Assembly Bill A2034

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2034
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2017
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 AN ACT to amend the tax law, in relation  to  video  lottery  gaming  at
   commercial bowling establishments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1.   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
 track  after  payout for prizes in excess of one hundred million dollars
 annually provided, however, a vendor that receives a vendor fee pursuant
 to clause (G-1) of subparagraph (ii) of this paragraph shall receive  an
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04497-01-7

 A. 2034                             2
 
 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,] A COMMERCIAL BOWLING ESTAB-
 LISHMENT  THAT  IS  AUTHORIZED BY SECTION SIXTEEN HUNDRED SEVENTEEN-A OF
 THIS ARTICLE SHALL BE ENTITLED TO A VENDOR FEE OF NOT  LESS  THAN  20.25
 PERCENT  IN THE FIRST, SECOND AND THIRD YEARS OF VIDEO LOTTERY GAMING AT
 SUCH COMMERCIAL BOWLING ESTABLISHMENT, 20.0 PERCENT IN  THE  FOURTH  AND
 FIFTH YEARS AND 17.5 PERCENT IN ALL SUBSEQUENT YEARS.
   § 2. Section 1617-a of the tax law is amended by adding a new subdivi-
 sion a-1 to read as follows:
   A-1.  THE  DIVISION  OF  THE  LOTTERY IS HEREBY AUTHORIZED TO LICENSE,
 PURSUANT TO RULES AND REGULATIONS TO BE PROMULGATED BY THE  DIVISION  OF
 THE LOTTERY, THE OPERATION OF VIDEO LOTTERY GAMING AT COMMERCIAL BOWLING
 ESTABLISHMENTS THAT ARE DULY LICENSED TO SERVE ALCOHOLIC BEVERAGES, HAVE
 SEGREGATED  AREAS THAT PROHIBIT ACCESS TO PERSONS UNDER TWENTY-ONE YEARS
 OF AGE, AND THAT ARE LOCATED IN A COUNTY  OR  COUNTIES  IN  WHICH  VIDEO
 LOTTERY GAMING HAS BEEN AUTHORIZED PURSUANT TO LOCAL LAW. SUCH RULES AND
 REGULATIONS  SHALL PROVIDE, AS A CONDITION OF LICENSURE, THAT SUCH BOWL-
 ING ESTABLISHMENTS TO BE LICENSED ARE CERTIFIED TO BE IN COMPLIANCE WITH
 ALL STATE AND LOCAL FIRE AND SAFETY CODES, THAT THE DIVISION IS AFFORDED
 ADEQUATE SPACE, INFRASTRUCTURE, AND AMENITIES CONSISTENT  WITH  INDUSTRY
 STANDARDS  FOR  SUCH  VIDEO LOTTERY GAMING OPERATIONS AND TO ENSURE THAT
 PERSONS UNDER TWENTY-ONE YEARS OF AGE ARE PROHIBITED  ACCESS  FROM  SUCH
 AREAS,  THAT EMPLOYEES INVOLVED IN THE OPERATION OF VIDEO LOTTERY GAMING
 PURSUANT TO THIS SECTION ARE LICENSED BY THE RACING AND WAGERING  BOARD,
 AND  SUCH  OTHER  TERMS  AND CONDITIONS OF LICENSURE AS THE DIVISION MAY
 ESTABLISH.   NOTWITHSTANDING ANY INCONSISTENT PROVISION  OF  LAW,  VIDEO
 LOTTERY  GAMING  AT  A COMMERCIAL BOWLING ESTABLISHMENT PURSUANT TO THIS
 SECTION SHALL BE DEEMED AN APPROVED ACTIVITY FOR SUCH BOWLING ESTABLISH-
 MENT UNDER THE RELEVANT CITY, COUNTY,  TOWN,  OR  VILLAGE  LAND  USE  OR
 ZONING ORDINANCES, RULES, OR REGULATIONS. NO BOWLING ESTABLISHMENT OPER-
 ATING  VIDEO  LOTTERY  GAMING  PURSUANT  TO  THIS SECTION MAY HOUSE SUCH
 GAMING ACTIVITY IN A STRUCTURE DEEMED OR APPROVED  BY  THE  DIVISION  AS
 "TEMPORARY" FOR A DURATION OF LONGER THAN EIGHTEEN MONTHS.
   § 3. This act shall take effect immediately.