Bill Text: NY A00165 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to the disposition of certain revenue with respect to debt incurred in the redevelopment project at Belmont Park racetrack; authorizes the New York Racing Association, Inc. to enter into a repayment agreement with the state of New York for payment of bonds issued by the state for the renovation of Belmont Park.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2024-01-03 - referred to ways and means [A00165 Detail]
Download: New_York-2023-A00165-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 165 2023-2024 Regular Sessions IN ASSEMBLY (Prefiled) January 4, 2023 ___________ Introduced by M. of A. SOLAGES, PRETLOW -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the disposition of certain revenue with respect to debt incurred in the redevelopment project at Belmont Park racetrack; and to authorize the New York Racing Associ- ation, Inc. to enter into a repayment agreement with the state of New York for payment of bonds issued by the state for the renovation of Belmont Park The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. The legislature finds that it is in 2 the interests of the state to assist the franchised corporation pursuant 3 to section 206 of the racing, pari-mutuel wagering and breeding law, in 4 obtaining the financing the franchised corporation needs to renovate 5 Belmont Park. The legislature further finds that the cost of this 6 project is anticipated to be four hundred fifty-five million dollars and 7 that the state has the ability to issue personal income tax or state 8 sales tax bonds to generate such funds. The legislature further finds 9 that authorizing access to this financing will enable the franchised 10 corporation to make a major investment in Nassau County that will lead 11 to new job opportunities and bolster the local economy. 12 § 2. Issuance of certain bonds or notes. 1. Subject to the provisions 13 of chapter 59 of the laws of 2000, and consistent with any agreements 14 and leases between the franchised corporation designated pursuant to 15 section 206 of the racing, pari-mutuel wagering and breeding law and the 16 people of the state of New York acting by and through the state fran- 17 chise oversight board, but notwithstanding the provisions of any other 18 law, rule, or regulation to the contrary, the dormitory authority and 19 the urban development corporation are hereby authorized to issue 20 personal income tax or state sales tax bonds in one or more series for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02033-01-3A. 165 2 1 the purpose of funding project costs for the Belmont Racetrack reno- 2 vation project and other state costs associated with such project. The 3 aggregate principal amount of bonds authorized to be issued pursuant to 4 this section shall not exceed four hundred fifty million dollars, 5 excluding bonds issued to fund one or more debt service reserve funds, 6 to pay costs of issuance of such bonds, and bonds or notes issued to 7 refund or otherwise repay such bonds or notes previously issued. Eligi- 8 ble project costs may include, but not be limited to the cost of design, 9 financing, site investigations, site acquisition and preparation, demo- 10 lition, construction, rehabilitation, acquisition of machinery and 11 equipment, and infrastructure improvements. Such bonds and notes of the 12 dormitory authority and the urban development corporation shall not be a 13 debt of the state, and the state shall not be liable thereon, nor shall 14 they be payable out of any funds other than those appropriated by the 15 state to the dormitory authority and the urban development corporation 16 for principal, interest, and related expenses pursuant to a service 17 contract and such bonds and notes shall contain on the face thereof a 18 statement to such effect. Except for purposes of complying with the 19 internal revenue code, any interest income earned on bond proceeds shall 20 only be used to pay debt service on such bonds. 21 2. Notwithstanding any other provision of law to the contrary, in 22 order to assist the dormitory authority and the urban development corpo- 23 ration in undertaking the financing for project costs for Belmont Race- 24 track renovation project and other state costs associated with such 25 project, the director of the budget is hereby authorized to enter into 26 one or more service contracts with the dormitory authority and the urban 27 development corporation, none of which shall exceed thirty years in 28 duration, upon such terms and conditions as the director of the budget 29 and the dormitory authority and the urban development corporation agree, 30 so as to annually provide to the dormitory authority and the urban 31 development corporation, in the aggregate, a sum not to exceed the prin- 32 cipal, interest, and related expenses required for such bonds and notes. 33 Any service contract entered into pursuant to this section shall provide 34 that the obligation of the state to pay the amount therein provided 35 shall not constitute a debt of the state within the meaning of any 36 constitutional or statutory provision and shall be deemed executory only 37 to the extent of monies available and that no liability shall be 38 incurred by the state beyond the monies available for such purpose, 39 subject to annual appropriation by the legislature. Any such contract 40 or any payments made or to be made thereunder may be assigned and 41 pledged by the dormitory authority and the urban development corporation 42 as security for its bonds and notes, as authorized by this section. 