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

                                    1

                       Third Extraordinary Session

                          I N  A S S E M B L Y

                            November 29, 2010
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  once and referred to the Committee on Ways and Means

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
  relation to pari-mutuel tax rates at certain facilities and establish-
  ing the New York Racing Network, Inc.; and to amend the  tax  law,  in
  relation to authorizing subsidized free play credits

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

  Section 1. Legislative findings and  intent.  The  legislature  hereby
finds  and declares that the New York city off-track betting corporation
is an integral component of the horse racing industry in New  York.  The
legislature  further  finds  that  in  order  to preserve its continuing
existence, the corporation was allowed by  executive  order  to  file  a
petition  for  bankruptcy  protection  under Chapter 9 of the Bankruptcy
Code in the southern district of New York.  The  bankruptcy  proceedings
have  resulted  in  a  reorganization plan, the approval of which by the
official committee of creditors is contingent upon enacting  legislation
to implement certain elements of that plan.
  The  legislature  further finds that the labor unions representing the
employees of the corporation have signed memoranda of  agreement,  which
ratify  portions  of the reorganization plan affecting their membership.
This approval represents concurrence with the  corporation's  leadership
and  the view of the legislature that a plan that allows the corporation
to remain sustainable upon exiting bankruptcy will  preserve  employment
opportunities for New York residents, and is preferable to a liquidation
of  the corporation. Furthermore, the legislature finds that the tens of
thousands of jobs both directly and indirectly supported by  the  racing
industry  will  be  protected  by  a reorganization plan that supports a
seamless exit from bankruptcy for the corporation.
  Therefore, the legislature  finds  this  legislation,  which  strictly
enacts elements of the reorganization plan, to be essential to maintain-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12318-07-0
              

A. 1                                2

ing  a  vibrant horse racing industry in New York, and to protecting the
thousands of jobs supported by the horse racing industry.
  S  2. Subdivision 5-a of section 307 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 18 of the laws of  2008,  is
amended to read as follows:
  5-a.  The  board shall not issue a license pursuant to this section to
any harness racing association or corporation which does  not  apply  to
conduct  at  its facilities a minimum number of pari-mutuel programs and
pari-mutuel races at its facilities equal to at least  seventy-five  per
centum  of  the  programs and races so conducted during nineteen hundred
eighty-five or during nineteen hundred eighty-six, or  one  hundred  per
centum  of  the  programs  and  races  so conducted during two thousand,
whichever is greater; provided, however, that for a harness racing asso-
ciation or corporation located in Westchester and  Erie  counties,  such
minimum  number  of  pari-mutuel  programs  and pari-mutuel races at its
facilities shall equal at least one hundred per centum of  the  programs
and  races conducted during two thousand, AND PROVIDED FURTHER, HOWEVER,
THAT FOR A HARNESS ASSOCIATION OR CORPORATION LOCATED IN SULLIVAN  COUN-
TY, SUCH MINIMUM NUMBER OF PARI-MUTUEL PROGRAMS AND PARI-MUTUEL RACES AT
ITS FACILITIES SHALL EQUAL AT LEAST SIXTY PER CENTUM OF THE PROGRAMS AND
RACES  SO  CONDUCTED  DURING  NINETEEN  HUNDRED EIGHTY-SIX OR EIGHTY PER
CENTUM OF THE PROGRAMS AND  RACES  SO  CONDUCTED  DURING  TWO  THOUSAND,
WHICHEVER  IS  GREATER.    If the track did not conduct races during two
thousand, such minimum number of pari-mutuel  programs  and  pari-mutuel
races  at  its  facilities shall equal at least ninety per centum of the
programs and races conducted during two thousand at Buffalo raceway,  in
the  town  of  Hamburg and county of Erie, unless cancellation of a race
day because of an act of God, which the board  approves  or  because  of
weather conditions that are unsafe or hazardous which the board approves
shall  not  be  construed  as  a failure to conduct a race day; provided
further, the board shall not grant a  license  to  such  association  or
corporation   upon  application  unless  such  programs  and  races  are
conducted during the same calendar year period as were conducted  during
the  applicable  period  above utilized to measure the minimum number of
pari-mutuel programs and pari-mutuel races, as approved  by  the  board.
Nothing  in the foregoing paragraph shall affect any agreement in effect
on or before the effective date of this paragraph. The board may grant a
license to  such  association  or  corporation  to  conduct  fewer  such
programs  and  races  for  good  cause  shown  due to factors beyond the
control of such association or corporation,  and  upon  consent  of  the
representative horsemen's association, as determined pursuant to section
three hundred eighteen of this article.
  S  3. The opening paragraph of paragraph a of subdivision 5 of section
318 of the racing, pari-mutuel wagering and breeding law,  as  added  by
chapter 261 of the laws of 1988, is amended to read as follows:
  Notwithstanding  any  other provision of this section to the contrary,
for any calendar year commencing on or  after  January  first,  nineteen
hundred  eighty-nine,  in  which  a harness racing association or corpo-
ration does not conduct a minimum number  of  pari-mutuel  programs  and
pari-mutuel  races at its facilities equal to at least ninety per centum
of the programs and races so conducted during nineteen  hundred  eighty-
five  or during nineteen hundred eighty-six, PROVIDED, HOWEVER, THAT FOR
A HARNESS RACING ASSOCIATION OR CORPORATION LOCATED IN SULLIVAN  COUNTY,
FOR ANY CALENDAR YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN, IN WHICH SUCH HARNESS RACING ASSOCIATION OR CORPORATION DOES NOT
CONDUCT  A  MINIMUM NUMBER OF PARI-MUTUEL PROGRAMS AND PARI-MUTUEL RACES

A. 1                                3

AT SUCH FACILITIES EQUAL TO AT LEAST SEVENTY PER CENTUM OF THE  PROGRAMS
AND  RACES  SO  CONDUCTED  DURING NINETEEN HUNDRED EIGHTY-FIVE OR DURING
NINETEEN HUNDRED EIGHTY-SIX, whichever is less, in lieu of the tax rates
set  forth in subdivision one of this section the applicable pari-mutuel
tax rates for such association or corporation with respect  to  on-track
pari-mutuel betting pools during such year shall be as follows:
  S  4. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
and breeding law is amended to read as follows:
  2. Ninety-five percent  of  the  balance  of  such  account  remaining
unclaimed  as  of the last day of February of such year shall be paid BY
EACH REGIONAL OFF-TRACK BETTING CORPORATION, EXCEPT THE  NEW  YORK  CITY
OFF-TRACK  BETTING  CORPORATION,  to  the  state tax commission by March
fifteenth. On or before April tenth of each year  the  balance  of  such
account  and  any  other  unclaimed  amounts  received  in the course of
conducting off-track betting shall be paid by [such] EACH REGIONAL  OFF-
TRACK  BETTING  corporation,  EXCEPT THE NEW YORK CITY OFF-TRACK BETTING
CORPORATION, to the state tax commission. A penalty of five percent  and
interest  at  the rate of one percent per month from the due date to the
date of payment of the unclaimed balance due March  fifteenth  or  April
tenth,  as the case may be, shall be payable in case such balance is not
paid when due. Such amounts, interest and penalties  when  collected  by
the state tax commission shall be deposited into the general fund of the
state  treasury.  THE BALANCE OF SUCH UNCLAIMED ACCOUNTS RETAINED BY THE
NEW YORK CITY OFF-TRACK BETTING CORPORATION MAY BE USED FOR  ITS  CORPO-
RATE PURPOSES.
  S  5.  Subdivisions  1,  3,  6, 7 and 11 of section 603 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 115 of  the
laws of 2008, are amended to read as follows:
  1.  A  corporation to be known as the "New York city off-track betting
corporation" is hereby created. Such corporation shall be a body  corpo-
rate  and politic constituting a public benefit corporation. It shall be
administered by a board of directors consisting of five [members] VOTING
DIRECTORS AND THREE NON-VOTING DIRECTORS, who may  be  public  officers,
appointed  by the governor [for fixed terms as hereinafter provided, one
of whom shall be appointed on the recommendation of the temporary presi-
dent of the senate, and one of whom shall be appointed on the  recommen-
dation  of  the  speaker  of the assembly]. THE VOTING DIRECTORS, ONE OF
WHOM SHALL BE APPOINTED ON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT
OF THE SENATE AND ONE OF WHOM SHALL BE APPOINTED ON  THE  RECOMMENDATION
OF  THE  SPEAKER OF THE ASSEMBLY, SHALL SERVE FOR FIXED TERMS AS HEREIN-
AFTER PROVIDED. OF THE NON-VOTING DIRECTORS, ONE SHALL BE  APPOINTED  ON
THE  RECOMMENDATION  OF  THE  FRANCHISED  CORPORATION;  ONE ON THE JOINT
RECOMMENDATION OF THE HARNESS TRACKS LOCATED IN WESTCHESTER AND SULLIVAN
COUNTIES; AND ONE ON THE RECOMMENDATION  OF  THE  UNION  REPRESENTING  A
MAJORITY  OF  THE UNIONIZED EMPLOYEES OF THE CORPORATION. THE NON-VOTING
DIRECTORS SHALL NOT HAVE A FIDUCIARY OBLIGATION TO THE CORPORATION,  BUT
SHALL BE REQUIRED TO PROTECT INFORMATION DEEMED TO BE, OR WHICH COULD BE
REASONABLY  ASSUMED  TO BE, CONFIDENTIAL, INCLUDING, WITHOUT LIMITATION,
ALL MATTERS DISCUSSED IN EXECUTIVE SESSION.
  3. The governor shall designate one of  the  VOTING  directors  to  be
chairman  of  the  board  of  directors  and may at his OR HER pleasure,
change his OR HER designation of any such VOTING director to  be  chair-
man.
  6.  The  powers of the corporation shall be vested in and exercised by
the board at a meeting duly held at a time fixed by any  by-law  adopted
by the board, or at any duly adjourned meeting of such meeting or at any

