Senate Bill S3419

                                 
BILL NUMBER: S3419

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the state finance law, in relation to comptroller over-
sight of tribal-state compacts prior to federal approval

 
PURPOSE:

This bill authorizes the Comptroller to review and provide a recommenda-
tion of approval of or modification to any tribal-state compact approved
or executed between the state, the governor (or his/her designee) and an
Indian nation or tribe.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new subdivision to Section 8 of Article 2 of the State
Finance Law which sets out the state Comptroller's duties. This section
would authorize the Comptroller to review and provide a recommendation
of approval of or modifications to any tribal-state compact approved or
executed between New York State, the Governor or his/her designee and an
              

Indian nation or tribe. This section would not affect the Governor's
existing authority under the state constitution and laws governing the
execution of tribal-state compacts, but requires that within 30 calendar
days of receipt of a compact, the Comptroller must review and either
recommend for approval or provide modifications of such compact before
it is sent for federal approval. The Comptroller would take several
factors into account when reviewing, including but not limited to,
1-whether proper procedures were followed by the governor or his or
designee and any other parties that have entered into a recusal agree-
ment if a recusal was warranted and/or occurred; 2-direct lobbying by
interested parties and continued compliance with any applicable recusal
agreements; 3-whether the agreement to revenue share between an Indian
nation or tribe and the state is commensurate with exclusivity value as
required by federal law; and 4-any other factor the comptroller deems
relevant.

Section 2 sets an immediate effective date.

 
JUSTIFICATION:

With the gaming compact between New York State and the Seneca Nation of
Indians set to expire at the end of this year, negotiations are underway
to renew or create a new compact for the Senecas to continue operating
casinos in Western New York.

It has been publicly reported that Governor Hochul has recused herself
from any negotiations between the State and the Seneca Nation. She is,
in fact, the Executive Branch and cannot fully recuse herself from ulti-
mate sign off on any compact that is negotiated, with or without her
involvement.

This bill would authorize the Comptroller to review and provide a recom-
mendation of approval of or modifications to any tribal-state compact
approved or executed between New York State, the Governor or his/her
designee and an Indian nation or tribe.


It would authorize the Comptroller the authority to consider several
factors when considering a recommendation for approval or modification.
When making his or her determination, the Comptroller would consider:
1-whether proper procedures were followed by the governor or his or
designee and any other parties that have entered into a recusal agree-
ment if a recusal was warranted and/or occurred; 2-direct lobbying by
interested parties and continued compliance with any applicable recusal
agreements; 3-whether the agreement to revenue share between an Indian
nation or tribe and the state is commensurate with exclusivity value as
required by federal law; and 4-any other factor the comptroller deems
relevant.

This bill would provide the necessary checks on the Governor's authority
to ensure a fair and equitable compact. This legislation will protect
both the Senecas' interests and the taxpayers of New York State

 
LEGISLATIVE HISTORY:

06/01/23 REFERRED TO FINANCE

01/03/24 REFERRED TO FINANCE

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediate.