S T A T E   O F   N E W   Y O R K
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                                 10101--A
 
                           I N  A S S E M B L Y
 
                              April 29, 2022
                                ___________
 
 Introduced by M. of A. SOLAGES, PRETLOW -- read once and referred to the
   Committee  on  Ways  and  Means -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to the disposition  of  certain
   revenue  with respect to debt incurred in the redevelopment project at
   Belmont Park racetrack; and to authorize the New York  Racing  Associ-
   ation,  Inc. to enter into a repayment agreement with the state of New
   York for payment of bonds issued by the state for  the  renovation  of
   Belmont Park
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that it  is  in
 the interests of the state to assist the franchised corporation pursuant
 to  section 206 of the racing, pari-mutuel wagering and breeding law, in
 obtaining the financing the franchised  corporation  needs  to  renovate
 Belmont  Park.    The  legislature  further  finds that the cost of this
 project is anticipated to be four hundred fifty-five million dollars and
 that the state has the ability to issue personal  income  tax  or  state
 sales  tax  bonds  to generate such funds. The legislature further finds
 that authorizing access to this financing  will  enable  the  franchised
 corporation  to  make a major investment in Nassau County that will lead
 to new job opportunities and bolster the local economy.
   § 2. Issuance of certain bonds or notes. 1. Subject to the  provisions
 of  chapter  59  of the laws of 2000, and consistent with any agreements
 and leases between the franchised  corporation  designated  pursuant  to
 section 206 of the racing, pari-mutuel wagering and breeding law and the
 people  of  the  state of New York acting by and through the state fran-
 chise oversight board, but notwithstanding the provisions of  any  other
 law,  rule,  or  regulation to the contrary, the dormitory authority and
 the  urban  development  corporation  are  hereby  authorized  to  issue
 personal  income  tax or state sales tax bonds in one or more series for
 the purpose of funding project costs for  the  Belmont  Racetrack  reno-
 vation  project  and other state costs associated with such project. The
 aggregate principal amount of bonds authorized to be issued pursuant  to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15526-02-2
 A. 10101--A                         2
 
 this  section  shall  not  exceed  four  hundred  fifty million dollars,
 excluding bonds issued to fund one or more debt service  reserve  funds,
 to  pay  costs  of  issuance of such bonds, and bonds or notes issued to
 refund  or otherwise repay such bonds or notes previously issued. Eligi-
 ble project costs may include, but not be limited to the cost of design,
 financing, site investigations, site acquisition and preparation,  demo-
 lition,  construction,  rehabilitation,  acquisition  of  machinery  and
 equipment, and infrastructure improvements. Such bonds and notes of  the
 dormitory authority and the urban development corporation shall not be a
 debt  of the state, and the state shall not be liable thereon, nor shall
 they be payable out of any funds other than those  appropriated  by  the
 state  to  the dormitory authority and the urban development corporation
 for principal, interest, and related  expenses  pursuant  to  a  service
 contract  and  such  bonds and notes shall contain on the face thereof a
 statement to such effect. Except for  purposes  of  complying  with  the
 internal revenue code, any interest income earned on bond proceeds shall
 only be used to pay debt service on such bonds.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority and the urban development corpo-
 ration in undertaking the financing for project costs for Belmont  Race-
 track  renovation  project  and  other  state costs associated with such
 project, the director of the budget is hereby authorized to  enter  into
 one or more service contracts with the dormitory authority and the urban
 development  corporation,  none  of  which  shall exceed thirty years in
 duration, upon such terms and conditions as the director of  the  budget
 and the dormitory authority and the urban development corporation agree,
 so  as  to  annually  provide  to  the dormitory authority and the urban
 development corporation, in the aggregate, a sum not to exceed the prin-
 cipal, interest, and related expenses required for such bonds and notes.
 Any service contract entered into pursuant to this section shall provide
 that the obligation of the state to  pay  the  amount  therein  provided
 shall  not  constitute  a  debt  of  the state within the meaning of any
 constitutional or statutory provision and shall be deemed executory only
 to the extent of  monies  available  and  that  no  liability  shall  be
 incurred  by  the  state  beyond  the monies available for such purpose,
 subject to annual appropriation by the legislature.   Any such  contract
 or  any  payments  made  or  to  be  made thereunder may be assigned and
 pledged by the dormitory authority and the urban development corporation
 as security for its bonds and notes, as authorized by this section.
   § 3. Prior to, and as a condition  to  the  state  issuing  the  bonds
 described  in  section two of this act, the franchised corporation shall
 enter into an agreement with the state allowing the funds dedicated  for
 capital expenditures of the franchised corporation pursuant to paragraph
 3 of subdivision f and paragraph 3 of subdivision f-1 of section 1612 of
 the  tax  law  shall  be directed to the state for repayment of the debt
 service on such bonds.  The franchised corporation shall  further  agree
 that  should  the  corporation  receive  statutory  payments pursuant to
 subdivision three of section 1355 of the  racing,  pari-mutuel  wagering
 and  breeding law, enacted for the specific purpose of holding the fran-
 chised corporation harmless for any loss of payments pursuant  to  para-
 graph  3  of subdivision f and paragraph 3 of subdivision f-1 of section
 1612 of the tax law, these payments shall also be directed to the  state
 for repayment of the debt service on such bonds.
   §  4.  Contemporaneously  with the state entering into agreements with
 regards to issuing the bonds described in section one of  this  chapter,
 the state and the franchised corporation are authorized to enter into an
 A. 10101--A                         3
 
