S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7925

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 10, 2013
                               ___________

Introduced  by  M.  of  A. PRETLOW -- (at request of the Division of the
  Lottery) -- read once and referred to  the  Committee  on  Racing  and
  Wagering

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law and
  the tax law, in relation to the operation of the gaming commission

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  3  of section 107 of the racing, pari-mutuel
wagering and breeding law, as added by section 1 of part A of chapter 60
of the laws of 2012, is amended to read as follows:
  3. (A) No member, officer or employee of the commission OR THE  OFFICE
OF RACING PROMOTION AND DEVELOPMENT shall wager upon OR CLAIM A PRIZE IN
gaming or horse racing activity conducted within the state.
  (B)  NO MEMBER, OFFICER OR EMPLOYEE OF ANY OTHER AGENCY, AS DEFINED IN
SECTION ONE HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT, SHALL
WAGER UPON OR CLAIM A PRIZE IN GAMING OR HORSE RACING ACTIVITY CONDUCTED
WITHIN THE STATE IF THE DUTIES  OF  SUCH  MEMBER,  OFFICER  OR  EMPLOYEE
DIRECTLY RELATE TO THE OPERATION OF ANY GAMING ACTIVITY CONDUCTED WITHIN
THE STATE. FOR THE PURPOSES OF THIS PARAGRAPH, DUTIES DIRECTLY RELATE TO
THE  OPERATION  OF  ANY  GAMING  ACTIVITY  IF SUCH DUTIES CONSIST OF (I)
MAKING A DECISION, OR ADVISING OR RECOMMENDING A DECISION, ON THE MANNER
OR METHOD OF OPERATING A GAMING ACTIVITY IN ORDER TO ASSURE THE  ACCURA-
CY,  SAFETY, FAIRNESS, CREDIBILITY OR INTEGRITY OF SUCH GAMING ACTIVITY,
OR (II) INVENTING, CREATING, DESIGNING, REVISING, REPLACING, REGULATING,
OVERSEEING,  LICENSING,  PERMITTING,  CERTIFYING,  WITNESSING,  JUDGING,
OFFICIATING,  SUPERVISING,  MANAGING, CONDUCTING, OR ASSISTING IN GAMING
ACTIVITY OR IN ANY PROCEDURE RELIED UPON TO DETERMINE THE OUTCOME OF ANY
GAMING ACTIVITY ACCORDING TO THE MANNER OR METHOD PRESCRIBED THEREFOR.
  (C) NO SPOUSE, CHILD, BROTHER, SISTER, PARENT OR OTHER PERSON RESIDING
AS A MEMBER OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY
OF THE PERSONS LISTED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION  SHALL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09300-02-3
              

