senate Bill S4649

Relates to the prohibition on members, officers and employees of the gaming commission and the office of racing promotion and development on wagering and claiming prizes in this state

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 16 / Apr / 2013
    • REFERRED TO RACING, GAMING AND WAGERING
  • 29 / May / 2013
    • 1ST REPORT CAL.768
  • 30 / May / 2013
    • 2ND REPORT CAL.
  • 03 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO RACING, GAMING AND WAGERING
  • 13 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 28 / May / 2014
    • 1ST REPORT CAL.946
  • 29 / May / 2014
    • 2ND REPORT CAL.
  • 02 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Relates to the prohibition on members, officers and employees of the gaming commission and the office of racing promotion and development on wagering and claiming prizes in this state.

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Bill Details

See Assembly Version of this Bill:
A7925
Versions:
S4649
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Amd §§107 & 104, RWB L; amd §§1610 & 1605, Tax L

Votes

10
0
10
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Racing, Gaming and Wagering committee vote details

Sponsor Memo

BILL NUMBER:S4649

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law and the tax law, in relation to the operation of the
gaming commission

Purpose of the Bill:

This bill would amend the Tax Law and the Racing, Pari-Mutuel Wagering
and Breeding Law ("Racing Law") to standardize the prohibition against
wagering upon or claiming a prize in any racing or gaming activity
conducted within New York State and to authorize the Gaming Commission
to obtain criminal fingerprint histories of its employment applicants.

Summary of Provisions:

Section 1 of the bill would amend Racing Law § 107 to provide that no
member, officer or employee of the Gaming Commission (or certain
members, officers or employees of other State agencies) shall wager
upon or claim a prize in any gaming or horse racing activities
conducted within the State of New York. The bill would also place this
restriction on any spouse, child, brother, sister, parent or other
person residing as a member of the same household in the principal
place of abode of any of the foregoing persons. The restriction upon a
member, officer or employee of another State agency would apply to any
member, officer or employee if the duties of such member, officer or
employee directly relate to the operation of any gaming activity
conducted within the State.

Section 2 would amend Tax Law § 1610 to eliminate the prohibition
against certain persons playing Lottery games that is within the
Lottery for Education Law (Tax Law Article 34), as such prohibition is
replaced by the amended prohibition in Section 1 of the bill.

Section 3 of the bill would amend Racing Law § 104 to authorize the
Gaming Commission to obtain criminal fingerprint histories of its
employment applicants. It also includes language approved by the
Federal Bureau of Investigation to permit national criminal background
investigations for license applicants.

Section 4 would amend Tax Law § 1605 to remove the authorization of
the former Division of the Lottery to conduct criminal background
reviews on its licensees and license applicants from the Lottery for
Education Law (Tax Law Article 34), as such authority was granted to
the Gaming Commission by Racing Law § 104. Authority to obtain
criminal fingerprint histories for licensees and license applicants
would be consolidated into the Racing Law under Section 3 of the bill.

Section 5 of the bill makes the act effective immediately, provided,
however that Sections 1 and 2 of the bill would take effect on the
thirtieth day after it shall have became a law. This Section would
also provide that the prohibition on, claiming a prize by a prohibited
person does not apply to a wager that had been placed lawfully before
the effective date of this law.

Existing Law:


Racing Law § 107(3) prohibits Gaming Commission employees from
wagering upon any racing or gaming activity conducted within New York
State, whether or not the wager occurs beyond the State's borders, but
it does not address the family and household members of such
employees. When the legislation creating the Gaming Commission was
enacted, it did not amend the comparable provision in Tax Law § 1610
that prohibits Lottery employees, certain Department of Taxation and
Finance employees, and certain family members of their households from
playing Lottery games. This created two different standards for Gaming
Commission employees, one standard in Racing Law § 104 applicable to
all gaming activity, and another standard in Tax Law § 1610 applicable
only to Lottery games.

While Tax Law § 1605(e) authorizes the former Division of the Lottery
to obtain criminal fingerprint histories of its employment applicants,
Racing Law § 104 does not specifically provide the Gaming Commission
with such authority. The present law also has two schemes for
investigating fingerprint histories, one in Racing Law § 104 and one
in Tax Law § 1605.

Prior Legislative History:

This is a new proposal.

