Bill Text: NY S03334 | 2011-2012 | General Assembly | Amended


Bill Title: Relates to the New York city off-track betting corporation and establishes the New York city off-track betting corporation fund.

Sponsorship: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2012-01-23 - PRINT NUMBER 3334B [S03334 Detail]

Download: New_York-2011-S03334-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3334--A
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                   February 17, 2011
                                      ___________
       Introduced by Sens. LANZA, GOLDEN -- read twice and ordered printed, and
         when  printed  to  be committed to the Committee on Racing, Gaming and
         Wagering -- committee discharged, bill amended, ordered  reprinted  as
         amended and recommitted to said committee
       AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law and
         the state finance law, in relation to  the  New  York  city  off-track
         betting  corporation  and  establishing  the  New  York city off-track
         betting corporation fund; and to  repeal  certain  provisions  of  the
         racing, pari-mutuel 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. Subdivision 9 of section 602  of  the  racing,  pari-mutuel
    2  wagering  and  breeding  law,  as  amended by chapter 115 of the laws of
    3  2008, is amended and a new subdivision 15 is added to read as follows:
    4    9. "Cost of corporation's functions." All costs and expenses  incurred
    5  by  the  corporation in connection with the performance of the functions
    6  of the corporation, including, but not limited to, operating expenses of
    7  the corporation, the cost of acquiring, constructing or equipping branch
    8  offices and other facilities  and  premises  of  the  corporation,  [and
    9  interest  and  principal  on  bonds,]  notes or other obligations of the
   10  corporation issued to finance the acquisition, construction or equipment
   11  of such offices, facilities or premises.
   12    15. "VENDOR OPERATOR." THE VENDOR OPERATOR SHALL BE SELECTED  PURSUANT
   13  TO  THE  PROVISIONS SET FORTH IN SECTION SIX HUNDRED TWENTY-FIVE OF THIS
   14  ARTICLE AND SHALL BE RESPONSIBLE FOR THE ADMINISTRATION AND OPERATION OF
   15  THE CORPORATION.
   16    S 2. Section 603 of the racing, pari-mutuel wagering and breeding law,
   17  as amended by chapter 115 of the laws of 2008, is  amended  to  read  as
   18  follows:
   19    S  603.  New York city off-track betting corporation. 1. A corporation
   20  to be known as the "New York  city  off-track  betting  corporation"  is
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08961-04-1
       S. 3334--A                          2
    1  hereby  created.  Such corporation shall be a body corporate and politic
    2  constituting a public benefit corporation. It  shall  be  [administered]
    3  OVERSEEN  by a board of directors consisting of five members, who may be
    4  public officers, appointed by the governor for fixed terms as hereinaft-
    5  er provided, one of whom shall be appointed on the recommendation of the
    6  temporary president of the senate, and one of whom shall be appointed on
    7  the recommendation of the speaker of the assembly.
    8    2.  THE TERMS OF ALL DIRECTORS SERVING A TERM THAT ENCOMPASSED JANUARY
    9  TWENTY-FIFTH, TWO THOUSAND ELEVEN, SHALL BE DEEMED TO HAVE  EXPIRED  AND
   10  NEW  DIRECTORS  SHALL  BE  APPOINTED.  Of  the  directors,  one shall be
   11  appointed for a term  ending  on  December  thirty-first,  two  thousand
   12  [nine] ELEVEN, one for a term ending on December thirty-first, two thou-
   13  sand  [ten]  TWELVE, one for a term ending on December thirty-first, two
   14  thousand [twelve] THIRTEEN, and  the  two  directors  appointed  on  the
   15  recommendation  of the temporary president of the senate and the speaker
   16  of the assembly, for a term ending December thirty-first,  two  thousand
   17  fourteen.  Upon  the  expiration  of  such terms, the terms of office of
   18  their successors shall be six years. Vacancies occurring otherwise  than
   19  by expiration of term shall be filled for the unexpired term.
   20    3. The governor shall designate one of the directors to be chairman of
   21  the  board  of directors and may at his pleasure, change his designation
   22  of any such director to be chairman.
   23    4. Each director shall continue to serve  until  the  appointment  and
   24  qualification of his successor.
   25    5.  The  directors  shall be removable for cause by the governor, upon
   26  charges and after a hearing.
