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A08112 Summary:

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                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 5904                                                  A. 8112
 
                               2013-2014 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                      June 20, 2013
                                       ___________
 
        IN  SENATE -- Introduced by Sen. BONACIC -- (at request of the Governor)
          -- read twice and ordered printed, and when printed to be committed to
          the Committee on Rules
 
        IN ASSEMBLY -- Introduced by M. of A. PRETLOW, GUNTHER -- (at request of
          the Governor) -- read once and referred to the Committee on  Ways  and
          Means
 

        AN  ACT  to amend the racing, pari-mutuel wagering and breeding law, the
          penal law and the tax law, in relation to commercial gaming; to  amend
          a  chapter of the laws of 2013 amending the racing, pari-mutuel wager-
          ing and breeding law and other laws relating to commercial gaming,  as
          proposed  in legislative bill numbers S. 5883 and A. 8101, in relation
          to the effective date of certain provisions thereof; to repeal certain
          provisions of the racing, pari-mutuel wagering and breeding law relat-
          ing to the tribes that have gaming compacts with  the  state;  and  to
          repeal  certain  provisions  of the tax law relating to disposition of
          revenues
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Subdivisions 9 and 15 of section 1300 of the racing, pari-

     2  mutuel wagering and breeding law, as added by section 2 of a chapter  of
     3  the  laws of 2013 amending the racing, pari-mutuel wagering and breeding
     4  law and other laws relating to commercial gaming, as proposed in  legis-
     5  lative  bill numbers S. 5883 and A. 8101, are REPEALED, and subdivisions
     6  10, 11, 12, 13, 14 and 16 are renumbered subdivisions 9, 10, 11, 12,  13
     7  and 14.
     8    § 2. Subdivision 5 of section 1306 of the racing, pari-mutuel wagering
     9  and breeding law, as added by section 2 of a chapter of the laws of 2013
    10  amending  the  racing,  pari-mutuel  wagering and breeding law and other
    11  laws relating to commercial gaming,  as  proposed  in  legislative  bill
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

                                                                   LBD12052-09-3
        S. 5904                             2                            A. 8112
 
     1  numbers  S.5883 and A.8101, is REPEALED, and subdivisions 6, 7, 8, 9, 10
     2  and 11 are renumbered subdivisions 5, 6, 7, 8, 9 and 10.
     3    §  3.  Subdivision  15 of section 225.00 of the penal law, as added by
     4  section 3 of a chapter of the laws of 2013 amending the racing, pari-mu-
     5  tuel wagering and breeding law and other  laws  relating  to  commercial
     6  gaming,  as proposed in legislative bill numbers S. 5883 and A. 8101, is
     7  amended to read as follows:
     8    15. "Casino gaming" means games authorized to be played pursuant to  a
     9  license granted under article thirteen of the racing, pari-mutuel wager-
    10  ing and breeding law or by federally recognized Indian nations or tribes

    11  pursuant  to  a  [valid]  gaming  compact reached in accordance with the
    12  federal Indian Gaming Regulatory Act of 1988, Pub. L. 100-497, 102 Stat.
    13  2467, codified at 25 U.S.C. §§ 2701-21 and 18 U.S.C. §§ 1166-68.
    14    § 4. Subdivision (f) of section 52 of a chapter of the  laws  of  2013
    15  amending  the  racing,  pari-mutuel  wagering and breeding law and other
    16  laws relating to commercial gaming,  as  proposed  in  legislative  bill
    17  numbers  S.  5883 and A. 8101, is amended and a new subdivision (a-1) is
    18  added to read as follows:
    19    (a-1) notwithstanding subdivision (a) of this section, section  1330-a
    20  of  the  racing,  pari-mutuel  wagering  and  breeding  law, as added by
    21  section two of this act, shall take effect immediately;

    22    (f) [section forty] sections forty-three through [forty-eight]  fifty-
    23  one  of  this act shall take effect January 1, 2014; except that the New
    24  York state gaming commission may  accept  and  review  applications  for
    25  licenses  for  account  wagering  and  for  multi-jurisdictional account
    26  wagering providers commencing on October 1, 2013.
    27    § 5. The opening paragraph, the  second,  fourth,  fifth  undesignated
    28  paragraphs  and  the opening paragraph of the 7th undesignated paragraph
    29  of clause (G) of subparagraph (ii) of paragraph 1 of  subdivision  b  of
    30  section  1612  of  the tax law, as amended by section 40 of a chapter of
    31  the laws of 2013 amending the racing, pari-mutuel wagering and  breeding
    32  law  and other laws relating to commercial gaming, as proposed in legis-

