Bill Text: NY A05496 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the Catskill regional off-track betting corporation including licensing, vendor fees, distribution of funds, collective bargaining, reporting and site approval.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to racing and wagering [A05496 Detail]
Download: New_York-2019-A05496-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5496 2019-2020 Regular Sessions IN ASSEMBLY February 12, 2019 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Racing and Wagering AN ACT to amend the tax law and the racing, pari-mutuel wagering and breeding law, in relation to the Catskill regional off-track betting corporation; and repealing certain provisions of the racing, pari-mu- tuel wagering and breeding law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 1 of subdivision a of section 1617-a of the tax 2 law, as amended by section 1 of part SS of chapter 60 of the laws of 3 2016, is amended to read as follows: 4 (1) Aqueduct, [Monticello,] Yonkers, Finger Lakes, and Vernon Downs 5 racetracks; 6 § 2. Paragraphs 3 and 4 of subdivision a of section 1617-a of the tax 7 law, as added by section 1 of part SS of chapter 60 of the laws of 2016, 8 are amended and a new paragraph 5 is added to read as follows: 9 (3) a maximum of two facilities, which shall be vendors for all 10 purposes under this article, neither to exceed one thousand video 11 lottery gaming devices, established within region three of zone one as 12 defined by section one thousand three hundred ten of the racing, pari- 13 mutuel wagering and breeding law, one each operated by a corporation 14 established pursuant to section five hundred two of the racing, pari-mu- 15 tuel wagering and breeding law in the Suffolk region and the Nassau 16 region to be located within a facility authorized pursuant to sections 17 one thousand eight or one thousand nine of the racing, pari-mutuel 18 wagering and breeding law; [and] 19 (4) Aqueduct racetrack, within the lottery terminal facility, pursuant 20 to an agreement between the corporation established pursuant to section 21 five hundred two of the racing, pari-mutuel wagering and breeding law in 22 the Nassau region and the operator of video lottery gaming at Aqueduct 23 racetrack, when such agreement is approved by the gaming commission and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09501-01-9A. 5496 2 1 as long as such agreement is in place, and when such agreement is accom- 2 panied by a detailed spending plan for the corporation established 3 pursuant to section five hundred two of the racing, pari-mutuel wagering 4 and breeding law in the Nassau region, which includes a plan for the 5 timely payment of liabilities due to the franchised corporation, and 6 when such video lottery devices are hosted by the operator of video 7 lottery gaming at Aqueduct racetrack on behalf of the corporation estab- 8 lished pursuant to section five hundred two of the racing, pari-mutuel 9 wagering and breeding law in the Nassau region in lieu of the develop- 10 ment of a facility in Nassau county as authorized by paragraph three of 11 this subdivision [a of this section]. Such agreement reached by the 12 parties shall identify the agency principally responsible for funding, 13 approving or undertaking any actions of such agreement. Provided, 14 however, nothing in this paragraph shall infringe upon the rights of the 15 corporation established pursuant to section five hundred two of the 16 racing, pari-mutuel wagering and breeding law in the Nassau region to 17 develop a facility pursuant to paragraph three of this subdivision upon 18 the expiration, termination, or withdrawal of such agreement[.]; and 19 (5) a maximum of three facilities, which shall be vendors for all 20 purposes under this article, with a total of one thousand one hundred 21 ten video lottery gaming devices in the county of Broome, Chemung, 22 Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam or 23 Ulster and to be operated by a corporation established pursuant to 24 section five hundred two of the racing, pari-mutuel wagering and breed- 25 ing law, and located within a facility authorized pursuant to section 26 one thousand eight or one thousand nine of the racing, pari-mutuel 27 wagering and breeding law. 28 § 3. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b 29 of section 1612 of the tax law, as amended by chapter 175 of the laws of 30 2013, is amended to read as follows: 31 (G-1) Notwithstanding [clause] clauses (A) and (B) of this subpara- 32 graph, when a video lottery gaming facility is located in [either] the 33 county of Broome, Chemung, Chenango, Delaware, Orange, Rockland, Dutch- 34 ess, Tompkins, Putnam, Ulster, Nassau or Suffolk and is operated by a 35 corporation established pursuant to section five hundred two of the 36 racing, pari-mutuel wagering and breeding law at a rate of thirty-five 37 percent of the total revenue wagered at the vendor after payout for 38 prizes pursuant to this chapter; 39 § 4. Paragraph 2 of subdivision b of section 1612 of the tax law, as 40 amended by section 1 of part OO of chapter 