New York State Assembly

 
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A08517 Summary:

A08517 Actions:

A08517 Committee Votes:

Committee:WAYS AND MEANS   Chair:Farrell      
DATE:06/21/2017AYE/NAY:34/0  Action: Favorable refer to committee Rules        
Farrell
Aye
Oaks
Aye
Lentol
Aye
Crouch
Aye
Schimminger
Aye
Barclay
Aye
Gantt
Aye
Fitzpatrick
Aye
Weinstein
Aye
Hawley
Aye
Glick
Aye
Malliotakis
Aye
Nolan
Aye
Walter
Aye
Pretlow
Aye
Montesano
Aye
Perry
Aye
Curran
Aye
Colton
Aye
Ra
Aye
Cook
Aye
Cahill
Aye
Aubry
Aye
Hooper
Aye
Thiele
Aye
Cusick
Aye
Ortiz
Excused
Benedetto
Aye
Moya
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye

Committee:RULES   Chair:Heastie      
DATE:06/21/2017AYE/NAY:29/0  Action: Favorable         
Heastie
Excused
Kolb
Aye
Gottfried
Aye
Oaks
Aye
Lentol
Aye
Butler
Aye
Farrell
Aye
Crouch
Aye
Gantt
Aye
Finch
Aye
Nolan
Aye
Barclay
Aye
Weinstein
Aye
Raia
Aye
Hooper
Aye
Hawley
Aye
Ortiz
Excused
Pretlow
Aye
Cook
Aye
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Galef
Aye
Paulin
Aye
Titus
Aye
Peoples-Stokes
Aye

A08517 Floor Votes:

A08517 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A8517A
 
SPONSOR: Brindisi

 
TITLE OF BILL:
 
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 expira-
tion thereof
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
To provide additional revenues to Vernon Downs Casino & Hotel for oper-
ating purposes.
 
 
SUMMARY OF PROVISIONS:
 
This bill would allow a vendor track located within Oneida County and
within 15 miles of a Tribal casino to use up to 4% of the facility's net
win currently earmarked for capital awards, and up to 3% of the facili-
ty's net win currently retained by the New York State Gaming Commission
for administration, for operating purposes. The vendor track would be
required to enter into a written agreement with the Gaming Commission to
remain open for three years.
 
In addition, the vendor track would be required to annually submit a
report to Gaming Commission, the Governor, the Senate, and the Assembly
with detailed information regarding all of its revenues and expenses
from the preceding fiscal year.
 
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
 
N/A
 
 
JUSTIFICATION:
 
For several years, Vernon Downs has been faced with increased competi-
tion from nearby casinos operated by the Oneida Indian Nation, including
Yellow Brick Road Casino and Turning Stone Casino, and the Oneidas have
recently announced that they are building a third casino in Bridgeport.
Providing Vernon Downs with the flexibility to use additional gaming
revenues for operating purposes, under its existing tax rate, will not
only help preserve the amount of aid to education currently contributed
by the facility, but will also maintain over 300 jobs at the facility
and protect the harness racing and breeding industry in Central New York
for the next three years.
 
 
PRIOR LEGISLATIVE HISTORY:
 
New bill.
 
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
To be determined.
 
 
EFFECTIVE DATE:
This act would take effect immediately.

A08517 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8517--A
                                                                Cal. No. 607
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      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:
 
     1    Section 1. Subparagraph (i) of paragraph 1 of subdivision b of section
     2  1612 of the tax law, as amended by chapter 174 of the laws of  2013,  is
     3  amended to read as follows:
     4    (i)  less  ten  percent  of the total revenue wagered after payout for
     5  prizes to be retained by the division for operation, administration, and
     6  procurement purposes; provided, however, in the case of a  vendor  track
     7  located within Oneida county and within fifteen miles of a Native Ameri-
     8  can  class  III  gaming  facility,  seven  percent  of the total revenue
     9  wagered after payout for prizes shall be retained by  the  division  for
    10  operation,  administration,  and  procurement purposes and the remaining
    11  three percent of the total revenue wagered after payout for  prizes,  or
    12  any  portion  thereof,  may  be  used by such vendor track for operating
    13  purposes, pursuant to a written agreement  with  the  gaming  commission
    14  that  requires  such  vendor  track to remain open and operational for a
    15  period of three years from the enactment of the chapter of the  laws  of
    16  two thousand eighteen that amended this subparagraph;
    17    §  2.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
    18  of section 1612 of the tax law, as amended by section 1 of  part  TT  of
    19  chapter 59 of the laws of 2018, is amended to read as follows:
    20    (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
    21  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
 
