senate Bill S3334B

Relates to the New York city off-track betting corporation and establishes the New York city off-track betting corporation fund; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 17 / Feb / 2011
    • REFERRED TO RACING, GAMING AND WAGERING
  • 03 / Mar / 2011
    • AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
  • 03 / Mar / 2011
    • PRINT NUMBER 3334A
  • 15 / Mar / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO RACING, GAMING AND WAGERING
  • 23 / Jan / 2012
    • AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
  • 23 / Jan / 2012
    • PRINT NUMBER 3334B

Summary

Relates to the New York city off-track betting corporation and establishes the New York city off-track betting corporation fund.

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Bill Details

Versions:
S3334
S3334A
S3334B
Legislative Cycle:
2011-2012
Current Committee:
Senate Racing, Gaming And Wagering
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Rpld §610 sub 4 & 5, §§611, 612, 613, 614, 616 & 620, amd RWB L, generally; add §95-h, St Fin L

Sponsor Memo

BILL NUMBER:S3334B

TITLE OF BILL:
An act
to amend the racing, pari-mutuel wagering and breeding law and the state
finance law, in relation to the New York city off-track betting
corporation and establishing the New York city off-track betting
corporation fund; and to repeal certain provisions of the racing,
pari-mutuel wagering and breeding law relating thereto

PURPOSE:
This bill would allow a vendor selected by an RFP process, to run the
New York City off-track betting corporation and resume operations in
a manner that would support the New York state horse racing industry.

SUMMARY OF PROVISIONS:
Section 1. Subdivision 9 of section 602 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 115 of the laws of
2008.
Section 2. Section 603 of the racing of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 115 of the laws of
2008.
Section 3. Section 617 of the racing, pari-mutuel wagering and
breeding law.
Section 4. The opening paragraph of section 621 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 115 of
the laws of 2008.
Section 5. The racing, pari-mutuel wagering and breeding law amended
by adding a new section 625.
Section 6. Clause (E) of subparagraph 5
and clause (F) of subparagraph 6 of the paragraph b of subdivision 1
of section 1016 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008.
Section 7. Section 1017 of the racing, pari-mutuel wagering and
breeding law, as amended by chapter 18 of the laws of 2008.
Section 8. Subdivision 2 of section 529 of the racing, pari-mutuel
wagering and breeding law.
Section 9. Subdivision 6 of section 527 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 115 of the laws of
2008.
Section 10. Subdivision 2 of section 610 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 115 of the laws of
2008.
Section 11. Subdivision 6 of section 527 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 115 of the laws of
2008.
Section 12. The racing, pari-mutuel wagering and breeding law, as
amended by adding a new section 626.
Section 13. The state finance law is amended by adding a new section
95-h.
Section 14. The racing, pari-mutuel wagering and breeding law is

amended by adding a new section 113.
Section 15. Subdivision 4 of
section 606 of the racing, pari-mutuel wagering and breeding law, as
amended by chapter 115 of the laws of 2008.
Sections 16. Subdivisions 4 and 5 of section 610 of the racing,
pari-mutuel wagering and breeding law are REPEALED.
Section 17. Sections 611,612, 613, 614,616 and 620 of the racing,
pari-mutuel wagering and breeding law are REPEALED.
Section 28. This act shall take effect immediately.

BUDGET IMPLICATIONS:
This bill would lower state finances by $5.7 million in SFY 2011-12.
The $4-4 million in additional revenues from the pari-mutuel taxes
and are direction of New York City's OTB payments to the state would
be offset by a New York City off-track betting vendor operator fee of
$2.5 million; the OTBs now keeping $3 million in un-cashed tickets
that previously went to the State; and $4.6 million in reimbursements
to New York City for paying New York City off track betting retiree
health benefits.