 agreement  to determine how the franchised corporation should relinquish
 its leasehold interest in real property located  in  South  Ozone  Park,
 commonly known as Aqueduct Racetrack, back to the state upon substantial
 completion of the renovation of Belmont Park.
   §  5.  The  New  York State Gaming Commission shall ensure that to the
 extent that the law allows for a franchise agreement with  a  franchisee
 other  than  the  franchised corporation, the term of any such franchise
 agreement awarded after the issuance of any bonds described  by  section
 two  of this act includes a provision by such franchisee that such fran-
 chisee will continue to pay the funds required by section three of  this
 act.
   §  6. The opening paragraph of paragraph 3 of subdivision f of section
 1612 of the tax law is designated subparagraph (i) and  a  new  subpara-
 graph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 OF THE ISSUANCE OF STATE PERSONAL INCOME  TAX  REVENUE  BONDS  OR  STATE
 SALES  TAX REVENUE BONDS RELATED TO THE REDEVELOPMENT PROJECT AT BELMONT
 PARK RACETRACK, THE AMOUNT PAYABLE TO  THE  FRANCHISED  CORPORATION  FOR
 CAPITAL  EXPENDITURES  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 DURING ANY STATE FISCAL YEAR SHALL INSTEAD BE DEPOSITED INTO  THE  STATE
 GENERAL  FUND  UP TO THE AMOUNT REQUIRED TO COVER ANY DEBT SERVICE COSTS
 INCURRED BY THE STATE IN RELATION TO SUCH DEBT DURING SUCH FISCAL  YEAR.
 ANY AMOUNT SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN ANY FISCAL
 YEAR  IN  EXCESS  OF THE ANNUAL DEBT SERVICE COSTS ON SUCH DEBT SHALL BE
 DEPOSITED IN THE ACCOUNT  OF  THE  FRANCHISED  CORPORATION  PURSUANT  TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH; PROVIDED, HOWEVER, THAT IN THE EVENT
 THE AMOUNT SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN ANY FISCAL
 YEAR  IS  LESS  THAN  THE  DEBT  SERVICE  COST  INCURRED BY THE STATE IN
 RELATION TO SUCH DEBT, THE DIFFERENCE SHALL BE ADDED TO THE AMOUNT TO BE
 DEPOSITED TO THE STATE GENERAL FUND IN THE FOLLOWING STATE  FISCAL  YEAR
 PURSUANT  TO THIS SUBPARAGRAPH. ONCE THE STATE HAS BEEN FULLY REIMBURSED
 FOR SUCH DEBT SERVICE COSTS RELATED  TO  THE  REDEVELOPMENT  PROJECT  AT
 BELMONT PARK RACETRACK, SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL APPLY.
   §  7.  The  opening  paragraph  of  paragraph  3 of subdivision f-1 of
 section 1612 of the tax law is designated subparagraph  (i)  and  a  new
 subparagraph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 OF THE ISSUANCE OF STATE PERSONAL INCOME  TAX  REVENUE  BONDS  OR  STATE
 SALES  TAX REVENUE BONDS RELATED TO THE REDEVELOPMENT PROJECT AT BELMONT
 PARK RACETRACK, THE AMOUNT PAYABLE TO  THE  FRANCHISED  CORPORATION  FOR
 CAPITAL  EXPENDITURES  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 DURING ANY STATE FISCAL YEAR SHALL INSTEAD BE DEPOSITED INTO  THE  STATE
 GENERAL  FUND  TO  THE EXTENT NECESSARY TO COVER, WHEN COMBINED WITH THE
 AMOUNT SET FORTH IN SUBPARAGRAPH (II) OF PARAGRAPH THREE OF  SUBDIVISION
 F  OF  THIS  SECTION,  ANY  DEBT  SERVICE COSTS INCURRED BY THE STATE IN
 RELATION TO SUCH DEBT DURING SUCH FISCAL YEAR. ANY AMOUNT SET  FORTH  IN
 SUBPARAGRAPH  (I)  OF  THIS  PARAGRAPH  IN  ANY  FISCAL  YEAR THAT, WHEN
 COMBINED WITH THE AMOUNT SET FORTH IN  SUBPARAGRAPH  (II)  OF  PARAGRAPH
 THREE  OF SUBDIVISION F OF THIS SECTION, IS IN EXCESS OF THE ANNUAL DEBT
 SERVICE COSTS ON SUCH DEBT SHALL BE DEPOSITED PURSUANT  TO  SUBPARAGRAPH
 (I)  OF  THIS PARAGRAPH; PROVIDED, HOWEVER, THAT IN THE EVENT THE AMOUNT
 SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN ANY FISCAL YEAR  WHEN
 COMBINED  WITH  THE  AMOUNT  SET FORTH IN SUBPARAGRAPH (II) OF PARAGRAPH
 THREE OF SUBDIVISION F OF THIS SECTION, IS LESS THAN  THE  DEBT  SERVICE
 COST  INCURRED  BY  THE  STATE  IN RELATION TO SUCH DEBT, THE DIFFERENCE
 SHALL BE ADDED TO THE AMOUNT TO BE DEPOSITED TO THE STATE  GENERAL  FUND
 A. 10101--A                         4
 
 IN  THE  FOLLOWING STATE FISCAL YEAR PURSUANT TO THIS SUBPARAGRAPH. ONCE
 THE STATE HAS BEEN FULLY REIMBURSED FOR SUCH DEBT SERVICE COSTS  RELATED
 TO THE REDEVELOPMENT PROJECT AT BELMONT PARK RACETRACK, SUBPARAGRAPH (I)
 OF THIS PARAGRAPH SHALL APPLY.
   § 8. This act shall take effect immediately.