A. 1                                4

meeting  held  upon  reasonable  notice to all of the directors, or upon
written waiver thereof, and a majority of the  whole  number  of  VOTING
directors  shall constitute a quorum; provided that neither the business
nor  the  powers  of  the  corporation  shall be transacted or exercised
except pursuant to the favorable vote of at  least  a  majority  of  the
VOTING  directors  present  at a meeting at which a quorum is in attend-
ance.
  7. The board may delegate to one or  more  of  the  VOTING  directors,
officers,  agents or employees of the corporation such powers and duties
as it may deem proper.
  11. The fiscal year of the corporation shall be the same  as  that  of
[the  city,  provided,  however,  that the corporation shall have a nine
month fiscal year from July first,  two  thousand  eight  through  March
thirty-first,  two thousand nine, and then the fiscal year of the corpo-
ration shall be the same as] the state.
  S 6. Subdivisions 8 and 11 of section 604 of the  racing,  pari-mutuel
wagering  and  breeding  law, subdivision 8 as amended by chapter 115 of
the laws of 2008, are amended to read as follows:
  8. To make contracts and leases, including joint ventures  with  third
parties or entities, EXCEPT THAT ANY JOINT VENTURE WITH THIRD PARTIES OR
ENTITIES  FOR  THE  PURPOSE  OF RAISING CAPITAL FOR THE CONSTRUCTION AND
OPERATION OF A NEW OR EXPANDED LICENSED SIMULCAST FACILITY AS DEFINED IN
SUBDIVISION J OF SECTION ONE THOUSAND ONE OF THIS  CHAPTER  OR  EXPANDED
SIMULCAST  THEATER  AS  DEFINED IN SUBDIVISION 1 OF SECTION ONE THOUSAND
ONE OF THIS CHAPTER SHALL BE SUBJECT TO A RIGHT OF FIRST REFUSAL BY  ANY
NEW  YORK  STATE  LICENSED  HARNESS TRACK OR FRANCHISED CORPORATION WITH
RACING FACILITIES LOCATED WITHIN THIRTY MILES OF THE  PROPOSED  LOCATION
(IF  MORE THAN ONE SUCH HARNESS TRACK OR FRANCHISED CORPORATION'S RACING
FACILITIES ARE LOCATED WITHIN THIRTY MILES OF THE PROPOSED LOCATION THEN
BOTH WILL HAVE THE RIGHT OF FIRST REFUSAL AND MAY PARTNER TOGETHER THER-
EIN) TO BE THE FINANCIAL AND OPERATING PARTNER  OF  THE  CORPORATION  IN
SUCH  JOINT VENTURE, and to execute all instruments necessary or conven-
ient to accomplish its corporate purpose; provided,  however,  that  the
corporation  may only enter into agreements for the purchase or lease of
any property to be used in whole or in  part  as  an  off-track  betting
branch  office  which  is  conditioned  upon  the location thereof being
approved by the site selection board; and further  provided,  that  such
location  prior to its use as such off-track betting branch office shall
have been approved by the site selection board.  TO THE EXTENT THAT  ANY
PROVISION  OF  THIS CHAPTER, INCLUDING, WITHOUT LIMITATION, SUBPARAGRAPH
(II) OF PARAGRAPH C OF SUBDIVISION TWO OF SECTION ONE THOUSAND EIGHT AND
PARAGRAPH B OF SUBDIVISION THREE OF SECTION ONE THOUSAND NINE OR OF  ANY
OTHER  LAW, RULE OR REGULATION, REQUIRES THE AUTHORIZATION OR CONSENT OF
ANY REGIONAL TRACK TO THE CONSTRUCTION,  OPERATION  OR  LICENSING  OF  A
SIMULCAST  FACILITY  OR  SIMULCAST  THEATER, THEN IN THE EVENT THAT SUCH
RIGHT OF FIRST REFUSAL IS NOT EXERCISED, THEN IF SUCH SIMULCAST FACILITY
IS LOCATED IN NEW YORK COUNTY OR IS LOCATED MORE THAN TEN MILES FROM ANY
REGIONAL HARNESS TRACK OR A RACING FACILITY  OF  THE  FRANCHISED  CORPO-
RATION SUCH CONSENT OR AUTHORIZATION IS HEREBY DEEMED GRANTED.  NOTWITH-
STANDING  ANY  PROVISION  OF  THIS  CHAPTER OR OF ANY OTHER LAW, RULE OR
REGULATION TO THE CONTRARY, THE OPERATOR OF SUCH JOINT VENTURE SIMULCAST
WAGERING FACILITY SHALL NEITHER BE REQUIRED TO COLLECT  A  SURCHARGE  ON
BETS  MADE  THEREIN  NOR  BE  REQUIRED  TO  CHARGE  AN ADMISSION FEE FOR
ENTRANCE THERETO;
  11. In the manner and subject to the terms and conditions set forth in
this article, and article  five-a  of  this  chapter  to  establish  and

