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A08101 Summary:

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A08101 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 5883                                                  A. 8101
 
                               2013-2014 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                      June 18, 2013
                                       ___________
 
        IN  SENATE -- Introduced by Sen. BONACIC -- (at request of the Governor)
          -- read twice and ordered printed, and when printed to be committed to
          the Committee on Rules
 
        IN ASSEMBLY -- Introduced by M. of A. PRETLOW, GUNTHER -- (at request of
          the Governor) -- read once and referred to the Committee on Racing and

          Wagering
 
        AN ACT to amend the racing, pari-mutuel wagering and breeding  law,  the
          penal law and the state finance law, in relation to commercial gaming;
          to  amend the executive law, the state finance law and the Indian law,
          in relation to authorizing the  settlement  of  disputes  between  the
          Oneida  Nation of New York, the state, Oneida county and Madison coun-
          ty; to amend the Indian law and the tax law, in relation to  identify-
          ing  nations  and  tribes;  to amend the tax law and the state finance
          law, in relation to video lottery gaming; to amend part HH of  chapter
          57 of the laws of 2013 relating to providing for the administration of
          certain  funds and accounts related to the 2013-14 budget, in relation
          to the commercial gaming revenue fund; to amend chapter 50 of the laws
          of 2013 enacting the state operations budget, in relation  to  commer-

          cial  gaming  revenues;  to amend the racing, pari-mutual wagering and
          breeding law, in relation to directing the state gaming commission  to
          annually  evaluate video lottery gaming; to amend the racing, pari-mu-
          tuel wagering and breeding law and the state finance law, in  relation
          to  account wagering on simulcast horse races; to repeal section 11 of
          the executive law relating to fuel and energy shortage state of  emer-
          gency; and to repeal clause (G) of subparagraph (ii) of paragraph 1 of
          subdivision b of section 1612 of the tax law relating to vendor's fees
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be cited  as  the  "upstate
     2  New York gaming economic development act of 2013."
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12052-02-3
        S. 5883                             2                            A. 8101
 
     1    §  2.  The racing, pari-mutuel wagering and breeding law is amended by
     2  adding a new article 13 to read as follows:
     3                                 ARTICLE 13
     4                          DESTINATION RESORT GAMING
     5  Title 1.  General provisions
     6        2.  Facility determination and licensing
     7        3.  Occupational licensing
     8        4.  Enterprise and vendor licensing and registration
     9        5.  Requirements for conduct and operation of gaming

    10        6.  Taxation and fees
    11        7.  Problem gambling
    12        8.  Miscellaneous provisions
    13        9.  Gaming inspector general
    14                                   TITLE 1
    15                             GENERAL PROVISIONS
    16  Section 1300. Legislative findings and purpose.
    17          1301. Definitions.
    18          1302. Auditing duties of the commission.
    19          1303. Equipment testing.
    20          1304. Commission reporting.
    21          1305. Supplemental power of the commission.
    22          1306. Powers of the board.
    23          1307. Required regulations.
    24          1308. Reports and recommendations.
    25          1309. Severability and preemption.

    26    §  1300.  Legislative  findings  and purpose.   The legislature hereby
    27  finds and declares that:
    28    1. New York state is already in the business  of  gambling  with  nine
    29  video  lottery  facilities,  five  tribal  class  III casinos, and three
    30  tribal class II facilities;
    31    2. New York state has more electronic gaming machines than  any  state
    32  in the Northeast or Mideast;
    33    3.  While gambling already exists throughout the state, the state does
    34  not fully capitalize on the economic development potential of  legalized
    35  gambling;
    36    4.  The  state  should  authorize  four  destination resort casinos in
    37  upstate New York;
    38    5. Four upstate casinos can boost economic development,  create  thou-

    39  sands of well-paying jobs and provide added revenue to the state;
    40    6.  The  upstate  tourism industry constitutes a critical component of
    41  our state's economic infrastructure and that four upstate  casinos  will
    42  attract  non-New  York  residents  and  bring  downstate  New Yorkers to
    43  upstate;
    44    7. The casino sites and the  licensed  owners  shall  be  selected  on
    45  merit;
    46    8.  Local  impact of the casino sites will be considered in the casino
    47  evaluation process;
    48    9. Tribes whose gaming compacts are in good standing  with  the  state
    49  will have their geographic exclusivity protected by this article;
    50    10.  Revenue  realized  from  casinos  shall  be  utilized to increase

    51  support for education beyond that of the state's education formulae  and
    52  to provide real property tax relief to localities;
    53    11.  Casinos  will be tightly and strictly regulated by the commission
    54  to guarantee public confidence and trust in the credibility and integri-
    55  ty of all casino gambling in the state and to  prevent  organized  crime
    56  from any involvement in the casino industry;
        S. 5883                             3                            A. 8101
 
     1    12.  The  need  for strict state controls extends to regulation of all
     2  persons, locations, practices and associations related to the  operation
     3  of  licensed  enterprises and all related service industries as provided
     4  in this article;

     5    13.  The  state and the casinos will develop programs and resources to
     6  combat compulsive and problem gambling;
     7    14. The state will ensure that  host  municipalities  of  casinos  are
     8  provided with funding to limit any potential adverse impacts of casinos;
     9    15. Political contributions from the casino industry will be minimized
    10  to reduce the potential of political corruption from casinos; and
    11    16. As thoroughly and pervasively regulated by the state, four upstate
    12  casinos will work to the betterment of all New York.
    13    §  1301.  Definitions.    As  used in this article the following terms
    14  shall, unless the context clearly requires otherwise, have the following
    15  meanings:

    16    1. "Affiliate". A person that directly or indirectly, through  one  or
    17  more  intermediaries,  controls  or is controlled by, or is under common
    18  control with, a specified person.
    19    2. "Applicant". Any person who on his or her own behalf or  on  behalf
    20  of  another  has applied for permission to engage in any act or activity
    21  which is regulated under the provisions of this article.
    22    3. "Application". A written request for permission to  engage  in  any
    23  act or activity which is regulated under the provisions of this article.
    24    4.  "Authorized  game".  Any  game  determined by the commission to be
    25  compatible with the public interest and to be suitable  for  casino  use
    26  after such appropriate test or experimental period as the commission may

    27  deem  appropriate.  An authorized game may include gaming tournaments in
    28  which players compete against one another in one or more  of  the  games
    29  authorized  herein  or  by  the  commission or in approved variations or
    30  composites thereof if the tournaments are authorized.
    31    5. "Board". The New York state gaming facility location  board  estab-
    32  lished  by the commission pursuant to section one hundred nine-a of this
    33  chapter.
    34    6. "Business". A corporation, sole proprietorship, partnership, limit-
    35  ed liability company or any other organization formed for the purpose of
    36  carrying on a commercial enterprise.
    37    7. "Casino". One or more locations or rooms in a gaming facility  that

    38  have  been  approved  by  the  commission  for  the conduct of gaming in
    39  accordance with the provisions of this article.
    40    8. "Casino key employee". Any natural  person  employed  by  a  gaming
    41  facility licensee, or holding or intermediary company of a gaming facil-
    42  ity licensee, and involved in the operation of a licensed gaming facili-
    43  ty  in  a supervisory capacity and empowered to make discretionary deci-
    44  sions which regulate gaming facility operations; or any  other  employee
    45  so designated by the commission for reasons consistent with the policies
    46  of this article.
    47    9.  "Casino  vendor enterprise". Any vendor offering goods or services
    48  which directly relate to  casino  or  gaming  activity,  or  any  vendor

    49  providing  to gaming facility licensees or applicants goods and services
    50  ancillary to gaming activity. Notwithstanding the foregoing, any form of
    51  enterprise engaged in the manufacture, sale,  distribution,  testing  or
    52  repair  of  slot  machines  within  the  state,  other than antique slot
    53  machines, shall  be  considered  a  casino  vendor  enterprise  for  the
    54  purposes  of  this  article  regardless  of  the  nature of its business
    55  relationship, if any, with gaming facility applicants and  licensees  in
    56  this state.
        S. 5883                             4                            A. 8101
 
     1    10.  "Close associate". A person who holds a relevant financial inter-

     2  est in, or is entitled to exercise power in, the business of  an  appli-
     3  cant  or  licensee  and, by virtue of that interest or power, is able to
     4  exercise a significant influence over the management or operation  of  a
     5  gaming facility or business licensed under this article.
     6    11. "Commission". The New York state gaming commission.
     7    12.  "Complimentary service or item". A service or item provided at no
     8  cost or at a reduced cost to a patron of a gaming facility.
     9    13. "Conservator". A person appointed by the commission to temporarily
    10  manage the operation of a gaming facility.
    11    14. "Credit card". A card, code or other device with  which  a  person
    12  may defer payment of debt, incur debt and defer its payment, or purchase

    13  property or services and defer payment therefor, but not a card, code or
    14  other  device  used to activate a preexisting agreement between a person
    15  and a financial institution to extend credit when the  person's  account
    16  at  the  financial  institution  is overdrawn or to maintain a specified
    17  minimum balance in the person's account at the financial institution.
    18    15. "Debt". Any legal liability, whether matured or unmatured,  liqui-
    19  dated  or  unliquidated,  absolute,  fixed or contingent, including debt
    20  convertible into an equity security which has not yet been so converted,
    21  and any other debt carrying any warrant or  right  to  subscribe  to  or
    22  purchase  an  equity  security  which  warrant or right has not yet been
    23  exercised.

    24    16. "Encumbrance". A mortgage, security interest, lien  or  charge  of
    25  any nature in or upon property.
    26    17. "Executive director". The executive director of the New York state
    27  gaming commission.
    28    18.  "Family".  Spouse,  domestic  partner,  partner in a civil union,
    29  parents, grandparents, children, grandchildren, siblings, uncles, aunts,
    30  nephews, nieces, fathers-in-law, mothers-in-law, daughters-in-law, sons-
    31  in-law, brothers-in-law and sisters-in-law, whether by the whole or half
    32  blood, by marriage, adoption or natural relationship.
    33    19. "Game". Any banking or percentage game located within  the  gaming
    34  facility  played  with  cards, dice, tiles, dominoes, or any electronic,

    35  electrical, or mechanical device or machine for money, property, or  any
    36  representative of value which has been approved by the commission.
    37    20.  "Gaming"  or  "gambling".  The  dealing,  operating, carrying on,
    38  conducting, maintaining or exposing for pay of any game.
    39    21. "Gaming device" or "gaming equipment". Any electronic, electrical,
    40  or mechanical contrivance or machine used in connection with  gaming  or
    41  any game.
    42    22.  "Gaming  employee". Any natural person, not otherwise included in
    43  the definition of casino key employee,  who  is  employed  by  a  gaming
    44  facility  licensee,  or  a  holding  or intermediary company of a gaming
    45  facility licensee, and is involved in the operation of a licensed gaming

    46  facility or performs services or  duties  in  a  gaming  facility  or  a
    47  restricted  casino  area;  or  any other natural person whose employment
    48  duties predominantly involve the  maintenance  or  operation  of  gaming
    49  activity  or  equipment  and  assets associated therewith or who, in the
    50  judgment of the commission, is  so  regularly  required  to  work  in  a
    51  restricted  casino area that registration as a gaming employee is appro-
    52  priate.
    53    23. "Gaming facility". The premises approved under  a  gaming  license
    54  which  includes  a gaming area and any other nongaming structure related
    55  to the gaming area and may include, but shall not be limited to, hotels,
    56  restaurants or other amenities.

        S. 5883                             5                            A. 8101
 
     1    24. "Gaming facility license". Any license  issued  pursuant  to  this
     2  article  which  authorizes the holder thereof to own or operate a gaming
     3  facility.
     4    25. "Gross gaming revenue". The total of all sums actually received by
     5  a  gaming facility licensee from gaming operations less the total of all
     6  sums paid out as winnings to patrons; provided, however, that the  total
     7  of  all  sums paid out as winnings to patrons shall not include the cash
     8  equivalent value of any merchandise or thing  of  value  included  in  a
     9  jackpot or payout; provided further, that the issuance to or wagering by
    10  patrons  of a gaming facility of any promotional gaming credit shall not

    11  be taxable for the purposes of determining gross revenue.
    12    26. "Holding company". A corporation, association, firm,  partnership,
    13  trust  or  other  form  of  business  organization, other than a natural
    14  person, which, directly or indirectly, owns, has the power or  right  to
    15  control,  or has the power to vote any significant part of the outstand-
    16  ing voting securities of a corporation or any  other  form  of  business
    17  organization  which  holds  or  applies  for a gaming license; provided,
    18  however, that a "holding company", in addition to any  other  reasonable
    19  use  of  the  term,  shall  indirectly have, hold or own any such power,
    20  right or security if it does so through an interest in a  subsidiary  or

    21  any  successive subsidiaries, notwithstanding how many such subsidiaries
    22  may intervene between the holding company and the gaming facility licen-
    23  see or applicant.
    24    27. "Host municipality". A city, town or village  in  which  a  gaming
    25  facility  is  located  or  in which an applicant has proposed locating a
    26  gaming facility.
    27    28. "Intermediary company". A corporation, association, firm, partner-
    28  ship, trust or other form of business organization, other than a natural
    29  person, which is a holding company with  respect  to  a  corporation  or
    30  other  form of business organization which holds or applies for a gaming
    31  license, and is a subsidiary with respect to a holding company.

    32    29. "Junket". An arrangement intended to induce a person to come to  a
    33  gaming  facility to gamble, where the person is selected or approved for
    34  participation on the basis of the person's ability to satisfy  a  finan-
    35  cial  qualification  obligation related to the person's ability or will-
    36  ingness to gamble or on any other basis related to the person's  propen-
    37  sity to gamble and pursuant to which and as consideration for which, any
    38  of  the cost of transportation, food, lodging, and entertainment for the
    39  person is directly or indirectly paid by a gaming facility  licensee  or
    40  an affiliate of the gaming facility licensee.
    41    30. "Junket enterprise". A person, other than a gaming facility licen-

    42  see or an applicant for a gaming facility license, who employs or other-
    43  wise  engages the services of a junket representative in connection with
    44  a junket to a licensed gaming facility, regardless  of  whether  or  not
    45  those activities occur within the state.
    46    31.  "Junket representative". A person who negotiates the terms of, or
    47  engages in the referral, procurement or selection  of  persons  who  may
    48  participate  in, a junket to a gaming facility, regardless of whether or
    49  not those activities occur within the state.
    50    32. "Operation certificate". A certificate issued  by  the  commission
    51  which  certifies  that  operation  of  a gaming facility conforms to the
    52  requirements of this article and applicable  regulations  and  that  its

    53  personnel  and  procedures  are sufficient and prepared to entertain the
    54  public.
        S. 5883                             6                            A. 8101
 
     1    33. "Person". Any corporation, association, operation, firm,  partner-
     2  ship,  trust or other form of business association, as well as a natural
     3  person.
     4    34.  "Registration".  Any  requirement other than one which requires a
     5  license as a prerequisite to conduct a particular business as  specified
     6  by this article.
     7    35.  "Registrant".  Any  person  who  is  registered  pursuant  to the
     8  provisions of this article.
     9    36. "Restricted casino areas". The  cashier's  cage,  the  soft  count

    10  room,  the  hard  count room, the slot cage booths and runway areas, the
    11  interior of table game pits, the surveillance room  and  catwalk  areas,
    12  the  slot machine repair room and any other area specifically designated
    13  by the commission as restricted in a licensee's operation certificate.
    14    37. "Qualification" or "qualified". The process of licensure set forth
    15  by the commission to determine that all persons who have a  professional
    16  interest  in  a  gaming  facility  license,  or casino vendor enterprise
    17  license, or the business of a gaming facility licensee or gaming vendor,
    18  meet the same standards of suitability to operate  or  conduct  business
    19  with a gaming facility.
    20    38.  "Slot machine". A mechanical, electrical or other device, contri-

    21  vance or machine which, upon insertion  of  a  coin,  token  or  similar
    22  object  therein,  or  upon  payment  of any consideration whatsoever, is
    23  available to play or operate, the play or operation of which, whether by
    24  reason of the skill of the operator or application  of  the  element  of
    25  chance,  or both, may deliver or entitle the individual playing or oper-
    26  ating the machine to receive cash, or tokens to be exchanged  for  cash,
    27  or  to  receive  merchandise  or  any  other thing of value, whether the
    28  payoff is made automatically from the machine or in  any  other  manner,
    29  except  that the cash equivalent value of any merchandise or other thing
    30  of value shall not be included in determining the payout percentage of a
    31  slot machine.

    32    39. "Sports wagering". The activity authorized by section one thousand
    33  three hundred sixty-seven of this article, provided that there has  been
    34  a  change  in  federal law authorizing such activity or upon ruling of a
    35  court of competent jurisdiction that such activity is lawful.
    36    40. "Subsidiary". A corporation, a significant part of whose outstand-
    37  ing equity securities are owned, subject to a power or right of control,
    38  or held with power to vote, by a  holding  company  or  an  intermediary
    39  company,  or a significant interest in a firm, association, partnership,
    40  trust or other form of  business  organization,  other  than  a  natural
    41  person,  which is owned, subject to a power or right of control, or held

    42  with power to vote, by a holding company or an intermediary company.
    43    41. "Table game". A game, other than a slot machine, which is  author-
    44  ized by the commission to be played in a gaming facility.
    45    42. "Transfer". The sale or other method, either directly or indirect-
    46  ly,  of disposing of or parting with property or an interest therein, or
    47  the possession thereof, or of fixing a lien upon  property  or  upon  an
    48  interest  therein,  absolutely or conditionally, voluntarily or involun-
    49  tarily, by or without  judicial  proceedings,  as  a  conveyance,  sale,
    50  payment,  pledge,  mortgage, lien, encumbrance, gift, security or other-
    51  wise; provided, however, that the retention of a  security  interest  in

    52  property  delivered to a corporation shall be deemed a transfer suffered
    53  by such corporation.
    54    § 1302. Auditing duties of the commission. The commission shall  audit
    55  as often as the commission determines necessary, but not less than annu-
    56  ally,  the  accounts,  programs, activities, and functions of all gaming
        S. 5883                             7                            A. 8101
 
     1  facility licensees, including the audit of  payments  made  pursuant  to
     2  section  one  thousand  three  hundred  fifty-one  of this chapter.   To
     3  conduct the audit, authorized officers and employees of  the  commission
     4  shall  have  access to such accounts at reasonable times and the commis-

     5  sion may require the production of books, documents, vouchers and  other
     6  records relating to any matter within the scope of the audit. All audits
     7  shall be conducted in accordance with generally accepted auditing stand-
     8  ards  established by the American Institute of Certified Public Account-
     9  ants. In any audit report of the accounts, funds,  programs,  activities
    10  and  functions  of  a  gaming facility licensee issued by the commission
    11  containing adverse or critical audit results, the commission may require
    12  a response, in writing, to the audit  results.  The  response  shall  be
    13  forwarded  to  the commission within fifteen days of notification by the
    14  commission.
    15    § 1303. Equipment testing. Unless the commission otherwise  determines

    16  it  to  be  in  the  best  interests  of the state, the commission shall
    17  utilize the services of an independent testing laboratory that has  been
    18  qualified  and  approved  by  the commission pursuant to this article to
    19  perform the testing of slot machines and other gaming equipment and  may
    20  also utilize applicable data from the independent testing laboratory, or
    21  from a governmental agency of a state other than New York, authorized to
    22  regulate slot machines and other gaming equipment.
    23    §  1304.  Commission reporting. The commission shall report monthly to
    24  the governor, the senate and the assembly, the senate finance  committee
    25  and  the assembly ways and means committee, and the chairs of the senate

    26  racing, gaming and wagering committee and the assembly racing and wager-
    27  ing committee on economic development and emerging technologies  on  the
    28  total  gaming  revenues,  prize disbursements and other expenses for the
    29  preceding month and shall make an annual report to the  same  recipients
    30  which  shall  include  a full and complete statement of gaming revenues,
    31  prize disbursements and other expenses, including  such  recommendations
    32  as the commission considers necessary or advisable. The commission shall
    33  also  report  immediately  to  the  aforementioned  on  any matter which
    34  requires immediate changes in the laws in order  to  prevent  abuses  or
    35  evasions  of  the  laws,  rules  or  regulations related to gaming or to

    36  rectify undesirable conditions in connection with the administration  or
    37  operation of gaming in the state.
    38    §  1305.  Supplemental  power of the commission.  The commission shall
    39  have all powers necessary or convenient to carry out and effectuate  its
    40  purposes including, but not limited to, the power to:
    41    1.  execute  all instruments necessary or convenient for accomplishing
    42  the purposes of this article;
    43    2. enter into agreements or other transactions with a person,  includ-
    44  ing,  but  not limited to, a public entity or other governmental instru-
    45  mentality or authority in connection with its powers  and  duties  under
    46  this article;
    47    3.  require an applicant for a position which requires a license under

    48  this article to apply for such license and  approve  or  disapprove  any
    49  such application or other transactions, events and processes as provided
    50  in this article;
    51    4.  require a person who has a business association of any kind with a
    52  gaming licensee or applicant to be qualified for  licensure  under  this
    53  article;
    54    5.  determine  a  suitable  debt-to-equity  ratio for applicants for a
    55  gaming license;
        S. 5883                             8                            A. 8101
 
     1    6. deny an  application  or  limit,  condition,  restrict,  revoke  or
     2  suspend  a license, registration, finding of suitability or approval, or
     3  fine a person licensed, registered, found suitable or approved  for  any

     4  cause that the commission deems reasonable;
     5    7. monitor the conduct of licensees and other persons having a materi-
     6  al  involvement, directly or indirectly, with a licensee for the purpose
     7  of ensuring that licenses are not issued to or held by and that there is
     8  no direct or indirect  material  involvement  with  a  licensee,  by  an
     9  unqualified  or  unsuitable  person  or by a person whose operations are
    10  conducted in an unsuitable manner or in unsuitable or prohibited  places
    11  as provided in this article;
    12    8.  gather  facts and information applicable to the commission's obli-
    13  gation to issue, suspend or revoke licenses, work permits  or  registra-
    14  tions for:

    15    (a)  a  violation  of  this  article  or any regulation adopted by the
    16  commission;
    17    (b) willfully violating an order  of  the  commission  directed  to  a
    18  licensee;
    19    (c) the conviction of certain criminal offenses; or
    20    (d)  the  violation of any other offense which would disqualify such a
    21  licensee from holding a license, work permit or registration;
    22    9. conduct investigations into the  qualifications  of  any  regulated
    23  entity and all applicants for licensure;
    24    10. request and receive from the division of criminal justice services
    25  and the federal bureau of investigation, criminal history information as
    26  defined  in  paragraph  (c)  of subdivision one of section eight hundred

    27  forty-five-b of the executive law for the purpose of  evaluating  appli-
    28  cants  for  employment by any regulated entity, and evaluating licensees
    29  and applicants for licensure under this article;
    30    11. be present, through its agents, at all times, in a gaming facility
    31  for the purposes of:
    32    (a) certifying revenue;
    33    (b) receiving complaints from the public relating to  the  conduct  of
    34  gaming and wagering operations;
    35    (c)  examining  records  of revenues and procedures and inspecting and
    36  auditing all books, documents and records of licensees;
    37    (d) conducting periodic reviews of operations and facilities  for  the
    38  purpose of regulations adopted hereunder; and

    39    (e) exercising its oversight responsibilities with respect to gaming;
    40    12.  inspect and have access to all equipment and supplies in a gaming
    41  facility or on premises where gaming equipment is manufactured, sold  or
    42  distributed;
    43    13.  seize  and  remove  from  the  premises  of a gaming licensee and
    44  impound any equipment, supplies, documents and records for  the  purpose
    45  of examination and inspection;
    46    14.  demand  access  to  and inspect, examine, photocopy and audit all
    47  papers, books and records of any  affiliate  of  a  gaming  licensee  or
    48  gaming vendor whom the commission suspects is involved in the financing,
    49  operation  or  management  of  the  gaming  licensee  or  gaming vendor;

    50  provided, however, that the inspection,  examination,  photocopying  and
    51  audit may take place on the affiliate's premises or elsewhere as practi-
    52  cable and in the presence of the affiliate or its agent;
    53    15.  require  that  the books and financial or other records or state-
    54  ments of a gaming licensee or gaming vendor be kept in a manner that the
    55  commission considers proper;
        S. 5883                             9                            A. 8101
 
     1    16. levy and collect assessments, fees, fines and interest and  impose
     2  penalties  and  sanctions  as  authorized by law for a violation of this
     3  article or any regulations promulgated by the commission;
     4    17. collect taxes, fees and interest under this article;

     5    18. restrict, suspend or revoke licenses issued under this article;
     6    19.  refer  cases for criminal prosecution to the appropriate federal,
     7  state or local authorities;
     8    20. adopt, amend or repeal regulations for the implementation,  admin-
     9  istration and enforcement of this article; and
    10    21.  determine  a  suitable duration for each license, registration or
    11  finding of suitability or approval.
    12    § 1306. Powers of the board. The New York state resort gaming facility
    13  location board shall select, following a competitive process and subject
    14  to the restrictions of this article, no more than four entities to apply
    15  to the commission  for  gaming  facility  licenses.  In  exercising  its

    16  authority,  the  board  shall have all powers necessary or convenient to
    17  fully carry out and effectuate its purposes including, but  not  limited
    18  to, the following powers.  The board shall:
    19    1.  issue  a  request  for  applications  for zone two gaming facility
    20  licenses pursuant to section one thousand three hundred twelve  of  this
    21  article;
    22    2.  assist  the  commission in prescribing the form of the application
    23  for zone two  gaming  facility  licenses  including  information  to  be
    24  furnished by an applicant concerning an applicant's antecedents, habits,
    25  character,  associates,  criminal record, business activities and finan-
    26  cial affairs, past or present pursuant to  section  one  thousand  three

    27  hundred thirteen of this article;
    28    3. develop criteria, in addition to those outlined in this article, to
    29  assess  which  applications  provide  the  highest and best value to the
    30  state, the zone and the region in which  a  gaming  facility  is  to  be
    31  located;
    32    4. determine a gaming facility license fee to be paid by an applicant;
    33    5.  determine, from time to time, whether tribal-state gaming compacts
    34  are in or remain in good standing for the purposes of determining wheth-
    35  er  a  gaming facility may be located in areas designated by subdivision
    36  two of section one thousand three hundred eleven of this article;
    37    6. determine, with the assistance of the commission, the  sources  and

    38  total  amount  of  an  applicant's  proposed  capitalization to develop,
    39  construct, maintain and operate a proposed gaming facility license under
    40  this article;
    41    7. have the authority to conduct investigative hearings concerning the
    42  conduct of gaming and gaming operations in accordance  with  any  proce-
    43  dures  set  forth  in this article and any applicable implementing regu-
    44  lations;
    45    8. issue detailed findings of facts and conclusions demonstrating  the
    46  reasons  supporting  its  decisions  to select applicants for commission
    47  licensure;
    48    9. report annually to the governor, the speaker of  the  assembly  and
    49  the temporary president of the senate, its proceedings for the preceding

    50  calendar  year  and any suggestions and recommendations as it shall deem
    51  desirable;
    52    10. promulgate any rules and regulations that it  deems  necessary  to
    53  carry out its responsibilities;
    54    11.  have  the  power  to  administer oaths and examine witnesses; and
    55  request and receive criminal history information as defined in paragraph
    56  (c) of subdivision one of section  eight  hundred  forty-five-b  of  the
        S. 5883                            10                            A. 8101
 
     1  executive  law of the division of criminal justice services, pursuant to
     2  subdivision eight-a of section eight hundred thirty-seven of the  execu-
     3  tive law, in connection with executing the responsibilities of the board

     4  relating  to licensing including fingerprinting, criminal history infor-
     5  mation and background investigations, of entities applying for a  gaming
     6  facility  license. At the request of the board, the division of criminal
     7  justice services  shall  submit  a  fingerprint  card,  along  with  the
     8  subject's processing fee, to the federal bureau of investigation for the
     9  purpose  of  conducting a criminal history search and returning a report
    10  thereon. The board shall also be entitled to request and receive, pursu-
    11  ant to a written memorandum of understanding filed with  the  department
    12  of state, any information in the possession of the state attorney gener-
    13  al  relating  to  the investigation of organized crime, gaming offenses,

    14  other revenue crimes or tax  evasion.  Provided  however,  the  attorney
    15  general may withhold any information that (a) would identify a confiden-
    16  tial  source or disclose confidential information relating to a criminal
    17  investigation, (b) would interfere with law  enforcement  investigations
    18  or judicial proceedings, (c) reveal criminal investigative techniques or
    19  procedures, that, if disclosed, could endanger the life or safety of any
    20  person,  or  (d) constitutes records received from other state, local or
    21  federal agencies that the attorney general is prohibited by  law,  regu-
    22  lation or agreement from disclosing.
    23    § 1307. Required regulations.  1. The commission is authorized:

    24    (a)  to  adopt,  amend or repeal such regulations, consistent with the
    25  policy and objectives of this article, as amended and  supplemented,  as
    26  it may deem necessary to protect the public interest in carrying out the
    27  provisions of this article; and
    28    (b) to adopt, amend or repeal such regulations as may be necessary for
    29  the conduct of hearings before the commission and for the matters within
    30  all  other responsibilities and duties of the commission imposed by this
    31  article.
    32    2. The commission shall, without  limitation,  include  the  following
    33  specific provisions in its regulations in accordance with the provisions
    34  of this article:
    35    (a)  prescribing the methods and forms of application and registration

    36  which any applicant or registrant shall follow and complete;
    37    (b) prescribing the methods,  procedures  and  form  for  delivery  of
    38  information  concerning  any person's family, habits, character, associ-
    39  ates, criminal record, business activities and financial affairs;
    40    (c) prescribing such procedures for the fingerprinting  of  an  appli-
    41  cant,  employee of a licensee, or registrant, and methods of identifica-
    42  tion which may be  necessary  to  accomplish  effective  enforcement  of
    43  restrictions  on  access to the casino and other restricted casino areas
    44  of the gaming facility;
    45    (d) prescribing the method of notice to an  applicant,  registrant  or
    46  licensee  concerning  the release of any information or data provided to

    47  the commission by such applicant, registrant or licensee;
    48    (e) prescribing the manner and procedure of all hearings conducted  by
    49  the commission or any presiding officer;
    50    (f)  prescribing  the  manner  and method of collection of payments of
    51  taxes, fees, interest and penalties;
    52    (g) defining and limiting the areas of operation, the rules of author-
    53  ized games, odds, and devices permitted, and the method of operation  of
    54  such games and devices;
    55    (h) regulating the practice and procedures for negotiable transactions
    56  involving  patrons,  including  limitations  on  the  circumstances  and
        S. 5883                            11                            A. 8101
 

     1  amounts of such transactions, and the establishment of forms and  proce-
     2  dures  for  negotiable instrument transactions, redemptions, and consol-
     3  idations;
     4    (i)  prescribing  grounds and procedures for the revocation or suspen-
     5  sion of operating certificates, licenses and registrations;
     6    (j) governing the manufacture,  distribution,  sale,  deployment,  and
     7  servicing of gaming devices and equipment;
     8    (k)  prescribing for gaming operations the procedures, forms and meth-
     9  ods of management controls, including employee and supervisory tables of
    10  organization and responsibility, and minimum security  and  surveillance
    11  standards, including security personnel structure, alarm and other elec-

    12  trical  or visual security measures; provided, however, that the commis-
    13  sion shall grant an applicant broad discretion concerning the  organiza-
    14  tion  and  responsibilities of management personnel who are not directly
    15  involved in the supervision of gaming operations;
    16    (l) prescribing the qualifications of, and the conditions pursuant  to
    17  which, engineers, accountants, and others shall be permitted to practice
    18  before  the commission or to submit materials on behalf of any applicant
    19  or licensee;
    20    (m) prescribing minimum  procedures  for  the  exercise  of  effective
    21  control  over  the  internal  fiscal  affairs  of  a licensee, including
    22  provisions for the safeguarding of assets and revenues, the recording of

    23  cash and evidence of  indebtedness,  and  the  maintenance  of  reliable
    24  records,  accounts,  and reports of transactions, operations and events,
    25  including reports to the commission;
    26    (n) providing for a minimum uniform standard of  accountancy  methods,
    27  procedures  and forms; a uniform code of accounts and accounting classi-
    28  fications; and such other  standard  operating  procedures,  as  may  be
    29  necessary to assure consistency, comparability, and effective disclosure
    30  of  all  financial information, including calculations of percentages of
    31  profit by games, tables, gaming devices and slot machines;
    32    (o) requiring quarterly financial reports and the form thereof, and an
    33  annual audit prepared by a certified public accountant  licensed  to  do

    34  business in this state, attesting to the financial condition of a licen-
    35  see  and disclosing whether the accounts, records and control procedures
    36  examined are maintained by the licensee as required by this article  and
    37  the regulations promulgated hereunder;
    38    (p)  governing  the  gaming-related  advertising  of  licensees, their
    39  employees and agents, with the view toward assuring that such advertise-
    40  ments are not deceptive; and
    41    (q) governing the distribution and consumption of alcoholic  beverages
    42  on the premises of the licensee.
    43    3.  The commission shall, in its regulations, prescribe the manner and
    44  procedure of all hearings conducted by the commission.

    45    § 1308. Reports and recommendations. The commission shall carry  on  a
    46  continuous  study  of the operation and administration of casino control
    47  laws which may be in effect in other jurisdictions, literature  on  this
    48  subject  which  may from time to time become available, and federal laws
    49  which may affect the operation of casino gaming in this state. It  shall
    50  be  responsible  for  ascertaining any defects in this article or in the
    51  rules and regulations issued thereunder, formulating recommendations for
    52  changes in this article. The commission  shall  make  available  to  the
    53  governor  and  the legislature within its annual report an accounting of
    54  all revenues, expenses and disbursements, a review of its licensing  and

    55  enforcement  activities conducted pursuant to section one thousand three
    56  hundred forty of this article and shall include therein such recommenda-
        S. 5883                            12                            A. 8101
 
     1  tions for changes in this article as the commission deems  necessary  or
     2  desirable.
     3    §  1309.  Severability  and  preemption.   1. If any clause, sentence,
     4  subparagraph, paragraph, subdivision, section, article or other  portion
     5  of  this  article  or  the  application thereof to any person or circum-
     6  stances shall be held to be invalid,  such  holding  shall  not  affect,
     7  impair or invalidate the remainder of this article or the application of

     8  such  portion  held  invalid  to  any other person or circumstances, but
     9  shall be confined in its operation to the clause,  sentence,  paragraph,
    10  subparagraph,  subdivision,  section,  article  or other portion thereof
    11  directly involved in such holding or to the person or circumstance ther-
    12  ein involved.
    13    2. If any provision of this article is inconsistent with, in  conflict
    14  with,  or contrary to any other provision of law, such provision of this
    15  article shall prevail over such other provision and such other provision
    16  shall be deemed to be superseded to the extent of such inconsistency  or
    17  conflict. Notwithstanding the provisions of any other law to the contra-
    18  ry,  no  local  government  unit  of this state may enact or enforce any

    19  ordinance or resolution conflicting with any provision of  this  article
    20  or with any policy of this state expressed or implied herein, whether by
    21  exclusion or inclusion. The commission shall have exclusive jurisdiction
    22  over all matters delegated to it or within the scope of its powers under
    23  the provisions of this article.
    24                                   TITLE 2
    25                    FACILITY DETERMINATION AND LICENSING
    26  Section 1310. Development zones and regions.
    27          1311. License authorization; restrictions.
    28          1312. Requests for applications.
    29          1313. Form of application.
    30          1314. License applicant eligibility.
    31          1315. Required capital investment.

    32          1316. Minimum license thresholds.
    33          1317. Investigation of license applicants.
    34          1318. Disqualifying criteria.
    35          1319. Investigative hearings.
    36          1320. Siting evaluation.
    37          1321. Intentionally omitted.
    38    §  1310.  Development  zones and regions.  1. There are hereby created
    39  two development zones to be known as the zone one and zone two. Zone one
    40  shall include the city of New York and the counties of  Nassau,  Putnam,
    41  Rockland,  Suffolk and Westchester. Zone two shall include all the other
    42  counties of the state.
    43    2. Each zone shall be divided into development regions.  (a) The three
    44  development regions in zone one shall  be  comprised  of  the  following

    45  counties:
    46    (1) Region one shall consist of Putnam, Rockland and Westchester coun-
    47  ties;
    48    (2)  Region  two  shall  consist of Bronx, Kings, New York, Queens and
    49  Richmond counties.  No gaming facility shall  be  authorized  in  region
    50  two; and
    51    (3) Region three shall consist of Nassau and Suffolk counties.
    52    (b)  The six development regions in zone two shall be comprised of the
    53  following counties:
    54    (1) Region one shall consist of Columbia, Delaware, Dutchess,  Greene,
    55  Orange, Sullivan and Ulster counties;
        S. 5883                            13                            A. 8101
 
     1    (2)  Region  two  shall consist of Albany, Fulton, Montgomery, Rensse-

     2  laer, Saratoga, Schenectady, Schoharie and Washington counties.
     3    (3)  Region three shall consist of Clinton, Essex, Franklin, Hamilton,
     4  Jefferson, Saint Lawrence and Warren counties;
     5    (4) Region four shall consist of Cayuga, Chenango, Cortland, Herkimer,
     6  Lewis, Madison, Oneida, Onondaga, Oswego and Otsego counties;
     7    (5) Region five shall consist of Broome, Chemung (east of State  Route
     8  14),  Schuyler  (east  of  State Route 14), Seneca, Tioga, Tompkins, and
     9  Wayne (east of State Route 14) counties; and
    10    (6) Region six shall consist  of  Allegany,  Cattaraugus,  Chautauqua,
    11  Chemung  (west  of  State  Route 14), Erie, Genesee, Livingston, Monroe,
    12  Niagara, Ontario, Orleans, Schuyler (west of State Route  14),  Steuben,

    13  Wayne (west of State Route 14), Wyoming, and Yates counties.
    14    §  1311.  License  authorization;  restrictions.  1. The commission is
    15  authorized to award up to four gaming facility licenses, in regions one,
    16  two and five of zone two. The duration of such initial license shall  be
    17  ten  years.  The  term of renewal shall be determined by the commission.
    18  The commission may award a second license to a qualified applicant in no
    19  more than a single region.  The commission is not empowered to award any
    20  license in zone one. No gaming  facilities  are  authorized  under  this
    21  article for the city of New York or any other portion of zone one.
    22    As a condition of licensure, licensees are required to commence gaming

    23  operations  no  less than twenty-four months following license award. No
    24  additional licenses may be awarded during the twenty-four month  period,
    25  nor  for an additional sixty months following the end of the twenty-four
    26  month period.   Should  the  state  legislatively  authorize  additional
    27  gaming  facility licenses within these periods, licensees shall have the
    28  right to recover the license fee paid pursuant to section  one  thousand
    29  three hundred six of this article.
    30    This  right  shall  be incorporated into the license itself, vest upon
    31  the opening of a gaming facility in zone one or in the  same  region  as
    32  the  licensee  and entitle the holder of such license to bring an action

    33  in the court of claims to recover  the  license  fee  paid  pursuant  to
    34  section  one thousand three hundred fifteen of this article in the event
    35  that any gaming facility license in excess of the number  authorized  by
    36  this  section as of the effective date of this section is awarded within
    37  seven years from the date that the initial gaming  facility  license  is
    38  awarded.    This right to recover any such fee shall be proportionate to
    39  the length of the respective period that is  still  remaining  upon  the
    40  vesting of such right.
    41    Additionally,  the  right to bring an action in the court of claims to
    42  recover the fee paid to the state on the twenty-fourth day of September,
    43  two thousand ten, by the operator of a video lottery gaming facility  in

    44  a  city  of more than one million shall vest with such operator upon the
    45  opening of any gaming facility licensed by the commission  in  zone  one
    46  within  seven  years  from  the  date  that  the initial gaming facility
    47  license is awarded; provided however that the amount  recoverable  shall
    48  be limited to the pro rata amount of the time remaining until the end of
    49  the  seven  year exclusivity period, proportionate to the period of time
    50  between the date of oepning of the  video  lottery  facility  until  the
    51  conclusion of the seven year period.
    52    2.  Notwithstanding  the foregoing, no casino gaming facility shall be
    53  authorized:
    54    (a) in the counties of Clinton, Essex, Franklin, Hamilton,  Jefferson,

    55  Lewis, Saint Lawrence and Warren;
        S. 5883                            14                            A. 8101
 
     1    (b)  within  the  following area: (1) to the east, State Route 14 from
     2  Sodus Point to the Pennsylvania border with New York; (2) to the  north,
     3  the border between New York and Canada; (3) to the south, the Pennsylva-
     4  nia  border  with  New York; and (4) to the west, the border between New
     5  York and Canada and the border between Pennsylvania and New York; and
     6    (c)  in  the  counties of Cayuga, Chenango, Cortland, Herkimer, Lewis,
     7  Madison, Oneida, Onondaga, Oswego and Otsego.
     8    § 1312. Requests for applications.  1. The board  shall  issue  within

     9  ninety  days  of  a  majority  of  members being appointed a request for
    10  applications for a gaming facility license in regions one, two and  five
    11  in  zone  two;  provided,  however,  that  the board shall not issue any
    12  requests for applications for  any  region  in  zone  one;  and  further
    13  provided  that  the  board shall not issue any requests for applications
    14  with respect to any gaming facility subsequently  legislatively  author-
    15  ized  until  seven years following the commencement of gaming activities
    16  in zone two. All requests for applications shall include:
    17    (a) the time and date for receipt of  responses  to  the  request  for
    18  applications,  the manner they are to be received and the address of the

    19  office to which the applications shall be delivered;
    20    (b) the form of the application and the method for submission;
    21    (c) a general description of the anticipated schedule  for  processing
    22  the application;
    23    (d)  the contact information of board employees responsible for handl-
    24  ing applicant questions; and
    25    (e) any other information that the board determines.
    26    2. Board activities shall be subject to section  one  hundred  thirty-
    27  nine-j and section one hundred thirty-nine-k of the state finance law.
    28    3.  Requests  for  applications  pursuant  to  subdivision one of this
    29  section shall be advertised in a newspaper of general circulation and on
    30  the official internet website of the commission and the board.

    31    4. The board shall establish deadlines for the receipt of all applica-
    32  tions. Applications received after the deadline shall not be reviewed by
    33  the board.
    34    § 1313. Form of application.  1. The commission and  the  board  shall
    35  prescribe  the initial form of the application for gaming licenses which
    36  shall require, but not be limited to:
    37    (a) the name of the applicant;
    38    (b) the mailing address and, if a corporation, the name of  the  state
    39  under  the laws of which it is incorporated, the location of its princi-
    40  pal place of business and the names and addresses of its  directors  and
    41  such stockholders as to be determined by the commission;
    42    (c)  the  identity of each person having a direct or indirect interest

    43  in the business and the nature of such interest; provided, however, that
    44  if the disclosed entity is a trust, the application shall  disclose  the
    45  names  and addresses of all beneficiaries; provided further, that if the
    46  disclosed entity is a partnership, the application  shall  disclose  the
    47  names  and  addresses  of  all  partners,  both general and limited; and
    48  provided further, that if the disclosed entity is  a  limited  liability
    49  company,  the  application shall disclose the names and addresses of all
    50  members;
    51    (d) an independent audit report of all financial activities and inter-
    52  ests including, but not limited to, the disclosure of all contributions,
    53  donations, loans or any other financial transactions to or from a gaming

    54  entity or operator in the past five years;
    55    (e) clear and convincing evidence of  financial  stability  including,
    56  but  not  limited  to, bank references, business and personal income and
        S. 5883                            15                            A. 8101
 
     1  disbursement schedules, tax returns and other reports filed  by  govern-
     2  ment  agencies  and  business  and personal accounting check records and
     3  ledgers;
     4    (f)  information  and  documentation to demonstrate that the applicant
     5  has sufficient business ability and experience to create the  likelihood
     6  of establishing and maintaining a successful gaming facility;
     7    (g)  a full description of the proposed internal controls and security

     8  systems for the proposed gaming facility and any related facilities;
     9    (h) the designs for the proposed gaming facility, including the  names
    10  and addresses of the architects, engineers and designers, and a timeline
    11  of  construction  that  includes detailed stages of construction for the
    12  gaming facility and  non-gaming  structures,  where  applicable,  and  a
    13  proposed date to open for gaming;
    14    (i) the number of construction hours estimated to complete the work;
    15    (j)  a  description  of the ancillary entertainment services and amen-
    16  ities to be provided at the proposed gaming facility;
    17    (k) the number of employees to be  employed  at  the  proposed  gaming
    18  facility,  including  detailed  information on the pay rate and benefits

    19  for employees;
    20    (l) completed studies and reports as required by the commission, which
    21  shall include, but not be limited to, an  examination  of  the  proposed
    22  gaming facility's:
    23    (1) economic benefits to the region and the state;
    24    (2)  local and regional social, environmental, traffic and infrastruc-
    25  ture impacts;
    26    (3) impact on the local and regional economy, including the impact  on
    27  cultural  institutions  and on small businesses in the host municipality
    28  and nearby municipalities;
    29    (4) cost to the host municipality, nearby municipalities and the state
    30  for the proposed gaming facility to be located at the proposed location;
    31  and

    32    (5) the estimated state tax revenue to  be  generated  by  the  gaming
    33  facility;
    34    (m) the names of proposed vendors of gaming equipment;
    35    (n)  the location of the proposed gaming facility, which shall include
    36  the address, maps, book and page numbers from the  appropriate  registry
    37  of  deeds,  assessed  value  of  the land at the time of application and
    38  ownership interests over the past twenty years, including all interests,
    39  options, agreements in property and demographic, geographic and environ-
    40  mental information and any other information requested  by  the  commis-
    41  sion;
    42    (o)  the  type  and  number  of  games to be conducted at the proposed
    43  gaming facility and the specific location of the games in  the  proposed

    44  gaming facility;
    45    (p)  the  number  of hotels and rooms, restaurants and other amenities
    46  located at the proposed gaming facility and how they measure in  quality
    47  to other area hotels and amenities;
    48    (q)  whether  the  applicant's  proposed  gaming facility is part of a
    49  regional or local economic plan; and
    50    (r) whether the applicant purchased or intends to  purchase  publicly-
    51  owned land for the proposed gaming facility.
    52    2.  Applications for licenses shall be public records; provided howev-
    53  er, that trade secrets,  competitively-sensitive  or  other  proprietary
    54  information  provided  in  the  course  of  an  application for a gaming
    55  license under this article, the disclosure  of  which  would  place  the

    56  applicant at a competitive disadvantage, may be withheld from disclosure
        S. 5883                            16                            A. 8101
 
     1  pursuant  to paragraph (d) of subdivision two of section eighty-seven of
     2  the public officers law.
     3    §  1314.  License applicant eligibility.   1. Gaming facility licenses
     4  shall only be issued to applicants who are qualified under the  criteria
     5  set forth in this article, as determined by the commission.
     6    2.  As  a  condition  of filing, each potential license applicant must
     7  demonstrate to the board's satisfaction  that  local  support  has  been
     8  demonstrated.
     9    3.  Within  any development region, if the commission is not convinced

    10  that there is an applicant that has met the eligibility criteria or  the
    11  board finds that no applicant has provided substantial evidence that its
    12  proposal  will  provide value to the region in which the gaming facility
    13  is proposed to be located, no gaming facility license shall  be  awarded
    14  in that region.
    15    § 1315. Required capital investment.  1. The board shall establish the
    16  minimum  capital  investment  for  a gaming facility by zone and region.
    17  Such investment shall include, but not be limited to, a casino area,  at
    18  least  one  hotel  and  other  amenities; and provided further, that the
    19  board shall determine whether it will  include  the  purchase  or  lease
    20  price  of  the  land  where  the  gaming facility will be located or any

    21  infrastructure designed to support the site including, but  not  limited
    22  to,  drainage, utility support, roadways, interchanges, fill and soil or
    23  groundwater or surface  water  contamination  issues.    The  board  may
    24  consider  private capital investment made previous to the effective date
    25  of this section, but may, in its discretion, discount  a  percentage  of
    26  the  investment made.  Upon award of a gaming license by the commission,
    27  the applicant shall be required to deposit  ten  percent  of  the  total
    28  investment proposed in the application into an interest-bearing account.
    29  Monies  received  from  the  applicant shall be held in escrow until the
    30  final stage of construction, as detailed in the timeline of construction

    31  submitted with the licensee's application and approved  by  the  commis-
    32  sion,  at  which time the deposit plus interest earned shall be returned
    33  to the applicant to be applied for the final stage.   Should the  appli-
    34  cant  be  unable  to  complete the gaming facility, the deposit shall be
    35  forfeited to the state. In place of a cash deposit, the  commission  may
    36  allow  for  an  applicant  to  secure  a  deposit bond insuring that ten
    37  percent of the proposed capital investment shall  be  forfeited  to  the
    38  state if the applicant is unable to complete the gaming facility.
    39    2.  Each  applicant  shall submit its proposed capital investment with
    40  its application to the board which shall include stages of  construction

    41  of  the gaming facility and the deadline by which the stages and overall
    42  construction and any infrastructure improvements will be  completed.  In
    43  awarding  a  license,  the  commission  shall determine at what stage of
    44  construction a licensee shall be approved to open for gaming;  provided,
    45  however,  that a licensee shall not be approved to open for gaming until
    46  the commission has determined that at least the gaming  area  and  other
    47  ancillary  entertainment  services and non-gaming amenities, as required
    48  by the board, have been built and are of a superior quality as set forth
    49  in the conditions of licensure.   The commission  shall  not  approve  a
    50  gaming  facility  to  open before the completion of the permanent casino
    51  area.

