S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6970
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2025
                                ___________
 
 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 tax law, in relation to unsold instant lottery game
   tickets
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision b of section 1604 of the tax law, as added by
 chapter 92 of the laws of 1976, is amended to read as follows:
   b. 1. The division is authorized to license agents to sell tickets for
 the state lottery. The division may require a  bond  from  any  licensed
 agent,  in  an  amount  to be determined by the division. Every licensed
 agent shall prominently display [his] THEIR license, or a copy  thereof,
 as  may  be determined by rules and regulations of the division, in each
 place of business or activity where lottery tickets are sold.
   2. WHEN A LICENSED AGENT GOES OUT OF BUSINESS OR SELLS THEIR  BUSINESS
 TO ANOTHER PERSON AS DEFINED IN SECTION ONE THOUSAND SIX HUNDRED FIVE OF
 THIS  ARTICLE, THEIR LICENSE SHALL EXPIRE AND ANY UNSOLD INSTANT LOTTERY
 GAME TICKETS IN THEIR POSSESSION SHALL BE RETURNED TO THE  DIVISION  AND
 REDISTRIBUTED  TO  OTHER  LICENSED  SALES  AGENTS,  UNLESS  SUCH INSTANT
 LOTTERY GAME HAS BEEN TERMINATED BY THE COMMISSION.  FOR THE PURPOSES OF
 THIS SUBDIVISION, "INSTANT LOTTERY GAME" SHALL  MEAN  ANY  LOTTERY  GAME
 CONDUCTED  ON A GAME TICKET AUTHORIZED OR  ISSUED BY THE COMMISSION THAT
 INCLUDES ONE OR MORE INSTANT PLAY  FEATURES, SUCH AS  RUB-OFF  COATINGS,
 PULL-TABS,  OR  OTHER CONCEALED PLAY  AREAS, WHICH, WHEN REVEALED, INDI-
 CATE WHETHER THE PLAYER HAS WON A  PRIZE.
   § 2. Section 1607 of the tax law, as amended by chapter 2 of the  laws
 of  1995,  subdivision  g  as  added by chapter 701 of the laws of 1996,
 subdivision h as amended by chapter 162 of the laws of 2002, paragraph 1
 of subdivision h as amended by section 7 of part EE of chapter 56 of the
 laws of 2020, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10449-05-5
              

 S. 6970                             2
 
   § 1607. Suspension and revocation of licenses.  A.  The  division  may
 suspend  or revoke, after notice and an opportunity for a hearing pursu-
 ant to the state administrative procedure act, any license issued pursu-
 ant to this article. Such license may, however, be temporarily suspended
 by  the division without prior notice, pending any prosecution, investi-
 gation or hearing. A license may be suspended or revoked by the division
 for one or more of the following reasons:
   [a.] 1. Failure  to  account  for  lottery  tickets  received  or  the
 proceeds of the sale of lottery tickets or to file a bond if required by
 the  division  or to comply with instructions of the division concerning
 the licensed activity;
   [b.] 2. Conviction of any offense as defined in the penal law, or  any
 felony  under  the  laws  of  the United States or under the laws of the
 state of New York or any other state  or  foreign  jurisdiction  or  any
 crime relating to gaming activities;
   [c.]  3.  Failure  to file any return or report, to keep records or to
 pay any tax required by any article of this chapter;
   [d.] 4. Fraud, deceit, misrepresentation  or  conduct  prejudicial  to
 public confidence in the state lottery;
   [e.]  5.  With respect to a lottery sales agent, the number of lottery
 tickets sold by the lottery sales agent is insufficient to meet adminis-
 trative costs and public  convenience  is  adequately  served  by  other
 licensees;
   [f.] 6. A material change, since issuance of the license, with respect
 to  any matters required to be considered by the division under subdivi-
 sion d or e of section sixteen hundred five of this article[.];
   [g.] 7. Conviction for misuse of food stamps pursuant to  section  one
 hundred forty-seven of the social services law[.]; OR
   [h.]  8. A violation of article thirteen-F of the public health law as
 provided in this subdivision:
   [1.] (I) A license shall be suspended for a period of  one  year  upon
 notification  to the division by the commissioner of health of a lottery
 sales agent's accumulation of three or more points pursuant to  subdivi-
 sion  three  of  section  thirteen  hundred ninety-nine-ee of the public
 health law.
   [2.] (II) A license shall be revoked for one year upon notification to
 the division by the commissioner of health of a  lottery  sales  agent's
 fourth violation of article thirteen-F of the public health law within a
 three year period.
   B.  IN ANY CASE IN WHICH A SALES AGENT'S LICENSE HAS BEEN SUSPENDED OR
 REVOKED, ANY UNSOLD INSTANT LOTTERY GAME TICKETS SHALL  BE  RETURNED  TO
 THE  DIVISION  AND REDISTRIBUTED TO OTHER LICENSED SALES AGENTS FOR SALE
 TO THE PUBLIC, UNLESS SUCH INSTANT LOTTERY GAME HAS BEEN  TERMINATED  BY
 THE COMMISSION. FOR THE PURPOSES OF THIS SECTION, "INSTANT LOTTERY GAME"
 SHALL  MEAN  ANY  LOTTERY  GAME CONDUCTED ON A GAME TICKET AUTHORIZED OR
 ISSUED BY  THE  COMMISSION  THAT  INCLUDES  ONE  OR  MORE  INSTANT  PLAY
 FEATURES,  SUCH  AS RUB-OFF COATINGS, PULL-TABS, OR OTHER CONCEALED PLAY
 AREAS, WHICH, WHEN REVEALED, INDICATE  WHETHER  THE  PLAYER  HAS  WON  A
 PRIZE.
   § 3. This act shall take effect immediately.