Bill Text: NY S06139 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to state gaming commission operational licenses.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-01-08 - REFERRED TO RACING, GAMING AND WAGERING [S06139 Detail]

Download: New_York-2019-S06139-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6139

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 17, 2019
                                       ___________

        Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Racing, Gaming and  Wager-
          ing

        AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
          relation to state gaming commission occupational licenses

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
     2  amended by adding a new section 104-a to read as follows:
     3    § 104-a. Registration to engage in gaming activity.    Notwithstanding
     4  any  provision  of  law  to the contrary, the commission may require any
     5  person, corporation or association intending to  engage  in  any  gaming
     6  activity regulated by the commission to submit a primary registration to
     7  the commission.
     8    1.  For  the  purposes  of  this section, when a person is required to
     9  submit a registration, any  and  all  licenses,  registrations,  certif-
    10  icates,  permits  or  approvals  issued to such person as required under
    11  this chapter or under article  thirty-four  of  the  tax  law  shall  be
    12  considered  sub-registrations  or  sub-licenses  to  the  aforementioned
    13  registration. No individual shall engage in any gaming activity  without
    14  a valid sub-registration or sub-license authorizing such activity.
    15    2. The primary registration to engage in gaming activities shall sole-
    16  ly be an informational return containing such information the commission
    17  deems  applicable  to all sub-registrations or sub-licenses. The commis-
    18  sion shall require separate applications for  all  sub-registrations  or
    19  sub-licenses containing all supplemental information that the commission
    20  deems necessary.
    21    All  commission determinations shall be made on an applicant's sub-re-
    22  gistration or sub-license and  not  on  the  primary  registration.  Any
    23  information  obtained  for  or contained in the primary registration and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11770-01-9
        S. 6139                             2

     1  all associated sub-registrations or sub-licenses  may  be  used  in  any
     2  subsequent licensing and registration determinations.
     3    3.  Pursuant  to  the  commission's  authority granted by subdivisions
     4  thirteen and fourteen of section one hundred four of this  article,  the
     5  commission may require a background investigation and a criminal history
     6  record search for any primary or sub-registration or sub-license sought.
     7  The  commission  shall  have  the  right to request new information upon
     8  submission of any new sub-registration or sub-license application.
     9    For the purposes of this section, upon an initial sub-registration  or
    10  sub-license  application  and  any subsequent sub-applications as may be
    11  required by the commission, each applicant shall submit to  the  commis-
    12  sion the applicant's name, address, fingerprints and written consent for
    13  criminal  history information as defined in paragraph (c) of subdivision
    14  one of section eight hundred forty-five-b of the executive  law,  to  be
    15  performed.  The  commission is hereby authorized to exchange fingerprint
    16  data with and receive criminal history record information from the state
    17  division of criminal justice services and the federal bureau of investi-
    18  gation consistent with applicable state  and  federal  laws,  rules  and
    19  regulations.  The  applicant shall pay the fee for such criminal history
    20  information as established pursuant to article thirty-five of the execu-
    21  tive law. The state division of criminal justice services shall promptly
    22  notify the commission in the event a current  or  prospective  licensee,
    23  who  was  the  subject  of such criminal history information pursuant to
    24  this section, is arrested for a crime or offense in this state after the
    25  date the check was performed.
    26    4. Primary registrations shall expire five  years  from  the  date  of
    27  submission, provided, however, any sub-registration or sub-license shall
    28  continue  through  its  expiration.  Notwithstanding this provision, the
    29  commission may suspend any sub-registration or sub-license that  has  an
    30  expired primary registration until such primary registration is renewed.
    31  The  commission shall establish a schedule to register any individual or
    32  entity who possessed a sub-registration  or  sub-license  prior  to  the
    33  implementation of this section.
    34    5.  The commission shall promulgate rules and regulations to implement
    35  the provisions of this section and ensure that all licensing and  regis-
    36  tration  requirements of this chapter and article thirty-four of the tax
    37  law are adequately addressed in the implementation.
    38    § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law
    39  is amended by adding a new subdivision 31-a to read as follows:
    40    31-a.  "Non-gaming  employee".  Any  natural  person,  not   otherwise
    41  included  in  the  definition of casino key employee or gaming employee,
    42  who is employed by a gaming facility licensee, or a holding or  interme-
    43  diary  company  of a gaming facility licensee, and performs services and
    44  duties upon the premises of a  gaming  facility,  whose  duties  do  not
    45  relate  to  the operation of gaming activities, and who is not regularly
    46  required to work in restricted areas such that registration  of  a  non-
    47  gaming employee is appropriate.
    48    §  3.  Paragraph  (c)  of subdivision 1 of section 1318 of the racing,
    49  pari-mutuel wagering and breeding law, as added by chapter  174  of  the
    50  laws of 2013, is amended to read as follows:
    51    (c)  the  conviction of the applicant, or of any person required to be
    52  qualified under this article as a condition of a license, of any offense
    53  in any jurisdiction which is or would  be  a  [felony  or  other]  crime
    54  involving  public  integrity,  embezzlement, theft, fraud, [or] perjury,
    55  represents a significant threat to public  safety,  or  would  otherwise
    56  pose a threat to the effective regulation of casino gaming;
        S. 6139                             3

