New York Laws
Article 2 - Thoroughbred Racing and Breeding
208 - Conditions of Franchise Award.

(b) In its review of the contracts pursuant to this section in any
contract in excess of one hundred thousand dollars, the franchise
oversight board may review the character and fitness of the entity or
its principals entering into contracts with a franchised corporation and
provided further the oversight board may require such information as it
deems necessary including the power to subpoena such books, records, and
other pertinent information related to the contracts from the contractor
or vendor of any contract.
7. Notwithstanding the provisions of section seven of the general
business law, or any other inconsistent provision of general, special or
local law, the commission shall specify annually the dates on which, and
the hour of the first post time for days during which, such franchised
corporation may operate at the places and for the full number of days
specified in its franchise.
8. The commission shall permit the franchised corporation to conduct
pari-mutuel betting in the manner and subject to the conditions
prescribed by this chapter, at the racetracks described in such racing
franchise for the duration of such racing franchise.
9. (a) The franchised corporation shall maintain a separate account
for all funds held on deposit in trust by the corporation for individual
horsemen's accounts. Purse funds shall be paid by the corporation as
required to meet its purse payment obligations. Funds held in horsemen's
accounts shall only be released or applied as requested and directed by
the individual horseman. Through calendar year two thousand twenty-five
the New York Jockey Injury Compensation Fund, Inc. may use up to two
million dollars from the account established pursuant to this
subdivision to pay the annual costs required by section two hundred
twenty-one of this article.
(b) Unless otherwise permitted by written agreement with the
horsemen's organization recognized pursuant to section two hundred
twenty-eight of this article the franchised corporation shall fund
purses in an amount (on an annual basis and not a per-race basis) in
excess of that required by this chapter, so as to reduce the purse
cushion at the end of each calendar year by the amount set forth below:
Year Reduction of Purse Maximum Purse Cushion at

Cushion for Calendar Year Year End Not to Exceed
2008 $0 $20.0 million
2009 $1.0 million $19.0 million
2010 $1.0 million $18.0 million
2011 $2.0 million $16.0 million
2012 $2.0 million $14.0 million
2013 $3.0 million $11.0 million
2014 $3.0 million $8.0 million
2015 $2.0 million $6.0 million
Thereafter the maximum purse cushion at year end shall not exceed $6.0
million.
(c) The franchised corporation shall establish and maintain a separate
account for funds to be held on deposit in trust by the franchised
corporation for the horsemen's organization recognized pursuant to
section two hundred twenty-eight of this article. Starting in two
thousand eighteen and annually thereafter, funds from the account
established pursuant to this subdivision shall be deposited in the
separate account established under this paragraph in an amount to be
agreed upon by the franchised corporation and the horsemen's
organization recognized pursuant to section two hundred twenty-eight of
this article. Funds held in this account shall be used by such
recognized horsemen's organization solely as collateral to secure
workers' compensation insurance coverage, including through the New York
Jockey Injury Compensation Fund, Inc. Such coverage shall include high
deductible programs and forms of self-insurance.
(d) In the event the horsemen's organization recognized pursuant to
section two hundred twenty-eight of this article determines that the
funds are no longer needed as collateral to secure workers' compensation
insurance coverage, then, upon agreement by the franchised corporation
and such appropriately recognized horsemen's organization, funds in the
separate account established under paragraph (c) of this subdivision
shall be returned to the account established pursuant to paragraph (a)
of this subdivision.
(e) The account shall be subject to annual audit by a certified public
accountant approved and paid by the appropriately recognized horsemen's
organization.

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