Bill Text: NY A05992 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to disclosing certain information prior to qualifying for any reduction in taxation on gaming revenue; provides that an independent financial monitor shall be appointed.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2020-01-08 - referred to racing and wagering [A05992 Detail]

Download: New_York-2019-A05992-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5992
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 26, 2019
                                       ___________
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Racing and Wagering
        AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
          relation to disclosing certain information prior to qualifying for any
          reduction in taxation
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Legislative findings.  The  legislature  hereby  finds  and
     2  declares  that the intent of the upstate New York gaming economic devel-
     3  opment act of 2013 was to aid the economic development  of  upstate  New
     4  York  by  increasing  employment opportunities and investment into these
     5  host communities. The legislature further finds  that  public  resources
     6  ought  not be used to assist gaming facilities. Any assistance to gaming
     7  facilities must be conditioned on full financial disclosure and an inde-
     8  pendent audit of the gaming facilities in order to show how this assist-
     9  ance would be necessary to benefit and  protect  the  workforce  of  the
    10  gaming facilities and the host municipality and nearby municipalities of
    11  each  gaming  facility. Any assistance shall prevent self-dealing by the
    12  officers and shareholders of  the  gaming  facility  and  shall  not  be
    13  utilized  to unduly benefit or enrich the officers, shareholders, inves-
    14  tors, and lenders of any gaming facility, its holding company,  interme-
    15  diary companies, subsidiaries, or affiliates.
    16    § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
    17  is amended by adding 3 new subdivisions 2, 3 and 4 to read as follows:
    18    2. Before being eligible to apply for and qualify for any reduction in
    19  taxes under subdivision one of this section, or any other public assist-
    20  ance  or benefits, a gaming facility shall disclose the following infor-
    21  mation to the commission:
    22    (a) the names and payments made to all casino key employees in  excess
    23  of one hundred thousand dollars for calendar year two thousand seventeen
    24  to present;
    25    (b)  the  names  and  payments  made to all independent contractors in
    26  excess of one hundred thousand dollars for calendar  year  two  thousand
    27  seventeen to present;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09978-01-9

        A. 5992                             2
     1    (c)  all  payments in excess of one hundred thousand dollars to inves-
     2  tors, casino vendor enterprises, junket enterprises,  close  associates,
     3  and affiliates for calendar year two thousand seventeen to present;
     4    (d)  all  payments  in calendar year two thousand seventeen to present
     5  made to the board of directors, or to the  board  of  directors  of  its
     6  holding  company,  intermediary  companies,  subsidiaries, affiliates or
     7  close associates; and
     8    (e) all contractual arrangements for  debt  and  encumbrances  entered
     9  into  by  the  gaming  facility,  its holding company, close associates,
    10  intermediary companies, subsidiaries or affiliates which provide financ-
    11  ing for the construction,  repair,  maintenance  and  operation  of  the
    12  gaming facility.
    13    Notwithstanding  any  law to the contrary, all disclosures made to the
    14  commission pursuant to paragraphs (a), (b), (c), (d)  and  (e)  of  this
    15  subdivision  shall  be made fully available by the commission for public
    16  review and inspection.
    17    3. Before being eligible to apply for and qualify for any reduction in
    18  taxes under subdivision one of this section, or any other public assist-
    19  ance or benefits, a gaming facility  shall  further  disclose  and  make
    20  available  to  the  commission  all  quarterly financial reports and the
    21  annual audit required to be filed, pursuant to paragraph (o) of subdivi-
    22  sion two of section thirteen hundred  seven  of  this  article  for  the
    23  twelve months prior to the effective date of this subdivision.  Notwith-
    24  standing  any law to the contrary, such reports and audits shall be made
    25  fully available by the commission for public review and inspection.
    26    4. Before being eligible to apply for and qualify for any reduction in
    27  taxes under subdivision one of this section, or any other public assist-
    28  ance or benefits, the gaming facility shall agree to the appointment  of
    29  an  independent financial monitor selected by the gaming commission. The
    30  monitor's salary and expenses shall be paid by the gaming facility.  The
    31  monitor  shall  have  access  to all the financial records of the gaming
    32  facility and shall report its findings to the commission.  Notwithstand-
    33  ing any laws to the contrary, the reports of the monitor shall  be  made
    34  fully  available  for public review and inspection. The monitor's duties
    35  shall terminate on February first, two thousand twenty-one. The  monitor
    36  shall have the following duties:
    37    (a)  issue biannual reports commencing with a report at the conclusion
    38  of the two thousand nineteen calendar year;
    39    (b) publish in such reports the information  required  by  subdivision
    40  two  of  this  section  for calendar years two thousand nineteen and two
    41  thousand twenty;
    42    (c) report on any material weakness in accounting, internal  controls,
    43  and business and management practices at the gaming facility;
    44    (d)  review  and make recommendations concerning the gaming facility's
    45  operating revenues and the establishment of a financial plan;
    46    (e) review such gaming facility's overall compliance  with  the  laws,
    47  rules and regulations applicable to its activities;
    48    (f) monitor the hiring of gaming employees at the gaming facility; the
    49  monitor  shall  notify the commission any time that the number of gaming
    50  employees is lower than ninety-five percent of the number that  were  on
    51  staff  at the gaming facility on the effective date of this subdivision;
    52  and
    53    (g) evaluate the overall financial position of the gaming facility.
    54    § 3. This act shall take effect immediately.
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