NY State Senate Bill 2009-S2827

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 15, 2010	reported and committed to rules
Mar 08, 2010	print number 2827b
Mar 08, 2010	amend and recommit to finance
Jan 20, 2010	print number 2827a
Jan 20, 2010	amend (t) and recommit to finance
Jan 19, 2010	reported and committed to finance
Jan 06, 2010	referred to racing, gaming and wagering
Mar 04, 2009	referred to racing, gaming and wagering

Votes

- Jan 19, 2010 - Racing, Gaming And Wagering Committee Vote
  S2827
  
  Aye
  
  8
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Racing, Gaming And Wagering Committee Vote: Jan 19, 2010
      
      aye (8)
      
      Adams
      
      Bonacic
      
      Griffo
      
      Johnson
      
      McDonald
      
      Nozzolio
      
      Onorato
      
      Stachowski
      
      aye wr (1)
      
      Addabbo Jr.
  Jun 15, 2010 - Finance Committee Vote
  S2827
  
  Aye
  
  27
  
  Nay
  
  2
  
  Aye with Reservations
  
  4
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Finance Committee Vote: Jun 15, 2010
      
      aye (27)
      
      Breslin
      
      DeFrancisco
      
      Espada
      
      Farley
      
      Hannon
      
      Johnson
      
      Klein
      
      Kruger
      
      LaValle
      
      Larkin
      
      Leibell
      
      Marcellino
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Robach
      
      Seward
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      nay (2)
      
      Diaz
      
      Padavan
      
      aye wr (4)
      
      Dilan
      
      Duane
      
      Krueger
      
      Saland

Bill Amendments

Original

B (Active)

2009-S2827 - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §§1612 & 1617-a, Tax L; rpld §§4 & 5, Chap 286 of 2008

2009-S2827 - Summary

Authorizes video lottery gaming at Belmont Park.

2009-S2827 - Sponsor Memo

                                 BILL NUMBER:  S2827

 TITLE OF BILL :
An act to amend the tax law, in relation to authorizing video lottery
gaming at Belmont Park


 PURPOSE :
This bill would authorize operation of Video Lottery Terminals
("VLTs") at the Belmont Park racing facility and set the commission
rates accordingly.

The bill would provide a vendor marketing allowance of up to 8% to
increase attendance. Like Aqueduct, the bill would not provide for a
vendor's capital award.

Finally, the bill establishes racing support payments from the VLTs at
Belmont Park and modifies said payments and commission rates between
both Aqueduct and Belmont Park upon commencement of VLT operations.

 SUMMARY OF PROVISIONS :
Section 1. Sets a vendor fee at Belmont Park of 36% of the total
revenue wagered at the vendor track after payment of prizes.

Section 2. Provides a marketing allowance of 8% for the vendor track
to use towards promotional activities and increasing attendance.

Section 3. Prohibits Belmont, like Aqueduct, from receiving an
additional capital award.

Section 4. Provides for a technical change.

Section 5. Carves Belmont, just like Aqueduct, out from requiring
additional monies be used solely for purse enhancements.

Section 6. Establishes a mechanism for selecting an operator of VLTs
at Belmont and establishes a schedule of racing support payments.

Section 7. Provides the Division of the Lottery with the ability to
license video lottery gaming at Belmont.

Section 8. Authorizes the Division of the Lottery to license and issue
guidelines and regulations pertaining to video lottery gaming at
Belmont.

Section 9. Effective date.

 JUSTIFICATION :
Chapter 18 of the Laws of 2008 extended the New York Racing
Association's franchise to operate the state's three thoroughbred
racetracks for another 25 years. Unfortunately, this chapter did not
authorize the installation of video lottery terminals at Belmont Park.

The revenue from these VLTs is vital to the future of the communities
that host the track and will inject much needed revenue into the
schools and the local governments that shoulder the burden of hosting
the track. Also, the strong potential for economic development on
Belmont land and spin-off businesses that would stem from the
installation of VLTs would benefit not only the host communities, but
the county of Nassau and the State of New York as a whole.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :

If enacted, the State could generate an up-front payment of nearly
$370 million dollars for the rights to operate VLTs at Belmont. Such
is the amount of money Delaware North has agreed to pay the State for
the rights to operate said terminals at Aqueduct.

 EFFECTIVE DATE :
Immediately.

2009-S2827 - Bill Text download pdf

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

                                  2827

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 4, 2009
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee on  Racing,  Gaming  and
  Wagering

AN  ACT  to  amend the tax law, in relation to authorizing video lottery
  gaming at Belmont Park

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

  Section  1. Clause (B) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by chapter 140 of  the
laws of 2008, is amended to read as follows:
  (B)  having one thousand one hundred or more video gaming machines, at
a rate of thirty-two percent of the total revenue wagered at the  vendor
track  after payout for prizes pursuant to this chapter, except for such
facility located in the county of Westchester, in which  case  the  rate
shall  be thirty-four percent of the total revenue wagered at the vendor
track after payout for prizes pursuant to this chapter, for a period  of
twenty-four  months effective beginning April first, two thousand eight;
provided, however, that in the event that the vendor  track  located  in
Westchester  county  completes a successful restructuring prior to March
thirty-first, two thousand ten, the vendor fee will be reduced to  thir-
ty-two  percent  ninety  days following the completion of the successful
restructuring. A successful restructuring is defined as a  restructuring
of  the  existing debt obligations of such vendor track located in West-
chester county that meets the following two conditions:
  (i) it requires no more than  twenty  million  dollars  of  additional
equity invested in such track; and
  (ii) results in average net interest costs of less than nine percent.
  Notwithstanding  the  foregoing,  the  vendor  fee  at such track will
become thirty-one percent effective April first, two  thousand  ten  and
remain  at that level for a period equal to two times the period of time
(measured in days) that the vendor fee was thirty-four percent or  until

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09633-03-9

S. 2827                             2

March  thirty-first,  two  thousand twelve, whichever is later. Notwith-
standing the foregoing, not later than April first, two thousand twelve,
the vendor fee shall become thirty-two percent and remain at that  level
thereafter;  and except for Aqueduct racetrack, in which case the vendor
fee shall be thirty-eight percent of the total revenue  wagered  at  the
vendor  track  after  payout  for  prizes  pursuant to this chapter; AND
EXCEPT FOR BELMONT RACETRACK, IN WHICH CASE  THE  VENDOR  FEE  SHALL  BE
THIRTY-SIX  PERCENT  OF  THE  TOTAL  REVENUE WAGERED AT THE VENDOR TRACK
AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  S 2. 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 OR NASSAU;
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. In establishing 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  partic-
ipation  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 remain-
ing 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 3. Clause (F) of subparagraph (ii) of paragraph 1 of  subdivision  b
of section 1612 of the tax law, as amended by chapter 140 of the laws of
2008, is amended to read as follows:
  (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph,  the  track  operator  of a vendor track shall be eligible 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,  entertainment  facili-
ties,  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

S. 2827                             3

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] AND BELMONT RACETRACKS, for which there
shall be no vendor's capital awards. Except for tracks having less  than
one  thousand  one  hundred  video  gaming machines, each track operator
shall be required to co-invest an amount of capital expenditure equal to
its cumulative vendor's capital awards. For all tracks, except for Aque-
duct [racetrack] AND BELMONT RACETRACKS,  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 thir-
teen. Any amount attributable to a capital expenditure approved prior to
April first, two thousand thirteen and completed before April first, two
thousand  fifteen  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  thirteen  and
completed  prior to April first, two thousand fifteen, exceed the vendor
track's cumulative capital award during  the  five  year  period  ending
April first, two thousand thirteen, the vendor shall continue to receive
the  capital  award  after April first, two thousand thirteen until such
approved capital expenditures are paid to the vendor  track  subject  to
any  required  co-investment.  In  no  event  shall  such track facility
located in Sullivan county and within sixty miles from any gaming facil-
ity in a contiguous state be eligible for a vendor's capital award under
this section, unless it shall have moved from such location or the  five
year  period  commencing on April first, two thousand eight has expired,
whichever comes first. 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 reaching the forty year
straightline depreciation value of the improvement, 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 thousand thirteen shall be deposited in the
state lottery fund for education aid; and
  S  4.  Clause (F) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 286 of the laws of
2008, is relettered clause (F-1).
  S 5. Paragraph 2 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:
  2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry  of
a  portion  of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth in this subdivision. With the excep-
tion of Aqueduct [racetrack] AND BELMONT  RACETRACKS,  each  such  track
shall dedicate a portion of its vendor fees, received pursuant to clause
(A),  (B),  (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph
one of this subdivision, solely for the purpose of enhancing  purses  at
such  track,  in  an amount equal to eight and three-quarters percent of
the total revenue wagered at the vendor track after pay out for  prizes.
In  addition, WITH THE EXCEPTION OF THE AQUEDUCT AND BELMONT RACETRACKS,
one and one-quarter percent of total revenue wagered at the vendor track
after pay out for prizes, received pursuant to  clause  (A),  (B),  (C),
(D),  (E),  (F),  or  (G)  of subparagraph (ii) of paragraph one of this
subdivision, shall be distributed to the appropriate breeding  fund  for
the manner of racing conducted by such track.

