senate Bill S2428

Eases certain restrictions on the conducting of games of chance for charitable purposes

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 17 / Jan / 2013
    • REFERRED TO RACING, GAMING AND WAGERING
  • 08 / Jan / 2014
    • REFERRED TO RACING, GAMING AND WAGERING

Summary

Eases certain restrictions on the conducting of games of chance for charitable purposes; authorizes the payment, out of the net proceeds of games of chance, of reimbursement for reasonable expenses of volunteers working at the games; expands the frequency upon which games of chance may be held; authorizes auxiliary members of authorized organizations to operate games of chance; authorizes persons convicted of crimes to operate games of chance when participating in a rehabilitation program; authorizes conducting of games of chance on Sundays; expands advertising of games of chance.

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Bill Details

See Assembly Version of this Bill:
A4153
Versions:
S2428
Legislative Cycle:
2013-2014
Current Committee:
Senate Racing, Gaming And Wagering
Law Section:
General Municipal Law
Laws Affected:
Amd Gen Muni L, generally
Versions Introduced in 2011-2012 Legislative Cycle:
S6595, A9851

Sponsor Memo

BILL NUMBER:S2428

TITLE OF BILL:
An act
to amend the general municipal law, in relation to the conducting of
games of chance by certain organizations

PURPOSE: The purpose of this bill is to update the
provisions that
govern the conduct of games of chance in New York. Article 9-A of the
General municipal Law was first codified in 1967 and has not been
substantially modified since that date. The operation of games of
chance, such as bell jars, raffles, and Las Vegas Nights raises
significant funds for not-for-profit organizations that helps to
support their charitable purposes. However, the change in lifestyles
and entertainment venues has slowly curtailed the amount of
charitable gaming money raised by charitable organizations to support
their charitable purposes. This bill hopes to modernize the
provisions of Article 9-A to stabilize the revenue raised by
charitable organizations and enhance their ability to support their
designated charitable purposes.

SUMMARY OF PROVISIONS:

Section 1: Amends General Municipal Law section 186 to up-date
definitions that are used in Article 9-A that govern the regulation
of charitable games such as bell jars, raffles, and Las Vegas nights.
Among the definitions that are modified axe the inclusion of the term
"auxiliary member". This definition is currently included in the law,
but is buried in the body of the General Municipal Law. It updates
the definition of "net proceeds" to better reflect the kinds of
expenses that charitable organizations incur to operate bingo games.
This provision slightly increases the number of times and number of
games of bingo that that occur during the calendar year. In addition,
a definition of "reasonable expenses" is provided to reimburse
volunteers for their reasonable out of pocket expenses to help
conduct such games.

Section 2: Amends General Municipal Law section 189 to permit
auxiliary members of a charitable organization to participate in the
management and operation of such games. This provision was added to
reflect the current problem that charitable organizations are facing
in securing volunteers to manage and conduct games of chance.
Further, it permits the charitable organization to reimburse
volunteers for their reasonable expenses incurred to volunteer for
conducting such games. The items would be limited transportation
costs, babysitting costs to watch children while parents help conduct
bingo games. To avoid abuse of this section, the Board could adopt
rules to specify the kinds of reimbursable expenses which could be
allowed for volunteers. This provision also increases a single prize
limit from $300 to $400, except for raffles which increased from $250
to $300. For a series of prizes, the values increase from $400 to
$500 to reflect the devaluation of the prizes due to inflation. The
prize limits set in this section were established in 1976. With
inflation since 1976, the prize values have been devalued
substantially over the past 35 years.


Section 3: Amends General Municipal Law section 190 to revise how
reasonable expenses of volunteers of a charitable organization can be
paid for to increase the pool of volunteers who can assist in the
conduct of bingo games.

Section 4: Amends General Municipal Law section 190 to reduce the
number of bonafide members of an applicant organization that are
named to manage the games of chance from 4 to 3. This is needed due
to the lack of volunteers available to manage these charitable games.

Section 5: Amends the General Municipal Law section 190-a to include
volunteer ambulance workers as being a bona fide authorized
organization that can conduct games of chance. Before 1976, most
ambulance companies were organized under a volunteer fire company.
However, it is more common now to see ambulance companies that
operate free of a volunteer fire company,

Section 6: Amends General Municipal Law section 190-a to allow those
between the ages of 16 and 18 can help conduct a raffle if
accompanied by an adult.
section 7: Amends General Municipal Law section 191 to allow those who
have been convicted of a crime to conduct bingo games, if the
charitable organization that is sponsoring such games of chance has
as its charitable purposes the charge of assisting and rehabilitating
those who have committed crimes or convicted of drug offenses. There
are probably worse things that a formerly convicted individual could
be doing once released from prison than helping to conduct a game
chance that is under the supervision of a rehabilitation services
program.