    52    3. A licensee who fails to begin gaming operations within  twenty-four
    53  months following license award shall be subject to suspension or revoca-
    54  tion  of the gaming license by the commission and may, after being found
    55  by the commission after notice and opportunity for  a  hearing  to  have
        S. 5883                            17                            A. 8101
 
     1  acted in bad faith in its application, be assessed a fine of up to fifty
     2  million dollars.
     3    4.  The board shall determine a licensing fee to be paid by a licensee
     4  within thirty days after the award of the license which shall be  depos-
     5  ited  into  the  commercial  gaming  revenue fund. The license shall set

     6  forth the conditions to be satisfied by the licensee before  the  gaming
     7  facility  shall  be  opened  to the public. The commission shall set any
     8  renewal fee for such license based on the cost of fees  associated  with
     9  the evaluation of a licensee under this article which shall be deposited
    10  into  the commercial gaming fund. Such renewal fee shall be exclusive of
    11  any subsequent licensing fees under this section.
    12    5. The commission shall determine the sources and total amount  of  an
    13  applicant's  proposed capitalization to develop, construct, maintain and
    14  operate a proposed gaming facility under this article. Upon award  of  a
    15  gaming  license, the commission shall continue to assess the capitaliza-

    16  tion of a licensee for the duration  of  construction  of  the  proposed
    17  gaming facility and the term of the license.
    18    § 1316. Minimum license thresholds.  No applicant shall be eligible to
    19  receive a gaming license unless the applicant meets the following crite-
    20  ria  and  clearly  states  as  part of an application that the applicant
    21  shall:
    22    1. in accordance with the design plans submitted with  the  licensee's
    23  application  to  the  board,  invest  not less than the required capital
    24  under this article into the gaming facility;
    25    2. own or acquire, within sixty days after a license has been awarded,
    26  the land where the  gaming  facility  is  proposed  to  be  constructed;

    27  provided,  however,  that  ownership of the land shall include a tenancy
    28  for a term of years under a lease that extends not less than sixty years
    29  beyond the term of the gaming license issued under this article;
    30    3. meet the licensee deposit requirement;
    31    4. demonstrate that it is able to pay and shall commit to  paying  the
    32  gaming licensing fee;
    33    5. demonstrate to the commission how the applicant proposes to address
    34  problem  gambling concerns, workforce development and community develop-
    35  ment and host and nearby municipality impact and mitigation issues;
    36    6. identify the infrastructure costs of the host municipality incurred
    37  in direct relation to the construction and operation of a gaming facili-

    38  ty and commit to a community mitigation plan for the host municipality;
    39    7. identify the service costs of the host  municipality  incurred  for
    40  emergency  services  in  direct  relation  to  the operation of a gaming
    41  facility and commit to a community mitigation plan for the host  munici-
    42  pality;
    43    8.  pay to the commission an application fee of one million dollars to
    44  defray the costs associated with the processing of the  application  and
    45  investigation  of the applicant; provided, however, that if the costs of
    46  the investigation exceed the  initial  application  fee,  the  applicant
    47  shall  pay  the  additional  amount to the commission within thirty days
    48  after notification of insufficient fees  or  the  application  shall  be

    49  rejected  and  further  provided  that should the costs of such investi-
    50  gation not exceed the fee remitted,  any  unexpended  portion  shall  be
    51  returned to the applicant;
    52    9. comply with state building and fire prevention codes;
    53    10.  formulate  for  board approval and abide by an affirmative action
    54  program of equal opportunity whereby the applicant establishes  specific
    55  goals   for  the  utilization  of  minorities,  women  and  veterans  on
    56  construction jobs.
        S. 5883                            18                            A. 8101
 
     1    § 1317. Investigation of license applicants.   1. Upon receipt  of  an
     2  application for a gaming facility license, the commission shall cause to

     3  be  commenced an investigation into the suitability of the applicant. In
     4  evaluating the  suitability  of  the  applicant,  the  commission  shall
     5  consider  the  overall  reputation  of  the applicant including, without
     6  limitation:
     7    (a) the integrity, honesty,  good  character  and  reputation  of  the
     8  applicant;
     9    (b)  the  financial  stability, integrity and background of the appli-
    10  cant;
    11    (c) the business practices and the business ability of  the  applicant
    12  to establish and maintain a successful gaming facility;
    13    (d)  whether  the  applicant  has  a history of compliance with gaming
    14  licensing requirements in other jurisdictions;

    15    (e) whether the applicant, at the time of application, is a  defendant
    16  in litigation involving its business practices;
    17    (f)  the suitability of all parties in interest to the gaming facility
    18  license, including affiliates and close  associates  and  the  financial
    19  resources of the applicant; and
    20    (g)  whether  the  applicant  is disqualified from receiving a license
    21  under this article; provided, however, that in considering the rehabili-
    22  tation of an applicant for a gaming  facility  license,  the  commission
    23  shall  not automatically disqualify an applicant if the applicant affir-
    24  matively demonstrates, by clear and convincing evidence, that the appli-
    25  cant has financial responsibility, character, reputation, integrity  and

    26  general  fitness  as  such  to warrant belief by the commission that the
    27  applicant will act honestly, fairly, soundly and efficiently as a gaming
    28  licensee.
    29    2. If the investigation reveals that an applicant has failed to:
    30    (a) establish the applicant's integrity or the integrity of any affil-
    31  iate, close associate, financial source or any  person  required  to  be
    32  qualified by the commission;
    33    (b) demonstrate responsible business practices in any jurisdiction; or
    34    (c)  overcome any other reason, as determined by the commission, as to
    35  why it would be injurious to the interests of the state in awarding  the
    36  applicant  a  gaming  facility  license,  the  commission shall deny the

    37  application, subject to notice and an opportunity for hearing.
    38    3. If the investigation reveals  that  an  applicant  is  suitable  to
    39  receive  a  gaming facility license, the entity shall recommend that the
    40  commission commence a review of the applicant's entire application.
    41    § 1318. Disqualifying criteria.    1.  The  commission  shall  deny  a
    42  license  to  any applicant who the commission determines is disqualified
    43  on the basis of any of the following criteria, subject to notice and  an
    44  opportunity for hearing:
    45    (a) failure of the applicant to prove by clear and convincing evidence
    46  that  the  applicant  is  qualified in accordance with the provisions of
    47  this article;

    48    (b) failure of the applicant to provide information, documentation and
    49  assurances required by this article or requested by the  commission,  or
    50  failure  of  the applicant to reveal any fact material to qualification,
    51  or the supplying of information which is untrue or misleading  as  to  a
    52  material fact pertaining to the qualification criteria;
    53    (c)  the  conviction of the applicant, or of any person required to be
    54  qualified under this article as a condition of a license, of any offense
    55  in any jurisdiction which is or would be a felony or other crime involv-
    56  ing public integrity, embezzlement, theft, fraud or perjury;
        S. 5883                            19                            A. 8101
 

     1    (d) committed prior acts which have not been prosecuted  or  in  which
     2  the  applicant,  or  of  any  person required to be qualified under this
     3  article as a condition of a  license,  was  not  convicted  but  form  a
     4  pattern  of misconduct that makes the applicant unsuitable for a license
     5  under this article; or
     6    (e)  if the applicant, or of any person required to be qualified under
     7  this article as a condition of a license, has affiliates or close  asso-
     8  ciates  that  would not qualify for a license or whose relationship with
     9  the applicant may pose an injurious threat to the interests of the state
    10  in awarding a gaming facility license to the applicant;
    11    (f) any other offense under present state or federal law  which  indi-

    12  cates that licensure of the applicant would be inimical to the policy of
    13  this article; provided, however, that the disqualification provisions of
    14  this section shall not apply with regard to any misdemeanor conviction;
    15    (g)  current prosecution or pending charges in any jurisdiction of the
    16  applicant or of any person who is required to be  qualified  under  this
    17  article  as a condition of a license, for any of the offenses enumerated
    18  in paragraph (c) of subdivision one of this section; provided,  however,
    19  that  at the request of the applicant or the person charged, the commis-
    20  sion may defer decision upon such application  during  the  pendency  of
    21  such charge;
    22    (h)  the  pursuit by the applicant or any person who is required to be

    23  qualified under this article as a condition of  a  license  of  economic
    24  gain  in  an occupational manner or context which is in violation of the
    25  criminal or civil public policies of this state, if such pursuit creates
    26  a reasonable belief that the participation  of  such  person  in  gaming
    27  facility  operations  would be inimical to the policies of this article.
    28  For purposes of this section, occupational manner or  context  shall  be
    29  defined  as  the  systematic  planning,  administration,  management, or
    30  execution of an activity for financial gain;
    31    (i) the identification of the applicant or any person who is  required
    32  to  be  qualified  under  this  article as a condition of a license as a

    33  career offender or a member of a career offender cartel or an  associate
    34  of  a  career  offender or career offender cartel in such a manner which
    35  creates a reasonable belief that the association is of such a nature  as
    36  to  be  inimical  to  the  policy  of this article. For purposes of this
    37  section, career offender shall be defined as any person  whose  behavior
    38  is  pursued  in  an  occupational  manner  or context for the purpose of
    39  economic gain, utilizing such methods as are deemed criminal  violations
    40  of  the  public  policy of this state. A career offender cartel shall be
    41  defined as any group of persons who operate together  as  career  offen-
    42  ders;
    43    (j)  the  commission by the applicant or any person who is required to

    44  be qualified under this article as a condition of a license of  any  act
    45  or acts which would constitute any offense under paragraph (c) of subdi-
    46  vision one of this section, even if such conduct has not been or may not
    47  be  prosecuted under the criminal laws of this state or any other juris-
    48  diction;
    49    (k) flagrant defiance by the applicant or any person who  is  required
    50  to be qualified under this article of any legislative investigatory body
    51  or  other  official  investigatory  body  of  any state or of the United
    52  States when such body is engaged in the investigation of crimes relating
    53  to gaming, official corruption, or organized crime activity; and
    54    (l) failure by the applicant or any person required  to  be  qualified

    55  under this article as a condition of a license to make required payments
    56  in  accordance  with  a  child  support  order, repay an overpayment for
        S. 5883                            20                            A. 8101
 
     1  public assistance benefits, or repay any other debt owed  to  the  state
     2  unless  such applicant provides proof to the executive director's satis-
     3  faction of payment of or arrangement to pay  any  such  debts  prior  to
     4  licensure.
     5    §  1319.  Hearings.  The commission and the board shall have the inde-
     6  pendent authority to conduct hearings concerning the conduct  of  gaming
     7  and  applicants  for  gaming  facility  licenses  in accordance with any

     8  procedures set forth in this article  and  any  applicable  implementing
     9  regulations.
    10    §  1320. Siting evaluation.  In determining whether an applicant shall
    11  be eligible for a gaming facility license, the board shall evaluate  and
    12  issue  a finding of how each applicant proposes to advance the following
    13  objectives.
    14    1. The decision by the board  to  select  a  gaming  facility  license
    15  applicant  shall be weighted by seventy percent based on economic activ-
    16  ity and business development factors including:
    17    (a) realizing maximum capital investment exclusive of land acquisition
    18  and infrastructure improvements;
    19    (b) maximizing revenues received by the state and localities;

    20    (c) providing the highest number of quality jobs in the gaming facili-
    21  ty;
    22    (d) building a gaming facility of the highest caliber with  a  variety
    23  of quality amenities to be included as part of the gaming facility;
    24    (e)  offering the highest and best value to patrons to create a secure
    25  and robust gaming market in the region and the state;
    26    (f) providing a market analysis detailing the  benefits  of  the  site
    27  location  of  the  gaming  facility  and the estimated recapture rate of
    28  gaming-related spending  by  residents  travelling  to  an  out-of-state
    29  gaming facility;
    30    (g) offering the fastest time to completion of the full gaming facili-
    31  ty;

    32    (h)  demonstrating  the  ability to fully finance the gaming facility;
    33  and
    34    (i) demonstrating experience in the development  and  operation  of  a
    35  quality gaming facility.
    36    2.  The  decision  by  the  board  to select a gaming facility license
    37  applicant shall be weighted by twenty percent based on local impact  and
    38  siting factors including:
    39    (a)  mitigating  potential  impacts  on host and nearby municipalities
    40  which might result from the  development  or  operation  of  the  gaming
    41  facility;
    42    (b) gaining public support in the host and nearby municipalities which
    43  may  be demonstrated through the passage of local laws or public comment
    44  received by the board or gaming applicant;

    45    (c) operating in partnership with and promoting local hotels,  restau-
    46  rants and retail facilities so that patrons experience the full diversi-
    47  fied regional tourism industry; and
    48    (d)  establishing  a  fair and reasonable partnership with live enter-
    49  tainment venues that may be impacted by a gaming  facility  under  which
    50  the  gaming  facility actively supports the mission and the operation of
    51  the impacted entertainment venues.
    52    3. The decision by the board  to  select  a  gaming  facility  license
    53  applicant  shall  be weighted by ten percent based on workforce enhance-
    54  ment factors including:
    55    (a) implementing a workforce development plan that utilizes the exist-

    56  ing labor force, including the estimated number of construction  jobs  a
        S. 5883                            21                            A. 8101
 
     1  proposed  gaming  facility  will  generate, the development of workforce
     2  training programs that serve the unemployed and  methods  for  accessing
     3  employment at the gaming facility;
     4    (b)  taking additional measures to address problem gambling including,
     5  but not limited to, training of gaming  employees  to  identify  patrons
     6  exhibiting problems with gambling;
     7    (c)  utilizing  sustainable  development principles including, but not
     8  limited to:
     9    (1) having new and renovation construction certified under the  appro-

    10  priate  certification  category in the Leadership in Energy and Environ-
    11  mental Design Green Building Rating System created by the United  States
    12  Green Building Council;
    13    (2) efforts to mitigate vehicle trips;
    14    (3) efforts to conserve water and manage storm water;
    15    (4)  demonstrating  that  electrical and HVAC equipment and appliances
    16  will be Energy Star labeled where available;
    17    (5) procuring or generating on-site ten percent of  its  annual  elec-
    18  tricity consumption from renewable sources; and
    19    (6)  developing  an  ongoing  plan  to  submeter and monitor all major
    20  sources of energy consumption and undertake regular efforts to  maintain
    21  and improve energy efficiency of buildings in their systems;

    22    (d)  establishing,  funding  and maintaining human resource hiring and
    23  training practices that promote the development of a skilled and diverse
    24  workforce and access to  promotion  opportunities  through  a  workforce
    25  training program that:
    26    (1)  establishes  transparent  career  paths  with measurable criteria
    27  within the gaming facility that lead  to  increased  responsibility  and
    28  higher  pay grades that are designed to allow employees to pursue career
    29  advancement and promotion;
    30    (2) provides employee access to additional resources, such as  tuition
    31  reimbursement  or  stipend  policies, to enable employees to acquire the
    32  education or job training  needed  to  advance  career  paths  based  on

    33  increased responsibility and pay grades; and
    34    (3) establishes an on-site child day care program;
    35    (e)  purchasing,  whenever  possible,  domestically  manufactured slot
    36  machines for installation in the gaming facility;
    37    (f) implementing a workforce development plan that:
    38    (1) incorporates an affirmative action program of equal opportunity by
    39  which the applicant guarantees to provide equal employment opportunities
    40  to all employees qualified for licensure in all  employment  categories,
    41  including persons with disabilities;
    42    (2) utilizes the existing labor force in the state;
    43    (3)  estimates  the number of construction jobs a gaming facility will
    44  generate and provides  for  equal  employment  opportunities  and  which

    45  includes  specific  goals  for  the utilization of minorities, women and
    46  veterans on those construction jobs;
    47    (4) identifies workforce  training  programs  offered  by  the  gaming
    48  facility; and
    49    (5)  identifies  the  methods  for  accessing employment at the gaming
    50  facility; and
    51    (g) demonstrating that the applicant has an agreement  with  organized
    52  labor,  including hospitality services, and has the support of organized
    53  labor for its application, which specifies:
    54    (1) the number of employees to be employed  at  the  gaming  facility,
    55  including  detailed information on the pay rate and benefits for employ-
        S. 5883                            22                            A. 8101
 

     1  ees and contractors  in  the  gaming  facility  and  all  infrastructure
     2  improvements related to the project; and
     3    (2) detailed plans for assuring labor harmony during all phases of the
     4  construction,  reconstruction,  renovation, development and operation of
     5  the gaming facility.
     6    § 1321. Intentionally omitted.
     7                                   TITLE 3
     8                           OCCUPATIONAL LICENSING
     9  Section 1322. General provisions.
    10          1323. Key employee licenses.
    11          1324. Gaming employee registration.
    12          1325. Approval, denial and  renewal  of  employee  licenses  and
    13                  registrations.

    14    §  1322. General provisions.  1. It shall be the affirmative responsi-
    15  bility of each applicant or licensee to establish by clear and  convinc-
    16  ing  evidence  its  individual qualifications, and for a gaming facility
    17  license the qualifications of each person who is required to  be  quali-
    18  fied under this article.
    19    2.  Any  applicant, licensee, registrant, or any other person who must
    20  be qualified pursuant to this article shall provide all legally required
    21  information and satisfy all lawful requests for  information  pertaining
    22  to  qualification  and  in  the form specified by regulation. All appli-
    23  cants, registrants, and licensees shall waive liability as to the state,

    24  and its instrumentalities and agents, for any damages resulting from any
    25  disclosure or publication in any manner, other than a willfully unlawful
    26  disclosure or publication,  of  any  material  or  information  acquired
    27  during inquiries, investigations or hearings.
    28    3. All applicants, licensees, registrants, intermediary companies, and
    29  holding  companies  shall  consent to inspections, searches and seizures
    30  while at a gaming facility and the supplying of handwriting exemplars as
    31  authorized by this article and regulations promulgated hereunder.
    32    4. All applicants, licensees, registrants, and any  other  person  who
    33  shall  be  qualified  pursuant to this article shall have the continuing

    34  duty to provide any assistance or information required  by  the  commis-
    35  sion,  and  to  cooperate  in  any  inquiry,  investigation  or  hearing
    36  conducted by the commission.  If, upon issuance of a formal  request  to
    37  answer  or  produce  information,  evidence or testimony, any applicant,
    38  licensee, registrant, or any other person who shall be qualified  pursu-
    39  ant  to this article refuses to comply, the application, license, regis-
    40  tration or qualification of such person may be denied or revoked.
    41    5. Each applicant or person who must be qualified under  this  article
    42  shall  be photographed and fingerprinted for identification and investi-
    43  gation purposes in accordance with procedures set forth by regulation.

    44    6. All licensees, all registrants, and all other persons  required  to
    45  be  qualified under this article shall have a duty to inform the commis-
    46  sion of any action which they believe would constitute  a  violation  of
    47  this article. No person who so informs the commission shall be discrimi-
    48  nated  against  by  an  applicant, licensee or registrant because of the
    49  supplying of such information.
    50    § 1323. Key employee licenses.  1. No licensee or a holding or  inter-
    51  mediary  company  of  a  licensee  may employ any person as a casino key
    52  employee unless the person is the holder of a valid casino key  employee
    53  license issued by the commission.
    54    2. Each applicant for a casino key employee license must, prior to the

    55  issuance  of  any  casino  key  employee  license,  produce information,
        S. 5883                            23                            A. 8101
 
     1  documentation and  assurances  concerning  the  following  qualification
     2  criteria:
     3    (a)  Each  applicant  for  a casino key employee license shall produce
     4  such information,  documentation  and  assurances  as  may  be  lawfully
     5  required  to  establish  by  clear and convincing evidence the financial
     6  stability, integrity and responsibility of the applicant, including  but
     7  not  limited  to  bank  references,  business  and  personal  income and
     8  disbursements schedules,  tax  returns  and  other  reports  filed  with

     9  governmental  agencies,  and  business and personal accounting and check
    10  records and ledgers.   In addition, each applicant  shall,  in  writing,
    11  authorize  the  examination  of  all bank accounts and records as may be
    12  deemed necessary by the commission.
    13    (b) Each applicant for a casino key  employee  license  shall  produce
    14  such  information,  documentation  and  assurances as may be required to
    15  establish by clear and convincing evidence the applicant's good  charac-
    16  ter, honesty and integrity. Such information shall include data pertain-
    17  ing  to family, habits, character, reputation, criminal history informa-
    18  tion, business activities, financial affairs, and business, professional

    19  and personal associates, covering at least the  ten  year  period  imme-
    20  diately  preceding  the filing of the application.  Each applicant shall
    21  notify the commission of  any  civil  judgments  obtained  against  such
    22  applicant  pertaining  to  antitrust  or security regulation laws of the
    23  federal government, of this state or of any other  state,  jurisdiction,
    24  province  or country. In addition, each applicant shall, upon request of
    25  the commission, produce letters of reference from law enforcement  agen-
    26  cies having jurisdiction in the applicant's place of residence and prin-
    27  cipal  place of business, which letters of reference shall indicate that
    28  such law enforcement agencies  do  not  have  any  pertinent  non-sealed

    29  information  concerning the applicant, or if such law enforcement agency
    30  does have such information pertaining to the  applicant,  shall  specify
    31  what  that  information  is.  If  the applicant has been associated with
    32  gaming operations in any capacity, position or employment in a jurisdic-
    33  tion which permits such activity, the applicant shall, upon  request  of
    34  the commission, produce letters of reference from the gaming enforcement
    35  or  control  agency,  which  shall specify the experience of such agency
    36  with the applicant, his or her associates and his or  her  participation
    37  in  the  gaming operations of that jurisdiction; provided, however, that
    38  if no such letters are received from  the  appropriate  law  enforcement

    39  agencies  within  sixty  days  of  the applicant's request therefor, the
    40  applicant may submit a statement under oath that he or  she  is  or  was
    41  during  the  period such activities were conducted in good standing with
    42  such gaming enforcement or control agency.
    43    (c) Each applicant employed by a gaming facility licensee shall  be  a
    44  resident  of  the  state  prior to the issuance of a casino key employee
    45  license; provided, however, that  upon  petition  by  the  holder  of  a
    46  license,  the  commission  may  waive this residency requirement for any
    47  applicant whose particular position will  require  him  to  be  employed
    48  outside  the state; and provided further that no applicant employed by a

    49  holding or intermediary company of  a  licensee  shall  be  required  to
    50  establish residency in this state.
    51    (d)  For  the purposes of this section, each applicant shall submit to
    52  the commission the applicant's name, address, fingerprints  and  written
    53  consent  for  a criminal history information as defined in paragraph (c)
    54  of subdivision one of section eight hundred forty-five-b of  the  execu-
    55  tive  law,  to  be  performed.  The  commission  is hereby authorized to
    56  exchange fingerprint data  with  and  receive  criminal  history  record
        S. 5883                            24                            A. 8101
 
     1  information from the state division of criminal justice services and the

     2  federal  bureau  of  investigation  consistent with applicable state and
     3  federal laws, rules and regulations. The applicant shall pay the fee for
     4  such  criminal  history  information  as established pursuant to article
     5  thirty-five of the executive  law.    The  state  division  of  criminal
     6  justice  services  shall  promptly  notify the commission in the event a
     7  current or prospective licensee, who was the subject  of  such  criminal
     8  history information pursuant to this section, is arrested for a crime or
     9  offense in this state after the date the check was performed.
    10    3.  The  commission  shall  deny  a casino key employee license to any
    11  applicant who is disqualified on the basis of the criteria contained  in

    12  section  one  thousand  three hundred eighteen of this title, subject to
    13  notice and hearing.
    14    4. Upon receipt of such criminal history information,  the  commission
    15  shall provide such applicant with a copy of such criminal history infor-
    16  mation, together with a copy of article twenty-three-A of the correction
    17  law, and inform such applicant of his or her right to seek correction of
    18  any incorrect information contained in such criminal history information
    19  pursuant  to  regulations  and procedures established by the division of
    20  criminal justice services. Except as otherwise  provided  by  law,  such
    21  criminal  history  information  shall be confidential and any person who
    22  willfully permits the release  of  such  confidential  criminal  history

    23  information  to  persons not permitted to receive such information shall
    24  be guilty of a misdemeanor.
    25    5. Upon petition by the holder of a license, the commission may  issue
    26  a  temporary  license to an applicant for a casino key employee license,
    27  provided that:
    28    (a) The applicant for the casino key  employee  license  has  filed  a
    29  completed application as required by the commission;
    30    (b)  The  petition  for a temporary casino key employee license certi-
    31  fies, and the commission finds, that an  existing  casino  key  employee
    32  position  of the petitioner is vacant or will become vacant within sixty
    33  days of the date of the petition and that the issuance  of  a  temporary

    34  key  employee  license is necessary to fill the said vacancy on an emer-
    35  gency basis to continue the efficient operation of the casino, and  that
    36  such  circumstances are extraordinary and not designed to circumvent the
    37  normal licensing procedures of this article;
    38    6. Unless otherwise terminated pursuant to this article, any temporary
    39  casino key employee license issued pursuant to this section shall expire
    40  nine months from the date of its issuance.
    41    § 1324. Gaming employee registration.    1.  No  person  may  commence
    42  employment as a gaming employee unless such person has a valid registra-
    43  tion  on  file with the commission, which registration shall be prepared
    44  and filed in accordance with the regulations promulgated hereunder.

    45    2. A gaming employee registrant shall produce such information as  the
    46  commission by regulation may require.  Subsequent to the registration of
    47  a gaming employee, the executive director may revoke, suspend, limit, or
    48  otherwise  restrict  the registration upon a finding that the registrant
    49  is disqualified on the basis of the criteria contained  in  section  one
    50  thousand  three  hundred  eighteen of this title.   If a gaming employee
    51  registrant has not been employed in any position within a gaming facili-
    52  ty for a period of three years, the registration of that gaming employee
    53  shall lapse.
    54    3.  No gaming employee registration shall be denied or revoked on  the
    55  basis  of  a misdemeanor conviction of any of the offenses enumerated in

    56  this article as disqualification criteria or the commission of  any  act
        S. 5883                            25                            A. 8101
 
     1  or  acts  which  would constitute any offense under section one thousand
     2  three hundred eighteen of this title, provided that the  registrant  has
     3  affirmatively  demonstrated the registrant's rehabilitation, pursuant to
     4  article twenty-three-A of the correction law.
     5    4.  For  the purposes of this section, each registrant shall submit to
     6  the commission the registrant's name, address, fingerprints and  written
     7  consent  for a criminal history information to be performed. The commis-
     8  sion is hereby authorized to exchange fingerprint data with and  receive

     9  criminal  history information as defined in paragraph (c) of subdivision
    10  one of section eight hundred forty-five-b of the executive law from  the
    11  state  division  of  criminal justice services and the federal bureau of
    12  investigation consistent with applicable state and federal  laws,  rules
    13  and  regulations.  The  registrant  shall  pay the fee for such criminal
    14  history information as established pursuant to  article  thirty-five  of
    15  the  executive  law.    The  state division of criminal justice services
    16  shall promptly notify the commission in the event a current or  prospec-
    17  tive  licensee,  who  was  the subject of a criminal history information
    18  pursuant to this section, is arrested for a crime  or  offense  in  this

    19  state after the date the check was performed.
    20    5.  Upon  receipt of such criminal history information, the Commission
    21  shall provide such applicant with a copy of such criminal history infor-
    22  mation, together with a copy of article twenty-three-A of the correction
    23  law, and inform such applicant of his or her right to seek correction of
    24  any incorrect information contained in such criminal history information
    25  pursuant to regulations and procedures established by  the  division  of
    26  criminal  justice  services.  Except  as otherwise provided by law, such
    27  criminal history information shall be confidential and  any  person  who
    28  willfully  permits  the  release  of  such confidential criminal history

    29  information to persons not permitted to receive such  information  shall
    30  be guilty of a misdemeanor.
    31    §  1325.  Approval, denial and renewal of employee licenses and regis-
    32  trations.  1. Upon the filing of an application for a casino key employ-
    33  ee license or gaming employee registration required by this article  and
    34  after  submission of such supplemental information as the commission may
    35  require, the commission shall conduct or  cause  to  be  conducted  such
    36  investigation  into  the qualification of the applicant, and the commis-
    37  sion shall conduct such hearings concerning  the  qualification  of  the
    38  applicant,  in  accordance  with its regulations, as may be necessary to
    39  determine qualification for such license.

    40    2. After such investigation, the commission may either deny the appli-
    41  cation or grant a license to an applicant whom it determines to be qual-
    42  ified to hold such license.
    43    3. The commission shall have the authority  to  deny  any  application
    44  pursuant to the provisions of this article following notice and opportu-
    45  nity for hearing.
    46    4. When the commission grants an application, the commission may limit
    47  or  place  such  restrictions  thereupon as it may deem necessary in the
    48  public interest.
    49    5. After an application for a casino key employee license  is  submit-
    50  ted,  final  action  of the commission shall be taken within ninety days
    51  after completion of all hearings and investigations and the  receipt  of

    52  all information required by the commission.
    53    6.  Licenses  and  registrations  of  casino  key employees and gaming
    54  employees issued pursuant to this article shall remain  valid  for  five
    55  years unless suspended, revoked or voided pursuant to law. Such licenses
    56  and registrations may be renewed by the holder thereof upon application,
        S. 5883                            26                            A. 8101
 
     1  on  a  form  prescribed by the commission, and payment of the applicable
     2  fee.  Notwithstanding the forgoing, if a gaming employee registrant  has
     3  not  been employed in any position within a gaming facility for a period
     4  of three years, the registration of that gaming employee shall lapse.

     5    8. The commission shall establish by regulation appropriate fees to be
     6  paid  upon  the  filing of the required applications. Such fees shall be
     7  deposited into the commercial gaming revenue fund.
     8                                   TITLE 4
     9              ENTERPRISE AND VENDOR LICENSING AND REGISTRATION
    10  Section 1326. Licensing of vendor enterprises.
    11          1327. Duration and renewal of vendor registration.
    12          1328. Junket operator licensing.
    13          1329. Lobbyist registration.
    14          1330. Registration of labor organizations.
    15          1330-a. Casino gaming expenditures.
    16    § 1326. Licensing of vendor  enterprises.    1.  Any  business  to  be

    17  conducted  with  a  gaming  facility  applicant  or licensee by a vendor
    18  offering goods or services which directly  relate  to  gaming  activity,
    19  including  gaming  equipment  manufacturers,  suppliers,  repairers, and
    20  independent testing laboratories, shall be licensed as a  casino  vendor
    21  enterprise  in  accordance  with the provisions of this article prior to
    22  conducting any business whatsoever with a gaming facility  applicant  or
    23  licensee,  its employees or agents; provided, however, that upon a show-
    24  ing of good cause by a gaming facility applicant or licensee, the execu-
    25  tive director may permit an applicant for  a  casino  vendor  enterprise
    26  license  to  conduct  business  transactions  with  such gaming facility

    27  applicant or licensee prior to  the  licensure  of  that  casino  vendor
    28  enterprise  applicant  under  this  subdivision  for such periods as the
    29  commission may establish by regulation.
    30    2. In addition to the requirements of subdivision one of this section,
    31  any casino vendor enterprise intending to manufacture, sell, distribute,
    32  test or repair slot machines within  the  state  shall  be  licensed  in
    33  accordance  with the provisions of this article prior to engaging in any
    34  such activities; provided, however, that upon a showing of good cause by
    35  a gaming facility applicant or  licensee,  the  executive  director  may
    36  permit  an  applicant  for a casino vendor enterprise license to conduct

    37  business transactions with the gaming  facility  applicant  or  licensee
    38  prior  to the licensure of that casino vendor enterprise applicant under
    39  this subdivision for such periods as the  commission  may  establish  by
    40  regulation;  and  provided further, however, that upon a showing of good
    41  cause by an applicant required to be licensed as a casino vendor  enter-
    42  prise  pursuant  to  this subdivision, the executive director may permit
    43  the casino vendor enterprise applicant to initiate  the  manufacture  of
    44  slot  machines or engage in the sale, distribution, testing or repair of
    45  slot machines with any person other than a gaming facility applicant  or
    46  licensee, its employees or agents, prior to the licensure of that casino

    47  vendor enterprise applicant under this subdivision.
    48    3.  Vendors  providing goods and services to gaming facility licensees
    49  or applicants ancillary to gaming shall be required to be licensed as an
    50  ancillary casino vendor enterprise and shall comply with  the  standards
    51  for casino vendor license applicants.
    52    4.  Each  casino vendor enterprise required to be licensed pursuant to
    53  subdivision one of this section, as well as its owners;  management  and
    54  supervisory personnel; and employees if such employees have responsibil-
    55  ity for services to a gaming facility applicant or licensee, must quali-
        S. 5883                            27                            A. 8101
 

     1  fy  under the standards, except residency, established for qualification
     2  of a casino key employee under this article.
     3    5.  Any  vendor  that  offers  goods  or services to a gaming facility
     4  applicant or licensee that is not included in subdivision one or two  of
     5  this  section including, but not limited to site contractors and subcon-
     6  tractors, shopkeepers located within the facility, gaming  schools  that
     7  possess slot machines for the purpose of instruction, and any non-super-
     8  visory  employee of a junket enterprise licensed under subdivision three
     9  of this section, shall be required to register with  the  commission  in
    10  accordance with the regulations promulgated under this article.

    11    Notwithstanding  the provisions aforementioned, the executive director
    12  may, consistent with the public interest and the policies of this  arti-
    13  cle, direct that individual vendors registered pursuant to this subdivi-
    14  sion  be required to apply for either a casino vendor enterprise license
    15  pursuant to subdivision one of this  section,  or  an  ancillary  vendor
    16  industry  enterprise  license  pursuant  to  subdivision  three  of this
    17  section, as directed by the commission. The executive director may  also
    18  order  that  any enterprise licensed as or required to be licensed as an
    19  ancillary casino vendor enterprise pursuant to subdivision three of this
    20  section be required to apply for  a  casino  vendor  enterprise  license

    21  pursuant to subdivision one of this section.  The executive director may
    22  also,  in  his  or  her  discretion,  order that an independent software
    23  contractor not otherwise required to be registered be either  registered
    24  as  a  vendor  pursuant  to  this subdivision or be licensed pursuant to
    25  either subdivision one or three of this section.
    26    Each ancillary casino vendor enterprise required to be licensed pursu-
    27  ant to subdivision three of this section, as well as its owners, manage-
    28  ment and supervisory personnel, and employees  if  such  employees  have
    29  responsibility  for services to a gaming facility applicant or licensee,
    30  shall establish their good character, honesty and integrity by clear and

    31  convincing evidence and shall provide such financial information as  may
    32  be  required  by the commission.  Any enterprise required to be licensed
    33  as an ancillary casino vendor enterprise pursuant to this section  shall
    34  be  permitted  to transact business with a gaming facility licensee upon
    35  filing of the appropriate vendor registration form and  application  for
    36  such licensure.
    37    6.  Any applicant, licensee or qualifier of a casino vendor enterprise
    38  license or of an ancillary casino vendor enterprise license under subdi-
    39  vision one of this section, and any vendor registrant under  subdivision
    40  five of this section shall be disqualified in accordance with the crite-
    41  ria  contained  in  section  one thousand three hundred eighteen of this

    42  article, except that no such ancillary casino vendor enterprise  license
    43  under  subdivision  three  of  this section or vendor registration under
    44  subdivision five of this section shall be  denied  or  revoked  if  such
    45  vendor  registrant can affirmatively demonstrate rehabilitation pursuant
    46  to article twenty-three-A of the correction law.
    47    7. No casino vendor enterprise  license  or  ancillary  casino  vendor
    48  enterprise  license  shall be issued pursuant to subdivision one of this
    49  section to any person unless that person shall provide  proof  of  valid
    50  business registration with the department of state.
    51    8.  For  the  purposes of this section, each applicant shall submit to
    52  the commission the name, address, fingerprints and a written consent for

    53  a criminal history information to be performed, for each person required
    54  to qualify as part of the application. The commission is hereby  author-
    55  ized  to  exchange  fingerprint  data  with and receive criminal history
    56  record information from the state division of criminal justice  services
        S. 5883                            28                            A. 8101
 
     1  and the federal bureau of investigation consistent with applicable state
     2  and federal laws, rules and regulations. The applicant shall pay the fee
     3  for such criminal history information as established pursuant to article
     4  thirty-five  of  the  executive  law.    The  state division of criminal
     5  justice services shall promptly notify the commission  in  the  event  a

     6  current  or  prospective  qualifier,  who  was the subject of a criminal
     7  history record check pursuant to this section, is arrested for  a  crime
     8  or offense in this state after the date the check was performed.
     9    9.  Subsequent  to the licensure of any entity pursuant to subdivision
    10  one of this section, including any finding of qualification  as  may  be
    11  required  as a condition of licensure, or the registration of any vendor
    12  pursuant to subdivision three of this section,  the  executive  director
    13  may revoke, suspend, limit, or otherwise restrict the license, registra-
    14  tion  or  qualification  status upon a finding that the licensee, regis-
    15  trant or qualifier is disqualified on the  basis  of  the  criteria  set

    16  forth in section one thousand three hundred eighteen of this article.
    17    10.  After  notice and hearing prior to the suspension of any license,
    18  registration or qualification issued pursuant to  subdivision  seven  of
    19  this  section  the  commission  shall  have  the  obligation to prove by
    20  substantial evidence that  the  licensee,  registrant  or  qualifier  is
    21  disqualified on the basis of the criteria set forth in section one thou-
    22  sand three hundred eighteen of this article.
    23    §  1327.  Duration  and  renewal of vendor registration.   1. A casino
    24  vendor registration shall be effective upon issuance, and  shall  remain
    25  valid  for five years unless revoked, suspended, voided by law, limited,

    26  or otherwise restricted by the commission.   Such registrations  may  be
    27  renewed  by the holder thereof upon application, on a form prescribed by
    28  the commission, and payment of the applicable fee.  Notwithstanding  the
    29  foregoing,  if  a  vendor  registrant  has not conducted business with a
    30  gaming facility for a period of three years, the  registration  of  that
    31  vendor registrant shall lapse.
    32    2.  The commission shall establish by regulation reasonable and appro-
    33  priate fees to be imposed on each vendor registrant who  provides  goods
    34  or  services  to  a  gaming  facility,  regardless  of the nature of any
    35  contractual relationship between the vendor registrant and gaming facil-
    36  ity, if any. Such fees shall be paid to the commission.

    37    § 1328. Junket operator licensing.  1. No junkets may be organized  or
    38  permitted  except  in accordance with the provisions of this article. No
    39  person may act as a junket representative or junket enterprise except in
    40  accordance with this section.
    41    2. A junket representative employed by a gaming facility licensee,  an
    42  applicant  for  a  gaming  facility  license or an affiliate of a gaming
    43  facility licensee shall be licensed as a casino key employee;  provided,
    44  however,  that  said  licensee  need not be a resident of this state. No
    45  gaming facility licensee or applicant for a gaming facility license  may
    46  employ  or  otherwise  engage  a  junket  representative  who  is not so
    47  licensed.

    48    3. Junket enterprises that, and junket representatives not employed by
    49  a gaming facility licensee or an applicant for a gaming facility license
    50  or by a junket enterprise who, engage in  activities  governed  by  this
    51  section  shall  be  licensed as an ancillary casino vendor enterprise in
    52  accordance with subdivision three of section one thousand three  hundred
    53  twenty-six  of  this title, unless otherwise directed by the commission;
    54  provided, however, that any such junket enterprise or  junket  represen-
    55  tative  who  has  disqualified shall be entitled to establish his or her
    56  rehabilitation from such disqualification pursuant  to  article  twenty-
        S. 5883                            29                            A. 8101
 

     1  three-A of the correction law.  Any non-supervisory employee of a junket
     2  enterprise  or  junket  representative  licensed  as an ancillary casino
     3  vendor enterprise in accordance with subdivision three  of  section  one
     4  thousand three hundred twenty-six of this title shall be registered.
     5    4.  Prior  to the issuance of any license required by this section, an
     6  applicant for licensure shall submit to the jurisdiction  of  the  state
     7  and  shall  demonstrate that he or she is amenable to service of process
     8  within this state. Failure to establish or maintain compliance with  the
     9  requirements  of  this subdivision shall constitute sufficient cause for
    10  the denial, suspension or revocation of any license issued  pursuant  to
    11  this section.

    12    5. Upon petition by the holder of a gaming facility license, an appli-
    13  cant  for  a  casino  key employee license intending to be employed as a
    14  junket representative may be issued a temporary license by  the  commis-
    15  sion in accordance with regulations promulgated, provided that:
    16    (a)  the  applicant  for  licensure  is  employed by a gaming facility
    17  licensee; and
    18    (b) the applicant for licensure has filed a completed  application  as
    19  required by the commission.
    20    6.  The  commission  shall  have the authority to immediately suspend,
    21  limit or  condition  any  temporary  license  issued  pursuant  to  this
    22  section, pending a hearing on the qualifications of the junket represen-
    23  tative.

