THE STATE OF NEW YORK BILL TEXT 2001 NY A.B NEW YORK 224TH ANNUAL LEGISLATIVE SESSION ASSEMBLY BILL 9459

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1 THE STATE OF NEW YORK BILL TEXT 2001 NY A.B NEW YORK 224TH ANNUAL LEGISLATIVE SESSION ASSEMBLY BILL 9459 STATE OF NEW YORK S A REGULAR SESSIONS SENATE - ASSEMBLY OCTOBER 24, 2001 IN SENATE -- INTRODUCED BY COMMITTEE ON RULES -- (AT REQUEST OF THE GOVERNOR) -- READ TWICE AND ORDERED PRINTED, AND WHEN PRINTED TO BE COMMITTED TO THE COMMITTEE ON RULES IN ASSEMBLY -- INTRODUCED BY COMMITTEE ON RULES -- (AT REQUEST OF THE GOVERNOR) -- READ ONCE AND REFERRED TO THE COMMITTEE ON WAYS AND MEANS VERSION: Introduced BILL TRACKING REPORT: 2001 Bill Tracking NY A.B VERSION-DATE: October 24, Bill Text NY A.B SYNOPSIS: AN ACT directing the New York power authority to provide low-cost electricity to businesses dislocated as a result of the destruction of the World Trade Center (Part A); to amend the executive law, the state finance law, the penal law and the general municipal law, in relation to certain gaming (Part B); to amend the tax law, in relation to authorizing the division of the lottery to conduct a pilot program involving the operation of video lottery terminals at certain racetracks (Part C); to amend the tax law, in relation to joint, multijurisdiction, and out-of-state lottery in cooperation with a government authorized lottery of one or more jurisdictions and to repeal certain provisions of the tax law relating thereto (Part D); to amend the tax law, in relation to providing a credit under section 189 thereof for a tax paid to another jurisdiction (Part E); to amend the education law, the general city law, the local finance law, the public authorities law and chapter 149 of the laws of 2001, relating to implementing certain provisions of law which impact upon the expenditure of certain appropriations made by the chapter of the laws of 2001 which enacts the education, labor and family assistance budget, in relation to apportionments payable to certain school districts of the state of New York and New York city schools generally, grants for teacher support, bilingual education grants and authorizing additional grants for teachers of tomorrow teacher recruitment and retention program and to repeal section 26 of Part B of chapter 149 of the laws of 2001, relating to funds appropriated for general support for public schools (Part F); to amend the public authorities law, in relation to permitting the issuance of qualified zone academy bonds (Part G); in relation to increasing certain Medicaid per diem rates of reimbursement for inpatient psychiatric services to certain general hospitals (Part H); to amend the state finance law, in relation to the revenue bond tax fund and revenue bond financing program (Part I); to amend the tax law, in relation to prohibition against the stamping of certain cigarettes (Part J); to authorize the New York state urban development corporation to provide loan guarantees or establish loan loss reserve funds (Part K); to amend the general municipal law, in relation to designation of additional empire zones and zone lands in certain counties (Part L); to amend chapter 405 of the laws of 1999, amending the real property tax law relating to improving the administration of the school tax relief (STAR) program and other laws, in relation to extending the expiration of the lottery game of

2 quick draw (Part M); to amend the multiple dwelling law and chapter 349 of the laws of 1982, amending the multiple dwelling law relating to the legalization of interim multiple dwellings in cities of over one million, in relation to extending the provisions thereof (Part N); to amend chapter 2 of the laws of 1998, amending the public health law, the social services law and the insurance law relating to expanding the child health insurance plan, in relation to extending the provisions thereof (Part O); to amend chapter 298 of the laws of 1985, amending the tax law relating to the franchise tax on banking corporations imposed by the tax law, authorized to be imposed by any city having a population of one million or more by chapter 772 of the laws of 1966 and imposed by the administrative code of the city of New York and relating to other provisions of the tax law, chapter 883 of the laws of 1975 and the administrative code of the