Section 8: Amends General Municipal Law section 194 to allow for the
sale of wine, in addition to the currently authorized sale of beer
during the conduct of games of chance events. Drinking patterns have
changed since this law was last codified in 1976. The consumption of
wine is far more common that it was in the past and should be allowed
during the conduct of games of chance.

Section 9: Amends General Municipal Law section 195 to change the
default on conducting of games of chance on Sunday from being
prohibited unless authorized by the local municipality to being
permitted unless the local municipality opts to prohibit such games
on Sunday.

Section 10: Amends General Municipal Law section 195-a to permit those
who are 16 to 18 years old to help conduct games as long as they are
accompanied by a parent or another adult. Under current law, children
can attend games as long as they are accompanied by an adult. This
bill will increase the pool of volunteers that could help to conduct
bingo games, provide assistance at the snack stand. Since 1967, the
world has changed. With the expanded use of the internet, internet
gambling, and questionable material that is readily available to
children on the internet, it seems outdated that teenagers between
the ages of 16 and 18 are prohibited from assisting their parents or
other adults in assisting in the conduct of games with other adults.
In today's society, there are probably much worse things that a
teenager could be doing than helping a charitable organization
conduct a games of chance.


Section 11: Amends General Municipal Law section 195-b to increase the
frequency at which games can be conducted from 12 to 18 times in any
calendar year.

Section 12: Amends General Municipal Law section 195-c to reformat
this section so that the definition of auxiliary member of a
charitable organization is contained not in this section, but shifted
to the definitions section contained in bill section one.

Section 13: Amends General Municipal Law section 195-e to modernize
the types of advertising that can be done to promote game nights. It
permits the use of emails and government access television
broadcasts. Also, it allows volunteer ambulance companies to display
signs advertising bingo events as is now the case for volunteer fire
companies. When this law was first enacted in 1967, ambulance corps
were generally associated with a fire company. Since then, the free
standing volunteer ambulance company is more common so this provision
was amended to include such free standing ambulance squads.

Section 14: Amends General Municipal Law section 195-f to make a
technical amendment thereto.

Section 15: Amends General Municipal Law section I95-n related to
approvals of bell jar game cards.

JUSTIFICATION:
The conduct of games of chance raises substantial funds to support the
charitable purposes of those organization that conduct such games.
However, the total amount wagered and more importantly the profit
that is retained by these charitable organizations has been steadily
declining. In 2000, total games of chance handle generated in New
York was $323,330,000, however in 2010 that total handle declined by
approximately $81,000,000 to a total of $242,600,000. More
importantly, the profits generated by these games declined
substantially from $53,750,000 in 2000 to $46,530,000 in 2010. That
is an annual reduction in support for New York's charitable
organizations of $7,220,000.

There are many reasons for this reduction in revenue generated to
support charitable organizations. The most important is the reduced
number and pool of volunteers available to conduct and manage such
games. This bill addresses this by allowing volunteers to get at
least some of their out of pocket expenses for volunteering to
conduct such games such as child care costs and gas money when
volunteering, and allowing teenagers over the age of 16 to assist
other adults in conducting the games and operating the snack bar.
Second, the means of advertising bingo games needs to be modernized
to include those forms of communication that are more commonly used
now, i.e. the Internet.

LEGISLATIVE HISTORY: 2012 - S. 6595, in Racing &
Wagering Committee

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: January first after the act shall
have become law.


