senate Bill S5904

Signed By Governor
2013-2014 Legislative Session

Amends commercial gaming bill, as proposed in S. 5883 and A. 8101, to make provisions relating to casino gaming expenditures take effect immediately; repealer

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Archive: Last Bill Status Via A8112 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 30, 2013 signed chap.175
delivered to governor
Jun 21, 2013 returned to assembly
passed senate
message of necessity
3rd reading cal.1592
substituted for s5904
Jun 21, 2013 substituted by a8112
ordered to third reading cal.1592
Jun 20, 2013 referred to rules

Votes

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Co-Sponsors

S5904 - Bill Details

See Assembly Version of this Bill:
A8112
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Rpld §1300 subs 9 & 15, §1306 sub 5, amd §§1300, 1306, 1340 & 1311, RWB L (as proposed in S. 5883 and A. 8101); amd §§225.00, Pen L (as proposed in S. 5883 and A. 8101); amd §52, Chap of 2013 (as proposed in S. 5883 and A. 8101); amd §§1612 & 1617-a, rpld §1612 sub b ¶1 sub¶ (ii) Cl (H), Cl (G) & Cl (G-1), Tax L (as proposed in S. 5883 and A. 8101)
Versions Introduced in 2013-2014 Legislative Session:
A8112, S5904

S5904 - Bill Texts

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Enacts chapter amendments to the commercial gaming bill, as proposed in S. 5883 and A. 8101, to make provisions relating to casino gaming expenditures take effect immediately and makes certain technical corrections to the effective date thereof; repeals the power of the New York state resort gaming facility location board to make determinations on whether tribal-state gaming compacts are in good standing; makes a technical correction to the penal law relating to casino gaming.

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BILL NUMBER:S5904

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, the penal law and the tax law, in relation to commercial
gaming; to amend a chapter of the laws of 2013 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
commercial gaming, as proposed in legislative bill numbers S. 5883 and
A. 8101, in relation to the effective date of certain provisions
thereof; to repeal certain provisions of the racing, pari-mutuel
wagering and breeding law relating to the tribes that have gaming
compacts with the state; and to repeal certain provisions of the tax
law relating to disposition of revenues

Purpose: To make technical corrections to legislative bill numbers S.
5883 and A. 8101.

Summary of Provisions: This bill makes technical corrections to S.
5883 and A. 8101 to effectuate the intentions of the Legislature and
Executive.

Existing Law: On June 18, 2013, Governor's Program Bill No. 33 was
delivered to both houses of the Legislature and subsequently
introduced that day as bill numbers S. 5883 and A. 8101. There are a
few minor amendments need to correct unintended errors in the bill
copy that must be made without which the intentions of the Legislature
and Executive might not be properly effectuated.

Justification: The comprehensive legislation contained in bill
numbers S. 5883 and A. 8101 is necessary to provide a statutory
framework for gaming in New York, should the concurrent resolution
amending the State Constitution obtain second passage and be approved
by the State electorate. This chapter amendment would correct
technical errors contained in the bill copy of that legislation.

Legislative History: This is a new bill.

Budget Implications: There are none.

Effective Date: The bill would be effective on the same date in the
same manner as the bills that it amends take effect.

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

    S. 5904                                                  A. 8112

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              June 20, 2013
                               ___________

IN  SENATE -- Introduced by Sen. BONACIC -- (at request of the Governor)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Rules

IN ASSEMBLY -- Introduced by M. of A. PRETLOW, GUNTHER -- (at request of
  the Governor) -- read once and referred to the Committee on  Ways  and
  Means

AN  ACT  to amend the racing, pari-mutuel wagering and breeding law, the
  penal law and the tax law, in relation to commercial gaming; to  amend
  a  chapter of the laws of 2013 amending the racing, pari-mutuel wager-
  ing and breeding law and other laws relating to commercial gaming,  as
  proposed  in legislative bill numbers S. 5883 and A. 8101, in relation
  to the effective date of certain provisions thereof; to repeal certain
  provisions of the racing, pari-mutuel wagering and breeding law relat-
  ing to the tribes that have gaming compacts with  the  state;  and  to
  repeal  certain  provisions  of the tax law relating to disposition of
  revenues