STATEMENT IN SUPPORT:
The closing of operations of the New York City off-track betting
corporation was preventable. For years the corporation has struggled,
yet the current board of directors failed to address the factors that
hampered the success of the corporation and failed to formulate a
profitable business plan. As a public benefit corporation, integral
to the New York State racing industry, and as an employer of
hundreds, the failure of this corporation is felt by many.
Resurrecting this corporation is necessary, but only in a manner that
allows the corporation to be profitable long term.

By restructuring the corporation to allow for a vendor operator, be it
an individual, partnership, or private or public corporation, the
state will encourage the participation of the best and the brightest
of the business world to bring new ideas and new life to this
corporation. The selection process will be fair and impartial, and
open to public input.

The vendor will have a vested interest in the success of the
corporation, and thus better motivated to run the operation
efficiently.

The demise of operations of the corporation did bring to light factors
that may be unfairly burdening not only NYCOTB but the other OTBs of
the state as well. This bill addresses both outdated obligations as
well as unfair competition from out-of-state entities to give all
OTBs in this state a better financial future.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3334--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 17, 2011
                               ___________

Introduced  by  Sens.  LANZA,  GOLDEN,  PARKER -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Racing,
  Gaming  and  Wagering  --  committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to  the  Committee  on  Racing, Gaming and Wagering in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law and
  the state finance law, in relation to  the  New  York  city  off-track
  betting  corporation  and  establishing  the  New  York city off-track
  betting corporation fund; and to  repeal  certain  provisions  of  the
  racing, pari-mutuel wagering and breeding law relating thereto

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

  Section 1. Subdivision 9 of section 602  of  the  racing,  pari-mutuel
wagering  and  breeding  law,  as  amended by chapter 115 of the laws of
2008, is amended and a new subdivision 15 is added to read as follows:
  9. "Cost of corporation's functions." All costs and expenses  incurred
by  the  corporation in connection with the performance of the functions
of the corporation, including, but not limited to, operating expenses of
the corporation, the cost of acquiring, constructing or equipping branch
offices and other facilities  and  premises  of  the  corporation,  [and
interest  and  principal  on  bonds,]  notes or other obligations of the
corporation issued to finance the acquisition, construction or equipment
of such offices, facilities or premises.
  15. "VENDOR OPERATOR." THE VENDOR OPERATOR SHALL BE SELECTED  PURSUANT
TO  THE  PROVISIONS SET FORTH IN SECTION SIX HUNDRED TWENTY-FIVE OF THIS
ARTICLE AND SHALL BE RESPONSIBLE FOR THE ADMINISTRATION AND OPERATION OF
THE CORPORATION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08961-05-2

