Amd §§1617-a & 1612, Tax L; rpld §1016 sub 1 ¶b sub¶ 5 cl(E), sub¶ 6 cl(F), §1017 sub 2, amd RWB L, generally
 
Relates to the Catskill regional off-track betting corporation including licensing, vendor fees, distribution of funds, collective bargaining, reporting and site approval.
STATE OF NEW YORK
________________________________________________________________________
5496
2019-2020 Regular Sessions
IN ASSEMBLY
February 12, 2019
___________
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 regional off-track betting
corporation; and repealing certain provisions 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:
1 Section 1. Paragraph 1 of subdivision a of section 1617-a of the tax
2 law, as amended by section 1 of part SS of chapter 60 of the laws of
3 2016, is amended to read as follows:
4 (1) Aqueduct, [Monticello,] Yonkers, Finger Lakes, and Vernon Downs
5 racetracks;
6 § 2. Paragraphs 3 and 4 of subdivision a of section 1617-a of the tax
7 law, as added by section 1 of part SS of chapter 60 of the laws of 2016,
8 are amended and a new paragraph 5 is added to read as follows:
9 (3) a maximum of two facilities, which shall be vendors for all
10 purposes under this article, neither to exceed one thousand video
11 lottery gaming devices, established within region three of zone one as
12 defined by section one thousand three hundred ten of the racing, pari-
13 mutuel wagering and breeding law, one each operated by a corporation
14 established pursuant to section five hundred two of the racing, pari-mu-
15 tuel wagering and breeding law in the Suffolk region and the Nassau
16 region to be located within a facility authorized pursuant to sections
17 one thousand eight or one thousand nine of the racing, pari-mutuel
18 wagering and breeding law; [and]
19 (4) Aqueduct racetrack, within the lottery terminal facility, pursuant
20 to an agreement between the corporation established pursuant to section
21 five hundred two of the racing, pari-mutuel wagering and breeding law in
22 the Nassau region and the operator of video lottery gaming at Aqueduct
23 racetrack, when such agreement is approved by the gaming commission and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09501-01-9
A. 5496 2
1 as long as such agreement is in place, and when such agreement is accom-
2 panied by a detailed spending plan for the corporation established
3 pursuant to section five hundred two of the racing, pari-mutuel wagering
4 and breeding law in the Nassau region, which includes a plan for the
5 timely payment of liabilities due to the franchised corporation, and
6 when such video lottery devices are hosted by the operator of video
7 lottery gaming at Aqueduct racetrack on behalf of the corporation estab-
8 lished pursuant to section five hundred two of the racing, pari-mutuel
9 wagering and breeding law in the Nassau region in lieu of the develop-
10 ment of a facility in Nassau county as authorized by paragraph three of
11 this subdivision [a of this section]. Such agreement reached by the
12 parties shall identify the agency principally responsible for funding,
13 approving or undertaking any actions of such agreement. Provided,
14 however, nothing in this paragraph shall infringe upon the rights of the
15 corporation established pursuant to section five hundred two of the
16 racing, pari-mutuel wagering and breeding law in the Nassau region to
17 develop a facility pursuant to paragraph three of this subdivision upon
18 the expiration, termination, or withdrawal of such agreement[.]; and
19 (5) a maximum of three facilities, which shall be vendors for all
20 purposes under this article, with a total of one thousand one hundred
21 ten video lottery gaming devices in the county of Broome, Chemung,
22 Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam or
23 Ulster and to be operated by a corporation established pursuant to
24 section five hundred two of the racing, pari-mutuel wagering and breed-
25 ing law, and located within a facility authorized pursuant to section
26 one thousand eight or one thousand nine of the racing, pari-mutuel
27 wagering and breeding law.
