New York State Assembly

 
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A02303 Summary:

A02303 Actions:

A02303 Committee Votes:

Committee:RACING AND WAGERING   Chair:Pretlow      
DATE:06/06/2017AYE/NAY:11/0  Action: Favorable refer to committee Codes        
Pretlow
Aye
Garbarino
Aye
Gunther
Aye
Lawrence
Aye
Miller
Aye
McLaughlin
Aye
Solages
Aye
Woerner
Aye
Santabarbara
Aye
Simanowitz
Aye
Pheffer Amato
Aye

Committee:CODES   Chair:Lentol      
DATE:06/07/2017AYE/NAY:21/1  Action: Favorable refer to committee Ways and Means        
Lentol
Aye
Graf
Aye
Schimminger
Aye
Giglio
Aye
Weinstein
Nay
McKevitt
Aye
Pretlow
Aye
Montesano
Aye
Cook
Aye
Ra
Aye
Cymbrowitz
Aye
Morinello
Aye
Titus
Aye
O'Donnell
Aye
Lavine
Aye
Perry
Aye
Zebrowski
Aye
Abinanti
Aye
Weprin
Aye
Mosley
Aye
Hevesi
Aye
Fahy
Aye

Committee:WAYS AND MEANS   Chair:Farrell      
DATE:06/14/2017AYE/NAY:27/2  Action: Favorable refer to committee Rules        
Farrell
Aye
Oaks
Aye
Lentol
Aye
Crouch
Aye
Schimminger
Aye
Barclay
Aye
Gantt
Excused
Fitzpatrick
Aye
Weinstein
Nay
Hawley
Aye
Glick
Aye
Malliotakis
Aye
Nolan
Excused
Walter
Aye
Pretlow
Aye
Montesano
Nay
Perry
Aye
Curran
Aye
Colton
Aye
Ra
Aye
Cook
Excused
Cahill
Aye
Aubry
Aye
Hooper
Excused
Thiele
Aye
Cusick
Aye
Ortiz
Excused
Benedetto
Aye
Moya
Aye
Weprin
Aye
Rodriguez
Excused
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye

Committee:RULES   Chair:Heastie      
DATE:06/15/2017AYE/NAY:30/0  Action: Favorable         
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Oaks
Aye
Lentol
Aye
Butler
Aye
Farrell
Aye
Crouch
Aye
Gantt
Aye
Finch
Aye
Nolan
Aye
Barclay
Aye
Weinstein
Aye
Raia
Aye
Hooper
Aye
Hawley
Aye
Ortiz
Aye
Pretlow
Aye
Cook
Excused
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Galef
Aye
Paulin
Aye
Titus
Aye
Peoples-Stokes
Aye

A02303 Floor Votes:

A02303 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2303--C
                                                                Cal. No. 169
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2017
                                       ___________
 
        Introduced  by  M.  of  A. PRETLOW, McDONALD, HAWLEY, BOHEN, DiPIETRO --
          read once and referred to the Committee  on  Racing  and  Wagering  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- ordered to a third reading --  passed
          by  Assembly  and  delivered  to the Senate, recalled from the Senate,
          vote reconsidered, bill  amended,  ordered  reprinted,  retaining  its
          place on the order of third reading -- again amended on third reading,
          ordered reprinted, retaining its place on the order of third reading
 
        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 here-
     2  by 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. 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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04475-11-8
        A. 2303--C                          2
 
