NY State Senate Bill 2019-S7866A

Senate Bill S7866A

2019-2020 Legislative Session

Provides that certain funds wagered on video lottery gaming shall be utilized for the purpose of funding capital expenditures of the metropolitan transportation authority

download bill text pdf

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 10, 2020	print number 7866a
Mar 10, 2020	amend and recommit to racing, gaming and wagering
Feb 27, 2020	referred to racing, gaming and wagering

Bill Amendments

Original

A (Active)

2019-S7866 - Details

Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Tax Law
Laws Affected:: Amd §1612, Tax L; add §99-hh, St Fin L

2019-S7866 - Summary

Provides that certain funds wagered on video lottery gaming shall be utilized for the purpose of funding capital expenditures of the metropolitan transportation authority; establishes the MTA support fund.

2019-S7866 - Sponsor Memo

                                
 
BILL NUMBER: S7866

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the tax law, in relation to the investment of funds
wagered on video lottery gaming; and to amend the state finance law, in
relation to establishing the MTA support fund

 
SUMMARY OF PROVISIONS:

Section 1. Amends Subdivisions f and f-1 of section 1612 of the tax law
transferring revenues from video lottery terminals (VLTs) operating at
Aqueduct Racino, and Nassau or Suffolk facilities from the horse racing
industry, to fund the Metropolitan Transportation Authority. At Aqueduct
Racino, sixteen percent of the total wagered after payout of prizes
shall be given to the "MTA support fund". In Nassau and Suffolk five
percent of the total wagered after payout of winnings shall be given to
the MTA support fund. The newly created "MTA support fund" is mandated
to fund capital expenditures for the MTA.

Section 2. Amends the opening paragraph of paragraph 2 of subdivision b

of section 1612 of the tax law, mandating all racinos with the exception
of racinos at Aqueduct and Nassau or Suffolk, transfer current funds
subsidizing the horse racing industry, to fund the Metropolitan Trans-
portation Authority. Twelve and a half percent of the total wagered
after payout of prizes shall be given to the "MTA support fund".

Section 3. Amends subdivision h of section 1612 of the tax law mandating
all VLTs in Orange County currently subsidizing the horse racing indus-
try, to now fund the Metropolitan Authority.

Section 4. Amends state finance law by adding a new section 99-10h,
which creates the MTA support fund. Section 5: Takes effect immediately

 
JUSTIFICATION:

The allowance of Video Lottery Terminals (VLTs) aka slot machines in New
York State has saved and continues to subsidize the horse racing indus-
try. The intent of these subsidies were to increase attendance and
subsequently, revenues. The evidence of success is lacking though. For
example, the Democrat and Chronicle reports from 2003 to 2017, New York
State harness tracks have tripled purses to approximately $120 million a
year largely because of the installation of (VLTs) in track locations
creating "Racinos". Still attendance and betting numbers are down.

Why should we continue to subsidize an industry that cannot stand on its
two feet? Our bill proposes an end to the 100s of millions of dollars a
year in horse racing subsidies. Instead our bill mandates that VLT
profits originally used to subsidize horse racing now are used to fix
the crumbling infrastructure of the Metropolitan Transit Authority.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S7866 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7866
 
