NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9575
SPONSOR: Woerner TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to requiring annual reports to the governor and the legislature
by the franchise oversight board
PURPOSE OF BILL:
This bill strengthens accountability and transparency in the oversight
of the New York Racing Association, Inc. (NYRA), by making annual
reports by the Franchise Oversight Board (FOB) mandatory, establishing a
recurring annual deadline, and specifying minimum content requirements
to ensure meaningful legislative and executive oversight.
SUMMARY OF PROVISIONS:
Section 1 amends the reporting requirements set forth in subparagraph
(xii) of subdivision 8 of section 212 of the racing, pari-mutuel wager-
ing and breeding law by changing discretionary language "report annual-
ly" to mandatory language "shall file a mandatory annual report", remov-
ing the outdated initial reporting date of December 31, 2008,
establishing December 31 of each year as the recurring annual deadline,
and adding specific minimum content requirements for annual reports
including: a summary of the FOB's activities during the preceding year;
an assessment of the current state of the thoroughbred racing industry
in New York; an analysis of financial performance and trends affecting
NYRA; an identification of policy and regulatory challenges; specific
legislative and regulatory recommendations; and any other matters the
FOB deems relevant to its oversight responsibilities
Section 2 establishes the effective date.
JUSTIFICATION:
The FOB was created to provide critical oversight of the financial
activities of NYRA, thereby ensuring the long-term viability of the
state's racing industry. However, current statutory language regarding
the FOB's reporting obligations is ambiguous, undermining effective
legislative oversight and accountability, Current law directs the FOB to
"report annually" beginning in 2008, but the use of "report" rather than
"shall report" creates ambiguity about whether reporting is mandatory or
discretionary, the reference to 2008 provides no guidance for ongoing
reporting obligations, and the law provides no specification of what
these reports should contain, resulting in inconsistent reporting that
may not adequately inform legislative decision-making. In fact, clue to
this ambiguous language, the FOB has never filed an annual report with
the governor or the legislature.
This bill addresses these deficiencies by replacing permissive language
with clear mandatory language requiring the FOB to file annual reports;
eliminating any ambiguity about the FOB's continuing legal duty; remov-
ing the outdated 2008 reference and establishing December 31 of each
year as the recurring deadline; creating a predictable annual reporting
schedule; and specifying minimum content requirements to ensure reports
provide substantive information necessary for informed policymaking,
including summaries of FOB activities, industry assessments, financial
analysis, identification of challenges, and specific legislative recom-
mendations. These reforms enhance legislative oversight by ensuring
regular, comprehensive information about NYRA and existing policy effec-
tiveness; promote accountability by establishing clear expectations for
the FOB's reporting obligations; improve policy development by requiring
specific legislative recommendations, if any; and increase transparency
by making information about the racing industry's performance and chal-
lenges regularly available to legislators and the public.
Concern about the financial activities of NYRA is not unwarranted. As
recently as 2022 and 2024, the New York Comptroller's office audited
NYRA and found several deficiencies and recommended changes. According
to the Comptroller's office in 2024, "NYRA needs to do a better job of
managing its spending. It took some steps after our last audit, but much
more needs to be done to improve its monitoring and oversight of its
procurement process to fully promote sufficient competition if it wants
to avoid the dubious spending that my office has flagged in the past"
The specified content requirements set forth in this bill are designed
to provide decision makers with essential information without being
overly prescriptive. By requiring summaries of FOB activities, financial
analysis, identification of policy challenges, and specific recommenda-
tions, the bill ensures that potential problems in the racing industry
are identified and reported promptly, allowing timely legislative and
executive intervention when necessary, to protect state interests, and
support the longterm viability of New York's thoroughbred racing indus-
try.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This Act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9575
IN ASSEMBLY
January 21, 2026
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to requiring annual reports to the governor and the legisla-
ture by the franchise oversight board
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (xii) of paragraph a of subdivision 8 of
2 section 212 of the racing, pari-mutuel wagering and breeding law, as
3 amended by chapter 18 of the laws of 2008, is amended to read as
4 follows:
5 (xii) [report annually] file a mandatory annual report to the governor
6 and the legislature[, beginning] no later than December thirty-first[,
7 two thousand eight,] of each year stating its findings and recommenda-
8 tions to implement policy and legislative changes necessary to encourage
9 the continuation of high quality thoroughbred racing in New York state
10 and to protect the legitimate interests of the state and the thorough-
11 bred racing industry. Such report shall include, at a minimum:
12 (A) a summary of the franchise oversight board's activities during the
13 preceding year;
14 (B) an analysis of the franchised corporation's financial performance
15 and operation of thoroughbred racing and pari-mutuel wagering at the
16 racetracks;
17 (C) whether the franchised corporation has complied with the defini-
18 tive documents that compromise the franchise agreement between the fran-
19 chised corporation and the state of New York, and whether it has
20 complied with the laws, rules and regulations governing its activities;
21 (D) whether the franchise oversight board has notified the franchised
22 corporation of any material breach of performance standards;
23 (E) an identification of policy and regulatory challenges;
24 (F) specific legislative and regulatory recommendations; and
25 (G) any other matters the franchise oversight board deems relevant to
26 its oversight responsibilities;
27 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14374-01-6
