What's happening
This bill requires New York gaming facilities to fully disclose detailed financial information and submit to independent audits before receiving tax reductions or public assistance.
Why it matters
Increases public transparency. by requiring detailed disclosures of all major payments—to executives, contractors, investors, and board members—before a gaming facility can receive tax breaks or public benefits, allowing citizens and local governments to see who is financially benefiting from these operations.
Mandates independent oversight. , as gaming facilities must submit to reviews by an independent financial monitor, whose reports (including findings on internal controls and business practices) will be made publicly available—helping to prevent fraud, self-dealing, or mismanagement.
Links public support to workforce protection and community benefit. by ensuring that any assistance to gaming facilities is justified as necessary for protecting jobs and supporting local municipalities, rather than simply enriching owners, investors, or affiliates.
Improves accountability for public resources. by requiring that all financial records, quarterly reports, annual audits, and monitor findings are open to public inspection, making it easier for the public and policymakers to judge whether gaming facilities truly need taxpayer support.
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Who cares
- Watching
Gaming facility operators seeking tax relief or public assistance
They would have to disclose financial records and payments, release required reports and audits for public inspection, and pay for an independent financial monitor selected by the gaming commission.
- Watching
New York State Gaming Commission
The commission would receive the disclosures, make them available for public review and select a monitor to examine each participating facility’s finances, practices and legal compliance.
- Watching
Gaming facility employees
The monitor would track hiring and notify the commission whenever staffing falls below 95 percent of the facility’s workforce on the provision’s effective date.
Casino executives, contractors, investors and affiliated companies
Specified payments to these parties and financing arrangements would become subject to public disclosure when a facility seeks tax relief or other public assistance.
Headline styles
Require Casino Tax Transparency
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to racing and wagering
- Referred to racing and wagering
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5992
2019-2020 Regular Sessions
IN ASSEMBLY
February 26, 2019
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to disclosing certain information prior to qualifying for any reduction in taxation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The legislature hereby finds and declares that the intent of the upstate New York gaming economic development act of 2013 was to aid the economic development of upstate New York by increasing employment opportunities and investment into these host communities. The legislature further finds that public resources ought not be used to assist gaming facilities. Any assistance to gaming facilities must be conditioned on full financial disclosure and an independent audit of the gaming facilities in order to show how this assistance would be necessary to benefit and protect the workforce of the gaming facilities and the host municipality and nearby municipalities of each gaming facility. Any assistance shall prevent self-dealing by the officers and shareholders of the gaming facility and shall not be utilized to unduly benefit or enrich the officers, shareholders, investors, and lenders of any gaming facility, its holding company, intermediary companies, subsidiaries, or affiliates.
§ 2. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding 3 new subdivisions 2, 3 and 4 to read as follows:
2. Before being eligible to apply for and qualify for any reduction in taxes under subdivision one of this section, or any other public assistance or benefits, a gaming facility shall disclose the following information to the commission:
(a) the names and payments made to all casino key employees in excess of one hundred thousand dollars for calendar year two thousand seventeen to present;
(b) the names and payments made to all independent contractors in excess of one hundred thousand dollars for calendar year two thousand seventeen to present;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09978-01-9
A. 5992 2
(c) all payments in excess of one hundred thousand dollars to investors, casino vendor enterprises, junket enterprises, close associates, and affiliates for calendar year two thousand seventeen to present;
(d) all payments in calendar year two thousand seventeen to present made to the board of directors, or to the board of directors of its holding company, intermediary companies, subsidiaries, affiliates or close associates; and
(e) all contractual arrangements for debt and encumbrances entered into by the gaming facility, its holding company, close associates, intermediary companies, subsidiaries or affiliates which provide financing for the construction, repair, maintenance and operation of the gaming facility.
Notwithstanding any law to the contrary, all disclosures made to the commission pursuant to paragraphs (a), (b), (c), (d) and (e) of this subdivision shall be made fully available by the commission for public review and inspection.
3. Before being eligible to apply for and qualify for any reduction in taxes under subdivision one of this section, or any other public assistance or benefits, a gaming facility shall further disclose and make available to the commission all quarterly financial reports and the annual audit required to be filed, pursuant to paragraph (o) of subdivision two of section thirteen hundred seven of this article for the twelve months prior to the effective date of this subdivision. Notwithstanding any law to the contrary, such reports and audits shall be made fully available by the commission for public review and inspection.
4. Before being eligible to apply for and qualify for any reduction in taxes under subdivision one of this section, or any other public assistance or benefits, the gaming facility shall agree to the appointment of an independent financial monitor selected by the gaming commission. The monitor's salary and expenses shall be paid by the gaming facility. The monitor shall have access to all the financial records of the gaming facility and shall report its findings to the commission. Notwithstanding any laws to the contrary, the reports of the monitor shall be made fully available for public review and inspection. The monitor's duties shall terminate on February first, two thousand twenty-one. The monitor shall have the following duties:
(a) issue biannual reports commencing with a report at the conclusion of the two thousand nineteen calendar year;
(b) publish in such reports the information required by subdivision two of this section for calendar years two thousand nineteen and two thousand twenty;
(c) report on any material weakness in accounting, internal controls, and business and management practices at the gaming facility;
(d) review and make recommendations concerning the gaming facility's operating revenues and the establishment of a financial plan;
(e) review such gaming facility's overall compliance with the laws, rules and regulations applicable to its activities;
(f) monitor the hiring of gaming employees at the gaming facility; the monitor shall notify the commission any time that the number of gaming employees is lower than ninety-five percent of the number that were on staff at the gaming facility on the effective date of this subdivision; and
(g) evaluate the overall financial position of the gaming facility.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.