                             I N  S E N A T E
 
                             February 27, 2020
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- 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 the investment of funds
   wagered on video lottery gaming; and to amend the state  finance  law,
   in relation to establishing the MTA support fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions f and f-1 of section  1612  of  the  tax  law,
 subdivision f as amended by chapter 174 of the laws of 2013, paragraph 1
 of subdivision f as amended by section 2 of part OO of chapter 59 of the
 laws  of 2014, and subdivision f-1 as amended by chapter 175 of the laws
 of 2013, are amended to read as follows:
   f. As consideration for the operation  of  the  video  lottery  gaming
 facility  at Aqueduct racetrack, the division shall cause the investment
 [in the racing industry of the following percentages of the  vendor  fee
 to be deposited or paid, as follows:
   1.  Six  and  one-half  percent  of  the total wagered after payout of
 prizes for the first year of operation of video lottery gaming at  Aque-
 duct  racetrack,  seven  percent  of  the  total wagered after payout of
 prizes for the second year of operation, and seven and one-half  percent
 of the total wagered after payout of prizes for the third year of opera-
 tion  and  thereafter,  for  the purpose of enhancing purses at Aqueduct
 racetrack, Belmont Park racetrack and Saratoga race course. 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 on a pro rata basis in accordance with the  amounts  originally
 contributed  and  shall  be  used for the purpose of enhancing purses at
 such tracks. One and one-half percent of  the  gross  purse  enhancement
 amount,  as  required  by  this subdivision, shall be paid to an account
 established pursuant to section two hundred twenty-one-a of the  racing,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15392-02-0

 S. 7866                             2

 pari-mutuel  wagering and breeding law to be used exclusively to provide
 health insurance for jockeys.
   2.  One  percent  of  the total wagered after payout of prizes for the
 first year of operation of video lottery gaming at  Aqueduct  racetrack,
 one  and one-quarter percent of the total wagered after payout of prizes
 for the second year of operation, and one and one-half  percent  of  the
 total wagered after payout of prizes for the third year of operation and
 thereafter,  for  an  appropriate breeding fund for the manner of racing
 conducted at Aqueduct racetrack, Belmont  Park  racetrack  and  Saratoga
 race course.
   3. Four percent of the total revenue wagered after payout of prizes to
 be  deposited  into an account of the franchised corporation established
 pursuant to section two hundred six of the racing, pari-mutuel  wagering
 and  breeding law to be used for capital expenditures in maintaining and
 upgrading Aqueduct racetrack, Belmont Park racetrack and  Saratoga  race
 course.
   4.  Three percent of the total revenue wagered after payout for prizes
 to be deposited into an account of  the  franchised  corporation  estab-
 lished  pursuant  to  section two hundred six of the racing, pari-mutuel
 wagering and breeding law to be used  for  general  thoroughbred  racing
 operations  at  Aqueduct  racetrack, Belmont Park racetrack and Saratoga
 race course.
   5. Paragraphs one, two, three and four of this  subdivision  shall  be
 known  collectively as the "racing support payments"] OF SIXTEEN PERCENT
 OF THE TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE THIRD YEAR OF OPERA-
 TION AND THEREAFTER, FOR THE PURPOSE OF FUNDING THE CAPITAL EXPENDITURES
 OF THE METROPOLITAN TRANSPORTATION AUTHORITY. SUCH FUNDS SHALL BE PLACED
 INTO THE MTA SUPPORT FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-HH
 OF THE STATE FINANCE LAW.
   f-1. As consideration for operation of A video lottery gaming facility
 located in the county of Nassau or Suffolk and operated by a corporation
 established pursuant to section five hundred two of the racing, pari-mu-
 tuel wagering and breeding law, the division shall cause the  investment
 [in  the  racing industry of the following percentages of the vendor fee
 to be deposited or paid as follows:
   1. Two and three tenths percent of the total wagered after  payout  of
 prizes  for  the  purpose  of  enhancing  purses  at Aqueduct racetrack,
 Belmont Park racetrack and Saratoga race course, provided, however, that
 any amount that is in excess of the amount necessary to  maintain  purse
 support  from  video  lottery gaming at Aqueduct racetrack, Belmont Park
 racetrack and Saratoga race course at the same  level  realized  in  two
 thousand  thirteen,  to  be adjusted by the consumer price index for all
 urban consumers, as published annually by the United  States  department
 of  labor,  bureau of labor statistics, shall instead be returned to the
 commission.
   2. five tenths percent of the total wagered after payout of prizes for
 the appropriate breeding fund for the manner of racing at Aqueduct race-
 track, Belmont Park racetrack and Saratoga race course, provided, howev-
 er, that any amount that is in excess of the amount necessary  to  main-
 tain  payments  from  video  lottery gaming at Aqueduct racetrack at the
 same level realized in two thousand thirteen,  to  be  adjusted  by  the
 consumer  price  index for all urban consumers, as published annually by
 the United States department of labor, bureau of labor statistics, shall
 instead be returned to the commission.
   3. one and three tenths percent of the  total  revenue  wagered  after
 payout  of  prizes  to  be  deposited  into an account of the franchised

