NY State Senate Bill 2021-S1890

Archive: Last Bill Status - Stricken

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 19, 2021	recommit, enacting clause stricken
Jan 16, 2021	referred to racing, gaming and wagering

co-Sponsors

2021-S1890 (ACTIVE) - Details

Law Section:: Tax Law
Laws Affected:: Amd §§1612 & 1617-a, Tax L; rpld §54-l sub 5, amd §54-l, St Fin L
Versions Introduced in 2019-2020 Legislative Session:: S6525

2021-S1890 (ACTIVE) - Summary

Permits video lottery gaming in the town of Woodbury, county of Orange; designates vendor fees; requires a mitigation agreement.

2021-S1890 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1890

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the tax law and the state finance law, in relation to
video lottery gaming in the town of Woodbury; and to repeal certain
provisions of the state finance law relating thereto

 
PURPOSE:

To maintain the State video lottery gaming revenue previously coming
from video lottery gaming operations Monticello racetrack by authorizing
a video lottery gaming facility to be operated in Orange county by the
owner of Monticello racetrack. Also enhances existing racing support
payments and ensures the long-term continuation of harness racing at
Monticello racetrack, while providing for mitigation payments to the
operator of video lottery gaming operations at Yonkers racetrack.

 
SUMMARY OF PROVISIONS:

Section 1: Provides for a vendor fee of 46% for the new video lottery
gaming facility authorized by this act.

Section 2: Clarifies that the Orange county video lottery gaming facili-
ty is not a vendor track.

Section 3: Provides that, as consideration for being granted the author-
ization to operate the video lottery gaming facility in Orange county,
the operator of such facility shall provide racing support payments in
to Monticello racetrack (8.75% to purses and 1.25% to breeders) and to
Yonkers racetrack an amount to maintain purses for horsemen at the same
dollar levels realized in 2018, adjusted by the consumer price index for
urban consumers. Additionally, 1.25% of total revenue wagered at the
facility after pay out for prizes, shall be distributed to the appropri-
ate breeding fund for the manner of racing conducted by such track.

Section 4: Authorizes the Gaming Commission to issue a video lottery
gaming license to the entity that operated the video lottery gaming
facility at Monticello racetrack to operate a facility in Orange county
and: (a) prohibits such entity from operating a video lottery gaming
facility at both locations, (b) requires continued racing operations at
Monticello racetrack in order to ensure the long-term continuation of
harness racing at Monticello track; (c) requires such Orange county
facility to be at least 30 miles from the video lottery gaming facility
at Yonkers racetrack; (d) requires the operators of the Orange County
facility and the video lottery gaming facility at Yonkers racetrack to
enter into a mitigation agreement, to be approved by the gaming commis-
sion, that addresses, (i) a mitigation payment to the operator of the
video lottery gaming facility at Yonkers racetrack and (ii) the require-
ment of such mitigation to be in place in order to operate the facility
in Orange County.  Additionally, as the condition of the license to
operate a video lottery gaming facility in the Town of Woodbury, the
operators must maintain staffing levels at their commercial gaming
facility in Sullivan County at levels no less than 90% of the staffing
levels at the commercial gaming facility as of the end of t he third
quarter of 2019. The license operators must also maintain quarterly
assistance payments to the Village of Monticello, the Town of Thompson
and Sullivan County, at the same levels made in 2018 to be adjusted
annually pursuant to changes in the consumer price index for urban
consumers.

Section 5: Makes all municipalities within which the new video lottery
facility will be located in eligible for state assistance in accordance
with Section 54-1 of the state finance law.

Section 6: Effective date.

 
EXISTING LAW:

Tax Law sections 1612 and 1617-a authorize Monticello racetrack to oper-
ate VLT machines and distributes the net win from such machines as
follows:

* 41% vendor fee (less 10% in racing support payments for purses and
breeders);

* 39% State education aid; *10% marketing allowance;

* 10% gaming administration to the State Racing, Pari-Mutuel Wagering
and Breeding Law section 1351 provides a 39% tax on casino gross gaming
revenue (of which 80% is allocated to State education aid and 20% to
local tax relief).

 
JUSTIFICATION:

Montreign Operating Company, LLC d/b/a Resorts World Catskills and
Monticello Raceway Management, Inc., the owner/operator of Monticello
Casino and Raceway - together under the Empire Resorts corporate umbrel-
la - are Sullivan County's largest employer with over 1,600 employees.

To provide sustainability to the business, Empire Resorts seeks statuto-
ry authorization to relocate its current VLT allocation to a location
with a more stable revenue base. The proposal would authorize Monticello
Raceway to move its video lottery gaming facility to Orange County. This
will provide the State with incremental video lottery gaming revenue and
enhanced racing support payments and long-term continuation of harness
racing at Monticello racetrack.

