Provides that from April 1, 2025 to March 31, 2026, twenty-three percent of funds in the Catskill off-track betting corporation's capital acquisition fund shall be made available for certain past due obligations; requires such corporation to submit an expenditure plan for approval before accessing such funds.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8892
SPONSOR: Woerner TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to funds in the Catskill off-track betting corporation's capi-
tal acquisition fund
PURPOSE OF BILL:
This bill would provide a one-time, temporary authorization for the
Catskill Off-Track Betting Corporation (OTB) to use a portion of its
restricted Capital Acquisition Fund (CAF) to pay specified outstanding
debts and obligations.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends Racing, Pari-Mutuel Wagering and Breeding Law § 509-a
to authorize the Catskill Off-Track Betting Corporation to use 45% of
its funds balance (up to $2.7 million) from its Capital Acquisition Fund
to pay specified debts between April 1, 2025, and March 31, 2026,
subject to the submission and approval of an expenditure plan by the
Gaming Commission.
Section 2: Effective date.
JUSTIFICATION:
The Catskill Off-Track Betting Corporation (OTB) has numerous outstand-
ing financial obligations that must be settled. Under current law, the
corporation's Capital Acquisition Fund may only be used for capital
projects, leaving substantial funds unavailable for use while the corpo-
ration's debts remain unpaid.
This legislation provides a responsible, temporary solution by allowing
the Catskill OTB to use up to $2.7 million of its own restricted funds
to satisfy these specific debts. The authorized use of funds is narrowly
tailored to address critical, past-due obligations, including statutory
payments to New York's racetracks and breeding funds, contractual
payments for simulcast signals, and other debts owed to the State.
To ensure fiscal accountability, the bill requires the OTB to first
submit a detailed expenditure plan to the New York State Gaming Commis-
sion for review and approval. The Commission is empowered to audit the
corporation's books to confirm that the funds are used only for the
purposes outlined in the approved plan. This measure allows the corpo-
ration to responsibly use its own existing assets to meet its obli-
gations to the State and the racing community in a transparent and
accountable manner.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This bill has no direct negative fiscal impact on the State, as it
authorizes the use of the corporation's own existing funds. It may have
a positive fiscal impact by enabling the payment of past-due obligations
to the State and State-supported breeding funds.
EFFECTIVE DATE:.
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8892
2025-2026 Regular Sessions
IN ASSEMBLY
June 10, 2025
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to funds in the Catskill off-track betting corporation's
capital acquisition fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel
2 wagering and breeding law is amended by adding two new paragraphs e-1
3 and g to read as follows:
4 e-1. Notwithstanding any other provision of law or regulation to the
5 contrary, from April first, two thousand twenty-five to March thirty-
6 first, two thousand twenty-six, forty-five percent of the funds, not to
7 exceed two million seven hundred thousand dollars, in the Catskill off-
8 track betting corporation's capital acquisition fund established pursu-
9 ant to this section, shall be available to such off-track betting corpo-
10 ration for the purposes of expenditures necessary to pay off any
11 outstanding debts and obligations; past due statutory obligations to New
12 York licensed or franchised racing corporations or associations; past
13 due contractual obligations due to other racing associations or organ-
14 izations for the costs of acquiring a simulcast signal; past due statu-
15 tory payment obligations due to the New York state thoroughbred breeding
16 and development fund corporation, agriculture and New York state horse
17 breeding development fund, and the Harry M. Zweig memorial fund for
18 equine research; and past due obligations due the state.
19 g. Prior to a corporation being able to utilize the funds authorized
20 by paragraph e-1 of this subdivision, the corporation must submit an
21 expenditure plan to the gaming commission for review. Such plan shall
22 include the corporation's outstanding liabilities, projected revenue for
23 the upcoming year, a detailed explanation of how the funds will be used,
24 and any other information necessary to detail such plan as determined by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13373-02-5
A. 8892 2
1 the commission. Upon review, the commission shall make a determination
2 as to whether the requirements of this paragraph have been satisfied and
3 notify the corporation of expenditure plan approval. In the event the
4 commission determines the requirements of this paragraph have not been
5 satisfied, the commission shall notify the corporation of all deficien-
6 cies necessary for approval. As a condition of such expenditure plan
7 approval, the corporation shall provide a report to the commission no
8 later than the last day of the calendar year for which the funds are
9 requested, which shall include an accounting of the use of such funds.
10 At such time, the commission may cause an independent audit to be
11 conducted of the corporation's books to ensure that all moneys were
12 spent as indicated in such approved plan. The audit shall be paid for
13 from money in the fund established by this section. If the audit deter-
14 mines that a corporation used the money authorized under this section
15 for a purpose other than one listed in their expenditure plan, then the
16 corporation shall reimburse the capital acquisition fund for the unau-
17 thorized amount.
18 § 2. This act shall take effect immediately.
