S T A T E O F N E W Y O R K
________________________________________________________________________
4542
2023-2024 Regular Sessions
I N A S S E M B L Y
February 16, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to utilizing funds from the capital acquisition fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 509-a of the racing, pari-mutuel wagering and
breeding law, as amended by section 1 of part DD of chapter 59 of the
laws of 2022, is amended to read as follows:
§ 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)] A. the amounts specified pursuant to subdivision three-a of
section five hundred thirty-two of this chapter; and [(ii)] B. contrib-
utions from the corporation's pari-mutuel wagering pools, subject to the
following limitations:
[a.] (I) 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;
[b.] (II) 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
[c.] (III) 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. a. Notwithstanding any other provision of law or regulation to the
contrary, from April nineteenth, two thousand twenty-one to March thir-
ty-first, two thousand twenty-two, twenty-three percent of the funds,
not to exceed two and one-half million dollars, in the Catskill off-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09550-01-3
A. 4542 2
track betting corporation's capital acquisition fund and twenty-three
percent of the funds, not to exceed four hundred forty thousand dollars,
in the Capital off-track betting corporation's capital acquisition fund
established pursuant to this section shall also be available to such
off-track betting corporation for the purposes of statutory obligations,
payroll, and expenditures necessary to accept authorized wagers.
b. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-two to March thirty-
first, two thousand twenty-three, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and twenty-three percent of the funds, not to exceed four
hundred forty thousand dollars, in the Capital off-track betting corpo-
ration's capital acquisition fund established pursuant to this section,
shall be available to such off-track betting corporations for the
purposes of statutory obligations, payroll, and expenditures necessary
to accept authorized wagers.
c. Prior to a corporation being able to utilize the funds authorized
by paragraph b of this subdivision, the corporation must submit an
expenditure plan to the gaming commission for review. Such plan shall
include the corporation's outstanding liabilities, projected revenue for
the upcoming year, a detailed explanation of how the funds will be used,
and any other information determined necessary by the commission. Upon
review, the commission will make a determination as to whether access to
the funds is needed and warranted.
3. The Catskill off-track betting corporation and the Capital off-
track betting corporation shall make a report to the governor, speaker
of the assembly, temporary president of the senate and the commission
detailing the actual use of the funds made available in the capital
acquisition fund. Such report shall include, but not be limited to, any
impact on employment levels since utilizing the funds, the status of any
statutory obligations, an accounting of the use of such funds, and any
other information as deemed necessary by the commission. Such report
shall be due no later than the last day of the fiscal year in which the
monies were spent.
4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, UP TO FIVE MILLION DOLLARS OF THE FUNDS IN A CAPITAL ACQUISI-
TION FUND, ESTABLISHED PURSUANT TO THIS SECTION SHALL BE AVAILABLE ONCE
PER ANNUM TO A REGIONAL OFF-TRACK BETTING CORPORATION FOR THE SOLE
PURPOSE OF PAYING THE SALARIES AND BENEFITS OF EMPLOYEES AND OTHER
EXPENSES OF SUCH CORPORATION; PROVIDED, HOWEVER, THAT SUCH REGIONAL
OFF-TRACK BETTING CORPORATION IS NOT UTILIZING ITS CAPITAL ACQUISITION
FUND FOR CORPORATE PURPOSES AS PROVIDED IN SECTION THREE OF PART II OF
CHAPTER FIFTY-EIGHT OF THE LAWS OF TWO THOUSAND TWELVE, AND FURTHER
PROVIDED, THAT AT A TIME AND IN A MANNER TO BE DETERMINED AND PRESCRIBED
BY THE NEW YORK STATE GAMING COMMISSION, AT LEAST FIVE PERCENT OF SUCH
AMOUNT SHALL BE DISTRIBUTED AMONG THE PARTICIPATING COUNTIES ON THE
BASIS OF POPULATION, AS DEFINED AS THE TOTAL POPULATION IN EACH PARTIC-
IPATING COUNTY SHOWN BY THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS
COMPLETED AND PUBLISHED AS A FINAL POPULATION COUNT BY THE UNITED STATES
BUREAU OF THE CENSUS PRECEDING THE COMMENCEMENT OF THE CALENDAR YEAR IN
WHICH SUCH DISTRIBUTION IS TO BE MADE.
5. A REGIONAL OFF-TRACK BETTING CORPORATION THAT CHOOSES TO UTILIZE
ITS CAPITAL ACQUISITION FUND TO OFFSET EXPENSES RELATED TO SALARIES AND
BENEFITS FOR THE CORPORATION'S EMPLOYEES AND OTHER EXPENSES AS PROVIDED
IN SUBDIVISION FOUR OF THIS SECTION SHALL DO SO BY PROVIDING WRITTEN
A. 4542 3
NOTIFICATION TO THE NEW YORK STATE GAMING COMMISSION, AT LEAST FIFTEEN
DAYS IN ADVANCE OF ITS DECISION TO UTILIZE MONIES FOR CORPORATE
PURPOSES.
§ 2. This act shall take effect immediately.