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
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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.