Bill S2888C-2011

Increases the minimum percentage collected by the municipal governments hosting the facility

Increases the minimum percentage collected by the municipal governments hosting the facility.

Details

Actions

  • Apr 24, 2012: PRINT NUMBER 2888C
  • Apr 24, 2012: AMEND (T) AND RECOMMIT TO FINANCE
  • Jan 4, 2012: REFERRED TO FINANCE
  • Oct 17, 2011: PRINT NUMBER 2888B
  • Oct 17, 2011: AMEND AND RECOMMIT TO FINANCE
  • May 3, 2011: PRINT NUMBER 2888A
  • May 3, 2011: AMEND AND RECOMMIT TO FINANCE
  • Feb 3, 2011: REFERRED TO FINANCE

Memo

BILL NUMBER:S2888C

TITLE OF BILL: An act to amend the state finance law and the executive law, in relation to authorizing municipal governments hosting tribal casinos to receive payments directly from Native American nations or tribes; and in relation to Tribal-state compact revenue accounts

PURPOSE OR GENERAL IDEA OF BILL: To increase to 50% from 25% the minimum percentage of the net drop from electronic gaming devices municipal host facilities receive ("local slots revenue") from the state pursuant to compact; and to allow direct reimbursements or payments to municipal governments that host such facilities

SUMMARY OF SPECIFIC PROVISIONS: Section 1 adds a new subdivision 2-a to State Finance Law § 99-h requiring any host community receiving funds pursuant to a tribal-state compact directly from a Native American nation or tribe to inform the State Comptroller of such payment within 7 days. It also makes it clear that any such payments (1) satisfy the obligations of the Native American nation or tribe under the state-nation compact, and (2) that any such payments made directly by a Native American nation or tribe to a municipal government shall be deducted from the amounts the state would otherwise be required to pay the municipality under SFL § 99-h.

Section 2 amends subdivision 2 of State Finance Law § 99-h to authorize the payments of casino monies under a tribal-state compact directly to a host municipality.

Section 3 amends subdivision 3 of State Finance Law § 99-h to increase the percentage of money from 25% to 50% that the host municipalities of Buffalo and Niagara, as well as Cattaraugus, Chautauqua and Allegany, receive pursuant to the compact.

Section 4 adds new subdivisions d and e to § 12 of the Executive Law to provide that any municipal government that hosts a tribal casino may receive payments directly from a Native American nation or tribe. It further provides that any such payments made shall be deemed to have been made in satisfaction of the tribal-state compact, and provides that all such payments are to be deducted from the amount the municipality would otherwise receive under SFL § 99-h. The bill also provides that any municipal government which receives payment pursuant to this section shall utilize the funds received for purposes authorized under section 99-h of the state finance law,-the same purposes which would apply had the payment had been channeled through the state.

Section 5 provides for an immediate effective date.

JUSTIFICATION:

Under current law, municipalities such as the cities of Niagara and Buffalo that host Indian gaming facilities are only entitled to receive a minimum 25% of the state's total takeout from the net drop of electronic gaming devices. The state, on the other hand, is reaping the vast majority of the revenue (the remaining 75%). Put in the simplest terms, host municipalities are being shortchanged.

Given the amount of construction and development underway in Niagara, Buffalo and surrounding areas, it becomes clear that more funds from the casino must be directed to host municipalities to help offset the burden on the taxpayers who live in these areas who are otherwise shouldering these costs. This bill would therefore increase the minimum percentage of the net drop received by host municipalities from 25% to 50%.

Additionally, the State of New York and the Seneca Nation of Indians are currently in a dispute over the terms of the State-Nation gaming compact. As a result, the Seneca Nation Tribal Council recently voted to stop making payments to the state under the state-nation gaming compact, claiming that the state has breached the agreement, which gives the Seneca Nation exclusive rights to operate gaming facilities in Western New York.

Unfortunately, the municipalities hosting the Seneca Nation's casinos have become innocent victims of this dispute, since a portion of the funds generated at those casinos ultimately go to the municipalities that host them. Those funds are being denied to the host municipalities while New York State and the Seneca Nation try to resolve their differences, meaning that the local governments are not receiving necessary funds that they are otherwise entitled to and desperately need in these difficult economic times.

This legislation represents a compromise to avoid economic harm to host communities. It authorizes a Native American nation or tribe, such as the Seneca Nation of Indians, to pay host municipalities directly while they work with New York State to resolve their differences.

Where a Native American nation or tribe makes direct payments to a host municipality, the bill requires the host municipality to notify the State Comptroller in order to ensure that the nation or tribe receives credit from the State for making such payments. It also provides that any municipality receiving direct payments would have such amounts deducted from the amounts they would otherwise be due from the State.