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

                                  2428

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sens. KLEIN, CARLUCCI, MAZIARZ -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Racing,
  Gaming and Wagering

AN ACT to amend the general municipal law, in relation to the conducting
  of games of chance by certain organizations

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

  Section 1. Subdivisions 4 and 6 of section 186 of the general  munici-
pal  law, as amended by chapter 574 of the laws of 1978, are amended and
two new subdivisions 4-a and 22 are added to read as follows:
  4. "Authorized organization" shall mean  and  include  any  bona  fide
religious or charitable organization or bona fide educational, fraternal
or  service  organization  or  bona  fide organization of veterans [or],
volunteer [firemen] FIREFIGHTERS OR VOLUNTEER AMBULANCE  WORKERS,  which
by  its  charter,  certificate of incorporation, constitution, or act of
the legislature, shall have among its dominant purposes one or  more  of
the lawful purposes as defined in this article, provided that each shall
operate  without  profit  to  its  members,  and provided that each such
organization has engaged in serving one or more of the  lawful  purposes
as  defined  in  this  article for a period of three years [immediatley]
IMMEDIATELY prior to applying for a license under this article.
  No organization shall be deemed an authorized  organization  which  is
formed primarily for the purpose of conducting games of chance and which
does not devote at least seventy-five percent of its activities to other
than  conducting  games of chance. No political party shall be deemed an
authorized organization.
  4-A.  "AUXILIARY MEMBER" SHALL MEAN A BONA FIDE MEMBER OF AN ORGANIZA-
TION OR ASSOCIATION WHICH IS AUXILIARY  TO  AN  AUTHORIZED  ORGANIZATION
LICENSED PURSUANT TO THIS ARTICLE; OR A BONA FIDE MEMBER OF AN ORGANIZA-
TION  OR ASSOCIATION OF WHICH AN AUTHORIZED ORGANIZATION LICENSED PURSU-
ANT TO THIS ARTICLE IS AN AUXILIARY; OR A BONA FIDE MEMBER OF AN  ORGAN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00919-01-3

S. 2428                             2

IZATION   OR   ASSOCIATION   WHICH  IS  AFFILIATED  WITH  AN  AUTHORIZED
ORGANIZATION LICENSED PURSUANT TO THIS ARTICLE BY BEING, WITH IT, AUXIL-
IARY TO ANOTHER ORGANIZATION OR ASSOCIATION.
  6.  "Net  proceeds"  shall  mean (a) in relation to the gross receipts
from one or more license periods of games of  chance,  the  amount  that
shall remain after deducting the reasonable sums necessarily and actual-
ly  expended  for  CONDUCTING GAMES OF CHANCE INCLUDING, BUT NOT LIMITED
TO, supplies and equipment, prizes, security-personnel, stated rental if
any, bookkeeping or accounting  services  according  to  a  schedule  of
compensation  prescribed  by  the board, janitorial services and utility
supplies if any, license fees, and  [the  cost  of  bus  transportation]
REIMBURSEMENT  OF  REASONABLE EXPENSES INCURRED BY VOLUNTEERS WHO DONATE
THEIR TIME TO HOLD, OPERATE OR CONDUCT, OR ASSIST IN THE CONDUCT OF SUCH
GAMES, AND AS AUTHORIZED BY THE BOARD AND if authorized by the clerk  or
department  and (b) in relation to the gross rent received by an author-
ized games of chance lessor for the use of its premises  by  a  game  of
chance  licensee,  the  amount  that  shall  remain  after deducting the
reasonable  sums  necessarily  and  actually  expended  for   janitorial
services and utility supplies directly attributable thereto if any.
  22.  "REASONABLE EXPENSES" SHALL INCLUDE, BUT NOT BE LIMITED TO, CHILD
CARE EXPENSES, TRANSPORTATION EXPENSES, MEALS  AND  OTHER  EXPENSES,  AS
DETERMINED AND REGULATED BY THE BOARD.
  S  2. Subdivisions 4, 5, 6, 8, 10 and 11 of section 189 of the general
municipal law, subdivisions 4, 10 and 11 as amended by  chapter  574  of
the  laws of 1978, subdivisions 5 and 8 as amended by chapter 455 of the
laws of 2012 and subdivision 6 as amended by chapter 302 of the laws  of
2010, are amended to read as follows:
  4.  The entire net proceeds of any game of chance shall be exclusively
devoted to the lawful purposes of the organization permitted to  conduct
the  same  and the net proceeds of any rental derived therefrom shall be
exclusively devoted to the lawful purposes of the  authorized  games  of
chance lessor; PROVIDED, HOWEVER, THAT A PERSON MAY ACCEPT REIMBURSEMENT
OF REASONABLE EXPENSES INCURRED TO MANAGE, HOLD, OPERATE OR CONDUCT SUCH
GAMES.
  5.  No single prize awarded by games of chance other than raffle shall
exceed the sum or value of [three] FOUR hundred dollars, except that for
merchandise wheels, no single prize shall exceed the  sum  or  value  of
[two]  THREE  hundred [fifty] dollars. No single prize awarded by raffle
shall exceed the sum or value of one hundred thousand dollars. No single
wager shall exceed six dollars  and  for  bell  jars,  coin  boards,  or
merchandise  boards,  no  single prize shall exceed five hundred dollars
provided, however, that such limitation shall not apply to the amount of
money or value paid by the participant in a raffle in return for a tick-
et or other receipt. For coin boards and merchandise boards,  the  value
of  a prize shall be determined by its costs to the authorized organiza-
tion or, if donated, its fair market value.
  6. No authorized organization shall award a series of prizes  consist-
ing  of  cash or of merchandise with an aggregate value in excess of ten
thousand dollars during the successive operations of any one merchandise
wheel OR BELL JAR, and three  thousand  dollars  during  the  successive
operations  of  any  [bell  jar,] coin board[,] or merchandise board. No
series of prizes awarded by raffle shall  have  an  aggregate  value  in
excess of five hundred thousand dollars. For coin boards and merchandise
boards,  the  value  of  a  prize shall be determined by its cost to the
authorized organization or, if donated, its fair market value.