Statement in Support:

This bill seeks to set one standard for the wagering restrictions
placed upon (i) members, officers or employees of the Gaming
Commission and the Office for Racing Promotion and Development, (ii)
other State employees who may work on Gaming Commission operations,
and (iii) members of their households. Such a standard is important to
maintaining the integrity Gaming Commission operations.

Another important aspect of the Gaming Commission is the integrity of
its staff While the former Division of the Lottery had authority to
obtain criminal histories of its employment applicants, the authority
of the Gaming Commission to do so is less clear. This bill would
expressly authorize the Gaming Commission to obtain criminal histories
of its employment applicants, including those seeking to transfer to
the Gaming Commission from other State employment. Full scrutiny of
all prospective employees of the Gaming Commission is necessary to
enable the Gaming Commission to fulfill its duties with the highest
integrity and public confidence.

Finally, because the Federal Bureau of Investigation requires specific
authorization in order to permit the Division of Criminal Justice
Services to gain access to criminal history information from the
national crime database and report such findings to the Gaming
Commission, the bill also provides greater specificity as to the
persons whose criminal history will be checked.

Budget Implications:

None.

Local Impact:


None.

Effective Date:

This act would take effect immediately; provided, however, that
sections 1 and 2 take effect 30 days after becoming law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4649

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 16, 2013
                               ___________

Introduced  by  Sen.  BONACIC  --  (at  request  of  the Division of the
  Lottery) -- read twice and ordered printed, and  when  printed  to  be
  committed to the Committee on Racing, Gaming and Wagering

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law and
  the tax law, in relation to the operation of the gaming commission

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  3  of section 107 of the racing, pari-mutuel
wagering and breeding law, as added by section 1 of part A of chapter 60
of the laws of 2012, is amended to read as follows:
  3. (A) No member, officer or employee of the commission OR THE  OFFICE
OF RACING PROMOTION AND DEVELOPMENT shall wager upon OR CLAIM A PRIZE IN
gaming or horse racing activity conducted within the state.
  (B)  NO MEMBER, OFFICER OR EMPLOYEE OF ANY OTHER AGENCY, AS DEFINED IN
SECTION ONE HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT, SHALL
WAGER UPON OR CLAIM A PRIZE IN GAMING OR HORSE RACING ACTIVITY CONDUCTED
WITHIN THE STATE IF THE DUTIES  OF  SUCH  MEMBER,  OFFICER  OR  EMPLOYEE
DIRECTLY RELATE TO THE OPERATION OF ANY GAMING ACTIVITY CONDUCTED WITHIN
THE STATE. FOR THE PURPOSES OF THIS PARAGRAPH, DUTIES DIRECTLY RELATE TO
THE  OPERATION  OF  ANY  GAMING  ACTIVITY  IF SUCH DUTIES CONSIST OF (I)
MAKING A DECISION, OR ADVISING OR RECOMMENDING A DECISION, ON THE MANNER
OR METHOD OF OPERATING A GAMING ACTIVITY IN ORDER TO ASSURE THE  ACCURA-
CY,  SAFETY, FAIRNESS, CREDIBILITY OR INTEGRITY OF SUCH GAMING ACTIVITY,
OR (II) INVENTING, CREATING, DESIGNING, REVISING, REPLACING, REGULATING,
OVERSEEING,  LICENSING,  PERMITTING,  CERTIFYING,  WITNESSING,  JUDGING,
OFFICIATING,  SUPERVISING,  MANAGING, CONDUCTING, OR ASSISTING IN GAMING
ACTIVITY OR IN ANY PROCEDURE RELIED UPON TO DETERMINE THE OUTCOME OF ANY
GAMING ACTIVITY ACCORDING TO THE MANNER OR METHOD PRESCRIBED THEREFOR.
  (C) NO SPOUSE, CHILD, BROTHER, SISTER, PARENT OR OTHER PERSON RESIDING
AS A MEMBER OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY
OF THE PERSONS LISTED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION  SHALL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09300-02-3

