S T A T E O F N E W Y O R K
________________________________________________________________________
6975
2009-2010 Regular Sessions
I N A S S E M B L Y
March 18, 2009
___________
Introduced by M. of A. NOLAN -- read once and referred to the Committee
on Mental Health, Mental Retardation and Developmental Disabilities
AN ACT to amend the mental hygiene law, the state finance law and the
racing, pari-mutuel wagering and breeding law, in relation to the
treatment of pathological gambling and establishing the pathological
gambling treatment and education fund to consist of certain revenues
derived from pari-mutuel betting
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1.03 of the mental hygiene law is amended by adding
two new subdivisions 56 and 57 to read as follows:
56. "PATHOLOGICAL GAMBLING" MEANS A CHRONIC AND PROGRESSIVE INABILITY
TO RESIST IMPULSES TO GAMBLE WHICH COMPROMISES, DISRUPTS, OR DAMAGES
FAMILY, PERSONAL AND VOCATIONAL PURSUITS.
57. "PATHOLOGICAL GAMBLER" MEANS ANY PERSON WHO IS AFFLICTED WITH THE
ILLNESS OF PATHOLOGICAL GAMBLING.
S 2. Subdivision (a) of section 19.07 of the mental hygiene law, as
amended by section 4 of part I of chapter 58 of the laws of 2005, is
amended to read as follows:
(a) The office of alcoholism and substance abuse services is charged
with the responsibility for assuring the development of comprehensive
plans, programs, and services in the areas of research, prevention,
care, treatment, rehabilitation, education, and training of persons who
abuse or are dependent on alcohol and/or substances and their families.
THE OFFICE IS ALSO CHARGED WITH THE RESPONSIBILITIES FOR, WITHIN AVAIL-
ABLE APPROPRIATIONS, DEVELOPING PLANS, PROGRAMS AND SERVICES RELATED TO
PATHOLOGICAL GAMBLING TREATMENT AND EDUCATION CONSISTENT WITH SECTION
41.56 OF THIS CHAPTER. Such plans, programs, and services shall be
developed with the cooperation of the office, the other offices of the
department where appropriate, local governments, consumers and community
organizations and entities. The office shall provide appropriate facili-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07914-01-9
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ties and shall encourage the provision of facilities by local government
and community organizations and entities. The office is also responsible
for developing plans, programs and services related to compulsive gambl-
ing education, prevention and treatment consistent with section 41.57 of
this chapter.
S 3. Subdivision (a) of section 19.15 of the mental hygiene law, as
amended by chapter 208 of the laws of 1996, is amended to read as
follows:
(a) With the advice of the advisory council on alcoholism and
substance abuse services, and with the assistance of any interdepart-
mental council or committee heretofore or hereafter established that
shall be charged with the responsibility for interdepartmental cooper-
ation and program development in alcoholism, substance abuse, and chemi-
cal dependency, the commissioner shall promote, establish, coordinate,
and conduct programs for prevention, diagnosis, treatment, aftercare,
rehabilitation, and control in the fields of alcoholism, alcohol abuse,
substance abuse, substance dependence, and chemical dependence in coop-
eration with such other federal, state, local, and private agencies as
are necessary and, within the amount made available by appropriation
therefor, implement and administer such programs. THE COMMISSIONER SHALL
ALSO DEVELOP PLANS, AND CAUSE TO BE PROMOTED, PROGRAMS AND SERVICES
RELATED TO COMPULSIVE GAMBLING EDUCATION AND TREATMENT CONSISTENT WITH
SECTION 41.57 OF THIS CHAPTER AND PATHOLOGICAL GAMBLING TREATMENT AND
EDUCATION CONSISTENT WITH SECTION 41.56 OF THIS CHAPTER. HE OR SHE SHALL
TAKE ALL ACTIONS THAT ARE NECESSARY, DESIRABLE OR PROPER TO IMPLEMENT
THE PURPOSES OF THIS CHAPTER AND TO CARRY OUT THE PURPOSES AND OBJEC-
TIVES OF THE OFFICE WITHIN THE AMOUNTS MADE AVAILABLE THEREFOR BY APPRO-
PRIATION, GRANT, GIFT, DEVISE, BEQUEST OR ALLOCATION FROM THE PROBLEM
AND COMPULSIVE GAMBLING EDUCATION, PREVENTION AND TREATMENT FUND ESTAB-
LISHED UNDER SECTION NINETY-NINE-I OF THE STATE FINANCE LAW OR THE PATH-
OLOGICAL GAMBLING TREATMENT AND EDUCATION FUND ESTABLISHED UNDER SECTION
NINETY-ONE-H OF THE STATE FINANCE LAW.