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

  Section  1. Subdivisions 9 and 15 of section 1300 of the racing, pari-
mutuel wagering and breeding law, as added by section 2 of a chapter  of
the  laws of 2013 amending the racing, pari-mutuel wagering and breeding
law and other laws relating to commercial gaming, as proposed in  legis-
lative  bill numbers S. 5883 and A. 8101, are REPEALED, and subdivisions
10, 11, 12, 13, 14 and 16 are renumbered subdivisions 9, 10, 11, 12,  13
and 14.
  S 2. Subdivision 5 of section 1306 of the racing, pari-mutuel wagering
and breeding law, as added by section 2 of a chapter of the laws of 2013
amending  the  racing,  pari-mutuel  wagering and breeding law and other
laws relating to commercial gaming,  as  proposed  in  legislative  bill

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12052-09-3

S. 5904                             2                            A. 8112

numbers  S.5883 and A.8101, is REPEALED, and subdivisions 6, 7, 8, 9, 10
and 11 are renumbered subdivisions 5, 6, 7, 8, 9 and 10.
  S  3.  Subdivision  15 of section 225.00 of the penal law, as added by
section 3 of a chapter of the laws of 2013 amending the racing, pari-mu-
tuel wagering and breeding law and other  laws  relating  to  commercial
gaming,  as proposed in legislative bill numbers S. 5883 and A. 8101, is
amended to read as follows:
  15. "Casino gaming" means games authorized to be played pursuant to  a
license granted under article thirteen of the racing, pari-mutuel wager-
ing and breeding law or by federally recognized Indian nations or tribes
pursuant  to  a  [valid]  gaming  compact reached in accordance with the
federal Indian Gaming Regulatory Act of 1988, Pub. L. 100-497, 102 Stat.
2467, codified at 25 U.S.C. SS 2701-21 and 18 U.S.C. SS 1166-68.
  S 4. Subdivision (f) of section 52 of a chapter of the  laws  of  2013
amending  the  racing,  pari-mutuel  wagering and breeding law and other
laws relating to commercial gaming,  as  proposed  in  legislative  bill
numbers  S.  5883 and A. 8101, is amended and a new subdivision (a-1) is
added to read as follows:
  (A-1) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, SECTION  1330-A
OF  THE  RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW, AS ADDED BY
SECTION TWO OF THIS ACT, SHALL TAKE EFFECT IMMEDIATELY;
  (f) [section forty] SECTIONS FORTY-THREE through [forty-eight]  FIFTY-
ONE  of  this act shall take effect January 1, 2014; except that the New
York state gaming commission may  accept  and  review  applications  for
licenses  for  account  wagering  and  for  multi-jurisdictional account
wagering providers commencing on October 1, 2013.
  S 5. The opening paragraph, the  second,  fourth,  fifth  undesignated
paragraphs  and  the opening paragraph of the 7th undesignated paragraph
of clause (G) of subparagraph (ii) of paragraph 1 of  subdivision  b  of
section  1612  of  the tax law, as amended by section 40 of a chapter of
the laws of 2013 amending the racing, pari-mutuel wagering and  breeding
law  and other laws relating to commercial gaming, as proposed in legis-
lative bill numbers S. 5883 and A. 8101, are amended to read as follows:
  notwithstanding clauses (A), (B),  (C),  (D),  (E)  and  (F)  of  this
subparagraph,  when no more than one vendor track located in the town of
Thompson in Sullivan county at the site of the former Concord Resort  at
which a qualified capital investment has been made and no fewer than one
thousand  full-time,  permanent  employees  have  been  newly  hired, is
located in Sullivan county and is within sixty  miles  from  any  gaming
facility  in  a  contiguous  state, then for a period of forty years the
vendor's fee shall equal the total revenue wagered at the  vendor  track
after  payout  of  prizes  pursuant  to  this subdivision reduced by the
greater of (i) twenty-five percent of total  revenue  after  payout  for
prizes  for  "video  lottery games" or (ii) for the first eight years of
operation thirty-eight million dollars, and beginning in the ninth  year
of  operation  such  amount shall increase annually by the lesser of the
increase in the consumer price index or two percent, plus seven  percent
of  total  revenue after payout of prizes. In addition, in the event the
vendor fee is calculated pursuant to subclause (i) of this  clause,  the
vendor's  fee shall be further reduced by 11.11 percent of the amount by
which total revenue after payout for prizes exceeds two hundred  fifteen
million  dollars,  but  in  no  event  shall  such reduction exceed five
million dollars.   [Provided, further, no vendor  is  eligible  for  the
vendor's  fee  described  in  this  clause who operates or invests in or
owns, in whole or in part, another vendor license or is  licensed  as  a