This legislation relies on maintaining Monticello Raceways effective tax
rate in 2018 but seeks no tax breaks or additional incentives.  The
Orange County video lottery gaming facility would be restricted to a
site that is more than 30 miles from Yonkers racetrack in order to maxi-
mize revenue potential. This legislation also requires Empire Resorts to
enter into an agreement with MGM Yonkers in order to provide mitigation
payments to address projected revenue cannibalization.

 
FISCAL IMPLICATIONS:

The proposed video lottery gaming facility would contribute approximate-
ly $23M of incremental revenue directly to the State (for education and
administrative expenses of the gaming commission) and will result in
significant direct capital investment in Orange County with direct
employment of over 300 permanent jobs and additional construction and
induced jobs.

 
LEGISLATIVE HISTORY:
2020 - S.6525B Referred to Racing, Gaming, and Wagering Assembly

2020 - A8417A Referred to Ways and Means

 
EFFECTIVE DATE:
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.

2021-S1890 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1890
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by  Sens.  SKOUFIS, ADDABBO, MAYER -- read twice and ordered
   printed, and when printed to be committed to the Committee on  Racing,
   Gaming and Wagering
 
 AN  ACT  to  amend the tax law and the state finance law, in relation to
   video lottery gaming in the town of Woodbury; and  to  repeal  certain
   provisions of the state finance law relating thereto
 
   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 added 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 of subdivision a of section
 sixteen hundred seventeen-a of this article;
   § 2.  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] HORSEMEN AT A LICENSED RACETRACK
 in [Orange] SULLIVAN county,[ as defined in paragraph five  of  subdivi-
 sion a of section sixteen hundred seventeen-a of this article] 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06078-01-1

 S. 1890                             2
 
 all  urban consumers, as published annually by the United States depart-
 ment of labor bureau of labor statistics. In addition, one and one-quar-
 ter percent of total revenue wagered at the video lottery gaming facili-
 ty  after  pay  out  for  prizes,  received  pursuant  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, admin-
 istrative or otherwise.
   §  4. Paragraphs 5 and 6 of subdivision a of section 1617-a of the tax
 law, as added by section 4 of part S of chapter 39 of the laws of  2019,
 are  amended  and  two  new  paragraphs  8  and 9 are added   to read as
 follows:
   (5) At a facility located in THE TOWN OF WOODBURY,  COUNTY  OF  Orange
 [county]  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 Monticel-
 lo racetrack and provided that Monticello racetrack is conducting racing
 operations; (ii) such facility in THE TOWN OF WOODBURY, COUNTY OF Orange
 [county]  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  miti-
 gation  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 [county] 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  race-
 track;  (B)  employment  levels at the affected facilities; and (C) that
 upon expiration or termination of the agreement, the authority to  oper-
 ate  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 operate a commercial gaming facility in that
 county. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  AT
 NO  TIME  SHALL  AN ENTITY OPERATING 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 ARTI-
 CLE  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.
   (6)  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 [county], such opera-
 tor 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 seventy-three 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

 S. 1890                             3
 
 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  weeks and who are entitled to receive the
 usual and customary fringe benefits extended  to  other  employees  with
 comparable rank and duties.
   (8)  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 EIGHTEEN, 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.
   (9)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, NO
 LICENSE SHALL BE GRANTED TO OPERATE  A  VIDEO  LOTTERY  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. Subdivision 5 of  section  54-l  of  the  state  finance  law  is
 REPEALED and a new subdivision 5 is added to read as follows:
   5.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ALL
 MUNICIPALITIES WITHIN WHICH THE FACILITY REFERENCED IN PARAGRAPH FIVE 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

 S. 1890                             4
 
 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.

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Senate Bill S1890

Sponsored By

Archive: Last Bill Status - Stricken

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co-Sponsors

2021-S1890 (ACTIVE) - Details

2021-S1890 (ACTIVE) - Summary

2021-S1890 (ACTIVE) - Sponsor Memo

2021-S1890 (ACTIVE) - Bill Text download pdf

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Sponsored By

James Skoufis

Archive: Last Bill Status - Stricken

Actions

co-Sponsors

Joseph P. Addabbo Jr.

Shelley B. Mayer

2021-S1890 (ACTIVE) - Details

2021-S1890 (ACTIVE) - Summary

2021-S1890 (ACTIVE) - Sponsor Memo

2021-S1890 (ACTIVE) - Bill Text download pdf

Comments