    24    7.  Unless otherwise terminated, any temporary license issued pursuant
    25  to this section shall expire twelve months from the date  of  its  issu-
    26  ance,  and  shall  be renewable by the commission for one additional six
    27  month period.
    28    8. Every agreement concerning junkets entered into by a gaming facili-
    29  ty licensee and a junket representative or junket  enterprise  shall  be
    30  deemed  to  include a provision for its termination without liability on
    31  the part of the gaming facility licensee, if the commission  orders  the
    32  termination  upon  the  suspension,  limitation, conditioning, denial or
    33  revocation of the licensure  of  the  junket  representative  or  junket
    34  enterprise.  Failure to expressly include such a condition in the agree-

    35  ment shall not constitute a defense in any action brought  to  terminate
    36  the agreement.
    37    9.  A gaming facility licensee shall be responsible for the conduct of
    38  any junket representative or junket enterprise associated  with  it  and
    39  for  the  terms and conditions of any junket engaged in on its premises,
    40  regardless of the fact that the junket may involve persons not  employed
    41  by such a gaming facility licensee.
    42    10.  A gaming facility licensee shall be responsible for any violation
    43  or deviation from the terms  of  a  junket.  Notwithstanding  any  other
    44  provisions  of  this  article,  the  commission may order restitution to
    45  junket participants, assess penalties for such violations or deviations,

    46  prohibit future junkets by the gaming facility licensee,  junket  enter-
    47  prise  or  junket  representative,  and  order such further relief as it
    48  deems appropriate.
    49    11. The commission shall, by regulation, prescribe methods, procedures
    50  and forms for the delivery and retention of information  concerning  the
    51  conduct  of  junkets by gaming facility licensees. Without limitation of
    52  the foregoing, each gaming facility licensee,  in  accordance  with  the
    53  rules of the commission, shall:
    54    (a)  Maintain  on file a report describing the operation of any junket
    55  engaged in on its premises; and
        S. 5883                            30                            A. 8101
 

     1    (b) Submit to the commission a list  of  all  its  employees  who  are
     2  acting as junket representatives.
     3    12.  Each  gaming  facility  licensee, junket representative or junket
     4  enterprise shall, in accordance with the rules of the commission, file a
     5  report with the commission with respect to each list of  junket  patrons
     6  or  potential  junket  patrons  purchased  directly or indirectly by the
     7  gaming facility licensee, junket representative or enterprise.
     8    13. The commission shall have the authority to  determine,  either  by
     9  regulation, or upon petition by the holder of a gaming facility license,
    10  that  a  type of arrangement otherwise included within the definition of
    11  "junket" shall not require compliance with any or all  of  the  require-

    12  ments  of  this  section.  In  granting exemptions, the commission shall
    13  consider such factors as the nature,  volume  and  significance  of  the
    14  particular  type  of  arrangement,  and  whether  the exemption would be
    15  consistent with the public policies  established  by  this  article.  In
    16  applying  the  provisions of this subdivision, the commission may condi-
    17  tion, limit, or restrict any exemption as it may deem appropriate.
    18    14. No junket enterprise or junket representative or person acting  as
    19  a junket representative may:
    20    (a)  Engage  in efforts to collect upon checks that have been returned
    21  by banks without full and final payment;
    22    (b) Exercise approval authority with regard to  the  authorization  or

    23  issuance of credit;
    24    (c)  Act  on behalf of or under any arrangement with a gaming facility
    25  licensee or a gaming patron  with  regard  to  the  redemption,  consol-
    26  idation, or substitution of the gaming patron's checks awaiting deposit;
    27    (d) Individually receive or retain any fee from a patron for the priv-
    28  ilege of participating in a junket; and
    29    (e)  Pay for any services, including transportation, or other items of
    30  value provided to, or for the benefit of, any patron participating in  a
    31  junket.
    32    §  1329.  Lobbyist registration.  1. For purposes of this section, the
    33  terms "lobbyist", "lobbying", "lobbying activities" and  "client"  shall
    34  have the same meaning as those terms are defined by section one-c of the

    35  legislative law.
    36    2.  In  addition  to  any other registration and reporting required by
    37  law, each lobbyist seeking to engage in lobbying activity on behalf of a
    38  client or a client's interest before the commission shall first register
    39  with the secretary of the commission. The secretary shall cause a regis-
    40  tration to be available on the commission's website within five days  of
    41  submission.
    42    §  1330. Registration of labor organizations.  1. Each labor organiza-
    43  tion, union or affiliate seeking to represent employees who are employed
    44  in a gaming facility by a gaming facility licensee shall  register  with
    45  the  commission  biennially,  and shall disclose such information as the

    46  commission may require, including the names of all affiliated  organiza-
    47  tions,  pension  and welfare systems and all officers and agents of such
    48  organizations and systems; provided, however, that  no  labor  organiza-
    49  tion,  union, or affiliate shall be required to furnish such information
    50  to the extent such information is included in  a  report  filed  by  any
    51  labor  organization,  union,  or  affiliate  with the Secretary of Labor
    52  pursuant to 29 U.S.C. § 431 et seq. or § 1001 et seq. if a copy of  such
    53  report,  or  of  the  portion  thereof  containing  such information, is
    54  furnished  to  the  commission  pursuant  to   the   aforesaid   federal
    55  provisions. The commission may in its discretion exempt any labor organ-

    56  ization,  union, or affiliate from the registration requirements of this
        S. 5883                            31                            A. 8101
 
     1  subdivision where the commission finds that such organization, union  or
     2  affiliate is not the certified bargaining representative of any employee
     3  who  is  employed in a gaming facility by a gaming facility licensee, is
     4  not  involved  actively,  directly  or  substantially  in the control or
     5  direction of the representation of any such employee, and is not seeking
     6  to do so.
     7    2. No person may act as an officer, agent or principal employee  of  a
     8  labor  organization,  union  or  affiliate  registered or required to be

     9  registered pursuant to  this  section  if  the  person  has  been  found
    10  disqualified by the commission in accordance with the criteria contained
    11  in  section  one  thousand  three hundred eighteen of this article.  The
    12  commission may, for purposes of this subdivision,  waive  any  disquali-
    13  fication criterion consistent with the public policy of this article and
    14  upon a finding that the interests of justice so require.
    15    3.  Neither  a labor organization, union or affiliate nor its officers
    16  and agents not otherwise individually licensed or registered under  this
    17  article  and  employed by a gaming facility licensee may hold any finan-
    18  cial interest whatsoever in  the  gaming  facility  or  gaming  facility
    19  licensee whose employees they represent.

    20    4. The commission may maintain a civil action and proceed in a summary
    21  manner,  without  posting  bond, against any person, including any labor
    22  organization,  union  or  affiliate,  to  compel  compliance  with  this
    23  section,  or to prevent any violations, the aiding and abetting thereof,
    24  or any attempt or conspiracy to violate this section.
    25    5. In addition to any other remedies provided in this section, a labor
    26  organization, union or affiliate registered or required to be registered
    27  pursuant to this section  may  be  prohibited  by  the  commission  from
    28  receiving  any  dues from any employee licensed or registered under this
    29  article and employed by a gaming facility licensee or its agent, if  any

    30  officer, agent or principal employee of the labor organization, union or
    31  affiliate  has  been found disqualified and if such disqualification has
    32  not been waived by the commission in accordance with subdivision two  of
    33  this section.
    34    § 1330-a. Casino gaming expenditures. 1.  (a) In addition to any other
    35  registration  or  reporting  required  by law, any entity licensed under
    36  section sixteen hundred seventeen-a of the tax law, or which possesses a
    37  pari-mutuel wagering license or franchise awarded  pursuant  to  article
    38  two  or three of this chapter that makes an expenditure of more than one
    39  thousand dollars for any written, typed, or other printed communication,
    40  or any internet-based communication, or any television or radio communi-

    41  cation, or any automated or paid telephone communications, in support or
    42  opposition to any referendum authorized by the state legislature follow-
    43  ing second passage of a concurrent resolution to amend the state consti-
    44  tution to permit or authorize casino gaming to a  general  public  audi-
    45  ence,  shall  file  any  reports  required  pursuant to the election law
    46  simultaneously with the gaming commission and shall provide  such  addi-
    47  tional  reports  as  required by the gaming commission. This requirement
    48  shall apply irrespective of whether such entity makes  such  expenditure
    49  directly  or  indirectly  via one or more persons. The gaming commission
    50  shall promulgate regulations  to  implement  the  requirements  of  this
    51  section.

    52    (b)   Casino  gaming  expenditures  do  not  include  expenditures  in
    53  connection with:
    54    (i) a written news story, commentary, or editorial or  a  news  story,
    55  commentary,  or  editorial  distributed  through  the  facilities of any
    56  broadcasting station, cable or  satellite  unless  such  publication  or
        S. 5883                            32                            A. 8101
 
     1  facilities  are owned or controlled directly or indirectly by the person
     2  making such expenditure; or
     3    (ii)  a  communication  published on the Internet, unless the communi-
     4  cation is a paid advertisement.
     5    (c) For purposes of this section, the term "person" shall mean person,

     6  group of persons, corporation,  unincorporated  business  entity,  labor
     7  organization or business, trade or professional association or organiza-
     8  tion, or political committee.
     9    (d)  A  knowing or willful violation of the provisions of this section
    10  shall subject the person to a civil penalty equal to up to  one  hundred
    11  thousand dollars or the cost of the communication, whichever is greater,
    12  imposed by the gaming commission for each violation.
    13    2. A copy of all communications paid for by the casino gaming expendi-
    14  ture,  including but not limited to broadcast, cable or satellite sched-
    15  ules  and  scripts,  advertisements,   pamphlets,   circulars,   flyers,
    16  brochures, letterheads and other printed matter and statements or infor-

    17  mation  conveyed  to  one  thousand  or more members of a general public
    18  audience shall be filed with the gaming commission with  the  statements
    19  required this article.
    20                                   TITLE 5
    21              REQUIREMENTS FOR CONDUCT AND OPERATION OF GAMING
    22  Section 1331. Operation certificate.
    23          1332. Age for gaming participation.
    24          1333. Hours of operation.
    25          1334. Internal controls.
    26          1335. Games and gaming equipment.
    27          1336. Certain wagering prohibited.
    28          1337. Gratuities.
    29          1338. Limitation on certain financial access.
    30          1339. Credit.
    31          1340. Alcoholic beverages.

    32          1341. Licensee leases and contracts.
    33          1342. Required exclusion of certain persons.
    34          1343. Exclusion, ejection of certain persons.
    35          1344. List of persons self-excluded from gaming activities.
    36          1345. Excluded person; forfeiture of winnings; other sanctions.
    37          1346. Labor peace agreements for certain facilities
    38    §  1331.  Operation certificate.  1. Notwithstanding the issuance of a
    39  license therefor, no gaming facility may be opened or remain open to the
    40  public, and no  gaming  activity,  except  for  test  purposes,  may  be
    41  conducted  therein,  unless  and until a valid operation certificate has
    42  been issued to the gaming facility  licensee  by  the  commission.  Such

    43  certificate  shall  be  issued by the executive director upon a determi-
    44  nation that a gaming facility complies in all respects with the require-
    45  ments of this article and regulations promulgated  hereunder,  and  that
    46  the gaming facility is prepared in all respects to receive and entertain
    47  the public.
    48    2.  An  operation  certificate shall remain in force and effect unless
    49  revoked, suspended, limited, or otherwise altered by the  commission  in
    50  accordance with this article.
    51    3.  It shall be an express condition of continued operation under this
    52  article that a gaming facility licensee shall maintain either  electron-
    53  ically  or  in hard copy at the discretion of the gaming facility licen-

    54  see, copies of all books,  records,  and  documents  pertaining  to  the
    55  licensee's  operations  and  approved  hotel  in  a  manner and location
    56  approved by the commission, provided, however,  that  the  originals  of
        S. 5883                            33                            A. 8101
 
     1  such  books,  records  and documents, whether in electronic or hard copy
     2  form, may be maintained at the offices or electronic system of an affil-
     3  iate of the gaming facility licensee, at the discretion  of  the  gaming
     4  facility licensee.  All such books, records and documents shall be imme-
     5  diately  available  for  inspection  during  all  hours  of operation in
     6  accordance with the rules of the commission and shall be maintained  for

     7  such period of time as the commission shall require.
     8    §  1332.  Age for gaming participation.  1. No person under the age at
     9  which a person is authorized to purchase and consume alcoholic beverages
    10  shall enter, or wager in, a licensed gaming facility; provided, however,
    11  that such a person may enter a gaming facility  by  way  of  passage  to
    12  another room, and provided further, however, that any such person who is
    13  licensed  or registered under the provisions of this article may enter a
    14  gaming facility in the regular course of the person's  permitted  activ-
    15  ities.
    16    2. Any person disqualified pursuant to subdivision one of this section
    17  entitled  to  funds, cash or prizes from gambling activity shall forfeit

    18  same.  Such forfeited funds, cash or prizes shall  be  remitted  to  the
    19  commission and deposited into the commercial gaming revenue fund.
    20    § 1333. Hours of operation.  1. Each gaming facility licensed pursuant
    21  to  this  article  shall be permitted to operate twenty-four hours a day
    22  unless otherwise directed by the commission.
    23    2. A gaming facility licensee shall file with the commission a  sched-
    24  ule  of hours prior to the issuance of an initial operation certificate.
    25  If the gaming facility licensee proposes any change in scheduled  hours,
    26  such  change  may  not be effected until such licensee files a notice of
    27  the new schedule of hours with the commission. Such filing must be  made

    28  thirty days prior to the effective date of the proposed change in hours.
    29    3. Nothing in this section shall be construed to limit a gaming facil-
    30  ity  licensee  in  opening  its casino later than, or closing its casino
    31  earlier than, the times stated  in  its  schedule  of  operating  hours;
    32  provided,  however,  that any such alterations in its hours shall comply
    33  with the provisions of subdivision one of this section  and  with  regu-
    34  lations of the commission pertaining to such alterations.
    35    §  1334.  Internal controls.   1. Each applicant for a gaming facility
    36  license  shall  create,  maintain,  and  file  with  the  commission   a
    37  description of its internal procedures and administrative and accounting

    38  controls  for  gaming  operations that conform to commission regulations
    39  and provide adequate and  effective  controls,  establish  a  consistent
    40  overall  system of internal procedures and administrative and accounting
    41  controls and conform to generally accepted  accounting  principles,  and
    42  ensure that gaming facility procedures are carried out and supervised by
    43  personnel  who  do  not  have  incompatible functions. A gaming facility
    44  licensee's internal controls shall contain a  narrative  description  of
    45  the  internal  control  system  to  be  utilized by the gaming facility,
    46  including, but not limited to:
    47    (a) Accounting controls, including the standardization  of  forms  and
    48  definition of terms to be utilized in the gaming operations;

    49    (b)  Procedures,  forms, and, where appropriate, formulas covering the
    50  calculation of hold percentages;  revenue  drop;  expense  and  overhead
    51  schedules;  complimentary  service or item; junkets; and cash equivalent
    52  transactions;
    53    (c) Procedures within the cashier's cage for the receipt, storage  and
    54  disbursal of chips, cash, and other cash equivalents used in gaming; the
    55  cashing  of  checks;  the redemption of chips and other cash equivalents
        S. 5883                            34                            A. 8101
 
     1  used in gaming; the pay-off of jackpots; and  the  recording  of  trans-
     2  actions pertaining to gaming operations;
     3    (d) Procedures for the collection and security of moneys at the gaming

     4  tables;
     5    (e)  Procedures  for the transfer and recordation of chips between the
     6  gaming tables and the cashier's cage;
     7    (f) Procedures for the transfer of moneys from the  gaming  tables  to
     8  the counting process;
     9    (g) Procedures and security for the counting and recordation of reven-
    10  ue;
    11    (h)  Procedures  for  the  security,  storage and recordation of cash,
    12  chips and other cash equivalents utilized in the gaming;
    13    (i) Procedures for the transfer of moneys or chips  from  and  to  the
    14  slot machines;
    15    (j)  Procedures  and  standards  for  the opening and security of slot
    16  machines;
    17    (k) Procedures for the payment and recordation of slot  machine  jack-

    18  pots;
    19    (l)  Procedures for the cashing and recordation of checks exchanged by
    20  casino patrons;
    21    (m) Procedures governing the utilization of the private security force
    22  within the gaming facility;
    23    (n) Procedures and security standards for the handling and storage  of
    24  gaming  apparatus  including cards, dice, machines, wheels and all other
    25  gaming equipment;
    26    (o) Procedures and rules governing the conduct of particular games and
    27  the responsibility of gaming facility personnel in respect thereto;
    28    (p) Procedures for the orderly shutdown of gaming facility  operations
    29  in the event that a state of emergency is declared and the gaming facil-

    30  ity  licensee  is  unable  or  ineligible  to continue to conduct gaming
    31  facility operations during such a state of emergency,  which  procedures
    32  shall  include,  without limitation, the securing of all keys and gaming
    33  assets.
    34    2. No minimum staffing requirements shall be included in the  internal
    35  controls created in accordance with subdivision one of this section.
    36    §  1335.  Games  and  gaming equipment.   1. This article shall not be
    37  construed to permit any gaming except the conduct of authorized games in
    38  a casino in accordance with this article and the regulations promulgated
    39  hereunder.
    40    2. Gaming equipment shall not be possessed, maintained or exhibited by

    41  any person on the premises of a gaming facility except in a casino or in
    42  restricted casino areas used for the inspection, repair  or  storage  of
    43  such  equipment  and  specifically  designated  for  that purpose by the
    44  gaming facility licensee with the approval  of  the  commission.  Gaming
    45  equipment  that  supports the conduct of gaming in a gaming facility but
    46  does not permit or require patron access,  such  as  computers,  may  be
    47  possessed  and  maintained  by a gaming facility licensee or a qualified
    48  holding or  intermediary  company  of  a  gaming  facility  licensee  in
    49  restricted  areas  specifically  approved  by  the commission. No gaming
    50  equipment shall be possessed, maintained,  exhibited,  brought  into  or

    51  removed  from  a  gaming facility by any person unless such equipment is
    52  necessary to the conduct of an authorized game, has permanently affixed,
    53  imprinted, impressed or engraved thereon  an  identification  number  or
    54  symbol authorized by the commission, is under the exclusive control of a
    55  gaming  facility licensee or gaming facility licensee's employees, or of
    56  any individually qualified employee  of  a  holding  company  or  gaming
        S. 5883                            35                            A. 8101
 
     1  facility licensee and is brought into or removed from the gaming facili-
     2  ty  following twenty-four hour prior notice given to an authorized agent
     3  of the commission.

     4    Notwithstanding  any  other provision of this section, computer equip-
     5  ment used by the slot system operator of a multi-casino progressive slot
     6  system to link and communicate with the slot machines  of  two  or  more
     7  gaming  facility licensees for the purpose of calculating and displaying
     8  the amount of a progressive jackpot, monitoring  the  operation  of  the
     9  system,  and  any  other purpose that the commission deems necessary and
    10  appropriate to the operation or maintenance of the multi-casino progres-
    11  sive slot machine system may, with the prior approval of the commission,
    12  be possessed, maintained and operated by the slot system operator either
    13  in a restricted area on the premises of a gaming facility or in a secure

    14  facility inaccessible to the public and specifically designed  for  that
    15  purpose  off  the premises of a gaming facility with the written permis-
    16  sion of the commission.  Notwithstanding the foregoing,  a  person  may,
    17  with  the  prior  approval  of  the  commission and under such terms and
    18  conditions as may be required by the commission,  possess,  maintain  or
    19  exhibit  gaming  equipment  in  any  other  area of the gaming facility,
    20  provided that such equipment is used for nongaming purposes.    Notwith-
    21  standing  any  other  provision  of  this  article  to the contrary, the
    22  commission may, by regulation, authorize the linking of slot machines of
    23  one or more gaming facility licensees and slot machines located in casi-

    24  nos licensed by another state of the United States. Wagering and account
    25  information for a multi-state slot system shall be  transmitted  by  the
    26  operator  of such multi-state slot system to either a restricted area on
    27  the premises of a gaming facility or to a secure  facility  inaccessible
    28  to  the public and specifically designed for that purpose with the writ-
    29  ten permission of the commission, and from there  to  slot  machines  of
    30  gaming  facility  licensees,  provided all locations are approved by the
    31  commission.
    32    3. Each gaming facility shall contain a  count  room  and  such  other
    33  secure  facilities as may be required by the commission for the counting
    34  and storage of cash, coins, tokens, checks,  plaques,  gaming  vouchers,

    35  coupons,  and  other  devices  or  items  of  value used in wagering and
    36  approved by the commission that are received in the  conduct  of  gaming
    37  and  for  the inspection, counting and storage of dice, cards, chips and
    38  other representatives of value. The commission  shall  promulgate  regu-
    39  lations  for  the  security of drop boxes and other devices in which the
    40  foregoing items are deposited at the gaming tables or in slot  machines,
    41  and  all  areas  wherein  such  boxes and devices are kept while in use,
    42  which regulations may include certain locking devices. Said  drop  boxes
    43  and  other  devices  shall  not be brought into or removed from a gaming
    44  facility, or locked or unlocked, except at such times, in  such  places,

    45  and according to such procedures as the commission may require.
    46    4. All chips used in gaming shall be of such size and uniform color by
    47  denomination as the commission shall require by regulation.
    48    5. All gaming shall be conducted according to rules promulgated by the
    49  commission.  All  wagers  and  pay-offs  of winning wagers shall be made
    50  according to rules promulgated by the commission, which shall  establish
    51  such  limitations  as  may be necessary to assure the vitality of casino
    52  operations and fair odds to patrons. Each  slot  machine  shall  have  a
    53  minimum payout of eighty-five percent.
    54    6.  Each gaming facility licensee shall make available in printed form
    55  to any patron upon request the complete text of the rules of the commis-

    56  sion regarding games and the conduct  of  gaming,  pay-offs  of  winning
        S. 5883                            36                            A. 8101
 
     1  wagers, an approximation of the odds of winning for each wager, and such
     2  other  advice to the player as the commission shall require. Each gaming
     3  facility licensee shall prominently post within a casino,  according  to
     4  regulations  of the commission such information about gaming rules, pay-
     5  offs of winning wagers, the odds of winning for  each  wager,  and  such
     6  other advice to the player as the commission shall require.
     7    7.  Each  gaming  table  shall  be equipped with a sign indicating the
     8  permissible minimum and maximum wagers pertaining thereto.  It shall  be

     9  unlawful  for  a  gaming  facility  licensee  to require any wager to be
    10  greater than the  stated  minimum  or  less  than  the  stated  maximum;
    11  provided,  however,  that  any  wager  actually made by a patron and not
    12  rejected by a gaming facility licensee prior to the commencement of play
    13  shall be treated as a valid wager.
    14    8. Testing of slot machines and associated devices.    (a)  Except  as
    15  herein  provided, no slot machine shall be used to conduct gaming unless
    16  it is identical in all electrical, mechanical and  other  aspects  to  a
    17  model thereof which has been specifically tested and licensed for use by
    18  the commission. The commission shall also test or cause to be tested any

    19  other  gaming  device, gaming equipment, gaming-related device or gross-
    20  revenue related device, such as a  slot  management  system,  electronic
    21  transfer credit system or gaming voucher system as it deems appropriate.
    22  In  its  discretion and for the purpose of expediting the approval proc-
    23  ess, the commission may utilize the services of a private testing  labo-
    24  ratory that has obtained a plenary license as a casino vendor enterprise
    25  to  perform  the  testing, and may also utilize applicable data from any
    26  such private testing laboratory or from a governmental agency of a state
    27  authorized to regulate slot machines and other  gaming  devices,  gaming
    28  equipment, gaming-related devices and gross-revenue related devices used

    29  in gaming, if the private testing laboratory or governmental agency uses
    30  a  testing methodology substantially similar to the methodology approved
    31  or utilized by the commission. The commission, in  its  discretion,  may
    32  rely upon the data provided by the private testing laboratory or govern-
    33  mental  agency and adopt the conclusions of such private testing labora-
    34  tory or governmental agency regarding any submitted device.
    35    (b) Except as otherwise provided in paragraph (e) of this subdivision,
    36  the commission shall, within sixty days of its  receipt  of  a  complete
    37  application  for the testing of a slot machine or other gaming equipment
    38  model, approve or reject the slot  machine  or  other  gaming  equipment

    39  model.  In  so  doing,  the commission shall specify whether and to what
    40  extent any data from a private testing laboratory or governmental agency
    41  of a state was used in reaching its conclusions and  recommendation.  If
    42  the  commission  is  unable to complete the testing of a slot machine or
    43  other gaming equipment model within this sixty day period,  the  commis-
    44  sion  may  conditionally approve the slot machine or other gaming equip-
    45  ment model for test use by a gaming facility licensee provided that  the
    46  commission  represents  that the use of the slot machine or other gaming
    47  equipment model will not have a direct and materially adverse impact  on
    48  the  integrity of gaming or the control of gross revenue. The commission

    49  shall give priority to the testing of  slot  machines  or  other  gaming
    50  equipment  that  a gaming facility licensee has certified it will use in
    51  its gaming facility in this state.
    52    (c) The commission shall,  by  regulation,  establish  such  technical
    53  standards for licensure of slot machines, including mechanical and elec-
    54  trical reliability, security against tampering, the comprehensibility of
    55  wagering,  and  noise  and  light  levels,  as  it may deem necessary to
    56  protect the player from fraud or deception and to insure  the  integrity
        S. 5883                            37                            A. 8101
 
     1  of gaming. The denominations of such machines shall be set by the licen-

     2  see;  the  licensee  shall  simultaneously  notify the commission of the
     3  settings.
     4    (d)  The  commission  shall,  by regulation, determine the permissible
     5  number and density of slot machines in a licensed gaming facility so  as
     6  to:
     7    (1) promote optimum security for gaming facility operations;
     8    (2)  avoid  deception  or  frequent  distraction  to players at gaming
     9  tables;
    10    (3) promote the comfort of patrons;
    11    (4) create and maintain a gracious playing environment in  the  gaming
    12  facility; and
    13    (5)  encourage  and preserve competition in gaming facility operations
    14  by assuring that a variety of gaming opportunities  is  offered  to  the
    15  public.

    16    Any such regulation promulgated by the commission which determines the
    17  permissible  number  and  density  of slot machines in a licensed gaming
    18  facility shall provide that all casinos shall be included in any  calcu-
    19  lation  of  the  permissible  number  and  density of slot machines in a
    20  licensed gaming facility.
    21    (e) Any new gaming equipment that is  submitted  for  testing  to  the
    22  commission  or  to a state licensed independent testing laboratory prior
    23  to or simultaneously with submission of such new equipment  for  testing
    24  in  a  jurisdiction  other  than  this state, may, consistent with regu-
    25  lations promulgated by the commission, be deployed by a gaming  facility
    26  licensee  on the casino fourteen days after submission of such equipment

    27  for testing. If the gaming facility or casino vendor enterprise licensee
    28  has  not  received  approval  for  the  equipment  fourteen  days  after
    29  submission  for  testing,  any  interested gaming facility licensee may,
    30  consistent with commission regulations, deploy the equipment on a  field
    31  test basis, unless otherwise directed by the executive director.
    32    9. It shall be unlawful for any person to exchange or redeem chips for
    33  anything  whatsoever,  except  for currency, negotiable personal checks,
    34  negotiable counter  checks,  other  chips,  coupons,  slot  vouchers  or
    35  complimentary  vouchers distributed by the gaming facility licensee, or,
    36  if authorized by regulation of the commission, a valid charge to a cred-

    37  it or debit card account. A gaming facility  licensee  shall,  upon  the
    38  request  of  any person, redeem that licensee's gaming chips surrendered
    39  by that person in any amount over one hundred dollars with a check drawn
    40  upon the licensee's account at any banking institution in this state and
    41  made payable to that person.
    42    10. It shall be unlawful for  any  gaming  facility  licensee  or  its
    43  agents or employees to employ, contract with, or use any shill or barker
    44  to  induce  any person to enter a gaming facility or play at any game or
    45  for any purpose whatsoever.
    46    11. It shall be unlawful for a dealer in any authorized game in  which
    47  cards  are  dealt  to  deal  cards  by  hand or other than from a device

    48  specifically designed for that purpose, unless  otherwise  permitted  by
    49  the rules of the commission.
    50    §  1336. Certain wagering prohibited.  1. It shall be unlawful for any
    51  casino key employee licensee to wager in any  gaming  facility  in  this
    52  state.
    53    2.  It  shall  be unlawful for any other employee of a gaming facility
    54  licensee who, in the judgment of the commission,  is  directly  involved
    55  with  the  conduct  of  gaming  operations, including but not limited to
    56  dealers, floor persons, box persons, security and  surveillance  employ-
        S. 5883                            38                            A. 8101
 
     1  ees,  to engage in gambling in any gaming facility in which the employee

     2  is employed or in any other gaming facility in this state which is owned
     3  or operated by the gaming facility licensee or an affiliated licensee.
     4    3.  The prohibition against wagering set forth in subdivisions one and
     5  two of this section shall continue for a period of thirty days  commenc-
     6  ing  upon  the  date  that  the employee either leaves employment with a
     7  gaming facility licensee or is terminated from employment with a  gaming
     8  facility licensee.
     9    §  1337.  Gratuities.    1.  It  shall  be unlawful for any casino key
    10  employee or boxman, floorman, or any other  gaming  employee  who  shall
    11  serve  in a supervisory position to solicit or accept, and for any other
    12  gaming employee to solicit, any tip  or  gratuity  from  any  player  or

    13  patron at the gaming facility where he is employed.
    14    2.  A  dealer may accept tips or gratuities from a patron at the table
    15  at which such dealer is conducting play, subject to  the  provisions  of
    16  this section.  All such tips or gratuities shall be immediately deposit-
    17  ed in a lockbox reserved for that purpose, unless the tip or gratuity is
    18  authorized  by  a patron utilizing an automated wagering system approved
    19  by the commission. All tips or gratuities shall be  accounted  for,  and
    20  placed  in  a pool for distribution pro rata among the dealers, with the
    21  distribution based upon the number of  hours  each  dealer  has  worked,
    22  except that the commission may, by regulation, permit a separate pool to

    23  be  established  for dealers in the game of poker, or may permit tips or
    24  gratuities to be retained by individual dealers in the game of poker.
    25    3. Notwithstanding the provisions of subdivision one of this  section,
    26  a  gaming  facility  licensee may require that a percentage of the prize
    27  pool offered to participants pursuant to an authorized poker  tournament
    28  be withheld for distribution to the tournament dealers as tips or gratu-
    29  ities as the commission by regulation may approve.
    30    §  1338.  Limitation on certain financial access.  In order to protect
    31  the public interest, the commission shall adopt regulations that include
    32  provisions that:
    33    1. limit the number and location of  and  maximum  withdrawal  amounts

    34  from automated teller machines;
    35    2.  prohibit authorized automated teller machines from accepting elec-
    36  tronic benefit cards, debit cards,  or  similar  negotiable  instruments
    37  issued by the state or political subdivisions for the purpose of access-
    38  ing temporary public assistance;
    39    3.  prohibit  the  use  of  specified negotiable instruments at gaming
    40  facilities and the use of credit cards, debit cards, and similar devices
    41  in slot machines or at table games; and
    42    4. prohibit consumers from cashing paychecks at gaming facilities.
    43    § 1339. Credit.  1. Except as otherwise provided in this  section,  no
    44  gaming  facility licensee or any person licensed under this article, and

    45  no person acting on behalf of or under any  arrangement  with  a  gaming
    46  facility licensee or other person licensed under this article, shall:
    47    (a)  Cash  any  check, make any loan, or otherwise provide or allow to
    48  any person any credit or advance of anything of value or  which  repres-
    49  ents  value  to  enable  any person to take part in gaming activity as a
    50  player; or
    51    (b) Release or discharge any debt, either in whole or in part, or make
    52  any loan which represents any losses incurred by any  player  in  gaming
    53  activity,  without  maintaining  a  written record thereof in accordance
    54  with the rules of the commission.
    55    2. No gaming facility licensee or any person licensed under this arti-

    56  cle, and no person acting on behalf of or under any arrangement  with  a
        S. 5883                            39                            A. 8101
 
     1  gaming  facility  licensee  or other person licensed under this article,
     2  may accept a check, other than a recognized traveler's  check  or  other
     3  cash  equivalent  from  any person to enable such person to take part in
     4  gaming  activity  as  a  player, or may give cash or cash equivalents in
     5  exchange for such check unless:
     6    (a) The check is made payable to the gaming facility licensee;
     7    (b) The check is dated, but not postdated;
     8    (c) The check is presented to the cashier or the  cashier's  represen-
     9  tative  at  a location in the gaming facility approved by the commission

    10  and is exchanged for cash or slot tokens which total an amount equal  to
    11  the  amount  for  which the check is drawn, or the check is presented to
    12  the cashier's representative at a gaming table  in  exchange  for  chips
    13  which  total an amount equal to the amount for which the check is drawn;
    14  and
    15    (d) The regulations concerning check cashing procedures  are  observed
    16  by  the  gaming facility licensee and its employees and agents.  Nothing
    17  in this subdivision shall be deemed to preclude the establishment of  an
    18  account  by  any  person with a gaming facility licensee by a deposit of
    19  cash, recognized traveler's check or other cash equivalent, or  a  check
    20  which meets the requirements of subdivision seven of this section, or to

    21  preclude  the  withdrawal,  either  in  whole  or in part, of any amount
    22  contained in such account.
    23    3. When a gaming facility licensee or other person licensed under this
    24  article, or any person acting on behalf of or under any arrangement with
    25  a gaming facility licensee or other person licensed under this  article,
    26  cashes a check in conformity with the requirements of subdivision two of
    27  this  section,  the  gaming facility licensee shall cause the deposit of
    28  such check in a bank for collection or  payment,  or  shall  require  an
    29  attorney  or casino key employee with no incompatible functions to pres-
    30  ent such check to the drawer's bank for payment, within:
    31    (a) seven calendar days of the date of the transaction for a check  in

    32  an amount of one thousand dollars or less;
    33    (b)  fourteen calendar days of the date of the transaction for a check
    34  in an amount greater than one thousand dollars but less than or equal to
    35  five thousand dollars; or
    36    (c) forty-five calendar days of the date  of  the  transaction  for  a
    37  check in an amount greater than five thousand dollars.
    38    Notwithstanding  the foregoing, the drawer of the check may redeem the
    39  check by exchanging cash, cash equivalents,  chips,  or  a  check  which
    40  meets the requirements of subdivision seven of this section in an amount
    41  equal  to  the  amount  for  which  the check is drawn; or he or she may
    42  redeem the check in part by exchanging cash, cash equivalents, chips, or

    43  a check which meets  the  requirements  of  subdivision  seven  of  this
    44  section  and  another  check which meets the requirements of subdivision
    45  two of this section for the difference between the  original  check  and
    46  the  cash,  cash equivalents, chips, or check tendered; or he or she may
    47  issue one check which meets the requirements of subdivision two of  this
    48  section  in  an  amount sufficient to redeem two or more checks drawn to
    49  the order of the gaming facility licensee. If there has been  a  partial
    50  redemption  or a consolidation in conformity with the provisions of this
    51  subdivision, the newly issued check shall be delivered  to  a  bank  for
    52  collection  or  payment or presented to the drawer's bank for payment by

    53  an attorney or casino key employee with no incompatible functions within
    54  the period herein specified. No gaming facility licensee or  any  person
    55  licensed  or  registered  under  this  article,  and no person acting on
    56  behalf of or under any arrangement with a gaming  facility  licensee  or
        S. 5883                            40                            A. 8101
 
     1  other  person  licensed  under  this  article, shall accept any check or
     2  series of checks in redemption or  consolidation  of  another  check  or
     3  checks  in  accordance with this subdivision for the purpose of avoiding
     4  or  delaying  the deposit of a check in a bank for collection or payment
     5  or the presentment of the check to the drawer's  bank  within  the  time

     6  period prescribed by this subdivision.
     7    In  computing  a  time period prescribed by this subdivision, the last
     8  day of the period shall be included unless it is a Saturday, Sunday,  or
     9  a  state  or  federal  holiday, in which event the time period shall run
    10  until the next business day.
    11    4. No gaming facility licensee or any other person licensed or  regis-
    12  tered  under  this  article,  or any other person acting on behalf of or
    13  under any arrangement with a gaming facility licensee  or  other  person
    14  licensed  or  registered  under this article, shall transfer, convey, or
    15  give, with or without consideration, a check cashed in  conformity  with
    16  the requirements of this section to any person other than:

    17    (a)  The  drawer  of  the  check  upon  redemption or consolidation in
    18  accordance with subdivision three of this section;
    19    (b) A bank for collection or payment of the check;
    20    (c) A purchaser of the gaming facility  license  as  approved  by  the
    21  commission; or
    22    (d)  An attorney or casino key employee with no incompatible functions
    23  for presentment to the drawer's bank.
    24    The limitation on transferability of checks imposed herein shall apply
    25  to checks returned by any bank to the gaming facility  licensee  without
    26  full and final payment.
    27    5.  No  person  other  than  a casino key employee licensed under this
    28  article or a  gaming employee registered under this article  may  engage

    29  in efforts to collect upon checks that have been returned by banks with-
    30  out  full and final payment, except that an attorney-at-law representing
    31  a gaming facility licensee may bring action for such collection.
    32    6. Notwithstanding the provisions of any law to the  contrary,  checks
    33  cashed  in  conformity  with  the  requirements of this article shall be
    34  valid instruments, enforceable at law in the courts of this  state.  Any
    35  check  cashed, transferred, conveyed or given in violation of this arti-
    36  cle shall be invalid and unenforceable for the  purposes  of  collection
    37  but shall be included in the calculation of gross gaming revenue.
    38    7.  Notwithstanding  the provisions of subdivision two of this section

    39  to the contrary, a gaming facility licensee may accept a  check  from  a
    40  person to enable the person to take part in gaming activity as a player,
    41  may  give  cash or cash equivalents in exchange for such a check, or may
    42  accept a check in redemption or partial redemption of a check issued  in
    43  accordance with subdivision two of this section, provided that:
    44    (a)  (1)  The  check  is issued by a gaming facility licensee, is made
    45  payable to the person presenting the check, and is issued for a  purpose
    46  other  than  employment compensation or as payment for goods or services
    47  rendered;
    48    (2) The check is issued by a banking institution which is chartered in
    49  a country other than the United States on its  account  at  a  federally

    50  chartered  or state-chartered bank and is made payable to "cash," "bear-
    51  er," a gaming facility licensee, or the person presenting the check;
    52    (3) The check is issued by a banking institution which is chartered in
    53  the United States on its  account  at  another  federally  chartered  or
    54  state-chartered  bank  and is made payable to "cash," "bearer," a gaming
    55  facility licensee, or the person presenting the check;
        S. 5883                            41                            A. 8101
 
     1    (4) The check is issued by a slot system operator or  pursuant  to  an
     2  annuity  jackpot  guarantee  as payment for winnings from a multi-casino
     3  progressive slot machine system jackpot; or

     4    (5)  The  check  is  issued  by an entity that holds a gaming facility
     5  license in any jurisdiction, is made payable to  the  person  presenting
     6  the  check,  and  is  issued for a purpose other than employment compen-
     7  sation or as payment for goods or services rendered;
     8    (b) The check is identifiable in a manner approved by  the  commission
     9  as  a  check authorized for acceptance pursuant to paragraph (a) of this
    10  subdivision;
    11    (c) The check is dated, but not postdated;
    12    (d) The check is presented to the cashier or the  cashier's  represen-
    13  tative  by the original payee and its validity is verified by the drawer
    14  in the case of a check drawn pursuant to subparagraph one  of  paragraph

    15  (a)  of  this  subdivision,  or the check is verified in accordance with
    16  regulations promulgated under this article in the case of a check issued
    17  pursuant to subparagraph two, three, four or five of  paragraph  (a)  of
    18  this subdivision; and
    19    (e)  The  regulations concerning check-cashing procedures are observed
    20  by the gaming facility licensee and its employees and agents.  No gaming
    21  facility licensee shall issue a check for the purpose of making  a  loan
    22  or  otherwise providing or allowing any advance or credit to a person to
    23  enable the person to take part in gaming activity as a player.
    24    8. Notwithstanding the provisions of subdivisions  two  and  three  of
    25  this  section  to  the  contrary,  a  gaming facility licensee may, at a

    26  location outside the gaming facility, accept a personal check or  checks
    27  from  a  person  for up to five thousand dollars in exchange for cash or
    28  cash equivalents, and may, at such locations within the gaming  facility
    29  as may be permitted by the commission, accept a personal check or checks
    30  for  up to five thousand dollars in exchange for cash, cash equivalents,
    31  tokens, chips, or plaques to enable the person to take  part  in  gaming
    32  activity as a player, provided that:
    33    (a)  The check is drawn on the patron's bank or brokerage cash manage-
    34  ment account;
    35    (b) The check is for a specific amount;
    36    (c) The check is made payable to the gaming facility licensee;
    37    (d) The check is dated but not post-dated;

    38    (e) The patron's identity is established by examination of one of  the
    39  following:  valid credit card, driver's license, passport, or other form
    40  of identification credential which contains, at a minimum, the  patron's
    41  signature;
    42    (f)  The  check  is  restrictively  endorsed "For Deposit Only" to the
    43  gaming facility licensee's bank account and deposited on the next  bank-
    44  ing day following the date of the transaction;
    45    (g)  The  total amount of personal checks accepted by any one licensee
    46  pursuant to this subdivision that are outstanding at any time, including
    47  the current  check  being  submitted,  does  not  exceed  five  thousand
    48  dollars;
    49    (h)  The gaming facility licensee has a system of internal controls in

    50  place that will  enable  it  to  determine  the  amount  of  outstanding
    51  personal checks received from any patron pursuant to this subdivision at
    52  any given point in time; and
    53    (i) The gaming facility licensee maintains a record of each such tran-
    54  saction in accordance with regulations established by the commission.
    55    9.  A person may request the commission to put that person's name on a
    56  list of persons to whom the extension of credit by a gaming facility  as
        S. 5883                            42                            A. 8101
 
     1  provided  in  this  section  would  be  prohibited  by submitting to the
     2  commission the person's name, address, and date  of  birth.  The  person

     3  does not need to provide a reason for this request. The commission shall
     4  provide  this  list  to  the  credit department of each gaming facility;
     5  neither the commission nor the credit department of  a  gaming  facility
     6  shall  divulge the names on this list to any person or entity other than
     7  those provided for in this subdivision. If such a person wishes to  have
     8  that  person's  name removed from the list, the person shall submit this
     9  request to the commission, which shall so inform the credit  departments
    10  of  gaming  facilities  no later than three days after the submission of
    11  the request.
    12    § 1340. Alcoholic beverages.    1.  Notwithstanding  any  law  to  the
    13  contrary, the authority to grant any license or permit for, or to permit

    14  or  prohibit  the  presence of, alcoholic beverages in, on, or about any
    15  premises licensed as part of a  gaming  facility  shall  exclusively  be
    16  vested in the commission.
    17    2.  Unless  otherwise  stated,  and except where inconsistent with the
    18  purpose or intent of this article or the common understanding  of  usage
    19  thereof,  definitions  contained  in  the alcoholic beverage control law
    20  shall apply to this section.  Any  definition  contained  therein  shall
    21  apply to the same word in any form.
    22    3. Notwithstanding any provision of the alcoholic beverage control law
    23  to  the  contrary,  the  commission shall have the functions, powers and
    24  duties of the state liquor authority but only with respect to the  issu-

    25  ance,  renewal,  transfer,  suspension  and  revocation  of licenses and
    26  permits for the sale of alcoholic beverages  at  retail  for  on-premise
    27  consumption  by  any  holder  of a gaming facility license issued by the
    28  commission including, without limitation, the power to fine or  penalize
    29  a  casino alcoholic beverage licensee or permittee; to enforce all stat-
    30  utes, laws, rulings, or regulations relating to such license or  permit;
    31  and  to collect license and permit fees and establish application stand-
    32  ards therefor.
    33    4. Except as otherwise provided in this section, the provisions of the
    34  alcoholic beverage control law and the  rules,  regulations,  bulletins,
    35  orders,  and  advisories promulgated by the state liquor authority shall

    36  apply to any gaming facility holding a license or permit to  sell  alco-
    37  holic beverages under this section.
    38    5.  Notwithstanding  any provision to the contrary, the commission may
    39  promulgate any regulations and special rulings and findings  as  may  be
    40  necessary  for  the proper enforcement, regulation, and control of alco-
    41  holic beverages in gaming facilities when the commission finds that  the
    42  uniqueness of gaming facility operations and the public interest require
    43  that such regulations, rulings, and findings are appropriate.
    44    6.  Notwithstanding any provision of law to the contrary, any manufac-
    45  turer or wholesaler licensed under the alcoholic  beverage  control  law
    46  may  as  authorized under the alcoholic beverage control law, sell alco-

    47  holic beverages to a gaming facility holding a retail license or  permit
    48  to sell alcoholic beverages for consumption on the premises issued under
    49  this section, and any gaming facility holding a retail license or permit
    50  to sell alcoholic beverages issued under this section may, as authorized
    51  under  the  alcoholic beverage control law, purchase alcoholic beverages
    52  from a manufacturer or wholesaler licensed under the alcoholic  beverage
    53  control law.
    54    7.  It shall be unlawful for any person, including any gaming facility
    55  licensee or any of its lessees, agents or employees, to expose for sale,
    56  solicit or promote the sale of, possess with intent to sell, sell, give,

        S. 5883                            43                            A. 8101
 
     1  dispense, or otherwise transfer or dispose of alcoholic beverages in, on
     2  or about any portion of the premises of a gaming facility,  unless  said
     3  person possesses a license or permit issued under this section.
     4    8.  It shall be unlawful for any person holding a license or permit to
     5  sell alcoholic beverages under this section to  expose,  possess,  sell,
     6  give,  dispense,  transfer, or otherwise dispose of alcoholic beverages,
     7  other than within the terms and conditions of such  license  or  permit,
     8  the  provisions  of  the  alcoholic  beverage control law, the rules and
     9  regulations promulgated by the state liquor authority, and, when  appli-

    10  cable,  the  regulations promulgated pursuant to this article.  Notwith-
    11  standing any other provision of law to the  contrary  the  holder  of  a
    12  license or permit issued under this section may be authorized to provide
    13  complimentary  alcoholic  beverages  under  regulations  issued  by  the
    14  commission.
    15    9. In issuing a casino  alcoholic  beverage  license  or  permit,  the
    16  commission shall describe the scope of the particular license or permit,
    17  and  the  restrictions and limitations thereon as it deems necessary and
    18  reasonable. The commission may, in a single  casino  alcoholic  beverage
    19  license, permit the holder of such a license or permit to perform any or
    20  all  of  the following activities, subject to applicable laws, rules and

    21  regulations:
    22    (a) To sell any alcoholic beverage by the glass or other open recepta-
    23  cle including, but not limited to, an original container, for on-premise
    24  consumption within a facility;  provided,  however,  that  no  alcoholic
    25  beverage  shall be sold or given for consumption; delivered or otherwise
    26  brought to a patron; or consumed at a gaming table unless  so  requested
    27  by the patron.
    28    (b) To sell any alcoholic beverage by the glass or other open recepta-
    29  cle for on-premise consumption within a gaming facility.
    30    (c) To sell any alcoholic beverage by the glass or other open recepta-
    31  cle  or  in  original  containers from a room service location within an

    32  enclosed room not in a gaming facility; provided, however, that any sale
    33  of alcoholic beverages is delivered only to a guest room or to any other
    34  room in the gaming facility authorized by the commission.
    35    (d) To possess or to store alcoholic beverages in original  containers
    36  intended  but  not  actually  exposed  for sale at a fixed location on a
    37  gaming facility premises, not in a gaming facility; and to  transfer  or
    38  deliver such alcoholic beverages only to a location approved pursuant to
    39  this  section;  provided,  however,  that no access to or from a storage
    40  location shall be permitted except during the normal course of  business
    41  by  employees  or  agents  of  the licensee, or by licensed employees or

    42  agents of wholesalers or distributors licensed pursuant to the alcoholic
    43  beverage control law and  any  applicable  rules  and  regulations;  and
    44  provided  further,  however,  that no provision of this section shall be
    45  construed to prohibit a casino alcoholic beverage licensee from  obtain-
    46  ing an off-site storage license from the state liquor authority.
    47    10.  The  commission may revoke, suspend, refuse to renew or refuse to
    48  transfer any casino alcoholic beverage license or permit, and  may  fine
    49  or  penalize  the  holder  of  any  alcoholic beverage license or permit
    50  issued under this section for violations of any provision of  the  alco-
    51  holic beverage control law, the rules and regulations promulgated by the

    52  state  liquor  authority, and the regulations promulgated by the commis-
    53  sion.
    54    11. Jurisdiction over all  alcoholic  beverage  licenses  and  permits
    55  previously  issued  with respect to the gaming facility is hereby vested
    56  in the commission, which in its discretion may by regulation provide for
        S. 5883                            44                            A. 8101
 
     1  the conversion thereof into  a  casino  alcoholic  beverage  license  or
     2  permit as provided in this section.
     3    12.  (a)  Prior to issuing any license under this section, the commis-
     4  sion, or its designee, shall consult with the state liquor authority, or
     5  its designee, to confirm that such application and such gaming  facility

     6  conforms  with  all  applicable  provisions  of  the  alcoholic beverage
     7  control law, and all applicable rules,  regulations,  bulletins,  orders
     8  and advisories promulgated by the state liquor authority;
     9    (b) Prior to commencing enforcement actions against any gaming facili-
    10  ty  licensed  under this section, the commission, or its designee, shall
    11  consult with the state liquor authority, or its designee,  with  respect
    12  to  the application of the applicable provisions of the alcoholic bever-
    13  age control law,  and  all  applicable  rules,  regulations,  bulletins,
    14  orders  and  advisories promulgated by the state liquor authority on the
    15  alleged conduct of such licensee; and
    16    (c) The commission, or its designee,  shall  consult  with  the  state

    17  liquor  authority, or its designee, on a regular basis, but no less than
    18  once every three months, regarding any pending applications and enforce-
    19  ment matters.
    20    § 1341. Licensee leases and contracts.  1. Unless  otherwise  provided
    21  in this subdivision, no agreement shall be lawful which provides for the
    22  payment, however defined, of any direct or indirect interest, percentage
    23  or  share  of:  any  money or property gambled at a gaming facility; any
    24  money or property derived from gaming activity; or any revenues, profits
    25  or earnings of a gaming facility. Notwithstanding the foregoing:
    26    (a) Agreements which provide only for the payment of a fixed sum which
    27  is in no way affected by the amount of any such money, property,  reven-

    28  ues,  profits or earnings shall not be subject to the provisions of this
    29  subdivision;  and  receipts,  rentals  or  charges  for  real  property,
    30  personal property or services shall not lose their character as payments
    31  of  a  fixed  sum  because of contract, lease, or license provisions for
    32  adjustments in charges, rentals or fees on account of changes  in  taxes
    33  or  assessments, cost-of-living index escalations, expansion or improve-
    34  ment of facilities, or changes in services supplied.
    35    (b) Agreements between a gaming facility licensee and a junket  enter-
    36  prise  or  junket  representative  licensed,  qualified or registered in
    37  accordance with the provisions this article and the regulations  of  the

    38  commission  which  provide for the compensation of the junket enterprise
    39  or junket representative by the gaming facility licensee based upon  the
    40  actual  gaming activities of a patron procured or referred by the junket
    41  enterprise or junket representative shall be lawful if  filed  with  the
    42  commission  prior  to  the conduct of any junket that is governed by the
    43  agreement.
    44    (c) Agreements between a gaming facility licensee  and  its  employees
    45  which  provide for gaming employee or casino key employee profit sharing
    46  shall be lawful if the agreement  is  in  writing  and  filed  with  the
    47  commission  prior to its effective date. Such agreements may be reviewed
    48  by the commission.