 S. 7866                             3

 corporation established pursuant to  section  two  hundred  six  of  the
 racing,  pari-mutuel  wagering  and  breeding law to be used for capital
 expenditures in maintaining and upgrading  Aqueduct  racetrack,  Belmont
 Park  racetrack  and  Saratoga  race course, provided, however, that any
 amount that is in excess of the amount necessary  to  maintain  payments
 for capital expenditures from video lottery gaming at Aqueduct racetrack
 at  the  same level realized in two thousand thirteen, to be adjusted by
 the consumer price index for all urban consumers, as published  annually
 by  the  United  States department of labor, bureau of labor statistics,
 shall instead be returned to the commission.
   4. Nine tenths percent of the total revenue wagered after  payout  for
 prizes  to  be  deposited  into an account of the franchised corporation
 established pursuant to section two hundred six of the racing,  pari-mu-
 tuel  wagering  and  breeding  law  to  be used for general thoroughbred
 racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
 Saratoga  race  course,  provided,  however,  that any amount that is in
 excess  of  the  amount  necessary  to  maintain  payments  for  general
 thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
 racetrack at the same level realized in two  thousand  thirteen,  to  be
 adjusted  by  the  consumer  price  index  for  all  urban consumers, as
 published annually by the United States department of labor,  bureau  of
 labor  statistics,  shall instead be returned to the commission] OF FIVE
 PERCENT OF THE TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE  THIRD  YEAR
 OF  OPERATION  AND  THEREAFTER,  FOR  THE PURPOSE OF FUNDING THE CAPITAL
 EXPENDITURES OF THE METROPOLITAN TRANSPORTATION  AUTHORITY.  SUCH  FUNDS
 SHALL  BE  PLACED  INTO  THE  MTA  SUPPORT  FUND ESTABLISHED PURSUANT TO
 SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW.
   § 2. The opening paragraph of paragraph 2 of subdivision b of  section
 1612  of the tax law, as amended by section 2 of part S of chapter 39 of
 the laws of 2019, is amended to read as follows:
   As consideration for the operation of a video lottery gaming facility,
 the division, shall cause the investment in the  [racing  industry]  MTA
 SUPPORT  FUND  of a portion of the vendor fee received pursuant to para-
 graph one of this subdivision in the manner set forth in  this  subdivi-
 sion.   With the exception of Aqueduct racetrack, a video lottery gaming
 facility authorized pursuant to  paragraph  five  of  subdivision  a  of
 section sixteen hundred seventeen-a of this article or a facility in the
 county of Nassau or Suffolk operated by a corporation established pursu-
 ant  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), (B-1), (B-2), (C), or (D) 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  operators  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  breeding  law  to  be  used exclusively to provide health

