S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4000
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2021
                                ___________
 
 Introduced  by M. of A. DICKENS -- read once and referred to the Commit-
   tee 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
 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.
   §  2.  The racing, pari-mutuel wagering and breeding law is amended by
 adding a new section 912 to read as follows:
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03707-01-1

 A. 4000                             2
 
   § 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.
   § 3. Paragraph 2 of subdivision c of section 1612 of the tax  law,  as
 amended  by  chapter  174  of  the  laws  of 2013, 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.
   §  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
 LATER THAN THE THIRTIETH DAY AFTER THE  COMMENCEMENT  OF  THE  NEXT  NEW
 FISCAL YEAR.
   §  5.  This  act  shall take effect on the thirtieth of September next
 succeeding the date on which it shall have become a law.