This blog is not affiliated or endorsed, by Nassau OTB, a public benefit corporation, subject to the New York Freedom
of Information Law, NY Pub Off Law Sec 84 et seq.
BILL NO A06562
SAME AS No same as
SPONSOR Englebright (MS)
COSPNSR Weisenberg, Schimel, Raia, Montesano, Ramos, Lupinacci, Sweeney
MLTSPNSR McDonough
Amd S503, RWB L; amd SS1612 & 1617-a, Tax L
Authorizes Nassau and Suffolk regional off-track betting corporations to host
video lottery terminals.
BILL NUMBER:A6562
TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law and the tax law, in relation to allowing the Nassau and
Suffolk off-track betting corporations to host video lottery terminals
PURPOSE: The purpose of this legislation is to allow the regional
off-track betting corporations of Nassau and Suffolk Counties to
operate video lottery gaming terminals.
SUMMARY OF PROVISIONS: This bill amends Section 503 of the racing,
pari-mutuel wagering and breeding law and adds subdivision 10-a;
amends subparagraph (ii; of paragraph 1 of subdivision b of section
1612 of the tax law, as amended by section 6 of part )c of chapter 57
of the laws of 2010, clause (H) as amended by the ;laws of 2012,
clause (I) as added by section 1 of part 0 of chapter 61 of the laws
of 2011; amends subparagraph (iii) of paragraph 1 and the opening
paragraph of paragraph 2 of subdivision b of section 1612 of the tax
law, as amended by section 1 of part 0-1 of chapter 57 of the laws of
2009; amends subdivision a of section 1617-a of the tax law, as
amended by section 2 of part 0-1 of chapter 57 of the laws of 2009.
JUSTIFICATION: The current law regarding video lottery terminals in
New York State only allows them in specified regions of the state that
have either a thoroughbred or standardbred racetrack. This bill would
expand on the current list of allowed regions by granting the Nassau
and Suffolk Regional Off-Track Betting Corporations, which cover the
two most populous counties in the state (outside of NYC), the power to
host video lottery gaming terminals. This would bring. in much needed
revenue for the two counties.
LEGISLATIVE HISTORY: New bill
FISCAL IMPLICATIONS: No cost to the state. However, "it is estimated
that this act would generate millions of dollars in revenue for
participating counties and to the state.
EFFECTIVE DATE: This act shall effect the first of January next
succeeding the date on which it shall have become a Law.
S T A T E O F N E W Y O R K
________________________________________________________________________
6562
2013-2014 Regular Sessions
I N A S S E M B L Y
April 9, 2013
___________
Introduced by M. of A. ENGLEBRIGHT, WEISENBERG, SCHIMEL, RAIA, MONTESA-
NO, RAMOS, LUPINACCI, SWEENEY -- Multi-Sponsored by -- M. of A. McDO-
NOUGH -- read once and referred to the Committee on Racing and Wager-
ing
AN ACT to amend the racing, pari-mutuel wagering and breeding law and
the tax law, in relation to allowing the Nassau and Suffolk off-track
betting corporations to host video lottery terminals
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 503 of the racing, pari-mutuel wagering and breed-
2 ing law is amended by adding a new subdivision 10-a to read as follows:
3 10-A. IN THE NASSAU AND SUFFOLK REGIONS, TO OPERATE VIDEO LOTTERY
4 GAMING AT A CORPORATION'S FACILITY WHICH IS LICENSED PURSUANT TO SECTION
5 ONE THOUSAND EIGHT OR ONE THOUSAND NINE OF THIS CHAPTER;
6 S 2. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
7 of the tax law, as amended by section 6 of part K of chapter 57 of the
8 laws of 2010, clause (H) as amended by chapter 454 of the laws of 2012,
9 clause (I) as added by section 1 of part O of chapter 61 of the laws of
10 2011, is amended to read as follows:
11 (ii) less a vendor's fee the amount of which is to be paid for serving
12 as a lottery agent to the track operator of a vendor track; AND LESS
13 VENDOR'S FEES TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE NASSAU
14 AND SUFFOLK REGIONAL OFF-TRACK BETTING CORPORATIONS OPERATORS AT AUTHOR-
15 IZED PARTICIPATING OFF-TRACK BETTING FACILITIES LICENSED PURSUANT TO
16 EITHER SECTION ONE THOUSAND EIGHT OR ONE THOUSAND NINE OF THE RACING,
17 PARI-MUTUEL WAGERING AND BREEDING LAW, WHICH FEES SHALL BE AGGREGATED
18 AND PAID IN EQUAL AMOUNTS TO THE COUNTIES OF NASSAU AND SUFFOLK:
19 (A) having fewer than one thousand one hundred video gaming machines,
20 at a rate of thirty-five percent for the first fifty million dollars
21 annually, twenty-eight percent for the next hundred million dollars
22 annually, and twenty-five percent thereafter of the total revenue
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10035-01-3
A. 6562 2
1 wagered at the vendor track after payout for prizes pursuant to this
2 chapter;
3 (B) having one thousand one hundred or more video gaming machines, at
4 a rate of thirty-one percent of the total revenue wagered at the vendor
5 track after payout for prizes pursuant to this chapter, except for such
6 facility located in the county of Westchester, in which case the rate
7 shall be thirty percent until March thirty-first, two thousand twelve.
8 Notwithstanding the foregoing, not later than April first, two thou-
9 sand twelve, the vendor fee AT SUCH TRACK OR VENDOR OFF-TRACK BETTING
10 FACILITY shall become thirty-one percent and remain at that level there-
11 after; and except for Aqueduct racetrack, in which case the vendor fee
12 shall be thirty-eight percent of the total revenue wagered at the vendor
13 track after payout for prizes pursuant to this chapter;
14 (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
15 vendor track OR VENDOR OFF-TRACK BETTING FACILITY is located in an area
16 with a population of less than one million within the forty mile radius
17 around such track, at a rate of thirty-nine percent for the first fifty
18 million dollars annually, twenty-eight percent for the next hundred
19 million dollars annually, and twenty-five percent thereafter of the
20 total revenue wagered at the vendor track OR VENDOR OFF-TRACK BETTING
21 FACILITY after payout for prizes pursuant to this chapter;
22 (D) notwithstanding clauses (A), (B) and (C) of this subparagraph,
23 when the vendor track OR VENDOR OFF-TRACK BETTING FACILITY is located
24 within fifteen miles of a Native American class III gaming facility at a
25 rate of forty-one percent of the total revenue wagered at the vendor
26 track after payout for prizes pursuant to this chapter;
27 (E) notwithstanding clauses (A), (B), (C) and (D) of this subpara-
28 graph, when a Native American class III gaming facility is established,
29 after the effective date of this subparagraph, within fifteen miles of
30 the vendor track OR VENDOR OFF-TRACK BETTING FACILITY, at a rate of
31 forty-one percent of the total revenue wagered after payout for prizes
32 pursuant to this chapter;
33 (E-1) for purposes of this subdivision, the term "class III gaming"
34 shall have the meaning defined in 25 U.S.C. S 2703(8).