28 § 3. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b
29 of section 1612 of the tax law, as amended by chapter 175 of the laws of
30 2013, is amended to read as follows:
31 (G-1) Notwithstanding [clause] clauses (A) and (B) of this subpara-
32 graph, when a video lottery gaming facility is located in [either] the
33 county of Broome, Chemung, Chenango, Delaware, Orange, Rockland, Dutch-
34 ess, Tompkins, Putnam, Ulster, Nassau or Suffolk and is operated by a
35 corporation established pursuant to section five hundred two of the
36 racing, pari-mutuel wagering and breeding law at a rate of thirty-five
37 percent of the total revenue wagered at the vendor after payout for
38 prizes pursuant to this chapter;
39 § 4. Paragraph 2 of subdivision b of section 1612 of the tax law, as
40 amended by section 1 of part OO of chapter 59 of the laws of 2014, is
41 amended to read as follows:
42 2. As consideration for the operation of a video lottery gaming facil-
43 ity, the division, shall cause the investment in the racing industry of
44 a portion of the vendor fee received pursuant to paragraph one of this
45 subdivision in the manner set forth in this subdivision. With the
46 exception of Aqueduct racetrack or a facility in the county of Nassau or
47 Suffolk operated by a corporation established pursuant to section five
48 hundred two of the racing, pari-mutuel wagering and breeding law, each
49 such track shall dedicate a portion of its vendor fees, received pursu-
50 ant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii)
51 of paragraph one of this subdivision, for the purpose of enhancing purs-
52 es at such track, in an amount equal to eight and three-quarters percent
53 of the total revenue wagered at the vendor track after pay out for
54 prizes. Any video lottery gaming facility in the Catskill region, as
55 defined in section five hundred nineteen of the racing, pari-mutuel
56 wagering and breeding law and to be operated by a corporation estab-
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1 lished pursuant to section five hundred two of the racing, pari-mutuel
2 wagering and breeding law, shall dedicate a portion of its vendor fee
3 for the purpose of enhancing purses at Monticello racetrack in an amount
4 equal to eight and three-quarters percent of the total revenue wagered
5 at the facility after pay out for prizes. One percent of the gross purse
6 enhancement amount, as required by this subdivision, shall be paid to
7 the gaming commission to be used exclusively to promote and ensure
8 equine health and safety in New York. Any portion of such funding to the
9 gaming commission unused during a fiscal year shall be returned to the
10 video lottery gaming operators on a pro rata basis in accordance with
11 the amounts originally contributed by each operator and shall be used
12 for the purpose of enhancing purses at such track. One and one-half
13 percent of the gross purse enhancement amount at a thoroughbred track,
14 as required by this subdivision, shall be paid to an account established
15 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel
16 wagering and breeding law to be used exclusively to provide health
17 insurance for jockeys. In addition, with the exception of Aqueduct race-
18 track or a facility in the county of Nassau or Suffolk operated by a
19 corporation established pursuant to section five hundred two of the
20 racing, pari-mutuel wagering and breeding law, one and one-quarter
21 percent of total revenue wagered at the vendor track after pay out for
22 prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G)
23 of subparagraph (ii) of paragraph one of this subdivision, shall be
24 distributed to the appropriate breeding fund for the manner of racing
25 conducted by such track.
26 Provided, further, that as additional consideration for the operation
27 of video lottery terminal facilities, the Catskill regional off-track
28 betting corporation shall maintain the same number of race dates at
29 Monticello racetrack being conducted at the time it receives a license
30 to conduct harness race meetings at such racetrack.
31 Provided, further, that nothing in this paragraph shall prevent each
32 track from entering into an agreement, not to exceed five years, with
33 the organization authorized to represent its horsemen to increase or
34 decrease the portion of its vendor fee dedicated to enhancing purses at
35 such track during the years of participation by such track, or to race
36 fewer dates than required herein.
37 § 5. Section 1612 of the tax law is amended by adding a new subdivi-
38 sion g to read as follows:
39 g. As consideration for operation of a video lottery gaming facility
40 located in the county of Broome, Chemung, Chenango, Delaware, Orange,
41 Rockland, Dutchess, Tompkins, Putnam, or Ulster, and operated by a
42 corporation established pursuant to section five hundred two of the
43 racing, pari-mutuel wagering and breeding law, the division shall cause
44 the vendor's fee to be distributed as follows after the pay out of
45 racing support payments: (1) twenty percent shall be transferred to the
46 county in which the vendor facility is located; and (2) the remainder
47 shall be used for payment of the costs of the corporation's functions
48 pursuant to section five hundred sixteen of the racing, pari-mutuel
49 wagering and breeding law, and the net revenue remaining after payment
50 of such costs shall be divided among the participating counties listed
51 in this paragraph on the basis of population as defined in paragraph b
52 of subdivision two of section five hundred sixteen of the racing, pari-
53 mutuel wagering and breeding law.
