The New York State Senate

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

                                  2303

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 17, 2017
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Racing and Wagering

AN ACT to amend the general municipal law,  in  relation  to  electronic
  bell jar games

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

  Section 1. Subdivision 3-a of section 186  of  the  general  municipal
law,  as  amended by chapter 531 of the laws of 2011, is amended to read
as follows:
  3-a. "Bell jars" shall mean and include those games in which a partic-
ipant shall draw a card from a jar, vending machine, or  other  suitable
device  or  container which contains numbers, colors or symbols that are
covered and which, when uncovered, may reveal  that  a  prize  shall  be
awarded  on the basis of a designated winning number, color or symbol or
combination of numbers, colors or symbols. Bell jars shall also  include
seal  cards,  coin boards, event games, and merchandise boards. NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, BELL  JAR  VENDING  MACHINES  SHALL
DISPENSE  PRE-PRINTED PHYSICAL BELL JAR TICKETS AND MAY INCLUDE FEATURES
TO AID PLAYERS AND ENHANCE ACCOUNTABILITY,  INCLUDING  FUNCTIONALITY  TO
ELECTRONICALLY  VERIFY  IF  A  TICKET  IS REDEEMABLE FOR A PRIZE, REVEAL
TICKET RESULTS THROUGH CREATIVE AUDIO AND VIDEO DISPLAYS, AND  ELECTRON-
ICALLY  AGGREGATE  WINNING PRIZES FOR CONTINUED PLAY OR A SINGLE VOUCHER
FOR PRIZE REDEMPTION. AFTER THE EFFECTIVE DATE OF  THE  CHAPTER  OF  THE
LAWS  OF  TWO  THOUSAND  SEVENTEEN THAT AMENDED THIS SUBDIVISION, NO NEW
BELL JAR TICKET VENDING MACHINE WHICH FEATURES THE PLAYER AIDS DESCRIBED
HEREIN SHALL BE DEPLOYED OR USED BY ANY LICENSED ORGANIZATION WITHIN THE
JURISDICTIONAL BOUNDARIES DEFINED IN SUBDIVISION TWO OF SECTION THIRTEEN
HUNDRED ELEVEN OF THE RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW
UNLESS  THE  BOARD  SHALL  FIRST ISSUE A FORMAL WRITTEN OPINION THAT THE
SPECIFIC TYPE OF VENDING MACHINE TO BE DEPLOYED IS NOT  VIOLATIVE  OF  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04475-01-7

A. 2303                             2

VALID AND EFFECTIVE GAMING COMPACT BETWEEN THE STATE AND AN INDIAN TRIBE
OR NATION.
  § 2. Section 195-n of the general municipal law is amended by adding a
new subdivision 1-a to read as follows:
  1-A.  APPROVAL.    NO  MANUFACTURER OF BELL JAR VENDING MACHINES SHALL
SELL, LEASE OR OTHERWISE DISTRIBUTE SUCH VENDING MACHINES TO AN  AUTHOR-
IZED  DISTRIBUTOR  FOR  SALE  OR  LEASE TO AN AUTHORIZED ORGANIZATION OR
PERMIT ITS VENDING MACHINES TO BE SOLD, LEASED OR OTHERWISE  DISTRIBUTED
TO AN AUTHORIZED DISTRIBUTOR OR AUTHORIZED ORGANIZATION UNTIL SUCH VEND-
ING  MACHINE  HAS  BEEN  APPROVED  BY THE BOARD, PURSUANT TO REGULATIONS
ADOPTED BY THE BOARD, PROVIDED SUCH VENDING MACHINE  CONTAINS  IDENTICAL
FUNCTIONALITY  AS THE VENDING MACHINE APPROVED BY THE BOARD. AN APPLICA-
TION FOR A LICENSE OR A RENEWAL OF SUCH LICENSE SHALL BE ACCOMPANIED  BY
A  FEE  OF ONE THOUSAND DOLLARS AND SHALL BE MADE ON FORMS PRESCRIBED BY
THE BOARD. A LICENSE SHALL BE VALID FOR A PERIOD OF ONE  YEAR  FROM  THE
DATE OF ISSUANCE.
  §  3.  Subdivision  2 of section 195-q of the general municipal law is
renumbered subdivision 3 and a new subdivision 2 is  added  to  read  as
follows:
  2.  A. WITHIN FIVE BUSINESS DAYS AFTER THE SALE, LEASE OR DISTRIBUTION
OF A BELL JAR VENDING MACHINE TO AN AUTHORIZED ORGANIZATION, A DISTRIBU-
TOR SHALL PROVIDE THE BOARD WITH A COPY OF AN INVOICE  WHICH  SHOWS  (I)
THE  NAME  AND  ADDRESS OF THE AUTHORIZED ORGANIZATION; (II) THE DATE OF
SALE, LEASE OR DISTRIBUTION; (III) THE SERIAL NUMBER OF EACH SUCH  VEND-
ING  MACHINE; AND (IV) SUCH OTHER INFORMATION AS THE BOARD MAY, BY REGU-
LATION DIRECT.
  B. AN AUTHORIZED  ORGANIZATION  MAY  ONLY  OPERATE  BELL  JAR  VENDING
MACHINES ON PREMISES THAT IT OWNS OR LEASES.
  C.  EACH BELL JAR VENDING MACHINE SHALL GENERATE SUCH REPORTS AND SUCH
OTHER INFORMATION THAT THE BOARD MAY DIRECT, BY REGULATION, WHICH ALLOWS
THE BOARD TO DETERMINE THAT THE VENDING MACHINE IS OPERATING IN  ACCORD-
ANCE WITH LAW.
  D.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
THE MONTHLY FEE TO BE PAID TO THE BOARD  FOR  OPERATING  EACH  BELL  JAR
VENDING  MACHINE SHALL BE FIVE PERCENT OF THE NET PROCEEDS. NET PROCEEDS
SHALL BE DEFINED BY THE BOARD.
  § 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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

