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

                                  6709

                            I N  S E N A T E

                            February 8, 2016
                               ___________

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 and
  the tax law, in relation to certain fiscal requirements  imposed  with
  respect to conducting horse races at raceways and racetracks

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

  Section 1.  Subclauses (i) and (ii) of clause (E) of subparagraph 5 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:
  (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 percent on regular and
multiple bets MADE PRIOR TO JANUARY FIRST, TWO THOUSAND  SEVENTEEN,  TWO
AND ONE-TENTHS PERCENT ON SUCH BETS MADE ON AND AFTER JANUARY FIRST, TWO
THOUSAND SEVENTEEN AND ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND SEVEN-
TEEN,  AND  ONE  AND  FOUR-TENTHS PERCENT ON SUCH BETS MADE ON AND AFTER
JANUARY FIRST, TWO THOUSAND EIGHTEEN during a regional meeting  and  one
and  nine-tenths  percent  of such bets MADE PRIOR TO JANUARY FIRST, TWO
THOUSAND SEVENTEEN, ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS PERCENT
ON SUCH BETS MADE ON AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND
ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND  SEVENTEEN,  AND  FOUR-TENTHS
PERCENT ON SUCH BETS MADE ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGH-
TEEN  if  there is no regional meeting and four and eight-tenths percent
on exotic bets MADE PRIOR TO  JANUARY  FIRST,  TWO  THOUSAND  SEVENTEEN,
THREE  AND  SIX-TENTHS  PERCENT  ON  SUCH BETS MADE ON AND AFTER JANUARY
FIRST, TWO THOUSAND SEVENTEEN, AND TWO AND FOUR-TENTHS PERCENT  ON  SUCH
BETS  MADE  ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN on days on
which there is a regional meeting and three and four-tenths  percent  of
such  bets  MADE PRIOR TO JANUARY FIRST, TWO THOUSAND SEVENTEEN, TWO AND
FIFTY-FIVE ONE HUNDREDTHS PERCENT ON SUCH BETS MADE ON AND AFTER JANUARY

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

                                                           LBD13925-01-6

S. 6709                             2

FIRST, TWO THOUSAND SEVENTEEN  AND  ENDING  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  SEVENTEEN,  AND ONE AND SEVEN-TENTHS PERCENT ON SUCH BETS MADE
ON AND AFTER JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN  if  there  is  no
regional meeting.
  (ii)  [Such]  A  licensed regional harness track shall receive one and
one-half per centum on total regional handle on races conducted at  out-
of-state  or  out-of-country thoroughbred tracks PRIOR TO JANUARY FIRST,
TWO THOUSAND SEVENTEEN, ONE AND ONE HUNDRED TWENTY-FIVE THOUSANDTHS  PER
CENTUM  ON SUCH HANDLE REALIZED ON AND AFTER JANUARY FIRST, TWO THOUSAND
SEVENTEEN AND ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN,  AND
THREE-QUARTERS  OF  ONE  PER CENTUM ON SUCH HANDLE REALIZED ON AND AFTER
JANUARY FIRST, TWO THOUSAND EIGHTEEN.
  S 2. Clause (G) 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,  is  amended  to  read  as
follows:
  (G)  Of  the  sums  retained  by a licensed harness facility, PRIOR TO
JANUARY FIRST, TWO THOUSAND  SEVENTEEN,  fifty  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, FOR THE PERIOD BEGINNING
JANUARY FIRST, TWO THOUSAND SEVENTEEN AND ENDING DECEMBER  THIRTY-FIRST,
TWO  THOUSAND  SEVENTEEN, SEVENTY-FIVE PERCENT SHALL BE USED EXCLUSIVELY
FOR PURSES AWARDED IN RACES CONDUCTED BY SUCH LICENSED FACILITY AND  THE
REMAINING TWENTY-FIVE PERCENT SHALL BE RETAINED BY SUCH LICENSED FACILI-
TY  FOR  ITS GENERAL PURPOSES, AND ON AND AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN ONE HUNDRED PERCENT SHALL BE USED EXCLUSIVELY  FOR  PURSES
AWARDED  IN RACES CONDUCTED BY SUCH LICENSED FACILITY 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 association.
  S 3. Paragraph a of subdivision 2 of section 1017 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:
  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, PRIOR TO JANUARY FIRST, TWO
THOUSAND SEVENTEEN, the payment schedule shall be identical to the actu-
al 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.    FOR
THE PERIOD BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN,
THE  PAYMENT  SCHEDULE  SHALL  BE  IDENTICAL  TO THE ACTUAL PAYMENTS AND
DISTRIBUTIONS OF SUCH PAYMENTS TO PURSES MADE BY SUCH  OFF-TRACK  CORPO-
RATION  PURSUANT  TO  THE  PROVISIONS OF SECTION ONE THOUSAND FIFTEEN OF
THIS ARTICLE DURING  THE  YEAR  TWO  THOUSAND  THREE,  AS  DERIVED  FROM
OUT-OF-STATE  HARNESS  RACES  DISPLAYED  AFTER  6:00 P.M. FOR THE PERIOD
BEGINNING JANUARY FIRST, TWO  THOUSAND  SEVENTEEN  AND  ENDING  DECEMBER
THIRTY-FIRST,  TWO  THOUSAND  SEVENTEEN,  TWENTY-FIVE  PERCENT  OF  SUCH