S. 2428                             3

  8. Except for merchandise wheels and raffles, no series of  prizes  on
any  one  occasion shall aggregate more than [four] FIVE hundred dollars
when the licensed authorized organization conducts five single types  of
games  of  chance  during any one license period. Except for merchandise
wheels,  raffles  and bell jars, no series of prizes on any one occasion
shall aggregate more than five hundred dollars when the licensed author-
ized organization conducts less than  five  single  types  of  games  of
chance,  exclusive  of merchandise wheels, raffles and bell jars, during
any one license period. No authorized organization shall award by raffle
prizes with an aggregate value in excess of two million  dollars  during
any one license period.
  10.  No  person  except  a bona fide member of the licensed authorized
organization OR AN AUXILIARY MEMBER OF SUCH ORGANIZATION  shall  partic-
ipate  in  the  management  of such games[; no person except a bona fide
member of the licensed authorized organization, its auxiliary or  affil-
iated  organization, shall participate in the operation of such game, as
set forth in section one hundred ninety-five-c of this article].
  11. No person shall receive any remuneration for participating in  the
management  or  operation  of  any  such game; PROVIDED, HOWEVER, THAT A
PERSON MAY ACCEPT  REIMBURSEMENT  OF  REASONABLE  EXPENSES  INCURRED  TO
MANAGE, HOLD, OPERATE OR CONDUCT GAMES OF CHANCE.
  S  3.  Subparagraph 5 of paragraph (a) of subdivision 1 of section 190
of the general municipal law, as amended by chapter 574 of the  laws  of
1978, is amended to read as follows:
  (5) the purposes to which the entire net proceeds of such games are to
be  devoted  and  in  what  manner;  that no commission, salary, compen-
sation[,] OR reward [or recompense] will  be  paid  to  any  person  for
conducting such game or games or for assisting therein except as in this
article  otherwise  provided;  and  such  other  information as shall be
prescribed by such rules and regulations.
  S 4. Paragraph (b) of subdivision 1 of  section  190  of  the  general
municipal law, as amended by chapter 574 of the laws of 1978, is amended
to read as follows:
  (b) In each application there shall be designated not less than [four]
THREE  bona  fide  members  of the applicant organization under whom the
game or games of chance will be managed and to the application shall  be
appended  a  statement  executed by the members so designated, that they
will be responsible for the management of such games in accordance  with
the  terms  of the license, the rules and regulations of the board, this
article and the applicable local laws or ordinances.
  S 5. Paragraph (a) of subdivision 2 of section 190-a  of  the  general
municipal law, as amended by chapter 400 of the laws of 2005, is amended
to read as follows:
  (a)  For the purposes of this section, "authorized organization" shall
mean and include any bona fide religious or charitable  organization  or
bona  fide  educational,  fraternal or service organization or bona fide
organization of veterans [or], volunteer [firefighter]  FIREFIGHTERS  OR
VOLUNTEER AMBULANCE WORKERS, which by its charter, certificate of incor-
poration,  constitution, or act of the legislature, shall have among its
dominant purposes one or more of the lawful purposes as defined in  this
article, provided that each shall operate without profit to its members,
and  provided  that each such organization has engaged in serving one or
more of the lawful purposes as defined in this article for a  period  of
three  years  immediately  prior to being granted the filing requirement
exemption contained in subdivision one of this section.

