Bill Text: NY A06000 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Relates to vendor fees for video lottery gaming for certain vendor tracks located within Oneida county, within fifteen miles of a Native American class III gaming facility.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A06000 Detail]

Download: New_York-2019-A06000-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          6000
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 26, 2019
                                       ___________
        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:
     1    Section 1. Subparagraph (ii)  of  paragraph  1  of  subdivision  b  of
     2  section  1612  of the tax law is amended by adding a new clause (F-1) to
     3  read as follows:
     4    (F-1) notwithstanding clauses (A), (B), (C), (D), (E) and (F) of  this
     5  subparagraph,  when the vendor track is located within Oneida county, is
     6  within fifteen miles of a Native American class III gaming facility, and
     7  maintains at least ninety percent of full time equivalent  employees  as
     8  they  employed  in  the  year two thousand sixteen, as determined by the
     9  gaming commission, at a rate of fifty-five percent for the first  thirty
    10  million  dollars annually, and forty-one percent thereafter of the total
    11  revenue wagered at the vendor track after payout for prizes pursuant  to
    12  this chapter;
    13    §  2.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
    14  of section 1612 of the tax law, as amended by section 1 of  part  TT  of
    15  chapter 59 of the laws of 2018, is amended to read as follows:
    16    (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
    17  this subparagraph, the track operator of a vendor track and in the  case
    18  of  Aqueduct,  the  video  lottery  terminal facility operator, shall be
    19  eligible for a vendor's capital award of up to four percent of the total
    20  revenue wagered at the vendor track after payout for prizes pursuant  to
    21  this  chapter,  which  shall  be  used  exclusively  for capital project
    22  investments to improve the facilities of the vendor track which  promote
    23  or  encourage  increased attendance at the video lottery gaming facility
    24  including, but not limited to hotels, other lodging  facilities,  enter-
    25  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
     1  arenas, parking garages and other  improvements  that  enhance  facility
     2  amenities;  provided  that such capital investments shall be approved by
     3  the division, in consultation with the gaming commission, and that  such
     4  vendor  track  demonstrates that such capital expenditures will increase
     5  patronage at such vendor track's facilities and increase the  amount  of
     6  revenue generated to support state education programs. The annual amount
     7  of such vendor's capital awards that a vendor track shall be eligible to
     8  receive  shall  be limited to two million five hundred thousand dollars,
     9  except for Aqueduct racetrack, for which there shall be no annual limit,
    10  provided, however, that any such capital award for  the  Aqueduct  video
    11  lottery  terminal  facility  operator  shall be one percent of the total
    12  revenue wagered at the video lottery terminal facility after payout  for
    13  prizes  pursuant to this chapter until the earlier of the designation of
    14  one thousand video lottery devices as hosted pursuant to paragraph  four
    15  of  subdivision a of section sixteen hundred seventeen-a of this chapter
    16  or April first, two thousand nineteen and shall then be four percent  of
    17  the  total  revenue wagered at the video lottery terminal facility after
    18  payout for prizes pursuant to this chapter, provided, further, that such
    19  capital award shall only be provided pursuant to an agreement  with  the
    20  operator  to  construct an expansion of the facility, hotel, and conven-
    21  tion and exhibition space requiring  a  minimum  capital  investment  of
    22  three  hundred  million  dollars. Except for tracks having less than one
    23  thousand nine hundred video gaming machines, and  except  for  a  vendor
    24  track  located west of State Route 14 from Sodus Point to the Pennsylva-
    25  nia border within New York, and except for Aqueduct racetrack each track
    26  operator shall be required to co-invest an amount of capital expenditure
    27  equal to its cumulative vendor's  capital  award.  For  all  tracks  the
    28  amount  of  any  vendor's  capital award that is not used during any one
    29  year period may be carried over  into  subsequent  years  ending  before
    30  April first, two thousand nineteen. Any amount attributable to a capital
    31  expenditure  approved  prior  to  April first, two thousand nineteen and
    32  completed before April first, two thousand twenty-one; or approved prior
    33  to April first, two thousand twenty-three  and  completed  before  April
    34  first, two thousand twenty-five for a vendor track located west of State
    35  Route  14  from  Sodus Point to the Pennsylvania border within New York,
    36  shall be eligible to receive the vendor's capital award.  In  the  event
    37  that  a  vendor  track's  capital  expenditures,  approved by the gaming
    38  commission prior to April first, two  thousand  nineteen  and  completed
    39  prior to April first, two thousand twenty-one, exceed the vendor track's
    40  cumulative capital award during the five year period ending April first,
    41  two  thousand nineteen, the vendor shall continue to receive the capital
    42  award after April first, two thousand nineteen until such approved capi-
    43  tal expenditures are paid to the vendor track subject  to  any  required
    44  co-investment. In no event shall any vendor track that receives a vendor
    45  fee  pursuant to clause (F), (F-1) or (G) of this subparagraph be eligi-
    46  ble for a vendor's capital award under this section. Any operator  of  a
    47  vendor  track  which  has received a vendor's capital award, choosing to
    48  divest the capital improvement toward which the award was applied, prior
    49  to the full depreciation of the capital improvement in  accordance  with
    50  generally  accepted  accounting principles, shall reimburse the state in
    51  amounts equal to the total of any such awards.  Any  capital  award  not
    52  approved for a capital expenditure at a video lottery gaming facility by
    53  April  first,  two  thousand  nineteen shall be deposited into the state
    54  lottery fund for education aid; and
    55    § 3. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
    56  of the tax law is amended by adding a new clause (K) to read as follows:
        A. 6000                             3
     1    (K) In the event that the operator of a vendor track  who  receives  a
     2  vendor fee pursuant to clause (F-1) of this subparagraph has any remain-
     3  ing funds in their vendor capital award account, any claim by the opera-
     4  tor  of  the vendor track on these funds shall immediately be forfeited,
     5  and  the funds shall be transferred to the state lottery fund as created
     6  by section ninety-two-c of the state finance law.
     7    § 4. This act shall take effect immediately.