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

                                  10092

                          I N  A S S E M B L Y

                               May 3, 2012
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Ways and Means

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
ending before April first, two thousand [thirteen] FOURTEEN.  Any amount

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

                                                           LBD15440-01-2

A. 10092                            2

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.