Senate Bill S10479

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10479
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
   and when printed to be committed to the Committee  on  Racing,  Gaming
   and Wagering
 
 AN  ACT  to  amend chapter 697 of the laws of 2025, amending the general
   municipal law relating to electronic bell  jar  games,  to  amend  the
   general  municipal  law,  in  relation to permitting certain fraternal
   organizations to conduct charitable  gaming  by  operating  electronic
   bell  jar  vending  machines; and to repeal certain provisions of such
   law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 1 of chapter 697 of the laws of 2025, amending the
 general municipal law relating to electronic bell jar games, as  amended
 by chapter 4 of the laws of 2026, is amended to read as follows:
   Section 1. Legislative findings and purpose. 1. The legislature hereby
 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)  organizations that offer bell jars and other games of chance must
 meet strict standards established by the New York state general  munici-
 pal  law and the New York state gaming commission, including 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. (a) For the aforementioned reasons, the legislature hereby declares
 that veteran organizations, FRATERNAL ORGANIZATIONS, and volunteer  fire
 companies  licensed  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 predeter-
 mined 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; and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15880-01-6
 S. 10479                            2
 
   (b) Provided further, the legislature also declares that  this  legis-
 lation  includes  appropriate  safeguards to ensure that electronic bell
 jar vending machines remain a limited and controlled  fundraising  tool,
 distinct  from  video  lottery  terminals or slot machines in design and
 function.  The  machines  authorized  herein  may  only  be  operated by
 licensed veteran organizations, FRATERNAL  ORGANIZATIONS  and  volunteer
 fire  companies, are limited pursuant to the provisions of subdivision 6
 of section 195-c of the general municipal law in order to prohibit casi-
 no-like gaming parlors, and are solely for use by members of such veter-
 an organizations, FRATERNAL ORGANIZATIONS, and volunteer fire companies.
   § 2. Subdivision 23 of section 186 of the general  municipal  law,  as
 added by chapter 4 of the laws of 2026, is amended to read as follows:
   23.  "Veteran organization" means a members-only organization compris-
 ing veterans and their family members, where the organization's focus is
 on the support of and advocacy for veterans and military service members
 [and that is licensed to operate bell jar games as of  November  thirti-
 eth, two thousand twenty-five and shall not include any auxiliary organ-
 izations].
   §  3.  Section 186 of the general municipal law is amended by adding a
 new subdivision 25 to read as follows:
   25. "FRATERNAL ORGANIZATION" MEANS ANY SOCIETY, ORDER, STATE HEADQUAR-
 TERS, OR ASSOCIATION WITHIN THIS STATE, EXCEPT A COLLEGE OR HIGH  SCHOOL
 FRATERNITY,  THAT  IS NOT ORGANIZED FOR PROFIT, THAT IS A BRANCH, LODGE,
 OR CHAPTER OF A NATIONAL OR STATE ORGANIZATION, AND THAT  EXISTS  EXCLU-
 SIVELY FOR THE COMMON BUSINESS OR SODALITY OF ITS MEMBERS.
   §  4.  Subdivision  10 of section 189 of the general municipal law, as
 amended by chapter 574 of the laws  of  1978,  is  amended  to  read  as
 follows:
   10.  No  person  except  a bona fide member of the licensed authorized
 organization [shall participate in the  management  of  such  games;  no
 person  except  a  bona fide member of the licensed authorized organiza-
 tion,] OR its auxiliary or affiliated organization, shall participate in
 the operation of such game, as set forth in section one hundred  ninety-
 five-c of this article.
   §  5. The section heading and subdivisions 1 and 6 of section 195-c of
 the general municipal law, as amended by chapter 4 of the laws of  2026,
 are amended to read as follows:
   Persons  operating  AND  MANAGING  games; equipment; expenses; compen-
 sation.  1. No person shall [operate] MANAGE 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  licensee is an auxiliary or a bona fide member of an organ-
 ization or association which is affiliated with the licensee  by  being,
 with it, auxiliary to another organization or association. Nothing here-
 in  shall  be construed to limit the number of games of chance licensees
 for whom such persons may operate games of chance nor  to  prevent  non-
 members  from assisting the licensee in any activity other than managing
 [or operating] games. No game of chance  shall  be  conducted  with  any
 equipment  except  such  as  shall  be owned or leased by the authorized
 organization so licensed or used without  payment  of  any  compensation
 therefor by the licensee. However, in no event shall bell jar tickets be
 transferred from one authorized organization to another, with or without
 payment of any compensation thereof. The head or heads of the authorized
 organization  shall  upon  request certify, under oath, that the persons
 S. 10479                            3
 
