N.Y. Racing, Pari-Mutuel Wagering and Breeding Law Section 207
Board of directors of a franchised corporation


1.

a. The board of directors, to be called the New York racing association reorganization board, shall consist of seventeen members, five of whom shall be elected by the present class A directors of The New York Racing Association, Inc., eight to be appointed by the governor, two to be appointed by the temporary president of the senate and two to be appointed by the speaker of the assembly.

(i)

The governor shall nominate a member to serve as chair, subject to confirmation by majority vote of the board of directors. All non-ex officio members shall have equal voting rights.

(ii)

In the event of a member vacancy occurring by death, resignation or otherwise, the respective appointing officer or officers shall appoint a successor who shall hold office for the unexpired portion of the term. A vacancy from the members appointed from the present board of The New York Racing Association, Inc., shall be filled by the remaining such members. * b. The franchised corporation shall establish a compensation committee to fix salary guidelines, such guidelines to be consistent with an operation of other first class thoroughbred racing operations in the United States; a finance committee, to review annual operating and capital budgets for each of the three racetracks; a nominating committee, to nominate any new directors to be designated by the franchised corporation to replace its existing directors; and an executive committee. Each of the compensation, finance, nominating and executive committees shall include at least one of the directors appointed by the governor, and the executive committee shall include at least one of the directors appointed by the temporary president of the senate and at least one of the directors appointed by the speaker of the assembly. * NB There are 2 par b’s * b. In addition to these voting members, the board shall have two ex officio members to advise on critical economic and equine health concerns of the racing industry, one appointed by the New York Thoroughbred Breeders Inc., and one appointed by the New York thoroughbred horsemen’s association (or such other entity as is certified and approved pursuant to § 228 (Pension plans for backstretch employees)section two hundred twenty-eight of this article). * NB There are 2 par b’s * c. All directors shall serve at the pleasure of their appointing authority. * NB There are 2 par c’s * c. Upon the effective date of this paragraph, the structure of the board of the franchised corporation 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 of incorporation shall be necessary to give effect to any such provision, and any provision contained within such certificate inconsistent in any manner shall be superseded by the provisions of this section. Such board shall, however, make appropriate conforming changes to all governing documents of the franchised corporation including but not limited to corporate by-laws. Following such conforming changes, amendments to the by-laws of the franchised corporation shall only be made by unanimous vote of the board. * NB There are 2 par c’s d. The board, which shall become effective upon appointment of a majority of public members, shall terminate five years from its date of creation.

2.

Members of the board of directors shall serve without compensation for their services, but publicly appointed members of the board shall be entitled to reimbursement from the franchised corporation for actual and necessary expenses incurred in the performance of their official duties.

3.

Members of the board of directors, except as otherwise provided by law, may engage in private employment, or in a profession or business, however no member shall have any direct or indirect economic interest in any video lottery gaming facility, excluding incidental benefits based on purses or awards won in the ordinary conduct of racing operations, or any direct or indirect interest in any development undertaken at the racetracks of the state racing franchise.

4.

The affirmative vote of a majority of 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 franchised corporation. The franchised corporation may delegate on an annual basis to one or more of its members, or its officers, agents or employees, such powers and duties as it may deem proper.

5.

Each voting member of the board of directors of the franchised corporation shall annually make a written disclosure to the board of any interest held by the director, such director’s spouse or unemancipated child, in any entity undertaking business in the racing or breeding industry. Such interest disclosure shall be promptly updated, in writing, in the event of any material change. The board shall establish parameters for the reporting and disclosure of such director interests. * NB Effective until the appointment of a majority of the state franchise oversight board members * § 207

Source: Section 207 — Board of directors of a franchised corporation, https://www.­nysenate.­gov/legislation/laws/PML/207 (updated Apr. 14, 2017; accessed Jul. 13, 2024).

201
Incorporation
202
Restriction upon commencement of business
202‑A
Liability of the directors of a franchised corporation
202‑B
No debt of the state
203
Right to hold race meetings and races
204
Certificate of payment of stock
205
License for running races and steeplechase meetings
206
Franchise for running races and steeplechase meetings
207
Board of directors of a franchised corporation
208
Conditions of franchise award
209
Examination of the books and accounts by the state comptroller
210
Franchise termination
210‑A
Relinquishment of franchise
211
Fair association, when entitled to privileges
212
Franchise oversight board
213
Project labor agreements
214
Acquisition of racing facilities
216
Disposition of racing facilities or certain assets
217
Revocation of licenses
218
Stewards at race meetings
219
Advertising or promotional material
220
Licenses for participants and employees at race meetings
220‑A
Corporations continued
221
New York Jockey Injury Compensation Fund, Inc
221‑A
Health insurance for jockeys
221‑B
Health insurance for trainers
222
Notice to be posted upon grounds
223
Special police officers
224
Penalty for unlawful racing and betting
225
Registration of race horses
226
Increased or additional entrance fees
228
Pension plans for backstretch employees
229
Backstretch employees drug and alcohol rehabilitation eligibility
230
Membership in a national thoroughbred racing association
231
Pari-mutuel betting on horse races legalized
232
License to conduct pari-mutuel betting at race meetings for running races or steeplechases
233
Bond required of corporation conducting pari-mutuel betting
234
Place and manner of conducting pari-mutuel betting
235
Rules for the conduct of pari-mutuel betting
236
Disposition of pari-mutuel pools
237
Capital improvements
238
Disposition of pari-mutuel pools of the franchised corporation
239
Books and records of pari-mutuel betting
240
Yearly audit
241
Disposition of unpaid money due on account of pari-mutuel tickets not presented
242
Races for horses bred in the state
243
Free or reduced fee passes, cards or badges
244
Revocation of license or franchise
245
Hearing on refusal or revocation of license or franchise
246
Approval of plans of corporation
247
Racing zones
248
Racing season
249
Pari-mutuel employees to be citizens and residents
250
Power of commission to impose penalties
251
Definitions
252
New York state thoroughbred breeding and development fund
253
Powers of the fund
254
Resources of fund
255
Annual audit
256
Annual report
257
Actions against fund

Accessed:
Jul. 13, 2024

Last modified:
Apr. 14, 2017

§ 207’s source at nysenate​.gov

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