S. 2827                             4

  Provided,  further,  that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed  five  years,  with
the  organization  authorized  to  represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses  at
such  track  during the years of participation by such track, or to race
fewer dates than required herein.
  S 6. Section 1612 of the tax law is amended by adding three new subdi-
visions h, i and j to read as follows:
  H. THE VIDEO LOTTERY GAMING  OPERATOR  SELECTED  TO  OPERATE  A  VIDEO
LOTTERY  TERMINAL FACILITY AT BELMONT WILL BE SUBJECT TO A MEMORANDUM OF
UNDERSTANDING BETWEEN THE GOVERNOR, TEMPORARY PRESIDENT  OF  THE  SENATE
AND  THE  SPEAKER  OF  THE ASSEMBLY. NOTWITHSTANDING SUBPARAGRAPH (I) OF
PARAGRAPH A OF SUBDIVISION EIGHT OF SECTION TWO HUNDRED  TWELVE  OF  THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE STATE, PURSUANT TO AN
AGREEMENT  WITH  THE  VIDEO  LOTTERY  GAMING OPERATOR TO OPERATE A VIDEO
LOTTERY TERMINAL FACILITY AT BELMONT, MAY AUTHORIZE,  AS  PART  OF  SUCH
AGREEMENT  OR  IN  CONJUNCTION  WITH  SUCH  AGREEMENT  AT THE TIME IT IS
EXECUTED, ADDITIONAL DEVELOPMENT AT THE  BELMONT  RACING  FACILITY.  THE
SELECTION SHALL BE MADE IN CONSULTATION WITH THE FRANCHISED CORPORATION,
BUT IS NOT SUBJECT TO SUCH CORPORATION'S APPROVAL. THE FRANCHISED CORPO-
RATION SHALL NOT BE ELIGIBLE TO COMPETE TO OPERATE OR TO OPERATE A VIDEO
LOTTERY  TERMINAL  FACILITY  AT  BELMONT.  THE  STATE  WILL USE ITS BEST
EFFORTS TO ENSURE THAT THE VIDEO LOTTERY TERMINAL FACILITY AT BELMONT IS
OPENED AS SOON AS IS PRACTICABLE AND WILL, IF  PRACTICABLE,  PURSUE  THE
CONSTRUCTION  OF  A TEMPORARY VIDEO LOTTERY TERMINAL FACILITY AT BELMONT
SUBJECT TO STAYING WITHIN AN AGREED BUDGET FOR SUCH VIDEO LOTTERY TERMI-
NAL FACILITY AND SUBJECT  TO  SUCH  TEMPORARY  FACILITY  NOT  HAVING  AN
ADVERSE IMPACT ON OPENING OF THE PERMANENT FACILITY AT BELMONT.
  I.  IN  CONSIDERATION  OF  ITS  LICENSURE  AND  PARTICIPATION  IN THIS
PROGRAM, THE VIDEO LOTTERY GAMING OPERATOR AT  BELMONT  RACETRACK  SHALL
REINVEST  IN THE RACING INDUSTRY A PERCENTAGE OF THE VENDOR FEE RECEIVED
PURSUANT TO SUBDIVISION B OF THIS SECTION IN THE  MANNER  SET  FORTH  IN
THIS SUBDIVISION. THE VIDEO LOTTERY GAMING OPERATOR AT BELMONT RACETRACK
SHALL  PROVIDE  THE FOLLOWING PERCENTAGES OF ITS VENDOR FEE TO THE FRAN-
CHISED CORPORATION ESTABLISHED PURSUANT TO SECTION TWO  HUNDRED  SIX  OF
THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AS FOLLOWS:
  1.  THREE AND THREE-QUARTERS PERCENT OF THE TOTAL WAGERED AFTER PAYOUT
OF PRIZES FOR THE PURPOSE OF ENHANCING  PURSES  AT  AQUEDUCT  RACETRACK,
BELMONT PARK RACETRACK AND SARATOGA RACE COURSE.
  2.  ONE  PERCENT  OF  THE  TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR AN
APPROPRIATE BREEDING FUND FOR THE MANNER OF RACING CONDUCTED AT AQUEDUCT
RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE COURSE.
  3. TWO PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES  TO
BE  DEPOSITED  INTO AN ACCOUNT OF THE FRANCHISED CORPORATION ESTABLISHED
PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MUTUEL  WAGERING
AND  BREEDING LAW TO BE USED FOR CAPITAL EXPENDITURES IN MAINTAINING AND
UPGRADING AQUEDUCT RACETRACK, BELMONT PARK RACETRACK AND  SARATOGA  RACE
COURSE.
  4.  ONE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT
FOR PRIZES TO BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED CORPORATION
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING,  PARI-MU-
TUEL  WAGERING  AND  BREEDING  LAW  TO  BE USED FOR GENERAL THOROUGHBRED
RACING OPERATIONS AT AQUEDUCT  RACETRACK,  BELMONT  PARK  RACETRACK  AND
SARATOGA RACE COURSE.
  5.  PARAGRAPHS  ONE,  TWO, THREE AND FOUR OF THIS SUBDIVISION SHALL BE
KNOWN COLLECTIVELY AS THE "BELMONT RACING SUPPORT PAYMENTS".

