S T A T E   O F   N E W   Y O R K
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                                  8417--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 16, 2019
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Ways and Means -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend the tax law and the state finance law, in relation to
   video lottery gaming in the town of Woodbury

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Clause (B) of subparagraph (ii) of paragraph 1 of subdivi-
 sion b of section 1612 of the  tax  law  is  amended  by  adding  a  new
 subclause 5 to read as follows:
   (5)  SIXTY-FOUR PERCENT FOR A VIDEO LOTTERY GAMING FACILITY AUTHORIZED
 PURSUANT TO PARAGRAPH FIVE OF SUBDIVISION A OF SECTION  SIXTEEN  HUNDRED
 SEVENTEEN-A OF THIS ARTICLE;
   §  2.  Paragraph 2 of subdivision b of section 1612 of the tax law, as
 amended by section 1 of part OO of chapter 59 of the laws  of  2014,  is
 amended to read as follows:
   2. As consideration for the operation of a video lottery gaming facil-
 ity,  the division, shall cause the investment in the racing industry of
 a portion of the vendor fee received pursuant to paragraph one  of  this
 subdivision  in  the  manner  set  forth in this subdivision.   With the
 exception of Aqueduct racetrack, A VIDEO LOTTERY GAMING FACILITY AUTHOR-
 IZED PURSUANT TO PARAGRAPH FIVE OF  SUBDIVISION  A  OF  SECTION  SIXTEEN
 HUNDRED  SEVENTEEN-A  OF  THIS  ARTICLE  or  a facility in the county of
 Nassau or Suffolk operated by  a  corporation  established  pursuant  to
 section  five hundred two of the racing, pari-mutuel wagering and breed-
 ing law, each such track shall dedicate a portion of  its  vendor  fees,
 received  pursuant  to clause (A), (B), (B-1), (B-2), (C), OR (D)[, (E),
 (F), or (G)] of subparagraph (ii) of paragraph one of this  subdivision,
 for the purpose of enhancing purses at such track, in an amount equal to
 eight  and  three-quarters  percent  of the total revenue wagered at the
 vendor track after pay out for prizes. One percent of  the  gross  purse
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13351-09-9

 A. 8417--A                          2
 
 enhancement  amount,  as  required by this subdivision, shall be paid to
 the gaming commission to be  used  exclusively  to  promote  and  ensure
 equine health and safety in New York. Any portion of such funding to the
 gaming  commission  unused during a fiscal year shall be returned to the
 video lottery gaming operators on a pro rata basis  in  accordance  with
 the  amounts  originally  contributed by each operator and shall be used
 for the purpose of enhancing purses at  such  track.  One  and  one-half
 percent  of  the gross purse enhancement amount at a thoroughbred track,
 as required by this subdivision, shall be paid to an account established
 pursuant to section two hundred twenty-one-a of the racing,  pari-mutuel
 wagering  and  breeding  law  to  be  used exclusively to provide health
 insurance for jockeys. In addition, with the exception of Aqueduct race-
 track, A VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO  PARAGRAPH
 FIVE  OF  SUBDIVISION  A  OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS
 ARTICLE or a facility in the county of Nassau or Suffolk operated  by  a
 corporation  established  pursuant  to  section  five hundred two of the
 racing, pari-mutuel wagering  and  breeding  law,  one  and  one-quarter
 percent  of  total revenue wagered at the vendor track after pay out for
 prizes, received pursuant to clause (A),  (B),  (B-1),  (B-2),  (C),  OR
 (D)[,  (E),  (F),  or (G)] of subparagraph (ii) of paragraph one of this
 subdivision, shall be distributed to the appropriate breeding  fund  for
 the manner of racing conducted by such track.
   Provided,  further,  that nothing in this paragraph shall prevent each
 track from entering into an agreement, not to exceed  five  years,  with
 the  organization  authorized  to  represent its horsemen to increase or
 decrease the portion of its vendor fee dedicated to enhancing purses  at
 such  track  during the years of participation by such track, or to race
 fewer dates than required herein.
   § 3. Subdivision h of section 1612 of the tax law, as amended by chap-
 ter 174 of the laws of 2013, is amended to read as follows:
   h. As consideration for  the  operation  of  a  video  lottery  gaming
 [resort]  facility  located  in  [Sullivan county] THE TOWN OF WOODBURY,
 COUNTY OF ORANGE, the division shall cause the investment in the  racing
 industry  at  the  following  amount  from  the vendor fee to be paid as
 follows:
   As amount to the horsemen for purses at a licensed racetrack in Sulli-
 van county [and to the agriculture and New  York  state  horse  breeding
 development  fund to maintain racing support payments at the same dollar
 levels realized in two thousand thirteen, to be adjusted by the consumer
 price index for all urban consumers, as published annually by the United
 States department of labor bureau of  labor  statistics]  IN  AN  AMOUNT
 EQUAL  TO  EIGHT AND THREE-QUARTERS PERCENT OF THE TOTAL REVENUE WAGERED
 AT THE VIDEO LOTTERY GAMING FACILITY, AFTER  PAY  OUT  FOR  PRIZES.  THE
 HORSEMEN  AT  A  LICENSED  RACETRACK IN SULLIVAN COUNTY SHALL PAY TO THE
 HORSEMEN AT A LICENSED RACETRACK AT YONKERS RACETRACK AN AMOUNT TO MAIN-
 TAIN PURSES FOR SUCH HORSEMEN AT THE SAME DOLLAR LEVELS REALIZED IN  TWO
 THOUSAND  EIGHTEEN,  TO  BE ADJUSTED BY THE CONSUMER PRICE INDEX FOR ALL
 URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED  STATES  DEPARTMENT
 OF  LABOR  BUREAU  OF LABOR STATISTICS. IN ADDITION, ONE AND ONE-QUARTER
 PERCENT OF TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY
 AFTER  PAY  OUT  FOR PRIZES, RECEIVED PURSUANT TO CLAUSE (B) OF SUBPARA-
 GRAPH (II) OF PARAGRAPH ONE OF SUBDIVISION B OF THIS SECTION,  SHALL  BE
 DISTRIBUTED  TO  THE  APPROPRIATE BREEDING FUND FOR THE MANNER OF RACING
 CONDUCTED BY SUCH TRACK. In no circumstance shall net  proceeds  of  the
 lottery,  including  the proceeds from video lottery gaming, be used for

