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

                                   959

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 8, 2015
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Racing and Wagering

AN ACT to amend the general municipal law, in relation to the conducting
  of games of chance by certain organizations

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

  Section  1. Subdivisions 4 and 6 of section 186 of the general munici-
pal law, as amended by chapter 574 of the laws of 1978, are amended  and
two new subdivisions 4-a and 22 are added to read as follows:
  4.  "Authorized  organization"  shall  mean  and include any bona fide
religious or charitable organization or bona fide educational, fraternal
or service organization or bona  fide  organization  of  veterans  [or],
volunteer  [firemen]  FIREFIGHTERS OR VOLUNTEER AMBULANCE WORKERS, which
by its charter, certificate of incorporation, constitution,  or  act  of
the  legislature,  shall have among its dominant purposes one or more of
the lawful purposes as defined in this article, provided that each shall
operate without profit to its  members,  and  provided  that  each  such
organization  has  engaged in serving one or more of the lawful purposes
as defined in this article for a period  of  three  years  [immediatley]
IMMEDIATELY prior to applying for a license under this article.
  No  organization  shall  be deemed an authorized organization which is
formed primarily for the purpose of conducting games of chance and which
does not devote at least seventy-five percent of its activities to other
than conducting games of chance. No political party shall be  deemed  an
authorized organization.
  4-A.  "AUXILIARY MEMBER" SHALL MEAN A BONA FIDE MEMBER OF AN ORGANIZA-
TION  OR  ASSOCIATION  WHICH  IS AUXILIARY TO AN AUTHORIZED ORGANIZATION
LICENSED PURSUANT TO THIS ARTICLE; OR A BONA FIDE MEMBER OF AN ORGANIZA-
TION OR ASSOCIATION OF WHICH AN AUTHORIZED ORGANIZATION LICENSED  PURSU-
ANT  TO THIS ARTICLE IS AN AUXILIARY; OR A BONA FIDE MEMBER OF AN ORGAN-
IZATION  OR  ASSOCIATION  WHICH  IS  AFFILIATED   WITH   AN   AUTHORIZED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03885-02-5
              

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ORGANIZATION LICENSED PURSUANT TO THIS ARTICLE BY BEING, WITH IT, AUXIL-
IARY TO ANOTHER ORGANIZATION OR ASSOCIATION.
  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  CONDUCTING GAMES OF CHANCE INCLUDING, BUT NOT LIMITED
TO, 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, and  [the  cost  of  bus  transportation]
REIMBURSEMENT  OF  REASONABLE EXPENSES INCURRED BY VOLUNTEERS WHO DONATE
THEIR TIME TO HOLD, OPERATE OR CONDUCT, OR ASSIST IN THE CONDUCT OF SUCH
GAMES, AND AS AUTHORIZED BY THE BOARD AND if authorized by the clerk  or
department  and (b) in relation to the gross rent received by an author-
ized 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.
  22.  "REASONABLE EXPENSES" SHALL INCLUDE, BUT NOT BE LIMITED TO, CHILD
CARE EXPENSES, TRANSPORTATION EXPENSES, MEALS  AND  OTHER  EXPENSES,  AS
DETERMINED AND REGULATED BY THE BOARD.
  S  2. Subdivisions 4, 5, 6, 8, 10 and 11 of section 189 of the general
municipal law, subdivisions 4, 10 and 11 as amended by  chapter  574  of
the  laws of 1978, subdivisions 5 and 8 as amended by chapter 455 of the
laws of 2012 and subdivision 6 as amended by chapter 302 of the laws  of
2010, are amended to read as follows:
  4.  The entire net proceeds of any game of chance shall be exclusively
devoted to the lawful purposes of the organization permitted to  conduct
the  same  and the net proceeds of any rental derived therefrom shall be
exclusively devoted to the lawful purposes of the  authorized  games  of
chance lessor; PROVIDED, HOWEVER, THAT A PERSON MAY ACCEPT REIMBURSEMENT
OF REASONABLE EXPENSES INCURRED TO MANAGE, HOLD, OPERATE OR CONDUCT SUCH
GAMES.
  5.  No single prize awarded by games of chance other than raffle shall
exceed the sum or value of [three] FOUR hundred dollars, except that for
merchandise wheels, no single prize shall exceed the  sum  or  value  of
[two]  THREE  hundred [fifty] dollars. No single prize awarded by raffle
shall exceed the sum or value of one hundred thousand dollars. 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 tick-
et or other receipt. For coin boards and merchandise boards,  the  value
of  a prize shall be determined by its costs to the authorized organiza-
tion 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 OR BELL JAR, 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 five hundred thousand 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] FIVE hundred dollars