 S. 7866                             4

 insurance for jockeys. In addition, with the exception of Aqueduct race-
 track, a video lottery gaming facility authorized pursuant to  paragraph
 five  of  subdivision  a  of section sixteen hundred seventeen-a of this
 article  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), (B-1), (B-2), (C), or (D)
 of subparagraph (ii) of paragraph one  of  this  subdivision,  shall  be
 distributed  to  the  appropriate breeding fund for the manner of racing
 conducted by such track] TWELVE AND ONE-HALF PERCENT OF THE TOTAL REVEN-
 UE WAGERED AFTER PAYOUT OF PRIZES FOR THE THIRD YEAR  OF  OPERATION  AND
 THEREAFTER,  FOR  THE PURPOSE OF FUNDING THE CAPITAL EXPENDITURES OF THE
 METROPOLITAN TRANSPORTATION AUTHORITY. SUCH FUNDS SHALL BE  PLACED  INTO
 THE  MTA  SUPPORT FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-HH OF
 THE STATE FINANCE LAW.
   § 3. Subdivision h of section 1612 of  the  tax  law,  as  amended  by
 section  3  of  part  S of chapter 39 of the laws of 2019, is amended to
 read as follows:
   h. As consideration for the operation of a video lottery gaming facil-
 ity located in Orange county, the division shall  cause  the  investment
 [in  the  racing industry at the following amount from the vendor fee to
 be paid as follows:
   As amount to the horsemen for purses at a licensed racetrack in Sulli-
 van county in an amount equal to eight and three-quarters percent of the
 total revenue wagered at the video lottery gaming  facility,  after  pay
 out  for  prizes.  The  facility located in Orange county, as defined in
 paragraph five of subdivision a of section sixteen  hundred  seventeen-a
 of  this  article  shall  pay to the horsemen at a licensed racetrack at
 Yonkers racetrack an amount to maintain purses for such horsemen at  the
 same  dollar levels realized in two thousand eighteen, to be adjusted by
 the consumer price index for all urban consumers, as published  annually
 by  the United States department of labor bureau of labor statistics. In
 addition, one and one-quarter percent of total revenue  wagered  at  the
 video  lottery gaming facility after pay out for prizes, received pursu-
 ant to clause (B) of subparagraph (ii) of paragraph one of subdivision b
 of this section, shall be distributed to the appropriate  breeding  fund
 for  the  manner  of  racing conducted by such track. In no circumstance
 shall net proceeds of the lottery, including  the  proceeds  from  video
 lottery  gaming,  be used for the payment of non-lottery expenses of the
 gaming commission, administrative or otherwise] OF TWELVE  AND  ONE-HALF
 PERCENT  OF  THE  TOTAL  REVENUE  WAGERED AFTER PAYOUT OF PRIZES FOR THE
 THIRD YEAR OF OPERATION AND THEREAFTER, FOR THE PURPOSE OF  FUNDING  THE
 CAPITAL  EXPENDITURES OF THE METROPOLITAN TRANSPORTATION AUTHORITY. SUCH
 FUNDS SHALL BE PLACED INTO THE MTA SUPPORT FUND ESTABLISHED PURSUANT  TO
 SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW.
   § 4. The state finance law is amended by adding a new section 99-hh to
 read as follows:
   § 99-HH. MTA SUPPORT FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT
 CUSTODY  OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMPTROLLER
 A FUND TO BE KNOWN AS THE "MTA SUPPORT FUND".
   2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO SUBDI-
 VISIONS F AND F-1 OF SECTION SIXTEEN HUNDRED TWELVE OF THE TAX  LAW  AND
 ALL  OTHER MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY
 OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS  SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE

 S. 7866                             5
 
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  MONIES  OF  THE  FUND  SHALL  BE EXPENDED ONLY BY THE METROPOLITAN
 TRANSPORTATION AUTHORITY FOR THE PURPOSE OF FUNDING CAPITAL EXPENDITURES
 OF THE AUTHORITY.
   4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON  VOUCHERS APPROVED AND CERTIFIED BY THE CHAIRMAN OF
 THE METROPOLITAN TRANSPORTATION AUTHORITY.
   5. TO THE EXTENT PRACTICABLE, THE CHAIRMAN OF THE METROPOLITAN  TRANS-
 PORTATION  AUTHORITY  SHALL  ENSURE  THAT  ALL  MONIES RECEIVED DURING A
 FISCAL YEAR ARE EXPENDED PRIOR TO THE END OF THAT FISCAL YEAR.
   § 5. This act shall take effect immediately.