54 § 6. Section 301 of the racing, pari-mutuel wagering and breeding law
55 is amended by adding a new subdivision 6 to read as follows:
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1 6. The board shall have the power to issue licenses to the Catskill
2 regional off-track betting corporation or to a subsidiary of said corpo-
3 ration for the purpose of conducting harness race meetings at Monticello
4 racetrack and to make capital improvements to said track, provided that
5 such corporation meets the terms and conditions for licensure as
6 provided under this article. Notwithstanding the provisions of articles
7 five and five-a of this chapter, said corporation shall be deemed to be
8 a harness racing corporation with respect to pari-mutuel wagering
9 conducted at said track pursuant to this chapter, except that net reven-
10 ues derived from such pari-mutuel wagering shall be distributed among
11 the counties that participate in such corporation on the basis of popu-
12 lation, as defined as the total population in each participating county
13 shown by the latest preceding decennial federal census of the calendar
14 year in which such distribution is to be made.
15 § 7. The opening paragraph of subdivision 1 of section 527 of the
16 racing, pari-mutuel wagering and breeding law, as amended by section 4
17 of part BB of chapter 60 of the laws of 2016, is amended to read as
18 follows:
19 The disposition of the retained commission from pools resulting from
20 regular, multiple or exotic bets, as the case may be, whether placed on
21 races run within a region or outside a region, conducted by racing
22 corporations, harness racing associations or corporations, quarter horse
23 racing associations or corporations or races run outside the state shall
24 be governed by the tables in paragraphs a and b of this subdivision. The
25 rate denominated "state tax" shall represent the rate of a reasonable
26 tax imposed upon the retained commission for the privilege of conducting
27 off-track pari-mutuel betting, which tax is hereby levied and shall be
28 payable in the manner set forth in this section. Each off-track betting
29 corporation shall pay to the gaming commission as a regulatory fee,
30 which fee is hereby levied, six-tenths of one percent of the total daily
31 pools of such corporation. Each corporation shall also pay twenty
32 percent of the breaks derived from bets on harness races and fifty
33 percent of the breaks derived from bets on all other races to the agri-
34 culture and New York State horse breeding and development fund and to
35 the thoroughbred breeding and development fund, the total of such
36 payments to be apportioned fifty percent to each such fund. For the
37 purposes of this section, the New York city, Suffolk, Nassau, and the
38 Catskill regions shall constitute a single region and any thoroughbred
39 track located within the Capital District region shall be deemed to be
40 within such single region. A "regional meeting" shall refer to either
41 harness or thoroughbred meetings, or both, except that a franchised
42 corporation shall not be a regional track for the purpose of receiving
43 distributions from bets on thoroughbred races conducted by a thorough-
44 bred track in the Catskill region conducting a mixed meeting. With the
45 exception of a harness racing association or corporation first licensed
46 to conduct pari-mutuel wagering at a track located in Tioga [or], Sara-
47 toga or Sullivan county after January first, two thousand five, racing
48 corporations first licensed to conduct pari-mutuel racing after January
49 first, nineteen hundred eighty-six or a harness racing association or
50 corporation first licensed to conduct pari-mutuel wagering at a track
51 located in Genesee County after January first, two thousand five, and
52 quarter horse tracks shall not be "regional tracks"; if there is more
53 than one harness track within a region, such tracks shall evenly divide
54 payments made pursuant to the tables in paragraphs a and b of this
55 subdivision when neither track is running. In the event a track elects
56 to reduce its retained percentage from any or all of its pari-mutuel
A. 5496 5
1 pools, the payments to the track holding the race and the regional track
2 required by paragraphs a and b of this subdivision shall be reduced in
3 proportion to such reduction. Nothing in this section shall be construed
4 to authorize the conduct of off-track betting contrary to the provisions
5 of section five hundred twenty-three of this article.
6 § 8. Section 509-a of the racing, pari-mutuel wagering and breeding
7 law, as added by chapter 681 of the laws of 1989, the opening paragraph
8 as amended by chapter 346 of the laws of 1990, is amended to read as
9 follows:
10 § 509-a. Capital acquisition fund. 1. The corporation may create and
11 establish a capital acquisition fund for the purpose of financing the
12 acquisition, construction or equipping of offices, facilities or prem-
13 ises of the corporation. Such capital acquisition fund shall consist of
14 (i) the amounts specified pursuant to subdivision three-a of section
15 five hundred thirty-two of this chapter; and (ii) contributions from the
16 corporation's pari-mutuel wagering pools, subject to the following limi-
17 tations:
18 [(1)] a. no contribution shall exceed the amount of one percent of the
19 total pari-mutuel wagering pools for the quarter in which the contrib-
20 ution is made;
21 [(2)] b. no contribution shall reduce the amount of quarterly net
22 revenues, exclusive of surcharge revenues, to an amount less than fifty
23 percent of such net revenues; and
24 [(3)] c. the balance of the fund shall not exceed the lesser of one
25 percent of total pari-mutuel wagering pools for the previous twelve
26 months or the undepreciated value of the corporation's offices, facili-
27 ties and premises.