35 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
36 agraph, when a vendor track, is located in Sullivan county and within
37 sixty miles from any gaming facility in a contiguous state such vendor
38 fee shall, for a period of five years commencing April first, two thou-
39 sand eight, be at a rate of forty-one percent of the total revenue
40 wagered at the vendor track after payout for prizes pursuant to this
41 chapter, after which time such rate shall be as for all tracks in clause
42 (C) of this subparagraph.
43 (G) notwithstanding clauses (A), (B), (C), (D), (E) and (F) of this
44 subparagraph, when no more than one vendor track located in the town of
45 Thompson in Sullivan county at the site of the former Concord Resort at
46 which a qualified capital investment has been made and no fewer than one
47 thousand full-time, permanent employees have been newly hired, is
48 located in Sullivan county and is within sixty miles from any gaming
49 facility in a contiguous state, then for a period of forty years the
50 vendor's fee shall equal the total revenue wagered at the vendor track
51 after payout of prizes pursuant to this subdivision reduced by the
52 greater of (i) twenty-five percent of total revenue after payout for
53 prizes for "video lottery games" or (ii) for the first eight years of
54 operation thirty-eight million dollars, and beginning in the ninth year
55 of operation such amount shall increase annually by the lesser of the
56 increase in the consumer price index or two percent, plus seven percent
A. 6562 3
1 of total revenue after payout of prizes. In addition, in the event the
2 vendor fee is calculated pursuant to subclause (i) of this clause, the
3 vendor's fee shall be further reduced by 11.11 percent of the amount by
4 which total revenue after payout for prizes exceeds two hundred fifteen
5 million dollars, but in no event shall such reduction exceed five
6 million dollars.
7 Provided, however, that in the case of no more than one vendor track
8 located in the town of Thompson in Sullivan county at the site of the
9 former Concord Resort with a qualified capital investment, and one thou-
10 sand full-time, permanent employees if at any time after three years of
11 opening operations of the licensed video gaming facility or licensed
12 vendor track, the vendor track experiences an employment shortfall, then
13 the recapture amount shall apply, for only such period as the shortfall
14 exists.
15 For the purposes of this section "qualified capital investment" shall
16 mean an investment of a minimum of six hundred million dollars as
17 reflected by audited financial statements of which not less than three
18 hundred million dollars shall be comprised of equity and/or mezzanine
19 financing as an initial investment in a county where twelve percent of
20 the population is below the federal poverty level as measured by the
21 most recent Bureau of Census Statistics prior to the qualified capital
22 investment commencing that results in the construction, development or
23 improvement of at least one eighteen hole golf course, and the
24 construction and issuance of certificates of occupancy for hotels, lodg-
25 ing, spas, dining, retail and entertainment venues, parking garages and
26 other capital improvements at or adjacent to the licensed video gaming
27 facility or licensed vendor track which promote or encourage increased
28 attendance at such facilities.
29 For the purposes of this section, "full-time, permanent employee"
30 shall mean an employee who has worked at the video gaming facility,
31 vendor track or related and adjacent facilities for a minimum of thir-
32 ty-five hours per week for not less than four consecutive weeks and who
33 is entitled to receive the usual and customary fringe benefits extended
34 to other employees with comparable rank and duties; or two part-time
35 employees who have worked at the video gaming facility, vendor track or
36 related and adjacent facilities for a combined minimum of thirty-five
37 hours per week for not less than four consecutive weeks and who are
38 entitled to receive the usual and customary fringe benefits extended to
39 other employees with comparable rank and duties.
40 For the purpose of this section "employment goal" shall mean one thou-
41 sand five hundred full-time permanent employees after three years of
42 opening operations of the licensed video gaming facility or licensed
43 vendor track.
44 For the purpose of this section "employment shortfall" shall mean a
45 level of employment that falls below the employment goal, as certified
46 annually by vendor's certified accountants and the chairman of the
47 empire state development corporation.
48 For the purposes of this section "recapture amount" shall mean the
49 difference between the amount of the vendor's fee paid to a vendor track
50 with a qualified capital investment, and the vendor fee otherwise paya-
51 ble to a vendor track pursuant to clause (F) of this subparagraph, that
52 is reimbursable by the vendor track to the division for payment into the
53 state treasury, to the credit of the state lottery fund created by
54 section ninety-two-c of the state finance law, due to an employment
55 shortfall pursuant to the following schedule only for the period of the
56 employment shortfall:
A. 6562 4
1 (i) one hundred percent of the recapture amount if the employment
2 shortfall is greater than sixty-six and two-thirds percent of the
3 employment goal;
4 (ii) seventy-five percent of the recapture amount if the employment
5 shortfall is greater than thirty-three and one-third percent of the
6 employment goal;
7 (iii) forty-nine and one-half percent of the recapture amount if the
8 employment shortfall is greater than thirty percent of the employment
9 goal;
10 (iv) twenty-two percent of the recapture amount if the employment
11 shortfall is greater than twenty percent of the employment goal;
12 (v) eleven percent of the recapture amount if the employment shortfall
13 is greater than ten percent of the employment goal.