S. 2827                             5

  J. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION B OR F OF THIS SECTION
TO THE CONTRARY, UPON COMMENCEMENT OF THE  OPERATION  OF  VIDEO  LOTTERY
GAMING  AT BELMONT RACETRACK, THE VENDOR FEE TO BE PAID FOR SERVING AS A
LOTTERY AGENT TO THE TRACK OPERATOR  OF  AQUEDUCT  RACETRACK,  SHALL  BE
THIRTY-SEVEN AND ONE-QUARTER PERCENT OF THE TOTAL REVENUE WAGERED AT THE
VENDOR  TRACK  AFTER  PAYOUT FOR PRIZES PURSUANT TO THIS ARTICLE FOR THE
FIRST YEAR OF OPERATION OF VIDEO LOTTERY GAMING AT  AQUEDUCT  RACETRACK,
THIRTY-SIX  AND  EIGHT  HUNDRED  SEVENTY-FIVE-THOUSANDTHS PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT TO THIS ARTICLE FOR THE SECOND YEAR OF OPERATION  OF  VIDEO  LOTTERY
GAMING AT AQUEDUCT RACETRACK, AND THIRTY-SIX AND ONE-HALF PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT  TO  THIS  ARTICLE  FOR THE THIRD YEAR OF OPERATION OF VIDEO LOTTERY
GAMING AT AQUEDUCT RACETRACK AND THEREAFTER.  AS CONSIDERATION  FOR  THE
OPERATION  OF  THE  VIDEO LOTTERY GAMING FACILITY AT AQUEDUCT RACETRACK,
THE DIVISION SHALL CAUSE THE INVESTMENT IN THE RACING  INDUSTRY  OF  THE
FOLLOWING PERCENTAGES OF THE VENDOR FEE DESCRIBED IN THIS SUBDIVISION TO
BE DEPOSITED OR PAID, AS FOLLOWS:
  1.  THREE AND ONE-QUARTER PERCENT OF THE TOTAL WAGERED AFTER PAYOUT OF
PRIZES FOR THE FIRST YEAR OF OPERATION OF VIDEO LOTTERY GAMING AT  AQUE-
DUCT  RACETRACK,  THREE  AND ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER
PAYOUT OF PRIZES FOR THE SECOND YEAR OF OPERATION, AND THREE AND  THREE-
QUARTERS  PERCENT  OF  THE  TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE
THIRD YEAR OF OPERATION AND THEREAFTER, FOR  THE  PURPOSE  OF  ENHANCING
PURSES  AT  AQUEDUCT RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE
COURSE.
  2. ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER PAYOUT  OF  PRIZES  FOR
THE  FIRST  YEAR  OF OPERATION OF VIDEO LOTTERY GAMING AT AQUEDUCT RACE-
TRACK, SIX HUNDRED TWENTY-FIVE THOUSANDTHS PERCENT OF THE TOTAL  WAGERED
AFTER PAYOUT OF PRIZES FOR THE SECOND YEAR OF OPERATION, AND THREE-QUAR-
TERS  PERCENT  OF THE TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE THIRD
YEAR OF OPERATION AND THEREAFTER, FOR AN APPROPRIATE BREEDING  FUND  FOR
THE MANNER OF RACING CONDUCTED AT AQUEDUCT RACETRACK, BELMONT PARK RACE-
TRACK AND SARATOGA RACE COURSE.
  3.  TWO PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES TO
BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED  CORPORATION  ESTABLISHED
PURSUANT  TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MUTUEL WAGERING
AND BREEDING LAW TO BE USED FOR CAPITAL EXPENDITURES IN MAINTAINING  AND
UPGRADING  AQUEDUCT  RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE
COURSE.
  4. ONE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AFTER  PAYOUT
FOR PRIZES TO BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED CORPORATION
ESTABLISHED  PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MU-
TUEL WAGERING AND BREEDING LAW  TO  BE  USED  FOR  GENERAL  THOROUGHBRED
RACING  OPERATIONS  AT  AQUEDUCT  RACETRACK,  BELMONT PARK RACETRACK AND
SARATOGA RACE COURSE.
  5. PARAGRAPHS ONE, TWO, THREE AND FOUR OF THIS  SUBDIVISION  SHALL  BE
KNOWN COLLECTIVELY AS THE "AQUEDUCT RACING SUPPORT PAYMENTS".
  S  7.  The opening paragraph of subdivision a of section 1617-a of the
tax law, as amended by section 2 of part Z3 of chapter 62 of the laws of
2003, is amended to read as follows:
  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 Aqueduct AND  BELMONT,
Monticello,  Yonkers,  Finger  Lakes, and Vernon Downs racetracks, or at
any other racetrack licensed pursuant to article three  of  the  racing,

S. 2827                             6

pari-mutuel  wagering  and  breeding law that are located in a county or
counties in which video lottery gaming has been authorized  pursuant  to
local  law,  excluding  the  licensed  racetrack commonly referred to in
article  three  of  the racing, pari-mutuel wagering and breeding law as
the "New York state exposition" held in Onondaga county and  the  [race-
tracks]  RACETRACK  of  the  [non-profit  racing association] FRANCHISED
CORPORATION known as [Belmont Park racetrack and] the Saratoga thorough-
bred racetrack.  Such rules and regulations shall provide, as  a  condi-
tion of licensure, that racetracks 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 gaming operations as
found at racetracks in other states, that racetrack  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  racetrack
pursuant  to  this section shall be deemed an approved activity for such
racetrack under the relevant city, county, town, or village land use  or
zoning  ordinances,  rules, or regulations. No racetrack operating 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 8. The opening paragraph of subdivision a of section 1617-a  of  the
tax  law,  as  amended by chapter 140 of the laws of 2008, is amended to
read as follows:
  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  Aqueduct  [racetrack]
AND  BELMONT RACETRACKS.  Such rules and regulations shall provide, as a
condition of licensure,  that  [such  racetrack  is]  RACETRACKS  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, infras-
tructure, and amenities consistent  with  industry  standards  for  such
video  gaming  operations  as  found at racetracks in other states, that
racetrack 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 racetrack pursuant to this section shall  be  deemed
an approved activity for such racetrack under the relevant city, county,
town,  or  village land use or zoning ordinances, rules, or regulations.
No racetrack operating 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  9.  This  act shall take effect immediately; provided, that section
eight of this act shall take effect on the same date  and  in  the  same
manner  as  section  13  of chapter 140 of the laws of 2008, as amended;
provided, further, that the amendments to section 1617-a of the tax law,
made by sections seven and eight of this act, shall not affect the expi-
ration and repeal of such  section,  and  shall  expire  and  be  deemed
repealed  therewith; and provided further that the amendments to section
212 of the racing,  pari-mutuel  wagering  and  breeding  law,  made  by
section  one  of  this act shall take effect on the same date and in the
same manner as such section takes effect pursuant to chapter 18  of  the
laws of 2008.

2009-S2827A - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §§1612 & 1617-a, Tax L; rpld §§4 & 5, Chap 286 of 2008

2009-S2827A - Summary

Authorizes video lottery gaming at Belmont Park.

2009-S2827A - Sponsor Memo

                                 BILL NUMBER:  S2827A

 TITLE OF BILL :
An act to amend the tax law, in relation to authorizing video lottery
gaming at Belmont Park; and to repeal sections 4 and 5 of chapter 286
of the laws of 2008, amending the tax law and other laws relating to
annual capital improvement credits for video lottery gaming operators,
relating thereto


 PURPOSE :
This bill would authorize operation of Video Lottery Terminals
("VLTs") at the Belmont Park racing facility and set the commission
rates accordingly.

The bill would provide a vendor marketing allowance of up to 8% to
increase attendance. Like Aqueduct, the bill would not provide for a
vendor's capital award.

Finally, the bill establishes racing support payments from the VLTs at
Belmont Park and modifies said payments and commission rates between
both Aqueduct and Belmont Park upon commencement of VLT operations.

 SUMMARY OF PROVISIONS :
Section 1. Sets a vendor fee at Belmont Park of 36% of the total
revenue wagered at the vendor track after payment of prizes.

Section 2. Provides a marketing allowance of 8% for the vendor track
to use towards promotional activities and increasing attendance.

Section 3. Prohibits Belmont, like Aqueduct, from receiving an
additional capital award.

Section 4. Provides for a technical change.

Section 5. Carves Belmont, just like Aqueduct, out from requiring
additional monies be used solely for purse enhancements.

Section 6. Establishes a mechanism for selecting an operator of VLTs
at Belmont and establishes a schedule of racing support payments.

Section 7. Provides the Division of the Lottery with the ability to
license video lottery gaming at Belmont.

Section 8. Authorizes the Division of the Lottery to license and issue
guidelines and regulations pertaining to video lottery gaming at
Belmont.

Section 9. Effective date.

 JUSTIFICATION :
Chapter 18 of the Laws of 2008 extended the New York Racing
Association's franchise to operate the state's three thoroughbred
racetracks for another 25 years. Unfortunately, this chapter did not
authorize the installation of video lottery terminals at Belmont Park.

The revenue from these VLTs is vital to the future of the communities
that host the track and will inject much needed revenue into the
schools and the local governments that shoulder the burden of hosting
the track. Also, the strong potential for economic development on
Belmont land and spin-off businesses that would stem from the
installation of VLTs would benefit not only the host communities, but
the county of Nassau and the State of New York as a whole.

 LEGISLATIVE HISTORY :
New bill.
 FISCAL IMPLICATIONS :
If enacted, the State could generate an up-front payment of nearly
$370 million dollars for the rights to operate VLTs at Belmont. Such
is the amount of money Delaware North has agreed to pay the State for
the rights to operate said terminals at Aqueduct.

 EFFECTIVE DATE :
Immediately.

