S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    994
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
   printed to be committed to the Committee on Racing, Gaming and  Wager-
   ing
 
 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

 S. 994                              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
 ________________________________________________________________________
 
                                  994--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
   printed to be committed to the Committee on Racing, Gaming and  Wager-
   ing  --  reported  favorably  from said committee and committed to the
   Committee on Finance -- 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04475-03-7

              

 S. 994--A                           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 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

 S. 994--A                           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.

 S. 994--A                           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

 S. 994--A                           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.

 S. 994--A                           6
 
   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
 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
 ________________________________________________________________________
 
                                  994--C
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sens.  BONACIC,  AVELLA,  GALLIVAN,  MARCHIONE,  O'MARA,
   RITCHIE, SANDERS, SAVINO -- read twice and ordered printed,  and  when
   printed  to be committed to the Committee on Racing, Gaming and Wager-
   ing -- reported favorably from said committee  and  committed  to  the
   Committee  on  Finance  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee --  recommitted
   to  the  Committee  on  Racing, Gaming and Wagering in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- 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

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

                                                            LBD04475-10-8

 S. 994--C                           2
 
 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:
   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.

 S. 994--C                           3
 
   § 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-
 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;

 S. 994--C                           4

   (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;
   (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-

 S. 994--C                           5
 
 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
 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:

 S. 994--C                           6
 
   (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 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 MAY OPERATE NO MORE THAN FIVE ELECTRON-
 IC  BELL  JAR VENDING MACHINES. IN NO SITUATION MAY MORE THAN FIVE ELEC-
 TRONIC BELL JAR MACHINES BE OPERATED AT ANY LEASED PREMISES,  NO  MATTER
 HOW MANY AUTHORIZED ORGANIZATIONS ARE CO-LESSEES.
   (C) NO AUTHORIZED ORGANIZATION MAY OPERATE ELECTRONIC BELL JAR VENDING
 MACHINES  UNLESS THEY WERE A GAMES OF CHANCE LICENSEE AND CONDUCTED BELL
 JAR  GAMES  PRIOR  TO  THE  EFFECTIVE  DATE  OF  THIS  SUBDIVISION.  THE
 PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO ANY MILITARY OR VETERANS
 ORGANIZATION NAMED IN SUBDIVISIONS NINE, THIRTY, THIRTY-A, THIRTY-SEVEN,
 THIRTY-EIGHT,   THIRTY-EIGHT-A,   THIRTY-EIGHT-B,   THIRTY-NINE,  FORTY,
 FORTY-ONE, FORTY-TWO, FORTY-THREE, FORTY-FOUR, FORTY-FIVE, FORTY-FIVE-A,
 FORTY-SEVEN, FIFTY-THREE, FIFTY-FOUR, OR FIFTY-NINE OF  SECTION  TWO  OF
 THE BENEVOLENT ORDERS LAW, NOR SHALL IT APPLY TO AN AUTHORIZED ORGANIZA-
 TION  WHICH  IS  A  SUCCESSOR ORGANIZATION TO AN AUTHORIZED ORGANIZATION
 WHICH WAS A GAMES OF CHANCE LICENSEE AND CONDUCTED BELL JAR GAMES  PRIOR
 TO THE EFFECTIVE DATE OF 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.