S T A T E   O F   N E W   Y O R K
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                                 5295--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 separately amended by chapters
174 and 175 of the laws of 2013, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01642-02-4
              

S. 5295--A                          2

be  no  vendor's  capital awards. Except for tracks having less than one
thousand [one] NINE hundred video gaming  machines,  and  except  for  a
vendor  track  located  west  of  State Route 14 from Sodus Point to the
Pennsylvania  border  within  New  York,  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 Aqueduct
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 fourteen. Any  amount  attribut-
able  to  a capital expenditure approved prior to April first, two thou-
sand fourteen and completed before April first, two thousand sixteen; or
approved prior to April  first,  two  thousand  eighteen  and  completed
before  April first, two thousand twenty for a vendor track located west
of State Route 14 from Sodus Point to the Pennsylvania border within New
York, shall be eligible to receive the vendor's capital  award.  In  the
event  that a vendor track's capital expenditures, approved by the divi-
sion prior to April first, two thousand fourteen and completed prior  to
April  first, two thousand sixteen, exceed the vendor track's cumulative
capital award during the five year period ending April first, two  thou-
sand  fourteen,  the  vendor shall continue to receive the capital award
after April first, two thousand fourteen  until  such  approved  capital
expenditures are paid to the vendor track subject to any required co-in-
vestment.  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 fourteen shall be deposited into the  state  lottery
fund for education aid; and
  S 2. This act shall take effect immediately.