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A07475 Summary:

BILL NOA07475B
 
SAME ASNo Same As
 
SPONSORWoerner
 
COSPNSRButtenschon, Kay, Sayegh, Santabarbara
 
MLTSPNSR
 
Amd §§186, 188-a, 189, 189-a, 195-c, 195-n, 195-o & 195-q, Gen Muni L
 
Relates to authorizing and regulating the use of electronic bell jar vending machines; requires responsible placement and operation of electronic bell jar vending machines; allows for geographic considerations for such machine placement.
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A07475 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7475--B
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 28, 2025
                                       ___________
 
        Introduced  by  M. of A. WOERNER, BUTTENSCHON, KAY, SAYEGH, SANTABARBARA
          -- read once and referred to the Committee on Racing and  Wagering  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- reported and referred to the  Commit-
          tee  on Codes -- 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:
 
     1    Section 1. Legislative findings and purpose. 1. The legislature hereby
     2  finds that:
     3    (a) bell jar games are a popular and profitable fundraising  mechanism
     4  for  bona fide not-for-profit organizations across the state, generating
     5  millions of dollars in net revenues for charitable purposes every year;
     6    (b) authorized organizations that offer bell jars and other  games  of
     7  chance  must  meet  strict  standards  established by the New York state
     8  general municipal law and the New York state gaming commission,  includ-
     9  ing receiving a license to conduct charitable gaming activities; and
    10    (c)  while  other  types of gaming in New York state have continued to
    11  expand and improve, the operation of charitable  gaming  activities  has
    12  largely remained the same over the last several decades.
    13    2. (a) For the aforementioned reasons, the legislature hereby declares
    14  that  authorized  organizations  licensed  by  the New York state gaming
    15  commission to conduct charitable gaming would greatly benefit  from  the
    16  ability  to  operate electronic bell jar vending machines, which display
    17  and dispense  pre-printed  bell  jar  tickets  that  have  predetermined
    18  winners  and  predetermined values for prizes, in order to help increase
    19  charitable gaming profits across the state and attract more  members  to
    20  join such organizations; and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11287-10-5

        A. 7475--B                          2
 
     1    (b)  Provided  further, the legislature also declares that this legis-
     2  lation includes appropriate safeguards to ensure  that  electronic  bell
     3  jar  vending  machines remain a limited and controlled fundraising tool,
     4  distinct from video lottery terminals or slot  machines  in  design  and
     5  function.  The  machines  authorized  herein  may  only  be  operated by
     6  licensed and authorized  organizations,  are  limited  pursuant  to  the
     7  provisions  of  subdivision  6 of section 195-c of the general municipal
     8  law in order to prohibit casino-like gaming parlors, and  are  primarily
     9  for use by members of such authorized organizations.
    10    §  2.  Subdivision 3-a of section 186 of the general municipal law, as
    11  amended by chapter 531 of the laws  of  2011,  is  amended  to  read  as
    12  follows:
    13    3-a. "Bell jars" shall mean and include those games in which a partic-
    14  ipant  shall draw a card from a jar, vending machine, including an elec-
    15  tronic bell jar vending machine, or other suitable device  or  container
    16  which  contains  numbers,  colors or symbols that are covered and which,
    17  when uncovered, may reveal that a prize shall be awarded on the basis of
    18  a designated winning number, color or symbol or combination of  numbers,
    19  colors or symbols. Bell jars shall also include seal cards, coin boards,
    20  event  games,  and  merchandise  boards.  An electronic bell jar vending
    21  machine shall track the sales of tickets and any  other  information  as
    22  required  by  the commission and report such sales and other information
    23  to the commission, use electronic features to display and dispense  pre-
    24  printed  bell  jar  tickets, and may include audio and video features to
    25  display information about a ticket being dispensed, provided  that  such
    26  features shall not affect the outcome of the game.
    27    §  3.  Subdivision 9 of section 188-a of the general municipal law, as
    28  added by chapter 960 of the laws of 1976, is amended to read as follows:
    29    9. (a) The [board] commission shall have  the  power  to  approve  and
    30  establish  a  standard set of games of chance equipment and shall by its
    31  rules and regulations prescribe the manner in which such equipment is to
    32  be reproduced and distributed to licensed authorized organizations.  The
    33  sale or distribution to a licensed authorized organization of any equip-
    34  ment  other  than  that contained in the standard set of games of chance
    35  equipment shall constitute a violation of this section.
    36    (b) After the effective date of this paragraph, no electronic bell jar
    37  vending machine shall be sold, leased, distributed, installed, or  oper-
    38  ated  by any manufacturer, distributor, or charitable organization until
    39  such machine has been approved by the commission.   No  electronic  bell
    40  jar vending machine shall be approved by the commission unless the oper-
    41  ation  of the game demonstrates that there is a finite probability basis
    42  of having a predetermined quantity of chances among  which  there  is  a
    43  predetermined  quantity  of  winners  that pay a fixed and predetermined
    44  value of prizes, regardless of the symbols that are used  or  how  those
    45  symbols are displayed on pre-printed bell jar tickets.
    46    (c)  The commission shall promulgate such rules and regulations as may
    47  be necessary for the approval and implementation of electronic bell  jar
    48  vending machine gaming. The commission may revoke, suspend, or condition
    49  approval  of  an  electronic  bell jar vending machine. Upon request for
    50  authorization, the commission shall approve or deny such request  within
    51  thirty  days.  If  the  commission  denies such request for approval, it
    52  shall provide the reasons for such determination.
    53    § 4. Subdivision 3 of section 189 of the  general  municipal  law,  as
    54  amended  by  chapter  337  of  the  laws  of 1998, is amended to read as
    55  follows:

