Bill Text: NY A08417 | 2019-2020 | General Assembly | Amended


Bill Title: Permits video lottery gaming in the town of Woodbury, Orange county; designates vendor fees; requires a mitigation agreement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-06-17 - print number 8417a [A08417 Detail]

Download: New_York-2019-A08417-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         8417--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      June 16, 2019
                                       ___________

        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Ways and Means -- committee discharged, bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN  ACT  to  amend the tax law and the state finance law, in relation to
          video lottery gaming in the town of Woodbury

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Clause (B) of subparagraph (ii) of paragraph 1 of subdivi-
     2  sion b of section 1612 of the  tax  law  is  amended  by  adding  a  new
     3  subclause 5 to read as follows:
     4    (5)  sixty-four percent for a video lottery gaming facility authorized
     5  pursuant to paragraph five of subdivision a of section  sixteen  hundred
     6  seventeen-a of this article;
     7    §  2.  Paragraph 2 of subdivision b of section 1612 of the tax law, as
     8  amended by section 1 of part OO of chapter 59 of the laws  of  2014,  is
     9  amended to read as follows:
    10    2. As consideration for the operation of a video lottery gaming facil-
    11  ity,  the division, shall cause the investment in the racing industry of
    12  a portion of the vendor fee received pursuant to paragraph one  of  this
    13  subdivision  in  the  manner  set  forth in this subdivision.   With the
    14  exception of Aqueduct racetrack, a video lottery gaming facility author-
    15  ized pursuant to paragraph five of  subdivision  a  of  section  sixteen
    16  hundred  seventeen-a  of  this  article  or  a facility in the county of
    17  Nassau or Suffolk operated by  a  corporation  established  pursuant  to
    18  section  five hundred two of the racing, pari-mutuel wagering and breed-
    19  ing law, each such track shall dedicate a portion of  its  vendor  fees,
    20  received  pursuant  to clause (A), (B), (B-1), (B-2), (C), or (D)[, (E),
    21  (F), or (G)] of subparagraph (ii) of paragraph one of this  subdivision,
    22  for the purpose of enhancing purses at such track, in an amount equal to
    23  eight  and  three-quarters  percent  of the total revenue wagered at the
    24  vendor track after pay out for prizes. One percent of  the  gross  purse

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13351-09-9

        A. 8417--A                          2

     1  enhancement  amount,  as  required by this subdivision, shall be paid to
     2  the gaming commission to be  used  exclusively  to  promote  and  ensure
     3  equine health and safety in New York. Any portion of such funding to the
     4  gaming  commission  unused during a fiscal year shall be returned to the
     5  video lottery gaming operators on a pro rata basis  in  accordance  with
     6  the  amounts  originally  contributed by each operator and shall be used
     7  for the purpose of enhancing purses at  such  track.  One  and  one-half
     8  percent  of  the gross purse enhancement amount at a thoroughbred track,
     9  as required by this subdivision, shall be paid to an account established
    10  pursuant to section two hundred twenty-one-a of the racing,  pari-mutuel
    11  wagering  and  breeding  law  to  be  used exclusively to provide health
    12  insurance for jockeys. In addition, with the exception of Aqueduct race-
    13  track, a video lottery gaming facility authorized pursuant to  paragraph
    14  five  of  subdivision  a  of section sixteen hundred seventeen-a of this
    15  article or a facility in the county of Nassau or Suffolk operated  by  a
    16  corporation  established  pursuant  to  section  five hundred two of the
    17  racing, pari-mutuel wagering  and  breeding  law,  one  and  one-quarter
    18  percent  of  total revenue wagered at the vendor track after pay out for
    19  prizes, received pursuant to clause (A),  (B),  (B-1),  (B-2),  (C),  or
    20  (D)[,  (E),  (F),  or (G)] of subparagraph (ii) of paragraph one of this
    21  subdivision, shall be distributed to the appropriate breeding  fund  for
    22  the manner of racing conducted by such track.
    23    Provided,  further,  that nothing in this paragraph shall prevent each
    24  track from entering into an agreement, not to exceed  five  years,  with
    25  the  organization  authorized  to  represent its horsemen to increase or
    26  decrease the portion of its vendor fee dedicated to enhancing purses  at
    27  such  track  during the years of participation by such track, or to race
    28  fewer dates than required herein.
    29    § 3. Subdivision h of section 1612 of the tax law, as amended by chap-
    30  ter 174 of the laws of 2013, is amended to read as follows:
    31    h. As consideration for  the  operation  of  a  video  lottery  gaming
    32  [resort]  facility  located  in  [Sullivan county] the town of Woodbury,
    33  county of Orange, the division shall cause the investment in the  racing
    34  industry  at  the  following  amount  from  the vendor fee to be paid as
    35  follows:
    36    As amount to the horsemen for purses at a licensed racetrack in Sulli-
    37  van county [and to the agriculture and New  York  state  horse  breeding
    38  development  fund to maintain racing support payments at the same dollar
    39  levels realized in two thousand thirteen, to be adjusted by the consumer
    40  price index for all urban consumers, as published annually by the United
    41  States department of labor bureau of  labor  statistics]  in  an  amount
    42  equal  to  eight and three-quarters percent of the total revenue wagered
    43  at the video lottery gaming facility, after  pay  out  for  prizes.  The
    44  horsemen  at  a  licensed  racetrack in Sullivan county shall pay to the
    45  horsemen at a licensed racetrack at Yonkers racetrack an amount to main-
    46  tain purses for such horsemen at the same dollar levels realized in  two
    47  thousand  eighteen,  to  be adjusted by the consumer price index for all
    48  urban consumers, as published annually by the United  States  department
    49  of  labor  bureau  of labor statistics. In addition, one and one-quarter
    50  percent of total revenue wagered at the video  lottery  gaming  facility
    51  after  pay  out  for prizes, received pursuant to clause (B) of subpara-
    52  graph (ii) of paragraph one of subdivision b of this section,  shall  be
    53  distributed  to  the  appropriate breeding fund for the manner of racing
    54  conducted by such track. In no circumstance shall net  proceeds  of  the
    55  lottery,  including  the proceeds from video lottery gaming, be used for