2009-S2827A - Bill Text download pdf

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

                                 2827--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 4, 2009
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee on  Racing,  Gaming  and
  Wagering  -- recommitted to the Committee on Racing, Gaming and Wager-
  ing in accordance with Senate Rule 6, sec.  8  --  reported  favorably
  from  said  committee  and  committed  to  the Committee on Finance --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend the tax law, in relation to authorizing video lottery
  gaming at Belmont Park; and to repeal sections 4 and 5 of chapter  286
  of  the  laws of 2008, amending the tax law and other laws relating to
  annual capital improvement credits for video lottery gaming operators,
  relating thereto

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

  Section  1. Clause (B) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1  of  part
O-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (B)  having one thousand one hundred or more video gaming machines, at
a rate of thirty-two percent of the total revenue wagered at the  vendor
track  after payout for prizes pursuant to this chapter, except for such
facility located in the county of Westchester, in which  case  the  rate
shall  be thirty-four percent of the total revenue wagered at the vendor
track after payout for prizes pursuant to this chapter, for a period  of
twenty-four  months effective beginning April first, two thousand eight;
provided, however, that in the event that the vendor  track  located  in
Westchester  county  completes a successful restructuring prior to March
thirty-first, two thousand ten, the vendor fee will be reduced to  thir-
ty-two  percent  ninety  days following the completion of the successful
restructuring. A successful restructuring is defined as a  restructuring
of  the  existing debt obligations of such vendor track located in West-
chester county that meets the following two conditions:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09633-04-0

S. 2827--A                          2

  (i) it requires no more than  twenty  million  dollars  of  additional
equity invested in such track; and
  (ii) results in average net interest costs of less than nine percent.
  Notwithstanding  the  foregoing,  the  vendor  fee  at such track will
become thirty-one percent effective April first, two  thousand  ten  and
remain  at that level for a period equal to two times the period of time
(measured in days) that the vendor fee was thirty-four percent or  until
March  thirty-first,  two  thousand twelve, whichever is later. Notwith-
standing the foregoing, not later than April first, two thousand twelve,
the vendor fee shall become thirty-two percent and remain at that  level
thereafter;  and except for Aqueduct racetrack, in which case the vendor
fee shall be thirty-eight percent of the total revenue  wagered  at  the
vendor  track  after  payout  for  prizes  pursuant to this chapter; AND
EXCEPT FOR BELMONT RACETRACK, IN WHICH CASE  THE  VENDOR  FEE  SHALL  BE
THIRTY-SIX  PERCENT  OF  THE  TOTAL  REVENUE WAGERED AT THE VENDOR TRACK
AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  S 2. Paragraph 2 of subdivision b of section 1612 of the tax  law,  as
amended  by  section 1 of part O-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry  of
a  portion  of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth  in  this  subdivision.    With  the
exception  of  Aqueduct  [racetrack]  AND  BELMONT RACETRACKS, each such
track shall dedicate a portion of its vendor fees, received pursuant  to
clause  (A),  (B),  (C),  (D),  (E), (F), or (G) of subparagraph (ii) of
paragraph one of this subdivision, solely for the purpose  of  enhancing
purses  at  such  track,  in an amount equal to eight and three-quarters
percent of the total revenue wagered at the vendor track after  pay  out
for  prizes. In addition, with the exception of Aqueduct [racetrack] AND
BELMONT RACETRACKS, one and one-quarter percent of total revenue wagered
at the vendor track after pay  out  for  prizes,  received  pursuant  to
clause  (A),  (B),  (C),  (D),  (E), (F), or (G) of subparagraph (ii) of
paragraph one of this subdivision, shall be distributed to the appropri-
ate breeding fund for the manner of racing conducted by such track.
  Provided, further, that nothing in this paragraph shall  prevent  each
track  from  entering  into an agreement, not to exceed five years, with
the organization authorized to represent its  horsemen  to  increase  or
decrease  the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or  to  race
fewer dates than required herein.
  S 3. Section 1612 of the tax law is amended by adding three new subdi-
visions h, i and j to read as follows:
  H.  THE  VIDEO  LOTTERY  GAMING  OPERATOR  SELECTED TO OPERATE A VIDEO
LOTTERY TERMINAL FACILITY AT BELMONT WILL BE SUBJECT TO A MEMORANDUM  OF
UNDERSTANDING  BETWEEN  THE  GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE
AND THE SPEAKER OF THE ASSEMBLY.  NOTWITHSTANDING  SUBPARAGRAPH  (I)  OF
PARAGRAPH  A  OF  SUBDIVISION EIGHT OF SECTION TWO HUNDRED TWELVE OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE STATE, PURSUANT TO AN
AGREEMENT WITH THE VIDEO LOTTERY GAMING  OPERATOR  TO  OPERATE  A  VIDEO
LOTTERY  TERMINAL  FACILITY  AT  BELMONT, MAY AUTHORIZE, AS PART OF SUCH
AGREEMENT OR IN CONJUNCTION WITH  SUCH  AGREEMENT  AT  THE  TIME  IT  IS
EXECUTED,  ADDITIONAL  DEVELOPMENT  AT  THE BELMONT RACING FACILITY. THE
SELECTION SHALL BE MADE IN CONSULTATION WITH THE FRANCHISED CORPORATION,
BUT IS NOT SUBJECT TO SUCH CORPORATION'S APPROVAL. THE FRANCHISED CORPO-
RATION SHALL NOT BE ELIGIBLE TO COMPETE TO OPERATE OR TO OPERATE A VIDEO

S. 2827--A                          3

LOTTERY TERMINAL FACILITY AT  BELMONT.  THE  STATE  WILL  USE  ITS  BEST
EFFORTS TO ENSURE THAT THE VIDEO LOTTERY TERMINAL FACILITY AT BELMONT IS
OPENED  AS  SOON  AS IS PRACTICABLE AND WILL, IF PRACTICABLE, PURSUE THE
CONSTRUCTION  OF  A TEMPORARY VIDEO LOTTERY TERMINAL FACILITY AT BELMONT
SUBJECT TO STAYING WITHIN AN AGREED BUDGET FOR SUCH VIDEO LOTTERY TERMI-
NAL FACILITY AND SUBJECT  TO  SUCH  TEMPORARY  FACILITY  NOT  HAVING  AN
ADVERSE IMPACT ON OPENING OF THE PERMANENT FACILITY AT BELMONT.
  I.  IN  CONSIDERATION  OF  ITS  LICENSURE  AND  PARTICIPATION  IN THIS
PROGRAM, THE VIDEO LOTTERY GAMING OPERATOR AT  BELMONT  RACETRACK  SHALL
REINVEST  IN THE RACING INDUSTRY A PERCENTAGE OF THE VENDOR FEE RECEIVED
PURSUANT TO SUBDIVISION B OF THIS SECTION IN THE  MANNER  SET  FORTH  IN
THIS SUBDIVISION. THE VIDEO LOTTERY GAMING OPERATOR AT BELMONT RACETRACK
SHALL  PROVIDE  THE FOLLOWING PERCENTAGES OF ITS VENDOR FEE TO THE FRAN-
CHISED CORPORATION ESTABLISHED PURSUANT TO SECTION TWO  HUNDRED  SIX  OF
THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AS FOLLOWS:
  1.  THREE AND THREE-QUARTERS PERCENT OF THE TOTAL WAGERED AFTER PAYOUT
OF PRIZES FOR THE PURPOSE OF ENHANCING  PURSES  AT  AQUEDUCT  RACETRACK,
BELMONT PARK RACETRACK AND SARATOGA RACE COURSE.
  2.  ONE  PERCENT  OF  THE  TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR AN
APPROPRIATE BREEDING FUND FOR THE MANNER OF RACING CONDUCTED AT AQUEDUCT
RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE COURSE.
  3. TWO PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES  TO
BE  DEPOSITED  INTO AN ACCOUNT OF THE FRANCHISED CORPORATION ESTABLISHED
PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MUTUEL  WAGERING
AND  BREEDING LAW TO BE USED FOR CAPITAL EXPENDITURES IN MAINTAINING AND
UPGRADING AQUEDUCT RACETRACK, BELMONT PARK RACETRACK AND  SARATOGA  RACE
COURSE.
  4.  ONE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT
FOR PRIZES TO BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED CORPORATION
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING,  PARI-MU-
TUEL  WAGERING  AND  BREEDING  LAW  TO  BE USED FOR GENERAL THOROUGHBRED
RACING OPERATIONS AT AQUEDUCT  RACETRACK,  BELMONT  PARK  RACETRACK  AND
SARATOGA RACE COURSE.
  5.  PARAGRAPHS  ONE,  TWO, THREE AND FOUR OF THIS SUBDIVISION SHALL BE
KNOWN COLLECTIVELY AS THE "BELMONT RACING SUPPORT PAYMENTS".
  J. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION B OR F OF THIS SECTION
TO THE CONTRARY, UPON COMMENCEMENT OF THE  OPERATION  OF  VIDEO  LOTTERY
GAMING  AT BELMONT RACETRACK, THE VENDOR FEE TO BE PAID FOR SERVING AS A
LOTTERY AGENT TO THE TRACK OPERATOR  OF  AQUEDUCT  RACETRACK,  SHALL  BE
THIRTY-SEVEN AND ONE-QUARTER PERCENT OF THE TOTAL REVENUE WAGERED AT THE
VENDOR  TRACK  AFTER  PAYOUT FOR PRIZES PURSUANT TO THIS ARTICLE FOR THE
FIRST YEAR OF OPERATION OF VIDEO LOTTERY GAMING AT  AQUEDUCT  RACETRACK,
THIRTY-SIX  AND  EIGHT  HUNDRED  SEVENTY-FIVE-THOUSANDTHS PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT TO THIS ARTICLE FOR THE SECOND YEAR OF OPERATION  OF  VIDEO  LOTTERY
GAMING AT AQUEDUCT RACETRACK, AND THIRTY-SIX AND ONE-HALF PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT  TO  THIS  ARTICLE  FOR THE THIRD YEAR OF OPERATION OF VIDEO LOTTERY
GAMING AT AQUEDUCT RACETRACK AND THEREAFTER.  AS CONSIDERATION  FOR  THE
OPERATION  OF  THE  VIDEO LOTTERY GAMING FACILITY AT AQUEDUCT RACETRACK,
THE DIVISION SHALL CAUSE THE INVESTMENT IN THE RACING  INDUSTRY  OF  THE
FOLLOWING PERCENTAGES OF THE VENDOR FEE DESCRIBED IN THIS SUBDIVISION TO
BE DEPOSITED OR PAID, AS FOLLOWS:
  1.  THREE AND ONE-QUARTER PERCENT OF THE TOTAL WAGERED AFTER PAYOUT OF
PRIZES FOR THE FIRST YEAR OF OPERATION OF VIDEO LOTTERY GAMING AT  AQUE-
DUCT  RACETRACK,  THREE  AND ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER

S. 2827--A                          4

PAYOUT OF PRIZES FOR THE SECOND YEAR OF OPERATION, AND THREE AND  THREE-
QUARTERS  PERCENT  OF  THE  TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE
THIRD YEAR OF OPERATION AND THEREAFTER, FOR  THE  PURPOSE  OF  ENHANCING
PURSES  AT  AQUEDUCT RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE
COURSE.
  2. ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER PAYOUT  OF  PRIZES  FOR
THE  FIRST  YEAR  OF OPERATION OF VIDEO LOTTERY GAMING AT AQUEDUCT RACE-
TRACK, SIX HUNDRED TWENTY-FIVE THOUSANDTHS PERCENT OF THE TOTAL  WAGERED
AFTER PAYOUT OF PRIZES FOR THE SECOND YEAR OF OPERATION, AND THREE-QUAR-
TERS  PERCENT  OF THE TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE THIRD
YEAR OF OPERATION AND THEREAFTER, FOR AN APPROPRIATE BREEDING  FUND  FOR
THE MANNER OF RACING CONDUCTED AT AQUEDUCT RACETRACK, BELMONT PARK RACE-
TRACK AND SARATOGA RACE COURSE.
  3.  TWO PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES TO
BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED  CORPORATION  ESTABLISHED
PURSUANT  TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MUTUEL WAGERING
AND BREEDING LAW TO BE USED FOR CAPITAL EXPENDITURES IN MAINTAINING  AND
UPGRADING  AQUEDUCT  RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE
COURSE.
  4. ONE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AFTER  PAYOUT
FOR PRIZES TO BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED CORPORATION
ESTABLISHED  PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MU-
TUEL WAGERING AND BREEDING LAW  TO  BE  USED  FOR  GENERAL  THOROUGHBRED
RACING  OPERATIONS  AT  AQUEDUCT  RACETRACK,  BELMONT PARK RACETRACK AND
SARATOGA RACE COURSE.
  5. PARAGRAPHS ONE, TWO, THREE AND FOUR OF THIS  SUBDIVISION  SHALL  BE
KNOWN COLLECTIVELY AS THE "AQUEDUCT RACING SUPPORT PAYMENTS".
  S  4.  Subdivision  a  of section 1617-a of the tax law, as amended by
section 2 of part O-1 of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  a. The division of the lottery is hereby authorized to license, pursu-
ant  to  rules  and regulations to be promulgated by the division of the
lottery, the operation of video lottery gaming at Aqueduct AND  BELMONT,
Monticello,  Yonkers,  Finger  Lakes, and Vernon Downs racetracks, or at
any other racetrack licensed pursuant to article three  of  the  racing,
pari-mutuel  wagering  and  breeding law that are located in a county or
counties in which video lottery gaming has been authorized  pursuant  to
local  law,  excluding  the  licensed  racetrack commonly referred to in
article three of the racing, pari-mutuel wagering and  breeding  law  as
the  "New  York state exposition" held in Onondaga county and the [race-
tracks] RACETRACK of  the  [non-profit  racing  association]  FRANCHISED
CORPORATION known as [Belmont Park racetrack and] the Saratoga thorough-
bred  racetrack.   Such rules and regulations shall provide, as a condi-
tion of licensure, that racetracks 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 gaming  operations  as
found  at  racetracks in other states, that racetrack 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 racetrack
pursuant to this section shall be deemed an approved activity  for  such
racetrack  under the relevant city, county, town, or village land use or
zoning ordinances, rules, or regulations.  No  entity  licensed  by  the
division  operating  video  lottery  gaming pursuant to this section may

S. 2827--A                          5

house such gaming activity in a structure  deemed  or  approved  by  the
division  as  "temporary" for a duration of longer than eighteen-months.
Nothing in this section shall prohibit the division  from  licensing  an
entity  to  operate  video  lottery  gaming  at an existing racetrack as
authorized in this subdivision whether or  not  a  different  entity  is
licensed  to conduct horse racing and pari-mutuel wagering at such race-
track pursuant to article two or three of the racing, pari-mutuel wager-
ing and breeding law.
  The division, in consultation with  the  racing  and  wagering  board,
shall  establish  standards  for approval of the temporary and permanent
physical layout and construction of any facility or building devoted  to
a  video lottery gaming operation. In reviewing such application for the
construction or reconstruction of facilities related or devoted  to  the
operation  or  housing of video lottery gaming operations, the division,
in consultation with the racing and wagering board,  shall  ensure  that
such facility:
  (1)  possesses superior consumer amenities and conveniences to encour-
age and attract the patronage of tourists and other visitors from across
the region, state, and nation.
  (2) has adequate motor vehicle parking facilities  to  satisfy  patron
requirements.
  (3)  has a physical layout and location that facilitates access to and
from the horse racing track portion of such facility to encourage patro-
nage of live horse racing events that are conducted at such track.
  S 5. Subdivision a of section 1617-a of the  tax  law,  as  separately
amended  by chapter 140 of the laws of 2008 and section 2 of part O-1 of
chapter 57 of the laws of 2009, is amended to read as follows:
  a. The division of the lottery is hereby authorized to license, pursu-
ant to rules and regulations to be promulgated by the  division  of  the
lottery,  the  operation of video lottery gaming at Aqueduct [racetrack]
AND BELMONT RACETRACKS.  Such rules and regulations shall provide, as  a
condition  of  licensure,  that  [such  racetrack  is]  RACETRACKS 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,  infras-
tructure,  and  amenities  consistent  with  industry standards for such
video gaming operations as found at racetracks  in  other  states,  that
racetrack  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 racetrack pursuant to this section shall be deemed
an approved activity for such racetrack under the relevant city, county,
town, or village land use or zoning ordinances, rules,  or  regulations.
No entity licensed by the division operating video lottery gaming pursu-
ant 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.  Nothing  in  this  section shall prohibit the division
from licensing an entity to operate video lottery gaming at an  existing
racetrack  as  authorized in this subdivision whether or not a different
entity is licensed to conduct horse racing and pari-mutuel  wagering  at
such  racetrack pursuant to article two or three of the racing, pari-mu-
tuel wagering and breeding law.
  The division, in consultation with  the  racing  and  wagering  board,
shall  establish  standards  for approval of the temporary and permanent
physical layout and construction of any facility or building devoted  to
a  video lottery gaming operation. In reviewing such application for the

