Bill Text: NY A04697 | 2019-2020 | General Assembly | Amended


Bill Title: Relates to authorizing and regulating the use of electronic bell jar vending machines.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2020-01-08 - referred to racing and wagering [A04697 Detail]

Download: New_York-2019-A04697-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4697--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    February 5, 2019
                                       ___________

        Introduced  by  M.  of  A.  PRETLOW,  HAWLEY,  DiPIETRO -- 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:

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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04879-02-9

        A. 4697--A                          2

     1    3-a. "Bell jars" shall mean and include those games in which a partic-
     2  ipant  shall draw a card from a jar, vending machine, including an elec-
     3  tronic bell jar vending machine, or other suitable device  or  container
     4  which  contains  numbers,  colors or symbols that are covered and which,
     5  when uncovered, may reveal that a prize shall be awarded on the basis of
     6  a  designated winning number, color or symbol or combination of numbers,
     7  colors or symbols. Bell jars shall also include seal cards, coin boards,
     8  event games, and merchandise boards.  An  electronic  bell  jar  vending
     9  machine shall use electronic features to display and dispense pre-print-
    10  ed  bell  jar  tickets,  including  audio  and video features to display
    11  information about a ticket being dispensed, provided that such  features
    12  do not affect the outcome of the game.
    13    §  3.  Subdivision 9 of section 188-a of the general municipal law, as
    14  added by chapter 960 of the laws of 1976, is amended to read as follows:
    15    9. (a) The [board] commission shall have  the  power  to  approve  and
    16  establish  a  standard set of games of chance equipment and shall by its
    17  rules and regulations prescribe the manner in which such equipment is to
    18  be reproduced and distributed to licensed authorized organizations.  The
    19  sale or distribution to a licensed authorized organization of any equip-
    20  ment  other  than  that contained in the standard set of games of chance
    21  equipment shall constitute a violation of this section.
    22    (b) After the effective date of this paragraph, no electronic bell jar
    23  vending machine shall be sold, leased, distributed, installed, or  oper-
    24  ated  by any manufacturer, distributor, or charitable organization until
    25  such machine has been approved by the commission.   No  electronic  bell
    26  jar vending machine shall be approved by the commission unless the oper-
    27  ation  of the game demonstrates that there is a finite probability basis
    28  of having a predetermined quantity of chances among  which  there  is  a
    29  predetermined  quantity  of  winners  that pay a fixed and predetermined
    30  value of prizes, regardless of the symbols that are used  or  how  those
    31  symbols are displayed on pre-printed bell jar tickets.
    32    §  4.  Subdivision  3  of section 189 of the general municipal law, as
    33  amended by chapter 337 of the laws  of  1998,  is  amended  to  read  as
    34  follows:
    35    3.  No  authorized  organization licensed under the provisions of this
    36  article shall purchase, lease, or  receive  any  supplies  or  equipment
    37  specifically  designed  or  adapted  for  use in the conduct of games of
    38  chance from other than a supplier licensed by the [board] commission  or
    39  from  another  authorized organization. Lease terms and conditions shall
    40  be subject to rules and regulations promulgated by the  [board]  commis-
    41  sion. The provisions of this article shall not be construed to authorize
    42  or  permit an authorized organization to engage in the business of leas-
    43  ing games of chance, supplies, or equipment. Furthermore,  no  organiza-
    44  tion shall purchase bell jar tickets[,] or deals of bell jar tickets, or
    45  purchase  or  lease  any  electronic  bell jar vending machine, from any
    46  other person or organization other than  those  specifically  authorized
    47  under  sections  one hundred ninety-five-n and one hundred ninety-five-o
    48  of this article.
    49    § 5. The opening paragraph of section 189-a of the  general  municipal
    50  law,  as  amended by chapter 164 of the laws of 2003, is amended to read
    51  as follows:
    52    No person, firm, partnership, corporation or organization, shall  sell
    53  or distribute supplies or equipment specifically designed or adapted for
    54  use  in  conduct  of  games  of  chance  without having first obtained a
    55  license therefor upon written application made, verified and filed  with
    56  the  [board]  commission  in  the form prescribed by the rules and regu-

        A. 4697--A                          3

     1  lations of the [board] commission.   As  a  part  of  its  determination
     2  concerning  the  applicant's  suitability  for  licensing  as a games of
     3  chance supplier, the [board] commission shall require the  applicant  to
     4  furnish  to the [board] commission two sets of fingerprints.  Such fing-
     5  erprints shall be submitted to the division of criminal justice services
     6  for a state criminal history record check, as defined in subdivision one
     7  of section three thousand thirty-five of the education law, and  may  be
     8  submitted to the federal bureau of investigation for a national criminal
     9  history record check. Manufacturers of bell jar tickets shall be consid-
    10  ered suppliers of such equipment. In each such application for a license
    11  under  this  section  shall be stated the name and address of the appli-
    12  cant; the names and addresses of its officers,  directors,  shareholders
    13  or  partners;  the  amount  of  gross  receipts realized on the sale and
    14  rental of games of  chance  supplies  and  equipment  to  duly  licensed
    15  authorized  organizations  during  the last preceding calendar or fiscal
    16  year, and such other information as shall be prescribed  by  such  rules
    17  and  regulations. The fee for such license shall be a sum equal to twen-
    18  ty-five dollars plus an amount equal to two  per  centum  of  the  gross
    19  sales  and rentals, if any, of games of chance equipment and supplies to
    20  authorized organizations or authorized games of chance  lessors  by  the
    21  applicant  during  the  preceding  calendar  year, or fiscal year if the
    22  applicant maintains his accounts  on  a  fiscal  year  basis;  provided,
    23  however, that for manufacturers of electronic bell jar vending machines,
    24  the  fee  for  such  license  shall be one thousand dollars.  No license
    25  granted pursuant to the provisions of this section  shall  be  effective
    26  for a period of more than one year.
    27    § 6. Section 195-c of the general municipal law, as amended by chapter
    28  252 of the laws of 1998, is amended to read as follows:
    29    §  195-c.  [1.]  Persons operating games; equipment; expenses; compen-
    30  sation.  1. No person shall operate any game of chance under any license
    31  issued under this article except a bona fide member  of  the  authorized
    32  organization to which the license is issued, or a bona fide member of an
    33  organization  or  association which is an auxiliary to the licensee or a
    34  bona fide member of an organization or association of which such  licen-
    35  see  is an auxiliary or a bona fide member of an organization or associ-
    36  ation which is affiliated with the licensee by being, with it, auxiliary
    37  to  another  organization  or  association.  Nothing  herein  shall   be
    38  construed to limit the number of games of chance licensees for whom such
    39  persons  may  operate  games  of  chance nor to prevent non-members from
    40  assisting the licensee in any activity other than managing or  operating
    41  games.  No  game  of chance shall be conducted with any equipment except
    42  such as shall be owned or  leased  by  the  authorized  organization  so
    43  licensed  or  used  without  payment of any compensation therefor by the
    44  licensee. However, in no event shall bell  jar  tickets  be  transferred
    45  from  one authorized organization to another, with or without payment of
    46  any compensation thereof. The head or heads of the authorized  organiza-
    47  tion  shall upon request certify, under oath, that the persons operating
    48  any game of chance are bona fide members of  such  authorized  organiza-
    49  tion,  auxiliary  or affiliated organization. Upon request by an officer
    50  or the department any such person involved in such games of chance shall
    51  certify that he or she has no criminal record. No items of expense shall
    52  be incurred or paid in connection with the conducting  of  any  game  of
    53  chance  pursuant  to  any license issued under this article except those
    54  that are reasonable and are necessarily expended  for  games  of  chance
    55  supplies  and  equipment,  prizes,  security personnel, stated rental if
    56  any, bookkeeping or accounting  services  according  to  a  schedule  of

        A. 4697--A                          4

     1  compensation  prescribed  by  the board, janitorial services and utility
     2  supplies if any, and license fees, and the cost of  bus  transportation,
     3  if  authorized  by  such  clerk  or  department.  No commission, salary,
     4  compensation,  reward or recompense shall be paid or given to any person
     5  for the sale or assisting with the sale of raffle tickets.
     6    2. For the purpose of the sale of tickets for the game of raffle,  the
     7  term  "operate" shall not include the sale of such tickets by persons of
     8  lineal or collateral consanguinity to members of an authorized organiza-
     9  tion licensed to conduct a raffle.
    10    3. Each electronic bell jar vending machine that has been approved  by
    11  the  commission pursuant to paragraph (b) of subdivision nine of section
    12  one hundred eighty-eight-a of this article shall have the ability to:
    13    (a) read a barcode or similar form of encryption  or  marking  on  the
    14  pre-printed bell jar ticket;
    15    (b)  reveal results and other game information through audio and video
    16  displays;
    17    (c) verify if a bell jar ticket is redeemable for a prize;
    18    (d) electronically aggregate winning prizes for continued play;
    19    (e) produce a voucher for prize redemption; and
    20    (f) track the sales of tickets and report such sales  to  the  commis-
    21  sion.
    22    4.  The  following  information  shall be displayed by each electronic
    23  bell jar vending machine:
    24    (a) the total number of tickets in each deal;
    25    (b) the price of each ticket;
    26    (c) the number and amount of prizes available  or  remaining  in  each
    27  deal;
    28    (d)  the  number  and amounts of prizes that have been claimed in each
    29  deal;
    30    (e) the number of  winners  per  ticket  and  its  respective  winning
    31  numbers or symbols;
    32    (f) the name of the game; and
    33    (g) the name or logo of the manufacturer of the tickets.
    34    5.  When  a  voucher  is  produced  by  an electronic bell jar vending
    35  machine for prize redemption, the following information shall appear  on
    36  such voucher:
    37    (a) the aggregate prize amount payable to the player;
    38    (b) the value of any unused tickets;
    39    (c)  the  device number or other identification method for the vending
    40  machine that produced such voucher;
    41    (d) the date and time that such voucher was printed;
    42    (e) the sequential number of such voucher;
    43    (f) a barcode or similar form of encryption that may be used to  vali-
    44  date the prize amount payable to the player; and
    45    (g)  the  period  of time during which unused tickets or prize amounts
    46  must be claimed.
    47    § 7. Subdivisions 1 and 4 of section 195-n of  the  general  municipal
    48  law,  as amended by chapter 637 of the laws of 1999, are amended to read
    49  as follows:
    50    1. Distribution; manufacturers. For business conducted in this  state,
    51  manufacturers  licensed by the [board] commission to sell bell jar tick-
    52  ets or electric bell jar vending machines shall sell only  such  tickets
    53  or  vending machines to distributors licensed by the [board] commission.
    54  Manufacturers of bell jar tickets, seal cards, merchandise  boards,  and
    55  coin  boards  may submit samples, artists' renderings, or color photoco-
    56  pies of proposed bell jar tickets, seal cards, merchandise boards,  coin

        A. 4697--A                          5

     1  boards,  payout cards, and flares for review and approval by the [board]
     2  commission. Within thirty days of receipt of such sample  or  rendering,
     3  the  [board]  commission  shall  approve  or deny such bell jar tickets.
     4  Following  approval  of  a  rendering  of  a bell jar ticket, seal card,
     5  merchandise board, or coin board by the [board] commission, the manufac-
     6  turer shall submit to the [board] commission a  sample  of  the  printed
     7  bell  jar ticket, seal card, merchandise board, coin board, payout card,
     8  and flare for such game. Such sample shall be  submitted  prior  to  the
     9  sale  of  the game to any licensed distributor for resale in this state.
    10  For coin boards and merchandise boards, nothing herein shall require the
    11  submittal of actual coins or merchandise as part of the  approval  proc-
    12  ess.  Any licensed manufacturer who willfully violates the provisions of
    13  this section shall: (a) upon such  first  offense,  have  their  license
    14  suspended  for  a  period  of thirty days; (b) upon such second offense,
    15  participate in a hearing to be conducted by the [board] commission,  and
    16  surrender  their  license  for such period as recommended by the [board]
    17  commission; and (c) upon such third or subsequent  offense,  have  their
    18  license  suspended  for  a  period  of one year and shall be guilty of a
    19  class E felony. Any unlicensed manufacturer who violates the  provisions
    20  of this section shall be guilty of a class E felony.
    21    4.  Reports  of  sales.  A manufacturer who sells bell jar tickets for
    22  resale in this state shall file with the [board] commission, on  a  form
    23  prescribed  by  the  [board] commission a report of all bell jar tickets
    24  sold to distributors in the state. The report shall be  filed  quarterly
    25  on  or  before  the twentieth day of the month succeeding the end of the
    26  quarter in which the sale was made. The [board] commission  may  require
    27  that  the  report  be  submitted  via  magnetic media or electronic data
    28  transfer. Such report shall also include information regarding any elec-
    29  tronic bell jar  vending  machines  sold  or  leased  to  a  distributor
    30  licensed by the commission.
    31    §  8.  Subdivisions  1,  3,  4,  and 5 of section 195-o of the general
    32  municipal law, subdivision 1 as amended by chapter 637 of  the  laws  of
    33  1999,  subdivisions  3 and 4 as added by chapter 309 of the laws of 1996
    34  and subdivision 5 as amended by section 16 of part MM of chapter  59  of
    35  the laws of 2017, are amended to read as follows:
    36    1.  Distribution; distributors. Any distributor licensed in accordance
    37  with section one hundred eighty-nine-a of  this  article  to  distribute
    38  bell  jar tickets or electronic bell jar vending machines shall purchase
    39  [bell jar] such tickets and vending machines only from licensed manufac-
    40  turers and may manufacture coin boards and merchandise  boards  only  as
    41  authorized  in  subdivision one-a of this section. Licensed distributors
    42  of bell jar tickets and electronic bell jar vending machines shall  sell
    43  such  tickets and vending machines only to not-for-profit, charitable or
    44  religious organizations registered  by  the  [board]  commission.    Any
    45  licensed  distributor  who  willfully  violates  the  provisions of this
    46  section shall: (a) upon such first offense, have their license suspended
    47  for a period of thirty days; (b) upon such second  offense,  participate
    48  in  a  hearing  to be conducted by the [board] commission, and surrender
    49  their license for such period as recommended by the [board]  commission;
    50  and  (c)  upon  such  third  or  subsequent  offense, have their license
    51  suspended for a period of one year and shall be  guilty  of  a  class  E
    52  felony.  Any  unlicensed  distributor who violates this section shall be
    53  guilty of a class E felony.
    54    3. Sales records. A distributor shall maintain a record  of  all  bell
    55  jar  tickets  that it sells and all electronic bell jar vending machines

        A. 4697--A                          6

     1  that it sells or leases.   The record shall include,  but  need  not  be
     2  limited to:
     3    (a)  the  identity  of  the  manufacturer  from  whom  the distributor
     4  purchased the product;
     5    (b) the serial number of the product;
     6    (c) the name, address, and license or  exempt  permit  number  of  the
     7  organization or person to which the sale was made;
     8    (d) the date of the sale;
     9    (e) the name of the person who ordered the product;
    10    (f) the name of the person who received the product;
    11    (g) the type of product;
    12    (h) the serial number of the product;
    13    (i)  the  account number identifying the sale from the manufacturer to
    14  distributor and  the  account  number  identifying  the  sale  from  the
    15  distributor to the licensed organization; and
    16    (j)  the  name, form number, or other identifying information for each
    17  game.
    18    4. Invoices. (a) A distributor shall supply with each sale of  a  bell
    19  jar  product  an  itemized  invoice  showing  the distributor's name and
    20  address, the purchaser's name, address, and license number, the date  of
    21  the  sale, the account number identifying the sale from the manufacturer
    22  to distributor and the account number  identifying  the  sale  from  the
    23  distributor  to  the  licensed  organization, and the description of the
    24  deals, including the form number, the serial number and the ideal  gross
    25  from every deal of bell jar or similar game.
    26    (b)  Within  five business days after the sale, lease, or distribution
    27  of an electronic bell jar vending machine to an authorized organization,
    28  the distributor shall provide a copy of an  invoice  to  the  commission
    29  which shows:
    30    (i) the name and address of the authorized organization;
    31    (ii) the date of sale, lease or distribution;
    32    (iii) the serial number of each such machine; and
    33    (iv) any additional information as the commission may require.
    34    5. Reports. A distributor shall report quarterly to the gaming commis-
    35  sion,  on  a form prescribed by the gaming commission, its sales of each
    36  type of bell jar  deal  or  tickets  and  electronic  bell  jar  vending
    37  machines.  This report shall be filed quarterly on or before the twenti-
    38  eth day of the month succeeding the end of the quarter in which the sale
    39  was made. The gaming commission may require that  a  distributor  submit
    40  the quarterly report and invoices required by this section via electron-
    41  ic media or electronic data transfer.
    42    § 9. Section 195-q of the general municipal law is amended by adding a
    43  new subdivision 3 to read as follows:
    44    3. (a) An authorized organization may only operate electronic bell jar
    45  vending machines on premises that it owns or leases.
    46    (b) An authorized organization may operate no more than five electron-
    47  ic  bell  jar vending machines. In no situation may more than five elec-
    48  tronic bell jar machines be operated at any leased premises,  no  matter
    49  how many authorized organizations are co-lessees.
    50    (c) No authorized organization may operate electronic bell jar vending
    51  machines  unless  they  were  a  games  of chance licensee authorized to
    52  conduct bell jar games on the effective date of this subdivision.
    53    (d) Each bell jar vending machine shall  generate  sales  reports  and
    54  such  other  information that the commission may direct by regulation in
    55  order to determine that such machine is operating in accordance with the
    56  provisions of this chapter.   The commission shall have  access  to  the

        A. 4697--A                          7

     1  server  of  each  electronic bell jar vending machine for the purpose of
     2  monitoring and auditing at no cost to the state.
     3    (e)  Any  unclaimed  funds  or tickets left in any electronic bell jar
     4  vending machine shall be retained by  the  authorized  organization  and
     5  reported as net proceeds.
     6    (f)  No  authorized  organization  may operate any electronic bell jar
     7  vending machine within the following area: (i) to the east, state  route
     8  fourteen from Sodus Point to the Pennsylvania border with New York; (ii)
     9  to  the  north,  the  border  between  New York and Canada; (iii) to the
    10  south, the Pennsylvania border with New York; and (iv) to the west,  the
    11  border  between  New York and Canada and the border between Pennsylvania
    12  and New York.
    13    § 10. This act shall take effect immediately.
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