Assembly Bill A10957

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10957
 
                           I N  A S S E M B L Y
 
                               May 29, 2018
                                ___________
 
 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:

   Section 1. Legislative findings.  The  legislature  hereby  finds  and
 declares  that the intent of the upstate New York gaming economic devel-
 opment act of 2013 was to aid the economic development  of  upstate  New
 York  by  increasing  employment opportunities and investment into these
 host communities. The legislature further finds  that  public  resources
 ought  not be used to assist gaming facilities. Any assistance to gaming
 facilities must be conditioned on full financial disclosure and an inde-
 pendent audit of the gaming facilities in order to show how this assist-
 ance would be necessary to benefit and  protect  the  workforce  of  the
 gaming facilities and the host municipality and nearby municipalities of
 each  gaming  facility. Any assistance shall prevent self-dealing by the
 officers and shareholders of  the  gaming  facility  and  shall  not  be
 utilized  to unduly benefit or enrich the officers, shareholders, inves-
 tors, and lenders of any gaming facility, its holding company,  interme-
 diary companies, subsidiaries, or affiliates.
   § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
 is amended by adding 3 new subdivisions 2, 3 and 4 to read as follows:
   2. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY REDUCTION IN
 TAXES UNDER SUBDIVISION ONE OF THIS SECTION, OR ANY OTHER PUBLIC ASSIST-
 ANCE  OR BENEFITS, A GAMING FACILITY SHALL DISCLOSE THE FOLLOWING INFOR-
 MATION TO THE COMMISSION:
   (A) THE NAMES AND PAYMENTS MADE TO ALL CASINO KEY EMPLOYEES IN  EXCESS
 OF ONE HUNDRED THOUSAND DOLLARS FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN
 TO PRESENT;
   (B)  THE  NAMES  AND  PAYMENTS  MADE TO ALL INDEPENDENT CONTRACTORS IN
 EXCESS OF ONE HUNDRED THOUSAND DOLLARS FOR CALENDAR  YEAR  TWO  THOUSAND
 SEVENTEEN TO PRESENT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15939-01-8

