Bill Text: NY S06525 | 2019-2020 | General Assembly | Amended

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 5-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO RACING, GAMING AND WAGERING [S06525 Detail]

Download: New_York-2019-S06525-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6525--A

                               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

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13351-06-9

        S. 6525--A                          2

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

        S. 6525--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: (i) the staffing levels at a commercial gaming facility located in
    41  zone  two,  region  one  pursuant to section thirteen hundred ten of the
    42  racing, pari-mutuel wagering and breeding law (or any successor  commer-
    43  cial  gaming  facility  located  in said region) are no less than ninety
    44  percent of staffing levels in effect at the end of the third quarter  of
    45  the year two thousand nineteen; and (ii) upon commencement of operations
    46  of  the  video  lottery gaming facility located in the town of Woodbury,
    47  county of Orange, the combined staffing levels at such facility and  the
    48  commercial  gaming  facility  located  in  zone  two, region one (or any
    49  successor commercial gaming facility located in region) are no less than
    50  ninety percent of combined staffing levels between  both  facilities  at
    51  the  end  of  the  third  quarter  of the year two thousand nineteen. In
    52  furtherance of and without limiting the  foregoing,  the  licensees  for
    53  such  facilities  shall  not conduct any mass, involuntary layoff events
    54  that would trigger worker adjustment and retraining notification  (WARN)
    55  act  notifications pursuant to article twenty-five-a of the labor law or

        S. 6525--A                          4

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