    49    (d) Agreements to lease an approved gaming facility or the land there-
    50  under and agreements for the complete management  of  all  gaming  oper-
    51  ations  in  a  gaming facility shall not be subject to the provisions of
    52  this subdivision.
    53    (e) Agreements which provide for percentage charges between the gaming
    54  facility licensee and a holding company or intermediary company  of  the
    55  gaming  facility licensee shall be in writing and filed with the commis-
    56  sion but shall not be subject to the provisions of this subdivision.
        S. 5883                            45                            A. 8101
 
     1    (f) Written agreements relating to the operation  of  multi-casino  or

     2  multi-state  progressive slot machine systems between one or more gaming
     3  facility licensees and a licensed casino vendor enterprise or an  eligi-
     4  ble  applicant for such license, which provide for an interest, percent-
     5  age  or  share  of  the  gaming facility licensee's revenues, profits or
     6  earnings from the operation of such multi-casino or multi-state progres-
     7  sive slot machines to be paid to the casino vendor  enterprise  licensee
     8  or  applicant shall not be subject to the provisions of this subdivision
     9  if the agreements are filed with and approved by the commission.
    10    2. Each gaming facility  applicant  or  licensee  shall  maintain,  in
    11  accordance with the rules of the commission, a record of each written or

    12  unwritten  agreement regarding the realty, construction, maintenance, or
    13  business of a proposed or existing gaming facility or related  facility.
    14  The  foregoing  obligation  shall apply regardless of whether the gaming
    15  facility applicant or licensee is a party to  the  agreement.  Any  such
    16  agreement  may be reviewed by the commission on the basis of the reason-
    17  ableness of its terms, including the terms of compensation, and  of  the
    18  qualifications  of the owners, officers, employees, and directors of any
    19  enterprise involved in the  agreement,  which  qualifications  shall  be
    20  reviewed  according  to the standards enumerated in section one thousand
    21  three hundred twenty-three of this article.   If the  commission  disap-

    22  proves  such  an agreement or the owners, officers, employees, or direc-
    23  tors of any enterprise involved therein, the commission may require  its
    24  termination.
    25    Every agreement required to be maintained, and every related agreement
    26  the  performance  of which is dependent upon the performance of any such
    27  agreement, shall be deemed to include a provision to the effect that, if
    28  the commission shall require termination of an  agreement,  such  termi-
    29  nation  shall occur without liability on the part of the gaming facility
    30  applicant or licensee or any qualified party to  the  agreement  or  any
    31  related  agreement. Failure expressly to include such a provision in the
    32  agreement shall not constitute a defense in any action brought to termi-

    33  nate the agreement. If the agreement is not maintained or  presented  to
    34  the  commission in accordance with commission regulations, or the disap-
    35  proved agreement is not terminated, the commission may pursue any remedy
    36  or combination of remedies provided in this article.
    37    For the purposes of  this  subdivision,  "gaming  facility  applicant"
    38  includes  any  person required to hold a gaming facility license who has
    39  applied to the commission for a gaming facility license or any  approval
    40  required.
    41    3.  Nothing  in this article shall be deemed to permit the transfer of
    42  any license, or any interest in  any  license,  or  any  certificate  of
    43  compliance  or any commitment or reservation without the approval of the
    44  commission.

    45    § 1342. Required exclusion of certain  persons.    1.  The  commission
    46  shall, by regulation, provide for the establishment of a list of persons
    47  who  are  to  be  excluded or ejected from any licensed gaming facility.
    48  Such provisions shall define the  standards  for  exclusion,  and  shall
    49  include standards relating to persons:
    50    (a) Who are career or professional offenders as defined by regulations
    51  promulgated hereunder; or
    52    (b)  Who  have  been convicted of a criminal offense under the laws of
    53  any state or of the United States, which  is  punishable  by  more  than
    54  twelve  months in prison, or any crime or offense involving moral turpi-
    55  tude.

        S. 5883                            46                            A. 8101
 
     1    The commission shall promulgate definitions establishing those catego-
     2  ries of persons who shall be excluded pursuant to this section,  includ-
     3  ing  cheats  and  persons whose privileges for licensure or registration
     4  have been revoked.
     5    2.  Any  enumerated  class  listed  in  subdivision one of section two
     6  hundred ninety-six of the human rights law shall not  be  a  reason  for
     7  placing the name of any person upon such list.
     8    3. The commission may impose sanctions upon a licensed gaming facility
     9  or  individual  licensee or registrant in accordance with the provisions
    10  of this article if such gaming facility or individual licensee or regis-

    11  trant knowingly fails to exclude or  eject  from  the  premises  of  any
    12  licensed gaming facility any person placed by the commission on the list
    13  of persons to be excluded or ejected.
    14    4.  Any  list  compiled by the commission of persons to be excluded or
    15  ejected shall not be deemed an all-inclusive list, and  licensed  gaming
    16  facilities  shall  have a duty to keep from their premises persons known
    17  to them to be within the classifications declared  in  subdivisions  one
    18  and  two  of this section and the regulations promulgated thereunder, or
    19  known to them to be persons whose presence in a licensed gaming facility
    20  would be inimical to the interest of the state  or  of  licensed  gaming

    21  therein, or both, as defined in standards established by the commission.
    22    5.  Prior to placing the name of any person on a list pursuant to this
    23  section, the commission shall serve notice  of  such  fact  and  of  the
    24  opportunity  for  a  hearing  to  such  person by personal service or by
    25  certified mail at the last known address of such person.
    26    6. Within thirty days after service of the petition in accordance with
    27  subdivision five of this section, the  person  named  for  exclusion  or
    28  ejection may demand a hearing before the executive director or the exec-
    29  utive  director's  designee,  at which hearing the executive director or
    30  the executive director's designee shall have the affirmative  obligation

    31  to  demonstrate by substantial evidence that the person named for exclu-
    32  sion or ejection satisfies the criteria  for  exclusion  established  by
    33  this  section  and  the applicable regulations. Failure to demand such a
    34  hearing within thirty days after service shall preclude  a  person  from
    35  having  an administrative hearing, but shall in no way affect his or her
    36  right to judicial review as provided herein.
    37    7. The commission may make a preliminary placement on the  list  of  a
    38  person  named in a petition for exclusion or ejection pending completion
    39  of a hearing on the petition. The hearing on the application for prelim-
    40  inary placement shall be a limited proceeding at  which  the  commission

    41  shall  have  the  affirmative  obligation  to demonstrate by substantial
    42  evidence that the person satisfies the  criteria  for  exclusion  estab-
    43  lished  by  this section and the applicable regulations. If a person has
    44  been placed on the list as a result of an  application  for  preliminary
    45  placement,  unless  otherwise  agreed  by the executive director and the
    46  named person, a hearing on the petition for exclusion or ejection  shall
    47  be  initiated  within thirty days after the receipt of a demand for such
    48  hearing or the date of preliminary placement on the list,  whichever  is
    49  later.
    50    8. If, upon completion of the hearing on the petition for exclusion or
    51  ejection, the executive director determines that the person named there-

    52  in  does  not  satisfy  the  criteria  for exclusion established by this
    53  section and the applicable regulations,  the  executive  director  shall
    54  issue an order denying the petition. If the person named in the petition
    55  for  exclusion or ejection had been placed on the list as a result of an
    56  application for preliminary  placement,  the  executive  director  shall
        S. 5883                            47                            A. 8101
 
     1  notify  all  gaming  facility licensees of the person's removal from the
     2  list.
     3    9.  If,  upon completion of a hearing on the petition for exclusion or
     4  ejection, the executive director determines that placement of  the  name

     5  of the person on the exclusion list is appropriate, the executive direc-
     6  tor  shall  make and enter an order to that effect, which order shall be
     7  served on all gaming facility licensees. Such order shall be subject  to
     8  review  by  the  commission  in  accordance with regulations promulgated
     9  thereunder, which final decision shall be subject to review pursuant  to
    10  article seventy-eight of the civil practice law and rules.
    11    §  1343. Exclusion, ejection of certain persons.  1. A gaming facility
    12  licensee may exclude or eject from its gaming facility any person who is
    13  known to it to have been convicted of  a  crime  or  disorderly  conduct
    14  committed in or on the premises of any gaming facility.

    15    2.  Nothing  in  this  section or in any other law of this state shall
    16  limit the right of a gaming facility licensee to exercise its common law
    17  right to exclude or eject  permanently  from  its  gaming  facility  any
    18  person  who disrupts the operations of its premises, threatens the secu-
    19  rity of its premises or its occupants, or is disorderly or intoxicated.
    20    § 1344. List of persons self-excluded from gaming activities.  1.  The
    21  commission  shall  provide by regulation for the establishment of a list
    22  of persons self-excluded from gaming activities at all  licensed  gaming
    23  facilities. Any person may request placement on the list of self-exclud-
    24  ed persons by acknowledging in a manner to be established by the commis-

    25  sion  that  the person is a problem gambler and by agreeing that, during
    26  any period of voluntary  exclusion,  the  person  may  not  collect  any
    27  winnings  or  recover  any  losses resulting from any gaming activity at
    28  such gaming facilities.
    29    2. The regulations of the commission shall  establish  procedures  for
    30  placements  on,  and  removals  from, the list of self-excluded persons.
    31  Such regulations shall  establish  procedures  for  the  transmittal  to
    32  licensed  gaming  facilities of identifying information concerning self-
    33  excluded persons, and shall require licensed gaming facilities to estab-
    34  lish procedures designed, at a minimum, to remove self-excluded  persons
    35  from  targeted  mailings or other forms of advertising or promotions and

    36  deny self-excluded persons  access  to  credit,  complimentaries,  check
    37  cashing privileges, club programs, and other similar benefits.
    38    3.  A  licensed  gaming facility or employee thereof acting reasonably
    39  and in good faith shall not be liable to any self-excluded person or  to
    40  any  other  party  in  any judicial proceeding for any harm, monetary or
    41  otherwise, which may arise as a result of:
    42    (a) the failure of a licensed gaming facility to withhold gaming priv-
    43  ileges from, or restore gaming privileges to, a self-excluded person; or
    44    (b) otherwise permitting a self-excluded person to  engage  in  gaming
    45  activity  in such licensed gaming facility while on the list of self-ex-
    46  cluded persons.

    47    4. Notwithstanding any other law to  the  contrary,  the  commission's
    48  list  of  self-excluded  persons shall not be open to public inspection.
    49  Nothing herein, however, shall be construed to prohibit a gaming facili-
    50  ty licensee from disclosing the identity of persons self-excluded pursu-
    51  ant to this section to affiliated gaming entities in this state or other
    52  jurisdictions for the limited purpose of assisting in the proper  admin-
    53  istration  of responsible gaming programs operated by such gaming affil-
    54  iated entities.
    55    5. A licensed gaming facility or employee thereof shall not be  liable
    56  to  any  self-excluded  person  or  to  any  other party in any judicial

        S. 5883                            48                            A. 8101
 
     1  proceeding for any harm, monetary or otherwise, which  may  arise  as  a
     2  result of disclosure or publication in any manner, other than a willful-
     3  ly  unlawful  disclosure or publication, of the identity of any self-ex-
     4  cluded person.
     5    §  1345. Excluded person; forfeiture of winnings; other sanctions.  1.
     6  A person who is prohibited from gaming in a licensed gaming facility  by
     7  any  order  of  the executive director, commission or court of competent
     8  jurisdiction, including any person on the self-exclusion  list  pursuant
     9  to  subdivision  one of section one thousand three hundred forty-four of
    10  this title, shall not collect, in any manner or proceeding, any winnings

    11  or recover any losses arising as  a  result  of  any  prohibited  gaming
    12  activity.
    13    2.  For  the  purposes this section, any gaming activity in a licensed
    14  gaming facility which results in a prohibited person obtaining any money
    15  or thing of value from, or being owed any money or thing  of  value  by,
    16  the  gaming  facility  shall  be considered, solely for purposes of this
    17  section, to be a fully executed gambling transaction.
    18    3. In addition to any other penalty provided  by  law,  any  money  or
    19  thing of value which has been obtained by, or is owed to, any prohibited
    20  person  by  a  licensed  gaming facility as a result of wagers made by a
    21  prohibited person shall be subject to forfeiture following notice to the

    22  prohibited person and opportunity to be heard. A licensed gaming facili-
    23  ty shall inform a prohibited person of the availability of  such  notice
    24  on  the  commission's  website  when  ejecting the prohibited person and
    25  seizing any chips, vouchers or other representative of money owed  by  a
    26  gaming  facility to the prohibited person as authorized by this subdivi-
    27  sion.   All forfeited amounts shall be  deposited  into  the  commercial
    28  gaming revenue fund.
    29    4.  In  any proceeding brought by the commission against a licensee or
    30  registrant for a willful violation of  the  commission's  self-exclusion
    31  regulations, the commission may order, in addition to any other sanction
    32  authorized,  an  additional  fine  of  double the amount of any money or

    33  thing of value obtained by the licensee or registrant from any  self-ex-
    34  cluded  person.  Any  money  or  thing  of  value  so forfeited shall be
    35  disposed of in the same manner as any money or thing of value  forfeited
    36  pursuant to subdivision three of this section.
    37    §  1346. Labor peace agreements for certain facilities.  1. As used in
    38  this section:
    39    (a) "Gaming facility" means any gaming facility licensed  pursuant  to
    40  this  article or a video lottery gaming facility as may be authorized by
    41  paragraph three of subdivision (a) of section one thousand  six  hundred
    42  seventeen-a  of the tax law, as amended by section nineteen of the chap-
    43  ter of the laws  of  two  thousand  thirteen  that  added  this  section

    44  licensed  by  the  commission.   A gaming facility shall not include any
    45  horse racing, bingo or charitable games of chance, the state lottery for
    46  education, or any gaming facility  operating  pursuant  to  the  federal
    47  Indian Gaming Regulatory Act, 25 U.S.C. § 2710 et seq. A gaming facility
    48  shall  include  any  hospitality  operation  at or related to the gaming
    49  facility.
    50    (b) "Labor peace agreement" means an agreement  enforceable  under  29
    51  U.S.C.  §  185(a)  that,  at a minimum, protects the state's proprietary
    52  interests by prohibiting labor organizations and members  from  engaging
    53  in picketing, work stoppages, boycotts, and any other economic interfer-
    54  ence with operation of the relevant gaming facility.

    55    (c) "License" means any permit, license, franchise or allowance of the
    56  commission and shall include any franchisee or permittee.
        S. 5883                            49                            A. 8101
 
     1    (d) "Proprietary interest" means an economic and non-regulatory inter-
     2  est  at  risk in the financial success of the gaming facility that could
     3  be adversely affected by labor-management conflict,  including  but  not
     4  limited  to  property interests, financial investments and revenue shar-
     5  ing.
     6    2.  The state legislature finds that the gaming industry constitutes a
     7  vital sector of New York's overall economy and that  the  state  through
     8  its  operation of lotteries and video lottery facilities and through its

     9  ownership of the properties utilized for horse racing by  The  New  York
    10  Racing  Association Inc. has a significant and ongoing economic and non-
    11  regulatory interest in the financial viability  and  competitiveness  of
    12  the  gaming industry. The state legislature further finds that the award
    13  or grant of a license by the commission to operate a gaming facility  is
    14  a significant state action and that the commission must make prudent and
    15  efficient  decisions  to maximize the benefits and minimize the risks of
    16  gaming. The state legislature  further  recognizes  that  casino  gaming
    17  industry  integration  can  provide  a  vital economic engine to assist,
    18  nurture, develop, and promote regional economic development,  the  state

    19  tourism  industry and the growth of jobs in the state. Additionally, the
    20  state legislature also finds revenues derived directly by the state from
    21  such gaming activity will be shared from gross  gaming  receipts,  after
    22  payout of prizes but prior to deductions for operational expenses.
    23    Therefore,  the  state legislature finds that the state has a substan-
    24  tial and compelling proprietary interest in any license awarded for  the
    25  operation of a gaming facility within the state.
    26    3.  The  commission  shall require any applicant for a gaming facility
    27  license who has not yet entered into a labor peace agreement to  produce
    28  an  affidavit  stating  it shall enter into a labor peace agreement with

    29  labor  organizations  that  are  actively  engaged  in  representing  or
    30  attempting  to  represent  gaming or hospitality industry workers in the
    31  state. In order for the commission to issue a  gaming  facility  license
    32  and  for  operations  to  commence,  the applicant for a gaming facility
    33  license must produce documentation that it  has  entered  into  a  labor
    34  peace agreement with each labor organization that is actively engaged in
    35  representing and attempting to represent gaming and hospitality industry
    36  workers  in the state. The commission shall make the maintenance of such
    37  a labor peace agreement an ongoing material condition of licensure.
    38    A license holder shall, as a condition of  its  license,  ensure  that

    39  operations  at  the  gaming  facility that are conducted by contractors,
    40  subcontractors, licensees, assignees, tenants  or  subtenants  and  that
    41  involve  gaming  or hospitality industry employees shall be done under a
    42  labor peace agreement containing the same provisions as specified above.
    43    4. If otherwise applicable, capital projects undertaken  by  a  gaming
    44  facility shall be subject to article eight of the labor law and shall be
    45  subject  to  the  enforcement  of  prevailing  wage  requirements by the
    46  department of labor.
    47    5. If otherwise applicable, capital projects undertaken  by  a  gaming
    48  facility  shall  be  subject  to section one hundred thirty- five of the
    49  state finance law.

    50    6. If otherwise  applicable,  any  gaming  facility  entering  into  a
    51  contract  for  a gaming facility capitol project shall be deemed to be a
    52  state agency, and such contract shall be deemed to be a state  contract,
    53  for  purposes  of article fifteen-A of the executive law and section two
    54  hundred twenty-two of the labor law.
    55                                   TITLE 6
    56                              TAXATION AND FEES
        S. 5883                            50                            A. 8101
 
     1  Section 1348. Machine and table fees.
     2          1349. Regulatory investigatory fees.
     3          1350. Additional regulatory costs.
     4          1351. Tax on gaming revenues; permissive supplemental fee.

     5          1352. Commercial gaming revenue fund.
     6          1353. Determination of tax liability.
     7          1354. Unclaimed funds.
     8          1355. Racing support payments.
     9    §  1348.  Machine  and table fees. In addition to any other tax or fee
    10  imposed by this article, there shall be imposed an annual license fee of
    11  five hundred dollars for each slot machine and  table  approved  by  the
    12  commission  for use by a gaming licensee at a gaming facility; provided,
    13  however, that not sooner than five years  after  award  of  an  original
    14  gaming   license,  the  commission  may  annually  adjust  the  fee  for
    15  inflation. The fee shall be imposed as of July first of  each  year  for

    16  all approved slot machines and tables on that date and shall be assessed
    17  on a pro rata basis for any slot machine or table approved for use ther-
    18  eafter.
    19    Such  assessed  fees  shall  be  deposited  into the commercial gaming
    20  revenue fund established pursuant to section one thousand three  hundred
    21  fifty-two of this article.
    22    §  1349.  Regulatory  investigatory fees. The commission may establish
    23  fees for any investigation into a violation of  this  article  or  regu-
    24  lation promulgated hereunder by a gaming facility licensee to be paid by
    25  the  gaming  facility  licensee  including, but not limited to, billable
    26  hours by commission staff involved in the investigation and the costs of

    27  services, equipment or other expenses that are incurred by  the  commis-
    28  sion during the investigation.
    29    §  1350.  Additional regulatory costs.   1. Any remaining costs of the
    30  commission necessary to maintain regulatory control over gaming  facili-
    31  ties  that are not covered by the fees set forth in section one thousand
    32  three hundred forty-nine of this title; any other  fees  assessed  under
    33  this  article;  or  any  other  designated  sources of funding, shall be
    34  assessed annually on gaming licensees under this article  in  proportion
    35  to  the  number of gaming positions at each gaming facility. Each gaming
    36  licensee shall pay the amount assessed against  it  within  thirty  days
    37  after the date of the notice of assessment from the commission.

    38    2.  If the fees collected in section one thousand three hundred forty-
    39  nine of this title exceed  the  cost  required  to  maintain  regulatory
    40  control,  the  surplus  funds  shall  be credited in proportional shares
    41  against each gaming licensee's next assessment.
    42    § 1351. Tax on gaming revenues; permissive supplemental fee. 1. For  a
    43  gaming  facility  in  zone  two,  there is hereby imposed a tax on gross
    44  gaming revenues. The amount of such tax imposed  shall  be  as  follows;
    45  provided,  however, should a licensee have agreed within its application
    46  to supplement the tax with a binding supplemental fee payment  exceeding
    47  the  aforementioned  tax rate, such tax and supplemental fee shall apply
    48  for a gaming facility:

    49    (a) in region two, forty-five percent of  gross  gaming  revenue  from
    50  slot  machines  and  ten  percent of gross gaming revenue from all other
    51  sources.
    52    (b) in region one, thirty-nine percent of gross  gaming  revenue  from
    53  slot  machines  and  ten  percent of gross gaming revenue from all other
    54  sources.
        S. 5883                            51                            A. 8101
 
     1    (c) in region five, thirty-seven percent of gross gaming revenue  from
     2  slot  machines  and  ten  percent of gross gaming revenue from all other
     3  sources.
     4    §  1352.  Commercial gaming revenue fund.  1. The commission shall pay
     5  into an account, to be known as the commercial gaming  revenue  fund  as

     6  established  pursuant  to section ninety-seven-nnnn of the state finance
     7  law, under the joint custody of the comptroller and the commissioner  of
     8  taxation  and  finance,  all taxes and fees imposed by this article; any
     9  interest and penalties imposed  by  the  commission  relating  to  those
    10  taxes; the appropriate percentage of the value of expired gaming related
    11  obligations;  all  penalties levied and collected by the commission; and
    12  the appropriate funds, cash or prizes forfeited from gambling activity.
    13    2. The commission shall require  at  least  monthly  deposits  by  the
    14  licensee  of any payments pursuant to section one thousand three hundred
    15  fifty-one of this article, at such times, under such conditions, and  in

    16  such  depositories  as shall be prescribed by the state comptroller. The
    17  deposits shall be deposited to  the  credit  of  the  commercial  gaming
    18  revenue  fund  as  established by section ninety-seven-nnnn of the state
    19  finance law. The commission may require a monthly report  and  reconcil-
    20  iation  statement to be filed with it on or before the tenth day of each
    21  month, with respect to gross revenues and deposits  received  and  made,
    22  respectively, during the preceding month.
    23    §  1353.  Determination  of  tax liability. The commission may perform
    24  audits of the books and records of a gaming facility licensee,  at  such
    25  times  and  intervals as it deems appropriate, for the purpose of deter-

    26  mining the sufficiency of tax or fee payments. If a  return  or  deposit
    27  required  with regard to obligations imposed is not filed or paid, or if
    28  a return or deposit when filed or paid is determined by  the  commission
    29  to  be incorrect or insufficient with or without an audit, the amount of
    30  tax, fee or deposit due shall be determined by the commission.    Notice
    31  of  such  determination  shall  be  given to the licensee liable for the
    32  payment of the tax or fee or deposit. Such determination  shall  finally
    33  and  irrevocably fix the tax or fee unless the person against whom it is
    34  assessed, within thirty days after receiving  notice  of  such  determi-
    35  nation,  shall  apply to the commission for a hearing in accordance with

    36  the regulations of the commission.
    37    § 1354. Unclaimed funds. Unclaimed funds, cash  and  prizes  shall  be
    38  retained  by the gaming facility licensee for the person entitled to the
    39  funds, cash or prize for one year after the game  in  which  the  funds,
    40  cash  or prize was won. If no claim is made for the funds, cash or prize
    41  within one year, the funds, cash or equivalent cash value of  the  prize
    42  shall be deposited in the commercial gaming revenue fund.
    43    §  1355.  Racing support payments.  1. If an applicant who possesses a
    44  pari-mutuel wagering franchise or license awarded  pursuant  to  article
    45  two  or three of this chapter, or who possessed in two thousand thirteen

    46  a franchise or a license awarded pursuant to article  two  or  three  of
    47  this  chapter or is an articulated entity or such applicant, is issued a
    48  gaming facility license pursuant to this article, the licensee shall:
    49    (a) Maintain payments made from video lottery gaming operations to the
    50  relevant horsemen and breeders organizations at the  same  dollar  level
    51  realized  in  two thousand thirteen, to be adjusted annually pursuant to
    52  changes in  the  consumer  price  index  for  all  urban  consumers,  as
    53  published  annually  by  the United States department of labor bureau of
    54  labor statistics;
        S. 5883                            52                            A. 8101
 

     1    (b) All racetracks locations awarded a gaming facility  license  shall
     2  maintain  racing  activity  and  race dates pursuant to articles two and
     3  three of this chapter.
     4    2. If an applicant that does not possess either a pari-mutuel wagering
     5  license  or  franchise  awarded pursuant to article two or three of this
     6  chapter is issued a gaming facility license pursuant  to  this  article,
     7  the licensee shall pay:
     8    (a) an amount to horsemen for purses at the licensed racetracks in the
     9  region  that  will  assure  the  purse support from video lottery gaming
    10  facilities in the region to the licensed racetracks in the region to  be
    11  maintained  at  the same dollar levels realized in two thousand thirteen

    12  to be adjusted by the consumer price index for all urban  consumers,  as
    13  published  annually  by  the United States department of labor bureau of
    14  labor statistics; and
    15    (b) amounts to the agricultural and  New  York  state  horse  breeding
    16  development fund and the New York state thoroughbred breeding and devel-
    17  opment fund to maintain payments from video lottery gaming facilities in
    18  the  region  to  such  funds  to be maintained at the same dollar levels
    19  realized in two thousand thirteen to be adjusted by the  consumer  price
    20  index  for  all  urban  consumers,  as  published annually by the United
    21  States department of labor bureau of labor statistics.
    22                                   TITLE 7

    23                              PROBLEM GAMBLING
    24  Section 1362. Prevention and outreach efforts.
    25          1363. Advertising restrictions.
    26    § 1362. Prevention and outreach efforts.    1.  Each  gaming  facility
    27  licensee, management company, and holding company involved in the appli-
    28  cation and ownership or management of a gaming facility shall provide to
    29  the  commission, as applicable, an applicant's problem gambling plan. An
    30  applicant's problem gambling plan shall be approved  by  the  commission
    31  before  the  commission  issues  or renews a license. Each plan shall at
    32  minimum include the following:
    33    (a) The goals of the plan and procedures and timetables  to  implement
    34  the plan;

    35    (b)  The  identification of the individual who will be responsible for
    36  the implementation and maintenance of the plan;
    37    (c) Policies and procedures including the following:
    38    (1) The commitment of the applicant and the gaming  facility  licensee
    39  to train appropriate employees;
    40    (2)  The  duties  and  responsibilities of the employees designated to
    41  implement or participate in the plan;
    42    (3) The responsibility of patrons with respect to  responsible  gambl-
    43  ing;
    44    (4) Procedures for compliance with the voluntary exclusion program;
    45    (5)  Procedures  to  identify  patrons and employees with suspected or
    46  known problem gambling behavior, including procedures specific to loyal-

    47  ty and other rewards and marketing programs;
    48    (6) Procedures for providing information to individuals regarding  the
    49  voluntary  exclusion program and community, public and private treatment
    50  services, gamblers anonymous programs and similar treatment or addiction
    51  therapy programs designed to prevent, treat, or monitor problem gamblers
    52  and to counsel family members;
    53    (7) Procedures for responding to  patron  and  employee  requests  for
    54  information  regarding  the  voluntary  exclusion program and community,
    55  public and private treatment services, gamblers anonymous  programs  and
    56  similar  treatment  or  addiction  therapy programs designed to prevent,
        S. 5883                            53                            A. 8101

 
     1  treat, or monitor compulsive and problem gamblers and to counsel  family
     2  members;
     3    (8) The provision of printed material to educate patrons and employees
     4  about  problem gambling and to inform them about the voluntary exclusion
     5  program and treatment services available to problem gamblers  and  their
     6  families.  The  applicant  shall provide examples of the materials to be
     7  used as part of its plan, including, brochures and other printed materi-
     8  al and a description of how the material will be disseminated;
     9    (9) Advertising and other marketing and outreach to educate the gener-
    10  al public about the voluntary exclusion program and problem gambling;
    11    (10) An employee training program, including training materials to  be

    12  utilized  and  a  plan for periodic reinforcement training and a certif-
    13  ication process established by the applicant to verify that each employ-
    14  ee has completed the training required by the plan;
    15    (11) Procedures to prevent underage gambling;
    16    (12) Procedures to prevent patrons impaired by drugs  or  alcohol,  or
    17  both, from gambling; and
    18    (13) The plan for posting signs within the gaming facility, containing
    19  information  on  gambling  treatment  and  on  the  voluntary  exclusion
    20  program. The applicant shall provide examples of the language and graph-
    21  ics to be used on the signs as part of its plan;
    22    (d) A list  of  community,  public  and  private  treatment  services,

    23  gamblers  anonymous  programs and similar treatment or addiction therapy
    24  programs designed to prevent, treat, or monitor problem gamblers and  to
    25  counsel family members; and
    26    (e) Any other information, documents, and policies and procedures that
    27  the commission requires.
    28    2.  Each applicant or gaming facility licensee shall submit any amend-
    29  ments to the problem gambling plan to  the  commission  for  review  and
    30  approval before implementing the amendments.
    31    3. Each gaming facility licensee shall submit an annual summary of its
    32  problem gambling plan to the commission.
    33    4. Each gaming facility licensee shall submit quarterly updates and an
    34  annual  report to the commission of its adherence to the plans and goals

    35  submitted under this section.
    36    § 1363. Advertising restrictions.  1. As used in this section:
    37    (a) "advertisement" shall mean any  notice  or  communication  to  the
    38  public  or  any  information concerning the gaming-related business of a
    39  gaming facility licensee or applicant through broadcasting,  publication
    40  or any other means of dissemination, including electronic dissemination.
    41  Promotional  activities  are  considered  advertisements for purposes of
    42  this section.
    43    (b) "direct advertisement" shall mean any advertisement  as  described
    44  in  paragraph (a) of this subdivision that is disseminated to a specific
    45  individual or individuals.
    46    2. Advertising shall be based upon  fact,  and  shall  not  be  false,

    47  deceptive  or misleading, and no advertising by or on behalf of a gaming
    48  facility licensee shall:
    49    (a) Use any type,  size,  location,  lighting,  illustration,  graphic
    50  depiction or color resulting in the obscuring of any material fact;
    51    (b)  Fail  to clearly and conspicuously specify and state any material
    52  conditions or limiting factors;
    53    (c) Depict any person under the age of twenty-one engaging  in  gaming
    54  and related activities; or
    55    (d)  Fail  to  designate and state the name and location of the gaming
    56  facility conducting the advertisement. The location of the gaming facil-
        S. 5883                            54                            A. 8101
 

     1  ity need not be included on billboards within thirty miles of the gaming
     2  facility.
     3    3.  Each advertisement shall, clearly and conspicuously, state a prob-
     4  lem gambling hotline number.
     5    4.  Each  direct  advertisement  shall,  clearly  and   conspicuously,
     6  describe  a  method or methods by which an individual may designate that
     7  the individual does not wish to receive any future direct advertisement.
     8    (a) The described method must be by at least two of the following:
     9    (1) Telephone;
    10    (2) Regular U.S. mail; or
    11    (3) Electronic mail.
    12    (b) Upon receipt of an individual's request to discontinue receipt  of
    13  future  advertisement,  a  gaming  facility  licensee or applicant shall

    14  block the individual in the gaming facility licensee's database so as to
    15  prevent the individual from receiving future direct advertisements with-
    16  in fifteen days of receipt of the request.
    17    5. Each gaming facility licensee or applicant  shall  provide  to  the
    18  commission at its main office a complete and accurate copy of all adver-
    19  tisements  within  five  business  days  of  the  advertisement's public
    20  dissemination. Gaming facility licensees or applicants shall discontinue
    21  the public dissemination upon receipt of notice from the  commission  to
    22  discontinue an advertisement.
    23    6.  A  gaming facility licensee or applicant shall maintain a complete
    24  record of all advertisements  for  a  period  of  at  least  two  years.

    25  Records shall be made available to the commission upon request.
    26                                   TITLE 8
    27                          MISCELLANEOUS PROVISIONS
    28  Section 1364. Smoking prohibited.
    29          1365. Conservatorship.
    30          1366. Zoning.
    31          1367. Sports wagering.
    32    §  1364.  Smoking  prohibited.  Smoking shall not be permitted, and no
    33  person shall smoke in the indoor areas of facilities  licensed  pursuant
    34  to  this  article,  except  that  the provisions of section one thousand
    35  three hundred ninety-nine-q of the public health law shall be applicable
    36  to facilities licensed pursuant to this article.
    37    § 1365. Conservatorship.  1. Upon revocation or suspension of a gaming

    38  facility license or upon the failure or refusal to renew a gaming facil-
    39  ity license, the commission may appoint  a  conservator  to  temporarily
    40  manage  and  operate the business of the gaming licensee relating to the
    41  gaming facility. Such conservator shall be a person of  similar  experi-
    42  ence  in  the field of gaming management and, in the case of replacing a
    43  gaming facility licensee,  shall  have  experience  operating  a  gaming
    44  facility  of  similar  caliber  in another jurisdiction, and shall be in
    45  good standing in all jurisdictions in which the conservator  operates  a
    46  gaming  facility.  Upon  appointment,  a  conservator shall agree to all
    47  licensing provisions of the former gaming licensee.

    48    2. A conservator shall, before  assuming,  managerial  or  operational
    49  duties,  execute  and  file  a  bond for the faithful performance of its
    50  duties payable to the commission with such surety and in such  form  and
    51  amount as the commission shall approve.
    52    3.  The  commission  shall require that the former or suspended gaming
    53  licensee purchase liability insurance, in an amount  determined  by  the
    54  commission,  to  protect  a  conservator  from liability for any acts or
    55  omissions of the conservator during the conservator's appointment  which
        S. 5883                            55                            A. 8101
 
     1  are  reasonably  related  to  and  within the scope of the conservator's
     2  duties.

     3    4.  During  the period of temporary management of the gaming facility,
     4  the commission shall initiate proceedings under this article to award  a
     5  new gaming facility license to a qualified applicant whose gaming facil-
     6  ity shall be located at the site of the preexisting gaming facility.
     7    5.  An  applicant for a new gaming facility license shall be qualified
     8  for licensure under this article; provided, however, that the commission
     9  shall determine an appropriate level of investment by an applicant  into
    10  the preexisting gaming facility.
    11    6. Upon award of a new gaming facility license, the new gaming facili-
    12  ty  licensee  shall  pay  the original licensing fee required under this
    13  article.

    14    § 1366. Zoning. Notwithstanding any  inconsistent  provision  of  law,
    15  gaming authorized at a location pursuant to this article shall be deemed
    16  an  approved activity for such location under the relevant city, county,
    17  town, or village land use or zoning ordinances, rules, or regulations.
    18    § 1367. Sports wagering.  1. As used in this section:
    19    (a) "Casino" means a licensed gaming facility  at  which  gambling  is
    20  conducted pursuant to the provisions of this article;
    21    (b)  "Commission" means the commission established pursuant to section
    22  one hundred two of this chapter;
    23    (c) "Collegiate sport or athletic event" means  a  sport  or  athletic
    24  event  offered  or sponsored by or played in connection with a public or

    25  private institution that offers educational services beyond the  second-
    26  ary level;
    27    (d)  "Operator"  means  a casino which has elected to operate a sports
    28  pool;
    29    (e) "Professional sport or athletic event" means an event at which two
    30  or more persons participate in sports or  athletic  events  and  receive
    31  compensation  in  excess  of  actual expenses for their participation in
    32  such event;
    33    (f) "Prohibited sports event" means any collegiate sport  or  athletic
    34  event that takes place in New York or a sport or athletic event in which
    35  any  New  York  college  team participates regardless of where the event
    36  takes place;
    37    (g) "Sports event" means any professional sport or athletic event  and

    38  any  collegiate  sport  or  athletic  event,  except a prohibited sports
    39  event;
    40    (h) "Sports pool" means the business of accepting wagers on any sports
    41  event by any system or method of wagering; and
    42    (i) "Sports wagering lounge" means an area wherein a  sports  pool  is
    43  operated.
    44    2.  No  gaming facility may conduct sports wagering until such time as
    45  there has been a change in federal law authorizing such or upon a ruling
    46  of a court of competent jurisdiction that such activity is lawful.
    47    3. (a) In addition to authorized gaming activities, a licensed  gaming
    48  facility  may when authorized by subdivision two of this section operate
    49  a sports pool upon the approval of the commission and in accordance with

    50  the provisions of this section and  applicable  regulations  promulgated
    51  pursuant  to this article. The commission shall hear and decide promptly
    52  and in reasonable order all applications for  a  license  to  operate  a
    53  sports  pool,  shall have the general responsibility for the implementa-
    54  tion of this section and shall have all other duties specified  in  this
    55  section  with  regard  to the operation of a sports pool. The license to
    56  operate a sports pool shall be in addition to any other license required
        S. 5883                            56                            A. 8101
 
     1  to be issued to operate a gaming  facility.  No  license  to  operate  a
     2  sports  pool  shall  be issued by the commission to any entity unless it

     3  has established its financial stability,  integrity  and  responsibility
     4  and its good character, honesty and integrity.
     5    No  later  than five years after the date of the issuance of a license
     6  and every five years thereafter or within such  lesser  periods  as  the
     7  commission  may  direct,  a licensee shall submit to the commission such
     8  documentation  or  information  as  the  commission  may  by  regulation
     9  require, to demonstrate to the satisfaction of the executive director of
    10  the  commission  that the licensee continues to meet the requirements of
    11  the law and regulations.
    12    (b) A sports pool shall  be  operated  in  a  sports  wagering  lounge
    13  located  at  a  casino.  The  lounge  shall  conform to all requirements

    14  concerning square footage,  design,  equipment,  security  measures  and
    15  related matters which the commission shall by regulation prescribe.
    16    (c)  The operator of a sports pool shall establish or display the odds
    17  at which wagers may be placed on sports events.
    18    (d) An operator shall accept wagers on sports events only from persons
    19  physically present in the sports wagering lounge.  A  person  placing  a
    20  wager shall be at least twenty-one years of age.
    21    (e)  An  operator  shall not admit into the sports wagering lounge, or
    22  accept wagers from, any person whose name appears on the exclusion list.
    23    (f) The holder of a license to operate a sports pool may contract with
    24  an entity to conduct that operation, in accordance with the  regulations

    25  of the commission. That entity shall obtain a license as a casino vendor
    26  enterprise prior to the execution of any such contract, and such license
    27  shall be issued pursuant to the provisions of section one thousand three
    28  hundred  twenty-seven  of  this article and in accordance with the regu-
    29  lations promulgated by the commission.
    30    (g) If any provision of this article or its application to any  person
    31  or  circumstance  is held invalid, the invalidity shall not affect other
    32  provisions or applications of this article which  can  be  given  effect
    33  without  the  invalid  provision  or  application,  and  to this end the
    34  provisions of this article are severable.
    35    4. (a) All persons employed directly  in  wagering-related  activities

    36  conducted  within a sports wagering lounge shall be licensed as a casino
    37  key employee or registered as a gaming employee, as  determined  by  the
    38  commission.  All  other employees who are working in the sports wagering
    39  lounge may be required to be registered, if appropriate,  in  accordance
    40  with regulations of the commission.
    41    (b)  Each operator of a sports pool shall designate one or more casino
    42  key employees who shall be responsible for the operation of  the  sports
    43  pool.  At  least  one  such casino key employee shall be on the premises
    44  whenever sports wagering is conducted.
    45    5. Except as otherwise provided by this article, the commission  shall
    46  have  the  authority  to regulate sports pools and the conduct of sports

    47  wagering under this article to the same extent that the commission regu-
    48  lates other gaming. No casino shall be authorized to  operate  a  sports
    49  pool  unless  it has produced information, documentation, and assurances
    50  concerning  its  financial  background  and  resources,  including  cash
    51  reserves,  that  are sufficient to demonstrate that it has the financial
    52  stability, integrity, and responsibility to operate a  sports  pool.  In
    53  developing  rules  and  regulations  applicable  to sports wagering, the
    54  commission shall examine the regulations  implemented  in  other  states
    55  where  sports  wagering  is  conducted and shall, as far as practicable,
    56  adopt a similar regulatory framework. The  commission  shall  promulgate

        S. 5883                            57                            A. 8101
 
     1  regulations  necessary  to  carry  out  the  provisions of this section,
     2  including, but not limited to, regulations governing the:
     3    (a)  amount  of  cash  reserves to be maintained by operators to cover
     4  winning wagers;
     5    (b) acceptance of wagers on a series of sports events;
     6    (c) maximum wagers which may be accepted by an operator from  any  one
     7  patron on any one sports event;
     8    (d) type of wagering tickets which may be used;
     9    (e) method of issuing tickets;
    10    (f) method of accounting to be used by operators;
    11    (g) types of records which shall be kept;
    12    (h) use of credit and checks by patrons;

    13    (i) type of system for wagering; and
    14    (j) protections for a person placing a wager.
    15    6.  Each  operator  shall  adopt  comprehensive  house rules governing
    16  sports wagering transactions with its patrons. The rules  shall  specify
    17  the  amounts  to  be  paid  on winning wagers and the effect of schedule
    18  changes. The house  rules,  together  with  any  other  information  the
    19  commission  deems  appropriate,  shall be conspicuously displayed in the
    20  sports wagering lounge and included in the terms and conditions  of  the
    21  account  wagering  system, and copies shall be made readily available to
    22  patrons.
    23                                   TITLE 9
    24                          GAMING INSPECTOR GENERAL

    25  Section 1368. Establishment of the office of gaming inspector general.
    26          1369. State gaming inspector general; functions and duties.
    27          1370. Powers.
    28          1371. Responsibilities of the commission and  its  officers  and
    29                  employees.
    30    §  1368.  Establishment  of  the  office  of gaming inspector general.
    31  There is hereby created within  the  commission  the  office  of  gaming
    32  inspector  general. The head of the office shall be the gaming inspector
    33  general who shall be appointed by the governor by and  with  the  advice
    34  and  consent  of  the  senate.  The inspector general shall serve at the
    35  pleasure of the governor. The inspector general shall report directly to

    36  the governor. The person appointed as inspector general shall, upon  his
    37  or her appointment, have not less than ten years professional experience
    38  in  law,  investigation,  or  auditing.  The  inspector general shall be
    39  compensated within the limits of  funds  available  therefor,  provided,
    40  however, such salary shall be no less than the salaries of certain state
    41  officers holding the positions indicated in paragraph (a) of subdivision
    42  one of section one hundred sixty-nine of the executive law.
    43    §  1369.  State  gaming  inspector  general; functions and duties. The
    44  state gaming inspector general  shall  have  the  following  duties  and
    45  responsibilities:
    46    1.  receive and investigate complaints from any source, or upon his or

    47  her own initiative, concerning allegations of corruption, fraud,  crimi-
    48  nal activity, conflicts of interest or abuse in the commission;
    49    2.  inform the commission members of such allegations and the progress
    50  of investigations related thereto, unless special circumstances  require
    51  confidentiality;
    52    3.  determine  with  respect  to such allegations whether disciplinary
    53  action, civil or criminal prosecution, or further  investigation  by  an
    54  appropriate  federal,  state or local agency is warranted, and to assist
    55  in such investigations;
        S. 5883                            58                            A. 8101
 
     1    4. prepare and release to the public written reports of such  investi-

     2  gations,  as  appropriate and to the extent permitted by law, subject to
     3  redaction to protect the confidentiality of witnesses.  The  release  of
     4  all or portions of such reports may be deferred to protect the confiden-
     5  tiality of ongoing investigations;
     6    5.  review and examine periodically the policies and procedures of the
     7  commission with regard to the prevention and  detection  of  corruption,
     8  fraud, criminal activity, conflicts of interest or abuse;
     9    6.  recommend  remedial  action  to  prevent  or eliminate corruption,
    10  fraud, criminal activity, conflicts of interest or abuse in the  commis-
    11  sion; and
    12    7.  establish  programs for training commission officers and employees

    13  regarding the prevention and elimination of corruption, fraud,  criminal
    14  activity, conflicts of interest or abuse in the commission.
    15    §  1370.  Powers.    The state gaming inspector general shall have the
    16  power to:
    17    1. subpoena and enforce the attendance of witnesses;
    18    2. administer oaths or affirmations and examine witnesses under oath;
    19    3. require the production of any books and papers deemed  relevant  or
    20  material to any investigation, examination or review;
    21    4. notwithstanding any law to the contrary, examine and copy or remove
    22  documents  or  records  of  any kind prepared, maintained or held by the
    23  commission;
    24    5. require any commission officer  or  employee  to  answer  questions

    25  concerning  any matter related to the performance of his or her official
    26  duties.  The refusal of any officer  or  employee  to  answer  questions
    27  shall  be cause for removal from office or employment or other appropri-
    28  ate penalty;
    29    6. monitor the implementation by the commission of any recommendations
    30  made by the state inspector general; and
    31    7. perform any other functions that are necessary  or  appropriate  to
    32  fulfill the duties and responsibilities of the office.
    33    §  1371.  Responsibilities  of  the  commission  and  its officers and
    34  employees.  1. Every commission officer or employee shall report prompt-
    35  ly to the state gaming  inspector  general  any  information  concerning

    36  corruption,  fraud, criminal activity, conflicts of interest or abuse by
    37  another state officer or employee relating  to  his  or  her  office  or
    38  employment,  or by a person having business dealings with the commission
    39  relating to those dealings.  The  knowing  failure  of  any  officer  or
    40  employee  to so report shall be cause for removal from office or employ-
    41  ment or other appropriate penalty under this  article.  Any  officer  or
    42  employee who acts pursuant to this subdivision by reporting to the state
    43  gaming  inspector  general or other appropriate law enforcement official
    44  improper governmental action as defined in section seventy-five-b of the
    45  civil service law shall not be subject to dismissal, discipline or other
    46  adverse personnel action.