 A. 8417--A                          3
 
 the payment of non-lottery expenses of the gaming  commission,  adminis-
 trative or otherwise.
   §  4.  Subdivision  a  of  section 1617-a of the tax law is amended by
 adding four new paragraphs 5, 6, 7 and 8 to read as follows:
   (5) AT A FACILITY LOCATED IN THE TOWN OF WOODBURY, COUNTY OF ORANGE TO
 BE OPERATED BY THE ENTITY OTHERWISE LICENSED TO  OPERATE  VIDEO  LOTTERY
 GAMING  AT MONTICELLO RACETRACK, PROVIDED THAT: (I) SUCH LICENSED ENTITY
 IS NO LONGER OPERATING VIDEO LOTTERY GAMING AT MONTICELLO RACETRACK  AND
 PROVIDED THAT MONTICELLO RACETRACK IS CONDUCTING RACING OPERATIONS; (II)
 SUCH  FACILITY  IN  THE  TOWN OF WOODBURY, COUNTY OF ORANGE IS NOT SITED
 WITHIN A THIRTY MILE RADIUS OF THE  VIDEO  LOTTERY  GAMING  FACILITY  AT
 YONKERS  RACETRACK;  AND (III) THE LICENSED ENTITY, ITS SUBSIDIARIES AND
 AFFILIATES, INCLUDING THE ENTITY LICENSED TO OPERATE A COMMERCIAL GAMING
 FACILITY IN SULLIVAN COUNTY, AND THE ENTITY LICENSED  TO  OPERATE  VIDEO
 LOTTERY  GAMING  AT YONKERS RACETRACK ENTER INTO A MITIGATION AGREEMENT,
 TO BE APPROVED BY THE GAMING COMMISSION, WHICH SHALL INCLUDE, BUT NOT BE
 LIMITED TO, TERMS THAT REQUIRE: (A) THE OPERATOR OF THE FACILITY IN  THE
 TOWN  OF  WOODBURY,  COUNTY  OF  ORANGE TO MAKE AN ANNUAL PAYMENT TO THE
 ENTITY LICENSED TO OPERATE VIDEO LOTTERY GAMING OR COMMERCIAL GAMING  AT
 YONKERS  RACETRACK  TO ACCOUNT FOR THE EFFECTS THAT SITING SUCH FACILITY
 IN ORANGE COUNTY WOULD LIKELY HAVE ON THE GROSS GAMING  REVENUE  OF  THE
 ENTITY  LICENSED  TO OPERATE AT YONKERS RACETRACK; (B) EMPLOYMENT LEVELS
 AT THE AFFECTED FACILITIES; AND (C) THAT UPON EXPIRATION OR  TERMINATION
 OF  THE  AGREEMENT,  THE  AUTHORITY  TO  OPERATE VIDEO LOTTERY GAMING IN
 ORANGE COUNTY SHALL CEASE. NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS
 SUBDIVISION,  AT  NO TIME SHALL AN ENTITY OPERATING VIDEO LOTTERY GAMING
 IN ORANGE COUNTY BE PERMITTED TO APPLY FOR OR RECEIVE A LICENSE TO OPER-
