RWB-35-11-00006-P Timeframe for the Submission of Audited Financial Statements of Thoroughbred Horsemen's Organizations

8/31/11 N.Y. St. Reg. RWB-35-11-00006-P

NEW YORK STATE REGISTER

VOLUME XXXIII, ISSUE 35

August 31, 2011

RULE MAKING ACTIVITIES

RACING AND WAGERING BOARD

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. RWB-35-11-00006-P

Timeframe for the Submission of Audited Financial Statements of Thoroughbred Horsemen's Organizations

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Amendment of section 4003.51(e) of Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutuel Wagering and Breeding Law, sections 101, 228 and 231

Subject:

Timeframe for the submission of audited financial statements of thoroughbred horsemen's organizations.

Purpose:

To change the financial report filing date from April 15 to 105 days following the end of the organization's fiscal year.

Text of proposed rule:

Section 4003.51(e) is hereby amended to read:

(e) No later than one hundred five days after the close of the organization’s fiscal year, [On or before April 15th of each year], any organization which has received monies pursuant to this rule during that [the] prior [calendar] year shall file with the board and the track a statement verified by a certified public accountant which shows the financial condition of such organization and contains an itemized statement of the receipts and disbursements of such organization for such prior year.

Text of proposed rule and any required statements and analyses may be obtained from:

John J. Googas, Racing and Wagering Board, 1 Broadway Center, Suite 600, Schenectady, NY 12305, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. Statutory authority: Racing, Pari-Mutuel Wagering and Breeding Law, § § 101, 228, and 231. Section 101.1 vests the Racing and Wagering Board with general jurisdiction over all horse racing activities and over the corporations, persons, and associations engaged in pari-mutuel horse racing. Section 231 authorizes the conduct of pari-mutuel betting on horse races if conducted in the manner and subject to supervision provided by law and rules. Section 228.2 provides for payment of funds to representative horsemen's organizations to be used for specified purposes.

2. Legislative objectives: To enable the Board to monitor the expenditure of statutorily directed funds by representative thoroughbred horsemen's association in order to assure compliance with statutory requirements.

3. Needs and benefits: This rulemaking is necessary to address situations where a representative horsemen's association does not use the calendar year for financial reporting purposes. The existing rule requires that an audited financial statement be filed on or before April 15 of the year following the end of the calendar year. The amendment being considered would change the reference language for the report filing date from April 15 of the year following the end of the calendar year to 105 days following the close of the organization's fiscal year. This would preserve the existing 3.5 months for filing while reflecting the fact that all organizations do not use the calendar year for financial reporting purposes.

4. Costs:

(a) Costs to regulated parties for the implementation of and continuing compliance with the rule: None.

(b) Costs to the agency, the state and local governments for the implementation and continuation of the rule: None.

(c) The information, including the source(s) of such information and the methodology upon which the cost analysis is based: This amendment merely changes the reference date for filing; no additional requirements would be imposed.

5. Local government mandates: None.

6. Paperwork: None. There are no new requirements.

7. Duplication: None.

8. Alternatives: The Board did not consider any significant alternatives. The existing reference date for filing (April 15) is based on a faulty presumption that all subject organizations operate on a calendar year fiscal basis. This has resulted in confusion as to when the filing is required when the fiscal year ends after April 15 and has resulted in a substantial gap between the close of a fiscal year and filing. Failure to amend the Rule will continue this confusion and gap. No adverse comments were received based on pre-proposal solicitation from the industry.

9. Federal standards: None.

10. Compliance schedule: Once adopted, the rule can be implemented as soon as it is published in the State Register.

Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

This proposal does not require a Regulatory Flexibility Statement, Rural Area Flexibility Statement or Job Impact Statement since the amendment continues the Board’s current rule on financial statements and merely re-establishes in other reference language the same timeframe applicable to the due date for these submissions. In addition, this rule does not affect small business, local governments, jobs or rural areas. Further, this proposal will not impose an adverse economic impact on reporting, record keeping or other compliance requirements on small businesses in rural or urban areas nor on employment opportunities. Due to the straightforward nature of the rulemaking, there is no need for the development of a small business regulation guide to assist in compliance. These provisions are clear as to what the timeframes for the submission are and what is necessary to comply with the rule.