S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    384
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, the economic development law and the  state
   finance  law,  in  relation  to  providing a production tax credit for
   electronic sporting events; and providing for the  repeal  of  certain
   provisions upon expiration thereof

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new section 45-a to read
 as follows:
   § 45-A. ELECTRONIC SPORTING EVENT PRODUCTION CREDIT.  (A) ALLOWANCE OF
 CREDIT. (1) A TAXPAYER THAT IS SUBJECT TO TAX UNDER  ARTICLE  NINE-A  OR
 TWENTY-TWO  OF  THIS  CHAPTER  THAT  IS  A  PRODUCTION ENTITY ENGAGED IN
 PRODUCTION OF ELECTRONIC SPORTING EVENTS, OR WHO IS A SOLE PROPRIETOR OF
 OR A MEMBER OF A PARTNERSHIP, THAT  IS  A  QUALIFIED  PRODUCTION  ENTITY
 ENGAGED  IN  PRODUCTION  OF  ELECTRONIC  SPORTING EVENTS, THAT INCURS AT
 LEAST TWO HUNDRED FIFTY THOUSAND DOLLARS OF QUALIFIED  PRODUCTION  COSTS
 WITH  RESPECT  TO  AN  ELECTRONIC  SPORTS PRODUCTION, SHALL BE ALLOWED A
 CREDIT AGAINST SUCH TAX TO BE COMPUTED AS PROVIDED  HEREIN  FOR  TAXABLE
 YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR AND
 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-NINE.
   (2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO  RATA  SHARE
 OF THE PRODUCT, IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNER-
 SHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAP-
 TER  S  CORPORATION) OF TWENTY-FIVE PERCENT AND THE QUALIFIED PRODUCTION
 COSTS OF ONE OR MORE ELECTRONIC SPORTING EVENTS. SUCH  CREDIT  SHALL  BE
 COMPUTED BASED ON ALL OF THE PRODUCTION COSTS INCURRED WITH RESPECT TO A
 COMPLETED  ELECTRONIC  SPORTING  EVENT, REGARDLESS OF WHETHER SUCH COSTS
 WERE INCURRED PRIOR TO THE TAXABLE YEAR IN WHICH THE ELECTRONIC SPORTING
 EVENT IS COMPLETED. WITH RESPECT  TO  AN  ELECTRONIC  SPORTS  TELEVISION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00351-01-3
 A. 384                              2
              

 
 SERIES, THE ENTIRE SEASON OF EPISODES OF SUCH SERIES SHALL BE CONSIDERED
 ONE EVENT.
   (3)  THE  AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED
 TWENTY MILLION DOLLARS WITH  RESPECT  TO  ANY  ONE  ELECTRONIC  SPORTING
 EVENT.
   (B) DEFINITIONS. AS USED IN THIS SECTION:
   (1)  "ELECTRONIC  SPORTING EVENT" OR "ESPORTS EVENT" MEANS A SCHEDULED
 FORM OF  ORGANIZED  MULTIPLAYER  VIDEO  GAME  COMPETITION,  PARTICULARLY
 BETWEEN  PROFESSIONAL PLAYERS, INDIVIDUALLY OR AS TEAMS, ORGANIZED BY AN
 AMATEUR, COLLEGIATE, OR PROFESSIONAL ORGANIZATION, INSTITUTION, OR ASSO-
 CIATION FOR LIVE OR  TAPE-DELAYED  BROADCAST.  ESPORTS  EVENT  DOES  NOT
 INCLUDE: (I) NEWS OR CURRENT AFFAIRS PROGRAM, INTERVIEW OR TALK PROGRAM,
 NETWORK PROMOS, I.E., COMMERCIALS PROMOTING TELEVISION SERIES OR MOVIES,
 "HOW-TO"  (I.E.,  INSTRUCTIONAL)  COMMERCIAL  OR  PROGRAM, COMMERCIAL OR
 PROGRAM CONSISTING ENTIRELY OF STOCK FOOTAGE, TRAILERS PROMOTING  THEAT-
 RICAL  FILMS, SPORTING EVENT OR SPORTING PROGRAM, GAME SHOW, AWARD CERE-
 MONY, DAYTIME DRAMA (I.E., DAYTIME "SOAP OPERA"), OR "REALITY"  PROGRAM,
 OR  (II)  A PRODUCTION FOR WHICH RECORDS ARE REQUIRED UNDER SECTION 2257
 OF TITLE 18, UNITED STATES CODE, TO BE MAINTAINED WITH  RESPECT  TO  ANY
 PERFORMER IN SUCH PRODUCTION (REPORTING OF BOOKS, COMMERCIALS, ETC. WITH
 RESPECT TO SEXUALLY EXPLICIT CONDUCT).
