S T A T E   O F   N E W   Y O R K
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                                  4151

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 1, 2013
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Racing and Wagering

AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
  relation to account wagering on simulcast horse races

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

  Section 1. Section 1001 of the racing, pari-mutuel wagering and breed-
ing law, as added by chapter 363 of the laws of 1984, subdivisions n,  o
and p as added by chapter 445 of the laws of 1997, is amended to read as
follows:
  S  1001.  Definitions.  As  used  in this article, the following terms
shall have the following meanings:
  a. "Simulcast" means the telecast of live audio and visual signals  of
running, harness or quarter horse races [conducted in the state] for the
purposes of pari-mutuel wagering;
  b.  "Track"  means  the grounds or enclosures within which horse races
are conducted by any person, association or corporation lawfully author-
ized to conduct such races in accordance with the terms  and  conditions
of this chapter OR THE LAWS OF ANOTHER JURISDICTION;
  c. "Sending track" means any track from which simulcasts originate;
  d.  "Receiving track" means any track where simulcasts originated from
another track are displayed;
  e. "Applicant" means any association or  corporation  applying  for  a
simulcast license in accordance with the provisions of this article;
  f.  "Operator" means any association or corporation operating a simul-
cast facility in accordance with the provisions of this article;
  g. "Regional track or tracks" means any or all tracks located within a
region defined as an off-track  betting  region,  except  that  for  the
purposes of section one thousand eight of this article any track located
in  New York city, or Nassau, Suffolk and Westchester counties, shall be

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07743-01-3

              

A. 4151                             2

deemed a regional track for all regions  located  in  district  one,  as
defined in this section;
  h. "[The board]COMMISSION" means the state [racing and wagering board]
GAMING COMMISSION;
  i.  "Branch  office" means an establishment maintained and operated by
an off-track betting corporation, where off-track pari-mutuel betting on
horse races may be placed in accordance with the terms and conditions of
this chapter and rules and regulations issued pursuant thereto;
  j. "Simulcast facility" means those facilities within the  state  that
are  authorized  pursuant  to  the provisions of this article to display
simulcasts for pari-mutuel wagering purposes;
  k. "Off-track betting  region"  means  those  regions  as  defined  in
section five hundred nineteen of this chapter;
  l.  "Simulcast  theater"  means  a  simulcast facility which is also a
public entertainment and wagering facility, and which may include any or
all of the following: a large screen television projection  and  display
unit,  a  display  system  for odds, pools, and payout prices, areas for
viewing and seating, a food and beverage facility, and any other conven-
ience currently provided at racetracks and not inconsistent  with  local
zoning ordinances;
  m.  "Simulcast  districts"  means  one  or more of the following named
districts comprised of the  counties  within  which  pari-mutuel  racing
events are conducted as follows:
    District 1                    New York City, Suffolk, Nassau, and
                                    Westchester counties
    District 2                    Sullivan county
    District 3                    Saratoga county
    District 4                    Oneida county
    District 5                    Erie, Genesee and Ontario counties
  n.  "Initial out-of-state thoroughbred track" means the track commenc-
ing full-card simulcasting to New York prior to any  other  out-of-state
thoroughbred track after 1:00 PM on any calendar day.
  o. "Second out-of-state thoroughbred track" means the track (or subse-
quent  track  or  tracks  where  otherwise  authorized  by this article)
conducting full-card simulcasting to New York  after  the  race  program
from  the  initial  out-of-state  thoroughbred  track that has commenced
simulcasting on any calendar day.
  p. "Mixed meeting" means a race meeting which  has  a  combination  of
thoroughbred,  quarter horse, Appaloosa, paint, and/or Arabian racing on
the same race program.
  Q. "ACCOUNT WAGERING" MEANS A FORM OF PARI-MUTUEL WAGERING IN WHICH  A
PERSON  ESTABLISHES  AN  ACCOUNT  WITH  AN ACCOUNT WAGERING LICENSEE AND
SUBSEQUENTLY COMMUNICATES VIA TELEPHONE OR OTHER ELECTRONIC MEDIA TO THE
ACCOUNT WAGERING LICENSEE WAGERING INSTRUCTIONS CONCERNING THE FUNDS  IN
SUCH  PERSON'S  ACCOUNT  AND  WAGERS TO BE PLACED ON THE ACCOUNT OWNER'S
BEHALF.
  R. "ACCOUNT WAGERING LICENSEE" MEANS  RACING  ASSOCIATIONS,  OFF-TRACK
BETTING   CORPORATIONS,  AND  COMMISSION  APPROVED  MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDERS THAT HAVE BEEN AUTHORIZED BY  THE  COMMISSION
TO OFFER ACCOUNT WAGERING.
  S.  "DORMANT  ACCOUNT"  MEANS  AN  ACCOUNT WAGERING ACCOUNT HELD BY AN
ACCOUNT WAGERING LICENSEE IN WHICH THERE HAS BEEN NO  WAGERING  ACTIVITY
FOR THREE YEARS.
  T.  "MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER" MEANS A BUSINESS
ENTITY LOCATED IN A STATE OTHER THAN THE STATE OF  NEW  YORK,  WHICH  IS
LICENSED  BY  SUCH  OTHER STATE TO OFFER PARI-MUTUEL ACCOUNT WAGERING ON

