Bill Text: NY A05954 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the Catskill off-track betting corporation providing licensing and financing to the Monticello racetrack and the ability to provide capital improvements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to racing and wagering [A05954 Detail]
Download: New_York-2019-A05954-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5954 2019-2020 Regular Sessions IN ASSEMBLY February 20, 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 off-track betting corpo- ration providing licensing and financing to the Monticello racetrack 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 section one thousand eight or one thousand nine of the racing, pari-mu- 18 tuel 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 24 as long as such agreement is in place, and when such agreement is accom- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09921-01-9A. 5954 2 1 panied by a detailed spending plan for the corporation established 2 pursuant to section five hundred two of the racing, pari-mutuel wagering 3 and breeding law in the Nassau region, which includes a plan for the 4 timely payment of liabilities due to the franchised corporation, and 5 when such video lottery devices are hosted by the operator of video 6 lottery gaming at Aqueduct racetrack on behalf of the corporation estab- 7 lished pursuant to section five hundred two of the racing, pari-mutuel 8 wagering and breeding law in the Nassau region in lieu of the develop- 9 ment of a facility in Nassau county as authorized by paragraph three of 10 this subdivision [a of this section]. Such agreement reached by the 11 parties shall identify the agency principally responsible for funding, 12 approving or undertaking any actions of such agreement. Provided, 13 however, nothing in this paragraph shall infringe upon the rights of the 14 corporation established pursuant to section five hundred two of the 15 racing, pari-mutuel wagering and breeding law in the Nassau region to 16 develop a facility pursuant to paragraph three of this subdivision upon 17 the expiration, termination, or withdrawal of such agreement[.]; and 18 (5) a maximum of three facilities, which shall be vendors for all 19 purposes under this article, with a total of one thousand one hundred 20 ten video lottery gaming devices in the county of Broome, Chemung, 21 Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam or 22 Ulster and to be operated by a corporation established pursuant to 23 section five hundred two of the racing, pari-mutuel wagering and breed- 24 ing law, and located within a facility authorized pursuant to section 25 one thousand eight or one thousand nine of the racing, pari-mutuel 26 wagering and breeding law. 27 § 3. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b 28 of section 1612 of the tax law, as amended by chapter 175 of the laws of 29 2013, is amended to read as follows: 30 (G-1) Notwithstanding [clause] clauses (A) and (B) of this subpara- 31 graph, when a video lottery gaming facility is located in [either] the 32 county of Broome, Chemung, Chenango, Delaware, Orange, Rockland, Dutch- 33 ess, Tompkins, Putnam, Ulster, Nassau or Suffolk and is operated by a 34 corporation established pursuant to section five hundred two of the 35 racing, pari-mutuel wagering and breeding law at a rate of thirty-five 36 percent of the total revenue wagered at the vendor after payout for 37 prizes pursuant to this chapter; 38 § 4. Paragraph 2 of subdivision b of section 1612 of the tax law, as 39 amended by section 1 of part OO of chapter 59 of the laws of 2014, is 40 amended to read as follows: 41 2. As consideration for the operation of a video lottery gaming facil- 42 ity, the division, shall cause the investment in the racing industry of 43 a portion of the vendor fee received pursuant to paragraph one of this 44 subdivision in the manner set forth in this subdivision. With the 45 exception of Aqueduct racetrack or a facility in the county of Nassau or 46 Suffolk operated by a corporation established pursuant to section five 47 hundred two of the racing, pari-mutuel wagering and breeding law, each 48 such track shall dedicate a portion of its vendor fees, received pursu- 49 ant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) 50 of paragraph one of this subdivision, for the purpose of enhancing purs- 51 es at such track, in an amount equal to eight and three-quarters percent 52 of the total revenue wagered at the vendor track after pay out for 53 prizes. Any video lottery gaming facility in the Catskill region, as 54 defined in section five hundred nineteen of the racing, pari-mutuel 55 wagering and breeding law and to be operated by a corporation estab- 56 lished pursuant to section five hundred two of the racing, pari-mutuelA. 5954 3 1 wagering and breeding law, shall dedicate a portion of its vendor fee 2 for the purpose of enhancing purses at Monticello racetrack in an amount 3 equal to eight and three-quarters percent of the total revenue wagered 4 at the facility after pay out for prizes. One percent of the gross purse 5 enhancement amount, as required by this subdivision, shall be paid to 6 the gaming commission to be used exclusively to promote and ensure 7 equine health and safety in New York. Any portion of such funding to the 8 gaming commission unused during a fiscal year shall be returned to the 9 video lottery gaming operators on a pro rata basis in accordance with 10 the amounts originally contributed by each operator and shall be used 11 for the purpose of enhancing purses at such track. One and one-half 12 percent of the gross purse enhancement amount at a thoroughbred track, 13 as required by this subdivision, shall be paid to an account established 14 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel 15 wagering and breeding law to be used exclusively to provide health 16 insurance for jockeys. In addition, with the exception of Aqueduct race- 17 track or a facility in the county of Nassau or Suffolk operated by a 18 corporation established pursuant to section five hundred two of the 19 racing, pari-mutuel wagering and breeding law, one and one-quarter 20 percent of total revenue wagered at the vendor track after pay out for 21 prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) 22 of subparagraph (ii) of paragraph one of this subdivision, shall be 23 distributed to the appropriate breeding fund for the manner of racing 24 conducted by such track. 