NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6124C
SPONSOR: Pretlow TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to contribution requirements for the capital acquisition fund
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to provide statutory relief for Regional
Off-Track Betting Corporations (OTBs), ensuring that they will be able
to provide payments to the localities and municipalities for which they
were created to help.
SUMMARY OF SPECIFIC PROVISIONS:
This bill would provide that, of the amount from each OTB's contribution
to its capital acquisition fund from its total pari-mutuel wagering
pools on a quarterly basis, up to 75 percent of such amount may be used
by the OTB for any corporate purpose.
Each OTB would be required to submit a financial plan for the use of
such funds to the New York State Gaming Commission for approval by
September 30th of each year. Such plan would include the amount and
specific use of such funds, and any additional information that the New
York State Gaining Commission deems appropriate.
JUSTIFICATION:
As Regional Off-Track Betting Corporations continue to consolidate
services to better serve their constituencies the need for capital
expenditures has been replaced with the need to modernize the consumer
experience, maintain and grow jobs, as well as maximize much needed
revenues for local governments. OTBs realize the importance of maintain-
ing a capital acquisition fund ("CAF") and current law ensures that OTBs
will have capital reserves by virtue of the 1% contribution of total
pari-mutuel wagering pools on a quarterly basis.
This provision would simply redistribute the 1% between retaining a CAF,
and allowing for other corporate purposes, i.e. job retention and
increasing municipal revenues. This provision has no impact on amounts
held in existing OTB CAF accounts.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATION:
To be determined.
EFFECTIVE DATE:
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6124--C
2015-2016 Regular Sessions
IN ASSEMBLY
March 16, 2015
___________
Introduced by M. of A. PRETLOW, McDONALD -- read once and referred to
the Committee on Racing and Wagering -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- recommitted to the Committee on Racing and Wagering in accord-
ance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to contribution requirements for the capital acquisition fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 509-a of the racing, pari-mutuel
2 wagering and breeding law, as added by chapter 681 of the laws of 1989,
3 is amended to read as follows:
4 (1) no contribution shall exceed the amount of one percent of the
5 total pari-mutuel wagering pools for the quarter in which the contrib-
6 ution is made; provided, however, that up to seventy-five percent of
7 such amount may be used by the corporation for any corporate purpose,
8 provided that:
9 (a) such corporation is not utilizing its capital acquisition fund for
10 corporate purposes as provided in section three of part II of chapter
11 fifty-eight of the laws of two thousand twelve; and
12 (b) such corporation shall submit a financial plan for the use of such
13 funds to the commission for approval by September thirtieth of each
14 year, which shall include the amount and specific use of such funds, and
15 any additional information that the commission deems appropriate.
16 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09871-04-6
