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

                                  7028

                            I N  S E N A T E

                             March 17, 2016
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

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law is REPEALED.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of section 1612 of the tax law is REPEALED.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

S. 7028                             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.