S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6000
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 26, 2019
                                ___________
 
 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  vendor  fees  for  video
   lottery gaming
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subparagraph (ii)  of  paragraph  1  of  subdivision  b  of
 section  1612  of the tax law is amended by adding a new clause (F-1) to
 read as follows:
   (F-1) NOTWITHSTANDING CLAUSES (A), (B), (C), (D), (E) AND (F) OF  THIS
 SUBPARAGRAPH,  WHEN THE VENDOR TRACK IS LOCATED WITHIN ONEIDA COUNTY, IS
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND
 MAINTAINS AT LEAST NINETY PERCENT OF FULL TIME EQUIVALENT  EMPLOYEES  AS
 THEY  EMPLOYED  IN  THE  YEAR TWO THOUSAND SIXTEEN, AS DETERMINED BY THE
 GAMING COMMISSION, AT A RATE OF FIFTY-FIVE PERCENT FOR THE FIRST  THIRTY
 MILLION  DOLLARS ANNUALLY, AND FORTY-ONE PERCENT THEREAFTER OF THE TOTAL
 REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT  TO
 THIS CHAPTER;
   §  2.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
 of section 1612 of the tax law, as amended by section 1 of  part  TT  of
 chapter 59 of the laws of 2018, 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 and in the  case
 of  Aqueduct,  the  video  lottery  terminal facility operator, shall be
 eligible 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09967-01-9

 A. 6000                             2
 
 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 gaming commission, 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 annual limit,
 provided, however, that any such capital award for  the  Aqueduct  video
 lottery  terminal  facility  operator  shall be one percent of the total
 revenue wagered at the video lottery terminal facility after payout  for
 prizes  pursuant to this chapter until the earlier of the designation of
 one thousand video lottery devices as hosted pursuant to paragraph  four
 of  subdivision a of section sixteen hundred seventeen-a of this chapter
 or April first, two thousand nineteen and shall then be four percent  of
 the  total  revenue wagered at the video lottery terminal facility after
 payout for prizes pursuant to this chapter, provided, further, that such
 capital award shall only be provided pursuant to an agreement  with  the
 operator  to  construct an expansion of the facility, hotel, and conven-
 tion and exhibition space requiring  a  minimum  capital  investment  of
 three  hundred  million  dollars. Except for tracks having less than one
 thousand nine hundred video gaming machines, and  except  for  a  vendor
 track  located west of State Route 14 from Sodus Point to the Pennsylva-
 nia border within New York, and except for Aqueduct racetrack 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  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 nineteen. Any amount attributable to a capital
 expenditure  approved  prior  to  April first, two thousand nineteen and
 completed before April first, two thousand twenty-one; or approved prior
 to April first, two thousand twenty-three  and  completed  before  April
 first, two thousand twenty-five 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 gaming
 commission prior to April first, two  thousand  nineteen  and  completed
 prior to April first, two thousand twenty-one, exceed the vendor track's
 cumulative capital award during the five year period ending April first,
 two  thousand nineteen, the vendor shall continue to receive the capital
 award after April first, two thousand nineteen until such approved capi-
 tal expenditures are paid to the vendor track subject  to  any  required
 co-investment. In no event shall any vendor track that receives a vendor
 fee  pursuant to clause (F), (F-1) or (G) of this subparagraph be eligi-
 ble 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
 generally  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  nineteen shall be deposited into the state
 lottery fund for education aid; and
   § 3. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of the tax law is amended by adding a new clause (K) to read as follows:

 A. 6000                             3
 
   (K) IN THE EVENT THAT THE OPERATOR OF A VENDOR TRACK  WHO  RECEIVES  A
 VENDOR FEE PURSUANT TO CLAUSE (F-1) OF THIS SUBPARAGRAPH HAS ANY REMAIN-
 ING FUNDS IN THEIR VENDOR CAPITAL AWARD ACCOUNT, ANY CLAIM BY THE OPERA-
 TOR  OF  THE VENDOR TRACK ON THESE FUNDS SHALL IMMEDIATELY BE FORFEITED,
 AND  THE FUNDS SHALL BE TRANSFERRED TO THE STATE LOTTERY FUND AS CREATED
 BY SECTION NINETY-TWO-C OF THE STATE FINANCE LAW.
   § 4. This act shall take effect immediately.