N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1326: Licensing of vendor enterprises

§ 1326. Licensing of vendor enterprises. 1. Any business to be

conducted with a gaming facility applicant or licensee by a vendor

offering goods or services which directly relate to gaming activity,

including gaming equipment manufacturers, suppliers, repairers, and

independent testing laboratories, shall be licensed as a casino vendor

enterprise in accordance with the provisions of this article prior to

conducting any business whatsoever with a gaming facility applicant or

licensee, its employees or agents; provided, however, that upon a

showing of good cause by a gaming facility applicant or licensee, the

executive director may permit an applicant for a casino vendor

enterprise license to conduct business transactions with such gaming

facility applicant or licensee prior to the licensure of that casino

vendor enterprise applicant under this subdivision for such periods as

the commission may establish by regulation.

2. In addition to the requirements of subdivision one of this section,

any casino vendor enterprise intending to manufacture, sell, distribute,

test or repair slot machines within the state shall be licensed in

accordance with the provisions of this article prior to engaging in any

such activities; provided, however, that upon a showing of good cause by

a gaming facility applicant or licensee, the executive director may

permit an applicant for a casino vendor enterprise license to conduct

business transactions with the gaming facility applicant or licensee

prior to the licensure of that casino vendor enterprise applicant under

this subdivision for such periods as the commission may establish by

regulation; and provided further, however, that upon a showing of good

cause by an applicant required to be licensed as a casino vendor

enterprise pursuant to this subdivision, the executive director may

permit the casino vendor enterprise applicant to initiate the

manufacture of slot machines or engage in the sale, distribution,

testing or repair of slot machines with any person other than a gaming

facility applicant or licensee, its employees or agents, prior to the

licensure of that casino vendor enterprise applicant under this

subdivision.

3. Vendors providing goods and services to gaming facility licensees

or applicants ancillary to gaming shall be required to be licensed as an

ancillary casino vendor enterprise and shall comply with the standards

for casino vendor license applicants.

4. Each casino vendor enterprise required to be licensed pursuant to

subdivision one of this section, as well as its owners; management and

supervisory personnel; and employees if such employees have

responsibility for services to a gaming facility applicant or licensee,

must qualify under the standards, except residency, established for

qualification of a casino key employee under this article.

5. Any vendor that offers goods or services to a gaming facility

applicant or licensee that is not included in subdivision one or two of

this section including, but not limited to site contractors and

subcontractors, shopkeepers located within the facility, gaming schools

that possess slot machines for the purpose of instruction, and any

non-supervisory employee of a junket enterprise licensed under

subdivision three of this section, shall be required to register with

the commission in accordance with the regulations promulgated under this

article.

Notwithstanding the provisions aforementioned, the executive director

may, consistent with the public interest and the policies of this

article, direct that individual vendors registered pursuant to this

subdivision be required to apply for either a casino vendor enterprise

license pursuant to subdivision one of this section, or an ancillary

vendor industry enterprise license pursuant to subdivision three of this

section, as directed by the commission. The executive director may also

order that any enterprise licensed as or required to be licensed as an

ancillary casino vendor enterprise pursuant to subdivision three of this

section be required to apply for a casino vendor enterprise license

pursuant to subdivision one of this section. The executive director may

also, in his or her discretion, order that an independent software

contractor not otherwise required to be registered be either registered

as a vendor pursuant to this subdivision or be licensed pursuant to

either subdivision one or three of this section.

Each ancillary casino vendor enterprise required to be licensed

pursuant to subdivision three of this section, as well as its owners,

management and supervisory personnel, and employees if such employees

have responsibility for services to a gaming facility applicant or

licensee, shall establish their good character, honesty and integrity by

clear and convincing evidence and shall provide such financial

information as may be required by the commission. Any enterprise

required to be licensed as an ancillary casino vendor enterprise

pursuant to this section shall be permitted to transact business with a

gaming facility licensee upon filing of the appropriate vendor

registration form and application for such licensure.

6. Any applicant, licensee or qualifier of a casino vendor enterprise

license or of an ancillary casino vendor enterprise license under

subdivision one of this section, and any vendor registrant under

subdivision five of this section shall be disqualified in accordance

with the criteria contained in section one thousand three hundred

eighteen of this article, except that no such ancillary casino vendor

enterprise license under subdivision three of this section or vendor

registration under subdivision five of this section shall be denied or

revoked if such vendor registrant can affirmatively demonstrate

rehabilitation pursuant to article twenty-three-A of the correction law.

7. No casino vendor enterprise license or ancillary casino vendor

enterprise license shall be issued pursuant to subdivision one of this

section to any person unless that person shall provide proof of valid

business registration with the department of state.

8. For the purposes of this section, each applicant shall submit to

the commission the name, address, fingerprints and a written consent for

a criminal history information to be performed, for each person required

to qualify as part of the application. The commission is hereby

authorized to exchange fingerprint data with and receive criminal

history record information from the state division of criminal justice

services and the federal bureau of investigation consistent with

applicable state and federal laws, rules and regulations. The applicant

shall pay the fee for such criminal history information as established

pursuant to article thirty-five of the executive law. The state division

of criminal justice services shall promptly notify the commission in the

event a current or prospective qualifier, who was the subject of a

criminal history record check pursuant to this section, is arrested for

a crime or offense in this state after the date the check was performed.

9. Subsequent to the licensure of any entity pursuant to subdivision

one of this section, including any finding of qualification as may be

required as a condition of licensure, or the registration of any vendor

pursuant to subdivision three of this section, the executive director

may revoke, suspend, limit, or otherwise restrict the license,

registration or qualification status upon a finding that the licensee,

registrant or qualifier is disqualified on the basis of the criteria set

forth in section one thousand three hundred eighteen of this article.

10. After notice and hearing prior to the suspension of any license,

registration or qualification issued pursuant to subdivision seven of

this section the commission shall have the obligation to prove by

substantial evidence that the licensee, registrant or qualifier is

disqualified on the basis of the criteria set forth in section one

thousand three hundred eighteen of this article.