A. 7925                             2

WAGER UPON OR CLAIM A PRIZE IN GAMING OR HORSE RACING ACTIVITY CONDUCTED
WITHIN THE STATE.
  S  2.  Section 1610 of the tax law, as added by chapter 92 of the laws
of 1976, is amended to read as follows:
  S 1610. Sales to certain persons prohibited. [a.] No ticket  shall  be
sold  to  any person under the age of eighteen years, but this shall not
be deemed to prohibit the purchase of a ticket for the purpose of making
a gift by a person eighteen years of age or older to a person less  than
that  age.  Any  licensee  or  the employee or agent of any licensee who
sells or offers to sell a lottery ticket to any person under the age  of
eighteen shall be guilty of a misdemeanor.
  [b.  No  ticket  shall be sold to and no prize shall be paid to any of
the following persons:
  (i) any member, officer or employee of the division; or
  (ii) any member, officer or employee of the department of taxation and
finance whose duties directly relate  to  the  operation  of  the  state
lottery; or
  (iii)  any  spouse,  child,  brother,  sister  or parent residing as a
member of the same household in the principal place of abode of  any  of
the foregoing persons.]
  S 3. Subdivision 14 of section 104 of the racing, pari-mutuel wagering
and  breeding  law, as added by section 1 of part A of chapter 60 of the
laws of 2012, is amended to read as follows:
  14. (A) To [access the criminal history records of]  TRANSMIT  FINGER-
PRINTS  AND  THE APPLICABLE FEE IN THE FORM AND MANNER PRESCRIBED BY the
division of criminal justice services, pursuant to  subdivision  eight-a
of   section  eight  hundred  thirty-seven  of  the  executive  law,  in
connection with executing the responsibilities of the commission  relat-
ing  to  the  regulation,  oversight,  licensing,  permitting or certif-
ication, including fingerprinting, criminal history  record  checks  and
background  investigations,  of (I) persons applying to engage in gaming
activities, (II) ANY PERSONS APPLYING FOR EMPLOYMENT  WITH  THE  COMMIS-
SION,  AND (III) ANY PERSONS APPLYING FOR EMPLOYMENT WITH THE COMMISSION
WHO ARE NEW YORK STATE EMPLOYEES SEEKING TRANSFER TO THE  COMMISSION  OR
WHO ARE ON A PREFERRED OR ELIGIBLE LIST, NOTWITHSTANDING ANY LIMITATIONS
ON  CONDUCTING  CRIMINAL HISTORY RECORD CHECKS ON SUCH PERSONS CONTAINED
IN SUBDIVISION FOUR OF SECTION FIFTY OF THE CIVIL SERVICE LAW AND SUBDI-
VISION EIGHT-A OF SECTION EIGHT HUNDRED THIRTY-SEVEN  OF  THE  EXECUTIVE
LAW.  At the request of the commission, the division of criminal justice
services shall submit [a fingerprint card] SUCH FINGERPRINTS, along with
the  subject's processing fee, to the federal bureau of investigation OR
ANY OTHER STATE OR  FEDERAL  GOVERNMENT  AGENCY  HAVING  FACILITIES  FOR
CHECKING  FINGERPRINTS FOR PURPOSES OF DETERMINING WHETHER OR NOT CRIMI-
NAL CHARGES ARE PENDING AGAINST THE APPLICANT  OR  WHETHER  OR  NOT  THE
APPLICANT  HAD  PREVIOUSLY BEEN CONVICTED OF A CRIME, for the purpose of
conducting a NATIONAL criminal history search  and  returning  a  report
thereon  AND  THE  DIVISION  OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY
REPORT A FINDING OF SUCH CHARGES AND PREVIOUS CONVICTIONS,  IF  ANY,  TO
THE  COMMISSION  IN  WRITING  OR BY ELECTRONIC MEANS OR ANY OTHER METHOD
AGREED UPON BY THE COMMISSION AND SUCH AGENCY. The commission shall also
be entitled to request and receive, pursuant to a written memorandum  of
understanding filed with the department of state, any information in the
possession  of  the state attorney general relating to the investigation
of organized  crime,  gaming  offenses,  other  revenue  crimes  or  tax
evasion.  Provided however, the attorney general may withhold any infor-
mation that (a) would identify a confidential source or disclose  confi-

