S T A T E O F N E W Y O R K
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10441--A
I N A S S E M B L Y
May 27, 2016
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Racing and Wagering -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the operation of video
lottery terminals at Aqueduct racetrack
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 4 of subdivision a and subdivision c of section
1617-a of the tax law, paragraph 4 of subdivision a as added and subdi-
vision c as amended by section 1 of part SS of chapter 60 of the laws of
2016, are amended and a new subdivision d-1 is added to read as follows:
(4) Aqueduct racetrack, within the lottery terminal facility, pursuant
to an agreement between the corporation established pursuant to section
five hundred two of the racing, pari-mutuel wagering and breeding law in
the Nassau region and the operator of video lottery gaming at Aqueduct
racetrack, when such agreement is approved by the gaming commission and
as long as such agreement is in place, and when such agreement is accom-
panied by a detailed spending plan for the corporation established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law in the Nassau region, which includes a plan for the
timely payment of liabilities due to the franchised corporation AND THE
FAIR AND EQUITABLE DISTRIBUTION OF FUNDS BY THE CORPORATION ESTABLISHED
PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING
AND BREEDING LAW IN THE NASSAU REGION TO THE PARTICIPATING COUNTIES, and
when such video lottery devices are hosted by the operator of video
lottery gaming at Aqueduct racetrack on behalf of the corporation estab-
lished pursuant to section five hundred two of the racing, pari-mutuel
wagering and breeding law in the Nassau region in lieu of the develop-
ment of a facility in Nassau county as authorized by paragraph three of
THIS subdivision [a of this section]. Such agreement reached by the
parties shall identify the agency principally responsible for funding,
approving or undertaking any actions of such agreement. Provided, howev-
er, nothing in this paragraph shall infringe upon the rights of the
corporation established pursuant to section five hundred two of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15686-02-6
A. 10441--A 2
racing, pari-mutuel wagering and breeding law in the Nassau region to
develop a facility pursuant to paragraph three of this subdivision upon
the expiration, termination, or withdrawal of such agreement.
c. The terminals authorized pursuant to paragraph four of subdivision
a of this section shall:
(i) be deemed as operated by the corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and breed-
ing law in the Nassau region for the purposes of section sixteen hundred
twelve of this chapter and the distributions therefrom made as if the
video lottery devices were located in Nassau county;
(ii) consist exclusively of electronic table games, unless otherwise
approved by the gaming commission and the director of the division of
the budget; [and]
(iii) be individually designated as hosted[.]; AND
(IV) BE IN ADDITION TO THE NUMBER OF TERMINALS IN OPERATION AT THE
AQUEDUCT VIDEO LOTTERY TERMINAL FACILITY ON THE FIRST OF APRIL, TWO
THOUSAND SIXTEEN.
D-1. THE OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK SHALL
BE REQUIRED TO MAINTAIN AT MINIMUM, THE AMOUNTS FOR AID TO EDUCATION,
FROM VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK AT THE DOLLAR LEVEL
REALIZED IN TWO THOUSAND FIFTEEN, TO BE ADJUSTED BY THE CONSUMER PRICE
INDEX FOR ALL URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED
STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS.
S 2. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as separately amended by section 1 of
part GG and section 2 of part SS of chapter 60 of the laws of 2016, 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 and in the case
of Aqueduct, the video lottery terminal facility operator, 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, 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 AND IN
THE CASE OF AQUEDUCT, THE VIDEO LOTTERY TERMINAL FACILITY OPERATOR,
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 annual limit,] provided, however, that any such capi-
tal award for the Aqueduct video lottery terminal facility operator
shall be one percent of the total revenue wagered at the video lottery
terminal facility after payout for prizes pursuant to this chapter until
the earlier of the designation of one thousand video lottery devices as
hosted pursuant to paragraph four of subdivision a of section sixteen
hundred seventeen-a of this chapter or April first, two thousand nine-
teen and shall then be four percent of the total revenue wagered at the
video lottery terminal facility after payout for prizes pursuant to this
A. 10441--A 3
chapter, provided, further, that such capital award shall only be
provided pursuant to an agreement with the operator to construct an
expansion of the facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million dollars.
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 Pennsylvania border within New York, and except
for Aqueduct racetrack each track operator shall be required to co-in-
vest 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 peri-
od may be carried over into subsequent years ending before April first,
two thousand seventeen. Any amount attributable to a capital expenditure
approved prior to April first, two thousand seventeen and completed
before April first, two thousand nineteen; or approved prior to April
first, two thousand twenty-one and completed before April first, two
thousand twenty-three 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 seventeen and completed prior to April first,
two thousand nineteen, exceed the vendor track's cumulative capital
award during the five year period ending April first, two thousand
seventeen, the vendor shall continue to receive the capital award after
April first, two thousand seventeen 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
first, two thousand seventeen shall be deposited into the state lottery
fund for education aid; and
S 3. This act shall take effect immediately; provided, however that
section two of this act shall take effect on the same date and in the
same manner as section 2 of part SS of chapter 60 of the laws of 2016,
takes effect.