SGC-29-15-00015-P Licensing and Registration of Gaming Facility Employees and Vendors

7/22/15 N.Y. St. Reg. SGC-29-15-00015-P

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 29

July 22, 2015

RULE MAKING ACTIVITIES

NEW YORK STATE GAMING COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. SGC-29-15-00015-P

Licensing and Registration of Gaming Facility Employees and Vendors

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Addition of Parts 5303 through 5307 to Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutuel Wagering and Breeding Law, sections 104(19), 1307(1), (2), 1322, 1323, 1324, 1325, 1326 and 1327

Subject:

Licensing and registration of gaming facility employees and vendors.

Purpose:

To govern the licensing and registration of gaming facility employees and vendors.

Substance of proposed rule (Full text is posted at the following State website:www.gaming.ny.gov/):

This addition to Subtitle T of Title 9 NYCRR will add new Parts 5303, 5304, 5305, 5306 and 5307 to allow the New York Gaming Commission (“Commission”) to prescribe the form and process for the issuance of licenses and registrations to gaming facility employees and vendors.

Sections 5303.1 through 5303.10 sets forth general identification and technical requirements by which gaming facility employees and vendors can establish their qualifications for licensure and registration, including fingerprinting and photographing, minimum age, and eligibility to work in the United States.

Section 5303.11 sets forth the background investigation requirement for applicants, licensees and registrants and any affiliate, intermediary, subsidiary or holding company of such applicants, licensees, and registrants.

Section 5030.13 guides applicants on criteria by which the Commission may disqualify an applicant, licensee or registrant and deny a license or registration by referring to applicable statutory provisions.

Section 5303.14 sets forth regulations on the fees payable in connection with employee and vendor licenses and registrations.

Section 5303.15 sets forth a re-applicant process for applicants, licensees and registrants whose applications are denied and for those licensees and registrants whose license or registration is suspended or revoked.

Section 5303.16 sets forth disciplinary action the Commission may take in connection with a licensee’s or registrant’s violation of the Racing Law or the regulations.

Section 5303.17 restricts wagering by casino key employees and gaming employees as required by section 1336 of the Racing Law.

Part 5304 defines and sets forth requirements, standards and procedures for the licensing of casino key employees.

Part 5305 defines and sets forth requirements, standards and procedures for the registration of gaming employees.

Part 5306 defines and sets forth requirements, standards and procedures for the registration of non-gaming employees.

Part 5307 defines and sets forth requirements, standards and procedures for the licensing and registration of casino vendors, ancillary casino vendors, and vendor registrants.

Text of proposed rule and any required statements and analyses may be obtained from:

Heather McArn, New York State Gaming Commission, One Broadway Center, 6th Floor, Schenectady, NY 12305, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. STATUTORY AUTHORITY: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 104(19) grants authority to the Gaming Commission (“Commission”) to promulgate rules and regulations that it deems necessary to carry out its responsibilities. Racing Law section 1307(1) grants rule making authority to the Commission to implement, administer and enforce the provisions of Racing Law Article 13.

Racing Law section 1307(2) prescribes that the Commission regulate, among other things: the methods and forms of application and registration that any applicant or registrant shall follow and complete; the methods, procedures, and form for delivery of information concerning any person’s family, habits, character, associates, criminal record, business activities and financial affairs; the procedures for the fingerprinting of an employee of a licensee, or registrant; the manner and method of collection of payments of fees; and the grounds and procedures for the revocation or suspension of licenses and registrations.

Racing Law section 1322 requires the Commission to regulate the form by which applicants, licensees and registrants provide information pertaining to their qualifications for licensure or registration.

Racing Law section 1323 requires the Commission to regulate the procedures for photographing and fingerprinting applicants, licensees and registrants for identification and investigation purposes.

Racing Law section 1324 requires the Commission to regulate the method and form of registration that a gaming employee shall follow and complete, and the form for delivery of information pertaining to a gaming employee’s qualifications for registration.

Racing Law section 1325 requires the Commission to establish by regulation appropriate fees to be paid upon the filing of the required applications.

Racing Law section 1326 requires the Commission to establish by regulation the time period during which a casino vendor may conduct business transactions with a gaming facility applicant or licensee prior to the casino vendor receiving a license. Racing Law section 1326 also requires the Commission to regulate the method and form of vendor registration.

Racing Law section 1327 requires the Commission to establish by regulation appropriate fees to be imposed on vendor registrants.

2. LEGISLATIVE OBJECTIVES: This rule making carries out the legislative objectives of the above-referenced statutes.

3. NEEDS AND BENEFITS: This rule making is necessary to establish gaming facility employee and vendor licensing and registration requirements, thereby enabling the Commission to implement Article 13 of the Racing Law and help New York State to capitalize on the economic development potential of legalized gambling, create thousands of well-paying jobs, and increase revenue to the State. In addition this rule making is necessary to promote public confidence and trust in the credibility and integrity of casino gambling in New York State.

Sections 5303.1 through 5303.10 set forth general identification and technical requirements by which gaming facility employees and vendors can establish their qualification for licensure and registration.

Section 5303.11 sets forth the background investigation requirement for applicants, licensees and registrants and any affiliate, intermediary, subsidiary or holding company of such applicants, licensees and registrants.

