S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9022--A
 
                             I N  S E N A T E
 
                                May 4, 2022
                                ___________
 
 Introduced  by Sens. KAPLAN, ADDABBO, COMRIE, KAMINSKY -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Racing,  Gaming  and  Wagering  -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to the disposition  of  certain
   revenue  with respect to debt incurred in the redevelopment project at
   Belmont Park racetrack; and to authorize the New York  Racing  Associ-
   ation,  Inc. to enter into a repayment agreement with the state of New
   York for payment of bonds issued by the state for  the  renovation  of
   Belmont Park
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that it  is  in
 the interests of the state to assist the franchised corporation pursuant
 to  section 206 of the racing, pari-mutuel wagering and breeding law, in
 obtaining the financing the franchised  corporation  needs  to  renovate
 Belmont  Park.    The  legislature  further  finds that the cost of this
 project is anticipated to be four hundred fifty-five million dollars and
 that the state has the ability to issue personal  income  tax  or  state
 sales  tax  bonds  to generate such funds. The legislature further finds
 that authorizing access to this financing  will  enable  the  franchised
 corporation  to  make a major investment in Nassau County that will lead
 to new job opportunities and bolster the local economy.
   § 2. Issuance of certain bonds or notes. 1. Subject to the  provisions
 of  chapter  59  of the laws of 2000, and consistent with any agreements
 and leases between the franchised  corporation  designated  pursuant  to
 section 206 of the racing, pari-mutuel wagering and breeding law and the
 people  of  the  state of New York acting by and through the state fran-
 chise oversight board, but notwithstanding the provisions of  any  other
 law,  rule,  or  regulation to the contrary, the dormitory authority and
 the  urban  development  corporation  are  hereby  authorized  to  issue
 personal  income  tax or state sales tax bonds in one or more series for
 the purpose of funding project costs for  the  Belmont  Racetrack  reno-
 vation  project  and other state costs associated with such project. The
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15526-03-2
 S. 9022--A                          2
 
 aggregate principal amount of bonds authorized to be issued pursuant  to
 this  section  shall  not  exceed  four  hundred  fifty million dollars,
 excluding bonds issued to fund one or more debt service  reserve  funds,
 to  pay  costs  of  issuance of such bonds, and bonds or notes issued to
 refund or otherwise repay such bonds or notes previously issued.  Eligi-
 ble project costs may include, but not be limited to the cost of design,
 financing,  site investigations, site acquisition and preparation, demo-
 lition,  construction,  rehabilitation,  acquisition  of  machinery  and
 equipment,  and infrastructure improvements. Such bonds and notes of the
 dormitory authority and the urban development corporation shall not be a
 debt of the state, and the state shall not be liable thereon, nor  shall
 they  be  payable  out of any funds other than those appropriated by the
 state to the dormitory authority and the urban  development  corporation
 for  principal,  interest,  and  related  expenses pursuant to a service
 contract and such bonds and notes shall contain on the  face  thereof  a
 statement  to  such  effect.  Except  for purposes of complying with the
 internal revenue code, any interest income earned on bond proceeds shall
 only be used to pay debt service on such bonds.
   2. Notwithstanding any other provision of  law  to  the  contrary,  in
 order to assist the dormitory authority and the urban development corpo-
 ration  in undertaking the financing for project costs for Belmont Race-
 track renovation project and other  state  costs  associated  with  such
 project,  the  director of the budget is hereby authorized to enter into
 one or more service contracts with the dormitory authority and the urban
 development corporation, none of which  shall  exceed  thirty  years  in
 duration,  upon  such terms and conditions as the director of the budget
 and the dormitory authority and the urban development corporation agree,
 so as to annually provide to  the  dormitory  authority  and  the  urban
 development corporation, in the aggregate, a sum not to exceed the prin-
 cipal, interest, and related expenses required for such bonds and notes.
 Any service contract entered into pursuant to this section shall provide
 that  the  obligation  of  the  state to pay the amount therein provided
 shall not constitute a debt of the  state  within  the  meaning  of  any
 constitutional or statutory provision and shall be deemed executory only
 to  the  extent  of  monies  available  and  that  no liability shall be
 incurred by the state beyond the  monies  available  for  such  purpose,
 subject  to  annual appropriation by the legislature.  Any such contract
 or any payments made or to  be  made  thereunder  may  be  assigned  and
 pledged by the dormitory authority and the urban development corporation
 as security for its bonds and notes, as authorized by this section.
   §  3.  Prior  to,  and  as  a condition to the state issuing the bonds
 described in section two of this act, the franchised  corporation  shall
 enter  into an agreement with the state allowing the funds dedicated for
 capital expenditures of the franchised corporation pursuant to paragraph
 3 of subdivision f and paragraph 3 of subdivision f-1 of section 1612 of
 the tax law shall be directed to the state for  repayment  of  the  debt
 service  on  such bonds.  The franchised corporation shall further agree
 that should the  corporation  receive  statutory  payments  pursuant  to
 subdivision  three  of  section 1355 of the racing, pari-mutuel wagering
 and breeding law, enacted for the specific purpose of holding the  fran-
 chised  corporation  harmless for any loss of payments pursuant to para-
 graph 3 of subdivision f and paragraph 3 of subdivision f-1  of  section
 1612  of the tax law, these payments shall also be directed to the state
 for repayment of the debt service on such bonds.
   § 4. Contemporaneously with the state entering  into  agreements  with
 regards  to  issuing the bonds described in section one of this chapter,
 S. 9022--A                          3
 
