S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3439
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2021
                                ___________
 
 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
   deduction 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 3, 4 and 5 to read as follows:
   3. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY DEDUCTION IN
 TAXES  UNDER THIS SECTION, OR ANY OTHER PUBLIC ASSISTANCE OR BENEFITS, A
 GAMING FACILITY SHALL DISCLOSE THE FOLLOWING INFORMATION TO THE  COMMIS-
 SION:
   (A)  THE NAMES AND PAYMENTS MADE TO ALL CASINO KEY EMPLOYEES IN EXCESS
 OF ONE HUNDRED THOUSAND DOLLARS FOR CALENDAR YEAR TWO THOUSAND  NINETEEN
 TO PRESENT;
   (B)  THE  NAMES  AND  PAYMENTS  MADE TO ALL INDEPENDENT CONTRACTORS IN
 EXCESS OF ONE HUNDRED THOUSAND DOLLARS FOR CALENDAR  YEAR  TWO  THOUSAND
 NINETEEN TO PRESENT;
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00587-01-1

 A. 3439                             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 NINETEEN TO PRESENT;
   (D)  ALL  PAYMENTS  IN  CALENDAR YEAR TWO THOUSAND NINETEEN 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.
   4. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY DEDUCTION IN
 TAXES UNDER THIS SECTION, OR ANY OTHER PUBLIC ASSISTANCE OR BENEFITS,  A
 GAMING FACILITY SHALL FURTHER DISCLOSE AND MAKE AVAILABLE TO THE COMMIS-
 SION 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  EFFEC-
 TIVE DATE OF THIS SUBDIVISION.  NOTWITHSTANDING ANY LAW TO THE CONTRARY,
 SUCH  REPORTS AND AUDITS SHALL BE MADE FULLY AVAILABLE BY THE COMMISSION
 FOR PUBLIC REVIEW AND INSPECTION.
   5. BEFORE BEING ELIGIBLE TO APPLY FOR AND QUALIFY FOR ANY DEDUCTION IN
 TAXES UNDER 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 SALA-
 RY 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 AVAIL-
 ABLE FOR PUBLIC REVIEW AND INSPECTION. THE MONITOR'S DUTIES SHALL TERMI-
 NATE ON FEBRUARY FIRST, TWO THOUSAND  TWENTY-THREE.  THE  MONITOR  SHALL
 HAVE THE FOLLOWING DUTIES:
   (A)  ISSUE BIANNUAL REPORTS COMMENCING WITH A REPORT AT THE CONCLUSION
 OF THE TWO THOUSAND TWENTY-ONE CALENDAR YEAR;
   (B) PUBLISH IN SUCH REPORTS THE INFORMATION  REQUIRED  BY  SUBDIVISION
 THREE OF THIS SECTION FOR CALENDAR YEARS TWO THOUSAND TWENTY-ONE AND TWO
 THOUSAND TWENTY-TWO;
   (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.