A. 959                              3

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 author-
ized  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 two million dollars during
any one license period.
  10. No person except a bona fide member  of  the  licensed  authorized
organization  OR  AN AUXILIARY MEMBER OF SUCH ORGANIZATION shall partic-
ipate in the management of such games[; no person  except  a  bona  fide
member  of the licensed authorized organization, its auxiliary or affil-
iated organization, shall participate in the operation of such game,  as
set forth in section one hundred ninety-five-c of this article].
  11.  No person shall receive any remuneration for participating in the
management or operation of any such  game;  PROVIDED,  HOWEVER,  THAT  A
PERSON  MAY  ACCEPT  REIMBURSEMENT  OF  REASONABLE  EXPENSES INCURRED TO
MANAGE, HOLD, OPERATE OR CONDUCT GAMES OF CHANCE.
  S 3. Subparagraph 5 of paragraph (a) of subdivision 1 of  section  190
of  the  general municipal law, as amended by chapter 574 of the laws of
1978, is amended to read as follows:
  (5) the purposes to which the entire net proceeds of such games are to
be devoted and in what  manner;  that  no  commission,  salary,  compen-
sation[,]  OR  reward  [or  recompense]  will  be paid to any person for
conducting such game or games or for assisting therein except as in this
article otherwise provided; and  such  other  information  as  shall  be
prescribed by such rules and regulations.
  S  4.  Paragraph  (b)  of  subdivision 1 of section 190 of the general
municipal law, as amended by chapter 574 of the laws of 1978, is amended
to read as follows:
  (b) In each application there shall be designated not less than [four]
THREE bona fide members of the applicant  organization  under  whom  the
game  or games of chance will be managed and to the application shall be
appended a statement executed by the members so  designated,  that  they
will  be responsible for the management of such games in accordance with
the terms of the license, the rules and regulations of the  board,  this
article and the applicable local laws or ordinances.
  S  5.  Paragraph  (a) of subdivision 2 of section 190-a of the general
municipal law, as amended by chapter 400 of the laws of 2005, is amended
to read as follows:
  (a) For the purposes of this section, "authorized organization"  shall
mean  and  include any bona fide religious or charitable organization or
bona fide educational, fraternal or service organization  or  bona  fide
organization  of  veterans [or], volunteer [firefighter] FIREFIGHTERS OR
VOLUNTEER AMBULANCE WORKERS, which by its charter, certificate of incor-
poration, constitution, or act of the legislature, shall have among  its
dominant  purposes one or more of the lawful purposes as defined in this
article, provided that each shall operate without profit to its members,
and provided that each such organization has engaged in serving  one  or
more  of  the lawful purposes as defined in this article for a period of
three years immediately prior to being granted  the  filing  requirement
exemption contained in subdivision one of this section.
  S  6.  Subdivision 3 of section 190-a of the general municipal law, as
added by chapter 400 of the laws of 2005, is amended to read as follows:

A. 959                              4

  3. No person under the age of eighteen shall be  permitted  to  play[,
operate or assist] in any raffle conducted pursuant to this section.  NO
PERSON  UNDER THE AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO OPERATE OR
ASSIST IN ANY RAFFLE  CONDUCTED  PURSUANT  TO  THIS  SECTION;  PROVIDED,
HOWEVER,  THAT  A  PERSON  UNDER  THE  AGE  OF EIGHTEEN YEARS AND WHO IS
SIXTEEN YEARS OF AGE OR OLDER SHALL BE PERMITTED TO ASSIST IN ANY RAFFLE
IF ACCOMPANIED BY AN ADULT.
  S 7. Paragraph (a) of subdivision 1 of  section  191  of  the  general
municipal  law, as amended by section 15 of part LL of chapter 56 of the
laws of 2010, is amended to read as follows:
  (a) Issuance of licenses to conduct games of chance. If such clerk  or
department  shall  determine  that the applicant is duly qualified to be
licensed to conduct games of chance under this article; that the  member
or  members  of  the  applicant  designated in the application to manage
games of chance are bona fide active members of the  applicant  and  are
persons  of  good  moral  character  and  have never been convicted of a
crime, or, if convicted, have received a pardon, a certificate  of  good
conduct or a certificate of relief from disabilities pursuant to article
twenty-three  of  the  correction  law,  OR, IF CONVICTED, THE MEMBER OR
MEMBERS ARE PARTICIPATING IN A REHABILITATION PROGRAM LICENSED OR CERTI-
FIED BY A STATE AGENCY AND OPERATED BY THE  APPLICANT  OR  AN  AUXILIARY
THEREOF;  that  such  games  are  to be conducted in accordance with the
provisions of this article and in accordance with the  rules  and  regu-
lations  of  the  board and applicable local laws or ordinances and that
the proceeds thereof are to be disposed of as provided by this  article,
and if such clerk or department is satisfied that no commission, salary,
compensation[,] OR reward [or recompense] whatever will be paid or given
to  any  person  managing,  operating or assisting therein except as [in
this article] otherwise provided IN THIS ARTICLE,  INCLUDING  REIMBURSE-
MENT OF REASONABLE EXPENSES INCURRED BY VOLUNTEERS WHO DONATE THEIR TIME
TO  HOLD, OPERATE OR CONDUCT, OR ASSIST IN THE CONDUCT OF SUCH GAMES; it
shall issue a license to the applicant  for  the  conduct  of  games  of
chance  upon  payment  of  a license fee of twenty-five dollars for each
license period.
  S 8. Subdivision 3 of section 194 of the  general  municipal  law,  as
amended  by  chapter  550  of  the  laws  of 1994, is amended to read as
follows:
  3.  [Service  of  alcoholic  beverages.]  Subject  to  the  applicable
provisions  of  the alcoholic beverage control law, beer AND WINE may be
offered for sale during the conduct of  games  of  chance  on  games  of
chance  premises as such premises are defined in subdivision nineteen of
section one hundred eighty-six of this article; provided, however,  that
nothing  herein shall be construed to limit the offering for sale of any
other alcoholic beverage in areas other than the games of  chance  prem-
ises  or the sale of any other alcoholic beverage in premises where only
the games of chance known as bell jar or raffles are conducted.
  S 9. 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; conduct of games on. Except as provided in section one
hundred ninety-five-b of this article, [no] games of chance [shall]  MAY
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]  PROHIBITING the conduct of games of chance under

A. 959                              5

this article on that day [only between the hours of noon and  midnight].
Notwithstanding  the  foregoing  provisions  of this section no games of
chance shall be conducted on Easter Sunday or Christmas Day.
  S  10. Section 195-a of the general municipal law, as amended by chap-
ter 574 of the laws of 1978, is amended to read as follows:
  S 195-a. Participation by persons under eighteen. No person under  the
age  of  eighteen  years shall be permitted to play any game or games of
chance conducted pursuant to any  license  issued  under  this  article.
Persons under the age of eighteen years may be permitted to attend games
of  chance  [at  the  discretion  of the games of chance licensee].   No
person under the age of eighteen years shall be permitted to operate any
game of chance conducted pursuant to any license issued under this arti-
cle or to assist therein; PROVIDED, HOWEVER, THAT A PERSON UNDER THE AGE
OF EIGHTEEN YEARS AND WHO IS SIXTEEN YEARS OF  AGE  OR  OLDER  SHALL  BE
PERMITTED  TO  ASSIST IN THE OPERATION OF ANY GAME OF CHANCE IF ACCOMPA-
NIED BY A PARENT.
  S 11. Section 195-b of the general municipal law, as amended by  chap-
ter 252 of the laws of 1998, is amended to read as follows:
  S  195-b.  Frequency  of  games.  No game or games of chance, shall be
conducted under any license issued under this article  more  often  than
[twelve]  EIGHTEEN  times  in  any calendar year. No particular premises
shall be used for the conduct of games of chance on  more  than  twenty-
four  license  periods  during  any  one  calendar  year. Games shall be
conducted only between the hours of noon and midnight on SUNDAY, Monday,
Tuesday, Wednesday and Thursday, and only between the hours of  noon  on
Friday  and  two  A.M.   Saturday, and only between the hours of noon on
Saturday and two A.M.  Sunday. The two A.M. closing  period  shall  also
apply  to  a legal holiday.  The above restrictions shall not apply when
only the games of chance known as bell jar and/or raffle are conducted.
  S 12. Section 195-c of the general municipal law, as amended by  chap-
ter 252 of the laws of 1998, is amended to read as follows:
  S  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 OR AUXILIARY  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
organization or association which is affiliated  with  the  licensee  by
being, with it, auxiliary to another organization or association]. Noth-
ing  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 organization shall upon request certify,  under  oath,
that the persons operating any game of chance are bona fide OR AUXILIARY
members  of such authorized organization, auxiliary or affiliated organ-
ization. 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