28 2. Notwithstanding any other provision of law or regulation to the
29 contrary, funds in the Catskill off-track betting corporation's capital
30 acquisition fund established pursuant to this section shall be available
31 to the Catskill off-track betting corporation for corporate purposes
32 pursuant to this section until the fund has been exhausted.
33 § 9. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
34 and breeding law is amended to read as follow:
35 2. [Ninety-five percent of the balance of such account remaining
36 unclaimed as of the last day of February of such year shall be paid to
37 the state tax commission by March fifteenth. On or before April tenth of
38 each year the balance of such account and any other unclaimed amounts
39 received in the course of conducting off-track betting shall be paid by
40 such corporation to the state tax commission. A penalty of five percent
41 and interest at the rate of one percent per month from the due date to
42 the date of payment of the unclaimed balance due March fifteenth or
43 April tenth, as the case may be, shall be payable in case such balance
44 is not paid when due. Such amounts, interest and penalties when
45 collected by the state tax commission shall be deposited into the gener-
46 al fund of the state treasury.] The balance of such account remaining
47 unclaimed as of April first of such year shall be transferred to the
48 regional corporation's operating account and may be used for any corpo-
49 rate purposes.
50 § 10. Clause (E) of subparagraph 5 of paragraph b of subdivision 1 of
51 section 1016 of the racing, pari-mutuel wagering and breeding law is
52 REPEALED and clause (F) is relettered clause (E).
53 § 11. Clause (F) of subparagraph 6 of paragraph b of subdivision 1 of
54 section 1016 of the racing, pari-mutuel wagering and breeding law is
55 REPEALED and clause (G) is relettered clause (F).
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1 § 12. Subdivision 2 of section 1017 of the racing, pari-mutuel wager-
2 ing and breeding law is REPEALED.
3 § 13. Subdivision 1 of section 519 of the racing, pari-mutuel wagering
4 and breeding law, paragraph e as amended by chapter 260 of the laws of
5 1987, paragraphs f, g and h as amended by chapter 125 of the laws of
6 1997, is amended to read as follows:
7 1. "Region." One or more of the following named regions comprised of
8 the counties indicated:
9 a. Suffolk: Suffolk county;
10 b. Nassau: Nassau county;
11 c. [New York city: the five counties comprising the city of New York;
12 d.] Catskill: Broome, Chemung, Chenango, Delaware, Orange, Rockland,
13 Sullivan, Tioga, Dutchess, Tompkins, Westchester, Putnam and Ulster
14 counties;
15 [e.] d. Capital District: Albany, Clinton, Columbia, Cortland, Essex,
16 Franklin, Fulton, Greene, Hamilton, Herkimer, Madison, Montgomery, Onei-
17 da, Otsego, Rensselaer, Saratoga, Schenectady, Schoharie, St. Lawrence,
18 Warren and Washington counties;
19 [f.] e. Central: Lewis and Onondaga counties;
20 [g.] f. Western: Allegany, Cattaraugus, Cayuga, Chautauqua, Erie,
21 Genesee, Jefferson, Livingston, Monroe, Niagara, Ontario, Orleans, Oswe-
22 go, Schuyler, Seneca, Steuben, Wayne, Wyoming and Yates counties;
23 [h.] g. Notwithstanding the other provisions of this subdivision, when
24 and if the Central regional off-track betting corporation is estab-
25 lished, it shall include, in addition to the counties listed in para-
26 graph [f] e of this subdivision, the following: Cayuga, Chenango, Cort-
27 land, Franklin, Herkimer, Jefferson, Madison, Oneida, Oswego, Otsego and
28 Tompkins counties.
29 § 14. The racing, pari-mutuel wagering and breeding law is amended by
30 adding four new sections 517-a, 517-b, 517-c and 517-d to read as
31 follows:
32 § 517-a. Catskill off-track betting corporation site approval. 1. The
33 purchase or lease of any property to be used in whole or in part as an
34 off-track betting facility by the Catskill off-track betting corporation
35 in the city of New York shall be conditioned on the approval of the
36 mayor of the city of New York; and with respect to a branch office
37 located wholly or partly within a borough of the city, approval shall
38 also be required by such borough president or their designee. The mayor
39 or borough president's failure to act within thirty days of notification
40 in writing of a proposed site shall be deemed to be approval of such
41 site.
