S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3095
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2025
                                ___________
 
 Introduced by M. of A. ROSENTHAL, SIMON, SEAWRIGHT, BORES, REYES, MAMDA-
   NI, KIM, GONZALEZ-ROJAS, FORREST, KELLES, EPSTEIN, SIMONE -- read once
   and referred to the Committee on Ways and Means
 
 AN  ACT  to  amend  the  tax law, in relation to the investment of funds
   wagered on video lottery gaming for certain  horse  races;  to  repeal
   certain  provisions  of  the  tax  law relating thereto; and to repeal
   paragraph (b) of subdivision 1 of section 1355 of the racing, pari-mu-
   tuel wagering and breeding law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision f of section 1612 of the tax law, as amended by
 chapter  174 of the laws of 2013, paragraph 1 as amended by section 2 of
 part OO of chapter 59 of the laws of 2014, paragraph  3  as  amended  by
 section  2  of part V of chapter 59 of the laws of 2020 and subparagraph
 (i) of paragraph 3 as designated and subparagraph (ii) of paragraph 3 as
 added by section 8 of part X of chapter 59  of  the  laws  of  2023,  is
 amended to read as follows:
   f.  As  consideration  for  the  operation of the video lottery gaming
 facility at Aqueduct racetrack, the division shall cause the  investment
 in THE EDUCATION SYSTEM OF THE STATE OF NEW YORK AND the racing industry
 of  the following percentages of the vendor fee to be deposited or paid,
 as follows:
   1. Six and one-half percent of  the  total  wagered  after  payout  of
 prizes  for the first year of operation of video lottery gaming at Aque-
 duct racetrack, seven percent of  the  total  wagered  after  payout  of
 prizes  for the second year of operation, and seven and one-half percent
 of the total wagered after payout of prizes for the third year of opera-
 tion and thereafter, for the purpose of [enhancing  purses  at  Aqueduct
 racetrack,  Belmont Park racetrack and Saratoga race course. One percent
 of the gross purse enhancement amount, as required by this  subdivision,
 shall be paid to the gaming commission to be used exclusively to promote

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06360-02-5
              

 A. 3095                             2

 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  on  a pro rata basis in accordance with the amounts originally
 contributed  and  shall  be  used for the purpose of enhancing purses at
 such tracks] FUNDING THE EDUCATION SYSTEM OF  THE  STATE  OF  NEW  YORK,
 SHALL  BE  DEPOSITED  IN  THE  STATE LOTTERY FUND FOR ADDITIONAL LOTTERY
 GRANTS TO ELIGIBLE SCHOOL DISTRICTS, INCLUDING SCHOOLS SERVING  STUDENTS
 WITH DISABILITIES AND SCHOOLS WITH PRESCHOOL SPECIAL EDUCATION PROGRAMS.
 [One  and  one-half  percent  of  the gross purse enhancement amount, 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.]
   2.  [One] EIGHT AND ONE-HALF percent of the total wagered after payout
 of prizes [for the first year of operation of video  lottery  gaming  at
 Aqueduct  racetrack,  one  and  one-quarter percent of the total wagered
 after payout of prizes for the second year of  operation,  and  one  and
 one-half  percent  of  the  total wagered after payout of prizes for the
 third year of operation and thereafter, for an appropriate breeding fund
 for the manner of racing conducted at Aqueduct racetrack,  Belmont  Park
 racetrack  and  Saratoga  race  course]  SHALL BE DEPOSITED IN THE STATE
 LOTTERY FUND FOR ADDITIONAL LOTTERY GRANTS TO ELIGIBLE SCHOOL DISTRICTS,
 INCLUDING SCHOOLS SERVING STUDENTS WITH DISABILITIES  AND  SCHOOLS  WITH
 PRESCHOOL SPECIAL EDUCATION PROGRAMS.
   3.  [(i)  Four  percent  of  the total revenue wagered after payout of
 prizes to be deposited into an account  of  the  franchised  corporation
 established  pursuant to section two hundred six of the racing, pari-mu-
 tuel wagering and breeding law to be used for  capital  expenditures  in
 maintaining and upgrading Aqueduct racetrack, Belmont Park racetrack and
 Saratoga  race  course.  Capital  expenditures  may  include funding the
 construction of and initially equipping a state-based equine drug  test-
 ing  and research laboratory to be used pursuant to subdivision seven of
 section nine hundred two of the racing, pari-mutuel wagering and  breed-
 ing law.
   (ii)  Notwithstanding subparagraph (i) of this paragraph, in the event
 the state provides funds to the franchised  corporation  for  the  reno-
 vation of Belmont Park racetrack, out of the amount payable to the fran-
 chised corporation for capital expenditures pursuant to subparagraph (i)
 of  this  paragraph  during any state fiscal year, an amount pursuant to
 the repayment agreement between the state and the franchised corporation
 shall instead be deposited into the miscellaneous capital projects fund,
 New York racing capital improvement fund as required to repay the  state
 for  funds  provided  for  the renovation of Belmont Park racetrack. Any
 amount payable to the franchised corporation in any  state  fiscal  year
 for  capital expenditures pursuant to subparagraph (i) of this paragraph
 in excess of the amount pursuant to the repayment agreement between  the
 state  and  the  franchised  corporation  shall be deposited pursuant to
 subparagraph (i) of this paragraph. Once the state has been fully  reim-
 bursed  for  the  costs  related to the renovation of Belmont Park race-
 track, this subparagraph shall no longer apply and subparagraph  (i)  of
 this paragraph shall apply.
   4.  Three percent of the total revenue wagered after payout for prizes
 to be deposited into an account of  the  franchised  corporation  estab-
 lished  pursuant  to  section two hundred six of the racing, pari-mutuel
 wagering and breeding law to be used  for  general  thoroughbred  racing
 A. 3095                             3