                                 2303--A

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 17, 2017
                               ___________

Introduced  by  M.  of  A.  PRETLOW,  McDONALD,  HAWLEY -- read once and
  referred  to  the  Committee  on  Racing  and  Wagering  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the general municipal law, in relation to electronic
  bell jar games

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

  Section 1.  Legislative findings and purpose. 1. The legislature here-
by finds that:
  (a)  bell jar games are a popular and profitable fundraising mechanism
for bona fide not-for-profit organizations across the state,  generating
millions of dollars in net revenues for charitable purposes every year;
  (b)  authorized  organizations that offer bell jars and other games of
chance must meet strict standards established  by  the  New  York  state
general  municipal law and the New York state gaming commission, includ-
ing receiving a license to conduct charitable gaming activities; and
  (c) while other types of gaming in New York state  have  continued  to
expand  and  improve,  the operation of charitable gaming activities has
largely remained the same over the last several decades.
  2. For the aforementioned reasons,  the  legislature  hereby  declares
that  authorized  organizations  licensed  by  the New York state gaming
commission to conduct charitable gaming would greatly benefit  from  the
ability  to  operate electronic bell jar vending machines, which display
and dispense  pre-printed  bell  jar  tickets  that  have  predetermined
winners  and  predetermined values for prizes, in order to help increase
charitable gaming profits across the state and attract more  members  to
join such organizations.
  §  2.  Subdivision 3-a of section 186 of the general municipal law, as
amended by chapter 531 of the laws  of  2011,  is  amended  to  read  as
follows:

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

                                                           LBD04475-02-7

A. 2303--A                          2

  3-a. "Bell jars" shall mean and include those games in which a partic-
ipant  shall draw a card from a jar, vending machine, INCLUDING AN ELEC-
TRONIC BELL JAR VENDING MACHINE, or other suitable device  or  container
which  contains  numbers,  colors or symbols that are covered and which,
when uncovered, may reveal that a prize shall be awarded on the basis of
a  designated winning number, color or symbol or combination of numbers,
colors or symbols. Bell jars shall also include seal cards, coin boards,
event games, and merchandise boards.  AN  ELECTRONIC  BELL  JAR  VENDING
MACHINE SHALL USE ELECTRONIC FEATURES TO DISPLAY AND DISPENSE PRE-PRINT-
ED  BELL  JAR  TICKETS,  INCLUDING  AUDIO  AND VIDEO FEATURES TO DISPLAY
INFORMATION ABOUT A TICKET BEING DISPENSED, PROVIDED THAT SUCH  FEATURES
DO NOT AFFECT THE OUTCOME OF THE GAME.
  §  3.  Subdivision 9 of section 188-a of the general municipal law, as
added by chapter 960 of the laws of 1976, is amended to read as follows:
  9. (A) The [board] COMMISSION shall have  the  power  to  approve  and
establish  a  standard set of games of chance equipment and shall by its
rules and regulations prescribe the manner in which such equipment is to
be reproduced and distributed to licensed authorized organizations.  The
sale or distribution to a licensed authorized organization of any equip-
ment  other  than  that contained in the standard set of games of chance
equipment shall constitute a violation of this section.
  (B) AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF  TWO  THOU-
SAND  SEVENTEEN  THAT  AMENDED  THIS SUBDIVISION, NO ELECTRONIC BELL JAR
VENDING MACHINE SHALL BE SOLD, LEASED, DISTRIBUTED, INSTALLED, OR  OPER-
ATED  BY ANY MANUFACTURER, DISTRIBUTOR, OR CHARITABLE ORGANIZATION UNTIL
SUCH MACHINE HAS BEEN APPROVED BY THE COMMISSION.   NO  ELECTRONIC  BELL
JAR VENDING MACHINE SHALL BE APPROVED BY THE COMMISSION UNLESS THE OPER-
ATION  OF THE GAME DEMONSTRATES THAT THERE IS A FINITE PROBABILITY BASIS
OF HAVING A PREDETERMINED QUANTITY OF CHANCES AMONG  WHICH  THERE  IS  A
PREDETERMINED  QUANTITY  OF  WINNERS  THAT PAY A FIXED AND PREDETERMINED
VALUE OF PRIZES, REGARDLESS OF THE SYMBOLS THAT ARE USED  OR  HOW  THOSE
SYMBOLS ARE DISPLAYED.
  §  4.  Subdivision  3  of section 189 of the general municipal law, as
amended by chapter 337 of the laws  of  1998,  is  amended  to  read  as
follows:
  3.  No  authorized  organization licensed under the provisions of this
article shall purchase, lease, or  receive  any  supplies  or  equipment
specifically  designed  or  adapted  for  use in the conduct of games of
chance from other than a supplier licensed by the board or from  another
authorized  organization. Lease terms and conditions shall be subject to
rules and regulations promulgated by the board. The provisions  of  this
article  shall  not  be  construed  to authorize or permit an authorized
organization to engage in the  business  of  leasing  games  of  chance,
supplies, or equipment. Furthermore, no organization shall purchase bell
jar  tickets[,]  or  deals of bell jar tickets, OR PURCHASE OR LEASE ANY
ELECTRONIC BELL JAR VENDING MACHINE, from any other person or  organiza-
tion other than those specifically authorized under sections one hundred
ninety-five-n and one hundred ninety-five-o of this article.
  §  5.  The opening paragraph of section 189-a of the general municipal
law, as amended by chapter 164 of the laws of 2003, is amended  to  read
as follows:
  No  person, firm, partnership, corporation or organization, shall sell
or distribute supplies or equipment specifically designed or adapted for
use in conduct of games  of  chance  without  having  first  obtained  a
license  therefor upon written application made, verified and filed with
the [board] COMMISSION in the form prescribed by  the  rules  and  regu-

