NY State Senate Bill 2009-S3093

Senate Bill S3093

2009-2010 Legislative Session

Provides that authorized organizations may advertise certain raffles; increases the maximum value of certain raffle prizes to one million dollars

download bill text pdf

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to racing, gaming and wagering
Mar 10, 2009	referred to racing, gaming and wagering

2009-S3093 (ACTIVE) - Details

See Assembly Version of this Bill:: A4782
Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: General Municipal Law
Laws Affected:: Amd §§186, 189, 195 & 195-e, Gen Muni L
Versions Introduced in 2011-2012 Legislative Session:: A3249

2009-S3093 (ACTIVE) - Summary

Provides that authorized organizations may advertise certain raffles; increases the maximum value of certain raffle prizes to one million dollars.

2009-S3093 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3093

 TITLE OF BILL :
An act to amend the general municipal law, in relation to raffles
conducted within this state


 PURPOSE :
To enhance the fundraising capabilities of certain charitable
organizations, this bill would increase the maximum value of certain
raffle prizes to one million dollars; it would provide that authorized
organizations may advertise certain raffles; it allows such
organizations to raffle real property as a prize.

 SUMMARY OF PROVISIONS :
Section 1 of the bill amends section 186 of the general municipal law.
Specifically, subdivision 6 is amended to include advertising costs as
an expense when calculating the "net proceeds" of games of chance.
Subdivisions 11 and 12 are amended to add real property into the
definition of a "single prize" and a "series of prizes."

Section 2 of the bill amends section 189 of the general municipal law.
Specifically, subdivisions 5 and 6 are amended to raise the maximum
value of a single prize and series of prizes awarded by one raffle
from one-hundred thousand dollars to one million dollars. Subdivision
8 is amended to raise the maximum aggregate value of a either a single

prize series of prizes awarded in games of chance by one organization
during anyone license period from one-hundred thousand dollars to one
million dollars. Subdivision 12 is amended to permit the use of credit
cards to make purchases during games of chance.  Subdivision 13 is
amended to allow games of chance to by conducted on the premises of
media outlets, shopping malls; and, if the prize is real estate,at the
location of the real estate.

Section 3 of the bill amends section 195 of the general municipal law
allows games of chance to be conducted on days except Easter Sunday
and Christmas Day.

Section 4 of the bill amends section 195-e of the general municipal
law to advertising for games of chance through means of television,
radio, internet and direct mail.

 JUSTIFICATION :
This bill would significantly enhance the fundraising capabilities of
charitable organizations in New York, most significantly, by amending
the Raffle law to allow such organizations to raffle off real property
as a prize. Such raffles have proven to be an effective fund raising
mechanism throughout the country, bringing in hundreds of thousands of
dollars to fund various noble causes. Many charitable organizations in
New York already have the ability to conduct such raffles, yet are
precluded by current law to do so.

At present, a charitable organization may not raffle real property as
a prize. Further, an organization may only presently offer no more
than $100,000 worth of prizes annually, which limits the ability to
market attractive real property to potential contest participants.
Raising the cap for both a single prize, series of prize and aggregate
value of prizes awarded annually to $1 million would make it more
feasible for organizations to conduct such raffles.

This legislation allows those conducting such raffles to advertise
through all mediums, including television, radio, internet and direct
mail. Also, tickets sales would be permitted in venues such as malls,
television studios and on the actual site of the property being
raffled.

 BUDGET IMPLICATIONS :
None to the state.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S3093 (ACTIVE) - Bill Text download pdf

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

                                  3093

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 10, 2009
                               ___________

Introduced  by  Sen. VALESKY -- 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 raffles
  conducted within this state