 operations  at  Aqueduct  racetrack, Belmont Park racetrack and Saratoga
 race course.
   5.]  Paragraphs  one[,]  AND two[, three and four] of this subdivision
 shall  be  known  collectively  as  the  "[racing]   EDUCATION   support
 payments".
   § 2. Paragraph 1-b of subdivision b of section 1612 of the tax law, as
 added  by  section  2  of  part EE of chapter 59 of the laws of 2019, is
 amended to read as follows:
   1-b. Notwithstanding any provision of law to the contrary,  free  play
 allowance  credits  authorized by the division pursuant to subdivision i
 of section sixteen hundred seventeen-a of  this  article  shall  not  be
 included in the calculation of the total amount wagered on video lottery
 games,  the total amount wagered after payout of prizes, the vendor fees
 payable to the operators of video lottery gaming facilities, fees  paya-
 ble  to  the division's video lottery gaming equipment contractors, [or]
 racing support payments, OR EDUCATION SUPPORT PAYMENTS.
   § 3. Subdivision f-1 of section 1612 of the tax  law,  as  amended  by
 chapter  175  of  the  laws  of 2013, subparagraph (i) of paragraph 3 as
 designated and subparagraph (ii) of paragraph 3 as added by section 9 of
 part X of chapter 59 of the laws of 2023, is amended to read as follows:
   f-1. As consideration for operation of video lottery  gaming  facility
 located in the county of Nassau or Suffolk and operated by a corporation
 established pursuant to section five hundred two of the racing, pari-mu-
 tuel wagering and breeding law, the division shall cause the [investment
 in the racing industry of the] following [percentages] PERCENTAGE of the
 vendor fee to be deposited or paid as [follows:
   1.  Two  and  three  tenths]  FIVE  percent of the total wagered after
 payout of prizes [for the purpose of enhancing purses at Aqueduct  race-
 track, Belmont Park racetrack and Saratoga race course, provided, howev-
 er,  that  any amount that is in excess of the amount necessary to main-
 tain purse support from video  lottery  gaming  at  Aqueduct  racetrack,
 Belmont  Park racetrack and Saratoga race course at the same level real-
 ized in two thousand thirteen, to be  adjusted  by  the  consumer  price
 index  for  all  urban  consumers,  as  published annually by the United
 States department of labor, bureau of labor statistics, shall instead be
 returned to the commission] SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
 FOR ADDITIONAL LOTTERY GRANTS TO ELIGIBLE  SCHOOL  DISTRICTS,  INCLUDING
 SCHOOLS  SERVING  STUDENTS  WITH DISABILITIES AND SCHOOLS WITH PRESCHOOL
 SPECIAL EDUCATION PROGRAMS.
   [2. five tenths percent of the total wagered after  payout  of  prizes
 for  the  appropriate breeding fund for the manner of racing at Aqueduct
 racetrack, Belmont Park racetrack and Saratoga  race  course,  provided,
 however,  that  any  amount that is in excess of the amount necessary to
 maintain payments from video lottery gaming at Aqueduct racetrack at the
 same level realized in two thousand thirteen,  to  be  adjusted  by  the
 consumer  price  index for all urban consumers, as published annually by
 the United States department of labor, bureau of labor statistics, shall
 instead be returned to the commission.
   3. (i) one and three tenths percent of the total revenue wagered after
 payout of prizes to be deposited  into  an  account  of  the  franchised
 corporation  established  pursuant  to  section  two  hundred six of the
 racing, pari-mutuel wagering and breeding law to  be  used  for  capital
 expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
 Park racetrack and Saratoga race course,  provided,  however,  that  any
 amount  that  is  in excess of the amount necessary to maintain payments
 for capital expenditures from video lottery gaming at Aqueduct racetrack
 A. 3095                             4

