§ 208. Conditions of franchise award. 1. In consideration of the\nfranchise and in accordance with its franchise agreement, the franchised\ncorporation shall remit to the state, each year, no later than April\nfifth, a franchise fee payment. The franchise fee shall be calculated\nand equal to the lesser of paragraph (a) or (b) of this subdivision as\nfollows: (a) adjusted net income, including all sources of audited\ngenerally accepted accounting principles net income as of December\nthirty-first (i) plus the amount of depreciation and amortization for\nsuch year as set forth on the statement of cash flows (ii) less the\namount received by the franchised corporation for capital expenditures\nand (iii) less principal payments made for the repayment of debt; or (b)\noperating cash which is defined as cash available on December\nthirty-first (i) which excludes all restricted cash accounts, segregated\naccounts as per audited financial statements and cash on hand needed to\nfund the on-track pari-mutuel operations through the vault, (ii) less\nninety days of operating expenses pursuant to generally accepted\naccounting principles which shall be an average calculated by dividing\nthe current year's annual budget by the number of days in such year and\nmultiplying that number by ninety.\n 2. As a condition of franchise acceptance, the franchised corporation\nand its predecessor shall irrevocably relinquish any present or future\nrights that it might have, or might claim, with respect to thoroughbred\nracing facilities and associated assets located in Queens county,\nSaratoga county and jointly located in Nassau and Queens counties\nwhereat running races, steeplechases or race meetings and pari-mutuel\nbetting on the outcome of the same have been conducted, including (a)\nall the land underlying the racetracks, (b) all improvements thereon and\nall physical assets thereon, and (c) all assets associated with the\nfranchise and the operation of the racetracks, including, without\nlimitation all rights to intellectual property and simulcasting now\nexisting or hereafter created, and any and all franchise rights or\ninterests in such assets including but not limited to leasehold\nimprovements and interests. The franchised corporation shall take all\nappropriate action on the date of substantial consummation, as defined\nby the federal bankruptcy code, of the confirmed chapter eleven plan of\nreorganization of the non-profit racing association known as The New\nYork Racing Association, Inc. in the pending bankruptcy case in the\nSouthern District of New York to ensure that the People of the State of\nNew York are vested with unencumbered ownership in the real estate for\nthe three racetracks, including all improvements thereon.\n 3. As a condition of franchise acceptance, the franchised corporation\nshall make application with the commission for live thoroughbred racing\ndates at thoroughbred racing facilities located in Queens county,\nSaratoga county and jointly located in Nassau and Queens counties in a\nmanner substantially similar to the racing dates presently undertaken.\n 4. As a condition of franchise acceptance, the franchised corporation\nshall agree that it will conduct running races, steeplechases and race\nmeetings in accordance with the provisions thereof and that all running\nraces, steeplechases or race meetings conducted thereunder shall be\nsubject to such reasonable rules and regulations from time to time\nprescribed by the gaming commission.\n 4-a. As a condition of franchise acceptance, the franchised\ncorporation shall enter into a franchise agreement that shall require\nsuch franchised corporation to use its best efforts to satisfy\nperformance standards, measured every four years by the franchise\noversight board. Such performance standards shall relate to racing\ndates, New York bred horse races, horse stalls, jockey and equine\nsafety, state concentrated animal feeding operation, backstretch\nconditions, the
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.