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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,  REIMBURSEMENT  OF REASONABLE EXPENSES INCURRED BY VOLUN-
TEERS WHO DONATE THEIR TIME TO OPERATE OR ASSIST  IN  THE  OPERATION  OF
GAMES  OF  CHANCE  and  the cost of bus transportation, if authorized by
such clerk or department.  No  commission,  salary,  compensation[,]  OR
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.
  S 13.  Section 195-e of the general municipal law, as amended by chap-
ter 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  newspaper,  circular,
handbill  [and],  poster, ELECTRONIC MAIL, ELECTRONIC COMMUNICATIONS AND
GOVERNMENT ACCESS TELEVISION BROADCASTS, 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 additional 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, OR VOLUNTEER AMBULANCE COMPANY in and  throughout  the  community
served by such volunteer fire company or such first aid or rescue squad,
OR  VOLUNTEER  AMBULANCE COMPANY, as the case may be. All advertisements
shall be limited to the description of such event as "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  14. Subdivision 3 of section 195-f of the general municipal law, as
amended by chapter 550 of the laws  of  1994,  is  amended  to  read  as
follows:
  3.  Any authorized organization required to file an annual report with
the secretary of state pursuant to article seven-A of the executive  law
[or  the  attorney  general  pursuant  to  article eight of the estates,
powers and trusts law] shall include with such annual report a  copy  of
the statement required to be filed with the clerk or department pursuant
to subdivision one or two of this section.
  S  15. Subdivision 1 of section 195-n of the general municipal law, as
amended by chapter 637 of the laws  of  1999,  is  amended  to  read  as
follows:
  1.  Distribution; manufacturers. For business conducted in this state,
manufacturers licensed by the board to sell bell jar tickets shall  sell
only  such  tickets to distributors licensed by the board. Manufacturers
of bell jar tickets, seal cards, merchandise boards, and coin boards may
submit samples, artists' renderings, or color  photocopies  of  proposed
bell  jar  tickets,  seal cards, merchandise boards, coin boards, payout
cards, and flares for review and approval by the  board.  Within  thirty

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days  of receipt of such sample or rendering, the board 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]
PRIOR TO THE SALE OF A BELL JAR GAME, JAR TICKET, SEAL CARD, MERCHANDISE
BOARD  OR  COIN  BOARD  TO  ANY  LICENSED DISTRIBUTOR FOR RESALE IN THIS
STATE, the manufacturer shall submit to the board a sample of the print-
ed 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.]  WITHIN  FORTY-FIVE  DAYS  OF  RECEIPT OF SUCH SAMPLE, THE BOARD
SHALL APPROVE OR DENY THE  BELL  JAR  TICKET,  JAR  TICKET,  SEAL  CARD,
MERCHANDISE BOARD OR COIN BOARD. For coin boards and merchandise boards,
nothing  herein  shall require the submittal of actual coins or merchan-
dise as part of the approval  process.  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, and surrender their license for such period as recommended
by  the board; 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.
  S 16. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.