14 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
15 this subparagraph, the track operator of a vendor track OR OFF-TRACK
16 BETTING OPERATOR OF A VENDOR OFF-TRACK BETTING CORPORATION shall be
17 eligible for a vendor's capital award of up to four percent of the total
18 revenue wagered at the vendor track OR VENDOR OFF-TRACK BETTING FACILITY
19 after payout for prizes pursuant to this chapter, which shall be used
20 exclusively for capital project investments to improve the facilities of
21 the vendor track which promote or encourage increased attendance at the
22 video lottery gaming facility including, but not limited to hotels,
23 other lodging facilities, entertainment facilities, retail facilities,
24 dining facilities, events arenas, parking garages and other improvements
25 that enhance facility amenities; provided that such capital investments
26 shall be approved by the division, in consultation with the state
27 [racing and wagering board] GAMING COMMISSION, and that such vendor
28 track OR VENDOR OFF-TRACK BETTING FACILITY demonstrates that such capi-
29 tal expenditures will increase patronage at such vendor track's OR
30 VENDOR'S OFF-TRACK BETTING facilities and increase the amount of revenue
31 generated to support state education programs. The annual amount of such
32 vendor's capital awards that a vendor track shall be eligible to receive
33 shall be limited to two million five hundred thousand dollars, except
34 for Aqueduct racetrack, for which there shall be no vendor's capital
35 awards. Except for tracks OR OFF-TRACK BETTING FACILITIES having less
36 than one thousand one hundred video gaming machines, each track operator
37 OR OFF-TRACK BETTING FACILITY OPERATOR shall be required to co-invest an
38 amount of capital expenditure equal to its cumulative vendor's capital
39 award. For all tracks OR OFF-TRACK BETTING FACILITIES, except for Aque-
40 duct racetrack, the amount of any vendor's capital award that is not
41 used during any one year period may be carried over into subsequent
42 years ending before April first, two thousand fourteen. Any amount
43 attributable to a capital expenditure approved prior to April first, two
44 thousand fourteen and completed before April first, two thousand sixteen
45 shall be eligible to receive the vendor's capital award. In the event
46 that a vendor track's capital expenditures, approved by the division
47 prior to April first, two thousand fourteen and completed prior to April
48 first, two thousand sixteen, exceed the vendor track's cumulative capi-
49 tal award during the five year period ending April first, two thousand
50 fourteen, the vendor shall continue to receive the capital award after
51 April first, two thousand fourteen until such approved capital expendi-
52 tures are paid to the vendor track subject to any required co-invest-
53 ment. In no event shall any vendor track OR VENDOR OFF-TRACK BETTING
54 FACILITY that receives a vendor fee pursuant to clause (F) or (G) of
55 this subparagraph be eligible for a vendor's capital award under this
56 section. Any operator of a vendor track OR VENDOR OFF-TRACK BETTING
A. 6562 5
1 FACILITY which has received a vendor's capital award, choosing to divest
2 the capital improvement toward which the award was applied, prior to the
3 full depreciation of the capital improvement in accordance with general-
4 ly accepted accounting principles, shall reimburse the state in amounts
5 equal to the total of any such awards. Any capital award not approved
6 for a capital expenditure at a video lottery gaming facility by April
7 first, two thousand fourteen shall be deposited into the state lottery
8 fund for education aid; and
9 (I) Notwithstanding any provision of law to the contrary, free play
10 allowance credits authorized by the division pursuant to subdivision f
11 of section sixteen hundred seventeen-a of this article shall not be
12 included in the calculation of the total amount wagered on video lottery
13 games, the total amount wagered after payout of prizes, the vendor fees
14 payable to the operators of video lottery facilities, vendor's capital
15 awards, fees payable to the division's video lottery gaming equipment
16 contractors, or racing support payments.
17 S 3. Subparagraph (iii) of paragraph 1 and the opening paragraph of
18 paragraph 2 of subdivision b of section 1612 of the tax law, as amended
19 by section 1 of part O-1 of chapter 57 of the laws of 2009, are amended
20 to read as follows:
21 (iii) less an additional vendor's marketing allowance at a rate of ten
22 percent for the first one hundred million dollars annually and eight
23 percent thereafter of the total revenue wagered at the vendor track OR
24 VENDOR OFF-TRACK BETTING FACILITY after payout for prizes to be used by
25 the vendor track OR VENDOR OFF-TRACK BETTING FACILITY for the marketing
26 and promotion and associated costs of its video lottery gaming oper-
27 ations and pari-mutuel horse racing operations, as long as any such
28 costs associated with pari-mutuel horse racing operations simultaneously
29 encourage increased attendance at such vendor's video lottery gaming
30 facilities, consistent with the customary manner of marketing comparable
31 operations in the industry and subject to the overall supervision of the
32 division; provided, however, that the additional vendor's marketing
33 allowance shall not exceed eight percent in any year for any operator of
34 a racetrack located in the county of Westchester or Queens; provided,
35 however, a vendor track OR VENDOR OFF-TRACK BETTING FACILITY that
36 receives a vendor fee pursuant to clause (G) of subparagraph (ii) of
37 this paragraph shall not receive the additional vendor's marketing
38 allowance. In establishing the vendor fee, the division shall ensure the
39 maximum lottery support for education while also ensuring the effective
40 implementation of section sixteen hundred seventeen-a of this article
41 through the provision of reasonable reimbursements and compensation to
42 vendor tracks OR VENDOR OFF-TRACK BETTING FACILITIES for participation
43 in such program. Within twenty days after any award of lottery prizes,
44 the division shall pay into the state treasury, to the credit of the
45 state lottery fund, the balance of all moneys received from the sale of
46 all tickets for the lottery in which such prizes were awarded remaining
47 after provision for the payment of prizes as herein provided. Any reven-
48 ues derived from the sale of advertising on lottery tickets shall be
49 deposited in the state lottery fund.
50 As consideration for the operation of a video lottery gaming facility,
51 the division, shall cause the investment in the racing industry of a
52 portion of the vendor fee received pursuant to paragraph one of this
53 subdivision in the manner set forth in this subdivision. With the
54 exception of ANY VENDOR OFF-TRACK BETTING FACILITY AND Aqueduct race-
55 track, each such track shall dedicate a portion of its vendor fees,
56 received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of
A. 6562 6
1 subparagraph (ii) of paragraph one of this subdivision, solely for the
2 purpose of enhancing purses at such track, in an amount equal to eight
3 and three-quarters percent of the total revenue wagered at the vendor
4 track after pay out for prizes. In addition, with the exception of Aque-
5 duct racetrack, one and one-quarter percent of total revenue wagered at
6 the vendor track after pay out for prizes, received pursuant to clause
7 (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph
8 one of this subdivision, shall be distributed to the appropriate breed-
9 ing fund for the manner of racing conducted by such track.
