Senate Bill S4289

                                 BILL NUMBER:  S4289

 TITLE OF BILL :  An act making an appropriation to the Finger Lakes
Racetrack and the New York state thoroughbred breeding and development
fund

 PURPOSE :

To ensure that the Finger Lakes Racetrack and the New York State
Thoroughbred Breeding and Development fund are made whole and
protected from anticipated reductions in VLT revenue as a result of
competition from a nearby casino.

 SUMMARY OF PROVISIONS :

Section 1- Appropriates $3 million-$2,625,000 to Finger Lakes
Racetrack and $375,000 to the New York State Thoroughbred Breeding and
Development fund.

Section 2- Sets forth the effective date

 JUSTIFICATION :

The Upstate New York Gaming Economic Development Act of 2013,
empowered the Gaming Commission through the The New York State Resort
Gaming Facility Location Board to site Casinos in various zones around
              

the state that were not impacted by Native American Exclusivity
arrangements. One of the successful applicants located in Region 5,
Zone 2 was Del Lago Casino. The selection of this site, fell outside
of the zone established in the law that would have guaranteed
mitigation payments from Del Lago to support racing at Finger, Lakes.
This bill is necessary because the State passed legislation to create
the siting process for casinos, the state siting board chose the
winners and therefore the state should be solely responsible for
mitigating any potential loss of revenue to Finger Lakes Racetrack and
The New York State Thoroughbred Breeding and Development Fund.
Businesses that follow the rules put in place by the state should not
be punished for having done so. Similarly, it is wrong, as some have
proposed to change the rules midstream and extend the distance
requirements to trigger mitigation payments in this case. That
approach could threaten the financing and business plan put in place
for one of the region's largest economic development projects that has
recently open and employs more than 1,400 people. The figure arrived
at in this bill is based on the siting board's finding that Del Lago
would, have a 21% first year impact on Video Lottery Terminal (VLT)
revenue from Finger Lakes.  Since Finger Lakes 2016 Revenue from VLT's
was $129 million and the share that would go to support the horsemen
funds is 10% (8.75 to purses and 1.25 to the Breeders fund), this bill
appropriates $3 million to make them whole this year, slightly more
than the formula would dictate. This is the fairest solution for all
involved as it ensures that two very important economic development
projects in the Finger Lakes Region are protected and that no one is
punished for having followed the rules set forth by the State.

 LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

This bill will cost the State $3 million

 EFFECTIVE DATE :
Immediate