S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4537
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the tax law, in relation to video lottery gaming located
   in Orange county
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subclause 5 of clause (B) of subparagraph (ii) of paragraph
 1 of subdivision b of section 1612 of the tax law, as added by section 1
 of  part  S  of  chapter  39  of the laws of 2019, is amended to read as
 follows:
   (5) [forty-nine] THIRTY percent for a video  lottery  gaming  facility
 authorized  pursuant  to  paragraph  five  of  subdivision  a of section
 sixteen hundred seventeen-a of this article;
   § 2. 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] A video lottery gaming facility LOCATED
 IN ORANGE COUNTY, 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

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

                                                            LBD08940-01-1

 A. 4537                             2
 
 percent of total revenue wagered at [the] A video lottery gaming facili-
 ty  LOCATED IN ORANGE COUNTY after pay out for prizes, received pursuant
 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] A RACETRACK LOCATED  IN
 SULLIVAN  COUNTY.  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.
   §  3. Paragraphs 5 and 6 of subdivision a of section 1617-a of the tax
 law, as added by section 4 of part S of chapter 39 of the laws of  2019,
 are amended to read as follows:
   (5) At a facility located in Orange county to be operated by the enti-
 ty  otherwise licensed to operate video lottery gaming at [Monticello] A
 racetrack IN SULLIVAN COUNTY, provided that: (i) such licensed entity is
 no longer operating video lottery gaming  at  [Monticello]  A  racetrack
 LOCATED  IN SULLIVAN COUNTY and provided that [Monticello] THE racetrack
 LOCATED IN SULLIVAN COUNTY is conducting racing  operations;  (ii)  such
 facility  in  Orange  county is not sited within a thirty mile radius of
 the video lottery gaming facility at [Yonkers] A  racetrack  LOCATED  IN
 WESTCHESTER  COUNTY;  [and]  (iii) THE LICENSED ENTITY, ITS SUBSIDIARIES
 AND AFFILIATES, INCLUDING THE ENTITY LICENSED TO  OPERATE  A  COMMERCIAL
 GAMING FACILITY IN SULLIVAN COUNTY, AND ORANGE COUNTY ENTER INTO A MITI-
 GATION  AGREEMENT  TO  BE  PAID  OUT  OF THE VENDOR FEE FOR THE FACILITY
 LOCATED IN ORANGE COUNTY, TO BE APPROVED BY THE GAMING COMMISSION;  (IV)
 the  licensed  entity,  its  subsidiaries  and affiliates, including the
 entity licensed to operate a  commercial  gaming  facility  in  Sullivan
 county, and the entity licensed to operate video lottery gaming AT YONK-
 ERS  RACETRACK  AND THE STATUTORILY RECOGNIZED HORSEMEN'S ASSOCIATION AT
 YONKERS RACETRACK enter into a mitigation agreement, to be  approved  by
 the gaming commission, which shall include, but not be limited to, terms
 that  require: (A) the operator of the facility in Orange county to make
 an annual payment to the entity licensed to operate video lottery gaming
 or UPON CONVERSION OF SUCH LICENSE, TO THE ENTITY LICENSED TO OPERATE  A
 commercial  gaming  FACILITY  at  Yonkers  racetrack AND THE STATUTORILY
 RECOGNIZED HORSEMEN'S ASSOCIATION AT YONKERS RACETRACK  to  account  for
 the effects that siting such facility in Orange county would likely have
 on the gross gaming revenue of the entity licensed to operate at Yonkers
 racetrack  AND UPON PURSES AND BREEDING FUND PAYMENTS FROM YONKERS RACE-
 TRACK; (B) employment levels at the affected facilities;  and  (C)  that
 upon  expiration or termination of the agreement, the authority to oper-
 ate video lottery gaming in Orange  county  shall  cease;  AND  (V)  THE
 LICENSED  ENTITY,  ITS SUBSIDIARIES AND AFFILIATES, INCLUDING THE ENTITY
 LICENSED TO OPERATE A COMMERCIAL GAMING FACILITY IN SULLIVAN COUNTY, AND
 SULLIVAN COUNTY ENTER INTO A MITIGATION AGREEMENT TO BE PAID OUT OF  THE
 VENDOR  FEE FOR THE FACILITY LOCATED IN ORANGE COUNTY, TO BE APPROVED BY
 THE GAMING COMMISSION, WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, TERMS
 THAT REQUIRE: (A) THE OPERATOR OF THE FACILITY IN ORANGE COUNTY TO  MAKE
 AN  ANNUAL  PAYMENT  TO  SULLIVAN COUNTY TO MAINTAIN FUNDING AT THE SAME
 DOLLAR LEVELS REALIZED IN TWO THOUSAND EIGHTEEN; AND (B) THAT UPON EXPI-
 RATION, TERMINATION, OR WITHDRAWAL OF THE AGREEMENT,  THE  AUTHORITY  TO
 OPERATE VIDEO LOTTERY GAMING IN ORANGE COUNTY SHALL CEASE. Notwithstand-
 ing  any other provision of this subdivision, at no time shall an entity
 operating video lottery gaming in Orange county be  permitted  to  apply
 for or receive a license to operate a commercial gaming facility in that
 county.