    33  lative bill numbers S. 5883 and A. 8101, are amended to read as follows:
    34    notwithstanding clauses (A), (B),  (C),  (D),  (E)  and  (F)  of  this
    35  subparagraph,  when no more than one vendor track located in the town of
    36  Thompson in Sullivan county at the site of the former Concord Resort  at
    37  which a qualified capital investment has been made and no fewer than one
    38  thousand  full-time,  permanent  employees  have  been  newly  hired, is
    39  located in Sullivan county and is within sixty  miles  from  any  gaming
    40  facility  in  a  contiguous  state, then for a period of forty years the
    41  vendor's fee shall equal the total revenue wagered at the  vendor  track
    42  after  payout  of  prizes  pursuant  to  this subdivision reduced by the
    43  greater of (i) twenty-five percent of total  revenue  after  payout  for
    44  prizes  for  "video  lottery games" or (ii) for the first eight years of

    45  operation thirty-eight million dollars, and beginning in the ninth  year
    46  of  operation  such  amount shall increase annually by the lesser of the
    47  increase in the consumer price index or two percent, plus seven  percent
    48  of  total  revenue after payout of prizes. In addition, in the event the
    49  vendor fee is calculated pursuant to subclause (i) of this  clause,  the
    50  vendor's  fee shall be further reduced by 11.11 percent of the amount by
    51  which total revenue after payout for prizes exceeds two hundred  fifteen
    52  million  dollars,  but  in  no  event  shall  such reduction exceed five
    53  million dollars.   [Provided, further, no vendor  is  eligible  for  the
    54  vendor's  fee  described  in  this  clause who operates or invests in or
    55  owns, in whole or in part, another vendor license or is  licensed  as  a

        S. 5904                             3                            A. 8112

     1  vendor  track  that currently receives a vendor fee for the operation of
     2  video lottery gaming pursuant to this article.]
     3    Provided,  however,  that  in  the case of [a resort facility] no more
     4  than one vendor track located in the town of Thompson in Sullivan county
     5  at the site of the  former  Concord  Resort  with  a  qualified  capital
     6  investment,  and  one  thousand full-time, permanent employees if at any
     7  time after three years of  opening  operations  of  the  licensed  video
     8  gaming  facility  or licensed vendor track, the [resort facility] vendor
     9  track experiences an employment shortfall,  then  the  recapture  amount

    10  shall apply, for only such period as the shortfall exists.
    11    For  the  purposes  of  this  section, "full-time, permanent employee"
    12  shall mean an employee who has worked  at  the  video  gaming  facility,
    13  vendor  track  or related and adjacent facilities for a minimum of thir-
    14  ty-five hours per week for not less than four consecutive weeks and  who
    15  is  entitled to receive the usual and customary fringe benefits extended
    16  to other employees with comparable rank and  duties;  or  two  part-time
    17  employees  who have worked at the video gaming facility, vendor track or
    18  related and adjacent facilities for a combined  minimum  of  thirty-five
    19  hours  per  week  for  not  less than four consecutive weeks and who are
    20  entitled to receive the usual and customary fringe benefits extended  to
    21  other employees with comparable rank and duties.

    22    For the purpose of this section "employment goal" shall mean one thou-
    23  sand  five  hundred  full-time  permanent employees after three years of
    24  opening operations of the licensed video  gaming  facility  or  licensed
    25  vendor track.
    26    For  the  purposes  of  this section "recapture amount" shall mean the
    27  difference between the amount of the vendor's fee paid to a vendor track
    28  with a qualified capital investment, and the vendor fee otherwise  paya-
    29  ble  to a vendor track pursuant to clause (F) of this subparagraph, that
    30  is reimbursable by the vendor track to the division for payment into the
    31  state treasury, to the credit of  the  state  lottery  fund  created  by
    32  section  ninety-two-c  of  the  state  finance law, due to an employment
    33  shortfall pursuant to the following schedule only for the period of  the
    34  employment shortfall:

    35    §  6.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
    36  of section 1612 of the tax law, as added by section 40 of a  chapter  of
    37  the  laws of 2013 amending the racing, pari-mutuel wagering and breeding
    38  law and other laws relating to commercial gaming, as proposed in  legis-
    39  lative bill numbers S. 5883 and A. 8101, is REPEALED.
    40    § 7. Clauses (I) and (J) of subparagraph (ii) of paragraph 1 of subdi-
    41  vision  b  of  section  1612 of the tax law, as added by section 40 of a
    42  chapter of the laws of 2013 amending the  racing,  pari-mutuel  wagering
    43  and  breeding  law  and  other  laws  relating  to commercial gaming, as
    44  proposed in legislative bill numbers S. 5883 and A. 8101, are amended to
    45  read as follows:
    46    [(I)] (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)[,]  and

