A 3095: Relates to the investment of funds wagered on video lottery gaming for certain horse races.

  
  STATE OF NEW YORK ________________________________________________________________________ 3095 2025-2026 Regular Sessions  IN ASSEMBLY January 23, 2025 ___________ Introduced by M. of A. ROSENTHAL, SIMON, SEAWRIGHT, BORES, REYES, MAMDA- NI, KIM, GONZALEZ-ROJAS, FORREST, KELLES, EPSTEIN, SIMONE -- read once and referred to the Committee on Ways and Means 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-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. 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, paragraph 3 as amended by 4 section 2 of part V of chapter 59 of the laws of 2020 and subparagraph 5 (i) of paragraph 3 as designated and subparagraph (ii) of paragraph 3 as 6 added by section 8 of part X of chapter 59 of the laws of 2023, is 7 amended to read as follows: 8 f. As consideration for the operation of the video lottery gaming 9 facility at Aqueduct racetrack, the division shall cause the investment 10 in the education system of the state of New York and the racing industry 11 of the following percentages of the vendor fee to be deposited or paid, 12 as follows: 13 1. Six and one-half percent of the total wagered after payout of 14 prizes for the first year of operation of video lottery gaming at Aque- 15 duct racetrack, seven percent of the total wagered after payout of 16 prizes for the second year of operation, and seven and one-half percent 17 of the total wagered after payout of prizes for the third year of opera- 18 tion and thereafter, for the purpose of [enhancing purses at Aqueduct 19 racetrack, Belmont Park racetrack and Saratoga race course. One percent 20 of the gross purse enhancement amount, as required by this subdivision, 21 shall be paid to the gaming commission to be used exclusively to promote EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06360-02-5 
 A. 3095 2 1 and ensure equine health and safety in New York. Any portion of such 2 funding to the gaming commission unused during a fiscal year shall be 3 returned on a pro rata basis in accordance with the amounts originally 4 contributed and shall be used for the purpose of enhancing purses at 5 such tracks] funding the education system of the state of New York, 6 shall be deposited in the state lottery fund for additional lottery 7 grants to eligible school districts, including schools serving students 8 with disabilities and schools with preschool special education programs. 9 [One and one-half percent of the gross purse enhancement amount, as 10 required by this subdivision, shall be paid to an account established 11 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel 12 wagering and breeding law to be used exclusively to provide health 13 insurance for jockeys.] 14 2. [One] Eight and one-half percent of the total wagered after payout 15 of prizes [for the first year of operation of video lottery gaming at 16 Aqueduct racetrack, one and one-quarter percent of the total wagered 17 after payout of prizes for the second year of operation, and one and 18 one-half percent of the total wagered after payout of prizes for the 19 third year of operation and thereafter, for an appropriate breeding fund 20 for the manner of racing conducted at Aqueduct racetrack, Belmont Park 21 racetrack and Saratoga race course] shall be deposited in the state 22 lottery fund for additional lottery grants to eligible school districts, 23 including schools serving students with disabilities and schools with 24 preschool special education programs. 25 3. [(i) Four percent of the total revenue wagered after payout of 26 prizes to be deposited into an account of the franchised corporation 27 established pursuant to section two hundred six of the racing, pari-mu- 28 tuel wagering and breeding law to be used for capital expenditures in 29 maintaining and upgrading Aqueduct racetrack, Belmont Park racetrack and 30 Saratoga race course. Capital expenditures may include funding the 31 construction of and initially equipping a state-based equine drug test- 32 ing and research laboratory to be used pursuant to subdivision seven of 33 section nine hundred two of the racing, pari-mutuel wagering and breed- 34 ing law. 35 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event 36 the state provides funds to the franchised corporation for the reno- 37 vation of Belmont Park racetrack, out of the amount payable to the fran- 38 chised corporation for capital expenditures pursuant to subparagraph (i) 39 of this paragraph during any state fiscal year, an amount pursuant to 40 the repayment agreement between the state and the franchised corporation 41 shall instead be deposited into the miscellaneous capital projects fund, 42 New York racing capital improvement fund as required to repay the state 43 for funds provided for the renovation of Belmont Park racetrack. Any 44 amount payable to the franchised corporation in any state fiscal year 45 for capital expenditures pursuant to subparagraph (i) of this paragraph 46 in excess of the amount pursuant to the repayment agreement between the 47 state and the franchised corporation shall be deposited pursuant to 48 subparagraph (i) of this paragraph. Once the state has been fully reim- 49 bursed for the costs related to the renovation of Belmont Park race- 50 track, this subparagraph shall no longer apply and subparagraph (i) of 51 this paragraph shall apply. 52 4. Three percent of the total revenue wagered after payout for prizes 53 to be deposited into an account of the franchised corporation estab- 54 lished pursuant to section two hundred six of the racing, pari-mutuel 55 wagering and breeding law to be used for general thoroughbred racing 