59 of the laws of 2014, is 41 amended to read as follows: 42 2. As consideration for the operation of a video lottery gaming facil- 43 ity, the division, shall cause the investment in the racing industry of 44 a portion of the vendor fee received pursuant to paragraph one of this 45 subdivision in the manner set forth in this subdivision. With the 46 exception of Aqueduct racetrack or a facility in the county of Nassau or 47 Suffolk operated by a corporation established pursuant to section five 48 hundred two of the racing, pari-mutuel wagering and breeding law, each 49 such track shall dedicate a portion of its vendor fees, received pursu- 50 ant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) 51 of paragraph one of this subdivision, for the purpose of enhancing purs- 52 es at such track, in an amount equal to eight and three-quarters percent 53 of the total revenue wagered at the vendor track after pay out for 54 prizes. Any video lottery gaming facility in the Catskill region, as 55 defined in section five hundred nineteen of the racing, pari-mutuel 56 wagering and breeding law and to be operated by a corporation estab-A. 5496 3 1 lished pursuant to section five hundred two of the racing, pari-mutuel 2 wagering and breeding law, shall dedicate a portion of its vendor fee 3 for the purpose of enhancing purses at Monticello racetrack in an amount 4 equal to eight and three-quarters percent of the total revenue wagered 5 at the facility after pay out for prizes. One percent of the gross purse 6 enhancement amount, as required by this subdivision, shall be paid to 7 the gaming commission to be used exclusively to promote and ensure 8 equine health and safety in New York. Any portion of such funding to the 9 gaming commission unused during a fiscal year shall be returned to the 10 video lottery gaming operators on a pro rata basis in accordance with 11 the amounts originally contributed by each operator and shall be used 12 for the purpose of enhancing purses at such track. One and one-half 13 percent of the gross purse enhancement amount at a thoroughbred track, 14 as required by this subdivision, shall be paid to an account established 15 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel 16 wagering and breeding law to be used exclusively to provide health 17 insurance for jockeys. In addition, with the exception of Aqueduct race- 18 track or a facility in the county of Nassau or Suffolk operated by a 19 corporation established pursuant to section five hundred two of the 20 racing, pari-mutuel wagering and breeding law, one and one-quarter 21 percent of total revenue wagered at the vendor track after pay out for 22 prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) 23 of subparagraph (ii) of paragraph one of this subdivision, shall be 24 distributed to the appropriate breeding fund for the manner of racing 25 conducted by such track. 26 Provided, further, that as additional consideration for the operation 27 of video lottery terminal facilities, the Catskill regional off-track 28 betting corporation shall maintain the same number of race dates at 29 Monticello racetrack being conducted at the time it receives a license 30 to conduct harness race meetings at such racetrack. 31 Provided, further, that nothing in this paragraph shall prevent each 32 track from entering into an agreement, not to exceed five years, with 33 the organization authorized to represent its horsemen to increase or 34 decrease the portion of its vendor fee dedicated to enhancing purses at 35 such track during the years of participation by such track, or to race 36 fewer dates than required herein. 37 § 5. Section 1612 of the tax law is amended by adding a new subdivi- 38 sion g to read as follows: 39 g. As consideration for operation of a video lottery gaming facility 40 located in the county of Broome, Chemung, Chenango, Delaware, Orange, 41 Rockland, Dutchess, Tompkins, Putnam, or Ulster, and operated by a 42 corporation established pursuant to section five hundred two of the 43 racing, pari-mutuel wagering and breeding law, the division shall cause 44 the vendor's fee to be distributed as follows after the pay out of 45 racing support payments: (1) twenty percent shall be transferred to the 46 county in which the vendor facility is located; and (2) the remainder 47 shall be used for payment of the costs of the corporation's functions 48 pursuant to section five hundred sixteen of the racing, pari-mutuel 49 wagering and breeding law, and the net revenue remaining after payment 50 of such costs shall be divided among the participating counties listed 51 in this paragraph on the basis of population as defined in paragraph b 52 of subdivision two of section five hundred sixteen of the racing, pari- 53 mutuel wagering and breeding law. 54 § 6. Section 301 of the racing, pari-mutuel wagering and breeding law 55 is amended by adding a new subdivision 6 to read as follows:A. 5496 4 1 6. The board shall have the power to issue licenses to the Catskill 2 regional off-track betting corporation or to a subsidiary of said corpo- 3 ration for the purpose of conducting harness race