     1    § 4. Subdivision 4 of section 1322 of the racing, pari-mutuel wagering
     2  and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
     3  amended to read as follows:
     4    4.  All  applicants,  licensees, registrants, and any other person who
     5  shall be qualified pursuant to this article shall  have  the  continuing
     6  duty  to  provide  any assistance or information required by the commis-
     7  sion,  and  to  cooperate  in  any  inquiry,  investigation  or  hearing
     8  conducted  by  the  commission. If, upon issuance of a formal request to
     9  answer or produce information, evidence  or  testimony,  any  applicant,
    10  licensee,  registrant, or any other person who shall be qualified pursu-
    11  ant to this article refuses to comply, the application, license,  regis-
    12  tration  or  qualification  of  such  person may be suspended, denied or
    13  revoked.
    14    § 5. Subdivision 3 of section 1323 of the racing, pari-mutuel wagering
    15  and breeding law, as added by chapter  174  of  the  laws  of  2013,  is
    16  amended to read as follows:
    17    3.  The  commission  shall  deny  a casino key employee license to any
    18  applicant who is disqualified on the basis of the criteria contained  in
    19  section  [one  thousand three] thirteen hundred eighteen of this [title]
    20  article, subject to notice and hearing.   Provided that, no  casino  key
    21  employee license shall be denied or revoked on the basis of a conviction
    22  of  any  of  the offenses enumerated in this article as disqualification
    23  criteria or the commission of any act or acts which would constitute any
    24  offense  under  section  thirteen  hundred  eighteen  of  this  article,
    25  provided  that  the  applicant has affirmatively demonstrated the appli-
    26  cant's  rehabilitation,  pursuant  to  article  twenty-three-A  of   the
    27  correction law.
    28    § 6. Subdivision 4 of section 1323 of the racing, pari-mutuel wagering
    29  and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
    30  amended to read as follows:
    31    4. Upon [receipt of such criminal history  information]  determination
    32  that an applicant is disqualified on the basis of the applicant's crimi-
    33  nal  history, the commission shall provide such applicant with a copy of
    34  such criminal history information, together with a copy of article twen-
    35  ty-three-A of the correction law, and inform such applicant  of  his  or
    36  her  right  to seek correction of any incorrect information contained in
    37  such criminal history information pursuant to regulations and procedures
    38  established by the division of  criminal  justice  services.  Except  as
    39  otherwise  provided  by  law, such criminal history information shall be
    40  confidential and any person who willfully permits the  release  of  such
    41  confidential  criminal  history  information to persons not permitted to
    42  receive such information shall be guilty of a misdemeanor.
    43    § 7. Section 1324 of the racing,  pari-mutuel  wagering  and  breeding
    44  law,  as added by chapter 174 of the laws of 2013, is amended to read as
    45  follows:
    46    § 1324. Gaming and non-gaming employee registration.  1. No person may
    47  commence employment as a  gaming  or  non-gaming  employee  unless  such
    48  person has a valid registration [on file with the] issued by the commis-
    49  sion,  which registration shall be prepared and filed in accordance with
    50  the regulations promulgated hereunder.
    51    2. A gaming or  non-gaming  employee  registrant  shall  produce  such
    52  information  as the commission by regulation may require. [Subsequent to
    53  the registration of a gaming employee, the executive director  may]  The
    54  commission  may  deny, revoke, suspend, limit, or otherwise restrict the
    55  registration upon a finding that the registrant is disqualified  on  the
    56  basis of the criteria contained in section [one thousand three] thirteen
        S. 6139                             4

