A. 8468 2
such tracks] FUNDING THE STATE OF NEW YORK, SHALL BE DEPOSITED INTO THE
VIDEO LOTTERY GAMING REVENUE FUND, ESTABLISHED PURSUANT TO SECTION NINE-
TY-NINE-OO OF THE STATE FINANCE LAW. One and one-half percent of the
[gross purse enhancement] amount REQUIRED TO BE DEPOSITED IN THE FUND
ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO OF THE STATE FINANCE LAW,
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.
2. [One] EIGHT AND ONE-HALF 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] TO BE DEPOSITED INTO THE VIDEO
LOTTERY GAMING REVENUE FUND, ESTABLISHED PURSUANT TO SECTION NINETY-
NINE-OO OF THE STATE FINANCE LAW, FOR THE PURPOSE OF FUNDING THE STATE
OF NEW YORK.
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. Capital expenditures may include funding the
construction of and initially equipping a state-based equine drug test-
ing and research laboratory to be used pursuant to subdivision seven of
section nine hundred two of the racing, pari-mutuel wagering and breed-
ing law.
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[,] AND two[, three and four] of this subdivision
shall be known collectively as the "[racing] VIDEO LOTTERY GAMING
support payments".
§ 2. 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. Notwithstanding any provision of law to the contrary, free play
allowance credits authorized by the division pursuant to subdivision 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 paya-
ble to the division's video lottery gaming equipment contractors, [or]
racing support payments, OR VIDEO LOTTERY GAMING SUPPORT PAYMENTS.
§ 3. Subdivision f-1 of section 1612 of the tax law, as amended by
chapter 175 of the laws of 2013, is amended to read as follows:
f-1. As consideration for operation of 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
A. 8468 3
in the racing industry of the] following percentages of the vendor fee
to be deposited or paid as follows:
[1. Two and three tenths] FIVE percent of the total wagered after
payout of prizes [for the purpose of enhancing purses 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 purse support from video lottery gaming at Aqueduct racetrack,
Belmont Park racetrack and Saratoga race course at the same level real-
ized 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] SHALL BE DEPOSITED INTO THE VIDEO LOTTERY
GAMING REVENUE FUND, ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO OF
THE STATE FINANCE LAW FOR THE PURPOSE OF FUNDING THE STATE OF NEW YORK.
[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.
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.]
§ 4. 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
STATE OF NEW YORK 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
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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 THE STATE OF NEW YORK, 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] SUCH
FUNDS SHALL BE DEPOSITED INTO THE VIDEO LOTTERY GAMING REVENUE FUND,
ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO OF THE STATE FINANCE LAW.
One and one-half percent of the [gross purse enhancement amount at a
thoroughbred track] AMOUNT PAID TO THE VIDEO LOTTERY GAMING REVENUE
FUND, 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 Aque-
duct 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 oper-
ated by a corporation established pursuant to section five hundred two
of the racing, pari-mutuel wagering and breeding law, one and one-quar-
ter 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] VIDEO LOTTERY GAMING REVENUE
fund [for the manner of racing conducted by such track], ESTABLISHED
PURSUANT TO SECTION NINETY-NINE-OO OF THE STATE FINANCE LAW.
§ 5. 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] STATE OF NEW YORK 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] AN amount equal to eight and three-quarters
percent of the total revenue wagered at the video lottery gaming facili-
ty, after pay out for prizes TO BE PAID TO THE VIDEO LOTTERY GAMING
REVENUE FUND, ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO OF THE
STATE FINANCE LAW. [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-
A. 8468 5
ant to clause (B) of subparagraph (ii) of paragraph one of subdivision b
of this section, shall be distributed to the [appropriate breeding]
VIDEO LOTTERY GAMING REVENUE fund [for the manner of racing conducted by
such track], ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO OF THE STATE
FINANCE LAW. 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.
§ 6. The state finance law is amended by adding two new sections 99-oo
and 99-pp to read as follows:
§ 99-OO. VIDEO LOTTERY GAMING REVENUE FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "VIDEO
LOTTERY GAMING REVENUE FUND".
