S T A T E O F N E W Y O R K
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5828--A
2009-2010 Regular Sessions
I N S E N A T E
June 8, 2009
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Introduced by Sens. BONACIC, KLEIN -- read twice and ordered printed,
and when printed to be committed to the Committee on Rules -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the tax law, in relation to a qualified capital invest-
ment at no more than one vendor track in Sullivan county
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Clause (G) 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:
(G) notwithstanding any other provisions of this section, when [a
relocated] NO MORE THAN ONE vendor track LOCATED IN THE TOWN OF THOMPSON
IN SULLIVAN COUNTY AT THE SITE OF THE FORMER CONCORD RESORT at which a
qualified capital investment has been made and no fewer than [two] ONE
thousand full-time, permanent employees have been newly hired, is
located in Sullivan county and is within sixty miles from any gaming
facility in a contiguous state, then for a period of forty years the
division shall pay into the state treasury, to the credit of the state
lottery fund created by section ninety-two-c of the state finance law
the greater of (i) twenty-five percent of total revenue after payout for
prizes for "video lottery games" or (ii) for the first eight years of
operation thirty-eight million dollars, and beginning in the ninth year
of operation such amount shall increase annually by the lesser of the
increase in the consumer price index or two percent plus the division
shall retain an amount equal to all actual expenses related to oper-
ations, administration and procurement of the video lottery terminal
operation at [the relocated] NO MORE THAN ONE vendor track LOCATED IN
THE TOWN OF THOMPSON IN SULLIVAN COUNTY AT THE SITE OF THE FORMER
CONCORD RESORT, provided, however, such amount retained by the division
shall not exceed seven percent of total revenue after payout of prizes.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14167-03-9
S. 5828--A 2
In addition, in the event the division makes a payment pursuant to
subclause (i) of this clause, the division shall pay to the credit of
the state lottery fund created by section ninety-two-c of the state
finance law 11.11 percent of the amount by which total revenue after
payout for prizes exceeds two hundred fifteen million dollars, but in no
event shall such payment exceed five million dollars.
The balance shall be paid as a vendor's fee to the track operator of
[the relocated] NO MORE THAN ONE vendor track LOCATED IN THE TOWN OF
THOMPSON IN SULLIVAN COUNTY AT THE SITE OF THE FORMER CONCORD RESORT for
serving as a lottery agent under this chapter.
Provided, however, that in the case of [a relocated] NO MORE THAN ONE
vendor track LOCATED IN THE TOWN OF THOMPSON IN SULLIVAN COUNTY AT THE
SITE OF THE FORMER CONCORD RESORT with a qualified capital investment,
AND ONE THOUSAND FULL-TIME, PERMANENT EMPLOYEES AS OF JULY FIRST, TWO
THOUSAND ELEVEN if at any time after [July first, two thousand ten]
THREE YEARS OF OPENING OPERATIONS OF THE LICENSED VIDEO GAMING FACILITY
OR LICENSED VENDOR TRACK, the vendor track experiences an employment
shortfall, then the recapture amount shall apply, for only such period
as the shortfall exists.
For the purposes of this section "qualified capital investment" shall
mean an investment of a minimum of [one billion] SIX HUNDRED MILLION
dollars as reflected by audited financial statements of which not less
than three hundred million dollars shall be comprised of equity and/or
mezzanine financing as an initial investment in a county where twelve
percent of the population is below the federal poverty level as measured
by the most recent Bureau of Census Statistics prior to the qualified
capital investment commencing that results in the construction, develop-
ment or improvement of at least one eighteen hole golf course, and the
construction and issuance of certificates of occupancy for hotels, lodg-
ing, [convention centers,] spas, dining, retail and entertainment
venues, parking garages and other capital improvements at or adjacent to
the licensed video gaming facility or licensed vendor track which
promote or encourage increased attendance at such facilities.
For the purposes of this section, "full-time, permanent employee"
shall mean an employee who has worked at the VIDEO GAMING FACILITY,
vendor track or related and adjacent facilities for a minimum of thir-
ty-five hours per week for not less than four consecutive weeks and who
is entitled to receive the usual and customary fringe benefits extended
to other employees with comparable rank and duties; or two part-time
employees who have worked at the VIDEO GAMING FACILITY, vendor track or
related and adjacent facilities for a combined minimum of thirty-five
hours per week for not less than four consecutive weeks and who are
entitled to receive the usual and customary fringe benefits extended to
other employees with comparable rank and duties.
For the purpose of this section "employment goal" shall mean [two] ONE
thousand FIVE HUNDRED full-time permanent employees AFTER THREE YEARS OF
OPENING OPERATIONS OF THE LICENSED VIDEO GAMING FACILITY OR LICENSED
VENDOR TRACK.
For the purpose of this section "employment shortfall" shall mean a
level of employment that falls below the employment goal, as certified
annually by vendor's certified accountants and the chairman of the
empire state development corporation.
For the purposes of this section "recapture amount" shall mean the
difference between the amount of the vendor's fee paid to a vendor track
with a qualified capital investment, and the vendor fee otherwise paya-
ble to a vendor track pursuant to clause (F) of this subparagraph, that
S. 5828--A 3
is reimbursable by the vendor track to the division for payment into the
state treasury, to the credit of the state lottery fund created by
section ninety-two-c of the state finance law, due to an employment
shortfall pursuant to the following schedule only for the period of the
employment shortfall:
(i) [sixty-six] ONE HUNDRED percent of the recapture amount if the
employment shortfall is greater than [fifty] SIXTY-SIX AND TWO-THIRDS
percent of the employment goal;
(ii) [sixty] SEVENTY-FIVE percent of the recapture amount if the
employment shortfall is greater than [forty] THIRTY-THREE AND ONE-THIRD
percent of the employment goal;
(iii) [forty-five] FORTY-NINE AND ONE-HALF percent of the recapture
amount if the employment shortfall is greater than thirty percent of the
employment goal;
(iv) [twenty] TWENTY-TWO percent of the recapture amount if the
employment shortfall is greater than twenty percent of the employment
goal;
(v) [ten] ELEVEN percent of the recapture amount if the employment
shortfall is greater than ten percent of the employment goal.
S 2. This act shall take effect immediately.
