NY State Senate Bill 2019-S2727

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to racing, gaming and wagering
Jan 29, 2019	referred to racing, gaming and wagering

2019-S2727 (ACTIVE) - Details

Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §§1315 & 1301, RWB L; amd §862, Gen Muni L; add §2879-d, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6919
2021-2022: S1475
2023-2024: S3564

2019-S2727 (ACTIVE) - Summary

Prohibits the minimum capital investment for a gaming facility from including certain tax expenditures, disposition of publicly owned property, grants or loans awarded by all state and municipal granting bodies, and certain development assistance programs.

2019-S2727 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2727

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, the
general municipal law and the public authorities law, in relation to a
prohibition of certain financial assistance to gaming facilities

 
PURPOSE OR GENERAL IDEA OF BILL:

Prohibits Class III gaming facilities from using financial assistance,
as that term is defined in the bill, when calculating the minimal capi-
tal investment necessary to receive a gaming license in the state.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subdivision one of section 1315 of the RPWBL law to
add new language prohibiting the use of financial assistance in calcu-
lating the minimum capital investment necessary to receive a class III
gaming license from the state.

Section two amends section 1301 of the RPWBL to define the term "finan-
cial assistance."

Section three adds a new subdivision three to section 862 of the General
Municipal Law to prohibit financial assistance to class three gaming
facilities in the form of tax breaks or incentives.

Section four amends the Public Authorities Law by adding a new section
2879-d prohibiting assistance to gaming facilities by public authorities
and public benefit corporations.

 
JUSTIFICATION:

This bill prohibits private companies that apply for a Class III casino
gaming license from seeking state or local assistance - including tax
incentive programs, PILOT payments, or other tax breaks - when calculat-
ing the amount of capital investment that must be made as part of the
project. The bill also explicitly amends the Public Authorities law to
prohibit the issuance of tax breaks or other financial incentives to
companies authorized to construct class III gaming facilities by public
benefit corporations or their subsidiaries.

Several years ago following approval of a constitutional referendum to
permit casino gaming New York authorized the construction of up to seven
casinos throughout the state. Enabling legislation authorized casino
gaming along with the associated construction of new casinos in stages.
The first four casinos have either opened or are under construction. The
remaining three casino licenses cannot be issued for several more years
pursuant to state law.

At the time the enabling legislation was drafted it was not contemplated
that many of the companies seeking these licenses would turn to local
and state authorities for tax abatements on various parts of each indi-
vidual project. However, several casinos applied to local Industrial
Development Agencies for - and received - financial assistance. Taxpay-
ers should not be on the hook subsidizing casino construction through
tax abatement requests. This bill would prohibit these requests in the
future and make it explicit that companies should be fully capitalized
and have the funds necessary when applying for a casino license.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S.6919 -Racing & Wagering

 
FISCAL IMPLICATIONS:

Potential to prevent loss of tax revenue to local municipalities by
prohibiting casinos to use these financial assistance programs

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2727 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2727
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Racing, Gaming and  Wager-
   ing
 
 AN  ACT  to amend the racing, pari-mutuel wagering and breeding law, the
   general municipal law and the public authorities law, in relation to a
   prohibition of certain financial assistance to gaming facilities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1 of section 1315 of the racing, pari-mutuel
 wagering and breeding law, as added by chapter 174 of the laws of  2013,
 is amended to read as follows:
   1.  The  board  shall  establish  the minimum capital investment for a
 gaming facility by zone and region. SUCH CAPITAL  INVESTMENT  SHALL  NOT
 INCLUDE  ANY FINANCIAL ASSISTANCE AS DEFINED IN SECTION THIRTEEN HUNDRED
 ONE OF THIS ARTICLE FROM  THE  STATE,  ANY  STATE  OR  LOCAL  AUTHORITY,
 INCLUDING  WITHOUT  LIMITATION  LOCAL  DEVELOPMENT  CORPORATIONS, OR ANY
 POLITICAL SUBDIVISIONS OF THE STATE. Such investment shall include,  but
 not  be  limited  to,  a casino area, at least one hotel and other amen-
 ities; and provided further, that the board shall determine  whether  it
 will  include  the  purchase or lease price of the land where the gaming
 facility will be located or any infrastructure designed to  support  the
 site including, but not limited to, drainage, utility support, roadways,
 interchanges,  fill  and  soil  or  groundwater or surface water contam-
 ination issues. The board may consider private capital  investment  made
 previous  to  the  effective  date  of  this  section,  but  may, in its
 discretion, discount a percentage of the investment made. Upon award  of
 a  gaming  license by the commission, the applicant shall be required to
 deposit ten percent of the total investment proposed in the  application
 into  an  interest-bearing account.   Monies received from the applicant
 shall be held in escrow  until  the  final  stage  of  construction,  as
 detailed  in  the timeline of construction submitted with the licensee's
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08886-01-9

