2020 New York Laws
PML - Racing, Pari-Mutuel Wagering and Breeding Law
Article 3 - Harness Racing and Breeding
303 - Filing of Information Concerning Stock Transfers; Necessity for Commission Approval.

§ 303. Filing of information concerning stock transfers; necessity for
commission  approval. 1. Whenever a transfer of stock of any association
or  corporation  that  is  licensed  under  this  article,  or  of   any
association  or  corporation  that  leases to such licensee the track at
which it conducts pari-mutuel harness races, or  that  owns  twenty-five
percent or more of the stock of such licensee shall be made, there shall
be  filed simultaneously with the association or corporation that issued
such stock the following:
  a. In duplicate, an affidavit executed by the transferee stating  that
the  affiant  is to be the sole beneficial owner thereof, and whether or
not the affiant has (i)  been  convicted  of  a  crime  involving  moral
turpitude,  (ii)  been  engaged  in bookmaking or other forms of illegal
gambling, (iii) been found guilty of any fraud or  misrepresentation  in
connection with racing or breeding, (iv) been guilty of any violation or
attempt   to   violate  any  law,  rule  or  regulation  of  any  racing
jurisdiction for which suspension from racing might be imposed  in  such
jurisdiction,  or  (v)  violated  any  rule,  regulation or order of the
commission; if the transferee  is  not,  or  is  not  to  be,  the  sole
beneficial  owner thereof, then there shall be annexed to said affidavit
of the transferee, and expressly stated in such affidavit to be deemed a
part thereof, a true and complete copy, or if oral, a complete statement
of all the terms, of the agreement or understanding  pursuant  to  which
the  stock  is  to  be  so  held by the transferee, including a detailed
statement of the interest therein of each person  who  is  to  have  any
interest therein; and at the same time.
  b.  In  duplicate,  an affidavit executed by each person for whom such
stock, or any interest therein,  is  to  be  held  by  said  transferee,
setting  forth  whether  or  not the affiant has (i) been convicted of a
crime involving moral turpitude, (ii) engaged  in  bookmaking  or  other
forms  of  illegal  gambling,  (iii)  been  found guilty of any fraud or
misrepresentation in connection  with  racing  or  breeding,  (iv)  been
guilty  of  any  violation  or  attempt  to  violate  any  law,  rule or
regulation of any racing jurisdiction for which suspension  from  racing
might  be  imposed  in  such  jurisdiction,  or  (v)  violated any rule,
regulation or order of the commission; to each of which affidavits shall
be annexed, and expressly stated in such affidavit to be deemed  a  part
thereof,  a  true and complete copy, or if oral, a complete statement of
all the terms, of the agreement or understanding pursuant to  which  the
stock is to be so held by the transferee, including a detailed statement
of  the  interest  therein  of  each  person who is to have any interest
therein.
  c. Said association or  corporation  shall  forthwith  file  with  the
commission one of each of said duplicate affidavits.
  2.  If,  after  the  filing  of  any affidavit required to be filed by
subdivision one of this section, there is any change in  the  status  of
any  such  affiant  with  respect  to  any  of  the matters set forth in
subparagraph (i), (ii), (iii), (iv) or (v) of paragraph a of subdivision
one of this section of the affidavit theretofore filed by  him  or  her,
such  affiant  shall  forthwith file with the association or corporation
with which the  affiant's  affidavit  was  so  filed  a  new  affidavit,
executed  in  duplicate,  setting  forth  such change of status, and the
association or corporation shall forthwith file one of  said  affidavits
with the commission.
  3. Whenever any change is made in the amount, nature, or otherwise, of
the  interest  of  any  person  having  an interest in stock of any such
association or corporation, or any  new  interest  is  created  therein,
without  a transfer of such interest as provided in subdivisions one and
two of this section, the record owner of such  stock,  and  each  person

whose  interest  therein has been so attempted to be changed or created,
shall file with the association or corporation that issued  such  stock,
in   duplicate,  affidavits  as  provided  by  paragraphs  a  and  b  of
subdivision  one  of  this section, except that such affidavits need not
include the matters referred to in subparagraphs (i), (ii), (iii),  (iv)
and  (v)  of paragraph a of subdivision one of this section, unless then
required pursuant to subdivision two  of  this  section,  and  one  copy
thereof  shall forthwith be filed by the association or corporation with
the commission.
  4. The commission may, upon application to it for  good  cause  shown,
waive compliance with subdivisions one, two and three of this section.
  5.  If  the  commission  determines  that  it is inconsistent with the
public interest, convenience or necessity, or with the best interests of
racing generally, that any  person  continue  to  be  a  stockholder  of
record, or the beneficial owner of any interest in stock standing in the
name  of  another, in any association or corporation licensed under this
article, or of any  association  or  corporation  that  leases  to  such
licensee  the  track  at which it conducts pari-mutuel harness racing or
that owns twenty-five percent or more of the stock of such licensee, the
commission shall have full power and authority to order or  direct  each
such  stockholder or beneficial owner irrespective of the time when such
stockholder or beneficial owner acquired his or her  stock  or  interest
therein  to dispose of such stock or interest within a period of time to
be specified by the commission, which period the commission  shall  have
full power and authority to extend from time to time.
  6.  If the commission shall make any order or direction as provided in
subdivision five of this section, the person aggrieved thereby shall  be
given notice of the time and place of a hearing before the commission at
which  the  commission  will  hear such person in reference thereto. The
action of the commission in making any such order or direction shall  be
reviewable  in  the  courts of this state in the manner provided by, and
subject to the provisions of article seventy-eight of the civil practice
law and rules.
  7. Upon application of the commission, the supreme court of this state
shall have jurisdiction to issue  final  orders,  on  notice  and  after
hearing,  commanding  any  person  to  comply with the provisions of the
orders or directions issued by the commission under subdivision five  of
this section.
  8.  In  case of conflict between this section and article eight of the
uniform commercial code, this section shall control.
  § 43. Subdivision (b) and the closing paragraph of  section  303-a  of
the  racing,  pari-mutuel wagering and breeding law, as added by chapter
281 of the laws of 1994, are amended to read as follows:
  (b) Non-managing owners. There shall be no restriction on  the  number
of  non-managing  owners  of  a race horse except that no horse shall be
entered or started that is owned by thirty-five or fewer  owners  unless
all such owners are licensed; in the event that a horse is owned by more
than  thirty-five  owners, only those individuals having a three percent
or greater property interest in such  horse  shall  be  required  to  be
licensed as an owner.
  The  commission  shall adopt rules and regulations regarding ownership
of horses not inconsistent with this section.