A. 1                                5

conduct  a  system of off-track pari-mutuel betting in the city on horse
races WHICH SHALL NOT INCLUDE THE CONDUCT, OPERATION, OR MAINTENANCE  OF
TELEPHONE BETTING ACCOUNTS AND TELEPHONE WAGERING AS DEFINED IN SUBDIVI-
SION  FOUR-A  OF  SECTION  ONE THOUSAND TWELVE OF THIS CHAPTER, PROVIDED
THAT THE CORPORATION MAY AFFILIATE OR JOINT VENTURE SOLELY WITH  AND  AT
THE  SOLE  OPTION  OF  THE NEW YORK RACING NETWORK, INC. IN THE CONDUCT,
OPERATION, OR MAINTENANCE OF TELEPHONE BETTING  ACCOUNTS  AND  TELEPHONE
WAGERING AS DEFINED IN SUBDIVISION FOUR-A OF SECTION ONE THOUSAND TWELVE
OF THIS CHAPTER;
  S  7.  The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 604-a to read as follows:
  S 604-A. TRANSFER OF ACCOUNT WAGERING OPERATIONS. NOTWITHSTANDING  ANY
OTHER  LAW,  RULE  OR  REGULATION TO THE CONTRARY, THE CORPORATION SHALL
TRANSFER OWNERSHIP AND TITLE TO  ALL  TELEPHONE  BETTING  AND  TELEPHONE
WAGERING  ACCOUNTS AS DEFINED IN SUBDIVISION FOUR-A OF SECTION ONE THOU-
SAND TWELVE OF THIS CHAPTER THAT ARE  MAINTAINED  AND  OPERATED  BY  THE
CORPORATION  TO  THE NEW YORK RACING NETWORK, INC. THE CORPORATION SHALL
UPON SUCH TRANSFER NO LONGER HAVE THE AUTHORITY  TO  MAINTAIN  TELEPHONE
BETTING  OR TELEPHONE WAGERING ACCOUNTS AS DEFINED IN THIS CHAPTER OR TO
CONDUCT TELEPHONE OR INTERNET WAGERING AS PROVIDED FOR IN  THIS  CHAPTER
EITHER  DIRECTLY  OR INDIRECTLY THROUGH A THIRD PARTY PROVIDER INCLUDING
BUT NOT LIMITED TO A REGIONAL OFF-TRACK BETTING CORPORATION,  EXCEPT  AS
PROVIDED  FOR  IN SUBDIVISION ELEVEN OF SECTION SIX HUNDRED FOUR OF THIS
ARTICLE. THE CORPORATION SHALL UPON SUCH TRANSFER OF  TELEPHONE  BETTING
AND  TELEPHONE  WAGERING  ACCOUNTS  AS  PROVIDED  HEREIN  NO LONGER HAVE
AUTHORITY TO JOINTLY OR OTHERWISE  APPROVE  THROUGH  WRITTEN  AGREEMENT,
CONSENT  OR  OTHERWISE  THE  CONDUCT OF IN-HOME SIMULCASTING PURSUANT TO
SECTION ONE THOUSAND THREE OF THIS CHAPTER.
  S 8. The racing, pari-mutuel wagering and breeding law is  amended  by
adding a new section 604-b to read as follows:
  S  604-B.  ACCOUNT  SERVICING  FOR  NEW YORK RACING NETWORK, INC.   1.
NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, THE  CORPO-
RATION  SHALL  PERMIT  ACCOUNT  HOLDERS  OF THE NEW YORK RACING NETWORK,
INC., AS ESTABLISHED PURSUANT TO ARTICLE SIX-A OF THIS CHAPTER, TO  MAKE
DEPOSITS  AND  WITHDRAWALS  AT  BRANCH  OFFICES, SIMULCAST FACILITIES OR
SIMULCAST THEATERS OPERATED BY THE CORPORATION FROM  THEIR  ACCOUNTS  AT
THE  NEW YORK RACING NETWORK, INC.  A FEE OF .25 PERCENT PER TRANSACTION
UP TO A MAXIMUM OF TEN DOLLARS PER TRANSACTION SHALL BE ASSESSED BY  THE
CORPORATION  ON THE ACCOUNT HOLDERS OF THE NEW YORK RACING NETWORK, INC.
FOR SUCH DEPOSITS OR WITHDRAWALS ON THEIR ACCOUNTS.
  2. TO THE EXTENT, BUT ONLY TO THE EXTENT, THAT THE NEW YORK CITY  OFF-
TRACK  BETTING  CORPORATION'S  WAGERING TERMINALS, EQUIPMENT AND SYSTEMS
HAVE THE ABILITY TO ACCEPT AND PROCESS  ACCOUNT  WAGERING  TRANSACTIONS,
THE  NEW  YORK  RACING NETWORK, INC.'S ACCOUNT HOLDERS MAY ALSO WAGER AT
BRANCH OFFICES, SIMULCAST FACILITIES OR SIMULCAST THEATERS  OPERATED  BY
THE  NEW  YORK CITY OFF-TRACK BETTING CORPORATION FROM THEIR ACCOUNTS AT
THE NEW YORK RACING NETWORK, INC., IN WHICH  EVENT  ANY  WAGER  MADE  AT
BRANCH  OFFICES,  SIMULCAST FACILITIES OR SIMULCAST THEATERS OPERATED BY
NEW YORK CITY OFF-TRACK BETTING CORPORATION BY AN ACCOUNT HOLDER OF  THE
NEW  YORK RACING NETWORK, INC. USING THEIR ACCOUNT SHALL BE SUBJECT TO A
FEE OF TWO PERCENT OF THE AMOUNT OF EACH ACCOUNT WAGERING TRANSACTION UP
TO A MAXIMUM OF TEN DOLLARS PER TRANSACTION.
  3. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE  CONTRARY,  SUCH
ACCOUNT  WAGERING  TRANSACTION  DESCRIBED  IN  THIS SECTION SHALL NOT BE
SUBJECT TO ANY SURCHARGE THAT OTHERWISE MAY BE REQUIRED TO BE CHARGED OR

A. 1                                6

COLLECTED ON WAGERS PLACED AT A NEW YORK CITY OFF-TRACK BETTING  FACILI-
TY.
  4.  ANY  TRANSACTION  FEE  TO  BE  PAID TO THE NEW YORK CITY OFF-TRACK
BETTING CORPORATION BY THE NEW YORK RACING  NETWORK,  INC.  PURSUANT  TO
THIS  SECTION  SHALL  BE PAID WITHIN THIRTY DAYS OF THE FINAL DAY OF THE
MONTH IN WHICH SUCH TRANSACTION TAKES PLACE.
  5. IF, DURING ANY FISCAL YEAR OF THE NEW YORK CITY  OFF-TRACK  BETTING
CORPORATION,  PAYMENTS  TO  THE  CORPORATION  FROM  THE  NEW YORK RACING
NETWORK, INC. PURSUANT TO THIS SECTION REMAIN UNPAID FOR MORE THAN NINE-
TY DAYS FROM THE DATE THEY ARE  DUE,  OR  ON  THREE  SEPARATE  OCCASIONS
REMAIN UNPAID FOR MORE THAN THIRTY DAYS FROM THE DATE THEY ARE DUE, THEN
THE  CORPORATION  CANNOT  BE HELD IN DEFAULT FOR AS LONG AS THE NEW YORK
RACING NETWORK, INC. REMAINS IN DEFAULT.
  S 9. Subdivision 2 of section 606 of the racing, pari-mutuel  wagering
and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
amended to read as follows:
  2. The corporation shall administer  its  personnel  pursuant  to  the
civil  service law and the rules and regulations promulgated thereunder,
[and classification and compensation schedules of the  state  department
of  civil  service,] and all other applicable provisions of general laws
relating to civil service administration. The corporation  shall  retain
all  personnel, payroll and associated employee records and shall ensure
that the New York city employees' retirement system has access  to  such
records   for   retirement  purposes  consistent  with  current  records
retention requirements.
  S 10. The racing, pari-mutuel wagering and breeding law is amended  by
adding a new section 608 to read as follows:
  S  608.  DISPLAY  OF  RACES. EXCEPT AS TO SIMULCAST SIGNALS OF SPECIAL
INTEREST RACES, INCLUDING WITHOUT LIMITATION, TRIPLE CROWN AND  BREEDERS
CUP  RACES,  SIMULCAST SIGNALS WHICH ARE SHOWN IN BRANCH OFFICES, SIMUL-
CAST FACILITIES OR SIMULCAST THEATERS OF RACE PROGRAMS RUN AT  NEW  YORK
STATE  THOROUGHBRED  OR HARNESS TRACKS SHALL BE PROMINENTLY DISPLAYED ON
THE LARGEST SCREENS AVAILABLE IN SUCH FACILITIES.
  S 11. Section 610 of the racing,  pari-mutuel  wagering  and  breeding
law,  as  amended by chapter 115 of the laws of 2008, is amended to read
as follows:
  S 610. Moneys of corporation. 1.  The  monetary  transactions  of  the
corporation and the keeping of its books and accounts shall be under the
supervision  of the director of the division of the budget. The chair of
the racing and wagering board may at  any  time  request  and  shall  be
provided for review such books and accounts.
  2.  THE ANNUAL OPERATING BUDGETS FOR THE CORPORATION SHALL BE APPROVED
BY THE BOARD OF THE CORPORATION, AND NO BUDGET SHALL BE APPROVED BY  THE
BOARD  THAT  IS  NOT  BALANCED PURSUANT TO GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES, EXCEPT THAT WITH RESPECT TO THE CORPORATION'S OTHER POST-EM-
PLOYMENT BENEFITS LIABILITIES, A BALANCED BUDGET SHOULD GIVE EFFECT ONLY
TO THE PROJECTED AGGREGATE ANNUAL CASH PAYMENT FOR OTHER POST-EMPLOYMENT
BENEFITS LIABILITIES.  MOREOVER, THE CORPORATION SHALL NOT  IMPLEMENT  A
BUDGET  APPROVED  BY  ITS  BOARD  UNTIL  SUCH BUDGET IS DETERMINED TO BE
BALANCED BY THE DIRECTOR OF THE NEW  YORK STATE DIVISION OF  THE  BUDGET
WHO  SHALL  NOT  TAKE  INTO  ACCOUNT  THE  CORPORATION'S  NON-CASH OTHER
POST-EMPLOYMENT BENEFITS LIABILITIES IN MAKING SUCH DETERMINATION.    IN
THE EVENT THE BUDGET OF THE CORPORATION IS NOT DETERMINED TO BE BALANCED
BY  THE  DIRECTOR OF THE BUDGET PRIOR TO THE START OF THE FISCAL YEAR OF
THE CORPORATION, THE CORPORATION SHALL CONTINUE  TO  OPERATE  UNDER  THE
SPENDING  LEVELS  CONTAINED  IN  THE BUDGET OF THE PRIOR YEAR UNTIL SUCH

