three hundred eighteen of this article.\n 5-b. Notwithstanding any inconsistent provision of subdivision five-a\nof this section and article ten of this chapter, where the commission\ncertifies by December first of the proceeding year that the number of\nstandardbred horses eligible for competition is less than that of the\nbase year as defined in subdivision five-a of this section, and only if\nthe authorized horsemen's association concurs as evidenced by a written\nagreement between the track and the horsemen's association, a licensee\npursuant to this section may submit and the commission may accept a\nlicense application requesting a reduced number of race dates where it\nis in the best interest of racing within this state and provided that\nthe licensee shall not be penalized or required by the commission to\ndiminish simulcasting activities or incur an increased tax liability as\na result of a commission-sanctioned reduction in its live racing\nactivity under this subdivision.\n 6. The commission shall also have power to refuse to grant a license:\n a. to any association or corporation, the charter or certificate of\nincorporation of which fails to contain a provision requiring any\nstockholder, upon written demand of the association or corporation, to\nsell his, her or its stock to the association or corporation at a price\nto be fixed in the manner otherwise provided by law, provided such\ndemand be made pursuant to written direction of the commission; and from\nand after the date of the making of such demand, prohibiting the\ntransfer of such certificate of stock, except to the association or\ncorporation; or\n b. to any association or corporation that, having been a licensee, has\nfailed in the opinion of the commission to properly maintain its track\nand plant in good condition or has failed to make adequate provision for\nrehabilitation and capital improvements to its track and plant.\n 7. Pending final determination of any question under this section, the\ncommission may issue a temporary license upon such terms and conditions\nas it may deem necessary, desirable or proper to effectuate the\nprovisions of sections two hundred twenty-two through seven hundred five\nof this chapter.\n 8. Notwithstanding any other provision of this article, the commission\nmay, no more than once in any calendar year, grant a license to any\nauthorized harness racing association or corporation to hold and conduct\none additional harness race meeting of not more than seven days\nduration, with pari-mutuel betting, on any mile track within this state,\nto enable said authorized harness racing association or corporation to\nconduct a special stakes race not limited to the Hambletonian stakes and\nassociated events.\n 9. The commission shall have power to direct that every certificate of\nstock of an association or corporation licensed under the provisions of\nsections two hundred twenty-two through seven hundred five of this\nchapter shall bear a legend plainly and prominently imprinted upon the\nface of the certificate reading: "This certificate of stock is\ntransferable only subject to the provisions of section three hundred\nthree of the racing, pari-mutuel wagering and breeding law".\n 10. Notwithstanding the provisions of section three hundred twenty-one\nof this article, the refusal of an application for such license shall be\npreceded by notice and an opportunity to be heard. In the conduct of\nsuch hearing the commission shall not be bound by technical rules of\nevidence but all evidence offered before the commission shall be reduced\nto writing, and such evidence together with the exhibits, if any, and\nthe findings of the commission, shall be permanently preserved and shall\nconstitute the record of the commission in such case. Such hearing may\nbe presided over by the chair of the commission or by any member or by\nan officer of the commission designated by the chair in writing to act\nas hearing officer and such person or persons may issue subpoenas for\nwitnesses and administer oaths to witnesses. The hearing officer, at the\nconclusion of the hearing shall make findings which, if concurred in by\na majority of the commission, shall become the findings of the\ncommission. The action of the commission in refusing a license shall be\nreviewable in the supreme court in the manner provided by the provisions\nof article seventy-eight of the civil practice law and rules.\n