 at the same level realized in two thousand thirteen, to be  adjusted  by
 the  consumer price index for all urban consumers, as published annually
 by the United States department of labor, bureau  of  labor  statistics,
 shall instead be returned to the commission.
   (ii)  Notwithstanding subparagraph (i) of this paragraph, in the event
 the state provides funds to the franchised  corporation  for  the  reno-
 vation  of Belmont Park racetrack, and in the event the amount deposited
 pursuant to subparagraph (ii) of paragraph three  of  subdivision  f  of
 this  section is insufficient to make the required repayment pursuant to
 such subparagraph during any state fiscal year, an amount payable to the
 franchised corporation for capital expenditures pursuant to subparagraph
 (i) of this paragraph shall instead be deposited into the  miscellaneous
 capital  projects  fund, New York racing capital improvement fund to the
 extent necessary, when combined with the amount set  forth  in  subpara-
 graph  (ii) of paragraph three of subdivision f of this section, to make
 any required repayment of funds provided by the  state  related  to  the
 renovation of Belmont Park racetrack during such fiscal year. Any amount
 payable to the franchised corporation in any state fiscal year for capi-
 tal  expenditures  pursuant  to  subparagraph  (i)  of this paragraph in
 excess of the amount pursuant to the  repayment  agreement  between  the
 state  and  the  franchised  corporation  shall be deposited pursuant to
 subparagraph (i) of this paragraph. Once the state has been fully  reim-
 bursed  for  such  costs related to the renovation of Belmont Park race-
 track, this subparagraph shall no longer apply and subparagraph  (i)  of
 this paragraph shall apply.
   4.  Nine  tenths percent of the total revenue wagered after payout for
 prizes to be deposited into an account  of  the  franchised  corporation
 established  pursuant to section two hundred six of the racing, pari-mu-
 tuel wagering and breeding law  to  be  used  for  general  thoroughbred
 racing  operations  at  Aqueduct  racetrack,  Belmont Park racetrack and
 Saratoga race course, provided, however, that  any  amount  that  is  in
 excess  of  the  amount  necessary  to  maintain  payments  for  general
 thoroughbred racing operations from video  lottery  gaming  at  Aqueduct
 racetrack  at  the  same  level realized in two thousand thirteen, to be
 adjusted by the  consumer  price  index  for  all  urban  consumers,  as
 published  annually  by the United States department of labor, bureau of
 labor statistics, shall instead be returned to the commission.]
   § 4. The opening paragraph of 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:
   As consideration for the operation of a video lottery gaming facility,
 the division, shall cause the investment [in  the  racing  industry]  IN
 THOSE  COUNTIES  THAT HOST VIDEO LOTTERY GAMING FACILITIES, 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 authorized pursuant
 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, 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 para-
 graph  one  of this subdivision, for the purpose of [enhancing purses at
 such track] FUNDING ECONOMIC DEVELOPMENT, JOB  CREATION,  AND  WORKFORCE
 PROTECTIONS  IN  THE COUNTIES THAT HOST VIDEO LOTTERY GAMING FACILITIES,
 in an amount equal to eight and  three-quarters  percent  of  the  total
 A. 3095                             5
 