 A. 4537                             3
 
   (6)  Notwithstanding  any other provision of law to the contrary, as a
 condition of the license to operate  a  video  lottery  gaming  facility
 located  in Orange county, such operator shall provide an annual certif-
 ication to the New York state gaming commission that the staffing levels
 at a commercial gaming facility located in zone two, region one pursuant
 to  section thirteen hundred ten of the racing, pari-mutuel wagering and
 breeding law (or any successor commercial  gaming  facility  located  in
 said  region) are [no less than one thousand four hundred seventy-three]
 MAINTAINED AT NINETY PERCENT OF THE full-time,  permanent  employees  AS
 THEY EMPLOYED IN THE FIRST QUARTER OF THE FISCAL YEAR TWO THOUSAND TWEN-
 TY-ONE. In furtherance of and without limiting the foregoing, the licen-
 see  for  the commercial gaming facility located in zone two, region one
 pursuant to section thirteen hundred  ten  of  the  racing,  pari-mutuel
 wagering  and  breeding law (or any successor commercial gaming facility
 located in such region) shall not conduct any mass,  involuntary  layoff
 events  that would trigger worker adjustment and retraining notification
 (WARN) act notifications pursuant to article twenty-five-A of the  labor
 law  or otherwise result in the employment levels at such facility drop-
 ping below levels  mandated  by  this  section.  For  purposes  of  this
 section,  "full-time, permanent employee" shall mean an employee who has
 worked at the facility for a minimum of thirty-five hours per  week  for
 not  less than four consecutive weeks and who is entitled to receive the
 usual and customary fringe benefits extended  to  other  employees  with
 comparable  rank  and duties; or two part-time employees who have worked
 at the facility for a combined minimum of thirty-five hours per week for
 not less than four consecutive weeks and who are entitled to receive the
 usual and customary fringe benefits extended  to  other  employees  with
 comparable rank and duties.
   § 4. Paragraph 1-b of subdivision b of section 1612 of the tax law, as
 added  by  section  2  of  part EE of chapter 59 of the laws of 2019, is
 amended to read as follows:
   1-b. (I) Notwithstanding any provision of law to  the  contrary,  free
 play  allowance  credits authorized by the division pursuant to subdivi-
 sion i of section sixteen hundred seventeen-a of this article shall  not
 be  included  in  the  calculation  of the total amount wagered on video
 lottery games, the total amount wagered  after  payout  of  prizes,  the
 vendor fees payable to the operators of video lottery gaming facilities,
 fees  payable  to the division's video lottery gaming equipment contrac-
 tors, or racing support payments.
   (II) A VIDEO LOTTERY GAMING FACILITY LOCATED IN  ORANGE  COUNTY  SHALL
 NOT UTILIZE FREE PLAY CREDITS.
   §  5.  This act shall take effect immediately; provided, however, that
 no video lottery gaming may be conducted at any facility  within  Orange
 county unless and until the mitigation agreement required by this act is
 executed by all parties and approved by the gaming commission.