LBD07788-01-1
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as long as such agreement is in place, and when such agreement is accom-
panied by a detailed spending plan for the corporation established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law in the Nassau region, which includes a plan for the
timely payment of liabilities due to the franchised corporation, and
when such video lottery devices are hosted by the operator of video
lottery gaming at Aqueduct racetrack on behalf of the corporation estab-
lished pursuant to section five hundred two of the racing, pari-mutuel
wagering and breeding law in the Nassau region in lieu of the develop-
ment of a facility in Nassau county as authorized by paragraph three of
THIS subdivision [a of this section]. Such agreement reached by the
parties shall identify the agency principally responsible for funding,
approving or undertaking any actions of such agreement. Provided,
however, nothing in this paragraph shall infringe upon the rights of the
corporation established pursuant to section five hundred two of the
racing, pari-mutuel wagering and breeding law in the Nassau region to
develop a facility pursuant to paragraph three of this subdivision upon
the expiration, termination, or withdrawal of such agreement[.]; AND
(8) A MAXIMUM OF THREE FACILITIES, WHICH SHALL BE VENDORS FOR ALL
PURPOSES UNDER THIS ARTICLE, WITH A TOTAL OF ONE THOUSAND ONE HUNDRED
TEN VIDEO LOTTERY GAMING DEVICES IN THE COUNTY OF BROOME, CHEMUNG,
CHENANGO, DELAWARE, ORANGE, ROCKLAND, DUTCHESS, TOMPKINS, PUTNAM OR
ULSTER AND TO BE OPERATED BY A CORPORATION ESTABLISHED PURSUANT TO
SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREED-
ING LAW, AND LOCATED WITHIN A FACILITY AUTHORIZED PURSUANT TO SECTION
ONE THOUSAND EIGHT OR ONE THOUSAND NINE OF THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW.
§ 3. 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:
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, a video lottery gaming facility author-
ized 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 breed-
ing 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. ANY VIDEO LOTTERY GAMING FACILITY IN THE CATS-
KILL REGION, AS DEFINED IN SECTION FIVE HUNDRED NINETEEN OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND TO BE OPERATED BY A
CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SHALL DEDICATE A PORTION
OF ITS VENDOR FEE FOR THE PURPOSE OF ENHANCING PURSES AT MONTICELLO
RACETRACK IN AN AMOUNT EQUAL TO EIGHT AND THREE-QUARTERS PERCENT OF THE
TOTAL REVENUE WAGERED AT THE FACILITY 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 exclu-
sively to promote and ensure equine health and safety in New York. Any
portion of such funding to the gaming commission unused during a fiscal
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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 insurance for jockeys. In addition, with the exception
of Aqueduct racetrack, a video lottery gaming facility authorized pursu-
ant to paragraph five of subdivision a of section sixteen hundred seven-
teen-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.
PROVIDED, FURTHER, THAT AS ADDITIONAL CONSIDERATION FOR THE OPERATION
OF VIDEO LOTTERY GAMING FACILITIES, THE CATSKILL REGIONAL OFF-TRACK-BET-
TING CORPORATION SHALL MAINTAIN THE SAME NUMBER OF RACE DATES AT MONTI-
CELLO RACETRACK BEING CONDUCTED AT THE TIME IT RECEIVES A LICENSE TO
CONDUCT HARNESS RACE MEETINGS AT SUCH RACETRACK.
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.
§ 4. Section 1612 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
I. AS CONSIDERATION FOR OPERATION OF A VIDEO LOTTERY GAMING FACILITY
LOCATED IN THE COUNTY OF BROOME, CHEMUNG, CHENANGO, DELAWARE, ORANGE,
ROCKLAND, DUTCHESS, TOMPKINS, PUTNAM, OR ULSTER, AND OPERATED BY A
CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE DIVISION SHALL CAUSE
THE VENDOR'S FEE TO BE DISTRIBUTED AS FOLLOWS AFTER THE PAY OUT OF
RACING SUPPORT PAYMENTS: (1) TWENTY PERCENT SHALL BE TRANSFERRED TO THE
COUNTY IN WHICH THE VENDOR FACILITY IS LOCATED; AND (2) THE REMAINDER
SHALL BE USED FOR PAYMENT OF THE COSTS OF THE CORPORATION'S FUNCTIONS
PURSUANT TO SECTION FIVE HUNDRED SIXTEEN OF THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW, AND THE NET REVENUE REMAINING AFTER PAYMENT
OF SUCH COSTS SHALL BE DIVIDED AMONG THE PARTICIPATING COUNTIES LISTED
IN THIS PARAGRAPH ON THE BASIS OF POPULATION AS DEFINED IN PARAGRAPH B
OF SUBDIVISION TWO OF SECTION FIVE HUNDRED SIXTEEN OF THE RACING, PARI-
MUTUEL WAGERING AND BREEDING LAW.