By altering state law to permit direct payments from a Native American Casino to a host community, this legislation is intended to protect host municipalities and the residents of these communities. Its enactment into law will ensure that they do not suffer while the State and a Native American nation or tribe resolve a dispute that the host municipality is not a party to.

This compromise will protect the Western New York economy by ensuring that payments due as a result of locally generated casino dollars are

not held up due to the inability of the state's leadership in Albany to resolve their dispute over the terms of the gaming compact with the Seneca Nation of Indians.

PRIOR LEGISLATIVE HISTORY: Similar to S.1226 of 2009/10 (Advanced to Third Reading) and S.866 of 2011/12

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately, with provisions.


Text

STATE OF NEW YORK ________________________________________________________________________ 2888--C 2011-2012 Regular Sessions IN SENATE February 3, 2011 ___________
Introduced by Sens. GRISANTI, MAZIARZ, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the state finance law and the executive law, in relation to authorizing municipal governments hosting tribal casinos to receive payments directly from Native American nations or tribes; and in relation to Tribal-state compact revenue accounts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 99-h of the state finance law, as amended by chapter 747 of the laws of 2006, is amended and a new subdi- vision 2-a is added to read as follows: 2. Such account shall consist of all revenues resulting from tribal- state compacts executed pursuant to article two of the executive law and a tribal-state compact with the St. Regis Mohawk tribe executed pursuant to chapter five hundred ninety of the laws of two thousand four, LESS ANY PAYMENTS MADE DIRECTLY BY A NATIVE AMERICAN NATION OR TRIBE, PURSU- ANT TO SUBDIVISION TWO-A OF THIS SECTION, TO ANY MUNICIPAL GOVERNMENT THAT HOSTS A TRIBAL CASINO. 2-A. A MUNICIPAL GOVERNMENT THAT HOSTS A TRIBAL CASINO MAY RECEIVE PAYMENTS DIRECTLY FROM A NATIVE AMERICAN NATION OR TRIBE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE MUNICIPAL GOVERNMENT SHALL, WITHIN SEVEN DAYS OF THE RECEIPT OF SUCH PAYMENTS, NOTIFY THE STATE COMPTROLLER THAT SUCH PAYMENTS HAVE BEEN RECEIVED BY SUCH MUNICI- PAL GOVERNMENT. ALL PAYMENTS RECEIVED BY ANY MUNICIPAL GOVERNMENT THAT HOSTS A TRIBAL CASINO SHALL BE DEEMED TO HAVE BEEN MADE IN SATISFACTION
OF THE PROVISIONS OF THE TRIBAL-STATE COMPACT EXECUTED PURSUANT TO ARTI- CLE TWO OF THE EXECUTIVE LAW AND A TRIBAL-STATE COMPACT WITH THE ST. REGIS MOHAWK TRIBE EXECUTED PURSUANT TO CHAPTER FIVE HUNDRED NINETY OF THE LAWS OF TWO THOUSAND FOUR, AND SUCH PAYMENTS SHALL BE DEDUCTED FROM THOSE AMOUNTS THE STATE IS REQUIRED TO MAKE TO SUCH MUNICIPAL GOVERNMENT PURSUANT TO SUBDIVISION THREE OR FOUR THIS SECTION. S 2. Subdivision 2 of section 99-h of the state finance law, as amended by section 1 of part V of chapter 59 of the laws of 2006, is amended and a new subdivision 2-a is added to read as follows: 2. Such account shall consist of all revenues resulting from tribal- state compacts executed pursuant to article two of the executive law and a tribal-state compact with the St. Regis Mohawk tribe executed pursuant to chapter five hundred ninety of the laws of two thousand four, LESS ANY PAYMENTS MADE DIRECTLY BY A NATIVE AMERICAN NATION OR TRIBE, PURSU- ANT TO SUBDIVISION TWO-A OF THIS SECTION, TO ANY MUNICIPAL GOVERNMENT THAT HOSTS A TRIBAL CASINO. 2-A. A MUNICIPAL GOVERNMENT THAT HOSTS A TRIBAL CASINO MAY RECEIVE PAYMENTS DIRECTLY FROM A NATIVE AMERICAN NATION OR TRIBE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE MUNICIPAL GOVERNMENT SHALL, WITHIN SEVEN DAYS OF THE RECEIPT OF SUCH PAYMENTS, NOTIFY THE STATE COMPTROLLER THAT SUCH PAYMENTS HAVE BEEN RECEIVED BY SUCH MUNICI- PAL GOVERNMENT. ALL PAYMENTS DIRECTLY RECEIVED BY ANY MUNICIPAL GOVERN- MENT THAT HOSTS A TRIBAL CASINO SHALL BE DEEMED TO HAVE BEEN MADE IN SATISFACTION OF THE TRIBAL-STATE COMPACT EXECUTED PURSUANT TO ARTICLE TWO OF THE EXECUTIVE LAW AND A TRIBAL-STATE COMPACT WITH THE ST. REGIS MOHAWK TRIBE EXECUTED PURSUANT TO CHAPTER FIVE HUNDRED NINETY OF THE LAWS OF TWO THOUSAND FOUR, AND SUCH PAYMENTS SHALL BE DEDUCTED FROM THOSE PAYMENTS THE STATE IS REQUIRED TO MAKE TO THE MUNICIPAL GOVERNMENT PURSUANT TO SUBDIVISION THREE OF THIS SECTION. S 3. Subdivision 3 of section 