NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6535
SPONSOR: Peoples-Stokes TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to the membership of the board of directors of the western
regional off-track betting corporation
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to amend the membership of the board
of directors of the Western New York regional off track betting corpo-
ration, to provide more equal representation of voting strength of the
people of the area who benefit from proceeds from said corporation, and
to provide board representation by the Governor and legislative leaders.
SUMMARY OF PROVISIONS:
Section one amends the racing, pari-mutuel, wagering and breeding law by
adding new section 502-a to deem expired the current membership of the
WNY OTB board of directors, and to replace the board with representation
as follows: a weighted vote whereas each county gets one seat, the
cities of Buffalo and Rochester get one seat, and the Governor, Speaker
and Temporary President get one seat each, with the weighted vote equal-
ing 100 times the population of said locality divided by the overall
population of the WNY OTB region.
Section two sets the effective date.
JUSTIFICATION:
The Western New York OTB is a public benefit corporation owned by 15
counties in Western New York, as well as the cities of Buffalo and
Rochester. As such, any profits made by the corporation must be returned
to the residents of these counties and cities. At present, the 15 coun-
ties each have one appointment to the board of directors, despite huge
discrepancies in population. As an example, Schuyler County, with a
population of 17,898, has an equal representation on the board as Erie
County, with a population of 954,236. This means for every person in
Schuyler County, the representative for Erie County represents 53
people. This hardly results in equal representation for the residents of
Western New York, especially when profits 'made by the corporation are
distributed based on the population of the county or municipality.
Further, the board has recently been marred by inaction in the face of
several investigations into its-management. In 2019, the corporation was
subject to an FBI investigation into political motivation behind the
awarding of contracts.(1) This allegation was supported by a retired.
New York State. Senator, who worked closely with senior staff of the OTB
in political areas.(2) However, no action has been taken by the current
board in response.
Further, members of the OTB Board of Directors have received health
insurance coverage as part of their duties, in apparent violation of the
Comptroller's opinion on the matter(3). Despite public uproar over this
action, board members still have not corrected this mistake.
Finally, on September 23, 2021, the New York State Comptroller released
an audit that uncovered that 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 indi-
viduals 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 identified specific instances when board members received tick-
ets, but no business purpose was identified by OTB officials.
For these reasons, it is clear that Western New York deserves new repre-
sentation on the board. As profits are distributed by.population, it is
fair for the membership of the board of directors to be based on popu-
lation. Using the allocations provided for in this bill; each board
member will represent approximately 210,000 people. Further, allowing
for one appointee each by the Governor, Speaker and Temporary President
will allow for some membership that is not subject to the internal
selection process of a county or city government, allowing for some
independence in thought.
PRIOR LEGISLATIVE HISTORY:
A.9395 of 2022
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TO be determined.
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become law, provided, however, that effective immediately
municipalities may take any action necessary to begin the selection and
appointment process for new board member terms pursuant to this act.
(1)
https://www.investigativepost.org/2019/04/26/fbi-investigatingbuffalo-
area-otb/
(2) https://buffalonews.com/news/local/maziarz-reignites-
niagaracountyrepubl icans-feud-with-bid-rigging-charge/ article_c77
000fa-875f-511b-9c67-d318cfdfd72a.html
(3)https://investigativepost.org/2019/04/26/fbi-investigatingbuffalo-
areaotb/
STATE OF NEW YORK
________________________________________________________________________
6535
2023-2024 Regular Sessions
IN ASSEMBLY
April 13, 2023
___________
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the
Committee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to the membership of the board of directors of the western
regional off-track betting corporation
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The racing, pari-mutuel wagering and breeding law is
2 amended by adding a new section 502-a to read as follows:
3 § 502-a. Special provisions with regard to the western regional off-
4 track betting corporation. Notwithstanding any inconsistent provision of
5 this article, on the effective date of this section the term of each
6 board member of the western regional off-track betting corporation, or
7 any vacant position, shall be deemed expired, and each such board member
8 or vacant position shall be replaced with the new appointments made
9 pursuant to this section. The western off-track betting corporation
10 board of directors shall be composed of fifteen members to be appointed
11 as follows: three members to represent the counties of Monroe, Wyoming,
12 and Orleans; one member to represent the counties of Chautauqua, Cayuga,
13 Genesee, Livingston, Schuyler, and Seneca; four members to represent
14 Erie county; one member to represent Niagara county; one member to
15 represent the counties of Oswego, Cattaraugus, and Wayne; one member to
16 represent the city of Buffalo; one member to represent the city of
17 Rochester; one member appointed by the governor; one member appointed by
18 the temporary president of the senate; and one member appointed by the
19 speaker of the assembly. In the case of counties making joint appoint-
20 ments, such counties shall collaborate to select board members and shall
21 appoint such members through joint resolutions passed by such counties'
22 county legislature or board of supervisors.
23 § 2. This act shall take effect on the one hundred twentieth day after
24 it shall have become a law, provided, however, that effective immediate-
25 ly municipalities may take any action necessary to begin the selection
26 and appointment process for new board member terms pursuant to this act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02067-01-3