A. 4151                             3

RACES SUCH PROVIDER SIMULCASTS AND OTHER RACES IT OFFERS IN ITS WAGERING
MENU TO PERSONS LOCATED IN OR OUT OF THE STATE ISSUING SUCH LICENSE.
  S  2.  Section  1002  of the racing, pari-mutuel wagering and breeding
law, as added by chapter 363 of the  laws  of  1984,  subdivision  2  as
amended  by  chapter  18  of  the  laws  of  2008, is amended to read as
follows:
  S 1002. General jurisdiction. 1. The [state racing and wagering board]
COMMISSION shall have general  jurisdiction  over  the  simulcasting  of
horse  races  AND  ACCOUNT  WAGERING  within  the state, and the [board]
COMMISSION may issue  rules  and  regulations  in  accordance  with  the
provisions of this article.
  2.  The  [board] COMMISSION shall annually submit reports on or before
July first following each year in which simulcasting OR ACCOUNT WAGERING
is conducted to the director of the budget, the chairman of  the  senate
finance  committee  and  the  chairman  of  the  assembly ways and means
committee evaluating the results of such simulcasts OR ACCOUNT  WAGERING
on  the  compatibility with the well-being of the horse racing, breeding
and pari-mutuel wagering industries in this state and make any recommen-
dations it deems appropriate. Such reports  may  be  submitted  together
with  the  reports  required  by  subdivision two of section two hundred
thirty-six and subparagraph (iii) of paragraph a and subparagraph (i) of
paragraph b of subdivision one of section three hundred eighteen of this
chapter.
  S 3. Section 1003 of the racing,  pari-mutuel  wagering  and  breeding
law, as added by chapter 363 of the laws of 1984, subdivision 1 as sepa-
rately  amended  by chapters 2 and 70 of the laws of 1995, paragraph (a)
of subdivision 1 as amended by section 1 of part O of chapter 59 of  the
laws  of  2012, the opening paragraph of paragraph a of subdivision 2 as
amended by chapter 538 of the laws of 1999 and subdivision 5 as  amended
by chapter 287 of the laws of 1985, is amended to read as follows:
  S 1003. Licenses for simulcast facilities. 1. [(a)] Any racing associ-
ation  or corporation or regional off-track betting corporation, author-
ized to conduct pari-mutuel wagering under  this  chapter,  desiring  to
display  the simulcast of horse races on which pari-mutuel betting shall
be permitted in the manner and subject to the conditions provided for in
this article may apply to the [board] COMMISSION for a license so to do.
Applications for licenses shall be in such form as may be prescribed  by
the [board] COMMISSION and shall contain such information or other mate-
rial or evidence as the [board] COMMISSION may require. No license shall
be  issued  by  the  [board] COMMISSION authorizing the simulcast trans-
mission of thoroughbred races from a track located  in  Suffolk  county.
The  fee  for  such licenses shall be five hundred dollars per simulcast
facility per year payable by the licensee to the [board] COMMISSION  for
deposit  into  the  general  fund. [Except as provided herein, the board
shall not approve any application to conduct simulcasting into  individ-
ual  or group residences, homes or other areas for the purposes of or in
connection with pari-mutuel wagering. The board may approve simulcasting
into residences, homes or other areas to be conducted jointly by one  or
more  regional  off-track  betting  corporations  and one or more of the
following: a franchised corporation, thoroughbred racing corporation  or
a harness racing corporation or association; provided (i) the simulcast-
ing consists only of those races on which pari-mutuel betting is author-
ized by this chapter at one or more simulcast facilities for each of the
contracting  off-track  betting  corporations which shall include wagers
made in accordance with  section  one  thousand  fifteen,  one  thousand
sixteen  and  one  thousand  seventeen of this article; provided further