2019-S7866A (ACTIVE) - Details

Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Tax Law
Laws Affected:: Amd §1612, Tax L; add §99-hh, St Fin L

2019-S7866A (ACTIVE) - Summary

2019-S7866A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7866A

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the tax law, in relation to the investment of funds
wagered on video lottery gaming; and to amend the state finance law, in
relation to establishing the MTA support fund

 
SUMMARY OF PROVISIONS:

Section 1. Amends Subdivisions f and f-1 of section 1612 of the tax law
transferring revenues from video lottery terminals (VLTs) operating at
Aqueduct Racino, and Nassau or Suffolk facilities from the horse racing
industry, to fund the Metropolitan Transportation Authority. At Aqueduct
Racino, sixteen percent of the total wagered after payout of prizes
shall be given to the "MTA support fund". In Nassau and Suffolk five
percent of the total wagered after payout of winnings shall be given to
the MTA support fund. The newly created "MTA support fund" is mandated
to fund capital expenditures for the MTA.

Section 2. Amends the opening paragraph of paragraph 2 of subdivision b

of section 1612 of the tax law, mandating all racinos with the exception
of racinos at Aqueduct and Nassau or Suffolk, transfer current funds
subsidizing the horse racing industry, to fund the Metropolitan Trans-
portation Authority. Twelve and a half percent of the total wagered
after payout of prizes shall be given to the "MTA support fund".

Section 3. Amends subdivision h of section 1612 of the tax law mandating
all VLTs in Orange County currently subsidizing the horse racing indus-
try, to now fund the Metropolitan Authority.

Section 4. Amends state finance law by adding a new section 99-hh, which
creates the MTA support fund. Section 5: Takes effect immediately

 
JUSTIFICATION:

The allowance of Video Lottery Terminals (VLTs) aka slot machines in New
York State has saved and continues to subsidize the horse racing indus-
try. The intent of these subsidies were to increase attendance and
subsequently, revenues. The evidence of success is lacking though. For
example, the Democrat and Chronicle reports from 2003 to 2017, New York
State harness tracks have tripled purses to approximately $120 million a
year largely because of the installation of (VLTs) in track locations
creating "Racinos". Still attendance and betting numbers are down.

Why should we continue to subsidize an industry that cannot stand on its
two feet? Our bill proposes an end to the 100s of millions of dollars a
year in horse racing subsidies. Instead our bill mandates that VLT
profits originally used to subsidize horse racing now are used to fix
the crumbling infrastructure of the Metropolitan Transit Authority.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S7866A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7866--A
 
                             I N  S E N A T E
 
                             February 27, 2020
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Racing, Gaming and  Wager-
   ing  --  committee  discharged,  bill  amended,  ordered  reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation  to  the  investment  of  funds
   wagered  on  video lottery gaming; and to amend the state finance law,
   in relation to establishing the MTA support fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions  f  and  f-1 of section 1612 of the tax law,
 subdivision f as amended by chapter 174 of the laws of 2013, paragraph 1
 of subdivision f as amended by section 2 of part OO of chapter 59 of the
 laws of 2014, and subdivision f-1 as amended by chapter 175 of the  laws
 of 2013, are amended to read as follows:
   f.  As  consideration  for  the  operation of the video lottery gaming
 facility at Aqueduct racetrack, the division shall cause the  investment
 in the racing industry of the following percentages of the vendor fee to
 be deposited or paid, as follows:
   1.  [Six  and  one-half  percent  of the total wagered after payout of
 prizes for the first year of operation of video lottery gaming at  Aque-
 duct  racetrack,  seven  percent  of  the  total wagered after payout of
 prizes for the second year of operation, and seven and one-half  percent
 of the total wagered after payout of prizes for the third year of opera-
 tion  and  thereafter,  for  the purpose of enhancing purses at Aqueduct
 racetrack, Belmont Park racetrack and Saratoga race course. 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 on a pro rata basis in accordance with the  amounts  originally
 contributed  and  shall  be  used for the purpose of enhancing purses at
 such tracks. One and one-half percent of  the  gross  purse  enhancement
 amount,  as  required  by  this subdivision, shall be paid to an account
 established pursuant to section two hundred twenty-one-a of the  racing,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15392-03-0