        A. 7475--B                          3
 
     1    3. No authorized organization licensed under the  provisions  of  this
     2  article  shall  purchase,  lease,  or  receive any supplies or equipment
     3  specifically designed or adapted for use in  the  conduct  of  games  of
     4  chance  from other than a supplier licensed by the [board] commission or
     5  from  another  authorized organization. Lease terms and conditions shall
     6  be subject to rules and regulations promulgated by the  [board]  commis-
     7  sion. The provisions of this article shall not be construed to authorize
     8  or  permit an authorized organization to engage in the business of leas-
     9  ing games of chance, supplies, or equipment. Furthermore,  no  organiza-
    10  tion shall purchase bell jar tickets[,] or deals of bell jar tickets, or
    11  purchase  or  lease  any  electronic  bell jar vending machine, from any
    12  other person or organization other than  those  specifically  authorized
    13  under  sections  one hundred ninety-five-n and one hundred ninety-five-o
    14  of this article.
    15    § 5. The opening paragraph of section 189-a of the  general  municipal
    16  law,  as  amended by chapter 164 of the laws of 2003, is amended to read
    17  as follows:
    18    No person, firm, partnership, corporation or organization, shall  sell
    19  or distribute supplies or equipment specifically designed or adapted for
    20  use  in  conduct  of  games  of  chance  without having first obtained a
    21  license therefor upon written application made, verified and filed  with
    22  the  [board]  commission  in  the form prescribed by the rules and regu-
    23  lations of the [board] commission.   As  a  part  of  its  determination
    24  concerning  the  applicant's  suitability  for  licensing  as a games of
    25  chance supplier, the [board] commission shall require the  applicant  to
    26  furnish  to the [board] commission two sets of fingerprints.  Such fing-
    27  erprints shall be submitted to the division of criminal justice services
    28  for a state criminal history record check, as defined in subdivision one
    29  of section three thousand thirty-five of the education law, and  may  be
    30  submitted to the federal bureau of investigation for a national criminal
    31  history record check. Manufacturers of bell jar tickets shall be consid-
    32  ered suppliers of such equipment. In each such application for a license
    33  under  this  section  shall be stated the name and address of the appli-
    34  cant; the names and addresses of its officers,  directors,  shareholders
    35  or  partners;  the  amount  of  gross  receipts realized on the sale and
    36  rental of games of  chance  supplies  and  equipment  to  duly  licensed
    37  authorized  organizations  during  the last preceding calendar or fiscal
    38  year, and such other information as shall be prescribed  by  such  rules
    39  and  regulations. The fee for such license shall be a sum equal to twen-
    40  ty-five dollars plus an amount equal to two  per  centum  of  the  gross
    41  sales  and rentals, if any, of games of chance equipment and supplies to
    42  authorized organizations or authorized games of chance  lessors  by  the
    43  applicant  during  the  preceding  calendar  year, or fiscal year if the
    44  applicant maintains  [his]  their  accounts  on  a  fiscal  year  basis;
    45  provided, however, that for manufacturers of electronic bell jar vending
    46  machines,  the  fee  for such license shall be one thousand dollars.  No
    47  license granted pursuant to the provisions  of  this  section  shall  be
    48  effective for a period of more than one year.
    49    § 6. Section 195-c of the general municipal law, as amended by chapter
    50  252 of the laws of 1998, is amended to read as follows:
    51    §  195-c.  [1.]  Persons operating games; equipment; expenses; compen-
    52  sation.  1. No person shall operate any game of chance under any license
    53  issued under this article except a bona fide member  of  the  authorized
    54  organization to which the license is issued, or a bona fide member of an
    55  organization  or  association which is an auxiliary to the licensee or a
    56  bona fide member of an organization or association of which such  licen-