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivisions  6, 11, and 12 of section 186 of the general
municipal law, subdivision 6 as amended by chapter 574 of  the  laws  of
1978,  subdivision 11 as amended by chapter 337 of the laws of 1998, and
subdivision 12 as amended by chapter  252  of  the  laws  of  1998,  are
amended to read as follows:
  6.  "Net  proceeds"  shall  mean (a) in relation to the gross receipts
from one or more license periods of games of  chance,  the  amount  that
shall remain after deducting the reasonable sums necessarily and actual-
ly  expended  for  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, license fees, ADVERTISING, and the cost  of
bus  transportation, if authorized by the clerk or department and (b) in
relation to the gross rent received by an  authorized  games  of  chance
lessor  for  the  use  of its premises by a game of chance licensee, the
amount that shall remain after deducting the reasonable sums necessarily
and actually expended  for  janitorial  services  and  utility  supplies
directly attributable thereto if any.
  11. "Single prize" shall mean the sum of money or fair market value of
merchandise,  PERSONAL  PROPERTY,  REAL  PROPERTY, or coins awarded to a
participant by a games of chance licensee in  any  one  operation  of  a
single type of game of chance in excess of his OR HER wager.
  12.  "Series  of  prizes" shall mean the total amount of single prizes
minus the total amount of wagers lost during the  successive  operations

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08732-01-9

S. 3093                             2

of  a  single type of game of chance, except that for merchandise wheels
and raffles, "series of prizes" shall mean the sum of cash and the  fair
market  value of merchandise, PERSONAL PROPERTY, REAL PROPERTY, OR COINS
awarded  as single prizes during the successive operations of any single
merchandise wheel or raffle. In the game of raffle, a series  of  prizes
may  include  a  percentage of the sum of cash received from the sale of
raffle tickets.
  S 2. Subdivisions 5, 6, 8, 12, and 13 of section 189  of  the  general
municipal  law,  subdivisions  5  and 6 as amended by chapter 337 of the
laws of 1998, subdivision 8 as amended by chapter 550  of  the  laws  of
1994,  subdivision  12  as added by chapter 574 of the laws of 1978, and
subdivision 13 as amended by chapter  252  of  the  laws  of  1998,  are
amended to read as follows:
  5.  No single prize awarded by games of chance other than raffle shall
exceed the sum or value  of  three  hundred  dollars,  except  that  for
merchandise wheels, no single prize shall exceed the sum or value of two
hundred  fifty  dollars.  No single prize awarded by raffle shall exceed
the sum or value of fifty thousand dollars, except  that  an  authorized
organization  may  award  by  raffle  a single prize OR SERIES OF PRIZES
having a value of up to and including  one  [hundred  thousand]  MILLION
dollars  if  its application for a license filed pursuant to section one
hundred ninety of this article includes a statement  of  its  intent  to
award  a  prize  having  such  value.   No single wager shall exceed six
dollars and for bell jars, coin boards, or merchandise boards, no single
prize shall exceed five hundred dollars  provided,  however,  that  such
limitation  shall  not apply to the amount of money or value paid by the
participant in a raffle in return for a ticket  or  other  receipt.  For
coin boards and merchandise boards, the value of a prize shall be deter-
mined  by  its  costs to the authorized organization or, if donated, its
fair market value.
  6. No authorized organization shall award a series of prizes  consist-
ing  of  cash or of merchandise with an aggregate value in excess of ten
thousand dollars during the successive operations of any one merchandise
wheel, and three thousand dollars during the  successive  operations  of
any  bell  jar,  coin  board,  or merchandise board. No series of prizes
awarded by raffle shall  have  an  aggregate  value  in  excess  of  one
[hundred  thousand]  MILLION  dollars.  For  coin boards and merchandise
boards, the value of a prize shall be determined  by  its  cost  to  the
authorized organization or, if donated, its fair market value.
  8.  Except  for merchandise wheels and raffles, no series of prizes on
any one occasion shall aggregate more than four hundred dollars when the
licensed authorized organization conducts five single types of games  of
chance  during  any  one  license period. Except for merchandise wheels,
raffles and bell jars, no series of prizes on  any  one  occasion  shall
aggregate  more  than  five hundred dollars when the licensed authorized
organization conducts less than five single types of  games  of  chance,
exclusive  of  merchandise wheels, raffles and bell jars, during any one
license period. No authorized organization shall award by raffle  prizes
with  an  aggregate  value  in  excess of one [hundred thousand] MILLION
dollars during any one license period.
  12. No authorized organization shall extend  credit  to  a  person  to
participate  in  playing  a game of chance.  THE AUTHORIZED ORGANIZATION
SHALL NOT BE DEEMED TO HAVE EXTENDED CREDIT TO  A  PERSON  IF  A  PERSON
CHARGES  PURCHASES  OF  CHANCES  USING A CREDIT CARD THAT IS ISSUED BY A
THIRD PARTY, WHICH PURCHASE IS AUTHORIZED BY THE ISSUER  OF  THE  CREDIT