 S. 7866--A                          2

 pari-mutuel  wagering and breeding law to be used exclusively to provide
 health insurance for jockeys.
   2.]  One  percent  of the total wagered after payout of prizes for the
 first year of operation of video lottery gaming at  Aqueduct  racetrack,
 one  and one-quarter percent of the total wagered after payout of prizes
 for the second year of operation, and one and one-half  percent  of  the
 total wagered after payout of prizes for the third year of operation and
 thereafter,  for  an  appropriate breeding fund for the manner of racing
 conducted at Aqueduct racetrack, Belmont  Park  racetrack  and  Saratoga
 race course.
   [3.  Four  percent of the total revenue wagered after payout of prizes
 to be deposited into an account of  the  franchised  corporation  estab-
 lished  pursuant  to  section two hundred six of the racing, pari-mutuel
 wagering and breeding law to be used for capital expenditures  in  main-
 taining  and  upgrading  Aqueduct  racetrack, Belmont Park racetrack and
 Saratoga race course.
   4. Three percent of the total revenue wagered after payout for  prizes
 to  be  deposited  into  an account of the franchised corporation estab-
 lished pursuant to section two hundred six of  the  racing,  pari-mutuel
 wagering  and  breeding  law  to be used for general thoroughbred racing
 operations at Aqueduct racetrack, Belmont Park  racetrack  and  Saratoga
 race course.
   5.  Paragraphs] 2. PARAGRAPH one[, two, three and four] of this subdi-
 vision shall be known [collectively] as the "racing  support  payments".
 AS  CONSIDERATION FOR THE OPERATION OF VIDEO LOTTERY TERMINALS, FOURTEEN
 AND ONE-HALF PERCENT OF THE TOTAL WAGERED AFTER PAYOUT OF PRIZES FOR THE
 THIRD YEAR OF OPERATION AND THEREAFTER, FOR THE PURPOSE OF  FUNDING  THE
 CAPITAL  EXPENDITURES OF THE METROPOLITAN TRANSPORTATION AUTHORITY. SUCH
 FUNDS SHALL BE PLACED INTO THE MTA SUPPORT FUND ESTABLISHED PURSUANT  TO
 SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW.
   f-1. As consideration for operation of A video lottery gaming facility
 located in the county of Nassau or Suffolk and operated by a corporation
 established pursuant to section five hundred two of the racing, pari-mu-
 tuel  wagering and breeding law, the division shall cause the investment
 in the racing industry of the following percentages of the vendor fee to
 be deposited or paid as follows:
   1. [Two and three tenths percent of the total wagered after payout  of
 prizes  for  the  purpose  of  enhancing  purses  at Aqueduct racetrack,
 Belmont Park racetrack and Saratoga race course, provided, however, that
 any amount that is in excess of the amount necessary to  maintain  purse
 support  from  video  lottery gaming at Aqueduct racetrack, Belmont Park
 racetrack and Saratoga race course at the same  level  realized  in  two
 thousand  thirteen,  to  be adjusted by the consumer price index for all
 urban consumers, as published annually by the United  States  department
 of  labor,  bureau of labor statistics, shall instead be returned to the
 commission.
   2.] five tenths percent of the total wagered after  payout  of  prizes
 for  the  appropriate breeding fund for the manner of racing at Aqueduct
 racetrack, Belmont Park racetrack and Saratoga  race  course,  provided,
 however,  that  any  amount that is in excess of the amount necessary to
 maintain payments from video lottery gaming at Aqueduct racetrack at the
 same level realized in two thousand thirteen,  to  be  adjusted  by  the
 consumer  price  index for all urban consumers, as published annually by
 the United States department of labor, bureau of labor statistics, shall
 instead be returned to the commission.