A. 2303--A                          3

lations  of  the  [board]  COMMISSION.    As a part of its determination
concerning the applicant's suitability  for  licensing  as  a  games  of
chance  supplier,  the [board] COMMISSION shall require the applicant to
furnish  to the [board] COMMISSION two sets of fingerprints.  Such fing-
erprints shall be submitted to the division of criminal justice services
for a state criminal history record check, as defined in subdivision one
of section three thousand thirty-five of the education law, and  may  be
submitted to the federal bureau of investigation for a national criminal
history record check. Manufacturers of bell jar tickets shall be consid-
ered suppliers of such equipment. In each such application for a license
under  this  section  shall be stated the name and address of the appli-
cant; the names and addresses of its officers,  directors,  shareholders
or  partners;  the  amount  of  gross  receipts realized on the sale and
rental of games of  chance  supplies  and  equipment  to  duly  licensed
authorized  organizations  during  the last preceding calendar or fiscal
year, and such other information as shall be prescribed  by  such  rules
and  regulations. The fee for such license shall be a sum equal to twen-
ty-five dollars plus an amount equal to two  per  centum  of  the  gross
sales  and rentals, if any, of games of chance equipment and supplies to
authorized organizations or authorized games of chance  lessors  by  the
applicant  during  the  preceding  calendar  year, or fiscal year if the
applicant maintains his accounts  on  a  fiscal  year  basis;  PROVIDED,
HOWEVER, THAT FOR MANUFACTURERS OF ELECTRONIC BELL JAR VENDING MACHINES,
THE  FEE  FOR  SUCH  LICENSE  SHALL BE ONE THOUSAND DOLLARS.  No license
granted pursuant to the provisions of this section  shall  be  effective
for a period of more than one year.
  §  6.  Section 195-c of the general municipal law is amended by adding
three new subdivisions 3, 4, and 5 to read as follows:
  3. EACH ELECTRONIC BELL JAR VENDING MACHINE THAT HAS BEEN APPROVED  BY
THE  COMMISSION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION NINE OF SECTION
ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE SHALL HAVE THE ABILITY TO:
  (A) READ A BARCODE OR SIMILAR FORM OF ENCRYPTION  OR  MARKING  ON  THE
PRE-PRINTED BELL JAR TICKET;
  (B)  REVEAL RESULTS AND OTHER GAME INFORMATION THROUGH AUDIO AND VIDEO
DISPLAYS;
  (C) VERIFY IF A BELL JAR TICKET IS REDEEMABLE FOR A PRIZE;
  (D) ELECTRONICALLY AGGREGATE WINNING PRIZES FOR CONTINUED PLAY;
  (E) PRODUCE A VOUCHER FOR PRIZE REDEMPTION; AND
  (F) TRACK THE SALES OF TICKETS AND REPORT SUCH SALES  TO  THE  COMMIS-
SION.
  4.  THE  FOLLOWING  INFORMATION  SHALL BE DISPLAYED BY EACH ELECTRONIC
BELL JAR VENDING MACHINE:
  (A) THE TOTAL NUMBER OF TICKETS IN EACH DEAL;
  (B) THE PRICE OF EACH TICKET;
  (C) THE NUMBER AND AMOUNT OF PRIZES AVAILABLE  OR  REMAINING  IN  EACH
DEAL;
  (D)  THE  NUMBER  AND AMOUNTS OF PRIZES THAT HAVE BEEN CLAIMED IN EACH
DEAL;
  (E) THE NUMBER OF  WINNERS  PER  TICKET  AND  ITS  RESPECTIVE  WINNING
NUMBERS OR SYMBOLS;
  (F) THE NAME OF THE GAME; AND
  (G) THE NAME OR LOGO OF THE MANUFACTURER OF THE TICKETS.
  5.  WHEN  A  VOUCHER  IS  PRODUCED  BY  AN ELECTRONIC BELL JAR VENDING
MACHINE FOR PRIZE REDEMPTION, THE FOLLOWING INFORMATION SHALL APPEAR  ON
SUCH VOUCHER:
  (A) THE AGGREGATE PRIZE AMOUNT PAYABLE TO THE PLAYER;