city of New York which relates to such franchise tax, to amend chapter 817 of the laws of 1987, amending the tax law and the environmental conservation law, constituting the business tax reform and rate reduction act of 1987, to amend chapter 525 of the laws of 1988, amending the tax law and the administrative code of the city of New York relating to the imposition of taxes in the city of New York, in relation to the effectiveness of certain provisions of such chapters; to amend the tax law, in relation to permitting certain banking corporations otherwise subject to tax under article 32 of the tax law to make an election to be taxed under article 9-A of such law; and to amend the administrative code of the city of New York, in relation to permitting certain banking corporations otherwise subject to tax under subchapter 3 of chapter 6 of title 11 of the administrative code of the city of New York to be taxed under subchapter 2 of such code (Part P); to amend the education law, in relation to universal pre-kindergarten (Part Q); to amend the education law, in relation to the approval of new or expanded programs for preschool children with disabilities (Part R); to amend the education law, in relation to increased class sizes for students with disabilities (Part S); to amend chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relating to malpractice and professional medical conduct, in relation to the effectiveness of certain provisions of such chapter and to amend chapter 63 of the laws of 2001, amending chapter 20 of the laws of 2001 amending the military law and other laws relating to making appropriations for the support of government, in relation to the effectiveness of certain provisions of such chapter (Part T); to amend chapter 416 of the laws of 2000 amending the social services law and the state finance law relating to the "Quality Care Child and Protection Act", in relation to extending provisions relating to the child care professional retention program (Part U); to amend chapter 596 of the laws of 2000, amending the social services law and the family court act relating to of and to amend the family court act, in relation to person in need of supervision sixteen years of age and older (Part V); to amend the education law, in relation to extending certain provisions of law relating to the school tax relief act (STAR) program (Part W); to amend chapter 145 of the laws of 1995, relating to addressing the situation in Roosevelt union free school district, in relation to extending the provisions of such chapter (Part X); to amend the economic development law and the state finance law, in relation to establishing the olympic games facilitation act (Part Y); to amend the executive law, the agriculture and markets law, the education law, the highway law, the public officers law and the state finance law, in relation to establishing the upstate and downstate New York tourism councils (Part Z); and relating to the definition of that area to be known as the New York city liberty zone (Part AA) NOTICE: [A> UPPERCASE TEXT WITHIN THESE SYMBOLS IS ADDED <A] [D> Text within these symbols is deleted <D] TEXT: THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation relating to issues deemed necessary for the state. Each component is wholly contained within a Part identified as Parts A through AA. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including

3 the effective date of the Part, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Notwithstanding any other provision of law to the contrary, the power authority of the state of New York ("the authority") is authorized to supply power and energy to its public corporation customers within the metropolitan area of the City of New York within the state of New York for resale to other public and private users. No electric corporation engaged in the delivery of power and energy to such public corporations shall impose any tariff or other restrictions on such uses, or apply additional rates or charges in connection with such deliveries other than those that would ordinarily apply with respect to the authority's public corporations customers within the City of New York. In the event that any such power and energy is resold by any such public corporation, the terms and conditions of such resale shall be determined by the authority. The