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Section 5315.3 of 9 NYCRR would be repealed.

1. STATUTORY AUTHORITY: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 103 authorizes the Gaming Commission (“Commission”) to carry out responsibilities relating to the regulation and enforcement of gaming and 104(19) grants authority to the Commission to promulgate rules and regulations that it deems necessary to carry out its responsibilities. Racing Law section 1307(2) grants rule making authority to the Commission to implement, administer and enforce the provisions of Racing Law Article 13.

Racing Law section 1348 prescribes annual slot machine and table game license fees.

Racing Law section 1349 prescribes regulatory investigative fees.

Racing Law section 1350 prescribes additional regulatory costs.

Racing Law section 1351 prescribes gaming revenue tax and permissive supplement fee.

Racing Law section 1352 establishes the commercial gaming revenue fund.

Racing Law section 1353 sets forth the determination of tax liability and procedures for appealing such determination.

Racing Law section 1354 prescribes accounting treatment for unclaimed funds.

2. LEGISLATIVE OBJECTIVES: This rule making carries out the legislative objectives of the above-referenced statutes. The Commission, through this rule making, sets the calculation method for casino fees and costs and prescribes methods of submission for such payments from gaming facilities to the Commission.

3. NEEDS AND BENEFITS: This rule making is necessary to establish submission of fees and payments procedures from the gaming facility licensees to the Commission, thereby enabling the Commission to implement Article 13 of the Racing Law and help New York State to capitalize on the economic development potential of legalized gambling and increase revenue to the State.

The proposed Part addresses procedures for the annual license fees for machines and tables, procedures in regard to transmitting payments to the Commission, rules for overdue payments, rules for regulatory investigative fees and costs, rules for regulatory cost assessment and procedures for distribution of taxes to counties. A section of the current accounting controls rules would be repealed, with the substance of such section incorporated as section 5302.3 of Part 5302.

4. COSTS:

(a) Costs to the regulated parties for the implementation of and continuing compliance with these rules: All payments and fees will be borne by the gaming facility licensees. The rules prescribe methods for the submission of fees and payments required under Article 13 of the Racing, Pari-Mutuel Wagering and Breeding Law and do not impose any new costs.

(b) Costs to the regulating agency, the State, and local governments for the implementation of and continued administration of the rule: The rules will impose some costs on the Commission for reviewing the submission of fees and payments, however it is anticipated that these costs are minimal. The rules will not impose any additional costs on local governments.

(c) The information, including the source or sources of such information, and methodology upon which the cost estimate is based: The costs associated with the review of submission of fees and payments will be based on the Commission’s administrative cost to process each submission.

5. LOCAL GOVERNMENT MANDATES: These rules do not impose any mandatory program, service, duty, or responsibility upon local government because the licensing and registration of gaming facility employees and vendors is strictly a matter of State law and completed by the Commission.

6. PAPERWORK: These rules are not expected to impose any significant paperwork requirements for gaming facility employee and vendor applicants.

7. DUPLICATION: The rules do not duplicate, overlap or conflict with any existing State or federal requirements.

8. ALTERNATIVES: The Commission is required to create these rules under Racing Law section 1307(2) and sections 1348, 1349, 1350, 1351, 1352, 1353 and 1354. Therefore, no alternatives were considered.

9. FEDERAL STANDARDS: There are no federal standards applicable to the submission of casino fees and payments. It is purely a matter of New York State law.

10. COMPLIANCE SCHEDULE: The Commission anticipates that affected parties will be able to achieve compliance with these rules upon adoption.

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 proposal because it will not adversely affect small businesses, local governments, rural areas or jobs.

The proposal formalizes the Commission’s calculation of casino fees and payments and prescribes the method of submission of those fees and payments.

This rule will not impose an adverse economic impact or reporting, record keeping or other compliance requirements on small businesses in rural or urban areas or on employment opportunities. No local government activities are involved.