S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4542
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 16, 2023
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
   relation to utilizing funds from the capital acquisition fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 509-a  of  the  racing,  pari-mutuel  wagering  and
 breeding  law,  as  amended by section 1 of part DD of chapter 59 of the
 laws of 2022, is amended to read as follows:
   § 509-a. Capital acquisition fund. 1. The corporation may  create  and
 establish  a  capital  acquisition fund for the purpose of financing the
 acquisition, construction or equipping of offices, facilities  or  prem-
 ises  of the corporation. Such capital acquisition fund shall consist of
 [(i)] A. the  amounts  specified  pursuant  to  subdivision  three-a  of
 section  five hundred thirty-two of this chapter; and [(ii)] B. contrib-
 utions from the corporation's pari-mutuel wagering pools, subject to the
 following limitations:
   [a.] (I) no contribution shall exceed the amount of one percent of the
 total pari-mutuel wagering pools for the quarter in which  the  contrib-
 ution is made;
   [b.]  (II)  no  contribution  shall reduce the amount of quarterly net
 revenues, exclusive of surcharge revenues, to an amount less than  fifty
 percent of such net revenues; and
   [c.]  (III) the balance of the fund shall not exceed the lesser of one
 percent of total pari-mutuel wagering  pools  for  the  previous  twelve
 months  or the undepreciated value of the corporation's offices, facili-
 ties and premises.
   2. a. Notwithstanding any other provision of law or regulation to  the
 contrary,  from April nineteenth, two thousand twenty-one to March thir-
 ty-first, two thousand twenty-two, twenty-three percent  of  the  funds,
 not  to  exceed  two  and one-half million dollars, in the Catskill off-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09550-01-3
              

 A. 4542                             2
 
 track betting corporation's capital acquisition  fund  and  twenty-three
 percent of the funds, not to exceed four hundred forty thousand dollars,
 in  the Capital off-track betting corporation's capital acquisition fund
 established  pursuant  to  this  section shall also be available to such
 off-track betting corporation for the purposes of statutory obligations,
 payroll, and expenditures necessary to accept authorized wagers.
   b. Notwithstanding any other provision of law  or  regulation  to  the
 contrary,  from  April  first,  two thousand twenty-two to March thirty-
 first, two thousand twenty-three, twenty-three percent of the funds, not
 to exceed two and one-half million dollars, in  the  Catskill  off-track
 betting  corporation's  capital acquisition fund established pursuant to
 this section, and twenty-three percent of the funds, not to exceed  four
 hundred  forty thousand dollars, in the Capital off-track betting corpo-
 ration's capital acquisition fund established pursuant to this  section,
 shall  be  available  to  such  off-track  betting  corporations for the
 purposes of statutory obligations, payroll, and  expenditures  necessary
 to accept authorized wagers.
   c.  Prior  to a corporation being able to utilize the funds authorized
 by paragraph b of this  subdivision,  the  corporation  must  submit  an
 expenditure  plan  to  the gaming commission for review. Such plan shall
 include the corporation's outstanding liabilities, projected revenue for
 the upcoming year, a detailed explanation of how the funds will be used,
 and any other information determined necessary by the  commission.  Upon
 review, the commission will make a determination as to whether access to
 the funds is needed and warranted.
   3.  The  Catskill  off-track  betting corporation and the Capital off-
 track betting corporation shall make a report to the  governor,  speaker
 of  the  assembly,  temporary president of the senate and the commission
 detailing the actual use of the funds  made  available  in  the  capital
 acquisition  fund. Such report shall include, but not be limited to, any
 impact on employment levels since utilizing the funds, the status of any
 statutory obligations, an accounting of the use of such funds,  and  any
 other  information  as  deemed  necessary by the commission. Such report
 shall be due no later than the last day of the fiscal year in which  the
 monies were spent.
   4.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW OR REGULATION TO THE
 CONTRARY, UP TO FIVE MILLION DOLLARS OF THE FUNDS IN A CAPITAL  ACQUISI-
 TION  FUND, ESTABLISHED PURSUANT TO THIS SECTION SHALL BE AVAILABLE ONCE
 PER ANNUM TO A REGIONAL  OFF-TRACK  BETTING  CORPORATION  FOR  THE  SOLE
 PURPOSE  OF  PAYING  THE  SALARIES  AND  BENEFITS OF EMPLOYEES AND OTHER
 EXPENSES OF SUCH CORPORATION;  PROVIDED,  HOWEVER,  THAT  SUCH  REGIONAL
 OFF-TRACK  BETTING  CORPORATION IS NOT UTILIZING ITS CAPITAL ACQUISITION
 FUND FOR CORPORATE PURPOSES AS PROVIDED IN SECTION THREE OF PART  II  OF
 CHAPTER  FIFTY-EIGHT  OF  THE  LAWS  OF TWO THOUSAND TWELVE, AND FURTHER
 PROVIDED, THAT AT A TIME AND IN A MANNER TO BE DETERMINED AND PRESCRIBED
 BY THE NEW YORK STATE GAMING COMMISSION, AT LEAST FIVE PERCENT  OF  SUCH
 AMOUNT  SHALL  BE  DISTRIBUTED  AMONG  THE PARTICIPATING COUNTIES ON THE
 BASIS OF POPULATION, AS DEFINED AS THE TOTAL POPULATION IN EACH  PARTIC-
 IPATING  COUNTY  SHOWN  BY THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS
 COMPLETED AND PUBLISHED AS A FINAL POPULATION COUNT BY THE UNITED STATES
 BUREAU OF THE CENSUS PRECEDING THE COMMENCEMENT OF THE CALENDAR YEAR  IN
 WHICH SUCH DISTRIBUTION IS TO BE MADE.
   5.  A  REGIONAL  OFF-TRACK BETTING CORPORATION THAT CHOOSES TO UTILIZE
 ITS CAPITAL ACQUISITION FUND TO OFFSET EXPENSES RELATED TO SALARIES  AND
 BENEFITS  FOR THE CORPORATION'S EMPLOYEES AND OTHER EXPENSES AS PROVIDED
 IN SUBDIVISION FOUR OF THIS SECTION SHALL DO  SO  BY  PROVIDING  WRITTEN
 A. 4542                             3
 
 NOTIFICATION  TO  THE NEW YORK STATE GAMING COMMISSION, AT LEAST FIFTEEN
 DAYS IN  ADVANCE  OF  ITS  DECISION  TO  UTILIZE  MONIES  FOR  CORPORATE
 PURPOSES.
   § 2. This act shall take effect immediately.