S T A T E   O F   N E W   Y O R K
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                                  8517--A
                                                         Cal. No. 607
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 18, 2017
                                ___________
 
 Introduced  by  M.  of A. BRINDISI, PRETLOW, MAGEE, LUPARDO -- read once
   and referred to the Committee on Racing and Wagering -- ordered  to  a
   third  reading,  amended and ordered reprinted, retaining its place on
   the order of third reading

 AN ACT to amend the tax law, in relation to requiring a  written  agree-
   ment  for  flexibility  of  operating  funds for certain video lottery
   gaming facilities; and providing for the  repeal  of  such  provisions
   upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of paragraph 1 of subdivision b of section
 1612 of the tax law, as amended by chapter 174 of the laws of  2013,  is
 amended to read as follows:
   (i)  less  ten  percent  of the total revenue wagered after payout for
 prizes to be retained by the division for operation, administration, and
 procurement purposes; PROVIDED, HOWEVER, IN THE CASE OF A  VENDOR  TRACK
 LOCATED WITHIN ONEIDA COUNTY AND WITHIN FIFTEEN MILES OF A NATIVE AMERI-
 CAN  CLASS  III  GAMING  FACILITY,  SEVEN  PERCENT  OF THE TOTAL REVENUE
 WAGERED AFTER PAYOUT FOR PRIZES SHALL BE RETAINED BY  THE  DIVISION  FOR
 OPERATION,  ADMINISTRATION,  AND  PROCUREMENT PURPOSES AND THE REMAINING
 THREE PERCENT OF THE TOTAL REVENUE WAGERED AFTER PAYOUT FOR  PRIZES,  OR
 ANY  PORTION  THEREOF,  MAY  BE  USED BY SUCH VENDOR TRACK FOR OPERATING
 PURPOSES, PURSUANT TO A WRITTEN AGREEMENT  WITH  THE  GAMING  COMMISSION
 THAT  REQUIRES  SUCH  VENDOR  TRACK TO REMAIN OPEN AND OPERATIONAL FOR A
 PERIOD OF THREE YEARS FROM THE ENACTMENT OF THE CHAPTER OF THE  LAWS  OF
 TWO THOUSAND EIGHTEEN THAT AMENDED THIS SUBPARAGRAPH;
   §  2.  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  TT  of
 chapter 59 of the laws of 2018, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13258-02-8

 A. 8517--A                          2
 
 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 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; PROVIDED, HOWEV-
 ER, A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY AND WITHIN FIFTEEN MILES
 OF A NATIVE AMERICAN CLASS III GAMING FACILITY MAY USE THE TOTAL  AMOUNT
 OF  VENDOR'S CAPITAL AWARDS THAT IT SHALL BE ELIGIBLE TO RECEIVE, OR ANY
 PORTION THEREOF, FOR OPERATING PURPOSES, PURSUANT TO A WRITTEN AGREEMENT
 WITH THE GAMING COMMISSION THAT REQUIRES SUCH  VENDOR  TRACK  TO  REMAIN
 OPEN  AND  OPERATIONAL FOR A PERIOD OF THREE YEARS FROM THE ENACTMENT OF
 THE CHAPTER OF THE LAWS OF  TWO  THOUSAND  EIGHTEEN  THAT  AMENDED  THIS
 CLAUSE.  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
 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 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 the amount of any vendor's  capi-
 tal  award  that  is  not used during any one year period may be carried
 over into subsequent years ending before April first, two thousand nine-
 teen. Any amount attributable to a capital expenditure approved prior to
 April first, two thousand nineteen and completed before April first, two
 thousand twenty-one; or approved prior  to  April  first,  two  thousand
 twenty-three  and completed before April first, two thousand 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 gaming commission prior to April first,
 two thousand nineteen and completed prior to April first,  two  thousand
 twenty-one,  exceed  the  vendor track's cumulative capital award during
 the five year period ending April  first,  two  thousand  nineteen,  the

 A. 8517--A                          3
 
 vendor  shall  continue  to receive the capital award after April first,
 two thousand nineteen 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 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 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  expendi-
 ture  at  a  video  lottery gaming facility by April first, two thousand
 nineteen shall be deposited into the state lottery  fund  for  education
 aid; and
   § 3. Section 1617-a of the tax law is amended by adding a new subdivi-
 sion l to read as follows:
   L.  THE  OPERATOR OF A VIDEO LOTTERY GAMING FACILITY LOCATED IN ONEIDA
 COUNTY AND LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN  CLASS  III
 GAMING  FACILITY  SHALL  ENTER  INTO A WRITTEN AGREEMENT WITH THE GAMING
 COMMISSION THAT REQUIRES SUCH FACILITY TO REMAIN  OPEN  AND  OPERATIONAL
 FOR  A  PERIOD  OF  THREE YEARS FROM THE ENACTMENT OF THE CHAPTER OF THE
 LAWS OF TWO THOUSAND EIGHTEEN THAT ADDED THIS SUBDIVISION. SUCH OPERATOR
 SHALL ANNUALLY REPORT ON ALL GROSS AND NET REVENUES  AND  ALL  OPERATING
 EXPENSES  FOR  BOTH  THE  VIDEO  LOTTERY  GAMING FACILITY AND RACETRACK,
 INCLUDING, BUT NOT LIMITED TO, A DETAILED SUMMARY AND DESCRIPTION OF THE
 REVENUES AND EXPENSES RELATED  TO  RACING,  GAMING,  FOOD  AND  BEVERAGE
 SALES,  HOTEL SALES, PAYROLL, MARKETING, TAXES, AND ALL OTHER DIRECT AND
 INDIRECT COSTS AND SALES. SUCH REPORT SHALL BE SUBMITTED TO  THE  GAMING
 COMMISSION, THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE
 SPEAKER  OF  THE  ASSEMBLY  WITHIN  THIRTY DAYS OF THE CONCLUSION OF THE
 STATE FISCAL YEAR.
   § 4. This act shall take effect immediately and shall  expire  and  be
 deemed repealed June 30, 2021; provided, however, that the amendments to
 subparagraph  (i) of paragraph 1 of subdivision b of section 1612 of the
 tax law made by section one of this act shall take effect  on  the  same
 date  as the reversion of subparagraph (i) of paragraph 1 of subdivision
 b of section 1612 of the tax law as provided in section 3 of part  I  of
 chapter  61  of  the laws of 2017, as amended. Effective immediately the
 addition, amendment and/or repeal of any rule  or  regulation  necessary
 for  the implementation of this act on its effective date are authorized
 to be made on or before such date.