N.Y. Racing, Pari-Mutuel Wagering and Breeding Law Section 216
Disposition of racing facilities or certain assets


1.

Any franchised corporation desiring to grant, give, devise, or sell any assets including tangible and intangible assets, racing facilities and real estate shall apply to the commission and to the franchise oversight board for approval of such disposition, provided, however, that the approval of such commission and such board shall not be necessary for the sale of property, other than real property, that is appropriately, customarily and usually sold by the association in the normal course of its business. If in the judgment of the commission and the franchise oversight board, acting individually, the public interest, convenience or necessity and the best interest of racing will be served thereby, the commission and franchise oversight board shall each enter an order granting approval of such disposition and of the terms thereof.

2.

Such franchised corporation during the term of such a franchise shall not pledge, mortgage or otherwise encumber any of the racetrack facilities or properties acquired after the effective date of this subdivision without the prior written approval of the franchise oversight board. The franchised corporation may incur indebtedness, including without limitation, the issuance of non-convertible debt securities in connection therewith, and grant liens on and security interests in assets and interests, including without limitation, the revenue streams referred to herein, except that any debt incurred or funds raised shall be used to promote racing at the franchise racetracks. The franchised corporation shall not create any lien or security interest in any asset that runs with the franchise, such as the simulcasting contract, the repayment of which would extend beyond the term of the franchise. All incurrence of debt or grant of liens or security interests other than those arising within the ordinary course of business such as materialmen’s and mechanics’ liens first require the approval of the franchise oversight board.

3.

The state through the urban development corporation may borrow to fund racetrack capital improvements at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course and borrow on behalf of the franchised corporation pursuant to franchise oversight board approval secured against the franchised corporation’s right to receive payments for racetrack capital improvements pursuant to subdivision f of Tax Law § 1612 (Disposition of revenues)section sixteen hundred twelve of the tax law, provided, however, the indenture shall restrict the use of net proceeds to capital expenditures at the racetrack and provided further that any such borrowing shall be secured only by such future stream of racetrack capital improvement payments payable to the franchised corporation. The urban development corporation shall initially borrow funds necessary for approved capital expenditures in years one through five and then at appropriate times as determined by the franchise oversight board for years six through ten, years eleven through fifteen, years sixteen through twenty and years twenty-one through twenty-five. The amount of borrowing for approved capital expenditures shall not exceed the amount that would have been paid out for facility improvements in the event the full payment pursuant to subdivision f of Tax Law § 1612 (Disposition of revenues)section sixteen hundred twelve of the tax law for that purpose was made.

Source: Section 216 — Disposition of racing facilities or certain assets, https://www.­nysenate.­gov/legislation/laws/PML/216 (updated Oct. 16, 2020; 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:
Oct. 16, 2020

§ 216’s source at nysenate​.gov

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