   27    6. The [powers] OVERSIGHT of the corporation shall be  vested  in  and
   28  exercised  by  the  board  at a meeting duly held at a time fixed by any
   29  by-law adopted by the board, or at any duly adjourned  meeting  of  such
   30  meeting  or  at  any  meeting  held upon reasonable notice to all of the
   31  directors, or upon written waiver thereof, and a majority of  the  whole
   32  number  of  directors  shall constitute a quorum[; provided that neither
   33  the business nor the powers of the corporation shall  be  transacted  or
   34  exercised  except  pursuant to the favorable vote of at least a majority
   35  of the directors present at a meeting at which a quorum  is  in  attend-
   36  ance].
   37    7.  The  board may delegate to one or more of the directors, officers,
   38  agents or employees of the corporation such powers and duties as it  may
   39  deem proper.
   40    8.  The  directors  shall be reimbursed for their actual and necessary
   41  expenses incurred in the performance of their official duties.
   42    9. The directors may engage in outside employment or in  a  profession
   43  or  business  EXCEPT  AS  AN EXECUTIVE OR LEGISLATIVE EMPLOYEE OR unless
   44  otherwise prohibited from doing so by virtue of holding  another  public
   45  office  subject to the provisions of section seventy-three of the public
   46  officers law.
   47    10. The board shall hold an annual meeting.
   48    11. The fiscal year of the corporation shall be the same as  [that  of
   49  the  city,  provided,  however,  that  the corporation shall have a nine
   50  month fiscal year from July first,  two  thousand  eight  through  March
   51  thirty-first,  two thousand nine, and then the fiscal year of the corpo-
   52  ration shall be the same as] the state.
   53    12. THE CORPORATION WILL BE ADMINISTERED BY THE  VENDOR  OPERATOR  AND
   54  THE POWERS OF THE CORPORATION SHALL BE VESTED IN THE VENDOR OPERATOR.
   55    S  3. Section 617 of the racing, pari-mutuel wagering and breeding law
   56  is amended to read as follows:
       S. 3334--A                          3
    1    S 617. Exemption from taxation. [1.] The moneys and  property  of  the
    2  corporation  and  any property under its jurisdiction, control or super-
    3  vision, and all of its activities and operations shall  be  exempt  from
    4  taxation.
    5    [2. The state covenants with the purchasers of and with all subsequent
    6  holders  and  transferees  of  bonds and notes issued by the corporation
    7  pursuant to this article, in consideration  of  the  acceptance  of  and
    8  payment  for the said bonds and notes, that the said bonds and notes and
    9  the income therefrom, and all moneys, funds and revenue pledged  to  pay
   10  or  secure the payment of such bonds and notes shall at all time be free
   11  from taxation, except for estate and gift taxes and taxes on transfers.]
   12    S 4. The opening paragraph of section 621 of the  racing,  pari-mutuel
   13  wagering  and  breeding  law,  as  amended by chapter 115 of the laws of
   14  2008, is amended to read as follows:
   15    Within one hundred twenty days after the end of the fiscal year of the
   16  corporation, the [directors thereof] VENDOR OPERATOR shall submit to the
   17  governor, the legislature, the racing and wagering board and  the  state
   18  comptroller a complete and detailed report setting forth:
   19    S  5.  The racing, pari-mutuel wagering and breeding law is amended by
   20  adding a new section 625 to read as follows:
