Senate Bill S8866

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8866
 
                             I N  S E N A T E
 
                               May 30, 2018
                                ___________
 
 Introduced by Sens. YOUNG, GRIFFO -- 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,  in
   relation  to  requiring  certain  disclosures by gaming facilities for
   eligibility for certain tax reductions, public assistance and benefits

   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 three new subdivisions  2,  3  and  4  to  read  as
 follows:
   2.  DISCLOSURE. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY
 REDUCTION IN TAXES IN SUBDIVISION ONE OF  THIS  SECTION,  OR  ANY  OTHER
 PUBLIC  ASSISTANCE  OR  BENEFITS,  A  GAMING FACILITY SHALL DISCLOSE THE
 FOLLOWING INFORMATION 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15820-01-8

 S. 8866                             2
 
   (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;
   (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;
   (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; AND
   (F)  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL DISCLO-
 SURES MADE TO THE COMMISSION PURSUANT TO PARAGRAPH (A), (B), (C), (D) OR
 (E) OF THIS SUBDIVISION SHALL BE MADE FULLY AVAILABLE BY THE  COMMISSION
 FOR PUBLIC REVIEW AND INSPECTION.
   3.  FURTHER DISCLOSURE. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY
 FOR ANY REDUCTION IN TAXES IN SUBDIVISION ONE OF THIS  SECTION,  OR  ANY
 OTHER  PUBLIC  ASSISTANCE  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 SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE
 FOR  THE  TWELVE MONTHS PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION.
 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, SUCH  REPORTS  AND
 AUDITS SHALL BE MADE FULLY AVAILABLE BY THE COMMISSION FOR PUBLIC REVIEW
 AND INSPECTION.
   4. APPOINTMENT OF INDEPENDENT FINANCIAL MONITOR. BEFORE BEING ELIGIBLE
 TO  APPLY  FOR AND QUALIFY FOR ANY REDUCTION IN TAXES IN SUBDIVISION ONE
 OF THIS SECTION, OR ANY OTHER PUBLIC ASSISTANCE 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.  NOTWITHSTANDING 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  FOLLOW-
 ING 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

 S. 8866                             3
 
 STAFF  OF  THE  GAMING  FACILITY ON THE DATE THAT THE BILL WAS PASSED BY
 BOTH HOUSES OF THE LEGISLATURE; AND
   (G) EVALUATE THE OVERALL FINANCIAL POSITION OF THE GAMING FACILITY.
   § 3. This act shall take effect immediately.