Section 407. Licenses for quarter horse race meetings

1. Any association or
  corporation  desiring  to  conduct  quarter horse race meetings at which
  pari-mutuel betting shall be permitted may apply annually to  the  state
  racing and wagering board for a license so to do. If, in the judgment of
  such  board the public interest, convenience or necessity will be served
  thereby and a proper case for the issuance  of  such  license  is  shown
  consistent  with the purposes of sections two hundred twenty-two through
  seven hundred five of this chapter and  the  best  interests  of  racing
  generally,  it  may  grant such license for a time ending not later than
  the thirty-first day of December next, specifying dates and hours during
  which and the place where the licensee may operate.
    2. Every such license shall be issued upon condition:
    a. That every quarter horse race meeting at which pari-mutuel  betting
  is  conducted  shall  be  subject  to  the  supervision  of  and  to the
  reasonable rules and regulations from time to  time  prescribed  by  the
  state racing and wagering board, and
    b. That pari-mutuel betting conducted thereunder shall also be subject
  to  the  supervision  of  and to the reasonable regulations from time to
  time prescribed by the state tax commission. Any such license  may  also
  be  issued  upon  any other condition that the state racing and wagering
  board shall determine to be necessary or desirable to  insure  that  the
  public interest, convenience or necessity is served.
    3.  Applications  for  licenses  shall  be  in  such  form  as  may be
  prescribed by the board and shall  contain  such  information  or  other
  material  or  evidence  as  the board may require.  Each application for
  renewal of a license shall be deemed to be  an  application  for  a  new
  license. The fee for such licenses shall be one hundred dollars for each
  racing  day  payable  in  installments  in advance of each week's racing
  which sums shall be paid into the general fund of the state treasury  by
  the  board.   The term "racing week" shall include those days as defined
  by the rules and regulations of the state racing and wagering board.
    4. In considering an application for a license under this section  the
  state  racing and wagering board may give consideration to the number of
  licenses already granted and to the location of  the  tracks  previously
  licensed.   No such license shall be granted to any track located within
  the corporate limits of a city of the first class. No such license shall
  be granted to any quarter horse racetrack located within fifty miles  of
  any  existing  harness,  thoroughbred or quarter horse track except with
  the consent of  the  licensee  located  within  such  fifty  mile  area,
  provided,  however,  that in the counties of Suffolk, Niagara and Albany
  such license shall be granted to any  quarter  horse  racetrack  located
  more  than  thirty-five miles from any existing harness, thoroughbred or
  quarter horse track, except with the consent  of  the  licensee  located
  within such thirty-five mile area.
    5.  The  board  may  refuse  to  grant  a license to an association or
  corporation if it shall determine that:
    a. any officer, director, member or stockholder of such association or
  corporation applying for a license, or of any association or corporation
  which owns stock or  shares  in  the  profits  or  participates  in  the
  management,  of  the  affairs of such applicant, or which leases to such
  applicant the track where it shall operate:
    (i) has been convicted of a crime involving moral turpitude;
    (ii) has engaged in bookmaking or other forms of illegal gambling;
    (iii) has been found guilty  of  any  fraud  or  misrepresentation  in
  connection with racing or breeding;
    (iv)  has  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;

    (v) has violated any rule, regulation or order of the board; or
    b.  the  experience,  character  or  general  fitness  of any officer,
  director  or  stockholder  of  any  of  the  aforesaid  associations  or
  corporations  is  such  that the participation of such person in quarter
  horse racing or related activities would be inconsistent with the public
  interest, convenience or necessity or with the best interests of  racing
  generally;  but  if  the  board  determines  that  the  interest  of any
  stockholder referred to in this paragraph or  in  paragraph  a  of  this
  subdivision  is  insufficient  in  the  opinion  of  the board to affect
  adversely the conduct  of  pari-mutuel  quarter  horse  racing  by  such
  association  or  corporation  in  accordance with the provisions of this
  article, the board may disregard such interest in determining whether or
  not to grant a license to such association or corporation; or
    c. the applicant is not the owner  of  the  track  at  which  it  will
  conduct pari-mutuel quarter horse racing pursuant to the license applied
  for, or that any person, firm, association or corporation other than the
  applicant  shares, or will share, in the profits of the applicant, other
  than by dividends as a stockholder, or participates or will  participate
  in the management of the affairs of the applicant.
    6. The board shall also have power to refuse to grant a license:
    a.  to  any  association or corporation, the charter or certificate of
  incorporation of which shall fail to contain a provision  requiring  any
  stockholder,  upon  written demand of the association or corporation, to
  sell his stock to the association or corporation at a price to be  fixed
  in  the manner provided in article five of the business corporation law,
  provided such demand be made pursuant to written direction of the board;
  and from and after the date of the making of  such  demand,  prohibiting
  the  transfer of such certificate of stock, except to the association or
  corporation; or
    b. to any association or corporation which, having  been  a  licensee,
  has  failed  in  the opinion of the board to properly maintain its track
  and plant in good condition or has failed to make adequate provision for
  rehabilitation and capital improvements to its track and plant.
    7. Pending final determination of any question under this section, the
  board may issue a temporary license upon such terms and conditions as it
  may deem necessary, desirable or proper to effectuate the provisions  of
  sections  two  hundred  twenty-two  through  seven  hundred five of this
  chapter.
    8. Notwithstanding any other provision  of  this  article,  the  state
  racing  and wagering board may grant a license to any authorized quarter
  horse  racing  association  or  corporation  to  hold  and  conduct  one
  additional quarter horse race meeting of not more than one racing week's
  duration,  with  pari-mutuel  betting,  on any quarter mile track within
  this state.
    9. The board shall have power to  direct  that  every  certificate  of
  stock of any association or corporation licensed under the provisions of
  sections  two  hundred  twenty-two  through  seven  hundred five of this
  chapter shall bear a legend plainly and prominently imprinted  upon  the
  face   of  the  certificate  reading:  "This  certificate  of  stock  is
  transferable only subject to the  provisions  of  section  four  hundred
  three of the racing, pari-mutuel wagering and breeding law".