S T A T E   O F   N E W   Y O R K
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                                   107

                      Second Extraordinary Session

                            I N  S E N A T E

                              June 24, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

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.
In addition, in the event the  division  makes  a  payment  pursuant  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12131-01-9
              

S. 107                              2

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
is reimbursable by the vendor track to the division for payment into the

S. 107                              3

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.