        A. 7475--B                          4
 
     1  see  is an auxiliary or a bona fide member of an organization or associ-
     2  ation which is affiliated with the licensee by being, with it, auxiliary
     3  to  another  organization  or  association.  Nothing  herein  shall   be
     4  construed to limit the number of games of chance licensees for whom such
     5  persons  may  operate  games  of  chance nor to prevent non-members from
     6  assisting the licensee in any activity other than managing or  operating
     7  games.  No  game  of chance shall be conducted with any equipment except
     8  such as shall be owned or  leased  by  the  authorized  organization  so
     9  licensed  or  used  without  payment of any compensation therefor by the
    10  licensee. However, in no event shall bell  jar  tickets  be  transferred
    11  from  one authorized organization to another, with or without payment of
    12  any compensation thereof. The head or heads of the authorized  organiza-
    13  tion  shall upon request certify, under oath, that the persons operating
    14  any game of chance are bona fide members of  such  authorized  organiza-
    15  tion,  auxiliary  or affiliated organization. Upon request by an officer
    16  or the department any such person involved in such games of chance shall
    17  certify that [he or she has] they have no criminal record. No  items  of
    18  expense  shall  be incurred or paid in connection with the conducting of
    19  any game of chance pursuant to any license  issued  under  this  article
    20  except  those that are reasonable and are necessarily expended for games
    21  of chance supplies and equipment,  prizes,  security  personnel,  stated
    22  rental  if any, bookkeeping or accounting services according to a sched-
    23  ule of compensation prescribed by  the  [board]  commission,  janitorial
    24  services  and utility supplies if any, and license fees, and the cost of
    25  bus transportation, if  authorized  by  such  clerk  or  department.  No
    26  commission,  salary, compensation, reward or recompense shall be paid or
    27  given to any person for the sale or assisting with the  sale  of  raffle
    28  tickets.
    29    2.  For the purpose of the sale of tickets for the game of raffle, the
    30  term "operate" shall not include the sale of such tickets by persons  of
    31  lineal or collateral consanguinity to members of an authorized organiza-
    32  tion licensed to conduct a raffle.
    33    3.  Each electronic bell jar vending machine that has been approved by
    34  the commission pursuant to paragraph (b) of subdivision nine of  section
    35  one hundred eighty-eight-a of this article shall do the following:
    36    (a)  read  a  barcode  or similar form of encryption or marking on the
    37  pre-printed bell jar ticket;
    38    (b) reveal results;
    39    (c) verify if a bell jar ticket is redeemable for a prize;
    40    (d) electronically aggregate winning prizes for continued play;
    41    (e) produce a voucher for prize redemption or proof of purchase;
    42    (f) track the sales of tickets and any other information  as  required
    43  by  the  commission  and  report such sales and other information to the
    44  commission;
    45    (g) prohibit spinning reels or other  representations  or  audiovisual
    46  features that mimic a video lottery terminal or slot machine;
    47    (h)  prohibit  any  electronic user interface that mimics a video slot
    48  machine;
    49    (i) prohibit free plays, bonus games, multipliers, jackpots; provided,
    50  however, that for purposes of   this  paragraph,  the    prohibition  on
    51  "jackpots"  shall  not  include  prizes  that may be won on the bell jar
    52  ticket itself, subject to limitations set forth in  regulations  promul-
    53  gated by the commission, discounts, promotions, special offers, or simi-
    54  lar incentives to initiate or prolong player engagement;
    55    (j)  prohibit  any feature that simulates skill or allows player input
    56  to influence the outcome of a predetermined result;

