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

                                  9206

                          I N  A S S E M B L Y

                            February 3, 2016
                               ___________

Introduced by M. of A. PRETLOW -- Multi-Sponsored by -- M. of A. FITZPA-
  TRICK,  SOLAGES  --  read once and referred to the Committee on Racing
  and Wagering

AN ACT to amend the tax law, in relation to video lottery gaming in  the
  counties  of  Suffolk  and Nassau; and to repeal certain provisions of
  such law relating thereto

  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law is REPEALED.
  S 2. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law is REPEALED.
  S 3. Subparagraph (iii) of paragraph 1 of  subdivision  b  of  section
1612  of  the  tax law, as separately amended by chapters 174 and 175 of
the laws of 2013, 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;  provided, however, except for a
vendor track located west of State Route 14  from  Sodus  Point  to  the
Pennsylvania  border within New York shall continue to receive a market-
ing allowance of ten percent on total  revenue  wagered  at  the  vendor

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

                                                           LBD08970-01-5

A. 9206                             2

track  after  payout for prizes in excess of one hundred million dollars
annually [provided, however, a vendor that receives a vendor fee  pursu-
ant 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. In establishing the vendor fee,].
  S  4.  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
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 oper-
ators 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  breed-
ing  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 appropri-
ate 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 5. Subdivision f-1 of section 1612 of the tax law is REPEALED.
  S 6. This act shall take effect immediately.