Bill Text: NY A03364 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to the Catskill off-track betting corporation providing licensing and financing to the Monticello racetrack and the ability to provide capital improvements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - referred to racing and wagering [A03364 Detail]
Download: New_York-2021-A03364-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3364 2021-2022 Regular Sessions IN ASSEMBLY January 26, 2021 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Racing and Wagering AN ACT to amend the tax law and the racing, pari-mutuel wagering and breeding law, in relation to the Catskill off-track betting corpo- ration providing licensing and financing to the Monticello racetrack The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 1 of subdivision a of section 1617-a of the tax 2 law, as amended by section 1 of part SS of chapter 60 of the laws of 3 2016, is amended to read as follows: 4 (1) Aqueduct, [Monticello,] Yonkers, Finger Lakes, and Vernon Downs 5 racetracks; 6 § 2. Paragraphs 3 and 4 of subdivision a of section 1617-a of the tax 7 law, as added by section 1 of part SS of chapter 60 of the laws of 2016, 8 are amended and a new paragraph 8 is added to read as follows: 9 (3) a maximum of two facilities, which shall be vendors for all 10 purposes under this article, neither to exceed one thousand video 11 lottery gaming devices, established within region three of zone one as 12 defined by section one thousand three hundred ten of the racing, pari- 13 mutuel wagering and breeding law, one each operated by a corporation 14 established pursuant to section five hundred two of the racing, pari-mu- 15 tuel wagering and breeding law in the Suffolk region and the Nassau 16 region to be located within a facility authorized pursuant to [sections] 17 section one thousand eight or one thousand nine of the racing, pari-mu- 18 tuel wagering and breeding law; [and] 19 (4) Aqueduct racetrack, within the lottery terminal facility, pursuant 20 to an agreement between the corporation established pursuant to section 21 five hundred two of the racing, pari-mutuel wagering and breeding law in 22 the Nassau region and the operator of video lottery gaming at Aqueduct 23 racetrack, when such agreement is approved by the gaming commission and 24 as long as such agreement is in place, and when such agreement is accom- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07782-01-1A. 3364 2 1 panied by a detailed spending plan for the corporation established 2 pursuant to section five hundred two of the racing, pari-mutuel wagering 3 and breeding law in the Nassau region, which includes a plan for the 4 timely payment of liabilities due to the franchised corporation, and 5 when such video lottery devices are hosted by the operator of video 6 lottery gaming at Aqueduct racetrack on behalf of the corporation estab- 7 lished pursuant to section five hundred two of the racing, pari-mutuel 8 wagering and breeding law in the Nassau region in lieu of the develop- 9 ment of a facility in Nassau county as authorized by paragraph three of 10 this subdivision [a of this section]. Such agreement reached by the 11 parties shall identify the agency principally responsible for funding, 12 approving or undertaking any actions of such agreement. Provided, 13 however, nothing in this paragraph shall infringe upon the rights of the 14 corporation established pursuant to section five hundred two of the 15 racing, pari-mutuel wagering and breeding law in the Nassau region to 16 develop a facility pursuant to paragraph three of this subdivision upon 17 the expiration, termination, or withdrawal of such agreement[.]; and 18 (8) a maximum of three facilities, which shall be vendors for all 19 purposes under this article, with a total of one thousand one hundred 20 ten video lottery gaming devices in the county of Broome, Chemung, 21 Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam or 22 Ulster and to be operated by a corporation established pursuant to 23 section five hundred two of the racing, pari-mutuel wagering and breed- 24 ing law, and located within a facility authorized pursuant to section 25 one thousand eight or one thousand nine of the racing, pari-mutuel 26 wagering and breeding law. 27 § 3. Paragraph 2 of subdivision b of section 1612 of the tax law, as 28 amended by section 2 of part S of chapter 39 of the laws of 2019, is 29 amended to read as follows: 30 2. As consideration for the operation of a video lottery gaming facil- 31 ity, the division, shall cause the investment in the racing industry of 32 a portion of the vendor fee received pursuant to paragraph one of this 33 subdivision in