S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8570

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             August 31, 2011
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the tax law, in relation to video  gaming  machines  and
  disposition of revenues

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivi-
sion b of section 1612 of the tax law, as amended by section 6 of part K
of chapter 57 of the laws of 2010, is amended to read as follows:
  (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track shall be  eligi-
ble  for  a  vendor's  capital  award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant  to
this  chapter,  which  shall  be  used  exclusively  for capital project
investments to improve the facilities of the vendor track which  promote
or  encourage  increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging  facilities,  enter-
tainment   facilities,  retail  facilities,  dining  facilities,  events
arenas, parking garages and other  improvements  that  enhance  facility
amenities;  provided  that such capital investments shall be approved by
the division, in consultation with the state racing and wagering  board,
and  that  such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities  and  increase
the amount of revenue generated to support state education programs. The
annual  amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited  to  two  million  five  hundred
thousand  dollars,  except for Aqueduct racetrack, for which there shall
be no vendor's capital awards. Except for tracks having  less  than  one
thousand  [one]  NINE hundred video gaming machines, each track operator
shall be required to co-invest an amount of capital expenditure equal to
its cumulative vendor's capital award. For all tracks, except for  Aque-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13160-03-1
              

A. 8570                             2

duct  racetrack,  the  amount  of any vendor's capital award that is not
used during any one year period may  be  carried  over  into  subsequent
years  ending  before  April  first,  two  thousand thirteen. Any amount
attributable to a capital expenditure approved prior to April first, two
thousand thirteen and completed before April first, two thousand fifteen
shall  be  eligible  to receive the vendor's capital award. In the event
that a vendor track's capital expenditures,  approved  by  the  division
prior to April first, two thousand thirteen and completed prior to April
first,  two thousand fifteen, exceed the vendor track's cumulative capi-
tal award during the five year period ending April first,  two  thousand
thirteen,  the  vendor shall continue to receive the capital award after
April first, two thousand thirteen until such approved capital  expendi-
tures  are  paid  to the vendor track subject to any required co-invest-
ment. In no event shall any vendor track  that  receives  a  vendor  fee
pursuant  to  clause  (F)  or (G) of this subparagraph be eligible for a
vendor's capital award under this section.  Any  operator  of  a  vendor
track  which  has  received a vendor's capital award, choosing to divest
the capital improvement toward which the award was applied, prior to the
full depreciation of the capital improvement in accordance with general-
ly accepted accounting principles, shall reimburse the state in  amounts
equal  to  the  total of any such awards. Any capital award not approved
for a capital expenditure at a video lottery gaming  facility  by  April
first,  two  thousand thirteen shall be deposited into the state lottery
fund for education aid; and
  S 2. This act shall take effect immediately.