senate Bill S2888C

Increases the minimum percentage collected by the municipal governments hosting the facility

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 03 / Feb / 2011
    • REFERRED TO FINANCE
  • 03 / May / 2011
    • AMEND AND RECOMMIT TO FINANCE
  • 03 / May / 2011
    • PRINT NUMBER 2888A
  • 17 / Oct / 2011
    • AMEND AND RECOMMIT TO FINANCE
  • 17 / Oct / 2011
    • PRINT NUMBER 2888B
  • 04 / Jan / 2012
    • REFERRED TO FINANCE
  • 24 / Apr / 2012
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 24 / Apr / 2012
    • PRINT NUMBER 2888C

Summary

Increases the minimum percentage collected by the municipal governments hosting the facility.

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Bill Details

Versions:
S2888
S2888A
S2888B
S2888C
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
State Finance Law
Laws Affected:
Amd §99-h, St Fin L
Versions Introduced in 2009-2010 Legislative Cycle:
S1226

Sponsor Memo

BILL NUMBER:S2888C

TITLE OF BILL:
An act to amend the state finance law and the executive law, in relation
to authorizing municipal governments hosting tribal casinos to receive
payments directly from Native American nations or tribes; and in
relation to Tribal-state compact revenue accounts

PURPOSE OR GENERAL IDEA OF BILL:
To increase to 50% from 25% the minimum percentage of the net drop from
electronic gaming devices municipal host facilities receive ("local
slots revenue") from the state pursuant to compact; and to allow direct
reimbursements or payments to municipal governments that host such
facilities

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new subdivision 2-a to State Finance Law § 99-h requir-
ing any host community receiving funds pursuant to a tribal-state
compact directly from a Native American nation or tribe to inform the
State Comptroller of such payment within 7 days. It also makes it clear
that any such payments (1) satisfy the obligations of the Native Ameri-
can nation or tribe under the state-nation compact, and (2) that any
such payments made directly by a Native American nation or tribe to a
municipal government shall be deducted from the amounts the state would
otherwise be required to pay the municipality under SFL § 99-h.

Section 2 amends subdivision 2 of State Finance Law § 99-h to authorize
the payments of casino monies under a tribal-state compact directly to a
host municipality.

Section 3 amends subdivision 3 of State Finance Law § 99-h to increase
the percentage of money from 25% to 50% that the host municipalities of
Buffalo and Niagara, as well as Cattaraugus, Chautauqua and Allegany,
receive pursuant to the compact.

Section 4 adds new subdivisions d and e to § 12 of the Executive Law to
provide that any municipal government that hosts a tribal casino may
receive payments directly from a Native American nation or tribe. It
further provides that any such payments made shall be deemed to have
been made in satisfaction of the tribal-state compact, and provides that
all such payments are to be deducted from the amount the municipality
would otherwise receive under SFL § 99-h. The bill also provides that
any municipal government which receives payment pursuant to this section
shall utilize the funds received for purposes authorized under section
99-h of the state finance law,-the same purposes which would apply had
the payment had been channeled through the state.

Section 5 provides for an immediate effective date.

JUSTIFICATION:

Under current law, municipalities such as the cities of Niagara and
Buffalo that host Indian gaming facilities are only entitled to receive
a minimum 25% of the state's total takeout from the net drop of elec-
tronic gaming devices. The state, on the other hand, is reaping the vast
majority of the revenue (the remaining 75%). Put in the simplest terms,
host municipalities are being shortchanged.

Given the amount of construction and development underway in Niagara,
Buffalo and surrounding areas, it becomes clear that more funds from the
casino must be directed to host municipalities to help offset the burden
on the taxpayers who live in these areas who are otherwise shouldering
these costs. This bill would therefore increase the minimum percentage
of the net drop received by host municipalities from 25% to 50%.

Additionally, the State of New York and the Seneca Nation of Indians are
currently in a dispute over the terms of the State-Nation gaming
compact. As a result, the Seneca Nation Tribal Council recently voted to
stop making payments to the state under the state-nation gaming compact,
claiming that the state has breached the agreement, which gives the
Seneca Nation exclusive rights to operate gaming facilities in Western
New York.

