STATE OF NEW YORK
________________________________________________________________________
8485
IN SENATE
March 7, 2022
___________
Introduced by Sen. JACKSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Racing, Gaming and Wager-
ing
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-mutu-
el 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. Subdivision f of section 1612 of the tax law, as amended by
2 chapter 174 of the laws of 2013, paragraph 1 as amended by section 2 of
3 part OO of chapter 59 of the laws of 2014 and paragraph 3 as amended by
4 section 2 of part V of chapter 59 of the laws of 2020, is amended to
5 read as follows:
6 f. As consideration for the operation of the video lottery gaming
7 facility at Aqueduct racetrack, the division shall cause the investment
8 in the education system of the state of New York and the racing industry
9 of the following percentages of the vendor fee to be deposited or paid,
10 as follows:
11 1. Six and one-half percent of the total wagered after payout of
12 prizes for the first year of operation of video lottery gaming at Aque-
13 duct racetrack, seven percent of the total wagered after payout of
14 prizes for the second year of operation, and seven and one-half percent
15 of the total wagered after payout of prizes for the third year of opera-
16 tion and thereafter, for the purpose of [enhancing purses at Aqueduct
17 racetrack, Belmont Park racetrack and Saratoga race course. One percent
18 of the gross purse enhancement amount, as required by this subdivision,
19 shall be paid to the gaming commission to be used exclusively to promote
20 and ensure equine health and safety in New York. Any portion of such
21 funding to the gaming commission unused during a fiscal year shall be
22 returned on a pro rata basis in accordance with the amounts originally
23 contributed and shall be used for the purpose of enhancing purses at
24 such tracks] funding the education system of the state of New York,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13560-06-2
S. 8485 2
1 shall be deposited in the state lottery fund for additional lottery
2 grants to eligible school districts, including schools serving students
3 with disabilities and schools with preschool special education programs.
4 [One and one-half percent of the gross purse enhancement amount, as
5 required by this subdivision, shall be paid to an account established
6 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel
7 wagering and breeding law to be used exclusively to provide health
8 insurance for jockeys.]
9 2. [One] Eight and one-half percent of the total wagered after payout
10 of prizes [for the first year of operation of video lottery gaming at
11 Aqueduct racetrack, one and one-quarter percent of the total wagered
12 after payout of prizes for the second year of operation, and one and
13 one-half percent of the total wagered after payout of prizes for the
14 third year of operation and thereafter, for an appropriate breeding fund
15 for the manner of racing conducted at Aqueduct racetrack, Belmont Park
16 racetrack and Saratoga race course] shall be deposited in the state
17 lottery fund for additional lottery grants to eligible school districts,
18 including schools serving students with disabilities and schools with
19 preschool special education programs.
20 3. [Four percent of the total revenue wagered after payout of prizes
21 to be deposited into an account of the franchised corporation estab-
22 lished pursuant to section two hundred six of the racing, pari-mutuel
23 wagering and breeding law to be used for capital expenditures in main-
24 taining and upgrading Aqueduct racetrack, Belmont Park racetrack and
25 Saratoga race course. Capital expenditures may include funding the
26 construction of and initially equipping a state-based equine drug test-
27 ing and research laboratory to be used pursuant to subdivision seven of
28 section nine hundred two of the racing, pari-mutuel wagering and breed-
29 ing law.
30 4. Three percent of the total revenue wagered after payout for prizes
31 to be deposited into an account of the franchised corporation estab-
32 lished pursuant to section two hundred six of the racing, pari-mutuel
33 wagering and breeding law to be used for general thoroughbred racing
34 operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga
35 race course.
36 5.] Paragraphs one[,] and two[, three and four] of this subdivision
37 shall be known collectively as the "[racing] education support
38 payments".
39 § 2. Paragraph 1-b of subdivision b of section 1612 of the tax law, as
40 added by section 2 of part EE of chapter 59 of the laws of 2019, is
41 amended to read as follows:
42 1-b. Notwithstanding any provision of law to the contrary, free play
43 allowance credits authorized by the division pursuant to subdivision i
44 of section sixteen hundred seventeen-a of this article shall not be
45 included in the calculation of the total amount wagered on video lottery
46 games, the total amount wagered after payout of prizes, the vendor fees
47 payable to the operators of video lottery gaming facilities, fees paya-
48 ble to the division's video lottery gaming equipment contractors, [or]
49 racing support payments, or education support payments.