   21    S 625. SELECTION OF VENDOR OPERATOR. 1. THE NEW YORK STATE RACING  AND
   22  WAGERING  BOARD  SHALL SUBMIT, WITHIN THIRTY DAYS AFTER THESE PROVISIONS
   23  BECOME  LAW,  A  REQUEST  FOR  PROPOSALS  FROM  QUALIFYING  ENTITIES  AS
   24  DESCRIBED  HEREIN  FOR  THE  PURPOSE OF THE ADMINISTRATING OF THE CORPO-
   25  RATION. THE ENTITY CHOSEN TO ADMINISTER THE CORPORATION SHALL ENTER INTO
   26  A CONTRACT WITH THE STATE FOR A TERM OF TEN YEARS, WHICH MAY BE  RENEWED
   27  SUBJECT  TO  THE APPROVAL OF THE STATE RACING AND WAGERING BOARD AND THE
   28  APPROVAL OF THE NEW YORK CITY OFF-TRACK BETTING BOARD OF DIRECTORS.
   29    2. ELIGIBLE ENTITIES SHALL CONSIST  OF  INDIVIDUALS,  PARTNERSHIPS  OR
   30  CORPORATIONS,  PUBLIC  OR  PRIVATE,  WHICH ARE REQUIRED AS PART OF THEIR
   31  PROPOSAL TO SUBMIT AT LEAST ONE BUSINESS PLAN FOR  THE  RE-ESTABLISHMENT
   32  AND  CONTINUATION OF A PROFITABLE CORPORATION. IN AWARDING THE CONTRACT,
   33  THE STATE RACING AND WAGERING BOARD MUST CONSIDER THE FOLLOWING CRITERIA
   34  WITH RESPECT TO EACH APPLICANT: ITS EXPERIENCE  IN  MANAGING  SUCCESSFUL
   35  BUSINESS ENTERPRISES, ITS EXPERIENCE IN THE RACING INDUSTRY, ITS EXPERI-
   36  ENCE IN THE PARI-MUTUEL AND/OR OFF-TRACK BETTING INDUSTRIES, ITS EXPERI-
   37  ENCE  IN  THE  ENTERTAINMENT  INDUSTRY,  THE FEASIBILITY OF ITS PROPOSED
   38  BUSINESS PLAN OR PLANS, AND ITS COMMITMENT TO USE ITS  BEST  EFFORTS  TO
   39  SUPPORT  THE  VIABILITY  OF OFF-TRACK BETTING IN THE CITY OF NEW YORK AS
   40  WELL AS THE RACING INDUSTRY THROUGHOUT THE STATE.
   41    3. ALL BUSINESS PLANS SUBMITTED BY AN ENTITY MUST  INCLUDE  PROVISIONS
   42  FOR  PRIORITY FOR CONSIDERATION FOR EMPLOYMENT BY ANY FORMER EMPLOYEE OF
   43  THE CORPORATION WHOSE EMPLOYMENT TERMINATED OTHER  THAN  FOR  CAUSE,  BY
   44  RETIREMENT,  OR WITH A SEVERANCE AWARD. SUCH PLANS MUST ALSO PROVIDE FOR
   45  REPRESENTATION OF OFF-TRACK BETTING BRANCH OFFICES, OR AN EQUIVALENT, IN
   46  ALL OF THE BOROUGHS OF THE CITY OF NEW YORK, WITH PREFERENCE  GIVEN  FOR
   47  BUSINESS  PLANS  THAT HAVE AT LEAST THREE FACILITIES IN EACH BOROUGH AND
   48  THAT MAINTAIN THE SAME RATIO OF ACCESS TO OFF-TRACK  BETTING  FACILITIES
   49  AS  WAS  PREVIOUSLY PROVIDED BY THE CORPORATION PRIOR TO DECEMBER FIRST,
   50  TWO THOUSAND TEN.
   51    4. THE STATE RACING AND WAGERING BOARD SHALL MAKE PUBLIC ITS  PRELIMI-
   52  NARY  SELECTION  OF THE VENDOR OPERATOR NO LATER THAN THREE MONTHS AFTER
   53  THE SUBMISSION OF THE REQUEST FOR PROPOSALS, AND ALLOW FOR TWO WEEKS FOR
   54  PUBLIC COMMENT. THE FINAL SELECTION AND THE CONTRACT BETWEEN THE  VENDOR
   55  AND  THE  STATE  MUST BE FINALIZED WITHIN THIRTY DAYS OF THE PRELIMINARY
       S. 3334--A                          4
    1  SELECTION, BUT NO SOONER THAN THE END OF THE  TWO  WEEK  PUBLIC  COMMENT
    2  PERIOD.
    3    5.  THE  SELECTION OF VENDOR MAY BE REVOKED AND CANCELLED BY THE STATE
    4  RACING AND WAGERING BOARD FOR A MATERIAL BREACH OF  CONTRACT  OR  FOR  A
    5  VIOLATION OF THE RULES OF THE STATE RACING AND WAGERING BOARD OR IF SUCH
    6  VENDOR  OR  ITS  OFFICERS  OR  DIRECTORS  SHALL  KNOWINGLY  VIOLATE  THE
    7  PROVISIONS OF THIS CHAPTER OR OF THE PENAL LAW. THE ACTION OF THE  STATE
    8  RACING  AND WAGERING BOARD IN REVOKING THE SELECTION SHALL BE REVIEWABLE
    9  IN THE SUPREME COURT IN THE  MANNER  PROVIDED  BY  AND  SUBJECT  TO  THE
   10  PROVISIONS OF ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
   11    6.  FOR  CONTRACTS  IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS, ENTERED
   12  INTO BY THE VENDOR FOR THE PROCUREMENT OF GOODS OR SERVICES,  THE  BOARD
   13  MAY  REVIEW  THE  CHARACTER  AND FITNESS OF THE ENTITY OR ITS PRINCIPALS
   14  ENTERING INTO CONTRACTS WITH THE VENDOR.
