senate Bill S7615

Amended

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities; 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

  • 16 / May / 2014
    • REFERRED TO RACING, GAMING AND WAGERING
  • 12 / Jun / 2014
    • AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
  • 12 / Jun / 2014
    • PRINT NUMBER 7615A
  • 17 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 17 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1452
  • 17 / Jun / 2014
    • PASSED SENATE
  • 17 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2014
    • REFERRED TO RACING AND WAGERING

Summary

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities.

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Bill Details

Versions:
S7615
S7615A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Rpld §1016 sub 1 ¶b sub¶ 5 cls (E) & (F), sub ¶ 6 cls (F) & (G), amd §§1017 & 1012, RWB L; amd §§1612 & 1617-a, Tax L

Sponsor Memo

BILL NUMBER:S7615

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to out-of-state or out-of-country races; to
amend the tax law, in relation to video lottery terminal flex hours
and increasing free play at video lottery facilities; and to repeal
certain provisions of the racing, pari-mutuel wagering and breeding
law relating thereto

PURPOSE:

To provide operational and financial relief to licensed New York State
Video Lottery Gaming Facilities and Regional Off Track Betting
Corporations. This bill will also increase aid to Education.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1016 of the racing, pari-mutuel
wagering and breeding law to eliminate dark day payments made from
regional off track betting corporations to licensed New York State
harness tracks.

Section 2 of the bill amends section 1017 of the racing, pari-mutuel
wagering and breeding law to eliminate maintenance of effort and hold
harmless payments made from regional off track betting corporations to
licensed New York State harness tracks.

Section 3 of the bill amends section 1012 of the racing, pari-mutuel
wagering and breeding law to make technical corrections pertaining to
regulation of multi jurisdictional account wagering providers.

Section 4 of the bill amends section 1612 of the tax law to provide a
video lottery gaming facility located in Sullivan County with a Vendor
Capital Award.

Section 5 of the bill amends section 1617-a of the tax law to provide
video lottery gaming facilities with more flexible hours of operation.

Section 6 of the bill amends section 1617-a of the tax law to increase
the annual value of free play allowance credits authorized for use by
a video lottery gaming facility from ten to fifteen percent of the
total amount wagered on video lottery games after payout of prizes.

Section 7 of the bill would provide an immediate effective date for
this legislation.

JUSTIFICATION:

Currently, New York State Video Lottery Gaming facilities are in
competition with gaming entities in other jurisdictions that have
unlimited free play and more flexible hours of operation. In addition,
regional off track betting corporations are experiencing financial
difficulty resulting from increased out of state competition and from
antiquated and obsolete regulatory payment requirements in statute.
This bill would authorize various forms of financial and operational
relief to ensure New York State Video Lottery Gaming facilities and
Regional Off Track Betting Corporations remain competitive with racing


and gaming entities in other jurisdictions. The relief provided will
also increase aid to education through the State Lottery Fund and help
County governments with increased revenues generated through the
Regional Off Track Betting Corporations.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This bill will generate an additional $110-$115 million in aid to
education.

LOCAL FISCAL IMPLICATIONS:

This bill will generate additional revenues for County governments
which have Regional Off Track Betting Corporations.

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
________________________________________________________________________

                                  7615

                            I N  S E N A T E

                              May 16, 2014
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
  relation to out-of-state or out-of-country races;  to  amend  the  tax
  law,  in  relation to video lottery terminal flex hours and increasing
  free  play  at  video  lottery  facilities;  and  to  repeal   certain
  provisions of the racing, pari-mutuel wagering and breeding law relat-
  ing thereto

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

  Section 1. Clauses (E) and (F) of subparagraph 5  of  paragraph  b  of
subdivision  1  of  section 1016 of the racing, pari-mutuel wagering and
breeding law are REPEALED.
  S 2. Section 1017 of the racing,  pari-mutuel  wagering  and  breeding
law,  as  amended  by  chapter  18 of the laws of 2008, subdivision 2 as
amended by chapter 174 of the laws  of  2013,  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15207-02-4

