S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4697
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 5, 2019
                                ___________
 
 Introduced  by  M.  of  A.  PRETLOW,  HAWLEY,  DiPIETRO -- read once and
   referred to the Committee on Racing and Wagering
 
 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
 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04879-01-9

 A. 4697                             2
 
 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 THIS PARAGRAPH, 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.
   §  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

 A. 4697                             3
 
 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, as amended by chapter
 252 of the laws of 1998, is amended to read as follows:
   § 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 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 licen-
 see is an auxiliary or a bona fide member of an organization or  associ-
 ation which is affiliated with the licensee by being, with it, auxiliary
 to   another  organization  or  association.  Nothing  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 organiza-
 tion shall upon request certify, under oath, that the persons  operating
 any  game  of  chance are bona fide members of such authorized organiza-
 tion, auxiliary or affiliated organization. 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 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, and the cost of bus transportation,
 if authorized by  such  clerk  or  department.  No  commission,  salary,

 A. 4697                             4
 
 compensation,  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.
   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;
   (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.

 A. 4697                             5
 
 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-
 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;

 A. 4697                             6
 
   (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:
   (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

 A. 4697                             7
 
 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.