S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3364
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2021
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 AN ACT to amend the tax law and the  racing,  pari-mutuel  wagering  and
   breeding  law,  in  relation  to the Catskill off-track betting corpo-
   ration providing licensing and financing to the Monticello racetrack

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 1 of subdivision a of section 1617-a of the tax
 law, as amended by section 1 of part SS of chapter 60  of  the  laws  of
 2016, is amended to read as follows:
   (1)  Aqueduct,  [Monticello,]  Yonkers, Finger Lakes, and Vernon Downs
 racetracks;
   § 2. Paragraphs 3 and 4 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,
 are amended and a new paragraph 8 is added to read as follows:
   (3)  a  maximum  of  two  facilities,  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  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]
 SECTION  one thousand eight or one thousand nine of the racing, pari-mu-
 tuel wagering and breeding law; [and]
   (4) Aqueduct racetrack, within the lottery terminal facility, pursuant
 to an agreement between the corporation established pursuant to  section
 five hundred two of the racing, pari-mutuel wagering and breeding law in
 the  Nassau  region and the operator of video lottery gaming at Aqueduct
 racetrack, when such agreement is approved by the gaming commission  and
 as long as such agreement is in place, and when such agreement is accom-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07782-01-1

 A. 3364                             2
 
 panied  by  a  detailed  spending  plan  for the corporation established
 pursuant to section five hundred two of the racing, pari-mutuel wagering
 and breeding law in the Nassau region, which includes  a  plan  for  the
 timely  payment  of  liabilities  due to the franchised corporation, and
 when such video lottery devices are hosted  by  the  operator  of  video
 lottery gaming at Aqueduct racetrack on behalf of the corporation estab-
 lished  pursuant  to section five hundred two of the racing, pari-mutuel
 wagering and breeding law in the Nassau region in lieu of  the  develop-
 ment  of a facility in Nassau county as authorized by paragraph three of
 THIS subdivision [a of this section].  Such  agreement  reached  by  the
 parties  shall  identify the agency principally responsible for funding,
 approving or undertaking any  actions  of  such  agreement.    Provided,
 however, nothing in this paragraph shall infringe upon the rights of the
 corporation  established  pursuant  to  section  five hundred two of the
 racing, pari-mutuel wagering and breeding law in the  Nassau  region  to
 develop  a facility pursuant to paragraph three of this subdivision upon
 the expiration, termination, or withdrawal of such agreement[.]; AND
   (8) A MAXIMUM OF THREE FACILITIES, WHICH  SHALL  BE  VENDORS  FOR  ALL
 PURPOSES  UNDER  THIS  ARTICLE, WITH A TOTAL OF ONE THOUSAND ONE HUNDRED
 TEN VIDEO LOTTERY GAMING DEVICES  IN  THE  COUNTY  OF  BROOME,  CHEMUNG,
 CHENANGO,  DELAWARE,  ORANGE,  ROCKLAND,  DUTCHESS,  TOMPKINS, PUTNAM OR
 ULSTER AND TO BE OPERATED  BY  A  CORPORATION  ESTABLISHED  PURSUANT  TO
 SECTION  FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREED-
 ING LAW, AND LOCATED WITHIN A FACILITY AUTHORIZED  PURSUANT  TO  SECTION
 ONE  THOUSAND  EIGHT  OR  ONE  THOUSAND  NINE OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW.
   § 3. Paragraph 2 of subdivision b of section 1612 of the tax  law,  as
 amended  by  section  2  of part S of chapter 39 of the laws of 2019, 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, a video lottery gaming facility author-
 ized  pursuant  to  paragraph  five  of subdivision a of section sixteen
 hundred seventeen-a of this article or  a  facility  in  the  county  of
 Nassau  or  Suffolk  operated  by  a corporation established pursuant to
 section five hundred two of the racing, pari-mutuel wagering and  breed-
 ing  law,  each  such track shall dedicate a portion of its vendor fees,
 received pursuant to clause (A), (B),  (B-1),  (B-2),  (C),  or  (D)  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.   ANY VIDEO LOTTERY  GAMING  FACILITY  IN  THE
 CATSKILL  REGION,  AS  DEFINED  IN SECTION FIVE HUNDRED  NINETEEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND TO BE  OPERATED  BY  A
 CORPORATION  ESTABLISHED  PURSUANT  TO  SECTION  FIVE HUNDRED TWO OF THE
 RACING,  PARI-MUTUEL WAGERING AND BREEDING LAW, SHALL DEDICATE A PORTION
 OF ITS VENDOR FEE FOR THE PURPOSE  OF  ENHANCING  PURSES  AT  MONTICELLO
 RACETRACK  IN AN AMOUNT EQUAL TO EIGHT AND THREE-QUARTERS PERCENT OF THE
 TOTAL REVENUE WAGERED AT THE FACILITY AFTER  PAY  OUT  FOR  PRIZES.  One
 percent  of  the  gross  purse  enhancement  amount, as required by this
 subdivision, shall be paid to the gaming commission to  be  used  exclu-
 sively  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

