SGC-35-15-00001-P Video Lottery Gaming Facility Closing Hours
9/2/15 N.Y. St. Reg. SGC-35-15-00001-P
NEW YORK STATE REGISTER
VOLUME XXXVII, ISSUE 35
September 02, 2015
RULE MAKING ACTIVITIES
NEW YORK STATE GAMING COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. SGC-35-15-00001-P
Video Lottery Gaming Facility Closing Hours
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of section 5118.9 of Title 9 NYCRR.
Statutory authority:
Tax Law, section 1617-a(b); and Racing, Pari-Mutuel Wagering and Breeding Law, sections 103(2) and 104(1) and (19)
Subject:
Video lottery gaming facility closing hours.
Purpose:
To remove the 4:00 a.m. restriction, which is now superseded by new subdivision (b) of section 1617-a of the Tax Law.
Text of proposed rule:
Section 5118.9 of 9 NYCRR is amended to read as follows:
§ 5118.9. Hours of Operation.
The hours of operation of video lottery gaming at all licensed video lottery gaming facility locations shall be 20 consecutive hours per day, unless otherwise approved by the commission in writing after [a 60-day written application is made by the] a video gaming agent applies for an exception at least 60 days in advance of a proposed change. In no event shall video lottery gaming be conducted past [4:00 a.m.] the time set forth in subdivision b of Section 1617-a of the Tax Law. Public access to the video lottery gaming floor must be restricted at all times video lottery gaming is not in operation. The failure of the video lottery gaming agent to comply with the hours of operation set forth in this [Part] section shall be a violation of these regulations.
Text of proposed rule and any required statements and analyses may be obtained from:
Kristen Buckley, New York State Gaming Commission, One Broadway Center, P.O. Box 7500, Schenectady, NY 12301, (518) 388-3407, email: gamingrules@gaming.ny.gov
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: The New York State Gaming Commission (“Commission”) is authorized to promulgate this rule by Tax Law Sections 1601 and 1604, and by Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) Sections 103(2) and 104(1, 19).
Tax Law Section 1601 describes the purpose of the New York State Lottery for Education Law (Tax Law Article 34) as being to establish a lottery operated by the State, the net proceeds of which are applied exclusively to aid to education. Tax Law Section 1604 authorizes the promulgation of rules governing the establishment and operation of such lottery.
Racing Law Section 103(2) provides that the Commission is responsible to operate and administer the state lottery for education, as prescribed by Article 34 of the Tax Law. Racing Law Section 104(1) provides the Commission with general jurisdiction over all gaming activities within the State and over any person, corporation or association engaged in such activities. Section 104(19) of such law authorizes the Commission to promulgate any rules it deems necessary to carry out its responsibilities.
2. Legislative objectives: To establish hours of operation for facilities that operate video lottery terminals (VLTs). This rulemaking supports the mandate of establishing a state lottery, the net proceeds of which are to be applied exclusively for the purpose of providing aid to pupils with special educational needs and pupils with handicapping conditions, and supplemental aid to all school children.
3. Needs and benefits: This rulemaking is necessary to amend the Commission’s VLT regulations to conform with Section 1617-a of the Tax Law, which was amended on July 22, 2014 in regards to hours of operation. Subdivision (b) of Section 1617-a of the Tax Law was amended to read that “Video lottery gaming shall only be permitted for no more than twenty consecutive hours per day and on no day shall such operation be conducted past 6:00 a.m.” Previously, VLT operations could not be conducted past 4:00 a.m. Expanded hours of VLT operations will increase lottery revenues which are applied to special education needs and supplemental aid for general education.
The rule amendment will not explicitly state that VLT hours of operation may be conducted until 6:00 a.m. The rule references the statute [Tax Law 1617-a(b)], which specifically states the hours of operation.
4. Costs:
a. Costs to regulated parties for the implementation and continuing compliance with the rule: There are no costs to the VLT facility operators. The rule does not expand the 20-hour period of operation. It allows the VLT to move the hours of operation to conclude at 6:00 a.m. It is a permissive rule and does not mandate the VLT facility operator to remain open until 6:00 a.m.
b. Costs to the agency, the State, and local governments for the implementation and continuation of the rule: No additional operating costs are anticipated. The costs of state monitoring of gaming operations are provided by the facility operator. The state inspectors will still provide coverage for no more than 20 hours a day per facility.
c. Sources of cost evaluations: The Commission evaluated the impact of the new rule.
5. Local government mandates: The proposed amendment does not impose any new programs, services, duties or responsibilities upon any country, city, town, village school district, fire district or other special district.
6. Paperwork: There are no changes in paperwork requirements.
7. Duplication: There are no relevant State programs or regulations that duplicate, overlap or conflict with the proposed amendment.
8. Alternatives: No other alternative was considered because this rulemaking is intended to amend the Commission rules to comply with statutory amendments.
9. Federal standards: The proposed amendment does not exceed any minimum standards imposed by the federal government.
10. Compliance schedule: VLT facilities have already established new hours of operation as authorized by the Tax Law amendment, so they are already in compliance with the proposed rule.
Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
A regulatory flexibility analysis for small business and local governments, a rural area flexibility analysis, and a job impact statement are not required for this rule making because it will have no adverse effect on small businesses, local governments, rural areas, or jobs.
The rule making is necessary to conform Commission rules to recently-enacted legislation allowing later closing hours in video lottery facilities. This addition will impose no significant technological changes. No local government activity is involved. There will be no new reporting, record keeping or other compliance requirements on small businesses or local governments or rural areas. The revision will not adversely affect employment opportunities or jobs.
Based on the foregoing, no regulatory flexibility analysis for small businesses and local governments, rural area flexibility analysis, or a job impact statement is required for this proposed rulemaking.