        A. 7475--B                          5

     1    (k) prohibit the display of near-miss  outcomes  that  may  mislead  a
     2  player into believing a win was narrowly missed; and
     3    (l)  limit  the  speed of play to prevent rapid successive wagering as
     4  required by regulations promulgated by the commission.
     5    4. The following information shall be  displayed  by  each  electronic
     6  bell jar vending machine:
     7    (a) the total number of tickets in each deal;
     8    (b) the price of each ticket;
     9    (c) the number and amount of prizes in each deal;
    10    (d)  the  number  of  winners  per  ticket  and its respective winning
    11  numbers or symbols;
    12    (e) the name of the game;
    13    (f) the name or logo of the manufacturer of the tickets and the  elec-
    14  tronic bell jar vending machine;
    15    (g)  the compulsive gambling hotline telephone number for the state of
    16  New York; and
    17    (h) notification that only individuals eighteen years of age or  older
    18  may use an electronic bell jar vending machine.
    19    5.  If a voucher is produced by an electronic bell jar vending machine
    20  for prize redemption, the following information  shall  appear  on  such
    21  voucher:
    22    (a) the aggregate prize amount payable to the player;
    23    (b)  the  device number or other identification method for the vending
    24  machine that produced such voucher;
    25    (c) the date and time that such voucher was printed;
    26    (d) the sequential number  or  other  identification  method  of  such
    27  voucher;
    28    (e)  an  identification  number, barcode or similar form of encryption
    29  that may be used to validate the prize amount payable to the player; and
    30    (f) the period of time during which unused tickets  or  prize  amounts
    31  must be claimed.
    32    6. (a) For the purposes of this subdivision, the following terms shall
    33  have the following meanings:
    34    (i) "Active local member" shall mean an individual who participates in
    35  the  activities  of  an  authorized  organization and resides within the
    36  county where the authorized organization  is  located  or  an  adjoining
    37  county, as defined by rules promulgated by the commission.
    38    (ii)  "Existing  authorized  organization"  shall  mean  an authorized
    39  organization that was licensed to conduct games of chance prior  to  the
    40  effective date of this subdivision.
    41    (iii) "New authorized organization" shall mean an authorized organiza-
    42  tion  that  is first licensed to conduct games of chance on or after the
    43  effective date of this subdivision.
    44    (iv) "Gaming facility" shall mean any commercial casino, video lottery
    45  terminal facility, or tribal gaming facility operating pursuant to state
    46  or federal law. Locations of such facilities shall be  those  identified
    47  by the commission.
    48    (b) The maximum number of electronic bell jar vending machines that an
    49  existing  authorized  organization may operate shall be determined based
    50  upon the number of its active local members, as follows:
    51    (i) An existing authorized organization with fewer than  fifty  active
    52  local  members  may  operate a maximum number of one electronic bell jar
    53  vending machine;
    54    (ii) An existing authorized organization with fifty or more but  fewer
    55  than one hundred active local members may operate a maximum of two elec-
    56  tronic bell jar vending machines;

        A. 7475--B                          6
 
     1    (iii)  An  existing  authorized  organization with one hundred or more
     2  active local members but fewer than two hundred active local members may
     3  operate a maximum of three electronic bell jar vending machines;
     4    (iv)  An existing authorized organization with two hundred or more but
     5  fewer than three hundred active local members may operate a  maximum  of
     6  four electronic bell jar vending machines; and
     7    (v)  An  existing  authorized  organization with three hundred or more
     8  active local members may operate a maximum of five electronic  bell  jar
     9  vending machines.
    10    (c)  A  new authorized organization may operate a maximum of one elec-
    11  tronic bell jar vending machine.
    12    (d) (i) For any authorized organization at a premises  located  within
    13  fifteen  miles  of any gaming facility, the maximum number of electronic
    14  bell jar vending machines that may be operated shall  be  one,  notwith-
    15  standing  the  provisions of paragraph (b) of this subdivision; provided
    16  however, that this limitation  shall  not  apply  to  gaming  facilities
    17  located within cities with a population of one million or more as of the
    18  latest federal decennial census.
    19    (ii)  For  any authorized organization at a premises located more than
    20  fifteen miles but not more than twenty-five miles from any gaming facil-
    21  ity, the maximum number of electronic bell jar vending machines that may
    22  be operated shall be three, notwithstanding the provisions of  paragraph
    23  (b) of this subdivision.
    24    (iii)  In  cities  with  a population of one million or more as of the
    25  latest federal decennial census, the following geographic considerations
    26  shall apply, notwithstanding any other provision of  this  paragraph  or
    27  paragraph (b) of this subdivision:
    28    For any authorized organization at a premises located within two thou-
    29  sand  five  hundred  feet  of any gaming facility, the maximum number of
    30  electronic bell jar vending machines that may be operated shall be  one.
    31  The  commission  shall establish procedures for measuring such distance.
    32  For any authorized organization at a  premises  located  more  than  two
    33  thousand  five  hundred  feet but not more than one mile from any gaming
    34  facility, the maximum number of electronic  bell  jar  vending  machines
    35  that  may be operated shall be one for new authorized organizations. For
    36  existing authorized organizations within this zone, the  maximum  number
    37  of  electronic bell jar vending machines shall be two, provided that the
    38  commission, in authorizing such machines, considers local market  condi-
    39  tions  and  the  objectives of preventing market oversaturation. For any
    40  authorized organization at a premises located more than  one  mile  from
    41  any  gaming  facility, the maximum number of electronic bell jar vending
    42  machines shall be determined in accordance with paragraphs (b)  and  (c)
    43  of  this  subdivision,  provided  that  the  commission shall retain the
    44  discretion to impose stricter limitations  based  on  local  density  of
    45  authorized  organizations  operating  such machines, potential impact on
    46  existing gaming facilities, and other local market  conditions  specific
    47  to  such city, consistent with the objectives set forth in paragraph (e)
    48  of this subdivision.  The  commission  shall,  by  rule  or  regulation,
    49  further  define  the  methodology for assessing local density and market
    50  conditions within such cities and may establish specific zones or  areas
    51  where  the  placement of electronic bell jar vending machines is further
    52  limited or requires enhanced review, to  ensure  the  responsible  inte-
    53  gration of such charitable gaming opportunities.
    54    (iv)  The commission shall have the authority to establish, by rule or
    55  regulation, specific proximity zones around  gaming  facilities  and  to
    56  modify the limitations provided in subparagraphs (i), (ii), and (iii) of