42 2. Notwithstanding subdivision one of this section, the purchase or
43 lease of any property to be used in whole or in part as an off-track
44 betting facility by the Catskill off-track betting corporation in the
45 city of New York which includes or is located within a five mile radius
46 of a site that was approved prior to December sixth, two thousand ten
47 shall not require approval of the mayor or borough president.
48 § 517-b. Catskill off-track betting corporation; collective bargain-
49 ing. Notwithstanding any other provisions of law, rule, or regulation to
50 the contrary, to the extent that Catskill off-track betting opens facil-
51 ities within one of the boroughs of the city of New York to engage in
52 off-track betting or the support staff thereof, such corporation shall
53 recognize the collective bargaining representative of the employees of
54 the New York city off-track betting corporation as of December sixth,
55 two thousand ten, and shall abide by agreements negotiated between such
56 representative and Catskill off-track betting corporation. Nothing
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1 contained in this section shall be construed to diminish the rights of
2 employees pursuant to paragraph (e) of subdivision one of section two
3 hundred nine-a of the civil service law.
4 § 517-c. Catskill off-track betting corporation; reporting. On or
5 before December thirty-first, two thousand nineteen, the Catskill off-
6 track betting corporation shall submit to the commission a report
7 setting forth: 1. the corporation's operations and accomplishments to
8 date; 2. the corporation's receipts and expenditures in accordance with
9 categories or classifications established by the corporation for its own
10 operating and capital outlay purposes; 3. the corporation's assets and
11 liabilities at the time of such report, including a schedule of its
12 bonds, notes, or other obligations and the status of reserves, depreci-
13 ations, special, sinking, or other funds; and 4. identities of branch
14 offices being planned or in the process of being constructed or other-
15 wise established and branch offices that have been constructed or estab-
16 lished.
17 § 517-d. Debts of previously established off-track betting corpo-
18 rations. Notwithstanding any other provisions of law, rule, or regu-
19 lation to the contrary, the debts and obligations of the New York city
20 off-track betting corporation shall not transfer by operation of law or
21 otherwise to the Catskill off-track betting corporation.
22 § 15. Subdivisions 3 and 7 of section 532 of the racing, pari-mutuel
23 wagering and breeding law, the opening paragraph of subdivision 3 as
24 amended and subdivision 7 as added by chapter 115 of the laws of 2008,
25 subparagraph (v) of paragraph b of subdivision 3 as added by chapter 286
26 of the laws of 1985 and subparagraph (vi) of paragraph b of subdivision
27 3 as amended by chapter 201 of the laws of 2017, are amended to read as
28 follows:
29 3. The revenues received from any surcharge imposed by subdivision one
30 of this section, plus the breaks, shall be distributed monthly, as
31 follows:
32 a. Fifty per centum shall be retained by the regional corporation and
33 twenty-five per centum to such city, or to the counties and cities enti-
34 tled to receive revenues from the regional corporation pursuant to
35 section five hundred sixteen of this chapter and in the same proportion
36 as provided therein, or to an off-track betting operator; and
37 b. The balance as follows:
38 (i) where the track conducting the race on which the bet was placed is
39 located within a city with a population in excess of one hundred thou-
40 sand, but less than one million, to such city;
41 (ii) where the track conducting the race on which the bet was placed
42 is not located within a city with a population in excess of one hundred
43 thousand, to the county in which such track is located;
44 (iii) where the track conducting the race on which the bet was placed
45 is located partially within a city with a population in excess of one
46 million and partially within a county, [twenty-five per centum of such
47 balance to the city and the remainder] to the county; and
48 (iv) where the track conducting the race on which the bet was placed
49 is located outside the state, in the same manner as described in para-
50 graph a of this subdivision.
51 (v) where the track conducting the race is located in a thoroughbred
52 special betting district and is simulcasting pursuant to section one
53 thousand eight of this chapter outside such special betting district,
54 ninety per centum to the off-track betting operator and ten per centum
55 to the county in which such track is located.
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1 (vi) for the period of September first, two thousand seventeen until
2 August thirty-first, two thousand twenty-two and where the track
3 conducting the race on which the bet was placed is a harness track
4 located in the county of Erie, to such track.
5 7. Notwithstanding any other provision of this section, any payments
6 otherwise payable to a city with a population of one million or more,
7 [pursuant to this section, other than payments] pursuant to subpara-
8 graphs (i) and (iii) of paragraph b of subdivision three of this
9 section, shall be payable to the corporation and shall be available for
10 its corporate purposes, and may be distributed as net revenue pursuant
11 to section five hundred sixteen of this chapter.
12 § 16. This act shall take effect on the thirtieth day after it shall
13 have become a law.