§ 1326 — Licensing of vendor enterprises

§ 1326. Licensing of vendor enterprises. 1. Any business to be\nconducted with a gaming facility applicant or licensee by a vendor\noffering goods or services which directly relate to gaming activity,\nincluding gaming equipment manufacturers, suppliers, repairers, and\nindependent testing laboratories, shall be licensed as a casino vendor\nenterprise in accordance with the provisions of this article prior to\nconducting any business whatsoever with a gaming facility applicant or\nlicensee, its employees or agents; provided, however, that upon a\nshowing of good cause by a gaming facility applicant or licensee, the\nexecutive director may permit an applicant for a casino vendor\nenterprise license to conduct business transactions with such gaming\nfacility applicant or licensee prior to the licensure of that casino\nvendor enterprise applicant under this subdivision for such periods as\nthe commission may establish by regulation.\n 2. In addition to the requirements of subdivision one of this section,\nany casino vendor enterprise intending to manufacture, sell, distribute,\ntest or repair slot machines within the state shall be licensed in\naccordance with the provisions of this article prior to engaging in any\nsuch activities; provided, however, that upon a showing of good cause by\na gaming facility applicant or licensee, the executive director may\npermit an applicant for a casino vendor enterprise license to conduct\nbusiness transactions with the gaming facility applicant or licensee\nprior to the licensure of that casino vendor enterprise applicant under\nthis subdivision for such periods as the commission may establish by\nregulation; and provided further, however, that upon a showing of good\ncause by an applicant required to be licensed as a casino vendor\nenterprise pursuant to this subdivision, the executive director may\npermit the casino vendor enterprise applicant to initiate the\nmanufacture of slot machines or engage in the sale, distribution,\ntesting or repair of slot machines with any person other than a gaming\nfacility applicant or licensee, its employees or agents, prior to the\nlicensure of that casino vendor enterprise applicant under this\nsubdivision.\n 3. Vendors providing goods and services to gaming facility licensees\nor applicants ancillary to gaming shall be required to be licensed as an\nancillary casino vendor enterprise and shall comply with the standards\nfor casino vendor license applicants.\n 4. Each casino vendor enterprise required to be licensed pursuant to\nsubdivision one of this section, as well as its owners; management and\nsupervisory personnel; and employees if such employees have\nresponsibility for services to a gaming facility applicant or licensee,\nmust qualify under the standards, except residency, established for\nqualification of a casino key employee under this article.\n 5. Any vendor that offers goods or services to a gaming facility\napplicant or licensee that is not included in subdivision one or two of\nthis section including, but not limited to site contractors and\nsubcontractors, shopkeepers located within the facility, gaming schools\nthat possess slot machines for the purpose of instruction, and any\nnon-supervisory employee of a junket enterprise licensed under\nsubdivision three of this section, shall be required to register with\nthe commission in accordance with the regulations promulgated under this\narticle.\n Notwithstanding the provisions aforementioned, the executive director\nmay, consistent with the public interest and the policies of this\narticle, direct that individual vendors registered pursuant to this\nsubdivision be required to apply for either a casino vendor enterprise\nlicense pursuant to subdivision one of this section, or an ancillary\nvendor industry enterprise license pursuant to subdivision three of this\nsection, as directed by the commission. The executive director may also\norder that any enterprise licensed as or required to be licensed as an\nancillary casino vendor enterprise pursuant to subdivision three of this\nsection be required to apply for a casino vendor enterprise license\npursuant to subdivision one of this section. The executive director may\nalso, in his or her discretion, order that an independent software\ncontractor not otherwise required to be registered be either registered\nas a vendor pursuant to this subdivision or be licensed pursuant to\neither subdivision one or three of this section.\n Each ancillary casino vendor enterprise required to be licensed\npursuant to subdivision three of this section, as well as its owners,\nmanagement and supervisory personnel, and employees if such employees\nhave responsibility for services to a gaming facility applicant or\nlicensee, shall establish their good character, honesty and integrity by\nclear and convincing evidence and shall provide such financial\ninformation as may be required by the commission. Any enterprise\nrequired to be licensed as an ancillary casino vendor enterprise\npursuant to this section shall be permitted to transact business with a\ngaming facility licensee upon filing of the appropriate vendor\nregistration form and application for such licensure.\n 6. Any applicant, licensee or qualifier of a casino vendor enterprise\nlicense or of an ancillary casino vendor enterprise license under\nsubdivision one of this section, and any vendor registrant under\nsubdivision five of this section shall be disqualified in accordance\nwith the criteria contained in section one thousand three hundred\neighteen of this article, except that no such ancillary casino vendor\nenterprise license under subdivision three of this section or vendor\nregistration under subdivision five of this section shall be denied or\nrevoked if such vendor registrant can affirmatively demonstrate\nrehabilitation pursuant to article twenty-three-A of the correction law.\n 7. No casino vendor enterprise license or ancillary casino vendor\nenterprise license shall be issued pursuant to subdivision one of this\nsection to any person unless that person shall provide proof of valid\nbusiness registration with the department of state.\n 8. For the purposes of this section, each applicant shall submit to\nthe commission the name, address, fingerprints and a written consent for\na criminal history information to be performed, for each person required\nto qualify as part of the application. The commission is hereby\nauthorized to exchange fingerprint data with and receive criminal\nhistory record information from the state division of criminal justice\nservices and the federal bureau of investigation consistent with\napplicable state and federal laws, rules and regulations. The applicant\nshall pay the fee for such criminal history information as established\npursuant to article thirty-five of the executive law. The state division\nof criminal justice services shall promptly notify the commission in the\nevent a current or prospective qualifier, who was the subject of a\ncriminal history record check pursuant to this section, is arrested for\na crime or offense in this state after the date the check was performed.\n 9. Subsequent to the licensure of any entity pursuant to subdivision\none of this section, including any finding of qualification as may be\nrequired as a condition of licensure, or the registration of any vendor\npursuant to subdivision three of this section, the executive director\nmay revoke, suspend, limit, or otherwise restrict the license,\nregistration or qualification status upon a finding that the licensee,\nregistrant or qualifier is disqualified on the basis of the criteria set\nforth in section one thousand three hundred eighteen of this article.\n 10. After notice and hearing prior to the suspension of any license,\nregistration or qualification issued pursuant to subdivision seven of\nthis section the commission shall have the obligation to prove by\nsubstantial evidence that the licensee, registrant or qualifier is\ndisqualified on the basis of the criteria set forth in section one\nthousand three hundred eighteen of this article.\n