N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 221: New York Jockey Injury Compensation Fund, Inc

§ 221. New York Jockey Injury Compensation Fund, Inc. 1. There is

created a not-for-profit corporation to be known as The New York Jockey

Injury Compensation Fund, Inc. and referred to in this section as "the

fund". To the extent that the provisions of the not-for-profit

corporation law do not conflict with the provisions of this article, or

the plan of operation of the fund hereunder, the not-for-profit

corporation law shall apply to the fund and the fund shall be a type C

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

applicable provision of this article or the plan of operation of the

fund hereunder 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 fund shall perform its functions under the

plan of operation established and approved under this section and shall

exercise its powers through a board of directors established under this

section.

2. a. The board of directors shall consist of seven members, six of

whom are to be selected from the general membership of the fund in a

manner and for terms to be prescribed by the initial fund board. For the

purposes of establishing and organizing the fund, at least one hundred

fifty days prior to the date that this article shall take effect, the

boards of directors of the horsemen's organizations representing at

least fifty-one percent of the horsemen utilizing the facilities of any

racing corporation, shall designate six members who shall serve as the

initial board of directors of the fund. The seventh member shall be

elected every two years on the second Tuesday of June, or as designated

by the fund, pursuant to paragraph b of this subdivision by a vote of

jockeys and apprentice jockeys duly licensed pursuant to this article or

article four of this chapter. The members of the board shall elect

annually from the members a chairperson and a vice-chairperson who shall

act as chairperson in the absence of the chairperson. Each member of the

board of directors shall have equal voting rights with the others.

b. (i) The election of the seventh board member shall be conducted by

an election administrator selected by the fund no later than November

fifteenth of the year preceding the election. The fund shall inform the

commission of its selection thereof. The fund shall enter into a

contract with the election administrator at least one hundred twenty

days prior to the date of the election. The fund shall be responsible

for costs associated with the contract with the election administrator.

(ii) The election administrator may be the individual, organization,

or corporation under contract with the fund to provide management

services as of November fifteenth of the year preceding the election.

The election administrator shall devise and provide nominating petitions

to candidates, shall validate such petitions upon submittal by verifying

the eligibility of the jockeys and apprentice jockeys to sign such

petitions, and shall be responsible for the printing, dissemination,

validation, and tabulation of ballots for such election. The commission

shall provide a list of all duly licensed jockeys and apprentice jockeys

to the fund for purposes of validating nominating petitions and ballots.

The election administrator shall report the results of the election to

the commission, which shall then certify the election of the seventh

board member.

(iii) Any individual seeking election pursuant to this subdivision

shall provide a nominating petition containing the signatures of no

fewer than ten duly licensed jockeys or apprentice jockeys eligible to

sign such petition. To be eligible to sign such petition, a jockey or

apprentice jockey shall possess a valid jockey's license as of March

first in the year of the election. Such petitions may be signed by

eligible jockeys or apprentice jockeys beginning April first of an

election year and shall be returned to the election administrator for

validation no later than the first Monday of May of an election year. If

a jockey's license expires between March second and the first Monday of

May and has not been renewed by the latter date, the election

administrator shall invalidate such jockey's signature on the nominating

petition so submitted.

(iv) To be eligible to vote in the election, jockeys and apprentice

jockeys must possess a valid jockey's license at least thirty days prior

to the date of the election. If such jockey's license expires during the

thirty days preceding the election and such license has not been renewed

as of the date of the election, such jockey shall not be eligible to

vote.

(v) If, following an election of the seventh board member, such member

is unable to discharge his or her duties as a board member or is

otherwise unable to complete his or her term, the fund's chairperson

shall offer the seventh board member's position to the candidate who

received the highest total number of votes following that received by

the elected board member during the election. If such candidate declines

to accept such position, the chairperson shall offer the position to

each remaining candidate in descending order of the total number of

votes received by each such candidate during the election until a

candidate has accepted the position. If none of the remaining candidates

has accepted the position, the chairperson may appoint an interim member

to the position for such time as intervenes until a new seventh board

member is elected.

3. Members of the board of directors shall serve without compensation

for their services, but shall be entitled to reimbursement for actual

and necessary expenses incurred in the performance of their official

duties.

4. Members of the board of directors, except as otherwise provided by

law, may engage in private employment, or in a profession or business.

5. The affirmative vote of four members of the board of directors

shall be necessary for the transaction of any business or the exercise

of any power or function of the fund. The fund may delegate to one or

more of its members, or its officers, agents or employees, such powers

and duties as it may deem proper.