    47    2. The commission chair shall advise the governor within  ninety  days
    48  of  the issuance of a report by the state gaming inspector general as to
    49  the remedial action that the commission has taken  in  response  to  any
    50  recommendation for such action contained in such report.
    51    § 3. Section 225.00 of the penal law is amended by adding eighteen new
    52  subdivisions 13 through 30 to read as follows:
    53    13.  "Authorized  gaming establishment" means any structure, structure
    54  and adjacent or attached structure, or grounds adjacent to  a  structure
    55  in  which  casino  gaming, conducted pursuant to article thirteen of the
    56  racing, pari-mutuel wagering and breeding law, or Class III  gaming,  as

        S. 5883                            59                            A. 8101
 
     1  authorized  pursuant  to a compact reached between the state of New York
     2  and a federally recognized Indian nation  or  tribe  under  the  federal
     3  Indian Gaming Regulatory Act of 1988, is conducted and shall include all
     4  public  and non-public areas of any such building, except for such areas
     5  of a building where either Class I or II gaming  are  conducted  or  any
     6  building  or  grounds  known  as  a video gaming entertainment facility,
     7  including facilities where food and drink are served, as well  as  those
     8  areas  not normally open to the public, such as where records related to
     9  video lottery gaming operations are kept, except shall not  include  the

    10  racetracks  or  such areas where such video lottery gaming operations or
    11  facilities do not take place or exist, such as racetrack areas or  fair-
    12  grounds  which  are wholly unrelated to video lottery gaming operations,
    13  pursuant to section sixteen hundred seventeen-a and  paragraph  five  of
    14  subdivision  a  of  section  sixteen  hundred  twelve of the tax law, as
    15  amended and implemented.
    16    14. "Authorized gaming operator" means an enterprise or business enti-
    17  ty authorized by state or federal law to operate casino or video lottery
    18  gaming.
    19    15. "Casino gaming" means games authorized to be played pursuant to  a
    20  license granted under article thirteen of the racing, pari-mutuel wager-

    21  ing and breeding law or by federally recognized Indian nations or tribes
    22  pursuant to a valid gaming compact reached in accordance with the feder-
    23  al  Indian  Gaming  Regulatory  Act  of 1988, Pub. L. 100-497, 102 Stat.
    24  2467, codified at 25 U.S.C. §§ 2701-21 and 18 U.S.C. §§ 1166-68.
    25    16. "Cash equivalent" means a treasury check, a travelers check,  wire
    26  transfer  of  funds, transfer check, money order, certified check, cash-
    27  iers check, payroll check, a check drawn on the account of  the  author-
    28  ized  gaming  operator payable to the patron or to the authorized gaming
    29  establishment,  a  promotional  coupon,  promotional  chip,  promotional
    30  cheque,  promotional  token, or a voucher recording cash drawn against a

    31  credit card or charge card.
    32    17. "Cheques" or "chips" or "tokens" means nonmetal, metal  or  partly
    33  metal  representatives of value, redeemable for cash or cash equivalent,
    34  and issued and sold by an authorized  casino  operator  for  use  at  an
    35  authorized  gaming  establishment. The value of such cheques or chips or
    36  tokens shall be considered equivalent in  value  to  the  cash  or  cash
    37  equivalent  exchanged  for such cheques or chips or tokens upon purchase
    38  or redemption.
    39    18. "Class I gaming" and "Class II gaming" means those forms of gaming
    40  that are not Class III gaming, as defined in subsection eight of section
    41  four of the federal Indian Gaming Regulatory Act, 25 U.S.C. § 2703.

    42    19. "Class III gaming" means those forms of gaming that are not  Class
    43  I or Class II gaming, as defined in subsections six and seven of section
    44  four  of  the federal Indian Gaming Regulatory Act, 25 U.S.C. § 2703 and
    45  those games enumerated in the Appendix of a gaming compact.
    46    20. "Compact" or "gaming compact" means the agreement between a feder-
    47  ally recognized Indian tribe and the state of New York  regarding  Class
    48  III gaming activities entered into pursuant to the federal Indian Gaming
    49  Regulatory  Act, Pub.  L. 100-497, 102 Stat. 2467, codified at 25 U.S.C.
    50  §§ 2701-21 and 18 U.S.C. §§ 1166-68 (1988 & Supp. II).
    51    21. "Gaming equipment or device" means any machine or device which  is

    52  specially designed or manufactured for use in the operation of any Class
    53  III or video lottery game.
    54    22.  "Gaming  regulatory authority" means, with respect to any author-
    55  ized gaming establishment on Indian lands, territory or reservation, the
    56  Indian nation or tribal  gaming  commission,  its  authorized  officers,
        S. 5883                            60                            A. 8101
 
     1  agents  and  representatives acting in their official capacities or such
     2  other agency of a nation or tribe as the nation or tribe  may  designate
     3  as the agency responsible for the regulation of Class III gaming, joint-
     4  ly  with the state gaming agency, conducted pursuant to a gaming compact

     5  between the nation or tribe and the state of New York, or  with  respect
     6  to  any  casino  gaming  authorized  pursuant to article thirteen of the
     7  racing, pari-mutuel wagering and breeding law or  video  lottery  gaming
     8  conducted  pursuant to section sixteen hundred seventeen-a and paragraph
     9  five of subdivision a of section sixteen hundred twelve of the tax  law,
    10  as amended and implemented.
    11    23. "Premises" includes any structure, parking lot, building, vehicle,
    12  watercraft, and any real property.
    13    24. "Sell" means to sell, exchange, give or dispose of to another.
    14    25. "State gaming agency" shall mean the New York state gaming commis-
    15  sion,  its  authorized  officials, agents, and representatives acting in

    16  their official capacities as the regulatory agency of  the  state  which
    17  has  responsibility  for regulation with respect to video lottery gaming
    18  or casino gaming.
    19    26. "Unfair gaming equipment" means loaded dice, marked cards, substi-
    20  tuted cards or dice, or fixed roulette wheels or other gaming  equipment
    21  which  has been altered in a way that tends to deceive or tends to alter
    22  the elements of chance or normal random selection  which  determine  the
    23  result of the game or outcome, or the amount or frequency of the payment
    24  in a game.
    25    27. "Unlawful gaming property" means:
    26    (a) any device, not prescribed for use in casinio gaming by its rules,
    27  which is capable of assisting a player:

    28    (i)  to  calculate  any  probabilities  material  to  the outcome of a
    29  contest of chance; or
    30    (ii) to receive or transmit information material to the outcome  of  a
    31  contest of chance; or
    32    (b)  any  object or article which, by virtue of its size, shape or any
    33  other quality, is capable of being used in casino gaming as an  improper
    34  substitute  for  a  genuine  chip,  cheque, token, betting coupon, debit
    35  instrument, voucher or other instrument or indicia of value; or
    36    (c) any unfair gaming equipment.
    37    28. "Video lottery gaming" means any lottery game played  on  a  video
    38  lottery  terminal,  which  consists  of multiple players competing for a
    39  chance to win a random drawn prize pursuant to section  sixteen  hundred

    40  seventeen-a  and  paragraph  five  of  subdivision  a of section sixteen
    41  hundred twelve of the tax law, as amended and implemented.
    42    29. "Voucher" means an  instrument  of  value  generated  by  a  video
    43  lottery  terminal  representing a monetary amount and/or play value owed
    44  to a customer at a  specific  video  lottery  terminal  based  on  video
    45  lottery gaming winnings and/or amounts not wagered.
    46    §  4.  The  penal  law  is  amended by adding ten new sections 225.55,
    47  225.60, 225.65, 225.70, 225.75, 225.80, 225.85,  225.90  and  225.95  to
    48  read as follows:
    49  § 225.55 Gaming fraud in the second degree.
    50    A  person  is  guilty  of gaming fraud in the second degree when he or
    51  she:

    52    1. with intent to defraud and in violation of the rules of the  casino
    53  gaming,  misrepresents,  changes  the  amount  bet or wagered on, or the
    54  outcome or possible outcome of the contest or event which is the subject
    55  of the bet or wager, or the amount or frequency of payment in the casino
    56  gaming; or
        S. 5883                            61                            A. 8101
 
     1    2. with intent to defraud,  obtains  anything  of  value  from  casino
     2  gaming without having won such amount by a bet or wager contingent ther-
     3  eon.
     4    Gaming fraud in the second degree is a class A misdemeanor.
     5  § 225.60 Gaming fraud in the first degree.

     6    A  person is guilty of gaming fraud in the first degree when he or she
     7  commits a gaming fraud in the second degree, and:
     8    1. The value of the benefit obtained exceeds one thousand dollars; or
     9    2. He or she has been previously convicted within the  preceding  five
    10  years  of any offense of which an essential element is the commission of
    11  a gaming fraud.
    12    Gaming fraud in the first degree is a class E felony.
    13  § 225.65 Use of counterfeit, unapproved  or  unlawful  wagering  instru-
    14             ments.
    15    A  person  is  guilty  of  use  of counterfeit, unapproved or unlawful
    16  wagering instruments when in playing or using any casino gaming designed
    17  to be played with, received or be operated by  chips,  cheques,  tokens,

    18  vouchers  or  other  wagering  instruments  approved  by the appropriate
    19  gaming regulatory authority, he or she knowingly  uses  chips,  cheques,
    20  tokens, vouchers or other wagering instruments other than those approved
    21  by  the  appropriate  gaming  regulating  authority and the state gaming
    22  agency or lawful coin or legal tender of the United States of America.
    23    Possession of more than one counterfeit, unapproved or unlawful wager-
    24  ing instrument described in this  section  is  presumptive  evidence  of
    25  possession thereof with knowledge of its character or contents.
    26    Use  of  counterfeit, unapproved or unlawful wagering instruments is a
    27  class A misdemeanor.
    28  § 225.70 Possession of unlawful gaming property in the third degree.

    29    A person is guilty of possession of unlawful gaming  property  in  the
    30  third  degree when he or she possesses, with intent to use such property
    31  to commit gaming fraud, unlawful gaming property  at  a  premises  being
    32  used for casino gaming.
    33    Possession  of unlawful gaming property in the third degree is a class
    34  A misdemeanor.
    35  § 225.75 Possession of unlawful gaming property in the second degree.
    36    A person is guilty of possession of unlawful gaming  property  in  the
    37  second degree when:
    38    1.  He  or  she  makes,  sells,  or possesses with intent to sell, any
    39  unlawful gaming property at a casino gaming facility, the value of which
    40  exceeds three hundred dollars, with intent that it be made available  to

    41  a person for unlawful use; or
    42    2.  He  or  she  commits possession of unlawful gaming property in the
    43  third degree as defined in section 225.70 of this article, and the  face
    44  value  of the improper substitute property exceeds five hundred dollars;
    45  or
    46    3. He or she commits the offense  of  possession  of  unlawful  gaming
    47  property  in  the  third degree and has been previously convicted within
    48  the preceding five years of any offense of which an essential element is
    49  possession of unlawful gaming property.
    50    Possession of unlawful gaming property in the second degree is a class
    51  E felony.
    52  § 225.80 Possession of unlawful gaming property in the first degree.

    53    A person is guilty of possession of unlawful gaming  property  in  the
    54  first degree when:
    55    1.  He or she commits the crime of unlawful possession of gaming prop-
    56  erty in the third degree as defined in section 225.70  of  this  article
        S. 5883                            62                            A. 8101
 
     1  and the face value of the improper substitute property exceeds one thou-
     2  sand dollars; or
     3    2.  He  or  she  commits  the offense of possession of unlawful gaming
     4  property in the second degree as defined in subdivision one  or  two  of
     5  section  225.75 of this article and has been previously convicted within
     6  the preceding five years of any offense of which an essential element is

     7  possession of unlawful gaming property.
     8    Possession of unlawful gaming property in the first degree is a  class
     9  D felony.
    10  § 225.85 Use of unlawful gaming property.
    11    A  person  is guilty of use of unlawful gaming property when he or she
    12  knowingly with intent to defraud uses  unlawful  gaming  property  at  a
    13  premises being used for casino gaming.
    14    Use of unlawful gaming property is a class E felony.
    15  § 225.90 Manipulation  of gaming outcomes at an authorized gaming estab-
    16             lishment.
    17    A person is guilty of manipulation of gaming outcomes at an authorized
    18  gaming establishment when he or she:
    19    1. Knowingly conducts, operates, deals or  otherwise  manipulates,  or

    20  knowingly  allows  to be conducted, operated, dealt or otherwise manipu-
    21  lated, cards, dice or gaming equipment or device, for themselves or  for
    22  another,  through  any  trick  or  sleight of hand performance, with the
    23  intent of deceiving or altering the elements of chance or normal  random
    24  selection  which  determines  the  result or outcome of the game, or the
    25  amount or frequency of the payment in a game; or
    26    2. Knowingly uses, conducts, operates, deals, or exposes for play,  or
    27  knowingly  allows  to be used, conducted, operated, dealt or exposed for
    28  play any cards, dice or gaming equipment or device, or  any  combination
    29  of  gaming  equipment or devices, which have in any manner been altered,

    30  marked or tampered with, or placed in a  condition,  or  operated  in  a
    31  manner,  the  result  of  which  tends  to deceive or tends to alter the
    32  elements of chance or normal random selection which determine the result
    33  of the game or outcome, or the amount or frequency of the payment  in  a
    34  game; or
    35    3.  Knowingly  uses,  or  possesses with the intent to use, any cards,
    36  dice or other gaming equipment or devices other than that provided by an
    37  authorized gaming operator for current use in a permitted gaming  activ-
    38  ity; or
    39    4.  Alters  or  misrepresents  the outcome of a game or other event on
    40  which bets or wagers have been made after the outcome is made  sure  but
    41  before it is revealed to players.

    42    Possession  of altered, marked or tampered with dice, cards, or gaming
    43  equipment or devices at an authorized gambling establishment is presump-
    44  tive evidence of possession thereof with knowledge of its  character  or
    45  contents  and  intention  to  use  such altered, marked or tampered with
    46  dice, cards, or  gaming  equipment  or  devices  in  violation  of  this
    47  section.
    48    Manipulation  of gaming outcomes at an authorized gaming establishment
    49  is a class A misdemeanor provided,  however,  that  if  the  person  has
    50  previously  been convicted of this crime within the past five years this
    51  crim shall be a class E felony.
    52  § 225.95 Unlawful manufacture, sale, distribution, marking, altering  or

    53             modification of equipment and devices associated with gaming.
    54    A  person is guilty of unlawful manufacture, sale, distribution, mark-
    55  ing, altering or modification of equipment and devices  associated  with
    56  gaming when if he or she:
        S. 5883                            63                            A. 8101
 
     1    1.  Manufactures,  sells  or  distributes  any  cards, chips, cheques,
     2  tokens, dice, vouchers, game or device and he or she knew or  reasonably
     3  should have known it was intended to be used to violate any provision of
     4  this article; or
     5    2. Marks, alters or otherwise modifies any associated gaming equipment
     6  or  device  in  a  manner that either affects the result of the wager by

     7  determining win  or  loss  or  alters  the  normal  criteria  of  random
     8  selection in a manner that affects the operation of a game or determines
     9  the  outcome  of  a  game,  and he or she knew or reasonably should have
    10  known that it was intended to be used to violate any provision  of  this
    11  article.
    12    Unlawful manufacture, sale, distribution, marking, altering or modifi-
    13  cation  of  equipment  and  devices  associated with gaming is a class A
    14  misdemeanor provided, however, that if the person  has  previously  been
    15  convicted  of this crime within the past five years this crim shall be a
    16  class E felony.
    17    § 5. Section 109-a of the racing, pari-mutuel  wagering  and  breeding
    18  law is REPEALED and a new section 109-a is added to read as follows:

    19    §  109-a.  Separate  board for facility siting.   The commission shall
    20  establish a separate board to be known as the New York  gaming  facility
    21  location board to perform designated functions under article thirteen of
    22  this chapter, the following provisions shall apply to the board:
    23    1.  The commission shall select five members and name the chair of the
    24  board. Each member of the board shall be a resident of the state of  New
    25  York.  No  member  of  the legislature or person holding any elective or
    26  appointive office in federal, state or local government shall be  eligi-
    27  ble to serve as a member of the board.
    28    2.  Qualifications of members. Members of the board shall each possess

    29  no less than ten years of responsible experience in fiscal  matters  and
    30  shall have any one or more of the following qualifications:
    31    (a)  significant  service  as  an  accountant  economist, or financial
    32  analyst experienced in finance or economics;
    33    (b) significant service in an academic field relating  to  finance  or
    34  economics;
    35    (c)  significant  service  and knowledge of the commercial real estate
    36  industry; or
    37    (d) significant service as an executive  with  fiduciary  responsibil-
    38  ities in charge of a large organization or foundation.
    39    3. No member of the board:
    40    (a)  may  have  a  close familial or business relationship to a person
    41  that holds a license under this chapter;

    42    (b) may have any direct or indirect financial interest, ownership,  or
    43  management, including holding any stocks, bonds, or other similar finan-
    44  cial interests in any gaming activities, including horse racing, lottery
    45  or gambling;
    46    (c)  may  receive or share in, directly or indirectly, the receipts or
    47  proceeds of any gaming activities, including horse  racing,  lottery  or
    48  gambling;
    49    (d) may have a beneficial interest in any contract for the manufacture
    50  or  sale  of  gaming devices, the conduct of any gaming activity, or the
    51  provision of any independent consulting services in connection with  any
    52  establishment licensed under this chapter.
    53    4.  Board  members  are  entitled  to  actual  and  necessary expenses

    54  incurred in the discharge of their duties but may  not  receive  compen-
    55  sation for their service on the board.
    56    5. (a) The commission shall provide staff to the board.
        S. 5883                            64                            A. 8101
 
     1    (b)  The  board  shall  contract with an outside consultant to provide
     2  analysis of the gaming industry and to support the board's comprehensive
     3  review and evaluation of the applications submitted  to  the  board  for
     4  gaming facility licenses.
     5    (c)  The  board may contract with attorneys, accountants, auditors and
     6  financial and other experts to render necessary services.
     7    (d) All other state agencies shall cooperate with and assist the board

     8  in the fulfillment of its duties under this article and may render  such
     9  services to the board within their respective functions as the board may
    10  reasonably request.
    11    6.  Utilizing the powers and duties prescribed for it by article thir-
    12  teen of this chapter, the board  shall  select,  through  a  competitive
    13  process  consistent with provisions of article thirteen of this chapter,
    14  not more than four gaming facility license applicants.   Such  selectees
    15  shall be authorized to receive a gaming facility license, if found suit-
    16  able  by  the  commission.  The  board  may select another applicant for
    17  authorization to be licensed as a gaming facility if a previous selectee
    18  fails to meet licensing thresholds, is revoked or surrenders  a  license

    19  opportunity.
    20    §  6.  Subdivision  2  of  section  99-h  of the state finance law, as
    21  amended by section 1 of part V of chapter 59 of the  laws  of  2006,  is
    22  amended to read as follows:
    23    2.  Such  account shall consist of all revenues resulting from tribal-
    24  state compacts executed pursuant to article two  of  the  executive  law
    25  [and],  a  tribal-state compact with the St. Regis Mohawk tribe executed
    26  pursuant to chapter five hundred ninety of the laws of two thousand four
    27  and the Oneida Settlement Agreement referenced in section eleven of  the
    28  executive law.
    29    §  7.  Subdivision  3  of  section  99-h  of the state finance law, as
    30  amended by section 1 of part W of chapter 60 of the  laws  of  2011,  is
    31  amended to read as follows:

    32    3.  Moneys of the account, following the segregation of appropriations
    33  enacted by the legislature, shall be available  for  purposes  including
    34  but  not limited to: (a) reimbursements or payments to municipal govern-
    35  ments that host tribal casinos pursuant to a  tribal-state  compact  for
    36  costs  incurred  in connection with services provided to such casinos or
    37  arising as a result thereof, for economic development opportunities  and
    38  job expansion programs authorized by the executive law; provided, howev-
    39  er,  that  for  any  gaming facility located in the city of Buffalo, the
    40  city of Buffalo shall receive a minimum of twenty-five  percent  of  the
    41  negotiated percentage of the net drop from electronic gaming devices the
    42  state  receives  pursuant  to the compact, and provided further that for
    43  any gaming facility located in the city  of  Niagara  Falls,  county  of

    44  Niagara a minimum of twenty-five percent of the negotiated percentage of
    45  the  net drop from electronic gaming devices the state receives pursuant
    46  to the compact shall be distributed in accordance with subdivision  four
    47  of  this  section,  and  provided  further  that for any gaming facility
    48  located in the county or counties of Cattaraugus, Chautauqua or  Allega-
    49  ny,  the  municipal  governments of the state hosting the facility shall
    50  collectively receive a minimum of twenty-five percent of the  negotiated
    51  percentage  of  the  net  drop  from electronic gaming devices the state
    52  receives pursuant to the compact; and provided further that pursuant  to
    53  chapter  five hundred ninety of the laws of two thousand four, a minimum
    54  of twenty-five percent of the revenues received by the state pursuant to
    55  the state's compact with the St. Regis Mohawk tribe shall be made avail-

    56  able to the counties of Franklin and St. Lawrence, and affected towns in
        S. 5883                            65                            A. 8101
 
     1  such counties. Each such county and its  affected  towns  shall  receive
     2  fifty  percent  of  the moneys made available by the state; and provided
     3  further that the state shall annually make twenty-five  percent  of  the
     4  negotiated  percentage of the net drop from all gaming devices the state
     5  actually receives pursuant to the Oneida Settlement Agreement  confirmed
     6  by  section  eleven  of  the executive law as available to the county of
     7  Oneida, and a sum of three and one-half million dollars to the county of
     8  Madison. Additionally, the state shall distribute for a period of  nine-

     9  teen and one-quarter years, an additional annual sum of two and one-half
    10  million  dollars to the county of Oneida.  Additionally, the state shall
    11  distribute the one-time eleven million dollar payment  received  by  the
    12  state  pursuant  to such agreement with the Oneida Nation of New York to
    13  the county of Madison by wire transfer upon receipt of such  payment  by
    14  the  state;  and  (b)  support  and  services  of treatment programs for
    15  persons suffering from gambling addictions. Moneys  not  segregated  for
    16  such  purposes  shall be transferred to the general fund for the support
    17  of government during the fiscal year in which they are received.
    18    § 7-a. Subdivision 3 of section 99-h of  the  state  finance  law,  as
    19  amended  by  section  1 of part QQ of chapter 59 of the laws of 2009, is

    20  amended to read as follows:
    21    3. Moneys of the account, following appropriation by the  legislature,
    22  shall  be  available  for  purposes  including  but  not limited to: (a)
    23  reimbursements or payments to municipal  governments  that  host  tribal
    24  casinos  pursuant  to  a  tribal-state  compact  for  costs  incurred in
    25  connection with services provided to such casinos or arising as a result
    26  thereof,  for  economic  development  opportunities  and  job  expansion
    27  programs  authorized  by  the executive law; provided, however, that for
    28  any gaming facility located in the city of Buffalo, the city of  Buffalo
    29  shall  receive  a  minimum  of  twenty-five  percent  of  the negotiated
    30  percentage of the net drop from  electronic  gaming  devices  the  state
    31  receives  pursuant  to  the  compact,  and provided further that for any

    32  gaming facility located in the city of Niagara Falls, county of  Niagara
    33  a minimum of twenty-five percent of the negotiated percentage of the net
    34  drop  from  electronic gaming devices the state receives pursuant to the
    35  compact shall be distributed in accordance with subdivision four of this
    36  section, and provided further that for any gaming  facility  located  in
    37  the  county  or  counties  of  Cattaraugus,  Chautauqua or Allegany, the
    38  municipal governments of the state hosting the  facility  shall  collec-
    39  tively  receive  a  minimum  of  twenty-five  percent  of the negotiated
    40  percentage of the net drop from  electronic  gaming  devices  the  state
    41  receives  pursuant to the compact; and provided further that pursuant to
    42  chapter five hundred ninety of the laws of two thousand four, a  minimum
    43  of twenty-five percent of the revenues received by the state pursuant to

    44  the state's compact with the St. Regis Mohawk tribe shall be made avail-
    45  able to the counties of Franklin and St. Lawrence, and affected towns in
    46  such  counties.  Each  such  county and its affected towns shall receive
    47  fifty percent of the moneys made available by the  state;  and  provided
    48  further  that  the  state shall annually make twenty-five percent of the
    49  negotiated percentage of the net drop from all gaming devices the  state
    50  actually  receives  pursuant  to  the  Oneida  Settlement  Agreement  as
    51  confirmed by section eleven of the executive law  as  available  to  the
    52  county of Oneida, and a sum of three and one-half million dollars to the
    53  county of Madison. Additionally, the state shall distribute for a period

    54  of  nineteen  and one-quarter years, an additional annual sum of two and
    55  one-half million dollars to the county of  Oneida.    Additionally,  the
    56  state  shall  distribute  the  one-time  eleven  million  dollar payment
        S. 5883                            66                            A. 8101
 
     1  received by the state pursuant to such agreement with the Oneida  Nation
     2  of  New  York  to the county of Madison by wire transfer upon receipt of
     3  such payment by the state; and (b) support  and  services  of  treatment
     4  programs  for  persons  suffering  from  gambling addictions. Moneys not
     5  appropriated for such purposes shall be transferred to the general  fund
     6  for  the  support of government during the fiscal year in which they are
     7  received.

     8    § 8. Subdivision 3 of section  99-h  of  the  state  finance  law,  as
     9  amended  by  section 23 of part HH of chapter 57 of the laws of 2013, is
    10  amended to read as follows:
    11    3. Moneys of the account, following the segregation of  appropriations
    12  enacted  by  the  legislature, shall be available for purposes including
    13  but not limited to: (a) reimbursements or payments to municipal  govern-
    14  ments  that  host  tribal casinos pursuant to a tribal-state compact for
    15  costs incurred in connection with services provided to such  casinos  or
    16  arising  as a result thereof, for economic development opportunities and
    17  job expansion programs authorized by the executive law; provided, howev-
    18  er, that for any gaming facility  located  in  the  county  of  Erie  or
    19  Niagara,  the  municipal  governments hosting the facility shall collec-

    20  tively receive a  minimum  of  twenty-five  percent  of  the  negotiated
    21  percentage  of  the  net  drop  from electronic gaming devices the state
    22  receives pursuant to the compact  and  provided  further  that  for  any
    23  gaming  facility located in the county or counties of Cattaraugus, Chau-
    24  tauqua or Allegany, the municipal governments of the state  hosting  the
    25  facility  shall collectively receive a minimum of twenty-five percent of
    26  the negotiated percentage of the net drop from electronic gaming devices
    27  the state receives pursuant to the compact; and  provided  further  that
    28  pursuant  to  chapter  five  hundred  ninety of the laws of two thousand
    29  four, a minimum of twenty-five percent of the revenues received  by  the
    30  state  pursuant  to  the state's compact with the St. Regis Mohawk tribe
    31  shall be made available to the counties of Franklin  and  St.  Lawrence,

    32  and  affected  towns in such counties. Each such county and its affected
    33  towns shall receive fifty percent of the moneys made  available  by  the
    34  state;  and  provided further that the state shall annually make twenty-
    35  five percent of the negotiated percentage  of  the  net  drop  from  all
    36  gaming  devices  the  state  actually  receives  pursuant  to the Oneida
    37  Settlement Agreement confirmed by section eleven of  the  executive  law
    38  available  to  the  county  of  Oneida,  and a sum of three and one-half
    39  million dollars to the county of Madison. Additionally, the state  shall
    40  distribute,  for  a  period  of nineteen and one-quarter years, an addi-
    41  tional annual sum of two and one-half million dollars to the  county  of

    42  Oneida.  Additionally,  the  state  shall distribute the one-time eleven
    43  million dollar payment actually received by the state  pursuant  to  the
    44  Oneida  Settlement  Agreement  to the county of Madison by wire transfer
    45  upon receipt of such payment by the state; and (b) support and  services
    46  of  treatment  programs  for persons suffering from gambling addictions.
    47  Moneys not segregated for such purposes  shall  be  transferred  to  the
    48  general  fund  for  the  support of government during the fiscal year in
    49  which they are received.
    50    § 9. Section 99-h of the state finance law, as amended by chapter  747
    51  of  the laws of 2006, is amended by adding a new subdivision 3-a to read
    52  as follows:
    53    3-a. Ten percent of any of the funds actually received  by  the  state

    54  pursuant to the tribal-state compacts and agreements described in subdi-
    55  vision  two  of  this  section  that  are retained in the fund after the
    56  distributions required by subdivision three of this section,  but  prior
        S. 5883                            67                            A. 8101
 
     1  to  the  transfer of unsegregated moneys to the general fund required by
     2  such subdivision, shall be distributed to counties  in  each  respective
     3  exclusivity  zone provided they do not otherwise receive a share of said
     4  revenues pursuant to this section. Such distribution shall be made among
     5  such  counties  on  a  per capita basis, excluding the population of any
     6  municipality that receives a distribution pursuant to subdivision  three

     7  of this section.
     8    § 10. The state finance law is amended by adding a new section 97-nnnn
     9  to read as follows:
    10    § 97-nnnn.  Commercial gaming revenue fund.  1. There is hereby estab-
    11  lished  in  the joint custody of the comptroller and the commissioner of
    12  taxation and finance an account in  the  miscellaneous  special  revenue
    13  fund to be known as the "commercial gaming revenue fund".
    14    2.  Such account shall consist of all revenues from all taxes and fees
    15  imposed by article thirteen of  the  racing,  pari-mutuel  wagering  and
    16  breeding  law;  any interest and penalties imposed by the New York state
    17  gaming commission relating to those taxes; the percentage of  the  value
    18  of  expired  gaming  related  obligations;  and all penalties levied and

    19  collected by the commission. Additionally, the state  gaming  commission
    20  shall  pay  into  the  account  any  appropriate  funds,  cash or prizes
    21  forfeited from gambling activity.
    22    3. Moneys of the account shall be available as follows, unless  other-
    23  wise  specified  by the upstate New York gaming economic development act
    24  of two thousand thirteen, following appropriation by the legislature:
    25    a. eighty percent of the moneys in such fund shall be appropriated  or
    26  transferred only for elementary and secondary education or real property
    27  tax relief.
    28    b.  ten  percent  of  the moneys in such fund shall be appropriated or
    29  transferred from the commercial gaming revenue fund equally between  the
    30  host municipality and host county.

    31    c.  ten  percent  of  the  moneys  in  such fund, as attributable to a
    32  specific licensed gaming facility, shall be appropriated or  transferred
    33  from  the  commercial  gaming  revenue  fund  among  counties within the
    34  region, as defined by section one thousand  three  hundred  ten  of  the
    35  racing, pari-mutuel wagering and breeding law, hosting said facility for
    36  the  purpose  of  real property tax relief and for education assistance.
    37  Such distribution shall be made among  the  counties  on  a  per  capita
    38  basis, subtracting the population of host municipality and county.
    39    4.  a.  As  used  in this section, the term "base year gaming revenue"
    40  shall mean the sum of all revenue generated to  support  education  from

    41  video  lottery  gaming as defined by section sixteen hundred seventeen-a
    42  of the tax law in the twelve  months  preceding  the  operation  of  any
    43  gaming facility pursuant to either article thirteen of the racing, pari-
    44  mutuel  wagering  and  breeding  law  or  pursuant  to paragraph four of
    45  section one thousand six hundred seventeen-a of the tax law.
    46    b. Amounts transferred in any year to support elementary and secondary
    47  education shall be calculated as follows:
    48    (i) an amount equal to the positive difference, if  any,  between  the
    49  base  year gaming revenue amount and the sum of all revenue generated to
    50  support education from  video  lottery  gaming  as  defined  by  section

    51  sixteen  hundred  seventeen-a  of the tax law in the current fiscal year
    52  provided that such positive amount, if any, shall be transferred to  the
    53  state lottery fund; and
    54    (ii)  the  amount of revenue collected in the prior state fiscal year,
    55  to be distributed pursuant to paragraph a of subdivision three  of  this
        S. 5883                            68                            A. 8101
 
     1  section,  and  in excess of any amounts transferred pursuant to subpara-
     2  graph (i) of this paragraph in such prior fiscal year, if any.
     3    c.  Notwithstanding  any  provision  of  law  to the contrary, amounts
     4  appropriated or transferred from  the  commercial  gaming  revenue  fund

     5  pursuant  to  subparagraph  (ii) of this paragraph shall not be included
     6  in: (i) the allowable growth amount computed pursuant to paragraph dd of
     7  subdivision one of section thirty-six hundred two of the education  law,
     8  (ii)  the preliminary growth amount computed pursuant to paragraph ff of
     9  subdivision one of section thirty-six hundred two of the education  law,
    10  and  (iii) the allocable growth amount computed pursuant to paragraph gg
    11  of subdivision one of section thirty-six hundred two  of  the  education
    12  law.
    13    5. Notwithstanding the foregoing, monies received pursuant to:
    14    a.  sections  one  thousand  three hundred forty-five and one thousand
    15  three hundred forty-eight of this article shall be exclusively appropri-

    16  ated to the office of alcoholism and substance abuse services to be used
    17  for problem gambling education and treatment purposes.
    18    b. section one thousand three hundred forty-nine of this article shall
    19  be exclusively appropriated to the commission  for  regulatory  investi-
    20  gations.
    21    c.  section  one thousand three hundred fifty of this article shall be
    22  exclusively appropriated to the commission for costs regulation.
    23    § 11. The penal law is amended by adding a new section 156.40 to  read
    24  as follows:
    25  § 156.40 Operating an unlawful electronic sweepstakes.
    26    1.  As  used  in this section the following words and terms shall have
    27  the following meanings:
    28    (a) "Electronic machine or device" means a mechanically,  electrically

    29  or  electronically  operated  machine or device that is owned, leased or
    30  otherwise possessed by a sweepstakes sponsor or promoter, or  any  spon-
    31  sors, promoters, partners, affiliates, subsidiaries or contractors ther-
    32  eof;  that  is  intended  to be used by a sweepstakes entrant; that uses
    33  energy; and that displays the results of a game entry or game outcome to
    34  a participant on a screen or other mechanism  at  a  business  location,
    35  including a private club; provided, that an electronic machine or device
    36  may, without limitation:
    37    (1) be server-based;
    38    (2)  use  a  simulated game terminal as a representation of the prizes
    39  associated with the results of the sweepstakes entries;

    40    (3) utilize software such that the simulated game influences or deter-
    41  mines the winning or value of the prize;
    42    (4) select prizes from a predetermined finite pool of entries;
    43    (5) utilize a mechanism that reveals the content  of  a  predetermined
    44  sweepstakes entry;
    45    (6) predetermine the prize results and stores those results for deliv-
    46  ery at the time the sweepstakes entry results are revealed;
    47    (7) utilize software to create a game result;
    48    (8)  require  deposit  of  any money, coin or token, or the use of any
    49  credit card, debit card, prepaid card or any other method of payment  to
    50  activate the electronic machine or device;
    51    (9)  require  direct payment into the electronic machine or device, or

    52  remote activation of the electronic machine or device;
    53    (10) require purchase of a related product having legitimate value;
    54    (11) reveal the prize incrementally, even though it may not  influence
    55  if a prize is awarded or the value of any prize awarded;
        S. 5883                            69                            A. 8101
 
     1    (12) determine and associate the prize with an entry or entries at the
     2  time the sweepstakes is entered; or
     3    (13)  be  a  slot  machine or other form of electrical, mechanical, or
     4  computer game.
     5    (b) "Enter" or "entry" means the act or  process  by  which  a  person
     6  becomes eligible to receive any prize offered in a sweepstakes.

     7    (c)  "Entertaining  display"  means any visual information, capable of
     8  being seen by a sweepstakes entrant, that takes the form of actual  game
     9  play or simulated game play.
    10    (d)  "Prize" means any gift, award, gratuity, good, service, credit or
    11  anything else of value, which may be transferred to  a  person,  whether
    12  possession of the prize is actually transferred, or placed on an account
    13  or other record as evidence of the intent to transfer the prize.
    14    (e) "Sweepstakes" means any game, advertising scheme or plan, or other
    15  promotion, which, with or without payment of any consideration, a person
    16  may  enter  to win or become eligible to receive any prize, the determi-
    17  nation of which is based upon chance.

    18    2. A person is guilty of operating an unlawful electronic  sweepstakes
    19  when  he or she knowingly possesses with the intent to operate, or place
    20  into operation, an electronic machine or device to:
    21    (a) conduct a sweepstakes through the use of an entertaining  display,
    22  including the entry process or the reveal of a prize; or
    23    (b)  promote  a  sweepstakes  that  is conducted through the use of an
    24  entertaining display, including the entry process or  the  reveal  of  a
    25  prize.
    26    3.  Nothing  in  this  section  shall be construed to make illegal any
    27  activity which is lawfully conducted as the New York state  lottery  for
    28  education  as authorized by article thirty-four of the tax law; pari-mu-

    29  tuel wagering on horse races as authorized by articles two, three, four,
    30  five-A, and ten of the racing, pari-mutuel wagering  and  breeding  law;
    31  the  game  of  bingo as authorized pursuant to article fourteen-H of the
    32  general municipal law; games of chance as authorized pursuant to article
    33  nine-A of the general municipal law; gaming  as  authorized  by  article
    34  thirteen of the racing, pari-mutuel wagering and breeding law; or pursu-
    35  ant to the federal Indian Gaming Regulatory Act.
    36    Operating an unlawful electronic sweepstakes is a class E felony.
    37    § 12. The legislature hereby finds that long-standing disputes between
    38  the  Oneida Nation of New York and the State of New York, Madison County
    39  and Oneida County, have generated litigation in state and federal courts

    40  regarding property and other taxation, the status of Oneida Nation lands
    41  and transfer of such lands to the United States to be held in trust  for
    42  the  Oneida  Nation,  and  that such litigation and disputes have caused
    43  decades of unrest and uncertainty for the citizens and residents of  the
    44  Central  New  York  region  of this state. The legislature further finds
    45  that it is in the best interests of all citizens,  residents  and  poli-
    46  tical  subdivisions  of  this  state to remove any uncertainty that such
    47  litigation or disputes have created regarding the title to and jurisdic-
    48  tional status of land within the state.  The legislature recognizes that
    49  negotiated settlement of these disputes will  facilitate  a  cooperative
    50  relationship  between  the  state,  the  counties and the Oneida Nation.
    51  Therefore, the legislature declares that the  following  provisions  are

    52  enacted  to  implement the settlement agreement that has been negotiated
    53  and executed by the governor on behalf of the people of this state.
    54    § 13. Section 11 of the executive law is REPEALED and a new section 11
    55  is added to read as follows:
        S. 5883                            70                            A. 8101
 
     1    § 11. Indian settlement agreements. 1.  Oneida  settlement  agreement.
     2  Notwithstanding  any other provision of law, upon filing with the secre-
     3  tary of state, the settlement agreement executed between  the  governor,
     4  the  counties  of  Oneida and Madison, and the Oneida Nation of New York
     5  dated  the  sixteenth  day of May, two thousand thirteen, to be known as
     6  the Oneida Settlement  Agreement,  including,  without  limitation,  the

     7  provisions contained therein relating to arbitration and judicial review
     8  in  state or federal courts and, for the sole purpose thereof, a limited
     9  waiver of the state's Eleventh Amendment sovereign immunity  from  suit,
    10  shall  upon  its  effective date be deemed approved, ratified, validated
    11  and confirmed by the legislature. It is the intention of the legislature
    12  in enacting this section to ensure that the settlement  agreement  shall
    13  be fully enforceable in all respects as to the rights, benefits, respon-
    14  sibilities and privileges of all parties thereto.
    15    §  14.  Notwithstanding any inconsistent provision of law, the Nation-
    16  State compact entered into by the State on April 16, 1993  and  approved
    17  by  the  United States Department of the Interior on June 4, 1993, which

    18  approval was published at 58 Fed. Reg. 33160 (June 15, 1993), is  deemed
    19  ratified, validated and confirmed nunc pro tunc by the legislature.
    20    § 15. Sections 2 and 3 of the Indian law are renumbered sections 3 and
    21  4 and a new section 2 is added to read as follows:
    22    § 2. New York state Indian nations and tribes. The term "Indian nation
    23  or  tribe"  means  one of the following New York state Indian nations or
    24  tribes: Cayuga Nation, Oneida Nation of New York, Onondaga Nation, Poos-
    25  patuck or Unkechauge Nation, Saint Regis Mohawk Tribe, Seneca Nation  of
    26  Indians, Shinnecock Indian Nation, Tonawanda Band of Seneca and Tuscaro-
    27  ra Nation.
    28    §  16. The Indian law is amended by adding a new section 16 to read as
    29  follows:

    30    §  16.  Indian  settlement  agreements.  Notwithstanding   any   other
    31  provision  of  law,  the  provisions  of the Oneida Settlement Agreement
    32  referenced in section eleven of the executive law  shall  be  deemed  to
    33  supersede any inconsistent laws and regulations.
    34    §  17.  Subdivision  18  of  section  282  of the tax law, as added by
    35  section 3 of part K of chapter 61 of the laws of  2005,  is  amended  to
    36  read as follows:
    37    18. "Indian nation or tribe" means one of the following New York state
    38  Indian  nations  or tribes: Cayuga [Indian] Nation [of New York], Oneida
    39  [Indian] Nation of New York, Onondaga Nation [of Indians], Poospatuck or
    40  Unkechauge Nation, [St.] Saint Regis  Mohawk  Tribe,  Seneca  Nation  of

    41  Indians,  Shinnecock  [Tribe] Indian Nation, Tonawanda Band of [Senecas]
    42  Seneca and Tuscarora Nation [of Indians].
    43    § 18. Subdivision 14 of section 470  of  the  tax  law,  as  added  by
    44  section  1  of  part  K of chapter 61 of the laws of 2005, is amended to
    45  read as follows:
    46    14. "Indian nation or tribe." One of  the  following  New  York  state
    47  Indian  nations  or tribes: Cayuga [Indian] Nation [of New York], Oneida
    48  [Indian] Nation of New York, Onondaga Nation [of Indians], Poospatuck or
    49  Unkechauge Nation, [St.] Saint Regis  Mohawk  Tribe,  Seneca  Nation  of
    50  Indians,  Shinnecock  [Tribe] Indian Nation, Tonawanda Band of [Senecas]

    51  Seneca and Tuscarora Nation [of Indians].
    52    § 19. Intentionally omitted.
    53    § 20. Intentionally omitted.
    54    § 21. Intentionally omitted.
    55    § 22. Intentionally omitted.
    56    § 23. Intentionally omitted.
        S. 5883                            71                            A. 8101
 
     1    § 24. Intentionally omitted.
     2    § 25. Section 104 of the racing, pari-mutuel wagering and breeding law
     3  is amended by adding a new subdivision 21 to read as follows:
     4    21. The commission shall promptly make available for public inspection
     5  and copying via electronic connection to the commission's website a copy
     6  of any report received from the New York state board of elections pursu-
     7  ant to article fourteen of the election law.

