N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 107: Conflicts prohibited

§ 107. Conflicts prohibited. 1. No person shall be appointed to or

employed by the commission if, during the period commencing three years

prior to appointment or employment, such person held any direct or

indirect interest in, or employment by, any corporation, association or

person engaged in gaming activity within the state. Prior to appointment

or employment, each member, officer or employee of the commission shall

swear or affirm that he or she possesses no interest in any corporation

or association holding a franchise, license, registration, certificate

or permit issued by the commission. Thereafter, no member or officer of

the commission shall hold any direct interest in or be employed by any

applicant for or by any corporation, association or person holding a

license, registration, franchise, certificate or permit issued by the

commission for a period of four years commencing on the date his or her

membership with the commission terminates. Further, no employee of the

commission may acquire any direct or indirect interest in, or accept

employment with, any applicant for or any person holding a license,

registration, franchise, certificate or permit issued by the commission

for a period of two years commencing at the termination of employment

with the commission. The commission may, by resolution adopted by

unanimous vote at a properly noticed public meeting, waive for good

cause the pre-employment restrictions enumerated in this subdivision for

a prospective employee whose duties and responsibilities are primarily

on racetrack grounds. Such adopted resolution shall state the reasons

for waiving the pre-employment conditions for the prospective employee,

including a finding that there were no other qualified candidates with

the desired experience for the specified position.

2. No member, officer, official or employee of the commission shall

participate as an owner of a horse or otherwise as a contestant in any

horse race at a race meeting which is under the jurisdiction or

supervision of the commission, or have any pecuniary interest, direct or

indirect, in the purse, prize, premium or stake contested for at any

such horse race or in the operations of any licensee of the commission

or state racing franchisee. Participation as an owner of a horse or

otherwise as a contestant in any such horse race by a member, officer,

other official or employee of the commission in violation of this

prohibition shall terminate the term of his or her office as a member,

or his or her services as an officer or official or employee of the

commission.

3. No member, officer or employee of the commission shall wager upon

gaming or horse racing activity conducted within the state.

4. No individual employed by an off-track betting corporation or race

track licensed pursuant to this chapter as a pari-mutuel clerk, cashier

or seller shall be permitted to wager upon gaming activity during any

period of a day on which such person is employed in such capacity.

5. No public officer or party officer shall hold any racing or video

lottery gaming license from the commission.

6. The following public employees are prohibited from holding any

license from the commission:

(a) an employee of the commission; any director or employee of a

regional off-track betting corporation employed in a management,

confidential or supervisory capacity for purposes of their position with

off-track betting; or

(b) an employee of the state legislature; provided, however, that an

employee of the state legislature whose duties in such position do not

relate to gaming activities shall not be subject to the prohibitions of

this section if he or she held a license from the former state racing

and wagering board while employed by the state legislature prior to July

first, nineteen hundred eighty; or

(c) an employee of any local legislative body whose duties involve

gaming activities; or

(d) an employee of any state or local board, agency, authority or

other state or local governmental body, the duties of which relate to

gaming activities or the taxation thereof.

7. No public officer, public employee or party officer shall:

(a) own or hold, directly or indirectly, any proprietary interest,

stock or obligation of any firm, association or corporation (i) which is

licensed by the commission to conduct video lottery gaming or horse

racing activities, or (ii) which conducts its occupation, trade, or

business at a racetrack at which pari-mutuel race meets are conducted or

facility where video lottery gaming activity is conducted whether or not

a license is required, or (iii) which owns or leases to any enfranchised

or licensed association or corporation a racetrack at which pari-mutuel

racing is conducted or facility where video lottery gaming activity is

conducted, or (iv) which participates in the management of any franchise

holder or licensee conducting video lottery gaming or horse racing

activities; or

(b) hold any office or employment with any firm, association or

corporation specified in paragraph (a) of this subdivision, except as

provided in subdivision eight of this section; or

(c) sell, or be a member of a firm, or own ten per centum or more of

the stock of any corporation, which sells any goods or services to any

firm, association or corporation specified in paragraph (a) of this

subdivision. For purposes of this subdivision, a direct or indirect

interest shall not include an interest in a mutual fund or any other

diversified investments over which the recipient does not know the

identity of the primary source of income.

8. The provisions of paragraph (b) of subdivision seven of this

section shall not apply to a public employee other than an employee of

the commission, a police officer or a peace officer employed by a

sheriff's office, district attorney's office or other state or local law

enforcement agency, or those employees classified as management

confidential employees pursuant to section two hundred fourteen of the

civil service law who are employed by a state or local law enforcement

agency or regional off-track betting corporation; provided, however,

that employment of employees of a political subdivision may be

prohibited by ordinance, resolution or local law adopted by the local

legislative body or other governing board of such political subdivision.

9. The commission shall have the power to refuse to grant or to revoke

or suspend a license of any person, association or corporation that aids

or knowingly permits or conspires to permit any public officer, public

employee or party officer to acquire or retain any interest prohibited

by this section and shall have the power to exclude from the grounds of

any racing association any such person, association or corporation.

10. Notwithstanding any other provision of law, and in addition to any

other cause of removal provided by law, an intentional violation of this

section shall be cause for removal from public office, public employment

or party office. In any such case, such public officer, public employee

or party officer violating this section shall be removed from office by

the appropriate authority having the power of removal or at the suit of

the attorney general. Further, such public officer, public employee or

party officer shall be liable for a civil penalty of not more than ten

thousand dollars.