   15    S 6. Clause (E) of subparagraph 5 and clause (F) of subparagraph 6  of
   16  paragraph  b of subdivision 1 of section 1016 of the racing, pari-mutuel
   17  wagering and breeding law, as amended by chapter 18 of the laws of 2008,
   18  are amended to read as follows:
   19    (E) On days when a franchised corporation is  not  conducting  a  race
   20  meeting  and  when  a licensed harness track is neither accepting wagers
   21  nor displaying the signal from an in-state thoroughbred  corporation  or
   22  association or an out-of-state thoroughbred track:
   23    (i)  Such licensed regional harness track shall receive in lieu of any
   24  other payments on wagers placed at off-track betting facilities  outside
   25  the special betting district on races conducted by an in-state thorough-
   26  bred  racing  corporation,  [two  and  eight-tenths] ONE AND FOUR-TENTHS
   27  percent on regular and multiple bets during a regional meeting and  [one
   28  and nine-tenths] NINETY-FIVE HUNDREDTHS percent of such bets if there is
   29  no  regional  meeting  and  [four  and eight-tenths] TWO AND FOUR-TENTHS
   30  percent on exotic bets on days on which there is a regional meeting  and
   31  [three  and  four-tenths]  ONE  AND SEVEN-TENTHS percent of such bets if
   32  there is no regional meeting.
   33    (ii) Such licensed regional harness track shall receive [one and  one-
   34  half]  SEVENTY-FIVE  HUNDREDTHS  per  centum on total regional handle on
   35  races conducted at out-of-state or out-of-country thoroughbred tracks.
   36    (iii) In those regions in  which  there  is  more  than  one  licensed
   37  regional  harness  track,  if no track is accepting wagers or displaying
   38  the live simulcast signal from the out-of-state  track,  the  total  sum
   39  shall  be divided among the tracks in proportion to the ratio the wagers
   40  placed on races conducted by each track bears to the corporation's total
   41  in-region harness handle. If one or more tracks are accepting wagers  or
   42  displaying  the live simulcast signal, the total amount shall be divided
   43  among those tracks not accepting  wagers  or  displaying  the  simulcast
   44  signal for an out-of-state track or in-state thoroughbred corporation or
   45  association.
   46    (F)  Of  the sums retained by a licensed harness facility, [fifty] ONE
   47  HUNDRED percent shall be used exclusively for purses  awarded  in  races
   48  conducted  by  such  licensed  facility [and the remaining fifty percent
   49  shall be retained by such licensed facility for  its  general  purposes,
   50  provided,  however,  that  in  a  harness  special  betting district the
   51  portion of the sums retained by a licensed harness facility to  be  used
   52  for  purses or the methodology for calculating the amount to be used for
   53  purses may be specified in a written contract between a  harness  racing
   54  association  or  corporation  and  its representative horsemen's associ-
   55  ation].
       S. 3334--A                          5
    1    S 7. Section 1017 of the racing,  pari-mutuel  wagering  and  breeding
    2  law, as amended by chapter 18 of the laws of 2008, is amended to read as
    3  follows:
    4    S  1017.  Out-of-state  or out-of-country races. 1. Licensed simulcast
    5  facilities may accept wagers and display the signal of  out-of-state  or
    6  out-of-country  thoroughbred tracks after 7Labor P.M. in accordance with
    7  the provisions of this section.  Such  simulcasting  may  include  mixed
    8  meetings  if  such meetings are integral to such racing programs and all
    9  such wagering on such races shall be construed to be thoroughbred races.