S. 5904                             3                            A. 8112

vendor  track  that currently receives a vendor fee for the operation of
video lottery gaming pursuant to this article.]
  Provided,  however,  that  in  the case of [a resort facility] NO MORE
THAN ONE VENDOR TRACK located IN THE TOWN OF THOMPSON in Sullivan county
AT THE SITE OF THE  FORMER  CONCORD  RESORT  with  a  qualified  capital
investment,  and  one  thousand full-time, permanent employees if at any
time after three years of  opening  operations  of  the  licensed  video
gaming  facility  OR LICENSED VENDOR TRACK, the [resort facility] VENDOR
TRACK experiences an employment shortfall,  then  the  recapture  amount
shall apply, for only such period as the shortfall exists.
  For  the  purposes  of  this  section, "full-time, permanent employee"
shall mean an employee who has worked  at  the  video  gaming  facility,
VENDOR  TRACK  or related and adjacent facilities for a minimum of thir-
ty-five hours per week for not less than four consecutive weeks and  who
is  entitled to receive the usual and customary fringe benefits extended
to other employees with comparable rank and  duties;  or  two  part-time
employees  who have worked at the video gaming facility, vendor track or
related and adjacent facilities for a combined  minimum  of  thirty-five
hours  per  week  for  not  less than four consecutive weeks and who are
entitled to receive the usual and customary fringe benefits extended  to
other employees with comparable rank and duties.
  For the purpose of this section "employment goal" shall mean one thou-
sand  five  hundred  full-time  permanent employees after three years of
opening operations of the licensed video  gaming  facility  OR  LICENSED
VENDOR TRACK.
  For  the  purposes  of  this section "recapture amount" shall mean the
difference between the amount of the vendor's fee paid to a vendor TRACK
with a qualified capital investment, and the vendor fee otherwise  paya-
ble  to a vendor TRACK pursuant to clause (F) of this subparagraph, that
is reimbursable by the vendor track to the division for payment into the
state treasury, to the credit of  the  state  lottery  fund  created  by
section  ninety-two-c  of  the  state  finance law, due to an employment
shortfall pursuant to the following schedule only for the period of  the
employment shortfall:
  S  6.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as added by section 40 of a  chapter  of
the  laws of 2013 amending the racing, pari-mutuel wagering and breeding
law and other laws relating to commercial gaming, as proposed in  legis-
lative bill numbers S. 5883 and A. 8101, is REPEALED.
  S 7. Clauses (I) and (J) of subparagraph (ii) of paragraph 1 of subdi-
vision  b  of  section  1612 of the tax law, as added by section 40 of a
chapter of the laws of 2013 amending the  racing,  pari-mutuel  wagering
and  breeding  law  and  other  laws  relating  to commercial gaming, as
proposed in legislative bill numbers S. 5883 and A. 8101, are amended to
read as follows:
  [(I)] (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)[,]  and
[(G-1)]  (G)  of this subparagraph, the track operator of a vendor track
shall be eligible for a vendor's capital award of up to four percent  of
the  total  revenue  wagered at the vendor track after payout for prizes
pursuant to this chapter, which shall be used  exclusively  for  capital
project  investments to improve the facilities of the vendor track which
promote or encourage increased attendance at the  video  lottery  gaming
facility including, but not limited to hotels, other lodging facilities,
entertainment  facilities,  retail facilities, dining facilities, events
arenas, parking garages and other  improvements  that  enhance  facility
amenities;  provided  that such capital investments shall be approved by