S. 2827--A                          6

construction or reconstruction of facilities related or devoted  to  the
operation  or  housing of video lottery gaming operations, the division,
in consultation with the racing and wagering board,  shall  ensure  that
such facility:
  (1)  possesses superior consumer amenities and conveniences to encour-
age and attract the patronage of tourists and other visitors from across
the region, state, and nation.
  (2) has adequate motor vehicle parking facilities  to  satisfy  patron
requirements.
  (3)  has a physical layout and location that facilitates access to and
from the horse racing track portion of such facility to encourage patro-
nage of live horse racing events that are conducted at such track.
  The division shall not approve the construction or alteration  of  any
facility  or  building  devoted  to  the  operation  or housing of video
lottery gaming until the person or entity selected to operate such video
lottery gaming shall have submitted to the division a statement  of  the
location  of  the proposed facility or building, together with a plan of
such racetrack, and plans of all existing buildings, seating stands  and
other  structures  on the grounds of such racetrack, in such form as the
division may prescribe, and such plans shall have been approved  by  the
division.  The division, at the expense of the applicant, may order such
engineering examination thereof as the division may deem necessary. Such
construction or alteration may be made only with  the  approval  of  the
division  and  after examination and inspection of the plans thereof and
the issuance of a permit therefor by the division.
  S 6. Sections 4 and 5 of chapter 286 of the laws of 2008, amending the
tax law and other laws relating to annual  capital  improvement  credits
for video lottery gaming operators, are REPEALED.
  S  7.  This  act shall take effect immediately; provided, that section
five of this act shall take effect on the same  date  and  in  the  same
manner  as  section  13  of chapter 140 of the laws of 2008, as amended;
provided, further, that the amendments to section 1617-a of the tax law,
made by sections four and five of this act, shall not affect the expira-
tion and repeal of such section, and shall expire and be deemed repealed
therewith.

2009-S2827B (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §§1612 & 1617-a, Tax L; rpld §§4 & 5, Chap 286 of 2008

2009-S2827B (ACTIVE) - Summary

Authorizes video lottery gaming at Belmont Park.

2009-S2827B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2827B

 TITLE OF BILL :
An act to amend the tax law, in relation to authorizing video lottery
gaming at Belmont Park; and to repeal sections 4 and 5 of chapter 286
of the laws of 2008, amending the tax law and other laws relating to
annual capital improvement credits for video lottery gaming operators,
relating thereto


 PURPOSE :
This bill would authorize operation of Video Lottery Terminals
("VLTs") at the Belmont Park racing facility and set the commission
rates accordingly.

The bill would provide a vendor marketing allowance of up to 8% to
increase attendance. Like Aqueduct, the bill would not provide for a
vendor's capital award.

Finally, the bill establishes racing support payments from the VLTs at
Belmont Park and modifies said payments and commission rates between
both Aqueduct and Belmont Park upon commencement of VLT operations.

 SUMMARY OF PROVISIONS :
Section 1. Sets a vendor fee at Belmont Park of 36% of the total
revenue wagered at the vendor track after payment of prizes.

Section 2. Provides a marketing allowance of 8% for the vendor track
to use towards promotional activities and increasing attendance.

Section 3. Prohibits Belmont, like Aqueduct, from receiving an
additional capital award and authorizes that the process for selecting
the video lottery gaming operator be subject to a public request for
proposals.

Section 4. Provides for a technical change.

Section 5. Carves Belmont, just like Aqueduct, out from requiring
additional monies be used solely for purse enhancements.

Section 6. Establishes a mechanism for selecting an operator of VLTs
at Belmont and establishes a schedule of racing support payments.

Section 7. provides the Division of the Lottery with the ability to
license video lottery gaming at Belmont.

Section 8. Authorizes the Division of the Lottery to license and issue
guidelines and regulations pertaining to video lottery gaming at
Belmont.

Section 9. Effective date.

 JUSTIFICATION :
Chapter 18 of the Laws of 2008 extended the New York Racing
Association's franchise to operate the state's three thoroughbred
racetracks for another 25 years. Unfortunately, this chapter did not
authorize the installation of video lottery terminals at Belmont Park.

The revenue from these VLTs is vital to the future of the communities
that host the track and will inject much needed revenue into the
schools and the local governments that shoulder the burden of hosting
the track. Also, the strong potential for economic development on
Belmont land and spin-off businesses that would stem from the
installation of VLTs Would benefit not only the host communities, but
the county of Nassau and the State of New York as a whole.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
If enacted, the State could generate an up-front payment of nearly
$370 million dollars for the rights to operate VLTs at Belmont. Such
is the amount of money Delaware North has agreed to pay the State for
the rights to operate said terminals at Aqueduct.

 EFFECTIVE DATE :
Immediately.

2009-S2827B (ACTIVE) - Bill Text download pdf

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

                                 2827--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 4, 2009
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee on  Racing,  Gaming  and
  Wagering  -- recommitted to the Committee on Racing, Gaming and Wager-
  ing in accordance with Senate Rule 6, sec.  8  --  reported  favorably
  from  said  committee  and  committed  to  the Committee on Finance --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to  authorizing  video  lottery
  gaming  at Belmont Park; and to repeal sections 4 and 5 of chapter 286
  of the laws of 2008, amending the tax law and other laws  relating  to
  annual capital improvement credits for video lottery gaming operators,
  relating thereto

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

  Section 1. Clause (B) of subparagraph (ii) of paragraph 1 of  subdivi-
sion  b  of section 1612 of the tax law, as amended by section 1 of part
O-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (B) having one thousand one hundred or more video gaming machines,  at
a  rate of thirty-two percent of the total revenue wagered at the vendor
track after payout for prizes pursuant to this chapter, except for  such
facility  located  in  the county of Westchester, in which case the rate
shall be thirty-four percent of the total revenue wagered at the  vendor
track  after payout for prizes pursuant to this chapter, for a period of
twenty-four months effective beginning April first, two thousand  eight;
provided,  however,  that  in the event that the vendor track located in
Westchester county completes a successful restructuring prior  to  March
thirty-first,  two thousand ten, the vendor fee will be reduced to thir-
ty-two percent ninety days following the completion  of  the  successful
restructuring.  A successful restructuring is defined as a restructuring

