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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 - Dead) 2020-01-08 - referred to ways and means [A08417 Detail]

Download: New_York-2019-A08417-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8417

                               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

        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
    25  enhancement amount, as required by this subdivision, shall  be  paid  to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13351-07-9

        A. 8417                             2

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

        A. 8417                             3

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

        A. 8417                             4

     1    (7) Notwithstanding any other provision of law to the contrary,  as  a
     2  condition  of  the  license  to  operate a video lottery gaming facility
     3  located in the town of Woodbury, county of Orange, such  operator  shall
     4  maintain  assistance  payments  made pursuant to section fifty-four-l of
     5  the state finance law to the village of Monticello, Sullivan county, the
     6  town  of  Thompson,  Sullivan county, and Sullivan county. Payments made
     7  pursuant to this paragraph shall be made quarterly at  the  same  dollar
     8  level  realized in two thousand eighteen, to be adjusted annually pursu-
     9  ant to changes in the consumer price index for all urban  consumers,  as
    10  published  annually  by  the United States department of labor bureau of
    11  labor statistics.
    12    (8) Notwithstanding any other provision of law to the contrary,  as  a
    13  condition  of  the  license  to  operate a video lottery gaming facility
    14  located in the town of Woodbury, county of Orange, such  operator  shall
    15  execute a memorandum of understanding with the county of Sullivan, which
    16  shall be filed prior to approval of such license to operate by the state
    17  gaming commission, which shall include, but not be limited to terms that
    18  provide for a one-time payment in the amount of one million dollars from
    19  such operator to the county of Sullivan.
    20    §  5. Section 54-l of the state finance law is amended by adding a new
    21  subdivision 5 to read as follows:
    22    5. Notwithstanding any other provision of law  to  the  contrary,  all
    23  municipalities within which the facility referenced in paragraph five of
    24  subdivision  a  of section sixteen hundred seventeen-a of the tax law is
    25  located, shall be eligible for state assistance to eligible  cities  and
    26  eligible  municipalities  pursuant  to  this section; provided, however,
    27  that if such facility is located within  the  geographic  boundaries  of
    28  more  than  one village, each such village shall receive an equal amount
    29  of state assistance pursuant to this section.  State assistance  awarded
    30  to  such  cities and municipalities shall not be less than three million
    31  dollars per award regardless of the number of  such  cities  or  munici-
    32  palities receiving such award.
    33    §  6.  This act shall take effect immediately; provided, however, that
    34  no video lottery gaming may be conducted at any facility  within  Orange
    35  county unless and until the mitigation agreement required by this act is
    36  executed by all parties and approved by the gaming commission.
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