S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    549
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by M. of A. CAHILL -- read once and referred to the Committee
   on Racing and Wagering
 
 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 3 of subdivision a of section 1617-a of  the  tax
 law, as added by section 1 of part SS of chapter 60 of the laws of 2016,
 is amended to read as follows:
   (3) a maximum of [two] FOUR facilities, ONE EACH IN THE SUFFOLK REGION
 AND  THE  NASSAU  REGION,  which shall be vendors for all purposes under
 this article, 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 wager-
 ing and breeding law, one each operated  by  a  corporation  established
 pursuant to section five hundred two of the racing, pari-mutuel 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-MU-
 TUEL WAGERING AND BREEDING LAW TO BE LOCATED WITHIN A  FACILITY  AUTHOR-
 IZED PURSUANT TO SECTIONS ONE THOUSAND EIGHT OR ONE THOUSAND 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; and
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02987-01-9

 A. 549                              2
 
   § 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;
   § 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.
   §  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:
   § 5. This act shall take effect immediately.