Bill Text: NY S00994 | 2017-2018 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to authorizing and regulating the use of electronic bell jar vending machines.
Spectrum: Slight Partisan Bill (Republican 5-3)
Status: (Vetoed) 2018-12-28 - VETOED MEMO.351 [S00994 Detail]
Download: New_York-2017-S00994-Amended.html
Bill Title: Relates to authorizing and regulating the use of electronic bell jar vending machines.
Spectrum: Slight Partisan Bill (Republican 5-3)
Status: (Vetoed) 2018-12-28 - VETOED MEMO.351 [S00994 Detail]
Download: New_York-2017-S00994-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 994--B 2017-2018 Regular Sessions IN SENATE January 6, 2017 ___________ Introduced by Sens. BONACIC, 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 Wagering -- 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 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04475-08-8S. 994--B 2 1 charitable gaming profits across the state and attract more members to 2 join such organizations. 3 § 2. Subdivision 3-a of section 186 of the general municipal law, as 4 amended by chapter 531 of the laws of 2011, is amended to read as 5 follows: 6 3-a. "Bell jars" shall mean and include those games in which a partic- 7 ipant shall draw a card from a jar, vending machine, including an elec- 8 tronic bell jar vending machine, or other suitable device or container 9 which contains numbers, colors or symbols that are covered and which, 10 when uncovered, may reveal that a prize shall be awarded on the basis of 11 a designated winning number, color or symbol or combination of numbers, 12 colors or symbols. Bell jars shall also include seal cards, coin boards, 13 event games, and merchandise boards. An electronic bell jar vending 14 machine shall use electronic features to display and dispense pre-print- 15 ed bell jar tickets, including audio and video features to display 16 information about a ticket being dispensed, provided that such features 17 do not affect the outcome of the game. 18 § 3. Subdivision 9 of section 188-a of the general municipal law, as 19 added by chapter 960 of the laws of 1976, is amended to read as follows: 20 9. (a) The [board] commission shall have the power to approve and 21 establish a standard set of games of chance equipment and shall by its 22 rules and regulations prescribe the manner in which such equipment is to 23 be reproduced and distributed to licensed authorized organizations. The 24 sale or distribution to a licensed authorized organization of any equip- 25 ment other than that contained in the standard set of games of chance 26 equipment shall constitute a violation of this section. 27 (b) After the effective date of the chapter of the laws of two thou- 28 sand eighteen that amended this subdivision, no electronic bell jar 29 vending machine shall be sold, leased, distributed, installed, or oper- 30 ated by any manufacturer, distributor, or charitable organization until 31 such machine has been approved by the commission. No electronic bell 32 jar vending machine shall be approved by the commission unless the oper- 33 ation of the game demonstrates that there is a finite probability basis 34 of having a predetermined quantity of chances among which there is a 35 predetermined quantity of winners that pay a fixed and predetermined 36 value of prizes, regardless of the symbols that are used or how those 37 symbols are displayed on pre-printed bell jar tickets. 38 § 4. Subdivision 3 of section 189 of the general municipal law, as 39 amended by chapter 337 of the laws of 1998, is amended to read as 40 follows: 41 3. No authorized organization licensed under the provisions of this 42 article shall purchase, lease, or receive any supplies or equipment 43 specifically designed or adapted for use in the conduct of games of 44 chance from other than a supplier licensed by the board or from another 45 authorized organization. Lease terms and conditions shall be subject to 46 rules and regulations promulgated by the board. The provisions of this 47 article shall not be construed to authorize or permit an authorized 48 organization to engage in the business of leasing games of chance, 49 supplies, or equipment. Furthermore, no organization shall purchase bell 50 jar tickets[,] or deals of bell jar tickets, or purchase or lease any 51 electronic bell jar vending machine, from any other person or organiza- 52 tion other than those specifically authorized under sections one hundred 53 ninety-five-n and one hundred ninety-five-o of this article. 