 S. 7866--A                          3
 
   [3. one and three tenths percent of the total  revenue  wagered  after
 payout  of  prizes  to  be  deposited  into an account of the franchised
 corporation established pursuant to  section  two  hundred  six  of  the
 racing,  pari-mutuel  wagering  and  breeding law to be used for capital
 expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
 Park racetrack and Saratoga race course,  provided,  however,  that  any
 amount  that  is  in excess of the amount necessary to maintain payments
 for capital expenditures from video lottery gaming at Aqueduct racetrack
 at the same level realized in two thousand thirteen, to be  adjusted  by
 the  consumer price index for all urban consumers, as published annually
 by the United States department of labor, bureau  of  labor  statistics,
 shall instead be returned to the commission.
   4.  Nine  tenths percent of the total revenue wagered after payout for
 prizes to be deposited into an account  of  the  franchised  corporation
 established  pursuant to section two hundred six of the racing, pari-mu-
 tuel wagering and breeding law  to  be  used  for  general  thoroughbred
 racing  operations  at  Aqueduct  racetrack,  Belmont Park racetrack and
 Saratoga race course, provided, however, that  any  amount  that  is  in
 excess  of  the  amount  necessary  to  maintain  payments  for  general
 thoroughbred racing operations from video  lottery  gaming  at  Aqueduct
 racetrack  at  the  same  level realized in two thousand thirteen, to be
 adjusted by the  consumer  price  index  for  all  urban  consumers,  as
 published  annually  by the United States department of labor, bureau of
 labor statistics, shall instead be returned to the commission]
   2. FOUR AND ONE-HALF PERCENT OF THE  TOTAL  WAGERED  AFTER  PAYOUT  OF
 PRIZES  FOR  THE THIRD YEAR OF OPERATION AND THEREAFTER, FOR THE PURPOSE
 OF FUNDING THE CAPITAL EXPENDITURES OF THE  METROPOLITAN  TRANSPORTATION
 AUTHORITY.  SUCH  FUNDS SHALL BE PLACED INTO THE MTA SUPPORT FUND ESTAB-
 LISHED PURSUANT TO SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW.
   § 2. The opening paragraph of paragraph 2 of subdivision b of  section
 1612  of the tax law, as amended by section 2 of part S of chapter 39 of
 the laws of 2019, is amended to read as follows:
   As consideration for the operation of a video lottery gaming facility,
 the division, shall cause the investment in the racing industry AND  THE
 MTA  SUPPORT  FUND  of  a portion of the vendor fee received pursuant to
 paragraph one of this subdivision in the manner set forth in this subdi-
 vision.   With the exception of  Aqueduct  racetrack,  a  video  lottery
 gaming  facility  authorized pursuant to paragraph five of subdivision a
 of section sixteen hundred seventeen-a of this article 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), (B-1), (B-2), (C), or (D) of
 subparagraph (ii) of paragraph one of this subdivision, for the  purpose
 of  [enhancing purses at such track] FUNDING CAPITAL EXPENDITURES OF THE
 METROPOLITAN TRANSPORTATION AUTHORITY, 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  operators  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