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09633-05-0

S. 2827--B                          2

of the existing debt obligations of such vendor track located  in  West-
chester county that meets the following two conditions:
  (i)  it  requires  no  more  than twenty million dollars of additional
equity invested in such track; and
  (ii) results in average net interest costs of less than nine percent.
  Notwithstanding the foregoing, the  vendor  fee  at  such  track  will
become  thirty-one  percent  effective April first, two thousand ten and
remain at that level for a period equal to two times the period of  time
(measured  in days) that the vendor fee was thirty-four percent or until
March thirty-first, two thousand twelve, whichever  is  later.  Notwith-
standing the foregoing, not later than April first, two thousand twelve,
the  vendor fee shall become thirty-two percent and remain at that level
thereafter; and except for Aqueduct racetrack, in which case the  vendor
fee  shall  be  thirty-eight percent of the total revenue wagered at the
vendor track after payout for  prizes  pursuant  to  this  chapter;  AND
EXCEPT  FOR  BELMONT  RACETRACK,  IN  WHICH CASE THE VENDOR FEE SHALL BE
THIRTY-SIX PERCENT OF THE TOTAL REVENUE  WAGERED  AT  THE  VENDOR  TRACK
AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  S  2.  Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 1 of part O-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:
  2. As consideration for the operation of a video lottery gaming facil-
ity,  the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one  of  this
subdivision  in  the  manner  set  forth in this subdivision.   With the
exception of Aqueduct [racetrack]  AND  BELMONT  RACETRACKS,  each  such
track  shall dedicate a portion of its vendor fees, received pursuant to
clause (A), (B), (C), (D), (E), (F), or  (G)  of  subparagraph  (ii)  of
paragraph  one  of this subdivision, solely for the purpose of enhancing
purses at such track, in an amount equal  to  eight  and  three-quarters
percent  of  the total revenue wagered at the vendor track after pay out
for prizes. In addition, with the exception of Aqueduct [racetrack]  AND
BELMONT RACETRACKS, one and one-quarter percent of total revenue wagered
at  the  vendor  track  after  pay  out for prizes, received pursuant to
clause (A), (B), (C), (D), (E), (F), or  (G)  of  subparagraph  (ii)  of
paragraph one of this subdivision, shall be distributed to the appropri-
ate breeding fund for the manner of racing conducted by such track.
  Provided,  further,  that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed  five  years,  with
the  organization  authorized  to  represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses  at
such  track  during the years of participation by such track, or to race
fewer dates than required herein.
  S 3. Section 1612 of the tax law is amended by adding three new subdi-
visions h, i and j to read as follows:
  H. THE VIDEO LOTTERY GAMING  OPERATOR  SELECTED  TO  OPERATE  A  VIDEO
LOTTERY  TERMINAL  FACILITY AT BELMONT SHALL BE SELECTED BY THE DIVISION
OF THE LOTTERY PURSUANT  TO  A  PUBLIC  REQUEST  FOR  PROPOSALS  AND  IN
CONJUNCTION  WITH  THE  REQUIREMENTS AND PROVISIONS SET FORTH IN SECTION
SIXTEEN HUNDRED TWENTY OF THIS ARTICLE.    NOTWITHSTANDING  SUBPARAGRAPH
(I) OF PARAGRAPH A OF SUBDIVISION EIGHT OF SECTION TWO HUNDRED TWELVE OF
THE  RACING,  PARI-MUTUEL WAGERING AND BREEDING LAW, THE STATE, PURSUANT
TO AN AGREEMENT WITH THE VIDEO LOTTERY  GAMING  OPERATOR  TO  OPERATE  A
VIDEO  LOTTERY  TERMINAL  FACILITY AT BELMONT, MAY AUTHORIZE, AS PART OF
SUCH AGREEMENT OR IN CONJUNCTION WITH SUCH AGREEMENT AT THE TIME  IT  IS
EXECUTED,  ADDITIONAL  DEVELOPMENT  AT  THE BELMONT RACING FACILITY. THE

S. 2827--B                          3

SELECTION SHALL BE MADE IN CONSULTATION WITH THE FRANCHISED CORPORATION,
BUT IS NOT SUBJECT TO SUCH CORPORATION'S APPROVAL. THE FRANCHISED CORPO-
RATION SHALL NOT BE ELIGIBLE TO COMPETE TO OPERATE OR TO OPERATE A VIDEO
LOTTERY  TERMINAL  FACILITY  AT  BELMONT.  THE  STATE  WILL USE ITS BEST
EFFORTS TO ENSURE THAT THE VIDEO LOTTERY TERMINAL FACILITY AT BELMONT IS
OPENED AS SOON AS IS PRACTICABLE AND WILL, IF  PRACTICABLE,  PURSUE  THE
CONSTRUCTION  OF  A TEMPORARY VIDEO LOTTERY TERMINAL FACILITY AT BELMONT
SUBJECT TO STAYING WITHIN AN AGREED BUDGET FOR SUCH VIDEO LOTTERY TERMI-
NAL FACILITY AND SUBJECT  TO  SUCH  TEMPORARY  FACILITY  NOT  HAVING  AN
ADVERSE IMPACT ON OPENING OF THE PERMANENT FACILITY AT BELMONT.
  I.  IN  CONSIDERATION  OF  ITS  LICENSURE  AND  PARTICIPATION  IN THIS
PROGRAM, THE VIDEO LOTTERY GAMING OPERATOR AT  BELMONT  RACETRACK  SHALL
REINVEST  IN THE RACING INDUSTRY A PERCENTAGE OF THE VENDOR FEE RECEIVED
PURSUANT TO SUBDIVISION B OF THIS SECTION IN THE  MANNER  SET  FORTH  IN
THIS SUBDIVISION. THE VIDEO LOTTERY GAMING OPERATOR AT BELMONT RACETRACK
SHALL  PROVIDE  THE FOLLOWING PERCENTAGES OF ITS VENDOR FEE TO THE FRAN-
CHISED CORPORATION ESTABLISHED PURSUANT TO SECTION TWO  HUNDRED  SIX  OF
THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AS FOLLOWS:
  1.  THREE AND THREE-QUARTERS PERCENT OF THE TOTAL WAGERED AFTER PAYOUT
OF PRIZES FOR THE PURPOSE OF ENHANCING  PURSES  AT  AQUEDUCT  RACETRACK,
BELMONT PARK RACETRACK AND SARATOGA RACE COURSE.
  2.  ONE  PERCENT  OF  THE  TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR AN
APPROPRIATE BREEDING FUND FOR THE MANNER OF RACING CONDUCTED AT AQUEDUCT
RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE COURSE.
  3. TWO PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES  TO
BE  DEPOSITED  INTO AN ACCOUNT OF THE FRANCHISED CORPORATION ESTABLISHED
PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MUTUEL  WAGERING
AND  BREEDING LAW TO BE USED FOR CAPITAL EXPENDITURES IN MAINTAINING AND
UPGRADING AQUEDUCT RACETRACK, BELMONT PARK RACETRACK AND  SARATOGA  RACE
COURSE.
  4.  ONE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT
FOR PRIZES TO BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED CORPORATION
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING,  PARI-MU-
TUEL  WAGERING  AND  BREEDING  LAW  TO  BE USED FOR GENERAL THOROUGHBRED
RACING OPERATIONS AT AQUEDUCT  RACETRACK,  BELMONT  PARK  RACETRACK  AND
SARATOGA RACE COURSE.
  5.  PARAGRAPHS  ONE,  TWO, THREE AND FOUR OF THIS SUBDIVISION SHALL BE
KNOWN COLLECTIVELY AS THE "BELMONT RACING SUPPORT PAYMENTS".
  J. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION B OR F OF THIS SECTION
TO THE CONTRARY, UPON COMMENCEMENT OF THE  OPERATION  OF  VIDEO  LOTTERY
GAMING  AT BELMONT RACETRACK, THE VENDOR FEE TO BE PAID FOR SERVING AS A
LOTTERY AGENT TO THE TRACK OPERATOR  OF  AQUEDUCT  RACETRACK,  SHALL  BE
THIRTY-SEVEN AND ONE-QUARTER PERCENT OF THE TOTAL REVENUE WAGERED AT THE
VENDOR  TRACK  AFTER  PAYOUT FOR PRIZES PURSUANT TO THIS ARTICLE FOR THE
FIRST YEAR OF OPERATION OF VIDEO LOTTERY GAMING AT  AQUEDUCT  RACETRACK,
THIRTY-SIX  AND  EIGHT  HUNDRED  SEVENTY-FIVE-THOUSANDTHS PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT TO THIS ARTICLE FOR THE SECOND YEAR OF OPERATION  OF  VIDEO  LOTTERY
GAMING AT AQUEDUCT RACETRACK, AND THIRTY-SIX AND ONE-HALF PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT  TO  THIS  ARTICLE  FOR THE THIRD YEAR OF OPERATION OF VIDEO LOTTERY
GAMING AT AQUEDUCT RACETRACK AND THEREAFTER.  AS CONSIDERATION  FOR  THE
OPERATION  OF  THE  VIDEO LOTTERY GAMING FACILITY AT AQUEDUCT RACETRACK,
THE DIVISION SHALL CAUSE THE INVESTMENT IN THE RACING  INDUSTRY  OF  THE
FOLLOWING PERCENTAGES OF THE VENDOR FEE DESCRIBED IN THIS SUBDIVISION TO
BE DEPOSITED OR PAID, AS FOLLOWS:

S. 2827--B                          4

  1.  THREE AND ONE-QUARTER PERCENT OF THE TOTAL WAGERED AFTER PAYOUT OF
PRIZES FOR THE FIRST YEAR OF OPERATION OF VIDEO LOTTERY GAMING AT  AQUE-
DUCT  RACETRACK,  THREE  AND ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER
PAYOUT OF PRIZES FOR THE SECOND YEAR OF OPERATION, AND THREE AND  THREE-
QUARTERS  PERCENT  OF  THE  TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE
THIRD YEAR OF OPERATION AND THEREAFTER, FOR  THE  PURPOSE  OF  ENHANCING
PURSES  AT  AQUEDUCT RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE
COURSE.
  2. ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER PAYOUT  OF  PRIZES  FOR
THE  FIRST  YEAR  OF OPERATION OF VIDEO LOTTERY GAMING AT AQUEDUCT RACE-
TRACK, SIX HUNDRED TWENTY-FIVE THOUSANDTHS PERCENT OF THE TOTAL  WAGERED
AFTER PAYOUT OF PRIZES FOR THE SECOND YEAR OF OPERATION, AND THREE-QUAR-
TERS  PERCENT  OF THE TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE THIRD
YEAR OF OPERATION AND THEREAFTER, FOR AN APPROPRIATE BREEDING  FUND  FOR
THE MANNER OF RACING CONDUCTED AT AQUEDUCT RACETRACK, BELMONT PARK RACE-
TRACK AND SARATOGA RACE COURSE.
  3.  TWO PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES TO
BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED  CORPORATION  ESTABLISHED
PURSUANT  TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MUTUEL WAGERING
AND BREEDING LAW TO BE USED FOR CAPITAL EXPENDITURES IN MAINTAINING  AND
UPGRADING  AQUEDUCT  RACETRACK, BELMONT PARK RACETRACK AND SARATOGA RACE
COURSE.
  4. ONE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AFTER  PAYOUT
FOR PRIZES TO BE DEPOSITED INTO AN ACCOUNT OF THE FRANCHISED CORPORATION
ESTABLISHED  PURSUANT TO SECTION TWO HUNDRED SIX OF THE RACING, PARI-MU-
TUEL WAGERING AND BREEDING LAW  TO  BE  USED  FOR  GENERAL  THOROUGHBRED
RACING  OPERATIONS  AT  AQUEDUCT  RACETRACK,  BELMONT PARK RACETRACK AND
SARATOGA RACE COURSE.
  5. PARAGRAPHS ONE, TWO, THREE AND FOUR OF THIS  SUBDIVISION  SHALL  BE
KNOWN COLLECTIVELY AS THE "AQUEDUCT RACING SUPPORT PAYMENTS".
  S  4.  Subdivision  a  of section 1617-a of the tax law, as amended by
section 2 of part O-1 of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  a. The division of the lottery is hereby authorized to license, pursu-
ant  to  rules  and regulations to be promulgated by the division of the
lottery, the operation of video lottery gaming at Aqueduct AND  BELMONT,
Monticello,  Yonkers,  Finger  Lakes, and Vernon Downs racetracks, or at
any other racetrack licensed pursuant to article three  of  the  racing,
pari-mutuel  wagering  and  breeding law that are located in a county or
counties in which video lottery gaming has been authorized  pursuant  to
local  law,  excluding  the  licensed  racetrack commonly referred to in
article three of the racing, pari-mutuel wagering and  breeding  law  as
the  "New  York state exposition" held in Onondaga county and the [race-
tracks] RACETRACK of  the  [non-profit  racing  association]  FRANCHISED
CORPORATION known as [Belmont Park racetrack and] the Saratoga thorough-
bred  racetrack.   Such rules and regulations shall provide, as a condi-
tion of licensure, that racetracks 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 gaming  operations  as
found  at  racetracks in other states, that racetrack 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 racetrack
pursuant to this section shall be deemed an approved activity  for  such

S. 2827--B                          5

racetrack  under the relevant city, county, town, or village land use or
zoning ordinances, rules, or regulations.  No  entity  licensed  by  the
division  operating  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.
Nothing  in  this  section shall prohibit the division from licensing an
entity to operate video lottery  gaming  at  an  existing  racetrack  as
authorized  in  this  subdivision  whether  or not a different entity is
licensed to conduct horse racing and pari-mutuel wagering at such  race-
track pursuant to article two or three of the racing, pari-mutuel wager-
ing and breeding law.
  The  division,  in  consultation  with  the racing and wagering board,
shall establish standards for approval of the  temporary  and  permanent
physical  layout and construction of any facility or building devoted to
a video lottery gaming operation. In reviewing such application for  the
construction  or  reconstruction of facilities related or devoted to the
operation or housing of video lottery gaming operations,  the  division,
in  consultation  with  the racing and wagering board, shall ensure that
such facility:
  (1) possesses superior consumer amenities and conveniences to  encour-
age and attract the patronage of tourists and other visitors from across
the region, state, and nation.
  (2)  has  adequate  motor vehicle parking facilities to satisfy patron
requirements.
  (3) has a physical layout and location that facilitates access to  and
from the horse racing track portion of such facility to encourage patro-
nage of live horse racing events that are conducted at such track.
  S  5.  Subdivision  a  of section 1617-a of the tax law, as separately
amended by chapter 140 of the laws of 2008 and section 2 of part O-1  of
chapter 57 of the laws of 2009, is amended to read as follows:
  a. The division of the lottery is hereby authorized to license, pursu-
ant  to  rules  and regulations to be promulgated by the division of the
lottery, the operation of video lottery gaming at  Aqueduct  [racetrack]
AND  BELMONT RACETRACKS.  Such rules and regulations shall provide, as a
condition of licensure,  that  [such  racetrack  is]  RACETRACKS  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, infras-
tructure, and amenities consistent  with  industry  standards  for  such
video  gaming  operations  as  found at racetracks in other states, that
racetrack 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 racetrack pursuant to this section shall  be  deemed
an approved activity for such racetrack under the relevant city, county,
town,  or  village land use or zoning ordinances, rules, or regulations.
No entity licensed by the division operating video lottery gaming pursu-
ant 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. Nothing in this section  shall  prohibit  the  division
from  licensing an entity to operate video lottery gaming at an existing
racetrack as authorized in this subdivision whether or not  a  different
entity  is  licensed to conduct horse racing and pari-mutuel wagering at
such racetrack pursuant to article two or three of the racing,  pari-mu-
tuel wagering and breeding law.

S. 2827--B                          6

  The  division,  in  consultation  with  the racing and wagering board,
shall establish standards for approval of the  temporary  and  permanent
physical  layout and construction of any facility or building devoted to
a video lottery gaming operation. In reviewing such application for  the
construction  or  reconstruction of facilities related or devoted to the
operation or housing of video lottery gaming operations,  the  division,
in  consultation  with  the racing and wagering board, shall ensure that
such facility:
  (1) possesses superior consumer amenities and conveniences to  encour-
age and attract the patronage of tourists and other visitors from across
the region, state, and nation.
  (2)  has  adequate  motor vehicle parking facilities to satisfy patron
requirements.
  (3) has a physical layout and location that facilitates access to  and
from the horse racing track portion of such facility to encourage patro-
nage of live horse racing events that are conducted at such track.
  The  division  shall not approve the construction or alteration of any
facility or building devoted  to  the  operation  or  housing  of  video
lottery gaming until the person or entity selected to operate such video
lottery  gaming  shall have submitted to the division a statement of the
location of the proposed facility or building, together with a  plan  of
such  racetrack, and plans of all existing buildings, seating stands and
other structures on the grounds of such racetrack, in such form  as  the
division  may  prescribe, and such plans shall have been approved by the
division. The division, at the expense of the applicant, may order  such
engineering examination thereof as the division may deem necessary. Such
construction  or  alteration  may  be made only with the approval of the
division and after examination and inspection of the plans  thereof  and
the issuance of a permit therefor by the division.
  S 6. Sections 4 and 5 of chapter 286 of the laws of 2008, amending the
tax  law  and  other laws relating to annual capital improvement credits
for video lottery gaming operators, are REPEALED.
  S 7. This act shall take effect immediately;  provided,  that  section
five  of  this  act  shall  take effect on the same date and in the same
manner as section 13 of chapter 140 of the laws  of  2008,  as  amended;
provided, further, that the amendments to section 1617-a of the tax law,
made by sections four and five of this act, shall not affect the expira-
tion and repeal of such section, and shall expire and be deemed repealed
therewith.

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Senate Bill S2827

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Archive: Last Bill Status - In Senate Committee Rules Committee

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Jan 19, 2010 - Racing, Gaming And Wagering Committee Vote

Racing, Gaming And Wagering Committee Vote: Jan 19, 2010

Jun 15, 2010 - Finance Committee Vote

Finance Committee Vote: Jun 15, 2010

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Sponsored By

Craig M. Johnson

Archive: Last Bill Status - In Senate Committee Rules Committee

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