 A. 3095 3 1 operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga 2 race course. 3 5.] Paragraphs one[,] and two[, three and four] of this subdivision 4 shall be known collectively as the "[racing] education support 5 payments". 6 § 2. Paragraph 1-b of subdivision b of section 1612 of the tax law, as 7 added by section 2 of part EE of chapter 59 of the laws of 2019, is 8 amended to read as follows: 9 1-b. Notwithstanding any provision of law to the contrary, free play 10 allowance credits authorized by the division pursuant to subdivision i 11 of section sixteen hundred seventeen-a of this article shall not be 12 included in the calculation of the total amount wagered on video lottery 13 games, the total amount wagered after payout of prizes, the vendor fees 14 payable to the operators of video lottery gaming facilities, fees paya- 15 ble to the division's video lottery gaming equipment contractors, [or] 16 racing support payments, or education support payments. 17 § 3. Subdivision f-1 of section 1612 of the tax law, as amended by 18 chapter 175 of the laws of 2013, subparagraph (i) of paragraph 3 as 19 designated and subparagraph (ii) of paragraph 3 as added by section 9 of 20 part X of chapter 59 of the laws of 2023, is amended to read as follows: 21 f-1. As consideration for operation of video lottery gaming facility 22 located in the county of Nassau or Suffolk and operated by a corporation 23 established pursuant to section five hundred two of the racing, pari-mu- 24 tuel wagering and breeding law, the division shall cause the [investment 25 in the racing industry of the] following [percentages] percentage of the 26 vendor fee to be deposited or paid as [follows: 27 1. Two and three tenths] five percent of the total wagered after 28 payout of prizes [for the purpose of enhancing purses at Aqueduct race- 29 track, Belmont Park racetrack and Saratoga race course, provided, howev- 30 er, that any amount that is in excess of the amount necessary to main- 31 tain purse support from video lottery gaming at Aqueduct racetrack, 32 Belmont Park racetrack and Saratoga race course at the same level real- 33 ized in two thousand thirteen, to be adjusted by the consumer price 34 index for all urban consumers, as published annually by the United 35 States department of labor, bureau of labor statistics, shall instead be 36 returned to the commission] shall be deposited in the state lottery fund 37 for additional lottery grants to eligible school districts, including 38 schools serving students with disabilities and schools with preschool 39 special education programs. 40 [2. five tenths percent of the total wagered after payout of prizes 41 for the appropriate breeding fund for the manner of racing at Aqueduct 42 racetrack, Belmont Park racetrack and Saratoga race course, provided, 43 however, that any amount that is in excess of the amount necessary to 44 maintain payments from video lottery gaming at Aqueduct racetrack at the 45 same level realized in two thousand thirteen, to be adjusted by the 46 consumer price index for all urban consumers, as published annually by 47 the United States department of labor, bureau of labor statistics, shall 48 instead be returned to the commission. 49 3. (i) one and three tenths percent of the total revenue wagered after 50 payout of prizes to be deposited into an account of the franchised 51 corporation established pursuant to section two hundred six of the 52 racing, pari-mutuel wagering and breeding law to be used for capital 53 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont 54 Park racetrack and Saratoga race course, provided, however, that any 55 amount that is in excess of the amount necessary to maintain payments 56 for capital expenditures from video lottery gaming at Aqueduct racetrack 
