S T A T E   O F   N E W   Y O R K
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                                  9021

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 19, 2009
                               ___________

Introduced by M. of A. HOOPER -- read once and referred to the Committee
  on Racing and Wagering

AN  ACT  to  amend  the tax law and the racing, pari-mutuel wagering and
  breeding law, in relation to authorizing the division of  the  lottery
  to  conduct  the  operation of video lottery wagering at regional off-
  track betting facilities in Nassau county

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  tax law is amended by adding a new section 1617-b to
read as follows:
  S 1617-B. VIDEO LOTTERY GAMING AT  SIMULCAST  TELETHEATERS.  A.    THE
DIVISION  IS  HEREBY  AUTHORIZED TO LICENSE, PURSUANT TO RULES AND REGU-
LATIONS TO BE PROMULGATED  BY  THE  DIVISION,  THE  OPERATION  OF  VIDEO
LOTTERY  GAMING  TO  BE CONDUCTED AT A REGIONAL OFF-TRACK BETTING CORPO-
RATION FACILITY LICENSED PURSUANT TO SECTION ONE THOUSAND  NINE  OF  THE
RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING LAW, LOCATED WITHIN NASSAU
COUNTY. SUCH RULES AND REGULATIONS SHALL  PROVIDE,  AS  A  CONDITION  OF
LICENSURE,  THAT  AN OFF-TRACK BETTING FACILITY TO BE LICENSED IS CERTI-
FIED TO BE IN COMPLIANCE WITH ALL STATE AND LOCAL FIRE AND SAFETY CODES,
THAT THE DIVISION IS AFFORDED ADEQUATE SPACE, INFRASTRUCTURE, AND  AMEN-
ITIES  CONSISTENT  WITH  INDUSTRY  STANDARDS FOR SUCH VIDEO GAMING OPER-
ATIONS AS FOUND IN OTHER STATES, THAT OFF-TRACK BETTING FACILITY EMPLOY-
EES INVOLVED IN THE OPERATION OF VIDEO LOTTERY GAMING PURSUANT  TO  THIS
SECTION  ARE  LICENSED  BY THE RACING AND WAGERING BOARD, AND SUCH OTHER
TERMS AND  CONDITIONS  OF  LICENSURE  AS  THE  DIVISION  MAY  ESTABLISH.
NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF LAW, VIDEO LOTTERY GAMING
AT AN OFF-TRACK BETTING FACILITY  PURSUANT  TO  THIS  SECTION  SHALL  BE
DEEMED  AN  APPROVED  ACTIVITY  FOR  SUCH  OFF-TRACK BETTING CORPORATION
UNDER THE RELEVANT CITY, COUNTY, TOWN, OR VILLAGE  LAND  USE  OR  ZONING
ORDINANCES,  RULES,  OR  REGULATIONS.  NO  OFF-TRACK BETTING CORPORATION
OPERATING VIDEO LOTTERY GAMING PURSUANT TO THIS SECTION MAY  HOUSE  SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14439-02-9
              