authority shall also determine which business customers will receive an allocation, as well as the size and duration of such allocation and the resale rates. Such terms and conditions shall include criteria with respect to the resale within the City of New York of up to a total of eighty megawatts of power for allocation to business customers that require low-cost economic development power as an incentive to relocate to or begin business in the liberty zone, as defined in a chapter of the laws of 2001, and within the resurgence zone, as defined as the area of New York county bounded on the south by a line running from the intersection of the Hudson River with the Holland Tunnel, and running thence east to Canal Street, then running along the centerline of Canal Street to the intersection of the Bowery and Canal Street, running thence in a southeasterly direction diagonally across Manhattan Bridge Plaza, to the Manhattan Bridge and thence along the centerline of the Manhattan Bridge to the point where the centerline of the Manhattan Bridge would intersect with the easterly bank of the East River, and bounded on the north by a line running from the intersection of the Hudson River with the Holland Tunnel and running thence north along West Avenue to the intersection of Clarkson Street then running east along the centerline of Clarkson Street to the intersection of Washington Avenue, then running south along the centerline of Washington Avenue to the intersection of West Houston Street, then east along the centerline of West Houston Street, then at the intersection of the Avenue of the Americas continuing east along the centerline of East Houston Street to the easterly bank of the East River or to retain or create jobs in those areas. In allocating such power, a priority shall be given to the following customers: first, to former tenants of the World Trade Center buildings one, two, four, five and six and other businesses that were displaced in the World Trade Center disaster of September 11, 2001 which have relocated in the liberty zone, as defined in a chapter of the laws of 2001, and within the resurgence zone, as defined as the area of New York county bounded on the south by a line running from the intersection of the Hudson River with the Holland Tunnel, and running thence east to Canal Street, then running along the centerline of Canal Street to the intersection of the Bowery and Canal Street, running thence in a southeasterly direction diagonally across Manhattan Bridge Plaza, to the Manhattan Bridge and thence along the centerline of the Manhattan Bridge to the point where the centerline of the Manhattan Bridge would intersect with the easterly bank of the East River, and bounded on the north by a line running from the intersection of the Hudson River with the Holland Tunnel and running thence north along West Avenue to the intersection of Clarkson Street then running east along the centerline of Clarkson Street to the intersection of Washington Avenue, then running south along the centerline of Washington Avenue to the intersection of West Houston Street, then east along the centerline of West Houston Street, then at the intersection of the Avenue of the Americas continuing east along the centerline of East Houston Street to the easterly bank of the East River second, to former tenants of the World Trade Center buildings one, two, four, five and six and other businesses that were displaced in the World Trade Center disaster

4 of September 11, 2001 which have relocated in the City of New York but have committed to move back to the liberty zone, as defined in a chapter of the laws of 2001, and within the resurgence zone, as defined as the area of New York county bounded on the south by a line running from the intersection of the Hudson River with the Holland Tunnel, and running thence east to Canal Street, then running along the centerline of Canal Street to the intersection of the Bowery and Canal Street, running thence in a southeasterly direction diagonally across Manhattan Bridge Plaza, to the Manhattan Bridge and thence along the centerline of the Manhattan Bridge to the point where the centerline of the Manhattan Bridge would intersect with the easterly bank of the East River, and bounded on the north by a line running from the intersection of the Hudson River with the Holland