S538-2011 Actions

• Jan 4, 2012: REFERRED TO FINANCE
• Jan 5, 2011: REFERRED TO FINANCE

S538-2011 Memo

BILL NUMBER:S538

TITLE OF BILL:
An act
to amend the state finance law, in relation to
increasing the state aid
an eligible city may receive from estimated net machine
income generated by a video lottery gaming facility

PURPOSE:
The purpose of this legislation is to increase the revenue for certain
local municipalities that host a Video Lottery Terminals (VLT)
racetrack facility. This bill provides valuable revenue derived from
the video lottery terminal formula, but paid by the state general
fund, to support local school districts, such as the City of Yonkers.

SUMMARY OF PROVISIONS:
Section 1: Amends State Finance Law section 54-1 (2) to increase state
aid to eligible cities that have VLT facilities from 3.5% of such
revenue to 7% of such revenue based on the "estimated net machine
income" generated by a video gaming facility located in such eligible
city or forty million dollars, whichever is greater.

JUSTIFICATION:
The revenues generated from VLTs bring enormous benefits to the State
of New York in the form of additional support for state education
programs. Under the current statute, a host VLT facility community is
entitled to 3.5% of the "estimated net machine income" generated by a
VLT facility located in such eligible city. This bill changes the
funding formula to provide a state aid payments equal to seven
percent of the "estimated net machine income" generated by a video
gaming facility located in such eligible city or forty million
dollars, whichever shall be greater.

LEGISLATIVE HISTORY:
S.7734 of 2008 - Referred to Finance
S.1869 of 2009 - Referred to Finance

FISCAL IMPLICATIONS:
An additional $ 20 million for the city of Yonkers.

EFFECTIVE DATE:
This act shall take effect April 1, 2011, provided however that if
this act shall become law after April 1, 2011, it shall take effect
immediately and shall be deemed to have been in full force and effect
on and after April 1, 2011.

S538-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          538
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
 printed to be committed to the Committee on Finance
 

AN ACT to amend the state finance law, in  relation  to  increasing  the
 state  aid  an  eligible  city  may receive from estimated net machine
 income generated by a video lottery gaming facility
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1.  Paragraph a of subdivision 2 of section 54-l of the state
 finance law, as amended by section 1 of part AA of  chapter  56  of  the
 laws of 2010, is amended to read as follows:

 a.  An  eligible  city  shall  receive: (i) for the state fiscal years
 commencing April first, two thousand seven and April first, two thousand
 eight, a state aid payment equal to three and one-half  percent  of  the
 "estimated  net  machine  income"  generated  by  a video lottery gaming
 facility located in such eligible city. Such state aid payment shall not
 exceed twenty million dollars per eligible city; and (ii) for the  state
 fiscal  year  commencing  April  first,  two thousand nine and [for each
 state fiscal year thereafter] APRIL FIRST, TWO THOUSAND TEN,  an  amount
 equal  to  the  state  aid  payment  received  in  the state fiscal year
 commencing April first, two thousand eight;  AND  (III)  FOR  THE  STATE
 FISCAL  YEAR  COMMENCING  APRIL  FIRST, TWO THOUSAND ELEVEN AND FOR EACH
 STATE FISCAL YEAR THEREAFTER, A STATE AID PAYMENT EQUAL TO SEVEN PERCENT
 OF THE "ESTIMATED NET MACHINE INCOME" GENERATED BY A VIDEO GAMING FACIL
 ITY LOCATED IN AN ELIGIBLE CITY  OR  FORTY  MILLION  DOLLARS,  WHICHEVER
 SHALL BE GREATER.
 

S  2.  This act shall take effect April 1, 2011, provided however that
 if this act shall become a law after April 1, 2011, it shall take effect
 immediately and shall be deemed to have been in full force and effect on
 and after April 1, 2011.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04412-01-1

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