54 § 5. The opening paragraph of section 189-a of the general municipal 55 law, as amended by chapter 164 of the laws of 2003, is amended to read 56 as follows:S. 994--B 3 1 No person, firm, partnership, corporation or organization, shall sell 2 or distribute supplies or equipment specifically designed or adapted for 3 use in conduct of games of chance without having first obtained a 4 license therefor upon written application made, verified and filed with 5 the [board] commission in the form prescribed by the rules and regu- 6 lations of the [board] commission. As a part of its determination 7 concerning the applicant's suitability for licensing as a games of 8 chance supplier, the [board] commission shall require the applicant to 9 furnish to the [board] commission two sets of fingerprints. Such fing- 10 erprints shall be submitted to the division of criminal justice services 11 for a state criminal history record check, as defined in subdivision one 12 of section three thousand thirty-five of the education law, and may be 13 submitted to the federal bureau of investigation for a national criminal 14 history record check. Manufacturers of bell jar tickets shall be consid- 15 ered suppliers of such equipment. In each such application for a license 16 under this section shall be stated the name and address of the appli- 17 cant; the names and addresses of its officers, directors, shareholders 18 or partners; the amount of gross receipts realized on the sale and 19 rental of games of chance supplies and equipment to duly licensed 20 authorized organizations during the last preceding calendar or fiscal 21 year, and such other information as shall be prescribed by such rules 22 and regulations. The fee for such license shall be a sum equal to twen- 23 ty-five dollars plus an amount equal to two per centum of the gross 24 sales and rentals, if any, of games of chance equipment and supplies to 25 authorized organizations or authorized games of chance lessors by the 26 applicant during the preceding calendar year, or fiscal year if the 27 applicant maintains his accounts on a fiscal year basis; provided, 28 however, that for manufacturers of electronic bell jar vending machines, 29 the fee for such license shall be one thousand dollars. No license 30 granted pursuant to the provisions of this section shall be effective 31 for a period of more than one year. 32 § 6. Section 195-c of the general municipal law is amended by adding 33 three new subdivisions 3, 4, and 5 to read as follows: 34 3. Each electronic bell jar vending machine that has been approved by 35 the commission pursuant to paragraph (b) of subdivision nine of section 36 one hundred eighty-eight-a of this article shall have the ability to: 37 (a) read a barcode or similar form of encryption or marking on the 38 pre-printed bell jar ticket; 39 (b) reveal results and other game information through audio and video 40 displays; 41 (c) verify if a bell jar ticket is redeemable for a prize; 42 (d) electronically aggregate winning prizes for continued play; 43 (e) produce a voucher for prize redemption; and 44 (f) track the sales of tickets and report such sales to the commis- 45 sion. 46 4. The following information shall be displayed by each electronic 47 bell jar vending machine: 48 (a) the total number of tickets in each deal; 49 (b) the price of each ticket; 50 (c) the number and amount of prizes available or remaining in each 51 deal; 52 (d) the number and amounts of prizes that have been claimed in each 53 deal; 54 (e) the number of winners per ticket and its respective winning 55 numbers or symbols; 56 (f) the name of the game; andS. 994--B 4 1 (g) the name or logo of the manufacturer of the tickets. 2 5. When a voucher is produced by an electronic bell jar vending 3 machine for prize redemption, the following information shall appear on 4 such voucher: 5 (a) the aggregate prize amount payable to the player; 6 (b) the value of any unused tickets; 7 (c) the device number or other identification method for the vending 8 machine that produced such voucher; 9 (d) the date and time that such voucher was printed; 10 (e) the sequential number of such voucher; 11 (f) a barcode or similar form of encryption that may be used to vali- 12 date the prize amount payable to the player; and 13 (g) the period of time during which unused tickets or prize amounts 14 must be claimed. 15 § 7. Subdivisions 1 and 4 of section 195-n of the general municipal 16 law, as amended by chapter 637 of the laws of 1999, are amended to read 17 as follows: 18 1. Distribution; manufacturers. For business conducted in this state, 19 manufacturers licensed by the [board] commission to sell bell jar tick- 20 ets or electric bell jar vending machines shall sell only such tickets 21 or vending machines to distributors licensed by the [board] commission. 