S 4. The mental hygiene law is amended by adding a new section 41.56
to read as follows:
S 41.56 PATHOLOGICAL GAMBLING TREATMENT AND EDUCATION PROGRAM.
NOTWITHSTANDING ANY INCONSISTENT PROVISIONS OF THIS ARTICLE AND WITHIN
AMOUNTS MADE AVAILABLE THEREFOR BY APPROPRIATION, OR ALLOCATION FROM THE
PATHOLOGICAL GAMBLING TREATMENT AND EDUCATION FUND ESTABLISHED PURSUANT
TO SECTION NINETY-ONE-H OF THE STATE FINANCE LAW, THE COMMISSIONER OF
ALCOHOLISM AND SUBSTANCE ABUSE SERVICES IS AUTHORIZED TO DEVELOP,
EXPAND, OPERATE OR CAUSE TO BE OPERATED PATHOLOGICAL GAMBLING TREATMENT
AND EDUCATION PROGRAMS. SUCH COMMISSIONER MAY EMPLOY ANY CONSULTANTS
DEEMED NECESSARY TO EFFECTUATE THE PURPOSE OF THIS SECTION AND ENTER
INTO CONTRACT WITH ANY NOT-FOR-PROFIT CORPORATION OR PROPRIETARY HOSPI-
TAL FOR PROVISION OF APPROPRIATE SERVICES. ON THE THIRTIETH DAY OF JANU-
ARY AFTER THE EFFECTIVE DATE OF THIS SECTION AND EACH JANUARY THIRTIETH
THEREAFTER, SUCH COMMISSIONER SHALL SUBMIT TO THE GOVERNOR AND THE
LEGISLATURE A REPORT DETAILING THE IMPLEMENTATION OF THIS SECTION AND
MAKING RECOMMENDATION FOR FUTURE DEVELOPMENT OF PATHOLOGICAL GAMBLING
TREATMENT AND EDUCATION PROGRAMS.
S 5. The state finance law is amended by adding a new section 91-h to
read as follows:
S 91-H. PATHOLOGICAL GAMBLING TREATMENT AND EDUCATION FUND. 1. THERE
IS HEREBY ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER A SPECIAL
FUND TO BE KNOWN AS THE "PATHOLOGICAL GAMBLING TREATMENT AND EDUCATION
FUND".
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2. SUCH FUND SHALL CONSIST OF UNCLAIMED LOTTERY PRIZES DEPOSITED
PURSUANT TO PARAGRAPH (VI) OF SUBDIVISION THREE OF SECTION NINETY-TWO-C
OF THIS ARTICLE, AND UNPAID MONEY DUE ON ACCOUNT OF PARI-MUTUEL TICKETS
NOT PRESENTED, DEPOSITED PURSUANT TO SECTIONS TWO HUNDRED THIRTY-TWO,
THREE HUNDRED TWENTY-EIGHT, FOUR HUNDRED TWENTY-SIX AND FIVE HUNDRED
TWENTY-NINE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
3. MONEYS OF THE FUND, INCLUDING INVESTMENT EARNINGS, FOLLOWING APPRO-
PRIATION BY THE LEGISLATURE, SHALL BE AVAILABLE ONLY FOR THE DEVELOP-
MENT, EXPANSION AND OPERATION OF PATHOLOGICAL GAMBLING TREATMENT AND
EDUCATION PROGRAMS CONDUCTED IN ACCORDANCE WITH SECTION 41.56 OF THE
MENTAL HYGIENE LAW. MONEYS FOR SUCH PURPOSES SHALL BE USED TO THE EXTENT
THAT THEY ARE AVAILABLE WITHIN THE FUND.
