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

                                  7170

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 27, 2015
                               ___________

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

AN ACT to amend the tax law, in relation to  investment  in  the  racing
  industry  in  consideration  for  operation  of a video lottery gaming
  facility

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

  Section  1.  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 of Nassau or
Suffolk operated by a corporation established pursuant to  section  five
hundred  two  of the racing, pari-mutuel wagering and breeding law, each
such track shall dedicate a portion of its vendor fees, received  pursu-
ant  to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii)
of paragraph one of this subdivision, for the purpose of enhancing purs-
es 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,  PROVIDED THAT IN THE EVENT A TRACK IS GRANTED SUBSEQUENT TO TWO
THOUSAND FOURTEEN EITHER  (A)  AN  INCREASED  VENDOR'S  FEE,  OR  (B)  A
DECREASE  IN  THE  TAX  RATE,  SUCH  PURSE  ENHANCEMENT SHALL BE FURTHER
ENHANCED IN AN AMOUNT IN PROPORTION TO THE  AFOREMENTIONED  INCREASE  OR
DECREASE  IN  RELATION  TO  THE  PRESENT  VENDOR'S  FEE OR TAX RATE. THE
CURRENT PROPORTION OF THE NET WIN DUE THE PURSES AND BREEDER'S  FUND  IS
EQUAL  TO  A FIXED PERCENTAGE OF THE TWO THOUSAND FOURTEEN VENDOR'S FEE.
One percent of the gross purse enhancement amount, as required  by  this
subdivision,  shall  be  paid to the gaming commission to be used exclu-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10597-01-5
              

A. 7170                             2

sively 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 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 subdivision,
shall be distributed to the appropriate breeding fund for the manner  of
racing  conducted  by  such  track PROVIDED THAT IN THE EVENT A TRACK IS
GRANTED SUBSEQUENT TO TWO THOUSAND  FOURTEEN  EITHER  (A)  AN  INCREASED
VENDOR'S  FEE, OR (B) A DECREASE IN THE TAX RATE, SUCH PURSE ENHANCEMENT
SHALL BE FURTHER ENHANCED IN AN AMOUNT IN PROPORTION  TO  THE  AFOREMEN-
TIONED  INCREASE  OR DECREASE IN RELATION TO THE PRESENT VENDOR'S FEE OR
TAX RATE. THE CURRENT PROPORTION OF THE  NET  WIN  DUE  THE  PURSES  AND
BREEDER'S  FUND IS EQUAL TO A FIXED PERCENTAGE OF THE TWO THOUSAND FOUR-
TEEN VENDOR'S FEE.
  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 2. This act shall take effect immediately.