    47  [(G-1)]  (G)  of this subparagraph, the track operator of a vendor track
    48  shall be eligible for a vendor's capital award of up to four percent  of
    49  the  total  revenue  wagered at the vendor track after payout for prizes
    50  pursuant to this chapter, which shall be used  exclusively  for  capital
    51  project  investments to improve the facilities of the vendor track which
    52  promote or encourage increased attendance at the  video  lottery  gaming
    53  facility including, but not limited to hotels, other lodging facilities,
    54  entertainment  facilities,  retail facilities, dining facilities, events
    55  arenas, parking garages and other  improvements  that  enhance  facility
    56  amenities;  provided  that such capital investments shall be approved by
        S. 5904                             4                            A. 8112
 

     1  the division, in consultation with the state racing and wagering  board,
     2  and  that  such vendor track demonstrates that such capital expenditures
     3  will increase patronage at such vendor track's facilities  and  increase
     4  the amount of revenue generated to support state education programs. The
     5  annual  amount of such vendor's capital awards that a vendor track shall
     6  be eligible to receive shall be limited  to  two  million  five  hundred
     7  thousand  dollars,  except for Aqueduct racetrack, for which there shall
     8  be no vendor's capital awards.  Except for tracks having less  than  one
     9  thousand one hundred video gaming machines, each track operator shall be
    10  required  to  co-invest  an  amount  of capital expenditure equal to its
    11  cumulative vendor's capital award. For all tracks, except  for  Aqueduct
    12  racetrack,  the  amount  of  any vendor's capital award that is not used

    13  during any one year period may be carried  over  into  subsequent  years
    14  ending  before  April first, two thousand fourteen. Any amount attribut-
    15  able to a capital expenditure approved prior to April first,  two  thou-
    16  sand  fourteen  and  completed  before April first, two thousand sixteen
    17  shall be eligible to receive the vendor's capital award.  In  the  event
    18  that  a  vendor  track's  capital expenditures, approved by the division
    19  prior to April first, two thousand fourteen and completed prior to April
    20  first, two thousand sixteen, exceed the vendor track's cumulative  capi-
    21  tal  award  during the five year period ending April first, two thousand
    22  fourteen, the vendor shall continue to receive the capital  award  after
    23  April  first, two thousand fourteen until such approved capital expendi-
    24  tures are paid to the vendor track subject to  any  required  co-invest-

    25  ment.  In  no  event  shall  any vendor track that receives a vendor fee
    26  pursuant to clause (F) or (G) of this subparagraph  be  eligible  for  a
    27  vendor's  capital  award  under  this  section. Any operator of a vendor
    28  track which has received a vendor's capital award,  choosing  to  divest
    29  the capital improvement toward which the award was applied, prior to the
    30  full depreciation of the capital improvement in accordance with general-
    31  ly  accepted accounting principles, shall reimburse the state in amounts
    32  equal to the total of any such awards. Any capital  award  not  approved
    33  for  a  capital  expenditure at a video lottery gaming facility by April
    34  first, two thousand fourteen shall be deposited into the  state  lottery
    35  fund for education aid; and
    36    [(J)]  (I)  Notwithstanding any provision of law to the contrary, free

    37  play allowance credits authorized by the division pursuant  to  subdivi-
    38  sion  f of section sixteen hundred seventeen-a of this article shall not
    39  be included in the calculation of the  total  amount  wagered  on  video
    40  lottery  games,  the  total  amount  wagered after payout of prizes, the
    41  vendor fees payable  to  the  operators  of  video  lottery  facilities,
    42  vendor's  capital  awards,  fees payable to the division's video lottery
    43  gaming equipment contractors, or racing support payments.
    44    § 8. Subparagraph (iii) of paragraph 1 of  subdivision  b  of  section
    45  1612  of the tax law, as added by section 40 of a chapter of the laws of
    46  2013 amending the racing, pari-mutuel  wagering  and  breeding  law  and
    47  other  laws  relating  to  commercial gaming, as proposed in legislative
    48  bill numbers S. 5883 and A. 8101, is amended to read as follows:

    49    (iii) less an additional vendor's marketing allowance at a rate of ten
    50  percent for the first one hundred million  dollars  annually  and  eight
    51  percent  thereafter  of  the  total  revenue wagered at the vendor track
    52  after payout for prizes to be used by the vendor track for the marketing
    53  and promotion and associated costs of its  video  lottery  gaming  oper-
    54  ations  and  pari-mutuel  horse  racing  operations, as long as any such
    55  costs associated with pari-mutuel horse racing operations simultaneously
    56  encourage increased attendance at such  vendor's  video  lottery  gaming
        S. 5904                             5                            A. 8112
 
     1  facilities, consistent with the customary manner of marketing comparable
     2  operations in the industry and subject to the overall supervision of the