Tunnel and running thence north along West Avenue to the intersection of Clarkson Street then running east along the centerline of Clarkson Street to the intersection of Washington Avenue, then running south along the centerline of Washington Avenue to the intersection of West Houston Street, then east along the centerline of West Houston Street, then at the intersection of the Avenue of the Americas continuing east along the centerline of East Houston Street to the easterly bank of the East River when redevelopment is completed; and third, businesses located or intending to locate in the liberty zone, as defined in a chapter of the laws of 2001, and within the resurgence zone, as defined as the area of New York county bounded on the south by a line running from the intersection of the Hudson River with the Holland Tunnel, and running thence east to Canal Street, then running along the centerline of Canal Street to the intersection of the Bowery and Canal Street, running thence in a southeasterly direction diagonally across Manhattan Bridge Plaza, to the Manhattan Bridge and thence along the centerline of the Manhattan Bridge to the point where the centerline of the Manhattan Bridge would intersect with the easterly bank of the East River and bounded on the north by a line running from the intersection of the Hudson River with the Holland Tunnel and running thence north along West Avenue to the intersection of Clarkson Street then running east along the centerline of Clarkson Street to the intersection of Washington Avenue, then running south along the centerline of Washington Avenue to the intersection of West Houston Street, then east along the centerline of West Houston Street, then at the intersection of the Avenue of the Americas continuing east along the centerline of East Houston Street to the easterly bank of the East River and retain or create jobs in those areas. Any such allocation shall be for a minimum term of three years. Up to fifteen megawatts of the eighty megawatts will be made available to small businesses, which is defined to include corporations, partnerships, limited liability companies, sole proprietorships or individual business customers that normally utilize a peak electric demand of four hundred kilowatts or less. Section 2. This act shall take effect immediately. PART B Section 1. Legislative intent. The state legislature finds that the state has a significant interest, subject to negotiation, that the provisions of a tribalstate compact contain terms consistent with certain state laws, including, but not limited to, the labor law, the workers' compensation law, and the human rights law which provide for the granting of benefits, rights and privileges which improve the economic quality of life and personal safety of persons who either: (i) will be engaged in the construction, reconstruction, development, rehabilitation, or maintenance of any such facility which will be the site where such gaming activities are to be conducted, or which are related facilities used to facilitate patronage at the gaming facility; or (ii) will be employed, within any such gaming or related facility, either by the Indian tribe or by any person, corporation, firm or entity engaged by the Indian tribe, to operate, administer or manage any such gaming or related facility. The classification of employees hereinbefore referred to shall include, but not necessarily be limited to, employees engaged in: guest entertainment, security, grounds keeping, gaming activities (limited to slot change employees, booth cashiers, carousel attendants and casino food and beverage service employees), reservations, parking and other guest services, the preparation or service of food and

