S T A T E O F N E W Y O R K
________________________________________________________________________
1500
2011-2012 Regular Sessions
I N A S S E M B L Y
January 10, 2011
___________
Introduced by M. of A. TEDISCO -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the state finance law, in relation to the video lottery
gaming facilities aid formula
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 54-l of the state finance law, as amended by
section 1 of part KK of chapter 56 of the laws of 2009, is amended to
read as follows:
S 54-l. State assistance to eligible cities and eligible munici-
palities in which a video lottery gaming facility is located. 1. Defi-
nitions. When used in this section, unless otherwise expressly stated:
a. "Eligible city" shall mean (I) FOR THE FISCAL YEAR COMMENCING APRIL
FIRST, TWO THOUSAND SEVEN a city with a population equal to or greater
than one hundred twenty-five thousand and less than one million in which
a video lottery gaming facility is located [and operating as of January
first, two thousand nine] pursuant to section sixteen hundred seven-
teen-a of the tax law AND (II) FOR THE FISCAL YEAR COMMENCING APRIL
FIRST, TWO THOUSAND EIGHT AND FOR EACH STATE FISCAL YEAR THEREAFTER,
SHALL MEAN A CITY WITH A POPULATION EQUAL TO OR GREATER THAN ONE HUNDRED
TWENTY-FIVE THOUSAND IN WHICH A VIDEO LOTTERY GAMING FACILITY IS LOCATED
PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW.
b. "Eligible municipality" shall mean [(i) for the fiscal years
commencing April first, two thousand seven and April first, two thousand
eight] a county, city, town or village in which a video lottery gaming
facility is located pursuant to section sixteen hundred seventeen-a of
the tax law that is not located in a city with a population equal to or
greater than one hundred twenty-five thousand [and (ii) for the fiscal
year commencing April first, two thousand nine and for each state fiscal
year thereafter, shall mean a county, city, town or village in which a
video lottery gaming facility is located and operating as of January
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02069-01-1
A. 1500 2
first, two thousand nine pursuant to section sixteen hundred seventeen-a
of the tax law that is not located in a city with a population equal to
or greater than one hundred twenty-five thousand and which is located in
a county that has a poverty rate equal to or greater than fifty percent
of the New York state poverty rate].
c. "Estimated net machine income" shall mean the estimated full annual
value of total revenue wagered after payout for prizes for games known
as "video lottery gaming" as authorized under article thirty-four of the
tax law during the state fiscal year in which state aid payments are
made pursuant to subdivision two of this section.
d. "Population" shall mean population based on the most recent federal
decennial census.
[e. "Poverty rate" shall mean the percentage of individuals living
below the poverty level, as reported in the most recent federal decenni-
al census.]
2. Within amounts appropriated therefor, BEGINNING IN THE STATE FISCAL
YEAR COMMENCING APRIL FIRST, TWO THOUSAND SEVEN, AND IN EACH STATE
FISCAL YEAR THEREAFTER, an eligible city and an eligible municipality
shall receive a state aid payment as follows:
a. An eligible city shall receive[: (i) for the state fiscal years
commencing April first, two thousand seven and April first, two thousand
eight,] a state aid payment equal to three and one-half percent of the
"estimated net machine income" generated by a video lottery gaming
facility located in such eligible city. Such state aid payment shall not
exceed twenty million dollars per eligible city[; and (ii) for the state
fiscal year commencing April first, two thousand nine and for each state
fiscal year thereafter, an amount equal to the state aid payment
received in the state fiscal year commencing April first, two thousand
eight].