50 § 3. Subdivision f-1 of section 1612 of the tax law, as amended by
51 chapter 175 of the laws of 2013, is amended to read as follows:
52 f-1. As consideration for operation of video lottery gaming facility
53 located in the county of Nassau or Suffolk and operated by a corporation
54 established pursuant to section five hundred two of the racing, pari-mu-
55 tuel wagering and breeding law, the division shall cause the [investment
S. 8485 3
1 in the racing industry of the] following [percentages] percentage of the
2 vendor fee to be deposited or paid as follows:
3 [1. Two and three tenths] Five percent of the total wagered after
4 payout of prizes [for the purpose of enhancing purses at Aqueduct race-
5 track, Belmont Park racetrack and Saratoga race course, provided, howev-
6 er, that any amount that is in excess of the amount necessary to main-
7 tain purse support from video lottery gaming at Aqueduct racetrack,
8 Belmont Park racetrack and Saratoga race course at the same level real-
9 ized in two thousand thirteen, to be adjusted by the consumer price
10 index for all urban consumers, as published annually by the United
11 States department of labor, bureau of labor statistics, shall instead be
12 returned to the commission] shall be deposited in the state lottery fund
13 for additional lottery grants to eligible school districts, including
14 schools serving students with disabilities and schools with preschool
15 special education programs.
16 [2. five tenths percent of the total wagered after payout of prizes
17 for the appropriate breeding fund for the manner of racing at Aqueduct
18 racetrack, Belmont Park racetrack and Saratoga race course, provided,
19 however, that any amount that is in excess of the amount necessary to
20 maintain payments from video lottery gaming at Aqueduct racetrack at the
21 same level realized in two thousand thirteen, to be adjusted by the
22 consumer price index for all urban consumers, as published annually by
23 the United States department of labor, bureau of labor statistics, shall
24 instead be returned to the commission.
25 3. one and three tenths percent of the total revenue wagered after
26 payout of prizes to be deposited into an account of the franchised
27 corporation established pursuant to section two hundred six of the
28 racing, pari-mutuel wagering and breeding law to be used for capital
29 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont
30 Park racetrack and Saratoga race course, provided, however, that any
31 amount that is in excess of the amount necessary to maintain payments
32 for capital expenditures from video lottery gaming at Aqueduct racetrack
33 at the same level realized in two thousand thirteen, to be adjusted by
34 the consumer price index for all urban consumers, as published annually
35 by the United States department of labor, bureau of labor statistics,
36 shall instead be returned to the commission.
37 4. Nine tenths percent of the total revenue wagered after payout for
38 prizes to be deposited into an account of the franchised corporation
39 established pursuant to section two hundred six of the racing, pari-mu-
40 tuel wagering and breeding law to be used for general thoroughbred
41 racing operations at Aqueduct racetrack, Belmont Park racetrack and
42 Saratoga race course, provided, however, that any amount that is in
43 excess of the amount necessary to maintain payments for general
44 thoroughbred racing operations from video lottery gaming at Aqueduct
45 racetrack at the same level realized in two thousand thirteen, to be
46 adjusted by the consumer price index for all urban consumers, as
47 published annually by the United States department of labor, bureau of
48 labor statistics, shall instead be returned to the commission.]
49 § 4. The opening paragraph of paragraph 2 of subdivision b of section
50 1612 of the tax law, as amended by section 2 of part S of chapter 39 of
51 the laws of 2019, is amended to read as follows:
52 As consideration for the operation of a video lottery gaming facility,
53 the division, shall cause the investment [in the racing industry] in
54 those counties that host video lottery gaming facilities, of a portion
55 of the vendor fee received pursuant to paragraph one of this subdivision
56 in the manner set forth in this subdivision. With the exception of
S. 8485 4
1 Aqueduct racetrack, a video lottery gaming facility authorized pursuant
2 to paragraph five of subdivision a of section sixteen hundred seven-
3 teen-a of this article or a facility in the county of Nassau or Suffolk
4 operated by a corporation established pursuant to section five hundred
5 two of the racing, pari-mutuel wagering and breeding law, each such
6 track shall dedicate a portion of its vendor fees, received pursuant to
7 clause (A), (B), (B-1), (B-2), (C), or (D) of subparagraph (ii) of para-
8 graph one of this subdivision, for the purpose of [enhancing purses at
9 such track] funding economic development, job creation, and workforce
10 protections in the counties that host video lottery gaming facilities,
11 in an amount equal to eight and three-quarters percent of the total
12 revenue wagered at the vendor track after pay out for prizes. [One
13 percent of the gross purse enhancement amount, as required by this
14 subdivision, shall be paid to the gaming commission to be used exclu-
15 sively to promote and ensure equine health and safety in New York. Any
16 portion of such funding to the gaming commission unused during a fiscal
17 year shall be returned to the video lottery gaming operators on a pro
18 rata basis in accordance with the amounts originally contributed by each
19 operator and shall be used for the purpose of enhancing purses at such
20 track] Such funds shall be credited to the host county in which each
21 vendor track resides. Such funds shall be utilized by such counties for
22 the purposes of economic development, job creation, and workforce
23 protections. If a vendor track ceases racing operations, such vendor fee
24 shall continue to be paid.