     1  hundred  eighteen  of  this  [title]  article. If a gaming or non-gaming
     2  employee registrant has not been  employed  in  any  position  within  a
     3  gaming  facility  for  a period of three years, the registration of that
     4  gaming or non-gaming employee shall lapse.
     5    3.  No  gaming  or non-gaming employee registration shall be denied or
     6  revoked on the basis  of  a  [misdemeanor]  conviction  of  any  of  the
     7  offenses  enumerated in this article as disqualification criteria or the
     8  commission of any act or acts which would constitute any  offense  under
     9  section  [one  thousand three] thirteen hundred eighteen of this [title]
    10  article, provided that the registrant has affirmatively demonstrated the
    11  registrant's rehabilitation, pursuant to article twenty-three-A  of  the
    12  correction law.
    13    4.  For the purposes of this section, each gaming or non-gaming regis-
    14  trant shall submit to the commission  the  registrant's  name,  address,
    15  fingerprints  and  written consent for a criminal history information to
    16  be performed. The commission is hereby authorized  to  exchange  finger-
    17  print  data  with and receive criminal history information as defined in
    18  paragraph (c) of subdivision one of section eight  hundred  forty-five-b
    19  of  the  executive  law  from  the  state  division  of criminal justice
    20  services and the federal bureau of investigation consistent with  appli-
    21  cable  state  and  federal  laws,  rules and regulations. The registrant
    22  shall pay the fee for such criminal history information  as  established
    23  pursuant to article thirty-five of the executive law. The state division
    24  of criminal justice services shall promptly notify the commission in the
    25  event  a  current  or  prospective  licensee  or registrant, who was the
    26  subject of a criminal history information pursuant to this  section,  is
    27  arrested  for  a crime or offense in this state after the date the check
    28  was performed.
    29    5. Upon [receipt of such criminal history  information]  determination
    30  that an applicant is disqualified on the basis of the applicant's crimi-
    31  nal  history,  the  [Commission] commission shall provide such applicant
    32  with a copy of such criminal history information, together with  a  copy
    33  of  article twenty-three-A of the correction law, and inform such appli-
    34  cant of his or her right to seek correction of any incorrect information
    35  contained in such criminal history information pursuant  to  regulations
    36  and procedures established by the division of criminal justice services.
    37  Except  as  otherwise provided by law, such criminal history information
    38  shall be confidential and any person who willfully permits  the  release
    39  of such confidential criminal history information to persons not permit-
    40  ted to receive such information shall be guilty of a misdemeanor.
    41    6.  Each applicant for a gaming registration shall produce such infor-
    42  mation, documentation and assurances as may be required to establish  by
    43  clear  and  convincing  evidence the applicant's good character, honesty
    44  and integrity. Such information shall include data pertaining to charac-
    45  ter, reputation, criminal history  information  and  prior  associations
    46  with  gaming  operations  in  any capacity, position, or employment in a
    47  jurisdiction that permits such activity.
    48    § 8. Section 1325 of the racing,  pari-mutuel  wagering  and  breeding
    49  law,  as added by chapter 174 of the laws of 2013, is amended to read as
    50  follows:
    51    § 1325. Approval, denial and renewal of employee licenses  and  regis-
    52  trations. 1. Upon the filing of an application for a casino key employee
    53  license  or  gaming  employee  registration required by this article and
    54  after submission of such supplemental information as the commission  may
    55  require,  the  commission  shall  conduct  or cause to be conducted such
    56  investigation into the qualification of the applicant, and  the  commis-
        S. 6139                             5

