This regulatory impact statement, regulatory flexibility analysis, rural area flexibility analysis and/or job impact statement pertain(s) to a notice of Emergency rule making, I.D. No. SGC-15-14-00001-E, printed in the State Register on April 16, 2014.

1. STATUTORY AUTHORITY: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 104(19) to promulgate rules and regulations that it deems necessary to carry out its responsibilities. Racing Law section 1305(2) grants rule making authority to the Commission to implement, administer and enforce the provisions of Racing Law Article 13.

Racing Law section 1306(1) and section 1312(1) prescribe that the Gaming Facility Location Board, which is established by the Commission, shall issue a request for applications (“RFA”) for applicants seeking a license to develop and operate gaming facilities in New York State. On March 31, 2014, the Gaming Facility Location Board issued the RFA.

Racing Law section 1307(2) prescribes that the Commission regulate, among other things, the method and form of the application; the methods, procedures and form for delivery of information concerning an applicant’s family, habits, character, associates, criminal record, business activities, and financial affairs; and the procedures for the fingerprinting of an applicant.

2. LEGISLATIVE OBJECTIVES: This emergency rule making carries out the legislative objectives of the above-referenced statutes by implementing the requirements of Racing Law section 1307(2).

3. NEEDS AND BENEFITS: This emergency rule making is necessary to enable the Gaming Facility Location Board to carry out its statutory duty of issuing the RFA for applicants seeking a license to develop and operate a gaming facility in New York State.

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. There is an application fee of $1 million that is prescribed by Racing Law section 1316(8) to defray the costs of processing the application and investigating the applicant. The extent of other costs incurred by applicants will depend upon the efforts that they put into completing and submitting the application.

(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 Gaming Commission in reviewing gaming facility applications and in issuing licenses, but it is anticipated that the $1 million application fee paid by each applicant will offset such costs. 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 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 rules set forth the content of the application for a gaming facility license. The requirements apply only to those parties that choose to seek a gaming facility license.

6. LOCAL GOVERNMENT: The rules do 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 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). 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 Commission anticipates that affected parties will be able to achieve compliance with the rules upon the adoption of the rules, which occurred on March 31, 2014.

1. EFFECT OF THE RULE: The rules will not affect small businesses or local governments because the rules apply only to an applicant seeking a license to develop and operate a gaming facility in New York State. It is not expected that any small business or local government will apply for a gaming facility license. The rules prescribe the method and form of the application; the methods, procedures and form for delivery of information concerning an applicant’s family, habits, character, associates, criminal record, business activities, and financial affairs; and the procedures for fingerprinting an applicant.

2. COMPLIANCE REQUIREMENTS: The rules will not impose any compliance requirements on small business or local governments. One condition of filing an application, however, is that an applicant submit a resolution passed by the local legislative body of the host municipality supporting the application.

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

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

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

6. MINIMIZING ADVERSE IMPACT: The rules will not have an adverse economic impact on small businesses or local governments because the rules apply only to an applicant seeking a license to develop and operate a gaming facility in New York State.

7. SMALL BUSINESS AND LOCAL GOVERNMENT PARTICIPATION: The rules were adopted on an emergency basis and were applied to the Request for Applications issued on March 31, 2014 by the Gaming Facility Location Board established by the Commission. Therefore, the rules went into effect upon filing.

A Rural Area Flexibility Analysis is not attached because the rules do not impose any adverse impact or reporting, recordkeeping, or other compliance requirements on public or private entities in rural areas. The rules apply only to an applicant seeking a license to develop and operate a gaming facility in New York State.

The rules will not adversely impact jobs and employment opportunities because the rules apply only to an applicant seeking a license to develop and operate a gaming facility in New York State. It is anticipated that the opening of up to four gaming facilities in upstate New York will create new job opportunities. The Commission has no reason to believe that these rules will have any adverse impact on any jobs or employment opportunities and a full Job Impact Statement is not necessary.