S. 5904                             4                            A. 8112

the division, in consultation with the state racing and wagering  board,
and  that  such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities  and  increase
the amount of revenue generated to support state education programs. The
annual  amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited  to  two  million  five  hundred
thousand  dollars,  except for Aqueduct racetrack, for which there shall
be no vendor's capital awards.  Except for tracks having less  than  one
thousand one hundred video gaming machines, each track operator shall be
required  to  co-invest  an  amount  of capital expenditure equal to its
cumulative vendor's capital award. For all tracks, except  for  Aqueduct
racetrack,  the  amount  of  any vendor's capital award that is not used
during any one year period may be carried  over  into  subsequent  years
ending  before  April first, two thousand fourteen. Any amount attribut-
able to a capital expenditure approved prior to April first,  two  thou-
sand  fourteen  and  completed  before April first, two thousand sixteen
shall be eligible to receive the vendor's capital award.  In  the  event
that  a  vendor  track's  capital expenditures, approved by the division
prior to April first, two thousand fourteen and completed prior to April
first, two thousand sixteen, exceed the vendor track's cumulative  capi-
tal  award  during the five year period ending April first, two thousand
fourteen, the vendor shall continue to receive the capital  award  after
April  first, two thousand fourteen until such approved capital expendi-
tures are paid to the vendor track subject to  any  required  co-invest-
ment.  In  no  event  shall  any vendor track that receives a vendor fee
pursuant to clause (F) or (G) of this subparagraph  be  eligible  for  a
vendor's  capital  award  under  this  section. Any operator of a vendor
track which has received a vendor's capital award,  choosing  to  divest
the capital improvement toward which the award was applied, prior to the
full depreciation of the capital improvement in accordance with general-
ly  accepted accounting principles, shall reimburse the state in amounts
equal to the total of any such awards. Any capital  award  not  approved
for  a  capital  expenditure at a video lottery gaming facility by April
first, two thousand fourteen shall be deposited into the  state  lottery
fund for education aid; and
  [(J)]  (I)  Notwithstanding any provision of law to the contrary, free
play allowance credits authorized by the division pursuant  to  subdivi-
sion  f of section sixteen hundred seventeen-a of this article shall not
be included in the calculation of the  total  amount  wagered  on  video
lottery  games,  the  total  amount  wagered after payout of prizes, the
vendor fees payable  to  the  operators  of  video  lottery  facilities,
vendor's  capital  awards,  fees payable to the division's video lottery
gaming equipment contractors, or racing support payments.
  S 8. Subparagraph (iii) of paragraph 1 of  subdivision  b  of  section
1612  of the tax law, as added by section 40 of a chapter of the laws of
2013 amending the racing, pari-mutuel  wagering  and  breeding  law  and
other  laws  relating  to  commercial gaming, as proposed in legislative
bill numbers S. 5883 and A. 8101, 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

S. 5904                             5                            A. 8112

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 provided,  however,  a  vendor  that
receives  a  vendor fee pursuant to clause (G-1) of subparagraph (ii) of
this paragraph shall receive an additional marketing allowance at a rate
of ten percent of the total revenue wagered at the video lottery  gaming
facility  after payout for prizes.  [the division shall ensure the maxi-
mum 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 9. The opening paragraph of paragraph 2 of subdivision b of  section
1612  of the tax law, as added by section 40 of a chapter of the laws of
2013 amending the racing, pari-mutuel  wagering  and  breeding  law  and
other  laws  relating  to  commercial gaming, as proposed in legislative
bill numbers S. 5883 and A. 8101, is amended to read as follows:
  As consideration for the operation of a video lottery gaming facility,
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 of Nassau or
Suffolk  operated  by a corporation established pursuant to section five
hundred two of the racing, pari-mutuel wagering and breeding law  [or  a
facility  in  the  county of Nassau or Suffolk 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,  solely  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 such purse enhancement amount 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.  In  addition,  with  the
exception of Aqueduct racetrack OR A FACILITY IN THE COUNTY OF NASSAU OR
SUFFOLK  OPERATED  BY A CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE
HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND  BREEDING  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

