S T A T E   O F   N E W   Y O R K
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                                  6144--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 3, 2023
                                ___________
 
 Introduced  by  M.  of A. PRETLOW, LUPARDO, BUTTENSCHON -- read once and
   referred  to  the  Committee  on  Racing  and  Wagering  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
   relation to the tax on gaming revenues in certain  regions;  to  amend
   the  tax  law,  in relation to the additional vendor fee for a certain
   track located within Oneida county; and to amend part EE of chapter 59
   of the laws of 2019, amending the tax law relating to commissions paid
   to the operator of a video lottery facility, in relation to the effec-
   tiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1 of section 1351 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 1 of part OOO of  chap-
 ter 59 of the laws of 2021, is amended to read as follows:
   1.  (a)  For  a gaming facility in zone two, there is hereby imposed a
 tax on gross gaming revenues. The amount of such tax imposed shall be as
 follows; provided, however, should a licensee  have  agreed  within  its
 application  to  supplement  the  tax  with  a  binding supplemental fee
 payment exceeding the aforementioned tax rate, such tax and supplemental
 fee shall apply for a gaming facility:
   (1) in region two, forty-five percent of  gross  gaming  revenue  from
 slot  machines  and  ten  percent of gross gaming revenue from all other
 sources.
   (2) in region one, thirty-nine percent of gross  gaming  revenue  from
 slot  machines  and  ten  percent of gross gaming revenue from all other
 sources.
   (3) in region five, thirty-seven percent of gross gaming revenue  from
 slot  machines  and  ten  percent of gross gaming revenue from all other
 sources; PROVIDED HOWEVER, THAT IN THE TIOGA COUNTY  PORTION  OF  REGION

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09068-04-3
              

 A. 6144--A                          2
 
 FIVE, FOR THE PERIOD DURING WHICH BOTH OF THE FOLLOWING CRITERIA ARE MET
 (I)  ANY  FACILITY'S  TAX RATE IS ADJUSTED BY THE COMMISSION PURSUANT TO
 PARAGRAPH (B) OF THIS SUBDIVISION, AND  (II)  A  VENDOR  TRACK  THAT  IS
 LOCATED  WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN
 CLASS III GAMING FACILITY MAINTAINS AT LEAST SEVENTY  PERCENT  OF  FULL-
 TIME  EQUIVALENT  EMPLOYEES  AS  THEY  EMPLOYED IN THE YEAR TWO THOUSAND
 SIXTEEN, THE TAX RATE ON FACILITIES LOCATED IN THE TIOGA COUNTY  PORTION
 OF REGION FIVE SHALL BE THIRTY PERCENT OF GROSS GAMING REVENUE FROM SLOT
 MACHINES,  AND TEN PERCENT OF GROSS GAMING REVENUE FROM ALL OTHER SOURC-
 ES; AND PROVIDED FURTHER,  THAT  ANY  SUCH  FACILITY  SHALL  PROVIDE  AN
 INITIAL  REPORT TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPO-
 RARY PRESIDENT OF THE SENATE, AND THE COMMISSION DETAILING THE PROJECTED
 USE OF FUNDS  RESULTING  FROM  SUCH  TAX  ADJUSTMENT  AND  A  PLAN  THAT
 PRESCRIBES  THE  MANNER  IN WHICH THE LICENSED GAMING FACILITY RECEIVING
 THE REDUCTION IN ITS SLOT MACHINE TAX RATE WILL REBUILD  THEIR  ECONOMIC
 INFRASTRUCTURE  THROUGH  THE  REHIRING  OF  LAID-OFF  EMPLOYEES  OR  THE
 CREATION OF NEW JOBS. SUCH PLAN SHALL ALSO CLEARLY  ESTABLISH  QUARTERLY
 AND  ANNUAL  EMPLOYMENT  GOALS  OF  INCREASING FULL-TIME EMPLOYEES. SUCH
 INITIAL REPORT AND ACCOMPANYING PLAN SHALL BE DUE NINETY DAYS AFTER SUCH
 REDUCTION GOES INTO EFFECT. THEREAFTER, AN ANNUAL REPORT SHALL  BE  MADE
 TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF
 THE SENATE, AND THE COMMISSION DETAILING ACTUAL USE OF THE FUNDS RESULT-
 ING  FROM  SUCH  TAX  ADJUSTMENT.  SUCH REPORT SHALL INCLUDE, BUT NOT BE
 LIMITED TO, ANY IMPACT ON EMPLOYMENT LEVELS SINCE RECEIVING  THE  FUNDS,
 AN  ACCOUNTING  OF THE USE OF SUCH FUNDS, ANY OTHER MEASURES IMPLEMENTED
 TO IMPROVE THE FINANCIAL STABILITY OF THE GAMING FACILITY, AND ANY OTHER
 INFORMATION AS DEEMED NECESSARY BY THE COMMISSION. SUCH REPORT SHALL  BE
 DUE  NO LATER THAN THE FIRST DAY OF THE FOURTH QUARTER IN EACH YEAR SUCH
 TAX RATE HAS BEEN GRANTED.
   (b) (1) Notwithstanding the rates in paragraph (a)  of  this  subdivi-
 sion,  a  gaming  facility  may petition the commission to lower the tax
 rate applicable to its slot machines to no lower than thirty percent. In
 analyzing such request, the commission shall evaluate the petition using
 the following criteria:
   (i) the ability of the licensee to satisfy the  license  criterion  of
 financial stability absent the tax rate reduction;
   (ii)  a  complete examination of all financial projections, as well as
 gaming revenues generated for the prior annual period;
   (iii) the licensee's intended use of the funds resulting  from  a  tax
 adjustment;
   (iv)  the  inability  of  the operator to remain competitive under the
 current tax structure;
   (v) positions advanced by other  gaming  operators  in  the  state  in
 response to the petition;
   (vi) the impact on the competitive landscape;
   (vii)  other  economic  factors  such  as employment and the potential
 impact upon other businesses in the region; and
   (viii) the public interest to be served by a tax adjustment, including
 the impact upon the state in the event the operator is unable to  remain
 financially viable.
   (2)  The  commission shall report their recommendation solely based on
 the criteria listed in subparagraph one of this paragraph to the  direc-
 tor of the division of budget who will make a final approval.
   (3) (i) As a condition of the lower slot machine tax rate, such gaming
 facility shall provide an initial report to the governor, the speaker of
 the  assembly, the temporary president of the senate, and the commission
 A. 6144--A                          3
 
