S T A T E   O F   N E W   Y O R K
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                                  9003

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 18, 2009
                               ___________

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

AN ACT to amend the tax law, in relation to  capital  awards  to  vendor
  tracks

  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
O-1 of chapter 57 of the laws of 2009, 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 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 Aqueduct

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14441-01-9
              

A. 9003                             2

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  attribut-
able  to  a capital expenditure approved prior to April first, two thou-
sand 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.