S T A T E   O F   N E W   Y O R K
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                                  3282

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 13, 2009
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  video  lottery  gaming  at
  commercial bowling establishments

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.   Subparagraph (iii) of paragraph 1  of  subdivision  b  of
section  1612  of the tax law, as separately amended by chapters 140 and
286 of the laws of 2008, is amended to read as follows:
  (iii) less an additional vendor's marketing allowance at a rate of ten
percent for the first one hundred million  dollars  annually  and  eight
percent  thereafter  of  the  total  revenue wagered at the vendor track
after payout for prizes to be used by the vendor track for the marketing
and promotion and associated costs of its  video  lottery  gaming  oper-
ations  and  pari-mutuel  horse  racing  operations, as long as any such
costs associated with pari-mutuel horse racing operations simultaneously
encourage increased attendance at such  vendor's  video  lottery  gaming
facilities, consistent with the customary manner of marketing comparable
operations in the industry and subject to the overall supervision of the
division;  provided,  however,  that  the  additional vendor's marketing
allowance shall not exceed eight percent in any year for any operator of
a racetrack located in the county of Westchester  or  Queens;  provided,
however,  a  vendor  track that receives a vendor fee pursuant to clause
(G) of [this] subparagraph (II) OF THIS PARAGRAPH shall not receive  the
additional  vendor's  marketing allowance.   A COMMERCIAL BOWLING ESTAB-
LISHMENT THAT IS AUTHORIZED BY SECTION SIXTEEN  HUNDRED  SEVENTEEN-A  OF
THIS  ARTICLE  SHALL  BE ENTITLED TO A VENDOR FEE OF NOT LESS THAN 20.25
PERCENT IN THE FIRST, SECOND AND THIRD YEARS OF VIDEO LOTTERY GAMING  AT
SUCH  COMMERCIAL  BOWLING  ESTABLISHMENT, 20.0 PERCENT IN THE FOURTH AND
FIFTH YEARS AND 17.5 PERCENT IN ALL SUBSEQUENT  YEARS.  In  establishing

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08959-02-9
              

S. 3282                             2

the  vendor  fee,  the division shall ensure the maximum lottery support
for education  while  also  ensuring  the  effective  implementation  of
section   sixteen  hundred  seventeen-a  of  this  article  through  the
provision of reasonable reimbursements and compensation to vendor tracks
for  participation  in such program.  Within twenty days after any award
of lottery prizes, the division shall pay into the  state  treasury,  to
the credit of the state lottery fund, the balance of all moneys received
from  the  sale of all tickets for the lottery in which such prizes were
awarded remaining after provision for the payment of  prizes  as  herein
provided.  Any  revenues derived from the sale of advertising on lottery
tickets shall be deposited in the state lottery fund.
  S 2. Section 1617-a of the tax law is amended by adding a new subdivi-
sion a-1 to read as follows:
  A-1. THE DIVISION OF THE LOTTERY  IS  HEREBY  AUTHORIZED  TO  LICENSE,
PURSUANT  TO  RULES AND REGULATIONS TO BE PROMULGATED BY THE DIVISION OF
THE LOTTERY, THE OPERATION OF VIDEO LOTTERY GAMING AT COMMERCIAL BOWLING
ESTABLISHMENTS THAT ARE DULY LICENSED TO SERVE ALCOHOLIC BEVERAGES, HAVE
SEGREGATED AREAS THAT PROHIBIT ACCESS TO PERSONS UNDER TWENTY-ONE  YEARS
OF  AGE,  AND  THAT  ARE  LOCATED IN A COUNTY OR COUNTIES IN WHICH VIDEO
LOTTERY GAMING HAS BEEN AUTHORIZED PURSUANT TO LOCAL LAW. SUCH RULES AND
REGULATIONS SHALL PROVIDE, AS A CONDITION OF LICENSURE, THAT SUCH  BOWL-
ING ESTABLISHMENTS TO BE LICENSED ARE CERTIFIED TO BE IN COMPLIANCE WITH
ALL STATE AND LOCAL FIRE AND SAFETY CODES, THAT THE DIVISION IS AFFORDED
ADEQUATE  SPACE,  INFRASTRUCTURE, AND AMENITIES CONSISTENT WITH INDUSTRY
STANDARDS FOR SUCH VIDEO LOTTERY GAMING OPERATIONS AND  TO  ENSURE  THAT
PERSONS  UNDER  TWENTY-ONE  YEARS OF AGE ARE PROHIBITED ACCESS FROM SUCH
AREAS, THAT EMPLOYEES INVOLVED IN THE OPERATION OF VIDEO LOTTERY  GAMING
PURSUANT  TO THIS SECTION ARE LICENSED BY THE RACING AND WAGERING BOARD,
AND SUCH OTHER TERMS AND CONDITIONS OF LICENSURE  AS  THE  DIVISION  MAY
ESTABLISH.    NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF LAW, VIDEO
LOTTERY GAMING AT A COMMERCIAL BOWLING ESTABLISHMENT  PURSUANT  TO  THIS
SECTION SHALL BE DEEMED AN APPROVED ACTIVITY FOR SUCH BOWLING ESTABLISH-
MENT  UNDER  THE  RELEVANT  CITY,  COUNTY,  TOWN, OR VILLAGE LAND USE OR
ZONING ORDINANCES, RULES, OR REGULATIONS. NO BOWLING ESTABLISHMENT OPER-
ATING VIDEO LOTTERY GAMING PURSUANT  TO  THIS  SECTION  MAY  HOUSE  SUCH
GAMING  ACTIVITY  IN  A  STRUCTURE DEEMED OR APPROVED BY THE DIVISION AS
"TEMPORARY" FOR A DURATION OF LONGER THAN EIGHTEEN MONTHS.
  S 3. This act shall take effect immediately; provided,  however,  that
the  amendment  to  section 1617-a of the tax law made by section two of
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.