STATE OF NEW YORK ________________________________________________________________________ 549 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. CAHILL -- read once and referred to the Committee on Racing and Wagering AN ACT to amend the tax law, in relation to video lottery gaming The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 3 of subdivision a of section 1617-a of the tax 2 law, as added by section 1 of part SS of chapter 60 of the laws of 2016, 3 is amended to read as follows: 4 (3) a maximum of [~~two~~] four facilities, one each in the Suffolk region 5 and the Nassau region, which shall be vendors for all purposes under 6 this article, neither to exceed one thousand video lottery gaming 7 devices, established within region three of zone one as defined by 8 section one thousand three hundred ten of the racing, pari-mutuel wager- 9 ing and breeding law, one each operated by a corporation established 10 pursuant to section five hundred two of the racing, pari-mutuel wagering 11 and breeding law in the Suffolk region and the Nassau region to be 12 located within a facility authorized pursuant to sections one thousand 13 eight or one thousand nine of the racing, pari-mutuel wagering and 14 breeding law, and two facilities in Ulster county, none to exceed five 15 hundred video lottery gaming devices, each operated by a corporation 16 established pursuant to section five hundred two of the racing, pari-mu- 17 tuel wagering and breeding law to be located within a facility author- 18 ized pursuant to sections one thousand eight or one thousand nine of the 19 racing, pari-mutuel wagering and breeding law. In respect to the Ulster 20 county facilities, Catskill off-track betting corporation will be the 21 gaming operator and a local resolution in support of the facility will 22 be required. Additionally, in respect to the Ulster county facilities, 23 the facilities must be destination resort properties with at least one 24 hundred hotel rooms, have significant resort amenities, be currently 25 open and operating, and have been in continuous operation for no less 26 than the past three years; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02987-01-9

A. 549 2 1 § 2. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b 2 of section 1612 of the tax law, as amended by chapter 175 of the laws of 3 2013, is amended to read as follows: 4 (G-1) Notwithstanding [~~clause~~] clauses (A) and (B) of this subpara- 5 graph, when a video lottery gaming facility is located in [~~either~~] the 6 [~~county~~] counties of Nassau [or], Suffolk or Ulster and is operated by a 7 corporation established pursuant to section five hundred two of the 8 racing, pari-mutuel wagering and breeding law at a rate of thirty-five 9 percent of the total revenue wagered at the vendor after payout for 10 prizes pursuant to this chapter; 11 § 3. Paragraph 2 of subdivision b of section 1612 of the tax law, as 12 amended by section 1 of part OO of chapter 59 of the laws of 2014, is 13 amended to read as follows: 14 2. As consideration for the operation of a video lottery gaming facil- 15 ity, the division, shall cause the investment in the racing industry of 16 a portion of the vendor fee received pursuant to paragraph one of this 17 subdivision in the manner set forth in this subdivision. With the 18 exception of Aqueduct racetrack or a facility in the [~~county~~] counties 19 of Nassau [or], Suffolk or Ulster operated by a corporation established 20 pursuant to section five hundred two of the racing, pari-mutuel wagering 21 and breeding law, each such track shall dedicate a portion of its vendor 22 fees, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) 23 of subparagraph (ii) of paragraph one of this subdivision, for the 24 purpose of enhancing purses at such track, in an amount equal to eight 25 and three-quarters percent of the total revenue wagered at the vendor 26 track after pay out for prizes. One percent of the gross purse enhance- 27 ment amount, as required by this subdivision, shall be paid to the 28 gaming commission to be used exclusively to promote and ensure equine 29 health and safety in New York. Any portion of such funding to the gaming 30 commission unused during a fiscal year shall be returned to the video 31 lottery gaming operators on a pro rata basis in accordance with the 32 amounts originally contributed by each operator and shall be used for 33 the purpose of enhancing purses at such track. One and one-half percent 34 of the gross purse enhancement amount at a thoroughbred track, as 35 required by this subdivision, shall be paid to an account established 36 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel 37 wagering and breeding law to be used exclusively to provide health 38 insurance for jockeys. In addition, with the exception of Aqueduct race- 39 track or a facility in the [~~county~~] counties of Nassau [or], Suffolk or 40 Ulster operated by a corporation established pursuant to section five 41 hundred two of the racing, pari-mutuel wagering and breeding law, one 42 and one-quarter percent of total revenue wagered at the vendor track 43 after pay out for prizes, received pursuant to clause (A), (B), (C), 44 (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this 45 subdivision, shall be distributed to the appropriate breeding fund for 46 the manner of racing conducted by such track. 47 § 4. The opening paragraph of subdivision f-1 of section 1612 of the 48 tax law, as amended by chapter 175 of the laws of 2013, is amended to 49 read as follows: 50 As consideration for operation of video lottery gaming facility 51 located in the [~~county~~] counties of Nassau [or], Suffolk or Ulster and 52 operated by a corporation established pursuant to section five hundred 53 two of the racing, pari-mutuel wagering and breeding law, the division 54 shall cause the investment in the racing industry of the following 55 percentages of the vendor fee to be deposited or paid as follows: 56 § 5. This act shall take effect immediately.

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