   (2)  "PRODUCTION COSTS" MEANS ANY COSTS INCURRED FOR PROPERTY USED AND
 SERVICES PERFORMED DIRECTLY AND PREDOMINANTLY IN THE  PRODUCTION  OF  AN
 ESPORTS  EVENT  IN  NEW  YORK, INCLUDING BUT NOT LIMITED TO ANY WAGES OR
 SALARIES REQUIRED TO BE WITHHELD BY THE PRODUCTION COMPANY  PURSUANT  TO
 SECTION  SIX  HUNDRED  SEVENTY-ONE OF THIS CHAPTER AND ANY OTHER COMPEN-
 SATION PAID TO AN EMPLOYEE OR CONTRACTOR OF THE PRODUCTION  COMPANY  FOR
 WORK  PERFORMED  IN NEW YORK, INCLUDING ANY PER DIEM, STIPEND, OR LIVING
 ALLOWANCE; THE COSTS OF ANY PERMITS, LICENSES  AND  INSURANCE  NECESSARY
 FOR  THE  PRODUCTION  OF  THE  ESPORTS EVENT; THE COST OF ANY RENTALS OR
 LEASES OF EQUIPMENT OR FACILITIES NECESSARY FOR THE  PRODUCTION  OF  THE
 ESPORTS  EVENT;  AND  SIMILAR EXPENSES PAID OR INCURRED IN THE COURSE OF
 THE PRODUCTION, PROVIDED THAT WITH RESPECT TO ANY TANGIBLE PROPERTY WITH
 A PURCHASE PRICE OF TWENTY-FIVE THOUSAND DOLLARS OR MORE, THE AMOUNT  TO
 BE  INCLUDED  SHALL BE THE PURCHASE PRICE OF SUCH PROPERTY LESS THE FAIR
 MARKET VALUE OF SUCH PROPERTY ON THE DATE THE PRODUCTION  IS  COMPLETED.
 PRODUCTION COSTS SHALL NOT INCLUDE COMPENSATION IN EXCESS OF ONE MILLION
 DOLLARS  PAID  TO  ANY ONE SPECIFIC INDIVIDUAL. SALARIES OR OTHER INCOME
 DISTRIBUTION RELATED TO PRODUCTION OF AN ESPORTS EVENT  FOR  ANY  PERSON
 WHO SERVES IN THE ROLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFI-
 CER,  PRESIDENT,  TREASURER OR SIMILAR POSITION SHALL NOT BE INCLUDED IF
 THE PRODUCTION ENTITY HAS MORE THAN TEN  EMPLOYEES.  SALARIES  OR  OTHER
 INCOME  TO  A  PERSON  SERVING  IN SUCH A ROLE FOR THE PRODUCTION ENTITY
 SHALL ALSO NOT BE INCLUDED IF THE  PERSON  WAS  EMPLOYED  BY  A  RELATED
 PERSON  OF  THE  PRODUCTION  ENTITY  WITHIN SIXTY MONTHS OF THE DATE THE
 PRODUCTION ENTITY APPLIED FOR THE TAX CREDIT  CERTIFICATE  DESCRIBED  IN
 SUBDIVISION (C) OF THIS SECTION. FOR PURPOSES OF THE PRECEDING SENTENCE,
 A  RELATED  PERSON  SHALL  HAVE  THE  SAME  MEANING AS THE TERM "RELATED
 PERSON" IN SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE.
 UP TO TWENTY MILLION DOLLARS IN PRODUCTION COSTS PER PRODUCTION SHALL BE
 USED IN THE CALCULATION OF  THIS  CREDIT.  PRODUCTION  COSTS  SHALL  NOT
 INCLUDE  THOSE  COSTS  USED  BY  THE TAXPAYER OR ANOTHER TAXPAYER AS THE
 BASIS CALCULATION OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER.
   (3) "QUALIFIED PRODUCTION COSTS" MEANS PRODUCTION COSTS  ONLY  TO  THE
 EXTENT  SUCH  COSTS  ARE  ATTRIBUTABLE  TO  THE  USE  OF PROPERTY OR THE
 PERFORMANCE OF SERVICES BY ANY PERSONS WITHIN  THE  STATE  DIRECTLY  AND
 A. 384                              3
 
 PREDOMINANTLY  IN  THE  PRODUCTION  OF  AN  ESPORTS  EVENT.  SUCH  TOTAL
 PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE  EQUAL  TO  OR
 EXCEED  SEVENTY-FIVE  PERCENT  OF  TOTAL  COST OF AN ELIGIBLE PRODUCTION
 INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
   (4)  "PRODUCTION  ENTITY"  MEANS  A  CORPORATION, PARTNERSHIP, LIMITED
 PARTNERSHIP OR OTHER ENTITY OR INDIVIDUAL ENGAGED IN THE  PRODUCTION  OF
 ESPORTS EVENTS.
   (5)  "VIDEO  GAME" MEANS ELECTRONIC OR COMPUTERIZED GAME SOFTWARE THAT
 USERS MANIPULATE THROUGH INTERACTIVE DEVICES TO  GENERATE  IMAGES  ON  A
 DISPLAY SCREEN.
   (C)  TO  BE  ELIGIBLE  FOR THE ESPORTS PRODUCTION CREDIT, THE TAXPAYER
 SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX CREDIT BY THE DEPARTMENT  OF
 ECONOMIC  DEVELOPMENT,  WHICH  CERTIFICATE SHALL SET FORTH THE AMOUNT OF
 THE CREDIT THAT MAY BE CLAIMED AND THE TAXABLE YEAR IN WHICH IT SHALL BE
 CLAIMED. THE TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE  AMOUNT  LISTED
 ON  THE  CERTIFICATE  OF  TAX  CREDIT FOR THAT TAXABLE YEAR. IN ORDER TO
 PROPERLY ADMINISTER THIS CREDIT, THE  DEPARTMENT  SHALL  BE  ALLOWED  TO
 EXCHANGE  INFORMATION  WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT ABOUT
 THE TAXPAYERS CLAIMING THIS CREDIT, INCLUDING INFORMATION ABOUT THE  TAX
 CREDITS  CLAIMED.  A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER
 OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER  S  CORPO-
 RATION  THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE ALLOWED
 ITS PRO RATA SHARE OF THE CREDIT  EARNED  BY  THE  PARTNERSHIP,  LIMITED
 LIABILITY  COMPANY OR SUBCHAPTER S CORPORATION. THE TAXPAYER SHALL CLAIM
 THE TAX CREDIT IN THE TAXABLE YEAR THAT BEGINS IN THE YEAR FOR WHICH  IT
 IS ALLOCATED CREDIT UNDER THIS SECTION.
   (D)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1)  ARTICLE  NINE-A:   SECTION   TWO   HUNDRED   TEN-B,   SUBDIVISION
 FIFTY-FIVE-A.
   (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
 GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLX).
   (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (OOO).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 55-a to read as follows:
   55-A. ELECTRONIC SPORTING EVENT PRODUCTION CREDIT.  (A)  ALLOWANCE  OF
 CREDIT.  A  TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FIVE-A OF
 THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN
 SUCH SECTION FORTY-FIVE-A AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
 YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED  AS  AN
 OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
 HOWEVER, NO INTEREST SHALL BE PAID THEREON.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by  adding a new clause (xlx) to read as
 follows:
 
 (XLX) ELECTRONIC SPORTING          AMOUNT OF CREDIT UNDER
 EVENT PRODUCTION CREDIT            SUBDIVISION FIFTY-FIVE-A OF
 UNDER SUBSECTION (OOO)             SECTION TWO HUNDRED TEN-B
 A. 384                              4
 
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (ooo) to read as follows:
   (OOO)  ELECTRONIC  SPORTING  EVENT PRODUCTION CREDIT. (1) ALLOWANCE OF
 CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION  FORTY-FIVE-A  OF
 THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
 SUCH SECTION FORTY-FIVE-A AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (3) WITH REGARD TO CERTIFICATES OF TAX CREDIT ISSUED, THE COMMISSIONER
 OF  ECONOMIC  DEVELOPMENT  SHALL  REDUCE  BY ONE-HALF OF ONE PERCENT THE
 AMOUNT OF CREDIT ALLOWED TO A TAXPAYER AND THIS REDUCED AMOUNT SHALL  BE
 REPORTED  ON A CERTIFICATE OF TAX CREDIT ISSUED PURSUANT TO THIS SECTION
 AND THE REGULATIONS PROMULGATED BY THE COMMISSIONER OF ECONOMIC DEVELOP-
 MENT TO IMPLEMENT THIS CREDIT PROGRAM.
   (4) BY JANUARY THIRTY-FIRST OF EACH YEAR, THE COMMISSIONER OF ECONOMIC
 DEVELOPMENT SHALL REPORT TO THE COMPTROLLER THE  TOTAL  AMOUNT  OF  SUCH
 REDUCTIONS OF TAX CREDIT DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR.
 ON  OR  BEFORE  MARCH  THIRTY-FIRST  OF EACH YEAR, THE COMPTROLLER SHALL
 TRANSFER WITHOUT APPROPRIATIONS FROM THE GENERAL  FUND  TO  THE  ESPORTS
 TRAINING  AND  DEVELOPMENT  FUND ESTABLISHED UNDER SECTION NINETY-SEVEN-
 BBBBB OF THE STATE FINANCE LAW AN AMOUNT EQUAL TO THE  TOTAL  AMOUNT  OF
 SUCH REDUCTIONS REPORTED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT FOR
 THE IMMEDIATELY PRECEDING CALENDAR YEAR.
   §  5.  The economic development law is amended by adding a new section
 242-a to read as follows:
   § 242-A. REPORTS ON ELECTRONIC SPORTING EVENTS IN  NEW  YORK.  1.  THE
 EMPIRE  STATE  DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A BIANNUAL
 BASIS WITH THE DIRECTOR OF THE DIVISION OF THE  BUDGET  AND  THE  CHAIR-
 PERSONS  OF  THE  ASSEMBLY  WAYS  AND MEANS COMMITTEE AND SENATE FINANCE
 COMMITTEE. THE REPORT SHALL BE FILED NO LATER THAN  THIRTY  DAYS  BEFORE
 THE  MID-POINT  AND  THE  END OF THE STATE FISCAL YEAR. THE FIRST REPORT
 SHALL COVER THE CALENDAR HALF YEAR THAT BEGINS  ON  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-FIVE. EACH REPORT MUST CONTAIN THE FOLLOWING INFORMATION
 FOR THE COVERED CALENDAR HALF YEAR:
   (A)  THE  TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED PURSUANT TO SECTION
 FORTY-FIVE-A OF THE TAX LAW DURING THE HALF YEAR, BROKEN DOWN BY MONTH;
   (B) THE NUMBER OF ESPORTS EVENTS, WHICH HAVE BEEN ALLOCATED TAX  CRED-
 ITS  OF  LESS  THAN  ONE MILLION DOLLARS PER EVENT, AND THE TOTAL DOLLAR
 AMOUNT OF CREDITS ALLOCATED TO THOSE EVENTS;
   (C) THE NUMBER OF ESPORTS EVENTS, WHICH HAVE BEEN ALLOCATED TAX  CRED-
 ITS  OF  MORE  THAN  ONE MILLION DOLLARS, AND THE TOTAL DOLLAR AMOUNT OF
 CREDITS ALLOCATED TO THOSE EVENTS;
   (D) A LIST OF EACH ELIGIBLE ESPORTS PRODUCTION ENTITY, WHICH HAS  BEEN
 ALLOCATED  A  TAX  CREDIT ENUMERATED PURSUANT TO SECTION FORTY-FIVE-A OF
 THE TAX LAW, AND FOR EACH OF THOSE PRODUCTIONS, (I) THE ESTIMATED NUMBER
 OF EMPLOYEES ASSOCIATED WITH THE PRODUCTION, (II) THE ESTIMATED QUALIFY-
 ING COSTS FOR THE PRODUCTION, (III) THE ESTIMATED  TOTAL  COSTS  OF  THE
 PRODUCTION, (IV) THE CREDIT ELIGIBLE EMPLOYEE HOURS FOR EACH PRODUCTION,
 AND  (V)  TOTAL  WAGES  FOR SUCH CREDIT ELIGIBLE EMPLOYEE HOURS FOR EACH
 PRODUCTION; AND
   (E) (I) THE NAME OF EACH TAXPAYER ALLOCATED  A  TAX  CREDIT  FOR  EACH
 PROJECT  AND  THE  COUNTY OF RESIDENCE OR INCORPORATION OF SUCH TAXPAYER
 OR, IF THE TAXPAYER DOES NOT RESIDE OR IS NOT INCORPORATED IN NEW  YORK,
 A. 384                              5
 
 THE STATE OF RESIDENCE OR INCORPORATION; HOWEVER, IF THE TAXPAYER CLAIMS
 A  TAX  CREDIT  BECAUSE  THE TAXPAYER IS A MEMBER OF A LIMITED LIABILITY
 COMPANY, A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER IN A  SUBCHAPTER  S
 CORPORATION,  THE NAME OF EACH LIMITED LIABILITY COMPANY, PARTNERSHIP OR
 SUBCHAPTER S CORPORATION EARNING  ANY  OF  THOSE  TAX  CREDITS  MUST  BE
 INCLUDED  IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER CLAIM-
 ING THE TAX CREDIT, (II) THE AMOUNT OF  TAX  CREDIT  ALLOCATED  TO  EACH
 TAXPAYER;  PROVIDED HOWEVER, IF THE TAXPAYER CLAIMS A TAX CREDIT BECAUSE
 THE TAXPAYER IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN  A
 PARTNERSHIP  OR  A SHAREHOLDER IN A SUBCHAPTER S CORPORATION, THE AMOUNT
 OF TAX CREDIT EARNED BY EACH ENTITY  MUST  BE  INCLUDED  IN  THE  REPORT
 INSTEAD  OF  INFORMATION ABOUT THE TAXPAYER CLAIMING THE TAX CREDIT, AND
 (III) INFORMATION IDENTIFYING THE PROJECT ASSOCIATED WITH EACH  TAXPAYER
 FOR WHICH A TAX CREDIT WAS CLAIMED UNDER SECTION FORTY-FIVE-A OF THE TAX
 LAW.
   2.  THE  EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A
 TRIENNIAL BASIS WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND  THE
 CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
 COMMITTEE.  THE  FIRST  REPORT SHALL BE FILED NO LATER THAN MARCH FIRST,
 TWO THOUSAND TWENTY-SIX. THE REPORT MUST BE PREPARED BY  AN  INDEPENDENT
 THIRD  PARTY  AUDITOR AND INCLUDE: (A) INFORMATION REGARDING THE ESPORTS
 PRODUCTION CREDIT PROGRAM INCLUDING THE EFFICIENCY OF OPERATIONS,  RELI-
 ABILITY OF FINANCIAL REPORTING, COMPLIANCE WITH LAWS AND REGULATIONS AND
 DISTRIBUTION  OF ASSETS AND FUNDS; (B) AN ECONOMIC IMPACT STUDY PREPARED
 BY AN INDEPENDENT THIRD PARTY OF THE PROGRAM WITH  SPECIAL  EMPHASIS  ON
 THE  REGIONAL  IMPACT  BY  REGION AND THE TOTAL DOLLAR AMOUNT OF CREDITS
 ALLOCATED TO THOSE PROJECTS DISTRIBUTED BY REGION PURSUANT  TO  SUBDIVI-
 SION  (B)  OF  SECTION  FORTY-FIVE-A  OF  THE TAX LAW; AND (C) ANY OTHER
 INFORMATION OR STATISTICAL INFORMATION THAT THE COMMISSIONER OF ECONOMIC
 DEVELOPMENT DEEMS TO BE USEFUL IN ANALYZING THE EFFECTS OF THE PROGRAMS.
   § 6. The state finance law is amended by adding a new section 97-bbbbb
 to read as follows:
   § 97-BBBBB. ELECTRONIC SPORTS TRAINING AND DEVELOPMENT FUND. 1.  THERE
 IS  HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXA-
 TION AND FINANCE AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS  THE
 ELECTRONIC SPORTS TRAINING AND DEVELOPMENT FUND OR THE "ESPORTS TRAINING
 AND DEVELOPMENT FUND".
   2. SUCH FUND SHALL CONSIST OF THE FUNDS TRANSFERRED BY THE COMPTROLLER
 TO  THE  FUND FROM THE GENERAL FUND WITHOUT APPROPRIATION, AS DETERMINED
 UNDER SUBSECTION (OOO) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.  NOTH-
 ING  CONTAINED  HEREIN  SHALL  PREVENT  THE STATE FROM RECEIVING GRANTS,
 GIFTS, OR BEQUESTS FOR THE  FUND  AND  DEPOSITING  THEM  INTO  THE  FUND
 ACCORDING TO LAW.
   3.  MONIES  IN  THE  FUND  SHALL BE EXPENDED ONLY FOR JOB CREATION AND
 TRAINING PROGRAMS APPROVED BY THE COMMISSIONER OF  ECONOMIC  DEVELOPMENT
 THAT  SUPPORT  EFFORTS  TO  RECRUIT,  HIRE, PROMOTE, RETAIN, DEVELOP AND
 TRAIN A DIVERSE AND INCLUSIVE WORKFORCE AS PRODUCTION COMPANY  EMPLOYEES
 IN  THE  ELECTRONIC SPORTING EVENT INDUSTRY WITHIN THE STATE OF NEW YORK
 INCLUDING, BUT NOT LIMITED TO, THOSE PROGRAMS THAT  PROMOTE  DEVELOPMENT
 IN  ECONOMICALLY  DISTRESSED  AREAS  OF  THE  STATE. THE COMMISSIONER OF
 ECONOMIC DEVELOPMENT SHALL PROMULGATE REGULATIONS THAT SET  FORTH  RELE-
 VANT  DEFINITIONS,  MINIMUM  STANDARDS,  AND  CRITERIA FOR SUCH FUND AND
 ELIGIBLE TRAINING PROGRAMS.
   4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF ECONOMIC DEVELOPMENT.
 A. 384                              6
 
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on January 1, 2024 and before January 1, 2030;  provided
 that  sections  one  through four of this act shall expire and be deemed
 repealed December 31, 2029.