S. 2428                             4

  S 6. Subdivision 3 of section 190-a of the general municipal  law,  as
added by chapter 400 of the laws of 2005, is amended to read as follows:
  3.  No  person  under the age of eighteen shall be permitted to play[,
operate or assist] in any raffle conducted pursuant to this section.  NO
PERSON UNDER THE AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO OPERATE  OR
ASSIST  IN  ANY  RAFFLE  CONDUCTED  PURSUANT  TO THIS SECTION; PROVIDED,
HOWEVER, THAT A PERSON UNDER THE  AGE  OF  EIGHTEEN  YEARS  AND  WHO  IS
SIXTEEN YEARS OF AGE OR OLDER SHALL BE PERMITTED TO ASSIST IN ANY RAFFLE
IF ACCOMPANIED BY AN ADULT.
  S  7.  Paragraph  (a)  of  subdivision 1 of section 191 of the general
municipal law, as amended by section 15 of part LL of chapter 56 of  the
laws of 2010, is amended to read as follows:
  (a)  Issuance of licenses to conduct games of chance. If such clerk or
department shall determine that the applicant is duly  qualified  to  be
licensed  to conduct games of chance under this article; that the member
or members of the applicant designated  in  the  application  to  manage
games  of  chance  are bona fide active members of the applicant and are
persons of good moral character and  have  never  been  convicted  of  a
crime,  or,  if convicted, have received a pardon, a certificate of good
conduct or a certificate of relief from disabilities pursuant to article
twenty-three of the correction law, OR,  IF  CONVICTED,  THE  MEMBER  OR
MEMBERS ARE PARTICIPATING IN A REHABILITATION PROGRAM LICENSED OR CERTI-
FIED  BY  A  STATE  AGENCY AND OPERATED BY THE APPLICANT OR AN AUXILIARY
THEREOF; that such games are to be  conducted  in  accordance  with  the
provisions  of  this  article and in accordance with the rules and regu-
lations of the board and applicable local laws or  ordinances  and  that
the  proceeds thereof are to be disposed of as provided by this article,
and if such clerk or department is satisfied that no commission, salary,
compensation[,] OR reward [or recompense] whatever will be paid or given
to any person managing, operating or assisting  therein  except  as  [in
this  article]  otherwise provided IN THIS ARTICLE, INCLUDING REIMBURSE-
MENT OF REASONABLE EXPENSES INCURRED BY VOLUNTEERS WHO DONATE THEIR TIME
TO HOLD, OPERATE OR CONDUCT, OR ASSIST IN THE CONDUCT OF SUCH GAMES;  it
shall  issue  a  license  to  the  applicant for the conduct of games of
chance upon payment of a license fee of  twenty-five  dollars  for  each
license period.
  S  8.  Subdivision  3  of section 194 of the general municipal law, as
amended by chapter 550 of the laws  of  1994,  is  amended  to  read  as
follows:
  3.  [Service  of  alcoholic  beverages.]  Subject  to  the  applicable
provisions of the alcoholic beverage control law, beer AND WINE  may  be
offered  for  sale  during  the  conduct  of games of chance on games of
chance premises as such premises are defined in subdivision nineteen  of
section  one hundred eighty-six of this article; provided, however, that
nothing herein shall be construed to limit the offering for sale of  any
other  alcoholic  beverage in areas other than the games of chance prem-
ises or the sale of any other alcoholic beverage in premises where  only
the games of chance known as bell jar or raffles are conducted.
  S  9.  Section 195 of the general municipal law, as amended by chapter
461 of the laws of 2003, is amended to read as follows:
  S 195. Sunday; conduct of games on. Except as provided in section  one
hundred  ninety-five-b of this article, [no] games of chance [shall] MAY
be conducted under any license issued under this article  on  the  first
day  of  the  week,  commonly  known and designated as Sunday, unless it
shall be otherwise provided in the license  issued  for  the  conducting
thereof,  pursuant to the provisions of a local law or an ordinance duly