 ATE A COMMERCIAL GAMING FACILITY IN  THAT  COUNTY.  NOTWITHSTANDING  ANY
 OTHER PROVISION OF LAW TO THE CONTRARY, AT NO TIME SHALL AN ENTITY OPER-
 ATING  VIDEO LOTTERY GAMING IN THE TOWN OF WOODBURY, COUNTY OF ORANGE BE
 PERMITTED TO ENTER INTO ANY AGREEMENT WITH, OR ACCEPT ANY BENEFIT  FROM,
 AN  ENTITY  AUTHORIZED  PURSUANT  TO  ARTICLE  EIGHTEEN-A OF THE GENERAL
 MUNICIPAL LAW, INCLUDING BUT NOT LIMITED TO PAYMENTS IN  LIEU  OF  TAXES
 AUTHORIZED BY SECTION EIGHT HUNDRED FIFTY-EIGHT OF THE GENERAL MUNICIPAL
 LAW.
   (6)  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, AS A
 CONDITION OF THE LICENSE TO OPERATE  A  VIDEO  LOTTERY  GAMING  FACILITY
 LOCATED  IN  THE TOWN OF WOODBURY, COUNTY OF ORANGE, SUCH OPERATOR SHALL
 PROVIDE AN ANNUAL CERTIFICATION TO THE NEW YORK STATE GAMING  COMMISSION
 THAT THE STAFFING LEVELS AT A COMMERCIAL GAMING FACILITY LOCATED IN ZONE
 TWO,  REGION ONE PURSUANT TO SECTION THIRTEEN HUNDRED TEN OF THE RACING,
 PARI-MUTUEL WAGERING AND  BREEDING  LAW  (OR  ANY  SUCCESSOR  COMMERCIAL
 GAMING  FACILITY  LOCATED  IN SAID REGION) ARE NO LESS THAN ONE THOUSAND
 FOUR HUNDRED THIRTEEN FULL-TIME, PERMANENT EMPLOYEES. IN FURTHERANCE  OF
 AND  WITHOUT  LIMITING  THE  FOREGOING,  THE LICENSEE FOR THE COMMERCIAL
 GAMING FACILITY LOCATED IN ZONE TWO,  REGION  ONE  PURSUANT  TO  SECTION
 THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
 LAW (OR ANY SUCCESSOR COMMERCIAL GAMING FACILITY LOCATED IN SUCH REGION)
 SHALL NOT CONDUCT ANY MASS, INVOLUNTARY LAYOFF EVENTS THAT WOULD TRIGGER
 WORKER ADJUSTMENT AND RETRAINING NOTIFICATION (WARN)  ACT  NOTIFICATIONS
 PURSUANT  TO  ARTICLE TWENTY-FIVE-A OF THE LABOR LAW OR OTHERWISE RESULT
 IN THE EMPLOYMENT LEVELS AT SUCH FACILITY DROPPING BELOW LEVELS MANDATED
 BY THIS SECTION. FOR PURPOSES OF  THIS  SECTION,  "FULL-TIME,  PERMANENT
 EMPLOYEE"  SHALL  MEAN  AN EMPLOYEE WHO HAS WORKED AT THE FACILITY FOR A
 MINIMUM OF THIRTY-FIVE HOURS PER WEEK FOR NOT LESS THAN FOUR CONSECUTIVE
 WEEKS AND WHO IS ENTITLED TO RECEIVE  THE  USUAL  AND  CUSTOMARY  FRINGE