meetings at Monticello 4 racetrack and to make capital improvements to said track, provided that 5 such corporation meets the terms and conditions for licensure as 6 provided under this article. Notwithstanding the provisions of articles 7 five and five-a of this chapter, said corporation shall be deemed to be 8 a harness racing corporation with respect to pari-mutuel wagering 9 conducted at said track pursuant to this chapter, except that net reven- 10 ues derived from such pari-mutuel wagering shall be distributed among 11 the counties that participate in such corporation on the basis of popu- 12 lation, as defined as the total population in each participating county 13 shown by the latest preceding decennial federal census of the calendar 14 year in which such distribution is to be made. 15 § 7. The opening paragraph of subdivision 1 of section 527 of the 16 racing, pari-mutuel wagering and breeding law, as amended by section 4 17 of part BB of chapter 60 of the laws of 2016, is amended to read as 18 follows: 19 The disposition of the retained commission from pools resulting from 20 regular, multiple or exotic bets, as the case may be, whether placed on 21 races run within a region or outside a region, conducted by racing 22 corporations, harness racing associations or corporations, quarter horse 23 racing associations or corporations or races run outside the state shall 24 be governed by the tables in paragraphs a and b of this subdivision. The 25 rate denominated "state tax" shall represent the rate of a reasonable 26 tax imposed upon the retained commission for the privilege of conducting 27 off-track pari-mutuel betting, which tax is hereby levied and shall be 28 payable in the manner set forth in this section. Each off-track betting 29 corporation shall pay to the gaming commission as a regulatory fee, 30 which fee is hereby levied, six-tenths of one percent of the total daily 31 pools of such corporation. Each corporation shall also pay twenty 32 percent of the breaks derived from bets on harness races and fifty 33 percent of the breaks derived from bets on all other races to the agri- 34 culture and New York State horse breeding and development fund and to 35 the thoroughbred breeding and development fund, the total of such 36 payments to be apportioned fifty percent to each such fund. For the 37 purposes of this section, the New York city, Suffolk, Nassau, and the 38 Catskill regions shall constitute a single region and any thoroughbred 39 track located within the Capital District region shall be deemed to be 40 within such single region. A "regional meeting" shall refer to either 41 harness or thoroughbred meetings, or both, except that a franchised 42 corporation shall not be a regional track for the purpose of receiving 43 distributions from bets on thoroughbred races conducted by a thorough- 44 bred track in the Catskill region conducting a mixed meeting. With the 45 exception of a harness racing association or corporation first licensed 46 to conduct pari-mutuel wagering at a track located in Tioga [or], Sara- 47 toga or Sullivan county after January first, two thousand five, racing 48 corporations first licensed to conduct pari-mutuel racing after January 49 first, nineteen hundred eighty-six or a harness racing association or 50 corporation first licensed to conduct pari-mutuel wagering at a track 51 located in Genesee County after January first, two thousand five, and 52 quarter horse tracks shall not be "regional tracks"; if there is more 53 than one harness track within a region, such tracks shall evenly divide 54 payments made pursuant to the tables in paragraphs a and b of this 55 subdivision when neither track is running. In the event a track elects 56 to reduce its retained percentage from any or all of its pari-mutuelA. 5496 5 1 pools, the payments to the track holding the race and the regional track 2 required by paragraphs a and b of this subdivision shall be reduced in 3 proportion to such reduction. Nothing in this section shall be construed 4 to authorize the conduct of off-track betting contrary to the provisions 5 of section five hundred twenty-three of this article. 6 § 8. Section 509-a of the racing, pari-mutuel wagering and breeding 7 law, as added by chapter 681 of the laws of 1989, the opening paragraph 8 as amended by chapter 346 of the laws of 1990, is amended to read as 9 follows: 10 § 509-a. Capital acquisition fund. 1. The corporation may create and 11 establish a capital acquisition fund for the purpose of financing the 12 acquisition, construction or equipping of offices, facilities or prem- 13 ises of the corporation. Such capital acquisition fund shall consist of 14 (i) the amounts specified pursuant to subdivision three-a of section 15 five hundred thirty-two of this chapter; and (ii) contributions from the 16 corporation's pari-mutuel wagering pools, subject to the following limi- 17 tations: 18 [(1)] a. no contribution shall exceed the amount of one percent of the 19 total pari-mutuel wagering pools for the quarter in which the contrib- 20 ution is made; 21 [(2)] b. no contribution shall reduce the amount of quarterly net 22 revenues, exclusive of surcharge revenues, to an amount less than fifty 23 percent of such net revenues; and 24 [(3)] c. the balance of the fund shall not exceed the lesser of one 25 percent of total pari-mutuel wagering pools for the previous twelve 26 months or the undepreciated value of the corporation's offices, facili- 27 ties and premises. 