     1  of  Aqueduct,  the  video  lottery  terminal facility operator, shall be
     2  eligible for a vendor's capital award of up to four percent of the total
     3  revenue wagered at the vendor track after payout for prizes pursuant  to
     4  this  chapter,  which  shall  be  used  exclusively  for capital project
     5  investments to improve the facilities of the vendor track which  promote
     6  or  encourage  increased attendance at the video lottery gaming facility
     7  including, but not limited to hotels, other lodging  facilities,  enter-
     8  tainment   facilities,  retail  facilities,  dining  facilities,  events
     9  arenas, parking garages and other  improvements  that  enhance  facility
    10  amenities;  provided  that such capital investments shall be approved by
    11  the division, in consultation with the gaming commission, and that  such
    12  vendor  track  demonstrates that such capital expenditures will increase
    13  patronage at such vendor track's facilities and increase the  amount  of
    14  revenue  generated to support state education programs; provided, howev-
    15  er, a vendor track located within Oneida county and within fifteen miles
    16  of a Native American class III gaming facility may use the total  amount
    17  of  vendor's capital awards that it shall be eligible to receive, or any
    18  portion thereof, for operating purposes, pursuant to a written agreement
    19  with the gaming commission that requires such  vendor  track  to  remain
    20  open  and  operational for a period of three years from the enactment of
    21  the chapter of the laws of  two  thousand  eighteen  that  amended  this
    22  clause.  The annual amount of such vendor's capital awards that a vendor
    23  track shall be eligible to receive shall be limited to two million  five
    24  hundred thousand dollars, except for Aqueduct racetrack, for which there
    25  shall be no annual limit, provided, however, that any such capital award
    26  for  the  Aqueduct video lottery terminal facility operator shall be one
    27  percent of the total revenue  wagered  at  the  video  lottery  terminal
    28  facility  after  payout  for  prizes  pursuant to this chapter until the
    29  earlier of the designation of one  thousand  video  lottery  devices  as
    30  hosted  pursuant  to  paragraph four of subdivision a of section sixteen
    31  hundred seventeen-a of this chapter or April first, two  thousand  nine-
    32  teen  and shall then be four percent of the total revenue wagered at the
    33  video lottery terminal facility after payout for prizes pursuant to this
    34  chapter, provided, further,  that  such  capital  award  shall  only  be
    35  provided  pursuant  to  an  agreement  with the operator to construct an
    36  expansion of the facility, hotel, and convention  and  exhibition  space
    37  requiring a minimum capital investment of three hundred million dollars.
    38  Except  for  tracks  having  less  than  one thousand nine hundred video
    39  gaming machines, and except for a vendor track  located  west  of  State
    40  Route  14  from  Sodus Point to the Pennsylvania border within New York,
    41  and except for Aqueduct racetrack each track operator shall be  required
    42  to  co-invest  an  amount of capital expenditure equal to its cumulative
    43  vendor's capital award. For all tracks the amount of any vendor's  capi-
    44  tal  award  that  is  not used during any one year period may be carried
    45  over into subsequent years ending before April first, two thousand nine-
    46  teen. Any amount attributable to a capital expenditure approved prior to
    47  April first, two thousand nineteen and completed before April first, two
    48  thousand twenty-one; or approved prior  to  April  first,  two  thousand
    49  twenty-three  and completed before April first, two thousand twenty-five
    50  for a vendor track located west of State Route 14 from  Sodus  Point  to
    51  the  Pennsylvania  border  within New York, shall be eligible to receive
    52  the vendor's capital award. In the event that a vendor  track's  capital
    53  expenditures,  approved  by  the gaming commission prior to April first,
    54  two thousand nineteen and completed prior to April first,  two  thousand
    55  twenty-one,  exceed  the  vendor track's cumulative capital award during
    56  the five year period ending April  first,  two  thousand  nineteen,  the
        A. 8517--A                          3
 
     1  vendor  shall  continue  to receive the capital award after April first,
     2  two thousand nineteen until such approved capital expenditures are  paid
     3  to  the  vendor track subject to any required co-investment. In no event
     4  shall any vendor track that receives a vendor fee pursuant to clause (F)
     5  or  (G)  of  this  subparagraph be eligible for a vendor's capital award
     6  under this section. Any operator of a vendor track which has received  a
     7  vendor's  capital  award,  choosing  to  divest  the capital improvement
     8  toward which the award was applied, prior to the  full  depreciation  of
     9  the capital improvement in accordance with generally accepted accounting
    10  principles,  shall  reimburse the state in amounts equal to the total of
    11  any such awards. Any capital award not approved for a  capital  expendi-
    12  ture  at  a  video  lottery gaming facility by April first, two thousand
    13  nineteen shall be deposited into the state lottery  fund  for  education
    14  aid; and
    15    § 3. Section 1617-a of the tax law is amended by adding a new subdivi-
    16  sion l to read as follows:
    17    l.  The  operator of a video lottery gaming facility located in Oneida
    18  county and located within fifteen miles of a Native American  class  III
    19  gaming  facility  shall  enter  into a written agreement with the gaming
    20  commission that requires such facility to remain  open  and  operational
    21  for  a  period  of  three years from the enactment of the chapter of the
    22  laws of two thousand eighteen that added this subdivision. Such operator
    23  shall annually report on all gross and net revenues  and  all  operating
    24  expenses  for  both  the  video  lottery  gaming facility and racetrack,
    25  including, but not limited to, a detailed summary and description of the
    26  revenues and expenses related  to  racing,  gaming,  food  and  beverage
    27  sales,  hotel sales, payroll, marketing, taxes, and all other direct and
    28  indirect costs and sales. Such report shall be submitted to  the  gaming
    29  commission, the governor, the temporary president of the senate, and the
    30  speaker  of  the  assembly  within  thirty days of the conclusion of the
    31  state fiscal year.
    32    § 4. This act shall take effect immediately and shall  expire  and  be
    33  deemed repealed June 30, 2021; provided, however, that the amendments to
    34  subparagraph  (i) of paragraph 1 of subdivision b of section 1612 of the
    35  tax law made by section one of this act shall take effect  on  the  same
    36  date  as the reversion of subparagraph (i) of paragraph 1 of subdivision
    37  b of section 1612 of the tax law as provided in section 3 of part  I  of
    38  chapter  61  of  the laws of 2017, as amended. Effective immediately the
    39  addition, amendment and/or repeal of any rule  or  regulation  necessary
    40  for  the implementation of this act on its effective date are authorized
    41  to be made on or before such date.