S T A T E O F N E W Y O R K
________________________________________________________________________
3599
2023-2024 Regular Sessions
I N A S S E M B L Y
February 3, 2023
___________
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.
LBD08336-01-3
A. 3599 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 TWENTY; AND (B) THAT UPON EXPIRA-
TION, 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. 3599 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-THREE. In furtherance of and without limiting the foregoing, the
licensee 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.