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Rule Pertaining to the Minimum Capital Investment for a Gaming Facility License That Must be Pa...

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5/28/14 N.Y. St. Reg. GFB-21-14-00009-EP

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 21

May 28, 2014

RULE MAKING ACTIVITIES

NEW YORK GAMING FACILITY LOCATION BOARD

EMERGENCY/PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

I.D No. GFB-21-14-00009-EP

Filing No. 399

Filing Date. May. 13, 2014

Effective Date. May. 13, 2014

Rule Pertaining to the Minimum Capital Investment for a Gaming Facility License That Must be Part of a Request for Application

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:

Proposed Action:

Addition of Part 602 to Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutuel Wagering and Breeding Law, sections 1306(5), 1306(9) and 1315(1)

Finding of necessity for emergency rule:

Preservation of general welfare.

Specific reasons underlying the finding of necessity:

The New York State Gaming Facility Location Board (the “Board”) has determined that immediate adoption of this rule is necessary for the preservation of the general welfare. On March 31, 2014, the Board, which was established by the New York State Gaming Commission, issued a Request for Applications (“RFA”) for applicants seeking a license to develop and operate a gaming facility in New York State pursuant to the Upstate New York Gaming Economic Development Act of 2013, as amended by Chapter 175 of the Laws of 2013 (the “Act”). The Act authorizes four upstate destination gaming resorts to enhance economic development in Upstate New York. The immediate adoption of this rule is necessary to prescribe the minimum investment information for applicants considering whether or not to submit an application in response to the RFA, which is due to the Board by June 30, 2014. Standard rule making procedures would prevent the Board from commencing the fulfillment of its statutory duties.

Subject:

Rule pertaining to the minimum capital investment for a gaming facility license that must be part of a request for application.

Purpose:

To facilitate a fair and transparent process for applying for a license to operate a gaming facility.

Text of emergency/proposed rule:

Subtitle R of Title 9, Executive, of the NYCRR is amended to add a new Part 602 as follows:

PART 602

CAPITAL INVESTMENT

§ 602.1. Gaming Facility Minimum Capital Investment.

The minimum capital investment for a gaming facility by zone and region shall be:

(a) In Zone Two, Region One (Counties of Columbia, Delaware, Dutchess, Greene, Orange, Sullivan and Ulster), as such zone and region are defined in section 1310 of the Racing, Pari-Mutuel Wagering and Breeding Law:

(1) $350,000,000 for a gaming facility in Dutchess or Orange Counties;

(2) $130,000,000 for a gaming facility in Columbia, Delaware, Greene, Sullivan or Ulster Counties, if no license is awarded for a gaming facility located in Dutchess or Orange Counties; and

(3) $100,000,000 for a gaming facility in Columbia, Delaware, Greene, Sullivan or Ulster Counties, if a license is awarded for a gaming facility located in Dutchess or Orange Counties.

(b) $135,000,000 in Zone Two, Region Two (Counties of Albany, Fulton, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie and Washington), as such zone and region are defined in section 1310 of the Racing, Pari-Mutuel Wagering and Breeding Law.

(c) In Zone Two, Region Five (Counties of Broome, Chemung (east of State Route 14), Schuyler (east of State Route 14), Seneca, Tioga, Tompkins, and Wayne (east of State Route 14)), as such zone and region are defined in section 1310 of the Racing, Pari-Mutuel Wagering and Breeding Law, the following fees will apply to counties as designated below:

(1) $85,000,000 for a gaming facility in Broome, Chemung, Schuyler, Tioga or Tompkins Counties;

(2) $135,000,000 for a gaming facility in Wayne or Seneca Counties; and

(3) $70,000,000 for a gaming facility in Broome, Chemung, Schuyler, Tioga or Tompkins Counties, if a license is awarded for a gaming facility located in Wayne or Seneca Counties.

This notice is intended:

to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire August 10, 2014.

Text of rule and any required statements and analyses may be obtained from:

Heather McArn, New York State Gaming Commission, 1 Broadway Center, PO Box 7500, Schenectady, New York 12301-7500, (518) 388-3408, email: [email protected]

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: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 1306(5) and section 1315(1) prescribe that the Gaming Facility Location Board, which is established by the Commission, shall establish the minimum capital investment for an applicant seeking a license to develop and operate a gaming facility in New York State. Racing Law 1306(9) authorizes the Board to promulgate any rules and regulations that it deems necessary to carry out its responsibilities.

