senate Bill S7615A

2013-2014 Legislative Session

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities; repealer

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Sponsored By

Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 17, 2014 referred to racing and wagering
delivered to assembly
passed senate
ordered to third reading cal.1452
committee discharged and committed to rules
Jun 12, 2014 print number 7615a
amend and recommit to racing, gaming and wagering
May 16, 2014 referred to racing, gaming and wagering

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S7615 - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Rpld §1016 sub 1 ¶b sub¶ 5 cls (E) & (F), sub¶ 6 cls (F) & (G), amd §§1017 & 1012, RWB L; amd §§1612 & 1617-a, Tax L

S7615 - Bill Texts

view summary

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities.

view sponsor memo
BILL NUMBER:S7615

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to out-of-state or out-of-country races; to
amend the tax law, in relation to video lottery terminal flex hours
and increasing free play at video lottery facilities; and to repeal
certain provisions of the racing, pari-mutuel wagering and breeding
law relating thereto

PURPOSE:

To provide operational and financial relief to licensed New York State
Video Lottery Gaming Facilities and Regional Off Track Betting
Corporations. This bill will also increase aid to Education.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1016 of the racing, pari-mutuel
wagering and breeding law to eliminate dark day payments made from
regional off track betting corporations to licensed New York State
harness tracks.

Section 2 of the bill amends section 1017 of the racing, pari-mutuel
wagering and breeding law to eliminate maintenance of effort and hold
harmless payments made from regional off track betting corporations to
licensed New York State harness tracks.

Section 3 of the bill amends section 1012 of the racing, pari-mutuel
wagering and breeding law to make technical corrections pertaining to
regulation of multi jurisdictional account wagering providers.

Section 4 of the bill amends section 1612 of the tax law to provide a
video lottery gaming facility located in Sullivan County with a Vendor
Capital Award.

Section 5 of the bill amends section 1617-a of the tax law to provide
video lottery gaming facilities with more flexible hours of operation.

Section 6 of the bill amends section 1617-a of the tax law to increase
the annual value of free play allowance credits authorized for use by
a video lottery gaming facility from ten to fifteen percent of the
total amount wagered on video lottery games after payout of prizes.

Section 7 of the bill would provide an immediate effective date for
this legislation.

JUSTIFICATION:

Currently, New York State Video Lottery Gaming facilities are in
competition with gaming entities in other jurisdictions that have
unlimited free play and more flexible hours of operation. In addition,
regional off track betting corporations are experiencing financial
difficulty resulting from increased out of state competition and from
antiquated and obsolete regulatory payment requirements in statute.
This bill would authorize various forms of financial and operational
relief to ensure New York State Video Lottery Gaming facilities and
Regional Off Track Betting Corporations remain competitive with racing


and gaming entities in other jurisdictions. The relief provided will
also increase aid to education through the State Lottery Fund and help
County governments with increased revenues generated through the
Regional Off Track Betting Corporations.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This bill will generate an additional $110-$115 million in aid to
education.

LOCAL FISCAL IMPLICATIONS:

This bill will generate additional revenues for County governments
which have Regional Off Track Betting Corporations.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  7615

                            I N  S E N A T E

                              May 16, 2014
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
  relation to out-of-state or out-of-country races;  to  amend  the  tax
  law,  in  relation to video lottery terminal flex hours and increasing
  free  play  at  video  lottery  facilities;  and  to  repeal   certain
  provisions of the racing, pari-mutuel wagering and breeding law relat-
  ing thereto

