N.Y. Tax Law § 1605: Lottery sales agents and other licensees

§ 1605. 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.

b. For purposes of this article the term "person" shall be construed

to mean and include an individual, partnership, limited liability

company, association, organization, club, company, corporation, trust,

estate, society, joint stock company, receiver, trustee, assignee,

referee, or any other person acting in a fiduciary or representative

capacity, whether appointed by a court or otherwise, and any combination

of individuals. "Person" shall also be construed to mean and include

agencies and instrumentalities of the state, and counties, cities, towns

and villages.

c. The division may, upon application approved by a local school

district board or by the governing board of a non-public school, license

as agents persons to sell lottery tickets for one lottery drawing with

the compensation to be paid to the designated local school district or

non-public school, provided however, that in no event may either such

person be licensed, or any such local school district or non-public

school receive the compensation from such a special license more than

once in any calendar year.

d. Before issuing a license to any person, the division shall

consider, with respect to such person:

1. Financial responsibility and security of the business or activity

in which such person is engaged.

2. Accessibility of the place of business or activity to the public.

3. Sufficiency of existing licenses to serve public convenience.

4. Whether place of business or activity is predominantly frequented

by persons under the age of eighteen years.

5. Volumes of expected sales.

e. The division is hereby authorized to obtain criminal background

information on any applicant for, or holder of, a lottery 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

criminal justice services or any other state or federal government

agency having facilities for checking fingerprints for the purpose of

determining 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 electronic 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 established by the division of criminal justice services. In

its discretion, the division may decline to act on any application

pending the disposition 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 jurisdiction 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 article 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

officer, director, partner, trustee or owner of an agent, vendor or

vendor's subcontractor.

f. No employee of a lottery sales agent shall be required as a

condition of employment to sell lottery tickets if his or her religious

beliefs militate against such activity.

g. Notwithstanding any other provision of this section to the

contrary, in considering the issuance of a license to a benevolent order

or any other association, organization or club that is distinctly

private in its nature under section forty of the civil rights law, the

division is not required to consider paragraph two of subdivision d of

this section. In conducting activities pursuant to the license, such

benevolent order, association, organization or club shall comply with

section forty-c of the civil rights law to the extent that such section

applies.