   10  For  facilities  located  within  the  special  betting  district,  such
   11  approval  shall  also be required from a thoroughbred racing corporation
   12  during the period a racing program is being  conducted  at  such  track.
   13  Such  approval shall not be required on any day such thoroughbred racing
   14  corporation is also accepting an out-of-state or  out-of-country  signal
   15  and  wager, as authorized by this section. The provisions of section one
   16  thousand sixteen of this article shall be applicable to the  conduct  of
   17  such  simulcasting and the provisions of clauses (A) and (B) of subpara-
   18  graph four of paragraph b of subdivision one  of  section  one  thousand
   19  sixteen  of  this  article  shall  apply to those facilities licensed in
   20  accordance with sections one thousand eight and  one  thousand  nine  of
   21  this  article  and the provisions of clauses (A) and (B) of subparagraph
   22  six of paragraph b of subdivision one of section one thousand sixteen of
   23  this article shall apply to those facilities licensed in accordance with
   24  section one thousand seven of this article, when such provisions are  in
   25  full  force  and effect pursuant to such section. Provided, however, the
   26  provisions of section one thousand fourteen of  this  article  shall  be
   27  applicable to the conduct of such simulcasting, when such provisions are
   28  in full force and effect pursuant to such section.
   29    2.  a.  Maintenance of effort. Any off-track betting corporation which
   30  engages in accepting wagers on the simulcasts of thoroughbred races from
   31  out-of-state or out-of-country as permitted  under  subdivision  one  of
   32  this  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] purs-
   37  es made by such off-track corporation  pursuant  to  the  provisions  of
   38  section  one  thousand fifteen of this article during the year two thou-
   39  sand two, as derived from out-of-state  harness  races  displayed  after
   40  6:00  P.M.  If  approved  by the board, such scheduled payments shall be
   41  made from revenues derived from any simulcasting conducted  pursuant  to
   42  this section and 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  exceeds one hundred million dollars, each off-track betting  corporation
   47  conducting  such simulcasting shall pay to its regional harness track or
   48  tracks, an amount equal to [two] ONE percent of its proportionate  share
   49  of  such  excess  handle.  In  any  region  where  there are two or more
   50  regional harness tracks, such two percent shall be  divided  between  or
   51  among  the  tracks  in a proportion equal to the proportion of handle on
   52  live harness races conducted at such tracks during the preceding  calen-
   53  dar year. [Fifty percent of the] THE sum received by each track pursuant
   54  to  this  paragraph  shall  be  used  exclusively for increasing purses,
   55  stakes and prizes at that regional harness track.
       S. 3334--A                          6
    1    S 8. Subdivision 2 of section 529 of the racing, pari-mutuel  wagering
    2  and breeding law is amended to read as follows:
    3    2.  [Ninety-five  percent  of  the  balance  of such account remaining
    4  unclaimed as of the last day of February of such year shall be  paid  to
    5  the state tax commission by March fifteenth. On or before April tenth of
    6  each  year  the  balance of such account and any other unclaimed amounts
    7  received in the course of conducting off-track betting shall be paid  by
    8  such  corporation to the state tax commission. A penalty of five percent
    9  and interest at the rate of one percent per month from the due  date  to
   10  the  date  of  payment  of  the unclaimed balance due March fifteenth or
   11  April tenth, as the case may be, shall be payable in case  such  balance
   12  is  not  paid  when  due.  Such  amounts,  interest  and  penalties when
   13  collected by the state tax commission shall be deposited into the gener-
   14  al fund of the state treasury] ON APRIL FIRST OF EACH YEAR,  THE  AMOUNT
   15  OF  TICKETS  REMAINING  UNCLAIMED  FROM  THE  PRIOR YEAR MAY BE USED FOR
   16  CORPORATE PURPOSES.
   17    S 9. Subdivision 7 of section 532 of the racing, pari-mutuel  wagering
   18  and  breeding  law,  as  added  by  chapter  115 of the laws of 2008, is
   19  amended to read as follows:
   20    7. Notwithstanding any other provision of this section,  any  payments
   21  otherwise  payable  to  a city with a population of one million or more,
   22  pursuant to this section, [other than payments pursuant to subparagraphs
   23  (i) and (iii) of paragraph b of subdivision three of this section, shall
   24  be payable to the corporation and shall be available for  its  corporate
   25  purposes] SHALL PAY REMAINING AMOUNTS TO THE COMPTROLLER OF THE STATE OF
   26  NEW  YORK FOR DEPOSIT IN THE NEW YORK CITY OFF-TRACK BETTING CORPORATION
   27  FUND.
   28    S 10. Subdivision 2 of section 610 of the racing, pari-mutuel wagering
   29  and breeding law, as amended by chapter 115 of  the  laws  of  2008,  is
   30  amended to read as follows:
   31    2.  All moneys due the city pursuant to article five-A of this chapter
   32  shall be paid to the  New  York  city  [comptroller]  OFF-TRACK  BETTING
   33  CORPORATION FUND.
   34    S 11. Subdivision 6 of section 527 of the racing, pari-mutuel wagering
   35  and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
   36  amended to read as follows:
   37    6. The net amount remaining to each regional corporation after payment
   38  of taxes and distributions pursuant to this section and after payment of
   39  operating expenses and principal and interest on any obligations  shall,
   40  in  the  case  of  the  New  York city off-track betting corporation, be
   41  retained by the corporation, and in the case of  other  regional  corpo-
   42  rations  shall  accrue and be payable to participating counties pursuant
   43  to section five hundred sixteen of this chapter; provided, however, that
   44  the [New York city off-track betting corporation] VENDOR OPERATOR, after
   45  payment of all current taxes and distributions shall use such net amount
   46  to pay all [liabilities] OPERATING EXPENSES of such corporation  [as  of
   47  the  effective  date  of  the  chapter of the laws of two thousand eight
   48  which amended this subdivision], and at such time as  all  [liabilities]
   49  OPERATING  EXPENSES  have  been paid, such [corporation] VENDOR OPERATOR
   50  shall pay ANY remaining amounts to the comptroller of the state  of  New
   51  York  for  deposit  in  the  [general  fund  of the state] NEW YORK CITY
   52  OFF-TRACK BETTING CORPORATION FUND.
   53    S 12. The racing, pari-mutuel wagering and breeding law is amended  by
   54  adding a new section 626 to read as follows:
   55    S  626. VENDOR OPERATOR FEE. AS CONSIDERATION FOR THE OPERATION OF THE
   56  CORPORATION, THE COMPTROLLER SHALL PAY A VENDOR FEE IN EXCHANGE FOR  THE
       S. 3334--A                          7
    1  DAILY OPERATIONS AND CAPITALIZATION OF A NEW YORK CITY OFF-TRACK BETTING
    2  OPERATION  TO  BE  PAID AS FOLLOWS:   IF THE ANNUAL DEPOSIT INTO THE NEW
    3  YORK CITY OFF-TRACK BETTING  CORPORATION  FUND  IS  LESS  THAN  TWO  AND
    4  ONE-HALF  MILLION DOLLARS, THE VENDOR OPERATOR SHALL RECEIVE ONE HUNDRED
    5  PERCENT OF THE ANNUAL DEPOSITS; IF THE ANNUAL DEPOSIT INTO THE NEW  YORK
    6  CITY  OFF-TRACK  BETTING  CORPORATION  FUND IS LESS THAN OR EQUAL TO TEN
    7  MILLION DOLLARS, THE VENDOR OPERATOR SHALL  BE  PAID  TWO  AND  ONE-HALF
    8  MILLION  DOLLARS AND THE REMAINING FUNDS SHALL BE DEPOSITED TO THE STATE
    9  GENERAL FUND; IF THE ANNUAL DEPOSIT IS MORE THAN  TEN  MILLION  DOLLARS,
   10  THE VENDOR OPERATOR SHALL BE PAID TWENTY-FIVE PERCENT OF THE TOTAL ANNU-
   11  AL  DEPOSITS  AND  THE  REMAINING  FUNDS SHALL BE DEPOSITED TO THE STATE
   12  GENERAL FUND.
   13    S 13. The state finance law is amended by adding a new section 97-kkkk
   14  to read as follows:
