S T A T E   O F   N E W   Y O R K
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                                  8734

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 4, 2009
                               ___________

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

AN ACT to amend the tax law, in relation to eliminating  the  limitation
  on  the  amount of the capital award payable to a video lottery gaming
  vendor

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by chapter 140 of  the
laws of 2008, is amended to read as follows:
  (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph,  the  track  operator  of a vendor track 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,  entertainment  facili-
ties,  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  thou-
sand  dollars,  except for Aqueduct racetrack, for which] PROVIDED, THAT
there shall be no vendor's capital awards FOR  THE  AQUEDUCT  RACETRACK.
Except for tracks having less than one thousand one hundred video gaming
machines,  each  track operator shall be required to co-invest an amount

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10447-01-9
              

A. 8734                             2

of capital expenditure equal to its cumulative vendor's capital  awards.
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 thirteen. Any amount  attributable  to  a  capital  expenditure
approved  prior  to  April  first,  two  thousand 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  thou-
sand  thirteen and completed prior to April first, two thousand fifteen,
exceed the vendor track's cumulative capital 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 expenditures are paid to the vendor
track  subject  to  any  required  co-investment. In no event shall such
track facility located in Sullivan county and within  sixty  miles  from
any  gaming  facility  in  a contiguous state be eligible for a vendor's
capital award under this section, unless it shall have moved  from  such
location or the five year period commencing on April first, two thousand
eight has expired, whichever comes first. 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  reach-
ing  the  forty year straightline depreciation value of the improvement,
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 in the state lottery fund for education aid; and
  S  2.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 286 of the laws of
2008, 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]
PROVIDED, THAT there shall be no vendor's capital awards FOR  THE  AQUE-
DUCT  RACETRACK.  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 ending before
April first, two thousand thirteen. Any amount attributable to a capital

A. 8734                             3

expenditure approved prior to April first,  two  thousand  thirteen  and
completed  before April first, two thousand fifteen shall be eligible to
receive the vendor's capital award. In no event shall any  vendor  track
that  receives  a vendor fee pursuant to clause (F) or (G) of this para-
graph 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  reaching  the  forty year straightline depreciation
value of the improvement, shall reimburse the state in amounts equal  to
the total of any such awards; and
  S 3. This act shall take effect immediately.