S. 5904                             6                            A. 8112

subdivision, shall be distributed to the appropriate breeding  fund  for
the manner of racing conducted by such track.
  S  10.  Subdivision  (f-1) of section 1612 of the tax law, as added by
section 40 of a chapter of the laws of 2013 amending the  racing,  pari-
mutuel  wagering  and breeding law and other laws relating to commercial
gaming, as proposed in legislative bill numbers S. 5883 and A. 8101,  is
amended to read as follows:
  [(f-1)]  F-1.  As  consideration for operation of video lottery gaming
facility located in the county of Nassau [of] OR Suffolk 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:
  [(1)]  1.  Two  and  three  tenths  percent of the total wagered after
payout of prizes for the purpose of enhancing purses at  Aqueduct  race-
track, Belmont Park racetrack and Saratoga race course, provided, howev-
er,  that  any amount that is in excess of the amount necessary to main-
tain purse support from video  lottery  gaming  at  Aqueduct  racetrack,
Belmont  Park racetrack and Saratoga race course at the same level real-
ized [in] in two thousand thirteen, to be adjusted by the consumer price
index for all urban consumers,  as  published  annually  by  the  United
States  department  of  LABOR,  bureau  of  labor statistics, shall [be]
instead be returned to the commission.
  [(2)] 2. five tenths percent of the  total  wagered  after  payout  of
prizes  for  the  appropriate  breeding fund for the manner of racing at
Aqueduct racetrack, Belmont Park racetrack  and  Saratoga  race  course,
provided,  however,  that  any  amount  that  is in excess of the amount
necessary to maintain payments from video  lottery  gaming  at  Aqueduct
racetrack  at  the same level realized [in] in two thousand thirteen, to
be adjusted by the consumer price index  for  all  urban  consumers,  as
published  annually  by the United States department of LABOR, bureau of
labor statistics, shall [be] instead be returned to the commission.
  [(3)] 3. one and three tenths percent of  the  total  revenue  wagered
after payout of prizes to be deposited into an account of the franchised
corporation  established  pursuant  to  section  two  hundred six of the
racing, pari-mutuel wagering and breeding law to  be  used  for  capital
expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
Park racetrack and Saratoga race course,  provided,  however,  that  any
amount  that  is  in excess of the amount necessary to maintain payments
for capital expenditures from video lottery gaming at Aqueduct racetrack
at the same level realized [in] in two thousand thirteen, to be adjusted
by the consumer price index for all urban consumers, as published  annu-
ally  by  the United States department of LABOR, bureau of labor statis-
tics, shall [be] instead be returned to the commission.
  [(4)] 4. Nine tenths percent of the total revenue wagered after payout
for prizes to be deposited into an account of the franchised corporation
established pursuant to section two hundred six of the racing,  pari-mu-
tuel  wagering  and  breeding  law  to  be used for general thoroughbred
racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
Saratoga  race  course,  provided,  however,  that any amount that is in
excess  of  the  amount  necessary  to  maintain  payments  for  general
thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
racetrack at the same level realized [in] in two thousand  thirteen,  to
be  adjusted  by  the  consumer  price index for all urban consumers, as
published annually by the United States department of LABOR,  bureau  of
labor statistics, shall [be] instead be returned to the commission.

