S T A T E O F N E W Y O R K
________________________________________________________________________
4409
2021-2022 Regular Sessions
I N A S S E M B L Y
February 4, 2021
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Ways and Means
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:
Section 1. Subclause 5 of clause (B) of subparagraph (ii) of paragraph
1 of subdivision b of section 1612 of the tax law, as amended by section
1 of part S of chapter 39 of the laws of 2019, is amended to read as
follows:
(5) [forty-nine] SIXTY-FOUR percent for a video lottery gaming facili-
ty authorized pursuant to paragraph [five] EIGHT of subdivision a of
section sixteen hundred seventeen-a of this article;
§ 2. Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 2 of part S of chapter 39 of the laws of 2019, is
amended to read as follows:
2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth in this subdivision. With the
exception of Aqueduct racetrack, a video lottery gaming facility author-
ized pursuant to paragraph [five] EIGHT of subdivision a of section
sixteen hundred seventeen-a of this article or a facility in the county
of Nassau or Suffolk operated by a corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and breed-
ing law, each such track shall dedicate a portion of its vendor fees,
received pursuant to clause (A), (B), (B-1), (B-2), (C), or (D) of
subparagraph (ii) of paragraph one of this subdivision, for the purpose
of enhancing purses at such track, in an amount equal to eight and
three-quarters percent of the total revenue wagered at the vendor track
after pay out for prizes. One percent of the gross purse enhancement
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06078-02-1
A. 4409 2
amount, as required by this subdivision, shall be paid to the gaming
commission to be used exclusively to promote and ensure equine health
and safety in New York. Any portion of such funding to the gaming
commission unused during a fiscal year shall be returned to the video
lottery gaming operators on a pro rata basis in accordance with the
amounts originally contributed by each operator and shall be used for
the purpose of enhancing purses at such track. One and one-half percent
of the gross purse enhancement amount at a thoroughbred track, as
required by this subdivision, shall be paid to an account established
pursuant to section two hundred twenty-one-a of the racing, pari-mutuel
wagering and breeding law to be used exclusively to provide health
insurance for jockeys. In addition, with the exception of Aqueduct race-
track, a video lottery gaming facility authorized pursuant to paragraph
[five] EIGHT of subdivision a of section sixteen hundred seventeen-a of
this article or a facility in the county of Nassau or Suffolk operated
by a corporation established pursuant to section five hundred two of the
racing, pari-mutuel wagering and breeding law, one and one-quarter
percent of total revenue wagered at the vendor track after pay out for
prizes, received pursuant to clause (A), (B), (B-1), (B-2), (C), or (D)
of subparagraph (ii) of paragraph one of this subdivision, shall be
distributed to the appropriate breeding fund for the manner of racing
conducted by such track.
Provided, further, that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed five years, with
the organization authorized to represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or to race
fewer dates than required herein.
§ 3. Subdivision h of section 1612 of the tax law, as amended by
section 3 of part S of chapter 39 of the laws of 2019, is amended to
read as follows:
h. As consideration for the operation of a video lottery gaming facil-
ity located in THE TOWN OF WOODBURY, COUNTY OF Orange [county], the
division shall cause the investment in the racing industry at the
following amount from the vendor fee to be paid as follows:
As amount to the horsemen for purses at a licensed racetrack in Sulli-
van county in an amount equal to eight and three-quarters percent of the
total revenue wagered at the video lottery gaming facility, after pay
out for prizes. The [facility located in Orange county, as defined in
paragraph five of subdivision a of section sixteen hundred seventeen-a
of this article shall pay to the] horsemen at a licensed racetrack IN
SULLIVAN COUNTY SHALL PAY TO THE HORSEMEN at A LICENSED RACETRACK AT
Yonkers racetrack an amount to maintain purses for such horsemen at the
same dollar levels realized in two thousand eighteen, to be adjusted by
the consumer price index for all urban consumers, as published annually
by the United States department of labor bureau of labor statistics. In
addition, one and one-quarter percent of total revenue wagered at the
video lottery gaming facility after pay out for prizes, received pursu-
ant to clause (B) of subparagraph (ii) of paragraph one of subdivision b
of this section, shall be distributed to the appropriate breeding fund
for the manner of racing conducted by such track. In no circumstance
shall net proceeds of the lottery, including the proceeds from video
lottery gaming, be used for the payment of non-lottery expenses of the
gaming commission, administrative or otherwise.