A. 1                                7

TIME AS A NEW BUDGET IS DETERMINED TO BE BALANCED BY THE DIRECTOR OF THE
BUDGET.
  3.  All moneys due the city pursuant to article five-A of this chapter
shall be paid to the New York city comptroller.
  [3.] 4. The state comptroller and  his  legally  authorized  represen-
tative  are  authorized  to examine the accounts and books of the corpo-
ration, including its receipts, disbursements, contracts, leases,  sink-
ing  funds, investments and any other records and papers relating to its
financial standing.
  [4.]  5.  The  corporation  shall  have  power,  notwithstanding   the
provisions  of  this section, to contract with the holders of any of its
bonds as to the custody, collection, securing, investment and payment of
any moneys of the corporation or any moneys held in trust  or  otherwise
for  the  payment  of bonds in any way to secure bonds, and to carry out
any such contract notwithstanding that such contract may be inconsistent
with the previous provisions of this section.
  [5.] 6. Moneys held in trust or otherwise for the payment of bonds  or
in any way to secure bonds and deposits of such moneys may be secured in
the  same  manner  as moneys of the corporation, and all banks and trust
companies are authorized to give such security for such deposits.
  S 12. The racing, pari-mutuel wagering and breeding law is amended  by
adding a new section 610-a to read as follows:
  S  610-A. REDUCTION IN PAYMENTS REQUIRED TO BE MADE TO IN-STATE TRACKS
ON ACCOUNT OF ACCEPTANCE OF WAGERS ON RACES RUN AT OUT-OF-STATE  TRACKS.
1. OTHER THAN PAYMENTS REQUIRED TO BE MADE DIRECTLY TO AN IN-STATE TRACK
FOR THE TAKING OF WAGERS ON RACES RUN AT AN IN-STATE TRACK, AND NOTWITH-
STANDING  ANY  PROVISION OF THIS CHAPTER OR ANY OTHER LAW, RULE OR REGU-
LATION TO THE CONTRARY, THE NEW YORK CITY OFF-TRACK BETTING  CORPORATION
SHALL  REDUCE  ANY  PAYMENTS REQUIRED TO BE MADE BY IT TO THE FRANCHISED
CORPORATION OR TO  ANY  IN-STATE,  BOARD-LICENSED,  THOROUGHBRED  RACING
CORPORATION  OR HARNESS RACING CORPORATION OR ASSOCIATION, ON ACCOUNT OF
RETAINED COMMISSIONS  FROM  WAGERING  ACCEPTED  BY  THE  NEW  YORK  CITY
OFF-TRACK BETTING CORPORATION ON RACES RUN AT TRACKS OUTSIDE OF NEW YORK
STATE,  INCLUDING  WITHOUT  LIMITATION SUCH PAYMENTS REQUIRED TO BE MADE
PURSUANT TO SECTIONS FIVE HUNDRED TWENTY-SEVEN, ONE  THOUSAND  FOURTEEN,
ONE  THOUSAND FIFTEEN, ONE THOUSAND SIXTEEN AND ONE THOUSAND EIGHTEEN OF
THIS CHAPTER. THE REDUCTIONS IN SUCH PAYMENTS SHALL BE AS  FOLLOWS:  FOR
THE  FIRST FISCAL YEAR OF THE CORPORATION IN WHICH THE EFFECTIVE DATE OF
THIS SUBDIVISION  OCCURS,  SUCH  PAYMENTS  SHALL  BE  REDUCED  BY  FIFTY
PERCENT;  FOR  THE FOLLOWING FISCAL YEAR, SUCH PAYMENTS SHALL BE REDUCED
BY FORTY PERCENT; FOR THE THIRD FISCAL  YEAR,  SUCH  PAYMENTS  SHALL  BE
REDUCED  BY  THIRTY  PERCENT;  AND  FOR EACH FISCAL YEAR THEREAFTER SUCH
PAYMENTS SHALL BE REDUCED BY TWENTY PERCENT, PROVIDED, HOWEVER, THAT  IF
IN  THE  FOURTH  FISCAL YEAR OR IN ANY FISCAL YEAR THEREAFTER THE ANNUAL
TOTAL HANDLE OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION  REACHES
BETWEEN SIX HUNDRED MILLION AND SIX HUNDRED TWENTY MILLION DOLLARS, THEN
THE  REDUCTION IN SUCH PAYMENTS SHALL BE TEN PERCENT; PROVIDED, FURTHER,
HOWEVER THAT IF IN THE FOURTH FISCAL YEAR OR ANY SUBSEQUENT FISCAL  YEAR
THE  ANNUAL  TOTAL  HANDLE OF THE NEW YORK CITY OFF-TRACK BETTING CORPO-
RATION EXCEEDS SIX HUNDRED TWENTY MILLION DOLLARS, THEN THERE  SHALL  BE
NO REDUCTION IN SUCH PAYMENTS.
  2.  ALL  PAYMENTS  REQUIRED  TO BE MADE BY THE NEW YORK CITY OFF-TRACK
BETTING CORPORATION PURSUANT TO SUBDIVISION ONE OF THIS  SECTION,  SHALL
BE  MADE  BY THE CORPORATION WITHIN SIXTY DAYS FOLLOWING THE LAST DAY OF
THE MONTH IN WHICH THE OBLIGATION FOR  SUCH  PAYMENT  ACCRUED,  WITH  AN
ADDITIONAL  THIRTY  DAY  PERIOD  IN  WHICH  THE  CORPORATION MUST CURE A

A. 1                                8

DEFAULT IN THE MAKING OF SUCH PAYMENT, PROVIDED, HOWEVER,  THAT  IN  ANY
FISCAL  YEAR OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION IN WHICH
THE PAYMENT REDUCTIONS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION  ARE
LESS  THAN  TWENTY PERCENT AS A RESULT OF THE CORPORATION'S TOTAL ANNUAL
HANDLE  EXCEEDING  FIVE  HUNDRED   NINETY-NINE   MILLION   DOLLARS   AND
NINETY-NINE  CENTS, THE PORTION OF SUCH PAYMENTS THAT ARE DEPENDENT UPON
THE CORPORATION'S TOTAL ANNUAL HANDLE EXCEEDING  SUCH  AMOUNT  SHALL  BE
PAID  BY  THE  CORPORATION  WITHIN THIRTY DAYS FOLLOWING THE END OF SUCH
FISCAL YEAR, WITH AN ADDITIONAL THIRTY DAY PERIOD IN  WHICH  THE  CORPO-
RATION MUST CURE A DEFAULT IN MAKING OF ANY SUCH PAYMENTS.
  3.  NOTWITHSTANDING  ANY  PROVISION  OF THIS CHAPTER OR ANY OTHER LAW,
RULE OR REGULATION TO THE CONTRARY, THE NEW YORK CITY OFF-TRACK  BETTING
CORPORATION  SHALL  CALCULATE  THE  STATUTORY PAYMENTS IT IS REQUIRED TO
MAKE TO THE AGRICULTURAL AND NEW YORK STATE HORSE  BREEDING  DEVELOPMENT
FUND  BY  USING THE SAME PERCENTAGE RATE USED TO CALCULATE THE STATUTORY
PAYMENTS REQUIRED TO BE MADE BY IT TO THE NEW  YORK  STATE  THOROUGHBRED
BREEDING AND DEVELOPMENT FUND.
  S 13. Section 613 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
  S 613. Agreement of the state. The state does pledge to and agree with
the  holders  of any and all bonds and notes of the corporation that the
state will not authorize any officer or agency of government, other than
the corporation, EXCEPT AS OTHERWISE PROVIDED FOR IN  THIS  ARTICLE,  or
any  private  person, to [conduct] OPERATE off-track betting in the city
on horse races, nor in any manner limit or alter the rights hereby vest-
ed in the corporation to fulfill the terms of any agreements  made  with
the  said  holders, or in any way impair the rights and remedies of such
holders until the bonds and notes, together with the  interest  thereon,
interest  on  any  unpaid  installments  of  interest, and all costs and
expenses in connection with any action or proceeding by or on behalf  of
such  holders, are fully met and discharged.  The corporation is author-
ized to include this pledge and agreement of the state in any  agreement
with the holders of such bonds or notes.
  S  14. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 615 to read as follows:
  S 615. AUTHORITY TO NEGOTIATE SIMULCAST SIGNALS FOR THIRD PARTIES. THE
CORPORATION SHALL BE AUTHORIZED TO CONTRACT WITH THE  FRANCHISED  CORPO-
RATION,  A  THOROUGHBRED  RACING  CORPORATION OR ANY HARNESS CORPORATION
LICENSED BY THE  BOARD  TO  NEGOTIATE  ON  SUCH  ENTITIES'  BEHALF  WITH
OUT-OF-STATE  OR  OUT-OF-COUNTRY RACETRACKS TO PROVIDE SIMULCAST SIGNALS
TO SUCH ENTITIES.
  S 15. The racing, pari-mutuel wagering and breeding law is amended  by
adding a new section 617-a to read as follows:
  S  617-A.  REDUCTIONS IN PARI-MUTUEL TAX PAYMENTS. NOTWITHSTANDING ANY
INCONSISTENT PROVISION OF THIS CHAPTER OR OF  ANY  OTHER  LAW,  RULE  OR
REGULATION, THE NEW YORK CITY OFF-TRACK BETTING CORPORATION SHALL REDUCE
BY FIFTY PERCENT PAYMENTS DUE FOR PARI-MUTUEL TAXES TO THE STATE DEPART-
MENT OF TAXATION AND FINANCE THAT WOULD OTHERWISE BE REQUIRED TO BE MADE
PURSUANT  TO  THE  PROVISIONS OF THIS CHAPTER, PROVIDED, HOWEVER, IN THE
EVENT THAT THE ANNUAL TOTAL HANDLE OF NEW YORK CITY OFF-TRACK BETTING IN
ANY FISCAL YEAR BEGINNING TWO FISCAL YEARS AFTER THE EFFECTIVE  DATE  OF
THIS  SECTION  IS:  SIX  HUNDRED MILLION DOLLARS OR GREATER BUT NOT MORE
THAN SIX HUNDRED FIFTEEN MILLION DOLLARS, SUCH REDUCTION IN  PARI-MUTUEL
TAX  PAYMENTS  SHALL BE FORTY-TWO AND ONE-HALF PERCENT; GREATER THAN SIX
HUNDRED FIFTEEN MILLION DOLLARS BUT NOT MORE  THAN  SIX  HUNDRED  TWENTY
MILLION  DOLLARS,  SUCH  REDUCTION  IN PARI-MUTUEL TAX PAYMENTS SHALL BE