     8    §  26. Section 1617-a of the tax law is amended by adding a new subdi-
     9  vision g to read as follows:
    10    g.  Every video lottery gaming license,  and  every  renewal  license,
    11  shall  be  valid  for  a  period of five years, except that video gaming
    12  licenses issued before the effective date of this subdivision  shall  be
    13  for a term expiring on June thirtieth, two thousand fourteen.
    14    The  gaming  commission  may decline to renew any license after notice
    15  and an opportunity for hearing if it determines that:
    16    (1) the licensee has violated section one thousand six  hundred  seven
    17  of this article;
    18    (2)  the  licensee  has  violated any rule, regulation or order of the
    19  gaming commission;

    20    (3) the applicant or its officers, directors or significant stockhold-
    21  ers, as determined by the gaming commission, have been  convicted  of  a
    22  crime involving moral turpitude; or
    23    (4)  that  the  character or fitness of the licensee and its officers,
    24  directors, and significant stockholders, as  determined  by  the  gaming
    25  commission  is  such  that  the  participation of the applicant in video
    26  lottery gaming or related activities  would  be  inconsistent  with  the
    27  public  interest, convenience or necessity or with the best interests of
    28  video gaming generally.
    29    (h) The gaming commission, subject to notice and  an  opportunity  for
    30  hearing,  may  revoke,  suspend,  and condition the license of the video

    31  gaming licensee, order  the  video  gaming  licensee  to  terminate  the
    32  continued appointment, position or employment of officers and directors,
    33  or  order  the video gaming licensee to require significant stockholders
    34  to divest themselves of all interests in the video gaming licensee.
    35    § 27. Clause (G) of subparagraph (ii) of paragraph 1 of subdivision  b
    36  of section 1612 of the tax law is REPEALED and a new clause (G) is added
    37  to read as follows:
    38    (G) Notwithstanding any provision to the contrary, when a vendor track
    39  is  located  within regions one, two, or five of development zone two as
    40  defined by section thirteen  hundred  ten  of  the  racing,  pari-mutuel
    41  wagering and breeding law, such vendor track shall receive an additional

    42  commission  at  a rate equal to the percentage of revenue wagered at the
    43  vendor track after payout for prizes pursuant to this chapter  less  ten
    44  percent  retained  by  the commission for operation, administration, and
    45  procurement purposes and payment of the vendor's fee,  marketing  allow-
    46  ance,  and capital award paid pursuant to this chapter and the effective
    47  tax rate paid on all gross gaming revenue  paid  by  a  gaming  facility
    48  within the same region pursuant to section thirteen hundred fifty-one of
    49  the  racing,  pari-mutuel  wagering  and  breeding law.   The additional
    50  commission shall be paid to the vendor track within sixty days after the
    51  conclusion of the state fiscal year based on the  calculated  percentage

    52  during the previous fiscal year.
    53    § 28. Intentionally omitted.
    54    § 29. Intentionally omitted.
        S. 5883                            72                            A. 8101
 
     1    §  30.    The opening paragraph of subparagraph (ii) of paragraph 1 of
     2  subdivision b of section 1612 of the tax law, as amended by section 6 of
     3  part K of chapter 57 of the laws of 2010, is amended to read as follows:
     4    less a vendor's fee the amount of which is to be paid for serving as a
     5  lottery agent to the track operator of a vendor track or the operator of
     6  a resort facility:
     7    § 31.  Section 1 of part HH of chapter 57 of the laws of 2013 relating
     8  to  providing  for  the  administration  of  certain  funds and accounts
     9  related to the 2013-14 budget, is amended by adding a new subdivision 39

    10  to read as follows:
    11    39. Commercial gaming revenue fund:
    12    a. Commercial gaming revenue account.
    13    § 32. Subdivision a of section 1617-a of the tax law,  as  amended  by
    14  section  2  of part O-1 of chapter 57 of the laws of 2009, is amended to
    15  read as follows:
    16    a. The division of the lottery is hereby authorized to license, pursu-
    17  ant to rules and regulations to be promulgated by the  division  of  the
    18  lottery, the operation of video lottery gaming:
    19    (1)  at  Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs
    20  racetracks,
    21    (2) or at any other racetrack licensed pursuant to  article  three  of
    22  the  racing, pari-mutuel wagering and breeding law that are located in a
    23  county or counties in which video lottery  gaming  has  been  authorized

    24  pursuant  to  local  law,  excluding  the  licensed  racetrack  commonly
    25  referred to in article three of the  racing,  pari-mutuel  wagering  and
    26  breeding  law as the "New York state exposition" held in Onondaga county
    27  and the racetracks of the non-profit racing association known as Belmont
    28  Park racetrack and the Saratoga thoroughbred racetrack,
    29    (3) at facilities established, pursuant to a competitive process to be
    30  determined by the state gaming commission within regions one,  two,  and
    31  five  of  zone  two as established by section one thousand three hundred
    32  ten of the racing, pari-mutuel wagering and breeding law following local
    33  governmental consultation and consideration of market factors  including
    34  potential  revenue  impact,  anticipated  job  development  and  capital

    35  investment to be made. The facilities authorized pursuant to this  para-
    36  graph  shall  be deemed vendors for all purposes under this article, and
    37  need not be operated by licensed thoroughbred or harness racing  associ-
    38  ations or corporations.
    39    Such rules and regulations shall provide, as a condition of licensure,
    40  that  racetracks  to  be licensed are certified to be in compliance with
    41  all state and local fire and safety codes, that the division is afforded
    42  adequate space, infrastructure, and amenities consistent  with  industry
    43  standards  for  such  video  gaming operations as found at racetracks in
    44  other states, that racetrack employees  involved  in  the  operation  of
    45  video lottery gaming pursuant to this section are licensed by the racing
    46  and  wagering board, and such other terms and conditions of licensure as

    47  the division may establish. Notwithstanding any  inconsistent  provision
    48  of  law,  video  lottery  gaming at a racetrack pursuant to this section
    49  shall be deemed an approved activity for such racetrack under the  rele-
    50  vant  city,  county,  town,  or  village  land use or zoning ordinances,
    51  rules, or regulations. No entity  licensed  by  the  division  operating
    52  video  lottery  gaming  pursuant  to  this section may house such gaming
    53  activity in a structure deemed or approved by the  division  as  "tempo-
    54  rary"  for  a  duration  of longer than eighteen-months. Nothing in this
    55  section shall prohibit the division from licensing an entity to  operate
    56  video  lottery  gaming  at  an  existing racetrack as authorized in this
        S. 5883                            73                            A. 8101
 

     1  subdivision whether or not a different entity  is  licensed  to  conduct
     2  horse  racing  and  pari-mutuel  wagering  at such racetrack pursuant to
     3  article two or three of the racing, pari-mutuel  wagering  and  breeding
     4  law.
     5    The  division,  in  consultation  with  the racing and wagering board,
     6  shall establish standards for approval of the  temporary  and  permanent
     7  physical  layout and construction of any facility or building devoted to
     8  a video lottery gaming operation. In reviewing such application for  the
     9  construction  or  reconstruction of facilities related or devoted to the
    10  operation or housing of video lottery gaming operations,  the  division,
    11  in  consultation  with  the racing and wagering board, shall ensure that
    12  such facility:
    13    (1) possesses superior consumer amenities and conveniences to  encour-

    14  age and attract the patronage of tourists and other visitors from across
    15  the region, state, and nation.
    16    (2)  has  adequate  motor vehicle parking facilities to satisfy patron
    17  requirements.
    18    (3) has a physical layout and location that facilitates access to  and
    19  from the horse racing track portion of such facility to encourage patro-
    20  nage of live horse racing events that are conducted at such track.
    21    §  33.  Subparagraph  (ii)  of paragraph 1 of subdivision b of section
    22  1612 of the tax law is amended by adding a new clause (H-1) to  read  as
    23  follows:
    24    (H-1)  Notwithstanding  clauses  (A), (B), (C), (D), (E), (F), (G) and
    25  (H) of this subparagraph where the  vendor  is  authorized  pursuant  to
    26  paragraph  three of subdivision a of section sixteen hundred seventeen-a

    27  of this article, at a rate of forty percent of the total revenue wagered
    28  at the facility after  payout  for  prizes.  All  facilities  authorized
    29  pursuant  to paragraph three of subdivision a of section sixteen hundred
    30  seventeen-a of this article shall not be eligible for any vendor's capi-
    31  tal award but are entitled to the vendor's marketing  allowance  of  ten
    32  percent  authorized  by subparagraph (iii) of this paragraph. Facilities
    33  authorized by paragraph  three  of  subdivision  a  of  section  sixteen
    34  hundred seventeen-a of this article shall pay
    35    (i) an amount to horsemen for purses at the licensed racetracks in the
    36  region  that  will  assure  the  purse support from video lottery gaming

    37  facilities in the region to the licensed racetracks in the region to  be
    38  maintained  at  the same dollar levels realized in two thousand thirteen
    39  to be adjusted by the consumer price index for all urban  consumers,  as
    40  published  annually  by  the United States department of labor bureau of
    41  labor statistics; and
    42    (ii) amounts to the agricultural and New  York  state  horse  breeding
    43  development fund and the New York state thoroughbred breeding and devel-
    44  opment fund to maintain payments from video lottery gaming facilities in
    45  the  region  to  such  funds  to be maintained at the same dollar levels
    46  realized in two thousand thirteen to be adjusted by the  consumer  price
    47  index  for  all  urban  consumers,  as  published annually by the United

    48  States department of labor bureau of labor statistics.
    49    § 34. Section 54-l of the state finance law, as added by section 1  of
    50  part  J  of chapter 57 of the laws of 2011, paragraph b of subdivision 2
    51  as amended by section 1 of part EE of chapter 57 of the laws of 2013, is
    52  amended to read as follows:
    53    § 54-l. State assistance  to  eligible  cities  and  eligible  munici-
    54  palities  in  which a video lottery gaming facility is located. 1. Defi-
    55  nitions.  When used in this section, unless otherwise expressly stated:
        S. 5883                            74                            A. 8101
 
     1    a. "Eligible city" shall mean a city with a  population  equal  to  or
     2  greater  than one hundred twenty-five thousand and less than one million
     3  in which a video lottery gaming facility is located and operating as  of

     4  January  first,  two  thousand  nine pursuant to section sixteen hundred
     5  seventeen-a of the tax law.
     6    b.  "Eligible municipality" shall mean a county, city, town or village
     7  in which a video lottery gaming facility is located pursuant to  section
     8  sixteen hundred seventeen-a of the tax law that is not located in a city
     9  with a population equal to or greater than one hundred twenty-five thou-
    10  sand.
    11    c.  "Newly eligible city" shall mean a city with a population equal to
    12  or greater than one hundred  twenty-five  thousand  and  less  than  one
    13  million  in  which  a  video lottery gaming facility pursuant to section
    14  sixteen hundred seventeen-a of the tax law is located and which was  not
    15  operating as of January first, two thousand thirteen.

    16    d.  "Newly  eligible  municipality" shall mean a county, city, town or
    17  village in which a video lottery gaming facility is located pursuant  to
    18  section  sixteen  hundred seventeen-a of the tax law that is not located
    19  in a city with a population equal to or greater than one  hundred  twen-
    20  ty-five  thousand  and  which was not operating as of January first, two
    21  thousand thirteen.
    22    e. "Estimated net machine income" shall mean the estimated full annual
    23  value of total revenue wagered after payout for prizes for  games  known
    24  as  video  lottery gaming as authorized under article thirty-four of the
    25  tax law during the state fiscal year in which  state  aid  payments  are
    26  made pursuant to subdivision two of this section.

    27    2.  a. Within the amount appropriated therefor, an eligible city shall
    28  receive an amount equal to the state aid payment received in  the  state
    29  fiscal year commencing April first, two thousand eight from an appropri-
    30  ation for aid to municipalities with video lottery gaming facilities.
    31    b.  Within  the amounts appropriated therefor, eligible municipalities
    32  shall receive an amount equal to fifty-five percent  of  the  state  aid
    33  payment  received  in  the state fiscal year commencing April first, two
    34  thousand eight from an appropriation  for  aid  to  municipalities  with
    35  video lottery gaming facilities.
    36    c.  A  newly  eligible city shall receive a state aid payment equal to
    37  two percent of the "estimated net machine income" generated by  a  video
    38  lottery  gaming  facility  located in such eligible city. Such state aid

    39  payment shall not exceed twenty million dollars per eligible city.
    40    d. A newly eligible municipality shall receive  a  state  aid  payment
    41  equal  to two percent of the "estimated net machine income" generated by
    42  a video lottery gaming facility located within such newly eligible muni-
    43  cipality as follows: (i) twenty-five percent shall  be  apportioned  and
    44  paid  to  the county; and (ii) seventy-five percent shall be apportioned
    45  and paid on a pro rata basis to eligible municipalities, other than  the
    46  county,  based upon the population of such eligible municipalities. Such
    47  state aid payment shall not exceed twenty-five percent  of  an  eligible
    48  municipality's  total expenditures as reported in the statistical report

    49  of the comptroller in  the  preceding  state  fiscal  year  pursuant  to
    50  section thirty-seven of the general municipal law.
    51    3. a. State aid payments made to an eligible city or to a newly eligi-
    52  ble  city  pursuant to [paragraph] paragraphs a and c of subdivision two
    53  of this section shall be used to increase support for public schools  in
    54  such city.
    55    b.  State  aid  payments  made to [an] eligible [municipality] munici-
    56  palities and newly eligible municipalities pursuant to [paragraph] para-
        S. 5883                            75                            A. 8101
 
     1  graphs b and d of subdivision two of this section shall be used by  such

     2  eligible municipality to: (i) defray local costs associated with a video
     3  lottery gaming facility, or (ii) minimize or reduce real property taxes.
     4    4.  Payments of state aid pursuant to this section shall be made on or
     5  before June thirtieth of each state fiscal  year  to  the  chief  fiscal
     6  officer  of  each  eligible city and each eligible municipality on audit
     7  and warrant of the state comptroller out of moneys appropriated  by  the
     8  legislature  for such purpose to the credit of the local assistance fund
     9  in the general fund of the state treasury.
    10    § 35. Section 1 of chapter 50 of the laws of  2013,  State  Operations
    11  budget,  is  amended  by  repealing  the  items hereinbelow set forth in
    12  brackets and by adding to such section the other  items  underscored  in
    13  this section.
    14                      NEW YORK STATE GAMING COMMISSION

    15                          STATE OPERATIONS 2013-14
 
    16  For payment according to the following schedule:
 
    17                                          APPROPRIATIONS  REAPPROPRIATIONS
 
    18    Special Revenue Funds - Other ......   [111,604,700]                 0
    19                                            111,772,700
    20                                        ----------------  ----------------
    21      All Funds ........................   [111,604,700]                 0
    22                                            111,772,700
    23                                        ================  ================
 
    24                                  SCHEDULE
 
    25  ADMINISTRATION OF GAMING COMMISSION PROGRAM ... [1,000,000]    1,168,000
    26                                              --------------
 
    27    Special Revenue Funds - Other

    28    Miscellaneous Special Revenue Fund
    29    Commercial Gaming Revenue Account
 
    30  For  services  and  expenses  related to the
    31    administration  and   operation   of   the
    32    commercial gaming revenue account, provid-
    33    ing  that moneys hereby appropriated shall
    34    be  available  to  the  program   net   of
    35    refunds, rebates, reimbursements and cred-
    36    its.  A  portion of this appropriation may
    37    be used for suballocation to the New  York
    38    state  gaming  facility  location board or
    39    other agencies for services and  expenses,
    40    including fringe benefits.
    41  Notwithstanding  any provision of law to the
    42    contrary, the  money  hereby  appropriated

    43    may  not  be,  in whole or in part, inter-
    44    changed with any other appropriation with-
    45    in the  state  gaming  commission,  except
    46    those  appropriations that fund activities
    47    related to the  administration  of  gaming
    48    commission program.
        S. 5883                            76                            A. 8101
 
     1                              PERSONAL SERVICE
 
     2  Personal service--regular ........................ 100,000
     3      Amount available for personal service ........ 100,000
     4                                              --------------
 
     5                             NONPERSONAL SERVICE
 

     6  Travel ............................................ 10,000
     7  Fringe benefits ................................... 55,000
     8  Indirect costs ..................................... 3,000
     9                                              --------------
    10      Amount available for nonpersonal service ...... 68,000
    11                                              --------------
 
    12    Special Revenue Funds - Other
    13    Miscellaneous Special Revenue Fund
    14    New York State Gaming Commission Account
 
    15  For  services  and  expenses  related to the
    16    administration and operation of the admin-
    17    istration of  gaming  commission  program,
    18    providing  that moneys hereby appropriated
    19    shall be available to the program  net  of
    20    refunds, rebates, reimbursements and cred-

    21    its.
    22  Notwithstanding  any provision of law to the
    23    contrary, the  money  hereby  appropriated
    24    may  not  be,  in whole or in part, inter-
    25    changed with any other appropriation with-
    26    in the  state  gaming  commission,  except
    27    those  appropriations that fund activities
    28    related to the  administration  of  gaming
    29    commission program.
    30  Notwithstanding  any  other provision of law
    31    to the contrary, the OGS  Interchange  and
    32    Transfer  Authority and the IT Interchange
    33    and Transfer Authority as defined  in  the
    34    2013-14 state fiscal year state operations
    35    appropriation   for  the  budget  division
    36    program of the division of the budget, are
    37    deemed fully  incorporated  herein  and  a
    38    part  of  this  appropriation  as if fully
    39    stated.
 
    40                              PERSONAL SERVICE
 

    41  Personal service--regular ........................ 527,000
    42  Holiday/overtime compensation ..................... 10,000
    43                                              --------------
    44    Amount available for personal service .......... 537,000
    45                                              --------------
        S. 5883                            77                            A. 8101
 
     1                             NONPERSONAL SERVICE
 
     2  Supplies and materials ............................ 13,000
     3  Travel ............................................ 80,000
     4  Contractual services .............................. 99,000
     5  Equipment ......................................... 30,000
     6  Fringe benefits .................................. 228,000
     7  Indirect costs .................................... 13,000
     8                                              --------------

     9    Amount available for nonpersonal service ....... 463,000
    10                                              --------------
 
    11    § 36. Section 104 of the racing, pari-mutuel wagering and breeding law
    12  is amended by adding a new subdivision 22 to read as follows:
    13    22.  The  commission  shall  annually  conduct  an evaluation of video
    14  lottery gaming to consider the  various  competitive  factors  impacting
    15  such  industry  and  shall  consider  administrative changes that may be
    16  necessary to ensure a competitive  industry  and  preserve  its  primary
    17  function of raising revenue for public education.
    18    §  37. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
    19  of section 1612 of the tax law, as amended by chapter 454 of the laws of
    20  2012, is amended to read as follows:

    21    (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)  and  (G)  of
    22  this  subparagraph, the track operator of a vendor track shall be eligi-
    23  ble for a vendor's capital award of up to  four  percent  of  the  total
    24  revenue  wagered at the vendor track after payout for prizes pursuant to
    25  this chapter, which  shall  be  used  exclusively  for  capital  project
    26  investments  to improve the facilities of the vendor track which promote
    27  or encourage increased attendance at the video lottery  gaming  facility
    28  including,  but  not limited to hotels, other lodging facilities, enter-
    29  tainment  facilities,  retail  facilities,  dining  facilities,   events
    30  arenas,  parking  garages  and  other improvements that enhance facility
    31  amenities; provided that such capital investments shall be  approved  by
    32  the  division, in consultation with the state racing and wagering board,

    33  and that such vendor track demonstrates that such  capital  expenditures
    34  will  increase  patronage at such vendor track's facilities and increase
    35  the amount of revenue generated to support state education programs. The
    36  annual amount of such vendor's capital awards that a vendor track  shall
    37  be  eligible  to  receive  shall  be limited to two million five hundred
    38  thousand dollars, except for Aqueduct racetrack, for which  there  shall
    39  be  no  vendor's  capital awards. Except for tracks having less than one
    40  thousand one hundred video gaming machines,  and  except  for  a  vendor
    41  track  located west of State Route 14 from Sodus Point to the Pennsylva-
    42  nia border within New York, each track operator  shall  be  required  to
    43  co-invest  an  amount  of  capital  expenditure  equal to its cumulative

    44  vendor's capital award. For all tracks, except for  Aqueduct  racetrack,
    45  the amount of any vendor's capital award that is not used during any one
    46  year  period  may  be  carried  over into subsequent years ending before
    47  April first, two thousand fourteen. Any amount attributable to a capital
    48  expenditure approved prior to April first,  two  thousand  fourteen  and
    49  completed before April first, two thousand sixteen; or approved prior to
    50  April first, two thousand eighteen and completed before April first, two
    51  thousand  twenty  for a vendor track located west of State Route 14 from
    52  Sodus Point to the Pennsylvania border within New York, shall be  eligi-
    53  ble  to  receive  the vendor's capital award. In the event that a vendor
    54  track's capital expenditures, approved by the division  prior  to  April

        S. 5883                            78                            A. 8101
 
     1  first,  two  thousand  fourteen  and completed prior to April first, two
     2  thousand sixteen, exceed the vendor  track's  cumulative  capital  award
     3  during  the  five year period ending April first, two thousand fourteen,
     4  the  vendor  shall  continue  to  receive  the capital award after April
     5  first, two thousand fourteen until such  approved  capital  expenditures
     6  are  paid  to the vendor track subject to any required co-investment. In
     7  no event shall any vendor track that receives a vendor fee  pursuant  to
     8  clause  (F) or (G) of this subparagraph be eligible for a vendor's capi-
     9  tal award under this section. Any operator of a vendor track  which  has
    10  received  a  vendor's  capital  award,  choosing  to  divest the capital
    11  improvement toward which the award was applied, prior to the full depre-

    12  ciation of the capital improvement in accordance with generally accepted
    13  accounting principles, shall reimburse the state in amounts equal to the
    14  total of any such awards. Any capital award not approved for  a  capital
    15  expenditure at a video lottery gaming facility by April first, two thou-
    16  sand  fourteen shall be deposited into the state lottery fund for educa-
    17  tion aid; and
    18    § 38. Item (iii) of clause (I) of subparagraph (ii) of paragraph 1  of
    19  subdivision  b  of section 1612 of the tax law, as added by section 1 of
    20  part O of chapter 61 of the laws of 2011, is amended to read as follows:
    21    (iii) less an additional vendor's marketing allowance at a rate of ten
    22  percent for the first one hundred million  dollars  annually  and  eight
    23  percent  thereafter  of  the  total  revenue wagered at the vendor track
    24  after payout for prizes to be used by the vendor track for the marketing

    25  and promotion and associated costs of its  video  lottery  gaming  oper-
    26  ations  and  pari-mutuel  horse  racing  operations, as long as any such
    27  costs associated with pari-mutuel horse racing operations simultaneously
    28  encourage increased attendance at such  vendor's  video  lottery  gaming
    29  facilities, consistent with the customary manner of marketing comparable
    30  operations in the industry and subject to the overall supervision of the
    31  division;  provided,  however,  that  the  additional vendor's marketing
    32  allowance shall not exceed eight percent in any year for any operator of
    33  a racetrack located in the county of Westchester  or  Queens;  provided,
    34  however,  a  vendor  track that receives a vendor fee pursuant to clause
    35  (G) of subparagraph (ii) of this paragraph shall not receive  the  addi-
    36  tional  vendor's  marketing  allowance;  provided, however, except for a

    37  vendor track located west of State Route 14  from  Sodus  Point  to  the
    38  Pennsylvania  border within New York shall continue to receive a market-
    39  ing allowance of ten percent on total  revenue  wagered  at  the  vendor
    40  track  after  payout for prizes in excess of one hundred million dollars
    41  annually. In establishing the vendor fee, the division shall ensure  the
    42  maximum  lottery support for education while also ensuring the effective
    43  implementation of section sixteen hundred seventeen-a  of  this  article
    44  through  the  provision of reasonable reimbursements and compensation to
    45  vendor tracks for participation in  such  program.  Within  twenty  days
    46  after any award of lottery prizes, the division shall pay into the state
    47  treasury,  to  the  credit of the state lottery fund, the balance of all

    48  moneys received from the sale of all tickets for the  lottery  in  which
    49  such  prizes  were  awarded remaining after provision for the payment of
    50  prizes as herein provided. Any revenues derived from the sale of  adver-
    51  tising on lottery tickets shall be deposited in the state lottery fund.
    52    §  39.  Subdivision  a  of section 1617-a of the tax law is amended by
    53  adding a new paragraph 4 to read as follows:
    54    (4) at a maximum of two facilities, neither  to  exceed  one  thousand
    55  video  lottery  gaming  devices, established within region three of zone
    56  one as defined by section one thousand three hundred ten of the  racing,
        S. 5883                            79                            A. 8101
 
     1  pari-mutuel  wagering  and  breeding  law, one each operated by a corpo-

     2  ration established pursuant to section five hundred two of  the  racing,
     3  pari-mutuel  wagering  and  breeding  law  in the Suffolk region and the
     4  Nassau  region  to  be  located within a facility authorized pursuant to
     5  sections one thousand eight or one thousand nine of the racing, pari-mu-
     6  tuel wagering and breeding law. The facilities  authorized  pursuant  to
     7  this paragraph shall be deemed vendors for all purposes under this arti-
     8  cle.
     9    § 40. Section 1612 of the tax law, as amended by chapter 2 of the laws
    10  of  1995,  paragraph 1 of subdivision a as amended by chapter 147 of the
    11  laws of 2010, subparagraph (A)  of  paragraph  1  of  subdivision  a  as
    12  amended  by section 1 of part S of chapter 59 of the laws of 2012, para-

    13  graph 2 of subdivision a as amended by section 1 of part P of chapter 61
    14  of the laws of 2011, paragraphs 3, 4 and 5 and the  second  undesignated
    15  and closing paragraph of subdivision a as amended by section 1 of part Q
    16  of chapter 61 of the laws of 2011, subdivision 6 as amended by section 1
    17  of  part O-1 of chapter 57 of the laws of 2009, the opening paragraph of
    18  paragraph 1 of subdivision b as amended by section 1 of part R of  chap-
    19  ter 61 of the laws of 2011, subparagraph (ii) of paragraph 1 of subdivi-
    20  sion  b  as  amended by section 6 of part K of chapter 57 of the laws of
    21  2010, clause (F) of subparagraph (ii) of paragraph 1 of subdivision b as
    22  amended by section 1 of part T of chapter 59 of the laws of 2013, clause
    23  (H) of subparagraph (ii) of paragraph 1 of subdivision b as  amended  by
    24  chapter  454  of  the  laws  of 2012, clause (I) of subparagraph (ii) of

    25  paragraph 1 of subdivision b as added by section 1 of part O of  chapter
    26  61  of  the laws of 2011, paragraphs 2 and 3 of subdivision 6 as amended
    27  by section 1 of part J of chapter 55 of the laws of 2013, subdivision  c
    28  as  amended  by  section 2 of part CC of chapter 61 of the laws of 2005,
    29  paragraph 1 of subdivision c as amended by section 2 of part R of  chap-
    30  ter  61  of the laws of 2011, subdivision d as amended and subdivision e
    31  as added by chapter 18 of the laws of 2008,  subdivisions  f  and  g  as
    32  amended by chapter 140 of the laws of 2008, paragraph 1 of subdivision f
    33  as  amended  by  section  2 of part J of chapter 55 of the laws if 2013,
    34  subdivision h as added by section 13 of part A of chapter 60 of the laws
    35  of 2012, is amended to read as follows:
    36    § 1612. Disposition of revenues. a. The division  shall  pay  into  an

    37  account,  to  be  known  as  the  lottery prize account, under the joint
    38  custody of the comptroller and the commissioner, within one  week  after
    39  collection  of sales receipts from a lottery game, such moneys necessary
    40  for the payment of lottery  prizes  but  not  to  exceed  the  following
    41  percentages, plus interest earned thereon:
    42    (1) sixty percent of the total amount for which tickets have been sold
    43  for  a  lawful lottery game introduced on or after the effective date of
    44  this paragraph, subject to the following provisions:
    45    (A) such game shall be available only on premises occupied by licensed
    46  lottery sales agents, subject to the following provisions:
    47    (i) if the licensee does not hold a license  issued  pursuant  to  the
    48  alcoholic  beverage control law to sell alcoholic beverages for consump-
    49  tion on the premises, then the  premises  must  have  a  minimum  square

    50  footage greater than two thousand five hundred square feet;
    51    (ii)  notwithstanding  the  foregoing provisions, television equipment
    52  that  automatically  displays  the  results  of  such  drawings  may  be
    53  installed and used without regard to the square footage if such premises
    54  are used as:
    55    (I) a commercial bowling establishment, or
        S. 5883                            80                            A. 8101
 
     1    (II)  a facility authorized under the racing, pari-mutuel wagering and
     2  breeding law to accept pari-mutuel wagers;
     3    (B) the rules for the operation of such game shall be as prescribed by
     4  regulations  promulgated  and adopted by the division, provided however,
     5  that such rules shall provide that no person under the age of twenty-one
     6  may participate in such games on the premises of a licensee who holds  a

     7  license  issued  pursuant  to the alcoholic beverage control law to sell
     8  alcoholic beverages for consumption  on  the  premises;  and,  provided,
     9  further,  that such regulations may be revised on an emergency basis not
    10  later than ninety days after the enactment of this paragraph in order to
    11  conform such regulations to the requirements of this paragraph; or
    12    (2) sixty-five percent of the total amount for which tickets have been
    13  sold for the "Instant Cash" game in which the  participant  purchases  a
    14  preprinted  ticket  on  which dollar amounts or symbols are concealed on
    15  the face or the back of such ticket, provided however  up  to  five  new
    16  games may be offered during the fiscal year, seventy-five percent of the
    17  total  amount  for  which  tickets have been sold for such five games in
    18  which the participant purchases a  preprinted  ticket  on  which  dollar

    19  amounts or symbols are concealed on the face or the back of such ticket;
    20  or
    21    (3) fifty-five percent of the total amount for which tickets have been
    22  sold  for any joint, multi-jurisdiction, and out-of-state lottery except
    23  as otherwise provided in paragraph one of subdivision b of this  section
    24  for any joint, multi-jurisdiction, out-of-state video lottery gaming; or
    25    (4) fifty percent of the total amount for which tickets have been sold
    26  for  games  known  as: (A) the "Daily Numbers Game" or "Win 4", discrete
    27  games in which the participants select no more than  three  or  four  of
    28  their own numbers to match with three or four numbers drawn by the divi-
    29  sion  for  purposes of determining winners of such games, (B) "Pick 10",
    30  offered no more than once daily, in which  participants  select  from  a
    31  specified  field  of  numbers a subset of ten numbers to match against a

    32  subset of numbers to be drawn by the division from such field of numbers
    33  for the purpose of determining winners  of  such  game,  (C)  "Take  5",
    34  offered  no  more  than  once daily, in which participants select from a
    35  specified field of numbers a subset of five numbers to match  against  a
    36  subset  of  five  numbers to be drawn by the division from such field of
    37  numbers for purposes of determining winners of such game; or
    38    (5) forty percent of the total amount for which tickets have been sold
    39  for: (A) "Lotto", offered no more than once daily, a  discrete  game  in
    40  which  all  participants  select a specific subset of numbers to match a
    41  specific subset of numbers,  as  prescribed  by  rules  and  regulations
    42  promulgated and adopted by the division, from a larger specific field of
    43  numbers,  as  also prescribed by such rules and regulations and (B) with

    44  the exception of the game described in paragraph one  of  this  subdivi-
    45  sion,  such  other  state-operated  lottery games which the division may
    46  introduce, offered no more than  once  daily,  commencing  on  or  after
    47  forty-five  days  following  the  official  publication of the rules and
    48  regulations for such game.
    49    The moneys in the lottery prize account shall  be  paid  out  of  such
    50  account  on  the audit and warrant of the comptroller on vouchers certi-
    51  fied or approved by the director or his or her duly designated official.
    52    Prize money derived from ticket sales receipts of  a  particular  game
    53  and  deposited  in  the  lottery  prize  account  in accordance with the
    54  percentages set forth above may be used to  pay  prizes  in  such  game.
    55  Balances in the lottery prize account identified by individual games may

        S. 5883                            81                            A. 8101
 
     1  be carried over from one fiscal year to the next to ensure proper payout
     2  of games.
     3    b.  1.  Notwithstanding  section  one  hundred twenty-one of the state
     4  finance law, on or before the twentieth day of each month, the  division
     5  shall  pay  into  the state treasury, to the credit of the state lottery
     6  fund created by section ninety-two-c of the state finance law, not  less
     7  than  forty-five percent of the total amount for which tickets have been
     8  sold for games defined in  paragraph  four  of  subdivision  a  of  this
     9  section during the preceding month, not less than thirty-five percent of
    10  the  total  amount for which tickets have been sold for games defined in
    11  paragraph three of subdivision a of this section  during  the  preceding
    12  month,  not less than twenty percent of the total amount for which tick-

    13  ets have been sold for games defined in paragraph two of  subdivision  a
    14  of  this  section  during the preceding month, provided however that for
    15  games with a prize payout of seventy-five percent of  the  total  amount
    16  for  which  tickets have been sold, the division shall pay not less than
    17  ten percent of sales into the state treasury and not less  than  twenty-
    18  five  percent  of  the total amount for which tickets have been sold for
    19  games defined in paragraph one of subdivision a of this  section  during
    20  the  preceding  month; and the balance of the total revenue after payout
    21  for prizes for games known as  "video  lottery  gaming,"  including  any
    22  joint,  multi-jurisdiction,  and  out-of-state video lottery gaming, (i)
    23  less ten percent of the total revenue wagered after payout for prizes to
    24  be retained by the division for operation, administration, and  procure-

    25  ment  purposes;  (ii)  less  a vendor's fee the amount of which is to be
    26  paid for serving as a lottery agent to the track operator  of  a  vendor
    27  track or the operator of any other video lottery gaming facility author-
    28  ized  pursuant  to  section one thousand six hundred seventeen a of this
    29  article:
    30    (A) having fewer than one thousand one hundred video gaming  machines,
    31  at  a  rate  of  thirty-five percent for the first fifty million dollars
    32  annually, twenty-eight percent for  the  next  hundred  million  dollars
    33  annually,  and  twenty-five  percent  thereafter  of  the  total revenue
    34  wagered at the vendor track after payout for  prizes  pursuant  to  this
    35  chapter;
    36    (B)  having one thousand one hundred or more video gaming machines, at
    37  a rate of thirty-one percent of the total revenue wagered at the  vendor

    38  track  after payout for prizes pursuant to this chapter, except for such
    39  facility located in the county of Westchester, in which  case  the  rate
    40  shall be thirty percent until March thirty-first, two thousand twelve.
    41    Notwithstanding  the  foregoing, not later than April first, two thou-
    42  sand twelve, the vendor fee shall become thirty-one percent  and  remain
    43  at  that  level  thereafter; and except for Aqueduct racetrack, in which
    44  case the vendor fee shall be thirty-eight percent of the  total  revenue
    45  wagered  at  the  vendor  track after payout for prizes pursuant to this
    46  chapter;
    47    (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
    48  vendor track is located in an area with a population of  less  than  one
    49  million  within  the  forty  mile radius around such track, at a rate of
    50  thirty-nine percent for the first fifty million dollars annually,  twen-

    51  ty-eight  percent  for  the  next  hundred million dollars annually, and
    52  twenty-five percent thereafter of  the  total  revenue  wagered  at  the
    53  vendor track after payout for prizes pursuant to this chapter;
    54    (D)  notwithstanding  clauses  (A),  (B) and (C) of this subparagraph,
    55  when the vendor track is located within fifteen miles of a Native Ameri-
    56  can class III gaming facility at a rate  of  forty-one  percent  of  the
        S. 5883                            82                            A. 8101
 
     1  total revenue wagered at the vendor track after payout for prizes pursu-
     2  ant to this chapter;
     3    (E)  notwithstanding  clauses  (A),  (B), (C) and (D) of this subpara-
     4  graph, when a Native American class III gaming facility is  established,
     5  after  the  effective date of this subparagraph, within fifteen miles of

     6  the vendor track, at a rate of forty-one percent of  the  total  revenue
     7  wagered after payout for prizes pursuant to this chapter;
     8    (E-1)  for  purposes  of this subdivision, the term "class III gaming"
     9  shall have the meaning defined in 25 U.S.C. § 2703(8).
    10    (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
    11  agraph, when a vendor track, is located in Sullivan  county  and  within
    12  sixty  miles  from any gaming facility in a contiguous state such vendor
    13  fee shall, for a period of six years commencing April first,  two  thou-
    14  sand  eight,  be  at  a  rate  of forty-one percent of the total revenue
    15  wagered at the vendor track after payout for  prizes  pursuant  to  this
    16  chapter, after which time such rate shall be as for all tracks in clause
    17  (C) of this subparagraph.
    18    (G)  notwithstanding  clauses  (A), (B), (C), (D), (E) and (F) of this

    19  subparagraph, when no more than one vendor track located in the town  of
    20  Thompson  in Sullivan county at the site of the former Concord Resort at
    21  which a qualified capital investment has been made and no fewer than one
    22  thousand full-time,  permanent  employees  have  been  newly  hired,  is
    23  located  in  Sullivan  county  and is within sixty miles from any gaming
    24  facility in a contiguous state, then for a period  of  forty  years  the
    25  vendor's  fee  shall equal the total revenue wagered at the vendor track
    26  after payout of prizes pursuant  to  this  subdivision  reduced  by  the
    27  greater  of  (i)  twenty-five  percent of total revenue after payout for
    28  prizes for "video lottery games" or (ii) for the first  eight  years  of
    29  operation  thirty-eight million dollars, and beginning in the ninth year
    30  of operation such amount shall increase annually by the  lesser  of  the

    31  increase  in the consumer price index or two percent, plus seven percent
    32  of total revenue after payout of prizes. In addition, in the  event  the
    33  vendor  fee  is calculated pursuant to subclause (i) of this clause, the
    34  vendor's fee shall be further reduced by 11.11 percent of the amount  by
    35  which  total revenue after payout for prizes exceeds two hundred fifteen
    36  million dollars, but in  no  event  shall  such  reduction  exceed  five
    37  million  dollars.    Provided,  further,  no  vendor is eligible for the
    38  vendor's fee described in this clause who  operates  or  invests  in  or
    39  owns,  in  whole  or in part, another vendor license or is licensed as a
    40  vendor track that currently receives a vendor fee for the  operation  of
    41  video lottery gaming pursuant to this article.

    42    Provided, however, that in the case of [no more than one vendor track]
    43  a  resort  facility located [in the town of Thompson] in Sullivan county
    44  [at the site of the former Concord  Resort]  with  a  qualified  capital
    45  investment,  and  one  thousand full-time, permanent employees if at any
    46  time after three years of  opening  operations  of  the  licensed  video
    47  gaming  facility  [or  licensed vendor track], the [vendor track] resort
    48  facility experiences an employment shortfall, then the recapture  amount
    49  shall apply, for only such period as the shortfall exists.
    50    For  the purposes of this section "qualified capital investment" shall
    51  mean an investment of a  minimum  of  six  hundred  million  dollars  as
    52  reflected  by  audited financial statements of which not less than three

    53  hundred million dollars shall be comprised of  equity  and/or  mezzanine
    54  financing  as  an initial investment in a county where twelve percent of
    55  the population is below the federal poverty level  as  measured  by  the
    56  most  recent  Bureau of Census Statistics prior to the qualified capital
        S. 5883                            83                            A. 8101
 
     1  investment commencing that results in the construction,  development  or
     2  improvement  of  at  least  one  eighteen  hole  golf  course,  and  the
     3  construction and issuance of certificates of occupancy for hotels, lodg-
     4  ing,  spas, dining, retail and entertainment venues, parking garages and
     5  other capital improvements at or adjacent to the licensed  video  gaming
     6  facility  or  licensed vendor track which promote or encourage increased
     7  attendance at such facilities.

     8    For the purposes of  this  section,  "full-time,  permanent  employee"
     9  shall  mean  an  employee  who has worked at the video gaming facility[,
    10  vendor track] or related and adjacent facilities for a minimum of  thir-
    11  ty-five  hours per week for not less than four consecutive weeks and who
    12  is entitled to receive the usual and customary fringe benefits  extended
    13  to  other  employees  with  comparable rank and duties; or two part-time
    14  employees who have worked at the video gaming facility, vendor track  or
    15  related  and  adjacent  facilities for a combined minimum of thirty-five
    16  hours per week for not less than four  consecutive  weeks  and  who  are
    17  entitled  to receive the usual and customary fringe benefits extended to
    18  other employees with comparable rank and duties.
    19    For the purpose of this section "employment goal" shall mean one thou-

    20  sand five hundred full-time permanent employees  after  three  years  of
    21  opening  operations  of  the licensed video gaming facility [or licensed
    22  vendor track].
    23    For the purpose of this section "employment shortfall"  shall  mean  a
    24  level  of  employment that falls below the employment goal, as certified
    25  annually by vendor's certified  accountants  and  the  chairman  of  the
    26  empire state development corporation.
    27    For  the  purposes  of  this section "recapture amount" shall mean the
    28  difference between the amount of the  vendor's  fee  paid  to  a  vendor
    29  [track]  with  a qualified capital investment, and the vendor fee other-
    30  wise payable to a vendor [track] pursuant to clause (F) of this subpara-
    31  graph, that is reimbursable by the vendor  track  to  the  division  for

    32  payment into the state treasury, to the credit of the state lottery fund
    33  created  by  section  ninety-two-c  of  the state finance law, due to an
    34  employment shortfall pursuant to the following  schedule  only  for  the
    35  period of the employment shortfall:
    36    (i)  one  hundred  percent  of  the recapture amount if the employment
    37  shortfall is greater  than  sixty-six  and  two-thirds  percent  of  the
    38  employment goal;
    39    (ii)  seventy-five  percent  of the recapture amount if the employment
    40  shortfall is greater than thirty-three  and  one-third  percent  of  the
    41  employment goal;
    42    (iii)  forty-nine  and one-half percent of the recapture amount if the
    43  employment shortfall is greater than thirty percent  of  the  employment
    44  goal;
    45    (iv)  twenty-two  percent  of  the  recapture amount if the employment
    46  shortfall is greater than twenty percent of the employment goal;

    47    (v) eleven percent of the recapture amount if the employment shortfall
    48  is greater than ten percent of the employment goal.
    49    (G-1) Notwithstanding clause (A) and (B) of this subparagraph, when  a
    50  video  lottery gaming facility is located in either the county of Nassau
    51  or Suffolk and is operated by  a  corporation  established  pursuant  to
    52  section  five hundred two of the racing, pari-mutuel wagering and breed-
    53  ing law at a rate of thirty- five percent of the total  revenue  wagered
    54  at the vendor track after payout for prizes pursuant to this chapter;
    55    (H) Notwithstanding any provision to the contrary, when a vendor track
    56  is  located  within regions one, two, or five of development zone two as

        S. 5883                            84                            A. 8101
 
     1  defied by section thirteen hundred ten of the racing, pari-mutuel wager-
     2  ing an breeding law, such  vendor  track  shall  receive  an  additional
     3  commission  at  a rate equal to the percentage of revenue wagered at the
     4  vendor  track after payout for prizes pursuant to this chapter less than
     5  ten percent retained by the commission  for  operation,  administration,
     6  and  procurement  purposes  and  payment  of the vendor's fee, marketing
     7  allowance, and capital award paid  pursuant  to  this  chapter  and  the
     8  effective  tax  rate  paid  on all gross gaming revenue paid by a gaming
     9  facility within the same region pursuant  to  section  thirteen  hundred

    10  fifty-one  of  the  racing,  pari-mutuel  wagering and breeding law. The
    11  additional commission shall be paid to the vendor tack within sixty days
    12  after the conclusion of the state fiscal year based  on  the  calculated
    13  percentage during the previous fiscal year.
    14    [(H)]  (I)  notwithstanding  clauses (A), (B), (C), (D), (E), (F), and
    15  [(G)] (G-1) of this subparagraph, the track operator of a  vendor  track
    16  shall  be eligible for a vendor's capital award of up to four percent of
    17  the total revenue wagered at the vendor track after  payout  for  prizes
    18  pursuant  to  this  chapter, which shall be used exclusively for capital
    19  project investments to improve the facilities of the vendor track  which
    20  promote  or  encourage  increased attendance at the video lottery gaming

    21  facility including, but not limited to hotels, other lodging facilities,
    22  entertainment facilities, retail facilities, dining  facilities,  events
    23  arenas,  parking  garages  and  other improvements that enhance facility
    24  amenities; provided that such capital investments shall be  approved  by
    25  the  division, in consultation with the state racing and wagering board,
    26  and that such vendor track demonstrates that such  capital  expenditures
    27  will  increase  patronage at such vendor track's facilities and increase
    28  the amount of revenue generated to support state education programs. The
    29  annual amount of such vendor's capital awards that a vendor track  shall
    30  be  eligible  to  receive  shall  be limited to two million five hundred
    31  thousand dollars, except for Aqueduct racetrack, for which  there  shall
    32  be  no  vendor's  capital awards. Except for tracks having less than one

    33  thousand one hundred video gaming machines, each track operator shall be
    34  required to co-invest an amount of  capital  expenditure  equal  to  its
    35  cumulative  vendor's  capital award. For all tracks, except for Aqueduct
    36  racetrack, the amount of any vendor's capital award  that  is  not  used
    37  during  any  one  year  period may be carried over into subsequent years
    38  ending before April first, two thousand fourteen. Any  amount  attribut-
    39  able  to  a capital expenditure approved prior to April first, two thou-
    40  sand fourteen and completed before April  first,  two  thousand  sixteen
    41  shall  be  eligible  to receive the vendor's capital award. In the event
    42  that a vendor track's capital expenditures,  approved  by  the  division
    43  prior to April first, two thousand fourteen and completed prior to April
    44  first,  two thousand sixteen, exceed the vendor track's cumulative capi-

    45  tal award during the five year period ending April first,  two  thousand
    46  fourteen,  the  vendor shall continue to receive the capital award after
    47  April first, two thousand fourteen until such approved capital  expendi-
    48  tures  are  paid  to the vendor track subject to any required co-invest-
    49  ment. In no event shall any vendor track  that  receives  a  vendor  fee
    50  pursuant  to  clause  (F)  or (G) of this subparagraph be eligible for a
    51  vendor's capital award under this section.  Any  operator  of  a  vendor
    52  track  which  has  received a vendor's capital award, choosing to divest
    53  the capital improvement toward which the award was applied, prior to the
    54  full depreciation of the capital improvement in accordance with general-
    55  ly accepted accounting principles, shall reimburse the state in  amounts
    56  equal  to  the  total of any such awards. Any capital award not approved

        S. 5883                            85                            A. 8101
 
     1  for a capital expenditure at a video lottery gaming  facility  by  April
     2  first,  two  thousand fourteen shall be deposited into the state lottery
     3  fund for education aid; and
     4    [(I)]  (J)  Notwithstanding any provision of law to the contrary, free
     5  play allowance credits authorized by the division pursuant  to  subdivi-
     6  sion  f of section sixteen hundred seventeen-a of this article shall not
     7  be included in the calculation of the  total  amount  wagered  on  video
     8  lottery  games,  the  total  amount  wagered after payout of prizes, the
     9  vendor fees payable  to  the  operators  of  video  lottery  facilities,
    10  vendor's  capital  awards,  fees payable to the division's video lottery
    11  gaming equipment contractors, or racing support payments.