     3  division;  provided,  however,  that  the  additional vendor's marketing
     4  allowance shall not exceed eight percent in any year for any operator of
     5  a  racetrack  located  in the county of Westchester or Queens; provided,
     6  however, a vendor track that receives a vendor fee  pursuant  to  clause
     7  (G)  of  subparagraph (ii) of this paragraph shall not receive the addi-
     8  tional vendor's marketing allowance provided,  however,  a  vendor  that
     9  receives  a  vendor fee pursuant to clause (G-1) of subparagraph (ii) of
    10  this paragraph shall receive an additional marketing allowance at a rate
    11  of ten percent of the total revenue wagered at the video lottery  gaming
    12  facility  after payout for prizes.  [the division shall ensure the maxi-
    13  mum lottery support for education  while  also  ensuring  the  effective

    14  implementation  of  section  sixteen hundred seventeen-a of this article
    15  through the provision of reasonable reimbursements and  compensation  to
    16  vendor  tracks  for  participation  in  such program. Within twenty days
    17  after any award of lottery prizes, the division shall pay into the state
    18  treasury, to the credit of the state lottery fund, the  balance  of  all
    19  moneys  received  from  the sale of all tickets for the lottery in which
    20  such prizes were awarded remaining after provision for  the  payment  of
    21  prizes  as herein provided. Any revenues derived from the sale of adver-
    22  tising on lottery tickets shall be deposited in the state lottery fund.]
    23    § 9. The opening paragraph of paragraph 2 of subdivision b of  section

    24  1612  of the tax law, as added by section 40 of a chapter of the laws of
    25  2013 amending the racing, pari-mutuel  wagering  and  breeding  law  and
    26  other  laws  relating  to  commercial gaming, as proposed in legislative
    27  bill numbers S. 5883 and A. 8101, is amended to read as follows:
    28    As consideration for the operation of a video lottery gaming facility,
    29  the division, shall cause the investment in the  racing  industry  of  a
    30  portion  of  the  vendor  fee received pursuant to paragraph one of this
    31  subdivision in the manner set forth  in  this  subdivision.    With  the
    32  exception of Aqueduct racetrack or a facility in the county of Nassau or
    33  Suffolk  operated  by a corporation established pursuant to section five
    34  hundred two of the racing, pari-mutuel wagering and breeding law  [or  a
    35  facility  in  the  county of Nassau or Suffolk operated by a corporation

    36  established pursuant to section five hundred two of the racing, pari-mu-
    37  tuel wagering and breeding  law],  each  such  track  shall  dedicate  a
    38  portion  of  its vendor fees, received pursuant to clause (A), (B), (C),
    39  (D), (E), (F), or (G) of subparagraph (ii)  of  paragraph  one  of  this
    40  subdivision,  solely  for the purpose of enhancing purses at such track,
    41  in an amount equal to eight and  three-quarters  percent  of  the  total
    42  revenue  wagered  at  the  vendor  track  after  pay out for prizes. One
    43  percent of such purse enhancement amount shall be  paid  to  the  gaming
    44  commission  to  be  used exclusively to promote and ensure equine health
    45  and safety in New York. Any  portion  of  such  funding  to  the  gaming
    46  commission  unused  during  a fiscal year shall be returned to the video
    47  lottery gaming operators on a pro rata  basis  in  accordance  with  the

    48  amounts  originally  contributed  by each operator and shall be used for
    49  the purpose of enhancing purses at such track.  In  addition,  with  the
    50  exception of Aqueduct racetrack or a facility in the county of Nassau or
    51  Suffolk  operated  by a corporation established pursuant to section five
    52  hundred two of the racing, pari-mutuel wagering and  breeding  law,  one
    53  and  one-quarter  percent  of  total revenue wagered at the vendor track
    54  after pay out for prizes, received pursuant to  clause  (A),  (B),  (C),
    55  (D),  (E),  (F),  or  (G)  of subparagraph (ii) of paragraph one of this
        S. 5904                             6                            A. 8112
 
     1  subdivision, shall be distributed to the appropriate breeding  fund  for
     2  the manner of racing conducted by such track.

     3    §  10.  Subdivision  (f-1) of section 1612 of the tax law, as added by
     4  section 40 of a chapter of the laws of 2013 amending the  racing,  pari-
     5  mutuel  wagering  and breeding law and other laws relating to commercial
     6  gaming, as proposed in legislative bill numbers S. 5883 and A. 8101,  is
     7  amended to read as follows:
     8    [(f-1)]  f-1.  As  consideration for operation of video lottery gaming
     9  facility located in the county of Nassau [of] or Suffolk and operated by
    10  a corporation established pursuant to section five hundred  two  of  the
    11  racing,  pari-mutuel wagering and breeding law, the division shall cause
    12  the investment in the racing industry of the  following  percentages  of
    13  the vendor fee to be deposited or paid as follows:

