Bill Text: NY A09270 | 2011-2012 | General Assembly | Introduced


Bill Title: Authorizes the division of the lottery to conduct a pilot program for video lottery wagering at the regional off-track betting facilities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-02-09 - referred to racing and wagering [A09270 Detail]

Download: New_York-2011-A09270-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         9270
                                 I N  A S S E M B L Y
                                   February 9, 2012
                                      ___________
       Introduced by M. of A. HOOPER -- read once and referred to the Committee
         on Racing and Wagering
       AN  ACT  to  amend  the tax law and the racing, pari-mutuel wagering and
         breeding law, in relation to authorizing the division of  the  lottery
         to  conduct  the  operation of video lottery wagering at regional off-
         track betting facilities
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The  tax law is amended by adding a new section 1617-b to
    2  read as follows:
    3    S 1617-B. VIDEO LOTTERY GAMING AT  SIMULCAST  TELETHEATERS.  A.    THE
    4  DIVISION  IS  HEREBY  AUTHORIZED TO LICENSE, PURSUANT TO RULES AND REGU-
    5  LATIONS TO BE PROMULGATED  BY  THE  DIVISION,  THE  OPERATION  OF  VIDEO
    6  LOTTERY  GAMING  TO  BE CONDUCTED AT A REGIONAL OFF-TRACK BETTING CORPO-
    7  RATION FACILITY LICENSED PURSUANT TO SECTION ONE THOUSAND  NINE  OF  THE
    8  RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING LAW, LOCATED WITHIN NASSAU
    9  COUNTY. SUCH RULES AND REGULATIONS SHALL  PROVIDE,  AS  A  CONDITION  OF
   10  LICENSURE,  THAT  AN OFF-TRACK BETTING FACILITY TO BE LICENSED IS CERTI-
   11  FIED TO BE IN COMPLIANCE WITH ALL STATE AND LOCAL FIRE AND SAFETY CODES,
   12  THAT THE DIVISION IS AFFORDED ADEQUATE SPACE, INFRASTRUCTURE, AND  AMEN-
   13  ITIES  CONSISTENT  WITH  INDUSTRY  STANDARDS FOR SUCH VIDEO GAMING OPER-
   14  ATIONS AS FOUND IN OTHER STATES, THAT OFF-TRACK BETTING FACILITY EMPLOY-
   15  EES INVOLVED IN THE OPERATION OF VIDEO LOTTERY GAMING PURSUANT  TO  THIS
   16  SECTION  ARE  LICENSED  BY THE RACING AND WAGERING BOARD, AND SUCH OTHER
   17  TERMS AND  CONDITIONS  OF  LICENSURE  AS  THE  DIVISION  MAY  ESTABLISH.
   18  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF LAW, VIDEO LOTTERY GAMING