S. 5904                             7                            A. 8112

  S  11.  The  opening paragraph of the first clause (G) of subparagraph
(ii) of paragraph 1 of subdivision b of section 1612 of the tax law,  as
amended  by  section  42  of  a chapter of the laws of 2013 amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
commercial  gaming,  as proposed in legislative bill numbers S. 5883 and
A. 8101, is amended to read as follows:
  notwithstanding clauses (A), (B),  (C),  (D),  (E)  and  (F)  of  this
subparagraph,  when  [a  resort  facility to be operated by other than a
presently licensed video lottery gaming operator or  any  entity  affil-
iated therewith selected by the division following a competitive process
located]  NOT MORE THAN ONE VENDOR TRACK LOCATED IN THE TOWN OF THOMPSON
in Sullivan county AT THE SITE OF THE FORMER CONCORD RESORT at  which  a
qualified  capital  investment has been made and no fewer than one thou-
sand full-time, permanent employees have been newly hired, is located in
Sullivan county and is within sixty miles from any gaming facility in  a
contiguous  state,  then  for  a  period of forty years the vendor's fee
shall equal the total revenue wagered at the vendor track  after  payout
of  prizes  pursuant  to  this subdivision reduced by the greater of (i)
twenty-five percent of total revenue after payout for prizes for  "video
lottery  games"  or  (ii) for the first eight years of operation thirty-
eight million dollars, and beginning in the ninth year of operation such
amount shall increase annually by the lesser  of  the  increase  in  the
consumer price index or two percent, plus seven percent of total revenue
after  payout  of  prizes.  In  addition, in the event the vendor fee is
calculated pursuant to subclause (i) of this clause,  the  vendor's  fee
shall  be  further reduced by 11.11 percent of the amount by which total
revenue after payout for prizes  exceeds  two  hundred  fifteen  million
dollars,  but  in  no  event  shall  such  reduction exceed five million
dollars.  PROVIDED, FURTHER, NO VENDOR IS ELIGIBLE FOR THE VENDOR'S  FEE
DESCRIBED IN THIS CLAUSE WHO OPERATES OR INVESTS IN OR OWNS, IN WHOLE OR
IN  PART,  ANOTHER  VENDOR LICENSE OR IS LICENSED AS A VENDOR TRACK THAT
CURRENTLY RECEIVES A VENDOR FEE  FOR  THE  OPERATION  OF  VIDEO  LOTTERY
GAMING PURSUANT TO THIS ARTICLE.
  S  12.  The  second  clause (G) of subparagraph (ii) of paragraph 1 of
subdivision b of section 1612 of the tax law, as amended by  section  42
of a chapter of the laws of 2013 amending the racing, pari-mutuel wager-
ing  and  breeding  law and other laws relating to commercial gaming, as
proposed in legislative bill numbers S. 5883 and A. 8101, is REPEALED.
  S 13. Clause (G-1) of subparagraph (ii) of paragraph 1 of  subdivision
b  of section 1612 of the tax law, as amended by section 42 of a chapter
of the laws of 2013 amending the racing, pari-mutuel wagering and breed-
ing law and other laws relating to commercial  gaming,  as  proposed  in
legislative bill numbers S. 5883 and A. 8101, is REPEALED.
  S  14. Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 42 of a chapter of the  laws  of  2013  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
commercial  gaming,  as proposed in legislative bill numbers S. 5883 and
A. 8101, 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 AND A FACILITY LOCATED IN NASSAU COUNTY
AUTHORIZED PURSUANT TO PARAGRAPH FIVE OF SUBDIVISION A  OF  SECTION  ONE
THOUSAND  SIX HUNDRED SEVENTEEN-A OF THIS ARTICLE, each such track shall
dedicate a portion of its vendor fees, received pursuant to clause  (A),

S. 5904                             8                            A. 8112

(B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of
this  subdivision,  solely  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 such purse enhancement amount 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.  In  addition,  with  the
exception  of Aqueduct racetrack AND A FACILITY LOCATED IN NASSAU COUNTY
AUTHORIZED PURSUANT TO PARAGRAPH FIVE OF SUBDIVISION A  OF  SECTION  ONE
THOUSAND  SIX  HUNDRED  SEVENTEEN-A OF THIS ARTICLE, 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.
  Provided,  further,  that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed  five  years,  with
the  organization  authorized  to  represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses  at
such  track  during the years of participation by such track, or to race
fewer dates than required herein.
  S 15. Subdivision (f-2) of section 1612 of the tax law,  as  added  by
section  42  of a chapter of the laws of 2013 amending the racing, pari-
mutuel wagering and breeding law and other laws relating  to  commercial
gaming,  as proposed in legislative bill numbers S. 5883 and A. 8101, is
amended to read as follows:
  [(f-2)] F-2. As consideration for operation of a video lottery  gaming
facility  located  in  the  county  of  Nassau established pursuant to a
competitive process pursuant to paragraph [(5)] FIVE OF SUBDIVISION A of
section [six] ONE thousand [seventeen a] SIX HUNDRED SEVENTEEN-A of this
article, 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:
  [(1)] 1. Two and three tenths  percent  of  the  total  wagered  after
payout  of  prizes for the purpose of enhancing purses at Aqueduct race-
track, Belmont Park racetrack and Saratoga race course, provided, howev-
er, that any amount that is in excess of the amount necessary  to  main-
tain  purse  support  from  video  lottery gaming at Aqueduct racetrack,
Belmont Park racetrack and Saratoga race course at the same level  real-
ized [in] in two thousand thirteen, to be adjusted by the consumer price
index  for  all  urban  consumers,  as  published annually by the United
States department of LABOR,  bureau  of  labor  statistics,  shall  [be]
instead be returned to the commission.
  [(2)]  2.  five  tenths  percent  of the total wagered after payout of
prizes for the appropriate breeding fund for the  manner  of  racing  at
Aqueduct  racetrack,  Belmont  Park  racetrack and Saratoga race course,
provided, however, that any amount that  is  in  excess  of  the  amount
necessary  to  maintain  payments  from video lottery gaming at Aqueduct
racetrack at the same level realized [in] in two thousand  thirteen,  to
be  adjusted  by  the  consumer  price index for all urban consumers, as
published annually by the United States department of LABOR,  bureau  of
labor statistics, shall [be] instead be returned to the commission.

