New York Senate passes NYRA oversight legislation

The New York State Senate passed legislation on Friday that will establish an

oversight board for the New York Racing Association (NYRA) and accelerate the

bidding process for the racing franchise that operates Aqueduct, Belmont Park,

and Saratoga Race Course. In addition, the bill ratifies a contract that will

clear the way for video lottery terminals at Aqueduct.

The five-member oversight board, consisting of three members appointed by

Gov. George Pataki, will review and make recommendations regarding NYRA's

operating budget, revenue, expenditure and labor policies as well as cash

receipts, accounting and security procedures. In addition, the oversight board

will replace the Capital Investment Fund and assume all of its duties. It will

also be the authorized licensee to operate VLTs in the event of expiration or

revocation of the NYRA franchise.

The oversight board will make recommendations to the NYRA trustees concerning

managerial, labor and financial matters. The trustees will have to submit, in

writing, why any recommendations were not adopted.

In addition, the bill will authorize a three-day, tax-free Breeders' Cup

weekend, and give a non-refundable tax credit to OTBs to encourage more wagering

activity on New York tracks.

Moreover, the measure will allow for appointments to be made prior to

December to a committee that will solicit bids from corporations or associations

interested in operating New York's racing facilities once NYRA's franchise

expires on December 31, 2007.

"This agreement represents, in large part, what the Senate has been calling

for to provide greater oversight and accountability for NYRA, and to move

forward more quickly with the franchise bidding process for the next operator of

the state's racing facilities," Senate Majority Leader Joseph L. Bruno said.

The bill was sent to the state Assembly where it is expected to pass.