A. 9021                             2

GAMING  ACTIVITY  IN  A  STRUCTURE DEEMED OR APPROVED BY THE DIVISION AS
"TEMPORARY" FOR LONGER THAN EIGHTEEN MONTHS.
  B.  THE  DIVISION, IN CONSULTATION WITH THE RACING AND WAGERING BOARD,
SHALL ESTABLISH STANDARDS FOR APPROVAL OF THE  TEMPORARY  AND  PERMANENT
PHYSICAL  LAYOUT AND CONSTRUCTION OF ANY FACILITY OR BUILDING DEVOTED TO
A VIDEO LOTTERY GAMING OPERATION. IN REVIEWING SUCH APPLICATION FOR  THE
CONSTRUCTION  OR RECONSTRUCTION OF THE FACILITY DEVOTED TO THE OPERATION
OR HOUSING OF VIDEO LOTTERY GAMING OPERATIONS, THE DIVISION, IN  CONSUL-
TATION WITH THE RACING AND WAGERING BOARD, SHALL ENSURE THAT SUCH FACIL-
ITY:
  (1)  POSSESSES SUPERIOR CONSUMER AMENITIES AND CONVENIENCES TO ENCOUR-
AGE AND ATTRACT THE PATRONAGE OF TOURISTS AND OTHER VISITORS FROM ACROSS
THE REGION, STATE, AND NATION; AND
  (2) HAS ADEQUATE MOTOR VEHICLE PARKING FACILITIES  TO  SATISFY  PATRON
REQUIREMENTS.
  C.  VIDEO  LOTTERY  GAMING  SHALL  ONLY  BE PERMITTED FOR NO MORE THAN
SIXTEEN CONSECUTIVE HOURS PER DAY AND ON NO DAY SHALL SUCH OPERATION  BE
CONDUCTED PAST 2:00 A.M.
  D.  THE DIVISION SHALL PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
NECESSARY FOR THE IMPLEMENTATION OF VIDEO LOTTERY GAMING  IN  ACCORDANCE
WITH THE PROVISIONS OF THIS SECTION.
  E.  ALL  WORKERS ENGAGED IN THE CONSTRUCTION, RECONSTRUCTION, DEVELOP-
MENT, REHABILITATION, OR MAINTENANCE OF ANY FACILITY FOR THE PURPOSE  OF
THE  INSTALLATION,  MAINTENANCE,  OR  REMOVAL OF VIDEO LOTTERY TERMINALS
SHALL BE SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT  AND  NINE  OF  THE
LABOR LAW TO THE EXTENT PROVIDED IN SUCH ARTICLES.
  F. NOTWITHSTANDING SECTION ONE HUNDRED TWENTY-ONE OF THE STATE FINANCE
LAW,  ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, THE VENDOR OFF-TRACK
BETTING CORPORATION SHALL PAY INTO THE STATE TREASURY, TO THE CREDIT  OF
THE  STATE  LOTTERY  FUND  CREATED  BY SECTION NINETY-TWO-C OF THE STATE
FINANCE LAW, NOT LESS THAN THE BALANCE OF THE TOTAL REVENUE AFTER PAYOUT
FOR PRIZES FOR VIDEO LOTTERY GAMING AT THE  LICENSED  OFF-TRACK  BETTING
FACILITY:    (1)  LESS TEN PERCENT OF THE TOTAL REVENUE AFTER PAYOUT FOR
PRIZES TO BE PAID TO THE DIVISION  FOR  OPERATION,  ADMINISTRATION,  AND
PROCUREMENT  PURPOSES;  (2)  LESS  A  VENDOR'S  FEE  THE AMOUNT OF 32.75
PERCENT OF THE TOTAL REVENUE AFTER PAYOUT FOR  PRIZES  WHICH  IS  TO  BE
RETAINED  BY  THE  VENDOR OFF-TRACK BETTING CORPORATION FOR SERVING AS A
LOTTERY AGENT; (3) LESS FIVE PERCENT OF THE TOTAL REVENUE  AFTER  PAYOUT
FOR  PRIZES  WHICH  IS TO BE PAID BY THE VENDOR OFF-TRACK BETTING CORPO-
RATION TO THE RESPECTIVE COUNTY IN WHICH THE REGIONAL OFF-TRACK  BETTING
CORPORATION  OPERATES AND WHICH SHALL BE EARMARKED BY THE COUNTY FOR THE
SUPPORT OF THE COMMUNITY COLLEGE WITHIN THE NEW  YORK  STATE  UNIVERSITY
SYSTEM  OPERATING  WITHIN SUCH COUNTY; AND (4) LESS A VENDOR'S MARKETING
ALLOWANCE TO BE RETAINED BY THE VENDOR OFF-TACK BETTING  CORPORATION  AT
THE  RATE  OF  TEN  PERCENT FOR THE FIRST ONE HUNDRED MILLION DOLLARS OF
TOTAL REVENUE AFTER PAYOUT FOR PRIZES AND EIGHT  PERCENT  THEREAFTER  OF
THE TOTAL REVENUE AFTER PAYOUT FOR PRIZES.
  (A)  AS  CONSIDERATION  FOR  THE  OPERATION  OF A VIDEO LOTTERY GAMING
FACILITY, THE VENDOR  OFF-TRACK  BETTING  CORPORATION  SHALL  CAUSE  THE
INVESTMENT  IN  THE  RACING  INDUSTRY  OF A PORTION OF THE TOTAL REVENUE
AFTER PAYOUT FOR PRIZES IN THE MANNER SET FORTH IN THIS SUBDIVISION.  ON
OR  BEFORE  THE TWENTIETH DAY OF EACH MONTH THE VENDOR OFF-TRACK BETTING
CORPORATION SHALL DISTRIBUTE TO THE NEW YORK STATE THOROUGHBRED BREEDING
AND DEVELOPMENT FUND CREATED PURSUANT TO SECTION TWO  HUNDRED  FIFTY-TWO
OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW .625 PERCENT OF THE
TOTAL  REVENUE  AFTER  PAYOUT  FOR PRIZES AND TO THE AGRICULTURE AND NEW