     1  charitable gaming profits across the state and attract more  members  to
     2  join such organizations.
     3    §  2.  Subdivision 3-a of section 186 of the general municipal law, as
     4  amended by chapter 531 of the laws  of  2011,  is  amended  to  read  as
     5  follows:
     6    3-a. "Bell jars" shall mean and include those games in which a partic-
     7  ipant  shall draw a card from a jar, vending machine, including an elec-
     8  tronic bell jar vending machine, or other suitable device  or  container
     9  which  contains  numbers,  colors or symbols that are covered and which,
    10  when uncovered, may reveal that a prize shall be awarded on the basis of
    11  a designated winning number, color or symbol or combination of  numbers,
    12  colors or symbols. Bell jars shall also include seal cards, coin boards,
    13  event  games,  and  merchandise  boards.  An electronic bell jar vending
    14  machine shall use electronic features to display and dispense pre-print-
    15  ed bell jar tickets, including  audio  and  video  features  to  display
    16  information  about a ticket being dispensed, provided that such features
    17  do not affect the outcome of the game.
    18    § 3. Subdivision 9 of section 188-a of the general municipal  law,  as
    19  added by chapter 960 of the laws of 1976, is amended to read as follows:
    20    9.  (a)  The  [board]  commission  shall have the power to approve and
    21  establish a standard set of games of chance equipment and shall  by  its
    22  rules and regulations prescribe the manner in which such equipment is to
    23  be  reproduced and distributed to licensed authorized organizations. The
    24  sale or distribution to a licensed authorized organization of any equip-
    25  ment other than that contained in the standard set of  games  of  chance
    26  equipment shall constitute a violation of this section.
    27    (b)  After  the effective date of the chapter of the laws of two thou-
    28  sand eighteen that amended this  subdivision,  no  electronic  bell  jar
    29  vending  machine shall be sold, leased, distributed, installed, or oper-
    30  ated by any manufacturer, distributor, or charitable organization  until
    31  such  machine  has  been approved by the commission.  No electronic bell
    32  jar vending machine shall be approved by the commission unless the oper-
    33  ation of the game demonstrates that there is a finite probability  basis
    34  of  having  a  predetermined  quantity of chances among which there is a
    35  predetermined quantity of winners that pay  a  fixed  and  predetermined
    36  value  of  prizes,  regardless of the symbols that are used or how those
    37  symbols are displayed on pre-printed bell jar tickets.
    38    § 4. Subdivision 3 of section 189 of the  general  municipal  law,  as
    39  amended  by  chapter  337  of  the  laws  of 1998, is amended to read as
    40  follows:
    41    3. No authorized organization licensed under the  provisions  of  this
    42  article  shall  purchase,  lease,  or  receive any supplies or equipment
    43  specifically designed or adapted for use in  the  conduct  of  games  of
    44  chance  from other than a supplier licensed by the board or from another
    45  authorized organization. Lease terms and conditions shall be subject  to
    46  rules  and  regulations promulgated by the board. The provisions of this
    47  article shall not be construed to  authorize  or  permit  an  authorized
    48  organization  to  engage  in  the  business  of leasing games of chance,
    49  supplies, or equipment. Furthermore, no organization shall purchase bell
    50  jar tickets[,] or deals of bell jar tickets, or purchase  or  lease  any
    51  electronic  bell jar vending machine, from any other person or organiza-
    52  tion other than those specifically authorized under sections one hundred
    53  ninety-five-n and one hundred ninety-five-o of this article.
    54    § 5. The opening paragraph of section 189-a of the  general  municipal
    55  law,  as  amended by chapter 164 of the laws of 2003, is amended to read
    56  as follows:
        A. 2303--C                          3
 
     1    No person, firm, partnership, corporation or organization, shall  sell
     2  or distribute supplies or equipment specifically designed or adapted for
     3  use  in  conduct  of  games  of  chance  without having first obtained a
     4  license therefor upon written application made, verified and filed  with
     5  the  [board]  commission  in  the form prescribed by the rules and regu-
     6  lations of the [board] commission.   As  a  part  of  its  determination
     7  concerning  the  applicant's  suitability  for  licensing  as a games of
     8  chance supplier, the [board] commission shall require the  applicant  to
     9  furnish  to the [board] commission two sets of fingerprints.  Such fing-
    10  erprints shall be submitted to the division of criminal justice services
    11  for a state criminal history record check, as defined in subdivision one
    12  of section three thousand thirty-five of the education law, and  may  be
    13  submitted to the federal bureau of investigation for a national criminal
    14  history record check. Manufacturers of bell jar tickets shall be consid-
    15  ered suppliers of such equipment. In each such application for a license
    16  under  this  section  shall be stated the name and address of the appli-
    17  cant; the names and addresses of its officers,  directors,  shareholders
    18  or  partners;  the  amount  of  gross  receipts realized on the sale and
    19  rental of games of  chance  supplies  and  equipment  to  duly  licensed
    20  authorized  organizations  during  the last preceding calendar or fiscal
    21  year, and such other information as shall be prescribed  by  such  rules
    22  and  regulations. The fee for such license shall be a sum equal to twen-
    23  ty-five dollars plus an amount equal to two  per  centum  of  the  gross
    24  sales  and rentals, if any, of games of chance equipment and supplies to
    25  authorized organizations or authorized games of chance  lessors  by  the
    26  applicant  during  the  preceding  calendar  year, or fiscal year if the
    27  applicant maintains his accounts  on  a  fiscal  year  basis;  provided,
    28  however, that for manufacturers of electronic bell jar vending machines,
    29  the  fee  for  such  license  shall be one thousand dollars.  No license
    30  granted pursuant to the provisions of this section  shall  be  effective
    31  for a period of more than one year.
    32    §  6.  Section 195-c of the general municipal law is amended by adding
    33  three new subdivisions 3, 4, and 5 to read as follows:
    34    3. Each electronic bell jar vending machine that has been approved  by
    35  the  commission pursuant to paragraph (b) of subdivision nine of section
    36  one hundred eighty-eight-a of this article shall have the ability to:
    37    (a) read a barcode or similar form of encryption  or  marking  on  the
    38  pre-printed bell jar ticket;
    39    (b)  reveal results and other game information through audio and video
    40  displays;
    41    (c) verify if a bell jar ticket is redeemable for a prize;
    42    (d) electronically aggregate winning prizes for continued play;
    43    (e) produce a voucher for prize redemption; and
    44    (f) track the sales of tickets and report such sales  to  the  commis-
    45  sion.
    46    4.  The  following  information  shall be displayed by each electronic
    47  bell jar vending machine:
    48    (a) the total number of tickets in each deal;
    49    (b) the price of each ticket;
    50    (c) the number and amount of prizes available  or  remaining  in  each
    51  deal;
    52    (d)  the  number  and amounts of prizes that have been claimed in each
    53  deal;
    54    (e) the number of  winners  per  ticket  and  its  respective  winning
    55  numbers or symbols;
    56    (f) the name of the game; and
        A. 2303--C                          4