 [operating] MANAGING any game of chance are bona fide  members  of  such
 authorized  organization,  auxiliary  or  affiliated  organization. Upon
 request by an officer or the department any such person involved in such
 games  of  chance  shall  certify  that they have 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 commission,
 janitorial services and utility supplies if any, and license  fees,  and
 the  cost  of bus transportation, if authorized by such clerk or depart-
 ment. 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.
   6. (a) The maximum number of electronic bell jar vending machines that
 a veteran organization, FRATERNAL ORGANIZATION or volunteer fire company
 may operate shall be determined by the commission, but shall in no event
 exceed three machines.
   (b) (i) The use of an electronic bell jar vending machine shall not be
 approved or permitted in any location restricted by a compact between an
 Indian tribe and the state of New York, as determined by the commission.
   (ii)  In  cities  with  a  population of one million or more as of the
 latest federal decennial census, the following geographic considerations
 shall apply, notwithstanding any other provision of  this  paragraph  or
 paragraph (a) of this subdivision:
   For  any  veteran  organization,  FRATERNAL ORGANIZATION, or volunteer
 fire company at a premises located within two thousand five hundred feet
 of any gaming facility, the maximum number of electronic bell jar  vend-
 ing  machines  that  may  be operated shall be one. The commission shall
 establish procedures for measuring such distance. For any veteran organ-
 ization or volunteer fire company at a premises located  more  than  two
 thousand  five  hundred  feet but not more than one mile from any gaming
 facility, the maximum number of electronic  bell  jar  vending  machines
 that  may  be  operated  shall  be two, provided that the commission, in
 authorizing such machines, considers local  market  conditions  and  the
 objectives  of  preventing market oversaturation. For any veteran organ-
 ization, FRATERNAL ORGANIZATION, or volunteer fire company at a premises
 located more than one mile from any gaming facility, the maximum  number
 of  electronic  bell  jar vending machines shall be three, provided that
 the commission shall retain the discretion to  impose  stricter  limita-
 tions  based on local density of veteran organizations, FRATERNAL ORGAN-
 IZATIONS, and/or  volunteer  fire  companies  operating  such  machines,
 potential impact on existing gaming facilities, and the determination of
 the  commission  of  what will best serve public convenience, consistent
 with the objectives set forth in paragraph (c) of this subdivision.  The
 commission  shall, by rule or regulation, further define the methodology
 for assessing local density and market conditions within such cities and
 may establish specific zones or areas where the placement of  electronic
 bell  jar  vending  machines  is  further  limited  or requires enhanced
 review, to ensure the responsible integration of such charitable  gaming
 opportunities.
   (iii) The commission shall have the authority to establish, by rule or
 regulation,  specific  proximity  zones  around gaming facilities and to
 modify the limitations provided in subparagraphs (i) and  (ii)  of  this
 paragraph  based  upon  the determination of the commission of what will
 S. 10479                            4

 best serve public  convenience,  potential  impact  on  existing  gaming
 facilities,  and  the need to prevent loss of employment at such facili-
 ties, provided that any such modification shall be consistent  with  the
 objective  of  supporting  charitable  fundraising while maintaining the
 existing gaming landscape and preventing market oversaturation; provided
 however, that any such modification shall constitute only a reduction of
 the thresholds established by this subdivision.
   (c) (i) Notwithstanding any  other  provision  of  this  article,  the
 commission  shall  have  the discretion to determine the number of elec-
 tronic bell jar vending machines that may be  operated  by  any  veteran
 organization, FRATERNAL ORGANIZATION, or volunteer fire company, and the
 location  of  such  machines;  provided,  however,  that  such number of
 machines shall not exceed the limits established  in  this  subdivision.
 Such  discretion  shall be exercised to ensure that the introduction and
 operation of electronic bell jar vending machines occurs exclusively  to
 the   fundraising  capabilities  of  legitimate  veteran  organizations,
 FRATERNAL ORGANIZATIONS, or volunteer fire companies  while  maintaining
 the  stability  of  existing regulated gaming sectors and revenue to the
 state, and avoiding any loss of employment at  existing  gaming  facili-
 ties.
   (ii)  The  commission shall deny, revoke, or limit the number of elec-
 tronic bell jar  vending  machines  a  veteran  organization,  FRATERNAL
 ORGANIZATIONS,  or  volunteer fire company may operate if the commission
 determines that such organization has been established,  structured,  or
 is being utilized, directly or indirectly, to obtain a greater number of
 machines than otherwise would be permitted. This consideration includes,
 but is not limited to, the creation of subsidiary entities, shell organ-
 izations,  or  any  other  arrangement where the facts and circumstances
 indicate an intent to circumvent  the  limitations  set  forth  in  this
 subdivision.  The  commission is empowered to scrutinize the governance,
 operational control, and financial interdependence of  organizations  to
 make such determinations.
   (iii)   The   co-siting   or   joint   housing   of  multiple  veteran
 organizations, FRATERNAL ORGANIZATIONS and/or volunteer  fire  companies
 at  a  single premises or contiguous premises for the primary purpose of
 increasing the aggregate number of electronic bell jar vending  machines
 at  such  location beyond what would otherwise be permitted for a single
 veteran organization, FRATERNAL ORGANIZATION, or volunteer fire  company
 operating  at  such premises is prohibited, unless explicitly authorized
 by the commission upon a finding that  such  arrangement  is  consistent
 with  the  public  interest  and  the  objectives of this article.   The
 commission shall promulgate rules and  regulations  to  effectuate  this
 provision,  considering  factors  such  as  shared  operational control,
 membership overlap, and the primary purpose of  the  co-siting  arrange-
 ment.
   §  6.  Subdivision  8 of section 195-c of the general municipal law is
 REPEALED.
   § 7. Subdivisions 1 and 4 of section 195-o of  the  general  municipal
 law, as amended by chapter 4 of the laws of 2026, 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
 such tickets and vending machines only from licensed  manufacturers  and
 may manufacture coin boards and merchandise boards only as authorized in
 subdivision  one-a  of  this  section. Licensed distributors of bell jar
 S. 10479                            5
 