 A. 3095 4 1 at the same level realized in two thousand thirteen, to be adjusted by 2 the consumer price index for all urban consumers, as published annually 3 by the United States department of labor, bureau of labor statistics, 4 shall instead be returned to the commission. 5 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event 6 the state provides funds to the franchised corporation for the reno- 7 vation of Belmont Park racetrack, and in the event the amount deposited 8 pursuant to subparagraph (ii) of paragraph three of subdivision f of 9 this section is insufficient to make the required repayment pursuant to 10 such subparagraph during any state fiscal year, an amount payable to the 11 franchised corporation for capital expenditures pursuant to subparagraph 12 (i) of this paragraph shall instead be deposited into the miscellaneous 13 capital projects fund, New York racing capital improvement fund to the 14 extent necessary, when combined with the amount set forth in subpara- 15 graph (ii) of paragraph three of subdivision f of this section, to make 16 any required repayment of funds provided by the state related to the 17 renovation of Belmont Park racetrack during such fiscal year. Any amount 18 payable to the franchised corporation in any state fiscal year for capi- 19 tal expenditures pursuant to subparagraph (i) of this paragraph in 20 excess of the amount pursuant to the repayment agreement between the 21 state and the franchised corporation shall be deposited pursuant to 22 subparagraph (i) of this paragraph. Once the state has been fully reim- 23 bursed for such costs related to the renovation of Belmont Park race- 24 track, this subparagraph shall no longer apply and subparagraph (i) of 25 this paragraph shall apply. 26 4. Nine tenths percent of the total revenue wagered after payout for 27 prizes to be deposited into an account of the franchised corporation 28 established pursuant to section two hundred six of the racing, pari-mu- 29 tuel wagering and breeding law to be used for general thoroughbred 30 racing operations at Aqueduct racetrack, Belmont Park racetrack and 31 Saratoga race course, provided, however, that any amount that is in 32 excess of the amount necessary to maintain payments for general 33 thoroughbred racing operations from video lottery gaming at Aqueduct 34 racetrack at the same level realized in two thousand thirteen, to be 35 adjusted by the consumer price index for all urban consumers, as 36 published annually by the United States department of labor, bureau of 37 labor statistics, shall instead be returned to the commission.] 38 § 4. The opening paragraph of paragraph 2 of subdivision b of section 39 1612 of the tax law, as amended by section 2 of part S of chapter 39 of 40 the laws of 2019, is amended to read as follows: 41 As consideration for the operation of a video lottery gaming facility, 42 the division, shall cause the investment [in the racing industry] in 43 those counties that host video lottery gaming facilities, of a portion 44 of the vendor fee received pursuant to paragraph one of this subdivision 45 in the manner set forth in this subdivision. With the exception of 46 Aqueduct racetrack, a video lottery gaming facility authorized pursuant 47 to paragraph five of subdivision a of section sixteen hundred seven- 48 teen-a of this article or a facility in the county of Nassau or Suffolk 49 operated by a corporation established pursuant to section five hundred 50 two of the racing, pari-mutuel wagering and breeding law, each such 51 track shall dedicate a portion of its vendor fees, received pursuant to 52 clause (A), (B), (B-1), (B-2), (C), or (D) of subparagraph (ii) of para- 53 graph one of this subdivision, for the purpose of [enhancing purses at 54 such track] funding economic development, job creation, and workforce 55 protections in the counties that host video lottery gaming facilities, 56 in an amount equal to eight and three-quarters percent of the total 
 A. 3095 5 1 revenue wagered at the vendor track after pay out for prizes. [One 2 percent of the gross purse enhancement amount, as required by this 3 subdivision, shall be paid to the gaming commission to be used exclu- 4 sively to promote and ensure equine health and safety in New York. Any 5 portion of such funding to the gaming commission unused during a fiscal 6 year shall be returned to the video lottery gaming operators on a pro 7 rata basis in accordance with the amounts originally contributed by each 8 operator and shall be used for the purpose of enhancing purses at such 9 track] Such funds shall be credited to the host county in which each 10 vendor track resides. Such funds shall be utilized by such counties for 11 the purposes of economic development, job creation, and workforce 12 protections. If a vendor track ceases racing operations, such vendor fee 13 shall continue to be paid. 14 [One and one-half percent of the gross purse enhancement amount at a 15 thoroughbred track, as required by this subdivision, shall be paid to an 16 account established pursuant to section two hundred twenty-one-a of the 17 racing, pari-mutuel wagering and breeding law to be used exclusively to 18 provide health insurance for jockeys.] In addition, with the exception 19 of Aqueduct racetrack, a video lottery gaming facility authorized pursu- 20 ant to paragraph five of subdivision a of section sixteen hundred seven- 21 teen-a of this article or a facility in the county of Nassau or Suffolk 22 operated by a corporation established pursuant to section five hundred 23 two of the racing, pari-mutuel wagering and breeding law, one and one- 24 quarter percent of total revenue wagered at the vendor track after pay 25 out for prizes, received pursuant to clause (A), (B), (B-1), (B-2), (C), 26 or (D) of subparagraph (ii) of paragraph one of this subdivision, shall 27 be distributed [to the appropriate breeding fund for the manner of 28 racing conducted by such track] for funding economic development, job 29 creation, and workforce protections in the counties that host video 30 lottery gaming facilities. 