10 S 4. Subdivision a of section 1617-a of the tax law, as amended by
11 section 2 of part O-1 of chapter 57 of the laws of 2009, is amended to
12 read as follows:
13 a. The division of the lottery is hereby authorized to license, pursu-
14 ant to rules and regulations to be promulgated by the division of the
15 lottery, the operation of video lottery gaming at (1) Aqueduct, Monti-
16 cello, Yonkers, Finger Lakes, and Vernon Downs racetracks, or at any
17 other racetrack licensed pursuant to article three of the racing, pari-
18 mutuel wagering and breeding law that are located in a county or coun-
19 ties in which video lottery gaming has been authorized pursuant to local
20 law, excluding the licensed racetrack commonly referred to in article
21 three of the racing, pari-mutuel wagering and breeding law as the "New
22 York state exposition" held in Onondaga county and the racetracks of the
23 non-profit racing association known as Belmont Park racetrack and the
24 Saratoga thoroughbred racetrack; AND (2) AT ONE REGIONAL OFF-TRACK
25 BETTING CORPORATION FACILITY LICENSED PURSUANT TO SECTION ONE THOUSAND
26 EIGHT OR ONE THOUSAND NINE OF THE RACING, PARI-MUTUEL WAGERING AND
27 BREEDING LAW WITHIN THE NASSAU REGION AND THE SUFFOLK REGION. Such
28 rules and regulations shall provide, as a condition of licensure, that
29 racetracks OR REGIONAL OFF-TRACK BETTING CORPORATIONS, AS CREATED BY
30 SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREED-
31 ING LAW, to be licensed are certified to be in compliance with all state
32 and local fire and safety codes, that the division is afforded adequate
33 space, infrastructure, and amenities consistent with industry standards
34 for such video gaming operations as found at racetracks in other states,
35 that racetrack OR REGIONAL OFF-TRACK BETTING CORPORATION employees
36 involved in the operation of video lottery gaming pursuant to this
37 section are licensed by the racing and wagering board, and such other
38 terms and conditions of licensure as the division may establish.
39 Notwithstanding any inconsistent provision of law, video lottery gaming
40 at a racetrack OR REGIONAL OFF-TRACK BETTING CORPORATION pursuant to
41 this section shall be deemed an approved activity for such racetrack OR
42 REGIONAL OFF-TRACK BETTING CORPORATION under the relevant city, county,
43 town, or village land use or zoning ordinances, rules, or regulations.
44 No entity licensed by the division operating video lottery gaming pursu-
45 ant to this section may house such gaming activity in a structure deemed
46 or approved by the division as "temporary" for a duration of longer than
47 eighteen-months. Nothing in this section shall prohibit the division
48 from licensing an entity to operate video lottery gaming at an existing
49 racetrack as authorized in this subdivision whether or not a different
50 entity is licensed to conduct horse racing and pari-mutuel wagering at
51 such racetrack pursuant to article two or three of the racing, pari-mu-
52 tuel wagering and breeding law.
53 The division, in consultation with the [racing and wagering board]
54 STATE GAMING COMMISSION, shall establish standards for approval of the
55 temporary and permanent physical layout and construction of any facility
56 or building devoted to a video lottery gaming operation. In reviewing
A. 6562 7
1 such application for the construction or reconstruction of facilities
2 related or devoted to the operation or housing of video lottery gaming
3 operations, the division, in consultation with the racing and wagering
4 board, shall ensure that such facility:
5 (1) possesses superior consumer amenities and conveniences to encour-
6 age and attract the patronage of tourists and other visitors from across
7 the region, state, and nation.
8 (2) has adequate motor vehicle parking facilities to satisfy patron
9 requirements.
10 (3) has a physical layout and location that facilitates access to and
11 from the horse racing track portion of such facility to encourage patro-
12 nage of live horse racing events that are conducted at such track.
13 S 5. This act shall take effect the first of January next succeeding
14 the date on which it shall have become a law.
A coalition of unions and employers is proposing
changes to the federal law that governs the pension plans of about 10
million people, including reducing benefits paid to retirees, the first
time in four decades that such cuts would be allowed.
The proposal, which would undo guarantees put in place by federal law
in 1974, is already stirring controversy among pension-rights advocates
and rank-and-file union members. It was developed by some of the
nation's biggest unions, including the Teamsters and United Food and
Commercial Workers, and industry trade groups such as the Associated
General Contractors of America.
Pension experts say a report issued by
the group earlier this year will likely serve as the foundation of a
bill to replace rules governing pensions that expire in 2014. Sen. Tom
Harkin (D., Iowa), chairman of the Senate committee overseeing pension
policy, called the proposals, which include cutting retiree benefits, "a
starting place."
"The fact that labor and management were able to come together and
agree on a comprehensive proposal to protect the pensions of millions of
middle-class families is a significant development," Mr. Harkin said.
The plan is the latest to address a chunk of the nation's creaky
retirement infrastructure. President Barack Obama's budget proposal this
past week could also lead to a reduction in Social Security benefits
for retirees. And on Monday, the Government Accountability Office said
the number of insolvent multi-employer pension plans could double by
2017.
Something must be done to shore up about 10% of the roughly 1,450
multi-employer pension plans in the U.S., pension experts say. The
plans, which are funded by groups of employers in construction, trucking
and retail food, and pay out a monthly check known as a defined
benefit, are the backbone of the retirement security for 10.3 million
retirees and current workers.
More than half of such plans are funded to at least 80% of their
liabilities. That is up from one out of five plans at that level in late
2008, after the stock market tanked. But a minority is in far worse
shape. As many as 150 multi-employer plans are headed toward insolvency,
according to government projections.
For those troubled plans, unions and employers are proposing that the
Employee Retirement Income Security Act of 1974 be rewritten so that
benefits for people who are already retired can be reduced. Without that
fix, advocates argue, the plans will run out of money and retirees will
end up with a fraction of their current benefits when the government
takes over the plans.
