S T A T E   O F   N E W   Y O R K
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                                    165
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced by M. of A. SOLAGES, PRETLOW -- read once and referred to the
   Committee on Ways and Means
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02033-01-3
 A. 165                              2
 
 the  purpose  of  funding  project costs for the Belmont Racetrack reno-
 vation project and other state costs associated with such  project.  The
 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.
 A. 165                              3
 
   § 4. Contemporaneously with the state entering  into  agreements  with
 regards  to  issuing the bonds described in section one of this act, 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
 A. 165                              4
 
 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
 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.