S. 3334--B                          2

  S 2. Section 603 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 115 of the laws of 2008, is  amended  to  read  as
follows:
  S  603.  New York city off-track betting corporation. 1. A corporation
to be known as the "New York  city  off-track  betting  corporation"  is
hereby  created.  Such corporation shall be a body corporate and politic
constituting a public benefit corporation. It  shall  be  [administered]
OVERSEEN  by a board of directors consisting of five members, who may be
public officers, appointed by the governor for fixed terms as hereinaft-
er provided, one of whom shall be appointed on the recommendation of the
temporary president of the senate, and one of whom shall be appointed on
the recommendation of the speaker of the assembly.
  2. THE TERMS OF ALL DIRECTORS SERVING A TERM THAT ENCOMPASSED  JANUARY
TWENTY-FIFTH,  TWO  THOUSAND TWELVE, SHALL BE DEEMED TO HAVE EXPIRED AND
NEW DIRECTORS SHALL  BE  APPOINTED.  Of  the  directors,  one  shall  be
appointed  for  a  term  ending  on  December thirty-first, two thousand
[nine] TWELVE, one for a term ending on December thirty-first, two thou-
sand [ten] THIRTEEN, one for a term ending on December thirty-first, two
thousand [twelve] FOURTEEN, and  the  two  directors  appointed  on  the
recommendation  of the temporary president of the senate and the speaker
of the assembly, for a term ending December thirty-first,  two  thousand
[fourteen]  FIFTEEN.  Upon  the  expiration  of such terms, the terms of
office of their successors  shall  be  six  years.  Vacancies  occurring
otherwise  than  by expiration of term shall be filled for the unexpired
term.
  3. The governor shall designate one of the directors to be chairman of
the board of directors and may at his pleasure, change  his  designation
of any such director to be chairman.
  4.  Each  director  shall  continue to serve until the appointment and
qualification of his successor.
  5. The directors shall be removable for cause by  the  governor,  upon
charges and after a hearing.
  6.  The  [powers]  OVERSIGHT of the corporation shall be vested in and
exercised by the board at a meeting duly held at a  time  fixed  by  any
by-law  adopted  by  the board, or at any duly adjourned meeting of such
meeting or at any meeting held upon reasonable  notice  to  all  of  the
directors,  or  upon written waiver thereof, and a majority of the whole
number of directors shall constitute a quorum[;  provided  that  neither
the  business  nor  the powers of the corporation shall be transacted or
exercised except pursuant to the favorable vote of at least  a  majority
of  the  directors  present at a meeting at which a quorum is in attend-
ance].
  7. The board may delegate to one or more of the  directors,  officers,
agents  or employees of the corporation such powers and duties as it may
deem proper.
  8. The directors shall be reimbursed for their  actual  and  necessary
expenses incurred in the performance of their official duties.
  9.  The  directors may engage in outside employment or in a profession
or business EXCEPT AS AN EXECUTIVE OR  LEGISLATIVE  EMPLOYEE  OR  unless
otherwise  prohibited  from doing so by virtue of holding another public
office subject to the provisions of section seventy-three of the  public
officers law.
  10. The board shall hold an annual meeting.
  11.  The  fiscal year of the corporation shall be the same as [that of
the city, provided, however, that the  corporation  shall  have  a  nine
month  fiscal  year  from  July  first, two thousand eight through March