the manner set forth in this subdivision. With the 34 exception of Aqueduct racetrack, a video lottery gaming facility author- 35 ized pursuant to paragraph five of subdivision a of section sixteen 36 hundred seventeen-a of this article or a facility in the county of 37 Nassau or Suffolk operated by a corporation established pursuant to 38 section five hundred two of the racing, pari-mutuel wagering and breed- 39 ing law, each such track shall dedicate a portion of its vendor fees, 40 received pursuant to clause (A), (B), (B-1), (B-2), (C), or (D) of 41 subparagraph (ii) of paragraph one of this subdivision, for the purpose 42 of enhancing purses at such track, in an amount equal to eight and 43 three-quarters percent of the total revenue wagered at the vendor track 44 after pay out for prizes. Any video lottery gaming facility in the 45 Catskill region, as defined in section five hundred nineteen of the 46 racing, pari-mutuel wagering and breeding law and to be operated by a 47 corporation established pursuant to section five hundred two of the 48 racing, pari-mutuel wagering and breeding law, shall dedicate a portion 49 of its vendor fee for the purpose of enhancing purses at Monticello 50 racetrack in an amount equal to eight and three-quarters percent of the 51 total revenue wagered at the facility after pay out for prizes. One 52 percent of the gross purse enhancement amount, as required by this 53 subdivision, shall be paid to the gaming commission to be used exclu- 54 sively to promote and ensure equine health and safety in New York. Any 55 portion of such funding to the gaming commission unused during a fiscal 56 year shall be returned to the video lottery gaming operators on a proA. 3364 3 1 rata basis in accordance with the amounts originally contributed by each 2 operator and shall be used for the purpose of enhancing purses at such 3 track. One and one-half percent of the gross purse enhancement amount at 4 a thoroughbred track, as required by this subdivision, shall be paid to 5 an account established pursuant to section two hundred twenty-one-a of 6 the racing, pari-mutuel wagering and breeding law to be used exclusively 7 to provide health insurance for jockeys. In addition, with the exception 8 of Aqueduct racetrack, a video lottery gaming facility authorized pursu- 9 ant to paragraph five of subdivision a of section sixteen hundred seven- 10 teen-a of this article or a facility in the county of Nassau or Suffolk 11 operated by a corporation established pursuant to section five hundred 12 two of the racing, pari-mutuel wagering and breeding law, one and one- 13 quarter percent of total revenue wagered at the vendor track after pay 14 out for prizes, received pursuant to clause (A), (B), (B-1), (B-2), (C), 15 or (D) of subparagraph (ii) of paragraph one of this subdivision, shall 16 be distributed to the appropriate breeding fund for the manner of racing 17 conducted by such track. 18 Provided, further, that as additional consideration for the operation 19 of video lottery gaming facilities, the Catskill regional off-track-bet- 20 ting corporation shall maintain the same number of race dates at Monti- 21 cello racetrack being conducted at the time it receives a license to 22 conduct harness race meetings at such racetrack. 23 Provided, further, that nothing in this paragraph shall prevent each 24 track from entering into an agreement, not to exceed five years, with 25 the organization authorized to represent its horsemen to increase or 26 decrease the portion of its vendor fee dedicated to enhancing purses at 27 such track during the years of participation by such track, or to race 28 fewer dates than required herein. 29 § 4. Section 1612 of the tax law is amended by adding a new subdivi- 30 sion i to read as follows: 31 i. As consideration for operation of a video lottery gaming facility 32 located in the counties of Broome, Chemung, Chenango, Delaware, Orange, 33 Rockland, Dutchess, Tompkins, Putnam, or Ulster, and operated by a 34 corporation established pursuant to section five hundred two of the 35 racing, pari-mutuel wagering and breeding law, the division shall cause 36 the vendor's fee to be distributed as follows after the pay out of 37 racing support payments: (1) twenty percent shall be transferred to the 38 county in which the vendor facility is located; and (2) the remainder 39 shall be used for payment of the costs of the corporation's functions 40 pursuant to section five hundred sixteen of the racing, pari-mutuel 41 wagering and breeding law, and the net revenue remaining after payment 42 of such costs shall be divided among the participating counties listed 43 in this paragraph on the basis of population