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

                                  8076

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 18, 2013
                               ___________

Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to capital  awards  to  certain
  vendor tracks 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 chapter 454 of the
laws of 2012, 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 AND TRACKS LOCATED IN ONTARIO
AND GENESEE COUNTIES, each track operator shall be required to co-invest
an amount of capital expenditure equal to its cumulative vendor's  capi-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11567-01-3
              

A. 8076                             2

tal  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  attributable  to a capital expenditure
approved prior to April  first,  two  thousand  fourteen  and  completed
before  April  first,  two thousand sixteen shall be eligible to receive
the vendor's capital  award;  AND  PROVIDED  FURTHER,  THAT  ANY  AMOUNT
ATTRIBUTABLE  TO  A  CAPITAL  EXPENDITURE AT A TRACK LOCATED IN ONTARIO,
GENESEE OR ERIE COUNTY APPROVED PRIOR TO APRIL FIRST, TWO THOUSAND EIGH-
TEEN AND COMPLETED BEFORE APRIL FIRST,  TWO  THOUSAND  TWENTY  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 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  thousand  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-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  fourteen shall be deposited into the state lottery fund for educa-
tion aid; and
  S 2.  Subparagraph (ii) of paragraph 1 of  subdivision  b  of  section
1612  of the tax law is amended by adding two new clauses (J) and (K) to
read as follows:
  (J) NOTWITHSTANDING CLAUSES (A), (B), (C), (D) AND (E) OF THIS SUBPAR-
AGRAPH, WHEN A VENDOR TRACK IS LOCATED WITHIN ONTARIO, GENESEE  OR  ERIE
COUNTIES,  AT  A RATE SEVEN AND ONE-HALF (7.5) PERCENTAGE POINTS GREATER
THAN THE PERCENTAGE OF THE TOTAL REVENUE WAGERED  AT  THE  VENDOR  TRACK
WHICH  WOULD  OTHERWISE BE APPLICABLE AND PAYABLE UNDER CLAUSE (A), (B),
(C), (D), OR (E) OF THIS SUBPARAGRAPH.
  (K) NOTWITHSTANDING CLAUSES (A), (B), (C), (D), (E) AND  (J)  OF  THIS
SUBPARAGRAPH,  WHEN  A VENDOR TRACK IS LOCATED WITHIN ONTARIO OR GENESEE
COUNTIES, EFFECTIVE ON THE DATE THAT A NATIVE AMERICAN CASINO  OPENS  TO
THE  GENERAL  PUBLIC  IN  ANY  OF  MONROE, ORLEANS, GENESEE, LIVINGSTON,
ONTARIO OR WAYNE COUNTIES, AT A RATE TEN PERCENTAGE POINTS GREATER  THAN
THE  PERCENTAGE  OF  THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK WHICH
WOULD OTHERWISE BE APPLICABLE AND PAYABLE UNDER CLAUSE  (A),  (B),  (C),
(D), OR (E) OF THIS SUBPARAGRAPH.
  S  3.  Subparagraph  (iii)  of paragraph 1 of subdivision 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:
  (iii)  less  an  additional  vendor's marketing allowance AT THE FIXED
RATE OF TEN PERCENT OF THE TOTAL REVENUE WAGERED AT A  VENDOR  TRACK  IN
ONTARIO,  GENESEE AND ERIE COUNTIES AFTER PAYOUT FOR PRIZES, AND FOR ALL
OTHER VENDOR TRACKS at a rate of ten percent for the first  one  hundred
million  dollars  annually  and  eight  percent  thereafter of the total
revenue wagered at the vendor track after payout for prizes to  be  used
by the vendor track for the marketing and promotion and associated costs

A. 8076                             3

of  its  video  lottery  gaming  operations and pari-mutuel horse racing
operations, as long as any such costs associated with pari-mutuel  horse
racing  operations simultaneously encourage increased attendance at such
vendor's  video lottery gaming facilities, consistent with the customary
manner of marketing comparable operations in the industry and subject to
the overall supervision of the division;  provided,  however,  that  the
additional  vendor's  marketing allowance shall not exceed eight percent
in any year for any operator of a racetrack located  in  the  county  of
Westchester or Queens; provided, however, a vendor track that receives a
vendor fee pursuant to clause (G) of subparagraph (ii) of this paragraph
shall not receive the additional vendor's marketing allowance. In estab-
lishing  the  vendor  fee, the division shall ensure the maximum lottery
support for education while also ensuring the  effective  implementation
of  section  sixteen  hundred  seventeen-a  of  this article through the
provision of reasonable reimbursements and compensation to vendor tracks
for participation in such program. Within twenty days after any award of
lottery prizes, the division shall pay into the state treasury,  to  the
credit  of  the  state  lottery fund, the balance of all moneys received
from the sale of all tickets for the lottery in which such  prizes  were
awarded  remaining  after  provision for the payment of prizes as herein
provided. Any revenues derived from the sale of advertising  on  lottery
tickets shall be deposited in the state lottery fund.
  S 4. Paragraph 3 of subdivision f of section 1617-a of the tax law, as
added  by  section  2  of  part  O of chapter 61 of the laws of 2011, is
amended to read as follows:
  (3) For each video lottery facility, the annual value of the free play
allowance credits authorized for use by the operator  pursuant  to  this
subdivision shall not exceed an amount equal to ten percent of the total
amount  wagered  on video lottery games after payout of prizes; PROVIDED
HOWEVER, THAT THE FREE PLAY ALLOWANCE CREDITS AUTHORIZED FOR USE  BY  AN
OPERATOR  IN  ONTARIO,  GENESEE  AND  ERIE  COUNTIES SHALL NOT EXCEED AN
AMOUNT EQUAL TO FIFTEEN PERCENT OF THE TOTAL  AMOUNT  WAGERED  ON  VIDEO
LOTTERY  GAMES AFTER THE PAYOUT OF PRIZES.  The division shall establish
procedures to assure that free play allowance credits do not exceed such
amount.
  S 5. The division of the lottery is authorized and directed  to  reim-
burse  to  any vendor track located within the geographic area set forth
in paragraph 12(a)(1) of the Nation-State  Gaming  Compact  between  the
Seneca  Nation  of  Indians and the State of New York executed on August
18, 2002, as  amended,  the  full  amount  of  all  documented  expenses
incurred  by  such vendor track in removing any use of the word "casino"
or "slot machine" from their signage, Internet websites, marketing piec-
es and other promotional material, and adopting new alternative business
trademarks, trade names and logos which do not  make  use  of  the  word
"casino" or "slot machine".
  S 6. This act shall take effect immediately.