b. Eligible municipalities shall receive[: (i) for the state fiscal
years commencing April first, two thousand seven and April first, two
thousand eight,] a share of three and one-half percent of the "estimated
net machine income" generated by a video lottery gaming facility located
within such eligible municipality as follows: [(1)] (I) twenty-five
percent shall be apportioned and paid to the county; and [(2)] (II)
seventy-five percent shall be apportioned and paid on a pro rata basis
to eligible municipalities, other than the county, based upon the popu-
lation of such eligible municipalities. Such state aid payment shall not
exceed twenty-five percent of an eligible municipality's total expendi-
tures as reported in the statistical report of the comptroller in the
preceding state fiscal year pursuant to section thirty-seven of the
general municipal law[; and (ii) for the state fiscal year commencing
April first, two thousand nine and for each state fiscal year thereaft-
er: (1) for an eligible municipality which is located in a county that
has a poverty rate equal to or greater than seventy-five percent of the
New York state poverty rate, an amount equal to the state aid payment
received in the state fiscal year commencing April first, two thousand
eight; and (2) for an eligible municipality which is located in a county
that has a poverty rate less than seventy-five percent of the New York
state poverty rate, an amount equal to fifty percent of the state aid
payment received in the state fiscal year commencing April first, two
thousand eight].
3. a. State aid payments made to an eligible city pursuant to para-
graph a of subdivision two of this section shall be used to increase
support for public schools in such city.
A. 1500 3
b. State aid payments made to an eligible municipality pursuant to
paragraph b of subdivision two of this section shall be used by such
eligible municipality to: (i) defray local costs associated with a video
lottery gaming facility, or (ii) minimize or reduce real property taxes.
4. A. ON OR BEFORE JUNE FIRST OF EACH STATE FISCAL YEAR, BEGINNING IN
THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND NINE, AT THE
REQUEST OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE DIRECTOR OF
THE DIVISION OF THE LOTTERY SHALL TRANSMIT A SCHEDULE OF PAYMENTS
REQUIRED PURSUANT TO THIS SECTION TO THE DIRECTOR OF THE DIVISION OF THE
BUDGET. IN DETERMINING SUCH SCHEDULE OF PAYMENTS, THE DIRECTOR OF THE
DIVISION OF THE LOTTERY SHALL INCLUDE A RECONCILIATION OF THE STATE AID
PAID IN THE PRECEDING FISCAL YEAR. SUCH RECONCILIATION SHALL ADJUST FOR
THE DIFFERENCE BETWEEN THE STATE AID PAID IN THE PRECEDING FISCAL YEAR
AND WHAT THE STATE AID PAYMENT WOULD HAVE BEEN IF THE ACTUAL FULL ANNUAL
VALUE OF NET MACHINE INCOME HAD BEEN USED IN THE CALCULATION OF STATE
AID. SUCH RECONCILIATION SHALL BE SUBJECT TO THE MAXIMUM AMOUNTS IDENTI-
FIED IN SUBDIVISION TWO OF THIS SECTION FOR THE YEAR BEING RECONCILED.
B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN THE
EVENT ANY ELIGIBLE CITY OR ELIGIBLE MUNICIPALITY RECEIVES ANY PAYMENT
UNDER SUBDIVISION TWO OF THIS SECTION THAT HAS BEEN RECOMMENDED TO BE
RECONCILED BY THE DIRECTOR OF THE DIVISION OF THE LOTTERY AS SET FORTH
IN THIS SUBDIVISION, AND THE AMOUNTS PAYABLE PURSUANT TO SUBDIVISION TWO
OF THIS SECTION ARE INSUFFICIENT TO SUPPORT SUCH RECONCILIATION, THE
COMPTROLLER SHALL DEDUCT FROM ANY MONEYS PAYABLE TO SUCH ELIGIBLE CITY
OR ELIGIBLE MUNICIPALITY THE AMOUNT REQUIRED FOR SUCH RECONCILIATION
UPON RECEIPT OF A CERTIFICATION OF THE RECONCILIATION AMOUNT FROM THE
DIRECTOR OF THE DIVISION OF THE LOTTERY.
5. Payments of state aid pursuant to this section shall be made on or
before June thirtieth of each state fiscal year to the chief fiscal
officer of each eligible city and each eligible municipality on audit
and warrant of the state comptroller out of moneys appropriated by the
legislature for such purpose to the credit of the local assistance fund
in the general fund of the state treasury.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2009.