6. (a) The fund shall secure workers' compensation insurance coverage

on a blanket basis for the benefit of all jockeys, apprentice jockeys

and exercise persons licensed pursuant to this article or article four

of this chapter who are employees under section two of the workers'

compensation law, and may elect, with the approval of the commission, to

secure workers' compensation insurance for employees of licensed

trainers or owners. In the event the fund elects, with the approval of

the commission, to secure workers' compensation insurance for employees

of licensed trainers or owners, the fund may discontinue to secure

workers' compensation insurance for employees of licensed trainers or

owners only upon prior approval of the commission.

(b) The fund may elect, with the approval of the commission, to secure

workers' compensation insurance coverage through a form of

self-insurance, provided that the fund has met the requirements of the

workers' compensation board, including, without limitation, subdivision

three of section fifty of the workers' compensation law.

7. 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 that 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 percent; provided, however, through

calendar year two thousand twenty-seven, 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 article to pay the annual costs required by this section

and the funds from such account shall not count against the two percent

of purses deducted from an owner's share of purses. The amount deducted

from an owner's share of purses shall not exceed one percent after April

first, two thousand twenty-seven. In the cases of multiple ownerships

and limited racing appearances, the fund shall equitably adjust the sum

required.

The commission shall, as a condition of racing, require any racing

corporation or any quarterhorse racing association or corporation

authorized under this chapter to conduct pari-mutuel betting at a race

meeting or races run thereat, to require that each trainer using the

facilities of such association or corporation and each owner racing a

horse shall place or have placed on deposit with the horsemen's

bookkeeper of such racing association or corporation, an amount to be

established and paid in a manner to be determined by the fund.

Should the fund determine that the amount that has been collected in

the manner prescribed is inadequate to pay the annual costs required by

this section, it shall notify the commission of the deficiency and the

amount of the additional sum or sums necessary to be paid by each owner

and/or trainer in order to cover such deficiency. The commission shall,

as an additional condition of racing, direct any racing corporation or

any quarterhorse racing association or corporation authorized under this

chapter to conduct pari-mutuel betting at a race meeting or races run

thereat, to require each trainer and owner to place such additional sum

or sums on deposit with the respective horsemen's bookkeeper.

All amounts collected by a horsemen's bookkeeper pursuant to this

section shall be transferred to the fund created under this section and

shall be used by the fund to purchase workers' compensation insurance

for jockeys, apprentice jockeys and exercise persons licensed pursuant

to this article or article four of this chapter who are employees under

section two of the workers' compensation law, and at the election of the

fund, with the approval of the commission, to secure workers'

compensation insurance for employees of licensed trainers or owners to

pay for any of its liabilities under section fourteen-a of the workers'

compensation law and to administer the workers' compensation program for

such jockeys, apprentice jockeys and exercise persons and, if approved

by the commission, employees of licensed trainers or owners required by

this section and the workers' compensation law.

In the event the fund elects, with the approval of the commission, to

secure workers' compensation insurance for employees of licensed

trainers or owners, the fund may elect to have the sum required to be

paid by an owner or trainer pursuant to this section be subject to an

examination of workers' compensation claims attributable under the fund

to each such owner or trainer, including the frequency and severity of

accidents and injuries.

8. a. The fund shall submit to the commission a plan of operation and

any amendments thereto necessary or suitable to assure the fair,

reasonable and equitable administration of the fund. Such amendments, if

any, relating to the assessment of the costs of insurance for the

subsequent year, other than deficiency assessments, shall be submitted

to the commission no later than November fifteenth of each year. The

plan of operation and any amendments thereto shall become effective upon

approval in writing by the commission, and shall be published by the

fund upon such approval in one or more trade publications likely to be

obtained by owners and trainers.

b. If the fund fails to submit a suitable plan of operation within one

hundred eighty days following the effective date of this section or if

at any time thereafter the fund fails to submit suitable amendments to

the plan, the commission shall, after notice and hearing, adopt and

promulgate such reasonable rules as are necessary or advisable to

effectuate the provisions of this article. Such rules shall continue in

force until modified by the commission or superseded by a plan submitted

by the fund and approved by the commission.

c. The plan of operation shall constitute the by-laws of the fund and

shall, in addition to requirements enumerated elsewhere in this article:

(i) establish procedures for handling the assets of the fund;

(ii) establish regular places and times for meetings of the board of

directors;

(iii) establish procedures for records to be kept of all financial

transactions of the fund, its agents and the board of directors;

(iv) establish a formula for determining the appropriate amount of the

assessments under this section;

(v) establish the rules and procedures to govern the conduct of an

election held pursuant to paragraph b of subdivision two of this

section; and

(vi) contain such additional provisions as the commission or fund may

deem necessary or proper for the execution of the powers and duties of

the fund.

