PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of section 5603.11 of Title 9 NYCRR.
Statutory authority:
General Municipal Law, section 188-a
Subject:
Jurisdiction of Licenses.
Purpose:
Allows municipalities to issue licenses for the conduct of games of chance to organizations domiciled outside its jurisdiction.
Text of proposed rule:
Section 5603.11 of 9 NYCRR is amended to read as follows:
(a) The municipal governing body shall, prior to the issuance of any license, make a finding that the applicant organization is domiciled within the territorial limits of the municipality and shall not issue a license to an organization domiciled beyond such territorial limits. A municipal governing body may, upon a finding that an applicant organization is domiciled beyond the territorial limits of such municipality, issue a license to such applicant organization only in cases where:
(1) the governing body of the municipality in which the applicant organization is seeking licensure and the board determine that, due to some condition of hardship or necessity, the conduct of games of chance in the municipality in which the applicant organization is seeking licensure is warranted;
(2) the municipality in which the applicant authorized organization is seeking licensure submits to the board a Letter of Consent expressing its willingness to license the applicant authorized organization;
(3) the premises for which the authorized organization is seeking its license to conduct games of chance is within the territorial limits of the municipality wherein licensure is being sought and such premises is that of a an authorized organization or an authorized games of chance lessor; and
(4) the board has issued the applicant authorized organization a games of chance identification number bearing the municipal code of the licensing municipality.
Text of proposed rule and any required statements and analyses may be obtained from:
Stacy Harvey, Assistant Counsel, Racing and Wagering Board, 1 Broadway Center, Suite 600, Schenectady, NY 12305, (518) 395-5400, email: sharvey@racing.state.ny.us
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: Section 188-a of the General Municipal Law grants the Board power and makes it a duty to adopt, amend and repeal rules and regulations governing the issuance and amendment of licenses for games of chance, thereunder, and the conduct of games of chance, to be fairly and properly conducted in the manner prescribed by the Games of Chance Licensing Law.
Additionally, Section 187 of the General Municipal Law grants to every municipality, the right, power and authority to authorize the conduct of games of chance by authorized organizations within the territorial limits of such municipality. Section 188 of the General Municipal Law provides that it shall be lawful for any authorized organization upon obtaining a license from a municipality that has authorized the conduct games of chance by local law or ordinance, to conduct games of chance within the territorial limits of such municipality, subject to the provisions of local law or ordinance, the provisions of the Games of Chance Licensing Law, and the provisions set forth by the Racing and Wagering Board.
2. Legislative intent: Section 185 of the General Municipal Law states that "the legislature hereby declares that the raising of funds for the promotion of bona fide charitable, educational, scientific, health, religious, and patriotic causes and undertakings, where the beneficiaries are undetermined, is in the public interest". Consistent with this declaration, the Board has proposed rules to ensure that games of chance are fairly and properly conducted and that the proceeds derived from such games for worthy causes, be maximized.
3. Needs and benefits: This rule amendment is necessary in order for the Board to implement regulations that would allow municipalities to issue licenses to authorized organizations domiciled beyond its territorial limits to conduct games of chance within the licensing municipality's limits, due to a hardship or exigent circumstance preventing the authorized organization from conducting games of chance in its own municipality. In 2004, the Board amended bingo rule 5812.9 and outlined similar procedures in accordance with a decades old policy directive followed by the Board. Since most authorized organizations that conduct bingo in a municipality other than their own, also conduct games of chance such as raffles and bell jar games during their bingo occasions in order to increase much needed proceeds, an amendment to the games of chance rule, mirroring the procedures contained in bingo rule 5812.9 is required.
4. Costs:
a. Costs to regulated parties for the implementation of and continuing compliance with the rule: There are no added costs to regulated parties for the implementation and continuing compliance with the rule.
b. Costs to the agency, the state and local governments for the implementation and continuation of the rule: The New York State Racing and Wagering Board will have the same oversight responsibilities that it previously had for games of chance. With the increased oversight and licensure, some local governments could see more revenue because of the license fees authorized organizations are already required to pay in order to obtain licensure.
c. The information, including the source of such information and the methodology upon which the cost analysis is based: Cost analysis is based upon a review by the Office of the Counsel of the New York State Racing and Wagering Board.
5. Local government mandates: The proposed rule will not impose any mandates on local governments since municipalities will have the option of issuing or denying an application for licensure to an authorized organization domiciled beyond its territorial limits.
6. Paperwork: None.
7. Duplication: None.
8. Alternatives: None.
9. Federal standards: None.
10. Compliance schedule: Once adopted, the rule can be implemented immediately upon publication in the State Register.
Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
This proposal does not require a Regulatory Flexibility Statement, Rural Area Flexibility Statement or Job Impact Statement as is apparent from the nature of the amendment, which authorizes the conduct of games of chance for authorized organizations that would otherwise be unable to raise funds in the municipality within which they are domiciled. Consequently, the rule does not negatively affect small businesses, local governments, jobs nor rural areas. Further, this proposal will not impose an adverse economic impact on reporting, record keeping or other compliance requirements on small businesses in rural or urban areas nor on employment opportunities. Due to the straightforward nature of the rulemaking, there is no need for the development of a small business regulation guide to assist in compliance. These provisions are clear as to how a municipality will go about licensing authorized organizations domiciled beyond the municipality’s territorial limits to conduct games of chance.