31 § 5. Paragraph 3 of subdivision b of section 1612 of the tax law is 32 REPEALED. 33 § 6. Subdivision h of section 1612 of the tax law, as amended by 34 section 3 of part S of chapter 39 of the laws of 2019, is amended to 35 read as follows: 36 h. As consideration for the operation of a video lottery gaming facil- 37 ity located in Orange county, the division shall cause the investment in 38 the [racing industry] education system of the state of New York at the 39 following amount from the vendor fee to be paid as follows: 40 [As amount to the horsemen for purses at a licensed racetrack in 41 Sullivan county in an] An amount equal to eight and three-quarters 42 percent of the total revenue wagered at the video lottery gaming facili- 43 ty, after pay out for prizes to be deposited in the state lottery fund 44 for additional lottery grants to eligible school districts, including 45 schools serving students with disabilities and schools with preschool 46 special education programs. [The facility located in Orange county, as 47 defined in paragraph five of subdivision a of section sixteen hundred 48 seventeen-a of this article shall pay to the horsemen at a licensed 49 racetrack at Yonkers racetrack an amount to maintain purses for such 50 horsemen at the same dollar levels realized in two thousand eighteen, to 51 be adjusted by the consumer price index for all urban consumers, as 52 published annually by the United States department of labor bureau of 53 labor statistics.] In addition, one and one-quarter percent of total 54 revenue wagered at the video lottery gaming facility after pay out for 55 prizes, received pursuant to clause (B) of subparagraph (ii) of para- 56 graph one of subdivision b of this section, shall be distributed to the 
 A. 3095 6 1 [appropriate breeding] state lottery fund for [the manner of racing 2 conducted by such track] additional lottery grants to eligible school 3 districts, including schools serving students with disabilities and 4 schools with preschool special education programs. In no circumstance 5 shall net proceeds of the lottery, including the proceeds from video 6 lottery gaming, be used for the payment of non-lottery expenses of the 7 gaming commission, administrative or otherwise. 8 § 7. Paragraph 5 of subdivision a of section 1617-a of the tax law, as 9 added by section 4 of part S of chapter 39 of the laws of 2019, is 10 amended to read as follows: 11 (5) At a facility located in Orange county to be operated by the enti- 12 ty otherwise licensed to operate video lottery gaming at Monticello 13 racetrack, provided that: (i) such licensed entity is no longer operat- 14 ing video lottery gaming at Monticello racetrack [and provided that 15 Monticello racetrack is conducting racing operations]; (ii) such facili- 16 ty in Orange county is not sited within a thirty mile radius of the 17 video lottery gaming facility at Yonkers racetrack; and (iii) the 18 licensed entity, its subsidiaries and affiliates, including the entity 19 licensed to operate a commercial gaming facility in Sullivan county, and 20 the entity licensed to operate video lottery gaming at Yonkers racetrack 21 enter into a mitigation agreement, to be approved by the gaming commis- 22 sion, which shall include, but not be limited to, terms that require: 23 (A) the operator of the facility in Orange county to make an annual 24 payment to the entity licensed to operate video lottery gaming or 25 commercial gaming at Yonkers racetrack to account for the effects that 26 siting such facility in Orange county would likely have on the gross 27 gaming revenue of the entity licensed to operate at Yonkers racetrack; 28 (B) employment levels at the affected facilities; and (C) that upon 29 expiration or termination of the agreement, the authority to operate 30 video lottery gaming in Orange county shall cease. Notwithstanding any 31 other provision of this subdivision, at no time shall an entity operat- 32 ing video lottery gaming in Orange county be permitted to apply for or 33 receive a license to operate a commercial gaming facility in that coun- 34 ty. 35 § 8. Paragraph (b) of subdivision 1 of section 1355 of the racing, 36 pari-mutuel wagering and breeding law is REPEALED. 37 § 9. Severability. If any provision or term of this act is, for any 38 reason, declared unconstitutional or invalid or ineffective by any 39 competent jurisdiction, such decision shall not affect the validity of 40 the effectiveness of the remaining portions of this act or any part 41 thereof. 42 § 10. This act shall take effect immediately.