25 [One and one-half percent of the gross purse enhancement amount at a
26 thoroughbred track, as required by this subdivision, shall be paid to an
27 account established pursuant to section two hundred twenty-one-a of the
28 racing, pari-mutuel wagering and breeding law to be used exclusively to
29 provide health insurance for jockeys.] In addition, with the exception
30 of Aqueduct racetrack, a video lottery gaming facility authorized pursu-
31 ant to paragraph five of subdivision a of section sixteen hundred seven-
32 teen-a of this article or a facility in the county of Nassau or Suffolk
33 operated by a corporation established pursuant to section five hundred
34 two of the racing, pari-mutuel wagering and breeding law, one and one-
35 quarter percent of total revenue wagered at the vendor track after pay
36 out for prizes, received pursuant to clause (A), (B), (B-1), (B-2), (C),
37 or (D) of subparagraph (ii) of paragraph one of this subdivision, shall
38 be distributed [to the appropriate breeding fund for the manner of
39 racing conducted by such track] for funding economic development, job
40 creation, and workforce protections in the counties that host video
41 lottery gaming facilities.
42 § 5. Paragraph 3 of subdivision b of section 1612 of the tax law is
43 REPEALED.
44 § 6. Subdivision h of section 1612 of the tax law, as amended by
45 section 3 of part S of chapter 39 of the laws of 2019, is amended to
46 read as follows:
47 h. As consideration for the operation of a video lottery gaming facil-
48 ity located in Orange county, the division shall cause the investment in
49 the [racing industry] education system of the state of New York at the
50 following amount from the vendor fee to be paid as follows:
51 [As amount to the horsemen for purses at a licensed racetrack in
52 Sullivan county in an] An amount equal to eight and three-quarters
53 percent of the total revenue wagered at the video lottery gaming facili-
54 ty, after pay out for prizes to be deposited in the state lottery fund
55 for additional lottery grants to eligible school districts, including
56 schools serving students with disabilities and schools with preschool
S. 8485 5
1 special education programs. [The facility located in Orange county, as
2 defined in paragraph five of subdivision a of section sixteen hundred
3 seventeen-a of this article shall pay to the horsemen at a licensed
4 racetrack at Yonkers racetrack an amount to maintain purses for such
5 horsemen at the same dollar levels realized in two thousand eighteen, to
6 be adjusted by the consumer price index for all urban consumers, as
7 published annually by the United States department of labor bureau of
8 labor statistics.] In addition, one and one-quarter percent of total
9 revenue wagered at the video lottery gaming facility after pay out for
10 prizes, received pursuant to clause (B) of subparagraph (ii) of para-
11 graph one of subdivision b of this section, shall be distributed to the
12 [appropriate breeding] state lottery fund for [the manner of racing
13 conducted by such track] additional lottery grants to eligible school
14 districts, including schools serving students with disabilities and
15 schools with preschool special education programs. In no circumstance
16 shall net proceeds of the lottery, including the proceeds from video
17 lottery gaming, be used for the payment of non-lottery expenses of the
18 gaming commission, administrative or otherwise.
19 § 7. Paragraph 5 of subdivision a of section 1617-a of the tax law, as
20 added by section 4 of part S of chapter 39 of the laws of 2019, is
21 amended to read as follows:
22 (5) At a facility located in Orange county to be operated by the enti-
23 ty otherwise licensed to operate video lottery gaming at Monticello
24 racetrack, provided that: (i) such licensed entity is no longer operat-
25 ing video lottery gaming at Monticello racetrack [and provided that
26 Monticello racetrack is conducting racing operations]; (ii) such facili-
27 ty in Orange county is not sited within a thirty mile radius of the
28 video lottery gaming facility at Yonkers racetrack; and (iii) the
29 licensed entity, its subsidiaries and affiliates, including the entity
30 licensed to operate a commercial gaming facility in Sullivan county, and
31 the entity licensed to operate video lottery gaming at Yonkers racetrack
32 enter into a mitigation agreement, to be approved by the gaming commis-
33 sion, which shall include, but not be limited to, terms that require:
34 (A) the operator of the facility in Orange county to make an annual
35 payment to the entity licensed to operate video lottery gaming or
36 commercial gaming at Yonkers racetrack to account for the effects that
37 siting such facility in Orange county would likely have on the gross
38 gaming revenue of the entity licensed to operate at Yonkers racetrack;
39 (B) employment levels at the affected facilities; and (C) that upon
40 expiration or termination of the agreement, the authority to operate
41 video lottery gaming in Orange county shall cease. Notwithstanding any
42 other provision of this subdivision, at no time shall an entity operat-
43 ing video lottery gaming in Orange county be permitted to apply for or
44 receive a license to operate a commercial gaming facility in that coun-
45 ty.
46 § 8. Paragraph (b) of subdivision 1 of section 1355 of the racing,
47 pari-mutuel wagering and breeding law is REPEALED.
48 § 9. Severability. If any provision or term of this act is, for any
49 reason, declared unconstitutional or invalid or ineffective by any
50 competent jurisdiction, such decision shall not affect the validity of
51 the effectiveness of the remaining portions of this act or any part
52 thereof.
53 § 10. This act shall take effect immediately.
