S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5983
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 21, 2017
                                ___________
 
 Introduced  by M. of A. WOERNER -- 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]
 GAMING  COMMISSION,  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02966-02-7

 A. 5983                             2
 
 operator  shall be one percent of the total revenue wagered at the video
 lottery terminal facility after payout for prizes pursuant to this chap-
 ter 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
 nineteen  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] NINETEEN. Any amount  attributable
 to  a  capital  expenditure  approved prior to April first, two thousand
 [seventeen] NINETEEN and completed  before  April  first,  two  thousand
 [nineteen]  TWENTY-ONE;  or  approved prior to April first, two thousand
 [twenty-one] TWENTY-THREE and completed before April first, two thousand
 [twenty-three] TWENTY-FIVE 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]
 GAMING COMMISSION prior to April first, two thousand  [seventeen]  NINE-
 TEEN  and  completed prior to April first, two thousand [nineteen] TWEN-
 TY-ONE, exceed the vendor track's cumulative capital  award  during  the
 five  year period ending April first, two thousand [seventeen] NINETEEN,
 the vendor shall continue to  receive  the  capital  award  after  April
 first,  two  thousand  [seventeen]  NINETEEN 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]  NINETEEN shall be deposited into the
 state lottery fund for education aid; and
   § 2. This act shall take effect immediately.