§ 502 — Establishment of regional off-track betting corporations

New York § 502

• Jurisdiction: New York
• Law PML: Racing, Pari-Mutuel Wagering and Breeding Law
• Art. 5: Regional Off-track Betting Corporations

Text

§ 502. Establishment of regional off-track betting corporations. 1. A\nregional off-track betting corporation is hereby established for each\nregion, except the New York city region for which the New York city\noff-track betting corporation established pursuant to and subject to\narticle six of this chapter shall constitute the regional corporation\nand such article six shall govern such New York city off-track betting\ncorporation. Each regional corporation shall be a body corporate and\npolitic constituting a public benefit corporation. Each corporation\nshall be administered by a board of directors consisting of two members\nfrom each participating county containing a city of over one hundred\nfifty thousand in population, according to the last federal census, and\none member from each other participating county. Notwithstanding any\nother provision of law to the contrary, the members shall be appointed\nby the county governing body, and may, at the discretion of such\ngoverning body of counties which have a population of less than two\nhundred thousand, include sitting members of such governing body. A\nmember of a governing body who is appointed a director after July first,\nnineteen hundred ninety shall not be compensated by the regional\ncorporation; provided, however, that the mayor of a city of over one\nhundred fifty thousand that has elected to participate in the management\nof a corporation pursuant to subdivision two of this section shall, with\nthe approval of the city's legislative body, appoint one of the members\nto which the county containing such city is entitled. In the case of the\ncorporation established for the Suffolk region and Nassau region, the\nboard of directors of each corporation shall consist of three members\nappointed by the governing body of each county, not more than two of\nwhom shall be members of the same political party. Each director shall\nserve at the pleasure of the governing body or mayor appointing him, as\nthe case may be. A chairman shall be elected by the members to serve a\nterm of one year.\n 2. A city with a population of more than one hundred fifty thousand,\naccording to the last federal census, may elect to participate in the\nmanagement and revenues of a regional corporation if the county in which\nsuch city is located has elected to become a participating county. Such\nelection shall be by enabling legislation. Upon such election, such city\nshall participate in the amount of any loans or contributions made or to\nbe made by the participating county containing the city to the\ncorporation, pursuant to section five hundred six of this article, in\nthe proportion that such city will participate in net revenues payable\nto such county or such other equitable arrangement as shall be approved\nby the commission.\n 3. Upon the passage of enabling legislation by the governing body of\nnot less than three counties within a region representing not less than\nthirty percent of the population of such region, as determined by the\nlast federal census, or in the case of the Suffolk region, upon the\npassage of enabling legislation by the governing body of Suffolk county,\nor in the case of the Nassau region, upon the passage of enabling\nlegislation by the governing body of Nassau county, or in the case of\nthe Mid-Hudson region upon the passage of enabling legislation by the\ngoverning body of the county of Westchester and of the governing body of\none other county in such region, and following the appointment of\nmembers of the board of directors, such corporation shall file with the\nsecretary of state and with the commission a certificate setting forth:\n a. The date of passage of the enabling legislation;\n b. The name of the agency, which shall be the name of the region\nfollowed by the words "regional off-track betting corporation"; and\n c. The names of the members of the board of directors and the chair.\n 4. Each of the counties of the region that has not become a\nparticipating county at the time of filing of the certificate required\nby subdivision three of this section may do so by enacting enabling\nlegislation, a duly certified copy of which must be filed with the board\nof directors, the commission, the secretary of state and the county\nclerk of each participating county. In the event that a county elects to\nparticipate after June first, nineteen hundred ninety, the effective\ndate of approval by the commission shall not be earlier than the date\nthat branch offices are established and operating. If, at the time of\nsuch election, the commission has approved a plan of operation for the\ncorporation, a county may not become a participating county without\napproval by the commission of a modified feasibility study and amended\nplan of operation which shall be submitted by the corporation to the\ncommission pursuant to section five hundred twenty-one of this chapter.\n If the participating counties in the region have contributed or loaned\nfunds or other consideration to the corporation, the board of directors\nmay require that any county subsequently electing to become a\nparticipating county make such contributions in the same proportion, if\nany, as may have governed such contributions or loans by participating\ncounties. Any dispute as to the value of consideration or as to a\ncontribution required by the board of directors shall be resolved by the\ncommission.\n 5. a. If the certificate required by subdivision three of this section\nis not filed by December thirty-first, nineteen hundred seventy-five,\nthe corporate existence of a corporation shall terminate, but otherwise,\neach corporation and its corporate existence shall continue until\nterminated by law; provided, however, that no such law shall take effect\nso long as the corporation shall have bonds, notes or other obligations\noutstanding. Upon termination of the existence of the corporation all of\nits rights, property, assets and funds shall thereupon vest in and be\npossessed by the participating counties in the same proportion such\nproperty, assets and funds may have been contributed by each county or\naccording to the manner in which the revenues of the corporation are\ndistributed pursuant to section five hundred sixteen of this article, or\nany combination of both such methods, as the commission shall determine.