        A. 8417--A                          3

     1  the payment of non-lottery expenses of the gaming  commission,  adminis-
     2  trative or otherwise.
     3    §  4.  Subdivision  a  of  section 1617-a of the tax law is amended by
     4  adding four new paragraphs 5, 6, 7 and 8 to read as follows:
     5    (5) At a facility located in the town of Woodbury, county of Orange to
     6  be operated by the entity otherwise licensed to  operate  video  lottery
     7  gaming  at Monticello racetrack, provided that: (i) such licensed entity
     8  is no longer operating video lottery gaming at Monticello racetrack  and
     9  provided that Monticello racetrack is conducting racing operations; (ii)
    10  such  facility  in  the  town of Woodbury, county of Orange is not sited
    11  within a thirty mile radius of the  video  lottery  gaming  facility  at
    12  Yonkers  racetrack;  and (iii) the licensed entity, its subsidiaries and
    13  affiliates, including the entity licensed to operate a commercial gaming
    14  facility in Sullivan county, and the entity licensed  to  operate  video
    15  lottery  gaming  at Yonkers racetrack enter into a mitigation agreement,
    16  to be approved by the gaming commission, which shall include, but not be
    17  limited to, terms that require: (A) the operator of the facility in  the
    18  town  of  Woodbury,  county  of  Orange to make an annual payment to the
    19  entity licensed to operate video lottery gaming or commercial gaming  at
    20  Yonkers  racetrack  to account for the effects that siting such facility
    21  in Orange county would likely have on the gross gaming  revenue  of  the
    22  entity  licensed  to operate at Yonkers racetrack; (B) employment levels
    23  at the affected facilities; and (C) that upon expiration or  termination
    24  of  the  agreement,  the  authority  to  operate video lottery gaming in
    25  Orange county shall cease. Notwithstanding any other provision  of  this
    26  subdivision,  at  no time shall an entity operating video lottery gaming
    27  in Orange county be permitted to apply for or receive a license to oper-
    28  ate a commercial gaming facility in  that  county.  Notwithstanding  any
    29  other provision of law to the contrary, at no time shall an entity oper-
    30  ating  video lottery gaming in the town of Woodbury, county of Orange be
    31  permitted to enter into any agreement with, or accept any benefit  from,
    32  an  entity  authorized  pursuant  to  article  eighteen-a of the general
    33  municipal law, including but not limited to payments in  lieu  of  taxes
    34  authorized by section eight hundred fifty-eight of the general municipal
    35  law.
    36    (6)  Notwithstanding  any other provision of law to the contrary, as a
    37  condition of the license to operate  a  video  lottery  gaming  facility
    38  located  in  the town of Woodbury, county of Orange, such operator shall
    39  provide an annual certification to the New York state gaming  commission
    40  that the staffing levels at a commercial gaming facility located in zone
    41  two,  region one pursuant to section thirteen hundred ten of the racing,
    42  pari-mutuel wagering and  breeding  law  (or  any  successor  commercial
    43  gaming  facility  located  in said region) are no less than one thousand
    44  four hundred thirteen full-time, permanent employees. In furtherance  of
    45  and  without  limiting  the  foregoing,  the licensee for the commercial
    46  gaming facility located in zone two,  region  one  pursuant  to  section
    47  thirteen  hundred  ten  of the racing, pari-mutuel wagering and breeding
    48  law (or any successor commercial gaming facility located in such region)
    49  shall not conduct any mass, involuntary layoff events that would trigger
    50  worker adjustment and retraining notification (WARN)  act  notifications
    51  pursuant  to  article twenty-five-A of the labor law or otherwise result
    52  in the employment levels at such facility dropping below levels mandated
    53  by this section. For purposes of  this  section,  "full-time,  permanent
    54  employee"  shall  mean  an employee who has worked at the facility for a
    55  minimum of thirty-five hours per week for not less than four consecutive
    56  weeks and who is entitled to receive  the  usual  and  customary  fringe

