senate Bill S2391

2013-2014 Legislative Session

Relates to the distribution of the additional vendor's marketing allowance by any operator of a racetrack located in the county of Westchester

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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 17, 2013 referred to investigations and government operations

S2391 - Bill Details

See Assembly Version of this Bill:
A3974
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง1612, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3595A, A3651A
2009-2010: S3283A, A6917

S2391 - Bill Texts

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Provides that the additional vendor's marketing allowance retained by any operator of a racetrack located in the county of Westchester shall not exceed 8 percent of the total revenue wagered at the vendor track after payout for prizes and the remainder of such additional vendor's marketing allowance, not to exceed 25 million dollars, shall be paid to the Yonkers city school district board of education in quarterly payments for the support and maintenance of certain educational programs.

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BILL NUMBER:S2391

TITLE OF BILL: An act to amend the tax law, in relation to the
distribution of the additional vendor's marketing allowance by any
operator of a racetrack located in the county of Westchester

PURPOSE OR GENERAL IDEA OF BILL:
Relates to the distribution the additional vendor's marketing
allowance by any operator of a racetrack located in the county of
Westchester.

SUMMARY OF SPECIFIC PROVISIONS:
Amends subdivision b of section 1612 of the tax law, as amended by
section 1 part O-1 of chapter 57 of the laws of 2009. The additional
vendor's marketing allowance for any operator of a racetrack located
in Westchester County expended by such operator for marketing shall
not exceed 4% of the total revenue wagered at the vendor track after
payout for prizes pursuant to this chapter in any year and the
remainder of such additional vendor's marketing allowance for such
operator calculated pursuant to this subdivision, not to exceed $25
million annually, shall be paid by such operator to the Yonkers city
school District board of education in quarterly payments commencing
July first, two thousand six to support and maintain educational
programs established pursuant to the settlement agreement dated
January 31, 2002 in the united States of America v. Yonkers Board of
Education. Notwithstanding any other provision of law, rule or
regulation to the contrary, such amount provided pursuant to this
subdivision shall be in addition to any annual maintenance of effort
requirement imposed on the state or city of Yonkers.

JUSTIFICATION:
The revenues generated from the Video Lottery Terminals are expected
to bring enormous benefits to the State of New York in the form of
additional dollars to education. This bill will drive a portion of the
revenues generated from the VLTs to the Yonkers city school District
to support and maintain educational programs established settlement
pursuant to the settlement agreement dated January 31, 2002 in the
United States if America v. Yonkers Board of Education. Under this
legislation, the Yonkers schools would receive 4 percent of the first
$100 million of revenues from the VLTs in Yonkers at 1 percent for
each subsequent $100 million.

PRIOR LEGISLATIVE HISTORY:
S.3283-A of 2010 - Held in Racing, Gaming & Wagering
A.3179 of 2008
A.8881 of 2006

EFFECTIVE DATE:
July 1, 2014

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

                                  2391

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  the  distribution  of  the
  additional vendor's marketing allowance by any operator of a racetrack
  located in the county of Westchester

  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 0-1 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;  AND PROVIDED, FURTHER, THAT THE
ADDITIONAL VENDOR'S MARKETING ALLOWANCE FOR ANY OPERATOR OF A  RACETRACK
LOCATED  IN  THE  COUNTY  OF  WESTCHESTER  EXPENDED BY SUCH OPERATOR FOR
MARKETING SHALL NOT EXCEED EIGHT PERCENT OF THE TOTAL REVENUE WAGERED AT
THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER IN ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05545-01-3

S. 2391                             2

YEAR AND THE REMAINDER OF SUCH ADDITIONAL VENDOR'S  MARKETING  ALLOWANCE
FOR SUCH OPERATOR CALCULATED PURSUANT TO THIS SUBDIVISION, NOT TO EXCEED
TWENTY-FIVE  MILLION DOLLARS ANNUALLY, SHALL BE PAID BY SUCH OPERATOR TO
THE  YONKERS  CITY  SCHOOL  DISTRICT  BOARD  OF  EDUCATION  IN QUARTERLY
PAYMENTS COMMENCING JULY FIRST, TWO THOUSAND  FOURTEEN  TO  SUPPORT  AND
MAINTAIN  EDUCATIONAL  PROGRAMS  ESTABLISHED  PURSUANT TO THE SETTLEMENT
AGREEMENT DATED JANUARY THIRTY-FIRST, TWO THOUSAND TWO IN UNITED  STATES
OF  AMERICA  V.  YONKERS  BOARD  OF EDUCATION. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, RULE  OR  REGULATION  TO  THE  CONTRARY,  SUCH  AMOUNT
PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE IN ADDITION TO ANY ANNUAL
MAINTENANCE  OF EFFORT REQUIREMENT IMPOSED ON THE STATE OR CITY OF YONK-
ERS.  In establishing the 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 participation 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 remaining after provision for the payment of
prizes as herein provided. Any revenues derived from the sale of  adver-
tising on lottery tickets shall be deposited in the state lottery fund.
  S 2. This act shall take effect July 1, 2014.

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