 detailing the projected use of funds resulting from such tax  adjustment
 and  a  plan  that  prescribes  the  manner in which the licensed gaming
 facility potentially receiving the reduction in  its  slot  machine  tax
 rate  will rebuild their economic infrastructure through the rehiring of
 laid-off employees or the creation of new jobs.  Such  plan  shall  also
 clearly  establish  quarterly  and annual employment goals of increasing
 full-time employees. Such initial report and accompanying plan shall  be
 due  at  the time a facility is granted a tax adjustment. Thereafter, an
 annual report shall be made to the governor, the speaker of  the  assem-
 bly, the temporary president of the senate, and the commission detailing
 actual use of the funds resulting from such tax adjustment.  Such report
 shall  include,  but  not be limited to, any impact on employment levels
 since receiving the funds, an accounting of the use of such  funds,  any
 other  measures  implemented  to  improve the financial stability of the
 gaming facility, any relevant information that helped  in  the  determi-
 nation  of  such  slot  tax rate reduction, and any other information as
 deemed necessary by the commission. Such report shall be  due  no  later
 than  the  first  day of the fourth quarter after such tax rate has been
 granted.
   (ii) (A) At the conclusion of each year, a  licensed  gaming  facility
 shall  provide  an  affirmation in writing to the commission stating the
 employment goal in clause (i) of this subparagraph was either met or not
 met as described in the initial report. If the licensed gaming  facility
 is  found  to  have  not adhered to the plan by the commission, then the
 applicable slot tax rate shall be adjusted  at  the  discretion  of  the
 commission as follows:
   1.  If  the  actual  employment number is more than fifty percent less
 than the employment goal, then the slot tax rate shall be  increased  by
 ten percentage points.
   2.  If  the  actual  employment number is more than forty percent less
 than the employment goal, then the slot tax rate shall be  increased  by
 eight percentage points.
   3.  If  the  actual employment number is more than thirty percent less
 than the employment goal, then the slot tax rate shall be  increased  by
 six percentage points.
   4.  If  the  actual employment number is more than twenty percent less
 than the employment goal, then the slot tax rate shall be  increased  by
 four percentage points.
   5.  If the actual employment number is more than ten percent less than
 the employment goal, then the slot tax rate shall be  increased  by  two
 percentage points.
   (B)  Such  finding and the reasoning thereof shall occur no later than
 thirty days following submission of the written affirmation.
   (iii) A licensed gaming facility may petition the commission to  lower
 the  tax  rate  applicable  to its slot machines to no lower than thirty
 percent no more than once annually after the effective date of the chap-
 ter of the laws of two thousand twenty-one which amended  this  subdivi-
 sion.  A  licensed gaming facility may request a revision to its plan in
 its initial report due to unforeseen circumstances.
   § 2. Clause (B) of subparagraph (iii) of paragraph 1 of subdivision  b
 of  section  1612  of  the  tax law, as added by section 1 of part EE of
 chapter 59 of the laws of 2019, is amended to read as follows:
   (B) for a vendor track that is located within  Oneida  county,  within
 fifteen miles of a Native American class III gaming facility, such addi-
 tional  vendor  fee  shall  be  six and four-tenths percent of the total
 revenue wagered at the vendor after payout for prizes pursuant  to  this
 A. 6144--A                          4
 
 chapter.  The  vendor track shall forfeit this additional vendor fee for
 any time period that the vendor track does not maintain at least  [nine-
 ty]  SEVENTY  percent of full-time equivalent employees as they employed
 in the year two thousand sixteen.
   §  3. Section 3 of part EE of chapter 59 of the laws of 2019, amending
 the tax law relating to commissions paid to  the  operator  of  a  video
 lottery facility, is amended to read as follows:
   § 3. This act shall take effect immediately; provided, however, clause
 (B)  of  subparagraph  (iii)  of paragraph 1 of subdivision b of section
 1612 of the tax law as added by section  one  of  this  act  shall  take
 effect  June  30, 2019 and shall expire and be deemed repealed March 31,
 [2023] 2027.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments to subdivision 1 of section 1351 of the racing, pari-mu-
 tuel wagering and breeding law made by section one of this act shall not
 affect the expiration and reversion of such  subdivision  and  shall  be
 expired  and  deemed repealed therewith; provided further, however, that
 the amendments to clause (B) of subparagraph (iii)  of  paragraph  1  of
 subdivision b of section 1612 of the tax law made by section two of this
 act  shall not affect the expiration and repeal of such clause and shall
 expire and be deemed repealed  therewith;  provided,  further,  notwith-
 standing  the  provisions  of article 5 of the general construction law,
 the provisions of clause (B) of subparagraph (iii)  of  paragraph  1  of
 subdivision  b of section 1612 of the tax law, as amended by section two
 of this act, are hereby revived and shall continue  in  full  force  and
 effect as such provisions existed on March 30, 2023.