NY State Senate Bill 2017-S6919

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to racing, gaming and wagering
Oct 18, 2017	referred to rules

2017-S6919 (ACTIVE) - Details

Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §§1315 & 1301, RWB L; amd §862, Gen Muni L; add §2879-d, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2727
2021-2022: S1475
2023-2024: S3564

2017-S6919 (ACTIVE) - Summary

Prohibits the minimum capital investment for a gaming facility from including certain tax expenditures, disposition of publicly owned property, grants or loans awarded by all state and municipal granting bodies, and certain development assistance programs.

2017-S6919 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6919

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, the
general municipal law and the public authorities law, in relation to a
prohibition of certain financial assistance to gaming facilities

 
PURPOSE OR GENERAL IDEA OF BILL:

Prohibits Class III gaming facilities from using financial assistance,
as that term is defined in the bill, when calculating the minimal capi-
tal investment necessary to receive a gaming license in the state.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subdivision one of section 1315 of the RPWBL law to
add new language prohibiting the use of financial assistance in calcu-
lating the minimum capital investment necessary to receive a class III
gaming license from the state.

Section two amends section 1301 of the RPWBL to define the term "finan-
cial assistance."

Section three adds a new subdivision three to section 862 of the General
Municipal Law to prohibit financial assistance to class three gaming
facilities in the form of tax breaks or incentives.

Section four amends the Public Authorities Law by adding a new section
2879-d prohibiting assistance to gaming facilities by public authorities
and public benefit corporations.

 
JUSTIFICATION:

This bill prohibits private companies that apply for a Class III casino
gaming license from seeking state or local assistance - including tax
incentive programs, PILOT payments, or other tax breaks - when calculat-
ing the amount of capital investment that must be made as part of the
project. The bill also explicitly amends the Public Authorities law to
prohibit the issuance of tax breaks or other financial incentives to
companies authorized to construct class III gaming facilities by public
benefit corporations or their subsidiaries.

Several years ago following approval of a constitutional referendum to
permit casino gaming New York authorized the construction of up to seven
casinos throughout the state. Enabling legislation authorized casino
gaming along with the associated construction of new casinos in stages.
The first four casinos have either opened or are under construction. The
remaining three casino licenses cannot be issued for several more years
pursuant to state law.

At the time the enabling legislation was drafted it was not contemplated
that many of the companies seeking these licenses would turn to local
and state authorities for tax abatements on various parts of each indi-
vidual project. However, several casinos applied to local Industrial
Development Agencies for - and received - financial assistance. Taxpay-
ers should not be on the hook subsidizing casino construction through
tax abatement requests. This bill would prohibit these requests in the
future and make it explicit that companies should be fully capitalized
and have the funds necessary when applying for a casino license.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Potential to prevent loss of tax revenue to local municipalities by
prohibiting casinos to use these financial assistance programs

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S6919 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6919
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             October 18, 2017
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the racing, pari-mutuel wagering and breeding  law,  the
   general municipal law and the public authorities law, in relation to a
   prohibition of certain financial assistance to gaming facilities

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1315 of  the  racing,  pari-mutuel
 wagering  and breeding law, as added by chapter 174 of the laws of 2013,
 is amended to read as follows:
   1. The board shall establish the  minimum  capital  investment  for  a
 gaming  facility  by  zone and region. SUCH CAPITAL INVESTMENT SHALL NOT
 INCLUDE ANY FINANCIAL ASSISTANCE AS DEFINED IN SECTION THIRTEEN  HUNDRED
 ONE  OF  THIS  ARTICLE  FROM  THE  STATE,  ANY STATE OR LOCAL AUTHORITY,
 INCLUDING WITHOUT LIMITATION  LOCAL  DEVELOPMENT  CORPORATIONS,  OR  ANY
 POLITICAL  SUBDIVISIONS OF THE STATE. Such investment shall include, but
 not be limited to, a casino area, at least one  hotel  and  other  amen-
 ities;  and  provided further, that the board shall determine whether it
 will include the purchase or lease price of the land  where  the  gaming
 facility  will  be located or any infrastructure designed to support the
 site including, but not limited to, drainage, utility support, roadways,
 interchanges, fill and soil or  groundwater  or  surface  water  contam-
 ination  issues.  The board may consider private capital investment made
 previous to the  effective  date  of  this  section,  but  may,  in  its
 discretion,  discount a percentage of the investment made. Upon award of
 a gaming license by the commission, the applicant shall be  required  to
 deposit  ten percent of the total investment proposed in the application
 into an interest-bearing account.   Monies received from  the  applicant
 shall  be  held  in  escrow  until  the  final stage of construction, as
 detailed in the timeline of construction submitted with  the  licensee's
 application  and  approved  by the commission, at which time the deposit
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13531-02-7