A. 1                                9

THIRTY-SEVEN AND ONE-HALF  PERCENT;  GREATER  THAN  SIX  HUNDRED  TWENTY
MILLION  DOLLARS  BUT  NOT MORE THAN SIX HUNDRED THIRTY MILLION DOLLARS,
SUCH REDUCTION IN PARI-MUTUEL TAX PAYMENTS SHALL BE TWENTY-FIVE PERCENT;
GREATER  THAN  SIX  HUNDRED THIRTY MILLION DOLLARS BUT NOT MORE THAN SIX
HUNDRED THIRTY-FIVE MILLION DOLLARS, SUCH REDUCTION IN  PARI-MUTUEL  TAX
PAYMENTS  SHALL  BE  SEVENTEEN  AND  ONE-HALF  PERCENT; GREATER THAN SIX
HUNDRED THIRTY-FIVE MILLION DOLLARS BUT NOT MORE THAN SIX HUNDRED  FORTY
MILLION  DOLLARS,  SUCH  REDUCTION  IN PARI-MUTUEL TAX PAYMENTS SHALL BE
SEVEN AND ONE-HALF PERCENT; AND IN EXCESS OF SIX HUNDRED  FORTY  MILLION
DOLLARS,  THERE  SHALL  BE NO REDUCTION OF PARI-MUTUEL TAX PAYMENTS. THE
NEW YORK CITY OFF-TRACK BETTING CORPORATION SHALL MAKE MONTHLY  PAYMENTS
OF PARI-MUTUEL TAX BASED UPON SUCH FIFTY PERCENT REDUCTION. WITHIN THIR-
TY  DAYS  OF  THE  END OF THE FISCAL YEAR OF THE CORPORATION, THE CORPO-
RATION SHALL PAY THE REMAINDER OF ANY PARI-MUTUEL TAX THAT MAY BE DUE AS
A RESULT OF A LOWER ALLOWABLE REDUCTION  BASED  UPON  A  CALCULATION  OF
ANNUAL  HANDLE  AT  THE  CLOSE OF NEW YORK CITY OFF-TRACK BETTING CORPO-
RATION'S FISCAL YEAR.
  S 16. The racing, pari-mutuel wagering and breeding law is amended  by
adding a new section 623-a to read as follows:
  S  623-A.  FILING  OF PETITIONS BY THE NEW YORK CITY OFF-TRACK BETTING
CORPORATION. NOTWITHSTANDING ANY  LAW,  RULE,  REGULATION  OR  EXECUTIVE
ORDER  TO  THE  CONTRARY,  IT IS HEREBY DECLARED TO BE THE POLICY OF THE
STATE OF NEW YORK THAT THE NEW YORK CITY OFF-TRACK  BETTING  CORPORATION
SHALL NOT BE AUTHORIZED TO FILE ANY PETITION AFTER THE EFFECTIVE DATE OF
THIS SECTION WITH ANY UNITED STATES DISTRICT COURT OR COURT OF BANKRUPT-
CY UNDER ANY PROVISION OF THE LAWS OF THE UNITED STATES FOR THE COMPOSI-
TION OR ADJUSTMENT OF MUNICIPAL INDEBTEDNESS.
  S  17.  Section  624  of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 115 of the laws of 2008, is amended  to  read
as follows:
  S 624. Termination of the corporation; ASSUMPTION OF MANAGEMENT OF THE
CORPORATION.    1.  The  corporation  and  its corporate existence shall
continue until terminated by law; provided, however, that  no  such  law
shall  take effect so long as the corporation shall have bonds, notes or
other obligations outstanding, INCLUDING BUT NOT LIMITED  TO  A  LICENSE
AND  MANAGEMENT  AGREEMENT  AS  PROVIDED  FOR IN SUBDIVISION TWO OF THIS
SECTION. Upon termination of the existence of the corporation all of its
rights, property, assets and  funds  shall  thereupon  vest  in  and  be
possessed by the state.
  2.  SHOULD THE CORPORATION: (A) FAIL TO PAY ANY COMMISSIONS DUE TO THE
IN-STATE RACE TRACKS WHICH SHALL BE DUE NOT LATER THAN SIXTY  DAYS  FROM
THE  LAST  DAY  OF  THE MONTH IN WHICH SUCH COMMISSIONS ACCRUED, PLUS AN
ADDITIONAL THIRTY DAY CURE PERIOD; OR (B) FAIL TO ACHIEVE POSITIVE EARN-
INGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION  IN  ANY  TWO
CONSECUTIVE  FISCAL  YEARS;  OR  (C)  FAIL TO HAVE A BALANCED BUDGET, AS
DETERMINED BY THE DIRECTOR  OF  THE  STATE  BUDGET  IN  ACCORDANCE  WITH
SECTION SIX HUNDRED TEN OF THIS ARTICLE IN ANY FISCAL YEAR; THEN THE NEW
YORK RACING NETWORK, INC.  MAY ASSUME, PURSUANT TO A LICENSE AND MANAGE-
MENT  AGREEMENT, THE LENGTH OF THE TERM OF WHICH SHALL BE SUBJECT TO THE
APPROVAL OF THE RACING AND WAGERING BOARD,  THE  MANAGEMENT  AND  OPERA-
TIONAL  CONTROL  OF  THE  BUSINESS ACTIVITIES OF THE CORPORATION. IN THE
EVENT THAT THE NEW YORK RACING NETWORK, INC. AGREES TO ASSUME MANAGEMENT
AND OPERATIONAL CONTROL OF THE CORPORATION, THE  FRANCHISED  CORPORATION
AND  THE  HARNESS  TRACK  LOCATED IN WESTCHESTER COUNTY SHALL BE JOINTLY
RESPONSIBLE FOR THE MANAGEMENT AND OPERATIONAL CONTROL OF  THE  BUSINESS
ACTIVITIES  OF THE CORPORATION ON BEHALF OF THE NEW YORK RACING NETWORK,

A. 1                               10

INC., PROVIDED, HOWEVER, THAT NEITHER SHALL DIRECTLY RECEIVE  ADDITIONAL
COMPENSATION  FOR  PROVIDING  SUCH MANAGEMENT SERVICES.  IN THE EVENT OF
THE ASSUMPTION OF THE MANAGEMENT AND OPERATIONAL CONTROL OF  THE  CORPO-
RATION  BY  THE NEW YORK RACING NETWORK, INC., PURSUANT TO THIS SECTION,
THE CORPORATION WILL CONTINUE  TO  BE  GOVERNED  AND  OWNED  IN  A  FORM
CONSISTENT  WITH  GOVERNANCE  AND  OWNERSHIP EXISTING AT THE TIME OF THE
TRANSFER OF MANAGEMENT. ASSUMPTION BY NEW YORK RACING NETWORK, INC.,  OF
THE  MANAGEMENT  AND  OPERATIONAL  CONTROL  OF THE CORPORATION SHALL NOT
ALTER THE TERMS AND CONDITIONS OF EMPLOYMENT OF THE WORKFORCE,  AND  ANY
CURRENT COLLECTIVE BARGAINING AGREEMENTS WITH ITS EMPLOYEE ORGANIZATIONS
SHALL REMAIN IN FULL FORCE AND EFFECT.
  S  18. The racing, pari-mutuel wagering and breeding law is amended by
adding a new article 6-A to read as follows:

                               ARTICLE 6-A
                      NEW YORK RACING NETWORK, INC.