A. 4151                             4

that the contract provisions or other simulcast  arrangements  for  such
simulcast  facility  shall  be no less favorable than those in effect on
January first, two thousand  five;  (ii)  that  each  off-track  betting
corporation  having  within  its  geographic boundaries such residences,
homes or other areas technically  capable  of  receiving  the  simulcast
signal  shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of  the  parties  except  that
statutory  payments  to  non-contracting  parties,  if  any,  may not be
reduced; provided, however, that nothing herein to  the  contrary  shall
prevent a track from televising its races on an irregular basis primari-
ly  for  promotional  or  marketing  purposes as found by the board. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall  not  apply.  Any  agreement  authorizing  an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth,  two  thousand thirteen; provided, however, that any party to
such agreement may elect to  terminate  such  agreement  upon  conveying
written  notice  to  all other parties of such agreement at least forty-
five days prior to the effective date of the termination, via registered
mail. Any party to an agreement receiving such notice of  an  intent  to
terminate,  may  request  the  board  to mediate between the parties new
terms and conditions in a replacement agreement between the  parties  as
will  permit continuation of an in-home experiment until June thirtieth,
two thousand thirteen; and (iv) no in-home simulcasting in the thorough-
bred special betting district shall occur without the  approval  of  the
regional thoroughbred track.
  (b)  Any  agreement  authorizing in-home simulcasting pursuant to this
section shall be in writing, and upon written request, a copy  shall  be
provided  to  the  representative horsemen's group of the racing associ-
ation or corporation that is party to  said  agreement.  Such  agreement
shall  include  a  categorical statement of new and incremental expenses
directly related and attributable to the conduct of  in-home  simulcast-
ing.  The  representative  horsemen's  group  may, within thirty days of
receiving the agreement, petition the board for a  determination  as  to
the  appropriateness  and  reasonableness  of any expenses attributed by
either the racing association or corporation or  the  off-track  betting
corporation.]
  2.  Before  it  may  grant  such license, the [board] COMMISSION shall
review and approve a plan  of  operation  submitted  by  such  applicant
including, but not limited to the following information:
  a. A feasibility study denoting the revenue earnings expected from the
simulcast  facility  and the costs expected to operate such facility. No
feasibility study shall be received for a  simulcast  facility  that  is
applying  to renew its license.  The form of the feasibility study shall
be prescribed by the [board] COMMISSION and may include:
  (i) the number of simulcast races to be displayed;
  (ii) the types of wagering to be offered;
  (iii) the level of attendance expected and the area  from  which  such
attendance will be drawn;
  (iv) the level of anticipated wagering activity;
  (v)  the  source and amount of revenues expected from other than pari-
mutuel wagering;
  (vi) the cost of operating the simulcast facility and the  identifica-
tion  of  costs  to  be amortized and the method of amortization of such
costs;