     1  sion  shall  conduct  such  hearings concerning the qualification of the
     2  applicant, in accordance with its regulations, as may  be  necessary  to
     3  determine  qualification  for  such  license  or  registration. Upon the
     4  filing  of  an  application  for a non-gaming employee registration, and
     5  after submission of such supplemental information as the commission  may
     6  require,  the  commission may, in its discretion, conduct or cause to be
     7  conducted an investigation into the qualification of such applicant.
     8    2. After such investigation, the commission may either deny the appli-
     9  cation or grant a license or registration to an applicant whom it deter-
    10  mines to be qualified to hold such license or registration. The granting
    11  of any such license or registration shall apply only to  the  job  title
    12  included in the application and to its associated duties. The commission
    13  may,  upon  request  and  at  its sole discretion, allow transfer of the
    14  license or registration to another job title upon determination that the
    15  original application would have been satisfactory had it been  submitted
    16  for the new title.
    17    3.  The  commission  shall  have the authority to deny any application
    18  pursuant to the provisions of this article following notice and opportu-
    19  nity for hearing.
    20    4. When the commission grants [an application] a license or  registra-
    21  tion,  the  commission may limit or place such restrictions thereupon as
    22  it may deem necessary in the public interest.
    23    5. After an application for a casino key employee license  is  submit-
    24  ted,  final  action  of the commission shall be taken within ninety days
    25  after completion of all hearings and investigations and the  receipt  of
    26  all information required by the commission.
    27    6.  Licenses  and registrations of casino key employees and gaming and
    28  non-gaming employees issued pursuant to this article shall remain  valid
    29  for five years unless suspended, revoked or voided pursuant to law. Such
    30  licenses  and  registrations  may  be renewed by the holder thereof upon
    31  application, on a form prescribed by the commission, and payment of  the
    32  applicable fee. Notwithstanding the [forgoing] foregoing, if a gaming or
    33  non-gaming  employee  registrant  has  not been employed in any position
    34  within a gaming facility for a period of three years,  the  registration
    35  of that gaming or non-gaming employee shall lapse.
    36    7.  Subsequent  to  the  issuance  of  a  license or registration, the
    37  commission may suspend, revoke, or limit  the  license  or  registration
    38  upon  a  finding  that  an applicant is no longer qualified to hold such
    39  license or registration in accordance with this article, or  as  it  may
    40  deem  necessary  to protect the public interest, following notice and an
    41  opportunity for a hearing. The  commission  may  temporarily  suspend  a
    42  license or registration pending any investigation, prosecution, or hear-
    43  ing  if  it  is  deemed  necessary  to do so to protect the integrity of
    44  gaming activities.
    45    8. The commission shall establish by regulation appropriate fees to be
    46  paid upon the filing of the required applications. Such  fees  shall  be
    47  deposited into the commercial gaming revenue fund.
    48    § 9. Subdivision 3 of section 1326 of the racing, pari-mutuel wagering
    49  and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
    50  amended to read as follows:
    51    3. Vendors providing goods and services to gaming  facility  licensees
    52  or  applicants ancillary to gaming, including vendors with access to the
    53  player database or sensitive player information, vendors with heightened
    54  security access or information, and junket enterprises shall be required
    55  to be licensed as an ancillary casino vendor enterprise and shall comply
    56  with the standards for casino vendor license applicants. The  commission
        S. 6139                             6

     1  may  also require any vendor regularly conducting over two hundred fifty
     2  thousand dollars of business with a gaming licensee or applicant  within
     3  a twelve-month period or one hundred thousand dollars of business within
     4  a three-month period to be licensed as an ancillary gaming vendor.
     5    §  10. Subdivision 4 of section 1326 of the racing, pari-mutuel wager-
     6  ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
     7  amended to read as follows:
     8    4.  Each  casino vendor enterprise required to be licensed pursuant to
     9  subdivision one of this section, as well as its owners;  management  and
    10  supervisory  personnel[;  and employees if such employees have responsi-
    11  bility for services to a gaming facility applicant  or  licensee,]  must
    12  qualify  under  the  standards, except residency, established for quali-
    13  fication of a casino key employee under this article. Employees of  such
    14  vendors  that  have  responsibility  for  services  to a gaming facility
    15  applicant or licensee must qualify under the standards  established  for
    16  qualification of a gaming employee registration under this article.
    17    Each ancillary casino vendor enterprise required to be licensed pursu-
    18  ant to subdivision three of this section, as well as its owners; manage-
    19  ment;  supervisory  personnel and employees that have responsibility for
    20  services to a gaming facility applicant or licensee must  qualify  under
    21  the  standards established for qualification of a gaming employee regis-
    22  tration under this article.
    23    § 11. Subdivision 5 of section 1326 of the racing, pari-mutuel  wager-
    24  ing  and  breeding  law, as added by chapter 174 of the laws of 2013, is
    25  amended to read as follows:
    26    5. Any vendor that offers goods  or  services  to  a  gaming  facility
    27  applicant or licensee in excess of twenty-five thousand dollars within a
    28  twelve-month period that is not included in subdivision one [or], two or
    29  three of this section including, but not limited to site contractors and
    30  subcontractors,  shopkeepers located within the facility, gaming schools
    31  that possess slot machines for the  purpose  of  instruction,  [and  any
    32  non-supervisory  employee of a junket enterprise licensed under subdivi-
    33  sion three of this section] vending machine providers, linen  suppliers,
    34  garbage  handlers,  maintenance  companies, limousine services, and food
    35  purveyors, shall be required to register with the commission in  accord-
    36  ance with the regulations promulgated under this article.
    37    Prior  to conducting business with any vendor not included in subdivi-
    38  sion one or two of this section, which is providing business worth  less
    39  than  the  thresholds  provided  in  this subdivision, a gaming facility
    40  applicant or licensee shall notify the commission of the intended trans-
    41  action, along with any history of  transactions  with  such  vendor,  to
    42  allow  for  verification that the licensing requirements of this section
    43  do not apply.
    44    All employees of a vendor registered pursuant  to  this  section  that
    45  provide  services upon the premises of a gaming facility are required to
    46  be registered as and meet the standards of a non-gaming employee.
    47    Notwithstanding the provisions aforementioned, the executive  director
    48  may,  consistent with the public interest and the policies of this arti-
    49  cle, direct that individual vendors registered pursuant to this subdivi-
    50  sion be required to apply for either a casino vendor enterprise  license
    51  pursuant  to  subdivision  one  of  this section, or an ancillary vendor
    52  industry enterprise  license  pursuant  to  subdivision  three  of  this
    53  section,  as directed by the commission. The executive director may also
    54  order that any enterprise licensed as or required to be licensed  as  an
    55  ancillary casino vendor enterprise pursuant to subdivision three of this
    56  section  be  required  to  apply  for a casino vendor enterprise license
        S. 6139                             7