S. 2428                             5

adopted by the governing body of the municipality wherein the license is
issued, [authorizing] PROHIBITING the conduct of games of  chance  under
this  article on that day [only between the hours of noon and midnight].
Notwithstanding  the  foregoing  provisions  of this section no games of
chance shall be conducted on Easter Sunday or Christmas Day.
  S 10. Section 195-a of the general municipal law, as amended by  chap-
ter 574 of the laws of 1978, is amended to read as follows:
  S  195-a. Participation by persons under eighteen. No person under the
age of eighteen years shall be permitted to play any game  or  games  of
chance  conducted  pursuant  to  any  license issued under this article.
Persons under the age of eighteen years may be permitted to attend games
of chance [at the discretion of the  games  of  chance  licensee].    No
person under the age of eighteen years shall be permitted to operate any
game of chance conducted pursuant to any license issued under this arti-
cle or to assist therein; PROVIDED, HOWEVER, THAT A PERSON UNDER THE AGE
OF  EIGHTEEN  YEARS  AND  WHO  IS SIXTEEN YEARS OF AGE OR OLDER SHALL BE
PERMITTED TO ASSIST IN THE OPERATION OF ANY GAME OF CHANCE  IF  ACCOMPA-
NIED BY A PARENT.
  S  11. Section 195-b of the general municipal law, as amended by chap-
ter 252 of the laws of 1998, is amended to read as follows:
  S 195-b. Frequency of games. No game or  games  of  chance,  shall  be
conducted  under  any  license issued under this article more often than
[twelve] EIGHTEEN times in any calendar  year.  No  particular  premises
shall  be  used  for the conduct of games of chance on more than twenty-
four license periods during  any  one  calendar  year.  Games  shall  be
conducted only between the hours of noon and midnight on SUNDAY, Monday,
Tuesday,  Wednesday  and Thursday, and only between the hours of noon on
Friday and two A.M.  Saturday, and only between the  hours  of  noon  on
Saturday  and  two A.M.   Sunday. The two A.M. closing period shall also
apply to a legal holiday.  The above restrictions shall not  apply  when
only the games of chance known as bell jar and/or raffle are conducted.
  S  12. Section 195-c of the general municipal law, as amended by chap-
ter 252 of the laws of 1998, is amended to read as follows:
  S 195-c. [1.] Persons operating games;  equipment;  expenses;  compen-
sation.  1. No person shall operate any game of chance under any license
issued  under this article except a bona fide member OR AUXILIARY MEMBER
of the authorized organization to which the license  is  issued[,  or  a
bona fide member of an organization or association which is an auxiliary
to  the licensee or a bona fide member of an organization or association
of which such licensee is an auxiliary or  a  bona  fide  member  of  an
organization  or  association  which  is affiliated with the licensee by
being, with it, auxiliary to another organization or association]. Noth-
ing herein shall be construed to limit the number  of  games  of  chance
licensees  for  whom  such  persons  may  operate games of chance nor to
prevent non-members from assisting the licensee in  any  activity  other
than  managing  or operating games. No game of chance shall be conducted
with any equipment except such as  shall  be  owned  or  leased  by  the
authorized  organization  so  licensed  or  used  without payment of any
compensation therefor by the licensee. However, in no event  shall  bell
jar  tickets be transferred from one authorized organization to another,
with or without payment of any compensation thereof. The head  or  heads
of  the  authorized organization shall upon request certify, under oath,
that the persons operating any game of chance are bona fide OR AUXILIARY
members of such authorized organization, auxiliary or affiliated  organ-
ization.  Upon  request  by an officer or the department any such person
involved in such games of chance shall certify that he  or  she  has  no