A. 9021                             3

YORK STATE HORSE BREEDING DEVELOPMENT FUND CREATED PURSUANT  TO  SECTION
THREE  HUNDRED  THIRTY  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
LAW .625 PERCENT OF THE TOTAL REVENUES AFTER PAYOUT FOR PRIZES. IN ADDI-
TION,  THE OFF-TRACK BETTING CORPORATION SHALL DISTRIBUTE 3.5 PERCENT OF
THE TOTAL REVENUE AFTER PAYOUT FOR PRIZES TO THE CORPORATION'S  REGIONAL
THOROUGHBRED AND HARNESS TRACKS IN PROPORTION TO THE RATIO OF THE WAGERS
PLACED  AT THE REGIONAL OFF-TRACK BETTING CORPORATION ON RACES CONDUCTED
BY EACH REGIONAL TRACK THE PRECEDING MONTH, TO BE DEDICATED TO ENHANCING
PURSES AT THE RESPECTIVE TRACK.
  (B) THE VENDOR UNDER THIS SECTION SHALL  RECEIVE  A  VENDOR'S  CAPITAL
AWARD  OF FOUR PERCENT OF THE TOTAL REVENUE AT THE VENDOR FACILITY AFTER
PAYOUT FOR PRIZES, WHICH SHALL BE USED EXCLUSIVELY FOR  CAPITAL  PROJECT
INVESTMENT  TO  IMPROVE  THE  FACILITIES  OF THE VENDOR WHICH PROMOTE OR
ENCOURAGE INCREASED ATTENDANCE AT THE VIDEO LOTTERY  FACILITY  INCLUDING
BUT  NOT  LIMITED  TO  HOTELS,  OTHER  LODGING FACILITIES, ENTERTAINMENT
FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENT ARENAS,  PARKING
GARAGES AND OTHER IMPROVEMENTS THAT ENHANCE FACILITY AMENITIES; PROVIDED
THAT  SUCH  CAPITAL  INVESTMENTS  SHALL  BE  APPROVED BY THE DIVISION IN
CONSULTATION WITH THE RACING AND WAGERING BOARD.
  G. THE SPECIFICATION FOR VIDEO LOTTERY GAMING  SHALL  BE  DESIGNED  IN
SUCH  A MANNER AS TO PAY PRIZES THAT AVERAGE NO LESS THAN NINETY PERCENT
OF SALES.
  H. OF THE TEN PERCENT RETAINED  BY  THE  DIVISION  FOR  ADMINISTRATIVE
PURPOSES,  ANY AMOUNTS BEYOND THAT WHICH ARE NECESSARY FOR THE OPERATION
AND ADMINISTRATION OF THIS SECTION  SHALL  BE  DEPOSITED  IN  THE  STATE
LOTTERY  FUND  CREATED  PURSUANT  TO  SECTION  NINETY-TWO-C OF THE STATE
FINANCE LAW.
  I. OF THE VENDOR FEE PAID TO THE VENDOR CORPORATION AFTER PAYMENT  OF:
ALL FINANCING COSTS; DIRECT EXPENSES IN THE ESTABLISHMENT OF THE FACILI-
TY;  AND  ONGOING  EXPENSES FOR THE GENERAL OPERATION AND MAINTENANCE OF
THE FACILITY, FORTY PERCENT SHALL BE PAID TO  SUFFOLK  COUNTY'S  GENERAL
FUND.
  S  2.  Subdivisions  1 and 2 of section 516 of the racing, pari-mutuel
wagering and breeding law are amended to read as follows:
  1. The monetary transactions of the corporation and the keeping of its
books and accounts  SHALL  BE  IN  ACCORDANCE  WITH  GENERALLY  ACCEPTED
ACCOUNTING PRINCIPLES AND shall be under the supervision of the board of
directors  who shall be subject to the general and specific jurisdiction
of the state board and to audit by the comptroller.
  2. After payment of all of the costs of the  corporation's  functions,
net  revenue  remaining to the corporation shall be divided, [quarterly]
ANNUALLY, not more than thirty days after  the  close  of  the  calendar
[quarter]  YEAR, among the participating counties in accordance with the
following provisions:
  a. Fifty percent of such revenue distributed among  the  participating
counties  on the basis of the proportion of the total off-track pari-mu-
tuel wagering accepted by the corporation during the  previous  calendar
quarter  that  originated  in the branch offices located in each partic-
ipating county;
  b. Fifty percent of such  revenue  on  the  basis  of  population,  as
defined  as  the  total population in each participating county shown by
the latest preceding decennial federal census completed and published as
a final population count by the  United  States  bureau  of  the  census
preceding  the  commencement of the calendar year in which such distrib-
ution is to be made; and

A. 9021                             4

  c. A participating county containing a city electing to participate in
the management and revenues of a corporation under  subdivision  two  of
section  five  hundred  two  of  this  article  shall distribute revenue
received under paragraphs a and b  of  this  subdivision  to  such  city
according to the proportion such city's population bears to the county's
population.
  S  3. Section 503 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 10-a to read as follows:
  10-A. TO OPERATE VIDEO LOTTERY GAMING AT  A  CORPORATION'S  FACILITIES
WHICH  ARE  LICENSED PURSUANT TO SECTION ONE THOUSAND NINE OF THIS CHAP-
TER;
  S 4. This act shall take effect immediately.