S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5925
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by M. of A. WOERNER -- 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, subdivision 2 as amended by section 1 of part O of chapter
 59 of the laws of 2024, 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-
 track betting corporation's capital acquisition  fund  and  twenty-three
 percent of the funds, not to exceed four hundred forty thousand dollars,
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09480-01-5
 A. 5925                             2
 
 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. Notwithstanding any other provision of law  or  regulation  to  the
 contrary,  from  April first, two thousand twenty-three to March thirty-
 first, two thousand twenty-four, 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 one million dollars in the Capital off-track betting
 corporation's capital acquisition  fund  established  pursuant  to  this
 section,  shall  be  available to such off-track betting corporation for
 the purposes of expenditures necessary to accept authorized wagers; past
 due statutory obligations to New  York  licensed  or  franchised  racing
 corporations  or  associations;  past due contractual obligations due to
 other racing associations or organizations for the costs of acquiring  a
 simulcast  signal; past due statutory payment obligations due to the New
 York state thoroughbred breeding and development fund corporation, agri-
 culture and New York state horse  breeding  development  fund,  and  the
 Harry  M.  Zweig  memorial  fund for equine research; and past due obli-
 gations due the state.
   d. Notwithstanding any other provision of law  or  regulation  to  the
 contrary,  from  April  first, two thousand twenty-four to March thirty-
 first, two thousand twenty-five, 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 one million dollars in the Capital off-track betting
 corporation's capital acquisition  fund  established  pursuant  to  this
 section,  shall  be  available to such off-track betting corporation for
 the purposes of expenditures necessary to accept authorized wagers; past
 due statutory obligations to New  York  licensed  or  franchised  racing
 corporations  or  associations;  past due contractual obligations due to
 other racing associations or organizations for the costs of acquiring  a
 simulcast  signal; past due statutory payment obligations due to the New
 York state thoroughbred breeding and development fund corporation, agri-
 culture and New York state horse  breeding  development  fund,  and  the
 Harry  M.  Zweig  memorial  fund for equine research; and past due obli-
 gations due the state.
   e. Prior to a corporation being able to utilize the  funds  authorized
 by  paragraph  c  or  d of this subdivision, the corporation must attest
 that the surcharge monies from section five hundred thirty-two  of  this
 chapter  are  being  held  separate and apart from any amounts otherwise
 authorized to be retained  from  pari-mutuel  pools  and  all  surcharge
 monies  have  been  and  will  continue  to be paid to the localities as
 prescribed in law. Once this condition  is  satisfied,  the  corporation
 A. 5925                             3
 
 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 necessary to detail
 such plan as determined by the commission. Upon review,  the  commission
 shall  make a determination as to whether the requirements of this para-
 graph have been satisfied and notify the corporation of expenditure plan
 approval. In the event the commission  determines  the  requirements  of
 this  paragraph have not been satisfied, the commission shall notify the
 corporation of all deficiencies necessary for approval. As  a  condition
 of  such  expenditure  plan  approval,  the  corporation shall provide a
 report to the commission no later than the last day of the calendar year
 for which the funds are requested, which shall include an accounting  of
 the  use  of such funds. At such time, the commission may cause an inde-
 pendent audit to be conducted of the corporation's books to ensure  that
 all  moneys  were  spent  as indicated in such approved plan.  The audit
 shall be paid for from money in the fund established by this section. If
 the audit determines that a corporation used the money authorized  under
 this  section  for  a purpose other than one listed in their expenditure
 plan, then the corporation shall reimburse the capital acquisition  fund
 for the unauthorized amount.
   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
 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.