 A. 8417--A                          4
 
 BENEFITS EXTENDED TO OTHER EMPLOYEES WITH COMPARABLE RANK AND DUTIES; OR
 TWO  PART-TIME  EMPLOYEES WHO HAVE WORKED AT THE FACILITY FOR A COMBINED
 MINIMUM OF THIRTY-FIVE HOURS PER WEEK FOR NOT LESS THAN FOUR CONSECUTIVE
 WEEKS  AND  WHO  ARE  ENTITLED TO RECEIVE THE USUAL AND CUSTOMARY FRINGE
 BENEFITS EXTENDED TO OTHER EMPLOYEES WITH COMPARABLE RANK AND DUTIES.
   (7) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  AS  A
 CONDITION  OF  THE  LICENSE  TO  OPERATE A VIDEO LOTTERY GAMING FACILITY
 LOCATED IN THE TOWN OF WOODBURY, COUNTY OF ORANGE, SUCH  OPERATOR  SHALL
 MAINTAIN  ASSISTANCE  PAYMENTS  MADE PURSUANT TO SECTION FIFTY-FOUR-L OF
 THE STATE FINANCE LAW TO THE VILLAGE OF MONTICELLO, SULLIVAN COUNTY, THE
 TOWN OF THOMPSON, SULLIVAN COUNTY, AND SULLIVAN  COUNTY.  PAYMENTS  MADE
 PURSUANT  TO  THIS  PARAGRAPH SHALL BE MADE QUARTERLY AT THE SAME DOLLAR
 LEVEL REALIZED BY SUCH MUNICIPALITIES IN TWO THOUSAND  EIGHTEEN,  TO  BE
 ADJUSTED  ANNUALLY  PURSUANT  TO CHANGES IN THE CONSUMER PRICE INDEX FOR
 ALL URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED STATES  DEPART-
 MENT  OF  LABOR  BUREAU OF LABOR STATISTICS.  AS AN ADDITIONAL CONDITION
 FOR SUCH LICENSE, SUCH  OPERATOR  SHALL  MAINTAIN  ADDITIONAL  QUARTERLY
 ASSISTANCE  PAYMENTS  TO  SULLIVAN COUNTY IN ANNUALIZED AMOUNTS EQUAL TO
 THE SALES TAXES PAID TO SUCH COUNTY BY THE OPERATOR  OF  THE  COMMERCIAL
 GAMING  FACILITY  LOCATED  IN  ZONE  TWO, REGION ONE PURSUANT TO SECTION
 THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL  WAGERING  AND  BREEDING
 LAW (OR ANY SUCCESSOR COMMERCIAL GAMING FACILITY LOCATED IN SAID REGION)
 IN  THE  YEAR TWO THOUSAND EIGHTEEN, TO BE ADJUSTED ANNUALLY PURSUANT TO
 CHANGES IN  THE  CONSUMER  PRICE  INDEX  FOR  ALL  URBAN  CONSUMERS,  AS
 PUBLISHED  ANNUALLY  BY  THE UNITED STATES DEPARTMENT OF LABOR BUREAU OF
 LABOR STATISTICS.
   (8) NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,  NO
 LICENSE  SHALL  BE GRANTED TO OPERATE A VIDEO GAMING FACILITY LOCATED IN
 THE TOWN OF WOODBURY, COUNTY OF ORANGE, PRIOR  TO  THE  EXECUTION  OF  A
 MEMORANDUM  OF  UNDERSTANDING  BETWEEN  SUCH  OPERATOR AND THE COUNTY OF
 SULLIVAN, WHICH SHALL BE APPROVED BY PASSAGE  OF  A  RESOLUTION  OF  THE
 SULLIVAN  COUNTY  LEGISLATURE.  SUCH  MEMORANDUM  OF UNDERSTANDING SHALL
 INCLUDE, BUT NOT BE LIMITED  TO,  TERMS  THAT  PROVIDE  FOR  A  ONE-TIME
 PAYMENT  IN  THE AMOUNT OF ONE MILLION DOLLARS FROM SUCH OPERATOR TO THE
 COUNTY OF SULLIVAN, IN ADDITION TO ANY OTHER TERMS.
   § 5. Section 54-l of the state finance law is amended by adding a  new
 subdivision 5 to read as follows:
   5.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ALL
 MUNICIPALITIES WITHIN WHICH THE FACILITY REFERENCED IN PARAGRAPH FIVE OF
 SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX  LAW  IS
 LOCATED,  SHALL  BE ELIGIBLE FOR STATE ASSISTANCE TO ELIGIBLE CITIES AND
 ELIGIBLE MUNICIPALITIES PURSUANT TO  THIS  SECTION;  PROVIDED,  HOWEVER,
 THAT  IF  SUCH  FACILITY  IS LOCATED WITHIN THE GEOGRAPHIC BOUNDARIES OF
 MORE THAN ONE VILLAGE, EACH SUCH VILLAGE SHALL RECEIVE AN  EQUAL  AMOUNT
 OF  STATE ASSISTANCE PURSUANT TO THIS SECTION.  STATE ASSISTANCE AWARDED
 TO SUCH CITIES AND MUNICIPALITIES SHALL NOT BE LESS THAN  THREE  MILLION
 DOLLARS  PER  AWARD  REGARDLESS  OF THE NUMBER OF SUCH CITIES OR MUNICI-
 PALITIES RECEIVING SUCH AWARD.
   § 6. This act shall take effect immediately; provided,  however,  that
 no  video  lottery gaming may be conducted at any facility within Orange
 county unless and until the mitigation agreement required by this act is
 executed by all parties and approved by the gaming commission.