A. 7925                             3

dential  information  relating  to  a  criminal investigation, (b) would
interfere with law enforcement investigations or  judicial  proceedings,
(c)  reveal  criminal  investigative  techniques or procedures, that, if
disclosed,  could  endanger  the  life  or  safety of any person, or (d)
constitutes records received from other state, local or federal agencies
that the attorney general is prohibited by law, regulation or  agreement
from disclosing.
  (B)  NOTWITHSTANDING THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFI-
CERS LAW OR ANY OTHER LAW TO THE CONTRARY, THE COMMISSION  MAY  WITHHOLD
FROM PUBLIC DISCLOSURE ANY CRIMINAL HISTORY INFORMATION.
  (C)  FOR  PURPOSES OF THIS SUBDIVISION, A PERSON APPLYING TO ENGAGE IN
GAMING ACTIVITIES MAY INCLUDE:  ANY PERSON OR ENTITY  THAT  IS  APPLYING
FOR A LICENSE ISSUED PURSUANT TO THIS ARTICLE, INCLUDING BUT NOT LIMITED
TO:  A  LOTTERY  SALES  AGENT; A VIDEO LOTTERY GAMING AGENT; A VENDOR; A
VENDOR'S SUBCONTRACTOR; AN EMPLOYEE OF  AN  AGENT;  VENDOR  OR  VENDOR'S
SUBCONTRACTOR;  AN  OFFICER,  DIRECTOR,  PARTNER, TRUSTEE OR OWNER OF AN
AGENT; VENDOR OR VENDOR'S SUBCONTRACTOR; A HORSE OWNER,  WHICH  INCLUDES
PART  OWNERS;  LESSEES;  TRAINERS;  ASSISTANT  TRAINERS; JOCKEYS; JOCKEY
AGENTS; STABLE EMPLOYEES; DRIVERS; AND SUCH OTHER PARTICIPANTS IN  HORSE
RACING  OR  PARI-MUTUEL  WAGERING  ACTIVITIES  AS  THE  COMMISSION SHALL
PRESCRIBE BY RULE.
  S 4. Subdivision e of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:
  e. The division is hereby authorized  to  obtain  criminal  background
information  on  any  applicant for, or holder of, a lottery license for
the  purpose  of  determining  whether  a  license  should  be  granted,
suspended,  or  revoked.  [The  sources  of such information include the
license applicant or holder, the division of criminal justice  services,
and  any  licensing  agency  which  is currently considering a licensing
application or which has been granted a presently-held  license  to  the
same  license  applicant  or  holder.  The  division  shall require each
license applicant to submit identifying information which shall  include
fingerprints  unless they are already on file with the division or other
state  agencies.  The  fingerprints  so  obtained  shall  be   forthwith
forwarded, and the applicable fee transmitted, to the division of crimi-
nal  justice  services  or  any other state or federal government agency
having facilities for checking fingerprints for the purpose of determin-
ing whether or not criminal charges are pending against the applicant or
whether or not the applicant had previously been convicted of  a  crime,
and  such agency shall promptly report a finding of such pending charges
and previous convictions, if any, to the division in writing or by elec-
tronic means or any other method agreed upon by the  division  and  such
agency. Prior to or upon making a determination not to approve an appli-
cation  for a lottery license based upon an applicant's criminal history
record, the division shall provide such applicant with a copy of article
twenty-three-A of the correction law, and inform such applicant  of  his
or  her  right to seek correction of any incorrect information contained
in such record pursuant to regulations and procedures established by the
division of criminal justice services. In its discretion,  the  division
may  decline  to  act  on any application pending the disposition of any
pending charges against the applicant.  The division may, after  provid-
ing notice and an opportunity for a hearing pursuant to the state admin-
istrative  procedure  act,  deny  a  license to any person found to have
committed a felony under the laws of the United States or under the laws
of the state of New York or any other state or foreign  jurisdiction  or
any  crime  relating  to gaming activities or that is otherwise found to

A. 7925                             4

have engaged in conduct which would be prejudicial to public  confidence
in  the  state  lottery.  All  determinations to grant or deny a license
pursuant to this section shall be in accordance with subdivision sixteen
of section two hundred ninety-six of the executive law and article twen-
ty-three-A  of  the  correction  law.  Notwithstanding the provisions of
article six of the public officers law or any other law to the contrary,
the division may withhold from public disclosure  any  criminal  history
information  except  that criminal convictions may not be withheld under
this provision.
  For purposes of this article, a licensee may include: a lottery  sales
agent; a video lottery gaming agent; a vendor; a vendor's subcontractor;
an  employee  of an agent, vendor or vendor's subcontractor; or an offi-
cer, director, partner, trustee or owner of an agent, vendor or vendor's
subcontractor.]
  S 5.  This act shall take effect immediately;  provided  however  that
sections  one and two of this act shall take effect on the thirtieth day
after it shall have become a law and sections one and two  of  this  act
shall  not  apply  to  a  prize claimed after such effective date if the
wager upon which the prize was  won  was  lawfully  placed  before  such
effective date.