\n b. Notwithstanding the provisions of paragraph a of this subdivision,\nthose counties comprising the Central region prior to January first,\nnineteen hundred seventy-four, even though such counties are included in\noff-track betting regions other than the Central region, shall have\nuntil December thirty-first, nineteen hundred eighty-two to file the\ncertificate required by subdivision three of this section.\n 6. Each director shall continue to serve until the appointment and\nqualification of his successor.\n 7. The directors shall be removable for cause by the commission, upon\ncharges and after a hearing.\n 8. The powers of the corporation shall be vested in and exercised by\nthe board of directors at a meeting duly held at a time fixed by any\nby-law adopted by the board, or at any duly adjourned meeting of such\nmeeting or at any meeting held upon reasonable notice to all of the\ndirectors, or upon written waiver thereof, and a majority of the whole\nnumber of directors shall constitute a quorum; provided that neither the\nbusiness nor the powers of the corporation shall be transacted or\nexercised except pursuant to the favorable vote of at least a majority\nof the directors present at a meeting at which a quorum is in\nattendance.\n 9. The board of directors may delegate to one or more of the\ndirectors, officers, agents or employees of the corporation such powers\nand duties as it may deem proper.\n 10. a. The directors may receive a sum of two hundred fifty dollars\nfor each day or part thereof spent in attendance at meetings held in\naccordance with subdivision eight of this section, but not to exceed\ntwenty-five hundred dollars during any one year.\n b. The directors may receive a sum of one hundred dollars for each day\nor part thereof at meetings other than those defined in subdivision\neight of this section or otherwise in the work of the corporation;\nprovided that such activities are approved by the board as a whole. Such\nadditional expenses shall not exceed fifteen hundred dollars in any\ncalendar year.\n c. The chairman of the board elected in accordance with subdivision\none of this section shall receive additional compensation of one\nthousand dollars per year to cover those expenses and activities\nassociated with such office.\n d. In addition, the directors shall be reimbursed for their actual and\nnecessary expenses incurred in the performance of their official duties.\n e. Any expenses incurred by a director in excess of those authorized\nby paragraph d of this subdivision shall be the responsibility of the\nappointing political subdivision, payable on vouchers certified or\napproved by the chief fiscal officer of such political subdivision as is\nprovided by law.\n 11. The directors may engage in outside employment or in a profession\nor business unless otherwise prohibited from doing so by virtue of\nholding another public office subject to the provisions of article\neighteen of the general municipal law. For the purposes of such article\neighteen, the corporation shall be a "municipality" and a director shall\nbe a "municipal officer."\n 12. a. The board of directors shall hold an annual meeting and meet\nnot less than quarterly.\n b. Each board member shall receive, not less than seven days in\nadvance of a meeting, documentation necessary to ensure knowledgeable\nand engaged participation. Such documentation shall include material\nrelevant to each agenda item including background information of\ndiscussion items, resolutions to be considered and associated documents,\na monthly financial statement which shall include an updated cash flow\nstatement and aged payable listing of industry payables, financial\nstatements, management reports, committee reports and compliance items.\n c. Staff of the corporation shall annually submit to the board for\napproval a financial plan accompanied by expenditure, revenue and cash\nflow projections. The plan shall contain projection of revenues and\nexpenditures based on reasonable and appropriate assumptions and methods\nof estimations, and shall provide that operations will be conducted\nwithin the cash resources available. The financial plan shall also\ninclude information regarding projected employment levels, collective\nbargaining agreements and other actions relating to employee costs,\ncapital construction and such other matters as the board may direct.\n d. Staff of the corporation shall prepare and submit to the board on a\nquarterly basis a report of summarized budget data depicting overall\ntrends, by major category within funds, of actual revenues and budget\nexpenditures for the entire budget rather than individual line items, as\nwell as updated quarterly cash flow projections of receipts and\ndisbursements. Such reports shall compare revenue estimates and\nappropriations as set forth in such budget and in the quarterly revenue\nand expenditure projections submitted therewith, with the actual\nrevenues and expenditures made to date. Such reports shall also compare\nactual receipts and disbursements with the estimates contained in the\ncash flow projections, together with variances and their explanation.\nAll quarterly reports shall be accompanied by recommendations from the\npresident setting forth any remedial action necessary to resolve any\nunfavorable budget variance including the overestimation of revenues and\nthe underestimation of appropriations. These reports shall be completed\nwithin thirty days after the end of each quarter and shall be submitted\nto the board by the corporation comptroller.\n e. Revenue estimates and the financial plan shall be regularly\nreexamined by the board and staff and shall provide a modified financial\nplan in such detail and within such time periods as the board may\nrequire. In the event of reductions in such revenue estimates, the board\nshall consider and approve such adjustments in revenue estimates and\nreductions in total expenditures as may be necessary to conform to such\nrevised revenue estimates or aggregate expenditure limitations.\n 13. The fiscal year of the corporation shall be the calendar year.\n 14. A general manager, who shall be the chief executive officer of the\ncorporation, shall be in charge of the administration of its affairs. He\nshall perform his duties as chief executive officer, together with any\nother duties assigned to him by the corporation, under its direct\nsupervision and control and shall give full time to such duties.\n 15. Any person prohibited by any law or rule from accepting\ncompensation described in subdivision ten of this section shall\nnonetheless be permitted to serve as a director provided said person\nwaives his compensation.\n 16. Notwithstanding any inconsistent provision of this chapter or any\nother law, any director, administrator, or other employee of a\ncorporation may be issued and hold any license issued by the commission.\n