28 2. Notwithstanding any other provision of law or regulation to the 29 contrary, funds in the Catskill off-track betting corporation's capital 30 acquisition fund established pursuant to this section shall be available 31 to the Catskill off-track betting corporation for corporate purposes 32 pursuant to this section until the fund has been exhausted. 33 § 9. Subdivision 2 of section 529 of the racing, pari-mutuel wagering 34 and breeding law is amended to read as follow: 35 2. [Ninety-five percent of the balance of such account remaining36unclaimed as of the last day of February of such year shall be paid to37the state tax commission by March fifteenth. On or before April tenth of38each year the balance of such account and any other unclaimed amounts39received in the course of conducting off-track betting shall be paid by40such corporation to the state tax commission. A penalty of five percent41and interest at the rate of one percent per month from the due date to42the date of payment of the unclaimed balance due March fifteenth or43April tenth, as the case may be, shall be payable in case such balance44is not paid when due. Such amounts, interest and penalties when45collected by the state tax commission shall be deposited into the gener-46al fund of the state treasury.] The balance of such account remaining 47 unclaimed as of April first of such year shall be transferred to the 48 regional corporation's operating account and may be used for any corpo- 49 rate purposes. 50 § 10. Clause (E) of subparagraph 5 of paragraph b of subdivision 1 of 51 section 1016 of the racing, pari-mutuel wagering and breeding law is 52 REPEALED and clause (F) is relettered clause (E). 53 § 11. Clause (F) of subparagraph 6 of paragraph b of subdivision 1 of 54 section 1016 of the racing, pari-mutuel wagering and breeding law is 55 REPEALED and clause (G) is relettered clause (F).A. 5496 6 1 § 12. Subdivision 2 of section 1017 of the racing, pari-mutuel wager- 2 ing and breeding law is REPEALED. 3 § 13. Subdivision 1 of section 519 of the racing, pari-mutuel wagering 4 and breeding law, paragraph e as amended by chapter 260 of the laws of 5 1987, paragraphs f, g and h as amended by chapter 125 of the laws of 6 1997, is amended to read as follows: 7 1. "Region." One or more of the following named regions comprised of 8 the counties indicated: 9 a. Suffolk: Suffolk county; 10 b. Nassau: Nassau county; 11 c. [New York city: the five counties comprising the city of New York;12d.] Catskill: Broome, Chemung, Chenango, Delaware, Orange, Rockland, 13 Sullivan, Tioga, Dutchess, Tompkins, Westchester, Putnam and Ulster 14 counties; 15 [e.] d. Capital District: Albany, Clinton, Columbia, Cortland, Essex, 16 Franklin, Fulton, Greene, Hamilton, Herkimer, Madison, Montgomery, Onei- 17 da, Otsego, Rensselaer, Saratoga, Schenectady, Schoharie, St. Lawrence, 18 Warren and Washington counties; 19 [f.] e. Central: Lewis and Onondaga counties; 20 [g.] f. Western: Allegany, Cattaraugus, Cayuga, Chautauqua, Erie, 21 Genesee, Jefferson, Livingston, Monroe, Niagara, Ontario, Orleans, Oswe- 22 go, Schuyler, Seneca, Steuben, Wayne, Wyoming and Yates counties; 23 [h.] g. Notwithstanding the other provisions of this subdivision, when 24 and if the Central regional off-track betting corporation is estab- 25 lished, it shall include, in addition to the counties listed in para- 26 graph [f] e of this subdivision, the following: Cayuga, Chenango, Cort- 27 land, Franklin, Herkimer, Jefferson, Madison, Oneida, Oswego, Otsego and 28 Tompkins counties. 29 § 14. The racing, pari-mutuel wagering and breeding law is amended by 30 adding four new sections 517-a, 517-b, 517-c and 517-d to read as 31 follows: 32 § 517-a. Catskill off-track betting corporation site approval. 1. The 33 purchase or lease of any property to be used in whole or in part as an 34 off-track betting facility by the Catskill off-track betting corporation 35 in the city of New York shall be conditioned on the approval of the 36 mayor of the city of New York; and with respect to a branch office 37 located wholly or partly within a borough of the city, approval shall 38 also be required by such borough president or their designee. The mayor 39 or borough president's failure to act within thirty days of notification 40 in writing of a proposed site shall be deemed to be approval of such 41 site. 42 2. Notwithstanding subdivision one of this section, the purchase or 43 lease of any property to be used in whole or in part as an off-track 44 betting facility by the Catskill off-track betting corporation in the 45 city of New York which includes or is located within a five mile radius 46 of a site that was approved prior to December sixth, two thousand ten 47 shall not require approval of the mayor or borough president. 