S. 5904                             9                            A. 8112

  [(3)]  3.  one  and  three tenths percent of the total revenue wagered
after payout of prizes to be deposited into an account of the franchised
corporation established pursuant to  section  two  hundred  six  of  the
racing,  pari-mutuel  wagering  and  breeding law to be used for capital
expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
Park racetrack and Saratoga race course,  provided,  however,  that  any
amount  that  is  in excess of the amount necessary to maintain payments
for capital expenditures from video lottery gaming at Aqueduct racetrack
at the same level realized [in] in two thousand thirteen, to be adjusted
by the consumer price index for all urban consumers, as published  annu-
ally  by  the United States department of LABOR, bureau of labor statis-
tics, shall [be] instead be returned to the commission.
  [(4)] 4. Nine tenths percent of the total revenue wagered after payout
for prizes to be deposited into an account of the franchised corporation
established pursuant to section two hundred six of the racing,  pari-mu-
tuel  wagering  and  breeding  law  to  be used for general thoroughbred
racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
Saratoga  race  course,  provided,  however,  that any amount that is in
excess  of  the  amount  necessary  to  maintain  payments  for  general
thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
racetrack at the same level realized [in] in two thousand  thirteen,  to
be  adjusted  by  the  consumer  price index for all urban consumers, as
published annually by the United States department of LABOR,  bureau  of
labor statistics, shall [be] instead be returned to the commission.
  S  16. Subdivision 6 of section 1340 of the racing, pari-mutuel wager-
ing and breeding law, as added by section 2 of a chapter of the laws  of
2013  amending  the  racing,  pari-mutuel  wagering and breeding law and
other laws relating to commercial gaming,  as  proposed  in  legislative
bill numbers S. 5883 and A. 8101, is amended to read as follows:
  6.  Notwithstanding any provision of law to the contrary, any manufac-
turer or wholesaler licensed under the alcoholic  beverage  control  law
may,  as authorized under the alcoholic beverage control law, sell alco-
holic beverages to a gaming facility holding a retail license or  permit
to sell alcoholic beverages for consumption on the premises issued under
this section, and any gaming facility holding a retail license or permit
to sell alcoholic beverages FOR CONSUMPTION ON THE PREMISES issued under
this  section  may,  as  authorized under the alcoholic beverage control
law, purchase alcoholic beverages  from  a  manufacturer  or  wholesaler
licensed under the alcoholic beverage control law.
  S  17.  Paragraph 3 of subdivision a of section 1617-a of the tax law,
as amended by section 32 of a chapter of the laws of 2013  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
commercial  gaming,  as proposed in legislative bill numbers S. 5883 and
A. 8101, is amended to read as follows:
  (3) at [facilities] ONE FACILITY PER REGION established, pursuant to a
competitive process to be determined  by  the  state  gaming  commission
within  regions one, two, and five of zone two as established by section
one thousand three hundred ten of the racing, pari-mutuel  wagering  and
breeding law following local governmental consultation and consideration
of  market  factors  including potential revenue impact, anticipated job
development and capital investment to be made. The facilities authorized
pursuant to this paragraph shall be  deemed  vendors  for  all  purposes
under this article, and need not be operated by licensed thoroughbred or
harness racing associations or corporations.
  S  18. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision
b of section 1612 of the tax law, as added by section 40 of a chapter of