S. 3334--B                          3

thirty-first, two thousand nine, and then the fiscal year of the  corpo-
ration shall be the same as] the state.
  12.  THE  CORPORATION  WILL BE ADMINISTERED BY THE VENDOR OPERATOR AND
THE POWERS OF THE CORPORATION SHALL BE VESTED IN THE VENDOR OPERATOR.
  S 3. Section 617 of the racing, pari-mutuel wagering and breeding  law
is amended to read as follows:
  S  617.  Exemption  from taxation. [1.] The moneys and property of the
corporation and any property under its jurisdiction, control  or  super-
vision,  and  all  of its activities and operations shall be exempt from
taxation.
  [2. The state covenants with the purchasers of and with all subsequent
holders and transferees of bonds and notes  issued  by  the  corporation
pursuant  to  this  article,  in  consideration of the acceptance of and
payment for the said bonds and notes, that the said bonds and notes  and
the  income  therefrom, and all moneys, funds and revenue pledged to pay
or secure the payment of such bonds and notes shall at all time be  free
from taxation, except for estate and gift taxes and taxes on transfers.]
  S  4.  The opening paragraph of section 621 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter  115  of  the  laws  of
2008, is amended to read as follows:
  Within one hundred twenty days after the end of the fiscal year of the
corporation, the [directors thereof] VENDOR OPERATOR shall submit to the
governor,  the  legislature, the racing and wagering board and the state
comptroller a complete and detailed report setting forth:
  S 5. The racing, pari-mutuel wagering and breeding law is  amended  by
adding a new section 625 to read as follows:
  S  625. SELECTION OF VENDOR OPERATOR. 1. THE NEW YORK STATE RACING AND
WAGERING BOARD SHALL SUBMIT, WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE
OF THIS SECTION, A REQUEST FOR PROPOSALS  FROM  QUALIFYING  ENTITIES  AS
DESCRIBED  IN  THIS SECTION FOR THE PURPOSE OF THE ADMINISTRATING OF THE
CORPORATION. THE ENTITY CHOSEN TO ADMINISTER THE CORPORATION SHALL ENTER
INTO A CONTRACT WITH THE STATE FOR A TERM OF TEN  YEARS,  WHICH  MAY  BE
RENEWED  SUBJECT  TO THE APPROVAL OF THE STATE RACING AND WAGERING BOARD
AND THE APPROVAL OF THE NEW YORK CITY OFF-TRACK BETTING BOARD OF  DIREC-
TORS.
  2.  ELIGIBLE  ENTITIES  SHALL  CONSIST OF INDIVIDUALS, PARTNERSHIPS OR
CORPORATIONS, PUBLIC OR PRIVATE, WHICH ARE REQUIRED  AS  PART  OF  THEIR
PROPOSAL  TO  SUBMIT AT LEAST ONE BUSINESS PLAN FOR THE RE-ESTABLISHMENT
AND CONTINUATION OF A PROFITABLE CORPORATION. IN AWARDING THE  CONTRACT,
THE STATE RACING AND WAGERING BOARD MUST CONSIDER THE FOLLOWING CRITERIA
WITH  RESPECT  TO  EACH APPLICANT: ITS EXPERIENCE IN MANAGING SUCCESSFUL
BUSINESS ENTERPRISES, ITS EXPERIENCE IN THE RACING INDUSTRY, ITS EXPERI-
ENCE IN THE PARI-MUTUEL AND/OR OFF-TRACK BETTING INDUSTRIES, ITS EXPERI-
ENCE IN THE ENTERTAINMENT INDUSTRY,  THE  FEASIBILITY  OF  ITS  PROPOSED
BUSINESS  PLAN  OR  PLANS, AND ITS COMMITMENT TO USE ITS BEST EFFORTS TO
SUPPORT THE VIABILITY OF OFF-TRACK BETTING IN THE CITY OF  NEW  YORK  AS
WELL AS THE RACING INDUSTRY THROUGHOUT THE STATE.
  3.  ALL  BUSINESS PLANS SUBMITTED BY AN ENTITY MUST INCLUDE PROVISIONS
FOR PRIORITY FOR CONSIDERATION FOR EMPLOYMENT BY ANY FORMER EMPLOYEE  OF
THE  CORPORATION  WHOSE  EMPLOYMENT  TERMINATED OTHER THAN FOR CAUSE, BY
RETIREMENT, OR WITH A SEVERANCE AWARD. SUCH PLANS MUST ALSO PROVIDE  FOR
REPRESENTATION OF OFF-TRACK BETTING BRANCH OFFICES, OR AN EQUIVALENT, IN
ALL  OF  THE BOROUGHS OF THE CITY OF NEW YORK, WITH PREFERENCE GIVEN FOR
BUSINESS PLANS THAT HAVE AT LEAST THREE FACILITIES IN EACH  BOROUGH  AND
THAT  MAINTAIN  THE SAME RATIO OF ACCESS TO OFF-TRACK BETTING FACILITIES