Section 5303.13 guides applicants on criteria by which the Commission may disqualify an applicant, licensee or registrant and deny a license or registration by referring to applicable statutory provisions.

Section 5303.14 sets forth regulations on the fees payable in connection with employee and vendor licenses and registrations.

Section 5303.15 sets forth a re-application process for applicants, licensees and registrants whose applications are denied and for those licensees and registrants whose license or registration is suspended or revoked.

Section 5303.16 sets forth disciplinary action the Commission may take in connection with a licensee’s or registrant’s violation of the Racing Law or the regulations.

Section 5303.17 restricts wagering by casino key employees and gaming employees as required by section 1336 of the Racing Law.

Part 5304 defines and sets forth requirements, standards and procedures for the licensing of casino key employees.

Part 5305 defines and sets forth requirements, standards and procedures for the registration of gaming employees.

Part 5306 defines and sets forth requirements, standards and procedures for the registration of non-gaming employees.

Part 5307 defines and sets forth requirements, standards and procedures for the licensing and registration of casino vendors, ancillary casino vendors, and vendor registrants.

4. COSTS:

(a) Costs to the regulated parties for the implementation of and continuing compliance with these rules: The costs of gaming facility employee application and license fees will be borne by the gaming facility seeking to employ such persons. Vendors who apply for a vendor license or registration will bear the costs of vendor application and license fees.

(b) Costs to the regulating agency, the State, and local governments for the implementation of and continued administration of the rule: The rules will impose some costs on the division of state police and the Commission for reviewing gaming facility employee and vendor applications, investigating applicants, and issuing licenses and registrations, however it is anticipated that the gaming facility and vendor payments of the application and license fees will offset such costs. The rules will not impose any additional costs on local governments.

(c) The information, including the source or sources of such information, and methodology upon which the cost estimate is based: The costs associated with licensing and registering gaming facility employees and vendors will be based on hourly rates for the division of state police to conduct background investigations and on the Commission’s administrative cost to process and issue such licenses and registrations. These costs will vary depending on the individual employee or vendor applicant and thus no estimate of cost is available.

5. LOCAL GOVERNMENT MANDATES: These rules do not impose any mandatory program, service, duty, or responsibility upon local government because the licensing and registration of gaming facility employees and vendors is strictly a matter of State law.

6. PAPERWORK: These rules are not expected to impose any significant paperwork requirements for gaming facility employee and vendor applicants other than the paperwork necessary for the application submission and investigation.

7. DUPLICATION: The rules do not duplicate, overlap or conflict with any existing State or federal requirements.

8. ALTERNATIVES: The Commission is required to create these rules under Racing Law section 1307(2) and sections 1322 through 1327. Therefore, no alternatives were considered.

9. FEDERAL STANDARDS: There are no federal standards applicable to the licensing or registration of gaming employees and vendors in New York. It is purely a matter of New York State law.

10. COMPLIANCE SCHEDULE: The Commission anticipates that affected parties will be able to achieve compliance with these rules upon adoption.

Regulatory Flexibility Analysis

1. EFFECT OF RULE: These rules provide for the licensure and registration of gaming facility employees and vendors. Small business vendors seeking to be licensed or registered will be impacted by these rules. Local government will not be affected by these rules.

2. COMPLIANCE REQUIREMENTS: These rules require participating small business vendors to apply for licensure or registration with the Commission.

3. PROFESSIONAL SERVICES: No new or additional professional services are required in order to comply with these rules.

4. COMPLIANCE COSTS: Participating small business vendors need to apply for licensure or registration and will incur costs associated with application and license fees.

5. ECONOMIC AND TECHNOLOGICAL FEASIBILITY: These rules will not impose any technological costs on small businesses or local government.

6. MINIMIZING ADVERSE IMPACT: These rules do not impose adverse impacts on small businesses or local government.

7. SMALL BUSINESS AND LOCAL GOVERNMENT PARTICIPATION: Small businesses and host local governments will have the opportunity to participate in the rule making process during the public comment period which will commence when these rules are formally proposed.

Rural Area Flexibility Analysis

Several of the development zone regions authorized to host a licensed gaming facility, as contemplated by Racing, pari-Mutuel Wagering and Breeding Law section 1310, are located within “rural areas” as that term is defined in Executive Law section 481(7). The decision to locate a licensed gaming facility in a rural area will not have an adverse economic impact. These rules have the potential to boost economic development within rural areas. Accordingly, a rural flexibility analysis is not required and one has not been prepared.

Job Impact Statement

1. NATURE OF IMPACT: The Commission has determined that these rules will not have a substantial adverse impact on jobs and employment opportunities. To the contrary, these rules are intended to create thousands of well-paying jobs.

2. CATEGORIES AND NUMBERS AFFECTED: It is anticipated that up to 4 gaming facilities, as contemplated by Racing, Pari-Mutual Wagering and Breeding Law Article 13, would employ more than 4,000 people. In addition, the construction of the gaming facilities will generate many new jobs. It is anticipated that employment in the surrounding communities will also increase to service the influx of gaming facility patrons.

3. REGIONS OF ADVERSE IMPACT: The Commission does not anticipate regions of the state to suffer a disproportionate adverse impact in regards to jobs or employment opportunities.

4. MINIMIZING ADVERSE IMPACT: These rules do not create any unnecessary adverse impact on existing jobs. A positive impact on jobs and employment is anticipated.