 revenue  wagered  at  the  vendor  track  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
 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]  SUCH  FUNDS  SHALL  BE CREDITED TO THE HOST COUNTY IN WHICH EACH
 VENDOR TRACK RESIDES. SUCH FUNDS SHALL BE UTILIZED BY SUCH COUNTIES  FOR
 THE  PURPOSES  OF  ECONOMIC  DEVELOPMENT,  JOB  CREATION,  AND WORKFORCE
 PROTECTIONS. IF A VENDOR TRACK CEASES RACING OPERATIONS, SUCH VENDOR FEE
 SHALL CONTINUE TO BE PAID.
   [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] FOR FUNDING  ECONOMIC  DEVELOPMENT,  JOB
 CREATION,  AND  WORKFORCE  PROTECTIONS  IN  THE COUNTIES THAT HOST VIDEO
 LOTTERY GAMING FACILITIES.
   § 5. Paragraph 3 of subdivision b of section 1612 of the  tax  law  is
 REPEALED.
   §  6.  Subdivision  h  of  section  1612 of the tax law, as amended by
 section 3 of part S of chapter 39 of the laws of  2019,  is  amended  to
 read as follows:
   h. As consideration for the operation of a video lottery gaming facil-
 ity located in Orange county, the division shall cause the investment in
 the  [racing  industry] EDUCATION SYSTEM OF THE STATE OF NEW YORK at the
 following amount from the vendor fee to be paid as follows:
   [As amount to the horsemen for  purses  at  a  licensed  racetrack  in
 Sullivan  county  in  an]  AN  amount  equal to eight and three-quarters
 percent of the total revenue wagered at the video lottery gaming facili-
 ty, after pay out for prizes TO BE DEPOSITED IN THE STATE  LOTTERY  FUND
 FOR  ADDITIONAL  LOTTERY  GRANTS TO ELIGIBLE SCHOOL DISTRICTS, INCLUDING
 SCHOOLS SERVING STUDENTS WITH DISABILITIES AND  SCHOOLS  WITH  PRESCHOOL
 SPECIAL  EDUCATION  PROGRAMS. [The facility located in Orange county, as
 defined in paragraph five of subdivision a of  section  sixteen  hundred
 seventeen-a  of  this  article  shall  pay to the horsemen at a licensed
 racetrack at Yonkers racetrack an amount to  maintain  purses  for  such
 horsemen at the same dollar levels realized in two thousand eighteen, to
 be  adjusted  by  the  consumer  price index for all urban consumers, as
 published annually by the United States department of  labor  bureau  of
 labor  statistics.]  In  addition,  one and one-quarter percent of total
 revenue wagered at the video lottery gaming facility after pay  out  for
 prizes,  received  pursuant  to clause (B) of subparagraph (ii) of para-
 graph one of subdivision b of this section, shall be distributed to  the
 A. 3095                             6
 
 [appropriate  breeding]  STATE  LOTTERY  fund  for [the manner of racing
 conducted by such track] ADDITIONAL LOTTERY GRANTS  TO  ELIGIBLE  SCHOOL
 DISTRICTS,  INCLUDING  SCHOOLS  SERVING  STUDENTS  WITH DISABILITIES AND
 SCHOOLS  WITH  PRESCHOOL  SPECIAL EDUCATION PROGRAMS. In no circumstance
 shall net proceeds of the lottery, including  the  proceeds  from  video
 lottery  gaming,  be used for the payment of non-lottery expenses of the
 gaming commission, administrative or otherwise.
   § 7. Paragraph 5 of subdivision a of section 1617-a of the tax law, as
 added by  section 4 of part S of chapter 39 of  the  laws  of  2019,  is
 amended to read as follows:
   (5) At a facility located in Orange county to be operated by the enti-
 ty  otherwise  licensed  to  operate  video lottery gaming at Monticello
 racetrack, provided that: (i) such licensed entity is no longer  operat-
 ing  video  lottery  gaming  at  Monticello racetrack [and provided that
 Monticello racetrack is conducting racing operations]; (ii) such facili-
 ty in Orange county is not sited within a  thirty  mile  radius  of  the
 video  lottery  gaming  facility  at  Yonkers  racetrack;  and (iii) the
 licensed entity, its subsidiaries and affiliates, including  the  entity
 licensed to operate a commercial gaming facility in Sullivan county, and
 the entity licensed to operate video lottery gaming at Yonkers racetrack
 enter  into a mitigation agreement, to be approved by the gaming commis-
 sion, which shall include, but not be limited to,  terms  that  require:
 (A)  the  operator  of  the  facility in Orange county to make an annual
 payment to the entity  licensed  to  operate  video  lottery  gaming  or
 commercial  gaming  at Yonkers racetrack to account for the effects that
 siting such facility in Orange county would likely  have  on  the  gross
 gaming  revenue  of the entity licensed to operate at Yonkers racetrack;
 (B) employment levels at the affected  facilities;  and  (C)  that  upon
 expiration  or  termination  of  the agreement, the authority to operate
 video lottery gaming in Orange county shall cease.  Notwithstanding  any
 other  provision of this subdivision, at no time shall an entity operat-
 ing video lottery gaming in Orange county be permitted to apply  for  or
 receive  a license to operate a commercial gaming facility in that coun-
 ty.
   § 8. Paragraph (b) of subdivision 1 of section  1355  of  the  racing,
 pari-mutuel wagering and breeding law is REPEALED.
   §  9. Severability.   If any provision or term of this act is, for any
 reason, declared unconstitutional  or  invalid  or  ineffective  by  any
 competent  jurisdiction,  such decision shall not affect the validity of
 the effectiveness of the remaining portions of  this  act  or  any  part
 thereof.
   § 10. This act shall take effect immediately.