S T A T E O F N E W Y O R K ________________________________________________________________________ 7595 2009-2010 Regular Sessions I N A S S E M B L Y April 16, 2009 ___________ Introduced by M. of A. GALEF, PAULIN, PHEFFER, DESTITO, DelMONTE, POWELL, BOYLAND, BENJAMIN, PEOPLES, KOLB, FIELDS, J. RIVERA, P. RIVERA, JAFFEE, SCHROEDER, CALHOUN -- Multi-Sponsored by -- M. of A. ALFANO, BALL, BARRA, CLARK, CROUCH, DIAZ, DINOWITZ, DUPREY, ERRIGO, FITZPATRICK, GIGLIO, LATIMER, MAISEL, MARKEY, MOLINARO, REILLY, SCOZ- ZAFAVA, SWEENEY, THIELE, TOWNS, WALKER -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the lottery game of Quick Draw, and the disposition of lottery revenues THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraphs 1, 2 and 3 of subdivision a of section 1612 of 2 the tax law, paragraph 1 as amended by chapter 336 of the laws of 1999, 3 paragraph 2 as amended by section 1 of part P of chapter 85 of the laws 4 of 2002 and paragraph 3 as amended by section 2 of part D of chapter 383 5 of the laws of 2001, are amended to read as follows: 6 (1) [sixty] FORTY percent of the total amount for which tickets have 7 been sold for a lawful lottery game introduced on or after the effective 8 date of this paragraph, subject to the following provisions: 9 (A) drawings in such game shall be held during no more than thirteen 10 hours each day, no more than eight hours of which shall be consecutive; 11 (B) such game shall be available only on premises occupied by licensed 12 lottery sales agents, subject to the following provisions: 13 (i) if the licensee holds a license issued pursuant to the alcoholic 14 beverage control law to sell alcoholic beverages for consumption on the 15 premises, then not less than twenty-five percent of the gross sales must 16 result from sales of food; 17 (ii) if the licensee does not hold a license issued pursuant to the 18 alcoholic beverage control law to sell alcoholic beverages for consump- 19 tion on the premises, then the premises must have a minimum square 20 footage greater than two thousand five hundred square feet; EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10681-01-9 A. 7595 2 1 (iii) notwithstanding the foregoing provisions, television equipment 2 that automatically displays the results of such drawings may be 3 installed and used without regard to the percentage of food sales or the 4 square footage if such premises are used as: 5 (I) a commercial bowling establishment, or 6 (II) a facility authorized under the racing, pari-mutuel wagering and 7 breeding law to accept pari-mutuel wagers; 8 (C) the rules for the operation of such game shall be as prescribed by 9 regulations promulgated and adopted by the division, provided however, 10 that such rules shall provide that no person under the age of twenty-one 11 may participate in such games on the premises of a licensee who holds a 12 license issued pursuant to the alcoholic beverage control law to sell 13 alcoholic beverages for consumption on the premises; and, provided, 14 further, that such regulations may be revised on an emergency basis not 15 later than ninety days after the enactment of this paragraph in order to 16 conform such regulations to the requirements of this paragraph; or 17 (2) [sixty-five] FORTY percent of the total amount for which tickets 18 have been sold for the "Instant Cash" game in which the participant 19 purchases a preprinted ticket on which dollar amounts or symbols are 20 concealed on the face or the back of such ticket, provided however up to 21 three such games may be offered during the fiscal year, seventy-five 22 percent of the total amount for which tickets have been sold for such 23 three games in which the participant purchases a preprinted ticket on 24 which dollar amounts or symbols are concealed on the face or the back of 25 such ticket; or 26 (3) [fifty] FORTY percent of the total amount for which tickets have 27 been sold for games known as: (A) the "Daily Numbers Game" or "Win 4", 28 discrete games in which the participants select no more than three or 29 four of their own numbers to match with three or four numbers drawn by 30 the division for purposes of determining winners of such games, (B) 31 "Pick 10", offered no more than once daily, in which participants select 32 from a specified field of numbers a subset of ten numbers to match 33 against a subset of numbers to be drawn by the division from such field 34 of numbers for the purpose of determining winners of such game, (C) 35 "Take 5", offered no more than once daily, in which participants select 36 from a specified field of numbers a subset of five numbers to match 37 against a subset of five numbers to be drawn by the division from such 38 field of numbers for purposes of determining winners of such game, and 39 (D) any joint, multi-jurisdiction, and out-of-state lottery; or 40 S 2. The opening paragraph of paragraph 1 of subdivision b of section 41 1612 of the tax law, as amended by chapter 140 of the laws of 2008, is 42 amended to read as follows: 43 Notwithstanding section one hundred twenty-one of the state finance 44 law, on or before the twentieth day of each month, the division shall 45 pay into the state treasury, to the credit of the state lottery fund 46 created by section ninety-two-c of the state finance law, not less than 47 forty-five percent of the total amount for which tickets have been sold 48 for games defined in paragraph four of subdivision a of this section 49 during the preceding month, not less than [thirty-five] FORTY-FIVE 50 percent of the total amount for which tickets have been sold for games 51 defined in paragraph three of subdivision a of this section during the 52 preceding month, not less than [twenty] FORTY-FIVE percent of the total 53 amount for which tickets have been sold for games defined in paragraph 54 two of subdivision a of this section during the preceding month, 55 provided however that for games with a prize payout of seventy-five 56 percent of the total amount for which tickets have been sold, the divi- A. 7595 3 1 sion shall pay not less than ten percent of sales into the state treas- 2 ury and not less than [twenty-five] FORTY-FIVE percent of the total 3 amount for which tickets have been sold for games defined in paragraph 4 one of subdivision a of this section during the preceding month; and the 5 balance of the total revenue after payout for prizes for games known as 6 "video lottery gaming," (i) less ten percent of the total revenue 7 wagered after payout for prizes to be retained by the division for oper- 8 ation, administration, and procurement purposes; (ii) less a vendor's 9 fee the amount of which is to be paid for serving as a lottery agent to 10 the track operator of a vendor track: 11 S 3. This act shall take effect on the first of January next succeed- 12 ing the date upon which it shall have become a law; provided, however, 13 that the amendments to paragraphs 1, 2 and 3 of subdivision a of section 14 1612 of the tax law made by section one of this act shall not affect the 15 repeal of such paragraphs and shall be deemed repealed therewith.