S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4645
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 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 video  gaming  machines  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 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  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 capital award for
 the Aqueduct video lottery  terminal  facility  operator  shall  be  one
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02966-01-7

 A. 4645                             2
 
 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
 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] NINE 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-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 seventeen. Any amount attributable to a capi-
 tal 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 divi-
 sion 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  thou-
 sand  seventeen,  the vendor shall continue to receive the capital award
 after April first, two thousand seventeen until  such  approved  capital
 expenditures are paid to the vendor track subject to any required co-in-
 vestment.  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
   § 2. This act shall take effect immediately.