4. ANY MONEYS IN SUCH FUND MAY BE INVESTED IN OBLIGATIONS OF THE
UNITED STATES OR OF THIS STATE, OR IN OBLIGATIONS THE PRINCIPAL AND
INTEREST ON WHICH ARE GUARANTEED BY THE UNITED STATES OR THIS STATE OR
AS AUTHORIZED BY SECTION NINETY-EIGHT OF THIS ARTICLE. PROCEEDS OF SUCH
INVESTMENTS SHALL BE CREDITED TO THE FUND BY THE COMPTROLLER.
S 6. Subdivision 3 of section 92-c of the state finance law, as
amended by chapter 913 of the laws of 1977, is amended to read as
follows:
3. The moneys in such fund shall be appropriated or transferred only
(i) for repayment of first instance expenditures incurred in the opera-
tion of the state lottery, (ii) for the state fiscal year commencing
April first, nineteen hundred seventy-six only for the purpose of
providing aid to pupils with special educational needs as defined in
paragraph e of subdivision one of section thirty-six hundred two of the
education law, and pupils with handicapping conditions receiving state
financial support for programs delineated in paragraph f of subdivision
one of section thirty-six hundred two, article eighty-three, article
eighty-five, article eighty-seven, article eighty-eight, article eight-
y-nine, AND article forty [and subdivision seventeen of section thirty-
six hundred two of the education law], and for any state fiscal year
commencing after such nineteen hundred seventy-six fiscal year for the
purpose of providing aid to all school children pursuant to the
provisions of subdivision four of this section, (iii) for elementary and
secondary education, (iv) for expenditures for machines or other capital
equipment which the division of the lottery is authorized to purchase
for the operation of the lottery [and], (v) for payment in the state
fiscal years commencing April first, nineteen hundred seventy-seven,
nineteen hundred seventy-eight and nineteen hundred seventy-nine into
the winter sports education trust fund, as created in section four
hundred ninety-five-a of article ten-C of the education law, for the
purposes of such fund in accordance with the provisions of subdivision
five of this section, AND (VI) TO THE PATHOLOGICAL GAMBLING TREATMENT
AND EDUCATION FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-H OF THIS
ARTICLE FOR THE DEVELOPMENT, EXPANSION AND OPERATION OF COMPULSIVE
GAMBLING TREATMENT AND EDUCATION PROGRAMS CONDUCTED IN ACCORDANCE WITH
ARTICLE FORTY-ONE OF THE MENTAL HYGIENE LAW. Payments into such trust
fund shall discontinue at such time as the sum of one hundred million
dollars, in the aggregate, has been paid into such fund or upon March
thirty-first, nineteen hundred eighty, whichever event occurs first.
Nothing herein shall prohibit the purchase of machines or other capital
equipment from funds appropriated for expenditures under paragraph (i)
hereof.
S 7. Section 92-c of the state finance law is amended by adding a new
subdivision 9 to read as follows:
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9. MONEYS APPROPRIATED TO THE PATHOLOGICAL GAMBLING TREATMENT AND
EDUCATION FUND PURSUANT TO PARAGRAPH (VI) OF SUBDIVISION THREE OF THIS
SECTION SHALL BE IN AN AMOUNT EQUAL TO TWENTY PERCENT OF UNCLAIMED
PRIZES AND SHALL BE DEPOSITED IN SUCH FUND BY MARCH FIFTEENTH.
S 8. Section 241 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
S 241. Disposition of unpaid money due on account of pari-mutuel tick-
ets not presented. The sum held by any corporation authorized to conduct
pari-mutuel betting for payment of outstanding winning pari-mutuel tick-
ets and for refunding the price of pari-mutuel tickets shall be retained
by such corporation for such purposes until April first of the succeed-
ing year; provided, however, that ninety-five per centum of such sum
remaining unclaimed as of the last day of February of such year shall be
paid to the department of taxation and finance by March fifteenth. On
April tenth, the balance of such sum remaining unclaimed and any other
unclaimed amount received in the course of conducting pari-mutuel
betting shall be paid to the department of taxation and finance. A
penalty of five per centum and interest at the rate of one per centum
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, inter-
est and penalties when collected, MINUS TWENTY PER CENTUM, shall be paid
by the department of taxation and finance into the general fund of the
state treasury. TWENTY PER CENTUM OF SUCH AMOUNTS SHALL BE PAID BY THE
COMMISSIONER OF TAXATION AND FINANCE INTO THE PATHOLOGICAL GAMBLING
TREATMENT AND EDUCATION FUND ESTABLISHED PURSUANT TO SECTION
NINETY-ONE-H OF THE STATE FINANCE LAW.