        A. 7475--B                          7
 
     1  this  paragraph  based upon local market conditions, potential impact on
     2  existing gaming facilities, and the need to prevent loss  of  employment
     3  at  such  facilities,  provided  that  any  such  modification  shall be
     4  consistent with the objective of supporting charitable fundraising while
     5  maintaining the existing gaming landscape and preventing market oversat-
     6  uration;  provided  however, that any such modification shall constitute
     7  only a reduction of the thresholds established by this subdivision.
     8    (e) (i) Notwithstanding any other provision of this  subdivision,  the
     9  commission  shall  have  the discretion to determine the number of elec-
    10  tronic bell jar vending machines that may be operated by any  authorized
    11  organization,  and the location of such machines; provided however, that
    12  such number of machines shall not exceed the limits established in  this
    13  subdivision.  Such  discretion  shall  be  exercised  to ensure that the
    14  introduction and operation  of  electronic  bell  jar  vending  machines
    15  occurs  exclusively to the fundraising capabilities of legitimate chari-
    16  table organizations while maintaining the stability  of  existing  regu-
    17  lated  gaming sectors and revenue to the state, and avoiding any loss of
    18  employment at existing gaming facilities.
    19    (ii) The commission may require periodic reporting or verification  of
    20  active  local  membership  to ensure ongoing compliance with eligibility
    21  requirements and may  take  enforcement  action  in  cases  of  material
    22  misrepresentation  or  sustained  noncompliance. The commission may also
    23  take into consideration reasonable and periodic fluctuations in  member-
    24  ship to avoid requiring the removal or retirement of electronic bell jar
    25  vending machines due to temporary or minimal decreases in membership.
    26    (iii)  The commission shall deny, revoke, or limit the number of elec-
    27  tronic bell jar vending machines an authorized organization may  operate
    28  if  it  determines  that  such organization has been established, struc-
    29  tured, or is being utilized, directly or indirectly, to obtain a greater
    30  number of machines than otherwise would be permitted. This includes, but
    31  is not limited to, the creation of subsidiary entities, shell  organiza-
    32  tions,  or any other arrangement where the facts and circumstances indi-
    33  cate an intent to circumvent the limitations set forth in this  subdivi-
    34  sion.   The  commission  is  empowered  to  scrutinize  the  governance,
    35  operational control, and financial interdependence of  organizations  to
    36  make such determinations.
    37    (iv)  The  co-siting or joint housing of multiple authorized organiza-
    38  tions at a single  premises  or  contiguous  premises  for  the  primary
    39  purpose  of increasing the aggregate number of electronic bell jar vend-
    40  ing machines at such location beyond what would otherwise  be  permitted
    41  for  a  single  authorized  organization  operating  at such premises is
    42  prohibited, unless explicitly authorized by the commission upon a  find-
    43  ing that such arrangement is consistent with the public interest and the
    44  objectives  of  this article.  The commission shall promulgate rules and
    45  regulations to effectuate this provision, considering  factors  such  as
    46  shared  operational control, membership overlap, and the primary purpose
    47  of the co-siting arrangement.
    48    7. The commission shall promulgate such rules and regulations  as  may
    49  be  necessary  for  the  implementation  of  electronic bell jar vending
    50  machine gaming in  accordance  with  the  provisions  of  this  section,
    51  including but not limited to the verification of active local membership
    52  numbers and assessment of proximity to gaming facilities.
    53    §  7.  Subdivisions  1 and 4 of section 195-n of the general municipal
    54  law, as amended by chapter 637 of the laws of 1999, are amended to  read
    55  as follows:

        A. 7475--B                          8
 
     1    1.  Distribution; manufacturers. For business conducted in this state,
     2  manufacturers licensed by the [board] commission to sell bell jar  tick-
     3  ets or electronic bell jar vending machines shall sell only such tickets
     4  or  vending machines to distributors licensed by the [board] commission.
     5  Manufacturers  of  bell jar tickets, seal cards, merchandise boards, and
     6  coin boards may submit samples, artists' renderings, or  color  photoco-
     7  pies  of proposed bell jar tickets, seal cards, merchandise boards, coin
     8  boards, payout cards, and flares for review and approval by the  [board]
     9  commission.  Within  thirty days of receipt of such sample or rendering,
    10  the [board] commission shall approve or  deny  such  bell  jar  tickets.
    11  Following  approval  of  a  rendering  of  a bell jar ticket, seal card,
    12  merchandise board, or coin board by the [board] commission, the manufac-
    13  turer shall submit to the [board] commission a  sample  of  the  printed
    14  bell  jar ticket, seal card, merchandise board, coin board, payout card,
    15  and flare for such game. Such sample shall be  submitted  prior  to  the
    16  sale  of  the game to any licensed distributor for resale in this state.
    17  For coin boards and merchandise boards, nothing herein shall require the
    18  submittal of actual coins or merchandise as part of the  approval  proc-
    19  ess.  Any licensed manufacturer who willfully violates the provisions of
    20  this section shall: (a) upon such  first  offense,  have  their  license
    21  suspended  for  a  period  of thirty days; (b) upon such second offense,
    22  participate in a hearing to be conducted by the [board] commission,  and
    23  surrender  their  license  for such period as recommended by the [board]
    24  commission; and (c) upon such third or subsequent  offense,  have  their
    25  license  suspended  for  a  period  of one year and shall be guilty of a
    26  class E felony. Any unlicensed manufacturer who violates the  provisions
    27  of this section shall be guilty of a class E felony.
    28    4.  Reports  of  sales.  A manufacturer who sells bell jar tickets for
    29  resale in this state shall file with the [board] commission, on  a  form
    30  prescribed  by  the  [board] commission a report of all bell jar tickets
    31  sold to distributors in the state. The report shall be  filed  quarterly
    32  on  or  before  the twentieth day of the month succeeding the end of the
    33  quarter in which the sale was made. The [board] commission  may  require
    34  that  the  report  be  submitted  via  magnetic media or electronic data
    35  transfer. Such report shall also include information regarding any elec-
    36  tronic bell jar  vending  machines  sold  or  leased  to  a  distributor
    37  licensed by the commission.
    38    §  8.  Subdivisions  1,  3,  4,  and 5 of section 195-o of the general
    39  municipal law, subdivision 1 as amended by chapter 637 of  the  laws  of
    40  1999,  subdivisions  3 and 4 as added by chapter 309 of the laws of 1996
    41  and subdivision 5 as amended by section 16 of part MM of chapter  59  of
    42  the laws of 2017, are amended to read as follows:
    43    1.  Distribution; distributors. Any distributor licensed in accordance
    44  with section one hundred eighty-nine-a of  this  article  to  distribute
    45  bell  jar tickets or electronic bell jar vending machines shall purchase
    46  [bell jar] such tickets and vending machines only from licensed manufac-
    47  turers and may manufacture coin boards and merchandise  boards  only  as
    48  authorized  in  subdivision one-a of this section. Licensed distributors
    49  of bell jar tickets and electronic bell jar vending machines shall  sell
    50  such  tickets and vending machines only to not-for-profit, charitable or
    51  religious organizations registered  by  the  [board]  commission.    Any
    52  licensed  distributor  who  willfully  violates  the  provisions of this
    53  section shall: (a) upon such first offense, have their license suspended
    54  for a period of thirty days; (b) upon such second  offense,  participate
    55  in  a  hearing  to be conducted by the [board] commission, and surrender
    56  their license for such period as recommended by the [board]  commission;

