The New York State Senate

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

                                  6284

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                              June 3, 2019
                               ___________

Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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:
  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-

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

                                                           LBD04879-03-9

S. 6284                             2

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 THIS PARAGRAPH, 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] COMMISSION  or
from  another  authorized organization. Lease terms and conditions shall
be subject to rules and regulations promulgated by the  [board]  COMMIS-
SION. The provisions of this article shall not be construed to authorize
or  permit an authorized organization to engage in the business of leas-
ing games of chance, supplies, or equipment. Furthermore,  no  organiza-
tion 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 organization 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-
lations of the [board] COMMISSION.   As  a  part  of  its  determination
concerning  the  applicant's  suitability  for  licensing  as a games of

S. 6284                             3

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, as amended by chapter
252 of the laws of 1998, is amended to read as follows:
  § 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 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 licen-
see is an auxiliary or a bona fide member of an organization or  associ-
ation which is affiliated with the licensee by being, with it, auxiliary
to   another  organization  or  association.  Nothing  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 organiza-
tion shall upon request certify, under oath, that the persons  operating
any  game  of  chance are bona fide members of such authorized organiza-
tion, auxiliary or affiliated organization. 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 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, and the cost of bus transportation,

S. 6284                             4

if authorized by  such  clerk  or  department.  No  commission,  salary,
compensation,  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.
  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;
  (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,

S. 6284                             5

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
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:

S. 6284                             6

  (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 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  AUTHORIZED  TO
CONDUCT BELL JAR GAMES ON 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.

S. 6284                             7

  (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.
  (F)  NO  AUTHORIZED  ORGANIZATION  MAY OPERATE ANY ELECTRONIC BELL JAR
VENDING MACHINE WITHIN THE FOLLOWING AREA: (I) TO THE EAST, STATE  ROUTE
FOURTEEN FROM SODUS POINT TO THE PENNSYLVANIA BORDER WITH NEW YORK; (II)
TO  THE  NORTH,  THE  BORDER  BETWEEN  NEW YORK AND CANADA; (III) TO THE
SOUTH, THE PENNSYLVANIA BORDER WITH NEW YORK; AND (IV) TO THE WEST,  THE
BORDER  BETWEEN  NEW YORK AND CANADA AND THE BORDER BETWEEN PENNSYLVANIA
AND NEW YORK.
  § 10. This act shall take effect immediately.