   19  AT AN OFF-TRACK BETTING FACILITY  PURSUANT  TO  THIS  SECTION  SHALL  BE
   20  DEEMED  AN  APPROVED  ACTIVITY  FOR  SUCH  OFF-TRACK BETTING CORPORATION
   21  UNDER THE RELEVANT CITY, COUNTY, TOWN, OR VILLAGE  LAND  USE  OR  ZONING
   22  ORDINANCES,  RULES,  OR  REGULATIONS.  NO  OFF-TRACK BETTING CORPORATION
   23  OPERATING VIDEO LOTTERY GAMING PURSUANT TO THIS SECTION MAY  HOUSE  SUCH
   24  GAMING  ACTIVITY  IN  A  STRUCTURE DEEMED OR APPROVED BY THE DIVISION AS
   25  "TEMPORARY" FOR LONGER THAN EIGHTEEN MONTHS.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14369-01-2
       A. 9270                             2
    1    B. THE DIVISION, IN CONSULTATION WITH THE RACING AND  WAGERING  BOARD,
    2  SHALL  ESTABLISH  STANDARDS  FOR APPROVAL OF THE TEMPORARY AND PERMANENT
    3  PHYSICAL LAYOUT AND CONSTRUCTION OF ANY FACILITY OR BUILDING DEVOTED  TO
    4  A  VIDEO LOTTERY GAMING OPERATION. IN REVIEWING SUCH APPLICATION FOR THE
    5  CONSTRUCTION  OR RECONSTRUCTION OF THE FACILITY DEVOTED TO THE OPERATION
    6  OR HOUSING OF VIDEO LOTTERY GAMING OPERATIONS, THE DIVISION, IN  CONSUL-
    7  TATION WITH THE RACING AND WAGERING BOARD, SHALL ENSURE THAT SUCH FACIL-
    8  ITY:
    9    (1)  POSSESSES SUPERIOR CONSUMER AMENITIES AND CONVENIENCES TO ENCOUR-
   10  AGE AND ATTRACT THE PATRONAGE OF TOURISTS AND OTHER VISITORS FROM ACROSS
   11  THE REGION, STATE, AND NATION; AND
   12    (2) HAS ADEQUATE MOTOR VEHICLE PARKING FACILITIES  TO  SATISFY  PATRON
   13  REQUIREMENTS.
   14    C.  VIDEO  LOTTERY  GAMING  SHALL  ONLY  BE PERMITTED FOR NO MORE THAN
   15  SIXTEEN CONSECUTIVE HOURS PER DAY AND ON NO DAY SHALL SUCH OPERATION  BE
   16  CONDUCTED PAST 2:00 A.M.
   17    D.  THE DIVISION SHALL PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
   18  NECESSARY FOR THE IMPLEMENTATION OF VIDEO LOTTERY GAMING  IN  ACCORDANCE
   19  WITH THE PROVISIONS OF THIS SECTION.
   20    E.  ALL  WORKERS ENGAGED IN THE CONSTRUCTION, RECONSTRUCTION, DEVELOP-
   21  MENT, REHABILITATION, OR MAINTENANCE OF ANY FACILITY FOR THE PURPOSE  OF
   22  THE  INSTALLATION,  MAINTENANCE,  OR  REMOVAL OF VIDEO LOTTERY TERMINALS
   23  SHALL BE SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT  AND  NINE  OF  THE
   24  LABOR LAW TO THE EXTENT PROVIDED IN SUCH ARTICLES.
   25    F. NOTWITHSTANDING SECTION ONE HUNDRED TWENTY-ONE OF THE STATE FINANCE
   26  LAW,  ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, THE VENDOR OFF-TRACK
   27  BETTING CORPORATION SHALL PAY INTO THE STATE TREASURY, TO THE CREDIT  OF
   28  THE  STATE  LOTTERY  FUND  CREATED  BY SECTION NINETY-TWO-C OF THE STATE
   29  FINANCE LAW, NOT LESS THAN THE BALANCE OF THE TOTAL REVENUE AFTER PAYOUT
   30  FOR PRIZES FOR VIDEO LOTTERY GAMING AT THE  LICENSED  OFF-TRACK  BETTING
   31  FACILITY:    (1)  LESS TEN PERCENT OF THE TOTAL REVENUE AFTER PAYOUT FOR
   32  PRIZES TO BE PAID TO THE DIVISION  FOR  OPERATION,  ADMINISTRATION,  AND
   33  PROCUREMENT  PURPOSES;  (2)  LESS  A  VENDOR'S  FEE  THE AMOUNT OF 32.75
   34  PERCENT OF THE TOTAL REVENUE AFTER PAYOUT FOR  PRIZES  WHICH  IS  TO  BE
   35  RETAINED  BY  THE  VENDOR OFF-TRACK BETTING CORPORATION FOR SERVING AS A
   36  LOTTERY AGENT; (3) LESS FIVE PERCENT OF THE TOTAL REVENUE  AFTER  PAYOUT
   37  FOR  PRIZES  WHICH  IS TO BE PAID BY THE VENDOR OFF-TRACK BETTING CORPO-
   38  RATION TO THE RESPECTIVE COUNTY IN WHICH THE REGIONAL OFF-TRACK  BETTING
   39  CORPORATION  OPERATES AND WHICH SHALL BE EARMARKED BY THE COUNTY FOR THE
   40  SUPPORT OF THE COMMUNITY COLLEGE WITHIN THE NEW  YORK  STATE  UNIVERSITY
   41  SYSTEM  OPERATING  WITHIN SUCH COUNTY; AND (4) LESS A VENDOR'S MARKETING
   42  ALLOWANCE TO BE RETAINED BY THE VENDOR OFF-TACK BETTING  CORPORATION  AT
   43  THE  RATE  OF  TEN  PERCENT FOR THE FIRST ONE HUNDRED MILLION DOLLARS OF
   44  TOTAL REVENUE AFTER PAYOUT FOR PRIZES AND EIGHT  PERCENT  THEREAFTER  OF
   45  THE TOTAL REVENUE AFTER PAYOUT FOR PRIZES.
   46    (A)  AS  CONSIDERATION  FOR  THE  OPERATION  OF A VIDEO LOTTERY GAMING
   47  FACILITY, THE VENDOR  OFF-TRACK  BETTING  CORPORATION  SHALL  CAUSE  THE
   48  INVESTMENT  IN  THE  RACING  INDUSTRY  OF A PORTION OF THE TOTAL REVENUE
   49  AFTER PAYOUT FOR PRIZES IN THE MANNER SET FORTH IN THIS SUBDIVISION.  ON
   50  OR  BEFORE  THE TWENTIETH DAY OF EACH MONTH THE VENDOR OFF-TRACK BETTING
   51  CORPORATION SHALL DISTRIBUTE TO THE NEW YORK STATE THOROUGHBRED BREEDING
   52  AND DEVELOPMENT FUND CREATED PURSUANT TO SECTION TWO  HUNDRED  FIFTY-TWO
   53  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW .625 PERCENT OF THE
