Bill S538-2011

Increases state aid payments to cities with video lottery gaming facilities

Increases state aid payments to cities with video lottery gaming facilities.

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

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 538 2011-2012 Regular Sessions IN 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.

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