25 Provided, further, that as additional consideration for the operation 26 of video lottery gaming facilities, the Catskill regional off-track-bet- 27 ting corporation shall maintain the same number of race dates at Monti- 28 cello racetrack being conducted at the time it receives a license to 29 conduct harness race meetings at such racetrack. 30 Provided, further, that nothing in this paragraph shall prevent each 31 track from entering into an agreement, not to exceed five years, with 32 the organization authorized to represent its horsemen to increase or 33 decrease the portion of its vendor fee dedicated to enhancing purses at 34 such track during the years of participation by such track, or to race 35 fewer dates than required herein. 36 § 5. Section 1612 of the tax law is amended by adding a new subdivi- 37 sion i to read as follows: 38 i. As consideration for operation of a video lottery gaming facility 39 located in the counties of Broome, Chemung, Chenango, Delaware, Orange, 40 Rockland, Dutchess, Tompkins, Putnam, or Ulster, and operated by a 41 corporation established pursuant to section five hundred two of the 42 racing, pari-mutuel wagering and breeding law, the division shall cause 43 the vendor's fee to be distributed as follows after the pay out of 44 racing support payments: (1) twenty percent shall be transferred to the 45 county in which the vendor facility is located; and (2) the remainder 46 shall be used for payment of the costs of the corporation's functions 47 pursuant to section five hundred sixteen of the racing, pari-mutuel 48 wagering and breeding law, and the net revenue remaining after payment 49 of such costs shall be divided among the participating counties listed 50 in this paragraph on the basis of population as defined in paragraph b 51 of subdivision two of section five hundred sixteen of the racing, pari- 52 mutuel wagering and breeding law. 53 § 6. Section 301 of the racing, pari-mutuel wagering and breeding law 54 is amended by adding a new subdivision 6 to read as follows: 55 6. The board shall have the power to issue licenses to the Catskill 56 regional off-track-betting corporation or to a subsidiary of said corpo-A. 5954 4 1 ration for the purpose of conducting harness race meetings at Monticello 2 racetrack and to make capital improvements to said track, provided that 3 such corporation meets the terms and conditions for licensure as 4 provided under this article. Notwithstanding the provisions of articles 5 five and five-a of this chapter, said corporation shall be deemed to be 6 a harness racing corporation with respect to pari-mutuel wagering 7 conducted at said track pursuant to this chapter, except that net reven- 8 ues derived from such pari-mutuel wagering shall be distributed among 9 the counties that participate in such corporation on the basis of popu- 10 lation, as defined as the total population in each participating county 11 shown by the latest preceding decennial federal census of the calendar 12 year in which such distribution is to be made. 13 § 7. The opening paragraph of subdivision 1 of section 527 of the 14 racing, pari-mutuel wagering and breeding law, as amended by section 4 15 of part BB of chapter 60 of the laws of 2016, is amended to read as 16 follows: 17 The disposition of the retained commission from pools resulting from 18 regular, multiple or exotic bets, as the case may be, whether placed on 19 races run within a region or outside a region, conducted by racing 20 corporations, harness racing associations or corporations, quarter horse 21 racing associations or corporations or races run outside the state shall 22 be governed by the tables in paragraphs a and b of this subdivision. The 23 rate denominated "state tax" shall represent the rate of a reasonable 24 tax imposed upon the retained commission for the privilege of conducting 25 off-track pari-mutuel betting, which tax is hereby levied and shall be 26 payable in the manner set forth in this section. Each off-track betting 27 corporation shall pay to the gaming commission as a regulatory fee, 28 which fee is hereby levied, six-tenths of one percent of the total daily 29 pools of such corporation. Each corporation shall also pay twenty 30 percent of the breaks derived from bets on harness races and fifty 31 percent of the breaks derived from bets on all other races to the agri- 32 culture and New York State horse breeding and development fund and to 33 the thoroughbred breeding and development fund, the total of such 34 payments to be apportioned fifty percent to each such fund. For the 35 purposes of this section, the New York city, Suffolk, Nassau, and the 36 Catskill regions shall constitute a single region and any thoroughbred 37 track located within the Capital District region shall be deemed to be 38 within such single region. A "regional meeting" shall refer to either 39 harness or thoroughbred meetings, or both, except that a franchised 40 corporation shall not be a regional track for the purpose of receiving 41 distributions from bets on thoroughbred races conducted by a thorough- 42 bred track in the Catskill region conducting a mixed meeting. With the 43 exception of a harness racing association or corporation first licensed 44 to conduct pari-mutuel wagering at a track located in Tioga [or], Sara- 45 toga or Sullivan county after January first, two thousand five, racing 46 corporations first licensed to conduct pari-mutuel racing after January 47 first, nineteen hundred eighty-six or a harness racing association or 48 corporation first licensed to conduct pari-mutuel wagering at a track 49 located in Genesee County after January first, two thousand five, and 50 quarter horse tracks shall not be "regional tracks"; if there is more 51 than one harness track within a region, such tracks shall evenly divide 52 payments made pursuant to the tables in paragraphs a and b of this 53 subdivision when neither track is running. In the event a track elects 54 to reduce its retained percentage from any or all of its pari-mutuel 55 pools, the payments to the track holding the race and the regional track 56 required by paragraphs a and b of this subdivision shall be reduced inA. 5954 5 1 proportion to such reduction. Nothing in this section shall be construed 2 to authorize the conduct of off-track betting contrary to the provisions 3 of section five hundred twenty-three of this article. 4 § 8. This act shall take effect on the thirtieth day after it shall 5 have become a law.