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

                                  7049

                            I N  S E N A T E

                             April 25, 2012
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

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 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 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
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

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

                                                           LBD15440-01-2

S. 7049                             2

ending before April first, two thousand [thirteen] FOURTEEN.  Any amount
attributable to a capital expenditure approved prior to April first, two
thousand [thirteen] FOURTEEN and completed before April first, two thou-
sand [fifteen] SIXTEEN 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] FOURTEEN
and completed prior to April  first,  two  thousand  [fifteen]  SIXTEEN,
exceed  the vendor track's cumulative capital award during the five year
period ending April first, two thousand [thirteen] FOURTEEN, the  vendor
shall continue to receive the capital award after April first, two thou-
sand  [thirteen]  FOURTEEN  until such approved capital 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) or (G) of this subparagraph be eligible for a vendor's  capi-
tal  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 depre-
ciation 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 thou-
sand [thirteen] FOURTEEN shall be deposited into the state lottery  fund
for education aid; and
  S 2. This act shall take effect immediately.