     1  pursuant to subdivision one of this section. The executive director  may
     2  also,  in  his  or  her  discretion,  order that an independent software
     3  contractor not otherwise required to be registered be either  registered
     4  as  a  vendor  pursuant  to  this subdivision or be licensed pursuant to
     5  either subdivision one or three of this section.
     6    [Each ancillary casino  vendor  enterprise  required  to  be  licensed
     7  pursuant  to  subdivision  three of this section, as well as its owners,
     8  management and supervisory personnel, and employees  if  such  employees
     9  have  responsibility  for  services  to  a  gaming facility applicant or
    10  licensee, shall establish their good character, honesty and integrity by
    11  clear and convincing evidence and shall provide such financial  informa-
    12  tion as may be required by the commission. Any enterprise required to be
    13  licensed  as  an  ancillary  casino  vendor  enterprise pursuant to this
    14  section shall be permitted to transact business with a  gaming  facility
    15  licensee  upon  filing  of  the appropriate vendor registration form and
    16  application for such licensure.]
    17    § 12. Subdivision 6 of section 1326 of the racing, pari-mutuel  wager-
    18  ing  and  breeding  law, as added by chapter 174 of the laws of 2013, is
    19  amended to read as follows:
    20    6. Any applicant, licensee or qualifier of a casino vendor  enterprise
    21  license or of an ancillary casino vendor enterprise license under subdi-
    22  vision  one of this section, and any vendor registrant under subdivision
    23  five of this section shall be disqualified in accordance with the crite-
    24  ria contained in section [one thousand three] thirteen hundred  eighteen
    25  of this article, except that no such [ancillary casino vendor enterprise
    26  license  under  subdivision three of this section or vendor registration
    27  under subdivision five of this section] applicant, licensee or qualifier
    28  shall be denied or revoked if such [vendor registrant] applicant, licen-
    29  see or qualifier can affirmatively demonstrate  rehabilitation  pursuant
    30  to article twenty-three-A of the correction law.
    31    §  13.  Section  1326 of the racing, pari-mutuel wagering and breeding
    32  law is amended by adding a new subdivision 11 to read as follows:
    33    11. Notwithstanding the preceding subdivisions, the executive director
    34  may, in his or her discretion, waive any of  the  requirements  of  this
    35  section  when  a  gaming  facility applicant or licensee can demonstrate
    36  that the business relationship with any individual vendor will be limit-
    37  ed in scope and duration and that the public interest and  the  policies
    38  of  this  article  would not be diminished by such waiver. In requesting
    39  such waiver, the gaming facility applicant or licensee shall provide any
    40  and all information needed to make such determination and  any  and  all
    41  information needed as a condition of such waiver. The executive director
    42  may  revoke  any  such  waiver at any time upon a determination that the
    43  circumstances upon which such waiver was granted have changed.
    44    § 14. This act shall take effect immediately.