§ 5. Section 301 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 6 to read as follows:
6. THE BOARD SHALL HAVE THE POWER TO ISSUE LICENSES TO THE CATSKILL
REGIONAL OFF-TRACK BETTING CORPORATION OR TO A SUBSIDIARY OF SAID CORPO-
RATION FOR THE PURPOSE OF CONDUCTING HARNESS RACE MEETINGS AT MONTICELLO
RACETRACK AND TO MAKE CAPITAL IMPROVEMENTS TO SAID TRACK, PROVIDED THAT
SUCH CORPORATION MEETS THE TERMS AND CONDITIONS FOR LICENSURE AS
PROVIDED UNDER THIS ARTICLE. NOTWITHSTANDING THE PROVISIONS OF ARTICLES
FIVE AND FIVE-A OF THIS CHAPTER, SAID CORPORATION SHALL BE DEEMED TO BE
A HARNESS RACING CORPORATION WITH RESPECT TO PARI-MUTUEL WAGERING
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CONDUCTED AT SAID TRACK PURSUANT TO THIS CHAPTER, EXCEPT THAT NET REVEN-
UES DERIVED FROM SUCH PARI-MUTUEL WAGERING SHALL BE DISTRIBUTED AMONG
THE COUNTIES THAT PARTICIPATE IN SUCH CORPORATION ON THE BASIS OF POPU-
LATION, AS DEFINED AS THE TOTAL POPULATION IN EACH PARTICIPATING COUNTY
SHOWN BY THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS OF THE CALENDAR
YEAR IN WHICH SUCH DISTRIBUTION IS TO BE MADE.
§ 6. The opening paragraph of subdivision 1 of section 527 of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 243
of the laws of 2020, is amended to read as follows:
The disposition of the retained commission from pools resulting from
regular, multiple or exotic bets, as the case may be, whether placed on
races run within a region or outside a region, conducted by racing
corporations, harness racing associations or corporations, quarter horse
racing associations or corporations or races run outside the state shall
be governed by the tables in paragraphs a and b of this subdivision. The
rate denominated "state tax" shall represent the rate of a reasonable
tax imposed upon the retained commission for the privilege of conducting
off-track pari-mutuel betting, which tax is hereby levied and shall be
payable in the manner set forth in this section. Each off-track betting
corporation shall pay to the commission as a regulatory fee, which fee
is hereby levied, six-tenths of one percent of the total daily pools of
such corporation. Each corporation shall also pay twenty percent of the
breaks derived from bets on harness races and fifty percent of the
breaks derived from bets on all other races to the agriculture and New
York State horse breeding and development fund and to the thoroughbred
breeding and development fund, the total of such payments to be appor-
tioned fifty percent to each such fund. For the purposes of this
section, the New York city, Suffolk, Nassau, and the Catskill regions
shall constitute a single region and any thoroughbred track located
within the Capital District region shall be deemed to be within such
single region. A "regional meeting" shall refer to either harness or
thoroughbred meetings, or both, except that a franchised corporation
shall not be a regional track for the purpose of receiving distributions
from bets on thoroughbred races conducted by a thoroughbred track in the
Catskill region conducting a mixed meeting. With the exception of a
harness racing association or corporation first licensed to conduct
pari-mutuel wagering at a track located in Tioga, Saratoga, SULLIVAN or
Westchester county after January first, two thousand five, racing corpo-
rations first licensed to conduct pari-mutuel racing after January
first, nineteen hundred eighty-six or a harness racing association or
corporation first licensed to conduct pari-mutuel wagering at a track
located in Genesee County after January first, two thousand five, and
quarter horse tracks shall not be "regional tracks"; if there is more
than one harness track within a region, such tracks shall evenly divide
payments made pursuant to the tables in paragraphs a and b of this
subdivision when neither track is running. In the event a track elects
to reduce its retained percentage from any or all of its pari-mutuel
pools, the payments to the track holding the race and the regional track
required by paragraphs a and b of this subdivision shall be reduced in
proportion to such reduction. Nothing in this section shall be construed
to authorize the conduct of off-track betting contrary to the provisions
of section five hundred twenty-three of this article.