Advocates say early cuts can stave off deeper ones down the road.
Under the proposal, trustees from labor and management would determine
how deeply to cut benefits to return the plans to solvency. One labor
official said the cuts could take effect within a year of the decision.
The cuts would depend on each plan's finances and could reduce
benefits to as little of 110% of the level guaranteed by the Pension
Benefit Guaranty Corp., the federal agency that backstops private-sector
pensions. The 110% level amounts to $12,870 a year for people who
retire at age 65 with 30 years of service.
"What we're really trying to do is salvage the system," said Randy
DeFrehn, executive director of the National Coordinating Committee for
Multiemployer Plans, a nonprofit group that assembled the
labor-management coalition.
The coalition is recommending additional changes to multi-employer
pension plans. It is also proposing a new form of pension plan that
would carry less risk for employers than a defined-benefit pension, but
is designed to provide more security for retirees than a 401(k). The
assets are pooled, rather than held in individual accounts, reducing the
investment risk to retirees. Employers would contribute a negotiated
amount but wouldn't be liable for additional payments if funding levels
dropped, as they currently are with multiemployer pensions.
Mr. DeFrehn said cutting retiree benefits is the controversial
proposal, but noted that lawmakers have said they don't intend to bail
out the pension plans. "This is kind of a reverse bailout," he said. "It
shifts a lot of liabilities away from the public sector and the
taxpayer."
Retiree advocates are raising red flags. Karen Ferguson, director of
Pension Rights Center, a Washington, D.C., group that advocates for
employees and retirees, said the union and management interest in the
long-term survival of plans might conflict with the interests of older
retirees who can't afford to lose their income now. She saidshe thinks
legislation should make sure retirees have input in the cuts, and that
Congress should consider alternatives to the cuts.
Greg Smith, 64 years old, a Norton, Ohio, truck driver who retired in
2011 after working 31 years, agrees. He now receives a monthly check
for $3,019 from a Teamsters pension plan that is projected to become
insolvent in 2024. If that happens, the PBGC would take over and his
benefit could be cut to as low as $1,100 a month.
Under the new proposal, his benefits could be trimmed before funds
run out, giving the plan's investments a chance to recover in the
market. His benefits would be guaranteed not to fall below $1,210 a
month, 110% of the PBGC level.
"It's a precarious position for a lot of us retirees," Mr. Smith
said. "Let's come up with a plan that doesn't trash the retirees and put
them in the poorhouse."
A spokeswoman for the Teamsters, which participated in the coalition,
declined to comment on the plan or whether the union endorses it.
David Blitzstein, who oversees multi-employer plans for United Food
and Commercial Workers, said cutting benefits remains controversial for
unions, companies and members of Congress. He participated in the 18
months of talks that led to the proposals. "It was a very tough bullet
to bite for everyone in the room," he said. Mr. Blitzstein said the
majority of unions in the coalition supported cutting retiree benefits.
The UFCW has openly endorsed it. It has retirees in about 60
multi-employer plans, covering 1.4 million people. He said cutting
retiree benefits could be the only way to save about five deeply
troubled plans, and added that it wasn't clear how much benefits would
have to be cut. "We haven't modeled it yet in some of these really sick
plans."
Over time, numerous factors have hurt the ability of plans to fund
benefits. Bankruptcies have cut the number of employers paying into some
plans, economic downturns hurt investment returns, and some policy
decisions intended to strengthen plans ended up weakening them.
The first multi-employer plans were created during World War II, when
wages were controlled by the War Labor Board. Pensions were offered to
unions as a trade-off. They were among "fringe benefits." At first,
company contributions were the sole source of income. Funding problems
in the 1960s were addressed by the passage of Erisa in 1974, which
required advance funding, and investments became the main funding
source.
By the 1980s, some plans were so well-funded that companies risked
losing the tax-exempt status of contributions. They responded by
increasing benefits for retirees to levels that have never been reduced.
Multi-employer plans recovered from the bursting of the tech bubble in
2000 and the median plan was 90% funded in 2007. But they were
devastated by the 2008 market crash.
Now it's harder to make a comeback because plans' recent investment
gains are based on a smaller asset base. Contributions by employers are
made per hour worked, and have lagged behind as employment has remained
weak. Many plans are starting to have more retirees drawing benefits
than active workers. Some companies have paid a penalty to withdraw from
plans to get the liability off their books, leaving fewer employers
paying into plans.
Big and small companies now say their future is threatened by
underfunded plans. The problem is also holding down wages and benefits
for current workers in industries like trucking.
Judy McReynolds, president and chief executive of Arkansas Best Corp.,
ABFS-1.37%
is among executives who back the coalition's proposals. The company's
ABF Freight System unit participates in 25 multi-employer plans, and has
7,500 Teamster employees, two-thirds of whom are enrolled in troubled
plans. She said half of ABF's annual pension contributions of $132
million are for people who never worked for the company, and that its
contributions are 14 times greater than those of competitors. "This is
not sustainable," she said. "It is imperative that we find concrete
solutions." Write to Kris Maher at kris.maher@wsj.com
must be open 365 days of the year and that even G...d be he Silver or Cuomo can't pick and choose one Easter Sunday over the other or one Palm Sunday over the other. On the shooting side of things neither of these guys have gone out of their way to reduce healthcare costs and improve the quality of life for New Yorkers by seeing that the State makes BCG available to its citizens. See faustmanlab.org and pubmed.org faustman dl
Gov. Andrew Cuomo: 'power establishment' to blame for corruption scandals.
Gov. Cuomo yesterday shifted blame for New York’s
political-corruption crisis to a “power establishment” that includes
Assembly Speaker Sheldon Silver and other entrenched members of the
state Legislature.
During an interview with The Post’s editorial
board, Cuomo was asked about Manhattan US Attorney Preet Bharara’s
criticisms that New York’s leaders were condoning public corruption by
turning a blind eye to it.
“It’s been going on for 20 years.
That’s where I think the Post story came from today,” Cuomo said,
referring to Fredric U. Dicker’s column that the governor and his team
discussed ousting Silver from the powerful speaker post he’s held since
1994.
“The power establishment has been there a long time. I think that’s what [Bharara] was saying,” the governor said.
