S T A T E O F N E W Y O R K
________________________________________________________________________
994--C
2017-2018 Regular Sessions
I N S E N A T E
January 6, 2017
___________
Introduced by Sens. BONACIC, AVELLA, 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 Wager-
ing -- 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 -- 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:
Section 1. Legislative findings and purpose. 1. The legislature here-
by 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) authorized organizations that offer bell jars and other games of
chance must meet strict standards established by the New York state
general municipal law and the New York state gaming commission, includ-
ing 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. For the aforementioned reasons, the legislature hereby declares
that authorized organizations licensed by the New York state gaming
commission to conduct charitable gaming would greatly benefit from the
ability to operate electronic bell jar vending machines, which display
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04475-10-8
S. 994--C 2
and dispense pre-printed bell jar tickets that have predetermined
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.
§ 2. Subdivision 3-a of section 186 of the general municipal law, as
amended by chapter 531 of the laws of 2011, is amended to read as
follows:
3-a. "Bell jars" shall mean and include those games in which a partic-
ipant shall draw a card from a jar, vending machine, INCLUDING AN ELEC-
TRONIC BELL JAR VENDING MACHINE, or other suitable device or container
which contains numbers, colors or symbols that are covered and which,
when uncovered, may reveal that a prize shall be awarded on the basis of
a designated winning number, color or symbol or combination of numbers,
colors or symbols. Bell jars shall also include seal cards, coin boards,
event games, and merchandise boards. AN ELECTRONIC BELL JAR VENDING
MACHINE SHALL USE ELECTRONIC FEATURES TO DISPLAY AND DISPENSE PRE-PRINT-
ED BELL JAR TICKETS, INCLUDING AUDIO AND VIDEO FEATURES TO DISPLAY
INFORMATION ABOUT A TICKET BEING DISPENSED, PROVIDED THAT SUCH FEATURES
DO NOT AFFECT THE OUTCOME OF THE GAME.
§ 3. Subdivision 9 of section 188-a of the general municipal law, as
added by chapter 960 of the laws of 1976, is amended to read as follows:
9. (A) The [board] COMMISSION shall have the power to approve and
establish a standard set of games of chance equipment and shall by its
rules and regulations prescribe the manner in which such equipment is to
be reproduced and distributed to licensed authorized organizations. The
sale or distribution to a licensed authorized organization of any equip-
ment other than that contained in the standard set of games of chance
equipment shall constitute a violation of this section.
(B) AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
SAND EIGHTEEN THAT AMENDED THIS SUBDIVISION, NO ELECTRONIC BELL JAR
VENDING MACHINE SHALL BE SOLD, LEASED, DISTRIBUTED, INSTALLED, OR OPER-
ATED BY ANY MANUFACTURER, DISTRIBUTOR, OR CHARITABLE ORGANIZATION UNTIL
SUCH MACHINE HAS BEEN APPROVED BY THE COMMISSION. NO ELECTRONIC BELL
JAR VENDING MACHINE SHALL BE APPROVED BY THE COMMISSION UNLESS THE OPER-
ATION OF THE GAME DEMONSTRATES THAT THERE IS A FINITE PROBABILITY BASIS
OF HAVING A PREDETERMINED QUANTITY OF CHANCES AMONG WHICH THERE IS A
PREDETERMINED QUANTITY OF WINNERS THAT PAY A FIXED AND PREDETERMINED
VALUE OF PRIZES, REGARDLESS OF THE SYMBOLS THAT ARE USED OR HOW THOSE
SYMBOLS ARE DISPLAYED ON PRE-PRINTED BELL JAR TICKETS.
§ 4. Subdivision 3 of section 189 of the general municipal law, as
amended by chapter 337 of the laws of 1998, is amended to read as
follows:
3. No authorized organization licensed under the provisions of this
article shall purchase, lease, or receive any supplies or equipment
specifically designed or adapted for use in the conduct of games of
chance from other than a supplier licensed by the board or from another
authorized organization. Lease terms and conditions shall be subject to
rules and regulations promulgated by the board. The provisions of this
article shall not be construed to authorize or permit an authorized
organization to engage in the business of leasing games of chance,
supplies, or equipment. Furthermore, no organization shall purchase bell
jar tickets[,] or deals of bell jar tickets, OR PURCHASE OR LEASE ANY
ELECTRONIC BELL JAR VENDING MACHINE, from any other person or organiza-
tion other than those specifically authorized under sections one hundred
ninety-five-n and one hundred ninety-five-o of this article.
