BILL NUMBER: S6262
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibiting regional off-track betting corporations from
providing items of value exceeding fifteen dollars to certain associates
of the corporation
 
PURPOSE:
This legislation would prohibit an OTB board member, officer, employee,
contractor, subcontractor, consultant, or other agent of the corpo-
ration, or any spouse, child, sibling or parent residing in the princi-
pal place of abode of any of the foregoing persons, or any business,
professional, or personal associates of any of the foregoing persons,
from receiving any event tickets, beverages, food, or other thing of
value that exceeds a value of fifteen dollars, except as otherwise
explicitly provided in the law.
 
SUMMARY OF SPECIFIC PROVISIONS:
The legislation would amend the racing, pari-mutuel, wagering and breed-
ing law by adding new section 503-b.
Section 1: adds Section 503-b. Promotional spending restricted from
corporation associates
Section 2: amends Section 517 of the racing, pari-mutuel wagering and
breeding law, as amended by chapter 243 of the laws of 2020 as
follows:1) Requires Annual Report to be submitted to the temporary pres-
ident of the senate and the speaker of the assembly 2) Requires the
Annual Report to include "details of its marketing and promotional
plans, the structure of such plans, any spending pursuant to such plans,
and how such plans have or are anticipated to benefit the operations and
financial position of the corporation, as well as any measures taken to
prohibit self-dealing in conflict of section five hundred three-b of
this article.
Section 3: Sets Effective Date
 
JUSTIFICATION:
On September 23, 2021, the New York State Comptroller released an audit
that uncovered the Western New York Off-Track Betting Corp. (OTB) spent
at least $121,000 on tickets to sporting events, concerts, food and
alcohol for board members, employees and other individuals without the
oversight required by state rules. The audit found that OTB officials
did not keep accurate records of who received tickets and concessions,
which were valued, on average, at $221. Additionally, auditors identi-
fied specific instances when board members received tickets, but no
business purpose was identified by OTB officials.
The State Comptroller's Auditors recommended that the OTB:
*Develop and adopt a written policy and procedures for the distribution
of tickets and who is eligible to get them.
*Seek reimbursement for tickets and food and beverages if not appropri-
ately given.
*Define in the marketing plan what groups or categories of complimentary
items, including tickets, will be given out as required by state regu-
lations.
*Develop a system to maintain a complete, detailed, and accurate record
of tickets distributed.
This legislation goes beyond the OSC's key recommendations by making the
gift rules governing OTB associates consistent with the Public Officers
Law, Legislative Law, and Executive Law, where state employees may not
receive a gift of any kind valued at an amount greater than $15.
 
LEGISLATIVE HISTORY:
Senate
2021: N/A
2022: S7856, Passed Senate
2023: S5549, Passed Senate
2024: S5549, Referred to racing, gaming, and wagering
Assembly
2021: N/A
2022: A9393, Reported referred to rules
2023: A4184, Referred to racing, gaming, and wagering
2024: A4184, Referred to racing, gaming, and wagering
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.