Bharara
last week condemned New York politics, saying corruption is “rampant”
in the state as he charged three elected officials and party leaders in
bribery scams.
Yesterday, Cuomo expounded on that notion, saying
there are too many rotten apples in Albany because the state capital’s
bad reputation and incumbent-driven political culture discourages the
best and brightest from running for office, and instead attracts lesser
lights or hacks tied to political party leaders.
“Why aren’t we
electing better people? I think about it. There has been a degradation
of state government across the board. This is a long generation up
there. Ten, 15 years. New York state government. Nobody wanted to go,”
Cuomo said.
“If you wanted to go into government, you went to
Washington or New York City. You didn’t go to Albany. Are we paying a
price for that? Maybe so.
“Every nine months or a year or so,
you’ve had high-level elected officials, stupid, venal politicians
getting themselves in trouble. It’s a story of power and greed.”
Cuomo’s
comments come a week after state Sen. Malcolm Smith (D-Queens),
Councilman Dan Halloran (R-Queens) and two city Republican party leaders
were charged in a bribery scheme to allegedly give Smith access to the
GOP ballot.
Days later, Bronx Assemblyman Eric Stevenson was
indicted in a separate bribery sting for allegedly drafting
legislation-to-order for businessmen willing to fork over cold hard
cash. The feds used corrupt Assemblyman Nelson Castro, who cooperated
with the prosecution, to bust Stevenson.
During the 75-minute
interview yesterday, Cuomo vowed to fight for legislation aimed at
curbing the seemingly non-stop corruption in the scandal-scarred
Legislature.Cuomo maintained that Bharara was criticizing the
legislative leadership for corruption, the governor insisted, however,
he was not plotting to topple Silver. Nor did he hold him alone
responsible for the latest scandal.
Roman Catholic Easter Sunday in preference to Greek Orthodox Easter
Sunday. Is it any wonder that NY is bankrupt and its OTBs going
bankrupt one after the other? See NY PML Sec 109 and NY Const. Art. 1,
Sec. 3 etc. You might think that one as yet unidicted NY official with
standing would avail themselves of a FREE formal or informal opinion
from NY Attorney General Eric Schneiderman.
See below
Photo credit: AP | In this photo provided by New
York Racing Association, Stay Thirsty, left, with Ramon Dominguez
aboard, captures The G1 Cigar Mile horse race at Aqueduct in New York.
(Nov. 24, 2012)
To see what's wrong up in Albany, one only
needs to look at the fact that the Aqueduct Racetrack was closed on
Palm Sunday. On an average Sunday, The Big A has a total handle of
between $6 million and $7 million, of which New York
State takes a percentage.
Racing also injects money into the industry, paying jockeys,
trainers, grooms, etc. Hundreds of employees -- pari-mutuel clerks and
racing officials -- help put on the show, which the state gets a piece
of in income taxes.
All of this, worth thousands upon thousands of dollars, was lost
because on an antiquated law. Not being allowed to race on Christmas or
Easter is OK, but Palm Sunday? The New York
Racing Authority races on Thanksgiving,
and that's a holiday that the vast majority of us celebrate.
Changing this law would be a slam-dunk revenue creator. Gerard Bringmann, Patchogue Editor's note: The writer is both a racing fan and a
practicing Catholic.
Stop scratching on holidays
Published: June 1, 2012
Off Track Betting in New York State has
been racing into a crisis called shrinking revenue. Some people have
spitballed a solution: Don’t close on holidays. New
York State Racing Law
bars racing on Christmas, Easter and Palm Sunday, and the state has
ruled OTBs can’t handle action on those days, even though they could
easily broadcast races from out of state. “You
should be able to bet whenever you want,” said Jackson Leeds, a Nassau
OTB employee who makes an occasional bet. He added some irrefutable
logic: “How is the business going to make money if you’re not open to
take people’s bets?” Elias
Tsekerides, president of the
Federation of Hellenic Societies of
Greater New York, said OTB is open on Greek Orthodox Easter and
Palm Sunday. “I
don’t want discrimination,” Tsekerides said. “They close for the
Catholics, but open for the Greek Orthodox? It’s either open for all or
not open.” OTB
officials have said they lose millions by closing on Palm Sunday alone,
with tracks such as Gulfstream, Santa Anita, Turf Paradise and
Hawthorne running. One
option: OTBs could just stay open and face the consequences. New York
City OTB did just that back in 2003. The handle was about $1.5 million
– and OTB was fined $5,000. Easy
money.
Perhaps Sheldon Silver should spend less time talking with Barry Yomtov Business Agent for Teamsters Local 707 and past President of Teamsters Local 858 which represented inter alia the Managers of the late bankrupt NYC OTB.
N.Y.R.A. president Terry Meyocks speaks at a news conference
announcing the post position draw as Funny Cide jockey Jose Santos,
right, looks on Wednesday, June 4, 2003 at Belmont Park in Elmont, N.Y.
(AP Photo/Frank Franklin II)
Lawmakers are trying to make sure the budget deal expected to
be completed this week provides for about $2 million a year from
gambling revenues for health insurance coverage for some of New
York's jockeys.
Leaders of the Assembly and Senate want jockeys
who regularly ride on New York's thoroughbred tracks to get a cut of the
extra purse money generated by video lottery terminal gambling at the
flat tracks.
The provision was set up by some last-minute
lobbying on behalf of the Lexington, Ky.-based Jockeys' Guild. The guild
would get the money to help jockeys afford health coverage for
themselves and their families, said Guild representatives.
Lobbyist Brian Meara,
whose firm is being paid $2,000 monthly to represent the guild, said he
figured the time was right to seek some help for health care costs of
people in a dangerous and short-lived occupation since Gov. Andrew Cuomo was already seeking to get a cut of VLT funds to pay for horse safety programs.
"The issue here is there are a handful of jockeys who could afford this themselves," Meara said.
The
measure calls for 2.5 percent of the purse fund fueled by VLT revenues
to go to the jockeys' health benefit. The horse owners' association
opposes the deal, saying it amounts to double-dipping since trainers and
owners pay $3 million a year for workers' compensation coverage. Rick Violette,
president of the owners' association, said jockeys are also getting
bigger paydays in New York because their cut of purses is rising with
additional cash from VLTs. "The jockeys are acting like they don't get
anything, when they get a $4 million pay increase because they get 8
percent of gross purses," he said.
