Bill Text: NY A42001 | 2009-2010 | General Assembly | Introduced
Bill Title: Establishes the New York Racing Network, Inc.; regulates off-track betting payments; authorizes subsidized free play credits.
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2010-12-07 - LOST [A42001 Detail]
Download: New_York-2009-A42001-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1
Third Extraordinary Session
I N A S S E M B L Y
November 29, 2010
___________
Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
once and referred to the Committee on Ways and Means
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to pari-mutuel tax rates at certain facilities and establish-
ing the New York Racing Network, Inc.; and to amend the tax law, in
relation to authorizing subsidized free play credits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Legislative findings and intent. The legislature hereby
2 finds and declares that the New York city off-track betting corporation
3 is an integral component of the horse racing industry in New York. The
4 legislature further finds that in order to preserve its continuing
5 existence, the corporation was allowed by executive order to file a
6 petition for bankruptcy protection under Chapter 9 of the Bankruptcy
7 Code in the southern district of New York. The bankruptcy proceedings
8 have resulted in a reorganization plan, the approval of which by the
9 official committee of creditors is contingent upon enacting legislation
10 to implement certain elements of that plan.
11 The legislature further finds that the labor unions representing the
12 employees of the corporation have signed memoranda of agreement, which
13 ratify portions of the reorganization plan affecting their membership.
14 This approval represents concurrence with the corporation's leadership
15 and the view of the legislature that a plan that allows the corporation
16 to remain sustainable upon exiting bankruptcy will preserve employment
17 opportunities for New York residents, and is preferable to a liquidation
18 of the corporation. Furthermore, the legislature finds that the tens of
19 thousands of jobs both directly and indirectly supported by the racing
20 industry will be protected by a reorganization plan that supports a
21 seamless exit from bankruptcy for the corporation.
22 Therefore, the legislature finds this legislation, which strictly
23 enacts elements of the reorganization plan, to be essential to maintain-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12318-07-0
A. 1 2
1 ing a vibrant horse racing industry in New York, and to protecting the
2 thousands of jobs supported by the horse racing industry.
3 S 2. Subdivision 5-a of section 307 of the racing, pari-mutuel wager-
4 ing and breeding law, as amended by chapter 18 of the laws of 2008, is
5 amended to read as follows:
6 5-a. The board shall not issue a license pursuant to this section to
7 any harness racing association or corporation which does not apply to
8 conduct at its facilities a minimum number of pari-mutuel programs and
9 pari-mutuel races at its facilities equal to at least seventy-five per
10 centum of the programs and races so conducted during nineteen hundred
11 eighty-five or during nineteen hundred eighty-six, or one hundred per
12 centum of the programs and races so conducted during two thousand,
13 whichever is greater; provided, however, that for a harness racing asso-
14 ciation or corporation located in Westchester and Erie counties, such
15 minimum number of pari-mutuel programs and pari-mutuel races at its
16 facilities shall equal at least one hundred per centum of the programs
17 and races conducted during two thousand, AND PROVIDED FURTHER, HOWEVER,
18 THAT FOR A HARNESS ASSOCIATION OR CORPORATION LOCATED IN SULLIVAN COUN-
19 TY, SUCH MINIMUM NUMBER OF PARI-MUTUEL PROGRAMS AND PARI-MUTUEL RACES AT
20 ITS FACILITIES SHALL EQUAL AT LEAST SIXTY PER CENTUM OF THE PROGRAMS AND
21 RACES SO CONDUCTED DURING NINETEEN HUNDRED EIGHTY-SIX OR EIGHTY PER
22 CENTUM OF THE PROGRAMS AND RACES SO CONDUCTED DURING TWO THOUSAND,
23 WHICHEVER IS GREATER. If the track did not conduct races during two
24 thousand, such minimum number of pari-mutuel programs and pari-mutuel
25 races at its facilities shall equal at least ninety per centum of the
26 programs and races conducted during two thousand at Buffalo raceway, in
27 the town of Hamburg and county of Erie, unless cancellation of a race
28 day because of an act of God, which the board approves or because of
29 weather conditions that are unsafe or hazardous which the board approves
30 shall not be construed as a failure to conduct a race day; provided
31 further, the board shall not grant a license to such association or
32 corporation upon application unless such programs and races are
33 conducted during the same calendar year period as were conducted during
34 the applicable period above utilized to measure the minimum number of
35 pari-mutuel programs and pari-mutuel races, as approved by the board.
36 Nothing in the foregoing paragraph shall affect any agreement in effect
37 on or before the effective date of this paragraph. The board may grant a
38 license to such association or corporation to conduct fewer such
39 programs and races for good cause shown due to factors beyond the
40 control of such association or corporation, and upon consent of the
41 representative horsemen's association, as determined pursuant to section
42 three hundred eighteen of this article.
43 S 3. The opening paragraph of paragraph a of subdivision 5 of section
44 318 of the racing, pari-mutuel wagering and breeding law, as added by
45 chapter 261 of the laws of 1988, is amended to read as follows:
46 Notwithstanding any other provision of this section to the contrary,
47 for any calendar year commencing on or after January first, nineteen
48 hundred eighty-nine, in which a harness racing association or corpo-
49 ration does not conduct a minimum number of pari-mutuel programs and
50 pari-mutuel races at its facilities equal to at least ninety per centum
51 of the programs and races so conducted during nineteen hundred eighty-
52 five or during nineteen hundred eighty-six, PROVIDED, HOWEVER, THAT FOR
53 A HARNESS RACING ASSOCIATION OR CORPORATION LOCATED IN SULLIVAN COUNTY,
54 FOR ANY CALENDAR YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND
55 ELEVEN, IN WHICH SUCH HARNESS RACING ASSOCIATION OR CORPORATION DOES NOT
56 CONDUCT A MINIMUM NUMBER OF PARI-MUTUEL PROGRAMS AND PARI-MUTUEL RACES
A. 1 3
1 AT SUCH FACILITIES EQUAL TO AT LEAST SEVENTY PER CENTUM OF THE PROGRAMS
2 AND RACES SO CONDUCTED DURING NINETEEN HUNDRED EIGHTY-FIVE OR DURING
3 NINETEEN HUNDRED EIGHTY-SIX, whichever is less, in lieu of the tax rates
4 set forth in subdivision one of this section the applicable pari-mutuel
5 tax rates for such association or corporation with respect to on-track
6 pari-mutuel betting pools during such year shall be as follows:
7 S 4. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
8 and breeding law is amended to read as follows:
9 2. Ninety-five percent of the balance of such account remaining
10 unclaimed as of the last day of February of such year shall be paid BY
11 EACH REGIONAL OFF-TRACK BETTING CORPORATION, EXCEPT THE NEW YORK CITY
12 OFF-TRACK BETTING CORPORATION, to the state tax commission by March
13 fifteenth. On or before April tenth of each year the balance of such
14 account and any other unclaimed amounts received in the course of
15 conducting off-track betting shall be paid by [such] EACH REGIONAL OFF-
16 TRACK BETTING corporation, EXCEPT THE NEW YORK CITY OFF-TRACK BETTING
17 CORPORATION, to the state tax commission. A penalty of five percent and
18 interest at the rate of one percent per month from the due date to the
19 date of payment of the unclaimed balance due March fifteenth or April
20 tenth, as the case may be, shall be payable in case such balance is not
21 paid when due. Such amounts, interest and penalties when collected by
22 the state tax commission shall be deposited into the general fund of the
23 state treasury. THE BALANCE OF SUCH UNCLAIMED ACCOUNTS RETAINED BY THE
24 NEW YORK CITY OFF-TRACK BETTING CORPORATION MAY BE USED FOR ITS CORPO-
25 RATE PURPOSES.
26 S 5. Subdivisions 1, 3, 6, 7 and 11 of section 603 of the racing,
27 pari-mutuel wagering and breeding law, as amended by chapter 115 of the
28 laws of 2008, are amended to read as follows:
29 1. A corporation to be known as the "New York city off-track betting
30 corporation" is hereby created. Such corporation shall be a body corpo-
31 rate and politic constituting a public benefit corporation. It shall be
32 administered by a board of directors consisting of five [members] VOTING
33 DIRECTORS AND THREE NON-VOTING DIRECTORS, who may be public officers,
34 appointed by the governor [for fixed terms as hereinafter provided, one
35 of whom shall be appointed on the recommendation of the temporary presi-
36 dent of the senate, and one of whom shall be appointed on the recommen-
37 dation of the speaker of the assembly]. THE VOTING DIRECTORS, ONE OF
38 WHOM SHALL BE APPOINTED ON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT
39 OF THE SENATE AND ONE OF WHOM SHALL BE APPOINTED ON THE RECOMMENDATION
40 OF THE SPEAKER OF THE ASSEMBLY, SHALL SERVE FOR FIXED TERMS AS HEREIN-
41 AFTER PROVIDED. OF THE NON-VOTING DIRECTORS, ONE SHALL BE APPOINTED ON
42 THE RECOMMENDATION OF THE FRANCHISED CORPORATION; ONE ON THE JOINT
43 RECOMMENDATION OF THE HARNESS TRACKS LOCATED IN WESTCHESTER AND SULLIVAN
44 COUNTIES; AND ONE ON THE RECOMMENDATION OF THE UNION REPRESENTING A
45 MAJORITY OF THE UNIONIZED EMPLOYEES OF THE CORPORATION. THE NON-VOTING
46 DIRECTORS SHALL NOT HAVE A FIDUCIARY OBLIGATION TO THE CORPORATION, BUT
47 SHALL BE REQUIRED TO PROTECT INFORMATION DEEMED TO BE, OR WHICH COULD BE
48 REASONABLY ASSUMED TO BE, CONFIDENTIAL, INCLUDING, WITHOUT LIMITATION,
49 ALL MATTERS DISCUSSED IN EXECUTIVE SESSION.
50 3. The governor shall designate one of the VOTING directors to be
51 chairman of the board of directors and may at his OR HER pleasure,
52 change his OR HER designation of any such VOTING director to be chair-
53 man.