Unfortunately, the municipalities hosting the Seneca Nation's casinos
have become innocent victims of this dispute, since a portion of the
funds generated at those casinos ultimately go to the municipalities
that host them. Those funds are being denied to the host municipalities
while New York State and the Seneca Nation try to resolve their differ-
ences, meaning that the local governments are not receiving necessary
funds that they are otherwise entitled to and desperately need in these
difficult economic times.

This legislation represents a compromise to avoid economic harm to host
communities. It authorizes a Native American nation or tribe, such as
the Seneca Nation of Indians, to pay host municipalities directly while
they work with New York State to resolve their differences.

Where a Native American nation or tribe makes direct payments to a host
municipality, the bill requires the host municipality to notify the
State Comptroller in order to ensure that the nation or tribe receives
credit from the State for making such payments. It also provides that
any municipality receiving direct payments would have such amounts
deducted from the amounts they would otherwise be due from the State.

By altering state law to permit direct payments from a Native American
Casino to a host community, this legislation is intended to protect host
municipalities and the residents of these communities. Its enactment
into law will ensure that they do not suffer while the State and a
Native American nation or tribe resolve a dispute that the host munici-
pality is not a party to.

This compromise will protect the Western New York economy by ensuring
that payments due as a result of locally generated casino dollars are

not held up due to the inability of the state's leadership in Albany to
resolve their dispute over the terms of the gaming compact with the
Seneca Nation of Indians.

PRIOR LEGISLATIVE HISTORY:
Similar to S.1226 of 2009/10 (Advanced to Third Reading) and S.866 of
2011/12

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2888--C

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 3, 2011
                               ___________

Introduced  by  Sens. GRISANTI, MAZIARZ, YOUNG -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Finance
  --  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 commit-
  tee -- recommitted to the Committee  on  Finance  in  accordance  with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the state finance law and the executive law, in relation
  to authorizing municipal governments hosting tribal casinos to receive
  payments directly from Native  American  nations  or  tribes;  and  in
  relation to Tribal-state compact revenue accounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 2 of section 99-h of the state finance law, as
amended by chapter 747 of the laws of 2006, is amended and a new  subdi-
vision 2-a is added to read as follows:
  2.  Such  account shall consist of all revenues resulting from tribal-
state compacts executed pursuant to article two of the executive law and
a tribal-state compact with the St. Regis Mohawk tribe executed pursuant
to chapter five hundred ninety of the laws of two  thousand  four,  LESS
ANY  PAYMENTS MADE DIRECTLY BY A NATIVE AMERICAN NATION OR TRIBE, PURSU-
ANT TO SUBDIVISION TWO-A OF THIS SECTION, TO  ANY  MUNICIPAL  GOVERNMENT
THAT HOSTS A TRIBAL CASINO.
  2-A.  A  MUNICIPAL  GOVERNMENT  THAT HOSTS A TRIBAL CASINO MAY RECEIVE
PAYMENTS DIRECTLY FROM A NATIVE  AMERICAN  NATION  OR  TRIBE;  PROVIDED,
HOWEVER,  THAT  THE  CHIEF  FISCAL  OFFICER  OF THE MUNICIPAL GOVERNMENT
SHALL, WITHIN SEVEN DAYS OF THE RECEIPT OF  SUCH  PAYMENTS,  NOTIFY  THE
STATE  COMPTROLLER THAT SUCH PAYMENTS HAVE BEEN RECEIVED BY SUCH MUNICI-
PAL GOVERNMENT. ALL PAYMENTS RECEIVED BY ANY MUNICIPAL  GOVERNMENT  THAT
HOSTS  A TRIBAL CASINO SHALL BE DEEMED TO HAVE BEEN MADE IN SATISFACTION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07932-05-2