48 § 517-b. Catskill off-track betting corporation; collective bargain- 49 ing. Notwithstanding any other provisions of law, rule, or regulation to 50 the contrary, to the extent that Catskill off-track betting opens facil- 51 ities within one of the boroughs of the city of New York to engage in 52 off-track betting or the support staff thereof, such corporation shall 53 recognize the collective bargaining representative of the employees of 54 the New York city off-track betting corporation as of December sixth, 55 two thousand ten, and shall abide by agreements negotiated between such 56 representative and Catskill off-track betting corporation. NothingA. 5496 7 1 contained in this section shall be construed to diminish the rights of 2 employees pursuant to paragraph (e) of subdivision one of section two 3 hundred nine-a of the civil service law. 4 § 517-c. Catskill off-track betting corporation; reporting. On or 5 before December thirty-first, two thousand nineteen, the Catskill off- 6 track betting corporation shall submit to the commission a report 7 setting forth: 1. the corporation's operations and accomplishments to 8 date; 2. the corporation's receipts and expenditures in accordance with 9 categories or classifications established by the corporation for its own 10 operating and capital outlay purposes; 3. the corporation's assets and 11 liabilities at the time of such report, including a schedule of its 12 bonds, notes, or other obligations and the status of reserves, depreci- 13 ations, special, sinking, or other funds; and 4. identities of branch 14 offices being planned or in the process of being constructed or other- 15 wise established and branch offices that have been constructed or estab- 16 lished. 17 § 517-d. Debts of previously established off-track betting corpo- 18 rations. Notwithstanding any other provisions of law, rule, or regu- 19 lation to the contrary, the debts and obligations of the New York city 20 off-track betting corporation shall not transfer by operation of law or 21 otherwise to the Catskill off-track betting corporation. 22 § 15. Subdivisions 3 and 7 of section 532 of the racing, pari-mutuel 23 wagering and breeding law, the opening paragraph of subdivision 3 as 24 amended and subdivision 7 as added by chapter 115 of the laws of 2008, 25 subparagraph (v) of paragraph b of subdivision 3 as added by chapter 286 26 of the laws of 1985 and subparagraph (vi) of paragraph b of subdivision 27 3 as amended by chapter 201 of the laws of 2017, are amended to read as 28 follows: 29 3. The revenues received from any surcharge imposed by subdivision one 30 of this section, plus the breaks, shall be distributed monthly, as 31 follows: 32 a. Fifty per centum shall be retained by the regional corporation and 33 twenty-five per centum to such city, or to the counties and cities enti- 34 tled to receive revenues from the regional corporation pursuant to 35 section five hundred sixteen of this chapter and in the same proportion 36 as provided therein, or to an off-track betting operator; and 37 b. The balance as follows: 38 (i) where the track conducting the race on which the bet was placed is 39 located within a city with a population in excess of one hundred thou- 40 sand, but less than one million, to such city; 41 (ii) where the track conducting the race on which the bet was placed 42 is not located within a city with a population in excess of one hundred 43 thousand, to the county in which such track is located; 44 (iii) where the track conducting the race on which the bet was placed 45 is located partially within a city with a population in excess of one 46 million and partially within a county, [twenty-five per centum of such47balance to the city and the remainder] to the county; and 48 (iv) where the track conducting the race on which the bet was placed 49 is located outside the state, in the same manner as described in para- 50 graph a of this subdivision. 51 (v) where the track conducting the race is located in a thoroughbred 52 special betting district and is simulcasting pursuant to section one 53 thousand eight of this chapter outside such special betting district, 54 ninety per centum to the off-track betting operator and ten per centum 55 to the county in which such track is located.A. 5496 8 1 (vi) for the period of September first, two thousand seventeen until 2 August thirty-first, two thousand twenty-two and where the track 3 conducting the race on which the bet was placed is a harness track 4 located in the county of Erie, to such track. 5 7. Notwithstanding any other provision of this section, any payments 6 otherwise payable to a city with a population of one million or more, 7 [pursuant to this section, other than payments] pursuant to subpara- 8 graphs (i) and (iii) of paragraph b of subdivision three of this 9 section, shall be payable to the corporation and shall be available for 10 its corporate purposes, and may be distributed as net revenue pursuant 11 to section five hundred sixteen of this chapter. 12 § 16. This act shall take effect on the thirtieth day after it shall 13 have become a law.