        A. 7475--B                          9
 
     1  and  (c)  upon  such  third  or  subsequent  offense, have their license
     2  suspended for a period of one year and shall be  guilty  of  a  class  E
     3  felony.  Any  unlicensed  distributor who violates this section shall be
     4  guilty of a class E felony.
     5    3.  Sales  records.  A distributor shall maintain a record of all bell
     6  jar tickets that it sells and all electronic bell jar  vending  machines
     7  that  it  sells  or  leases.   The record shall include, but need not be
     8  limited to:
     9    (a) the  identity  of  the  manufacturer  from  whom  the  distributor
    10  purchased the product;
    11    (b) the serial number of the product;
    12    (c)  the  name,  address,  and  license or exempt permit number of the
    13  organization or person to which the sale was made;
    14    (d) the date of the sale;
    15    (e) the name of the person who ordered the product;
    16    (f) the name of the person who received the product;
    17    (g) the type of product;
    18    [(h) the serial number of the product;
    19    (i)] (h) the account number identifying the sale from the manufacturer
    20  to distributor and the account number  identifying  the  sale  from  the
    21  distributor to the licensed organization; and
    22    [(j)]  (i) the name, form number, or other identifying information for
    23  each game.
    24    4. Invoices; agreements.   (a) A distributor shall  supply  with  each
    25  sale of a bell jar product an itemized invoice showing the distributor's
    26  name and address, the purchaser's name, address, and license number, the
    27  date  of  the  sale,  the  account  number identifying the sale from the
    28  manufacturer to distributor and the account number identifying the  sale
    29  from  the  distributor to the licensed organization, and the description
    30  of the deals, including the form number, the serial number and the ideal
    31  gross from every deal of bell jar or similar game.
    32    (b) Prior to the sale, lease, or distribution of  an  electronic  bell
    33  jar  vending  machine  to an authorized organization, the distributor or
    34  manufacturer shall provide the contract  or  agreement  for  such  sale,
    35  lease  or  distribution to the commission for approval and any modifica-
    36  tion to such contract or agreement thereafter. Such contract  or  agree-
    37  ment shall show, at minimum:
    38    (i) the name and address of the authorized organization;
    39    (ii) the date of sale, lease or distribution;
    40    (iii) the serial number of each such machine;
    41    (iv)  the material terms and conditions of such contract or agreement;
    42  and
    43    (v) any additional information as the commission may require.
    44    (c) The commission may promulgate rules and  regulations  relating  to
    45  the  terms of any contract or agreement for the sale, lease, or distrib-
    46  ution of an electronic bell jar vending machine to an authorized  organ-
    47  ization.    The commission shall approve or deny such contract or agree-
    48  ment within thirty days of receipt and any material modification to such
    49  contract or agreement thereafter. If the commission denies approval  for
    50  such  contract,  agreement or modification, it shall provide the reasons
    51  for such determination.
    52    5. Reports. A distributor shall report quarterly to the gaming commis-
    53  sion, on a form prescribed by the gaming commission, its sales  of  each
    54  type  of  bell  jar  deal  or  tickets  and  electronic bell jar vending
    55  machines. This report shall be filed quarterly on or before the  twenti-
    56  eth day of the month succeeding the end of the quarter in which the sale

        A. 7475--B                         10
 
     1  was  made.  The  gaming commission may require that a distributor submit
     2  the quarterly report and invoices required by this section via electron-
     3  ic media or electronic data transfer.
     4    § 9. Section 195-q of the general municipal law is amended by adding a
     5  new subdivision 3 to read as follows:
     6    3. (a) An authorized organization may only operate electronic bell jar
     7  vending machines on premises that it owns or leases.
     8    (b)  An  authorized organization may operate no more machines than the
     9  number permitted in subdivision six of section one hundred ninety-five-c
    10  of this article.
    11    (c) No authorized organization shall operate an  electronic  bell  jar
    12  vending  machine  unless  it is a games of chance licensee authorized by
    13  the commission to operate an electronic bell jar vending machine.    The
    14  commission  may promulgate rules and regulations as may be necessary for
    15  the approval of an authorized organization to operate an electronic bell
    16  jar vending machine. The commission may revoke,  suspend,  or  condition
    17  such  approval.  The  commission  shall approve or deny such request for
    18  such approval within thirty days. If the commission denies such request,
    19  it shall provide the reasons for such determination.
    20    (d) Each bell jar vending machine shall  generate  sales  reports  and
    21  such  other  information  that  the commission may direct by regulation.
    22  The commission shall have access to the server of each  electronic  bell
    23  jar  vending  machine  for  the purpose of monitoring and auditing at no
    24  cost to the state.
    25    (e) Any unclaimed funds or tickets left in  any  electronic  bell  jar
    26  vending  machine  shall  be  retained by the authorized organization and
    27  reported as net proceeds.
    28    § 10. This act shall take effect immediately.
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