    12    (iii) less an additional vendor's marketing allowance at a rate of ten
    13  percent for the first one hundred million  dollars  annually  and  eight
    14  percent  thereafter  of  the  total  revenue wagered at the vendor track
    15  after payout for prizes to be used by the vendor track for the marketing
    16  and promotion and associated costs of its  video  lottery  gaming  oper-
    17  ations  and  pari-mutuel  horse  racing  operations, as long as any such
    18  costs associated with pari-mutuel horse racing operations simultaneously
    19  encourage increased attendance at such  vendor's  video  lottery  gaming
    20  facilities, consistent with the customary manner of marketing comparable
    21  operations in the industry and subject to the overall supervision of the
    22  division;  provided,  however,  that  the  additional vendor's marketing
    23  allowance shall not exceed eight percent in any year for any operator of

    24  a racetrack located in the county of Westchester  or  Queens;  provided,
    25  however,  a  vendor  track that receives a vendor fee pursuant to clause
    26  (G) of subparagraph (ii) of this paragraph shall not receive  the  addi-
    27  tional vendor's marketing allowance
    28    provided,  however,  a  vendor  that receives a vendor fee pursuant to
    29  clause (G-1) of subparagraph (ii) of this  paragraph  shall  receive  an
    30  additional  marketing  allowance  at  a rate of ten percent of the total
    31  revenue wagered at the video lottery gaming facility  after  payout  for
    32  prizes.    the  division  shall  ensure  the maximum lottery support for
    33  education while also ensuring the effective  implementation  of  section
    34  sixteen  hundred  seventeen-a  of  this article through the provision of

    35  reasonable reimbursements and compensation to vendor tracks for  partic-
    36  ipation  in  such program. Within twenty days after any award of lottery
    37  prizes, the division shall pay into the state treasury, to the credit of
    38  the state lottery fund, the balance of all moneys received from the sale
    39  of all tickets for the lottery in which such prizes were awarded remain-
    40  ing after provision for the payment of prizes as  herein  provided.  Any
    41  revenues  derived  from the sale of advertising on lottery tickets shall
    42  be deposited in the state lottery fund.
    43    2. As consideration for the operation of a video lottery gaming facil-
    44  ity, the division, shall cause the investment in the racing industry  of
    45  a  portion  of the vendor fee received pursuant to paragraph one of this

    46  subdivision in the manner set forth  in  this  subdivision.    With  the
    47  exception of Aqueduct racetrack or a facility in the county of Nassau or
    48  Suffolk  operated  by a corporation established pursuant to section five
    49  hundred two of the racing, pari-mutuel wagering and breeding  law  or  a
    50  facility  in  the  county of Nassau or Suffolk operated by a corporation
    51  established pursuant to section five hundred two of the racing, pari-mu-
    52  tuel wagering and breeding law  ,  each  such  track  shall  dedicate  a
    53  portion  of  its vendor fees, received pursuant to clause (A), (B), (C),
    54  (D), (E), (F), or (G) of subparagraph (ii)  of  paragraph  one  of  this
    55  subdivision,  solely  for the purpose of enhancing purses at such track,

    56  in an amount equal to eight and  three-quarters  percent  of  the  total
        S. 5883                            86                            A. 8101
 
     1  revenue  wagered  at  the  vendor  track  after  pay out for prizes. One
     2  percent of such purse enhancement amount shall be  paid  to  the  gaming
     3  commission  to  be  used exclusively to promote and ensure equine health
     4  and  safety  in  New  York.  Any  portion  of such funding to the gaming
     5  commission unused during a fiscal year shall be returned  to  the  video
     6  lottery  gaming  operators  on  a  pro rata basis in accordance with the
     7  amounts originally contributed by each operator and shall  be  used  for
     8  the  purpose  of  enhancing  purses at such track. In addition, with the

     9  exception of Aqueduct racetrack, one and one-quarter  percent  of  total
    10  revenue  wagered  at the vendor track after pay out for prizes, received
    11  pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of  subparagraph
    12  (ii)  of  paragraph one of this subdivision, shall be distributed to the
    13  appropriate breeding fund for the manner of  racing  conducted  by  such
    14  track.
    15    Provided,  further,  that nothing in this paragraph shall prevent each
    16  track from entering into an agreement, not to exceed  five  years,  with
    17  the  organization  authorized  to  represent its horsemen to increase or
    18  decrease the portion of its vendor fee dedicated to enhancing purses  at
    19  such  track  during the years of participation by such track, or to race
    20  fewer dates than required herein.
    21    3. Nothing in paragraph two  of  this  subdivision  shall  affect  any

    22  agreement  in  effect on or before the effective date of this paragraph,
    23  except that the obligation to pay funds  to  the  gaming  commission  to
    24  promote  and  ensure  equine  health  and  safety  shall  supersede  any
    25  provision to the contrary in any such agreement.
    26    c. 1. The specifications  for  video  lottery  gaming,  including  any
    27  joint,  multi-jurisdiction, and out-of-state video lottery gaming, shall
    28  be designed in such a manner as to pay prizes that average no less  than
    29  ninety percent of sales.
    30    2.  Of  the  ten  percent  retained by the division for administrative
    31  purposes, any amounts beyond that which are necessary for the  operation
    32  and  administration  of  this  pilot  program  shall be deposited in the
    33  lottery education account.
    34    d. Notwithstanding any law, rule or regulation to  the  contrary,  any

    35  successor  to  the New York Racing Association, Inc. with respect to the
    36  operation and maintenance of video lottery gaming at Aqueduct  racetrack
    37  shall  be  deemed the successor to the New York Racing Association, Inc.
    38  for purposes of being subject to existing contracts and loan agreements,
    39  if any, entered into by the New York Racing Association,  Inc.  directly
    40  related  to  the construction, operation, management and distribution of
    41  revenues of the video lottery gaming facility at Aqueduct racetrack.
    42    e. The video lottery gaming  operator  selected  to  operate  a  video
    43  lottery terminal facility at Aqueduct will be subject to a memorandum of
    44  understanding  between  the  governor, temporary president of the senate
    45  and the speaker of the assembly.  Notwithstanding  subparagraph  (i)  of
    46  paragraph  a  of  subdivision eight of section two hundred twelve of the

    47  racing, pari-mutuel wagering and breeding law, the state, pursuant to an
    48  agreement with the video lottery gaming  operator  to  operate  a  video
    49  lottery  terminal  facility  at Aqueduct, may authorize, as part of such
    50  agreement or in conjunction with  such  agreement  at  the  time  it  is
    51  executed,  additional  development  at the Aqueduct racing facility. The
    52  selection will be made in consultation with the franchised  corporation,
    53  but is not subject to such corporation's approval. The franchised corpo-
    54  ration shall not be eligible to compete to operate or to operate a video
    55  lottery  terminal  facility  at  Aqueduct.  The  state will use its best
    56  efforts to ensure that the video lottery terminal facility  at  Aqueduct
        S. 5883                            87                            A. 8101
 

     1  is opened as soon as is practicable and will, if practicable, pursue the
     2  construction  of a temporary video lottery terminal facility at Aqueduct
     3  subject to staying within an agreed budget for such video lottery termi-
     4  nal  facility  and  subject  to  such  temporary  facility not having an
     5  adverse impact on opening of the  permanent  facility  at  Aqueduct.  To
     6  facilitate  the opening of the video lottery gaming facility at Aqueduct
     7  as soon as is practicable, the division of the lottery  may  extend  the
     8  term of any existing contract related to the video lottery system.
     9    f.  As  consideration  for  the  operation of the video lottery gaming
    10  facility at Aqueduct racetrack, the division shall cause the  investment
    11  in the racing industry of the following percentages of the vendor fee to
    12  be deposited or paid, as follows:

    13    1.  Six  and  one-half  percent  of  the total wagered after payout of
    14  prizes for the first year of operation of video lottery gaming at  Aque-
    15  duct  racetrack,  seven  percent  of  the  total wagered after payout of
    16  prizes for the second year of operation, and seven and one-half  percent
    17  of the total wagered after payout of prizes for the third year of opera-
    18  tion  and  thereafter,  for  the purpose of enhancing purses at Aqueduct
    19  racetrack, Belmont Park racetrack and Saratoga race course. One  percent
    20  of  such purse enhancement amount shall be paid to the gaming commission
    21  to be used exclusively to promote and ensure equine health and safety in
    22  New York. Any portion of such funding to the  gaming  commission  unused
    23  during a fiscal year shall be returned on a pro rata basis in accordance
    24  with  the  amounts  originally  contributed  and  shall  be used for the

    25  purpose of enhancing purses at such tracks.
    26    2. One percent of the total wagered after payout  of  prizes  for  the
    27  first  year  of operation of video lottery gaming at Aqueduct racetrack,
    28  one and one-quarter percent of the total wagered after payout of  prizes
    29  for  the  second  year of operation, and one and one-half percent of the
    30  total wagered after payout of prizes for the third year of operation and
    31  thereafter, for an appropriate breeding fund for the  manner  of  racing
    32  conducted  at  Aqueduct  racetrack,  Belmont Park racetrack and Saratoga
    33  race course.
    34    3. Four percent of the total revenue wagered after payout of prizes to
    35  be deposited into an account of the franchised  corporation  established
    36  pursuant  to section two hundred six of the racing, pari-mutuel wagering
    37  and breeding law to be used for capital expenditures in maintaining  and

    38  upgrading  Aqueduct  racetrack, Belmont Park racetrack and Saratoga race
    39  course.
    40    4. Three percent of the total revenue wagered after payout for  prizes
    41  to  be  deposited  into  an account of the franchised corporation estab-
    42  lished pursuant to section two hundred six of  the  racing,  pari-mutuel
    43  wagering  and  breeding  law  to be used for general thoroughbred racing
    44  operations at Aqueduct racetrack, Belmont Park  racetrack  and  Saratoga
    45  race course.
    46    5.  Paragraphs  one,  two, three and four of this subdivision shall be
    47  known collectively as the "racing support payments".
    48    g. In the event the state elects to construct a video lottery terminal
    49  facility at the Aqueduct racetrack, all video lottery terminal  revenues
    50  payable  to  the video lottery gaming operator at the Aqueduct racetrack
    51  remaining after payment of the racing support payments  shall  first  be

    52  used  to  repay the state's advances for (i) confirmation of the chapter
    53  eleven plan of reorganization  and  cash  advances  for  the  franchised
    54  corporation's  operations  following  confirmation of the chapter eleven
    55  plan of reorganization and (ii) the amount  expended  by  the  state  to
    56  construct  such  video  lottery  terminal facility at Aqueduct racetrack
        S. 5883                            88                            A. 8101
 
     1  pursuant to an agreement with the state. Subparagraphs (i) and  (ii)  of
     2  this  paragraph  shall  be  defined  as the state advance amount and the
     3  amounts payable to the division of the lottery.
     4    h.    As  consideration  for  the  operation of a video lottery gaming
     5  resort facility located in Sullivan county, the division shall cause the
     6  investment in the racing industry  at  the  following  amount  from  the

     7  vendor fee to be paid as follows:
     8    As amount to the horsemen for purses at a licensed racetrack in Sulli-
     9  van  county  and  to  the  agriculture and New York state horse breeding
    10  development fund to maintain racing support payments at the same  dollar
    11  levels realized in two thousand thirteen, to be adjusted by the consumer
    12  price index for all urban consumers, as published annually by the United
    13  States  department  of  labor bureau of labor statistics.  In no circum-
    14  stance shall net proceeds of the lottery, including  the  proceeds  from
    15  video lottery gaming, be used for the payment of non-lottery expenses of
    16  the gaming commission, administrative or otherwise.
    17    (f-1)  As consideration for operation of video lottery gaming facility
    18  located in the county of Nassau of Suffolk and operated by a corporation

    19  established pursuant to section five hundred two of the racing, pari-mu-
    20  tuel wagering and breeding law, the division  shall  cause  the  in  the
    21  racing  industry  of  the  following percentages of the vendor fee to be
    22  deposited or paid as follows:
    23    (1) Two and three tenths percent of the total wagered after payout  of
    24  prizes  for  the  purpose  of  enhancing  purses  at Aqueduct racetrack,
    25  Belmont Park racetrack and Saratoga race course, provided, however, that
    26  any amount that is in excess of the amount necessary to  maintain  purse
    27  support  from  video  lottery gaming at Aqueduct racetrack, Belmont Park
    28  racetrack and Saratoga race course at the same level realized in in  two

    29  thousand  thirteen,  to  be adjusted by the consumer price index for all
    30  urban consumers, as published annually by the United  States  department
    31  of  bureau  of  labor  statistics,  shall  be instead be returned to the
    32  commission.
    33    (2) five tenths percent of the total wagered after  payout  of  prizes
    34  for  the  appropriate breeding fund for the manner of racing at Aqueduct
    35  racetrack, Belmont Park racetrack and Saratoga  race  course,  provided,
    36  however,  that  any  amount that is in excess of the amount necessary to
    37  maintain payments from video lottery gaming at Aqueduct racetrack at the
    38  same level realized in in two thousand thirteen, to be adjusted  by  the
    39  consumer  price  index for all urban consumers, as published annually by

    40  the United States department of bureau of  labor  statistics,  shall  be
    41  instead be returned to the commission.
    42    (3)  one  and  three tenths percent of the total revenue wagered after
    43  payout of prizes to be deposited  into  an  account  of  the  franchised
    44  corporation  established  pursuant  to  section  two  hundred six of the
    45  racing, pari-mutuel wagering and breeding law to  be  used  for  capital
    46  expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
    47  Park racetrack and Saratoga race course,  provided,  however,  that  any
    48  amount  that  is  in excess of the amount necessary to maintain payments
    49  for capital expenditures from video lottery gaming at Aqueduct racetrack

    50  at the same level realized in in two thousand thirteen, to  be  adjusted
    51  by  the consumer price index for all urban consumers, as published annu-
    52  ally by the United States department  of  bureau  of  labor  statistics,
    53  shall be instead be returned to the commission.
    54    (4)  Nine tenths percent of the total revenue wagered after payout for
    55  prizes to be deposited into an account  of  the  franchised  corporation
    56  established  pursuant to section two hundred six of the racing, pari-mu-
        S. 5883                            89                            A. 8101
 
     1  tuel wagering and breeding law  to  be  used  for  general  thoroughbred
     2  racing  operations  at  Aqueduct  racetrack,  Belmont Park racetrack and

     3  Saratoga race course, provided, however, that  any  amount  that  is  in
     4  excess  of  the  amount  necessary  to  maintain  payments  for  general
     5  thoroughbred racing operations from video  lottery  gaming  at  Aqueduct
     6  racetrack  at the same level realized in in two thousand thirteen, to be
     7  adjusted by the  consumer  price  index  for  all  urban  consumers,  as
     8  published  annually  by  the United States department of bureau of labor
     9  statistics, shall be instead be returned to the commission.
    10    § 41. Subdivision a of section 1617-a of the tax  law  is  amended  by
    11  adding a new paragraph 5 to read as follows:
    12    (5)  at a facility established pursuant to a competitive process to be
    13  determined by the state gaming  commission,  established  within  region

    14  three  of  zone one as established by section one thousand three hundred
    15  ten of the racing, pari-mutuel wagering and  breeding  law,  limited  to
    16  Nassau county.  Such facility may only be authorized by the state gaming
    17  commission  following  local governmental consultation and consideration
    18  of market factors such as potential revenue impact, job development  and
    19  capital  investment.  The facility authorized pursuant to this paragraph
    20  shall be deemed a vendor for all purposes under this article,  and  need
    21  not  be operated by licensed thoroughbred or harness racing associations
    22  or corporations. The facility  authorized  pursuant  to  this  paragraph
    23  shall be deemed vendors for all purposes under this article.

    24    § 42. Section 1612 of the tax law, as amended by chapter 2 of the laws
    25  of  1995,  paragraph 1 of subdivision a as amended by chapter 147 of the
    26  laws of 2010, subparagraph (A)  of  paragraph  1  of  subdivision  a  as
    27  amended  by section 1 of part S of chapter 59 of the laws of 2012, para-
    28  graph 2 of subdivision a as amended by section 1 of part P of chapter 61
    29  of the laws of 2011, paragraphs 3, 4 and 5 and the  second  undesignated
    30  and closing paragraph of subdivision a as amended by section 1 of part Q
    31  of chapter 61 of the laws of 2011, subdivision 6 as amended by section 1
    32  of  part O-1 of chapter 57 of the laws of 2009, the opening paragraph of
    33  paragraph 1 of subdivision b as amended by section 1 of part R of  chap-
    34  ter 61 of the laws of 2011, subparagraph (ii) of paragraph 1 of subdivi-
    35  sion  b  as  amended by section 6 of part K of chapter 57 of the laws of

    36  2010, clause (F) of subparagraph (ii) of paragraph 1 of subdivision b as
    37  amended by section 1 of part T of chapter 59 of the laws of 2013, clause
    38  (H) of subparagraph (ii) of paragraph 1 of subdivision b as  amended  by
    39  chapter  454  of  the  laws  of 2012, clause (I) of subparagraph (ii) of
    40  paragraph 1 of subdivision b as added by section 1 of part O of  chapter
    41  61  of  the laws of 2011, paragraphs 2 and 3 of subdivision 6 as amended
    42  by section 1 of part J of chapter 55 of the laws of 2013, subdivision  c
    43  as  amended  by  section 2 of part CC of chapter 61 of the laws of 2005,
    44  paragraph 1 of subdivision c as amended by section 2 of part R of  chap-
    45  ter  61  of the laws of 2011, subdivision d as amended and subdivision e
    46  as added by chapter 18 of the laws of 2008,  subdivisions  f  and  g  as
    47  amended by chapter 140 of the laws of 2008, paragraph 1 of subdivision f

    48  as  amended  by  section  2 of part J of chapter 55 of the laws if 2013,
    49  subdivision h as added by section 13 of part A of chapter 60 of the laws
    50  of 2012, is amended to read as follows:
    51    § 1612. Disposition of revenues. a. The division  shall  pay  into  an
    52  account,  to  be  known  as  the  lottery prize account, under the joint
    53  custody of the comptroller and the commissioner, within one  week  after
    54  collection  of sales receipts from a lottery game, such moneys necessary
    55  for the payment of lottery  prizes  but  not  to  exceed  the  following
    56  percentages, plus interest earned thereon:
        S. 5883                            90                            A. 8101
 
     1    (1) sixty percent of the total amount for which tickets have been sold
     2  for  a  lawful lottery game introduced on or after the effective date of

     3  this paragraph, subject to the following provisions:
     4    (A) such game shall be available only on premises occupied by licensed
     5  lottery sales agents, subject to the following provisions:
     6    (i)  if  the  licensee  does not hold a license issued pursuant to the
     7  alcoholic beverage control law to sell alcoholic beverages for  consump-
     8  tion  on  the  premises,  then  the  premises must have a minimum square
     9  footage greater than two thousand five hundred square feet;
    10    (ii) notwithstanding the foregoing  provisions,  television  equipment
    11  that  automatically  displays  the  results  of  such  drawings  may  be
    12  installed and used without regard to the square footage if such premises
    13  are used as:
    14    (I) a commercial bowling establishment, or
    15    (II) a facility authorized under the racing, pari-mutuel wagering  and
    16  breeding law to accept pari-mutuel wagers;

    17    (B) the rules for the operation of such game shall be as prescribed by
    18  regulations  promulgated  and adopted by the division, provided however,
    19  that such rules shall provide that no person under the age of twenty-one
    20  may participate in such games on the premises of a licensee who holds  a
    21  license  issued  pursuant  to the alcoholic beverage control law to sell
    22  alcoholic beverages for consumption  on  the  premises;  and,  provided,
    23  further,  that such regulations may be revised on an emergency basis not
    24  later than ninety days after the enactment of this paragraph in order to
    25  conform such regulations to the requirements of this paragraph; or
    26    (2) sixty-five percent of the total amount for which tickets have been
    27  sold for the "Instant Cash" game in which the  participant  purchases  a
    28  preprinted  ticket  on  which dollar amounts or symbols are concealed on

    29  the face or the back of such ticket, provided however  up  to  five  new
    30  games may be offered during the fiscal year, seventy-five percent of the
    31  total  amount  for  which  tickets have been sold for such five games in
    32  which the participant purchases a  preprinted  ticket  on  which  dollar
    33  amounts or symbols are concealed on the face or the back of such ticket;
    34  or
    35    (3) fifty-five percent of the total amount for which tickets have been
    36  sold  for any joint, multi-jurisdiction, and out-of-state lottery except
    37  as otherwise provided in paragraph one of subdivision b of this  section
    38  for any joint, multi-jurisdiction, out-of-state video lottery gaming; or
    39    (4) fifty percent of the total amount for which tickets have been sold
    40  for  games  known  as: (A) the "Daily Numbers Game" or "Win 4", discrete
    41  games in which the participants select no more than  three  or  four  of

    42  their own numbers to match with three or four numbers drawn by the divi-
    43  sion  for  purposes of determining winners of such games, (B) "Pick 10",
    44  offered no more than once daily, in which  participants  select  from  a
    45  specified  field  of  numbers a subset of ten numbers to match against a
    46  subset of numbers to be drawn by the division from such field of numbers
    47  for the purpose of determining winners  of  such  game,  (C)  "Take  5",
    48  offered  no  more  than  once daily, in which participants select from a
    49  specified field of numbers a subset of five numbers to match  against  a
    50  subset  of  five  numbers to be drawn by the division from such field of
    51  numbers for purposes of determining winners of such game; or
    52    (5) forty percent of the total amount for which tickets have been sold
    53  for: (A) "Lotto", offered no more than once daily, a  discrete  game  in

    54  which  all  participants  select a specific subset of numbers to match a
    55  specific subset of numbers,  as  prescribed  by  rules  and  regulations
    56  promulgated and adopted by the division, from a larger specific field of
        S. 5883                            91                            A. 8101
 
     1  numbers,  as  also prescribed by such rules and regulations and (B) with
     2  the exception of the game described in paragraph one  of  this  subdivi-
     3  sion,  such  other  state-operated  lottery games which the division may
     4  introduce,  offered  no  more  than  once  daily, commencing on or after
     5  forty-five days following the official  publication  of  the  rules  and
     6  regulations for such game.
     7    The  moneys  in  the  lottery  prize account shall be paid out of such
     8  account on the audit and warrant of the comptroller on  vouchers  certi-

     9  fied or approved by the director or his or her duly designated official.
    10    Prize  money  derived  from ticket sales receipts of a particular game
    11  and deposited in the  lottery  prize  account  in  accordance  with  the
    12  percentages  set  forth  above  may  be used to pay prizes in such game.
    13  Balances in the lottery prize account identified by individual games may
    14  be carried over from one fiscal year to the next to ensure proper payout
    15  of games.
    16    b. 1. Notwithstanding section one  hundred  twenty-one  of  the  state
    17  finance  law, on or before the twentieth day of each month, the division
    18  shall pay into the state treasury, to the credit of  the  state  lottery
    19  fund  created by section ninety-two-c of the state finance law, not less
    20  than forty-five percent of the total amount for which tickets have  been
    21  sold  for  games  defined  in  paragraph  four  of subdivision a of this

    22  section during the preceding month, not less than thirty-five percent of
    23  the total amount for which tickets have been sold for games  defined  in
    24  paragraph  three  of  subdivision a of this section during the preceding
    25  month, not less than twenty percent of the total amount for which  tick-
    26  ets  have  been sold for games defined in paragraph two of subdivision a
    27  of this section during the preceding month, provided  however  that  for
    28  games  with  a  prize payout of seventy-five percent of the total amount
    29  for which tickets have been sold, the division shall pay not  less  than
    30  ten  percent  of sales into the state treasury and not less than twenty-
    31  five percent of the total amount for which tickets have  been  sold  for
    32  games  defined  in paragraph one of subdivision a of this section during
    33  the preceding month; and the balance of the total revenue  after  payout

    34  for  prizes  for  games  known  as "video lottery gaming," including any
    35  joint, multi-jurisdiction, and out-of-state video  lottery  gaming,  (i)
    36  less ten percent of the total revenue wagered after payout for prizes to
    37  be  retained by the division for operation, administration, and procure-
    38  ment purposes; (ii) less a vendor's fee the amount of  which  is  to  be
    39  paid  for  serving  as a lottery agent to the track operator of a vendor
    40  track:
    41    (A) having fewer than one thousand one hundred video gaming  machines,
    42  at  a  rate  of  thirty-five percent for the first fifty million dollars
    43  annually, twenty-eight percent for  the  next  hundred  million  dollars
    44  annually,  and  twenty-five  percent  thereafter  of  the  total revenue
    45  wagered at the vendor track after payout for  prizes  pursuant  to  this
    46  chapter;

    47    (B)  having one thousand one hundred or more video gaming machines, at
    48  a rate of thirty-one percent of the total revenue wagered at the  vendor
    49  track  after payout for prizes pursuant to this chapter, except for such
    50  facility located in the county of Westchester, in which  case  the  rate
    51  shall be thirty percent until March thirty-first, two thousand twelve.
    52    Notwithstanding  the  foregoing, not later than April first, two thou-
    53  sand twelve, the vendor fee shall become thirty-one percent  and  remain
    54  at  that  level  thereafter; and except for Aqueduct racetrack, in which
    55  case the vendor fee shall be thirty-eight percent of the  total  revenue
        S. 5883                            92                            A. 8101
 
     1  wagered  at  the  vendor  track after payout for prizes pursuant to this
     2  chapter;

     3    (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
     4  vendor  track  is  located in an area with a population of less than one
     5  million within the forty mile radius around such track,  at  a  rate  of
     6  thirty-nine  percent for the first fifty million dollars annually, twen-
     7  ty-eight percent for the next  hundred  million  dollars  annually,  and
     8  twenty-five  percent  thereafter  of  the  total  revenue wagered at the
     9  vendor track after payout for prizes pursuant to this chapter;
    10    (D) notwithstanding clauses (A), (B) and  (C)  of  this  subparagraph,
    11  when the vendor track is located within fifteen miles of a Native Ameri-
    12  can  class  III  gaming  facility  at a rate of forty-one percent of the
    13  total revenue wagered at the vendor track after payout for prizes pursu-
    14  ant to this chapter;
    15    (E) notwithstanding clauses (A), (B), (C) and  (D)  of  this  subpara-

    16  graph,  when a Native American class III gaming facility is established,
    17  after the effective date of this subparagraph, within fifteen  miles  of
    18  the  vendor  track,  at a rate of forty-one percent of the total revenue
    19  wagered after payout for prizes pursuant to this chapter;
    20    (E-1) for purposes of this subdivision, the term  "class  III  gaming"
    21  shall have the meaning defined in 25 U.S.C. § 2703(8).
    22    (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
    23  agraph,  when  a  vendor track, is located in Sullivan county and within
    24  sixty miles from any gaming facility in a contiguous state  such  vendor
    25  fee  shall,  for a period of six years commencing April first, two thou-
    26  sand eight, be at a rate of  forty-one  percent  of  the  total  revenue
    27  wagered  at  the  vendor  track after payout for prizes pursuant to this

    28  chapter, after which time such rate shall be as for all tracks in clause
    29  (C) of this subparagraph.
    30    (G) notwithstanding clauses (A), (B), (C), (D), (E) and  (F)  of  this
    31  subparagraph,  when [no more than one vendor track] a resort facility to
    32  be operated by other than a  presently  licensed  video  lottery  gaming
    33  operator  or  any  entity  affiliated therewith selected by the division
    34  following a competitive process located in [the  town  of  Thompson  in]
    35  Sullivan  county  [at  the site of the former Concord Resort] at which a
    36  qualified capital investment has been made and no fewer than  one  thou-
    37  sand full-time, permanent employees have been newly hired, is located in
    38  Sullivan  county and is within sixty miles from any gaming facility in a

    39  contiguous state, then for a period of  forty  years  the  vendor's  fee
    40  shall  equal  the total revenue wagered at the vendor track after payout
    41  of prizes pursuant to this subdivision reduced by  the  greater  of  (i)
    42  twenty-five  percent of total revenue after payout for prizes for "video
    43  lottery games" or (ii) for the first eight years  of  operation  thirty-
    44  eight million dollars, and beginning in the ninth year of operation such
    45  amount  shall  increase  annually  by  the lesser of the increase in the
    46  consumer price index or two percent, plus seven percent of total revenue
    47  after payout of prizes. In addition, in the  event  the  vendor  fee  is
    48  calculated  pursuant  to  subclause (i) of this clause, the vendor's fee
    49  shall be further reduced by 11.11 percent of the amount by  which  total
    50  revenue  after  payout  for  prizes  exceeds two hundred fifteen million

    51  dollars, but in no  event  shall  such  reduction  exceed  five  million
    52  dollars.
    53    Provided, however, that in the case of [no more than one vendor track]
    54  a  resort  facility located [in the town of Thompson] in Sullivan county
    55  [at the site of the former Concord  Resort]  with  a  qualified  capital
    56  investment,  and  one  thousand full-time, permanent employees if at any
        S. 5883                            93                            A. 8101
 
     1  time after three years of  opening  operations  of  the  licensed  video
     2  gaming  facility  [or  licensed vendor track], the [vendor track] resort
     3  facility experiences an employment shortfall, then the recapture  amount
     4  shall apply, for only such period as the shortfall exists.

     5    For  the purposes of this section "qualified capital investment" shall
     6  mean an investment of a  minimum  of  six  hundred  million  dollars  as
     7  reflected  by  audited financial statements of which not less than three
     8  hundred million dollars shall be comprised of  equity  and/or  mezzanine
     9  financing  as  an initial investment in a county where twelve percent of
    10  the population is below the federal poverty level  as  measured  by  the
    11  most  recent  Bureau of Census Statistics prior to the qualified capital
    12  investment commencing that results in the construction,  development  or
    13  improvement  of  at  least  one  eighteen  hole  golf  course,  and  the
    14  construction and issuance of certificates of occupancy for hotels, lodg-
    15  ing, spas, dining, retail and entertainment venues, parking garages  and
    16  other  capital  improvements at or adjacent to the licensed video gaming

    17  facility or licensed vendor track which promote or  encourage  increased
    18  attendance at such facilities.
    19    For  the  purposes  of  this  section, "full-time, permanent employee"
    20  shall mean an employee who has worked at  the  video  gaming  facility[,
    21  vendor  track] or related and adjacent facilities for a minimum of thir-
    22  ty-five hours per week for not less than four consecutive weeks and  who
    23  is  entitled to receive the usual and customary fringe benefits extended
    24  to other employees with comparable rank and  duties;  or  two  part-time
    25  employees  who have worked at the video gaming facility, vendor track or
    26  related and adjacent facilities for a combined  minimum  of  thirty-five
    27  hours  per  week  for  not  less than four consecutive weeks and who are
    28  entitled to receive the usual and customary fringe benefits extended  to

    29  other employees with comparable rank and duties.
    30    For the purpose of this section "employment goal" shall mean one thou-
    31  sand  five  hundred  full-time  permanent employees after three years of
    32  opening operations of the licensed video gaming  facility  [or  licensed
    33  vendor track].
    34    For  the  purpose  of this section "employment shortfall" shall mean a
    35  level of employment that falls below the employment goal,  as  certified
    36  annually  by  vendor's  certified  accountants  and  the chairman of the
    37  empire state development corporation.
    38    For the purposes of this section "recapture  amount"  shall  mean  the
    39  difference  between  the  amount  of  the  vendor's fee paid to a vendor
    40  [track] with a qualified capital investment, and the vendor  fee  other-
    41  wise payable to a vendor [track] pursuant to clause (F) of this subpara-

    42  graph,  that  is  reimbursable  by  the vendor track to the division for
    43  payment into the state treasury, to the credit of the state lottery fund
    44  created by section ninety-two-c of the state  finance  law,  due  to  an
    45  employment  shortfall  pursuant  to  the following schedule only for the
    46  period of the employment shortfall:
    47    (i) one hundred percent of the  recapture  amount  if  the  employment
    48  shortfall  is  greater  than  sixty-six  and  two-thirds  percent of the
    49  employment goal;
    50    (ii) seventy-five percent of the recapture amount  if  the  employment
    51  shortfall  is  greater  than  thirty-three  and one-third percent of the
    52  employment goal;
    53    (iii) forty-nine and one-half percent of the recapture amount  if  the
    54  employment  shortfall  is  greater than thirty percent of the employment
    55  goal;

        S. 5883                            94                            A. 8101
 
     1    (iv) twenty-two percent of the  recapture  amount  if  the  employment
     2  shortfall is greater than twenty percent of the employment goal;
     3    (v) eleven percent of the recapture amount if the employment shortfall
     4  is greater than ten percent of the employment goal.
     5    (G)  notwithstanding  clauses  (A), (B), (C), (D), (E) and (F) of this
     6  subparagraph, when no more than one vendor track located in the town  of
     7  Thompson  in Sullivan county at the site of the former Concord Resort at
     8  which a qualified capital investment has been made and no fewer than one
     9  thousand full-time,  permanent  employees  have  been  newly  hired,  is
    10  located  in  Sullivan  county  and is within sixty miles from any gaming
    11  facility in a contiguous state, then for a period  of  forty  years  the

    12  vendor's  fee  shall equal the total revenue wagered at the vendor track
    13  after payout of prizes pursuant  to  this  subdivision  reduced  by  the
    14  greater  of  (i)  twenty-five  percent of total revenue after payout for
    15  prizes for "video lottery games" or (ii) for the first  eight  years  of
    16  operation  thirty-eight million dollars, and beginning in the ninth year
    17  of operation such amount shall increase annually by the  lesser  of  the
    18  increase  in the consumer price index or two percent, plus seven percent
    19  of total revenue after payout of prizes. In addition, in the  event  the
    20  vendor  fee  is calculated pursuant to subclause (i) of this clause, the
    21  vendor's fee shall be further reduced by 11.11 percent of the amount  by
    22  which  total revenue after payout for prizes exceeds two hundred fifteen
    23  million dollars, but in  no  event  shall  such  reduction  exceed  five
    24  million dollars.

    25    Provided,  however,  that in the case of no more than one vendor track
    26  located in the town of Thompson in Sullivan county at the  site  of  the
    27  former Concord Resort with a qualified capital investment, and one thou-
    28  sand  full-time, permanent employees if at any time after three years of
    29  opening operations of the licensed video  gaming  facility  or  licensed
    30  vendor track, the vendor track experiences an employment shortfall, then
    31  the  recapture amount shall apply, for only such period as the shortfall
    32  exists.
    33    For the purposes of this section "qualified capital investment"  shall
    34  mean  an  investment  of  a  minimum  of  six hundred million dollars as
    35  reflected by audited financial statements of which not less  than  three
    36  hundred  million  dollars  shall be comprised of equity and/or mezzanine
    37  financing as an initial investment in a county where twelve  percent  of

    38  the  population  is  below  the federal poverty level as measured by the
    39  most recent Bureau of Census Statistics prior to the  qualified  capital
    40  investment  commencing  that results in the construction, development or
    41  improvement  of  at  least  one  eighteen  hole  golf  course,  and  the
    42  construction and issuance of certificates of occupancy for hotels, lodg-
    43  ing,  spas, dining, retail and entertainment venues, parking garages and
    44  other capital improvements at or adjacent to the licensed  video  gaming
    45  facility  or  licensed vendor track which promote or encourage increased
    46  attendance at such facilities.
    47    For the purposes of  this  section,  "full-time,  permanent  employee"
    48  shall  mean  an  employee  who  has worked at the video gaming facility,
    49  vendor track or related and adjacent facilities for a minimum  of  thir-

    50  ty-five  hours per week for not less than four consecutive weeks and who
    51  is entitled to receive the usual and customary fringe benefits  extended
    52  to  other  employees  with  comparable rank and duties; or two part-time
    53  employees who have worked at the video gaming facility, vendor track  or
    54  related  and  adjacent  facilities for a combined minimum of thirty-five
    55  hours per week for not less than four  consecutive  weeks  and  who  are
        S. 5883                            95                            A. 8101
 
     1  entitled  to receive the usual and customary fringe benefits extended to
     2  other employees with comparable rank and duties.
     3    For the purpose of this section "employment goal" shall mean one thou-
     4  sand  five  hundred  full-time  permanent employees after three years of
     5  opening operations of the licensed video  gaming  facility  or  licensed

     6  vendor track.
     7    For  the  purpose  of this section "employment shortfall" shall mean a
     8  level of employment that falls below the employment goal,  as  certified
     9  annually  by  vendor's  certified  accountants  and  the chairman of the
    10  empire state development corporation.
    11    For the purposes of this section "recapture  amount"  shall  mean  the
    12  difference between the amount of the vendor's fee paid to a vendor track
    13  with  a qualified capital investment, and the vendor fee otherwise paya-
    14  ble to a vendor track pursuant to clause (F) of this subparagraph,  that
    15  is reimbursable by the vendor track to the division for payment into the
    16  state  treasury,  to  the  credit  of  the state lottery fund created by
    17  section ninety-two-c of the state finance  law,  due  to  an  employment
    18  shortfall  pursuant to the following schedule only for the period of the
    19  employment shortfall:

    20    (i) one hundred percent of the  recapture  amount  if  the  employment
    21  shortfall  is  greater  than  sixty-six  and  two-thirds  percent of the
    22  employment goal;
    23    (ii) seventy-five percent of the recapture amount  if  the  employment
    24  shortfall  is  greater  than  thirty-three  and one-third percent of the
    25  employment goal;
    26    (iii) forty-nine and one-half percent of the recapture amount  if  the
    27  employment  shortfall  is  greater than thirty percent of the employment
    28  goal;
    29    (iv) twenty-two percent of the  recapture  amount  if  the  employment
    30  shortfall is greater than twenty percent of the employment goal;
    31    (v) eleven percent of the recapture amount if the employment shortfall
    32  is greater than ten percent of the employment goal.
    33    (G-1)  Notwithstanding clause (A) and (B) of this subparagraph, when a

    34  video lottery gaming facility is located in either the county of  Nassau
    35  or  Suffolk  and  is  operated  by a corporation established pursuant to
    36  section five hundred two of the racing, pari-mutuel wagering and  breed-
    37  ing law at a rate of thirty-five percent of the total revenue wagered at
    38  the vendor track after payout for prizes pursuant to this chapter;
    39    (G-2)  Notwithstanding clause (A) and (B) of this subparagraph, when a
    40  video lottery gaming facility is located in the county of Nassau  estab-
    41  lished  pursuant  to  a competitive process pursuant to paragraph (5) of
    42  section six thousand seventeen-a of this article at a  rate  of  thirty-
    43  five  percent  of  the  total  revenue wagered at the vendor track after

    44  payout for prizes pursuant to this chapter;
    45    (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)  and  (G)  of
    46  this  subparagraph, the track operator of a vendor track shall be eligi-
    47  ble for a vendor's capital award of up to  four  percent  of  the  total
    48  revenue  wagered at the vendor track after payout for prizes pursuant to
    49  this chapter, which  shall  be  used  exclusively  for  capital  project
    50  investments  to improve the facilities of the vendor track which promote
    51  or encourage increased attendance at the video lottery  gaming  facility
    52  including,  but  not limited to hotels, other lodging facilities, enter-
    53  tainment  facilities,  retail  facilities,  dining  facilities,   events
    54  arenas,  parking  garages  and  other improvements that enhance facility
    55  amenities; provided that such capital investments shall be  approved  by

    56  the  division, in consultation with the state racing and wagering board,
        S. 5883                            96                            A. 8101
 
     1  and that such vendor track demonstrates that such  capital  expenditures
     2  will  increase  patronage at such vendor track's facilities and increase
     3  the amount of revenue generated to support state education programs. The
     4  annual  amount of such vendor's capital awards that a vendor track shall
     5  be eligible to receive shall be limited  to  two  million  five  hundred
     6  thousand  dollars,  except for Aqueduct racetrack, for which there shall
     7  be no vendor's capital awards. Except for tracks having  less  than  one
     8  thousand one hundred video gaming machines, each track operator shall be
     9  required  to  co-invest  an  amount  of capital expenditure equal to its

    10  cumulative vendor's capital award. For all tracks, except  for  Aqueduct
    11  racetrack,  the  amount  of  any vendor's capital award that is not used
    12  during any one year period may be carried  over  into  subsequent  years
    13  ending  before  April first, two thousand fourteen. Any amount attribut-
    14  able to a capital expenditure approved prior to April first,  two  thou-
    15  sand  fourteen  and  completed  before April first, two thousand sixteen
    16  shall be eligible to receive the vendor's capital award.  In  the  event
    17  that  a  vendor  track's  capital expenditures, approved by the division
    18  prior to April first, two thousand fourteen and completed prior to April
    19  first, two thousand sixteen, exceed the vendor track's cumulative  capi-
    20  tal  award  during the five year period ending April first, two thousand
    21  fourteen, the vendor shall continue to receive the capital  award  after

    22  April  first, two thousand fourteen until such approved capital expendi-
    23  tures are paid to the vendor track subject to  any  required  co-invest-
    24  ment.  In  no  event  shall  any vendor track that receives a vendor fee
    25  pursuant to clause (F) or (G) of this subparagraph  be  eligible  for  a
    26  vendor's  capital  award  under  this  section. Any operator of a vendor
    27  track which has received a vendor's capital award,  choosing  to  divest
    28  the capital improvement toward which the award was applied, prior to the
    29  full depreciation of the capital improvement in accordance with general-
    30  ly  accepted accounting principles, shall reimburse the state in amounts
    31  equal to the total of any such awards. Any capital  award  not  approved
    32  for  a  capital  expenditure at a video lottery gaming facility by April
    33  first, two thousand fourteen shall be deposited into the  state  lottery

    34  fund for education aid; and
    35    (I)  Notwithstanding  any  provision of law to the contrary, free play
    36  allowance credits authorized by the division pursuant to  subdivision  f
    37  of  section  sixteen  hundred  seventeen-a  of this article shall not be
    38  included in the calculation of the total amount wagered on video lottery
    39  games, the total amount wagered after payout of prizes, the vendor  fees
    40  payable  to  the operators of video lottery facilities, vendor's capital
    41  awards, fees payable to the division's video  lottery  gaming  equipment
    42  contractors, or racing support payments.
    43    (iii) less an additional vendor's marketing allowance at a rate of ten
    44  percent  for  the  first  one hundred million dollars annually and eight
    45  percent thereafter of the total revenue  wagered  at  the  vendor  track
    46  after payout for prizes to be used by the vendor track for the marketing

    47  and  promotion  and  associated  costs of its video lottery gaming oper-
    48  ations and pari-mutuel horse racing operations,  as  long  as  any  such
    49  costs associated with pari-mutuel horse racing operations simultaneously
    50  encourage  increased  attendance  at  such vendor's video lottery gaming
    51  facilities, consistent with the customary manner of marketing comparable
    52  operations in the industry and subject to the overall supervision of the
    53  division; provided, however,  that  the  additional  vendor's  marketing
    54  allowance shall not exceed eight percent in any year for any operator of
    55  a  racetrack  located  in the county of Westchester or Queens; provided,
    56  however, a vendor track that receives a vendor fee  pursuant  to  clause
        S. 5883                            97                            A. 8101
 

     1  (G)  of  subparagraph (ii) of this paragraph shall not receive the addi-
     2  tional vendor's marketing allowance. In establishing the vendor fee, the
     3  division shall ensure the maximum lottery support  for  education  while
     4  also  ensuring  the  effective implementation of section sixteen hundred
     5  seventeen-a  of  this  article  through  the  provision  of   reasonable
     6  reimbursements  and  compensation  to vendor tracks for participation in
     7  such program. Within twenty days after any award of lottery prizes,  the
     8  division  shall  pay into the state treasury, to the credit of the state
     9  lottery fund, the balance of all moneys received from the  sale  of  all
    10  tickets  for  the  lottery  in  which such prizes were awarded remaining
    11  after provision for the payment of prizes as herein provided. Any reven-
    12  ues derived from the sale of advertising on  lottery  tickets  shall  be

    13  deposited in the state lottery fund.
    14    2. As consideration for the operation of a video lottery gaming facil-
    15  ity,  the division, shall cause the investment in the racing industry of
    16  a portion of the vendor fee received pursuant to paragraph one  of  this
    17  subdivision  in  the  manner  set  forth in this subdivision.   With the
    18  exception of Aqueduct  racetrack,  each  such  track  shall  dedicate  a
    19  portion  of  its vendor fees, received pursuant to clause (A), (B), (C),
    20  (D), (E), (F), or (G) of subparagraph (ii)  of  paragraph  one  of  this
    21  subdivision,  solely  for the purpose of enhancing purses at such track,
    22  in an amount equal to eight and  three-quarters  percent  of  the  total
    23  revenue  wagered  at  the  vendor  track  after  pay out for prizes. One
    24  percent of such purse enhancement amount shall be  paid  to  the  gaming

    25  commission  to  be  used exclusively to promote and ensure equine health
    26  and safety in New York. Any  portion  of  such  funding  to  the  gaming
    27  commission  unused  during  a fiscal year shall be returned to the video
    28  lottery gaming operators on a pro rata  basis  in  accordance  with  the
    29  amounts  originally  contributed  by each operator and shall be used for
    30  the purpose of enhancing purses at such track.  In  addition,  with  the
    31  exception  of  Aqueduct  racetrack, one and one-quarter percent of total
    32  revenue wagered at the vendor track after pay out for  prizes,  received
    33  pursuant  to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph
    34  (ii) of paragraph one of this subdivision, shall be distributed  to  the
    35  appropriate  breeding  fund  for  the manner of racing conducted by such
    36  track.
    37    Provided, further, that nothing in this paragraph shall  prevent  each

    38  track  from  entering  into an agreement, not to exceed five years, with
    39  the organization authorized to represent its  horsemen  to  increase  or
    40  decrease  the portion of its vendor fee dedicated to enhancing purses at
    41  such track during the years of participation by such track, or  to  race
    42  fewer dates than required herein.
    43    3.  Nothing  in  paragraph  two  of  this subdivision shall affect any
    44  agreement in effect on or before the effective date of  this  paragraph,
    45  except  that  the  obligation  to  pay funds to the gaming commission to
    46  promote  and  ensure  equine  health  and  safety  shall  supersede  any
    47  provision to the contrary in any such agreement.
    48    c.  1.  The  specifications  for  video  lottery gaming, including any
    49  joint, multi-jurisdiction, and out-of-state video lottery gaming,  shall
    50  be  designed in such a manner as to pay prizes that average no less than

    51  ninety percent of sales.
    52    2. Of the ten percent retained  by  the  division  for  administrative
    53  purposes,  any amounts beyond that which are necessary for the operation
    54  and administration of this pilot  program  shall  be  deposited  in  the
    55  lottery education account.
        S. 5883                            98                            A. 8101
 
     1    d.  Notwithstanding  any  law, rule or regulation to the contrary, any
     2  successor to the New York Racing Association, Inc. with respect  to  the
     3  operation  and maintenance of video lottery gaming at Aqueduct racetrack
     4  shall be deemed the successor to the New York Racing  Association,  Inc.
     5  for purposes of being subject to existing contracts and loan agreements,
     6  if  any,  entered into by the New York Racing Association, Inc. directly
     7  related to the construction, operation, management and  distribution  of

     8  revenues of the video lottery gaming facility at Aqueduct racetrack.
     9    e.  The  video  lottery  gaming  operator  selected to operate a video
    10  lottery terminal facility at Aqueduct will be subject to a memorandum of
    11  understanding between the governor, temporary president  of  the  senate
    12  and  the  speaker  of  the assembly. Notwithstanding subparagraph (i) of
    13  paragraph a of subdivision eight of section two hundred  twelve  of  the
    14  racing, pari-mutuel wagering and breeding law, the state, pursuant to an
    15  agreement  with  the  video  lottery  gaming operator to operate a video
    16  lottery terminal facility at Aqueduct, may authorize, as  part  of  such
    17  agreement  or  in  conjunction  with  such  agreement  at the time it is
    18  executed, additional development at the Aqueduct  racing  facility.  The
    19  selection  will be made in consultation with the franchised corporation,

    20  but is not subject to such corporation's approval. The franchised corpo-
    21  ration shall not be eligible to compete to operate or to operate a video
    22  lottery terminal facility at Aqueduct.  The  state  will  use  its  best
    23  efforts  to  ensure that the video lottery terminal facility at Aqueduct
    24  is opened as soon as is practicable and will, if practicable, pursue the
    25  construction of a temporary video lottery terminal facility at  Aqueduct
    26  subject to staying within an agreed budget for such video lottery termi-
    27  nal  facility  and  subject  to  such  temporary  facility not having an
    28  adverse impact on opening of the  permanent  facility  at  Aqueduct.  To
    29  facilitate  the opening of the video lottery gaming facility at Aqueduct
    30  as soon as is practicable, the division of the lottery  may  extend  the
    31  term of any existing contract related to the video lottery system.