    14    [(1)]  1.  Two  and  three  tenths  percent of the total wagered after
    15  payout of prizes for the purpose of enhancing purses at  Aqueduct  race-
    16  track, Belmont Park racetrack and Saratoga race course, provided, howev-
    17  er,  that  any amount that is in excess of the amount necessary to main-
    18  tain purse support from video  lottery  gaming  at  Aqueduct  racetrack,
    19  Belmont  Park racetrack and Saratoga race course at the same level real-
    20  ized [in] in two thousand thirteen, to be adjusted by the consumer price
    21  index for all urban consumers,  as  published  annually  by  the  United
    22  States  department  of  labor,  bureau  of  labor statistics, shall [be]
    23  instead be returned to the commission.
    24    [(2)] 2. five tenths percent of the  total  wagered  after  payout  of

    25  prizes  for  the  appropriate  breeding fund for the manner of racing at
    26  Aqueduct racetrack, Belmont Park racetrack  and  Saratoga  race  course,
    27  provided,  however,  that  any  amount  that  is in excess of the amount
    28  necessary to maintain payments from video  lottery  gaming  at  Aqueduct
    29  racetrack  at  the same level realized [in] in two thousand thirteen, to
    30  be adjusted by the consumer price index  for  all  urban  consumers,  as
    31  published  annually  by the United States department of labor, bureau of
    32  labor statistics, shall [be] instead be returned to the commission.
    33    [(3)] 3. one and three tenths percent of  the  total  revenue  wagered
    34  after payout of prizes to be deposited into an account of the franchised
    35  corporation  established  pursuant  to  section  two  hundred six of the

    36  racing, pari-mutuel wagering and breeding law to  be  used  for  capital
    37  expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
    38  Park racetrack and Saratoga race course,  provided,  however,  that  any
    39  amount  that  is  in excess of the amount necessary to maintain payments
    40  for capital expenditures from video lottery gaming at Aqueduct racetrack
    41  at the same level realized [in] in two thousand thirteen, to be adjusted
    42  by the consumer price index for all urban consumers, as published  annu-
    43  ally  by  the United States department of labor, bureau of labor statis-
    44  tics, shall [be] instead be returned to the commission.
    45    [(4)] 4. Nine tenths percent of the total revenue wagered after payout
    46  for prizes to be deposited into an account of the franchised corporation

    47  established pursuant to section two hundred six of the racing,  pari-mu-
    48  tuel  wagering  and  breeding  law  to  be used for general thoroughbred
    49  racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
    50  Saratoga  race  course,  provided,  however,  that any amount that is in
    51  excess  of  the  amount  necessary  to  maintain  payments  for  general
    52  thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
    53  racetrack at the same level realized [in] in two thousand  thirteen,  to
    54  be  adjusted  by  the  consumer  price index for all urban consumers, as
    55  published annually by the United States department of labor,  bureau  of
    56  labor statistics, shall [be] instead be returned to the commission.
        S. 5904                             7                            A. 8112
 

     1    §  11.  The  opening paragraph of the first clause (G) of subparagraph
     2  (ii) of paragraph 1 of subdivision b of section 1612 of the tax law,  as
     3  amended  by  section  42  of  a chapter of the laws of 2013 amending the
     4  racing, pari-mutuel wagering and breeding law and other laws relating to
     5  commercial  gaming,  as proposed in legislative bill numbers S. 5883 and
     6  A. 8101, is amended to read as follows:
     7    notwithstanding clauses (A), (B),  (C),  (D),  (E)  and  (F)  of  this
     8  subparagraph,  when  [a  resort  facility to be operated by other than a
     9  presently licensed video lottery gaming operator or  any  entity  affil-
    10  iated therewith selected by the division following a competitive process
    11  located]  not more than one vendor track located in the town of Thompson

    12  in Sullivan county at the site of the former Concord resort at  which  a
    13  qualified  capital  investment has been made and no fewer than one thou-
    14  sand full-time, permanent employees have been newly hired, is located in
    15  Sullivan county and is within sixty miles from any gaming facility in  a
    16  contiguous  state,  then  for  a  period of forty years the vendor's fee
    17  shall equal the total revenue wagered at the vendor track  after  payout
    18  of  prizes  pursuant  to  this subdivision reduced by the greater of (i)
    19  twenty-five percent of total revenue after payout for prizes for  "video
    20  lottery  games"  or  (ii) for the first eight years of operation thirty-
    21  eight million dollars, and beginning in the ninth year of operation such
    22  amount shall increase annually by the lesser  of  the  increase  in  the
    23  consumer price index or two percent, plus seven percent of total revenue

