Authorizes Native American nations and tribes to make payments to municipal governments hosting tribal casinos

Summary of provisions

Section 1 adds two new subdivisions (d) and (e) to § 12 of the Executive Law to allow for any municipal government who hosts a tribal casino to 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 State Finance Law (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 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.

Sections 3 and 4 add a new subdivision 2-a to SFL § 99-h, which requires 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 4 provides for an effective date.

Justification

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.

Legislative history

2011,2012: S.866C/A.9284A Referred to Finance 2010: S.8502 Referred to Rules

Fiscal implications

None to the State. The monies that will go to local governments that host Native American casinos if this bill becomes law are monies that they are otherwise entitled to receive under current state law.

Effective date

This act shall take effect immediately; provided, however, that section three of this act shall take effect on the same date as an agreement between the Oneida Nation of New York and the state of New York entered into on the sixteenth day of May, 2013 takes effect; and provided, further, that the amendments to subdivision 2 of section 99-h of the state finance law, made by sections two and three of this act, shall not affect the expiration and reversion of such section and the provisions of section two or three of this act shall expire and be deemed repealed therewith, when upon such date section four of this act shall take effect.