2. LEGISLATIVE OBJECTIVES: This rule making carries out the legislative objectives of the above referenced statutes by implementing the requirements of Racing Law section 1306(5) and section 1315(1).

3. NEEDS AND BENEFITS: This rule making is necessary to enable the Gaming Facility Location Board to carry out its statutory duty to prescribe the minimum capital investment for a gaming facility. The Gaming Facility Location Board released the request for applications (“RFA”) on March 31, 2014, and applicants are expected to submit completed applications by June 30, 2014. Promulgation of this rule will provide applicants with the capital investment requirements prior to the application deadline.

4. COSTS:

(a) Costs to the regulated parties for the implementation of and continuing compliance with the rule: Those parties who choose to seek a gaming facility license will bear some costs, including the application fee, the fee for the gaming facility license and the capital investment necessary to construct and operate a gaming facility.

(b) Costs to the regulating agency, the State, and local government: The rule will impose some costs on the Board to review gaming facility license applications and to conduct hearings, where necessary. The Board will rely on Gaming Commission staff to assist in these matters and the costs to the Gaming Commission are expected to be defrayed by the license fee and the $1 million application fee that each applicant will pay as required by Racing Law section 1316(8). The rule will not impose any additional costs on local government.

(c) The information, including the source or sources of such information, and methodology upon which the cost analysis is based: The cost estimates are based on the Gaming Commission’s experience regulating racing and gaming activities within the State.

5. PAPERWORK: The rule is not expected to impose any significant paperwork requirements for gaming facility applicants and licensees.

6. LOCAL GOVERNMENT: The rule does not impose any mandatory program, service, duty, or responsibility upon local government because the licensing of gaming facilities is strictly a matter of State law.

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

8. ALTERNATIVES: The Board is required to create this rule under Racing Law sections 1306(5) and 1315(1). Therefore, no alternatives were considered.

9. FEDERAL STANDARDS: There are no federal standards applicable to the licensing of gaming facilities in New York because such licensing is solely in accordance with New York State law.

10. COMPLIANCE SCHEDULE: The Board anticipates that affected parties will be able to achieve compliance with the rule upon adoption of the rule, which will occur upon filing.

Regulatory Flexibility Analysis

1. EFFECT OF THE RULE: The rule will not affect small businesses or local governments because the rule prescribes the minimum capital investment for a gaming facility. It is not expected that any small business or local government will apply for a gaming facility license.

2. COMPLIANCE REQUIREMENTS: The rule will not impose any compliance requirements on small business or local governments.

3. PROFESSIONAL SERVICES: The rule will not require small businesses or local governments to obtain professional services.

4. COMPLIANCE COSTS: The rule will not impose any compliance costs on small businesses or local governments.

5. ECONOMIC AND TECHNOLOGICAL FEASIBILITY: The rule will not impose any technological requirements on small businesses or local governments.

6. MINIMIZING ADVERSE IMPACT: The rule will not have an adverse economic impact on small businesses or local governments.

7. SMALL BUSINESS AND LOCAL GOVERNMENT PARTICIPATION: This rule is adopted on an emergency basis and is incorporated in the Request for Applications issued on March 31, 2014 by the Gaming Facility Location Board established by the Commission. Therefore, the rule goes into effect upon filing.

Rural Area Flexibility Analysis

A rural flexibility analysis is not attached because the rule does not impose any adverse impact or reporting, recordkeeping, or other compliance requirements on public or private entities in rural areas. The rule applies uniformly throughout the State to any applicant seeking a license to develop and operate a gaming facility in New York State.

Job Impact Statement

The Board has no reason to believe that this rule will have any adverse impact on any jobs or employment opportunities. The rule prescribes the minimum capital investment for a gaming facility. It is anticipated that the opening of up to four gaming facilities in upstate New York will create new job opportunities. Therefore, the rule will not impact jobs and employment and a full Job Impact Statement is not necessary.

End of Document