A. 2303--A                          4

  (B) THE VALUE OF ANY UNUSED TICKETS;
  (C)  THE  DEVICE NUMBER OR OTHER IDENTIFICATION METHOD FOR THE VENDING
MACHINE THAT PRODUCED SUCH VOUCHER;
  (D) THE DATE AND TIME THAT SUCH VOUCHER WAS PRINTED;
  (E) THE SEQUENTIAL NUMBER OF SUCH VOUCHER;
  (F) A BARCODE OR SIMILAR FORM OF ENCRYPTION THAT MAY BE USED TO  VALI-
DATE THE PRIZE AMOUNT PAYABLE TO THE PLAYER; AND
  (G)  THE  PERIOD  OF TIME DURING WHICH UNUSED TICKETS OR PRIZE AMOUNTS
MUST BE CLAIMED.
  § 7. Subdivisions 1 and 4 of section 195-n of  the  general  municipal
law,  as amended by chapter 637 of the laws of 1999, are amended to read
as follows:
  1. Distribution; manufacturers. For business conducted in this  state,
manufacturers  licensed by the [board] COMMISSION to sell bell jar tick-
ets OR ELECTRIC BELL JAR VENDING MACHINES shall sell only  such  tickets
OR  VENDING MACHINES to distributors licensed by the [board] COMMISSION.
Manufacturers of bell jar tickets, seal cards, merchandise  boards,  and
coin  boards  may submit samples, artists' renderings, or color photoco-
pies of proposed bell jar tickets, seal cards, merchandise boards,  coin
boards,  payout cards, and flares for review and approval by the [board]
COMMISSION. Within thirty days of receipt of such sample  or  rendering,
the  [board]  COMMISSION  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] COMMISSION, the manufac-
turer  shall  submit  to  the [board] COMMISSION a sample of the printed
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.
For coin boards and merchandise boards, nothing herein shall require the
submittal  of  actual coins or merchandise as part of the approval proc-
ess. 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] COMMISSION, and
surrender their license for such period as recommended  by  the  [board]
COMMISSION;  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.
  4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for
resale  in  this state shall file with the [board] COMMISSION, on a form
prescribed by the [board] COMMISSION a report of all  bell  jar  tickets
sold  to  distributors in the state. The report shall be filed quarterly
on or before the twentieth day of the month succeeding the  end  of  the
quarter  in  which the sale was made. The [board] COMMISSION may require
that the report be submitted  via  magnetic  media  or  electronic  data
transfer. SUCH REPORT SHALL ALSO INCLUDE INFORMATION REGARDING ANY ELEC-
TRONIC  BELL  JAR  VENDING  MACHINES  SOLD  OR  LEASED  TO A DISTRIBUTOR
LICENSED BY THE COMMISSION.
  § 8. Subdivisions 1, 3, 4, and 5  of  section  195-o  of  the  general
municipal  law,  subdivision  1 as amended by chapter 637 of the laws of
1999, subdivisions 3 and 4 as added by chapter 309 of the laws  of  1996
and  subdivision  5 as amended by section 16 of part MM of chapter 59 of
the laws of 2017, are amended to read as follows:
  1. Distribution; distributors. Any distributor licensed in  accordance
with  section  one  hundred  eighty-nine-a of this article to distribute

A. 2303--A                          5

bell jar tickets OR ELECTRONIC BELL JAR VENDING MACHINES shall  purchase
[bell jar] SUCH tickets AND VENDING MACHINES only from licensed manufac-
turers  and  may  manufacture coin boards and merchandise boards only as
authorized  in  subdivision one-a of this section. Licensed distributors
of bell jar tickets AND ELECTRONIC BELL JAR VENDING MACHINES shall  sell
such  tickets AND VENDING MACHINES only to not-for-profit, charitable or
religious organizations registered  by  the  [board]  COMMISSION.    Any
licensed  distributor  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] COMMISSION, and surrender
their license for such period as recommended by the [board]  COMMISSION;
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  distributor who violates this section shall be
guilty of a class E felony.
  3. Sales records. A distributor shall maintain a record  of  all  bell
jar  tickets  that it sells AND ALL ELECTRONIC BELL JAR VENDING MACHINES
THAT IT SELLS OR LEASES.   The record shall include,  but  need  not  be
limited to:
  (a)  the  identity  of  the  manufacturer  from  whom  the distributor
purchased the product;
  (b) the serial number of the product;
  (c) the name, address, and license or  exempt  permit  number  of  the
organization or person to which the sale was made;
  (d) the date of the sale;
  (e) the name of the person who ordered the product;
  (f) the name of the person who received the product;
  (g) the type of product;
  (h) the serial number of the product;
  (i)  the  account number identifying the sale from the manufacturer to
distributor and  the  account  number  identifying  the  sale  from  the
distributor to the licensed organization; and
  (j)  the  name, form number, or other identifying information for each
game.
  4. Invoices. (A) A distributor shall supply with each sale of  a  bell
jar  product  an  itemized  invoice  showing  the distributor's name and
address, the purchaser's name, address, and license number, the date  of
the  sale, the account number identifying the sale from the manufacturer
to distributor and the account number  identifying  the  sale  from  the
distributor  to  the  licensed  organization, and the description of the
deals, including the form number, the serial number and the ideal  gross
from every deal of bell jar or similar game.
  (B)  WITHIN  FIVE BUSINESS DAYS AFTER THE SALE, LEASE, OR DISTRIBUTION
OF AN ELECTRONIC BELL JAR VENDING MACHINE TO AN AUTHORIZED ORGANIZATION,
THE DISTRIBUTOR SHALL PROVIDE A COPY OF AN  INVOICE  TO  THE  COMMISSION
WHICH SHOWS:
  (I) THE NAME AND ADDRESS OF THE AUTHORIZED ORGANIZATION;
  (II) THE DATE OF SALE, LEASE OR DISTRIBUTION;
  (III) THE SERIAL NUMBER OF EACH SUCH MACHINE; AND
  (IV) ANY ADDITIONAL INFORMATION AS THE COMMISSION MAY REQUIRE.
  5.  Reports.  (A)  A  distributor shall report quarterly to the gaming
commission, on a form prescribed by the gaming commission, its sales  of
each  type  of  bell jar deal or tickets AND ELECTRONIC BELL JAR VENDING
MACHINES. This report shall be filed quarterly on or before the  twenti-
eth day of the month succeeding the end of the quarter in which the sale

