N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 206: Franchise for running races and steeplechase meetings

§ 206. Franchise for running races and steeplechase meetings. 1. The

franchised corporation referred to in this chapter shall be a

not-for-profit corporation to be known as The New York Racing

Association, Inc. To the extent that the provisions of the

not-for-profit corporation law do not conflict with the provisions of

this article, the not-for-profit corporation law shall apply to the

franchised corporation and the franchised corporation shall be a type C

corporation pursuant to the not-for-profit corporation law. If an

applicable provision of this article relates to a matter embraced in a

provision of the not-for-profit corporation law but is not in conflict

therewith, both provisions shall apply. The franchised corporation shall

perform its functions under a franchise agreement which, notwithstanding

the provisions of section one hundred twelve of the state finance law,

shall not be subject to the approval required by such section, and such

other agreements as may be necessary and appropriate and shall exercise

its powers through a board of directors established under section two

hundred seven of this article. The franchise confers the right and

responsibility to manage and operate all functions at the franchise

racetracks including but not limited to and subject to appropriate

racing laws and regulations the hiring and management of racing

secretaries, stewards, race officials, backstretch employees and other

equine and racing related functions, establishing the purses, the stakes

program and owner's relations, maintenance of the franchise racetracks

and associated facilities, the selection of vendors for food, beverage

and other concessions and such other activities approved by the

franchise oversight board. The franchised corporation, in its

discretion, may permit utilization of the state racing franchise lands

for business purposes unrelated to racing, provided however that upon

written notice from the franchise oversight board with respect to any

such activity, the franchised corporation shall cease such utilization

within thirty days in order to allow the franchise oversight board

approved development or alternative uses approved by the franchise

oversight board. All franchise rights or interests in assets of the

state racing franchise including but not limited to leasehold interests

shall be limited to the term of the franchise. Upon expiration,

termination or ending of the franchise by any other means provided by

law, all franchise rights or interest granted to or held by the

franchised corporation shall cease and revert to the state.

Notwithstanding any provisions of law to the contrary the franchised

corporation shall not conduct, manage or otherwise operate video lottery

gaming activities on the lands of the state racing franchise.

2. The franchised corporation shall, upon acceptance of the franchise,

franchise agreements and all enumerated conditions, be granted a

franchise for a period of not more than twenty-five years, ending no

later than December thirty-first, two thousand thirty-three.

3. Upon acceptance of the franchise, the franchisee's corporate

duration shall be made coterminous with the expiration, revocation or

relinquishment of such franchise. Such length of duration shall be

deemed to be incorporated within and made part of the certificate of

incorporation of the franchised corporation and no amendment to such

certificate to incorporate any such provision shall be necessary to give

effect to any such provision and that any provision contained within

such certificate inconsistent in any manner with the provisions

contained within this section shall be null and void and cease to be of

effect and shall be superseded by the provisions of this section. The

dissolution provisions of articles ten and eleven of the not-for-profit

corporation law shall apply upon the expiration, revocation or

relinquishment of such franchise.

4. The franchised corporation shall not commence operation until

by-laws and a corporate governance code of conduct are adopted by its

board of directors. Such by-laws and code shall ensure the franchised

corporation is operated in an efficient and transparent manner, with the

highest degree of integrity and is fully accountable to the people of

the state of New York.

5. The franchised corporation shall comply with all applicable laws

and regulations and retain an independent business integrity counsel,

who, among other things, will act as an independent source to help

ensure the integrity of the franchised corporation, its officers and

employees, and its operations.

6. The franchised corporation shall honor and be bound by all

collective bargaining agreements to which the previous franchise holder

was a party for their remaining term.

The franchised corporation shall, upon the request of an off-track

betting corporation, purchase simulcasting rights jointly with the

off-track betting corporation so that the off-track betting corporation

pays the same price for the purchased simulcasting rights that the

franchised corporation pays. To the extent permitted by law, the

franchised corporation shall also share simulcasting pricing information

in the market with off-track betting corporations;

7. The franchised corporation shall conduct public meetings in

cooperation with local advisory boards established pursuant to section

two hundred twelve of this article within one hundred eighty days

following the effective date of this section on or near the racetrack

facilities of Aqueduct, Belmont and Saratoga. Thereafter, public

meetings shall be held no less than twice yearly in cooperation with the

local advisory boards established pursuant to section two hundred twelve

of the racing, pari-mutuel wagering and breeding law, in order to

solicit the concerns of the community surrounding the respective racing

operations.