   54  TOTAL  REVENUE  AFTER  PAYOUT  FOR PRIZES AND TO THE AGRICULTURE AND NEW
   55  YORK STATE HORSE BREEDING DEVELOPMENT FUND CREATED PURSUANT  TO  SECTION
   56  THREE  HUNDRED  THIRTY  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
       A. 9270                             3
    1  LAW .625 PERCENT OF THE TOTAL REVENUES AFTER PAYOUT FOR PRIZES. IN ADDI-
    2  TION, THE OFF-TRACK BETTING CORPORATION SHALL DISTRIBUTE 3.5 PERCENT  OF
    3  THE  TOTAL REVENUE AFTER PAYOUT FOR PRIZES TO THE CORPORATION'S REGIONAL
    4  THOROUGHBRED AND HARNESS TRACKS IN PROPORTION TO THE RATIO OF THE WAGERS
    5  PLACED  AT THE REGIONAL OFF-TRACK BETTING CORPORATION ON RACES CONDUCTED
    6  BY EACH REGIONAL TRACK THE PRECEDING MONTH, TO BE DEDICATED TO ENHANCING
    7  PURSES AT THE RESPECTIVE TRACK.
    8    (B) THE VENDOR UNDER THIS SECTION SHALL  RECEIVE  A  VENDOR'S  CAPITAL
    9  AWARD  OF FOUR PERCENT OF THE TOTAL REVENUE AT THE VENDOR FACILITY AFTER
   10  PAYOUT FOR PRIZES, WHICH SHALL BE USED EXCLUSIVELY FOR  CAPITAL  PROJECT
   11  INVESTMENT  TO  IMPROVE  THE  FACILITIES  OF THE VENDOR WHICH PROMOTE OR
   12  ENCOURAGE INCREASED ATTENDANCE AT THE VIDEO LOTTERY  FACILITY  INCLUDING
   13  BUT  NOT  LIMITED  TO  HOTELS,  OTHER  LODGING FACILITIES, ENTERTAINMENT
   14  FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENT ARENAS,  PARKING
   15  GARAGES AND OTHER IMPROVEMENTS THAT ENHANCE FACILITY AMENITIES; PROVIDED
   16  THAT  SUCH  CAPITAL  INVESTMENTS  SHALL  BE  APPROVED BY THE DIVISION IN
   17  CONSULTATION WITH THE RACING AND WAGERING BOARD.
   18    G. THE SPECIFICATION FOR VIDEO LOTTERY GAMING  SHALL  BE  DESIGNED  IN
   19  SUCH  A MANNER AS TO PAY PRIZES THAT AVERAGE NO LESS THAN NINETY PERCENT
   20  OF SALES.
   21    H. OF THE TEN PERCENT RETAINED  BY  THE  DIVISION  FOR  ADMINISTRATIVE
   22  PURPOSES,  ANY AMOUNTS BEYOND THAT WHICH ARE NECESSARY FOR THE OPERATION
   23  AND ADMINISTRATION OF THIS SECTION SHALL BE DEPOSITED  BY  THE  DIVISION
   24  INTO  THE STATE LOTTERY FUND CREATED PURSUANT TO SECTION NINETY-TWO-C OF
   25  THE STATE FINANCE LAW.
   26    S 2. Subdivisions 1 and 2 of section 516 of  the  racing,  pari-mutuel
   27  wagering and breeding law are amended to read as follows:
   28    1. The monetary transactions of the corporation and the keeping of its
   29  books  and  accounts  SHALL  BE  IN  ACCORDANCE  WITH GENERALLY ACCEPTED
   30  ACCOUNTING PRINCIPLES AND shall be under the supervision of the board of
   31  directors who shall be subject to the general and specific  jurisdiction
   32  of the state board and to audit by the comptroller.
   33    2.  After  payment of all of the costs of the corporation's functions,
   34  net revenue remaining to the corporation shall be  divided,  [quarterly]
   35  ANNUALLY,  not  more  than  thirty  days after the close of the calendar
   36  [quarter] YEAR, among the participating counties in accordance with  the
   37  following provisions:
   38    a.  Fifty  percent of such revenue distributed among the participating
   39  counties on the basis of the proportion of the total off-track  pari-mu-
   40  tuel  wagering  accepted by the corporation during the previous calendar
   41  quarter that originated in the branch offices located  in  each  partic-
   42  ipating county;
   43    b.  Fifty  percent  of  such  revenue  on  the basis of population, as
   44  defined as the total population in each participating  county  shown  by
   45  the latest preceding decennial federal census completed and published as
   46  a  final  population  count  by  the  United States bureau of the census
   47  preceding the commencement of the calendar year in which  such  distrib-
   48  ution is to be made; and
   49    c. A participating county containing a city electing to participate in
   50  the  management  and  revenues of a corporation under subdivision two of
   51  section five hundred  two  of  this  article  shall  distribute  revenue
   52  received  under  paragraphs  a  and  b  of this subdivision to such city
   53  according to the proportion such city's population bears to the county's
   54  population.
   55    S 3. Section 503 of the racing, pari-mutuel wagering and breeding  law
   56  is amended by adding a new subdivision 10-a to read as follows:
       A. 9270                             4
    1    10-A.  TO  OPERATE  VIDEO LOTTERY GAMING AT A CORPORATION'S FACILITIES
    2  WHICH ARE LICENSED PURSUANT TO SECTION ONE THOUSAND NINE OF  THIS  CHAP-
    3  TER;
    4    S 4. This act shall take effect immediately.
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