A. 2303--A                          6

was  made.  The  gaming commission may require that a distributor submit
the quarterly report and invoices required by this section via electron-
ic media or electronic data transfer.
  § 9. Section 195-q of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
  3. (A) AN AUTHORIZED ORGANIZATION MAY ONLY OPERATE ELECTRONIC BELL JAR
VENDING MACHINES ON PREMISES THAT IT OWNS OR LEASES.
  (B)  EACH  BELL  JAR  VENDING MACHINE SHALL GENERATE SALES REPORTS AND
SUCH OTHER INFORMATION THAT THE COMMISSION MAY DIRECT BY  REGULATION  IN
ORDER TO DETERMINE THAT SUCH MACHINE IS OPERATING IN ACCORDANCE WITH THE
PROVISIONS  OF  THIS  CHAPTER.   THE COMMISSION SHALL HAVE ACCESS TO THE
SERVER OF EACH ELECTRONIC BELL JAR VENDING MACHINE FOR  THE  PURPOSE  OF
MONITORING AND AUDITING AT NO COST TO THE STATE.
  (C)  ANY  UNCLAIMED  FUNDS  OR TICKETS LEFT IN ANY ELECTRONIC BELL JAR
VENDING MACHINE SHALL BE RETAINED BY  THE  AUTHORIZED  ORGANIZATION  AND
REPORTED AS NET PROCEEDS.
  §  10.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law.

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

                                 2303--B
                                                        Cal. No. 169

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 17, 2017
                               ___________

Introduced  by  M.  of  A.  PRETLOW,  McDONALD,  HAWLEY -- read once and
  referred  to  the  Committee  on  Racing  and  Wagering  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said committee -- ordered to a third reading -- passed by Assembly
  and delivered to the Senate, recalled from the Senate, vote  reconsid-
  ered,  bill  amended,  ordered  reprinted,  retaining its place on the
  order of third reading

AN ACT to amend the general municipal law,  in  relation  to  electronic
  bell jar games

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

  Section 1.  Legislative findings and purpose. 1. The legislature here-
by finds that:
  (a) bell jar games are a popular and profitable fundraising  mechanism
for  bona fide not-for-profit organizations across the state, generating
millions of dollars in net revenues for charitable purposes every year;
  (b) authorized organizations that offer bell jars and other  games  of
chance  must  meet  strict  standards  established by the New York state
general municipal law and the New York state gaming commission,  includ-
ing receiving a license to conduct charitable gaming activities; and
  (c)  while  other  types of gaming in New York state have continued to
expand and improve, the operation of charitable  gaming  activities  has
largely remained the same over the last several decades.
  2.  For  the  aforementioned  reasons, the legislature hereby declares
that authorized organizations licensed by  the  New  York  state  gaming
commission  to  conduct charitable gaming would greatly benefit from the
ability to operate electronic bell jar vending machines,  which  display
and  dispense  pre-printed  bell  jar  tickets  that  have predetermined
winners and predetermined values for prizes, in order to  help  increase
charitable  gaming  profits across the state and attract more members to
join such organizations.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD04475-09-8

A. 2303--B                          2

  § 2. Subdivision 3-a of section 186 of the general municipal  law,  as
amended  by  chapter  531  of  the  laws  of 2011, is amended to read as
follows:
  3-a. "Bell jars" shall mean and include those games in which a partic-
ipant  shall draw a card from a jar, vending machine, INCLUDING AN ELEC-
TRONIC BELL JAR VENDING MACHINE, or other suitable device  or  container
which  contains  numbers,  colors or symbols that are covered and which,
when uncovered, may reveal that a prize shall be awarded on the basis of
a designated winning number, color or symbol or combination of  numbers,
colors or symbols. Bell jars shall also include seal cards, coin boards,
event  games,  and  merchandise  boards.  AN ELECTRONIC BELL JAR VENDING
MACHINE SHALL USE ELECTRONIC FEATURES TO DISPLAY AND DISPENSE PRE-PRINT-
ED BELL JAR TICKETS, INCLUDING  AUDIO  AND  VIDEO  FEATURES  TO  DISPLAY
INFORMATION  ABOUT A TICKET BEING DISPENSED, PROVIDED THAT SUCH FEATURES
DO NOT AFFECT THE OUTCOME OF THE GAME.
  § 3. Subdivision 9 of section 188-a of the general municipal  law,  as
added by chapter 960 of the laws of 1976, is amended to read as follows:
  9.  (A)  The  [board]  COMMISSION  shall have the power to approve and
establish a standard set of games of chance equipment and shall  by  its
rules and regulations prescribe the manner in which such equipment is to
be  reproduced and distributed to licensed authorized organizations. The
sale or distribution to a licensed authorized organization of any equip-
ment other than that contained in the standard set of  games  of  chance
equipment shall constitute a violation of this section.
  (B)  AFTER  THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
SAND EIGHTEEN THAT AMENDED THIS  SUBDIVISION,  NO  ELECTRONIC  BELL  JAR
VENDING  MACHINE SHALL BE SOLD, LEASED, DISTRIBUTED, INSTALLED, OR OPER-
ATED BY ANY MANUFACTURER, DISTRIBUTOR, OR CHARITABLE ORGANIZATION  UNTIL
SUCH  MACHINE  HAS  BEEN APPROVED BY THE COMMISSION.  NO ELECTRONIC BELL
JAR VENDING MACHINE SHALL BE APPROVED BY THE COMMISSION UNLESS THE OPER-
ATION OF THE GAME DEMONSTRATES THAT THERE IS A FINITE PROBABILITY  BASIS
OF  HAVING  A  PREDETERMINED  QUANTITY OF CHANCES AMONG WHICH THERE IS A
PREDETERMINED QUANTITY OF WINNERS THAT PAY  A  FIXED  AND  PREDETERMINED
VALUE  OF  PRIZES,  REGARDLESS OF THE SYMBOLS THAT ARE USED OR HOW THOSE
SYMBOLS ARE DISPLAYED ON PRE-PRINTED BELL JAR TICKETS.
  § 4. Subdivision 3 of section 189 of the  general  municipal  law,  as
amended  by  chapter  337  of  the  laws  of 1998, is amended to read as
follows:
  3. No authorized organization licensed under the  provisions  of  this
article  shall  purchase,  lease,  or  receive any supplies or equipment
specifically designed or adapted for use in  the  conduct  of  games  of
chance  from other than a supplier licensed by the board or from another
authorized organization. Lease terms and conditions shall be subject  to
rules  and  regulations promulgated by the board. The provisions of this
article shall not be construed to  authorize  or  permit  an  authorized
organization  to  engage  in  the  business  of leasing games of chance,
supplies, or equipment. Furthermore, no organization shall purchase bell
jar tickets[,] or deals of bell jar tickets, OR PURCHASE  OR  LEASE  ANY
ELECTRONIC  BELL JAR VENDING MACHINE, from any other person or organiza-
tion other than those specifically authorized under sections one hundred
ninety-five-n and one hundred ninety-five-o of this article.
  § 5. The opening paragraph of section 189-a of the  general  municipal
law,  as  amended by chapter 164 of the laws of 2003, is amended to read
as follows:
  No person, firm, partnership, corporation or organization, shall  sell
or distribute supplies or equipment specifically designed or adapted for