S. 2888--C                          2

OF THE PROVISIONS OF THE TRIBAL-STATE COMPACT EXECUTED PURSUANT TO ARTI-
CLE TWO OF THE EXECUTIVE LAW AND A TRIBAL-STATE  COMPACT  WITH  THE  ST.
REGIS  MOHAWK  TRIBE EXECUTED PURSUANT TO CHAPTER FIVE HUNDRED NINETY OF
THE  LAWS OF TWO THOUSAND FOUR, AND SUCH PAYMENTS SHALL BE DEDUCTED FROM
THOSE AMOUNTS THE STATE IS REQUIRED TO MAKE TO SUCH MUNICIPAL GOVERNMENT
PURSUANT TO SUBDIVISION THREE OR FOUR THIS SECTION.
  S 2. Subdivision 2 of section  99-h  of  the  state  finance  law,  as
amended  by  section  1  of part V of chapter 59 of the laws of 2006, is
amended and a new subdivision 2-a is added to read as follows:
  2. Such account shall consist of all revenues resulting  from  tribal-
state compacts executed pursuant to article two of the executive law and
a tribal-state compact with the St. Regis Mohawk tribe executed pursuant
to  chapter  five  hundred ninety of the laws of two thousand four, LESS
ANY PAYMENTS MADE DIRECTLY BY A NATIVE AMERICAN NATION OR TRIBE,  PURSU-
ANT  TO  SUBDIVISION  TWO-A OF THIS SECTION, TO ANY MUNICIPAL GOVERNMENT
THAT HOSTS A TRIBAL CASINO.
  2-A. A MUNICIPAL GOVERNMENT THAT HOSTS A  TRIBAL  CASINO  MAY  RECEIVE
PAYMENTS  DIRECTLY  FROM  A  NATIVE  AMERICAN NATION OR TRIBE; PROVIDED,
HOWEVER, THAT THE CHIEF  FISCAL  OFFICER  OF  THE  MUNICIPAL  GOVERNMENT
SHALL,  WITHIN  SEVEN  DAYS  OF THE RECEIPT OF SUCH PAYMENTS, NOTIFY THE
STATE COMPTROLLER THAT SUCH PAYMENTS HAVE BEEN RECEIVED BY SUCH  MUNICI-
PAL  GOVERNMENT. ALL PAYMENTS DIRECTLY RECEIVED BY ANY MUNICIPAL GOVERN-
MENT THAT HOSTS A TRIBAL CASINO SHALL BE DEEMED TO  HAVE  BEEN  MADE  IN
SATISFACTION  OF  THE  TRIBAL-STATE COMPACT EXECUTED PURSUANT TO ARTICLE
TWO OF THE EXECUTIVE LAW AND A TRIBAL-STATE COMPACT WITH THE  ST.  REGIS
MOHAWK  TRIBE  EXECUTED  PURSUANT  TO CHAPTER FIVE HUNDRED NINETY OF THE
LAWS OF TWO THOUSAND FOUR, AND SUCH  PAYMENTS  SHALL  BE  DEDUCTED  FROM
THOSE PAYMENTS THE STATE IS REQUIRED TO MAKE TO THE MUNICIPAL GOVERNMENT
PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  S  3.  Subdivision  3  of  section  99-h  of the state finance law, as
amended by section 1 of part W of chapter 60 of the  laws  of  2011,  is
amended to read as follows:
  3.  Moneys of the account, following the segregation of appropriations
enacted by the legislature, shall be available  for  purposes  including
but  not limited to: (a) reimbursements or payments to municipal govern-
ments that host tribal casinos pursuant to a  tribal-state  compact  for
costs  incurred  in connection with services provided to such casinos or
arising as a result thereof, for economic development opportunities  and
job expansion programs authorized by the executive law; provided, howev-
er,  that  for  any  gaming facility located in the city of Buffalo, the
city of Buffalo shall receive a minimum of [twenty-five]  FIFTY  percent
of  the  negotiated  percentage  of  the net drop from electronic gaming
devices the state receives pursuant to the compact, and provided further
that for any gaming facility located in the city of Niagara Falls, coun-
ty of Niagara a minimum of [twenty-five] FIFTY percent of the negotiated
percentage of the net drop from  electronic  gaming  devices  the  state
receives pursuant to the compact shall be distributed in accordance with
subdivision  four  of  this  section,  and provided further that for any
gaming facility located in the county or counties of Cattaraugus,  Chau-
tauqua  or  Allegany, the municipal governments of the state hosting the
facility shall collectively receive a  minimum  of  [twenty-five]  FIFTY
percent  of  the  negotiated  percentage of the net drop from electronic
gaming devices the state receives pursuant to the compact; and  provided
further  that pursuant to chapter five hundred ninety of the laws of two
thousand four, a minimum of twenty-five percent of the revenues received
by the state pursuant to the state's compact with the St.  Regis  Mohawk