S. 3334--B                          4

AS WAS PREVIOUSLY PROVIDED BY THE CORPORATION PRIOR TO  DECEMBER  FIRST,
TWO THOUSAND TEN.
  4.  THE STATE RACING AND WAGERING BOARD SHALL MAKE PUBLIC ITS PRELIMI-
NARY SELECTION OF THE VENDOR OPERATOR NO LATER THAN THREE  MONTHS  AFTER
THE SUBMISSION OF THE REQUEST FOR PROPOSALS, AND ALLOW FOR TWO WEEKS FOR
PUBLIC  COMMENT. THE FINAL SELECTION AND THE CONTRACT BETWEEN THE VENDOR
AND THE STATE MUST BE FINALIZED WITHIN THIRTY DAYS  OF  THE  PRELIMINARY
SELECTION,  BUT  NO  SOONER  THAN THE END OF THE TWO WEEK PUBLIC COMMENT
PERIOD.
  5. THE SELECTION OF VENDOR MAY BE REVOKED AND CANCELLED BY  THE  STATE
RACING  AND  WAGERING  BOARD  FOR A MATERIAL BREACH OF CONTRACT OR FOR A
VIOLATION OF THE RULES OF THE STATE RACING AND WAGERING BOARD OR IF SUCH
VENDOR  OR  ITS  OFFICERS  OR  DIRECTORS  SHALL  KNOWINGLY  VIOLATE  THE
PROVISIONS  OF THIS CHAPTER OR OF THE PENAL LAW. THE ACTION OF THE STATE
RACING AND WAGERING BOARD IN REVOKING THE SELECTION SHALL BE  REVIEWABLE
IN  THE  SUPREME  COURT  IN  THE  MANNER  PROVIDED BY AND SUBJECT TO THE
PROVISIONS OF ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
  6. FOR CONTRACTS IN EXCESS OF ONE HUNDRED  THOUSAND  DOLLARS,  ENTERED
INTO  BY  THE VENDOR FOR THE PROCUREMENT OF GOODS OR SERVICES, THE BOARD
MAY REVIEW THE CHARACTER AND FITNESS OF THE  ENTITY  OR  ITS  PRINCIPALS
ENTERING INTO CONTRACTS WITH THE VENDOR.
  S  6. Clause (E) of subparagraph 5 and clause (F) of subparagraph 6 of
paragraph b of subdivision 1 of section 1016 of the racing,  pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
are amended to read as follows:
  (E)  On  days  when  a franchised corporation is not conducting a race
meeting and when a licensed harness track is  neither  accepting  wagers
nor  displaying  the signal from an in-state thoroughbred corporation or
association or an out-of-state thoroughbred track:
  (i) Such licensed regional harness track shall receive in lieu of  any
other  payments on wagers placed at off-track betting facilities outside
the special betting district on races conducted by an in-state thorough-
bred racing corporation, [two  and  eight-tenths]  ONE  AND  FOUR-TENTHS
percent  on regular and multiple bets during a regional meeting and [one
and nine-tenths] NINETY-FIVE HUNDREDTHS percent of such bets if there is
no regional meeting and [four  and  eight-tenths]  TWO  AND  FOUR-TENTHS
percent  on exotic bets on days on which there is a regional meeting and
[three and four-tenths] ONE AND SEVEN-TENTHS percent  of  such  bets  if
there is no regional meeting.
  (ii)  Such licensed regional harness track shall receive [one and one-
half] SEVENTY-FIVE HUNDREDTHS per centum on  total  regional  handle  on
races conducted at out-of-state or out-of-country thoroughbred tracks.
  (iii)  In  those  regions  in  which  there  is more than one licensed
regional harness track, if no track is accepting  wagers  or  displaying
the  live  simulcast  signal  from the out-of-state track, the total sum
shall be divided among the tracks in proportion to the ratio the  wagers
placed on races conducted by each track bears to the corporation's total
in-region  harness handle. If one or more tracks are accepting wagers or
displaying the live simulcast signal, the total amount shall be  divided
among  those  tracks  not  accepting  wagers or displaying the simulcast
signal for an out-of-state track or in-state thoroughbred corporation or
association.
  (F) Of the sums retained by a licensed harness facility,  [fifty]  ONE
HUNDRED  percent  shall  be used exclusively for purses awarded in races
conducted by such licensed facility [and  the  remaining  fifty  percent
shall  be  retained  by such licensed facility for its general purposes,