 tickets shall sell such tickets and vending machines  only  to  not-for-
 profit,  charitable or religious organizations registered by the commis-
 sion and shall sell, lease or otherwise distribute electronic  bell  jar
 vending  machines  only  to  eligible  veteran  organizations, FRATERNAL
 ORGANIZATIONS, or volunteer fire companies as set forth in this article.
 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  commission,  and  surrender  their
 license  for  such period as recommended by the 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 unli-
 censed distributor who violates this section shall be guilty of a  class
 E felony.
   4. Invoices; agreements. (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 manufac-
 turer 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) Prior to the sale, lease, or distribution of  an  electronic  bell
 jar  vending  machine to a veteran organization, FRATERNAL ORGANIZATION,
 or volunteer fire company, the distributor or manufacturer shall provide
 the contract or agreement for such sale, lease or  distribution  to  the
 commission  for approval and any modification to such contract or agree-
 ment thereafter. Such contract or agreement shall show, at minimum:
   (i) the name and address of the veteran organization, FRATERNAL ORGAN-
 IZATION, or volunteer fire company;
   (ii) the date of sale, lease or distribution;
   (iii) the serial number of each such machine;
   (iv) the material terms and conditions of such contract or  agreement;
 and
   (v) any additional information as the commission may require.
   (c)  The  commission  may promulgate rules and regulations relating to
 the terms of any contract or agreement for the sale, lease, or  distrib-
 ution  of  an electronic bell jar vending machine to a veteran organiza-
 tion, FRATERNAL ORGANIZATION, or volunteer fire company, including,  but
 not  limited  to,  regulations  to ensure that revenue from play on such
 machines appropriately  benefits  the  veteran  organization,  FRATERNAL
 ORGANIZATION, OR VOLUNTEER FIRE COMPANY, and does not, instead, primari-
 ly  or  unduly  benefit  any  other entity, including the distributor or
 manufacturer. The commission, in its sole  discretion,  may  approve  or
 deny  such  contract  or agreement and any material modification to such
 contract or agreement thereafter. If the commission denies approval  for
 such  contract,  agreement or modification, it shall provide the reasons
 for such determination.
   § 8. Subdivision 3 of section 195-q of the general municipal  law,  as
 amended by chapter 4 of the laws of 2026, is amended to read as follows:
   3.  (a)  A  veteran organization, FRATERNAL ORGANIZATION, or volunteer
 fire company may operate electronic bell jar vending  machines  only  on
 premises  that  it owns or leases. All such locations must be identified
 by the veteran organization, FRATERNAL ORGANIZATION, or  volunteer  fire
 company  and  approved  by  the commission prior to the placement of any
 electronic bell jar machine at those premises.
 S. 10479                            6
 
   (b) A veteran organization, FRATERNAL ORGANIZATION, or volunteer  fire
 company  may  operate  no  more  machines  than  the number permitted in
 section one hundred ninety-five-c of this article.
   (c) No veteran organization, FRATERNAL ORGANIZATION, or volunteer fire
 company shall operate an electronic bell jar vending machine unless such
 veteran  organization, FRATERNAL ORGANIZATION, or volunteer fire company
 is a games-of-chance licensee authorized by the commission to operate an
 electronic bell jar vending machine. The commission may promulgate rules
 and regulations as the commission deems necessary for the approval of  a
 veteran  organization, FRATERNAL ORGANIZATION, or volunteer fire company
 to operate an electronic bell jar vending  machine.  If  the  commission
 denies  such  request,  it  shall  provide the reasons for such determi-
 nation.
   (d) The commission may authorize  a  veteran  organization,  FRATERNAL
 ORGANIZATION,  or  volunteer fire company to operate electronic bell jar
 games [only if such veteran organization or volunteer fire  company  was
 licensed  to  operate bell jar games as of November thirtieth, two thou-
 sand twenty-five].
   (e) Each electronic bell jar  vending  machine  shall  generate  sales
 reports  and  such  other  information that the commission may direct by
 regulation. The commission shall have access to the server of each elec-
 tronic bell jar vending machine for the purpose of monitoring and audit-
 ing at no cost to the state.
   (f) 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.
   § 9. This act shall take effect  immediately;  provided,  however,  if
 chapter 697 of the laws of 2025 shall not have taken effect on or before
 such  date  then  this act shall take effect on the same date and in the
 same manner as such chapter of the laws of 2025 takes effect.