S. 6709                             3

PAYMENTS AND DISTRIBUTIONS OF PAYMENTS SHALL BE MADE TO TRACKS,  AND  ON
AND  AFTER  JANUARY  FIRST,  TWO  THOUSAND EIGHTEEN NO SUCH PAYMENTS AND
DISTRIBUTIONS OF PAYMENTS SHALL BE MADE TO TRACKS. 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.
  S 4. Clause (G) of subparagraph (ii) of paragraph 1 of  subdivision  b
of  section  1612 of the tax law, as added by chapter 174 of the laws of
2013, is amended to read as follows:
  (G) Notwithstanding any provision to the contrary, when a vendor track
is located within regions one, two, or five of development zone  two  as
defined  by  section  thirteen  hundred  ten  of the racing, pari-mutuel
wagering and breeding law OR IS  LOCATED  WITHIN  ONTARIO  COUNTY,  such
vendor  track  shall receive an additional commission at a rate equal to
the percentage of revenue wagered at the vendor track after  payout  for
prizes pursuant to this chapter less ten percent retained by the commis-
sion for operation, administration, and procurement purposes and payment
of  the vendor's fee, marketing allowance, and capital award paid pursu-
ant to this chapter and the effective tax rate paid on all gross  gaming
revenue  paid  by  a  gaming facility within the same region pursuant to
section thirteen hundred fifty-one of the racing,  pari-mutuel  wagering
and  breeding  law.   FOR PURPOSES OF THIS CLAUSE THE EFFECTIVE TAX RATE
FOR A TRACK LOCATED IN ONTARIO COUNTY SHALL BE DEEMED TO BE  THE  EFFEC-
TIVE  TAX  RATE  APPLICABLE  TO A VENDOR TRACK LOCATED IN REGION FIVE OF
DEVELOPMENT ZONE TWO AS DEFINED IN SECTION THIRTEEN HUNDRED TEN  OF  THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. The additional commission
shall be paid to the vendor track within sixty days after the conclusion
of  the  state fiscal year based on the calculated percentage during the
previous fiscal year.
  S 5. Subparagraph (iii) of paragraph 1 of  subdivision  b  of  section
1612  of  the  tax law, as separately amended by chapters 174 and 175 of
the laws of 2013, is amended to read as follows:
  (iii) less an additional vendor's marketing allowance  at  a  rate  of
[ten] ELEVEN percent for the first one hundred million dollars annually,
NINE  PERCENT  FOR  THE  NEXT  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
operations 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] ELEVEN 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 subparagraph (ii) of this paragraph shall not receive [the
additional  vendor's]  A  marketing allowance WHICH IS NOT LESS THAN THE
VENDOR'S MARKETING ALLOWANCE RECEIVED IN TWO THOUSAND FIFTEEN; provided,
however, except for a vendor track located west of State Route  14  from
Sodus Point to the Pennsylvania border within New York shall continue to
receive  a  marketing allowance of [ten] ELEVEN percent on total revenue
wagered at the vendor track after payout for prizes  in  excess  of  one
hundred  million  dollars  annually  provided,  however,  a  vendor that
receives a vendor fee pursuant to clause (G-1) of subparagraph  (ii)  of

S. 6709                             4

this paragraph shall receive an additional marketing allowance at a rate
of  [ten]  ELEVEN  percent  of  the  total  revenue wagered at the video
lottery gaming facility after payout for  prizes.  In  establishing  the
vendor fee,
  S  6.  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  MM  of
chapter 59 of the laws of 2015, 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, INCLUDING AQUE-
DUCT RACETRACK AND A TRACK LOCATED IN SULLIVAN COUNTY, shall be eligible
for a vendor's capital award of up to [four] FIVE 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] FOUR million [five
hundred thousand] dollars, except for  Aqueduct  racetrack[,  for  which
there  shall be no vendor's capital awards] AND A TRACK LOCATED IN WEST-
CHESTER COUNTY, WHICH SHALL EACH BE ELIGIBLE TO  RECEIVE  NO  MORE  THAN
FIFTEEN  MILLION DOLLARS.   Except for tracks having less than one thou-
sand one hundred video gaming machines, and except for  a  vendor  track
located  west  of  State  Route  14 from Sodus Point to the Pennsylvania
border within New York, AND A VENDOR TRACK LOCATED IN EITHER SULLIVAN OR
SARATOGA COUNTY, 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 [sixteen] TWENTY.  Any amount attributable to a capital expend-
iture approved prior to April first, two thousand [sixteen]  TWENTY  and
completed  before  April  first, two thousand [eighteen] TWENTY-TWO; [or
approved prior to April first, two thousand twenty and completed  before
April  first, two thousand twenty-two 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  divi-
sion  prior  to April first, two thousand [sixteen] TWENTY and completed
prior to April first, two thousand  [eighteen]  TWENTY-TWO,  exceed  the
vendor  track's  cumulative  capital  award  during the five year period
ending April first, two thousand  [sixteen]  TWENTY,  the  vendor  shall
continue  to  receive  the capital award after April first, two thousand
[sixteen] TWENTY until such approved capital expenditures  are  paid  to
the  vendor  track  subject  to any required co-investment. [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] SELL the capital improve-

S. 6709                             5

ment toward which the award was applied, prior to the full  depreciation
of  the  capital  improvement  in  accordance  with  generally  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 first, two thou-
sand [sixteen] TWENTY shall be deposited into the state lottery fund for
education aid; and
  S 7. Paragraph 2 of subdivision c of section 1612 of the tax  law,  as
amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
follows:
  2. Of the ten percent retained  by  the  division  for  administrative
purposes,  any amounts beyond that which are necessary for the operation
and administration of this [pilot] program shall be  [deposited  in  the
lottery education account] MADE AVAILABLE FOR CAPITAL AWARDS.
  S 8. This act shall take effect immediately.