    32    f.  As  consideration  for  the  operation of the video lottery gaming
    33  facility at Aqueduct racetrack, the division shall cause the  investment
    34  in the racing industry of the following percentages of the vendor fee to
    35  be deposited or paid, as follows:
    36    1.  Six  and  one-half  percent  of  the total wagered after payout of
    37  prizes for the first year of operation of video lottery gaming at  Aque-
    38  duct  racetrack,  seven  percent  of  the  total wagered after payout of
    39  prizes for the second year of operation, and seven and one-half  percent
    40  of the total wagered after payout of prizes for the third year of opera-
    41  tion  and  thereafter,  for  the purpose of enhancing purses at Aqueduct
    42  racetrack, Belmont Park racetrack and Saratoga race course. One  percent
    43  of  such purse enhancement amount shall be paid to the gaming commission

    44  to be used exclusively to promote and ensure equine health and safety in
    45  New York. Any portion of such funding to the  gaming  commission  unused
    46  during a fiscal year shall be returned on a pro rata basis in accordance
    47  with  the  amounts  originally  contributed  and  shall  be used for the
    48  purpose of enhancing purses at such tracks.
    49    2. One percent of the total wagered after payout  of  prizes  for  the
    50  first  year  of operation of video lottery gaming at Aqueduct racetrack,
    51  one and one-quarter percent of the total wagered after payout of  prizes
    52  for  the  second  year of operation, and one and one-half percent of the
    53  total wagered after payout of prizes for the third year of operation and
    54  thereafter, for an appropriate breeding fund for the  manner  of  racing
    55  conducted  at  Aqueduct  racetrack,  Belmont Park racetrack and Saratoga
    56  race course.

        S. 5883                            99                            A. 8101
 
     1    3. Four percent of the total revenue wagered after payout of prizes to
     2  be deposited into an account of the franchised  corporation  established
     3  pursuant  to section two hundred six of the racing, pari-mutuel wagering
     4  and breeding law to be used for capital expenditures in maintaining  and
     5  upgrading  Aqueduct  racetrack, Belmont Park racetrack and Saratoga race
     6  course.
     7    4. Three percent of the total revenue wagered after payout for  prizes
     8  to  be  deposited  into  an account of the franchised corporation estab-
     9  lished pursuant to section two hundred six of  the  racing,  pari-mutuel
    10  wagering  and  breeding  law  to be used for general thoroughbred racing
    11  operations at Aqueduct racetrack, Belmont Park  racetrack  and  Saratoga
    12  race course.

    13    5.  Paragraphs  one,  two, three and four of this subdivision shall be
    14  known collectively as the "racing support payments".
    15    (f-2) As consideration for operation of a video lottery gaming facili-
    16  ty located in the county of Nassau established pursuant to a competitive
    17  process pursuant to paragraph (5) of section six thousand seventeen a of
    18  this article, the division shall cause the in the racing industry of the
    19  following percentages of the vendor fee  to  be  deposited  or  paid  as
    20  follows:
    21    (1)  Two and three tenths percent of the total wagered after payout of
    22  prizes for the  purpose  of  enhancing  purses  at  Aqueduct  racetrack,
    23  Belmont Park racetrack and Saratoga race course, provided, however, that

    24  any  amount  that is in excess of the amount necessary to maintain purse
    25  support from video lottery gaming at Aqueduct  racetrack,  Belmont  Park
    26  racetrack  and Saratoga race course at the same level realized in in two
    27  thousand thirteen, to be adjusted by the consumer price  index  for  all
    28  urban  consumers,  as published annually by the United States department
    29  of bureau of labor statistics, shall  be  instead  be  returned  to  the
    30  commission.
    31    (2)  five  tenths  percent of the total wagered after payout of prizes
    32  for the appropriate breeding fund for the manner of racing  at  Aqueduct
    33  racetrack,  Belmont  Park  racetrack and Saratoga race course, provided,
    34  however, that any amount that is in excess of the  amount  necessary  to

    35  maintain payments from video lottery gaming at Aqueduct racetrack at the
    36  same  level  realized in in two thousand thirteen, to be adjusted by the
    37  consumer price index for all urban consumers, as published  annually  by
    38  the  United  States  department  of bureau of labor statistics, shall be
    39  instead be returned to the commission.
    40    (3) one and three tenths percent of the total  revenue  wagered  after
    41  payout  of  prizes  to  be  deposited  into an account of the franchised
    42  corporation established pursuant to  section  two  hundred  six  of  the
    43  racing,  pari-mutuel  wagering  and  breeding law to be used for capital
    44  expenditures in maintaining and upgrading  Aqueduct  racetrack,  Belmont

    45  Park  racetrack  and  Saratoga  race course, provided, however, that any
    46  amount that is in excess of the amount necessary  to  maintain  payments
    47  for capital expenditures from video lottery gaming at Aqueduct racetrack
    48  at  the  same level realized in in two thousand thirteen, to be adjusted
    49  by the consumer price index for all urban consumers, as published  annu-
    50  ally  by  the  United  States  department of bureau of labor statistics,
    51  shall be instead be returned to the commission.
    52    (4) Nine tenths percent of the total revenue wagered after payout  for
    53  prizes  to  be  deposited  into an account of the franchised corporation
    54  established pursuant to section two hundred six of the racing,  pari-mu-

    55  tuel  wagering  and  breeding  law  to  be used for general thoroughbred
    56  racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
        S. 5883                            100                           A. 8101
 
     1  Saratoga  race  course,  provided,  however,  that any amount that is in
     2  excess  of  the  amount  necessary  to  maintain  payments  for  general
     3  thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
     4  racetrack  at the same level realized in in two thousand thirteen, to be
     5  adjusted by the  consumer  price  index  for  all  urban  consumers,  as
     6  published  annually  by  the United States department of bureau of labor
     7  statistics, shall be instead be returned to the commission.

     8    g. In the event the state elects to construct a video lottery terminal
     9  facility at the Aqueduct racetrack, all video lottery terminal  revenues
    10  payable  to  the video lottery gaming operator at the Aqueduct racetrack
    11  remaining after payment of the racing support payments  shall  first  be
    12  used  to  repay the state's advances for (i) confirmation of the chapter
    13  eleven plan of reorganization  and  cash  advances  for  the  franchised
    14  corporation's  operations  following  confirmation of the chapter eleven
    15  plan of reorganization and (ii) the amount  expended  by  the  state  to
    16  construct  such  video  lottery  terminal facility at Aqueduct racetrack
    17  pursuant to an agreement with the state. Subparagraphs (i) and  (ii)  of
    18  this  paragraph  shall  be  defined  as the state advance amount and the
    19  amounts payable to the division of the lottery.

    20    h. In no circumstance shall net proceeds of the lottery, including the
    21  proceeds from video lottery gaming, be used for the payment of  non-lot-
    22  tery expenses of the gaming commission, administrative or otherwise.
    23    §  43.  Section  1001 of the racing, pari-mutuel wagering and breeding
    24  law, as added by chapter 363 of the laws of 1984, subdivisions n, o  and
    25  p  as  added  by  chapter 445 of the laws of 1997, is amended to read as
    26  follows:
    27    § 1001. Definitions. As used in  this  article,  the  following  terms
    28  shall have the following meanings:
    29    a.  "Simulcast" means the telecast of live audio and visual signals of
    30  running, harness or quarter horse races [conducted in the state] for the
    31  purposes of pari-mutuel wagering;
    32    b. "Track" means the grounds or enclosures within  which  horse  races

    33  are conducted by any person, association or corporation lawfully author-
    34  ized  to  conduct such races in accordance with the terms and conditions
    35  of this chapter or the laws of another jurisdiction;
    36    c. "Sending track" means any track from which simulcasts originate;
    37    d. "Receiving track" means any track where simulcasts originated  from
    38  another track are displayed;
    39    e.  "Applicant"  means  any  association [or], corporation or business
    40  entity  applying  for  a  simulcast  license  in  accordance  with   the
    41  provisions of this article;
    42    f.  "Operator"  means  any  association  [or], corporation or business
    43  entity operating a simulcast facility in accordance with the  provisions
    44  of this article;

    45    g. "Regional track or tracks" means any or all tracks located within a
    46  region  defined  as  an  off-track  betting  region, except that for the
    47  purposes of section one thousand eight of this article any track located
    48  in New York city, or Nassau, Suffolk and Westchester counties, shall  be
    49  deemed  a  regional  track  for  all regions located in district one, as
    50  defined in this section;
    51    h. "[The board]Commission" means the state [racing and wagering board]
    52  gaming commission;
    53    i. "Branch office" means an establishment maintained and  operated  by
    54  an off-track betting corporation, where off-track pari-mutuel betting on
    55  horse races may be placed in accordance with the terms and conditions of
    56  this chapter and rules and regulations issued pursuant thereto;

        S. 5883                            101                           A. 8101
 
     1    j.  "Simulcast  facility" means those facilities within the state that
     2  are authorized pursuant to the provisions of  this  article  to  display
     3  simulcasts for pari-mutuel wagering purposes;
     4    k.  "Off-track  betting  region"  means  those  regions  as defined in
     5  section five hundred nineteen of this chapter;
     6    l. "Simulcast theater" means a simulcast  facility  which  is  also  a
     7  public entertainment and wagering facility, and which may include any or
     8  all  of  the following: a large screen television projection and display
     9  unit, a display system for odds, pools, and  payout  prices,  areas  for
    10  viewing and seating, a food and beverage facility, and any other conven-
    11  ience  currently  provided at racetracks and not inconsistent with local
    12  zoning ordinances;

    13    m. "Simulcast districts" means one or  more  of  the  following  named
    14  districts  comprised  of  the  counties  within which pari-mutuel racing
    15  events are conducted as follows:
    16      District 1                    New York City, Suffolk, Nassau, and
    17                                      Westchester counties
    18      District 2                    Sullivan county
    19      District 3                    Saratoga county
    20      District 4                    Oneida county
    21      District 5                    Erie, Genesee and Ontario counties
    22    n. "Initial out-of-state thoroughbred track" means the track  commenc-
    23  ing  full-card  simulcasting to New York prior to any other out-of-state
    24  thoroughbred track after 1:00 PM on any calendar day.
    25    o. "Second out-of-state thoroughbred track" means the track (or subse-
    26  quent track or  tracks  where  otherwise  authorized  by  this  article)

    27  conducting  full-card  simulcasting  to  New York after the race program
    28  from the initial out-of-state  thoroughbred  track  that  has  commenced
    29  simulcasting on any calendar day.
    30    p.  "Mixed  meeting"  means  a race meeting which has a combination of
    31  thoroughbred, quarter horse, Appaloosa, paint, and/or Arabian racing  on
    32  the same race program.
    33    q.  "Account wagering" means a form of pari-mutuel wagering in which a
    34  person establishes an account with  an  account  wagering  licensee  and
    35  subsequently communicates via telephone or other electronic media to the
    36  account  wagering licensee wagering instructions concerning the funds in
    37  such person's account and wagers to be placed  on  the  account  owner's
    38  behalf.
    39    r.  "Account  wagering licensee" means racing associations, and corpo-

    40  rations; franchised corporations, off-track  betting  corporations,  and
    41  commission approved multi-jurisdictional account wagering providers that
    42  have been authorized by the commission to offer account wagering.
    43    s.  "Dormant  account"  means  an  account wagering account held by an
    44  account wagering licensee in which there has been no  wagering  activity
    45  for three years.
    46    t.  "Multi-jurisdictional  account wagering provider" means a business
    47  entity domiciled in a jurisdiction, other than the state  of  New  York,
    48  that  does  not  operate either a simulcast facility that is open to the
    49  public within the state of New York or a licensed  or  franchised  race-
    50  track within the state, but which is licensed by such other jurisdiction

    51  to  offer pari-mutuel account wagering on races such provider simulcasts
    52  and other races it offers in its wagering menu to persons located in  or
    53  out of the jurisdiction issuing such license.
    54    §  44.  Section  1002 of the racing, pari-mutuel wagering and breeding
    55  law, as added by chapter 363 of the  laws  of  1984,  subdivision  2  as
        S. 5883                            102                           A. 8101
 
     1  amended  by  chapter  18  of  the  laws  of  2008, is amended to read as
     2  follows:
     3    § 1002. General jurisdiction. 1. The [state racing and wagering board]
     4  commission  shall  have  general  jurisdiction  over the simulcasting of
     5  horse races and account wagering  within  the  state,  and  the  [board]

     6  commission  may  issue  rules  and  regulations  in  accordance with the
     7  provisions of this article.
     8    2. The [board] commission shall annually submit reports on  or  before
     9  July  first following each year in which simulcasting and account wager-
    10  ing is conducted to the director of the  budget,  the  chairman  of  the
    11  senate finance committee and the chairman of the assembly ways and means
    12  committee evaluating the results of such simulcasts and account wagering
    13  on  the  compatibility with the well-being of the horse racing, breeding
    14  and pari-mutuel wagering industries in this state and make any recommen-
    15  dations it deems appropriate. Such reports  may  be  submitted  together
    16  with  the  reports  required  by  subdivision two of section two hundred

    17  thirty-six and subparagraph (iii) of paragraph a and subparagraph (i) of
    18  paragraph b of subdivision one of section three hundred eighteen of this
    19  chapter.
    20    § 45. Section 1003 of the racing, pari-mutuel  wagering  and  breeding
    21  law, as added by chapter 363 of the laws of 1984, subdivision 1 as sepa-
    22  rately  amended  by chapters 2 and 70 of the laws of 1995, paragraph (a)
    23  of subdivision 1 as amended by section 1 of part U of chapter 59 of  the
    24  laws  of  2013, the opening paragraph of paragraph a of subdivision 2 as
    25  amended by chapter 538 of the laws of 1999 and subdivision 5 as  amended
    26  by chapter 287 of the laws of 1985, is amended to read as follows:
    27    §  1003.  Licenses for simulcast facilities. 1. (a) Any racing associ-
    28  ation or corporation or regional off-track betting corporation,  author-
    29  ized  to  conduct  pari-mutuel  wagering under this chapter, desiring to

    30  display the simulcast of horse races on which pari-mutuel betting  shall
    31  be permitted in the manner and subject to the conditions provided for in
    32  this article may apply to the [board] commission for a license so to do.
    33  Applications  for licenses shall be in such form as may be prescribed by
    34  the [board] commission and shall contain such information or other mate-
    35  rial or evidence as the [board] commission may require. No license shall
    36  be issued by the [board] commission  authorizing  the  simulcast  trans-
    37  mission  of  thoroughbred  races from a track located in Suffolk county.
    38  The fee for such licenses shall be five hundred  dollars  per  simulcast
    39  facility and for account wagering licensees that do not operate either a

    40  simulcast  facility  that  is open to the public within the state of New
    41  York or a licensed racetrack within the state, twenty  thousand  dollars
    42  per  year  payable by the licensee to the [board] commission for deposit
    43  into the general fund. Except as provided [herein] in this section,  the
    44  [board]  commission  shall not approve any application to conduct simul-
    45  casting into individual or group residences, homes or  other  areas  for
    46  the  purposes  of  or in connection with pari-mutuel wagering. The board
    47  may approve simulcasting into residences, homes or  other  areas  to  be
    48  conducted jointly by one or more regional off-track betting corporations
    49  and one or more of the following: a franchised corporation, thoroughbred

    50  racing  corporation  or  a  harness  racing  corporation or association;
    51  provided (i) the simulcasting consists only  of  those  races  on  which
    52  pari-mutuel  betting is authorized by this chapter at one or more simul-
    53  cast facilities for each of the  contracting  off-track  betting  corpo-
    54  rations  which  shall include wagers made in accordance with section one
    55  thousand fifteen, one thousand sixteen and  one  thousand  seventeen  of
    56  this  article;  provided  further  that the contract provisions or other
        S. 5883                            103                           A. 8101
 
     1  simulcast arrangements for such simulcast  facility  shall  be  no  less
     2  favorable than those in effect on January first, two thousand five; (ii)
     3  that  each  off-track  betting  corporation having within its geographic

     4  boundaries  such residences, homes or other areas technically capable of
     5  receiving the simulcast signal shall be a contracting party;  (iii)  the
     6  distribution  of  revenues  shall be subject to contractual agreement of
     7  the parties except that statutory payments to  non-contracting  parties,
     8  if  any,  may  not be reduced; provided, however, that nothing herein to
     9  the contrary shall prevent a track  from  televising  its  races  on  an
    10  irregular basis primarily for promotional or marketing purposes as found
    11  by  the board. For purposes of this paragraph, the provisions of section
    12  one thousand thirteen of this article shall  not  apply.  Any  agreement
    13  authorizing  an  in-home simulcasting experiment commencing prior to May
    14  fifteenth, nineteen hundred ninety-five, may,  and  all  its  terms,  be
    15  extended until June thirtieth, two thousand fourteen; provided, however,

    16  that  any  party to such agreement may elect to terminate such agreement
    17  upon conveying written notice to all other parties of such agreement  at
    18  least  forty-five  days  prior to the effective date of the termination,
    19  via registered mail. Any party to an agreement receiving such notice  of
    20  an  intent  to  terminate,  may request the board to mediate between the
    21  parties new terms and conditions in a replacement agreement between  the
    22  parties  as will permit continuation of an in-home experiment until June
    23  thirtieth, two thousand fourteen; and (iv) no  in-home  simulcasting  in
    24  the  thoroughbred  special  betting  district  shall  occur  without the
    25  approval of the regional thoroughbred track.
    26    (b) Any agreement authorizing in-home simulcasting  pursuant  to  this
    27  section  shall  be in writing, and upon written request, a copy shall be

    28  provided to the representative horsemen's group of  the  racing  associ-
    29  ation  or  corporation  that  is party to said agreement. Such agreement
    30  shall include a categorical statement of new  and  incremental  expenses
    31  directly  related  and attributable to the conduct of in-home simulcast-
    32  ing. The representative horsemen's group  may,  within  thirty  days  of
    33  receiving  the  agreement,  petition the board for a determination as to
    34  the appropriateness and reasonableness of  any  expenses  attributed  by
    35  either  the  racing  association or corporation or the off-track betting
    36  corporation.
    37    2. Before it may grant such  license,  the  [board]  commission  shall
    38  review  and  approve  a  plan  of  operation submitted by such applicant
    39  including, but not limited to the following information:

    40    a. A feasibility study denoting the revenue earnings expected from the
    41  simulcast facility and the costs expected to operate such  facility.  No
    42  feasibility  study  shall  be  received for a simulcast facility that is
    43  applying to renew its license.  The form of the feasibility study  shall
    44  be prescribed by the [board] commission and may include:
    45    (i) the number of simulcast races to be displayed;
    46    (ii) the types of wagering to be offered;
    47    (iii)  the  level  of attendance expected and the area from which such
    48  attendance will be drawn;
    49    (iv) the level of anticipated wagering activity;
    50    (v) the source and amount of revenues expected from other  than  pari-
    51  mutuel wagering;
    52    (vi)  the cost of operating the simulcast facility and the identifica-
    53  tion of costs to be amortized and the method  of  amortization  of  such
    54  costs;

    55    (vii)  the  amount  and  source  of  revenues needed for financing the
    56  simulcast facility;
        S. 5883                            104                           A. 8101
 
     1    (viii) the probable impact of the proposed operation  on  revenues  to
     2  local government;
     3    b.  The  security  measures to be employed to protect the facility, to
     4  control crowds, to safeguard the transmission of the  simulcast  signals
     5  and  to  control  the transmission of wagering data to effectuate common
     6  wagering pools;
     7    c. The type of data processing, communication and transmission  equip-
     8  ment to be utilized;
     9    d. The description of the management groups responsible for the opera-
    10  tion of the simulcast facility;
    11    e.  The  system  of accounts to maintain a separate record of revenues
    12  collected by the simulcast facility, the distribution of  such  revenues

    13  and the accounting of costs relative to the simulcast operation;
    14    f. The location of the facility and a written confirmation from appro-
    15  priate local officials that the location of such facility and the number
    16  of  patrons  expected to occupy such facility are in compliance with all
    17  applicable local ordinances;
    18    g. The written agreements and letters  of  consent  between  specified
    19  parties  pursuant to sections one thousand seven, one thousand eight and
    20  one thousand nine of this article.
    21    3. Within forty-five days of receipt of the plan of operation provided
    22  in subdivision two of this section, the [board] commission  shall  issue
    23  an  order approving the plan, approving it with modifications or denying
    24  approval, in which latter case the [board] commission  shall  state  its

    25  reasons  therefor. Within such period the [board] commission may request
    26  additional information or suggest amendments. If the [board]  commission
    27  fails to approve the plan, the applicant may request a public hearing to
    28  be  held  within thirty days of the issuance of an order denying it. The
    29  [board] commission shall issue its final determination within  ten  days
    30  of  such  hearing.  The  applicant  may submit an amended application no
    31  sooner than thirty days after a denial.
    32    4. No racing association, franchised  corporation  or  corporation  or
    33  regional  off-track  betting  corporation  shall be allowed to operate a
    34  simulcast facility except according to the  provisions  of  an  approved
    35  plan  of  operation. No change in such plan of operation may occur until

    36  an amendment proposing a change to the plan is approved by  the  [board]
    37  commission.  A plan of operation may be amended from time to time at the
    38  request of either the operator or the [board] commission.  The  operator
    39  shall  have  the  right to be heard concerning any amendment to the plan
    40  and the [board] commission shall dispose of such proposed amendments  as
    41  expeditiously  as  practicable,  but no later than thirty days following
    42  submission by the operator or, in the case of amendments proposed by the
    43  [board] commission, objection by the operator.
    44    5. For the purpose  of  maintaining  proper  control  over  simulcasts
    45  conducted  pursuant  to  this  article,  the  [state racing and wagering

    46  board] commission shall license any person, association  or  corporation
    47  participating  in  simulcasting,  as  the [board] commission may by rule
    48  prescribe, including, if the [board] commission deem it necessary so  to
    49  do,  any  or  all  persons,  associations  or  corporations  who create,
    50  distribute, transmit or  display  simulcast  signals.  In  the  case  of
    51  thoroughbred  racing  simulcasting  or harness racing simulcasting, such
    52  licenses  shall  be  issued  in  accordance  with  and  subject  to  the
    53  provisions  governing licenses for participants and employees in article
    54  two or article three of this chapter as may be applicable to  such  type
    55  of racing.
        S. 5883                            105                           A. 8101
 

     1    §  46.  Section  1012 of the racing, pari-mutuel wagering and breeding
     2  law, as amended by chapter 18 of the laws of 2008,  subdivision  4-b  as
     3  added by chapter 402 of the laws of 2011 and subdivision 5 as amended by
     4  section  10  of  part U of chapter 59 of the laws of 2013, is amended to
     5  read as follows:
     6    §  1012.  [Telephone  accounts  and  telephone] Account wagering. [Any
     7  regional off-track betting corporation, and any franchised  corporation,
     8  harness,  thoroughbred,  quarter horse racing association or corporation
     9  licensed to conduct pari-mutuel racing may  maintain  telephone  betting
    10  accounts  for  wagers placed on races and special events offered by such
    11  corporation or association.] Racing associations and corporations, fran-

    12  chised corporations, off-track betting corporations and  multi-jurisdic-
    13  tional  account  wagering  providers  may  apply to the commission to be
    14  licensed to offer account wagering.
    15    1. Racing  associations  and  corporations,  franchised  corporations,
    16  off-track betting corporations and multi-jurisdictional account wagering
    17  providers  may  form  partnerships,  joint ventures, or any other affil-
    18  iations or contractual arrangement in order to further the  purposes  of
    19  this  section.  Multi-jurisdictional account wagering providers involved
    20  in such joint affiliations or contractual arrangements shall follow  the
    21  same distributional policy with respect to retained commissions as their
    22  in-state affiliate or contractual partner.

    23    2.  The  commission  shall promulgate rules and regulations to license
    24  and regulate all phases of account wagering.
    25    3. The commission shall specify a non-refundable application fee which
    26  shall be paid by each applicant  for  an  account  wagering  license  or
    27  renewal thereof.
    28    4.  Account  wagering  licensees shall utilize personal identification
    29  numbers and such other technologies as the  commission  may  specify  to
    30  assure  that  only  the account holder has access to the advance deposit
    31  wagering account.
    32    5. Account wagering licensees shall provide for: a.  withdrawals  from
    33  the  wagering  account  only  by  means  of  a check made payable to the

    34  account holder and sent to the address of the account holder or by means
    35  of an electronic transfer to an account held  by  the  verified  account
    36  holder  or b. that the account holder may withdraw funds from the wager-
    37  ing account at a facility approved by the commission by presenting veri-
    38  fiable personal and account identification information.
    39    6. Account wagering licensees may engage in interstate wagering trans-
    40  actions only where there is compliance with chapter fifty-seven of title
    41  fifteen of the United States code, commonly referred to as  the  "inter-
    42  state horse racing act".
    43    7.  The  account  holder's  deposits  to the wagering account shall be
    44  submitted by the account holder to the  account  wagering  licensee  and

    45  shall  be  in  the  form  of  one of the following: a. cash given to the
    46  account wagering licensee; b. check, money order,  negotiable  order  of
    47  withdrawal,  or wire or electronic transfer, payable and remitted to the
    48  account wagering licensee; or c. charges made  to  an  account  holder's
    49  debit  or  credit  card  upon  the  account holder's direct and personal
    50  instruction, which instruction may be given by  telephone  communication
    51  or  other electronic means to the account wagering licensee or its agent
    52  by the account holder if the use of the card has been  approved  by  the
    53  account wagering licensee.
    54    8.  a.  Each  wager shall be in the name of a natural person and shall
    55  not be in the name of any beneficiary, custodian,  joint  trust,  corpo-

    56  ration, partnership or other organization or entity.
        S. 5883                            106                           A. 8101
 
     1    b.  A  wagering  account  may be established by a person completing an
     2  application form approved by the commission and submitting  it  together
     3  with  a  certification,  or other proof, of age and residency. Such form
     4  shall include the address of the principal residence of the  prospective
     5  account  holder and a statement that a false statement made in regard to
     6  an application may subject the applicant to prosecution.
     7    c. The prospective account holder shall submit the completed  applica-
     8  tion to the account wagering licensee. The account wagering licensee may

     9  accept or reject an application after receipt and review of the applica-
    10  tion and certification, or other proof, of age and residency for compli-
    11  ance with this section.
    12    d.  No  person other than the person in whose name an account has been
    13  established may issue wagering instructions relating to that account  or
    14  otherwise engage in wagering transactions relating to that account.
    15    9.  A wagering account shall not be assignable or otherwise transfera-
    16  ble.
    17    10. Except as otherwise provided in this  article  or  in  regulations
    18  which  the  commission  may  adopt  pursuant thereto, all account wagers
    19  shall be final and no wager shall be canceled by the account  holder  at

    20  any  time  after  the  wager  has  been accepted by the account wagering
    21  licensee.
    22    11. Dormant accounts shall be treated as abandoned  property  pursuant
    23  to section three hundred of the abandoned property law.
    24    12.    Account wagering providers must possess appropriate totalizator
    25  and accounting controls that will safeguard the transmission of wagering
    26  data and will keep a system of accounts which will maintain  a  separate
    27  record  of revenues and an accounting of costs relative to the operation
    28  of the wagering provider.
    29    13. Wagers placed with the account wagering providers shall result  in
    30  the  combination of all wagers placed with such provider with the wager-

    31  ing pools at the host track so as to produce common pari-mutuel  betting
    32  pools  for the calculation of odds and the determination of payouts from
    33  such pools, which payout shall be the  same  for  all  winning  tickets,
    34  irrespective  of  whether  a  wager  is  placed at a host track or at an
    35  account wagering provider.
    36    14. Any [regional off-track betting  corporation  and  any  franchised
    37  corporation,  harness, thoroughbred, quarter horse racing association or
    38  corporation licensed to conduct  pari-mutuel  racing]  account  wagering
    39  licensee may require a minimum account balance in an amount to be deter-
    40  mined by such entity.
    41    [2.]  15.  a.  Any  regional off-track betting corporation may suspend

    42  collection of the surcharge imposed under section five  hundred  thirty-
    43  two  of  this  chapter  on winning wagers placed in [telephone] wagering
    44  accounts maintained by such regional corporation.
    45    b. In a city of one million or more  any  regional  off-track  betting
    46  corporation,  with  the  approval of the mayor of such city, may suspend
    47  collection of the surcharge imposed under section five  hundred  thirty-
    48  two  of  this  chapter  in winning wagers placed in [telephone] wagering
    49  accounts maintained by such regional corporation.
    50    [3.  Any telephone account maintained by a regional off-track  betting
    51  corporation,  franchised  corporation,  harness,  thoroughbred,  quarter
    52  horse association or corporation, with inactivity for a period of  three

    53  years  shall  be  forfeited and paid to the commissioner of taxation and
    54  finance. Such amounts when collected shall be paid by  the  commissioner
    55  of taxation and finance into the general fund of the state treasury.
        S. 5883                            107                           A. 8101

     1    4.]  16.  The  maintenance  and operation of such [telephone] wagering
     2  accounts provided for in this section shall  be  subject  to  rules  and
     3  regulations  of  the  [state racing and wagering board] commission.  The
     4  [board] commission shall include in such regulation a  requirement  that
     5  [telephone]  wagering  account  information  pertaining to surcharge and

     6  nonsurcharge [telephone] wagering accounts shall be separately reported.
     7    [4-a.] 17. For the purposes  of  this  section,  "telephone  [betting]
     8  wagering accounts" [and "telephone wagering"] shall mean and include all
     9  those  wagers which utilize any wired or wireless communications device,
    10  including but not limited to wireline telephones, wireless telephones[,]
    11  and the internet[,] to transmit the placement of  wagers  on  races  and
    12  special  events  offered  by any regional off-track betting corporation,
    13  and any harness,  thoroughbred,  quarter  horse  racing  association  or
    14  corporation licensed or franchised to conduct pari-mutuel racing in [New
    15  York] this state.

    16    [4-b.]  18.  Every  racing association, off-track betting corporation,
    17  franchised corporation,  harness,  thoroughbred,  quarter  horse  racing
    18  association  or  corporation  or  other entity licensed or franchised in
    19  this state to conduct pari-mutuel racing and wagering, or authorized  to
    20  conduct  races  within the state, which operates [an account] a wagering
    21  [platform] account for the acceptance of wagers, shall locate  the  call
    22  center where such wagers are received within the state of New York.
    23    [5.  The  provisions of this section shall expire and be of no further
    24  force and effect after June thirtieth, two thousand fourteen.]
    25    § 47. The racing, pari-mutuel wagering and breeding law is amended  by
    26  adding a new section 1012-a to read as follows:

    27    §  1012-a.  Multi-jurisdictional account wagering providers.  A multi-
    28  jurisdictional account wagering provider shall only  be  licensed  under
    29  the following conditions:
    30    1.  the  multi-jurisdictional account wagering provider is licensed by
    31  the state in which it is located and, if  required,  by  each  state  in
    32  which it operates;
    33    2.  the  character  and  the  background  of  the multi-jurisdictional
    34  account wagering provider is such that granting the applications  for  a
    35  license  is in the public interest and the best interest of honest horse
    36  racing;
    37    3. the multi-jurisdictional account wagering  provider  shall  utilize
    38  the  services  of  an  independent  third  party to perform identity and

    39  verification services with respect  to  the  establishment  of  wagering
    40  accounts for persons who are residents of the state of New York;
    41    4.  the  commission  shall  be  allowed  access to the premises of the
    42  multi-jurisdictional account wagering  provider  to  visit,  investigate
    43  and,  place such expert accountants and other persons it deems necessary
    44  for the purpose of insuring compliance with the rules and regulations of
    45  the commission;
    46    5. if not already registered, the multi-jurisdictional account  wager-
    47  ing provider shall agree promptly to take those steps necessary to qual-
    48  ify  to  do  business  in New York state, and to maintain such status in
    49  good standing throughout the license period;

    50    6. multi-jurisdictional account wagering providers shall pay a  market
    51  origin fee equal to five per centum on each wager accepted from New York
    52  residents.    Multi-jurisdictional account wagering providers shall make
    53  the required payments to the market origin  account  on  or  before  the
    54  fifth  business day of each month and such required payments shall cover
    55  payments due for the period of the preceding calendar  month;  provided,
    56  however, that such payments required to be made on April fifteenth shall
        S. 5883                            108                           A. 8101
 
     1  be  accompanied  by  a  report under oath, showing the total of all such
     2  payments, together with such other information  as  the  commission  may

     3  require.  A  penalty  of five per centum and interest at the rate of one
     4  per centum per month from the date the report is required to be filed to
     5  the  date  the payment shall be payable in case any payments required by
     6  this subdivision are paid when due. If the  commission  determines  that
     7  any  moneys  received  under  this  subdivision  were paid in error, the
     8  commission may cause the same to be refunded without interest out of any
     9  moneys collected thereunder, provided an application therefor  is  filed
    10  with  the commission within one year from the time the erroneous payment
    11  was made.  The commission shall pay into the racing regulation  account,
    12  under the joint custody of the comptroller and the commission, the total

    13  amount of the fee collected pursuant to this section.
    14    §  48. Subdivision 2 of section 1017 of the racing, pari-mutuel wager-
    15  ing and breeding law, as amended by chapter 18 of the laws of  2008,  is
    16  amended to read as follows:
    17    2.  a.  Maintenance of effort. Any off-track betting corporation which
    18  engages in accepting wagers on the simulcasts of thoroughbred races from
    19  out-of-state or out-of-country as permitted  under  subdivision  one  of
    20  this section shall submit to the [board] commission, for its approval, a
    21  schedule  of  payments  to  be made in any year or portion thereof, that
    22  such off-track corporation engages in nighttime thoroughbred  simulcast-
    23  ing.  In  order  to  be  approved by the [board] commission, the payment
    24  schedule shall be identical to the actual payments and distributions  of

    25  such  payments  to  tracks and purses made by such off-track corporation
    26  pursuant to the provisions of section one thousand fifteen of this arti-
    27  cle during the year two  thousand  two,  as  derived  from  out-of-state
    28  harness  races  displayed  after  6:00  P.M.  If approved by the [board]
    29  commission, such scheduled payments shall be made from revenues  derived
    30  from any simulcasting conducted pursuant to this section and section one
    31  thousand fifteen of this article.
    32    b.  Additional payments. During each calendar year, to the extent, and
    33  at such time in the event,  that  aggregate  statewide  wagering  handle
    34  after  7:30  P.M.  on out-of-state and out-of-country thoroughbred races
    35  exceeds one hundred million dollars, each off-track betting  corporation
    36  conducting  such simulcasting shall pay to its regional harness track or

    37  tracks, an amount equal to two percent of  its  proportionate  share  of
    38  such  excess  handle. In any region where there are two or more regional
    39  harness tracks, such two percent shall be divided between or  among  the
    40  tracks in a proportion equal to the proportion of handle on live harness
    41  races conducted at such tracks during the preceding calendar year. Fifty
    42  percent  of  the  sum  received by each track pursuant to this paragraph
    43  shall be used exclusively for increasing purses, stakes  and  prizes  at
    44  that  regional  harness  track.   For the purpose of determining whether
    45  such aggregate statewide handle exceeds one hundred million dollars, all
    46  wagering on such thoroughbred races accepted by licensed multi-jurisdic-
    47  tional account wagering providers from customers within New  York  state
    48  shall be excluded.

    49    § 49. Section 503 of the racing, pari-mutuel wagering and breeding law
    50  is amended by adding a new subdivision 12-a to read as follows:
    51    12-a.  To  enter  into, amend, cancel and terminate agreements for the
    52  performance among themselves, licensed racing  associations  and  corpo-
    53  rations, and multi-jurisdictional account wagering providers, as defined
    54  in  section  one thousand one of this chapter, of their respective func-
    55  tions, powers and duties on a cooperative or contract basis.
        S. 5883                            109                           A. 8101
 
     1    § 50. The racing, pari-mutuel wagering and breeding law is amended  by
     2  adding a new section 115-b to read as follows:
     3    § 115-b. Market origin credits. 1. Notwithstanding any other provision

     4  of  law to the contrary, any racing associations and corporations, fran-
     5  chised corporations, and off-track betting  corporations  that  makes  a
     6  payment  of  the regulatory fees imposed by this chapter may reduce such
     7  payment by an amount equal to the market origin credit allocated to such
     8  racing association or corporation, franchised corporation, or  off-track
     9  betting  corporation  by  the  commission. The commission shall allocate
    10  credits in an amount equal to ninety percent of the amount received from
    11  the market origin fee paid pursuant to subdivision six  of  section  one
    12  thousand  twelve-a of this chapter for the period from the sixteenth day
    13  of the preceding month through the fifteenth day of the  current  month.

    14  The commission shall notify participants of allocations on or before the
    15  twentieth day of the current month.
    16    2.  The  commission  shall allocate credits to racing associations and
    17  corporations, franchised  corporations,  and  off-track  betting  corpo-
    18  rations in the following amounts:
    19    a.  Forty  percent  of  the amount received from the market origin fee
    20  paid pursuant to subdivision six of section  one  thousand  twelve-a  of
    21  this chapter to regional off-track betting corporations.  Allocations to
    22  individual  regional  off-track betting corporations shall be made based
    23  on a ratio where the  numerator  is  the  regional  corporation's  total
    24  in-state  handle  for  the  previous  calendar year as calculated by the

    25  commission and the denominator is the total in-state handle of  all  the
    26  regional  off-track  betting corporations for the previous calendar year
    27  as calculated by the commission;
    28    b. Fifty percent of the amount received from  the  market  origin  fee
    29  paid  pursuant  to  subdivision  six of section one thousand twelve-a of
    30  this chapter to the racing associations and corporations and  franchised
    31  corporations.  Allocations  to individual racing associations and corpo-
    32  rations and franchised corporations shall be made as follows:
    33    (i) Sixty percent to thoroughbred racing associations  and  franchised
    34  corporations.    Five-sixths  shall  be allocated to a franchised corpo-
    35  ration and one-sixth shall be allocated to a thoroughbred racing associ-

    36  ation.
    37    (ii) Forty percent to harness racing  associations  and  corporations.
    38  Allocations  to  individual harness racing associations and corporations
    39  shall be made based on a ratio where the numerator is the  association's
    40  or  corporation's  total in-state handle on live racing for the previous
    41  calendar year as calculated by the commission and the denominator is the
    42  total in-state on live handle for all harness  racing  associations  and
    43  corporations for the previous calendar year as calculated by the commis-
    44  sion.
    45    3.  As  a condition for any racing association or corporation or fran-
    46  chised corporation to claim any market origin credits allocated  to  it,

    47  such  racing  association  or corporation or franchised corporation must
    48  make payments for moneys otherwise to be used to pay the regulatory  fee
    49  as follows:
    50    (i) Payment of an amount equal to forty percent of the allocated cred-
    51  its  into  an account used solely for the purpose of enhancing purses at
    52  such racing association or corporation or franchised  corporation.  Such
    53  payment  shall  be made within five days from receipt of notification of
    54  an allocation by the commission of an allocation of market origin  cred-
    55  its;
        S. 5883                            110                           A. 8101
 
     1    (ii)  Payment  of  an  amount equal to twenty percent of the allocated

     2  credits to the state's breeding funds. Sixty percent of the payments  to
     3  the breeding funds shall be allocated to the New York state thoroughbred
     4  breeding  and  development  fund  corporation  established  pursuant  to
     5  section  two hundred fifty-two of this chapter, and forty percent to the
     6  agriculture and New York state horse breeding  development  fund  estab-
     7  lished  pursuant  to  section three hundred thirty of this chapter. Such
     8  payment shall be made within five days from receipt of  notification  of
     9  an  allocation by the commission of an allocation of market origin cred-
    10  its.
    11    4. The commission shall promulgate any rules and regulations necessary
    12  for the administration of the market origin credit.

    13    § 51. Section 99-i of the state finance law, as added by section 26 of
    14  part F3 of chapter 62 of the  laws  of  2003,  is  amended  to  read  as
    15  follows:
    16    §  99-i.  Racing regulation account. 1. There is hereby established in
    17  the joint custody of the comptroller and the [racing and wagering board]
    18  gaming commission a special revenue fund to  be  known  as  the  "racing
    19  regulation account".
    20    2.  The racing [revenue] regulation account shall consist of all money
    21  received by the [board] commission as regulatory fees and market  origin
    22  fees  pursuant to the provisions of the racing, pari-mutuel wagering and
    23  breeding law.
    24    3. Moneys of this account shall be available to the [board] commission

    25  to pay for the costs of carrying out the purposes of the  racing,  pari-
    26  mutuel  wagering and breeding law; provided, however, an amount equal to
    27  five percent of the amount received  by  the  account  from  the  market
    28  origin  fee  imposed by subdivision six of section one thousand twelve-a
    29  of the racing, pari-mutuel wagering and breeding  law  shall  be  trans-
    30  ferred  to  the state department of taxation and finance and the depart-
    31  ment shall deem this transfer as a payment of a pari-mutuel tax.
    32    4. All payments from the fund shall be made on the audit  and  warrant
    33  of the comptroller.
    34    (f)  Sections  forth through forty-eight of this act shall take effect
    35  January 1, 2014; except that the New York state  gaming  commission  may
    36  accept and review applications for licenses for account wagering and for

    37  multi-jurisdictional account wagering providers commencing on October 1,
    38  2013.
    39    § 52. This act shall take effect immediately; provided, however, that:
    40    (a) sections one, two, five, nine, ten, twenty-seven and thirty-one of
    41  this  act  shall take effect on the first of January next succeeding the
    42  date upon which the people shall approve and ratify amendments to subdi-
    43  vision 1 of section 9 of article I of the constitution by a majority  of
    44  the electors voting thereon relating to casino gambling in the state;
    45    (b)  sections  six, seven, fourteen and sixteen of this act shall take
    46  effect on the same date as the agreement between the  Oneida  Nation  of
    47  New  York and the state of New York entered into on the sixteenth day of
    48  May, 2013 takes effect; provided, further, that the amendments to subdi-
    49  vision 2 of section 99-h of the state finance law made by section six of

    50  this act shall take effect on the same date as  the  reversion  of  such
    51  section  as provided in section 2 of chapter 747 of the laws of 2006, as
    52  amended; provided, further, that the  amendments  to  subdivision  3  of
    53  section  99-h of the state finance law made by section seven of this act
    54  shall be subject to the expiration and reversion of such subdivision  as
    55  provided  in  section  3 of part W of chapter 60 of the laws of 2011, as
    56  amended when upon such date the provisions of section  seven-a  of  this
        S. 5883                            111                           A. 8101
 
     1  act  shall take effect; provided, further, that the amendments to subdi-
     2  vision 3 of section 99-h of  the  state  finance  law  made  by  section
     3  seven-a of this act shall be subject to the the expiration and reversion

     4  of  such  section as provided in section 2 of chapter 747 of the laws of
     5  2006, as amended when upon such date the provisions of section eight  of
     6  this  act shall take effect; provided, further, however, that the amend-
     7  ment to section 99-h of the state finance law made by  section  nine  of
     8  this  act  shall  not affect the expiration of such section and shall be
     9  deemed repealed therewith; provided,  further,  that  the  state  gaming
    10  commission  shall  notify  the legislative bill drafting commission upon
    11  the occurrence of such agreement between the Oneida Nation and the state
    12  of New York becoming effective in order that the commission may maintain
    13  an accurate and timely effective data base of the official text  of  the
    14  laws of the state of New York in furtherance of effecting the provisions
    15  of  section  44  of  the  legislative law and section 70-b of the public
    16  officers law;

    17    (c) section 1368 of the racing, pari-mutuel wagering and breeding law,
    18  as added by section two of this act, shall take effect upon a change  in
    19  federal law authorizing the activity permitted by such section or upon a
    20  ruling  by  a  court  of  competent  jurisdiction  that such activity is
    21  lawful. The state gaming commission shall notify  the  legislative  bill
    22  drafting  commission upon the occurrence of the change in federal law or
    23  upon the ruling of a court of competent jurisdiction in order  that  the
    24  commission  may  maintain  an accurate and timely effective data base of
    25  the official text of the laws of the state of New York in furtherance of
    26  effecting the provisions of  section  44  of  the  legislative  law  and
    27  section 70-b of the public officers law;
    28    (d)  section  thirty-five  of this act shall be deemed to have been in
    29  full force and effect on and after April 1, 2013;

    30    (e) notwithstanding the foregoing, sections thirty-two,  thirty-three,
    31  thirty-four,  forty-one  and forty-two of this act, shall only be effec-
    32  tive in the event that an amendment to  the  constitution  to  authorize
    33  casino gambling is defeated.
    34    (f)  section  forty  through forty-eight of this act shall take effect
    35  January 1, 2014; except that the New York state  gaming  commission  may
    36  accept and review applications for licenses for account wagering and for
    37  multi-jurisdictional account wagering providers commencing on October 1,
    38  2013.