54 6. The powers of the corporation shall be vested in and exercised by
55 the board at a meeting duly held at a time fixed by any by-law adopted
56 by the board, or at any duly adjourned meeting of such meeting or at any
A. 1 4
1 meeting held upon reasonable notice to all of the directors, or upon
2 written waiver thereof, and a majority of the whole number of VOTING
3 directors shall constitute a quorum; provided that neither the business
4 nor the powers of the corporation shall be transacted or exercised
5 except pursuant to the favorable vote of at least a majority of the
6 VOTING directors present at a meeting at which a quorum is in attend-
7 ance.
8 7. The board may delegate to one or more of the VOTING directors,
9 officers, agents or employees of the corporation such powers and duties
10 as it may deem proper.
11 11. The fiscal year of the corporation shall be the same as that of
12 [the city, provided, however, that the corporation shall have a nine
13 month fiscal year from July first, two thousand eight through March
14 thirty-first, two thousand nine, and then the fiscal year of the corpo-
15 ration shall be the same as] the state.
16 S 6. Subdivisions 8 and 11 of section 604 of the racing, pari-mutuel
17 wagering and breeding law, subdivision 8 as amended by chapter 115 of
18 the laws of 2008, are amended to read as follows:
19 8. To make contracts and leases, including joint ventures with third
20 parties or entities, EXCEPT THAT ANY JOINT VENTURE WITH THIRD PARTIES OR
21 ENTITIES FOR THE PURPOSE OF RAISING CAPITAL FOR THE CONSTRUCTION AND
22 OPERATION OF A NEW OR EXPANDED LICENSED SIMULCAST FACILITY AS DEFINED IN
23 SUBDIVISION J OF SECTION ONE THOUSAND ONE OF THIS CHAPTER OR EXPANDED
24 SIMULCAST THEATER AS DEFINED IN SUBDIVISION 1 OF SECTION ONE THOUSAND
25 ONE OF THIS CHAPTER SHALL BE SUBJECT TO A RIGHT OF FIRST REFUSAL BY ANY
26 NEW YORK STATE LICENSED HARNESS TRACK OR FRANCHISED CORPORATION WITH
27 RACING FACILITIES LOCATED WITHIN THIRTY MILES OF THE PROPOSED LOCATION
28 (IF MORE THAN ONE SUCH HARNESS TRACK OR FRANCHISED CORPORATION'S RACING
29 FACILITIES ARE LOCATED WITHIN THIRTY MILES OF THE PROPOSED LOCATION THEN
30 BOTH WILL HAVE THE RIGHT OF FIRST REFUSAL AND MAY PARTNER TOGETHER THER-
31 EIN) TO BE THE FINANCIAL AND OPERATING PARTNER OF THE CORPORATION IN
32 SUCH JOINT VENTURE, and to execute all instruments necessary or conven-
33 ient to accomplish its corporate purpose; provided, however, that the
34 corporation may only enter into agreements for the purchase or lease of
35 any property to be used in whole or in part as an off-track betting
36 branch office which is conditioned upon the location thereof being
37 approved by the site selection board; and further provided, that such
38 location prior to its use as such off-track betting branch office shall
39 have been approved by the site selection board. TO THE EXTENT THAT ANY
40 PROVISION OF THIS CHAPTER, INCLUDING, WITHOUT LIMITATION, SUBPARAGRAPH
41 (II) OF PARAGRAPH C OF SUBDIVISION TWO OF SECTION ONE THOUSAND EIGHT AND
42 PARAGRAPH B OF SUBDIVISION THREE OF SECTION ONE THOUSAND NINE OR OF ANY
43 OTHER LAW, RULE OR REGULATION, REQUIRES THE AUTHORIZATION OR CONSENT OF
44 ANY REGIONAL TRACK TO THE CONSTRUCTION, OPERATION OR LICENSING OF A
45 SIMULCAST FACILITY OR SIMULCAST THEATER, THEN IN THE EVENT THAT SUCH
46 RIGHT OF FIRST REFUSAL IS NOT EXERCISED, THEN IF SUCH SIMULCAST FACILITY
47 IS LOCATED IN NEW YORK COUNTY OR IS LOCATED MORE THAN TEN MILES FROM ANY
48 REGIONAL HARNESS TRACK OR A RACING FACILITY OF THE FRANCHISED CORPO-
49 RATION SUCH CONSENT OR AUTHORIZATION IS HEREBY DEEMED GRANTED. NOTWITH-
50 STANDING ANY PROVISION OF THIS CHAPTER OR OF ANY OTHER LAW, RULE OR
51 REGULATION TO THE CONTRARY, THE OPERATOR OF SUCH JOINT VENTURE SIMULCAST
52 WAGERING FACILITY SHALL NEITHER BE REQUIRED TO COLLECT A SURCHARGE ON
53 BETS MADE THEREIN NOR BE REQUIRED TO CHARGE AN ADMISSION FEE FOR
54 ENTRANCE THERETO;
55 11. In the manner and subject to the terms and conditions set forth in
56 this article, and article five-a of this chapter to establish and
A. 1 5
1 conduct a system of off-track pari-mutuel betting in the city on horse
2 races WHICH SHALL NOT INCLUDE THE CONDUCT, OPERATION, OR MAINTENANCE OF
3 TELEPHONE BETTING ACCOUNTS AND TELEPHONE WAGERING AS DEFINED IN SUBDIVI-
4 SION FOUR-A OF SECTION ONE THOUSAND TWELVE OF THIS CHAPTER, PROVIDED
5 THAT THE CORPORATION MAY AFFILIATE OR JOINT VENTURE SOLELY WITH AND AT
6 THE SOLE OPTION OF THE NEW YORK RACING NETWORK, INC. IN THE CONDUCT,
7 OPERATION, OR MAINTENANCE OF TELEPHONE BETTING ACCOUNTS AND TELEPHONE
8 WAGERING AS DEFINED IN SUBDIVISION FOUR-A OF SECTION ONE THOUSAND TWELVE
9 OF THIS CHAPTER;
10 S 7. The racing, pari-mutuel wagering and breeding law is amended by
11 adding a new section 604-a to read as follows:
12 S 604-A. TRANSFER OF ACCOUNT WAGERING OPERATIONS. NOTWITHSTANDING ANY
13 OTHER LAW, RULE OR REGULATION TO THE CONTRARY, THE CORPORATION SHALL
14 TRANSFER OWNERSHIP AND TITLE TO ALL TELEPHONE BETTING AND TELEPHONE
15 WAGERING ACCOUNTS AS DEFINED IN SUBDIVISION FOUR-A OF SECTION ONE THOU-
16 SAND TWELVE OF THIS CHAPTER THAT ARE MAINTAINED AND OPERATED BY THE
17 CORPORATION TO THE NEW YORK RACING NETWORK, INC. THE CORPORATION SHALL
18 UPON SUCH TRANSFER NO LONGER HAVE THE AUTHORITY TO MAINTAIN TELEPHONE
19 BETTING OR TELEPHONE WAGERING ACCOUNTS AS DEFINED IN THIS CHAPTER OR TO
20 CONDUCT TELEPHONE OR INTERNET WAGERING AS PROVIDED FOR IN THIS CHAPTER
21 EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY PROVIDER INCLUDING
22 BUT NOT LIMITED TO A REGIONAL OFF-TRACK BETTING CORPORATION, EXCEPT AS
23 PROVIDED FOR IN SUBDIVISION ELEVEN OF SECTION SIX HUNDRED FOUR OF THIS
24 ARTICLE. THE CORPORATION SHALL UPON SUCH TRANSFER OF TELEPHONE BETTING
25 AND TELEPHONE WAGERING ACCOUNTS AS PROVIDED HEREIN NO LONGER HAVE
26 AUTHORITY TO JOINTLY OR OTHERWISE APPROVE THROUGH WRITTEN AGREEMENT,
27 CONSENT OR OTHERWISE THE CONDUCT OF IN-HOME SIMULCASTING PURSUANT TO
28 SECTION ONE THOUSAND THREE OF THIS CHAPTER.
29 S 8. The racing, pari-mutuel wagering and breeding law is amended by
30 adding a new section 604-b to read as follows:
31 S 604-B. ACCOUNT SERVICING FOR NEW YORK RACING NETWORK, INC. 1.
32 NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, THE CORPO-
33 RATION SHALL PERMIT ACCOUNT HOLDERS OF THE NEW YORK RACING NETWORK,
34 INC., AS ESTABLISHED PURSUANT TO ARTICLE SIX-A OF THIS CHAPTER, TO MAKE
35 DEPOSITS AND WITHDRAWALS AT BRANCH OFFICES, SIMULCAST FACILITIES OR
36 SIMULCAST THEATERS OPERATED BY THE CORPORATION FROM THEIR ACCOUNTS AT
37 THE NEW YORK RACING NETWORK, INC. A FEE OF .25 PERCENT PER TRANSACTION
38 UP TO A MAXIMUM OF TEN DOLLARS PER TRANSACTION SHALL BE ASSESSED BY THE
39 CORPORATION ON THE ACCOUNT HOLDERS OF THE NEW YORK RACING NETWORK, INC.
40 FOR SUCH DEPOSITS OR WITHDRAWALS ON THEIR ACCOUNTS.
41 2. TO THE EXTENT, BUT ONLY TO THE EXTENT, THAT THE NEW YORK CITY OFF-
42 TRACK BETTING CORPORATION'S WAGERING TERMINALS, EQUIPMENT AND SYSTEMS
43 HAVE THE ABILITY TO ACCEPT AND PROCESS ACCOUNT WAGERING TRANSACTIONS,
44 THE NEW YORK RACING NETWORK, INC.'S ACCOUNT HOLDERS MAY ALSO WAGER AT
45 BRANCH OFFICES, SIMULCAST FACILITIES OR SIMULCAST THEATERS OPERATED BY
46 THE NEW YORK CITY OFF-TRACK BETTING CORPORATION FROM THEIR ACCOUNTS AT
47 THE NEW YORK RACING NETWORK, INC., IN WHICH EVENT ANY WAGER MADE AT
48 BRANCH OFFICES, SIMULCAST FACILITIES OR SIMULCAST THEATERS OPERATED BY
49 NEW YORK CITY OFF-TRACK BETTING CORPORATION BY AN ACCOUNT HOLDER OF THE
50 NEW YORK RACING NETWORK, INC. USING THEIR ACCOUNT SHALL BE SUBJECT TO A
51 FEE OF TWO PERCENT OF THE AMOUNT OF EACH ACCOUNT WAGERING TRANSACTION UP
52 TO A MAXIMUM OF TEN DOLLARS PER TRANSACTION.
53 3. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, SUCH
54 ACCOUNT WAGERING TRANSACTION DESCRIBED IN THIS SECTION SHALL NOT BE
55 SUBJECT TO ANY SURCHARGE THAT OTHERWISE MAY BE REQUIRED TO BE CHARGED OR
A. 1 6
1 COLLECTED ON WAGERS PLACED AT A NEW YORK CITY OFF-TRACK BETTING FACILI-
2 TY.
3 4. ANY TRANSACTION FEE TO BE PAID TO THE NEW YORK CITY OFF-TRACK
4 BETTING CORPORATION BY THE NEW YORK RACING NETWORK, INC. PURSUANT TO
5 THIS SECTION SHALL BE PAID WITHIN THIRTY DAYS OF THE FINAL DAY OF THE
6 MONTH IN WHICH SUCH TRANSACTION TAKES PLACE.
7 5. IF, DURING ANY FISCAL YEAR OF THE NEW YORK CITY OFF-TRACK BETTING
8 CORPORATION, PAYMENTS TO THE CORPORATION FROM THE NEW YORK RACING
9 NETWORK, INC. PURSUANT TO THIS SECTION REMAIN UNPAID FOR MORE THAN NINE-
10 TY DAYS FROM THE DATE THEY ARE DUE, OR ON THREE SEPARATE OCCASIONS
11 REMAIN UNPAID FOR MORE THAN THIRTY DAYS FROM THE DATE THEY ARE DUE, THEN
12 THE CORPORATION CANNOT BE HELD IN DEFAULT FOR AS LONG AS THE NEW YORK
13 RACING NETWORK, INC. REMAINS IN DEFAULT.
14 S 9. Subdivision 2 of section 606 of the racing, pari-mutuel wagering
15 and breeding law, as amended by chapter 115 of the laws of 2008, is
16 amended to read as follows:
17 2. The corporation shall administer its personnel pursuant to the
18 civil service law and the rules and regulations promulgated thereunder,
19 [and classification and compensation schedules of the state department
20 of civil service,] and all other applicable provisions of general laws
21 relating to civil service administration. The corporation shall retain
22 all personnel, payroll and associated employee records and shall ensure
23 that the New York city employees' retirement system has access to such
24 records for retirement purposes consistent with current records
25 retention requirements.
26 S 10. The racing, pari-mutuel wagering and breeding law is amended by
27 adding a new section 608 to read as follows:
28 S 608. DISPLAY OF RACES. EXCEPT AS TO SIMULCAST SIGNALS OF SPECIAL
29 INTEREST RACES, INCLUDING WITHOUT LIMITATION, TRIPLE CROWN AND BREEDERS
30 CUP RACES, SIMULCAST SIGNALS WHICH ARE SHOWN IN BRANCH OFFICES, SIMUL-
31 CAST FACILITIES OR SIMULCAST THEATERS OF RACE PROGRAMS RUN AT NEW YORK
32 STATE THOROUGHBRED OR HARNESS TRACKS SHALL BE PROMINENTLY DISPLAYED ON
33 THE LARGEST SCREENS AVAILABLE IN SUCH FACILITIES.
34 S 11. Section 610 of the racing, pari-mutuel wagering and breeding
35 law, as amended by chapter 115 of the laws of 2008, is amended to read
36 as follows:
37 S 610. Moneys of corporation. 1. The monetary transactions of the
38 corporation and the keeping of its books and accounts shall be under the
39 supervision of the director of the division of the budget. The chair of
40 the racing and wagering board may at any time request and shall be
41 provided for review such books and accounts.
42 2. THE ANNUAL OPERATING BUDGETS FOR THE CORPORATION SHALL BE APPROVED
43 BY THE BOARD OF THE CORPORATION, AND NO BUDGET SHALL BE APPROVED BY THE
44 BOARD THAT IS NOT BALANCED PURSUANT TO GENERALLY ACCEPTED ACCOUNTING
45 PRINCIPLES, EXCEPT THAT WITH RESPECT TO THE CORPORATION'S OTHER POST-EM-
46 PLOYMENT BENEFITS LIABILITIES, A BALANCED BUDGET SHOULD GIVE EFFECT ONLY
47 TO THE PROJECTED AGGREGATE ANNUAL CASH PAYMENT FOR OTHER POST-EMPLOYMENT
48 BENEFITS LIABILITIES. MOREOVER, THE CORPORATION SHALL NOT IMPLEMENT A
49 BUDGET APPROVED BY ITS BOARD UNTIL SUCH BUDGET IS DETERMINED TO BE
50 BALANCED BY THE DIRECTOR OF THE NEW YORK STATE DIVISION OF THE BUDGET
51 WHO SHALL NOT TAKE INTO ACCOUNT THE CORPORATION'S NON-CASH OTHER
52 POST-EMPLOYMENT BENEFITS LIABILITIES IN MAKING SUCH DETERMINATION. IN
53 THE EVENT THE BUDGET OF THE CORPORATION IS NOT DETERMINED TO BE BALANCED
54 BY THE DIRECTOR OF THE BUDGET PRIOR TO THE START OF THE FISCAL YEAR OF
55 THE CORPORATION, THE CORPORATION SHALL CONTINUE TO OPERATE UNDER THE
56 SPENDING LEVELS CONTAINED IN THE BUDGET OF THE PRIOR YEAR UNTIL SUCH
A. 1 7
1 TIME AS A NEW BUDGET IS DETERMINED TO BE BALANCED BY THE DIRECTOR OF THE
2 BUDGET.
3 3. All moneys due the city pursuant to article five-A of this chapter
4 shall be paid to the New York city comptroller.
5 [3.] 4. The state comptroller and his legally authorized represen-
6 tative are authorized to examine the accounts and books of the corpo-
7 ration, including its receipts, disbursements, contracts, leases, sink-
8 ing funds, investments and any other records and papers relating to its
9 financial standing.
10 [4.] 5. The corporation shall have power, notwithstanding the
11 provisions of this section, to contract with the holders of any of its
12 bonds as to the custody, collection, securing, investment and payment of
13 any moneys of the corporation or any moneys held in trust or otherwise
14 for the payment of bonds in any way to secure bonds, and to carry out
15 any such contract notwithstanding that such contract may be inconsistent
16 with the previous provisions of this section.
17 [5.] 6. Moneys held in trust or otherwise for the payment of bonds or
18 in any way to secure bonds and deposits of such moneys may be secured in
19 the same manner as moneys of the corporation, and all banks and trust
20 companies are authorized to give such security for such deposits.