9. The fund shall be subject to examination and regulation by the

commission. The fund shall submit to the commission not later than May

first of each year, a financial report for the preceding calendar year

in a form approved by the commission and a report of its activities

during the preceding calendar year.

10. The fund shall be exempt from payment of all fees and all taxes

levied by this state or any of its subdivisions, except taxes levied on

real property.

11. The fund shall purchase such insurance as necessary to protect any

director, officer, agent or other representative from liability.

12. For purposes of this section, the term "employees of licensed

trainers or owners" shall have the same meaning as subdivision

twenty-four of section two of the workers' compensation law.

13. a. There is created a racing safety committee to review the risk

management report submitted to the commission by the fund on or about

September thirtieth, two thousand sixteen and to make non-binding

recommendations for the implementation of the safety proposals and

initiatives set forth in such report. Such committee shall consist of

seven members, each to serve a term of three years, with one member each

appointed by:

(i) the fund;

(ii) the commission;

(iii) the franchised corporation;

(iv) the racing association or corporation licensed pursuant to this

article or article four of this chapter to operate the racing and

training facilities at Finger Lakes racetrack;

(v) the horsemen's organization representing at least fifty-one

percent of the owners and trainers using the facilities of the

franchised corporation;

(vi) the horsemen's organization representing at least fifty-one

percent of the owners and trainers using the facilities of the Finger

Lakes racetrack; and

(vii) the Jockeys' Guild.

The member of the racing safety committee appointed by the fund shall

serve as chairperson and the member of the racing safety committee

appointed by the commission shall serve as vice-chairperson. Members of

the racing safety committee shall have equal voting rights.

b. The racing safety committee shall meet within ninety days following

the effective date of this subdivision to review and discuss the

implementation of the recommendations contained in the risk management

report submitted to the commission by the fund on or about September

thirtieth, two thousand sixteen. The racing safety committee shall meet

on or after July first, two thousand seventeen, and at least annually

thereafter, to review the workers' compensation loss information and the

status of safety-related findings and recommendations and to develop an

annual strategic plan to address identified safety issues.

c. The members appointed pursuant to subparagraph (iii) and (iv) of

paragraph a of this subdivision, in consultation with the other members

of the racing safety committee, shall:

(i) Within one hundred eighty days following the effective date of

this subdivision, for each track, develop safety rules for training

activities to be documented and communicated, in both English and

Spanish, to jockeys, apprentice jockeys, and exercise persons licensed

pursuant to this article or article four of this chapter who are

employees under section two of the workers' compensation law, and at the

election of the fund, with the approval of the commission, employees of

licensed trainers or owners. Such safety rules shall include, but not be

limited to, proper usage of personal protective equipment, required

response to loose horses, prohibition of cell phone use while mounted on

a horse, general requirements for jogging, galloping, breezing, ponying

a horse, and starting gate safety protocols. Refresher training related

to such safety rules shall be required at the start of each meet.

(ii) Prior to the start of each meet, following the effective date of

this subdivision, meet with trainers or their representatives to discuss

and address identified safety issues.

(iii) Within one hundred eighty days following the effective date of

this subdivision, for each track, develop a written, documented

emergency response plan to address response protocols to on-track

accidents and incidents, which, at a minimum, shall include detailed

information regarding roles and responsibilities for individuals who are

responsible for track-related accidents and incidents, including, but

not limited to, outriders, emergency medical technicians/paramedics,

ambulance drivers, security, and veterinary staff and clockers.

(iv) Within two hundred ten days following the effective date of this

subdivision, communicate the emergency response plan to all on-track

personnel as part of new hire orientation and job assignment.

(v) Within two hundred ten days following the effective date of this

subdivision, and at least once annually thereafter, for each track,

conduct a mock emergency response drill for on-track accidents prior to

the opening of each race meet. Such emergency response drill shall be

filmed and used for education and training purposes for personnel,

including in new hire orientation, and to assess the performance of

individuals involved in the emergency response.

(vi) Within one hundred eighty days following the effective date of

this subdivision, upgrade the current level of emergency medical

responders from emergency medical technicians to paramedics.

14. The fund and the commission shall have such power as is necessary

to implement the provisions of this section.