BILL NUMBER: S8419
SPONSOR: ADDABBO
 
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.