A. 2303--B                          3

use  in  conduct  of  games  of  chance  without having first obtained a
license therefor upon written application made, verified and filed  with
the  [board]  COMMISSION  in  the form prescribed by the rules and regu-
lations  of  the  [board]  COMMISSION.    As a part of its determination
concerning the applicant's suitability  for  licensing  as  a  games  of
chance  supplier,  the [board] COMMISSION shall require the applicant to
furnish to the [board] COMMISSION two sets of fingerprints.  Such  fing-
erprints shall be submitted to the division of criminal justice services
for a state criminal history record check, as defined in subdivision one
of  section  three thousand thirty-five of the education law, and may be
submitted to the federal bureau of investigation for a national criminal
history record check. Manufacturers of bell jar tickets shall be consid-
ered suppliers of such equipment. In each such application for a license
under this section shall be stated the name and address  of  the  appli-
cant;  the  names and addresses of its officers, directors, shareholders
or partners; the amount of gross  receipts  realized  on  the  sale  and
rental  of  games  of  chance  supplies  and  equipment to duly licensed
authorized organizations during the last preceding  calendar  or  fiscal
year,  and  such  other information as shall be prescribed by such rules
and regulations. The fee for such license shall be a sum equal to  twen-
ty-five  dollars  plus  an  amount  equal to two per centum of the gross
sales and rentals, if any, of games of chance equipment and supplies  to
authorized  organizations  or  authorized games of chance lessors by the
applicant during the preceding calendar year,  or  fiscal  year  if  the
applicant  maintains  his  accounts  on  a  fiscal year basis; PROVIDED,
HOWEVER, THAT FOR MANUFACTURERS OF ELECTRONIC BELL JAR VENDING MACHINES,
THE FEE FOR SUCH LICENSE SHALL BE ONE  THOUSAND  DOLLARS.    No  license
granted  pursuant  to  the provisions of this section shall be effective
for a period of more than one year.
  § 6. Section 195-c of the general municipal law is amended  by  adding
three new subdivisions 3, 4, and 5 to read as follows:
  3.  EACH ELECTRONIC BELL JAR VENDING MACHINE THAT HAS BEEN APPROVED BY
THE COMMISSION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION NINE OF  SECTION
ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE SHALL HAVE THE ABILITY TO:
  (A)  READ  A  BARCODE  OR SIMILAR FORM OF ENCRYPTION OR MARKING ON THE
PRE-PRINTED BELL JAR TICKET;
  (B) REVEAL RESULTS AND OTHER GAME INFORMATION THROUGH AUDIO AND  VIDEO
DISPLAYS;
  (C) VERIFY IF A BELL JAR TICKET IS REDEEMABLE FOR A PRIZE;
  (D) ELECTRONICALLY AGGREGATE WINNING PRIZES FOR CONTINUED PLAY;
  (E) PRODUCE A VOUCHER FOR PRIZE REDEMPTION; AND
  (F)  TRACK  THE  SALES OF TICKETS AND REPORT SUCH SALES TO THE COMMIS-
SION.
  4. THE FOLLOWING INFORMATION SHALL BE  DISPLAYED  BY  EACH  ELECTRONIC
BELL JAR VENDING MACHINE:
  (A) THE TOTAL NUMBER OF TICKETS IN EACH DEAL;
  (B) THE PRICE OF EACH TICKET;
  (C)  THE  NUMBER  AND  AMOUNT OF PRIZES AVAILABLE OR REMAINING IN EACH
DEAL;
  (D) THE NUMBER AND AMOUNTS OF PRIZES THAT HAVE BEEN  CLAIMED  IN  EACH
DEAL;
  (E)  THE  NUMBER  OF  WINNERS  PER  TICKET  AND ITS RESPECTIVE WINNING
NUMBERS OR SYMBOLS;
  (F) THE NAME OF THE GAME; AND
  (G) THE NAME OR LOGO OF THE MANUFACTURER OF THE TICKETS.

