Bill Text: NY A03599 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to video lottery gaming located in Orange county.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A03599 Detail]

Download: New_York-2023-A03599-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          3599

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 3, 2023
                                       ___________

        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Ways and Means

        AN ACT to amend the tax law, in relation to video lottery gaming located
          in Orange county

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Subclause 5 of clause (B) of subparagraph (ii) of paragraph
     2  1 of subdivision b of section 1612 of the tax law, as added by section 1
     3  of  part  S  of  chapter  39  of the laws of 2019, is amended to read as
     4  follows:
     5    (5) [forty-nine] thirty percent for a video  lottery  gaming  facility
     6  authorized  pursuant  to  paragraph  five  of  subdivision  a of section
     7  sixteen hundred seventeen-a of this article;
     8    § 2. Subdivision h of section 1612 of  the  tax  law,  as  amended  by
     9  section  3  of  part  S of chapter 39 of the laws of 2019, is amended to
    10  read as follows:
    11    h. As consideration for the operation of a video lottery gaming facil-
    12  ity located in Orange county, the division shall cause the investment in
    13  the racing industry at the following amount from the vendor  fee  to  be
    14  paid as follows:
    15    As amount to the horsemen for purses at a licensed racetrack in Sulli-
    16  van county in an amount equal to eight and three-quarters percent of the
    17  total  revenue  wagered at [the] a video lottery gaming facility located
    18  in Orange county, after pay out for  prizes.  The  facility  located  in
    19  Orange  county, as defined in paragraph five of subdivision a of section
    20  sixteen hundred seventeen-a of this article shall pay to the horsemen at
    21  a licensed racetrack at Yonkers racetrack an amount to  maintain  purses
    22  for  such  horsemen  at  the same dollar levels realized in two thousand
    23  eighteen, to be adjusted by the  consumer  price  index  for  all  urban
    24  consumers,  as  published  annually  by  the United States department of
    25  labor bureau of labor  statistics.  In  addition,  one  and  one-quarter

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08336-01-3

        A. 3599                             2

     1  percent of total revenue wagered at [the] a video lottery gaming facili-
     2  ty  located in Orange county after pay out for prizes, received pursuant
     3  to clause (B) of subparagraph (ii) of paragraph one of subdivision b  of
     4  this  section, shall be distributed to the appropriate breeding fund for
     5  [the manner of] racing conducted by [such track] a racetrack located  in
     6  Sullivan  county.  In no circumstance shall net proceeds of the lottery,
     7  including the proceeds from  video  lottery  gaming,  be  used  for  the
     8  payment of non-lottery expenses of the gaming commission, administrative
     9  or otherwise.
    10    §  3. Paragraphs 5 and 6 of subdivision a of section 1617-a of the tax
    11  law, as added by section 4 of part S of chapter 39 of the laws of  2019,
    12  are amended to read as follows:
    13    (5) At a facility located in Orange county to be operated by the enti-
    14  ty  otherwise licensed to operate video lottery gaming at [Monticello] a
    15  racetrack in Sullivan county, provided that: (i) such licensed entity is
    16  no longer operating video lottery gaming  at  [Monticello]  a  racetrack
    17  located  in Sullivan county and provided that [Monticello] the racetrack
    18  located in Sullivan county is conducting racing  operations;  (ii)  such
    19  facility  in  Orange  county is not sited within a thirty mile radius of
    20  the video lottery gaming facility at [Yonkers] a  racetrack  located  in
    21  Westchester  county;  [and]  (iii) the licensed entity, its subsidiaries
    22  and affiliates, including the entity licensed to  operate  a  commercial
    23  gaming facility in Sullivan county, and Orange county enter into a miti-
    24  gation  agreement  to  be  paid  out  of the vendor fee for the facility
    25  located in Orange county, to be approved by the gaming commission;  (iv)
    26  the  licensed  entity,  its  subsidiaries  and affiliates, including the
    27  entity licensed to operate a  commercial  gaming  facility  in  Sullivan
    28  county, and the entity licensed to operate video lottery gaming at Yonk-
    29  ers  racetrack  and the statutorily recognized horsemen's association at
    30  Yonkers racetrack enter into a mitigation agreement, to be  approved  by
    31  the gaming commission, which shall include, but not be limited to, terms
    32  that  require: (A) the operator of the facility in Orange county to make
    33  an annual payment to the entity licensed to operate video lottery gaming
    34  or upon conversion of such license, to the entity licensed to operate  a
    35  commercial  gaming  facility  at  Yonkers  racetrack and the statutorily
    36  recognized horsemen's association at Yonkers racetrack  to  account  for
    37  the effects that siting such facility in Orange county would likely have
    38  on the gross gaming revenue of the entity licensed to operate at Yonkers
    39  racetrack  and upon purses and breeding fund payments from Yonkers race-
    40  track; (B) employment levels at the affected facilities;  and  (C)  that
    41  upon  expiration or termination of the agreement, the authority to oper-
    42  ate video lottery gaming in Orange  county  shall  cease;  and  (v)  the
    43  licensed  entity,  its subsidiaries and affiliates, including the entity
    44  licensed to operate a commercial gaming facility in Sullivan county, and
    45  Sullivan county enter into a mitigation agreement to be paid out of  the
    46  vendor  fee for the facility located in Orange county, to be approved by
    47  the gaming commission, which shall include, but not be limited to, terms
    48  that require: (A) the operator of the facility in Orange county to  make
    49  an  annual  payment  to  Sullivan county to maintain funding at the same
    50  dollar levels realized in two thousand twenty; and (B) that upon expira-
    51  tion, termination, or withdrawal of  the  agreement,  the  authority  to
    52  operate video lottery gaming in Orange county shall cease. Notwithstand-
    53  ing  any other provision of this subdivision, at no time shall an entity
    54  operating video lottery gaming in Orange county be  permitted  to  apply
    55  for or receive a license to operate a commercial gaming facility in that
    56  county.

