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.