    24  after  payout  of  prizes.  In  addition, in the event the vendor fee is
    25  calculated pursuant to subclause (i) of this clause,  the  vendor's  fee
    26  shall  be  further reduced by 11.11 percent of the amount by which total
    27  revenue after payout for prizes  exceeds  two  hundred  fifteen  million
    28  dollars,  but  in  no  event  shall  such  reduction exceed five million
    29  dollars.  Provided, further, no vendor is eligible for the vendor's  fee
    30  described in this clause who operates or invests in or owns, in whole or
    31  in  part,  another  vendor license or is licensed as a vendor track that
    32  currently receives a vendor fee  for  the  operation  of  video  lottery
    33  gaming pursuant to this article.
    34    §  12.  The  second  clause (G) of subparagraph (ii) of paragraph 1 of

    35  subdivision b of section 1612 of the tax law, as amended by  section  42
    36  of a chapter of the laws of 2013 amending the racing, pari-mutuel wager-
    37  ing  and  breeding  law and other laws relating to commercial gaming, as
    38  proposed in legislative bill numbers S. 5883 and A. 8101, is REPEALED.
    39    § 13. Clause (G-1) of subparagraph (ii) of paragraph 1 of  subdivision
    40  b  of section 1612 of the tax law, as amended by section 42 of a chapter
    41  of the laws of 2013 amending the racing, pari-mutuel wagering and breed-
    42  ing law and other laws relating to commercial  gaming,  as  proposed  in
    43  legislative bill numbers S. 5883 and A. 8101, is REPEALED.
    44    §  14. Paragraph 2 of subdivision b of section 1612 of the tax law, as
    45  amended by section 42 of a chapter of the  laws  of  2013  amending  the
    46  racing, pari-mutuel wagering and breeding law and other laws relating to

    47  commercial  gaming,  as proposed in legislative bill numbers S. 5883 and
    48  A. 8101, is amended to read as follows:
    49    2. As consideration for the operation of a video lottery gaming facil-
    50  ity, the division, shall cause the investment in the racing industry  of
    51  a  portion  of the vendor fee received pursuant to paragraph one of this
    52  subdivision in the manner set forth  in  this  subdivision.    With  the
    53  exception  of Aqueduct racetrack and a facility located in Nassau county
    54  authorized pursuant to paragraph five of subdivision a  of  section  one
    55  thousand  six hundred seventeen-a of this article, each such track shall
    56  dedicate a portion of its vendor fees, received pursuant to clause  (A),
        S. 5904                             8                            A. 8112
 

     1  (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of
     2  this  subdivision,  solely  for  the purpose of enhancing purses at such
     3  track, in an amount equal to eight and  three-quarters  percent  of  the
     4  total  revenue wagered at the vendor track after pay out for prizes. One
     5  percent of such purse enhancement amount shall be  paid  to  the  gaming
     6  commission  to  be  used exclusively to promote and ensure equine health
     7  and safety in New York. Any  portion  of  such  funding  to  the  gaming
     8  commission  unused  during  a fiscal year shall be returned to the video
     9  lottery gaming operators on a pro rata  basis  in  accordance  with  the
    10  amounts  originally  contributed  by each operator and shall be used for
    11  the purpose of enhancing purses at such track.  In  addition,  with  the
    12  exception  of Aqueduct racetrack and a facility located in Nassau county

    13  authorized pursuant to paragraph five of subdivision a  of  section  one
    14  thousand  six  hundred  seventeen-a of this article, one and one-quarter
    15  percent of total revenue wagered at the vendor track after pay  out  for
    16  prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G)
    17  of  subparagraph  (ii)  of  paragraph  one of this subdivision, shall be
    18  distributed to the appropriate breeding fund for the  manner  of  racing
    19  conducted by such track.
    20    Provided,  further,  that nothing in this paragraph shall prevent each
    21  track from entering into an agreement, not to exceed  five  years,  with
    22  the  organization  authorized  to  represent its horsemen to increase or
    23  decrease the portion of its vendor fee dedicated to enhancing purses  at
    24  such  track  during the years of participation by such track, or to race
    25  fewer dates than required herein.

    26    § 15. Subdivision (f-2) of section 1612 of the tax law,  as  added  by
    27  section  42  of a chapter of the laws of 2013 amending the racing, pari-
    28  mutuel wagering and breeding law and other laws relating  to  commercial
    29  gaming,  as proposed in legislative bill numbers S. 5883 and A. 8101, is
    30  amended to read as follows:
    31    [(f-2)] f-2. As consideration for operation of a video lottery  gaming
    32  facility  located  in  the  county  of  Nassau established pursuant to a
    33  competitive process pursuant to paragraph [(5)] five of subdivision a of
    34  section [six] one thousand [seventeen a] six hundred seventeen-a of this
    35  article, the division shall cause the investment in the racing  industry
    36  of  the  following percentages of the vendor fee to be deposited or paid
    37  as follows:

    38    [(1)] 1. Two and three tenths  percent  of  the  total  wagered  after
    39  payout  of  prizes for the purpose of enhancing purses at Aqueduct race-
    40  track, Belmont Park racetrack and Saratoga race course, provided, howev-
    41  er, that any amount that is in excess of the amount necessary  to  main-
    42  tain  purse  support  from  video  lottery gaming at Aqueduct racetrack,
    43  Belmont Park racetrack and Saratoga race course at the same level  real-
    44  ized [in] in two thousand thirteen, to be adjusted by the consumer price
    45  index  for  all  urban  consumers,  as  published annually by the United
    46  States department of labor,  bureau  of  labor  statistics,  shall  [be]
    47  instead be returned to the commission.
    48    [(2)]  2.  five  tenths  percent  of the total wagered after payout of

    49  prizes for the appropriate breeding fund for the  manner  of  racing  at
    50  Aqueduct  racetrack,  Belmont  Park  racetrack and Saratoga race course,
    51  provided, however, that any amount that  is  in  excess  of  the  amount
    52  necessary  to  maintain  payments  from video lottery gaming at Aqueduct
    53  racetrack at the same level realized [in] in two thousand  thirteen,  to
    54  be  adjusted  by  the  consumer  price index for all urban consumers, as
    55  published annually by the United States department of labor,  bureau  of
    56  labor statistics, shall [be] instead be returned to the commission.
        S. 5904                             9                            A. 8112
 
     1    [(3)]  3.  one  and  three tenths percent of the total revenue wagered
     2  after payout of prizes to be deposited into an account of the franchised

     3  corporation established pursuant to  section  two  hundred  six  of  the
     4  racing,  pari-mutuel  wagering  and  breeding law to be used for capital
     5  expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
     6  Park racetrack and Saratoga race course,  provided,  however,  that  any
     7  amount  that  is  in excess of the amount necessary to maintain payments
     8  for capital expenditures from video lottery gaming at Aqueduct racetrack
     9  at the same level realized [in] in two thousand thirteen, to be adjusted
    10  by the consumer price index for all urban consumers, as published  annu-
    11  ally  by  the United States department of labor, bureau of labor statis-
    12  tics, shall [be] instead be returned to the commission.
    13    [(4)] 4. Nine tenths percent of the total revenue wagered after payout

    14  for prizes to be deposited into an account of the franchised corporation
    15  established pursuant to section two hundred six of the racing,  pari-mu-
    16  tuel  wagering  and  breeding  law  to  be used for general thoroughbred
    17  racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
    18  Saratoga  race  course,  provided,  however,  that any amount that is in
    19  excess  of  the  amount  necessary  to  maintain  payments  for  general
    20  thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
    21  racetrack at the same level realized [in] in two thousand  thirteen,  to
    22  be  adjusted  by  the  consumer  price index for all urban consumers, as
    23  published annually by the United States department of labor,  bureau  of
    24  labor statistics, shall [be] instead be returned to the commission.

    25    §  16. Subdivision 6 of section 1340 of the racing, pari-mutuel wager-
    26  ing and breeding law, as added by section 2 of a chapter of the laws  of
    27  2013  amending  the  racing,  pari-mutuel  wagering and breeding law and
    28  other laws relating to commercial gaming,  as  proposed  in  legislative
    29  bill numbers S. 5883 and A. 8101, is amended to read as follows:
    30    6.  Notwithstanding any provision of law to the contrary, any manufac-
    31  turer or wholesaler licensed under the alcoholic  beverage  control  law
    32  may,  as authorized under the alcoholic beverage control law, sell alco-
    33  holic beverages to a gaming facility holding a retail license or  permit
    34  to sell alcoholic beverages for consumption on the premises issued under
    35  this section, and any gaming facility holding a retail license or permit
    36  to sell alcoholic beverages for consumption on the premises issued under

    37  this  section  may,  as  authorized under the alcoholic beverage control
    38  law, purchase alcoholic beverages  from  a  manufacturer  or  wholesaler
    39  licensed under the alcoholic beverage control law.
    40    §  17.  Paragraph 3 of subdivision a of section 1617-a of the tax law,
    41  as amended by section 32 of a chapter of the laws of 2013  amending  the
    42  racing, pari-mutuel wagering and breeding law and other laws relating to
    43  commercial  gaming,  as proposed in legislative bill numbers S. 5883 and
    44  A. 8101, is amended to read as follows:
    45    (3) at [facilities] one facility per region established, pursuant to a
    46  competitive process to be determined  by  the  state  gaming  commission
    47  within  regions one, two, and five of zone two as established by section
    48  one thousand three hundred ten of the racing, pari-mutuel  wagering  and

    49  breeding law following local governmental consultation and consideration
    50  of  market  factors  including potential revenue impact, anticipated job
    51  development and capital investment to be made. The facilities authorized
    52  pursuant to this paragraph shall be  deemed  vendors  for  all  purposes
    53  under this article, and need not be operated by licensed thoroughbred or
    54  harness racing associations or corporations.
    55    §  18. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision
    56  b of section 1612 of the tax law, as added by section 40 of a chapter of
        S. 5904                            10                            A. 8112
 