21 S 12. The racing, pari-mutuel wagering and breeding law is amended by
22 adding a new section 610-a to read as follows:
23 S 610-A. REDUCTION IN PAYMENTS REQUIRED TO BE MADE TO IN-STATE TRACKS
24 ON ACCOUNT OF ACCEPTANCE OF WAGERS ON RACES RUN AT OUT-OF-STATE TRACKS.
25 1. OTHER THAN PAYMENTS REQUIRED TO BE MADE DIRECTLY TO AN IN-STATE TRACK
26 FOR THE TAKING OF WAGERS ON RACES RUN AT AN IN-STATE TRACK, AND NOTWITH-
27 STANDING ANY PROVISION OF THIS CHAPTER OR ANY OTHER LAW, RULE OR REGU-
28 LATION TO THE CONTRARY, THE NEW YORK CITY OFF-TRACK BETTING CORPORATION
29 SHALL REDUCE ANY PAYMENTS REQUIRED TO BE MADE BY IT TO THE FRANCHISED
30 CORPORATION OR TO ANY IN-STATE, BOARD-LICENSED, THOROUGHBRED RACING
31 CORPORATION OR HARNESS RACING CORPORATION OR ASSOCIATION, ON ACCOUNT OF
32 RETAINED COMMISSIONS FROM WAGERING ACCEPTED BY THE NEW YORK CITY
33 OFF-TRACK BETTING CORPORATION ON RACES RUN AT TRACKS OUTSIDE OF NEW YORK
34 STATE, INCLUDING WITHOUT LIMITATION SUCH PAYMENTS REQUIRED TO BE MADE
35 PURSUANT TO SECTIONS FIVE HUNDRED TWENTY-SEVEN, ONE THOUSAND FOURTEEN,
36 ONE THOUSAND FIFTEEN, ONE THOUSAND SIXTEEN AND ONE THOUSAND EIGHTEEN OF
37 THIS CHAPTER. THE REDUCTIONS IN SUCH PAYMENTS SHALL BE AS FOLLOWS: FOR
38 THE FIRST FISCAL YEAR OF THE CORPORATION IN WHICH THE EFFECTIVE DATE OF
39 THIS SUBDIVISION OCCURS, SUCH PAYMENTS SHALL BE REDUCED BY FIFTY
40 PERCENT; FOR THE FOLLOWING FISCAL YEAR, SUCH PAYMENTS SHALL BE REDUCED
41 BY FORTY PERCENT; FOR THE THIRD FISCAL YEAR, SUCH PAYMENTS SHALL BE
42 REDUCED BY THIRTY PERCENT; AND FOR EACH FISCAL YEAR THEREAFTER SUCH
43 PAYMENTS SHALL BE REDUCED BY TWENTY PERCENT, PROVIDED, HOWEVER, THAT IF
44 IN THE FOURTH FISCAL YEAR OR IN ANY FISCAL YEAR THEREAFTER THE ANNUAL
45 TOTAL HANDLE OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION REACHES
46 BETWEEN SIX HUNDRED MILLION AND SIX HUNDRED TWENTY MILLION DOLLARS, THEN
47 THE REDUCTION IN SUCH PAYMENTS SHALL BE TEN PERCENT; PROVIDED, FURTHER,
48 HOWEVER THAT IF IN THE FOURTH FISCAL YEAR OR ANY SUBSEQUENT FISCAL YEAR
49 THE ANNUAL TOTAL HANDLE OF THE NEW YORK CITY OFF-TRACK BETTING CORPO-
50 RATION EXCEEDS SIX HUNDRED TWENTY MILLION DOLLARS, THEN THERE SHALL BE
51 NO REDUCTION IN SUCH PAYMENTS.
52 2. ALL PAYMENTS REQUIRED TO BE MADE BY THE NEW YORK CITY OFF-TRACK
53 BETTING CORPORATION PURSUANT TO SUBDIVISION ONE OF THIS SECTION, SHALL
54 BE MADE BY THE CORPORATION WITHIN SIXTY DAYS FOLLOWING THE LAST DAY OF
55 THE MONTH IN WHICH THE OBLIGATION FOR SUCH PAYMENT ACCRUED, WITH AN
56 ADDITIONAL THIRTY DAY PERIOD IN WHICH THE CORPORATION MUST CURE A
A. 1 8
1 DEFAULT IN THE MAKING OF SUCH PAYMENT, PROVIDED, HOWEVER, THAT IN ANY
2 FISCAL YEAR OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION IN WHICH
3 THE PAYMENT REDUCTIONS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION ARE
4 LESS THAN TWENTY PERCENT AS A RESULT OF THE CORPORATION'S TOTAL ANNUAL
5 HANDLE EXCEEDING FIVE HUNDRED NINETY-NINE MILLION DOLLARS AND
6 NINETY-NINE CENTS, THE PORTION OF SUCH PAYMENTS THAT ARE DEPENDENT UPON
7 THE CORPORATION'S TOTAL ANNUAL HANDLE EXCEEDING SUCH AMOUNT SHALL BE
8 PAID BY THE CORPORATION WITHIN THIRTY DAYS FOLLOWING THE END OF SUCH
9 FISCAL YEAR, WITH AN ADDITIONAL THIRTY DAY PERIOD IN WHICH THE CORPO-
10 RATION MUST CURE A DEFAULT IN MAKING OF ANY SUCH PAYMENTS.
11 3. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER OR ANY OTHER LAW,
12 RULE OR REGULATION TO THE CONTRARY, THE NEW YORK CITY OFF-TRACK BETTING
13 CORPORATION SHALL CALCULATE THE STATUTORY PAYMENTS IT IS REQUIRED TO
14 MAKE TO THE AGRICULTURAL AND NEW YORK STATE HORSE BREEDING DEVELOPMENT
15 FUND BY USING THE SAME PERCENTAGE RATE USED TO CALCULATE THE STATUTORY
16 PAYMENTS REQUIRED TO BE MADE BY IT TO THE NEW YORK STATE THOROUGHBRED
17 BREEDING AND DEVELOPMENT FUND.
18 S 13. Section 613 of the racing, pari-mutuel wagering and breeding law
19 is amended to read as follows:
20 S 613. Agreement of the state. The state does pledge to and agree with
21 the holders of any and all bonds and notes of the corporation that the
22 state will not authorize any officer or agency of government, other than
23 the corporation, EXCEPT AS OTHERWISE PROVIDED FOR IN THIS ARTICLE, or
24 any private person, to [conduct] OPERATE off-track betting in the city
25 on horse races, nor in any manner limit or alter the rights hereby vest-
26 ed in the corporation to fulfill the terms of any agreements made with
27 the said holders, or in any way impair the rights and remedies of such
28 holders until the bonds and notes, together with the interest thereon,
29 interest on any unpaid installments of interest, and all costs and
30 expenses in connection with any action or proceeding by or on behalf of
31 such holders, are fully met and discharged. The corporation is author-
32 ized to include this pledge and agreement of the state in any agreement
33 with the holders of such bonds or notes.
34 S 14. The racing, pari-mutuel wagering and breeding law is amended by
35 adding a new section 615 to read as follows:
36 S 615. AUTHORITY TO NEGOTIATE SIMULCAST SIGNALS FOR THIRD PARTIES. THE
37 CORPORATION SHALL BE AUTHORIZED TO CONTRACT WITH THE FRANCHISED CORPO-
38 RATION, A THOROUGHBRED RACING CORPORATION OR ANY HARNESS CORPORATION
39 LICENSED BY THE BOARD TO NEGOTIATE ON SUCH ENTITIES' BEHALF WITH
40 OUT-OF-STATE OR OUT-OF-COUNTRY RACETRACKS TO PROVIDE SIMULCAST SIGNALS
41 TO SUCH ENTITIES.
42 S 15. The racing, pari-mutuel wagering and breeding law is amended by
43 adding a new section 617-a to read as follows:
44 S 617-A. REDUCTIONS IN PARI-MUTUEL TAX PAYMENTS. NOTWITHSTANDING ANY
45 INCONSISTENT PROVISION OF THIS CHAPTER OR OF ANY OTHER LAW, RULE OR
46 REGULATION, THE NEW YORK CITY OFF-TRACK BETTING CORPORATION SHALL REDUCE
47 BY FIFTY PERCENT PAYMENTS DUE FOR PARI-MUTUEL TAXES TO THE STATE DEPART-
48 MENT OF TAXATION AND FINANCE THAT WOULD OTHERWISE BE REQUIRED TO BE MADE
49 PURSUANT TO THE PROVISIONS OF THIS CHAPTER, PROVIDED, HOWEVER, IN THE
50 EVENT THAT THE ANNUAL TOTAL HANDLE OF NEW YORK CITY OFF-TRACK BETTING IN
51 ANY FISCAL YEAR BEGINNING TWO FISCAL YEARS AFTER THE EFFECTIVE DATE OF
52 THIS SECTION IS: SIX HUNDRED MILLION DOLLARS OR GREATER BUT NOT MORE
53 THAN SIX HUNDRED FIFTEEN MILLION DOLLARS, SUCH REDUCTION IN PARI-MUTUEL
54 TAX PAYMENTS SHALL BE FORTY-TWO AND ONE-HALF PERCENT; GREATER THAN SIX
55 HUNDRED FIFTEEN MILLION DOLLARS BUT NOT MORE THAN SIX HUNDRED TWENTY
56 MILLION DOLLARS, SUCH REDUCTION IN PARI-MUTUEL TAX PAYMENTS SHALL BE
A. 1 9
1 THIRTY-SEVEN AND ONE-HALF PERCENT; GREATER THAN SIX HUNDRED TWENTY
2 MILLION DOLLARS BUT NOT MORE THAN SIX HUNDRED THIRTY MILLION DOLLARS,
3 SUCH REDUCTION IN PARI-MUTUEL TAX PAYMENTS SHALL BE TWENTY-FIVE PERCENT;
4 GREATER THAN SIX HUNDRED THIRTY MILLION DOLLARS BUT NOT MORE THAN SIX
5 HUNDRED THIRTY-FIVE MILLION DOLLARS, SUCH REDUCTION IN PARI-MUTUEL TAX
6 PAYMENTS SHALL BE SEVENTEEN AND ONE-HALF PERCENT; GREATER THAN SIX
7 HUNDRED THIRTY-FIVE MILLION DOLLARS BUT NOT MORE THAN SIX HUNDRED FORTY
8 MILLION DOLLARS, SUCH REDUCTION IN PARI-MUTUEL TAX PAYMENTS SHALL BE
9 SEVEN AND ONE-HALF PERCENT; AND IN EXCESS OF SIX HUNDRED FORTY MILLION
10 DOLLARS, THERE SHALL BE NO REDUCTION OF PARI-MUTUEL TAX PAYMENTS. THE
11 NEW YORK CITY OFF-TRACK BETTING CORPORATION SHALL MAKE MONTHLY PAYMENTS
12 OF PARI-MUTUEL TAX BASED UPON SUCH FIFTY PERCENT REDUCTION. WITHIN THIR-
13 TY DAYS OF THE END OF THE FISCAL YEAR OF THE CORPORATION, THE CORPO-
14 RATION SHALL PAY THE REMAINDER OF ANY PARI-MUTUEL TAX THAT MAY BE DUE AS
15 A RESULT OF A LOWER ALLOWABLE REDUCTION BASED UPON A CALCULATION OF
16 ANNUAL HANDLE AT THE CLOSE OF NEW YORK CITY OFF-TRACK BETTING CORPO-
17 RATION'S FISCAL YEAR.
18 S 16. The racing, pari-mutuel wagering and breeding law is amended by
19 adding a new section 623-a to read as follows:
20 S 623-A. FILING OF PETITIONS BY THE NEW YORK CITY OFF-TRACK BETTING
21 CORPORATION. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR EXECUTIVE
22 ORDER TO THE CONTRARY, IT IS HEREBY DECLARED TO BE THE POLICY OF THE
23 STATE OF NEW YORK THAT THE NEW YORK CITY OFF-TRACK BETTING CORPORATION
24 SHALL NOT BE AUTHORIZED TO FILE ANY PETITION AFTER THE EFFECTIVE DATE OF
25 THIS SECTION WITH ANY UNITED STATES DISTRICT COURT OR COURT OF BANKRUPT-
26 CY UNDER ANY PROVISION OF THE LAWS OF THE UNITED STATES FOR THE COMPOSI-
27 TION OR ADJUSTMENT OF MUNICIPAL INDEBTEDNESS.
28 S 17. Section 624 of the racing, pari-mutuel wagering and breeding
29 law, as amended by chapter 115 of the laws of 2008, is amended to read
30 as follows:
31 S 624. Termination of the corporation; ASSUMPTION OF MANAGEMENT OF THE
32 CORPORATION. 1. The corporation and its corporate existence shall
33 continue until terminated by law; provided, however, that no such law
34 shall take effect so long as the corporation shall have bonds, notes or
35 other obligations outstanding, INCLUDING BUT NOT LIMITED TO A LICENSE
36 AND MANAGEMENT AGREEMENT AS PROVIDED FOR IN SUBDIVISION TWO OF THIS
37 SECTION. Upon termination of the existence of the corporation all of its
38 rights, property, assets and funds shall thereupon vest in and be
39 possessed by the state.
40 2. SHOULD THE CORPORATION: (A) FAIL TO PAY ANY COMMISSIONS DUE TO THE
41 IN-STATE RACE TRACKS WHICH SHALL BE DUE NOT LATER THAN SIXTY DAYS FROM
42 THE LAST DAY OF THE MONTH IN WHICH SUCH COMMISSIONS ACCRUED, PLUS AN
43 ADDITIONAL THIRTY DAY CURE PERIOD; OR (B) FAIL TO ACHIEVE POSITIVE EARN-
44 INGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION IN ANY TWO
45 CONSECUTIVE FISCAL YEARS; OR (C) FAIL TO HAVE A BALANCED BUDGET, AS
46 DETERMINED BY THE DIRECTOR OF THE STATE BUDGET IN ACCORDANCE WITH
47 SECTION SIX HUNDRED TEN OF THIS ARTICLE IN ANY FISCAL YEAR; THEN THE NEW
48 YORK RACING NETWORK, INC. MAY ASSUME, PURSUANT TO A LICENSE AND MANAGE-
49 MENT AGREEMENT, THE LENGTH OF THE TERM OF WHICH SHALL BE SUBJECT TO THE
50 APPROVAL OF THE RACING AND WAGERING BOARD, THE MANAGEMENT AND OPERA-
51 TIONAL CONTROL OF THE BUSINESS ACTIVITIES OF THE CORPORATION. IN THE
52 EVENT THAT THE NEW YORK RACING NETWORK, INC. AGREES TO ASSUME MANAGEMENT
53 AND OPERATIONAL CONTROL OF THE CORPORATION, THE FRANCHISED CORPORATION
54 AND THE HARNESS TRACK LOCATED IN WESTCHESTER COUNTY SHALL BE JOINTLY
55 RESPONSIBLE FOR THE MANAGEMENT AND OPERATIONAL CONTROL OF THE BUSINESS
56 ACTIVITIES OF THE CORPORATION ON BEHALF OF THE NEW YORK RACING NETWORK,
A. 1 10
1 INC., PROVIDED, HOWEVER, THAT NEITHER SHALL DIRECTLY RECEIVE ADDITIONAL
2 COMPENSATION FOR PROVIDING SUCH MANAGEMENT SERVICES. IN THE EVENT OF
3 THE ASSUMPTION OF THE MANAGEMENT AND OPERATIONAL CONTROL OF THE CORPO-
4 RATION BY THE NEW YORK RACING NETWORK, INC., PURSUANT TO THIS SECTION,
5 THE CORPORATION WILL CONTINUE TO BE GOVERNED AND OWNED IN A FORM
6 CONSISTENT WITH GOVERNANCE AND OWNERSHIP EXISTING AT THE TIME OF THE
7 TRANSFER OF MANAGEMENT. ASSUMPTION BY NEW YORK RACING NETWORK, INC., OF
8 THE MANAGEMENT AND OPERATIONAL CONTROL OF THE CORPORATION SHALL NOT
9 ALTER THE TERMS AND CONDITIONS OF EMPLOYMENT OF THE WORKFORCE, AND ANY
10 CURRENT COLLECTIVE BARGAINING AGREEMENTS WITH ITS EMPLOYEE ORGANIZATIONS
11 SHALL REMAIN IN FULL FORCE AND EFFECT.
12 S 18. The racing, pari-mutuel wagering and breeding law is amended by
13 adding a new article 6-A to read as follows:
14 ARTICLE 6-A
15 NEW YORK RACING NETWORK, INC.
16 SECTION 625. NEW YORK RACING NETWORK, INC.
17 626. DISTRIBUTION OF REVENUES.