S. 994--C 3
§ 5. The opening paragraph of section 189-a of the general municipal
law, as amended by chapter 164 of the laws of 2003, is amended to read
as follows:
No person, firm, partnership, corporation or organization, shall sell
or distribute supplies or equipment specifically designed or adapted for
use in conduct of games of chance without having first obtained a
license therefor upon written application made, verified and filed with
the [board] COMMISSION in the form prescribed by the rules and regu-
lations of the [board] COMMISSION. As a part of its determination
concerning the applicant's suitability for licensing as a games of
chance supplier, the [board] COMMISSION shall require the applicant to
furnish to the [board] COMMISSION two sets of fingerprints. Such fing-
erprints shall be submitted to the division of criminal justice services
for a state criminal history record check, as defined in subdivision one
of section three thousand thirty-five of the education law, and may be
submitted to the federal bureau of investigation for a national criminal
history record check. Manufacturers of bell jar tickets shall be consid-
ered suppliers of such equipment. In each such application for a license
under this section shall be stated the name and address of the appli-
cant; the names and addresses of its officers, directors, shareholders
or partners; the amount of gross receipts realized on the sale and
rental of games of chance supplies and equipment to duly licensed
authorized organizations during the last preceding calendar or fiscal
year, and such other information as shall be prescribed by such rules
and regulations. The fee for such license shall be a sum equal to twen-
ty-five dollars plus an amount equal to two per centum of the gross
sales and rentals, if any, of games of chance equipment and supplies to
authorized organizations or authorized games of chance lessors by the
applicant during the preceding calendar year, or fiscal year if the
applicant maintains his accounts on a fiscal year basis; PROVIDED,
HOWEVER, THAT FOR MANUFACTURERS OF ELECTRONIC BELL JAR VENDING MACHINES,
THE FEE FOR SUCH LICENSE SHALL BE ONE THOUSAND DOLLARS. No license
granted pursuant to the provisions of this section shall be effective
for a period of more than one year.
§ 6. Section 195-c of the general municipal law is amended by adding
three new subdivisions 3, 4, and 5 to read as follows:
3. EACH ELECTRONIC BELL JAR VENDING MACHINE THAT HAS BEEN APPROVED BY
THE COMMISSION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION NINE OF SECTION
ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE SHALL HAVE THE ABILITY TO:
(A) READ A BARCODE OR SIMILAR FORM OF ENCRYPTION OR MARKING ON THE
PRE-PRINTED BELL JAR TICKET;
(B) REVEAL RESULTS AND OTHER GAME INFORMATION THROUGH AUDIO AND VIDEO
DISPLAYS;
(C) VERIFY IF A BELL JAR TICKET IS REDEEMABLE FOR A PRIZE;
(D) ELECTRONICALLY AGGREGATE WINNING PRIZES FOR CONTINUED PLAY;
(E) PRODUCE A VOUCHER FOR PRIZE REDEMPTION; AND
(F) TRACK THE SALES OF TICKETS AND REPORT SUCH SALES TO THE COMMIS-
SION.
4. THE FOLLOWING INFORMATION SHALL BE DISPLAYED BY EACH ELECTRONIC
BELL JAR VENDING MACHINE:
(A) THE TOTAL NUMBER OF TICKETS IN EACH DEAL;
(B) THE PRICE OF EACH TICKET;
(C) THE NUMBER AND AMOUNT OF PRIZES AVAILABLE OR REMAINING IN EACH
DEAL;
(D) THE NUMBER AND AMOUNTS OF PRIZES THAT HAVE BEEN CLAIMED IN EACH
DEAL;
S. 994--C 4
(E) THE NUMBER OF WINNERS PER TICKET AND ITS RESPECTIVE WINNING
NUMBERS OR SYMBOLS;
(F) THE NAME OF THE GAME; AND
(G) THE NAME OR LOGO OF THE MANUFACTURER OF THE TICKETS.
