STATE OF NEW YORK ________________________________________________________________________ 1312 2021-2022 Regular Sessions IN ASSEMBLY January 8, 2021 ___________ 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 thoroughbred equine drug testing standards 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 article 11-A to read as follows: 3 ARTICLE XI-A 4 INTERSTATE COMPACT ON ANTI-DOPING 5 AND DRUG TESTING STANDARDS 6 Section 1113. Purposes. 7 1114. Definitions. 8 1115. Composition and meetings of compact commission. 9 1116. Operation of compact commission. 10 1117. General powers and duties. 11 1118. Other powers and duties. 12 1119. Compact rule making. 13 1120. Status and relationship to member states. 14 1121. Rights and responsibilities of member states. 15 1122. Enforcement of compact. 16 1123. Legal actions against compact. 17 1124. Restrictions on authority. 18 1125. Construction, savings and severability. 19 § 1113. Purposes. The purposes of the compact are: 20 a. To enable member states to act jointly and cooperatively to create 21 more uniform, effective, and efficient breed specific rules and regu- 22 lations relating to the permitted and prohibited use of drugs and medi- 23 cations for the health and welfare of the horse and the integrity of 24 thoroughbred racing, and testing for such substances, in or affecting a 25 member state; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01193-01-1A. 1312 2 1 b. To authorize the New York state gaming commission to participate in 2 the compact. 3 § 1114. Definitions. For the purposes of this article, the following 4 terms shall have the following meanings: 5 a. "Compact commission" means the organization of delegates from the 6 member states that is authorized and empowered by the compact to carry 7 out the purposes of the compact; 8 b. "Compact rule" means a rule or regulation adopted by a member state 9 regulating the permitted and prohibited use of drugs and medications for 10 the health and welfare of the thoroughbred horse and the integrity of 11 thoroughbred racing, and testing for such substances, in live pari-mutu- 12 el thoroughbred horse racing that occurs in or affects such states; 13 c. "Delegate" means the chairperson of the member state racing commis- 14 sion or similar regulatory body in a state, or such person's designee, 15 who represents the member state, as a voting member of the compact 16 commission and anyone who is serving as such person's alternate; 17 d. "Thoroughbred equine drug rule" means a rule or regulation that 18 relates to the administration of drugs, medications, or other substances 19 to a thoroughbred horse that may participate in live thoroughbred horse 20 racing with pari-mutuel wagering including, but not limited to, the 21 regulation of the permissible use of such substances to ensure the 22 integrity of thoroughbred racing and the health, safety and welfare of 23 thoroughbred race horses, appropriate sanctions for rule violations, and 24 quality laboratory testing programs to detect such substances in the 25 bodily system of a thoroughbred race horse; 26 e. "Live racing" means live thoroughbred horse racing with pari-mutuel 27 wagering; 28 f. "Member state" means each state that has enacted the compact; 29 g. "National industry stakeholder" means a non-governmental organiza- 30 tion that from a national perspective significantly represents one or 31 more categories of participants in live thoroughbred racing and pari-mu- 32 tuel wagering; 33 h. "Participants in live thoroughbred racing" means all persons who 34 participate in, operate, provide industry services for, or are involved 35 with live thoroughbred racing with pari-mutuel wagering; 36 i. "State" means each of the several states of the United States, the 37 District of Columbia, the Commonwealth of Puerto Rico, and each territo- 38 ry or possession of the United States; and 39 j. "State racing commission" means the state racing commission, or its 40 equivalent, in each member state. Where a member state has more than 41 one, it shall mean all such racing commissions, or their equivalents. 42 § 1115. Composition and meetings of compact commission. The member 43 states shall create and participate in a compact commission as follows: 44 a. The compact shall come into force when enacted by any two eligible 45 states, and shall thereafter become effective as to any other member 46 state that enacts the compact. Any state that has adopted or authorized 47 pari-mutuel wagering or live thoroughbred horse racing shall be eligible 48 to become a party to the compact. A compact rule shall not become effec- 49 tive in a new member state based merely upon it entering the compact. 50 b. The member states hereby create the interstate anti-doping and drug 51 testing standards compact commission, a body corporate and an interstate 52 governmental entity of the member states, to coordinate the rule making 53 actions of each member state racing commission through a compact commis- 54 sion. 55 c. The compact commission shall consist of one delegate, the chair- 56 person of the state racing commission or such person's designee, fromA. 