S. 3334--B                          5

provided, however, that  in  a  harness  special  betting  district  the
portion  of  the sums retained by a licensed harness facility to be used
for purses or the methodology for calculating the amount to be used  for
purses  may  be specified in a written contract between a harness racing
association or corporation and  its  representative  horsemen's  associ-
ation].
  S  7.  Section  1017  of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
  S 1017. Out-of-state or out-of-country races.  1.  Licensed  simulcast
facilities  may  accept wagers and display the signal of out-of-state or
out-of-country thoroughbred tracks after 7Labor P.M. in accordance  with
the  provisions  of  this  section.  Such simulcasting may include mixed
meetings if such meetings are integral to such racing programs  and  all
such wagering on such races shall be construed to be thoroughbred races.
For  facilities  located  within  the  special  betting  district,  such
approval shall also be required from a thoroughbred  racing  corporation
during  the  period  a  racing program is being conducted at such track.
Such approval shall not be required on any day such thoroughbred  racing
corporation  is  also accepting an out-of-state or out-of-country signal
and wager, as authorized by this section. The provisions of section  one
thousand  sixteen  of this article shall be applicable to the conduct of
such simulcasting and the provisions of clauses (A) and (B) of  subpara-
graph  four  of  paragraph  b of subdivision one of section one thousand
sixteen of this article shall apply  to  those  facilities  licensed  in
accordance  with  sections  one  thousand eight and one thousand nine of
this article and the provisions of clauses (A) and (B)  of  subparagraph
six of paragraph b of subdivision one of section one thousand sixteen of
this article shall apply to those facilities licensed in accordance with
section  one thousand seven of this article, when such provisions are in
full force and effect pursuant to such section. Provided,  however,  the
provisions  of  section  one  thousand fourteen of this article shall be
applicable to the conduct of such simulcasting, when such provisions are
in full force and effect pursuant to such section.
  2. a. Maintenance of effort. Any off-track betting  corporation  which
engages in accepting wagers on the simulcasts of thoroughbred races from
out-of-state  or  out-of-country  as  permitted under subdivision one of
this section shall submit to the board, for its approval, a schedule  of
payments  to be made in any year or portion thereof, that such off-track
corporation engages in nighttime thoroughbred simulcasting. In order  to
be approved by the board, the payment schedule shall be identical to the
actual payments and distributions of such payments to [tracks and] purs-
es  made  by  such  off-track  corporation pursuant to the provisions of
section one thousand fifteen of this article during the year  two  thou-
sand  two,  as  derived  from out-of-state harness races displayed after
6:00 P.M. If approved by the board, such  scheduled  payments  shall  be
made  from  revenues derived from any simulcasting conducted pursuant to
this section and section one thousand fifteen of this article.
  b. Additional payments. During each calendar year, to the extent,  and
at  such  time  in  the  event, that aggregate statewide wagering handle
after 7Labor P.M. on out-of-state and out-of-country thoroughbred  races
exceeds  one hundred million dollars, each off-track betting corporation
conducting such simulcasting shall pay to its regional harness track  or
tracks,  an amount equal to [two] ONE percent of its proportionate share
of such excess handle. In  any  region  where  there  are  two  or  more
regional  harness  tracks,  such two percent shall be divided between or