SECTION 625. NEW YORK RACING NETWORK, INC.
        626. DISTRIBUTION OF REVENUES.
  S 625. NEW YORK RACING NETWORK, INC. NOTWITHSTANDING  ANY  OTHER  LAW,
RULE  OR  REGULATION TO THE CONTRARY, A CORPORATION WHICH SHALL BE NAMED
THE NEW YORK RACING NETWORK, INC. SHALL BE  INCORPORATED  BY  THE  FRAN-
CHISED  CORPORATION,  A  THOROUGHBRED RACING CORPORATION AND ONE OR MORE
HARNESS RACING CORPORATIONS WHICH ARE MEMBERS OF THE OFFICIAL  COMMITTEE
OF  CREDITORS  OF  THE NEW YORK CITY OFF-TRACK BETTING CORPORATION UNDER
CHAPTER NINE OF THE UNITED STATES BANKRUPTCY CODE PURSUANT TO EITHER THE
BUSINESS CORPORATION LAW OR THE LIMITED LIABILITY COMPANY LAW.  THE  NEW
YORK  RACING  NETWORK,  INC.  SHALL  BE  AUTHORIZED TO CONDUCT OFF-TRACK
PARI-MUTUEL WAGERING UNDER THIS CHAPTER AND TO DISPLAY THE SIMULCAST  OF
HORSE  RACES  INCLUDING BUT NOT LIMITED TO THROUGH IN-HOME SIMULCAST AND
VIDEO STREAMING OF RACES ON THE INTERNET ON  WHICH  PARI-MUTUEL  BETTING
SHALL  BE PERMITTED SUBJECT TO ARTICLE TEN OF THIS CHAPTER. THE NEW YORK
RACING NETWORK, INC. SHALL ISSUE SHARES TO THE FRANCHISED CORPORATION, A
THOROUGHBRED RACING CORPORATION AND ONE OR MORE  HARNESS  RACING  CORPO-
RATIONS ON A PRO-RATA BASIS BASED ON THE AGGREGATE AMOUNT OF SUCH CORPO-
RATION'S  PRE-PETITION AND POST-PETITION CLAIMS IN A BANKRUPTCY PROCEED-
ING FILED BY THE NEW  YORK  CITY  OFF-TRACK  BETTING  CORPORATION  UNDER
CHAPTER  NINE  OF  THE  BANKRUPTCY  CODE IN THE SOUTHERN DISTRICT OF NEW
YORK. THE NEW YORK RACING NETWORK, INC. SHALL BE AUTHORIZED TO APPLY FOR
A SIMULCAST LICENSE PURSUANT TO SECTION ONE THOUSAND THREE OF THIS CHAP-
TER.   UNLESS OTHERWISE  SPECIFICALLY  PROVIDED,  THE  NEW  YORK  RACING
NETWORK,  INC.  SHALL  BE  SUBJECT  TO ALL REQUIREMENTS OF LAW AND REGU-
LATIONS APPLICABLE TO NEW  YORK  STATE  PARI-MUTUEL  BETTING  OPERATORS,
INCLUDING  APPROVAL  OF  A  PLAN OF OPERATION BY THE RACING AND WAGERING
BOARD. THE SHARES  OR  MEMBERSHIP  INTERESTS  IN  THE  NEW  YORK  RACING
NETWORK,  INC.  SHALL  NOT  BE  TRANSFERRED  TO  PARTIES  OTHER THAN THE
ORIGINAL INCORPORATING INTERESTS WITHOUT THE PRIOR WRITTEN  APPROVAL  OF
THE  RACING  AND  WAGERING BOARD. THE SIMULCAST LICENSE FOR THE NEW YORK
RACING NETWORK, INC. SHALL INCLUDE THE AUTHORIZATION TO  SIMULCAST  INTO
RESIDENCES,  HOMES  OR  OTHER  AREAS  THOROUGH EITHER A CABLE TELEVISION
SIGNAL, VIDEO STREAMING USING THE INTERNET  OR  SIMILAR  TECHNOLOGY  FOR
TRANSMISSION  OF  SUCH SIMULCAST SIGNAL WHICH ARE WITHIN THE CITY OF NEW
YORK. NO AGREEMENT OR OTHER WRITTEN CONSENT WITH OR FROM NEW  YORK  CITY
OFF-TRACK  BETTING  SHALL  BE REQUIRED TO AUTHORIZE THE AFORESAID SIMUL-
CASTING.

A. 1                               11

  S 626. DISTRIBUTION OF REVENUES.  NOTWITHSTANDING  ANY  LAW,  RULE  OR
REGULATION  TO  THE  CONTRARY,  THE  NEW YORK RACING NETWORK, INC. SHALL
DISTRIBUTE ALL SUMS DEPOSITED IN ANY PARI-MUTUEL POOL  THROUGH  THE  NEW
YORK  RACING  NETWORK,  INC.  TO THE HOLDERS OF WINNING TICKETS THEREIN,
PROVIDING SUCH TICKETS ARE PRESENTED FOR PAYMENT PRIOR TO APRIL FIRST OF
THE  YEAR  FOLLOWING  THE  YEAR  OF THEIR PURCHASE. IN THE CASE OF TOTAL
DEPOSITS IN POOLS RESULTING FROM  REGULAR,  MULTIPLE,  EXOTIC  OR  SUPER
EXOTIC  BETS  ON  THE  RACING  PROGRAMS OF THE FRANCHISED CORPORATION, A
THOROUGHBRED CORPORATION OR  A  HARNESS  RACING  CORPORATION  WHICH  ARE
SHAREHOLDERS  OF  THE  NEW YORK RACING NETWORK, INC., SUCH BETS SHALL BE
TREATED AS POOLS FOR AN ON-TRACK BET AT SUCH ENTITY AS PROVIDED  FOR  IN
THIS CHAPTER, EXCEPT THAT ONE PERCENT OF THE TOTAL TAKEOUT IN SUCH POOLS
SHALL  BE  RETAINED BY THE NEW YORK RACING NETWORK, INC. AS A MANAGEMENT
FEE. IN THE CASE OF TOTAL DEPOSITS  IN  POOLS  RESULTING  FROM  REGULAR,
MULTIPLE,  EXOTIC  OR  SUPER  EXOTIC  BETS ON TRACKS LOCATED IN NEW YORK
STATE WHICH ARE NOT SHAREHOLDERS IN NEW YORK RACING NETWORK,  INC.    OR
ARE  MADE  ON  OUT-OF-STATE  OR  OUT-OF-COUNTRY RACES SUCH BETS SHALL BE
TREATED AS IF MADE AT A NEW YORK CITY OFF-TRACK  BETTING  FACILITY  WITH
RESPECT  TO  RETENTION OF TOTAL DEPOSITS IN THE POOL AND PAYMENTS THERE-
FROM.
  S 19. Subdivisions 4-a and 5 of section 1012 of the racing, pari-mutu-
el wagering and breeding law, subdivision 4-a as amended by  chapter  18
of the laws of 2008 and subdivision 5 as amended by section 11 of part C
of chapter 134 of the laws of 2010, are amended to read as follows:
  4-a.  For  the  purposes of this section, "telephone betting accounts"
and "telephone wagering" shall mean and include all those  wagers  which
utilize  any  wired or wireless communications device, including but not
limited to wireline telephones, wireless telephones, and  the  internet,
to  DISPLAY LIVE RACES AND SPECIAL EVENTS, AND, NOTWITHSTANDING ANY LAW,
RULE OR REGULATION TO THE CONTRARY, WITH  RESPECT  TO  NEW  YORK  RACING
NETWORK,  INC.,  IF  INTERNET  WAGERING  IS  PROVIDED  PURSUANT  TO THIS
SECTION, IT SHALL INCLUDE NEW YORK STATE TRACKS WHICH ARE  CONDUCTING  A
RACE  MEET AND A VIDEOSTREAM OF THEIR RACES SHALL BE MADE AVAILABLE UPON
THEIR CONSENT, AND transmit the placement of wagers on races and special
events offered by any regional off-track betting  corporation,  and  any
harness,  thoroughbred,  quarter horse racing association or corporation
licensed or franchised to conduct pari-mutuel racing in New York state.
  5. The provisions of this section shall [expire and be of  no  further
force  and  effect  after  June  thirtieth,  two thousand eleven] NOT BE
SUBJECT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE OF THIS ARTICLE,
HOWEVER, NO RACES OR SPECIAL  EVENTS  SHALL  BE  DISPLAYED  WITHOUT  THE
EXPRESS CONSENT OF THE ORIGINATOR OF THE RACES OR SPECIAL EVENTS.
  S  20. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 1013-a to read as follows:
  S 1013-A. SIMULCAST SIGNAL OF RACES. UPON THE EFFECTIVE DATE  OF  THIS
SECTION  AND  THEREAFTER,  THE  SIMULCAST SIGNAL OF ALL RACES RUN AT THE
TRACKS OPERATED BY THE FRANCHISED CORPORATION SHALL BE  PROVIDED  AT  NO
COST  TO THE NEW YORK CITY OFF-TRACK BETTING CORPORATION FOR DISPLAY FOR
WAGERING PURPOSES IN ITS SIMULCAST FACILITIES.
  S 21. Paragraph h of subdivision 1 of  section  1014  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:
  h. (1) Licensed harness tracks shall receive, EXCEPT FROM THE NEW YORK
CITY OFF-TRACK BETTING CORPORATION, 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  thoroughbred  racing