5 beverages; the rendering of housekeeping, maintenance, cleaning, bell and door services; and those engaged in the provision of laundry services for guests at the gaming facility or any related facility which is used to facilitate patronage at the gaming facility. Persons who are not such employees but who are engaged in the construction, reconstruction, development, rehabilitation or maintenance of any such gaming or related facility should also be extended the protections listed above. Moreover, the legislature finds that gaming should be conducted in a manner which adequately protects the environment and the public health and safety, which is a stated requirement for the conduct of class III gaming activities pursuant to the Indian Gaming Regulatory Act. Section 2. The executive law is amended by adding a new section 12 to read as follows: [A> SECTION 12. TRIBAL-STATE COMPACT. (A) NOTWITHSTANDING ANY OTHER LAW, THE STATE, THROUGH THE GOVERNOR, MAY EXECUTE A TRIBAL-STATE COMPACT WITH THE SENECA NATION OF INDIANS PURSUANT TO THE INDIAN GAMING REGULATORY ACT OF 1988 (P.L ; 25 U.S.C. SSSS AND 18 U.S.C. SSSS ) CONSISTENT WITH A MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNOR AND THE PRESIDENT OF THE SENECA NATION OF INDIANS EXECUTED ON JUNE TWENTIETH, TWO THOUSAND ONE AND FILED WITH THE DEPARTMENT OF STATE ON JUNE TWENTY-FIRST, TWO THOUSAND ONE. SUCH TRIBAL-STATE COMPACT SHALL BE DEEMED RATIFIED BY THE LEGISLATURE UPON THE GOVERNOR'S CERTIFICATION TO THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE SECRETARY OF STATE, THAT SUCH COMPACT, THROUGH ITS TERMS, BY A MEMORANDUM OF UNDERSTANDING OR OTHER AGREEMENT BETWEEN THE STATE AND NATION, BY A NATION'S ORDINANCE OR RESOLUTION, BY STATUTE, BY EXECUTIVE ORDER, OR BY THE TERMS OF ANY OTHER AGREEMENT ENTERED INTO BY OR ON BEHALF OF THE NATION, PROVIDES: (I) ASSURANCES THAT THE NATION WILL PROVIDE (1) REASONABLE ACCESS TO THE GAMING AND RELATED FACILITIES TO LABOR UNION ORGANIZERS FOR PURPOSES OF A CAMPAIGN TO SOLICIT EMPLOYEE SUPPORT FOR LABOR UNION REPRESENTATION; (2) PERMISSION FOR LABOR UNION ORGANIZERS TO DISTRIBUTE LABOR UNION AUTHORIZATION CARDS ON SITE FOR THE PURPOSE OF SOLICITING EMPLOYEE SUPPORT FOR LABOR UNION REPRESENTATION; AND (3) RECOGNITION OF LABOR UNIONS AS THE EXCLUSIVE COLLECTIVE BARGAINING REPRESENTATIVES OF EMPLOYEES IN APPROPRIATE BARGAINING UNITS BASED UPON A DEMONSTRATION OF MAJORITY EMPLOYEE SUPPORT OF SUCH LABOR UNIONS BY UNION AUTHORIZATION CARD CHECK AS VERIFIED, IF NECESSARY, BY AN INDEPENDENT ARBITRATOR APPOINTED BY THE STATE EMPLOYMENT RELATIONS BOARD IN CONSULTATION WITH THE NATION AND THE LABOR UNION; (II) ASSURANCES THAT THE NATION HAS AN ADEQUATE CIVIL RECOVERY SYSTEM WHICH GUARANTEES FUNDAMENTAL DUE PROCESS TO VISITORS AND GUESTS OF THE FACILITY AND RELATED FACILITIES; AND (III) ASSURANCES THAT THE NATION WILL MAINTAIN DURING THE TERM OF THE COMPACT SUFFICIENT LIABILITY INSURANCE TO ASSURE THAT VISITORS AND GUESTS WILL BE COMPENSATED FOR THEIR INJURIES. <A] [A> (B) NOTWITHSTANDING ANY OTHER LAW, THE STATE, THROUGH THE GOVERNOR, MAY EXECUTE TRIBAL-STATE COMPACTS PURSUANT TO THE INDIAN GAMING REGULATORY ACT OF 1988 (P.L ; 25 U.S.C. SSSS AND 18 U.S.C. SSSS ) AUTHORIZING UP TO THREE CLASS III GAMING FACILITIES IN THE COUNTIES OF SULLIVAN AND ULSTER. SUCH TRIBAL-STATE COMPACT SHALL BE DEEMED RATIFIED BY THE LEGISLATURE UPON THE GOVERNOR'S CERTIFICATION TO THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE SECRETARY OF STATE, THAT SUCH COMPACT, THROUGH ITS TERMS, BY A MEMORANDUM OF UNDERSTANDING OR OTHER AGREEMENT BETWEEN THE STATE AND NATION, BY A NATION'S ORDINANCE OR RESOLUTION, BY STATUTE, BY EXECUTIVE ORDER, OR BY THE TERMS OF ANY OTHER AGREEMENT ENTERED INTO BY OR ON BEHALF OF THE NATION, PROVIDES: (I) ASSURANCES THAT THE NATION WILL PROVIDE (1) REASONABLE ACCESS TO THE GAMING AND RELATED FACILITIES TO LABOR UNION ORGANIZERS FOR PURPOSES OF A CAMPAIGN TO SOLICIT EMPLOYEE SUPPORT FOR LABOR UNION REPRESENTATION; (2) PERMISSION FOR LABOR UNION ORGANIZERS TO DISTRIBUTE LABOR UNION AUTHORIZATION CARDS ON SITE FOR THE PURPOSE OF SOLICITING EMPLOYEE SUPPORT FOR LABOR UNION REPRESENTATION; (3) PROVISION OF EMPLOYEES' NAMES AND ADDRESSES TO LABOR UNION REPRESENTATIVES AND TRIBAL/EMPLOYER/MANAGEMENT NEUTRALITY IN LABOR UNION ORGANIZING CAMPAIGNS; (4) RECOGNITION OF LABOR UNIONS AS THE EXCLUSIVE COLLECTIVE BARGAINING REPRESENTATIVES OF EMPLOYEES IN APPROPRIATE BARGAINING UNITS BASED UPON A DEMONSTRATION OF MAJORITY EMPLOYEE SUPPORT OF SUCH LABOR UNIONS BY UNION AUTHORIZATION CARD CHECK AS VERIFIED, IF NECESSARY, BY AN

