S T A T E   O F   N E W   Y O R K
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                                 961--A
                                                         Cal. No. 45

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 8, 2015
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Ways and Means -- advanced to  a  third  reading,  amended  and
  ordered reprinted, retaining its place on the order of third reading

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 1  of  part
MM of chapter 59 of the laws of 2015, 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, and except for a
vendor track located west of State Route 14  from  Sodus  Point  to  the

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

                                                           LBD05388-03-6

A. 961--A                           2

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 sixteen. Any amount attributable
to  a  capital  expenditure  approved prior to April first, two thousand
sixteen and completed before April  first,  two  thousand  eighteen;  or
approved  prior to April first, two thousand twenty and completed before
April first, two thousand twenty-two 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 sixteen and completed  prior  to
April first, two thousand eighteen, exceed the vendor track's cumulative
capital  award during the five year period ending April first, two thou-
sand sixteen, the vendor shall continue to  receive  the  capital  award
after  April  first,  two  thousand  sixteen 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  sixteen shall be deposited into the state lottery
fund for education aid; and
  S 2. This act shall take effect immediately.