S T A T E   O F   N E W   Y O R K
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                                  1500

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 10, 2011
                               ___________

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

AN ACT to amend the state finance law, in relation to the video  lottery
  gaming facilities aid formula

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 54-l of  the  state  finance  law,  as  amended  by
section  1  of  part KK of chapter 56 of the laws of 2009, is amended to
read as follows:
  S 54-l. State assistance  to  eligible  cities  and  eligible  munici-
palities  in  which a video lottery gaming facility is located. 1. Defi-
nitions.  When used in this section, unless otherwise expressly stated:
  a. "Eligible city" shall mean (I) FOR THE FISCAL YEAR COMMENCING APRIL
FIRST, TWO THOUSAND SEVEN a city with a population equal to  or  greater
than one hundred twenty-five thousand and less than one million in which
a  video lottery gaming facility is located [and operating as of January
first, two thousand nine] pursuant to  section  sixteen  hundred  seven-
teen-a  of  the  tax  law  AND (II) FOR THE FISCAL YEAR COMMENCING APRIL
FIRST, TWO THOUSAND EIGHT AND FOR EACH  STATE  FISCAL  YEAR  THEREAFTER,
SHALL MEAN A CITY WITH A POPULATION EQUAL TO OR GREATER THAN ONE HUNDRED
TWENTY-FIVE THOUSAND IN WHICH A VIDEO LOTTERY GAMING FACILITY IS LOCATED
PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW.
  b.  "Eligible  municipality"  shall  mean  [(i)  for  the fiscal years
commencing April first, two thousand seven and April first, two thousand
eight] a county, city, town or village in which a video  lottery  gaming
facility  is  located pursuant to section sixteen hundred seventeen-a of
the tax law that is not located in a city with a population equal to  or
greater  than  one hundred twenty-five thousand [and (ii) for the fiscal
year commencing April first, two thousand nine and for each state fiscal
year thereafter, shall mean a county, city, town or village in  which  a
video  lottery  gaming  facility  is located and operating as of January

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02069-01-1
              

A. 1500                             2

first, two thousand nine pursuant to section sixteen hundred seventeen-a
of the tax law that is not located in a city with a population equal  to
or greater than one hundred twenty-five thousand and which is located in
a  county that has a poverty rate equal to or greater than fifty percent
of the New York state poverty rate].
  c. "Estimated net machine income" shall mean the estimated full annual
value of total revenue wagered after payout for prizes for  games  known
as "video lottery gaming" as authorized under article thirty-four of the
tax  law  during  the  state fiscal year in which state aid payments are
made pursuant to subdivision two of this section.
  d. "Population" shall mean population based on the most recent federal
decennial census.
  [e. "Poverty rate" shall mean the  percentage  of  individuals  living
below the poverty level, as reported in the most recent federal decenni-
al census.]
  2. Within amounts appropriated therefor, BEGINNING IN THE STATE FISCAL
YEAR  COMMENCING  APRIL  FIRST,  TWO  THOUSAND  SEVEN, AND IN EACH STATE
FISCAL YEAR THEREAFTER, an eligible city and  an  eligible  municipality
shall receive a state aid payment 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,  an  amount  equal  to  the  state  aid  payment
received  in  the state fiscal year commencing April first, two thousand
eight].
  b. Eligible municipalities shall receive[: (i) for  the  state  fiscal
years  commencing  April  first, two thousand seven and April first, two
thousand eight,] a share of three and one-half percent of the "estimated
net machine income" generated by a video lottery gaming facility located
within such eligible municipality  as  follows:  [(1)]  (I)  twenty-five
percent  shall  be  apportioned  and  paid to the county; and [(2)] (II)
seventy-five percent shall be apportioned and paid on a pro  rata  basis
to  eligible municipalities, other than the county, based upon the popu-
lation of such eligible municipalities. Such state aid payment shall not
exceed twenty-five percent of an eligible municipality's total  expendi-
tures  as  reported  in the statistical report of the comptroller in the
preceding state fiscal year pursuant  to  section  thirty-seven  of  the
general  municipal  law[;  and (ii) for the state fiscal year commencing
April first, two thousand nine and for each state fiscal year  thereaft-
er:  (1)  for an eligible municipality which is located in a county that
has a poverty rate equal to or greater than seventy-five percent of  the
New  York  state  poverty rate, an amount equal to the state aid payment
received in the state fiscal year commencing April first,  two  thousand
eight; and (2) for an eligible municipality which is located in a county
that  has  a poverty rate less than seventy-five percent of the New York
state poverty rate, an amount equal to fifty percent of  the  state  aid
payment  received  in  the state fiscal year commencing April first, two
thousand eight].
  3. a. State aid payments made to an eligible city  pursuant  to  para-
graph  a  of  subdivision  two of this section shall be used to increase
support for public schools in such city.

