S T A T E O F N E W Y O R K
________________________________________________________________________
10009
I N A S S E M B L Y
June 6, 2014
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
read once and referred to the Committee on Racing and Wagering
AN ACT to amend the tax law, in relation to video lottery gaming
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 4 of subdivision a of section 1617-a of the tax
law, as added by chapter 174 of the laws of 2013, is amended to read as
follows:
(4) at a maximum of [two] SIX facilities, ONE EACH IN THE SUFFOLK
REGION AND THE NASSAU REGION, neither to exceed one thousand video
lottery gaming devices, established within region three of zone one as
defined by section one thousand three hundred ten of the racing, pari-
mutuel wagering and breeding law, one each operated by a corporation
established pursuant to section five hundred two of the racing, pari-mu-
tuel wagering and breeding law in the Suffolk region and the Nassau
region to be located within a facility authorized pursuant to sections
one thousand eight or one thousand nine of the racing, pari-mutuel
wagering and breeding law, AND FOUR FACILITIES, TWO EACH IN SULLIVAN AND
ULSTER COUNTIES, NONE TO EXCEED FIVE HUNDRED VIDEO LOTTERY GAMING
DEVICES, EACH OPERATED BY A CORPORATION ESTABLISHED PURSUANT TO SECTION
FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW TO
BE LOCATED WITHIN A FACILITY AUTHORIZED PURSUANT TO SECTIONS ONE THOU-
SAND EIGHT OR ONE THOUSAND NINE OF THE RACING, PARI-MUTUEL WAGERING AND
BREEDING LAW. IN RESPECT TO THE SULLIVAN AND ULSTER COUNTY FACILITIES,
CATSKILL OFF-TRACK BETTING CORPORATION WILL BE THE GAMING OPERATOR AND A
LOCAL RESOLUTION IN SUPPORT OF THE FACILITY WILL BE REQUIRED. ADDI-
TIONALLY, IN RESPECT TO THE SULLIVAN AND ULSTER COUNTY FACILITIES, THE
FACILITIES MUST BE DESTINATION RESORT PROPERTIES WITH AT LEAST ONE
HUNDRED HOTEL ROOMS, HAVE SIGNIFICANT RESORT AMENITIES, BE CURRENTLY
OPEN AND OPERATING, AND HAVE BEEN IN CONTINUOUS OPERATION FOR NO LESS
THAN THE PAST THREE YEARS. The facilities authorized pursuant to this
paragraph shall be deemed vendors for all purposes under this article.
S 2. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 175 of the laws of
2013, is amended to read as follows:
(G-1) Notwithstanding [clause] CLAUSES (A) and (B) of this subpara-
graph, when a video lottery gaming facility is located in [either] the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15469-01-4
A. 10009 2
[county] COUNTIES of Nassau [or], Suffolk, SULLIVAN OR ULSTER and is
operated by a corporation established pursuant to section five hundred
two of the racing, pari-mutuel wagering and breeding law at a rate of
thirty-five percent of the total revenue wagered at the vendor after
payout for prizes pursuant to this chapter;
S 3. Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 1 of part OO of chapter 59 of the laws of 2014, 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 or a facility in the [county] COUNTIES
of Nassau [or], Suffolk, SULLIVAN OR ULSTER operated by a corporation
established pursuant to section five hundred two of the racing, pari-mu-
tuel wagering and breeding law, 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,
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. One percent of the gross purse
enhancement amount, as required by this subdivision, shall be paid to
the gaming commission to be used exclusively to promote and ensure
equine health and safety in New York. Any portion of such funding to the
gaming commission unused during a fiscal year shall be returned to the
video lottery gaming operators on a pro rata basis in accordance with
the amounts originally contributed by each operator and shall be used
for the purpose of enhancing purses at such track. One and one-half
percent of the gross purse enhancement amount at a thoroughbred track,
as required by this subdivision, shall be paid to an account established
pursuant to section two hundred twenty-one-a of the racing, pari-mutuel
wagering and breeding law to be used exclusively to provide health
insurance for jockeys. In addition, with the exception of Aqueduct race-
track or a facility in the [county] COUNTIES of Nassau [or], Suffolk,
SULLIVAN OR ULSTER operated by a corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and breed-
ing law, 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 4. The opening paragraph of subdivision f-1 of section 1612 of the
tax law, as amended by chapter 175 of the laws of 2013, is amended to
read as follows:
As consideration for operation of video lottery gaming facility
located in the [county] COUNTIES of Nassau [or], Suffolk, SULLIVAN OR
ULSTER and operated by a corporation established pursuant to section
five hundred two of the racing, pari-mutuel wagering and breeding law,
the division shall cause the investment in the racing industry of the
following percentages of the vendor fee to be deposited or paid as
follows:
S 5. This act shall take effect immediately.