S. 5904                            10                            A. 8112

the laws of 2013 amending the racing, pari-mutuel wagering and  breeding
law  and other laws relating to commercial gaming, as proposed in legis-
lative bill numbers S. 5883 and A. 8101, is amended to read as follows:
  (G-1)  Notwithstanding clause (A) and (B) of this subparagraph, when a
video lottery gaming facility is located in either the county of  Nassau
or  Suffolk  and  is  operated  by a corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and  breed-
ing law at a rate of thirty-five percent of the total revenue wagered at
the vendor [track] after payout for prizes pursuant to this chapter;
  S  19. Clause (G-2) of subparagraph (ii) of paragraph 1 of subdivision
b of section 1612 of the tax law, as added by section 42 of a chapter of
the laws of 2013 amending the racing, pari-mutuel wagering and  breeding
law  and other laws relating to commercial gaming, as proposed in legis-
lative bill numbers S. 5883 and A. 8101, are amended to read as follows:
  (G-2) Notwithstanding clause (A) and (B) of this subparagraph, when  a
video  lottery gaming facility is located in the county of Nassau estab-
lished pursuant to a competitive process  pursuant  to  paragraph  [(5)]
FIVE  OF  SUBDIVISION A of section [six] ONE thousand SIX HUNDRED seven-
teen-a of this article at a rate of thirty-five  percent  of  the  total
revenue  wagered  at the vendor [track] after payout for prizes pursuant
to this chapter;
  S 20. Subdivision 1 of section 1311 of the racing, pari-mutuel  wager-
ing  and breeding law, as added by section 2 of a chapter of the laws of
2013 amending the racing, pari-mutuel  wagering  and  breeding  law  and
other  laws  relating  to  commercial gaming, as proposed in legislative
bill numbers S. 5883 and A. 8101, is amended to read as follows:
  1. The commission is authorized to award up to  four  gaming  facility
licenses, in regions one, two and five of zone two. The duration of such
initial  license shall be ten years. The term of renewal shall be deter-
mined by the commission.  The commission may award a second license to a
qualified applicant in no more than a single region.  The commission  is
not empowered to award any license in zone one. No gaming facilities are
authorized  under  this  article  for  the city of New York or any other
portion of zone one.
  As a condition of licensure, licensees are required to commence gaming
operations no [less] MORE  than  twenty-four  months  following  license
award.  No  additional  licenses  may  be awarded during the twenty-four
month period, nor for an additional sixty months following  the  end  of
the  twenty-four month period.  Should the state legislatively authorize
additional gaming facility  licenses  within  these  periods,  licensees
shall have the right to recover the license fee paid pursuant to section
one thousand three hundred six of this article.
  This  right  shall  be incorporated into the license itself, vest upon
the opening of a gaming facility in zone one or in the  same  region  as
the  licensee  and entitle the holder of such license to bring an action
in the court of claims to recover  the  license  fee  paid  pursuant  to
section  one thousand three hundred fifteen of this article in the event
that any gaming facility license in excess of the number  authorized  by
this  section as of the effective date of this section is awarded within
seven years from the date that the initial gaming  facility  license  is
awarded.    This right to recover any such fee shall be proportionate to
the length of the respective period that is  still  remaining  upon  the
vesting of such right.
  Additionally,  the  right to bring an action in the court of claims to
recover the fee paid to the state on the twenty-fourth day of September,
two thousand ten, by the operator of a video lottery gaming facility  in

S. 5904                            11                            A. 8112

a  city  of more than one million shall vest with such operator upon the
opening of any gaming facility licensed by the commission  in  zone  one
within  seven  years  from  the  date  that  the initial gaming facility
license  is  awarded; provided however that the amount recoverable shall
be limited to the pro rata amount of the time remaining until the end of
the seven year exclusivity period, proportionate to the period  of  time
between  the  date  of  opening  of the video lottery facility until the
conclusion of the seven year period.
  S 21. This act shall take effect on the same  date  and  in  the  same
manner as a chapter of the laws of 2013 amending the racing, pari-mutuel
wagering  and breeding law and other laws relating to commercial gaming,
as proposed in legislative bill numbers  S.  5883  and  A.  8101,  takes
effect.

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