S. 2888--C                          3

tribe  shall  be  made  available  to  the  counties of Franklin and St.
Lawrence, and affected towns in such counties. Each such county and  its
affected  towns shall receive fifty percent of the moneys made available
by  the  state;  and  (b) support and services of treatment programs for
persons suffering from gambling addictions. Moneys  not  segregated  for
such  purposes  shall be transferred to the general fund for the support
of government during the fiscal year in which they are received.
  S 4. Section 12 of the executive law is  amended  by  adding  two  new
subdivisions (d) and (e) to read as follows:
  (D)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY MUNICIPAL GOVERN-
MENT THAT HOSTS GAMING AND RELATED FACILITIES OF THE NATION MAY  RECEIVE
PAYMENTS  DIRECTLY  FROM  THE  NATION  PURSUANT  TO SUBDIVISION TWO-A OF
SECTION NINETY-NINE-H OF THE STATE FINANCE  LAW,  AS  ADDED  BY  CHAPTER
THREE HUNDRED EIGHTY-THREE OF THE LAWS OF TWO THOUSAND ONE. ANY PAYMENTS
MADE  BY  THE  NATION  DIRECTLY  TO  ANY MUNICIPAL GOVERNMENT THAT HOSTS
GAMING AND RELATED FACILITIES PURSUANT  TO  THIS  SUBDIVISION  SHALL  BE
DEEMED  TO  HAVE  BEEN  MADE  IN  SATISFACTION  OF THE COMPACT, AND SUCH
PAYMENTS SHALL BE DEDUCTED FROM THE AMOUNTS THE STATE IS REQUIRED TO PAY
SUCH MUNICIPAL GOVERNMENT PURSUANT TO SUBDIVISION THREE OR FOUR OF  SUCH
SECTION NINETY-NINE-H.
  (E) ANY MUNICIPAL GOVERNMENT RECEIVING PAYMENT PURSUANT TO SUBDIVISION
(D) OF THIS SECTION SHALL BE AUTHORIZED TO EXPEND SUCH FUNDS IN THE SAME
MANNER  AS  IF  SUCH PAYMENT HAD BEEN MADE BY THE STATE TO THE MUNICIPAL
GOVERNMENT  PURSUANT  TO  SUBDIVISIONS  THREE  AND   FOUR   OF   SECTION
NINETY-NINE-H OF THE STATE FINANCE LAW.
  S  5.  This act shall take effect immediately; provided, however, that
the amendments to subdivision 2 of section 99-h  of  the  state  finance
law, made by section one of this act, shall be subject to the expiration
and  reversion  of  such section pursuant to section 2 of chapter 747 of
the laws of 2006, when upon such date the provisions of section  two  of
this  act  shall  take  effect provided, further, that the amendments to
subdivision 3 of section 99-h of the state finance law made  by  section
three of this act shall not affect the expiration of such subdivision as
provided  in  section  3 of part W of chapter 60 of the laws of 2011 and
shall be deemed to expire therewith; provided, however, that the  amend-
ments  to subdivision 3 of section 99-h of the state finance law made by
section three of this act  shall  not  affect  the  expiration  of  such
section  as provided in section 2 of chapter 747 of the laws of 2006 and
shall be deemed to expire therewith.

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