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

  Section 1. Clauses (E) and (F) of subparagraph 5  of  paragraph  b  of
subdivision  1  of  section 1016 of the racing, pari-mutuel wagering and
breeding law are REPEALED.
  S 2. Section 1017 of the racing,  pari-mutuel  wagering  and  breeding
law,  as  amended  by  chapter  18 of the laws of 2008, subdivision 2 as
amended by chapter 174 of the laws  of  2013,  is  amended  to  read  as
follows:
  S  1017. Out-of-state or out-of-country races. [1.] Licensed simulcast
facilities may accept wagers and display the signal of  out-of-state  or
out-of-country  thoroughbred tracks after 7Labor P.M. in accordance with
the provisions of this section.  Such  simulcasting  may  include  mixed
meetings  if  such meetings are integral to such racing programs and all
such wagering on such races shall be construed to be thoroughbred races.
For  facilities  located  within  the  special  betting  district,  such
approval  shall  also be required from a thoroughbred racing corporation
during the period a racing program is being  conducted  at  such  track.
Such  approval shall not be required on any day such thoroughbred racing
corporation is also accepting an out-of-state or  out-of-country  signal
and  wager, as authorized by this section. The provisions of section one
thousand sixteen of this article shall be applicable to the  conduct  of
such  simulcasting and the provisions of clauses (A) and (B) of subpara-
graph four of paragraph b of subdivision one  of  section  one  thousand
sixteen  of  this  article  shall  apply to those facilities licensed in

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15207-02-4

S. 7615                             2

accordance with sections one thousand eight and  one  thousand  nine  of
this  article  and the provisions of clauses (A) and (B) of subparagraph
six of paragraph b of subdivision one of section one thousand sixteen of
this article shall apply to those facilities licensed in accordance with
section  one thousand seven of this article, when such provisions are in
full force and effect pursuant to such section. Provided,  however,  the
provisions  of  section  one  thousand fourteen of this article shall be
applicable to the conduct of such simulcasting, when such provisions are
in full force and effect pursuant to such section.
  [2. a. Maintenance of effort. Any off-track betting corporation  which
engages in accepting wagers on the simulcasts of thoroughbred races from
out-of-state  or  out-of-country  as  permitted under subdivision one of
this section shall submit to the commission, for its approval, a  sched-
ule  of  payments  to  be made in any year or portion thereof, that such
off-track corporation engages in nighttime thoroughbred simulcasting. In
order to be approved by the commission, the payment  schedule  shall  be
identical  to  the actual payments and distributions of such payments to
tracks and purses made by such off-track  corporation  pursuant  to  the
provisions  of  section  one thousand fifteen of this article during the
year two thousand  two,  as  derived  from  out-of-state  harness  races
displayed  after 6:00 P.M. If approved by the commission, such scheduled
payments shall be made  from  revenues  derived  from  any  simulcasting
conducted  pursuant  to this section and section one thousand fifteen of
this article.
  b. Additional payments. During each calendar year, to the extent,  and
at  such  time  in  the  event, that aggregate statewide wagering handle
after 7Labor P.M. on out-of-state and out-of-country thoroughbred  races
exceeds  one hundred million dollars, each off-track betting corporation
conducting such simulcasting shall pay to its regional harness track  or
tracks,  an  amount  equal  to two percent of its proportionate share of
such excess handle. In any region where there are two or  more  regional
harness  tracks,  such two percent shall be divided between or among the
tracks in a proportion equal to the proportion of handle on live harness
races conducted at such tracks during the preceding calendar year. Fifty
percent of the sum received by each track  pursuant  to  this  paragraph
shall  be  used  exclusively for increasing purses, stakes and prizes at
that regional harness track. For the purpose of determining whether such
aggregate statewide handle exceeds  one  hundred  million  dollars,  all
wagering on such thoroughbred races accepted by licensed multi-jurisdic-
tional  account  wagering providers from customers within New York state
shall be excluded.]
  S 3. Subdivision 1 of section 1012 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 174 of  the  laws  of  2013,  is
amended to read as follows:
  1.  Racing  associations  and  corporations,  franchised corporations,
off-track betting corporations and multi-jurisdictional account wagering
providers may form partnerships, joint ventures,  or  any  other  affil-
iations  or  contractual arrangement in order to further the purposes of
this section. Multi-jurisdictional account wagering  providers  involved
in  such joint affiliations or contractual arrangements shall follow the
same distributional policy  with  respect  to  retained  commissions  as
[their in-state affiliate or contractual partner] A MULTI-JURISDICTIONAL
ACCOUNT  WAGERING  PROVIDER  DEFINED IN THIS ARTICLE; PROVIDED, HOWEVER,
THAT SUCH JOINT AFFILIATION OR CONTRACTUAL ARRANGEMENT ENTERED  INTO  ON
OR  AFTER  THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
FOURTEEN THAT AMENDED THIS SUBDIVISION SHALL BE SUBJECT  TO  THE  REVIEW