22 Manufacturers of bell jar tickets, seal cards, merchandise boards, and 23 coin boards may submit samples, artists' renderings, or color photoco- 24 pies of proposed bell jar tickets, seal cards, merchandise boards, coin 25 boards, payout cards, and flares for review and approval by the [board] 26 commission. Within thirty days of receipt of such sample or rendering, 27 the [board] commission shall approve or deny such bell jar tickets. 28 Following approval of a rendering of a bell jar ticket, seal card, 29 merchandise board, or coin board by the [board] commission, the manufac- 30 turer shall submit to the [board] commission a sample of the printed 31 bell jar ticket, seal card, merchandise board, coin board, payout card, 32 and flare for such game. Such sample shall be submitted prior to the 33 sale of the game to any licensed distributor for resale in this state. 34 For coin boards and merchandise boards, nothing herein shall require the 35 submittal of actual coins or merchandise as part of the approval proc- 36 ess. Any licensed manufacturer who willfully violates the provisions of 37 this section shall: (a) upon such first offense, have their license 38 suspended for a period of thirty days; (b) upon such second offense, 39 participate in a hearing to be conducted by the [board] commission, and 40 surrender their license for such period as recommended by the [board] 41 commission; and (c) upon such third or subsequent offense, have their 42 license suspended for a period of one year and shall be guilty of a 43 class E felony. Any unlicensed manufacturer who violates the provisions 44 of this section shall be guilty of a class E felony. 45 4. Reports of sales. A manufacturer who sells bell jar tickets for 46 resale in this state shall file with the [board] commission, on a form 47 prescribed by the [board] commission a report of all bell jar tickets 48 sold to distributors in the state. The report shall be filed quarterly 49 on or before the twentieth day of the month succeeding the end of the 50 quarter in which the sale was made. The [board] commission may require 51 that the report be submitted via magnetic media or electronic data 52 transfer. Such report shall also include information regarding any elec- 53 tronic bell jar vending machines sold or leased to a distributor 54 licensed by the commission. 55 § 8. Subdivisions 1, 3, 4, and 5 of section 195-o of the general 56 municipal law, subdivision 1 as amended by chapter 637 of the laws ofS. 994--B 5 1 1999, subdivisions 3 and 4 as added by chapter 309 of the laws of 1996 2 and subdivision 5 as amended by section 16 of part MM of chapter 59 of 3 the laws of 2017, are amended to read as follows: 4 1. Distribution; distributors. Any distributor licensed in accordance 5 with section one hundred eighty-nine-a of this article to distribute 6 bell jar tickets or electronic bell jar vending machines shall purchase 7 [bell jar] such tickets and vending machines only from licensed manufac- 8 turers and may manufacture coin boards and merchandise boards only as 9 authorized in subdivision one-a of this section. Licensed distributors 10 of bell jar tickets and electronic bell jar vending machines shall sell 11 such tickets and vending machines only to not-for-profit, charitable or 12 religious organizations registered by the [board] commission. Any 13 licensed distributor who willfully violates the provisions of this 14 section shall: (a) upon such first offense, have their license suspended 15 for a period of thirty days; (b) upon such second offense, participate 16 in a hearing to be conducted by the [board] commission, and surrender 17 their license for such period as recommended by the [board] commission; 18 and (c) upon such third or subsequent offense, have their license 19 suspended for a period of one year and shall be guilty of a class E 20 felony. Any unlicensed distributor who violates this section shall be 21 guilty of a class E felony. 