BILL NUMBER:  S8019

 TITLE OF BILL :  An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to contribution requirements for the capital
acquisition fund

 PURPOSE :

The purpose of this bill is to provide statutory relief for Regional
Off-Track Betting Corporations (OTBs), ensuring that they will be able
to provide payments to the localities and municipalities for which
they were created to help.

 SUMMARY OF PROVISIONS :

This bill would provide that, of the amount from each OTB's
contribution to its capital acquisition fund from its total
pari-mutuel wagering pools on a quarterly basis, up to 75 percent of
such amount may be used by the OTB for any corporate purpose.

Each OTB would be required to submit a financial plan for the use of
such funds to the New York State Gaming Commission for approval by
September 30th of each year. Such plan would include the amount and
specific use of such funds, and any additional information that the
New York State Gaming Commission deems appropriate.

              

 JUSTIFICATION :

As Regional Off-Track Betting Corporations continue to consolidate
services to better serve their constituencies the need for capital
expenditures has been replaced with the need to modernize the consumer
experience, maintain and grow jobs, as well as maximize much needed
revenues for local governments. OTBs realize the importance of
maintaining a capital acquisition fund ("CAF") and current law ensures
that OTBs will have capital reserves by virtue of the 1% contribution
of total pari-mutuel wagering pools on a quarterly basis.

This provision would simply redistribute the 1% between retaining a
CAF, and allowing for other corporate purposes, i.e. job retention and
increasing municipal revenues. This provision has no impact on amounts
held in existing OTB CAF accounts.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.