        A. 3599                             3

     1    (6)  Notwithstanding  any other provision of law to the contrary, as a
     2  condition of the license to operate  a  video  lottery  gaming  facility
     3  located  in Orange county, such operator shall provide an annual certif-
     4  ication to the New York state gaming commission that the staffing levels
     5  at a commercial gaming facility located in zone two, region one pursuant
     6  to  section thirteen hundred ten of the racing, pari-mutuel wagering and
     7  breeding law (or any successor commercial  gaming  facility  located  in
     8  said  region) are [no less than one thousand four hundred seventy-three]
     9  maintained at ninety percent of the full-time,  permanent  employees  as
    10  they employed in the first quarter of the fiscal year two thousand twen-
    11  ty-three.  In  furtherance  of  and  without limiting the foregoing, the
    12  licensee for the commercial gaming facility located in zone two,  region
    13  one  pursuant to section thirteen hundred ten of the racing, pari-mutuel
    14  wagering and breeding law (or any successor commercial  gaming  facility
    15  located  in  such region) shall not conduct any mass, involuntary layoff
    16  events that would trigger worker adjustment and retraining  notification
    17  (WARN)  act notifications pursuant to article twenty-five-A of the labor
    18  law or otherwise result in the employment levels at such facility  drop-
    19  ping  below  levels  mandated  by  this  section.  For  purposes of this
    20  section, "full-time, permanent employee" shall mean an employee who  has
    21  worked  at  the facility for a minimum of thirty-five hours per week for
    22  not less than four consecutive weeks and who is entitled to receive  the
    23  usual  and  customary  fringe  benefits extended to other employees with
    24  comparable rank and duties; or two part-time employees who  have  worked
    25  at the facility for a combined minimum of thirty-five hours per week for
    26  not less than four consecutive weeks and who are entitled to receive the
    27  usual  and  customary  fringe  benefits extended to other employees with
    28  comparable rank and duties.
    29    § 4. Paragraph 1-b of subdivision b of section 1612 of the tax law, as
    30  added by section 2 of part EE of chapter 59 of  the  laws  of  2019,  is
    31  amended to read as follows:
    32    1-b.  (i)  Notwithstanding  any provision of law to the contrary, free
    33  play allowance credits authorized by the division pursuant  to  subdivi-
    34  sion  i of section sixteen hundred seventeen-a of this article shall not
    35  be included in the calculation of the  total  amount  wagered  on  video
    36  lottery  games,  the  total  amount  wagered after payout of prizes, the
    37  vendor fees payable to the operators of video lottery gaming facilities,
    38  fees payable to the division's video lottery gaming  equipment  contrac-
    39  tors, or racing support payments.
    40    (ii)  A  video  lottery gaming facility located in Orange county shall
    41  not utilize free play credits.
    42    § 5. This act shall take effect immediately; provided,  however,  that
    43  no  video  lottery gaming may be conducted at any facility within Orange
    44  county unless and until the mitigation agreement required by this act is
    45  executed by all parties and approved by the gaming commission.
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