22 3. Sales records. A distributor shall maintain a record of all bell 23 jar tickets that it sells and all electronic bell jar vending machines 24 that it sells or leases. The record shall include, but need not be 25 limited to: 26 (a) the identity of the manufacturer from whom the distributor 27 purchased the product; 28 (b) the serial number of the product; 29 (c) the name, address, and license or exempt permit number of the 30 organization or person to which the sale was made; 31 (d) the date of the sale; 32 (e) the name of the person who ordered the product; 33 (f) the name of the person who received the product; 34 (g) the type of product; 35 (h) the serial number of the product; 36 (i) the account number identifying the sale from the manufacturer to 37 distributor and the account number identifying the sale from the 38 distributor to the licensed organization; and 39 (j) the name, form number, or other identifying information for each 40 game. 41 4. Invoices. (a) A distributor shall supply with each sale of a bell 42 jar product an itemized invoice showing the distributor's name and 43 address, the purchaser's name, address, and license number, the date of 44 the sale, the account number identifying the sale from the manufacturer 45 to distributor and the account number identifying the sale from the 46 distributor to the licensed organization, and the description of the 47 deals, including the form number, the serial number and the ideal gross 48 from every deal of bell jar or similar game. 49 (b) Within five business days after the sale, lease, or distribution 50 of an electronic bell jar vending machine to an authorized organization, 51 the distributor shall provide a copy of an invoice to the commission 52 which shows: 53 (i) the name and address of the authorized organization; 54 (ii) the date of sale, lease or distribution; 55 (iii) the serial number of each such machine; and 56 (iv) any additional information as the commission may require.S. 994--B 6 1 5. Reports. A distributor shall report quarterly to the gaming commis- 2 sion, on a form prescribed by the gaming commission, its sales of each 3 type of bell jar deal or tickets and electronic bell jar vending 4 machines. This report shall be filed quarterly on or before the twenti- 5 eth day of the month succeeding the end of the quarter in which the sale 6 was made. The gaming commission may require that a distributor submit 7 the quarterly report and invoices required by this section via electron- 8 ic media or electronic data transfer. 9 § 9. Section 195-q of the general municipal law is amended by adding a 10 new subdivision 3 to read as follows: 11 3. (a) An authorized organization may only operate electronic bell jar 12 vending machines on premises that it owns or leases. 13 (b) An authorized organization whose premises is within the jurisdic- 14 tional boundaries defined in subdivision two of section thirteen hundred 15 eleven of the racing, pari-mutuel wagering and breeding law may operate 16 no more than five electronic bell jar vending machines. An authorized 17 organization whose premises is outside the jurisdictional boundaries 18 defined in subdivision two of section thirteen hundred eleven of the 19 racing, pari-mutuel wagering and breeding law may operate no more than 20 ten electronic bell jar vending machines. In no situation may more than 21 five electronic bell jar machines be operated at any leased premises, no 22 matter how many authorized organizations are co-lessees. 23 (c) No authorized organization whose premises is within the jurisdic- 24 tional boundaries defined in subdivision two of section thirteen hundred 25 eleven of the racing, pari-mutuel wagering and breeding law may operate 26 electronic bell jar vending machines unless they were a games of chance 27 licensee prior to the effective date of the chapter of the laws of two 28 thousand eighteen which added this subdivision. No authorized organiza- 29 tion whose premises is outside the jurisdictional boundaries defined in 30 subdivision two of section thirteen hundred eleven of the racing, pari- 31 mutuel wagering and breeding law may operate electronic bell jar vending 32 machines unless they have been a games of chance licensee for the previ- 33 ous five years. The provisions of this paragraph shall not apply to any 34 authorized organization which is a successor organization to an author- 35 ized organization which was a games of chance licensee prior to the 36 effective date of the chapter of the laws of two thousand eighteen which 37 added this subdivision. 38 (d) Each bell jar vending machine shall generate sales reports and 39 such other information that the commission may direct by regulation in 40 order to determine that such machine is operating in accordance with the 41 provisions of this chapter. The commission shall have access to the 42 server of each electronic bell jar vending machine for the purpose of 43 monitoring and auditing at no cost to the state. 44 (e) Any unclaimed funds or tickets left in any electronic bell jar 45 vending machine shall be retained by the authorized organization and 46 reported as net proceeds. 47 § 10. This act shall take effect on the one hundred eightieth day 48 after it shall have become a law.