S. 3093                             3

CARD  BEFORE ANY CHANCE, RECEIPT OF CHANCE, OR CONFIRMATION OF CHANCE IS
IRREVOCABLY ISSUED TO THE PURCHASER.
  13. No game of chance shall be conducted on other than the premises of
an authorized organization; A MEDIA OUTLET; A REGIONAL SHOPPING MALL; IF
THE PRIZE IS REAL ESTATE, THEN AT THE LOCATION OF THE REAL ESTATE; or an
authorized  games  of chance lessor.   Nothing herein shall prohibit the
sale of raffle tickets to the public outside the premises of an  author-
ized organization or an authorized games of chance lessor; or in munici-
palities  which  have  passed  a  local  law, ordinance or resolution in
accordance with sections one hundred eighty-seven and one hundred eight-
y-eight of this article approving the conduct of games  of  chance  that
are  located in the county in which the municipality issuing the license
is located and in the counties which are contiguous  to  the  county  in
which  the  municipality issuing the raffle license is located, provided
those municipalities have authorized the licensee, in writing,  to  sell
such  raffle  tickets  therein  and  provided,  however, that no sale of
raffle tickets shall be made more than one hundred eighty days prior  to
the  date  scheduled  for  the  occasion  at  which  the  raffle will be
conducted. The winner of any single prize  in  a  raffle  shall  not  be
required to be present at the time such raffle is conducted.
  S  3.  Section 195 of the general municipal law, as amended by chapter
461 of the laws of 2003, is amended to read as follows:
  S 195. [Sunday] HOLIDAYS; conduct of games on. [Except as provided  in
section  one  hundred  ninety-five-b of this article, no games of chance
shall be conducted under any license issued under this  article  on  the
first  day  of the week, commonly known and designated as Sunday, unless
it shall be otherwise provided in the license issued for the  conducting
thereof,  pursuant to the provisions of a local law or an ordinance duly
adopted by the governing body of the municipality wherein the license is
issued, authorizing the conduct of games of chance under this article on
that day only between the hours of noon  and  midnight.  Notwithstanding
the foregoing provisions of this section no] NO games of chance shall be
conducted on Easter Sunday or Christmas Day.
  S 4. Section 195-e of the general municipal law, as amended by chapter
94 of the laws of 1981, is amended to read as follows:
  S  195-e.  Advertising  games. A licensee may advertise the conduct of
games of chance to the general public by means of TELEVISION, RADIO, THE
ELECTRONIC MEDIA COMMONLY REFERRED TO AS THE WORLD WIDE WEB OR INTERNET,
DIRECT MAIL, newspaper, circular, handbill and poster, and by  one  sign
not  exceeding  sixty  square feet in area, which may be displayed on or
adjacent to the premises owned or  occupied  by  a  licensed  authorized
organization,  and  when an organization is licensed to conduct games of
chance on premises of an authorized games of chance  lessor,  one  addi-
tional  such  sign  may  be  displayed on or adjacent to the premises in
which the games are to be conducted.  Additional signs may be  displayed
upon  any  fire  fighting equipment belonging to any licensed authorized
organization which is a volunteer fire company, or upon any equipment of
a first aid or rescue squad in and throughout the  community  served  by
such  volunteer  fire  company or such first aid or rescue squad, as the
case may be. All advertisements shall be limited to the  description  of
such event as "RAFFLE", "Games of chance" or "Las Vegas Night", the name
of the authorized organization conducting such games, the license number
of  the  authorized  organization as assigned by the clerk or department
and the date, location and time of the event.
  S 5. This act shall take effect immediately.

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