     1    (g) the name or logo of the manufacturer of the tickets.
     2    5.  When  a  voucher  is  produced  by  an electronic bell jar vending
     3  machine for prize redemption, the following information shall appear  on
     4  such voucher:
     5    (a) the aggregate prize amount payable to the player;
     6    (b) the value of any unused tickets;
     7    (c)  the  device number or other identification method for the vending
     8  machine that produced such voucher;
     9    (d) the date and time that such voucher was printed;
    10    (e) the sequential number of such voucher;
    11    (f) a barcode or similar form of encryption that may be used to  vali-
    12  date the prize amount payable to the player; and
    13    (g)  the  period  of time during which unused tickets or prize amounts
    14  must be claimed.
    15    § 7. Subdivisions 1 and 4 of section 195-n of  the  general  municipal
    16  law,  as amended by chapter 637 of the laws of 1999, are amended to read
    17  as follows:
    18    1. Distribution; manufacturers. For business conducted in this  state,
    19  manufacturers  licensed by the [board] commission to sell bell jar tick-
    20  ets or electric bell jar vending machines shall sell only  such  tickets
    21  or  vending machines to distributors licensed by the [board] commission.
    22  Manufacturers of bell jar tickets, seal cards, merchandise  boards,  and
    23  coin  boards  may submit samples, artists' renderings, or color photoco-
    24  pies of proposed bell jar tickets, seal cards, merchandise boards,  coin
    25  boards,  payout cards, and flares for review and approval by the [board]
    26  commission. Within thirty days of receipt of such sample  or  rendering,
    27  the  [board]  commission  shall  approve  or deny such bell jar tickets.
    28  Following approval of a rendering of  a  bell  jar  ticket,  seal  card,
    29  merchandise board, or coin board by the [board] commission, the manufac-
    30  turer  shall  submit  to  the [board] commission a sample of the printed
    31  bell jar ticket, seal card, merchandise board, coin board, payout  card,
    32  and  flare  for  such  game. Such sample shall be submitted prior to the
    33  sale of the game to any licensed distributor for resale in  this  state.
    34  For coin boards and merchandise boards, nothing herein shall require the
    35  submittal  of  actual coins or merchandise as part of the approval proc-
    36  ess. Any licensed manufacturer who willfully violates the provisions  of
    37  this  section  shall:  (a)  upon  such first offense, have their license
    38  suspended for a period of thirty days; (b)  upon  such  second  offense,
    39  participate  in a hearing to be conducted by the [board] commission, and
    40  surrender their license for such period as recommended  by  the  [board]
    41  commission;  and  (c)  upon such third or subsequent offense, have their
    42  license suspended for a period of one year and  shall  be  guilty  of  a
    43  class  E felony. Any unlicensed manufacturer who violates the provisions
    44  of this section shall be guilty of a class E felony.
    45    4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for
    46  resale  in  this state shall file with the [board] commission, on a form
    47  prescribed by the [board] commission a report of all  bell  jar  tickets
    48  sold  to  distributors in the state. The report shall be filed quarterly
    49  on or before the twentieth day of the month succeeding the  end  of  the
    50  quarter  in  which the sale was made. The [board] commission may require
    51  that the report be submitted  via  magnetic  media  or  electronic  data
    52  transfer. Such report shall also include information regarding any elec-
    53  tronic  bell  jar  vending  machines  sold  or  leased  to a distributor
    54  licensed by the commission.
    55    § 8. Subdivisions 1, 3, 4, and 5  of  section  195-o  of  the  general
    56  municipal  law,  subdivision  1 as amended by chapter 637 of the laws of
        A. 2303--C                          5
 