A. 1                               12

corporation,  two  and eight-tenths percent on regular and multiple bets
during a regional meeting and one and nine-tenths percent of  such  bets
if  there  is  no  regional meeting and four and eight-tenths percent on
exotic  bets  on days on which there is a regional meeting and three and
four-tenths percent of such bets if there is no regional meeting.
  (2) (i) In addition, licensed harness  tracks  shall  receive,  EXCEPT
FROM  THE  NEW YORK CITY OFF-TRACK BETTING CORPORATION, one and one-half
per centum on total handle on races  conducted  at  an  out-of-state  or
out-of-country thoroughbred track provided such harness track is neither
accepting wagers nor displaying the signal from an out-of-state track.
  (ii) In those regions in which there is more than one licensed harness
track,  if no track is accepting wagers or displaying the live simulcast
signal from the out-of-state track, the total sum shall be divided among
the tracks in proportion  to  the  ratio  the  wagers  placed  on  races
conducted  by  each  track  bears  to  the corporation's total in-region
harness handle. If one or more tracks are accepting wagers or displaying
the live simulcast signal, the total amount shall be divided among those
tracks not accepting wagers or displaying the simulcast  signal  for  an
out-of-state track.
  (3)  The  terms used in this section shall have the same applicability
and meaning as interpreted and applied in sections five hundred  twenty-
three and five hundred twenty-seven of this chapter.
  S 22. Clause (E) of subparagraph 5 and clause (F) of subparagraph 6 of
paragraph  b of subdivision 1 of section 1016 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
are amended to read as follows:
  (E) On days when a franchised corporation is  not  conducting  a  race
meeting  and  when  a licensed harness track is neither accepting wagers
nor displaying the signal from an in-state thoroughbred  corporation  or
association or an out-of-state thoroughbred track:
  (i)  Such  licensed  regional harness track shall receive, EXCEPT FROM
THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, 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  thoroughbred
racing corporation, two and eight-tenths percent on regular and multiple
bets  during  a regional meeting and one and nine-tenths percent of such
bets if there is no regional meeting and four and  eight-tenths  percent
on  exotic  bets  on days on which there is a regional meeting and three
and four-tenths percent of such bets if there is no regional meeting.
  (ii) Such licensed regional harness track shall receive,  EXCEPT  FROM
THE  NEW  YORK  CITY OFF-TRACK BETTING CORPORATION, one and one-half per
centum on total regional handle on races conducted  at  out-of-state  or
out-of-country thoroughbred tracks.
  (iii)  In  those  regions  in  which  there  is more than one licensed
regional harness track, if no track is accepting  wagers  or  displaying
the  live  simulcast  signal  from the out-of-state track, the total sum
shall be divided among the tracks in proportion to the ratio the  wagers
placed on races conducted by each track bears to the corporation's total
in-region  harness handle. If one or more tracks are accepting wagers or
displaying the live simulcast signal, the total amount shall be  divided
among  those  tracks  not  accepting  wagers or displaying the simulcast
signal for an out-of-state track or in-state thoroughbred corporation or
association.
  (F) On days when a franchised corporation is  not  conducting  a  race
meeting  and  when  a licensed harness track is neither accepting wagers

A. 1                               13

nor displaying the signal from an in-state thoroughbred  corporation  or
association or an out-of-state thoroughbred track:
  (i)  Such  licensed  regional harness track shall receive, EXCEPT FROM
THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, 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  thoroughbred
racing corporation, two and eight-tenths percent on regular and multiple
bets  during  a regional meeting and one and nine-tenths percent of such
bets if there is no regional meeting and four and  eight-tenths  percent
on  exotic  bets  on days on which there is a regional meeting and three
and four-tenths percent of such bets if there is no regional meeting.
  (ii) Such licensed regional harness track shall receive,  EXCEPT  FROM
THE  NEW  YORK  CITY OFF-TRACK BETTING CORPORATION, one and one-half per
centum on total regional handle on races conducted  at  out-of-state  or
out-of-country thoroughbred tracks.
  (iii)  In  those  regions  in  which  there  is more than one licensed
regional harness track, if no track is accepting  wagers  or  displaying
the  live  simulcast  signal  from the out-of-state track, the total sum
shall be divided among the tracks in proportion to the ratio the  wagers
placed on races conducted by each track bears to the corporation's total
in-region  harness handle. If one or more tracks are accepting wagers or
displaying the live simulcast signal, the total amount shall be  divided
among  those  tracks  not  accepting  wagers or displaying the simulcast
signal for an out-of-state track or in-state thoroughbred corporation.
  S 23. Subdivision 2 of section 1017 of the racing, pari-mutuel  wager-
ing  and  breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
  2. a. Maintenance of effort. Any off-track betting corporation,  OTHER
THAN  THE  NEW YORK CITY OFF-TRACK BETTING CORPORATION, which engages in
accepting wagers on the simulcasts of thoroughbred  races  from  out-of-
state  or  out-of-country  as  permitted  under  subdivision one of this
section shall submit to the board,  for  its  approval,  a  schedule  of
payments  to be made in any year or portion thereof, that such off-track
corporation engages in nighttime thoroughbred simulcasting. In order  to
be approved by the board, the payment schedule shall be identical to the
actual  payments and distributions of such payments to tracks and 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 board, such scheduled payments shall be made from reven-
ues 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,
EXCLUDING THE AMOUNT OF SUCH HANDLE ATTRIBUTABLE TO THE  NEW  YORK  CITY
OFF-TRACK BETTING CORPORATION, exceeds [one hundred] THIRTY-FIVE million
dollars,  each  off-track  betting  corporation, OTHER THAN THE NEW YORK
CITY 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

A. 1                               14

each track pursuant to this paragraph  shall  be  used  exclusively  for
increasing purses, stakes and prizes at that regional harness track.
  S  24. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by section 6  of  part  K  of
chapter 57 of the laws of 2010, 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. PROVIDED, HOWEVER, A  VENDOR  TRACK  THAT
RECEIVED  A VENDOR FEE PURSUANT TO CLAUSE (F) OF THIS SUBPARAGRAPH AS OF
JANUARY FIRST, TWO THOUSAND TEN SHALL ONLY  BE  ELIGIBLE  TO  RECEIVE  A
CAPITAL  AWARD  FOR APPROVED CAPITAL EXPENDITURES ON OR AFTER MAY FIRST,
TWO THOUSAND TWELVE, IN AN AMOUNT NOT TO EXCEED ONE AND ONE-HALF PERCENT
OF THE TOTAL REVENUE WAGERED AT SUCH  TRACK  AFTER  PAYOUT  FOR  PRIZES.
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  award
FOR  ANY CAPITAL INVESTMENTS APPROVED BY THE DIVISION ON OR BEFORE OCTO-
BER THIRTY-FIRST, TWO  THOUSAND  TEN,  AND  NO  CO-INVESTMENT  SHALL  BE
REQUIRED FOR A CAPITAL AWARD FOR ANY CAPITAL INVESTMENTS APPROVED BY THE
DIVISION  ON OR AFTER NOVEMBER FIRST, TWO THOUSAND TEN.  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  thirteen.  Any
amount  attributable  to  a  capital expenditure approved prior to April
first, two thousand thirteen and completed before April first, two thou-
sand 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 cumula-
tive 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 capi-
tal 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
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