        A. 8417--A                          4

     1  benefits extended to other employees with comparable rank and duties; or
     2  two  part-time  employees who have worked at the facility for a combined
     3  minimum of thirty-five hours per week for not less than four consecutive
     4  weeks  and  who  are  entitled to receive the usual and customary fringe
     5  benefits extended to other employees with comparable rank and duties.
     6    (7) Notwithstanding any other provision of law to the contrary,  as  a
     7  condition  of  the  license  to  operate a video lottery gaming facility
     8  located in the town of Woodbury, county of Orange, such  operator  shall
     9  maintain  assistance  payments  made pursuant to section fifty-four-l of
    10  the state finance law to the village of Monticello, Sullivan county, the
    11  town of Thompson, Sullivan county, and Sullivan  county.  Payments  made
    12  pursuant  to  this  paragraph shall be made quarterly at the same dollar
    13  level realized by such municipalities in two thousand  eighteen,  to  be
    14  adjusted  annually  pursuant  to changes in the consumer price index for
    15  all urban consumers, as published annually by the United States  depart-
    16  ment  of  labor  bureau of labor statistics.  As an additional condition
    17  for such license, such  operator  shall  maintain  additional  quarterly
    18  assistance  payments  to  Sullivan county in annualized amounts equal to
    19  the sales taxes paid to such county by the operator  of  the  commercial
    20  gaming  facility  located  in  zone  two, region one pursuant to section
    21  thirteen hundred ten of the racing, pari-mutuel  wagering  and  breeding
    22  law (or any successor commercial gaming facility located in said region)
    23  in  the  year two thousand eighteen, to be adjusted annually pursuant to
    24  changes in  the  consumer  price  index  for  all  urban  consumers,  as
    25  published  annually  by  the United States department of labor bureau of
    26  labor statistics.
    27    (8) Notwithstanding any other provision of law  to  the  contrary,  no
    28  license  shall  be granted to operate a video gaming facility located in
    29  the town of Woodbury, county of Orange, prior  to  the  execution  of  a
    30  memorandum  of  understanding  between  such  operator and the county of
    31  Sullivan, which shall be approved by passage  of  a  resolution  of  the
    32  Sullivan  county  legislature.  Such  memorandum  of understanding shall
    33  include, but not be limited  to,  terms  that  provide  for  a  one-time
    34  payment  in  the amount of one million dollars from such operator to the
    35  county of Sullivan, in addition to any other terms.
    36    § 5. Section 54-l of the state finance law is amended by adding a  new
    37  subdivision 5 to read as follows:
    38    5.  Notwithstanding  any  other  provision of law to the contrary, all
    39  municipalities within which the facility referenced in paragraph five of
    40  subdivision a of section sixteen hundred seventeen-a of the tax  law  is
    41  located,  shall  be eligible for state assistance to eligible cities and
    42  eligible municipalities pursuant to  this  section;  provided,  however,
    43  that  if  such  facility  is located within the geographic boundaries of
    44  more than one village, each such village shall receive an  equal  amount
    45  of  state assistance pursuant to this section.  State assistance awarded
    46  to such cities and municipalities shall not be less than  three  million
    47  dollars  per  award  regardless  of the number of such cities or munici-
    48  palities receiving such award.
    49    § 6. This act shall take effect immediately; provided,  however,  that
    50  no  video  lottery gaming may be conducted at any facility within Orange
    51  county unless and until the mitigation agreement required by this act is
    52  executed by all parties and approved by the gaming commission.
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