 S. 7866--A                          4

 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  breeding  law  to  be  used exclusively to provide health
 insurance  for  jockeys]  ELEVEN  AND  ONE-QUARTER  PERCENT OF THE TOTAL
 REVENUE WAGERED AFTER PAYOUT OF PRIZES FOR THE THIRD YEAR  OF  OPERATION
 AND  THEREAFTER,  FOR THE PURPOSE OF FUNDING THE CAPITAL EXPENDITURES OF
 THE METROPOLITAN TRANSPORTATION AUTHORITY. SUCH FUNDS  SHALL  BE  PLACED
 INTO THE MTA SUPPORT FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-HH
 OF  THE  STATE  FINANCE LAW. In addition, with the exception of Aqueduct
 racetrack, a video lottery gaming facility authorized pursuant to  para-
 graph  five  of  subdivision a of section sixteen hundred seventeen-a of
 this article 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), (B-1), (B-2), (C), or (D)
 of subparagraph (ii) of paragraph one  of  this  subdivision,  shall  be
 distributed  to  the  appropriate breeding fund for the manner of racing
 conducted by such track.
   § 3. Subdivision h of section 1612 of  the  tax  law,  as  amended  by
 section  3  of  part  S of chapter 39 of the laws of 2019, is amended to
 read as follows:
   h. As consideration for the operation of a video lottery gaming facil-
 ity located in Orange county, the division shall cause the investment in
 the racing industry at the following amount from the vendor  fee  to  be
 paid as follows:
   [As  amount  to  the  horsemen  for  purses at a licensed racetrack in
 Sullivan county in an amount equal to eight and  three-quarters  percent
 of the total revenue wagered at the video lottery gaming facility, after
 pay out for prizes. The facility located in Orange county, as defined in
 paragraph  five  of subdivision a of section sixteen hundred seventeen-a
 of this article shall pay to the horsemen at  a  licensed  racetrack  at
 Yonkers  racetrack an amount to maintain purses for such horsemen at the
 same dollar levels realized in two thousand eighteen, to be adjusted  by
 the  consumer price index for all urban consumers, as published annually
 by the United States department of labor bureau of labor statistics.  In
 addition,]  one  and one-quarter percent of total revenue wagered at the
 video lottery gaming facility after pay out for prizes, received  pursu-
 ant to clause (B) of subparagraph (ii) of paragraph one of subdivision b
 of  this  section, shall be distributed to the appropriate breeding fund
 for the manner of racing conducted by such  track.  In  no  circumstance
 shall  net  proceeds  of  the lottery, including the proceeds from video
 lottery gaming, be used for the payment of non-lottery expenses  of  the
 gaming  commission,  administrative  or otherwise ELEVEN AND ONE-QUARTER
 PERCENT OF THE TOTAL REVENUE WAGERED AFTER  PAYOUT  OF  PRIZES  FOR  THE
 THIRD  YEAR  OF OPERATION AND THEREAFTER, FOR THE PURPOSE OF FUNDING THE
 CAPITAL EXPENDITURES OF THE METROPOLITAN TRANSPORTATION AUTHORITY.  SUCH
 FUNDS  SHALL BE PLACED INTO THE MTA SUPPORT FUND ESTABLISHED PURSUANT TO
 SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW.
   § 4. The state finance law is amended by adding a new section 99-hh to
 read as follows:
   § 99-HH. MTA SUPPORT FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT
 CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE  COMPTROLLER
 A FUND TO BE KNOWN AS THE "MTA SUPPORT FUND".
   2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO SUBDI-
 VISIONS  F  AND F-1 OF SECTION SIXTEEN HUNDRED TWELVE OF THE TAX LAW AND

 S. 7866--A                          5
 
 ALL OTHER MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM  ANY
 OTHER  FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  MONIES  OF  THE  FUND  SHALL  BE EXPENDED ONLY BY THE METROPOLITAN
 TRANSPORTATION AUTHORITY FOR THE PURPOSE OF FUNDING CAPITAL EXPENDITURES
 OF THE AUTHORITY.
   4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON  VOUCHERS APPROVED AND CERTIFIED BY THE CHAIRMAN OF
 THE METROPOLITAN TRANSPORTATION AUTHORITY.
   5. TO THE EXTENT PRACTICABLE, THE CHAIRMAN OF THE METROPOLITAN  TRANS-
 PORTATION  AUTHORITY  SHALL  ENSURE  THAT  ALL  MONIES RECEIVED DURING A
 FISCAL YEAR ARE EXPENDED PRIOR TO THE END OF THAT FISCAL YEAR.
   § 5. This act shall take effect immediately.

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