S. 4649                             2

WAGER UPON OR CLAIM A PRIZE IN GAMING OR HORSE RACING ACTIVITY CONDUCTED
WITHIN THE STATE.
  S  2.  Section 1610 of the tax law, as added by chapter 92 of the laws
of 1976, is amended to read as follows:
  S 1610. Sales to certain persons prohibited. [a.] No ticket  shall  be
sold  to  any person under the age of eighteen years, but this shall not
be deemed to prohibit the purchase of a ticket for the purpose of making
a gift by a person eighteen years of age or older to a person less  than
that  age.  Any  licensee  or  the employee or agent of any licensee who
sells or offers to sell a lottery ticket to any person under the age  of
eighteen shall be guilty of a misdemeanor.
  [b.  No  ticket  shall be sold to and no prize shall be paid to any of
the following persons:
  (i) any member, officer or employee of the division; or
  (ii) any member, officer or employee of the department of taxation and
finance whose duties directly relate  to  the  operation  of  the  state
lottery; or
  (iii)  any  spouse,  child,  brother,  sister  or parent residing as a
member of the same household in the principal place of abode of  any  of
the foregoing persons.]
  S 3. Subdivision 14 of section 104 of the racing, pari-mutuel wagering
and  breeding  law, as added by section 1 of part A of chapter 60 of the
laws of 2012, is amended to read as follows:
  14. (A) To [access the criminal history records of]  TRANSMIT  FINGER-
PRINTS  AND  THE APPLICABLE FEE IN THE FORM AND MANNER PRESCRIBED BY the
division of criminal justice services, pursuant to  subdivision  eight-a
of   section  eight  hundred  thirty-seven  of  the  executive  law,  in
connection with executing the responsibilities of the commission  relat-
ing  to  the  regulation,  oversight,  licensing,  permitting or certif-
ication, including fingerprinting, criminal history  record  checks  and
background  investigations,  of (I) persons applying to engage in gaming
activities, (II) ANY PERSONS APPLYING FOR EMPLOYMENT  WITH  THE  COMMIS-
SION,  AND (III) ANY PERSONS APPLYING FOR EMPLOYMENT WITH THE COMMISSION
WHO ARE NEW YORK STATE EMPLOYEES SEEKING TRANSFER TO THE  COMMISSION  OR
WHO ARE ON A PREFERRED OR ELIGIBLE LIST, NOTWITHSTANDING ANY LIMITATIONS
ON  CONDUCTING  CRIMINAL HISTORY RECORD CHECKS ON SUCH PERSONS CONTAINED
IN SUBDIVISION FOUR OF SECTION FIFTY OF THE CIVIL SERVICE LAW AND SUBDI-
VISION EIGHT-A OF SECTION EIGHT HUNDRED THIRTY-SEVEN  OF  THE  EXECUTIVE
LAW.  At the request of the commission, the division of criminal justice
services shall submit [a fingerprint card] SUCH FINGERPRINTS, along with
the  subject's processing fee, to the federal bureau of investigation OR
ANY OTHER STATE OR  FEDERAL  GOVERNMENT  AGENCY  HAVING  FACILITIES  FOR
CHECKING  FINGERPRINTS FOR PURPOSES OF DETERMINING WHETHER OR NOT CRIMI-
NAL CHARGES ARE PENDING AGAINST THE APPLICANT  OR  WHETHER  OR  NOT  THE
APPLICANT  HAD  PREVIOUSLY BEEN CONVICTED OF A CRIME, for the purpose of
conducting a NATIONAL criminal history search  and  returning  a  report
thereon  AND  THE  DIVISION  OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY
REPORT A FINDING OF SUCH CHARGES AND PREVIOUS CONVICTIONS,  IF  ANY,  TO
THE  COMMISSION  IN  WRITING  OR BY ELECTRONIC MEANS OR ANY OTHER METHOD
AGREED UPON BY THE COMMISSION AND SUCH AGENCY. The commission shall also
be entitled to request and receive, pursuant to a written memorandum  of
understanding filed with the department of state, any information in the
possession  of  the state attorney general relating to the investigation
of organized  crime,  gaming  offenses,  other  revenue  crimes  or  tax
evasion.  Provided however, the attorney general may withhold any infor-
mation that (a) would identify a confidential source or disclose  confi-

