Bill Text: NY S06243 | 2017-2018 | General Assembly | Amended
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: Moderate Partisan Bill (Republican 4-1)
Status: (Engrossed - Dead) 2018-02-12 - RECOMMIT, ENACTING CLAUSE STRICKEN [S06243 Detail]
Download: New_York-2017-S06243-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6243--A Cal. No. 1511 2017-2018 Regular Sessions IN SENATE May 11, 2017 ___________ Introduced by Sens. BONACIC, GRIFFO, AKSHAR, FUNKE, VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wagering -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged and said bill committed to the Committee on Rules -- reported favorably from said committee, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote recon- sidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading 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 QQ of 15 chapter 59 of the laws of 2017, 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11459-02-7S. 6243--A 2 1 investments to improve the facilities of the vendor track which promote 2 or encourage increased attendance at the video lottery gaming facility 3 including, but not limited to hotels, other lodging facilities, enter- 4 tainment facilities, retail facilities, dining facilities, events 5 arenas, parking garages and other improvements that enhance facility 6 amenities; provided that such capital investments shall be approved by 7 the division, in consultation with the state racing and wagering board, 8 and that such vendor track demonstrates that such capital expenditures 9 will increase patronage at such vendor track's facilities and increase 10 the amount of revenue generated to support state education programs. The 11 annual amount of such vendor's capital awards that a vendor track shall 12 be eligible to receive shall be limited to two million five hundred 13 thousand dollars, except for Aqueduct racetrack, for which there shall 14 be no annual limit, provided, however, that any such capital award for 15 the Aqueduct video lottery terminal facility operator shall be one 16 percent of the total revenue wagered at the video lottery terminal 17 facility after payout for prizes pursuant to this chapter until the 18 earlier of the designation of one thousand video lottery devices as 19 hosted pursuant to paragraph four of subdivision a of section sixteen 20 hundred seventeen-a of this chapter or April first, two thousand nine- 21 teen and shall then be four percent of the total revenue wagered at the 22 video lottery terminal facility after payout for prizes pursuant to this 23 chapter, provided, further, that such capital award shall only be 24 provided pursuant to an agreement with the operator to construct an 25 expansion of the facility, hotel, and convention and exhibition space 26 requiring a minimum capital investment of three hundred million dollars. 27 Except for tracks having less than one thousand one hundred video gaming 28 machines, and except for a vendor track located west of State Route 14 29 from Sodus Point to the Pennsylvania border within New York, and except 30 for Aqueduct racetrack each track operator shall be required to co-in- 31 vest an amount of capital expenditure equal to its cumulative vendor's 32 capital award. For all tracks, except for Aqueduct racetrack, the amount 33 of any vendor's capital award that is not used during any one year peri- 34 od may be carried over into subsequent years ending before April first, 35 two thousand eighteen. Any amount attributable to a capital expenditure 36 approved prior to April first, two thousand eighteen and completed 37 before April first, two thousand twenty; or approved prior to April 38 first, two thousand twenty-two and completed before April first, two 39 thousand twenty-four for a vendor track located west of State Route 14 40 from Sodus Point to the Pennsylvania border within New York, shall be 41 eligible to receive the vendor's capital award. In the event that a 42 vendor track's capital expenditures, approved by the division prior to 43 April first, two thousand eighteen and completed prior to April first, 44 two thousand twenty, exceed the vendor track's cumulative capital award 45 during the five year period ending April first, two thousand eighteen, 46 the vendor shall continue to receive the capital award after April 47 first, two thousand eighteen until such approved capital expenditures 48 are paid to the vendor track subject to any required co-investment. In 49 no event shall any vendor track that receives a vendor fee pursuant to 50 clause (F), (F-1) or (G) of this subparagraph be eligible for a vendor's 51 capital award under this section. Any operator of a vendor track which 52 has received a vendor's capital award, choosing to divest the capital 53 improvement toward which the award was applied, prior to the full depre- 54 ciation of the capital improvement in accordance with generally accepted 55 accounting principles, shall reimburse the state in amounts equal to the 56 total of any such awards. Any capital award not approved for a capitalS. 6243--A 3 1 expenditure at a video lottery gaming facility by April first, two thou- 2 sand eighteen shall be deposited into the state lottery fund for educa- 3 tion aid; and 4 § 3. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 5 of the tax law, is amended by adding a new clause (J) to read as 6 follows: 7 (J) In the event that the operator of a vendor track who receives a 8 vendor fee pursuant to clause (F-1) of this subparagraph has any remain- 9 ing funds in their vendor capital award account, any claim by the opera- 10 tor of the vendor track on these funds shall immediately be forfeited, 11 and the funds shall be transferred to the state lottery fund as created 12 by section ninety-two-c of the state finance law. 13 § 4. Paragraph 2 of subdivision b of section 1612 of the tax law, as 14 amended by section 1 of part OO of chapter 59 of the laws of 2014, is 15 amended to read as follows: 16 2. As consideration for the operation of a video lottery gaming facil- 17 ity, the division, shall cause the investment in the racing industry of 18 a portion of the vendor fee received pursuant to paragraph one of this 19 subdivision in the manner set forth in this subdivision. With the 20 exception of Aqueduct racetrack or a facility in the county of Nassau or 21 Suffolk operated by a corporation established pursuant to section five 22 hundred two of the racing, pari-mutuel wagering and breeding law, each 23 such track shall dedicate a portion of its vendor fees, received pursu- 24 ant to clause (A), (B), (C), (D), (E), (F), (F-1), or (G) of subpara- 25 graph (ii) of paragraph one of this subdivision, for the purpose of 26 enhancing purses at such track, in an amount equal to eight and three- 27 quarters percent of the total revenue wagered at the vendor track after 28 pay out for prizes. One percent of the gross purse enhancement amount, 29 as required by this subdivision, shall be paid to the gaming commission 30 to be used exclusively to promote and ensure equine health and safety in 31 New York. Any portion of such funding to the gaming commission unused 32 during a fiscal year shall be returned to the video lottery gaming oper- 33 ators on a pro rata basis in accordance with the amounts originally 34 contributed by each operator and shall be used for the purpose of 35 enhancing purses at such track. One and one-half percent of the gross 36 purse enhancement amount at a thoroughbred track, as required by this 37 subdivision, shall be paid to an account established pursuant to section 38 two hundred twenty-one-a of the racing, pari-mutuel wagering and breed- 39 ing law to be used exclusively to provide health insurance for jockeys. 40 In addition, with the exception of Aqueduct racetrack or a facility in 41 the county of Nassau or Suffolk operated by a corporation established 42 pursuant to section five hundred two of the racing, pari-mutuel wagering 43 and breeding law, one and one-quarter percent of total revenue wagered 44 at the vendor track after pay out for prizes, received pursuant to 45 clause (A), (B), (C), (D), (E), (F), (F-1), or (G) of subparagraph (ii) 46 of paragraph one of this subdivision, shall be distributed to the appro- 47 priate breeding fund for the manner of racing conducted by such track. 48 Provided, further, that nothing in this paragraph shall prevent each 49 track from entering into an agreement, not to exceed five years, with 50 the organization authorized to represent its horsemen to increase or 51 decrease the portion of its vendor fee dedicated to enhancing purses at 52 such track during the years of participation by such track, or to race 53 fewer dates than required herein. 54 § 5. This act shall take effect immediately.