18 S 625. NEW YORK RACING NETWORK, INC. NOTWITHSTANDING ANY OTHER LAW,
19 RULE OR REGULATION TO THE CONTRARY, A CORPORATION WHICH SHALL BE NAMED
20 THE NEW YORK RACING NETWORK, INC. SHALL BE INCORPORATED BY THE FRAN-
21 CHISED CORPORATION, A THOROUGHBRED RACING CORPORATION AND ONE OR MORE
22 HARNESS RACING CORPORATIONS WHICH ARE MEMBERS OF THE OFFICIAL COMMITTEE
23 OF CREDITORS OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION UNDER
24 CHAPTER NINE OF THE UNITED STATES BANKRUPTCY CODE PURSUANT TO EITHER THE
25 BUSINESS CORPORATION LAW OR THE LIMITED LIABILITY COMPANY LAW. THE NEW
26 YORK RACING NETWORK, INC. SHALL BE AUTHORIZED TO CONDUCT OFF-TRACK
27 PARI-MUTUEL WAGERING UNDER THIS CHAPTER AND TO DISPLAY THE SIMULCAST OF
28 HORSE RACES INCLUDING BUT NOT LIMITED TO THROUGH IN-HOME SIMULCAST AND
29 VIDEO STREAMING OF RACES ON THE INTERNET ON WHICH PARI-MUTUEL BETTING
30 SHALL BE PERMITTED SUBJECT TO ARTICLE TEN OF THIS CHAPTER. THE NEW YORK
31 RACING NETWORK, INC. SHALL ISSUE SHARES TO THE FRANCHISED CORPORATION, A
32 THOROUGHBRED RACING CORPORATION AND ONE OR MORE HARNESS RACING CORPO-
33 RATIONS ON A PRO-RATA BASIS BASED ON THE AGGREGATE AMOUNT OF SUCH CORPO-
34 RATION'S PRE-PETITION AND POST-PETITION CLAIMS IN A BANKRUPTCY PROCEED-
35 ING FILED BY THE NEW YORK CITY OFF-TRACK BETTING CORPORATION UNDER
36 CHAPTER NINE OF THE BANKRUPTCY CODE IN THE SOUTHERN DISTRICT OF NEW
37 YORK. THE NEW YORK RACING NETWORK, INC. SHALL BE AUTHORIZED TO APPLY FOR
38 A SIMULCAST LICENSE PURSUANT TO SECTION ONE THOUSAND THREE OF THIS CHAP-
39 TER. UNLESS OTHERWISE SPECIFICALLY PROVIDED, THE NEW YORK RACING
40 NETWORK, INC. SHALL BE SUBJECT TO ALL REQUIREMENTS OF LAW AND REGU-
41 LATIONS APPLICABLE TO NEW YORK STATE PARI-MUTUEL BETTING OPERATORS,
42 INCLUDING APPROVAL OF A PLAN OF OPERATION BY THE RACING AND WAGERING
43 BOARD. THE SHARES OR MEMBERSHIP INTERESTS IN THE NEW YORK RACING
44 NETWORK, INC. SHALL NOT BE TRANSFERRED TO PARTIES OTHER THAN THE
45 ORIGINAL INCORPORATING INTERESTS WITHOUT THE PRIOR WRITTEN APPROVAL OF
46 THE RACING AND WAGERING BOARD. THE SIMULCAST LICENSE FOR THE NEW YORK
47 RACING NETWORK, INC. SHALL INCLUDE THE AUTHORIZATION TO SIMULCAST INTO
48 RESIDENCES, HOMES OR OTHER AREAS THOROUGH EITHER A CABLE TELEVISION
49 SIGNAL, VIDEO STREAMING USING THE INTERNET OR SIMILAR TECHNOLOGY FOR
50 TRANSMISSION OF SUCH SIMULCAST SIGNAL WHICH ARE WITHIN THE CITY OF NEW
51 YORK. NO AGREEMENT OR OTHER WRITTEN CONSENT WITH OR FROM NEW YORK CITY
52 OFF-TRACK BETTING SHALL BE REQUIRED TO AUTHORIZE THE AFORESAID SIMUL-
53 CASTING.
A. 1 11
1 S 626. DISTRIBUTION OF REVENUES. NOTWITHSTANDING ANY LAW, RULE OR
2 REGULATION TO THE CONTRARY, THE NEW YORK RACING NETWORK, INC. SHALL
3 DISTRIBUTE ALL SUMS DEPOSITED IN ANY PARI-MUTUEL POOL THROUGH THE NEW
4 YORK RACING NETWORK, INC. TO THE HOLDERS OF WINNING TICKETS THEREIN,
5 PROVIDING SUCH TICKETS ARE PRESENTED FOR PAYMENT PRIOR TO APRIL FIRST OF
6 THE YEAR FOLLOWING THE YEAR OF THEIR PURCHASE. IN THE CASE OF TOTAL
7 DEPOSITS IN POOLS RESULTING FROM REGULAR, MULTIPLE, EXOTIC OR SUPER
8 EXOTIC BETS ON THE RACING PROGRAMS OF THE FRANCHISED CORPORATION, A
9 THOROUGHBRED CORPORATION OR A HARNESS RACING CORPORATION WHICH ARE
10 SHAREHOLDERS OF THE NEW YORK RACING NETWORK, INC., SUCH BETS SHALL BE
11 TREATED AS POOLS FOR AN ON-TRACK BET AT SUCH ENTITY AS PROVIDED FOR IN
12 THIS CHAPTER, EXCEPT THAT ONE PERCENT OF THE TOTAL TAKEOUT IN SUCH POOLS
13 SHALL BE RETAINED BY THE NEW YORK RACING NETWORK, INC. AS A MANAGEMENT
14 FEE. IN THE CASE OF TOTAL DEPOSITS IN POOLS RESULTING FROM REGULAR,
15 MULTIPLE, EXOTIC OR SUPER EXOTIC BETS ON TRACKS LOCATED IN NEW YORK
16 STATE WHICH ARE NOT SHAREHOLDERS IN NEW YORK RACING NETWORK, INC. OR
17 ARE MADE ON OUT-OF-STATE OR OUT-OF-COUNTRY RACES SUCH BETS SHALL BE
18 TREATED AS IF MADE AT A NEW YORK CITY OFF-TRACK BETTING FACILITY WITH
19 RESPECT TO RETENTION OF TOTAL DEPOSITS IN THE POOL AND PAYMENTS THERE-
20 FROM.
21 S 19. Subdivisions 4-a and 5 of section 1012 of the racing, pari-mutu-
22 el wagering and breeding law, subdivision 4-a as amended by chapter 18
23 of the laws of 2008 and subdivision 5 as amended by section 11 of part C
24 of chapter 134 of the laws of 2010, are amended to read as follows:
25 4-a. For the purposes of this section, "telephone betting accounts"
26 and "telephone wagering" shall mean and include all those wagers which
27 utilize any wired or wireless communications device, including but not
28 limited to wireline telephones, wireless telephones, and the internet,
29 to DISPLAY LIVE RACES AND SPECIAL EVENTS, AND, NOTWITHSTANDING ANY LAW,
30 RULE OR REGULATION TO THE CONTRARY, WITH RESPECT TO NEW YORK RACING
31 NETWORK, INC., IF INTERNET WAGERING IS PROVIDED PURSUANT TO THIS
32 SECTION, IT SHALL INCLUDE NEW YORK STATE TRACKS WHICH ARE CONDUCTING A
33 RACE MEET AND A VIDEOSTREAM OF THEIR RACES SHALL BE MADE AVAILABLE UPON
34 THEIR CONSENT, AND transmit the placement of wagers on races and special
35 events offered by any regional off-track betting corporation, and any
36 harness, thoroughbred, quarter horse racing association or corporation
37 licensed or franchised to conduct pari-mutuel racing in New York state.
38 5. The provisions of this section shall [expire and be of no further
39 force and effect after June thirtieth, two thousand eleven] NOT BE
40 SUBJECT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE OF THIS ARTICLE,
41 HOWEVER, NO RACES OR SPECIAL EVENTS SHALL BE DISPLAYED WITHOUT THE
42 EXPRESS CONSENT OF THE ORIGINATOR OF THE RACES OR SPECIAL EVENTS.
43 S 20. The racing, pari-mutuel wagering and breeding law is amended by
44 adding a new section 1013-a to read as follows:
45 S 1013-A. SIMULCAST SIGNAL OF RACES. UPON THE EFFECTIVE DATE OF THIS
46 SECTION AND THEREAFTER, THE SIMULCAST SIGNAL OF ALL RACES RUN AT THE
47 TRACKS OPERATED BY THE FRANCHISED CORPORATION SHALL BE PROVIDED AT NO
48 COST TO THE NEW YORK CITY OFF-TRACK BETTING CORPORATION FOR DISPLAY FOR
49 WAGERING PURPOSES IN ITS SIMULCAST FACILITIES.
50 S 21. Paragraph h of subdivision 1 of section 1014 of the racing,
51 pari-mutuel wagering and breeding law, as amended by chapter 18 of the
52 laws of 2008, is amended to read as follows:
53 h. (1) Licensed harness tracks shall receive, EXCEPT FROM THE NEW YORK
54 CITY OFF-TRACK BETTING CORPORATION, in lieu of any other payments on
55 wagers placed at off-track betting facilities outside the special
56 betting district on races conducted by an in-state thoroughbred racing
A. 1 12
1 corporation, two and eight-tenths percent on regular and multiple bets
2 during a regional meeting and one and nine-tenths percent of such bets
3 if there is no regional meeting and four and eight-tenths percent on
4 exotic bets on days on which there is a regional meeting and three and
5 four-tenths percent of such bets if there is no regional meeting.
6 (2) (i) In addition, licensed harness tracks shall receive, EXCEPT
7 FROM THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, one and one-half
8 per centum on total handle on races conducted at an out-of-state or
9 out-of-country thoroughbred track provided such harness track is neither
10 accepting wagers nor displaying the signal from an out-of-state track.
11 (ii) In those regions in which there is more than one licensed harness
12 track, if no track is accepting wagers or displaying the live simulcast
13 signal from the out-of-state track, the total sum shall be divided among
14 the tracks in proportion to the ratio the wagers placed on races
15 conducted by each track bears to the corporation's total in-region
16 harness handle. If one or more tracks are accepting wagers or displaying
17 the live simulcast signal, the total amount shall be divided among those
18 tracks not accepting wagers or displaying the simulcast signal for an
19 out-of-state track.
20 (3) The terms used in this section shall have the same applicability
21 and meaning as interpreted and applied in sections five hundred twenty-
22 three and five hundred twenty-seven of this chapter.
23 S 22. Clause (E) of subparagraph 5 and clause (F) of subparagraph 6 of
24 paragraph b of subdivision 1 of section 1016 of the racing, pari-mutuel
25 wagering and breeding law, as amended by chapter 18 of the laws of 2008,
26 are amended to read as follows:
27 (E) On days when a franchised corporation is not conducting a race
28 meeting and when a licensed harness track is neither accepting wagers
29 nor displaying the signal from an in-state thoroughbred corporation or
30 association or an out-of-state thoroughbred track:
31 (i) Such licensed regional harness track shall receive, EXCEPT FROM
32 THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, in lieu of any other
33 payments on wagers placed at off-track betting facilities outside the
34 special betting district on races conducted by an in-state thoroughbred
35 racing corporation, two and eight-tenths percent on regular and multiple
36 bets during a regional meeting and one and nine-tenths percent of such
37 bets if there is no regional meeting and four and eight-tenths percent
38 on exotic bets on days on which there is a regional meeting and three
39 and four-tenths percent of such bets if there is no regional meeting.