S. 3334--B                          6

among the tracks in a proportion equal to the proportion  of  handle  on
live  harness races conducted at such tracks during the preceding calen-
dar year. [Fifty percent of the] THE sum received by each track pursuant
to  this  paragraph  shall  be  used  exclusively for increasing purses,
stakes and prizes at that regional harness track.
  S 8. Subdivision 2 of section 529 of the racing, pari-mutuel  wagering
and breeding law is amended to read as follows:
  2.  [Ninety-five  percent  of  the  balance  of such account remaining
unclaimed as of the last day of February of such year shall be  paid  to
the state tax commission by March fifteenth. On or before April tenth of
each  year  the  balance of such account and any other unclaimed amounts
received in the course of conducting off-track betting shall be paid  by
such  corporation to the state tax commission. A penalty of five percent
and interest at the rate of one percent per month from the due  date  to
the  date  of  payment  of  the unclaimed balance due March fifteenth or
April tenth, as the case may be, shall be payable in case  such  balance
is  not  paid  when  due.  Such  amounts,  interest  and  penalties when
collected by the state tax commission shall be deposited into the gener-
al fund of the state treasury] ON APRIL FIRST OF EACH YEAR,  THE  AMOUNT
OF  TICKETS  REMAINING  UNCLAIMED  FROM  THE  PRIOR YEAR MAY BE USED FOR
CORPORATE PURPOSES.
  S 9. Subdivision 7 of section 532 of the racing, pari-mutuel  wagering
and  breeding  law,  as  added  by  chapter  115 of the laws of 2008, is
amended to read as follows:
  7. Notwithstanding any other provision of this section,  any  payments
otherwise  payable  to  a city with a population of one million or more,
pursuant to this section, [other than payments pursuant to subparagraphs
(i) and (iii) of paragraph b of subdivision three of this section, shall
be payable to the corporation and shall be available for  its  corporate
purposes] SHALL PAY REMAINING AMOUNTS TO THE COMPTROLLER OF THE STATE OF
NEW  YORK FOR DEPOSIT IN THE NEW YORK CITY OFF-TRACK BETTING CORPORATION
FUND.
  S 10. Subdivision 2 of section 610 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 115 of  the  laws  of  2008,  is
amended to read as follows:
  2.  All moneys due the city pursuant to article five-A of this chapter
shall be paid to the  New  York  city  [comptroller]  OFF-TRACK  BETTING
CORPORATION FUND.
  S 11. Subdivision 6 of section 527 of the racing, pari-mutuel wagering
and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
amended to read as follows:
  6. The net amount remaining to each regional corporation after payment
of taxes and distributions pursuant to this section and after payment of
operating expenses and principal and interest on any obligations  shall,
in  the  case  of  the  New  York city off-track betting corporation, be
retained by the corporation, and in the case of  other  regional  corpo-
rations  shall  accrue and be payable to participating counties pursuant
to section five hundred sixteen of this chapter; provided, however, that
the [New York city off-track betting corporation] VENDOR OPERATOR, after
payment of all current taxes and distributions shall use such net amount
to pay all [liabilities] OPERATING EXPENSES of such corporation  [as  of
the  effective  date  of  the  chapter of the laws of two thousand eight
which amended this subdivision], and at such time as  all  [liabilities]
OPERATING  EXPENSES  have  been paid, such [corporation] VENDOR OPERATOR
shall pay ANY remaining amounts to the comptroller of the state  of  New