5. WHEN A VOUCHER IS PRODUCED BY AN ELECTRONIC BELL JAR VENDING
MACHINE FOR PRIZE REDEMPTION, THE FOLLOWING INFORMATION SHALL APPEAR ON
SUCH VOUCHER:
(A) THE AGGREGATE PRIZE AMOUNT PAYABLE TO THE PLAYER;
(B) THE VALUE OF ANY UNUSED TICKETS;
(C) THE DEVICE NUMBER OR OTHER IDENTIFICATION METHOD FOR THE VENDING
MACHINE THAT PRODUCED SUCH VOUCHER;
(D) THE DATE AND TIME THAT SUCH VOUCHER WAS PRINTED;
(E) THE SEQUENTIAL NUMBER OF SUCH VOUCHER;
(F) A BARCODE OR SIMILAR FORM OF ENCRYPTION THAT MAY BE USED TO VALI-
DATE THE PRIZE AMOUNT PAYABLE TO THE PLAYER; AND
(G) THE PERIOD OF TIME DURING WHICH UNUSED TICKETS OR PRIZE AMOUNTS
MUST BE CLAIMED.
§ 7. Subdivisions 1 and 4 of section 195-n of the general municipal
law, as amended by chapter 637 of the laws of 1999, are amended to read
as follows:
1. Distribution; manufacturers. For business conducted in this state,
manufacturers licensed by the [board] COMMISSION to sell bell jar tick-
ets OR ELECTRIC BELL JAR VENDING MACHINES shall sell only such tickets
OR VENDING MACHINES to distributors licensed by the [board] COMMISSION.
Manufacturers of bell jar tickets, seal cards, merchandise boards, and
coin boards may submit samples, artists' renderings, or color photoco-
pies of proposed bell jar tickets, seal cards, merchandise boards, coin
boards, payout cards, and flares for review and approval by the [board]
COMMISSION. Within thirty days of receipt of such sample or rendering,
the [board] COMMISSION 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] COMMISSION, the manufac-
turer shall submit to the [board] COMMISSION a sample of the printed
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.
For coin boards and merchandise boards, nothing herein shall require the
submittal of actual coins or merchandise as part of the approval proc-
ess. 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] COMMISSION, and
surrender their license for such period as recommended by the [board]
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 unlicensed manufacturer who violates the provisions
of this section shall be guilty of a class E felony.
4. Reports of sales. A manufacturer who sells bell jar tickets for
resale in this state shall file with the [board] COMMISSION, on a form
prescribed by the [board] COMMISSION a report of all bell jar tickets
sold to distributors in the state. The report shall be filed quarterly
on or before the twentieth day of the month succeeding the end of the
quarter in which the sale was made. The [board] COMMISSION may require
that the report be submitted via magnetic media or electronic data
transfer. SUCH REPORT SHALL ALSO INCLUDE INFORMATION REGARDING ANY ELEC-
S. 994--C 5
TRONIC BELL JAR VENDING MACHINES SOLD OR LEASED TO A DISTRIBUTOR
LICENSED BY THE COMMISSION.
§ 8. Subdivisions 1, 3, 4, and 5 of section 195-o of the general
municipal law, subdivision 1 as amended by chapter 637 of the laws of
1999, subdivisions 3 and 4 as added by chapter 309 of the laws of 1996
and subdivision 5 as amended by section 16 of part MM of chapter 59 of
the laws of 2017, 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
[bell jar] SUCH tickets AND VENDING MACHINES only from licensed manufac-
turers and may manufacture coin boards and merchandise boards only as
authorized in subdivision one-a of this section. Licensed distributors
of bell jar tickets AND ELECTRONIC BELL JAR VENDING MACHINES shall sell
such tickets AND VENDING MACHINES only to not-for-profit, charitable or
religious organizations registered by the [board] COMMISSION. 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 [board] COMMISSION, and surrender
their license for such period as recommended by the [board] 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 unlicensed distributor who violates this section shall be
guilty of a class E felony.
3. Sales records. A distributor shall maintain a record of all bell
jar tickets that it sells AND ALL ELECTRONIC BELL JAR VENDING MACHINES
THAT IT SELLS OR LEASES. The record shall include, but need not be
limited to:
(a) the identity of the manufacturer from whom the distributor
purchased the product;
(b) the serial number of the product;
(c) the name, address, and license or exempt permit number of the
organization or person to which the sale was made;
(d) the date of the sale;
(e) the name of the person who ordered the product;
(f) the name of the person who received the product;
(g) the type of product;
(h) the serial number of the product;
(i) the account number identifying the sale from the manufacturer to
distributor and the account number identifying the sale from the
distributor to the licensed organization; and
(j) the name, form number, or other identifying information for each
game.
