S T A T E O F N E W Y O R K
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2019-2020 Regular Sessions
I N A S S E M B L Y
February 26, 2019
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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 vendor fees for video
lottery gaming
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of
section 1612 of the tax law is amended by adding a new clause (F-1) to
read as follows:
(F-1) NOTWITHSTANDING CLAUSES (A), (B), (C), (D), (E) AND (F) OF THIS
SUBPARAGRAPH, WHEN THE VENDOR TRACK IS LOCATED WITHIN ONEIDA COUNTY, IS
WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND
MAINTAINS AT LEAST NINETY PERCENT OF FULL TIME EQUIVALENT EMPLOYEES AS
THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, AS DETERMINED BY THE
GAMING COMMISSION, AT A RATE OF FIFTY-FIVE PERCENT FOR THE FIRST THIRTY
MILLION DOLLARS ANNUALLY, AND FORTY-ONE PERCENT THEREAFTER OF THE TOTAL
REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO
THIS CHAPTER;
§ 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09967-01-9
A. 6000 2
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. 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 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 conven-
tion 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 Pennsylva-
nia 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 capital award that is not used during any one
year period may be carried over into subsequent years ending before
April first, two thousand nineteen. 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 vendor shall continue to receive the capital
award after April first, two thousand nineteen until such approved capi-
tal 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), (F-1) or (G) of this subparagraph be eligi-
ble 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 expenditure 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. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
of the tax law is amended by adding a new clause (K) to read as follows:
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(K) IN THE EVENT THAT THE OPERATOR OF A VENDOR TRACK WHO RECEIVES A
VENDOR FEE PURSUANT TO CLAUSE (F-1) OF THIS SUBPARAGRAPH HAS ANY REMAIN-
ING FUNDS IN THEIR VENDOR CAPITAL AWARD ACCOUNT, ANY CLAIM BY THE OPERA-
TOR OF THE VENDOR TRACK ON THESE FUNDS SHALL IMMEDIATELY BE FORFEITED,
AND THE FUNDS SHALL BE TRANSFERRED TO THE STATE LOTTERY FUND AS CREATED
BY SECTION NINETY-TWO-C OF THE STATE FINANCE LAW.
§ 4. This act shall take effect immediately.