§ 7. Section 509-a of the racing, pari-mutuel wagering and breeding
law, as added by chapter 681 of the laws of 1989, the opening paragraph
as amended by chapter 346 of the laws of 1990, is amended to read as
follows:
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§ 509-a. Capital acquisition fund. 1. The corporation may create and
establish a capital acquisition fund for the purpose of financing the
acquisition, construction or equipping of offices, facilities or prem-
ises of the corporation. Such capital acquisition fund shall consist of
(i) the amounts specified pursuant to subdivision three-a of section
five hundred thirty-two of this chapter; and (ii) contributions from the
corporation's pari-mutuel wagering pools, subject to the following limi-
tations:
[(1)] A. no contribution shall exceed the amount of one percent of the
total pari-mutuel wagering pools for the quarter in which the contrib-
ution is made;
[(2)] B. no contribution shall reduce the amount of quarterly net
revenues, exclusive of surcharge revenues, to an amount less than fifty
percent of such net revenues; and
[(3)] C. the balance of the fund shall not exceed the lesser of one
percent of total pari-mutuel wagering pools for the previous twelve
months or the undepreciated value of the corporation's offices, facili-
ties and premises.
2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FUNDS IN THE CATSKILL OFF-TRACK BETTING CORPORATION'S CAPITAL
ACQUISITION FUND ESTABLISHED PURSUANT TO THIS SECTION SHALL BE AVAILABLE
TO THE CATSKILL OFF-TRACK BETTING CORPORATION FOR CORPORATE PURPOSES
PURSUANT TO THIS SECTION UNTIL THE FUND HAS BEEN EXHAUSTED.
§ 8. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 243 of the laws of 2020, is
amended to read as follows:
2. [Ninety-five percent of the balance of such account remaining
unclaimed as of the last day of February of such year shall be paid to
the department of taxation and finance by March fifteenth. On or before
April tenth of each year the balance of such account and any other
unclaimed amounts received in the course of conducting off-track betting
shall be paid by such corporation to the department of taxation and
finance. A penalty of five percent and interest at the rate of one
percent per month from the due date to the date of payment of the
unclaimed balance due March fifteenth or April tenth, as the case may
be, shall be payable in case such balance is not paid when due. Such
amounts, interest and penalties when collected by the department of
taxation and finance shall be deposited into the general fund of the
state treasury] THE BALANCE OF SUCH ACCOUNT REMAINING UNCLAIMED AS OF
APRIL FIRST OF SUCH YEAR SHALL BE TRANSFERRED TO THE REGIONAL CORPO-
RATION'S OPERATING ACCOUNT AND MAY BE USED FOR ANY CORPORATE PURPOSES.
§ 9. Clause (E) of subparagraph 5 of paragraph b of subdivision 1 of
section 1016 of the racing, pari-mutuel wagering and breeding law is
REPEALED and clause (F) is relettered clause (E).
§ 10. Clause (F) of subparagraph 6 of paragraph b of subdivision 1 of
section 1016 of the racing, pari-mutuel wagering and breeding law is
REPEALED and clause (G) is relettered clause (F).
§ 11. Subdivision 2 of section 1017 of the racing, pari-mutuel wager-
ing and breeding law is REPEALED.