1312 3 1 each member state. When a delegate is not present to perform any duty in 2 the compact commission, a designated alternate may serve. The person who 3 represents a member state in the compact commission shall serve and 4 perform such duties without compensation or remuneration; provided, that 5 subject to the availability of budgeted funds, each may be reimbursed 6 for ordinary and necessary costs and expenses. The designation of a 7 delegate, including the alternate, shall be effective when written 8 notice has been provided to the compact commission. The delegate, 9 including the alternate, must be a member or employee of the state 10 racing commission. 11 d. The compact delegate from each state shall participate as an agent 12 of the state racing commission. Each delegate shall have the assistance 13 of the state racing commission in regard to all decision making and 14 actions of the state in and through the compact commission. 15 e. Each member state, by its delegate, shall be entitled to one vote 16 in the compact commission. A majority vote of the total number of deleg- 17 ates shall be required to propose a compact rule, receive and distribute 18 any funds, and to adopt, amend, or rescind the by-laws. A compact rule 19 shall take effect in and for each member state when adopted by a super 20 majority vote of eighty percent of the total number of member states. 21 Other compact actions shall require a majority vote of the delegates who 22 are meeting. 23 f. Meetings and votes of the compact commission may be conducted in 24 person or by telephone or other electronic communication. Meetings may 25 be called by the chairperson of the compact commission or by any two 26 delegates. Reasonable notice of each meeting shall be provided to all 27 delegates serving in the compact commission. 28 g. No action may be taken at a compact commission meeting unless there 29 is a quorum, which is either a majority of the delegates in the compact 30 commission, or where applicable, all the delegates from any member 31 states who propose or are voting affirmatively to adopt a compact rule. 32 h. Once effective, the compact shall continue in force and remain 33 binding according to its terms upon each member state; provided that, a 34 member state may withdraw from the compact by repealing the statute that 35 enacted the compact into law. The racing commission of a withdrawing 36 state shall give written notice of such withdrawal to the compact chair- 37 person, who shall notify the member state racing commissions. A with- 38 drawing state shall remain responsible for any unfulfilled obligations 39 and liabilities. The effective date of withdrawal from the compact shall 40 be the effective date of the repeal. 41 § 1116. Operation of compact commission. The compact commission is 42 hereby granted, so that it may be an effective means to pursue and 43 achieve the purposes of each member state in the compact, the power and 44 duty: 45 a. to adopt, amend, and rescind by-laws to govern its conduct, as may 46 be necessary or appropriate to carry out the purposes of the compact; to 47 publish them in a convenient form; and to file a copy of them with the 48 state racing commission of each member state; 49 b. to elect annually from among the delegates, including alternates, a 50 chairperson, vice-chairperson, and treasurer with such authority and 51 duties as may be specified in the by-laws; 52 c. to establish and appoint committees which it deems necessary for 53 the carrying out of its functions, including advisory committees which 54 shall be comprised of national industry stakeholders and organizations 55 and such other persons as may be designated in accordance with theA. 1312 4 1 by-laws, to obtain their timely and meaningful input into the compact 2 rule making processes; 3 d. to establish an executive committee, with membership established in 4 the by-laws, which shall oversee the day-to-day activities of compact 5 administration and management by the executive director and staff; hire 6 and fire as may be necessary after consultation with the compact commis- 7 sion; administer and enforce compliance with the provisions, by-laws, 8 and rules of the compact; and perform such other duties as the by-laws 9 may establish; 10 e. to create, appoint, and abolish all those offices, employments, and 11 positions, including an executive director, useful to fulfill its 12 purposes; 13 f. to delegate day-to-day management and administration of its duties, 14 as needed, to an executive director and support staff; and 15 g. to adopt an annual budget sufficient to provide for the payment of 16 the reasonable expenses of its establishment, organization, and ongoing 17 activities; provided, that the budget shall be funded by only voluntary 18 contributions. 19 § 1117. General powers and duties. To allow each member state, as and 20 when it chooses, to achieve the purpose of the compact through joint and 21 cooperative action, the member states are hereby granted the power and 22 duty, by and through the compact commission: 23 a. to act jointly and cooperatively to create a more equitable and 24 uniform pari-mutuel thoroughbred racing and wagering interstate regula- 25 tory framework by the adoption of standardized rules for the permitted 26 and prohibited use of drugs and medications for the health, and welfare 27 of the thoroughbred horse and the integrity of thoroughbred racing, 28 including rules governing the use of drugs and medications and drug 29 testing; and 30 b. to propose and adopt breed specific compact equine drugs and medi- 31 cations rules for the health, and welfare of the thoroughbred horse, 32 including rules governing the permitted and prohibited use of drugs and 33 medications and drug testing, which shall have the force and effect of 34 state rules or regulations in the member states, to govern live pari-mu- 35 tuel thoroughbred horse racing. 