2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO THE
PROVISIONS OF SECTION ONE THOUSAND SIX HUNDRED TWELVE OF THE TAX LAW AND
ALL OTHER MONEYS 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. THE MONEYS IN SUCH FUND SHALL BE DISBURSED TO THE STATE LOTTERY
FUND, THE GENERAL FUND, AND AN ADDITIONAL SUB-FUND CREATED WITHIN THE
VIDEO LOTTERY GAMING REVENUE FUND KNOWN AS THE VIDEO LOTTERY GAMING
REVENUE COMMUNITY REINVESTMENT FUND, AS FOLLOWS:
(A) FORTY PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND FOR
ADDITIONAL LOTTERY GRANTS TO ELIGIBLE SCHOOL DISTRICTS, INCLUDING
SCHOOLS SERVING STUDENTS WITH DISABILITIES AND SCHOOLS WITH PRESCHOOL
SPECIAL EDUCATION PROGRAMS;
(B) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
TO BE ALLOCATED TO THE HUMAN SERVICES SECTOR;
(C) FIVE PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND TO BE
ALLOCATED TO THE DEPARTMENT OF LABOR WORKER PROTECTION FUND; AND
(D) THIRTY PERCENT SHALL BE DEPOSITED IN THE VIDEO LOTTERY GAMING
REVENUE COMMUNITY REINVESTMENT FUND ESTABLISHED BY SECTION NINETY-NINE-
PP OF THIS ARTICLE.
§ 99-PP. VIDEO LOTTERY GAMING REVENUE COMMUNITY REINVESTMENT FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP-
TROLLER AND COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE
KNOWN AS THE "VIDEO LOTTERY GAMING REVENUE FUND".
2. SUCH FUND SHALL CONSIST OF REVENUES RECEIVED PURSUANT TO THE
PROVISIONS OF SECTION NINETY-NINE-OO OF THIS ARTICLE AND ALL OTHER
MONEYS 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. THE MONEYS RECEIVED BY SUCH FUND SHALL BE EXPENDED TO THE COMMIS-
SIONER OF AGRICULTURE AND DISBURSED, IN CONSULTATION WITH THE PRESIDENT
AND CHIEF EXECUTIVE OFFICER OF THE EMPIRE STATE DEVELOPMENT CORPORATION
TO BE SPENT ON AGRICULTURAL GRANTS, FUNDING FOR HORSE CARE AND THE
ADOPTION OF RACE HORSES, AND ECONOMIC DEVELOPMENT IN COMMUNITIES WHERE
HORSE RACING OCCURS.
4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF AGRICULTURE.
A. 8468 6
§ 7. Paragraph 5 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, is
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
racetrack, provided that: (i) such licensed entity is no longer operat-
ing video lottery gaming at Monticello racetrack [and provided that
Monticello racetrack is conducting racing operations]; (ii) such facili-
ty in Orange county is not sited within a thirty mile radius of the
video lottery gaming facility at Yonkers racetrack; and (iii) 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 Yonkers racetrack
enter into a mitigation agreement, to be approved by the gaming commis-
sion, 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
commercial gaming 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;
(B) employment levels at the affected facilities; and (C) that upon
expiration or termination of the agreement, the authority to operate
video lottery gaming in Orange county shall cease. Notwithstanding any
other provision of this subdivision, at no time shall an entity operat-
ing video lottery gaming in Orange county be permitted to apply for or
receive a license to operate a commercial gaming facility in that coun-
ty.
§ 8. Paragraph (b) of subdivision 1 of section 1355 of the racing,
pari-mutuel wagering and breeding law is REPEALED.
§ 9. Severability. If any clause, sentence, paragraph, subdivision,
section or part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, subdivision, section or part thereof
directly involved in the controversy in which such judgment shall have
been rendered. It is hereby declared to be the intent of the legislature
that this act would have been enacted even if such invalid provisions
had not been included herein.
§ 10. This act shall take effect immediately.