S. 4649                             3

dential  information  relating  to  a  criminal investigation, (b) would
interfere with law enforcement investigations or  judicial  proceedings,
(c)  reveal  criminal  investigative  techniques or procedures, that, if
disclosed,  could  endanger  the  life  or  safety of any person, or (d)
constitutes records received from other state, local or federal agencies
that the attorney general is prohibited by law, regulation or  agreement
from disclosing.
  (B)  NOTWITHSTANDING THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFI-
CERS LAW OR ANY OTHER LAW TO THE CONTRARY, THE COMMISSION  MAY  WITHHOLD
FROM PUBLIC DISCLOSURE ANY CRIMINAL HISTORY INFORMATION.
  (C)  FOR  PURPOSES OF THIS SUBDIVISION, A PERSON APPLYING TO ENGAGE IN
GAMING ACTIVITIES MAY INCLUDE:  ANY PERSON OR ENTITY  THAT  IS  APPLYING
FOR A LICENSE ISSUED PURSUANT TO THIS ARTICLE, INCLUDING BUT NOT LIMITED
TO:  A  LOTTERY  SALES  AGENT; A VIDEO LOTTERY GAMING AGENT; A VENDOR; A
VENDOR'S SUBCONTRACTOR; AN EMPLOYEE OF  AN  AGENT;  VENDOR  OR  VENDOR'S
SUBCONTRACTOR;  AN  OFFICER,  DIRECTOR,  PARTNER, TRUSTEE OR OWNER OF AN
AGENT; VENDOR OR VENDOR'S SUBCONTRACTOR; A HORSE OWNER,  WHICH  INCLUDES
PART  OWNERS;  LESSEES;  TRAINERS;  ASSISTANT  TRAINERS; JOCKEYS; JOCKEY
AGENTS; STABLE EMPLOYEES; DRIVERS; AND SUCH OTHER PARTICIPANTS IN  HORSE
RACING  OR  PARI-MUTUEL  WAGERING  ACTIVITIES  AS  THE  COMMISSION SHALL
PRESCRIBE BY RULE.
  S 4. Subdivision e of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:
  e. The division is hereby authorized  to  obtain  criminal  background
information  on  any  applicant for, or holder of, a lottery license for
the  purpose  of  determining  whether  a  license  should  be  granted,
suspended,  or  revoked.  [The  sources  of such information include the
license applicant or holder, the division of criminal justice  services,
and  any  licensing  agency  which  is currently considering a licensing
application or which has been granted a presently-held  license  to  the
same  license  applicant  or  holder.  The  division  shall require each
license applicant to submit identifying information which shall  include
fingerprints  unless they are already on file with the division or other
state  agencies.  The  fingerprints  so  obtained  shall  be   forthwith
forwarded, and the applicable fee transmitted, to the division of crimi-
nal  justice  services  or  any other state or federal government agency
having facilities for checking fingerprints for the purpose of determin-
ing whether or not criminal charges are pending against the applicant or
whether or not the applicant had previously been convicted of  a  crime,
and  such agency shall promptly report a finding of such pending charges
and previous convictions, if any, to the division in writing or by elec-
tronic means or any other method agreed upon by the  division  and  such
agency. Prior to or upon making a determination not to approve an appli-
cation  for a lottery license based upon an applicant's criminal history
record, the division shall provide such applicant with a copy of article
twenty-three-A of the correction law, and inform such applicant  of  his
or  her  right to seek correction of any incorrect information contained
in such record pursuant to regulations and procedures established by the
division of criminal justice services. In its discretion,  the  division
may  decline  to  act  on any application pending the disposition of any
pending charges against the applicant.  The division may, after  provid-
ing notice and an opportunity for a hearing pursuant to the state admin-
istrative  procedure  act,  deny  a  license to any person found to have
committed a felony under the laws of the United States or under the laws
of the state of New York or any other state or foreign  jurisdiction  or
any  crime  relating  to gaming activities or that is otherwise found to

S. 4649                             4

have engaged in conduct which would be prejudicial to public  confidence
in  the  state  lottery.  All  determinations to grant or deny a license
pursuant to this section shall be in accordance with subdivision sixteen
of section two hundred ninety-six of the executive law and article twen-
ty-three-A  of  the  correction  law.  Notwithstanding the provisions of
article six of the public officers law or any other law to the contrary,
the division may withhold from public disclosure  any  criminal  history
information  except  that criminal convictions may not be withheld under
this provision.
  For purposes of this article, a licensee may include: a lottery  sales
agent; a video lottery gaming agent; a vendor; a vendor's subcontractor;
an  employee  of an agent, vendor or vendor's subcontractor; or an offi-
cer, director, partner, trustee or owner of an agent, vendor or vendor's
subcontractor.]
  S 5.  This act shall take effect immediately;  provided  however  that
sections  one and two of this act shall take effect on the thirtieth day
after it shall have become a law and sections one and two  of  this  act
shall  not  apply  to  a  prize claimed after such effective date if the
wager upon which the prize was  won  was  lawfully  placed  before  such
effective date.

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