S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4594
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2019
                                ___________
 
 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 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 law is REPEALED.
   § 2. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b
 of section 1612 of the tax law is REPEALED.
   § 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.
              

                                                            LBD09013-01-9

 A. 4594                             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,].
   § 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.
   § 5. Subdivision f-1 of section 1612 of the tax law is REPEALED.
   § 6. This act shall take effect immediately.