6 INDEPENDENT ARBITRATOR APPOINTED BY THE STATE EMPLOYMENT RELATIONS BOARD IN CONSULTATION WITH THE NATION AND THE LABOR UNION; AND (5) FINAL AND BINDING ARBITRATION OF ORGANIZED LABOR MATTERS OR DISPUTES INCLUDING NEGOTIATIONS FOR COLLECTIVE BARGAINING AGREEMENTS WITH ARBITRATORS' AWARDS ENFORCEABLE IN A STATE OR FEDERAL COURT OF COMPETENT JURISDICTION; (II) ASSURANCES THAT THE NATION HAS AN ADEQUATE CIVIL RECOVERY SYSTEM WHICH GUARANTEES FUNDAMENTAL DUE PROCESS TO VISITORS AND GUESTS OF THE FACILITY AND RELATED FACILITIES; AND (III) ASSURANCES THAT THE NATION WILL MAINTAIN DURING THE TERM OF THE COMPACT SUFFICIENT LIABILITY INSURANCE TO ASSURE THAT VISITORS AND GUESTS WILL BE COMPENSATED FOR THEIR INJURIES. <A] [A> (C) EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THE COMPACT, THE STATE SPECIFICALLY RESERVES ALL ITS RIGHTS, AS ATTRIBUTES OF ITS INHERENT SOVEREIGNTY, RECOGNIZED BY THE TENTH AND ELEVENTH AMENDMENTS TO THE UNITED STATES CONSTITUTION. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AFFECT THE EXISTING AUTHORITY OF THE GOVERNOR UNDER THE CONSTITUTION AND LAWS OF THIS STATE TO EXECUTE TRIBAL-STATE COMPACTS. <A] Section 3. The state finance law is amended by adding a new section 99-h to read as follows: [A> SECTION 99-H. TRIBAL-STATE COMPACT REVENUE ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT IN THE MISCELLANEOUS SPECIAL REVENUE FUND TO BE KNOWN AS THE "TRIBAL-STATE COMPACT REVENUE ACCOUNT". <A] [A> 2. SUCH ACCOUNT SHALL CONSIST OF ALL REVENUES RESULTING FROM TRIBAL-STATE COMPACTS EXECUTED PURSUANT TO ARTICLE TWO OF THE EXECUTIVE LAW. <A] [A> 3. MONEYS OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE, SHALL BE AVAILABLE FOR PURPOSES INCLUDING BUT NOT LIMITED TO: (A) REIMBURSEMENTS OR PAYMENTS TO MUNICIPAL GOVERNMENTS THAT HOST TRIBAL CASINOS PURSUANT TO A TRIBAL-STATE COMPACT FOR COSTS INCURRED IN CONNECTION WITH SERVICES PROVIDED TO SUCH CASINOS OR ARISING AS A RESULT THEREOF, FOR ECONOMIC DEVELOPMENT OPPORTUNITIES AND JOB EXPANSION PROGRAMS AUTHORIZED BY THE EXECUTIVE LAW; PROVIDED, HOWEVER, THAT FOR ANY GAMING FACILITY LOCATED IN THE COUNTY OF ERIE OR NIAGARA, THE MUNICIPAL GOVERNMENTS HOSTING THE FACILITY SHALL COLLECTIVELY RECEIVE A MINIMUM OF TWENTY-FIVE PERCENT OF THE NEGOTIATED PERCENTAGE OF THE NET DROP FROM ELECTRONIC GAMING DEVICES THE STATE RECEIVES PURSUANT TO THE COMPACT AND PROVIDED FURTHER THAT FOR ANY GAMING FACILITY LOCATED IN THE COUNTY OF CATTARAUGUS, THE MUNICIPAL GOVERNMENTS OF THE STATE HOSTING THE FACILITY SHALL COLLECTIVELY RECEIVE A MINIMUM OF FIFTEEN PERCENT OF THE NEGOTIATED PERCENTAGE OF THE NET DROP FROM ELECTRONIC GAMING DEVICES THE STATE RECEIVES PURSUANT TO THE COMPACT; AND (B) SUPPORT AND SERVICES OF TREATMENT PROGRAMS FOR PERSONS SUFFERING FROM GAMBLING ADDICTIONS. MONEYS NOT APPROPRIATED FOR SUCH PURPOSES SHALL BE TRANSFERRED TO THE GENERAL FUND FOR THE SUPPORT OF GOVERNMENT DURING THE FISCAL YEAR IN WHICH THEY ARE RECEIVED. <A] Section 4. Section of the penal law, subdivision 3 as added by chapter 632 of the laws of 1987, is amended to read as follows: Section Possession of a gambling device. A. A person is guilty of possession of a gambling device when, with knowledge of the character thereof, he [A> OR SHE <A] manufactures, sells, transports, places or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of: 1. A slot machine, [A> UNLESS SUCH POSSESSION IS PERMITTED PURSUANT TO ARTICLE NINE-A OF THE GENERAL MUNICIPAL LAW; <A] or 2. Any other gambling device, believing that the same is to be used in the advancement of unlawful gambling activity [D>. <D] [A> ; OR <A] 3. A coin operated gambling device with intent to use such device in the advancement of unlawful gambling activity.

7 [A> B. POSSESSION OF A SLOT MACHINE SHALL NOT BE UNLAWFUL WHERE SUCH POSSESSION AND USE IS PURSUANT TO A GAMING COMPACT, DULY EXECUTED BY THE GOVERNOR AND AN INDIAN TRIBE OR NATION, UNDER THE INDIAN GAMING REGULATORY ACT, AS CODIFIED AT 25 U.S.C. SSSS AND 18 U.S.C SSSS , WHERE THE USE OF SUCH SLOT MACHINE OR MACHINES IS CONSISTENT WITH SUCH GAMING COMPACT AND WHERE THE STATE RECEIVES A NEGOTIATED PERCENTAGE OF THE NET DROP (DEFINED AS GROSS MONEY WAGERED AFTER PAYOUT, BUT BEFORE EXPENSES) FROM ANY SUCH SLOT MACHINE OR MACHINES. <A] Possession of a gambling device is a class A misdemeanor. Section 5. Subdivision 3 of section 186 of the general municipal law, as amended by chapter 337 of the laws of 1998, is amended to read as follows: 3. "Games of chance" shall mean and include only the games known as "merchandise wheels", "coin boards", "merchandise boards", "seal cards", "raffles", and "bell jars" and such other specific games as may be authorized by the board, in which prizes are awarded on the basis of a designated