 A. 10957                            2
 
   (C)  ALL  PAYMENTS IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS TO INVES-
 TORS, CASINO VENDOR ENTERPRISES, JUNKET ENTERPRISES,  CLOSE  ASSOCIATES,
 AND AFFILIATES FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN TO PRESENT;
   (D)  ALL  PAYMENTS  IN CALENDAR YEAR TWO THOUSAND SEVENTEEN TO PRESENT
 MADE TO THE BOARD OF DIRECTORS, OR TO THE  BOARD  OF  DIRECTORS  OF  ITS
 HOLDING  COMPANY,  INTERMEDIARY  COMPANIES,  SUBSIDIARIES, AFFILIATES OR
 CLOSE ASSOCIATES; AND
   (E) ALL CONTRACTUAL ARRANGEMENTS FOR  DEBT  AND  ENCUMBRANCES  ENTERED
 INTO  BY  THE  GAMING  FACILITY,  ITS HOLDING COMPANY, CLOSE ASSOCIATES,
 INTERMEDIARY COMPANIES, SUBSIDIARIES OR AFFILIATES WHICH PROVIDE FINANC-
 ING FOR THE CONSTRUCTION,  REPAIR,  MAINTENANCE  AND  OPERATION  OF  THE
 GAMING FACILITY.
   NOTWITHSTANDING  ANY  LAW TO THE CONTRARY, ALL DISCLOSURES MADE TO THE
 COMMISSION PURSUANT TO PARAGRAPHS (A), (B), (C), (D)  AND  (E)  OF  THIS
 SUBDIVISION  SHALL  BE MADE FULLY AVAILABLE BY THE COMMISSION FOR PUBLIC
 REVIEW AND INSPECTION.
   3. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY REDUCTION IN
 TAXES UNDER SUBDIVISION ONE OF THIS SECTION, OR ANY OTHER PUBLIC ASSIST-
 ANCE OR BENEFITS, A GAMING FACILITY  SHALL  FURTHER  DISCLOSE  AND  MAKE
 AVAILABLE  TO  THE  COMMISSION  ALL  QUARTERLY FINANCIAL REPORTS AND THE
 ANNUAL AUDIT REQUIRED TO BE FILED, PURSUANT TO PARAGRAPH (O) OF SUBDIVI-
 SION TWO OF SECTION THIRTEEN HUNDRED  SEVEN  OF  THIS  ARTICLE  FOR  THE
 TWELVE MONTHS PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION.  NOTWITH-
 STANDING  ANY LAW TO THE CONTRARY, SUCH REPORTS AND AUDITS SHALL BE MADE
 FULLY AVAILABLE BY THE COMMISSION FOR PUBLIC REVIEW AND INSPECTION.
   4. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY REDUCTION IN
 TAXES UNDER SUBDIVISION ONE OF THIS SECTION, OR ANY OTHER PUBLIC ASSIST-
 ANCE OR BENEFITS, THE GAMING FACILITY SHALL AGREE TO THE APPOINTMENT  OF
 AN  INDEPENDENT FINANCIAL MONITOR SELECTED BY THE GAMING COMMISSION. THE
 MONITOR'S SALARY AND EXPENSES SHALL BE PAID BY THE GAMING FACILITY.  THE
 MONITOR  SHALL  HAVE  ACCESS  TO ALL THE FINANCIAL RECORDS OF THE GAMING
 FACILITY AND SHALL REPORT ITS FINDINGS TO THE COMMISSION.  NOTWITHSTAND-
 ING ANY LAWS TO THE CONTRARY, THE REPORTS OF THE MONITOR SHALL  BE  MADE
 FULLY  AVAILABLE  FOR PUBLIC REVIEW AND INSPECTION. THE MONITOR'S DUTIES
 SHALL TERMINATE ON FEBRUARY FIRST, TWO THOUSAND  TWENTY.    THE  MONITOR
 SHALL HAVE THE FOLLOWING DUTIES:
   (A)  ISSUE BIANNUAL REPORTS COMMENCING WITH A REPORT AT THE CONCLUSION
 OF THE TWO THOUSAND EIGHTEEN CALENDAR YEAR;
   (B) PUBLISH IN SUCH REPORTS THE INFORMATION  REQUIRED  BY  SUBDIVISION
 TWO  OF  THIS  SECTION  FOR CALENDAR YEARS TWO THOUSAND EIGHTEEN AND TWO
 THOUSAND NINETEEN;
   (C) REPORT ON ANY MATERIAL WEAKNESS IN ACCOUNTING, INTERNAL  CONTROLS,
 AND BUSINESS AND MANAGEMENT PRACTICES AT THE GAMING FACILITY;
   (D)  REVIEW  AND MAKE RECOMMENDATIONS CONCERNING THE GAMING FACILITY'S
 OPERATING REVENUES AND THE ESTABLISHMENT OF A FINANCIAL PLAN;
   (E) REVIEW SUCH GAMING FACILITY'S OVERALL COMPLIANCE  WITH  THE  LAWS,
 RULES AND REGULATIONS APPLICABLE TO ITS ACTIVITIES;
   (F) MONITOR THE HIRING OF GAMING EMPLOYEES AT THE GAMING FACILITY; THE
 MONITOR  SHALL  NOTIFY THE COMMISSION ANY TIME THAT THE NUMBER OF GAMING
 EMPLOYEES IS LOWER THAN NINETY-FIVE PERCENT OF THE NUMBER THAT  WERE  ON
 STAFF  AT THE GAMING FACILITY ON THE EFFECTIVE DATE OF THIS SUBDIVISION;
 AND
   (G) EVALUATE THE OVERALL FINANCIAL POSITION OF THE GAMING FACILITY.
   § 3. This act shall take effect immediately.