A. 1                               15

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 into the  state  lottery
fund for education aid; and
  S  25.  Subparagraph  (ii)  of paragraph 1 of subdivision b of section
1612 of the tax law is amended by adding a new clause  (I)  to  read  as
follows:
  (I)  NOTWITHSTANDING  ANY  PROVISION  TO THE CONTRARY, SUBSIDIZED FREE
PLAY CREDITS AUTHORIZED PURSUANT TO SUBDIVISION  F  OF  SECTION  SIXTEEN
HUNDRED  SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCU-
LATION OF THE TOTAL AMOUNT WAGERED ON VIDEO  LOTTERY  GAMES,  THE  TOTAL
AMOUNT  WAGERED  AFTER  PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE
OPERATORS OF VIDEO LOTTERY FACILITIES, VENDOR'S CAPITAL AWARDS, VENDOR'S
MARKETING ALLOWANCES, FEES  PAYABLE  TO  THE  DIVISION'S  VIDEO  LOTTERY
GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS.
  S  26. Section 1617-a of the tax law is amended by adding a new subdi-
vision f to read as follows:
  F. SUBSIDIZED FREE PLAY. 1. THE  DIVISION  MAY  PROMULGATE  RULES  AND
REGULATIONS  OR  ISSUE INSTRUCTIONS TO THE VIDEO LOTTERY FACILITY OPERA-
TORS GOVERNING THE ADMINISTRATION AND OPERATION OF A PROGRAM  OF  SUBSI-
DIZED  FREE PLAY CREDITS TO BE OFFERED TO PLAYERS OR PROSPECTIVE PLAYERS
OF VIDEO LOTTERY GAMES FOR THE PURPOSE OF INCREASING REVENUES EARNED  BY
THE VIDEO LOTTERY PROGRAM FOR THE SUPPORT OF EDUCATION. FOR THE PURPOSES
OF  THIS  SUBDIVISION,  "SUBSIDIZED  FREE PLAY CREDIT" MEANS A SPECIFIED
DOLLAR AMOUNT THAT (I) MAY BE USED BY A PLAYER TO PLAY A  VIDEO  LOTTERY
GAME WITHOUT PAYING ANY OTHER CONSIDERATION, AND (II) IS NOT USED IN THE
CALCULATION  OF  TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES AND THERE-
FORE SUBSIDIZES THE PROMOTION OF THE VIDEO LOTTERY PROGRAM.
  2. FOR EACH VIDEO LOTTERY FACILITY, THE DIVISION SHALL  AUTHORIZE  THE
USE  OF  SUBSIDIZED  FREE  PLAY CREDITS IF THE OPERATOR OF SUCH FACILITY
SUBMITS A WRITTEN PLAN FOR THE USE OF SUBSIDIZED FREE PLAY CREDITS  THAT
THE  DIVISION  DETERMINES  IS DESIGNED TO INCREASE THE AMOUNT OF REVENUE
EARNED BY VIDEO LOTTERY GAMING AT  SUCH  FACILITY  FOR  THE  SUPPORT  OF
EDUCATION.
  3.  FOR  EACH VIDEO LOTTERY FACILITY, THE VALUE OF THE SUBSIDIZED FREE
PLAY CREDITS AUTHORIZED FOR USE ANNUALLY BY  THE  OPERATOR  PURSUANT  TO
THIS  SUBDIVISION SHALL BE AN AMOUNT EQUAL TO SEVEN AND ONE-HALF PERCENT
OF THE TOTAL AMOUNT WAGERED ON  VIDEO  LOTTERY  GAMES  AFTER  PAYOUT  OF
PRIZES. PROVIDED, HOWEVER, THE VALUE OF THE SUBSIDIZED FREE PLAY CREDITS
AUTHORIZED  FOR  USE  ANNUALLY BY A VIDEO LOTTERY FACILITY OPERATOR AT A
VENDOR TRACK THAT RECEIVES A VENDOR FEE PURSUANT TO CLAUSE (C) OR (F) OF
SUBPARAGRAPH (II) OF PARAGRAPH 1 OF SUBDIVISION  B  OF  SECTION  SIXTEEN
HUNDRED  TWELVE  OF THIS ARTICLE SHALL BE AN AMOUNT EQUAL TO TEN PERCENT
OF THE TOTAL AMOUNT WAGERED ON  VIDEO  LOTTERY  GAMES  AFTER  PAYOUT  OF
PRIZES. PROVIDED, FURTHER, THE VALUE OF THE SUBSIDIZED FREE PLAY CREDITS
AUTHORIZED  FOR  USE  ANNUALLY BY A VIDEO LOTTERY FACILITY OPERATOR AT A
VENDOR TRACK THAT RECEIVES A VENDOR FEE PURSUANT TO CLAUSE (D) OR (E) OF
SUBPARAGRAPH (II) OF PARAGRAPH 1 OF SUBDIVISION  B  OF  SECTION  SIXTEEN
HUNDRED  TWELVE  OF  THIS  ARTICLE  AND IS NOT WITHIN FIFTEEN MILES OF A
NATIVE AMERICAN CLASS III GAMING FACILITY THAT OPERATED PRIOR TO JANUARY
FIRST, TWO THOUSAND TEN, PURSUANT TO A COMPACT THAT INCLUDES EXCLUSIVITY
PAYMENTS TO THE STATE SHALL BE AN AMOUNT EQUAL TO  TEN  PERCENT  OF  THE
TOTAL  AMOUNT  WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF PRIZES.  A
VIDEO LOTTERY FACILITY OPERATOR MAY USE AN  AMOUNT  OF  SUBSIDIZED  FREE
PLAY  CREDITS  THAT  IS LESS THAN THE TOTAL AUTHORIZED, AND THE DIVISION

A. 1                               16

SHALL ESTABLISH PROCEDURES TO ASSURE THAT SUBSIDIZED FREE  PLAY  CREDITS
DO NOT EXCEED THE MAXIMUM AMOUNT ALLOWED PURSUANT TO THIS SUBDIVISION.
  4.  THE  DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET, MAY
SUSPEND UPON NINETY DAYS NOTICE THE USE OF SUBSIDIZED FREE PLAY  CREDITS
AUTHORIZED  PURSUANT TO THIS SUBDIVISION WHENEVER THEY JOINTLY DETERMINE
THAT THE USE OF SUBSIDIZED FREE PLAY CREDITS HAS RESULTED IN A YEAR OVER
YEAR DECLINE IN THE AMOUNT OF REVENUE EARNED FOR THE SUPPORT  OF  EDUCA-
TION  IN THIS STATE BY VIDEO LOTTERY GAMING AT THE VIDEO LOTTERY FACILI-
TY, AND SUCH USE MAY NOT BE RESUMED UNLESS THE OPERATOR OF SUCH FACILITY
SUBMITS A NEW OR REVISED WRITTEN PLAN FOR THE  USE  OF  SUBSIDIZED  FREE
PLAY  CREDITS  THAT THE DIVISION DETERMINES IS DESIGNED MORE EFFECTIVELY
TO PRODUCE AN INCREASE IN THE AMOUNT OF REVENUE EARNED BY VIDEO  LOTTERY
GAMING AT SUCH FACILITY FOR THE SUPPORT OF EDUCATION.
  5.  THE  DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET, MAY
REVOKE THE AUTHORITY FOR A VENDOR TRACK  TO  USE  SUBSIDIZED  FREE  PLAY
CREDITS  AUTHORIZED PURSUANT TO THIS SUBDIVISION UPON NINETY DAYS NOTICE
WHENEVER THEY JOINTLY DETERMINE THAT THE OPERATOR  OF  A  VIDEO  LOTTERY
FACILITY  HAS  VIOLATED  THE  RULES  AND  REGULATIONS ESTABLISHED OR ANY
INSTRUCTIONS ISSUED BY THE DIVISION GOVERNING THE SUBSIDIZED  FREE  PLAY
PROGRAM.   THE DIVISION SHALL ESTABLISH CRITERIA TO REINSTATE SUBSIDIZED
FREE PLAY AT A VENDOR TRACK FOLLOWING THE REVOCATION OF THE AUTHORITY TO
USE SUBSIDIZED FREE PLAY CREDITS.
  6. NOTHING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT THE  OPERA-
TOR  OF  A VIDEO LOTTERY FACILITY FROM OFFERING NON-SUBSIDIZED FREE PLAY
CREDITS TO PLAYERS OR PROSPECTIVE PLAYERS OF VIDEO  LOTTERY  GAMES  WHEN
THE  VALUE  OF  SUCH FREE PLAY CREDITS IS INCLUDED IN THE CALCULATION OF
THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES  AND  THE  TOTAL  AMOUNT
WAGERED  AFTER  PAYOUT OF PRIZES, AND THE OPERATOR OF SUCH FACILITY PAYS
THE DIVISION THE FULL AMOUNT DUE AS THE RESULT OF SUCH CALCULATIONS.
  7. THE DIVISION MAY AMEND  THE  CONTRACT  WITH  THE  PROVIDER  OF  THE
CENTRAL  COMPUTER  SYSTEM THAT CONTROLS THE VIDEO LOTTERY NETWORK DURING
THE TERM OF SUCH CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS SUBDI-
VISION TO PROVIDE ADDITIONAL CONSIDERATION TO SUCH PROVIDER IN AN AMOUNT
DETERMINED BY THE DIVISION TO BE NECESSARY TO COMPENSATE FOR  (I)  PROC-
ESSING  SUBSIDIZED  FREE  PLAY TRANSACTIONS, AND (II) SYSTEM UPDATES AND
MODIFICATIONS OTHERWISE NEEDED AS OF SUCH EFFECTIVE DATE.
  S 27.  Severability. If any clause, sentence, paragraph,  subdivision,
section  or part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect,  impair,  or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, subdivision, section or part thereof
directly  involved  in  the controversy in which the judgment shall have
been rendered.  It is hereby declared to be the intent of  the  legisla-
ture  that  this  act  would  have  been  enacted  even  if such invalid
provisions had not been included herein.
  S 28. This act shall take effect immediately; provided, however,  that
sections  six,  seventeen,  twenty-four,  twenty-five, and twenty-six of
this act shall take effect on the same date as the New  York  city  off-
track  betting corporation's confirmation of a plan of reorganization in
the pending bankruptcy proceeding in the Southern District of New  York;
provided  that  the  board  of  directors of the New York city off-track
betting corporation shall notify the legislative bill  drafting  commis-
sion  upon  the occurrence of such confirmation of such plan of reorgan-
ization in order that the commission may maintain an accurate and timely
effective data base of the official text of the laws of the state of New

A. 1                               17

York in furtherance of effectuating the provisions of section 44 of  the
legislative law and section 70-b of the public officers law.