§ 4. Subdivision a of section 1617-a of the tax law is amended by
adding four new paragraphs 8, 9, 10 and 11 to read as follows:
A. 4409 3
(8) AT A FACILITY LOCATED IN THE TOWN OF WOODBURY, COUNTY OF ORANGE TO
BE OPERATED BY THE ENTITY OTHERWISE LICENSED TO OPERATE VIDEO LOTTERY
GAMING AT MONTICELLO RACETRACK, PROVIDED THAT: (I) SUCH LICENSED ENTITY
IS NO LONGER OPERATING VIDEO LOTTERY GAMING AT MONTICELLO RACETRACK AND
PROVIDED THAT MONTICELLO RACETRACK IS CONDUCTING RACING OPERATIONS; (II)
SUCH FACILITY IN THE TOWN OF WOODBURY, COUNTY OF ORANGE IS NOT SITED
WITHIN A THIRTY MILE RADIUS OF THE VIDEO LOTTERY GAMING FACILITY AT
YONKERS RACETRACK; AND (III) THE LICENSED ENTITY, ITS SUBSIDIARIES AND
AFFILIATES, INCLUDING THE ENTITY LICENSED TO OPERATE A COMMERCIAL GAMING
FACILITY IN SULLIVAN COUNTY, AND THE ENTITY LICENSED TO OPERATE VIDEO
LOTTERY GAMING AT YONKERS RACETRACK ENTER INTO A MITIGATION AGREEMENT,
TO BE APPROVED BY THE GAMING COMMISSION, WHICH SHALL INCLUDE, BUT NOT BE
LIMITED TO, TERMS THAT REQUIRE: (A) THE OPERATOR OF THE FACILITY IN THE
TOWN OF WOODBURY, COUNTY OF ORANGE TO MAKE AN ANNUAL PAYMENT TO THE
ENTITY LICENSED TO OPERATE VIDEO LOTTERY GAMING OR COMMERCIAL GAMING AT
YONKERS RACETRACK TO ACCOUNT FOR THE EFFECTS THAT SITING SUCH FACILITY
IN ORANGE COUNTY WOULD LIKELY HAVE ON THE GROSS GAMING REVENUE OF THE
ENTITY LICENSED TO OPERATE AT YONKERS RACETRACK; (B) EMPLOYMENT LEVELS
AT THE AFFECTED FACILITIES; AND (C) THAT UPON EXPIRATION OR TERMINATION
OF THE AGREEMENT, THE AUTHORITY TO OPERATE VIDEO LOTTERY GAMING IN
ORANGE COUNTY SHALL CEASE. NOTWITHSTANDING ANY OTHER PROVISION OF THIS
SUBDIVISION, AT NO TIME SHALL AN ENTITY OPERATING VIDEO LOTTERY GAMING
IN ORANGE COUNTY BE PERMITTED TO APPLY FOR OR RECEIVE A LICENSE TO OPER-
ATE A COMMERCIAL GAMING FACILITY IN THAT COUNTY. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, AT NO TIME SHALL AN ENTITY OPER-
ATING VIDEO LOTTERY GAMING IN THE TOWN OF WOODBURY, COUNTY OF ORANGE BE
PERMITTED TO ENTER INTO ANY AGREEMENT WITH, OR ACCEPT ANY BENEFIT FROM,
AN ENTITY AUTHORIZED PURSUANT TO ARTICLE EIGHTEEN-A OF THE GENERAL
MUNICIPAL LAW, INCLUDING BUT NOT LIMITED TO PAYMENTS IN LIEU OF TAXES
AUTHORIZED BY SECTION EIGHT HUNDRED FIFTY-EIGHT OF THE GENERAL MUNICIPAL
LAW.
(9) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AS A
CONDITION OF THE LICENSE TO OPERATE A VIDEO LOTTERY GAMING FACILITY
LOCATED IN THE TOWN OF WOODBURY, COUNTY OF ORANGE, SUCH OPERATOR SHALL
PROVIDE AN ANNUAL CERTIFICATION TO THE NEW YORK STATE GAMING COMMISSION
THAT THE STAFFING LEVELS AT A COMMERCIAL GAMING FACILITY LOCATED IN ZONE
TWO, REGION ONE PURSUANT TO SECTION THIRTEEN HUNDRED TEN OF THE RACING,
PARI-MUTUEL WAGERING AND BREEDING LAW (OR ANY SUCCESSOR COMMERCIAL
GAMING FACILITY LOCATED IN SAID REGION) ARE NO LESS THAN ONE THOUSAND
FOUR HUNDRED THIRTEEN FULL-TIME, PERMANENT EMPLOYEES. IN FURTHERANCE OF
AND WITHOUT LIMITING THE FOREGOING, THE LICENSEE FOR THE COMMERCIAL
GAMING FACILITY LOCATED IN ZONE TWO, REGION ONE PURSUANT TO SECTION
THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
LAW (OR ANY SUCCESSOR COMMERCIAL GAMING FACILITY LOCATED IN SUCH REGION)
SHALL NOT CONDUCT ANY MASS, INVOLUNTARY LAYOFF EVENTS THAT WOULD TRIGGER
WORKER ADJUSTMENT AND RETRAINING NOTIFICATION (WARN) ACT NOTIFICATIONS
PURSUANT TO ARTICLE TWENTY-FIVE-A OF THE LABOR LAW OR OTHERWISE RESULT
IN THE EMPLOYMENT LEVELS AT SUCH FACILITY DROPPING BELOW LEVELS MANDATED
BY THIS SECTION. FOR PURPOSES OF THIS SECTION, "FULL-TIME, PERMANENT
EMPLOYEE" SHALL MEAN AN EMPLOYEE WHO HAS WORKED AT THE FACILITY FOR A
MINIMUM OF THIRTY-FIVE HOURS PER WEEK FOR NOT LESS THAN FOUR CONSECUTIVE
WEEKS AND WHO IS ENTITLED TO RECEIVE THE USUAL AND CUSTOMARY FRINGE
BENEFITS EXTENDED TO OTHER EMPLOYEES WITH COMPARABLE RANK AND DUTIES; OR
TWO PART-TIME EMPLOYEES WHO HAVE WORKED AT THE FACILITY FOR A COMBINED
MINIMUM OF THIRTY-FIVE HOURS PER WEEK FOR NOT LESS THAN FOUR CONSECUTIVE
A. 4409 4
WEEKS AND WHO ARE ENTITLED TO RECEIVE THE USUAL AND CUSTOMARY FRINGE
BENEFITS EXTENDED TO OTHER EMPLOYEES WITH COMPARABLE RANK AND DUTIES.
