Authorizes licensing of bowling establishments to offer video gaming if structure allows for segregated areas from patrons under 21 years of age; entitles the operators of bowling establishments to vendor fees where video lottery terminals are located.
TITLE OF BILL: An act to amend the tax law, in relation to video lottery gaming at commercial bowling establishments
PURPOSE: This bill will allow the installation of video lottery terminals in bowling establishments. The installation will be limited to an area where persons under the age of 21 are prohibited from entering.
SUMMARY OF PROVISIONS: Section 1 amends subdivision b of section 1612 of the tax law to entitle operators of a bowling establishment to vendor fees where Video Lottery terminals are located. Section 2 amends section 1617-a of the tax law by adding a new subdivision a-1 which will authorize the operation of video gaming at commercial bowling establishments.
JUSTIFICATION: While bowling is still a relatively popular recreation activity in this country, the proprietor's of New York's bowling establishments face a business crisis. With the high cost of insurance, the escalating prices of utilities, and severe weather conditions, the expenses for a proprietor to operate a facility have skyrocketed. In addition, the recent implementation of the statewide smoking ban has added to the crisis. The enrollment in the bowling leagues has dwindled, which is a direct cause of the smoking ban. Video lottery vendor fees would help the operator make ends meet without having to raise the cost of bowling to the consumer. Enactment of this legislation would not only expand revenues for education across New York State, it is also necessary to create an additional revenue source, given the states current fiscal crisis, for the state and its localities
LEGISLATIVE HISTORY: 2010: A.6918/S.3282 - Held in Investigations & Government Operations
FISCAL IMPLICATION: Enactment of this legislation would create an additional revenue source for the state to help ease the states financial burdens the state is suffering.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 3591 2011-2012 Regular Sessions IN SENATE February 28, 2011 ___________Introduced by Sen. ADAMS -- 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 video lottery gaming at commercial bowling establishments THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by section 1 of part O-1 of chapter 57 of the laws of 2009, is amended to read as follows: (iii) less an additional vendor's marketing allowance at a rate of ten percent for the first one hundred million dollars annually and eight percent thereafter of the total revenue wagered at the vendor track after payout for prizes to be used by the vendor track for the marketing and promotion and associated costs of its video lottery gaming oper- ations and pari-mutuel horse racing operations, as long as any such costs associated with pari-mutuel horse racing operations simultaneously encourage increased attendance at such vendor's video lottery gaming facilities, consistent with the customary manner of marketing comparable operations in the industry and subject to the overall supervision of the division; provided, however, that the additional vendor's marketing allowance shall not exceed eight percent in any year for any operator of a racetrack located in the county of Westchester or Queens; provided, however, a vendor track that receives a vendor fee pursuant to clause (G) of subparagraph (ii) of this paragraph shall not receive the addi- tional vendor's marketing allowance. A COMMERCIAL BOWLING ESTABLISHMENT THAT IS AUTHORIZED BY SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTI- CLE SHALL BE ENTITLED TO A VENDOR FEE OF NOT LESS THAN 20.25 PERCENT IN THE FIRST, SECOND AND THIRD YEARS OF VIDEO LOTTERY GAMING AT SUCH COMMERCIAL BOWLING ESTABLISHMENT, 20.0 PERCENT IN THE FOURTH AND FIFTH YEARS AND 17.5 PERCENT IN ALL SUBSEQUENT YEARS. In establishing theEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05813-01-1 S. 3591 2
vendor fee, the division shall ensure the maximum lottery support for education while also ensuring the effective implementation of section sixteen hundred seventeen-a of this article through the provision of reasonable reimbursements and compensation to vendor tracks for partic- ipation in such program. Within twenty days after any award of lottery prizes, the division shall pay into the state treasury, to the credit of the state lottery fund, the balance of all moneys received from the sale of all tickets for the lottery in which such prizes were awarded remain- ing after provision for the payment of prizes as herein provided. Any revenues derived from the sale of advertising on lottery tickets shall be deposited in the state lottery fund. S 2. Section 1617-a of the tax law is amended by adding a new subdivi- sion a-1 to read as follows: A-1. THE DIVISION OF THE LOTTERY IS HEREBY AUTHORIZED TO LICENSE, PURSUANT TO RULES AND REGULATIONS TO BE PROMULGATED BY THE DIVISION OF THE LOTTERY, THE OPERATION OF VIDEO LOTTERY GAMING AT COMMERCIAL BOWLING ESTABLISHMENTS THAT ARE DULY LICENSED TO SERVE ALCOHOLIC BEVERAGES, HAVE SEGREGATED AREAS THAT PROHIBIT ACCESS TO PERSONS UNDER TWENTY-ONE YEARS OF AGE, AND THAT ARE LOCATED IN A COUNTY OR COUNTIES IN WHICH VIDEO LOTTERY GAMING HAS BEEN AUTHORIZED PURSUANT TO LOCAL LAW. SUCH RULES AND REGULATIONS SHALL PROVIDE, AS A CONDITION OF LICENSURE, THAT SUCH BOWL- ING ESTABLISHMENTS TO BE LICENSED ARE CERTIFIED TO BE IN COMPLIANCE WITH ALL STATE AND LOCAL FIRE AND SAFETY CODES, THAT THE DIVISION IS AFFORDED ADEQUATE SPACE, INFRASTRUCTURE, AND AMENITIES CONSISTENT WITH INDUSTRY STANDARDS FOR SUCH VIDEO LOTTERY GAMING OPERATIONS AND TO ENSURE THAT PERSONS UNDER TWENTY-ONE YEARS OF AGE ARE PROHIBITED ACCESS FROM SUCH AREAS, THAT EMPLOYEES INVOLVED IN THE OPERATION OF VIDEO LOTTERY GAMING PURSUANT TO THIS SECTION ARE LICENSED BY THE RACING AND WAGERING BOARD, AND SUCH OTHER TERMS AND CONDITIONS OF LICENSURE AS THE DIVISION MAY ESTABLISH. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, VIDEO LOTTERY GAMING AT A COMMERCIAL BOWLING ESTABLISHMENT PURSUANT TO THIS SECTION SHALL BE DEEMED AN APPROVED ACTIVITY FOR SUCH BOWLING ESTABLISH- MENT UNDER THE RELEVANT CITY, COUNTY, TOWN, OR VILLAGE LAND USE OR ZONING ORDINANCES, RULES, OR REGULATIONS. NO BOWLING ESTABLISHMENT OPER- ATING VIDEO LOTTERY GAMING PURSUANT TO THIS SECTION MAY HOUSE SUCH GAMING ACTIVITY IN A STRUCTURE DEEMED OR APPROVED BY THE DIVISION AS "TEMPORARY" FOR A DURATION OF LONGER THAN EIGHTEEN MONTHS. S 3. This act shall take effect immediately.