A. 4151                             5

  (vii) the amount and source  of  revenues  needed  for  financing  the
simulcast facility;
  (viii)  the  probable  impact of the proposed operation on revenues to
local government;
  b. The security measures to be employed to protect  the  facility,  to
control  crowds,  to safeguard the transmission of the simulcast signals
and to control the transmission of wagering data  to  effectuate  common
wagering pools;
  c.  The type of data processing, communication and transmission equip-
ment to be utilized;
  d. The description of the management groups responsible for the opera-
tion of the simulcast facility;
  e. The system of accounts to maintain a separate  record  of  revenues
collected  by  the simulcast facility, the distribution of such revenues
and the accounting of costs relative to the simulcast operation;
  f. The location of the facility and a written confirmation from appro-
priate local officials that the location of such facility and the number
of patrons expected to occupy such facility are in compliance  with  all
applicable local ordinances;
  g.  The  written  agreements  and letters of consent between specified
parties pursuant to sections one thousand seven, one thousand eight  and
one thousand nine of this article.
  3. Within forty-five days of receipt of the plan of operation provided
in  subdivision  two of this section, the [board] COMMISSION shall issue
an order approving the plan, approving it with modifications or  denying
approval,  in  which  latter case the [board] COMMISSION shall state its
reasons therefor. Within such period the [board] COMMISSION may  request
additional  information or suggest amendments. If the [board] COMMISSION
fails to approve the plan, the applicant may request a public hearing to
be held within thirty days of the issuance of an order denying  it.  The
[board]  COMMISSION  shall issue its final determination within ten days
of such hearing. The applicant may  submit  an  amended  application  no
sooner than thirty days after a denial.
  4.  No racing association or corporation or regional off-track betting
corporation shall be allowed to  operate  a  simulcast  facility  except
according  to the provisions of an approved plan of operation. No change
in such plan of operation may  occur  until  an  amendment  proposing  a
change  to  the  plan  is  approved by the [board] COMMISSION. A plan of
operation may be amended from time to time at the request of either  the
operator or the [board] COMMISSION. The operator shall have the right to
be heard concerning any amendment to the plan and the [board] COMMISSION
shall  dispose of such proposed amendments as expeditiously as practica-
ble, but no later than thirty days following submission by the  operator
or,  in  the  case of amendments proposed by the board, objection by the
operator.
  5. For the purpose  of  maintaining  proper  control  over  simulcasts
conducted  pursuant  to  this  article,  the  [state racing and wagering
board] COMMISSION shall license any person, association  or  corporation
participating  in  simulcasting,  as  the [board] COMMISSION may by rule
prescribe, including, if the [board] COMMISSION deem it necessary so  to
do,  any  or  all  persons,  associations  or  corporations  who create,
distribute, transmit or  display  simulcast  signals.  In  the  case  of
thoroughbred  racing  simulcasting  or harness racing simulcasting, such
licenses  shall  be  issued  in  accordance  with  and  subject  to  the
provisions  governing licenses for participants and employees in article