as defined in paragraph b 44 of subdivision two of section five hundred sixteen of the racing, pari- 45 mutuel wagering and breeding law. 46 § 5. Section 301 of the racing, pari-mutuel wagering and breeding law 47 is amended by adding a new subdivision 6 to read as follows: 48 6. The board shall have the power to issue licenses to the Catskill 49 regional off-track-betting corporation or to a subsidiary of said corpo- 50 ration for the purpose of conducting harness race meetings at Monticello 51 racetrack and to make capital improvements to said track, provided that 52 such corporation meets the terms and conditions for licensure as 53 provided under this article. Notwithstanding the provisions of articles 54 five and five-a of this chapter, said corporation shall be deemed to be 55 a harness racing corporation with respect to pari-mutuel wagering 56 conducted at said track pursuant to this chapter, except that net reven-A. 3364 4 1 ues derived from such pari-mutuel wagering shall be distributed among 2 the counties that participate in such corporation on the basis of popu- 3 lation, as defined as the total population in each participating county 4 shown by the latest preceding decennial federal census of the calendar 5 year in which such distribution is to be made. 6 § 6. The opening paragraph of subdivision 1 of section 527 of the 7 racing, pari-mutuel wagering and breeding law, as amended by chapter 243 8 of the laws of 2020, is amended to read as follows: 9 The disposition of the retained commission from pools resulting from 10 regular, multiple or exotic bets, as the case may be, whether placed on 11 races run within a region or outside a region, conducted by racing 12 corporations, harness racing associations or corporations, quarter horse 13 racing associations or corporations or races run outside the state shall 14 be governed by the tables in paragraphs a and b of this subdivision. The 15 rate denominated "state tax" shall represent the rate of a reasonable 16 tax imposed upon the retained commission for the privilege of conducting 17 off-track pari-mutuel betting, which tax is hereby levied and shall be 18 payable in the manner set forth in this section. Each off-track betting 19 corporation shall pay to the commission as a regulatory fee, which fee 20 is hereby levied, six-tenths of one percent of the total daily pools of 21 such corporation. Each corporation shall also pay twenty percent of the 22 breaks derived from bets on harness races and fifty percent of the 23 breaks derived from bets on all other races to the agriculture and New 24 York State horse breeding and development fund and to the thoroughbred 25 breeding and development fund, the total of such payments to be appor- 26 tioned fifty percent to each such fund. For the purposes of this 27 section, the New York city, Suffolk, Nassau, and the Catskill regions 28 shall constitute a single region and any thoroughbred track located 29 within the Capital District region shall be deemed to be within such 30 single region. A "regional meeting" shall refer to either harness or 31 thoroughbred meetings, or both, except that a franchised corporation 32 shall not be a regional track for the purpose of receiving distributions 33 from bets on thoroughbred races conducted by a thoroughbred track in the 34 Catskill region conducting a mixed meeting. With the exception of a 35 harness racing association or corporation first licensed to conduct 36 pari-mutuel wagering at a track located in Tioga, Saratoga, Sullivan or 37 Westchester county after January first, two thousand five, racing corpo- 38 rations first licensed to conduct pari-mutuel racing after January 39 first, nineteen hundred eighty-six or a harness racing association or 40 corporation first licensed to conduct pari-mutuel wagering at a track 41 located in Genesee County after January first, two thousand five, and 42 quarter horse tracks shall not be "regional tracks"; if there is more 43 than one harness track within a region, such tracks shall evenly divide 44 payments made pursuant to the tables in paragraphs a and b of this 45 subdivision when neither track is running. In the event a track elects 46 to reduce its retained percentage from any or all of its pari-mutuel 47 pools, the payments to the track holding the race and the regional track 48 required by paragraphs a and b of this subdivision shall be reduced in 49 proportion to such reduction. Nothing in this section shall be construed 50 to authorize the conduct of off-track betting contrary to the provisions 51 of section five hundred twenty-three of this article. 52 § 7. This act shall take effect on the thirtieth day after it shall 53 have become a law.