S 9. Section 328 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
S 328. Disposition of unpaid money due on account of pari-mutuel tick-
ets not presented. The sum held by any corporation or association
authorized to conduct pari-mutuel betting for payment of outstanding
winning pari-mutuel tickets and for refunding the price of pari-mutuel
tickets shall be retained by such corporation or association for such
purposes until April first of the succeeding year; provided, however,
that ninety-five per centum of such sum remaining unclaimed as of the
last day of February of such year shall be paid to the [state tax
commission] COMMISSIONER OF TAXATION AND FINANCE by March fifteenth. On
April tenth, the balance of such sum remaining unclaimed and any other
unclaimed amount received in the course of conducting pari-mutuel
betting shall be paid to the [state tax commission] COMMISSIONER OF
TAXATION AND FINANCE. A penalty of five per centum and interest at the
rate of one per centum 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, LESS TWENTY
PER CENTUM, shall be paid by the [state tax commission] COMMISSIONER OF
TAXATION AND FINANCE into the general fund of the state treasury. TWENTY
PER CENTUM OF SUCH AMOUNTS SHALL BE PAID BY THE COMMISSIONER OF TAXATION
AND FINANCE INTO THE PATHOLOGICAL GAMBLING TREATMENT AND EDUCATION FUND
ESTABLISHED PURSUANT TO SECTION NINETY-ONE-H OF THE STATE FINANCE LAW.
S 10. Section 426 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
S 426. Disposition of unpaid money due on account of pari-mutuel
tickets not presented. The sum held by any corporation or association
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authorized to conduct pari-mutuel betting for payment of outstanding
winning pari-mutuel tickets and for refunding the price of pari-mutuel
tickets shall be retained by such corporation or association for such
purposes until April first of the succeeding year; provided, however,
that ninety-five per centum of such sum remaining unclaimed as of the
last day of February of such year shall be paid to the [state tax
commission] COMMISSIONER OF TAXATION AND FINANCE by March fifteenth. On
April tenth, the balance of such sum remaining unclaimed and any other
unclaimed amount received in the course of conducting pari-mutuel
betting shall be paid to the [state tax commission] COMMISSIONER OF
TAXATION AND FINANCE. A penalty of five per centum and interest at the
rate of one per centum 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 the case such balance is not paid
when due. Such amounts, interest and penalties when collected, MINUS
TWENTY PER CENTUM, shall be paid by the [state tax commission] COMMIS-
SIONER OF TAXATION AND FINANCE into the general fund of the state treas-
ury. TWENTY PER CENTUM OF SUCH AMOUNT SHALL BE PAID BY THE COMMISSIONER
OF TAXATION AND FINANCE INTO THE PATHOLOGICAL GAMBLING TREATMENT AND
EDUCATION FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-H OF THE STATE
FINANCE LAW.
S 11. Section 529 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
S 529. Unclaimed winnings and refunds. The board shall require each
regional corporation to establish a non-escrowed account for payment of
outstanding winning tickets and for payment of refunds to ticket holders
entitled thereto under the rules of the board.
1. All tickets must be presented for payment to the regional corpo-
ration from which purchased prior to April first of the year following
the year of purchase.
2. Ninety-five percent of the balance of such account remaining
unclaimed as of the last day of February of such year shall be paid to
the [state tax commission] COMMISSIONER OF TAXATION AND FINANCE by March
fifteenth. On or before April tenth of each year the balance of such
account and any other unclaimed amounts received in the course of
conducting off-track betting shall be paid by such corporation to the
[state tax commission] COMMISSIONER OF TAXATION AND FINANCE. 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] COMMISSIONER OF TAXATION
AND FINANCE, MINUS TWENTY PERCENT, shall be deposited into the general
fund of the state treasury. TWENTY PERCENT OF SUCH AMOUNT SHALL BE
DEPOSITED BY THE COMMISSIONER OF TAXATION AND FINANCE INTO THE PATHOLOG-
ICAL GAMBLING TREATMENT AND EDUCATION FUND ESTABLISHED PURSUANT TO
SECTION NINETY-ONE-H OF THE STATE FINANCE LAW.
S 12. This act shall take effect one year after it shall have become a
law.