A. 4151                             6

two or article three of this chapter as may be applicable to  such  type
of racing.
  6.  NOTHING  IN THIS CHAPTER SHALL BE CONSTRUED TO PROHIBIT ANY RACING
ASSOCIATION FROM TELEVISING HORSE RACES INTO INDIVIDUAL OR  GROUP  RESI-
DENCES,  HOMES OR OTHER AREAS IN THE STATE, OR TO PROHIBIT ANY OFF-TRACK
BETTING CORPORATION OR ACCOUNT WAGERING LICENSEE  FROM  TELEVISING  INTO
INDIVIDUAL  OR  GROUP RESIDENCES, HOMES OR OTHER AREAS IN THE STATE SUCH
HORSE RACES FOR WHICH  THE  OFF-TRACK  BETTING  CORPORATION  OR  ACCOUNT
WAGERING LICENSEE HAS RECEIVED WRITTEN CONSENT FROM THE HOST TRACK.
  S  4.  Section  1012  of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008,  subdivision  4-b  as
added by chapter 402 of the laws of 2011 and subdivision 5 as amended by
section  10  of  part O of chapter 59 of the laws of 2012, is amended to
read as follows:
  S 1012. [Telephone accounts  and  telephone]  ACCOUNT  wagering.  [Any
regional  off-track betting corporation, and any franchised corporation,
harness, thoroughbred, quarter horse racing association  or  corporation
licensed  to  conduct  pari-mutuel racing may maintain telephone betting
accounts for wagers placed on races and special events offered  by  such
corporation  or  association.]  RACING  ASSOCIATIONS,  OFF-TRACK BETTING
CORPORATIONS AND MULTI-JURISDICTIONAL  ACCOUNT  WAGERING  PROVIDERS  MAY
APPLY TO THE COMMISSION TO BE LICENSED TO OFFER ACCOUNT WAGERING.
  1.   A.   RACING  ASSOCIATIONS,  OFF-TRACK  BETTING  CORPORATIONS  AND
MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS MAY  FORM  PARTNERSHIPS,
JOINT  VENTURES,  OR ANY OTHER AFFILIATION OR CONTRACTUAL ARRANGEMENT IN
ORDER TO FURTHER THE PURPOSES OF THIS SECTION.
  B. THE DISTRIBUTION OF REVENUES  TO  PURSES  MADE  BY  ANY  NON-PROFIT
RACING ASSOCIATION, OR HARNESS, THOROUGHBRED, QUARTER HORSE RACING ASSO-
CIATION  OR  CORPORATION  FROM  ACCOUNT  WAGERS PLACED ON RACES RUN AT A
GUEST FACILITY SHALL BE  DETERMINED  PURSUANT  TO  A  WRITTEN  AGREEMENT
BETWEEN  SUCH ASSOCIATION AND ITS REPRESENTATIVE HORSEMEN'S ORGANIZATION
AS APPROVED BY THE COMMISSION.
  2. THE COMMISSION SHALL PROMULGATE RULES AND  REGULATIONS  TO  LICENSE
AND REGULATE ALL PHASES OF ACCOUNT WAGERING.
  3. THE COMMISSION SHALL SPECIFY A NON-REFUNDABLE APPLICATION FEE WHICH
SHALL  BE  PAID  BY  EACH  APPLICANT  FOR AN ACCOUNT WAGERING LICENSE OR
RENEWAL THEREOF.
  4. ACCOUNT WAGERING LICENSEES SHALL  UTILIZE  PERSONAL  IDENTIFICATION
NUMBERS  AND  SUCH  OTHER  TECHNOLOGIES AS THE COMMISSION MAY SPECIFY TO
ASSURE THAT ONLY THE ACCOUNT HOLDER HAS ACCESS TO  THE  ADVANCE  DEPOSIT
WAGERING ACCOUNT.
  5.  ACCOUNT  WAGERING LICENSEES SHALL PROVIDE FOR: A. WITHDRAWALS FROM
THE WAGERING ACCOUNT ONLY BY MEANS  OF  A  CHECK  MADE  PAYABLE  TO  THE
ACCOUNT HOLDER AND SENT TO THE ADDRESS OF THE ACCOUNT HOLDER OR BY MEANS
OF  AN  ELECTRONIC  TRANSFER  TO AN ACCOUNT HELD BY THE VERIFIED ACCOUNT
HOLDER OR B. THAT THE ACCOUNT HOLDER MAY WITHDRAW FUNDS FROM THE  WAGER-
ING ACCOUNT AT A FACILITY APPROVED BY THE COMMISSION BY PRESENTING VERI-
FIABLE PERSONAL AND ACCOUNT IDENTIFICATION INFORMATION.
  6. ACCOUNT WAGERING LICENSEES MAY ENGAGE IN INTERSTATE WAGERING TRANS-
ACTIONS ONLY WHERE THERE IS COMPLIANCE WITH CHAPTER FIFTY-SEVEN OF TITLE
FIFTEEN  OF  THE UNITED STATES CODE, COMMONLY REFERRED TO AS THE "INTER-
STATE HORSE RACING ACT".
  7. THE ACCOUNT HOLDER'S DEPOSITS TO  THE  WAGERING  ACCOUNT  SHALL  BE
SUBMITTED  BY  THE  ACCOUNT  HOLDER TO THE ACCOUNT WAGERING LICENSEE AND
SHALL BE IN THE FORM OF ONE OF THE  FOLLOWING:  A.  CASH  GIVEN  TO  THE
ACCOUNT  WAGERING  LICENSEE;  B. CHECK, MONEY ORDER, NEGOTIABLE ORDER OF

