senate Bill S3591

2011-2012 Legislative Session

Authorizing licensing of bowling establishments to offer video gaming if structure allows for segregated areas from patrons under 21 years of age

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to racing, gaming and wagering
Feb 28, 2011 referred to racing, gaming and wagering

S3591 - Bill Details

See Assembly Version of this Bill:
A3567
Current Committee:
Senate Racing, Gaming And Wagering
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1612 & 1617-a, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S3282, A6918

S3591 - Bill Texts

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Authorizes licensing of bowling establishments to offer video gaming if structure allows for segregated areas from patrons under 21 years of age; entitles the operators of bowling establishments to vendor fees where video lottery terminals are located.

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BILL NUMBER:S3591

TITLE OF BILL:
An act
to amend the tax law, in relation to video lottery gaming at commercial
bowling establishments

PURPOSE:
This bill will allow the installation of video lottery
terminals in bowling establishments. The installation will be limited
to an area where persons under the age of 21 are prohibited from
entering.

SUMMARY OF PROVISIONS:
Section 1 amends subdivision b of section 1612
of the tax law to entitle operators of a bowling establishment to
vendor fees where Video Lottery terminals are located. Section 2
amends section 1617-a of the tax law by adding a new subdivision a-1
which will authorize the operation of video gaming at commercial
bowling establishments.

JUSTIFICATION:
While bowling is still a relatively popular recreation
activity in this country, the proprietor's of New York's bowling
establishments face a business crisis. With the high cost of
insurance, the escalating prices of utilities, and severe weather
conditions, the expenses for a proprietor to operate a facility have
skyrocketed. In addition, the recent implementation of the statewide
smoking ban has added to the crisis. The enrollment in the bowling
leagues has dwindled, which is a direct cause of the smoking ban.
Video lottery vendor fees would help the operator make ends meet
without having to raise the cost of bowling to the consumer.
Enactment of this legislation would not only expand revenues for
education across New York State, it is also necessary to create an
additional revenue source, given the states current fiscal crisis,
for the state and its localities

LEGISLATIVE HISTORY:
2010: A.6918/S.3282 - Held in Investigations & Government Operations

FISCAL IMPLICATION:
Enactment of this legislation would create an
additional revenue source for the state to help ease the states
financial burdens the state is suffering.

EFFECTIVE DATE:
Immediately.

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

                                  3591

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 28, 2011
                               ___________

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

AN  ACT  to  amend  the  tax law, in relation to video lottery gaming at
  commercial bowling establishments

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

  Section  1.    Subparagraph  (iii)  of paragraph 1 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:
  (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; provided,
however, a vendor track that receives a vendor fee  pursuant  to  clause
(G)  of  subparagraph (ii) of this paragraph shall not receive the addi-
tional vendor's marketing allowance.  A COMMERCIAL BOWLING ESTABLISHMENT
THAT IS AUTHORIZED BY SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS  ARTI-
CLE  SHALL BE ENTITLED TO A VENDOR FEE OF NOT LESS THAN 20.25 PERCENT IN
THE FIRST, SECOND AND THIRD  YEARS  OF  VIDEO  LOTTERY  GAMING  AT  SUCH
COMMERCIAL  BOWLING  ESTABLISHMENT, 20.0 PERCENT IN THE FOURTH AND FIFTH
YEARS AND 17.5 PERCENT IN ALL  SUBSEQUENT  YEARS.  In  establishing  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05813-01-1

S. 3591                             2

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 2. Section 1617-a of the tax law is amended by adding a new subdivi-
sion a-1 to read as follows:
  A-1.  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 COMMERCIAL BOWLING
ESTABLISHMENTS THAT ARE DULY LICENSED TO SERVE ALCOHOLIC BEVERAGES, HAVE
SEGREGATED  AREAS THAT PROHIBIT ACCESS TO PERSONS UNDER TWENTY-ONE YEARS
OF AGE, AND THAT ARE LOCATED IN A COUNTY  OR  COUNTIES  IN  WHICH  VIDEO
LOTTERY GAMING HAS BEEN AUTHORIZED PURSUANT TO LOCAL LAW. SUCH RULES AND
REGULATIONS  SHALL PROVIDE, AS A CONDITION OF LICENSURE, THAT SUCH BOWL-
ING ESTABLISHMENTS 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 LOTTERY GAMING OPERATIONS AND TO ENSURE THAT
PERSONS UNDER TWENTY-ONE YEARS OF AGE ARE PROHIBITED  ACCESS  FROM  SUCH
AREAS,  THAT 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 COMMERCIAL BOWLING ESTABLISHMENT PURSUANT TO THIS
SECTION SHALL BE DEEMED AN APPROVED ACTIVITY FOR SUCH BOWLING ESTABLISH-
MENT UNDER THE RELEVANT CITY, COUNTY,  TOWN,  OR  VILLAGE  LAND  USE  OR
ZONING ORDINANCES, RULES, OR REGULATIONS. NO BOWLING ESTABLISHMENT OPER-
ATING  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 3. This act shall take effect immediately.

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