§ 12. Subdivision 1 of section 519 of the racing, pari-mutuel wagering
and breeding law, paragraph e as amended by chapter 260 of the laws of
1987, paragraphs f, g and h as amended by chapter 125 of the laws of
1997, is amended to read as follows:
1. "Region." One or more of the following named regions comprised of
the counties indicated:
a. Suffolk: Suffolk county;
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b. Nassau: Nassau county;
c. [New York city: the five counties comprising the city of New York;
d.] Catskill: Broome, Chemung, Chenango, Delaware, Orange, Rockland,
Sullivan, Tioga, Dutchess, Tompkins, Westchester, Putnam and Ulster
counties;
[e.] D. Capital District: Albany, Clinton, Columbia, Cortland, Essex,
Franklin, Fulton, Greene, Hamilton, Herkimer, Madison, Montgomery, Onei-
da, Otsego, Rensselaer, Saratoga, Schenectady, Schoharie, St. Lawrence,
Warren and Washington counties;
[f.] E. Central: Lewis and Onondaga counties;
[g.] F. Western: Allegany, Cattaraugus, Cayuga, Chautauqua, Erie,
Genesee, Jefferson, Livingston, Monroe, Niagara, Ontario, Orleans, Oswe-
go, Schuyler, Seneca, Steuben, Wayne, Wyoming and Yates counties;
[h.] G. Notwithstanding the other provisions of this subdivision, when
and if the Central regional off-track betting corporation is estab-
lished, it shall include, in addition to the counties listed in para-
graph [f] E OF THIS SUBDIVISION, the following: Cayuga, Chenango, Cort-
land, Franklin, Herkimer, Jefferson, Madison, Oneida, Oswego, Otsego and
Tompkins counties.
§ 13. The racing, pari-mutuel wagering and breeding law is amended by
adding four new sections 517-a, 517-b, 517-c and 517-d to read as
follows:
§ 517-A. CATSKILL OFF-TRACK BETTING CORPORATION SITE APPROVAL. 1. THE
PURCHASE OR LEASE OF ANY PROPERTY TO BE USED IN WHOLE OR IN PART AS AN
OFF-TRACK BETTING FACILITY BY THE CATSKILL OFF-TRACK BETTING CORPORATION
IN THE CITY OF NEW YORK SHALL BE CONDITIONED ON THE APPROVAL OF THE
MAYOR OF THE CITY OF NEW YORK; AND WITH RESPECT TO A BRANCH OFFICE
LOCATED WHOLLY OR PARTLY WITHIN A BOROUGH OF THE CITY, APPROVAL SHALL
ALSO BE REQUIRED BY SUCH BOROUGH PRESIDENT OR THEIR DESIGNEE. THE MAYOR
OR BOROUGH PRESIDENT'S FAILURE TO ACT WITHIN THIRTY DAYS OF NOTIFICATION
IN WRITING OF A PROPOSED SITE SHALL BE DEEMED TO BE APPROVAL OF SUCH
SITE.
2. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION, THE PURCHASE OR
LEASE OF ANY PROPERTY TO BE USED IN WHOLE OR IN PART AS AN OFF-TRACK
BETTING FACILITY BY THE CATSKILL OFF-TRACK BETTING CORPORATION IN THE
CITY OF NEW YORK WHICH INCLUDES OR IS LOCATED WITHIN A FIVE MILE RADIUS
OF A SITE THAT WAS APPROVED PRIOR TO DECEMBER SIXTH, TWO THOUSAND TEN
SHALL NOT REQUIRE APPROVAL OF THE MAYOR OR BOROUGH PRESIDENT.
§ 517-B. CATSKILL OFF-TRACK BETTING CORPORATION; COLLECTIVE BARGAIN-
ING. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, RULE, OR REGULATION TO
THE CONTRARY, TO THE EXTENT THAT CATSKILL OFF-TRACK BETTING OPENS FACIL-
ITIES WITHIN ONE OF THE BOROUGHS OF THE CITY OF NEW YORK TO ENGAGE IN
OFF-TRACK BETTING OR THE SUPPORT STAFF THEREOF, SUCH CORPORATION SHALL
RECOGNIZE THE COLLECTIVE BARGAINING REPRESENTATIVE OF THE EMPLOYEES OF
THE NEW YORK CITY OFF-TRACK BETTING CORPORATION AS OF DECEMBER SIXTH,
TWO THOUSAND TEN, AND SHALL ABIDE BY AGREEMENTS NEGOTIATED BETWEEN SUCH
REPRESENTATIVE AND CATSKILL OFF-TRACK BETTING CORPORATION. NOTHING
CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO DIMINISH THE RIGHTS OF
EMPLOYEES PURSUANT TO PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED NINE-A OF THE CIVIL SERVICE LAW.