A. 1500                             3

  b. State aid payments made to an  eligible  municipality  pursuant  to
paragraph  b  of  subdivision  two of this section shall be used by such
eligible municipality to: (i) defray local costs associated with a video
lottery gaming facility, or (ii) minimize or reduce real property taxes.
  4.  A. ON OR BEFORE JUNE FIRST OF EACH STATE FISCAL YEAR, BEGINNING IN
THE  STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND NINE, AT THE
REQUEST OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE  DIRECTOR  OF
THE  DIVISION  OF  THE  LOTTERY  SHALL  TRANSMIT  A SCHEDULE OF PAYMENTS
REQUIRED PURSUANT TO THIS SECTION TO THE DIRECTOR OF THE DIVISION OF THE
BUDGET. IN DETERMINING SUCH SCHEDULE OF PAYMENTS, THE  DIRECTOR  OF  THE
DIVISION  OF THE LOTTERY SHALL INCLUDE A RECONCILIATION OF THE STATE AID
PAID IN THE PRECEDING FISCAL YEAR. SUCH RECONCILIATION SHALL ADJUST  FOR
THE  DIFFERENCE  BETWEEN THE STATE AID PAID IN THE PRECEDING FISCAL YEAR
AND WHAT THE STATE AID PAYMENT WOULD HAVE BEEN IF THE ACTUAL FULL ANNUAL
VALUE OF NET MACHINE INCOME HAD BEEN USED IN THE  CALCULATION  OF  STATE
AID. SUCH RECONCILIATION SHALL BE SUBJECT TO THE MAXIMUM AMOUNTS IDENTI-
FIED IN SUBDIVISION TWO OF THIS SECTION FOR THE YEAR BEING RECONCILED.
  B.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN THE
EVENT ANY ELIGIBLE CITY OR ELIGIBLE MUNICIPALITY  RECEIVES  ANY  PAYMENT
UNDER  SUBDIVISION  TWO  OF THIS SECTION THAT HAS BEEN RECOMMENDED TO BE
RECONCILED BY THE DIRECTOR OF THE DIVISION OF THE LOTTERY AS  SET  FORTH
IN THIS SUBDIVISION, AND THE AMOUNTS PAYABLE PURSUANT TO SUBDIVISION TWO
OF  THIS  SECTION  ARE  INSUFFICIENT TO SUPPORT SUCH RECONCILIATION, THE
COMPTROLLER SHALL DEDUCT FROM ANY MONEYS PAYABLE TO SUCH  ELIGIBLE  CITY
OR  ELIGIBLE  MUNICIPALITY  THE  AMOUNT REQUIRED FOR SUCH RECONCILIATION
UPON RECEIPT OF A CERTIFICATION OF THE RECONCILIATION  AMOUNT  FROM  THE
DIRECTOR OF THE DIVISION OF THE LOTTERY.
  5.  Payments of state aid pursuant to this section shall be made on or
before June thirtieth of each state fiscal  year  to  the  chief  fiscal
officer  of  each  eligible city and each eligible municipality on audit
and warrant of the state comptroller out of moneys appropriated  by  the
legislature  for such purpose to the credit of the local assistance fund
in the general fund of the state treasury.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2009.