A. 2303--B                          4

  5. WHEN A VOUCHER IS  PRODUCED  BY  AN  ELECTRONIC  BELL  JAR  VENDING
MACHINE  FOR PRIZE REDEMPTION, THE FOLLOWING INFORMATION SHALL APPEAR ON
SUCH VOUCHER:
  (A) THE AGGREGATE PRIZE AMOUNT PAYABLE TO THE PLAYER;
  (B) THE VALUE OF ANY UNUSED TICKETS;
  (C)  THE  DEVICE NUMBER OR OTHER IDENTIFICATION METHOD FOR THE VENDING
MACHINE THAT PRODUCED SUCH VOUCHER;
  (D) THE DATE AND TIME THAT SUCH VOUCHER WAS PRINTED;
  (E) THE SEQUENTIAL NUMBER OF SUCH VOUCHER;
  (F) A BARCODE OR SIMILAR FORM OF ENCRYPTION THAT MAY BE USED TO  VALI-
DATE THE PRIZE AMOUNT PAYABLE TO THE PLAYER; AND
  (G)  THE  PERIOD  OF TIME DURING WHICH UNUSED TICKETS OR PRIZE AMOUNTS
MUST BE CLAIMED.
  § 7. Subdivisions 1 and 4 of section 195-n of  the  general  municipal
law,  as amended by chapter 637 of the laws of 1999, are amended to read
as follows:
  1. Distribution; manufacturers. For business conducted in this  state,
manufacturers  licensed by the [board] COMMISSION to sell bell jar tick-
ets OR ELECTRIC BELL JAR VENDING MACHINES shall sell only  such  tickets
OR  VENDING MACHINES to distributors licensed by the [board] COMMISSION.
Manufacturers of bell jar tickets, seal cards, merchandise  boards,  and
coin  boards  may submit samples, artists' renderings, or color photoco-
pies of proposed bell jar tickets, seal cards, merchandise boards,  coin
boards,  payout cards, and flares for review and approval by the [board]
COMMISSION. Within thirty days of receipt of such sample  or  rendering,
the  [board]  COMMISSION  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] COMMISSION, the manufac-
turer  shall  submit  to  the [board] COMMISSION a sample of the printed
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.
For coin boards and merchandise boards, nothing herein shall require the
submittal  of  actual coins or merchandise as part of the approval proc-
ess. 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] COMMISSION, and
surrender their license for such period as recommended  by  the  [board]
COMMISSION;  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.
  4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for
resale  in  this state shall file with the [board] COMMISSION, on a form
prescribed by the [board] COMMISSION a report of all  bell  jar  tickets
sold  to  distributors in the state. The report shall be filed quarterly
on or before the twentieth day of the month succeeding the  end  of  the
quarter  in  which the sale was made. The [board] COMMISSION may require
that the report be submitted  via  magnetic  media  or  electronic  data
transfer. SUCH REPORT SHALL ALSO INCLUDE INFORMATION REGARDING ANY ELEC-
TRONIC  BELL  JAR  VENDING  MACHINES  SOLD  OR  LEASED  TO A DISTRIBUTOR
LICENSED BY THE COMMISSION.
  § 8. Subdivisions 1, 3, 4, and 5  of  section  195-o  of  the  general
municipal  law,  subdivision  1 as amended by chapter 637 of the laws of
1999, subdivisions 3 and 4 as added by chapter 309 of the laws  of  1996

A. 2303--B                          5

and  subdivision  5 as amended by section 16 of part MM of chapter 59 of
the laws of 2017, are amended to read as follows:
  1.  Distribution; distributors. Any distributor licensed in accordance
with section one hundred eighty-nine-a of  this  article  to  distribute
bell  jar tickets OR ELECTRONIC BELL JAR VENDING MACHINES shall purchase
[bell jar] SUCH tickets AND VENDING MACHINES only from licensed manufac-
turers and may manufacture coin boards and merchandise  boards  only  as
authorized  in  subdivision one-a of this section. Licensed distributors
of bell jar tickets AND ELECTRONIC BELL JAR VENDING MACHINES shall  sell
such  tickets AND VENDING MACHINES only to not-for-profit, charitable or
religious organizations registered  by  the  [board]  COMMISSION.    Any
licensed  distributor  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] COMMISSION, and surrender
their license for such period as recommended by the [board]  COMMISSION;
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  distributor who violates this section shall be
guilty of a class E felony.
  3. Sales records. A distributor shall maintain a record  of  all  bell
jar  tickets  that it sells AND ALL ELECTRONIC BELL JAR VENDING MACHINES
THAT IT SELLS OR LEASES.   The record shall include,  but  need  not  be
limited to:
  (a)  the  identity  of  the  manufacturer  from  whom  the distributor
purchased the product;
  (b) the serial number of the product;
  (c) the name, address, and license or  exempt  permit  number  of  the
organization or person to which the sale was made;
  (d) the date of the sale;
  (e) the name of the person who ordered the product;
  (f) the name of the person who received the product;
  (g) the type of product;
  (h) the serial number of the product;
  (i)  the  account number identifying the sale from the manufacturer to
distributor and  the  account  number  identifying  the  sale  from  the
distributor to the licensed organization; and
  (j)  the  name, form number, or other identifying information for each
game.
  4. Invoices. (A) A distributor shall supply with each sale of  a  bell
jar  product  an  itemized  invoice  showing  the distributor's name and
address, the purchaser's name, address, and license number, the date  of
the  sale, the account number identifying the sale from the manufacturer
to distributor and the account number  identifying  the  sale  from  the
distributor  to  the  licensed  organization, and the description of the
deals, including the form number, the serial number and the ideal  gross
from every deal of bell jar or similar game.
  (B)  WITHIN  FIVE BUSINESS DAYS AFTER THE SALE, LEASE, OR DISTRIBUTION
OF AN ELECTRONIC BELL JAR VENDING MACHINE TO AN AUTHORIZED ORGANIZATION,
THE DISTRIBUTOR SHALL PROVIDE A COPY OF AN  INVOICE  TO  THE  COMMISSION
WHICH SHOWS:
  (I) THE NAME AND ADDRESS OF THE AUTHORIZED ORGANIZATION;
  (II) THE DATE OF SALE, LEASE OR DISTRIBUTION;
  (III) THE SERIAL NUMBER OF EACH SUCH MACHINE; AND
  (IV) ANY ADDITIONAL INFORMATION AS THE COMMISSION MAY REQUIRE.

