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

                                  1408

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. WRIGHT, CYMBROWITZ, MARKEY, P. RIVERA, FIELDS --
  Multi-Sponsored by -- M.  of  A.  ALFANO,  BARRA,  GOTTFRIED,  LENTOL,
  PEOPLES,  REILLY, N. RIVERA -- read once and referred to the Committee
  on Racing and Wagering

AN ACT to amend the racing, pari-mutuel wagering and  breeding  law  and
  the tax law, in relation to funding for a sound basic education

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

  Section 1. Legislative intent. The state of New York has an obligation
under its constitution to provide its children with a sound basic educa-
tion as recently and explicitly expressed in the Court of Appeals  deci-
sion  in  CAMPAIGN  FOR  FISCAL EQUITY V. STATE. In order to comply with
such holding and constitutional duty, the legislature hereby finds  that
new  and continuing funding streams are necessary to meet such duty. The
legislature further finds that the existing and  primary  funding  mech-
anism  for  education  in this state, the real property tax, has histor-
ically been imposed by local governments and state support for education
should and is intended to rectify uneven revenue yields from that source
of revenue due to local prevailing market forces.
  Supplementing the local property tax is necessary to assure that chil-
dren residing in areas of high need for educational services  that  also
have  a  small  tax base can receive the same fiscal resources that more
fortunate areas of the state utilize to educate our children. Each child
is entitled to substantially similar resources. To achieve this end in a
manner that will not unnecessarily displace or reduce  the  support  for
other  vulnerable  populations, the legislature hereby finds that licen-
sees of the newly created video lottery terminals, the division  of  the
lottery and other such beneficiaries will be receiving a substantial new
form  of  revenue  due  to recently enacted legislation and can absorb a
reduction in income from other sources at this time. The reductions  and

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

                                                           LBD00369-01-9

A. 1408                             2

transfers  in  this  act  will  provide for a continuing and substantial
revenue source for  the  state  to  partially  fund  its  obligation  to
adequately educate every child in this state.
  S  2.  The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 912 to read as follows:
  S 912. FUNDING FOR SOUND BASIC EDUCATION. 1. NOTWITHSTANDING ANY  LAW,
REGULATION  OR RULE TO THE CONTRARY, ANY PAYMENT UNDER ARTICLES FIVE AND
TEN OF THIS CHAPTER REQUIRED TO BE MADE BY AN OFF-TRACK  BETTING  CORPO-
RATION ESTABLISHED PURSUANT TO SECTIONS FIVE HUNDRED TWO AND SIX HUNDRED
THREE  OF  THIS  CHAPTER TO A REGIONAL TRACK, OTHER THAN FEES OR COMPEN-
SATION ARISING FROM RACES CONDUCTED BY A REGIONAL TRACK, SHALL  BE  MADE
PURSUANT  TO  THE  FOLLOWING SCHEDULE AFTER SUCH TRACK HAS BEEN LICENSED
AND IS CONDUCTING VIDEO  LOTTERY  GAMING  PURSUANT  TO  SECTION  SIXTEEN
HUNDRED SEVENTEEN-A OF THE TAX LAW:
  A. TWENTY PER CENTUM OF THE SUM REQUIRED BY THE PROVISIONS OF ARTICLES
FIVE  AND TEN OF THIS CHAPTER SHALL BE RETAINED BY THE OFF-TRACK BETTING
CORPORATION MAKING SUCH PAYMENT FOR ITS NECESSARY AND ORDINARY OPERATING
EXPENSES; AND
  B. THE REMAINDER SHALL BE TRANSFERRED TO THE REGIONAL TRACK IN ACCORD-
ANCE WITH THE PROVISIONS OF ARTICLES FIVE AND TEN OF THIS CHAPTER AND OF
THE SUM RECEIVED BY SUCH TRACK, ONE-THIRD SHALL BE PROMPTLY  TRANSFERRED
TO  THE  HORSEMEN'S  PURSE  ACCOUNT  TO  BE  USED EXCLUSIVELY FOR PURSES
AWARDED IN RACES CONDUCTED BY SUCH TRACK AND  THE  REMAINING  AMOUNT  OF
SUCH  SUM  SHALL  BE  PROMPTLY  TRANSFERRED TO THE STATE COMPTROLLER FOR
DEPOSIT IN THE SOUND BASIC  EDUCATION  FUND  MAINTAINED  BY  SUCH  COMP-
TROLLER.
  2.  ANY  TRANSFER REQUIRED OF A REGIONAL TRACK PURSUANT TO SUBDIVISION
ONE OF THIS SECTION SHALL BE MADE WITHIN SEVEN BUSINESS DAYS OF  RECEIPT
OF  ANY  SUM  FROM  AN  OFF-TRACK BETTING CORPORATION AND ANY TRACK THAT
FAILS TO DO SO ON THREE OR MORE OCCASIONS WITHIN A  YEAR  OF  THE  FIRST
SUCH  FAILURE,  SHALL  CONSTITUTE PRESUMPTIVE EVIDENCE OF ANY ELEMENT OF
INTENT IN A CRIME DEFINED UNDER ARTICLE ONE HUNDRED  FIFTY-FIVE  OF  THE
PENAL  LAW  IN ANY PROSECUTION OF SUCH CRIME AGAINST THE CHIEF OPERATING
OFFICER AND/OR THE CHIEF FINANCIAL OFFICER OF SUCH TRACK.
  S 3. Paragraph 2 of subdivision c of section 1612 of the tax  law,  as
amended  by  section  2 of part CC of chapter 61 of the laws of 2005, is
amended to read as follows:
  2. 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 pilot  program  shall  be  deposited  in  the
[lottery education account] SOUND BASIC EDUCATION FUND MAINTAINED BY THE
STATE COMPTROLLER.
  S  4.  Section 1614 of the tax law is amended by adding a new subdivi-
sion c to read as follows:
  C. THE DIRECTOR SHALL PROVIDE WRITTEN NOTIFICATION TO THE DIRECTOR  OF
THE  BUDGET,  THE  CHAIRPERSON  OF  THE SENATE FINANCE COMMITTEE AND THE
CHAIRPERSON OF THE ASSEMBLY WAYS AND  MEANS  COMMITTEE  ON  A  QUARTERLY
BASIS  OF  THE  TOTAL  AMOUNT MAINTAINED BY THE DIVISION AS UNCLAIMED OR
ABANDONED PRIZE MONEY UNDER THIS SECTION, AND SET FORTH  THE  JUSTIFICA-
TION  FOR  THE  RETENTION  OF ANY SUM BY THE DIVISION IN EXCESS OF FIFTY
MILLION FOR ANY PURPOSE OTHER THAN THE TRANSFER OF SUCH  EXCESS  TO  THE
SOUND  BASIC  EDUCATION  FUND  MAINTAINED BY THE STATE COMPTROLLER ON OR
BEFORE THE THIRTIETH DAY AFTER THE COMMENCEMENT OF THE FOLLOWING  FISCAL
YEAR.  UNLESS  SUCH  JUSTIFICATION  FOR  RETENTION  BY  THE  DIVISION IS
ACCEPTED IN WRITING BY ALL THREE RECIPIENTS OF SUCH NOTICE  AS  PROVIDED
IN  THIS SUBDIVISION, TRANSFER OF THE EXCESS TO SUCH FUND SHALL OCCUR NO

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LATER THAN THE THIRTIETH DAY AFTER THE  COMMENCEMENT  OF  THE  NEXT  NEW
FISCAL YEAR.
  S  5.  This  act  shall take effect on the thirtieth of September next
succeeding the date on which it shall have become a law.