winning number or numbers, color or colors, symbol or symbols determined by chance, but not including games commonly known as "bingo or lotto" which are controlled under article fourteen-h of this chapter and also not including [D> "slot machines", <D] "bookmaking", "policy or numbers games" and "lottery" as defined in section of the penal law. No game of chance shall involve wagering of money by one player against another player. Section 6. This act shall take effect immediately; provided, that, subdivision (a) of section 12 of the executive law as added by section two of this act shall expire and be deemed repealed if a tribal-state compact between the state of New York and the Seneca Nation of Indians has not been executed within two years of the date on which this act shall have become a law; provided that the secretary of state shall notify the legislative bill drafting commission upon the occurrence of the certification provided for in section two of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART C Section 1. The tax law is amended by adding a new section 1617-a to read as follows: [A> SECTION 1617-A. VIDEO LOTTERY GAMING. A. 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 AQUEDUCT, MONTICELLO, YONKERS, FINGER LAKES AND VERNON DOWNS RACETRACKS, OR AT ANY OTHER RACETRACK LICENSED PURSUANT TO ARTICLE THREE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW THAT ARE LOCATED IN A COUNTY OR COUNTIES IN WHICH VIDEO LOTTERY GAMING HAS BEEN AUTHORIZED PURSUANT TO LOCAL LAW, EXCLUDING THE LICENSED RACETRACK COMMONLY REFERRED TO IN ARTICLE THREE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AS THE "NEW YORK STATE EXPOSITION" HELD IN ONONDAGA COUNTY AND THE RACETRACKS OF THE NON-PROFIT RACING ASSOCIATION KNOWN AS BELMONT PARK RACETRACK AND THE SARATOGA THOROUGHBRED RACETRACK. SUCH RULES AND REGULATIONS SHALL PROVIDE, AS A CONDITION OF LICENSURE, THAT RACETRACKS 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 GAMING OPERATIONS AS FOUND AT RACETRACKS IN OTHER STATES, THAT RACETRACK 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. <A] [A> B. VIDEO LOTTERY GAMING SHALL ONLY BE PERMITTED DURING THE HOURS OF TEN A.M. THROUGH TEN P.M. SUNDAY THROUGH THURSDAY AND TWELVE P.M. THROUGH TWELVE A.M. FRIDAY AND SATURDAY, PROVIDED, HOWEVER, THAT THE LOTTERY MAY AUTHORIZE SUCH

8 VIDEO LOTTERY GAMING ON PUBLIC HOLIDAYS AND THE DAY PRECEDING SUCH HOLIDAYS FROM TWELVE P.M. THROUGH TWELVE A.M. <A] [A> C. THE DIVISION SHALL PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE IMPLEMENTATION OF VIDEO LOTTERY GAMING IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND PARAGRAPH FIVE OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED TWELVE OF THIS ARTICLE. <A] [A> D. ALL WORKERS ENGAGED IN THE CONSTRUCTION, RECONSTRUCTION, DEVELOPMENT, REHABILITATION OR MAINTENANCE OF ANY AREA FOR THE PURPOSE OF THE INSTALLATION, MAINTENANCE OR REMOVAL OF VIDEO LOTTERY TERMINALS SHALL BE SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT AND NINE OF THE LABOR LAW TO THE EXTENT PROVIDED IN SUCH ARTICLES. <A] Section 2. Subdivision a of section 1612 of the tax law is amended by adding a new paragraph 5 to read as follows: [A> (5) (A) THE BALANCE OF THE TOTAL REVENUE AFTER PAYOUT FOR PRIZES FOR GAMES KNOWN AS "VIDEO LOTTERY GAMING," LESS FIFTEEN PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT FOR PRIZES TO BE RETAINED BY THE DIVISION FOR OPERATION, ADMINISTRATION, PROCUREMENT AND PROMOTIONAL PURPOSES; AND LESS A VENDOR'S FEE TO BE PAID TO THE TRACK OPERATOR AT A RATE TO BE ESTABLISHED BY THE DIVISION WHICH SHALL BE NOT LESS THAN TWELVE PERCENT OR MORE THAN TWENTY-FIVE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER, WHICH AMOUNT SHALL BE PAID TO THE OPERATOR OF THE RACETRACK FOR SERVING AS A LOTTERY AGENT UNDER THIS PILOT PROGRAM. IN ESTABLISHING THE LOTTERY AGENT 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 PARTICIPATION IN SUCH PILOT PROGRAM. <A] [A> (B) IN CONSIDERATION FOR ITS LICENSURE AND PARTICIPATION IN THIS PILOT PROGRAM, EACH TRACK SHALL REINVEST IN THE RACING INDUSTRY A PERCENTAGE OF THE VENDOR FEE RECEIVED PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH IN THE MANNER SET FORTH IN THIS SUBPARAGRAPH. EACH SUCH TRACK SHALL DEDICATE THE FOLLOWING PERCENTAGES OF ITS VENDOR FEE SOLELY FOR THE PURPOSE OF ENHANCING PURSES AT SAID TRACK: IN THE FIRST