40 (ii) Such licensed regional harness track shall receive, EXCEPT FROM
41 THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, one and one-half per
42 centum on total regional handle on races conducted at out-of-state or
43 out-of-country thoroughbred tracks.
44 (iii) In those regions in which there is more than one licensed
45 regional harness track, if no track is accepting wagers or displaying
46 the live simulcast signal from the out-of-state track, the total sum
47 shall be divided among the tracks in proportion to the ratio the wagers
48 placed on races conducted by each track bears to the corporation's total
49 in-region harness handle. If one or more tracks are accepting wagers or
50 displaying the live simulcast signal, the total amount shall be divided
51 among those tracks not accepting wagers or displaying the simulcast
52 signal for an out-of-state track or in-state thoroughbred corporation or
53 association.
54 (F) On days when a franchised corporation is not conducting a race
55 meeting and when a licensed harness track is neither accepting wagers
A. 1 13
1 nor displaying the signal from an in-state thoroughbred corporation or
2 association or an out-of-state thoroughbred track:
3 (i) Such licensed regional harness track shall receive, EXCEPT FROM
4 THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, in lieu of any other
5 payments on wagers placed at off-track betting facilities outside the
6 special betting district on races conducted by an in-state thoroughbred
7 racing corporation, two and eight-tenths percent on regular and multiple
8 bets during a regional meeting and one and nine-tenths percent of such
9 bets if there is no regional meeting and four and eight-tenths percent
10 on exotic bets on days on which there is a regional meeting and three
11 and four-tenths percent of such bets if there is no regional meeting.
12 (ii) Such licensed regional harness track shall receive, EXCEPT FROM
13 THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, one and one-half per
14 centum on total regional handle on races conducted at out-of-state or
15 out-of-country thoroughbred tracks.
16 (iii) In those regions in which there is more than one licensed
17 regional harness track, if no track is accepting wagers or displaying
18 the live simulcast signal from the out-of-state track, the total sum
19 shall be divided among the tracks in proportion to the ratio the wagers
20 placed on races conducted by each track bears to the corporation's total
21 in-region harness handle. If one or more tracks are accepting wagers or
22 displaying the live simulcast signal, the total amount shall be divided
23 among those tracks not accepting wagers or displaying the simulcast
24 signal for an out-of-state track or in-state thoroughbred corporation.
25 S 23. Subdivision 2 of section 1017 of the racing, pari-mutuel wager-
26 ing and breeding law, as amended by chapter 18 of the laws of 2008, is
27 amended to read as follows:
28 2. a. Maintenance of effort. Any off-track betting corporation, OTHER
29 THAN THE NEW YORK CITY OFF-TRACK BETTING CORPORATION, which engages in
30 accepting wagers on the simulcasts of thoroughbred races from out-of-
31 state or out-of-country as permitted under subdivision one of this
32 section shall submit to the board, for its approval, a schedule of
33 payments to be made in any year or portion thereof, that such off-track
34 corporation engages in nighttime thoroughbred simulcasting. In order to
35 be approved by the board, the payment schedule shall be identical to the
36 actual payments and distributions of such payments to tracks and purses
37 made by such off-track corporation pursuant to the provisions of section
38 one thousand fifteen of this article during the year two thousand two,
39 as derived from out-of-state harness races displayed after 6:00 P.M. If
40 approved by the board, such scheduled payments shall be made from reven-
41 ues derived from any simulcasting conducted pursuant to this section and
42 section one thousand fifteen of this article.
43 b. Additional payments. During each calendar year, to the extent, and
44 at such time in the event, that aggregate statewide wagering handle
45 after 7Labor P.M. on out-of-state and out-of-country thoroughbred races,
46 EXCLUDING THE AMOUNT OF SUCH HANDLE ATTRIBUTABLE TO THE NEW YORK CITY
47 OFF-TRACK BETTING CORPORATION, exceeds [one hundred] THIRTY-FIVE million
48 dollars, each off-track betting corporation, OTHER THAN THE NEW YORK
49 CITY OFF-TRACK BETTING CORPORATION, conducting such simulcasting shall
50 pay to its regional harness track or tracks, an amount equal to two
51 percent of its proportionate share of such excess handle. In any region
52 where there are two or more regional harness tracks, such two percent
53 shall be divided between or among the tracks in a proportion equal to
54 the proportion of handle on live harness races conducted at such tracks
55 during the preceding calendar year. Fifty percent of the sum received by
A. 1 14
1 each track pursuant to this paragraph shall be used exclusively for
2 increasing purses, stakes and prizes at that regional harness track.
3 S 24. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
4 of section 1612 of the tax law, as amended by section 6 of part K of
5 chapter 57 of the laws of 2010, is amended to read as follows:
6 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
7 this subparagraph, the track operator of a vendor track shall be eligi-
8 ble for a vendor's capital award of up to four percent of the total
9 revenue wagered at the vendor track after payout for prizes pursuant to
10 this chapter, which shall be used exclusively for capital project
11 investments to improve the facilities of the vendor track which promote
12 or encourage increased attendance at the video lottery gaming facility
13 including, but not limited to hotels, other lodging facilities, enter-
14 tainment facilities, retail facilities, dining facilities, events
15 arenas, parking garages and other improvements that enhance facility
16 amenities; provided that such capital investments shall be approved by
17 the division, in consultation with the state racing and wagering board,
18 and that such vendor track demonstrates that such capital expenditures
19 will increase patronage at such vendor track's facilities and increase
20 the amount of revenue generated to support state education programs. The
21 annual amount of such vendor's capital awards that a vendor track shall
22 be eligible to receive shall be limited to two million five hundred
23 thousand dollars, except for Aqueduct racetrack, for which there shall
24 be no vendor's capital awards. PROVIDED, HOWEVER, A VENDOR TRACK THAT
25 RECEIVED A VENDOR FEE PURSUANT TO CLAUSE (F) OF THIS SUBPARAGRAPH AS OF
26 JANUARY FIRST, TWO THOUSAND TEN SHALL ONLY BE ELIGIBLE TO RECEIVE A
27 CAPITAL AWARD FOR APPROVED CAPITAL EXPENDITURES ON OR AFTER MAY FIRST,
28 TWO THOUSAND TWELVE, IN AN AMOUNT NOT TO EXCEED ONE AND ONE-HALF PERCENT
29 OF THE TOTAL REVENUE WAGERED AT SUCH TRACK AFTER PAYOUT FOR PRIZES.
30 Except for tracks having less than one thousand one hundred video gaming
31 machines, each track operator shall be required to co-invest an amount
32 of capital expenditure equal to its cumulative vendor's capital award
33 FOR ANY CAPITAL INVESTMENTS APPROVED BY THE DIVISION ON OR BEFORE OCTO-
34 BER THIRTY-FIRST, TWO THOUSAND TEN, AND NO CO-INVESTMENT SHALL BE
35 REQUIRED FOR A CAPITAL AWARD FOR ANY CAPITAL INVESTMENTS APPROVED BY THE
36 DIVISION ON OR AFTER NOVEMBER FIRST, TWO THOUSAND TEN. For all tracks,
37 except for Aqueduct racetrack, the amount of any vendor's capital award
38 that is not used during any one year period may be carried over into
39 subsequent years ending before April first, two thousand thirteen. Any
40 amount attributable to a capital expenditure approved prior to April
41 first, two thousand thirteen and completed before April first, two thou-
42 sand fifteen shall be eligible to receive the vendor's capital award. In
43 the event that a vendor track's capital expenditures, approved by the
44 division prior to April first, two thousand thirteen and completed prior
45 to April first, two thousand fifteen, exceed the vendor track's cumula-
46 tive capital award during the five year period ending April first, two
47 thousand thirteen, the vendor shall continue to receive the capital
48 award after April first, two thousand thirteen until such approved capi-
49 tal expenditures are paid to the vendor track subject to any required
50 co-investment. In no event shall any vendor track that receives a vendor
51 fee pursuant to clause [(F) or] (G) of this subparagraph be eligible for
52 a vendor's capital award under this section. Any operator of a vendor
53 track which has received a vendor's capital award, choosing to divest
54 the capital improvement toward which the award was applied, prior to the
55 full depreciation of the capital improvement in accordance with general-
56 ly accepted accounting principles, shall reimburse the state in amounts
A. 1 15
1 equal to the total of any such awards. Any capital award not approved
2 for a capital expenditure at a video lottery gaming facility by April
3 first, two thousand thirteen shall be deposited into the state lottery
4 fund for education aid; and
5 S 25. Subparagraph (ii) of paragraph 1 of subdivision b of section
6 1612 of the tax law is amended by adding a new clause (I) to read as
7 follows:
8 (I) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, SUBSIDIZED FREE
9 PLAY CREDITS AUTHORIZED PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN
10 HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCU-
11 LATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL
12 AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE
13 OPERATORS OF VIDEO LOTTERY FACILITIES, VENDOR'S CAPITAL AWARDS, VENDOR'S
14 MARKETING ALLOWANCES, FEES PAYABLE TO THE DIVISION'S VIDEO LOTTERY
15 GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS.
16 S 26. Section 1617-a of the tax law is amended by adding a new subdi-
17 vision f to read as follows:
18 F. SUBSIDIZED FREE PLAY. 1. THE DIVISION MAY PROMULGATE RULES AND
19 REGULATIONS OR ISSUE INSTRUCTIONS TO THE VIDEO LOTTERY FACILITY OPERA-
20 TORS GOVERNING THE ADMINISTRATION AND OPERATION OF A PROGRAM OF SUBSI-
21 DIZED FREE PLAY CREDITS TO BE OFFERED TO PLAYERS OR PROSPECTIVE PLAYERS
22 OF VIDEO LOTTERY GAMES FOR THE PURPOSE OF INCREASING REVENUES EARNED BY
23 THE VIDEO LOTTERY PROGRAM FOR THE SUPPORT OF EDUCATION. FOR THE PURPOSES
24 OF THIS SUBDIVISION, "SUBSIDIZED FREE PLAY CREDIT" MEANS A SPECIFIED
25 DOLLAR AMOUNT THAT (I) MAY BE USED BY A PLAYER TO PLAY A VIDEO LOTTERY
26 GAME WITHOUT PAYING ANY OTHER CONSIDERATION, AND (II) IS NOT USED IN THE
27 CALCULATION OF TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES AND THERE-
28 FORE SUBSIDIZES THE PROMOTION OF THE VIDEO LOTTERY PROGRAM.
29 2. FOR EACH VIDEO LOTTERY FACILITY, THE DIVISION SHALL AUTHORIZE THE
30 USE OF SUBSIDIZED FREE PLAY CREDITS IF THE OPERATOR OF SUCH FACILITY
31 SUBMITS A WRITTEN PLAN FOR THE USE OF SUBSIDIZED FREE PLAY CREDITS THAT
32 THE DIVISION DETERMINES IS DESIGNED TO INCREASE THE AMOUNT OF REVENUE
33 EARNED BY VIDEO LOTTERY GAMING AT SUCH FACILITY FOR THE SUPPORT OF
34 EDUCATION.
35 3. FOR EACH VIDEO LOTTERY FACILITY, THE VALUE OF THE SUBSIDIZED FREE
36 PLAY CREDITS AUTHORIZED FOR USE ANNUALLY BY THE OPERATOR PURSUANT TO
37 THIS SUBDIVISION SHALL BE AN AMOUNT EQUAL TO SEVEN AND ONE-HALF PERCENT
38 OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF
39 PRIZES. PROVIDED, HOWEVER, THE VALUE OF THE SUBSIDIZED FREE PLAY CREDITS
40 AUTHORIZED FOR USE ANNUALLY BY A VIDEO LOTTERY FACILITY OPERATOR AT A
41 VENDOR TRACK THAT RECEIVES A VENDOR FEE PURSUANT TO CLAUSE (C) OR (F) OF
42 SUBPARAGRAPH (II) OF PARAGRAPH 1 OF SUBDIVISION B OF SECTION SIXTEEN
43 HUNDRED TWELVE OF THIS ARTICLE SHALL BE AN AMOUNT EQUAL TO TEN PERCENT
44 OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF
45 PRIZES. PROVIDED, FURTHER, THE VALUE OF THE SUBSIDIZED FREE PLAY CREDITS
46 AUTHORIZED FOR USE ANNUALLY BY A VIDEO LOTTERY FACILITY OPERATOR AT A
47 VENDOR TRACK THAT RECEIVES A VENDOR FEE PURSUANT TO CLAUSE (D) OR (E) OF
48 SUBPARAGRAPH (II) OF PARAGRAPH 1 OF SUBDIVISION B OF SECTION SIXTEEN
49 HUNDRED TWELVE OF THIS ARTICLE AND IS NOT WITHIN FIFTEEN MILES OF A
50 NATIVE AMERICAN CLASS III GAMING FACILITY THAT OPERATED PRIOR TO JANUARY
51 FIRST, TWO THOUSAND TEN, PURSUANT TO A COMPACT THAT INCLUDES EXCLUSIVITY
52 PAYMENTS TO THE STATE SHALL BE AN AMOUNT EQUAL TO TEN PERCENT OF THE
53 TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF PRIZES. A
54 VIDEO LOTTERY FACILITY OPERATOR MAY USE AN AMOUNT OF SUBSIDIZED FREE
55 PLAY CREDITS THAT IS LESS THAN THE TOTAL AUTHORIZED, AND THE DIVISION
A. 1 16
1 SHALL ESTABLISH PROCEDURES TO ASSURE THAT SUBSIDIZED FREE PLAY CREDITS
2 DO NOT EXCEED THE MAXIMUM AMOUNT ALLOWED PURSUANT TO THIS SUBDIVISION.
3 4. THE DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET, MAY
4 SUSPEND UPON NINETY DAYS NOTICE THE USE OF SUBSIDIZED FREE PLAY CREDITS
5 AUTHORIZED PURSUANT TO THIS SUBDIVISION WHENEVER THEY JOINTLY DETERMINE
6 THAT THE USE OF SUBSIDIZED FREE PLAY CREDITS HAS RESULTED IN A YEAR OVER
7 YEAR DECLINE IN THE AMOUNT OF REVENUE EARNED FOR THE SUPPORT OF EDUCA-
8 TION IN THIS STATE BY VIDEO LOTTERY GAMING AT THE VIDEO LOTTERY FACILI-
9 TY, AND SUCH USE MAY NOT BE RESUMED UNLESS THE OPERATOR OF SUCH FACILITY
10 SUBMITS A NEW OR REVISED WRITTEN PLAN FOR THE USE OF SUBSIDIZED FREE
11 PLAY CREDITS THAT THE DIVISION DETERMINES IS DESIGNED MORE EFFECTIVELY
12 TO PRODUCE AN INCREASE IN THE AMOUNT OF REVENUE EARNED BY VIDEO LOTTERY
13 GAMING AT SUCH FACILITY FOR THE SUPPORT OF EDUCATION.
14 5. THE DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET, MAY
15 REVOKE THE AUTHORITY FOR A VENDOR TRACK TO USE SUBSIDIZED FREE PLAY
16 CREDITS AUTHORIZED PURSUANT TO THIS SUBDIVISION UPON NINETY DAYS NOTICE
17 WHENEVER THEY JOINTLY DETERMINE THAT THE OPERATOR OF A VIDEO LOTTERY
18 FACILITY HAS VIOLATED THE RULES AND REGULATIONS ESTABLISHED OR ANY
19 INSTRUCTIONS ISSUED BY THE DIVISION GOVERNING THE SUBSIDIZED FREE PLAY
20 PROGRAM. THE DIVISION SHALL ESTABLISH CRITERIA TO REINSTATE SUBSIDIZED
21 FREE PLAY AT A VENDOR TRACK FOLLOWING THE REVOCATION OF THE AUTHORITY TO
22 USE SUBSIDIZED FREE PLAY CREDITS.
23 6. NOTHING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT THE OPERA-
24 TOR OF A VIDEO LOTTERY FACILITY FROM OFFERING NON-SUBSIDIZED FREE PLAY
25 CREDITS TO PLAYERS OR PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES WHEN
26 THE VALUE OF SUCH FREE PLAY CREDITS IS INCLUDED IN THE CALCULATION OF
27 THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES AND THE TOTAL AMOUNT
28 WAGERED AFTER PAYOUT OF PRIZES, AND THE OPERATOR OF SUCH FACILITY PAYS
29 THE DIVISION THE FULL AMOUNT DUE AS THE RESULT OF SUCH CALCULATIONS.
30 7. THE DIVISION MAY AMEND THE CONTRACT WITH THE PROVIDER OF THE
31 CENTRAL COMPUTER SYSTEM THAT CONTROLS THE VIDEO LOTTERY NETWORK DURING
32 THE TERM OF SUCH CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS SUBDI-
33 VISION TO PROVIDE ADDITIONAL CONSIDERATION TO SUCH PROVIDER IN AN AMOUNT
34 DETERMINED BY THE DIVISION TO BE NECESSARY TO COMPENSATE FOR (I) PROC-
35 ESSING SUBSIDIZED FREE PLAY TRANSACTIONS, AND (II) SYSTEM UPDATES AND
36 MODIFICATIONS OTHERWISE NEEDED AS OF SUCH EFFECTIVE DATE.
37 S 27. Severability. If any clause, sentence, paragraph, subdivision,
38 section or part of this act shall be adjudged by any court of competent
39 jurisdiction to be invalid, such judgment shall not affect, impair, or
40 invalidate the remainder thereof, but shall be confined in its operation
41 to the clause, sentence, paragraph, subdivision, section or part thereof
42 directly involved in the controversy in which the judgment shall have
43 been rendered. It is hereby declared to be the intent of the legisla-
44 ture that this act would have been enacted even if such invalid
45 provisions had not been included herein.
46 S 28. This act shall take effect immediately; provided, however, that
47 sections six, seventeen, twenty-four, twenty-five, and twenty-six of
48 this act shall take effect on the same date as the New York city off-
49 track betting corporation's confirmation of a plan of reorganization in
50 the pending bankruptcy proceeding in the Southern District of New York;
51 provided that the board of directors of the New York city off-track
52 betting corporation shall notify the legislative bill drafting commis-
53 sion upon the occurrence of such confirmation of such plan of reorgan-
54 ization in order that the commission may maintain an accurate and timely
55 effective data base of the official text of the laws of the state of New
A. 1 17
1 York in furtherance of effectuating the provisions of section 44 of the
2 legislative law and section 70-b of the public officers law.