     1  the laws of 2013 amending the racing, pari-mutuel wagering and  breeding
     2  law  and other laws relating to commercial gaming, as proposed in legis-
     3  lative bill numbers S. 5883 and A. 8101, is amended to read as follows:

     4    (G-1)  Notwithstanding clause (A) and (B) of this subparagraph, when a
     5  video lottery gaming facility is located in either the county of  Nassau
     6  or  Suffolk  and  is  operated  by a corporation established pursuant to
     7  section five hundred two of the racing, pari-mutuel wagering and  breed-
     8  ing law at a rate of thirty-five percent of the total revenue wagered at
     9  the vendor [track] after payout for prizes pursuant to this chapter;
    10    §  19. Clause (G-2) of subparagraph (ii) of paragraph 1 of subdivision
    11  b of section 1612 of the tax law, as added by section 42 of a chapter of
    12  the laws of 2013 amending the racing, pari-mutuel wagering and  breeding
    13  law  and other laws relating to commercial gaming, as proposed in legis-
    14  lative bill numbers S. 5883 and A. 8101, are amended to read as follows:
    15    (G-2) Notwithstanding clause (A) and (B) of this subparagraph, when  a

    16  video  lottery gaming facility is located in the county of Nassau estab-
    17  lished pursuant to a competitive process  pursuant  to  paragraph  [(5)]
    18  five  of  subdivision a of section [six] one thousand six hundred seven-
    19  teen-a of this article at a rate of thirty-five  percent  of  the  total
    20  revenue  wagered  at the vendor [track] after payout for prizes pursuant
    21  to this chapter;
    22    § 20. Subdivision 1 of section 1311 of the racing, pari-mutuel  wager-
    23  ing  and breeding law, as added by section 2 of a chapter of the laws of
    24  2013 amending the racing, pari-mutuel  wagering  and  breeding  law  and
    25  other  laws  relating  to  commercial gaming, as proposed in legislative
    26  bill numbers S. 5883 and A. 8101, is amended to read as follows:
    27    1. The commission is authorized to award up to  four  gaming  facility

    28  licenses, in regions one, two and five of zone two. The duration of such
    29  initial  license shall be ten years. The term of renewal shall be deter-
    30  mined by the commission.  The commission may award a second license to a
    31  qualified applicant in no more than a single region.  The commission  is
    32  not empowered to award any license in zone one. No gaming facilities are
    33  authorized  under  this  article  for  the city of New York or any other
    34  portion of zone one.
    35    As a condition of licensure, licensees are required to commence gaming
    36  operations no [less] more  than  twenty-four  months  following  license
    37  award.  No  additional  licenses  may  be awarded during the twenty-four
    38  month period, nor for an additional sixty months following  the  end  of
    39  the  twenty-four month period.  Should the state legislatively authorize

    40  additional gaming facility  licenses  within  these  periods,  licensees
    41  shall have the right to recover the license fee paid pursuant to section
    42  one thousand three hundred six of this article.
    43    This  right  shall  be incorporated into the license itself, vest upon
    44  the opening of a gaming facility in zone one or in the  same  region  as
    45  the  licensee  and entitle the holder of such license to bring an action
    46  in the court of claims to recover  the  license  fee  paid  pursuant  to
    47  section  one thousand three hundred fifteen of this article in the event
    48  that any gaming facility license in excess of the number  authorized  by
    49  this  section as of the effective date of this section is awarded within
    50  seven years from the date that the initial gaming  facility  license  is
    51  awarded.    This right to recover any such fee shall be proportionate to

    52  the length of the respective period that is  still  remaining  upon  the
    53  vesting of such right.
    54    Additionally,  the  right to bring an action in the court of claims to
    55  recover the fee paid to the state on the twenty-fourth day of September,
    56  two thousand ten, by the operator of a video lottery gaming facility  in
        S. 5904                            11                            A. 8112
 
     1  a  city  of more than one million shall vest with such operator upon the
     2  opening of any gaming facility licensed by the commission  in  zone  one
     3  within  seven  years  from  the  date  that  the initial gaming facility
     4  license  is  awarded; provided however that the amount recoverable shall
     5  be limited to the pro rata amount of the time remaining until the end of
     6  the seven year exclusivity period, proportionate to the period  of  time

     7  between  the  date  of  opening  of the video lottery facility until the
     8  conclusion of the seven year period.
     9    § 21. This act shall take effect on the same  date  and  in  the  same
    10  manner as a chapter of the laws of 2013 amending the racing, pari-mutuel
    11  wagering  and breeding law and other laws relating to commercial gaming,
    12  as proposed in legislative bill numbers  S.  5883  and  A.  8101,  takes
    13  effect.