Bill S723-2013

Authorizes the creation of the community group assistance lottery game and establishes the community grant fund

Authorizes the creation of the community group assistance lottery game and establishes the community grant fund, which fund shall be dedicated to community groups organized pursuant to paragraph three or four of subdivision (c) of section five hundred one of the internal revenue code of nineteen hundred eighty-six, as amended, administering educational, recreational, cultural, senior, veterans or social services programs or providing volunteer ambulance services.

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  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S723

TITLE OF BILL:

An act to amend the tax law, in relation to authorizing the creation of the community group assistance lottery game and to amend the state finance law, in relation to establishing the community grant fund

SUMMARY OF PROVISIONS:

Section 1 of the bill amends the tax law by adding a new section 1621 that creates the community group assistance lottery game. No more than 2 scratch-off lottery games shall be developed and implemented and whose revenue. after payment for prizes and associated administrative costs of such games, shall be deposited in the community grant fund.

Section 2 of the bill amends the state finance law by adding a new section 97-1111 that creates the community grant fund as follows:

a. The fund will be in the sole custody of the state comptroller and monies to the fund shall and not co-mingled with other funds in the custody of the comptroller.

b. Monies of the fund shall be expended only for costs associated with assistance for community groups (organized as IRS 501(c)(3) or (c)(4) entities) administering educational, recreational, cultural, senior, veterans or social services programs or providing volunteer ambulance services.

c. Each county in the state shall establish a regional community grant fund board to administer the funds directed to each county. Appointments to such a regional community grant fund board shall include. but need not be limited to, the county executive, one member of the assembly and one member of the senate representing an election district in which all or a portion of the relevant county is located, such legislative members to be appointed by the governor, and such other members as may be deemed necessary or appropriate by the county executive.

d. The funding for community groups coming from the revenue generated by the community groups assistance lottery game shall be allocated to each county in proportion to the number of lottery sales that took place in each county. Each regional community grant fund board shall create a district grant program that will disperse funds to individual groups based on need. Individual grants will be awarded through an application process based on criteria created by each board consistent with the purposes of this section and section 1621 of the tax law.

e. Monies shall be credited towards the fund in form of gift, donation, federal assistance or grant, transfers, payment, appropriation or by a dedicated revenue source including the community groups assistance lottery game.

f. Monies of the fund shall not be used. transferred or appropriated for any purpose other than what is provided in this section. except that such monies may be used for minimal costs associated with administering each direct grant program.

Section 3 of the bill sets forth an effective date of ninety days after it shall have become a law.

JUSTIFICATION:

Since 2010, the executive branch of the state has ceased any allocation of discretionary funds that could be used to fund local programs in legislators' districts. The loss of these funds has placed tremendous financial burden on local groups that have relied on this supportive funding to provide vital community programs to the state's residents. This loss is on top of already draconian budget cuts that occurred in 2011 and the loss of private funding sources that began to disappear as a result of the national economic crises in 2008.

Community programs have been left in the cold in their efforts to provide educational, recreational, cultural, senior and veterans programs or volunteer ambulance services to communities that have relied on those services for years. This includes things like senior centers, youth sports programs like Little League, afterschool programs and many, many other important community based programs.

The new lottery game proceeds that will be dedicated to the "Community Grant Fund" will enable these important community programs to continue to operate.

The state government cannot keep asking our citizens to bear the tremendous burden of cuts in services to due state budget deficits and simultaneously remove funding sources that are depended upon by local community groups that often step in to fill the void left when state government services are reduced or eliminated.

LEGISLATIVE HISTORY:

2011-12: S.7335-B

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:

The act shall take effect on the ninetieth day after it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 723 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sens. AVELLA, PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to authorizing the creation of the community group assistance lottery game; and to amend the state finance law, in relation to establishing the community grant fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 1621 to read as follows: S 1621. COMMUNITY GROUPS ASSISTANCE LOTTERY GAME. A. THE DIRECTOR OF THE DIVISION OF THE LOTTERY SHALL DEVELOP AND IMPLEMENT NO MORE THAN TWO SCRATCH-OFF LOTTERY GAMES WHOSE REVENUE, AFTER PAYMENT FOR PRIZES AND ASSOCIATED ADMINISTRATIVE COSTS OF SUCH GAMES, SHALL BE DEPOSITED IN THE COMMUNITY GRANT FUND AS ESTABLISHED IN SECTION NINETY-SEVEN-LLLL OF THE STATE FINANCE LAW. THIS LOTTERY GAME SHALL BE MARKETED AND DISTRIBUTED IN THE SAME MANNER AS ALL LOTTERY GAMES CONTROLLED BY THE DIVISION OF THE LOTTERY. THIS SECTION SHALL NOT DIMINISH ANY EFFORTS OR FUNDING FOR OTHER LOTTERY GAMES UNDER THE CONTROL OF THE DIVISION OF THE LOTTERY. EACH TICKET SHALL CLEARLY STATE THAT ALL PROCEEDS FROM TICKET SALES GO TOWARDS THE COMMUNITY GRANT FUND. B. THE DIVISION OF THE LOTTERY SHALL ESTABLISH AND BEGIN SELLING TICK- ETS AS REQUIRED BY THIS SECTION NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTEEN. S 2. The state finance law is amended by adding a new section 97-llll to read as follows: S 97-LLLL. COMMUNITY GRANT FUND. 1. THE COMMUNITY GRANT FUND IS ESTAB- LISHED IN THE SOLE CUSTODY OF THE STATE COMPTROLLER. MONIES IN THE FUND SHALL BE KEPT SEPARATE AND NOT COMMINGLED WITH OTHER FUNDS IN THE CUSTO- DY OF THE COMPTROLLER.
2. MONIES OF THE FUND SHALL BE EXPENDED ONLY FOR COSTS ASSOCIATED WITH ASSISTANCE FOR COMMUNITY GROUPS ORGANIZED PURSUANT TO PARAGRAPH THREE OR FOUR OF SUBDIVISION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED, ADMINISTERING EDUCATIONAL, RECREATIONAL, CULTURAL, SENIOR, VETERANS OR SOCIAL SERVICES PROGRAMS OR PROVIDING VOLUNTEER AMBULANCE SERVICES. MONIES SHALL BE AVAILABLE TO THE REGIONAL COMMUNITY GRANT FUND BOARD, AS ESTABLISHED BY SUBDIVISION THREE OF THIS SECTION. 3. EACH COUNTY SHALL ESTABLISH A REGIONAL COMMUNITY GRANT FUND BOARD TO ADMINISTER THE FUNDS DIRECTED TO EACH COUNTY. APPOINTMENTS TO SUCH A REGIONAL COMMUNITY GRANT FUND BOARD SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, THE COUNTY EXECUTIVE, ONE MEMBER OF THE ASSEMBLY AND ONE MEMBER OF THE SENATE REPRESENTING AN ELECTION DISTRICT IN WHICH ALL OR A PORTION OF THE RELEVANT COUNTY IS LOCATED, SUCH LEGISLATIVE MEMBERS TO BE APPOINTED BY THE GOVERNOR, AND SUCH OTHER MEMBERS AS MAY BE DEEMED NECESSARY OR APPROPRIATE BY THE COUNTY EXECUTIVE. 4. EACH REGIONAL COMMUNITY GRANT FUND BOARD SHALL CREATE A DIRECT GRANT PROGRAM THAT WILL DISPERSE FUNDS TO INDIVIDUAL GROUPS BASED ON NEED. THE INDIVIDUAL GRANTS SHALL BE AWARDED THROUGH AN APPLICATION PROCESS BASED ON CRITERIA CREATED BY EACH BOARD CONSISTENT WITH THE PURPOSES SET FORTH IN THIS SECTION AND SECTION SIXTEEN HUNDRED TWENTY-ONE OF THE TAX LAW. THE FUNDING FOR COMMUNITY GROUPS, THE SOURCE OF WHICH IS THE COMMUNITY GROUPS ASSISTANCE LOTTERY GAME AS ESTABLISHED IN SECTION SIXTEEN HUNDRED TWENTY-ONE OF THE TAX LAW, SHALL BE ALLOCATED TO EACH COUNTY IN PROPORTION TO THE NUMBER OF LOTTERY SALES THAT TOOK PLACE IN EACH COUNTY. THE FUNDING FOR COMMUNITY GROUPS FROM SOURCES OTHER THAN SUCH LOTTERY GAME SHALL BE APPLIED BASED UPON NEED. 5. MONIES SHALL BE CREDITED TOWARDS THE FUND IN FORM OF GIFT, DONATION, FEDERAL ASSISTANCE OR GRANT, TRANSFERS, PAYMENT, APPROPRIATION OR BY A DEDICATED REVENUE SOURCE INCLUDING THE COMMUNITY GROUPS ASSIST- ANCE LOTTERY GAME AS ESTABLISHED IN SECTION SIXTEEN HUNDRED TWENTY-ONE OF THE TAX LAW. 6. MONIES OF THE FUND SHALL NOT BE USED, TRANSFERRED OR APPROPRIATED FOR ANY PURPOSE OTHER THAN WHAT IS PROVIDED IN THIS SECTION, EXCEPT THAT SUCH MONIES MAY BE USED FOR MINIMAL COSTS ASSOCIATED WITH ADMINISTERING EACH DIRECT GRANT PROGRAM. S 3. This act shall take effect on the ninetieth day after it shall have become a law.

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