S T A T E O F N E W Y O R K
________________________________________________________________________
5187
2015-2016 Regular Sessions
I N A S S E M B L Y
February 12, 2015
___________
Introduced by M. of A. FITZPATRICK -- read once and referred to the
Committee on Ways and Means
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law is REPEALED.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of section 1612 of the tax law is REPEALED.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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08970-01-5
A. 5187 2
Pennsylvania border within New York shall continue to receive a market-
ing allowance of ten percent on total revenue wagered at the vendor
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.