Jockeys' Guild General Counsel Thomas Kennedy
said the Legislature's plan would make New York on par with several
others states that subsidize health insurance costs of riders. (Kentucky
is not one of those states.) He said the guild used to help provide the
coverage, and that was one of the expenses that sent the organization
into bankruptcy in 2007.
Under a $120,000 contract, the guild is run by former New York Racing Association President Terence Meyocks. He left NYRA in 2003 when he was blamed for mismanagement.
Kennedy
said only the top jockeys receive the big pay and many need insurance
for non-riding injuries and illnesses, which are not covered by workers'
compensation. About 75 New York jockeys would benefit from the safety
net the Legislature requested.
It would result in $1.3 million in
Aqueduct VLT revenues and $309,300 in Finger Lakes VLT revenues going
to a dedicated account at the guild for New York riders and the total
would be capped at $2 million even if gambling growth
exceeds projections.
Gov. Andrew Cuomo's office said the governor is reviewing the proposal.
Video appeal denied
The state turned down the Times Union's appeal of a denial of the video recording of Medicaid Inspector General James Cox's Nov. 20, 2012, address to all OMIG employees following the newspaper's report about the office's poor performance.
The
basis of the rejection was that his communication to workers "was not
factual in nature" and needed to contain objective information as
opposed to opinions, ideas or advice. jodato@timesunion.com • 518-454-5083 • @JamesMOdato
play a role in brokering differences within a religious community but you can be.... damn sure that Andrew Cuomo will close Nassau OTB on Roman Catholic Palm Sunday in preference to Greek Orthodox Palm Sunday and Roman Catholic Easter Sunday in preference to Greek Orthodox Easter Sunday. NY Const. Art. 1, Sec. 3 is toilet paper!! Lucky for Mathew Wing and Andrew Cuomo that you would never find a Satmar in NYC OTB before it died or in Nasau OTB.
NY PML Sec 109 does not pass the laugh test, constitutional scrutiny or legal scrutiny. New York Bettors sadly are not as well organized as the Satmar nor does Teamsters Local 707 Kevin McCaffrey President and former NYC OTB Manager Barry Yomtov Business Agent care about people being free to do as they please.
First graders in a crowded
classroom at Bais Rochel d'Satmar, a girls' yeshiva in Williamsburg,
Brooklyn, in the building that once was Eastern District High School.
The late-19th-century National Guard armory in Williamsburg, a
165,000-square-foot brick fortress with crenelated towers at the
corners, has been empty for two years, and is now used mostly for film
shoots.
If the Satmar Hasidim can buy the vacant National
Guard armory on Marcy Avenue in Williamsburg, they could relieve school
crowding, accommodate social functions and perhaps bridge a schism in
the ultra-Orthodox sect.
But in a Brooklyn neighborhood where a real estate rush is fueled by
both gentrification and a fast-growing Hasidic community, the Satmar
sect is eyeing the building as a possible solution not only to the
perennial space crunch in its schools and synagogues, but also to a bitter schism that has divided the community in two.
The Satmar Hasidim, the dominant sect in Williamsburg, consider the
3.2-acre, square-block site an ideal location for a large school, along
with housing and a community hall. And the building is now for sale: The
Empire State Development Corporation, a state authority, plans soon to
put out a request for proposals for the site, which is known both as the
47th Regiment Armory and as the Marcy Avenue Armory.
While the state authority has said it hopes to spur a “a competitive
process” and capture “the best value for New York State taxpayers,” it
also plans to require in its request for proposals that the site be used
to benefit “the needs and priorities of the local community,”
potentially giving an edge to the Satmar Hasidim — an important voting
bloc increasingly courted by politicians.
“We’re looking forward to getting the R.F.P. and trying to come up with
the best price we can afford,” said Rabbi Chaim Mandel, the business
administrator for United Talmudical Academy, a large, ultra-Orthodox day
school whose operations now are spread across 15 buildings.
The Satmar community is so fast-growing that it is desperate for space —
for classrooms, worship services, wedding halls and other social
functions.
The armory closed in 2011, after the federal government called for a
consolidation of military installations, and since then the Satmars have
occasionally used the building for teeming celebrations on the
anniversary of the day in 1944 that the founder of the sect in America, Rabbi Joel Teitelbaum,
escaped Nazi-occupied Hungary. The two factions of the community,
unable to work together because of rival dynastic claims, have
alternated use of the building: In 2011, a group called the Zaloynim
celebrated there, with 10,000 people filling the cavernous
60,000-square-foot drill hall, and last December it was the turn of the
other group, called the Aroynem.
According to articles in news outlets for the ultra-Orthodox, Satmar
leaders have been discussing their desire to buy the building with an
Orthodox businessman, Abraham Eisner, who in the past has served as a
campaign liaison to Gov. Andrew M. Cuomo. Mr. Eisner did not return
several calls seeking to discuss his role, but it would be a complicated
one — the Satmar division over leadership has spilled over to the
financial realm and now includes disputes over millions of dollars in
property, including two synagogue buildings, four upstate summer camps,
cemeteries and even a matzo bakery.
Some in the community hope that the availability of the armory, with its
huge halls, at a price that is low given skyrocketing local real estate
costs, will be an incentive for the Satmar sects to bridge their
divisions, because the state is unlikely to side with one group over the
other.
“There is a deliberate serious effort under way to bridge the historical divide between the largest Satmar factions,” said Michael Tobman, a consultant to the Aroynem.
An ultra-Orthodox Web site called Vos Iz Neias? (What Is New?) has
suggested that Mr. Eisner is close “to sealing a deal that would result
in a joint purchase of the armory by Satmar’s warring factions.” And the
Hasidic blog Let’s Talk Dugri has sketched the outlines of a possible deal,
while pointing out that uniting the two Satmar factions would create a
powerful political bloc of votes, since the community tends to vote
according to the guidance of its leaders.
But Matthew Wing, a spokesman for Mr. Cuomo, said the governor would not
play a role in brokering differences within a religious community.