S. 7615                             2

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 commission, for its approval, a  sched-
ule  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 commission, the payment  schedule  shall  be
identical  to  the actual payments and distributions of such payments to
tracks and purses made by such off-track  corporation  pursuant  to  the
provisions  of  section  one thousand fifteen of this article during the
year two thousand  two,  as  derived  from  out-of-state  harness  races
displayed  after 6:00 P.M. If approved by the commission, 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 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 among the
tracks in a proportion equal to the proportion of handle on live harness
races conducted at such tracks during the preceding calendar year. Fifty
percent of 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. For the purpose of determining whether such
aggregate statewide handle exceeds  one  hundred  million  dollars,  all
wagering on such thoroughbred races accepted by licensed multi-jurisdic-
tional  account  wagering providers from customers within New York state
shall be excluded.]
  S 3. Subdivision 1 of section 1012 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 174 of  the  laws  of  2013,  is
amended to read as follows:
  1.  Racing  associations  and  corporations,  franchised corporations,
off-track betting corporations and multi-jurisdictional account wagering
providers may form partnerships, joint ventures,  or  any  other  affil-
iations  or  contractual arrangement in order to further the purposes of
this section. Multi-jurisdictional account wagering  providers  involved
in  such joint affiliations or contractual arrangements shall follow the
same distributional policy  with  respect  to  retained  commissions  as
[their in-state affiliate or contractual partner] A MULTI-JURISDICTIONAL
ACCOUNT  WAGERING  PROVIDER  DEFINED IN THIS ARTICLE; PROVIDED, HOWEVER,
THAT SUCH JOINT AFFILIATION OR CONTRACTUAL ARRANGEMENT ENTERED  INTO  ON
OR  AFTER  THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
FOURTEEN THAT AMENDED THIS SUBDIVISION SHALL BE SUBJECT  TO  THE  REVIEW

S. 7615                             3

AND  APPROVAL  OF  THE  NEW YORK STATE GAMING COMMISSION TO DETERMINE IF
SUCH AFFILIATION OR CONTRACTUAL ARRANGEMENT IS IN THE BEST  INTEREST  OF
THE RACING INDUSTRY OF THIS STATE.
  S  4.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by section 1 of  part  BB  of
chapter 59 of the laws of 2014, is amended to read as follows:
  (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track shall be  eligi-
ble  for  a  vendor's  capital  award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant  to
this  chapter,  which  shall  be  used  exclusively  for capital project
investments to improve the facilities of the vendor track which  promote
or  encourage  increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging  facilities,  enter-
tainment   facilities,  retail  facilities,  dining  facilities,  events
arenas, parking garages and other  improvements  that  enhance  facility
amenities;  provided  that such capital investments shall be approved by
the division, in consultation with the state racing and wagering  board,
and  that  such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities  and  increase
the amount of revenue generated to support state education programs. The
annual  amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited  to  two  million  five  hundred
thousand  dollars,  except for Aqueduct racetrack, for which there shall
be no vendor's capital awards. Except for tracks having  less  than  one
thousand  one  hundred  video  gaming  machines, and except for a vendor
track located west of State Route 14 from Sodus Point to the  Pennsylva-
nia  border  within  New  York, each track operator shall be required to
co-invest an amount of  capital  expenditure  equal  to  its  cumulative
vendor's  capital  award. For all tracks, except for Aqueduct racetrack,
the amount of any vendor's capital award that is not used during any one
year period may be carried over  into  subsequent  years  ending  before
April  first, two thousand fifteen. Any amount attributable to a capital
expenditure approved prior to April  first,  two  thousand  fifteen  and
completed  before April first, two thousand seventeen; or approved prior
to April first, two thousand nineteen and completed before April  first,
two  thousand  twenty-one for a vendor track located west of State Route
14 from Sodus Point to the Pennsylvania border within New York, shall be
eligible to receive the vendor's capital award.  In  the  event  that  a
vendor  track's  capital expenditures, approved by the division prior to
April first, two thousand fifteen and completed prior  to  April  first,
two  thousand  seventeen,  exceed  the vendor track's cumulative capital
award during the five year  period  ending  April  first,  two  thousand
fifteen,  the  vendor  shall continue to receive the capital award after
April first, two thousand fifteen until such approved  capital  expendi-
tures  are  paid  to the vendor track subject to any required co-invest-
ment. In no event shall any vendor track  that  receives  a  vendor  fee
pursuant  to  clause [(F) or] (G) of this subparagraph be eligible for a
vendor's capital award under this section.  Any  operator  of  a  vendor
track  which  has  received a vendor's capital award, choosing to divest
the capital improvement toward which the award was applied, prior to the
full depreciation of the capital improvement in accordance with general-
ly accepted accounting principles, shall reimburse the state in  amounts
equal  to  the  total of any such awards. Any capital award not approved
for a capital expenditure at a video lottery gaming  facility  by  April

S. 7615                             4

first,  two  thousand  fifteen shall be deposited into the state lottery
fund for education aid; and
  S  5.  Subdivision  b  of section 1617-a of the tax law, as amended by
section 5 of part K of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  b. Video lottery gaming shall only be permitted for no more than twen-
ty  consecutive  hours  per  day  and  on no day shall such operation be
conducted past [4:00] 6:00 a.m.
  S 6. Paragraph 3 of subdivision f of section 1617-a of the tax law, as
added by section 2 of part O of chapter 61  of  the  laws  of  2011,  is
amended to read as follows:
  (3) For each video lottery facility, the annual value of the free play
allowance  credits  authorized  for use by the operator pursuant to this
subdivision shall not exceed an amount equal to [ten] FIFTEEN percent of
the total amount wagered on video lottery games after payout of  prizes.
The  division shall establish procedures to assure that free play allow-
ance credits do not exceed such amount.
  S 7. This act shall take effect immediately.

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