(10) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AS A
CONDITION OF THE LICENSE TO OPERATE A VIDEO LOTTERY GAMING FACILITY
LOCATED IN THE TOWN OF WOODBURY, COUNTY OF ORANGE, SUCH OPERATOR SHALL
MAINTAIN ASSISTANCE PAYMENTS MADE PURSUANT TO SECTION FIFTY-FOUR-L OF
THE STATE FINANCE LAW TO THE VILLAGE OF MONTICELLO, SULLIVAN COUNTY, THE
TOWN OF THOMPSON, SULLIVAN COUNTY, AND SULLIVAN COUNTY. PAYMENTS MADE
PURSUANT TO THIS PARAGRAPH SHALL BE MADE QUARTERLY AT THE SAME DOLLAR
LEVEL REALIZED BY SUCH MUNICIPALITIES IN TWO THOUSAND TWENTY, TO BE
ADJUSTED ANNUALLY PURSUANT TO CHANGES IN THE CONSUMER PRICE INDEX FOR
ALL URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPART-
MENT OF LABOR BUREAU OF LABOR STATISTICS. AS AN ADDITIONAL CONDITION
FOR SUCH LICENSE, SUCH OPERATOR SHALL MAINTAIN ADDITIONAL QUARTERLY
ASSISTANCE PAYMENTS TO SULLIVAN COUNTY IN ANNUALIZED AMOUNTS EQUAL TO
THE SALES TAXES PAID TO SUCH COUNTY BY THE OPERATOR OF THE COMMERCIAL
GAMING FACILITY LOCATED IN ZONE TWO, REGION ONE PURSUANT TO SECTION
THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
LAW (OR ANY SUCCESSOR COMMERCIAL GAMING FACILITY LOCATED IN SAID REGION)
IN THE YEAR TWO THOUSAND EIGHTEEN, TO BE ADJUSTED ANNUALLY PURSUANT TO
CHANGES IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, AS
PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF LABOR BUREAU OF
LABOR STATISTICS.
(11) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO
LICENSE SHALL BE GRANTED TO OPERATE A VIDEO GAMING FACILITY LOCATED IN
THE TOWN OF WOODBURY, COUNTY OF ORANGE, PRIOR TO THE EXECUTION OF A
MEMORANDUM OF UNDERSTANDING BETWEEN SUCH OPERATOR AND THE COUNTY OF
SULLIVAN, WHICH SHALL BE APPROVED BY PASSAGE OF A RESOLUTION OF THE
SULLIVAN COUNTY LEGISLATURE. SUCH MEMORANDUM OF UNDERSTANDING SHALL
INCLUDE, BUT NOT BE LIMITED TO, TERMS THAT PROVIDE FOR A ONE-TIME
PAYMENT IN THE AMOUNT OF ONE MILLION DOLLARS FROM SUCH OPERATOR TO THE
COUNTY OF SULLIVAN, IN ADDITION TO ANY OTHER TERMS.
§ 5. Section 54-l of the state finance law is amended by adding a new
subdivision 6 to read as follows:
6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ALL
MUNICIPALITIES WITHIN WHICH THE FACILITY REFERENCED IN PARAGRAPH EIGHT
OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW
IS LOCATED, SHALL BE ELIGIBLE FOR STATE ASSISTANCE TO ELIGIBLE CITIES
AND ELIGIBLE MUNICIPALITIES PURSUANT TO THIS SECTION; PROVIDED, HOWEVER,
THAT IF SUCH FACILITY IS LOCATED WITHIN THE GEOGRAPHIC BOUNDARIES OF
MORE THAN ONE VILLAGE, EACH SUCH VILLAGE SHALL RECEIVE AN EQUAL AMOUNT
OF STATE ASSISTANCE PURSUANT TO THIS SECTION. STATE ASSISTANCE AWARDED
TO SUCH CITIES AND MUNICIPALITIES SHALL NOT BE LESS THAN THREE MILLION
DOLLARS PER AWARD REGARDLESS OF THE NUMBER OF SUCH CITIES OR MUNICI-
PALITIES RECEIVING SUCH AWARD.
§ 6. This act shall take effect immediately; provided, however, that
no video lottery gaming may be conducted at any facility within Orange
county unless and until the mitigation agreement required by this act is
executed by all parties and approved by the gaming commission.