36 § 1118. Other powers and duties. The compact commission may exercise 37 such incidental powers and duties as may be necessary and proper for it 38 to function in a useful manner, including but not limited to the power 39 and duty: 40 a. to enter into contracts and agreements with governmental agencies 41 and other persons, including officers and employees of a member state, 42 to provide personal services for its activities and such other services 43 as may be necessary; 44 b. to borrow, accept, and contract for the services of personnel from 45 any state, federal, or other governmental agency, or from any other 46 person or entity; 47 c. to receive information from and to provide information to each 48 member state racing commission, including its officers and staff, on 49 such terms and conditions as may be established in the by-laws; 50 d. to acquire, hold, and dispose of any real or personal property by 51 gift, grant, purchase, lease, license, and similar means and to receive 52 additional funds through gifts, grants, and appropriations; 53 e. when authorized by a compact rule, to conduct hearings and render 54 reports and advisory decisions and orders; andA. 1312 5 1 f. to establish in the by-laws the requirements that shall describe 2 and govern its duties to conduct open or public meetings and to provide 3 public access to compact records and information. 4 § 1119. Compact rule making. In the exercise of its rule making 5 authority, the compact commission shall: 6 a. engage in formal rule making pursuant to a process that substan- 7 tially conforms to the Model State Administrative Procedure Act of 1981 8 as amended, as may be appropriate to the actions and operations of the 9 compact commission; 10 b. gather information and engage in discussions with advisory commit- 11 tees, national industry stakeholders, and others, including an opportu- 12 nity for industry organizations to submit input to member state racing 13 commissions on the state level, to foster, promote and conduct a colla- 14 borative approach in the design and advancement of compact rules in a 15 manner that serves the best interests of thoroughbred racing and as 16 established in the by-laws; 17 c. direct the publication in each member state of each thoroughbred 18 equine drug rule proposed by the compact commission, conduct a review of 19 public comments received by each member state racing commission and the 20 compact commission in response to the publication of its rule making 21 proposals, consult with national industry stakeholders and participants 22 in live thoroughbred racing with regard to such process and any 23 revisions to the compact rule proposal, and meet upon the completion of 24 the public comment period to conduct a vote on the adoption of the 25 proposed compact rule as a state rule in the member states; and 26 d. have a standing committee that reviews at least quarterly the 27 participation in and value of compact rules and, when it determines that 28 a revision is appropriate or when requested to by any member state, 29 submits a revising proposed compact rule. To the extent a revision would 30 only add or remove a member state or states from where a compact rule 31 has been adopted, the vote required by this section shall be required of 32 only such state or states. The standing committee shall gather informa- 33 tion and engage in discussions with national industry stakeholders, who 34 may also directly recommend a compact rule proposal or revision to the 35 compact committee. 36 § 1120. Status and relationship to member states. a. The compact 37 commission, as an interstate governmental entity, shall be exempt from 38 all taxation in and by the member states. 39 b. The compact commission shall not pledge the credit of any member 40 state except by and with the appropriate legal authority of that state. 41 c. Each member state shall reimburse or otherwise pay the expenses of 42 its delegate, including any alternate, in the compact commission. 43 d. No member state, except as provided in section eleven hundred twen- 44 ty-three of this article, shall be held liable for the debts or other 45 financial obligations incurred by the compact commission. 46 e. No member state shall have, while it participates in the compact 47 commission, any claim to or ownership of any property held by or vested 48 in the compact commission or to any compact commission funds held pursu- 49 ant to the compact except for state license or other fees or moneys 50 collected by the compact commission as its agent. 