 A. 3364                             3
 
 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 racetrack, a video lottery gaming facility authorized pursu-
 ant to paragraph five of subdivision a of section sixteen hundred seven-
 teen-a  of this article or a facility in the county of Nassau or Suffolk
 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), (B-1), (B-2), (C),
 or  (D) 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.
   PROVIDED, FURTHER, THAT AS ADDITIONAL CONSIDERATION FOR THE  OPERATION
 OF VIDEO LOTTERY GAMING FACILITIES, THE CATSKILL REGIONAL OFF-TRACK-BET-
 TING  CORPORATION SHALL MAINTAIN THE SAME NUMBER OF RACE DATES AT MONTI-
 CELLO RACETRACK BEING CONDUCTED AT THE TIME IT  RECEIVES  A  LICENSE  TO
 CONDUCT HARNESS RACE MEETINGS AT SUCH RACETRACK.
   Provided,  further,  that nothing in this paragraph shall prevent each
 track from entering into an agreement, not to exceed  five  years,  with
 the  organization  authorized  to  represent its horsemen to increase or
 decrease the portion of its vendor fee dedicated to enhancing purses  at
 such  track  during the years of participation by such track, or to race
 fewer dates than required herein.
   § 4. Section 1612 of the tax law is amended by adding a  new  subdivi-
 sion i to read as follows:
   I.  AS  CONSIDERATION FOR OPERATION OF A VIDEO LOTTERY GAMING FACILITY
 LOCATED IN THE COUNTIES OF BROOME, CHEMUNG, CHENANGO, DELAWARE,  ORANGE,
 ROCKLAND,  DUTCHESS,  TOMPKINS,  PUTNAM,  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 VENDOR'S FEE TO BE DISTRIBUTED AS  FOLLOWS  AFTER  THE  PAY  OUT  OF
 RACING  SUPPORT PAYMENTS: (1) TWENTY PERCENT SHALL BE TRANSFERRED TO THE
 COUNTY IN WHICH THE VENDOR FACILITY IS LOCATED; AND  (2)  THE  REMAINDER
 SHALL  BE  USED  FOR PAYMENT OF THE COSTS OF THE CORPORATION'S FUNCTIONS
 PURSUANT TO SECTION FIVE HUNDRED  SIXTEEN  OF  THE  RACING,  PARI-MUTUEL
 WAGERING  AND  BREEDING LAW, AND THE NET REVENUE REMAINING AFTER PAYMENT
 OF SUCH COSTS SHALL BE DIVIDED AMONG THE PARTICIPATING  COUNTIES  LISTED
 IN  THIS  PARAGRAPH ON THE BASIS OF POPULATION AS DEFINED IN PARAGRAPH B
 OF SUBDIVISION TWO OF SECTION FIVE HUNDRED SIXTEEN OF THE RACING,  PARI-
 MUTUEL WAGERING AND BREEDING LAW.
   §  5. Section 301 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 6 to read as follows:
   6. THE BOARD SHALL HAVE THE POWER TO ISSUE LICENSES  TO  THE  CATSKILL
 REGIONAL OFF-TRACK-BETTING CORPORATION OR TO A SUBSIDIARY OF SAID CORPO-
 RATION FOR THE PURPOSE OF CONDUCTING HARNESS RACE MEETINGS AT MONTICELLO
 RACETRACK  AND TO MAKE CAPITAL IMPROVEMENTS TO SAID TRACK, PROVIDED THAT
 SUCH CORPORATION  MEETS  THE  TERMS  AND  CONDITIONS  FOR  LICENSURE  AS
 PROVIDED UNDER THIS ARTICLE.  NOTWITHSTANDING THE PROVISIONS OF ARTICLES
 FIVE  AND FIVE-A OF THIS CHAPTER, SAID CORPORATION SHALL BE DEEMED TO BE
 A HARNESS  RACING  CORPORATION  WITH  RESPECT  TO  PARI-MUTUEL  WAGERING
 CONDUCTED AT SAID TRACK PURSUANT TO THIS CHAPTER, EXCEPT THAT NET REVEN-