§ 517-C. CATSKILL OFF-TRACK BETTING CORPORATION; REPORTING. ON OR
BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, THE CATSKILL OFF-
TRACK BETTING CORPORATION SHALL SUBMIT TO THE COMMISSION A REPORT
SETTING FORTH: 1. THE CORPORATION'S OPERATIONS AND ACCOMPLISHMENTS TO
DATE; 2. THE CORPORATION'S RECEIPTS AND EXPENDITURES IN ACCORDANCE WITH
CATEGORIES OR CLASSIFICATIONS ESTABLISHED BY THE CORPORATION FOR ITS OWN
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OPERATING AND CAPITAL OUTLAY PURPOSES; 3. THE CORPORATION'S ASSETS AND
LIABILITIES AT THE TIME OF SUCH REPORT, INCLUDING A SCHEDULE OF ITS
BONDS, NOTES, OR OTHER OBLIGATIONS AND THE STATUS OF RESERVES, DEPRECI-
ATIONS, SPECIAL, SINKING, OR OTHER FUNDS; AND 4. IDENTITIES OF BRANCH
OFFICES BEING PLANNED OR IN THE PROCESS OF BEING CONSTRUCTED OR OTHER-
WISE ESTABLISHED AND BRANCH OFFICES THAT HAVE BEEN CONSTRUCTED OR ESTAB-
LISHED.
§ 517-D. DEBTS OF PREVIOUSLY ESTABLISHED OFF-TRACK BETTING CORPO-
RATIONS. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, RULE, OR REGU-
LATION TO THE CONTRARY, THE DEBTS AND OBLIGATIONS OF THE NEW YORK CITY
OFF-TRACK BETTING CORPORATION SHALL NOT TRANSFER BY OPERATION OF LAW OR
OTHERWISE TO THE CATSKILL OFF-TRACK BETTING CORPORATION.
§ 14. Subdivisions 3 and 7 of section 532 of the racing, pari-mutuel
wagering and breeding law, subdivision 3 as amended by chapter 243 of
the laws of 2020 and subdivision 7 as added by chapter 115 of the laws
of 2008, are amended to read as follows:
3. The revenues received from any surcharge imposed by subdivision one
of this section, plus the breaks, shall be distributed monthly, as
follows:
a. fifty percent SHALL BE RETAINED BY THE REGIONAL CORPORATION AND
TWENTY-FIVE PERCENT to such city, or to the counties and cities entitled
to receive revenues from the regional corporation pursuant to section
five hundred sixteen of this chapter and in the same proportion as
provided therein, or to an off-track betting operator; and
b. the balance as follows:
(i) where the track conducting the race on which the bet was placed is
located within a city with a population in excess of one hundred thou-
sand, BUT LESS THAN ONE MILLION, to such city;
(ii) where the track conducting the race on which the bet was placed
is not located within a city with a population in excess of one hundred
thousand, to the county in which such track is located;
(iii) where the track conducting the race on which the bet was placed
is located partially within a city with a population in excess of one
million and partially within a county, [twenty-five percent of such
balance to the city and the remainder] to the county;
(iv) where the track conducting the race on which the bet was placed
is located outside the state, in the same manner as described in para-
graph a of this subdivision;
(v) where the track conducting the race is located in a thoroughbred
special betting district and is simulcasting pursuant to section one
thousand eight of this chapter outside such special betting district,
ninety percent to the off-track betting operator and ten percent to the
county in which such track is located; and
(vi) for the period of September first, two thousand seventeen until
August thirty-first, two thousand twenty-two and where the track
conducting the race on which the bet was placed is a harness track
located in the county of Erie, to such track.
7. Notwithstanding any other provision of this section, any payments
otherwise payable to a city with a population of one million or more,
[pursuant to this section, other than payments] pursuant to subpara-
graphs (i) and (iii) of paragraph b of subdivision three of this
section, shall be payable to the corporation and shall be available for
its corporate purposes, AND MAY BE DISTRIBUTED AS NET REVENUE PURSUANT
TO SECTION FIVE HUNDRED SIXTEEN OF THIS CHAPTER.
§ 15. This act shall take effect on the thirtieth day after it shall
have become a law.