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

                                  4492

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 24, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

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.
                                                           LBD06399-01-5

S. 4492                             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.