A. 4151                             7

WITHDRAWAL, OR WIRE OR ELECTRONIC TRANSFER, PAYABLE AND REMITTED TO  THE
ACCOUNT  WAGERING  LICENSEE;  OR  C. CHARGES MADE TO AN ACCOUNT HOLDER'S
DEBIT OR CREDIT CARD UPON  THE  ACCOUNT  HOLDER'S  DIRECT  AND  PERSONAL
INSTRUCTION,  WHICH  INSTRUCTION MAY BE GIVEN BY TELEPHONE COMMUNICATION
OR OTHER ELECTRONIC MEANS TO THE ACCOUNT WAGERING LICENSEE OR ITS  AGENT
BY  THE  ACCOUNT  HOLDER IF THE USE OF THE CARD HAS BEEN APPROVED BY THE
ACCOUNT WAGERING LICENSEE.
  8. A. EACH WAGER SHALL BE IN THE NAME OF A NATURAL  PERSON  AND  SHALL
NOT  BE  IN  THE NAME OF ANY BENEFICIARY, CUSTODIAN, JOINT TRUST, CORPO-
RATION, PARTNERSHIP OR OTHER ORGANIZATION OR ENTITY.
  B. A WAGERING ACCOUNT MAY BE ESTABLISHED BY  A  PERSON  COMPLETING  AN
APPLICATION  FORM  APPROVED BY THE COMMISSION AND SUBMITTING IT TOGETHER
WITH A CERTIFICATION, OR OTHER PROOF, OF AGE AND  RESIDENCY.  SUCH  FORM
SHALL  INCLUDE THE ADDRESS OF THE PRINCIPAL RESIDENCE OF THE PROSPECTIVE
ACCOUNT HOLDER AND A STATEMENT THAT A FALSE STATEMENT MADE IN REGARD  TO
AN APPLICATION MAY SUBJECT THE APPLICANT TO PROSECUTION.
  C.  THE PROSPECTIVE ACCOUNT HOLDER SHALL SUBMIT THE COMPLETED APPLICA-
TION TO THE ACCOUNT WAGERING LICENSEE. THE ACCOUNT WAGERING LICENSEE MAY
ACCEPT OR REJECT AN APPLICATION AFTER RECEIPT AND REVIEW OF THE APPLICA-
TION AND CERTIFICATION, OR OTHER PROOF, OF AGE AND RESIDENCY FOR COMPLI-
ANCE WITH THIS SECTION.
  D. NO PERSON OTHER THAN THE PERSON IN WHOSE NAME AN ACCOUNT  HAS  BEEN
ESTABLISHED  MAY ISSUE WAGERING INSTRUCTIONS RELATING TO THAT ACCOUNT OR
OTHERWISE ENGAGE IN WAGERING TRANSACTIONS RELATING TO THAT ACCOUNT.
  9. A WAGERING ACCOUNT SHALL NOT BE ASSIGNABLE OR OTHERWISE  TRANSFERA-
BLE.
  10.  EXCEPT  AS  OTHERWISE  PROVIDED IN THIS ARTICLE OR IN REGULATIONS
WHICH THE COMMISSION MAY ADOPT  PURSUANT  THERETO,  ALL  ACCOUNT  WAGERS
SHALL  BE  FINAL AND NO WAGER SHALL BE CANCELED BY THE ACCOUNT HOLDER AT
ANY TIME AFTER THE WAGER HAS  BEEN  ACCEPTED  BY  THE  ACCOUNT  WAGERING
LICENSEE.
  11.  DORMANT  ACCOUNTS SHALL BE TREATED AS ABANDONED PROPERTY PURSUANT
TO SECTION THREE HUNDRED OF THE ABANDONED PROPERTY LAW.
  [1.] 12. Any [regional off-track betting  corporation  and  any  fran-
chised  corporation, harness, thoroughbred, quarter horse racing associ-
ation or corporation licensed to  conduct  pari-mutuel  racing]  ACCOUNT
WAGERING  LICENSEE may require a minimum account balance in an amount to
be determined by such entity.
  [2.] 13. a. Any regional off-track  betting  corporation  may  suspend
collection  of  the surcharge imposed under section five hundred thirty-
two of this chapter on winning wagers  placed  in  [telephone]  WAGERING
accounts maintained by such regional corporation.
  b.  In  a  city  of one million or more any regional off-track betting
corporation, with the approval of the mayor of such  city,  may  suspend
collection  of  the surcharge imposed under section five hundred thirty-
two of this chapter in winning wagers  placed  in  [telephone]  WAGERING
accounts maintained by such regional corporation.
  [3.]  14.  Any  [telephone] WAGERING account maintained by [a regional
off-track  betting   corporation,   franchised   corporation,   harness,
thoroughbred,  quarter horse association or corporation, with inactivity
for a period of three years]  AN  ACCOUNT  WAGERING  LICENSEE  THAT  HAS
BECOME A DORMANT ACCOUNT shall be forfeited and paid to the commissioner
of  taxation  and  finance. Such amounts when collected shall be paid by
the commissioner of taxation and finance into the general  fund  of  the
state treasury.