51 f. The compact dissolves upon the date of the withdrawal of the member 52 state that reduces membership in the compact to one state. Upon dissol- 53 ution, the compact becomes null and void and shall be of no further 54 force or effect, although thoroughbred equine drug rules adopted through 55 the compact shall remain state rules in each member state that had 56 adopted them, and the business and affairs of the compact shall beA. 1312 6 1 concluded and any surplus funds shall be distributed to the former 2 member states in accordance with the by-laws. 3 § 1121. Rights and responsibilities of member states. a. Each member 4 state in the compact shall accept the decisions, duly applicable to it, 5 of the compact commission in regard to compact rules and rule making. 6 b. The compact shall not be construed to diminish or limit the powers 7 and responsibilities of the member state racing commission or similar 8 regulatory body, or to invalidate any action it has previously taken, 9 except to the extent it has, by its compact delegate, expressed its 10 consent to a specific rule or other action of the compact commission. 11 The compact delegate from each state shall serve as the agent of the 12 state racing commission and shall possess substantial knowledge and 13 experience as a regulator or participant in the thoroughbred horse 14 racing industry. 15 § 1122. Enforcement of compact. a. The compact commission shall have 16 standing to intervene in any legal action that pertains to the subject 17 matter of the compact and might affect its powers, duties, or actions. 18 b. The courts and executive in each member state shall enforce the 19 compact and take all actions necessary and appropriate to effectuate its 20 purposes and intent. Compact provisions, by-laws, and rules shall be 21 received by all judges, departments, agencies, bodies, and officers of 22 each member state and its political subdivisions as evidence of them. 23 § 1123. Legal actions against compact. a. Any person may commence a 24 claim, action, or proceeding against the compact commission in state 25 court for damages. The compact commission shall have the benefit of the 26 same limits of liability, defenses, rights to indemnity and defense by 27 the state, and other legal rights and defenses for non-compact matters 28 of the state racing commission in the state. All legal rights and 29 defenses that arise from the compact shall also be available to the 30 compact commission. 31 b. A compact delegate, alternate, or other member or employee of a 32 state racing commission who undertakes compact activities or duties does 33 so in the course of business of their state racing commission, and shall 34 have the benefit of the same limits of liability, defenses, rights to 35 indemnity and defense by the state, and other legal rights and defenses 36 for non-compact matters of state employees in their state. The executive 37 director and other employees of the compact commission shall have the 38 benefit of these same legal rights and defenses of state employees in 39 the member state in which they are primarily employed. All legal rights 40 and defenses that arise from the compact shall also be available to 41 them. 42 c. Each member state shall be liable for and pay judgments filed 43 against the compact commission to the extent related to its partic- 44 ipation in the compact. Where liability arises from action undertaken 45 jointly with other member states, the liability shall be divided equally 46 among the states for whom the applicable action or omission of the exec- 47 utive director or other employees of the compact commission was under- 48 taken; and no member state shall contribute to or pay, or be jointly or 49 severally or otherwise liable for, any part of any judgment beyond its 50 share as determined in accordance with this section. 51 § 1124. Restrictions on authority. a. New York substantive state laws 52 applicable to pari-mutuel thoroughbred horse racing and wagering shall 53 remain in full force and effect. 54 b. Compact rules shall not preclude subsequent rulemaking in New York 55 state on the same or related matter as set forth in section nine hundredA. 1312 7 1 two of this chapter. The most recently adopted rule shall thereby become 2 the governing law. 3 c. New York state shall not participate in or apply this interstate 4 compact to any aspect of standardbred racing. 5 § 1125. Construction, savings and severability. a. The compact shall 6 be liberally construed so as to effectuate its purposes. The provisions 7 of the compact shall be severable and if any phrase, clause, sentence, 8 or provision of the compact is declared to be contrary to the constitu- 9 tion of the United States or of any member state, or the applicability 10 of the compact to any government, agency, person, or circumstance is 11 held invalid, the validity of the remainder of the compact and its 12 applicability to any government, agency, person, or circumstance shall 13 not be affected. If all or some portion of the compact is held to be 14 contrary to the constitution of any member state, the compact shall 15 remain in full force and effect as to the remaining member states and in 16 full force and effect as to the state affected as to all severable 17 matters. 18 b. In the event of any allegation, finding, or ruling against the 19 compact or its procedures or actions, provided that a member state has 20 followed the compact's stated procedures, any rule it purported to adopt 21 using the procedures of this statute shall constitute a duly adopted and 22 valid state rule. 23 § 2. This act shall take effect immediately.