   15    S 97-KKKK. NEW YORK CITY OFF-TRACK BETTING CORPORATION FUND. 1.  THERE
   16  IS HEREBY ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER, A SPECIAL  FUND
   17  TO BE KNOWN AS THE "NEW YORK CITY OFF-TRACK BETTING CORPORATION FUND".
   18    2.  SUCH FUND SHALL CONSIST OF ALL MONIES RECEIVED BY THE STATE PURSU-
   19  ANT TO SUBDIVISIONS ONE AND SIX OF SECTION FIVE HUNDRED TWENTY-SEVEN AND
   20  SUBDIVISION SEVEN OF SECTION FIVE  HUNDRED  THIRTY-TWO  OF  THE  RACING,
   21  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW.  ANY  INTEREST  EARNED BY THE
   22  INVESTMENT OF MONEYS IN SUCH FUND SHALL BE ADDED TO SUCH FUND, BECOME  A
   23  PART OF SUCH FUND, AND BE USED FOR THE PURPOSE OF SUCH FUND.
   24    3.  MONEYS  OF  THE  NEW  YORK CITY OFF-TRACK BETTING CORPORATION FUND
   25  SHALL BE MADE AVAILABLE TO THE COMPTROLLER FOR THE PURPOSE OF PAYING THE
   26  NEW YORK CITY OFF-TRACK BETTING VENDOR OPERATOR FEE DISTRIBUTED  ACCORD-
   27  ING  TO SECTION SIX HUNDRED TWENTY-SIX OF THE RACING, PARI-MUTUEL WAGER-
   28  ING AND BREEDING LAW; ALL REMAINING MONEY SHALL BE  DISBURSED  INTO  THE
   29  STATE GENERAL FUND.
   30    S  14. The racing, pari-mutuel wagering and breeding law is amended by
   31  adding a new section 113 to read as follows:
   32    S 113. TELEPHONE AND INTERNET WAGERING. THE STATE RACING AND  WAGERING
   33  BOARD SHALL DETERMINE WHETHER ELIMINATING OR REGULATING THE AUTHORITY OF
   34  OUT-OF-STATE  ENTITIES TO ACCEPT TELEPHONE AND/OR INTERNET WAGERING FROM
   35  NEW YORK STATE RESIDENTS PLACED  WHILE  IN  NEW  YORK  STATE,  WOULD  BE
   36  CONSISTENT  WITH  THE  OBJECTIVES  OF  OFF-TRACK  PARI-MUTUEL BETTING AS
   37  DEFINED IN SECTION FIVE HUNDRED EIGHTEEN OF  THIS  CHAPTER,  AND  IF  SO
   38  DETERMINED,  THE  STATE  RACING  AND WAGERING BOARD SHALL ESTABLISH SUCH
   39  GENERAL  REGULATIONS  TO  ELIMINATE  OR   REGULATE   THE   PRACTICE   OF
   40  OUT-OF-STATE ENTITIES OF ACCEPTING SUCH WAGERS.
   41    S 15. Subdivision 4 of section 606 of the racing, pari-mutuel wagering
   42  and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
   43  amended to read as follows:
   44    4. All [employees and officers] PRESENT AND  FUTURE  RETIREES  of  the
   45  corporation  in  classes  or  positions  whose incumbents, in equivalent
   46  classes or positions of the city, are eligible, as of the effective date
   47  hereof, to participate in, and receive benefits from any city authorized
   48  health insurance or  welfare  benefit  program,  shall  be  eligible  to
   49  participate  in,  and receive benefits from any such health insurance or
   50  welfare benefit program; provided, however, that the [corporation] STATE
   51  shall reimburse the city or its designee for the actual cost of benefits
   52  under this subdivision.
   53    S 16. Subdivisions 4 and 5 of section 610 of the  racing,  pari-mutuel
   54  wagering and breeding law are REPEALED.
   55    S 17. Section 611 of the racing, pari-mutuel wagering and breeding law
   56  is REPEALED.
       S. 3334--A                          8
    1    S 18. Section 612 of the racing, pari-mutuel wagering and breeding law
    2  is REPEALED.
    3    S 19. Section 613 of the racing, pari-mutuel wagering and breeding law
    4  is REPEALED.
    5    S 20. Section 614 of the racing, pari-mutuel wagering and breeding law
    6  is REPEALED.
    7    S 21. Section 616 of the racing, pari-mutuel wagering and breeding law
    8  is REPEALED.
    9    S 22. Section 620 of the racing, pari-mutuel wagering and breeding law
   10  is REPEALED.
   11    S 23. This act shall take effect immediately.
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