S. 2428                             6

criminal  record.  No  items  of  expense  shall  be incurred or paid in
connection with the conducting of any game of  chance  pursuant  to  any
license  issued  under this article except those that are reasonable and
are  necessarily  expended  for  games of chance supplies and equipment,
prizes,  security  personnel,  stated  rental  if  any,  bookkeeping  or
accounting  services  according to a schedule of compensation prescribed
by the board, janitorial services  and  utility  supplies  if  any,  and
license  fees,  REIMBURSEMENT  OF REASONABLE EXPENSES INCURRED BY VOLUN-
TEERS WHO DONATE THEIR TIME TO OPERATE OR ASSIST  IN  THE  OPERATION  OF
GAMES  OF  CHANCE  and  the cost of bus transportation, if authorized by
such clerk or department.  No  commission,  salary,  compensation[,]  OR
reward [or recompense] shall be paid or given to any person for the sale
or assisting with the sale of raffle tickets.
  2.  For the purpose of the sale of tickets for the game of raffle, the
term "operate" shall not include the sale of such tickets by persons  of
lineal or collateral consanguinity to members of an authorized organiza-
tion licensed to conduct a raffle.
  S 13.  Section 195-e of the general municipal law, as amended by chap-
ter 94 of the laws of 1981, is amended to read as follows:
  S  195-e.  Advertising  games. A licensee may advertise the conduct of
games of chance to the general public by means of  newspaper,  circular,
handbill  [and],  poster, ELECTRONIC MAIL, ELECTRONIC COMMUNICATIONS AND
GOVERNMENT ACCESS TELEVISION BROADCASTS, and by one sign  not  exceeding
sixty  square feet in area, which may be displayed on or adjacent to the
premises owned or occupied by a licensed  authorized  organization,  and
when  an organization is licensed to conduct games of chance on premises
of an authorized games of chance lessor, one additional such sign may be
displayed on or adjacent to the premises in which the games  are  to  be
conducted.    Additional  signs  may be displayed upon any fire fighting
equipment belonging to any licensed authorized organization which  is  a
volunteer  fire  company, or upon any equipment of a first aid or rescue
squad, OR VOLUNTEER AMBULANCE COMPANY in and  throughout  the  community
served by such volunteer fire company or such first aid or rescue squad,
OR  VOLUNTEER  AMBULANCE COMPANY, as the case may be. All advertisements
shall be limited to the description of such event as "Games  of  chance"
or "Las Vegas Night", the name of the authorized organization conducting
such  games,  the  license  number  of  the  authorized  organization as
assigned by the clerk or department and the date, location and  time  of
the event.
  S  14. Subdivision 3 of section 195-f of the general municipal law, as
amended by chapter 550 of the laws  of  1994,  is  amended  to  read  as
follows:
  3.  Any authorized organization required to file an annual report with
the secretary of state pursuant to article seven-A of the executive  law
[or  the  attorney  general  pursuant  to  article eight of the estates,
powers and trusts law] shall include with such annual report a  copy  of
the statement required to be filed with the clerk or department pursuant
to subdivision one or two of this section.
  S  15. Subdivision 1 of section 195-n of the general municipal law, as
amended by chapter 637 of the laws  of  1999,  is  amended  to  read  as
follows:
  1.  Distribution; manufacturers. For business conducted in this state,
manufacturers licensed by the board to sell bell jar tickets shall  sell
only  such  tickets to distributors licensed by the board. Manufacturers
of bell jar tickets, seal cards, merchandise boards, and coin boards may
submit samples, artists' renderings, or color  photocopies  of  proposed

S. 2428                             7

bell  jar  tickets,  seal cards, merchandise boards, coin boards, payout
cards, and flares for review and approval by the  board.  Within  thirty
days  of receipt of such sample or rendering, the board shall approve or
deny such bell jar tickets. [Following approval of a rendering of a bell
jar  ticket,  seal  card, merchandise board, or coin board by the board]
PRIOR TO THE SALE OF A BELL JAR GAME, JAR TICKET, SEAL CARD, MERCHANDISE
BOARD OR COIN BOARD TO ANY  LICENSED  DISTRIBUTOR  FOR  RESALE  IN  THIS
STATE, the manufacturer shall submit to the board a sample of the print-
ed  bell  jar  ticket,  seal card, merchandise board, coin board, payout
card, and flare for such game. [Such sample shall be submitted prior  to
the  sale  of  the  game  to any licensed distributor for resale in this
state.] WITHIN FORTY-FIVE DAYS OF RECEIPT  OF  SUCH  SAMPLE,  THE  BOARD
SHALL  APPROVE  OR  DENY  THE  BELL  JAR  TICKET, JAR TICKET, SEAL CARD,
MERCHANDISE BOARD OR COIN BOARD. For coin boards and merchandise boards,
nothing herein shall require the submittal of actual coins  or  merchan-
dise  as  part  of  the  approval process. Any licensed manufacturer who
willfully violates the provisions of this section shall: (a)  upon  such
first offense, have their license suspended for a period of thirty days;
(b)  upon  such second offense, participate in a hearing to be conducted
by the board, and surrender their license for such period as recommended
by the board; and (c) upon such third or subsequent offense, have  their
license  suspended  for  a  period  of one year and shall be guilty of a
class E felony. Any unlicensed manufacturer who violates the  provisions
of this section shall be guilty of a class E felony.
  S 16. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

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