A. 2303--B                          6

  5. Reports. A distributor shall report quarterly to the gaming commis-
sion,  on  a form prescribed by the gaming commission, its sales of each
type of bell jar  deal  or  tickets  AND  ELECTRONIC  BELL  JAR  VENDING
MACHINES.  This report shall be filed quarterly on or before the twenti-
eth day of the month succeeding the end of the quarter in which the sale
was  made.  The  gaming commission may require that a distributor submit
the quarterly report and invoices required by this section via electron-
ic media or electronic data transfer.
  § 9. Section 195-q of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
  3. (A) AN AUTHORIZED ORGANIZATION MAY ONLY OPERATE ELECTRONIC BELL JAR
VENDING MACHINES ON PREMISES THAT IT OWNS OR LEASES.
  (B) AN AUTHORIZED ORGANIZATION WHOSE PREMISES IS WITHIN THE  JURISDIC-
TIONAL BOUNDARIES DEFINED IN SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED
ELEVEN  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW MAY OPERATE
NO MORE THAN FIVE ELECTRONIC BELL JAR VENDING  MACHINES.  AN  AUTHORIZED
ORGANIZATION  WHOSE  PREMISES  IS  OUTSIDE THE JURISDICTIONAL BOUNDARIES
DEFINED IN SUBDIVISION TWO OF SECTION THIRTEEN  HUNDRED  ELEVEN  OF  THE
RACING,  PARI-MUTUEL  WAGERING AND BREEDING LAW MAY OPERATE NO MORE THAN
TEN ELECTRONIC BELL JAR VENDING MACHINES. IN NO SITUATION MAY MORE  THAN
FIVE ELECTRONIC BELL JAR MACHINES BE OPERATED AT ANY LEASED PREMISES, NO
MATTER HOW MANY AUTHORIZED ORGANIZATIONS ARE CO-LESSEES.
  (C)  NO AUTHORIZED ORGANIZATION WHOSE PREMISES IS WITHIN THE JURISDIC-
TIONAL BOUNDARIES DEFINED IN SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED
ELEVEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW MAY  OPERATE
ELECTRONIC  BELL JAR VENDING MACHINES UNLESS THEY WERE A GAMES OF CHANCE
LICENSEE PRIOR TO THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS  OF  TWO
THOUSAND  EIGHTEEN WHICH ADDED THIS SUBDIVISION. NO AUTHORIZED ORGANIZA-
TION WHOSE PREMISES IS OUTSIDE THE JURISDICTIONAL BOUNDARIES DEFINED  IN
SUBDIVISION  TWO OF SECTION THIRTEEN HUNDRED ELEVEN OF THE RACING, PARI-
MUTUEL WAGERING AND BREEDING LAW MAY OPERATE ELECTRONIC BELL JAR VENDING
MACHINES UNLESS THEY HAVE BEEN A GAMES OF CHANCE LICENSEE FOR THE PREVI-
OUS FIVE YEARS. THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO  ANY
AUTHORIZED  ORGANIZATION WHICH IS A SUCCESSOR ORGANIZATION TO AN AUTHOR-
IZED ORGANIZATION WHICH WAS A GAMES OF  CHANCE  LICENSEE  PRIOR  TO  THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN WHICH
ADDED THIS SUBDIVISION.
  (D)  EACH  BELL  JAR  VENDING MACHINE SHALL GENERATE SALES REPORTS AND
SUCH OTHER INFORMATION THAT THE COMMISSION MAY DIRECT BY  REGULATION  IN
ORDER TO DETERMINE THAT SUCH MACHINE IS OPERATING IN ACCORDANCE WITH THE
PROVISIONS  OF  THIS  CHAPTER.   THE COMMISSION SHALL HAVE ACCESS TO THE
SERVER OF EACH ELECTRONIC BELL JAR VENDING MACHINE FOR  THE  PURPOSE  OF
MONITORING AND AUDITING AT NO COST TO THE STATE.
  (E)  ANY  UNCLAIMED  FUNDS  OR TICKETS LEFT IN ANY ELECTRONIC BELL JAR
VENDING MACHINE SHALL BE RETAINED BY  THE  AUTHORIZED  ORGANIZATION  AND
REPORTED AS NET PROCEEDS.
  §  10.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law.