 S. 6919                             2
 
 plus interest earned shall be returned to the applicant  to  be  applied
 for  the  final  stage.  Should  the applicant be unable to complete the
 gaming facility, the deposit shall be forfeited to the state.  In  place
 of a cash deposit, the commission may allow for an applicant to secure a
 deposit  bond  insuring that ten percent of the proposed capital invest-
 ment shall be forfeited to the state  if  the  applicant  is  unable  to
 complete the gaming facility.
   § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 18-a to read as follows:
   18-A.  "FINANCIAL  ASSISTANCE".  FINANCIAL  ASSISTANCE  MEANS: (A) TAX
 EXPENDITURES GIVEN AS AN INCENTIVE TO RECIPIENT BUSINESSES, NOT-FOR-PRO-
 FIT ORGANIZATIONS  AND  GOVERNMENT  ENTITIES  FOR  ECONOMIC  DEVELOPMENT
 PURPOSES;
   (B)  DISPOSITION  OF  ANY  PUBLICLY  OWNED PROPERTY FOR LESS THAN FAIR
 MARKET VALUE, WHICH SHALL BE DETERMINED BASED ON AN INDEPENDENT  ASSESS-
 MENT  ACCOUNTING  FOR  THE  HIGHEST REASONABLY PROJECTED GAMING FACILITY
 REVENUES;
   (C) GRANTS OR LOANS AWARDED BY ALL STATE AND MUNICIPAL GRANTING BODIES
 AND INDUSTRIAL DEVELOPMENT AGENCIES TO BUSINESSES, NOT-FOR-PROFIT ORGAN-
 IZATIONS AND GOVERNMENT ENTITIES FOR  CONSTRUCTION  OR  OPERATION  OF  A
 GAMING FACILITY; AND
   (D)  ALL  SUCCESSOR AND SUBSEQUENT DEVELOPMENT ASSISTANCE PROGRAMS AND
 TAX EXPENDITURES DESIGNED TO  PROMOTE  LARGE  BUSINESS  RELOCATIONS  AND
 EXPANSIONS.
   §  3.  Section 862 of the general municipal law is amended by adding a
 new subdivision 3 to read as follows:
   (3) NO FINANCIAL ASSISTANCE OF THE AGENCY SHALL  BE  PROVIDED  TO  ANY
 GAMING  FACILITY  AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING,
 PARI-MUTUEL WAGERING AND BREEDING LAW.
   § 4. The public authorities law is amended by  adding  a  new  section
 2879-d to read as follows:
   §  2879-D.  FINANCIAL  ASSISTANCE  TO  GAMING FACILITIES; PROHIBITION.
 EVERY PUBLIC AUTHORITY AND PUBLIC BENEFIT CORPORATION SHALL BE PROHIBIT-
 ED FROM PROVIDING ANY FINANCIAL ASSISTANCE AS DEFINED IN  SECTION  THIR-
 TEEN HUNDRED ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW TO
 ANY  GAMING  FACILITY  AUTHORIZED  PURSUANT  TO  ARTICLE THIRTEEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.   FOR  PURPOSES  OF  THIS
 SECTION,  "EVERY  PUBLIC AUTHORITY AND PUBLIC BENEFIT CORPORATION" SHALL
 INCLUDE  SUBSIDIARIES  AND  LOCAL  DEVELOPMENT  CORPORATIONS.   PROVIDED
 FURTHER THAT THE PROVISIONS OF THIS SECTION DO NOT GRANT OR DIMINISH ANY
 POWER  OR RIGHT TO REVIEW OR APPROVE CONTRACTS BEYOND OR FROM THAT WHICH
 THE COMPTROLLER MAY HAVE PURSUANT TO HIS OR HER AUTHORITY  TO  SUPERVISE
 THE ACCOUNTS OF PUBLIC AUTHORITIES.
   § 5. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S6919

Sponsored By

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

2017-S6919 (ACTIVE) - Details

2017-S6919 (ACTIVE) - Summary

2017-S6919 (ACTIVE) - Sponsor Memo

2017-S6919 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6919

Share this bill

Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

2017-S6919 (ACTIVE) - Details

2017-S6919 (ACTIVE) - Summary

2017-S6919 (ACTIVE) - Sponsor Memo

2017-S6919 (ACTIVE) - Bill Text download pdf

Comments