A. 4151                             8

  [4.]  15.  The  maintenance and operation of such [telephone] WAGERING
accounts provided for in this section shall  be  subject  to  rules  and
regulations  of  the  [state racing and wagering board] COMMISSION.  The
[board] COMMISSION shall include in such regulation a  requirement  that
[telephone]  WAGERING  account  information  pertaining to surcharge and
nonsurcharge [telephone] WAGERING accounts shall be separately reported.
  [4-a.] 16. For the purposes  of  this  section,  "telephone  [betting]
WAGERING 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 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] THIS state.
  [4-b.]  17.  Every  racing association, off-track betting corporation,
franchised corporation,  harness,  thoroughbred,  quarter  horse  racing
association  or  corporation  or  other entity licensed in this state to
conduct pari-mutuel racing and wagering, or authorized to conduct  races
within  the  state,  which  operates  [an account] A wagering [platform]
ACCOUNT for the acceptance of wagers, shall locate the call center where
such wagers are received within the state of New York.
  [5. The provisions of this section shall expire and be of  no  further
force and effect after June thirtieth, two thousand thirteen.]
  18.  A  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING PROVIDER SHALL ONLY BE
LICENSED UNDER THE FOLLOWING CONDITIONS:
  A. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER IS  LICENSED  BY
THE  STATE  IN  WHICH  IT  IS LOCATED AND, IF REQUIRED, BY EACH STATE IN
WHICH IT OPERATES;
  B. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER POSSESSES APPRO-
PRIATE TOTALIZATOR AND ACCOUNTING  CONTROLS  WHICH  WILL  SAFEGUARD  THE
TRANSMISSION  OF  WAGERING DATA AND WILL KEEP A SYSTEM OF ACCOUNTS WHICH
WILL MAINTAIN A SEPARATE RECORD OF REVENUES COLLECTED  BY  THE  WAGERING
PROVIDER,  THE  DISTRIBUTION OF SUCH REVENUES AND AN ACCOUNTING OF COSTS
RELATIVE TO THE OPERATION OF THE WAGERING PROVIDER;
  C. THE  CHARACTER  AND  THE  BACKGROUND  OF  THE  MULTI-JURISDICTIONAL
ACCOUNT  WAGERING  PROVIDER IS SUCH THAT GRANTING THE APPLICATIONS FOR A
LICENSE IS IN THE PUBLIC INTEREST AND THE BEST INTEREST OF HONEST  HORSE
RACING;
  D.  THE  MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER SHALL UTILIZE
THE SERVICES OF AN INDEPENDENT  THIRD  PARTY  TO  PERFORM  IDENTITY  AND
VERIFICATION  SERVICES  WITH  RESPECT  TO  THE ESTABLISHMENT OF WAGERING
ACCOUNTS FOR PERSONS LOCATED IN NEW YORK;
  E. THE COMMISSION SHALL BE ALLOWED  ACCESS  TO  THE  PREMISES  OF  THE
MULTI-JURISDICTIONAL  ACCOUNT  WAGERING  PROVIDER  TO VISIT, INVESTIGATE
AND, PLACE SUCH EXPERT ACCOUNTANTS AND OTHER PERSONS IT DEEMS  NECESSARY
FOR THE PURPOSE OF INSURING COMPLIANCE WITH THE RULES AND REGULATIONS OF
THE COMMISSION;
  F.  WAGERS  PLACED  WITH  THE  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING
PROVIDER SHALL RESULT IN THE COMBINATION OF ALL  WAGERS  PLACED  AT  THE
HOST  TRACK  SO  AS  TO PRODUCE COMMON PARI-MUTUEL BETTING POOLS FOR THE
CALCULATION OF ODDS AND THE DETERMINATION OF  PAYOUTS  FROM  SUCH  POOL,
WHICH  PAYOUT SHALL BE THE SAME FOR ALL WINNING TICKETS, IRRESPECTIVE OF
WHETHER A WAGER IS PLACED AT A HOST TRACK OR AT  A  MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER;