 the state and the franchised corporation are authorized to enter into an
 agreement to determine how the franchised corporation should  relinquish
 its  leasehold  interest  in  real property located in South Ozone Park,
 commonly known as Aqueduct Racetrack, back to the state upon substantial
 completion of the renovation of Belmont Park.
   §  5.  The  New  York State Gaming Commission shall ensure that to the
 extent that the law allows for a franchise agreement with  a  franchisee
 other  than  the  franchised corporation, the term of any such franchise
 agreement awarded after the issuance of any bonds described  by  section
 two  of this act includes a provision by such franchisee that such fran-
 chisee will continue to pay the funds required by section three of  this
 act.
   §  6. The opening paragraph of paragraph 3 of subdivision f of section
 1612 of the tax law is designated subparagraph (i) and  a  new  subpara-
 graph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 OF THE ISSUANCE OF STATE PERSONAL INCOME  TAX  REVENUE  BONDS  OR  STATE
 SALES  TAX REVENUE BONDS RELATED TO THE REDEVELOPMENT PROJECT AT BELMONT
 PARK RACETRACK, THE AMOUNT PAYABLE TO  THE  FRANCHISED  CORPORATION  FOR
 CAPITAL  EXPENDITURES  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 DURING ANY STATE FISCAL YEAR SHALL INSTEAD BE DEPOSITED INTO  THE  STATE
 GENERAL  FUND  UP TO THE AMOUNT REQUIRED TO COVER ANY DEBT SERVICE COSTS
 INCURRED BY THE STATE IN RELATION TO SUCH DEBT DURING SUCH FISCAL  YEAR.
 ANY AMOUNT SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN ANY FISCAL
 YEAR  IN  EXCESS  OF THE ANNUAL DEBT SERVICE COSTS ON SUCH DEBT SHALL BE
 DEPOSITED IN THE ACCOUNT  OF  THE  FRANCHISED  CORPORATION  PURSUANT  TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH; PROVIDED, HOWEVER, THAT IN THE EVENT
 THE AMOUNT SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN ANY FISCAL
 YEAR  IS  LESS  THAN  THE  DEBT  SERVICE  COST  INCURRED BY THE STATE IN
 RELATION TO SUCH DEBT, THE DIFFERENCE SHALL BE ADDED TO THE AMOUNT TO BE
 DEPOSITED TO THE STATE GENERAL FUND IN THE FOLLOWING STATE  FISCAL  YEAR
 PURSUANT  TO THIS SUBPARAGRAPH. ONCE THE STATE HAS BEEN FULLY REIMBURSED
 FOR SUCH DEBT SERVICE COSTS RELATED  TO  THE  REDEVELOPMENT  PROJECT  AT
 BELMONT PARK RACETRACK, SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL APPLY.
   §  7.  The  opening  paragraph  of  paragraph  3 of subdivision f-1 of
 section 1612 of the tax law is designated subparagraph  (i)  and  a  new
 subparagraph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 OF THE ISSUANCE OF STATE PERSONAL INCOME  TAX  REVENUE  BONDS  OR  STATE
 SALES  TAX REVENUE BONDS RELATED TO THE REDEVELOPMENT PROJECT AT BELMONT
 PARK RACETRACK, THE AMOUNT PAYABLE TO  THE  FRANCHISED  CORPORATION  FOR
 CAPITAL  EXPENDITURES  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 DURING ANY STATE FISCAL YEAR SHALL INSTEAD BE DEPOSITED INTO  THE  STATE
 GENERAL  FUND  TO  THE EXTENT NECESSARY TO COVER, WHEN COMBINED WITH THE
 AMOUNT SET FORTH IN SUBPARAGRAPH (II) OF PARAGRAPH THREE OF  SUBDIVISION
 F  OF  THIS  SECTION,  ANY  DEBT  SERVICE COSTS INCURRED BY THE STATE IN
 RELATION TO SUCH DEBT DURING SUCH FISCAL YEAR. ANY AMOUNT SET  FORTH  IN
 SUBPARAGRAPH  (I)  OF  THIS  PARAGRAPH  IN  ANY  FISCAL  YEAR THAT, WHEN
 COMBINED WITH THE AMOUNT SET FORTH IN  SUBPARAGRAPH  (II)  OF  PARAGRAPH
 THREE  OF SUBDIVISION F OF THIS SECTION, IS IN EXCESS OF THE ANNUAL DEBT
 SERVICE COSTS ON SUCH DEBT SHALL BE DEPOSITED PURSUANT  TO  SUBPARAGRAPH
 (I)  OF  THIS PARAGRAPH; PROVIDED, HOWEVER, THAT IN THE EVENT THE AMOUNT
 SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN ANY FISCAL YEAR  WHEN
 COMBINED  WITH  THE  AMOUNT  SET FORTH IN SUBPARAGRAPH (II) OF PARAGRAPH
 THREE OF SUBDIVISION F OF THIS SECTION, IS LESS THAN  THE  DEBT  SERVICE
 COST  INCURRED  BY  THE  STATE  IN RELATION TO SUCH DEBT, THE DIFFERENCE
 S. 9022--A                          4
 
 SHALL BE ADDED TO THE AMOUNT TO BE DEPOSITED TO THE STATE  GENERAL  FUND
 IN  THE  FOLLOWING STATE FISCAL YEAR PURSUANT TO THIS SUBPARAGRAPH. ONCE
 THE STATE HAS BEEN FULLY REIMBURSED FOR SUCH DEBT SERVICE COSTS  RELATED
 TO THE REDEVELOPMENT PROJECT AT BELMONT PARK RACETRACK, SUBPARAGRAPH (I)
 OF THIS PARAGRAPH SHALL APPLY.
   § 8. This act shall take effect immediately.