43 § 3. Prior to, and as a condition to the state issuing the bonds 44 described in section two of this act, the franchised corporation shall 45 enter into an agreement with the state allowing the funds dedicated for 46 capital expenditures of the franchised corporation pursuant to paragraph 47 3 of subdivision f and paragraph 3 of subdivision f-1 of section 1612 of 48 the tax law shall be directed to the state for repayment of the debt 49 service on such bonds. The franchised corporation shall further agree 50 that should the corporation receive statutory payments pursuant to 51 subdivision three of section 1355 of the racing, pari-mutuel wagering 52 and breeding law, enacted for the specific purpose of holding the fran- 53 chised corporation harmless for any loss of payments pursuant to para- 54 graph 3 of subdivision f and paragraph 3 of subdivision f-1 of section 55 1612 of the tax law, these payments shall also be directed to the state 56 for repayment of the debt service on such bonds.A. 165 3 1 § 4. Contemporaneously with the state entering into agreements with 2 regards to issuing the bonds described in section one of this act, the 3 state and the franchised corporation are authorized to enter into an 4 agreement to determine how the franchised corporation should relinquish 5 its leasehold interest in real property located in South Ozone Park, 6 commonly known as Aqueduct Racetrack, back to the state upon substantial 7 completion of the renovation of Belmont Park. 8 § 5. The New York State Gaming Commission shall ensure that to the 9 extent that the law allows for a franchise agreement with a franchisee 10 other than the franchised corporation, the term of any such franchise 11 agreement awarded after the issuance of any bonds described by section 12 two of this act includes a provision by such franchisee that such fran- 13 chisee will continue to pay the funds required by section three of this 14 act. 15 § 6. The opening paragraph of paragraph 3 of subdivision f of section 16 1612 of the tax law is designated subparagraph (i) and a new subpara- 17 graph (ii) is added to read as follows: 18 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event 19 of the issuance of state personal income tax revenue bonds or state 20 sales tax revenue bonds related to the redevelopment project at Belmont 21 Park racetrack, the amount payable to the franchised corporation for 22 capital expenditures pursuant to subparagraph (i) of this paragraph 23 during any state fiscal year shall instead be deposited into the state 24 general fund up to the amount required to cover any debt service costs 25 incurred by the state in relation to such debt during such fiscal year. 26 Any amount set forth in subparagraph (i) of this paragraph in any fiscal 27 year in excess of the annual debt service costs on such debt shall be 28 deposited in the account of the franchised corporation pursuant to 29 subparagraph (i) of this paragraph; provided, however, that in the event 30 the amount set forth in subparagraph (i) of this paragraph in any fiscal 31 year is less than the debt service cost incurred by the state in 32 relation to such debt, the difference shall be added to the amount to be 33 deposited to the state general fund in the following state fiscal year 34 pursuant to this subparagraph. Once the state has been fully reimbursed 35 for such debt service costs related to the redevelopment project at 36 Belmont Park racetrack, subparagraph (i) of this paragraph shall apply. 37 § 7. The opening paragraph of paragraph 3 of subdivision f-1 of 38 section 1612 of the tax law is designated subparagraph (i) and a new 39 subparagraph (ii) is added to read as follows: 40 (ii) notwithstanding subparagraph (i) of this paragraph, in the event 41 of the issuance of state personal income tax revenue bonds or state 42 sales tax revenue bonds related to the redevelopment project at Belmont 43 Park racetrack, the amount payable to the franchised corporation for 44 capital expenditures pursuant to subparagraph (i) of this paragraph 45 during any state fiscal year shall instead be deposited into the state 46 general fund to the extent necessary to cover, when combined with the 47 amount set forth in subparagraph (ii) of paragraph three of subdivision 48 f of this section, any debt service costs incurred by the state in 49 relation to such debt during such fiscal year. Any amount set forth in 50 subparagraph (i) of this paragraph in any fiscal year that, when 51 combined with the amount set forth in subparagraph (ii) of paragraph 52 three of subdivision f of this section, is in excess of the annual debt 53 service costs on such debt shall be deposited pursuant to subparagraph 54 (i) of this paragraph; provided, however, that in the event the amount 55 set forth in subparagraph (i) of this paragraph in any fiscal year when 56 combined with the amount set forth in subparagraph (ii) of paragraphA. 165 4 1 three of subdivision f of this section, is less than the debt service 2 cost incurred by the state in relation to such debt, the difference 3 shall be added to the amount to be deposited to the state general fund 4 in the following state fiscal year pursuant to this subparagraph. Once 5 the state has been fully reimbursed for such debt service costs related 6 to the redevelopment project at Belmont Park racetrack, subparagraph (i) 7 of this paragraph shall apply. 8 § 8. This act shall take effect immediately.
