S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1959
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sen. ADDABBO -- 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 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04113-01-3
 S. 1959                             2
              

 
   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 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] COMMISSION  or
 from  another  authorized organization. Lease terms and conditions shall
 be subject to rules and regulations promulgated by the  [board]  COMMIS-
 SION. The provisions of this article shall not be construed to authorize
 or  permit an authorized organization to engage in the business of leas-
 ing games of chance, supplies, or equipment. Furthermore,  no  organiza-
 tion 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 organization 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-
 S. 1959                             3
 
 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, 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
 S. 1959                             4
 
 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,
 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
 S. 1959                             5
 
 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-
 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
 S. 1959                             6
 
 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:
   (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 AUTHORIZED TO
 CONDUCT BELL JAR GAMES ON 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
 S. 1959                             7
 
 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.
   (F)  NO  AUTHORIZED  ORGANIZATION  MAY OPERATE ANY ELECTRONIC BELL JAR
 VENDING MACHINE WITHIN THE FOLLOWING AREA: (I) TO THE EAST, STATE  ROUTE
 FOURTEEN FROM SODUS POINT TO THE PENNSYLVANIA BORDER WITH NEW YORK; (II)
 TO  THE  NORTH,  THE  BORDER  BETWEEN  NEW YORK AND CANADA; (III) TO THE
 SOUTH, THE PENNSYLVANIA BORDER WITH NEW YORK; AND (IV) TO THE WEST,  THE
 BORDER  BETWEEN  NEW YORK AND CANADA AND THE BORDER BETWEEN PENNSYLVANIA
 AND NEW YORK.
   § 10. This act shall take effect immediately.