YEAR OF VIDEO LOTTERY GAMING AT SUCH TRACK, THIRTY-FIVE PERCENT; AND IN THE SECOND AND ANY SUBSEQUENT YEAR, FORTY-FIVE PERCENT. IN ADDITION, NO LESS THAN FIVE PERCENT OF ITS VENDOR FEE SHALL BE DISTRIBUTED TO THE APPROPRIATE BREEDING FUND FOR THE MANNER OF RACING CONDUCTED BY SAID TRACK. <A] [A> (C) THE SPECIFICATIONS FOR VIDEO LOTTERY GAMING SHALL BE DESIGNED IN A MANNER AS TO PAY PRIZES THAT AVERAGE NO LESS THAN NINETY PERCENT OF SALES. <A] [A> (D) OF THE FIFTEEN PERCENT RETAINED BY THE DIVISION FOR ADMINISTRATIVE PURPOSES, ANY AMOUNTS BEYOND THAT WHICH IS NECESSARY FOR THE PROMOTION, OPERATION OR ADMINISTRATION OF THIS PILOT PROGRAM, SHALL BE DEPOSITED IN THE LOTTERY EDUCATION ACCOUNT. <A] Section 3. Severability. If any clause, sentence, provision, paragraph, subdivision, section, or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect or impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, provision, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. The remainder of this act and its relevant applicability shall not be affected. Section 4. This act shall take effect immediately; provided, however, that the provisions of this act shall expire and be deemed repealed three years after the division of the lottery certifies to the governor, the temporary president of the senate and the speaker of the assembly that video lottery gaming is in operation in at least one racetrack; provided that the division of the lottery shall also notify the legislative bill drafting commission in order that the

9 commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART D Section 1. The opening paragraph of subdivision a of section 1604 of the tax law, as amended by chapter 913 of the laws of 1977, is amended to read as follows: In addition to the powers and duties provided in other sections of this article, the division shall have the power and it shall be its duty to operate and administer the lottery [A> WITHIN THE STATE <A] including any [D> lottery for the support of winter sports physical education in commemoration of the XIII winter olympic games <D] [A> JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY IN COOPERATION WITH A GOVERNMENT-AUTHORIZED LOTTERY OF ONE OR MORE OTHER JURISDICTIONS, <A] and to promulgate rules and regulations governing the establishment and operation thereof, including but not limited to the following: Section 2. Paragraph 3 of subdivision a of section 1612 of the tax law, as amended by chapter 2 of the laws of 1995, is amended to read as follows: (3) fifty percent of the total amount for which tickets have been sold for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete games in which the participants select no more than three or four of their own numbers to match with three or four numbers drawn by the division for purposes of determining winners of such games, (B) "Pick 10", offered no more than once daily, in which participants select from a specified field of numbers a subset of ten numbers to match against a subset of numbers to be drawn by the division from such field of numbers for the purpose of determining winners of such game, [D> and <D] (C) "Take 5", offered no more than once daily, in which participants select from a specified field of numbers a subset of five numbers to match against a subset of five numbers to be drawn by the division from such field of numbers for purposes of determining winners of such game [A>, AND (D) ANY JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY <A] ; or Section 3. Section 1617 of the tax law is REPEALED and a new section 1617 is added to read as follows: [A> SECTION JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY. THE DIRECTOR MAY ENTER INTO AN AGREEMENT WITH A GOVERNMENT-AUTHORIZED GROUP OF ONE OR MORE OTHER JURISDICTIONS PROVIDING FOR THE OPERATION AND ADMINISTRATION OF A JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY, EXCEPT THE DIRECTOR MAY NOT AGREE TO PARTICIPATE IN THE GAMES OF MORE THAN ONE SUCH GROUP AT ANY SINGLE TIME. SUCH A JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY GAME OR GAMES MAY INCLUDE A COMBINED DRAWING, A COMBINED PRIZE POOL, THE TRANSFER OF SALES AND PRIZE MONIES TO OTHER JURISDICTIONS AS MAY BE NECESSARY, AND SUCH OTHER COOPERATIVE ARRANGEMENTS AS THE DIRECTOR DEEMS NECESSARY OR DESIRABLE. <A] Section 4. This act shall take effect immediately.