A. 4151                             9

  G.  A  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING  PROVIDER AUTHORIZED TO
ACCEPT ACCOUNT WAGERS FROM PERSONS RESIDENT IN NEW YORK, WITH RESPECT TO
EACH SUCH WAGER ACCEPTED, SHALL PAY SUCH PARI-MUTUEL TAX, BREEDERS' FUND
DISTRIBUTIONS, AND SUCH OTHER STATUTORY PAYMENTS AND DISTRIBUTIONS THER-
EON  EQUIVALENT IN IDENTITY AND AMOUNT TO THE PARI-MUTUEL TAX, BREEDERS'
FUND DISTRIBUTIONS, STATUTORY PAYMENTS AND DISTRIBUTIONS THAT  WOULD  BE
REQUIRED IF SUCH WAGER HAD BEEN PLACED BY THE ACCOUNT HOLDER RESIDENT IN
NEW YORK AS AN ACCOUNT WAGER WITH AN OFF-TRACK BETTING CORPORATION OPER-
ATING  IN  THE  OFF-TRACK  BETTING  REGION IN WHICH THE ACCOUNT HOLDER'S
COUNTY OF RESIDENCE IS LOCATED. THE COMMISSION  SHALL  PROMULGATE  RULES
AND  REGULATIONS  WHICH WILL DETERMINE THE EXACT AMOUNT AND THE DISTRIB-
UTION OF PAYMENTS  OF  PARI-MUTUEL  TAXES,  DISTRIBUTIONS  TO  BREEDERS'
FUNDS, AND PAYMENTS AND DISTRIBUTIONS TO TRACKS AND PURSES BY MULTI-JUR-
ISDICTIONAL ACCOUNT WAGERING PROVIDERS; AND
  H.  IN ADDITION, FOR EACH ACCOUNT WAGER ACCEPTED FROM PERSONS RESIDENT
IN NEW YORK, THE MULTI-JURISDICTIONAL ACCOUNT  WAGERING  PROVIDER  SHALL
PAY  TO  THE COUNTY OF RESIDENCE OF THE ACCOUNT HOLDER A FEE OF ONE-HALF
OF ONE PERCENT OF SUCH ACCOUNT WAGER. IF  THE  COUNTY  OF  RESIDENCE  IS
WITHIN  A CITY WITH A POPULATION IN EXCESS OF ONE MILLION, THE FEE SHALL
BE PAID TO SUCH CITY. IN COUNTIES  THAT  ARE  MEMBERS  OF  AN  OFF-TRACK
BETTING  CORPORATION, THE PAYMENT SHALL BE MADE TO THE OFF-TRACK BETTING
CORPORATION. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL BE
ENTITLED TO DEDUCT FROM THE PARI-MUTUEL TAX PAYABLE BY  IT  UNDER  PARA-
GRAPH  G  OF THIS SUBDIVISION SUCH AMOUNTS THAT THE MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER IS OBLIGATED TO PAY  PURSUANT  TO  THIS  PARA-
GRAPH.
  S  5. Section 503 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 14 to read as follows:
  14. TO ENTER INTO, AMEND, CANCEL  AND  TERMINATE  AGREEMENTS  FOR  THE
PERFORMANCE   AMONG   THEMSELVES,   LICENSED   RACING  ASSOCIATIONS  AND
MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS, AS DEFINED  IN  SECTION
ONE  THOUSAND ONE OF THIS CHAPTER, OF THEIR RESPECTIVE FUNCTIONS, POWERS
AND DUTIES ON A COOPERATIVE OR CONTRACT BASIS.
  S 6. This act shall take effect February 1, 2013;  provided,  however,
if  this  act  shall  become  a law after such date it shall take effect
immediately and shall be deemed to have been in full force and effect on
and after February 1, 2013.