99-h of the state finance law, as amended by section 1 of part W of chapter 60 of the laws of 2011, is amended to read as follows: 3. Moneys of the account, following the segregation of appropriations enacted by the legislature, shall be available for purposes including but not limited to: (a) reimbursements or payments to municipal govern- ments that host tribal casinos pursuant to a tribal-state compact for costs incurred in connection with services provided to such casinos or arising as a result thereof, for economic development opportunities and job expansion programs authorized by the executive law; provided, howev- er, that for any gaming facility located in the city of Buffalo, the city of Buffalo shall receive a minimum of [twenty-five] FIFTY percent of the negotiated percentage of the net drop from electronic gaming devices the state receives pursuant to the compact, and provided further that for any gaming facility located in the city of Niagara Falls, coun- ty of Niagara a minimum of [twenty-five] FIFTY percent of the negotiated percentage of the net drop from electronic gaming devices the state receives pursuant to the compact shall be distributed in accordance with subdivision four of this section, and provided further that for any gaming facility located in the county or counties of Cattaraugus, Chau- tauqua or Allegany, the municipal governments of the state hosting the facility shall collectively receive a minimum of [twenty-five] FIFTY percent of the negotiated percentage of the net drop from electronic gaming devices the state receives pursuant to the compact; and provided further that pursuant to chapter five hundred ninety of the laws of two thousand four, a minimum of twenty-five percent of the revenues received by the state pursuant to the state's compact with the St. Regis Mohawk
tribe shall be made available to the counties of Franklin and St. Lawrence, and affected towns in such counties. Each such county and its affected towns shall receive fifty percent of the moneys made available by the state; and (b) support and services of treatment programs for persons suffering from gambling addictions. Moneys not segregated for such purposes shall be transferred to the general fund for the support of government during the fiscal year in which they are received. S 4. Section 12 of the executive law is amended by adding two new subdivisions (d) and (e) to read as follows: (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY MUNICIPAL GOVERN- MENT THAT HOSTS GAMING AND RELATED FACILITIES OF THE NATION MAY RECEIVE PAYMENTS DIRECTLY FROM THE NATION PURSUANT TO SUBDIVISION TWO-A OF SECTION NINETY-NINE-H OF THE STATE FINANCE LAW, AS ADDED BY CHAPTER THREE HUNDRED EIGHTY-THREE OF THE LAWS OF TWO THOUSAND ONE. ANY PAYMENTS MADE BY THE NATION DIRECTLY TO ANY MUNICIPAL GOVERNMENT THAT HOSTS GAMING AND RELATED FACILITIES PURSUANT TO THIS SUBDIVISION SHALL BE DEEMED TO HAVE BEEN MADE IN SATISFACTION OF THE COMPACT, AND SUCH PAYMENTS SHALL BE DEDUCTED FROM THE AMOUNTS THE STATE IS REQUIRED TO PAY SUCH MUNICIPAL GOVERNMENT PURSUANT TO SUBDIVISION THREE OR FOUR OF SUCH SECTION NINETY-NINE-H. (E) ANY MUNICIPAL GOVERNMENT RECEIVING PAYMENT PURSUANT TO SUBDIVISION (D) OF THIS SECTION SHALL BE AUTHORIZED TO EXPEND SUCH FUNDS IN THE SAME MANNER AS IF SUCH PAYMENT HAD BEEN MADE BY THE STATE TO THE MUNICIPAL GOVERNMENT PURSUANT TO SUBDIVISIONS THREE AND FOUR OF SECTION NINETY-NINE-H OF THE STATE FINANCE LAW. S 5. This act shall take effect immediately; provided, however, that the amendments to subdivision 2 of section 99-h of the state finance law, made by section one of this act, shall be subject to the expiration and reversion of such section pursuant to section 2 of chapter 747 of the laws of 2006, when upon such date the provisions of section two of this act shall take effect provided, further, that the amendments to subdivision 3 of section 99-h of the state finance law made by section three of this act shall not affect the expiration of such subdivision as provided in section 3 of part W of chapter 60 of the laws of 2011 and shall be deemed to expire therewith; provided, however, that the amend- ments to subdivision 3 of section 99-h of the state finance law made by section three of this act shall not affect the expiration of such section as provided in section 2 of chapter 747 of the laws of 2006 and shall be deemed to expire therewith.

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