Bill Text: NY A03384 | 2019-2020 | General Assembly | Introduced
Bill Title: Provides for funding for a sound basic education; directs that a percentage of payments under articles five and ten of the racing, pari-mutuel wagering and breeding law made by off-track betting corporations shall be transferred to the state comptroller for deposit in the sound basic education fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to racing and wagering [A03384 Detail]
Download: New_York-2019-A03384-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3384 2019-2020 Regular Sessions IN ASSEMBLY January 29, 2019 ___________ Introduced by M. of A. DICKENS -- read once and referred to the Commit- tee on Racing and Wagering AN ACT to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to funding for a sound basic education The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. The state of New York has an obligation 2 under its constitution to provide its children with a sound basic educa- 3 tion as recently and explicitly expressed in the Court of Appeals deci- 4 sion in Campaign for Fiscal Equity v. State. In order to comply with 5 such holding and constitutional duty, the legislature hereby finds that 6 new and continuing funding streams are necessary to meet such duty. The 7 legislature further finds that the existing and primary funding mech- 8 anism for education in this state, the real property tax, has histor- 9 ically been imposed by local governments and state support for education 10 should and is intended to rectify uneven revenue yields from that source 11 of revenue due to local prevailing market forces. 12 Supplementing the local property tax is necessary to assure that chil- 13 dren residing in areas of high need for educational services that also 14 have a small tax base can receive the same fiscal resources that more 15 fortunate areas of the state utilize to educate our children. Each child 16 is entitled to substantially similar resources. To achieve this end in a 17 manner that will not unnecessarily displace or reduce the support for 18 other vulnerable populations, the legislature hereby finds that licen- 19 sees of the newly created video lottery terminals, the division of the 20 lottery and other such beneficiaries will be receiving a substantial new 21 form of revenue due to recently enacted legislation and can absorb a 22 reduction in income from other sources at this time. The reductions and 23 transfers in this act will provide for a continuing and substantial 24 revenue source for the state to partially fund its obligation to 25 adequately educate every child in this state. 26 § 2. The racing, pari-mutuel wagering and breeding law is amended by 27 adding a new section 912 to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06510-01-9A. 3384 2 1 § 912. Funding for sound basic education. 1. Notwithstanding any law, 2 regulation or rule to the contrary, any payment under articles five and 3 ten of this chapter required to be made by an off-track betting corpo- 4 ration established pursuant to sections five hundred two and six hundred 5 three of this chapter to a regional track, other than fees or compen- 6 sation arising from races conducted by a regional track, shall be made 7 pursuant to the following schedule after such track has been licensed 8 and is conducting video lottery gaming pursuant to section sixteen 9 hundred seventeen-a of the tax law: 10 a. Twenty per centum of the sum required by the provisions of articles 11 five and ten of this chapter shall be retained by the off-track betting 12 corporation making such payment for its necessary and ordinary operating 13 expenses; and 14 b. The remainder shall be transferred to the regional track in accord- 15 ance with the provisions of articles five and ten of this chapter and of 16 the sum received by such track, one-third shall be promptly transferred 17 to the horsemen's purse account to be used exclusively for purses 18 awarded in races conducted by such track and the remaining amount of 19 such sum shall be promptly transferred to the state comptroller for 20 deposit in the sound basic education fund maintained by such comp- 21 troller. 22 2. Any transfer required of a regional track pursuant to subdivision 23 one of this section shall be made within seven business days of receipt 24 of any sum from an off-track betting corporation and any track that 25 fails to do so on three or more occasions within a year of the first 26 such failure, shall constitute presumptive evidence of any element of 27 intent in a crime defined under article one hundred fifty-five of the 28 penal law in any prosecution of such crime against the chief operating 29 officer and/or the chief financial officer of such track. 30 § 3. Paragraph 2 of subdivision c of section 1612 of the tax law, as 31 amended by chapter 174 of the laws of 2013, is amended to read as 32 follows: 33 2. Of the ten percent retained by the division for administrative 34 purposes, any amounts beyond that which are necessary for the operation 35 and administration of this pilot program shall be deposited in the 36 [lottery education account] sound basic education fund maintained by the 37 state comptroller. 38 § 4. Section 1614 of the tax law is amended by adding a new subdivi- 39 sion c to read as follows: 40 c. The director shall provide written notification to the director of 41 the budget, the chairperson of the senate finance committee and the 42 chairperson of the assembly ways and means committee on a quarterly 43 basis of the total amount maintained by the division as unclaimed or 44 abandoned prize money under this section, and set forth the justifica- 45 tion for the retention of any sum by the division in excess of fifty 46 million for any purpose other than the transfer of such excess to the 47 sound basic education fund maintained by the state comptroller on or 48 before the thirtieth day after the commencement of the following fiscal 49 year. Unless such justification for retention by the division is 50 accepted in writing by all three recipients of such notice as provided 51 in this subdivision, transfer of the excess to such fund shall occur no 52 later than the thirtieth day after the commencement of the next new 53 fiscal year. 54 § 5. This act shall take effect on the thirtieth of September next 55 succeeding the date on which it shall have become a law.