S. 3334--B                          7

York  for  deposit  in  the  [general  fund  of the state] NEW YORK CITY
OFF-TRACK BETTING CORPORATION FUND.
  S  12. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 626 to read as follows:
  S 626. VENDOR OPERATOR FEE. AS CONSIDERATION FOR THE OPERATION OF  THE
CORPORATION,  THE COMPTROLLER SHALL PAY A VENDOR FEE IN EXCHANGE FOR THE
DAILY OPERATIONS AND CAPITALIZATION OF A NEW YORK CITY OFF-TRACK BETTING
OPERATION TO BE PAID AS FOLLOWS:   IF THE ANNUAL DEPOSIT  INTO  THE  NEW
YORK  CITY  OFF-TRACK  BETTING  CORPORATION  FUND  IS  LESS THAN TWO AND
ONE-HALF MILLION DOLLARS, THE VENDOR OPERATOR SHALL RECEIVE ONE  HUNDRED
PERCENT  OF THE ANNUAL DEPOSITS; IF THE ANNUAL DEPOSIT INTO THE NEW YORK
CITY OFF-TRACK BETTING CORPORATION FUND IS LESS THAN  OR  EQUAL  TO  TEN
MILLION  DOLLARS,  THE  VENDOR  OPERATOR  SHALL BE PAID TWO AND ONE-HALF
MILLION DOLLARS AND THE REMAINING FUNDS SHALL BE DEPOSITED TO THE  STATE
GENERAL  FUND;  IF  THE ANNUAL DEPOSIT IS MORE THAN TEN MILLION DOLLARS,
THE VENDOR OPERATOR SHALL BE PAID TWENTY-FIVE PERCENT OF THE TOTAL ANNU-
AL DEPOSITS AND THE REMAINING FUNDS SHALL  BE  DEPOSITED  TO  THE  STATE
GENERAL FUND.
  S 13. The state finance law is amended by adding a new section 95-h to
read as follows:
  S 95-H. NEW YORK CITY OFF-TRACK BETTING CORPORATION FUND. 1.  THERE IS
HEREBY  ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER, A SPECIAL FUND TO
BE KNOWN AS THE "NEW YORK CITY OFF-TRACK BETTING CORPORATION FUND".
  2. SUCH FUND SHALL CONSIST OF ALL MONIES RECEIVED BY THE STATE  PURSU-
ANT TO SUBDIVISIONS ONE AND SIX OF SECTION FIVE HUNDRED TWENTY-SEVEN AND
SUBDIVISION  SEVEN  OF  SECTION  FIVE  HUNDRED THIRTY-TWO OF THE RACING,
PARI-MUTUEL WAGERING AND  BREEDING  LAW.  ANY  INTEREST  EARNED  BY  THE
INVESTMENT  OF MONEYS IN SUCH FUND SHALL BE ADDED TO SUCH FUND, BECOME A
PART OF SUCH FUND, AND BE USED FOR THE PURPOSE OF SUCH FUND.
  3. MONEYS OF THE NEW YORK  CITY  OFF-TRACK  BETTING  CORPORATION  FUND
SHALL BE MADE AVAILABLE TO THE COMPTROLLER FOR THE PURPOSE OF PAYING THE
NEW  YORK CITY OFF-TRACK BETTING VENDOR OPERATOR FEE DISTRIBUTED ACCORD-
ING TO SECTION SIX HUNDRED TWENTY-SIX OF THE RACING, PARI-MUTUEL  WAGER-
ING  AND  BREEDING  LAW; ALL REMAINING MONEY SHALL BE DISBURSED INTO THE
STATE GENERAL FUND.
  S 14. The racing, pari-mutuel wagering and breeding law is amended  by
adding a new section 113 to read as follows:
  S  113. TELEPHONE AND INTERNET WAGERING. THE STATE RACING AND WAGERING
BOARD SHALL DETERMINE WHETHER ELIMINATING OR REGULATING THE AUTHORITY OF
OUT-OF-STATE ENTITIES TO ACCEPT TELEPHONE AND/OR INTERNET WAGERING  FROM
STATE RESIDENTS PLACED WHILE IN THIS STATE, WOULD BE CONSISTENT WITH THE
OBJECTIVES  OF  OFF-TRACK PARI-MUTUEL BETTING AS DEFINED IN SECTION FIVE
HUNDRED EIGHTEEN OF THIS CHAPTER, AND IF SO DETERMINED, THE STATE RACING
AND WAGERING BOARD SHALL ESTABLISH SUCH GENERAL REGULATIONS TO ELIMINATE
OR REGULATE THE PRACTICE OF  OUT-OF-STATE  ENTITIES  OF  ACCEPTING  SUCH
WAGERS.
  S 15. Subdivision 4 of section 606 of the racing, pari-mutuel wagering
and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
amended to read as follows:
  4. All [employees and officers] PRESENT AND  FUTURE  RETIREES  of  the
corporation  in  classes  or  positions  whose incumbents, in equivalent
classes or positions of the city, are eligible, as of the effective date
hereof, to participate in, and receive benefits from any city authorized
health insurance or  welfare  benefit  program,  shall  be  eligible  to
participate  in,  and receive benefits from any such health insurance or
welfare benefit program; provided, however, that the [corporation] STATE

S. 3334--B                          8

shall reimburse the city or its designee for the actual cost of benefits
under this subdivision.
  S  16.  Subdivisions 4 and 5 of section 610 of the racing, pari-mutuel
wagering and breeding law are REPEALED.
  S 17. Sections 611, 612, 613, 614, 616 and 620 of the racing, pari-mu-
tuel wagering and breeding law are REPEALED.
  S 18. This act shall take effect immediately.

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