S. 7615                             3

AND  APPROVAL  OF  THE  NEW YORK STATE GAMING COMMISSION TO DETERMINE IF
SUCH AFFILIATION OR CONTRACTUAL ARRANGEMENT IS IN THE BEST  INTEREST  OF
THE RACING INDUSTRY OF THIS STATE.
  S  4.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by section 1 of  part  BB  of
chapter 59 of the laws of 2014, 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 except for a vendor
track located west of State Route 14 from Sodus Point to the  Pennsylva-
nia  border  within  New  York, 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 fifteen. Any amount attributable to a capital
expenditure approved prior to April  first,  two  thousand  fifteen  and
completed  before April first, two thousand seventeen; or approved prior
to April first, two thousand nineteen and completed before April  first,
two  thousand  twenty-one for a vendor track located west of State Route
14 from Sodus Point to the Pennsylvania border within New York, 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 fifteen and completed prior  to  April  first,
two  thousand  seventeen,  exceed  the vendor track's cumulative capital
award during the five year  period  ending  April  first,  two  thousand
fifteen,  the  vendor  shall continue to receive the capital award after
April first, two thousand fifteen until such approved  capital  expendi-
tures  are  paid  to the vendor track subject to any required co-invest-
ment. 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 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 the
full depreciation of the capital improvement in accordance with general-
ly 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

S. 7615                             4

first,  two  thousand  fifteen shall be deposited into the state lottery
fund for education aid; and
  S  5.  Subdivision  b  of section 1617-a of the tax law, as amended by
section 5 of part K of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  b. Video lottery gaming shall only be permitted for no more than twen-
ty  consecutive  hours  per  day  and  on no day shall such operation be
conducted past [4:00] 6:00 a.m.
  S 6. 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] FIFTEEN percent of
the total amount wagered on video lottery games after payout of  prizes.
The  division shall establish procedures to assure that free play allow-
ance credits do not exceed such amount.
  S 7. This act shall take effect immediately.

S7615A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Rpld §1016 sub 1 ¶b sub¶ 5 cls (E) & (F), sub¶ 6 cls (F) & (G), amd §§1017 & 1012, RWB L; amd §§1612 & 1617-a, Tax L

S7615A (ACTIVE) - Bill Texts

view summary

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities.

view sponsor memo
BILL NUMBER:S7615A

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to out-of-state or out-of-country races; to
amend the tax law, in relation to video lottery terminal flex hours
and increasing free play at video lottery facilities; and to repeal
certain provisions of the racing, pari-mutuel wagering and breeding
law relating thereto

PURPOSE: To provide operational and financial relief to licensed New
York State Video Lottery Gaming Facilities and Regional Off Track
Betting Corporations. This bill will also increase aid to Education.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1016 of the racing, pari-mutuel
wagering and breeding law to eliminate dark day payments made from
regional off track betting corporations to licensed New York State
harness tracks.

Section 2 of the bill amends section 1017 of the racing, pari-mutuel
wagering and breeding law to eliminate maintenance of effort and hold
harmless payments made from regional off track betting corporations to
licensed New York State harness tracks.

Section 3 of the bill amends section 1012 of the racing, pari-mutuel
wagering and breeding law to make technical corrections pertaining to
regulation of multi jurisdictional account wagering providers.

Section 4 of the bill amends section 1612 of the tax law to provide a
video lottery gaming facility located in Sullivan County with a Vendor
Capital Award.

Section 5 of the bill amends section 1617-a of the tax law to provide
video lottery gaming facilities with more flexible hours of operation.

Section 6 of the bill amends section 1617-a of the tax law to increase
the annual value of free play allowance credits authorized for use by
a video lottery gaming facility from ten to fifteen percent of the
total amount wagered on video lottery games after payout of prizes.

Section 7 of the bill would provide an immediate effective date for
this legislation.