 S. 2727                             2
 
 application and approved by the commission, at which  time  the  deposit
 plus  interest  earned  shall be returned to the applicant to be applied
 for the final stage. Should the applicant  be  unable  to  complete  the
 gaming  facility,  the deposit shall be forfeited to the state. In place
 of a cash deposit, the commission may allow for an applicant to secure a
 deposit bond insuring that ten percent of the proposed  capital  invest-
 ment  shall  be  forfeited  to  the  state if the applicant is unable to
 complete the gaming facility.
   § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 18-a to read as follows:
   18-A. "FINANCIAL ASSISTANCE".  FINANCIAL  ASSISTANCE  MEANS:  (A)  TAX
 EXPENDITURES GIVEN AS AN INCENTIVE TO RECIPIENT BUSINESSES, NOT-FOR-PRO-
 FIT  ORGANIZATIONS  AND  GOVERNMENT  ENTITIES  FOR  ECONOMIC DEVELOPMENT
 PURPOSES;
   (B) DISPOSITION OF ANY PUBLICLY OWNED  PROPERTY  FOR  LESS  THAN  FAIR
 MARKET  VALUE, WHICH SHALL BE DETERMINED BASED ON AN INDEPENDENT ASSESS-
 MENT ACCOUNTING FOR THE HIGHEST  REASONABLY  PROJECTED  GAMING  FACILITY
 REVENUES;
   (C) GRANTS OR LOANS AWARDED BY ALL STATE AND MUNICIPAL GRANTING BODIES
 AND INDUSTRIAL DEVELOPMENT AGENCIES TO BUSINESSES, NOT-FOR-PROFIT ORGAN-
 IZATIONS  AND  GOVERNMENT  ENTITIES  FOR  CONSTRUCTION OR OPERATION OF A
 GAMING FACILITY; AND
   (D) ALL SUCCESSOR AND SUBSEQUENT DEVELOPMENT ASSISTANCE  PROGRAMS  AND
 TAX  EXPENDITURES  DESIGNED  TO  PROMOTE  LARGE BUSINESS RELOCATIONS AND
 EXPANSIONS.
   § 3. Section 862 of the general municipal law is amended by  adding  a
 new subdivision 3 to read as follows:
   (3)  NO  FINANCIAL  ASSISTANCE  OF THE AGENCY SHALL BE PROVIDED TO ANY
 GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF  THE  RACING,
 PARI-MUTUEL WAGERING AND BREEDING LAW.
   §  4.  The  public  authorities law is amended by adding a new section
 2879-d to read as follows:
   § 2879-D. FINANCIAL  ASSISTANCE  TO  GAMING  FACILITIES;  PROHIBITION.
 EVERY PUBLIC AUTHORITY AND PUBLIC BENEFIT CORPORATION SHALL BE PROHIBIT-
 ED  FROM  PROVIDING ANY FINANCIAL ASSISTANCE AS DEFINED IN SECTION THIR-
 TEEN HUNDRED ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW TO
 ANY GAMING FACILITY AUTHORIZED  PURSUANT  TO  ARTICLE  THIRTEEN  OF  THE
 RACING,  PARI-MUTUEL  WAGERING  AND BREEDING LAW.   FOR PURPOSES OF THIS
 SECTION, "EVERY PUBLIC AUTHORITY AND PUBLIC BENEFIT  CORPORATION"  SHALL
 INCLUDE   SUBSIDIARIES  AND  LOCAL  DEVELOPMENT  CORPORATIONS.  PROVIDED
 FURTHER THAT THE PROVISIONS OF THIS SECTION DO NOT GRANT OR DIMINISH ANY
 POWER OR RIGHT TO REVIEW OR APPROVE CONTRACTS BEYOND OR FROM THAT  WHICH
 THE  COMPTROLLER  MAY HAVE PURSUANT TO HIS OR HER AUTHORITY TO SUPERVISE
 THE ACCOUNTS OF PUBLIC AUTHORITIES.
   § 5. This act shall take effect immediately.

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Senate Bill S2727

Sponsored By

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

2019-S2727 (ACTIVE) - Details

2019-S2727 (ACTIVE) - Summary

2019-S2727 (ACTIVE) - Sponsor Memo

2019-S2727 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2727

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

2019-S2727 (ACTIVE) - Details

2019-S2727 (ACTIVE) - Summary

2019-S2727 (ACTIVE) - Sponsor Memo

2019-S2727 (ACTIVE) - Bill Text download pdf

Comments