Relates to licenses issued by the division of the lottery.

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S5760-2011 Actions

• Jul 20, 2011: SIGNED CHAP.217
• Jul 8, 2011: DELIVERED TO GOVERNOR
• Jun 17, 2011: returned to senate
• Jun 17, 2011: passed assembly
• Jun 17, 2011: ordered to third reading rules cal.448
• Jun 17, 2011: substituted for a8245a
• Jun 17, 2011: referred to ways and means
• Jun 17, 2011: DELIVERED TO ASSEMBLY
• Jun 17, 2011: PASSED SENATE
• Jun 17, 2011: ORDERED TO THIRD READING CAL.1361
• Jun 14, 2011: REFERRED TO RULES

S5760-2011 Meetings

Rules: Jun 17, 2011

S5760-2011 Calendars

Floor Calendar: Jun 17, 2011

S5760-2011 Votes

S5760-2011 Memo

BILL NUMBER:S5760

TITLE OF BILL:

An act
to amend the tax law, in relation to licenses issued by the division of
the lottery

PURPOSE:

This bill would clarify the Division of the Lottery's (the "Lottery")
authority to obtain national criminal background search results for
applicants and holders of licenses issued by the Lottery, including
employees of Video Lottery Gaming ("VLG") agents.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Tax Law � 1605 to clarify Lottery's
authority to obtain national criminal background search results for
applicants or holders of VLG licenses issued pursuant to Tax Law
1617-a, including VLG agents; vendors; vendors' subcontractors;
employees of agents, vendors or subcontractors; and officers,
directors, partners, trustees or owners of agents, vendors or
vendors' subcontractors.

Section 2 provides for an immediate effective date.

EXISTING LAW:

Tax Law � 1605 specifically authorizes the Lottery to obtain state and
national criminal background search results for applicants or holders
of Lottery sales agent licenses. Tax Law � 16l7-a authorizes the
Lottery to license the operation of VLG.

JUSTIFICATION:

This bill amends Tax Law �1605 to clarify the Lottery's authority to
obtain national criminal background search results for applicants or
holders of VLG licenses. When Tax Law � l6l7-a was enacted and
authorized the Lottery to license the operation of VLG facilities,
related provisions of the Tax Law should have been amended to include
VLG licenses and licensees. Recently, the Federal Bureau of
Investigations ("FBI") questioned this apparent ambiguity in the law.

Pursuant to federal law, the FBI is authorized to exchange criminal
history records with officials of state and local governments for
purposes of employment and licensing, if authorized by state statute
and approved by the FBI. The FBI, with the assistance of the United
States
Department of Justice, has determined that state statutes must meet
certain criteria in order to authorize such access. As the result of
discussions with the Division of Criminal Justice Services and the
FBI, it was determined that this proposed amendment to Tax Law � 1605
would sufficiently clarify the Lottery's authority to continue
obtaining national criminal background search results which are used
to verify the backgrounds of persons employed in positions that can


present a risk to public safety and public finances, such as agents,
employees and vendors at VLG facilities operated under the authority
of the Lottery.

LEGISLATIVE HISTORY:

This is a new bill.

BUDGET IMPLICATIONS:

This bill has no fiscal impact on the state.

EFFECTIVE DATE:

This bill would take effect immediately.

S5760-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    5760

                         2011-2012 Regular Sessions

                              I N  SENATE

                                June 14, 2011
                                 ___________

  Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
    printed to be committed to the Committee on Rules

  AN ACT to amend the tax law, in relation to licenses issued by the divi-
    sion of the lottery

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  The  section  heading and subdivisions a and e of section
  1605 of the tax law, the section heading and subdivision a as  added  by
  chapter 92 of the laws of 1976 and subdivision e as amended by chapter 2
  of the laws of 1995, are amended to read as follows:

    Lottery sales agents AND OTHER LICENSEES.  a. The division may license
  as  agents  to  sell lottery tickets such persons as in its opinion will
  best serve public convenience, except that no license shall be issued to
  any person to engage in business exclusively as a lottery  sales  agent.
  THE  DIVISION MAY LICENSE SUCH PERSONS AS IN ITS OPINION ARE SUITABLE TO
  PARTICIPATE IN VIDEO LOTTERY GAMING PURSUANT TO SECTION SIXTEEN  HUNDRED
  SEVENTEEN-A OF THIS ARTICLE.
    e.  The  division  is  hereby authorized to obtain criminal background
  information on any applicant for, or holder of, a lottery [sales  agent]
  license  for  the  purpose  of  determining  whether a license should be
  granted, suspended, or revoked. The sources of such information  include
  the  license  applicant  or  holder,  the  division  of criminal justice
  services, and any licensing agency  which  is  currently  considering  a
  licensing application or which has been granted a presently-held license
  to the same license applicant or holder. The division shall require each
  license  applicant to submit identifying information which shall include
  fingerprints unless they are already on file with the division or  other
  state   agencies.  The  fingerprints  so  obtained  shall  be  forthwith
  forwarded, and the applicable fee transmitted, to the division of crimi-
  nal justice services or any other state  or  federal  government  agency
  having facilities for checking fingerprints for the purpose of determin-

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD11975-04-1

 S. 5760                             2

  ing whether or not criminal charges are pending against the applicant or
  whether  or  not the applicant had previously been convicted of a crime,
  and such agency shall promptly report a finding of such pending  charges
  and previous convictions, if any, to the division in writing or by elec-
  tronic  means  or  any other method agreed upon by the division and such
  agency.   PRIOR TO OR UPON MAKING A  DETERMINATION  NOT  TO  APPROVE  AN
  APPLICATION  FOR  A  LOTTERY  LICENSE BASED UPON AN APPLICANT'S CRIMINAL
  HISTORY RECORD, THE DIVISION SHALL PROVIDE SUCH APPLICANT WITH A COPY OF
  ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW, AND INFORM SUCH  APPLICANT
  OF  HIS  OR  HER  RIGHT  TO SEEK CORRECTION OF ANY INCORRECT INFORMATION
  CONTAINED IN SUCH RECORD PURSUANT TO REGULATIONS AND  PROCEDURES  ESTAB-
  LISHED  BY THE DIVISION OF CRIMINAL JUSTICE SERVICES. In its discretion,
  the division may decline to act on any application pending the  disposi-
  tion  of  any  pending  charges against the applicant. The division may,
  after providing notice and an opportunity for a hearing pursuant to  the
  state  administrative  procedure act, deny a license to any person found
  to have committed a felony under the laws of the United States or  under
  the  laws  of the state of New York or any other state or foreign juris-
  diction or any crime relating to gaming activities or that is  otherwise
  found  to  have  engaged in conduct which would be prejudicial to public
  confidence in the state lottery.  ALL DETERMINATIONS TO GRANT OR DENY  A
  LICENSE PURSUANT TO THIS SECTION SHALL BE IN ACCORDANCE WITH SUBDIVISION
  SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
  CLE TWENTY-THREE-A OF THE CORRECTION LAW. Notwithstanding the provisions
  of  article  six  of  the  public  officers  law or any other law to the
  contrary, the division may withhold from public disclosure any  criminal
  history information except that criminal convictions may not be withheld
  under this provision.
    FOR  PURPOSES OF THIS ARTICLE, A LICENSEE MAY INCLUDE: A LOTTERY SALES
  AGENT; A VIDEO LOTTERY GAMING AGENT; A VENDOR; A VENDOR'S SUBCONTRACTOR;
  AN EMPLOYEE OF AN AGENT, VENDOR OR VENDOR'S SUBCONTRACTOR; OR  AN  OFFI-
  CER, DIRECTOR, PARTNER, TRUSTEE OR OWNER OF AN AGENT, VENDOR OR VENDOR'S
  SUBCONTRACTOR.
    S 2. This act shall take effect immediately.