JUSTIFICATION: Currently, New York State Video Lottery Gaming
facilities are in competition with gaming entities in other
jurisdictions that have unlimited free play and more flexible hours of
operation. In addition, regional off track betting corporations are
experiencing financial difficulty resulting from increased out of
state competition and from antiquated and obsolete regulatory payment
requirements in statute. This bill would authorize various forms of
financial and operational relief to ensure New York State Video
Lottery Gaming facilities and Regional Off Track Betting Corporations
remain competitive with racing and gaming entities in other
jurisdictions. The relief provided will also increase aid to education
through the State Lottery Fund and help County governments with


increased revenues generated through the Regional Off Track Betting
Corporations.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: This bill will generate an additional $110-$115
million in aid to education.

LOCAL FISCAL IMPLICATIONS: This bill will generate additional
revenues for County governments which have Regional Off Track Betting
Corporations.

EFFECTIVE DATE: This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7615--A

                            I N  S E N A T E

                              May 16, 2014
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing  --  committee  discharged,  bill  amended,  ordered  reprinted as
  amended and recommitted to said committee

AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
  relation  to  out-of-state  or  out-of-country races; to amend the tax
  law, in relation to video lottery terminal flex hours  and  increasing
  free   play  at  video  lottery  facilities;  and  to  repeal  certain
  provisions of the racing, pari-mutuel wagering and breeding law relat-
  ing thereto

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

  Section  1.  Clauses  (E)  and (F) of subparagraph 5 of paragraph b of
subdivision 1 of section 1016 of the racing,  pari-mutuel  wagering  and
breeding law are REPEALED.
  S  2. Clauses (F) and (G) of subparagraph 6 of paragraph b of subdivi-
sion 1 of section 1016 of the racing, pari-mutuel wagering and  breeding
law are REPEALED.
  S  3.  Section  1017  of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws  of  2008,  subdivision  2  as
amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
follows:
  S 1017. Out-of-state or out-of-country races. [1.] Licensed  simulcast
facilities  may  accept wagers and display the signal of out-of-state or
out-of-country thoroughbred tracks after 7Labor P.M. in accordance  with
the  provisions  of  this  section.  Such simulcasting may include mixed
meetings if such meetings are integral to such racing programs  and  all
such wagering on such races shall be construed to be thoroughbred races.
For  facilities  located  within  the  special  betting  district,  such
approval shall also be required from a thoroughbred  racing  corporation
during  the  period  a  racing program is being conducted at such track.
Such approval shall not be required on any day such thoroughbred  racing
corporation  is  also accepting an out-of-state or out-of-country signal
and wager, as authorized by this section. The provisions of section  one

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15207-03-4

S. 7615--A                          2

thousand  sixteen  of this article shall be applicable to the conduct of
such simulcasting and the provisions of clauses (A) and (B) of  subpara-
graph  four  of  paragraph  b of subdivision one of section one thousand
sixteen  of  this  article  shall  apply to those facilities licensed in
accordance with sections one thousand eight and  one  thousand  nine  of
this  article  and the provisions of clauses (A) and (B) of subparagraph
six of paragraph b of subdivision one of section one thousand sixteen of
this article shall apply to those facilities licensed in accordance with
section one thousand seven of this article, when such provisions are  in
full  force  and effect pursuant to such section. Provided, however, the
provisions of section one thousand fourteen of  this  article  shall  be
applicable to the conduct of such simulcasting, when such provisions are
in full force and effect pursuant to such section.
  [2.  a. Maintenance of effort. Any off-track betting corporation which
engages in accepting wagers on the simulcasts of thoroughbred races from
out-of-state or out-of-country as permitted  under  subdivision  one  of
this  section shall submit to the commission, for its approval, a sched-
ule of payments to be made in any year or  portion  thereof,  that  such
off-track corporation engages in nighttime thoroughbred simulcasting. In
order  to  be  approved by the commission, the payment schedule shall be
identical to the actual payments and distributions of such  payments  to
tracks  and  purses  made  by such off-track corporation pursuant to the
provisions of section one thousand fifteen of this  article  during  the
year  two  thousand  two,  as  derived  from  out-of-state harness races
displayed after 6:00 P.M. If approved by the commission, such  scheduled
payments  shall  be  made  from  revenues  derived from any simulcasting
conducted pursuant to this section and section one thousand  fifteen  of
this article.
  b.  Additional payments. During each calendar year, to the extent, and
at such time in the event,  that  aggregate  statewide  wagering  handle
after  7Labor P.M. on out-of-state and out-of-country thoroughbred races
exceeds one hundred million dollars, each off-track betting  corporation
conducting  such simulcasting shall pay to its regional harness track or
tracks, an amount equal to two percent of  its  proportionate  share  of
such  excess  handle. In any region where there are two or more regional
harness tracks, such two percent shall be divided between or  among  the
tracks in a proportion equal to the proportion of handle on live harness
races conducted at such tracks during the preceding calendar year. Fifty
percent  of  the  sum  received by each track pursuant to this paragraph
shall be used exclusively for increasing purses, stakes  and  prizes  at
that regional harness track. For the purpose of determining whether such
aggregate  statewide  handle  exceeds  one  hundred million dollars, all
wagering on such thoroughbred races accepted by licensed multi-jurisdic-
tional account wagering providers from customers within New  York  state
shall be excluded.]
  S 4. Subdivision 1 of section 1012 of the racing, pari-mutuel wagering
and  breeding  law,  as  amended  by chapter 174 of the laws of 2013, is
amended to read as follows:
  1. Racing  associations  and  corporations,  franchised  corporations,
off-track betting corporations and multi-jurisdictional account wagering
providers  may  form  partnerships,  joint ventures, or any other affil-
iations or contractual arrangement in order to further the  purposes  of
this  section.  Multi-jurisdictional account wagering providers involved
in such joint affiliations or contractual arrangements shall follow  the
same  distributional  policy  with  respect  to  retained commissions as
[their in-state affiliate or contractual partner] A MULTI-JURISDICTIONAL

