N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 407: Licenses for quarter horse race meetings

§ 407. Licenses for quarter horse race meetings. 1. Any association or

corporation desiring to conduct quarter horse race meetings at which

pari-mutuel betting shall be permitted may apply annually to the

commission for a license so to do. If, in the judgment of the commission

the public interest, convenience or necessity will be served thereby and

a proper case for the issuance of such license is shown consistent with

the purposes of sections two hundred twenty-two through seven hundred

five of this chapter and the best interests of racing generally, the

commission may grant such license for a time ending not later than the

thirty-first day of December next, specifying dates and hours during

which and the place where the licensee may operate.

2. Every such license shall be issued upon condition:

a. that every quarter horse race meeting at which pari-mutuel betting

is conducted shall be subject to the supervision of and to the

reasonable rules and regulations from time to time prescribed by the

commission, and

b. that pari-mutuel betting conducted thereunder shall also be subject

to the supervision of and to the reasonable regulations from time to

time prescribed by the department of taxation and finance. Any such

license may also be issued upon any other condition that the commission

shall determine to be necessary or desirable to insure that the public

interest, convenience or necessity is served.

3. Applications for licenses shall be in such form as may be

prescribed by the commission and shall contain such information or other

material or evidence as the commission may require. Each application for

renewal of a license shall be deemed to be an application for a new

license. The fee for such licenses shall be one hundred dollars for each

racing day payable in installments in advance of each week's racing

which sums shall be paid into the general fund of the state treasury by

the commission. The term "racing week" shall include those days as

defined by the rules and regulations of the commission.

4. In considering an application for a license under this section the

commission may give consideration to the number of licenses already

granted and to the location of the tracks previously licensed. No such

license shall be granted to any track located within the corporate

limits of a city of the first class. No such license shall be granted to

any quarter horse racetrack located within fifty miles of any existing

harness, thoroughbred or quarter horse track except with the consent of

the licensee located within such fifty-mile area, provided, however,

that in the counties of Suffolk, Niagara and Albany such license shall

be granted to any quarter horse racetrack located more than thirty-five

miles from any existing harness, thoroughbred or quarter horse track,

except with the consent of the licensee located within such thirty-five

mile area.

5. The commission may refuse to grant a license to an association or

corporation if the commission determines that:

a. any officer, director, member or stockholder of such association or

corporation applying for a license, or of any association or corporation

that owns stock or shares in the profits or participates in the

management, of the affairs of such applicant, or that leases to such

applicant the track where such applicant shall operate has:

(i) been convicted of a crime involving moral turpitude;

(ii) engaged in bookmaking or other forms of illegal gambling;

(iii) been found guilty of any fraud or misrepresentation in

connection with racing or breeding;

(iv) been guilty of any violation or attempt to violate any law, rule

or regulation of any racing jurisdiction for which suspension from

racing might be imposed in such jurisdiction; or

(v) violated any rule, regulation or order of the commission; or

b. the experience, character or general fitness of any officer,

director or stockholder of any of the aforesaid associations or

corporations is such that the participation of such person in quarter

horse racing or related activities would be inconsistent with the public

interest, convenience or necessity or with the best interests of racing

generally; but if the commission determines that the interest of any

stockholder referred to in this paragraph or in paragraph a of this

subdivision is insufficient in the opinion of the commission to affect

adversely the conduct of pari-mutuel quarter horse racing by such

association or corporation in accordance with the provisions of this

article, the commission may disregard such interest in determining

whether or not to grant a license to such association or corporation; or

c. the applicant is not the owner of the track at which it will

conduct pari-mutuel quarter horse racing pursuant to the license applied

for, or that any person, firm, association or corporation other than the

applicant shares, or will share, in the profits of the applicant, other

than by dividends as a stockholder, or participates or will participate

in the management of the affairs of the applicant.

6. The commission shall also have power to refuse to grant a license:

a. to any association or corporation, the charter or certificate of

incorporation of which shall fail to contain a provision requiring any

stockholder, upon written demand of the association or corporation, to

sell his or her stock to the association or corporation at a price to be

fixed in the manner provided in article five of the business corporation

law, provided such demand be made pursuant to written direction of the

commission; and from and after the date of the making of such demand,

prohibiting the transfer of such certificate of stock, except to the

association or corporation; or

b. to any association or corporation that, having been a licensee, has

failed in the opinion of the commission to properly maintain its track

and plant in good condition or has failed to make adequate provision for

rehabilitation and capital improvements to its track and plant.

7. Pending final determination of any question under this section, the

commission may issue a temporary license upon such terms and conditions

as it may deem necessary, desirable or proper to effectuate the

provisions of sections two hundred twenty-two through seven hundred five

of this chapter.

8. Notwithstanding any other provision of this article, the commission

may grant a license to any authorized quarter horse racing association

or corporation to hold and conduct one additional quarter horse race

meeting of not more than one racing week's duration, with pari-mutuel

betting, on any quarter mile track within this state.

9. The commission shall have power to direct that every certificate of

stock of any association or corporation licensed under the provisions of

sections two hundred twenty-two through seven hundred five of this

chapter shall bear a legend plainly and prominently imprinted upon the

face of the certificate reading: "This certificate of stock is

transferable only subject to the provisions of section four hundred

three of the racing, pari-mutuel wagering and breeding law".