“No one from the governor’s office is involved in any kind of ‘deal,’
and rumors to the contrary are just that: rumors,” Mr. Wing said in an
e-mail.
All sides agree that the Satmars, who tend to have a high birthrate and
large families, need more space. Rabbi Benzion Feuerwerger, the Hebrew
principal of Bais Rochel d’Satmar, a girls’ yeshiva in Williamsburg,
describes a dilemma as architectural and mathematical as it is Talmudic.
In June, Bais Rochel will graduate eight classes of eighth graders, but
in September it will enroll 16 classes of first graders. How will he
accommodate the newcomers?
“We know one thing: We are out of space,” Rabbi Feuerwerger said. “We
only have eight empty classrooms for 16 classes. We’re looking to rent.”
Rabbi Hertz Frankel, the longtime English studies administrator of Bais
Rochel, estimated that together the two Satmar factions had 30,000
students crowded into more than 20 buildings in Williamsburg, Borough
Park and upstate in Monsey and Kiryas Joel.
His girls school has 2,400 students in its century-old building, which
was once the public Eastern District High School. Some classes are held
in bathrooms and closets, and preschool classes are in trailers. As a
result, the only outdoor space available for recess is a yard the size
of a basketball court.
To emphasize how rapid the Satmar growth has been, Rabbi Frankel pointed
out that when he started out as a principal in 1959, the entire Satmar
school system had just 800 students. With 30,000 students now and 4,500
expected in another five years, the Satmar desperately need the armory,
he said.
“Any space that would be provided would be important; otherwise we can’t survive here,” Rabbi Frankel said.
Photo credit: AP | In this photo provided by New
York Racing Association, Stay Thirsty, left, with Ramon Dominguez
aboard, captures The G1 Cigar Mile horse race at Aqueduct in New York.
(Nov. 24, 2012)
To see what's wrong up in Albany, one only
needs to look at the fact that the Aqueduct Racetrack was closed on
Palm Sunday. On an average Sunday, The Big A has a total handle of
between $6 million and $7 million, of which New York
State takes a percentage.
Racing also injects money into the industry, paying jockeys,
trainers, grooms, etc. Hundreds of employees -- pari-mutuel clerks and
racing officials -- help put on the show, which the state gets a piece
of in income taxes.
All of this, worth thousands upon thousands of dollars, was lost
because on an antiquated law. Not being allowed to race on Christmas or
Easter is OK, but Palm Sunday? The New York
Racing Authority races on Thanksgiving,
and that's a holiday that the vast majority of us celebrate.
Changing this law would be a slam-dunk revenue creator. Gerard Bringmann, Patchogue Editor's note: The writer is both a racing fan and a
practicing Catholic.
thinks that the State of NY can pick and chose one Easter Sunday over another to close Nassau OTB
thinks that the State of NY can pick and chose one Palm Sunday over another to close Nassau OTB
Roman Catholic believers and Greek Orthodox believers do not observe the same holiday on the same day.
Is it any wonder that NY State is bankrupt when it can't be bothered to read NY Const. Art. 1, Sec. 3 and NY PML Sec 109
Bettors must bet and the faithful must pray whenever they wish.
The state budget may have been completed on time, but the state
still faces serious fiscal challenges, Comptroller Thomas DiNapoli said
in a report today. The
$136 billion budget, adopted March 28, relies on more than $4 billion
in temporary and non-recurring revenue and $5.1 billion in federal
assistance for Superstorm Sandy recovery expenses, DiNapoli said.
The largest budget gimmick is the transfer of at least $1.75 billion
from reserves held by the State Insurance Fund to cover operating
expenses through the 2016-17 fiscal year. The 2013-14 fiscal year
started April 1, and the state budget was passed on-time for the third
year in a row—a first since 1984.
“The governor and the Legislature deserve credit for once again
adopting budget bills ahead of the April 1st deadline,” DiNapoli said in
a statement. “Nevertheless, New York continues to struggle to meet
serious fiscal challenges. The recently passed state budget restrains
spending growth, but it also contains temporary resources and revenue
assumptions that may fall short.”
DiNapoli said the budget adds $385 million in new public authority
debt for state and local facilities, and $750 million in public
authority debt related to transportation needs. Also, the budget allows
for increased borrowing by public authorities, which do not need public
approval to increase their debt load.
DiNapoli warned that the budget relies on risky estimates. For
example, the spending plan estimates tax receipts to be $200 million
higher than Gov. Andrew Cuomo’s budget proposal.
The budget also doesn’t address the potential fiscal impact of the
federal budget sequestration, which DiNapoli said could lead the state
to a decline of $290 million in federal aid.
Photo credit: AP | In this photo provided by New
York Racing Association, Stay Thirsty, left, with Ramon Dominguez
aboard, captures The G1 Cigar Mile horse race at Aqueduct in New York.
(Nov. 24, 2012)
To see what's wrong up in Albany, one only
needs to look at the fact that the Aqueduct Racetrack was closed on
Palm Sunday. On an average Sunday, The Big A has a total handle of
between $6 million and $7 million, of which New York
State takes a percentage.
Racing also injects money into the industry, paying jockeys,
trainers, grooms, etc. Hundreds of employees -- pari-mutuel clerks and
racing officials -- help put on the show, which the state gets a piece
of in income taxes.
All of this, worth thousands upon thousands of dollars, was lost
because on an antiquated law. Not being allowed to race on Christmas or
Easter is OK, but Palm Sunday? The New York
Racing Authority races on Thanksgiving,
and that's a holiday that the vast majority of us celebrate.
Changing this law would be a slam-dunk revenue creator. Gerard Bringmann, Patchogue Editor's note: The writer is both a racing fan and a
practicing Catholic.
all Nassau OTB employees should have the choice to work and/or bet on any Sunday that they wish.
They too may meet the dearly departed of NYC OTB someday.
![[image]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vBwWG8LCnFytEuyn4oUh4LNErGqfPGOAWlboI9rxlM4ReNTB37r4ZECcT2iYcLzd-IRMHBtkuq5I50_GGD2TRMlqKW6BTHx-3Mnzhx3QQBfzPxaWA9v777RZz_p8QGKxs6LsRRhftE1hV0RmOAGC_qFw=s0-d)
Printable Version
Email This
Font