S. 7615--A                          3

ACCOUNT WAGERING PROVIDER DEFINED IN THIS  ARTICLE;  PROVIDED,  HOWEVER,
THAT  SUCH  JOINT AFFILIATION OR CONTRACTUAL ARRANGEMENT ENTERED INTO ON
OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF  TWO  THOUSAND
FOURTEEN  THAT  AMENDED  THIS SUBDIVISION SHALL BE SUBJECT TO THE REVIEW
AND APPROVAL OF THE NEW YORK STATE GAMING  COMMISSION  TO  DETERMINE  IF
SUCH  AFFILIATION  OR CONTRACTUAL ARRANGEMENT IS IN THE BEST INTEREST OF
THE RACING INDUSTRY OF THIS STATE.
  S 5. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivision  b
of  section  1612  of the tax law, as amended by section 1 of part BB of
chapter 59 of the laws of 2014, 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  except  for  a  vendor
track  located west of State Route 14 from Sodus Point to the Pennsylva-
nia border within New York, 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 fifteen. Any amount attributable to a  capital
expenditure  approved  prior  to  April  first, two thousand fifteen and
completed before April first, two thousand seventeen; or approved  prior
to  April first, two thousand nineteen and completed before April first,
two thousand twenty-one for a vendor track located west of  State  Route
14 from Sodus Point to the Pennsylvania border within New York, 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 fifteen and completed prior to April first,
two thousand seventeen, exceed the  vendor  track's  cumulative  capital
award  during  the  five  year  period  ending April first, two thousand
fifteen, the vendor shall continue to receive the  capital  award  after
April  first,  two thousand fifteen until such approved capital expendi-
tures are paid to the vendor track subject to  any  required  co-invest-
ment.  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  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 the
full depreciation of the capital improvement in accordance with general-

S. 7615--A                          4

ly  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  thousand  fifteen shall be deposited into the state lottery
fund for education aid; and
  S 6. Subdivision b of section 1617-a of the tax  law,  as  amended  by
section  5  of  part  K of chapter 57 of the laws of 2010, is amended to
read as follows:
  b. Video lottery gaming shall only be permitted for no more than twen-
ty consecutive hours per day and on  no  day  shall  such  operation  be
conducted past [4:00] 6:00 a.m.
  S 7. 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] FIFTEEN percent of
the  total amount wagered on video lottery games after payout of prizes.
The division shall establish procedures to assure that free play  allow-
ance credits do not exceed such amount.
  S 8. This act shall take effect immediately.

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