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

                                 7753--A

                            I N  S E N A T E

                              June 5, 2014
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing  --  committee  discharged,  bill  amended,  ordered  reprinted as
  amended and recommitted to said committee

AN ACT to amend the tax law, in relation to video lottery gaming

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

  Section  1.  Paragraph 4 of subdivision a of section 1617-a of the tax
law, as added by chapter 174 of the laws of 2013, is amended to read  as
follows:
  (4)  at  a  maximum  of [two] FOUR facilities, ONE EACH IN THE SUFFOLK
REGION AND THE NASSAU REGION,  neither  to  exceed  one  thousand  video
lottery  gaming  devices, established within region three of zone one as
defined by section one thousand three hundred ten of the  racing,  pari-
mutuel  wagering  and  breeding  law, one each operated by a corporation
established pursuant to section five hundred two of the racing, pari-mu-
tuel wagering and breeding law in the  Suffolk  region  and  the  Nassau
region  to  be located within a facility authorized pursuant to sections
one thousand eight or one  thousand  nine  of  the  racing,  pari-mutuel
wagering  and breeding law, AND TWO FACILITIES IN ULSTER COUNTY, NONE TO
EXCEED FIVE HUNDRED VIDEO LOTTERY GAMING DEVICES,  EACH  OPERATED  BY  A
CORPORATION  ESTABLISHED  PURSUANT  TO  SECTION  FIVE HUNDRED TWO OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW TO  BE  LOCATED  WITHIN  A
FACILITY AUTHORIZED PURSUANT TO SECTIONS ONE THOUSAND EIGHT OR ONE THOU-
SAND  NINE  OF  THE  RACING,  PARI-MUTUEL  WAGERING AND BREEDING LAW. IN
RESPECT TO THE ULSTER  COUNTY  FACILITIES,  CATSKILL  OFF-TRACK  BETTING
CORPORATION  WILL  BE  THE  GAMING  OPERATOR  AND  A LOCAL RESOLUTION IN
SUPPORT OF THE FACILITY WILL BE REQUIRED. ADDITIONALLY,  IN  RESPECT  TO
THE  ULSTER COUNTY FACILITIES, THE FACILITIES MUST BE DESTINATION RESORT
PROPERTIES WITH AT LEAST  ONE  HUNDRED  HOTEL  ROOMS,  HAVE  SIGNIFICANT
RESORT  AMENITIES,  BE  CURRENTLY  OPEN  AND OPERATING, AND HAVE BEEN IN
CONTINUOUS OPERATION FOR NO LESS THAN THE PAST THREE YEARS. The  facili-
ties  authorized  pursuant to this paragraph shall be deemed vendors for
all purposes under this article.

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

                                                           LBD15469-03-4

S. 7753--A                          2

  S 2. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 175 of the laws of
2013, is amended to read as follows:
  (G-1)  Notwithstanding  [clause]  CLAUSES (A) and (B) of this subpara-
graph, when a video lottery gaming facility is located in  [either]  the
[county] COUNTIES of Nassau [or], Suffolk OR ULSTER and is operated by a
corporation  established  pursuant  to  section  five hundred two of the
racing, pari-mutuel wagering and breeding law at a rate  of  thirty-five
percent  of  the  total  revenue  wagered at the vendor after payout for
prizes pursuant to this chapter;
  S 3. Paragraph 2 of subdivision b of section 1612 of the tax  law,  as
amended  by  section  1 of part OO of chapter 59 of the laws of 2014, is
amended to read as follows:
  2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry  of
a  portion  of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth  in  this  subdivision.    With  the
exception  of  Aqueduct racetrack or a facility in the [county] COUNTIES
of Nassau [or], Suffolk OR ULSTER operated by a corporation  established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law, each such track shall dedicate a portion of its vendor
fees,  received  pursuant to clause (A), (B), (C), (D), (E), (F), or (G)
of subparagraph (ii) of paragraph  one  of  this  subdivision,  for  the
purpose  of  enhancing purses at such track, in an amount equal to eight
and three-quarters percent of the total revenue wagered  at  the  vendor
track  after pay out for prizes. One percent of the gross purse enhance-
ment amount, as required by this  subdivision,  shall  be  paid  to  the
gaming  commission  to  be used exclusively to promote and ensure equine
health and safety in New York. Any portion of such funding to the gaming
commission unused during a fiscal year shall be returned  to  the  video
lottery  gaming  operators  on  a  pro rata basis in accordance with the
amounts originally contributed by each operator and shall  be  used  for
the  purpose of enhancing purses at such track. One and one-half percent
of the gross purse  enhancement  amount  at  a  thoroughbred  track,  as
required  by  this  subdivision, shall be paid to an account established
pursuant to section two hundred twenty-one-a of the racing,  pari-mutuel
wagering  and  breeding  law  to  be  used exclusively to provide health
insurance for jockeys. In addition, with the exception of Aqueduct race-
track or a facility in the [county] COUNTIES of Nassau [or], Suffolk  OR
ULSTER  operated  by  a corporation established pursuant to section five
hundred two of the racing, pari-mutuel wagering and  breeding  law,  one
and  one-quarter  percent  of  total revenue wagered at the vendor track
after pay out for prizes, received pursuant to  clause  (A),  (B),  (C),
(D),  (E),  (F),  or  (G)  of subparagraph (ii) of paragraph one of this
subdivision, shall be distributed to the appropriate breeding  fund  for
the manner of racing conducted by such track.
  S  4.  The opening paragraph of subdivision f-1 of section 1612 of the
tax law, as amended by chapter 175 of the laws of 2013,  is  amended  to
read as follows:
  As  consideration  for  operation  of  video  lottery  gaming facility
located in the [county] COUNTIES of Nassau [or], Suffolk OR  ULSTER  and
operated  by  a corporation established pursuant to section five hundred
two of the racing, pari-mutuel wagering and breeding law,  the  division
shall  cause  the  investment  in  the  racing industry of the following
percentages of the vendor fee to be deposited or paid as follows:
  S 5. This act shall take effect immediately.