Bill Text: NY S06525 | 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 5-0)

Status: (Introduced) 2019-06-20 - RECOMMITTED TO RULES [S06525 Detail]

Download: New_York-2019-S06525-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6525--B

                               2019-2020 Regular Sessions

                    IN SENATE

                                      June 14, 2019
                                       ___________

        Introduced  by  Sens. SKOUFIS, ADDABBO, METZGER, MAYER -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Rules  --  committee  discharged,  bill  amended, ordered reprinted as
          amended and recommitted to said  committee  --  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,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13351-08-9

        S. 6525--B                          2

     1  for the purpose of enhancing purses at such track, in an amount equal to
     2  eight and three-quarters percent of the total  revenue  wagered  at  the
     3  vendor  track  after  pay out for prizes. One percent of the gross purse
     4  enhancement  amount,  as  required by this subdivision, shall be paid to
     5  the gaming commission to be  used  exclusively  to  promote  and  ensure
     6  equine health and safety in New York. Any portion of such funding to the
     7  gaming  commission  unused during a fiscal year shall be returned to the
     8  video lottery gaming operators on a pro rata basis  in  accordance  with
     9  the  amounts  originally  contributed by each operator and shall be used
    10  for the purpose of enhancing purses at  such  track.  One  and  one-half
    11  percent  of  the gross purse enhancement amount at a thoroughbred track,
    12  as required by this subdivision, shall be paid to an account established
    13  pursuant to section two hundred twenty-one-a of the racing,  pari-mutuel
    14  wagering  and  breeding  law  to  be  used exclusively to provide health
    15  insurance for jockeys. In addition, with the exception of Aqueduct race-
    16  track, a video lottery gaming facility authorized pursuant to  paragraph
    17  five  of  subdivision  a  of section sixteen hundred seventeen-a of this
    18  article or a facility in the county of Nassau or Suffolk operated  by  a
    19  corporation  established  pursuant  to  section  five hundred two of the
    20  racing, pari-mutuel wagering  and  breeding  law,  one  and  one-quarter
    21  percent  of  total revenue wagered at the vendor track after pay out for
    22  prizes, received pursuant to clause (A),  (B),  (B-1),  (B-2),  (C),  or
    23  (D)[,  (E),  (F),  or (G)] of subparagraph (ii) of paragraph one of this
    24  subdivision, shall be distributed to the appropriate breeding  fund  for
    25  the manner of racing conducted by such track.
    26    Provided,  further,  that nothing in this paragraph shall prevent each
    27  track from entering into an agreement, not to exceed  five  years,  with
    28  the  organization  authorized  to  represent its horsemen to increase or
    29  decrease the portion of its vendor fee dedicated to enhancing purses  at
    30  such  track  during the years of participation by such track, or to race
    31  fewer dates than required herein.
    32    § 3. Subdivision h of section 1612 of the tax law, as amended by chap-
    33  ter 174 of the laws of 2013, is amended to read as follows:
    34    h. As consideration for  the  operation  of  a  video  lottery  gaming
    35  [resort]  facility  located  in  [Sullivan county] the town of Woodbury,
    36  county of Orange, the division shall cause the investment in the  racing
    37  industry  at  the  following  amount  from  the vendor fee to be paid as
    38  follows:
    39    As amount to the horsemen for purses at a licensed racetrack in Sulli-
    40  van county [and to the agriculture and New  York  state  horse  breeding
    41  development  fund to maintain racing support payments at the same dollar
    42  levels realized in two thousand thirteen, to be adjusted by the consumer
    43  price index for all urban consumers, as published annually by the United
    44  States department of labor bureau of  labor  statistics]  in  an  amount
    45  equal  to  eight and three-quarters percent of the total revenue wagered
    46  at the video lottery gaming facility, after  pay  out  for  prizes.  The
    47  horsemen  at  a  licensed  racetrack in Sullivan county shall pay to the
    48  horsemen at a licensed racetrack at Yonkers racetrack an amount to main-
    49  tain purses for such horsemen at the same dollar levels realized in  two
    50  thousand  eighteen,  to  be adjusted by the consumer price index for all
    51  urban consumers, as published annually by the United  States  department
    52  of  labor  bureau  of labor statistics. In addition, one and one-quarter
    53  percent of total revenue wagered at the video  lottery  gaming  facility
    54  after  pay  out  for prizes, received pursuant to clause (B) of subpara-
    55  graph (ii) of paragraph one of subdivision b of this section,  shall  be
    56  distributed  to  the  appropriate breeding fund for the manner of racing

        S. 6525--B                          3

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

        S. 6525--B                          4

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