4. Invoices. (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 manufacturer
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) WITHIN FIVE BUSINESS DAYS AFTER THE SALE, LEASE, OR DISTRIBUTION
OF AN ELECTRONIC BELL JAR VENDING MACHINE TO AN AUTHORIZED ORGANIZATION,
THE DISTRIBUTOR SHALL PROVIDE A COPY OF AN INVOICE TO THE COMMISSION
WHICH SHOWS:
S. 994--C 6
(I) THE NAME AND ADDRESS OF THE AUTHORIZED ORGANIZATION;
(II) THE DATE OF SALE, LEASE OR DISTRIBUTION;
(III) THE SERIAL NUMBER OF EACH SUCH MACHINE; AND
(IV) ANY ADDITIONAL INFORMATION AS THE COMMISSION MAY REQUIRE.
5. Reports. A distributor shall report quarterly to the gaming commis-
sion, on a form prescribed by the gaming commission, its sales of each
type of bell jar deal or tickets AND ELECTRONIC BELL JAR VENDING
MACHINES. This report shall be filed quarterly on or before the twenti-
eth day of the month succeeding the end of the quarter in which the sale
was made. The gaming commission may require that a distributor submit
the quarterly report and invoices required by this section via electron-
ic media or electronic data transfer.
§ 9. Section 195-q of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
3. (A) AN AUTHORIZED ORGANIZATION MAY ONLY OPERATE ELECTRONIC BELL JAR
VENDING MACHINES ON PREMISES THAT IT OWNS OR LEASES.
(B) AN AUTHORIZED ORGANIZATION MAY OPERATE NO MORE THAN FIVE ELECTRON-
IC BELL JAR VENDING MACHINES. IN NO SITUATION MAY MORE THAN FIVE ELEC-
TRONIC BELL JAR MACHINES BE OPERATED AT ANY LEASED PREMISES, NO MATTER
HOW MANY AUTHORIZED ORGANIZATIONS ARE CO-LESSEES.
(C) NO AUTHORIZED ORGANIZATION MAY OPERATE ELECTRONIC BELL JAR VENDING
MACHINES UNLESS THEY WERE A GAMES OF CHANCE LICENSEE AND CONDUCTED BELL
JAR GAMES PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION. THE
PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO ANY MILITARY OR VETERANS
ORGANIZATION NAMED IN SUBDIVISIONS NINE, THIRTY, THIRTY-A, THIRTY-SEVEN,
THIRTY-EIGHT, THIRTY-EIGHT-A, THIRTY-EIGHT-B, THIRTY-NINE, FORTY,
FORTY-ONE, FORTY-TWO, FORTY-THREE, FORTY-FOUR, FORTY-FIVE, FORTY-FIVE-A,
FORTY-SEVEN, FIFTY-THREE, FIFTY-FOUR, OR FIFTY-NINE OF SECTION TWO OF
THE BENEVOLENT ORDERS LAW, NOR SHALL IT APPLY TO AN AUTHORIZED ORGANIZA-
TION WHICH IS A SUCCESSOR ORGANIZATION TO AN AUTHORIZED ORGANIZATION
WHICH WAS A GAMES OF CHANCE LICENSEE AND CONDUCTED BELL JAR GAMES PRIOR
TO THE EFFECTIVE DATE OF THIS SUBDIVISION.
(D) EACH BELL JAR VENDING MACHINE SHALL GENERATE SALES REPORTS AND
SUCH OTHER INFORMATION THAT THE COMMISSION MAY DIRECT BY REGULATION IN
ORDER TO DETERMINE THAT SUCH MACHINE IS OPERATING IN ACCORDANCE WITH THE
PROVISIONS OF THIS CHAPTER. THE COMMISSION SHALL HAVE ACCESS TO THE
SERVER OF EACH ELECTRONIC BELL JAR VENDING MACHINE FOR THE PURPOSE OF
MONITORING AND AUDITING AT NO COST TO THE STATE.
(E) 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.
§ 10. This act shall take effect on the one hundred eightieth day
after it shall have become a law.