 A. 3364                             4
 
 UES  DERIVED  FROM  SUCH PARI-MUTUEL WAGERING SHALL BE DISTRIBUTED AMONG
 THE COUNTIES THAT PARTICIPATE IN SUCH CORPORATION ON THE BASIS OF  POPU-
 LATION,  AS DEFINED AS THE TOTAL POPULATION IN EACH PARTICIPATING COUNTY
 SHOWN  BY  THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS OF THE CALENDAR
 YEAR IN WHICH SUCH DISTRIBUTION IS TO BE MADE.
   § 6. The opening paragraph of subdivision 1  of  section  527  of  the
 racing, pari-mutuel wagering and breeding law, as amended by chapter 243
 of the laws of 2020, is amended to read as follows:
   The  disposition  of the retained commission from pools resulting from
 regular, multiple or exotic bets, as the case may be, whether placed  on
 races  run  within  a  region  or  outside a region, conducted by racing
 corporations, harness racing associations or corporations, quarter horse
 racing associations or corporations or races run outside the state shall
 be governed by the tables in paragraphs a and b of this subdivision. The
 rate denominated "state tax" shall represent the rate  of  a  reasonable
 tax imposed upon the retained commission for the privilege of conducting
 off-track  pari-mutuel  betting, which tax is hereby levied and shall be
 payable in the manner set forth in this section. Each off-track  betting
 corporation  shall  pay to the commission as a regulatory fee, which fee
 is hereby levied, six-tenths of one percent of the total daily pools  of
 such  corporation. Each corporation shall also pay twenty percent of the
 breaks derived from bets on harness  races  and  fifty  percent  of  the
 breaks  derived  from bets on all other races to the agriculture and New
 York State horse breeding and development fund and to  the  thoroughbred
 breeding  and  development fund, the total of such payments to be appor-
 tioned fifty percent to  each  such  fund.  For  the  purposes  of  this
 section,  the  New  York city, Suffolk, Nassau, and the Catskill regions
 shall constitute a single region  and  any  thoroughbred  track  located
 within  the  Capital  District  region shall be deemed to be within such
 single region. A "regional meeting" shall refer  to  either  harness  or
 thoroughbred  meetings,  or  both,  except that a franchised corporation
 shall not be a regional track for the purpose of receiving distributions
 from bets on thoroughbred races conducted by a thoroughbred track in the
 Catskill region conducting a mixed meeting.  With  the  exception  of  a
 harness  racing  association  or  corporation  first licensed to conduct
 pari-mutuel wagering at a track located in Tioga, Saratoga, SULLIVAN  or
 Westchester county after January first, two thousand five, racing corpo-
 rations  first  licensed  to  conduct  pari-mutuel  racing after January
 first, nineteen hundred eighty-six or a harness  racing  association  or
 corporation  first  licensed  to conduct pari-mutuel wagering at a track
 located in Genesee County after January first, two  thousand  five,  and
 quarter  horse  tracks  shall not be "regional tracks"; if there is more
 than one harness track within a region, such tracks shall evenly  divide
 payments  made  pursuant  to  the  tables  in paragraphs a and b of this
 subdivision when neither track is running. In the event a  track  elects
 to  reduce  its  retained  percentage from any or all of its pari-mutuel
 pools, the payments to the track holding the race and the regional track
 required by paragraphs a and b of this subdivision shall be  reduced  in
 proportion to such reduction. Nothing in this section shall be construed
 to authorize the conduct of off-track betting contrary to the provisions
 of section five hundred twenty-three of this article.
   §  7.  This  act shall take effect on the thirtieth day after it shall
 have become a law.