     1  1999, subdivisions 3 and 4 as added by chapter 309 of the laws  of  1996
     2  and  subdivision  5 as amended by section 16 of part MM of chapter 59 of
     3  the laws of 2017, are amended to read as follows:
     4    1.  Distribution; distributors. Any distributor licensed in accordance
     5  with section one hundred eighty-nine-a of  this  article  to  distribute
     6  bell  jar tickets or electronic bell jar vending machines shall purchase
     7  [bell jar] such tickets and vending machines only from licensed manufac-
     8  turers and may manufacture coin boards and merchandise  boards  only  as
     9  authorized  in  subdivision one-a of this section. Licensed distributors
    10  of bell jar tickets and electronic bell jar vending machines shall  sell
    11  such  tickets and vending machines only to not-for-profit, charitable or
    12  religious organizations registered  by  the  [board]  commission.    Any
    13  licensed  distributor  who  willfully  violates  the  provisions of this
    14  section shall: (a) upon such first offense, have their license suspended
    15  for a period of thirty days; (b) upon such second  offense,  participate
    16  in  a  hearing  to be conducted by the [board] commission, and surrender
    17  their license for such period as recommended by the [board]  commission;
    18  and  (c)  upon  such  third  or  subsequent  offense, have their license
    19  suspended for a period of one year and shall be  guilty  of  a  class  E
    20  felony.  Any  unlicensed  distributor who violates this section shall be
    21  guilty of a class E felony.
    22    3. Sales records. A distributor shall maintain a record  of  all  bell
    23  jar  tickets  that it sells and all electronic bell jar vending machines
    24  that it sells or leases.   The record shall include,  but  need  not  be
    25  limited to:
    26    (a)  the  identity  of  the  manufacturer  from  whom  the distributor
    27  purchased the product;
    28    (b) the serial number of the product;
    29    (c) the name, address, and license or  exempt  permit  number  of  the
    30  organization or person to which the sale was made;
    31    (d) the date of the sale;
    32    (e) the name of the person who ordered the product;
    33    (f) the name of the person who received the product;
    34    (g) the type of product;
    35    (h) the serial number of the product;
    36    (i)  the  account number identifying the sale from the manufacturer to
    37  distributor and  the  account  number  identifying  the  sale  from  the
    38  distributor to the licensed organization; and
    39    (j)  the  name, form number, or other identifying information for each
    40  game.
    41    4. Invoices. (a) A distributor shall supply with each sale of  a  bell
    42  jar  product  an  itemized  invoice  showing  the distributor's name and
    43  address, the purchaser's name, address, and license number, the date  of
    44  the  sale, the account number identifying the sale from the manufacturer
    45  to distributor and the account number  identifying  the  sale  from  the
    46  distributor  to  the  licensed  organization, and the description of the
    47  deals, including the form number, the serial number and the ideal  gross
    48  from every deal of bell jar or similar game.
    49    (b)  Within  five business days after the sale, lease, or distribution
    50  of an electronic bell jar vending machine to an authorized organization,
    51  the distributor shall provide a copy of an  invoice  to  the  commission
    52  which shows:
    53    (i) the name and address of the authorized organization;
    54    (ii) the date of sale, lease or distribution;
    55    (iii) the serial number of each such machine; and
    56    (iv) any additional information as the commission may require.
        A. 2303--C                          6
 
     1    5. Reports. A distributor shall report quarterly to the gaming commis-
     2  sion,  on  a form prescribed by the gaming commission, its sales of each
     3  type of bell jar  deal  or  tickets  and  electronic  bell  jar  vending
     4  machines.  This report shall be filed quarterly on or before the twenti-
     5  eth day of the month succeeding the end of the quarter in which the sale
     6  was  made.  The  gaming commission may require that a distributor submit
     7  the quarterly report and invoices required by this section via electron-
     8  ic media or electronic data transfer.
     9    § 9. Section 195-q of the general municipal law is amended by adding a
    10  new subdivision 3 to read as follows:
    11    3. (a) An authorized organization may only operate electronic bell jar
    12  vending machines on premises that it owns or leases.
    13    (b) An authorized organization may operate no more than five electron-
    14  ic bell jar vending machines. In no situation may more than  five  elec-
    15  tronic  bell  jar machines be operated at any leased premises, no matter
    16  how many authorized organizations are co-lessees.
    17    (c) No authorized organization may operate electronic bell jar vending
    18  machines unless they were a games of chance licensee and conducted  bell
    19  jar  games  prior  to  the  effective  date  of  this  subdivision.  The
    20  provisions of this paragraph shall not apply to any military or veterans
    21  organization named in subdivisions nine, thirty, thirty-a, thirty-seven,
    22  thirty-eight,  thirty-eight-a,   thirty-eight-b,   thirty-nine,   forty,
    23  forty-one, forty-two, forty-three, forty-four, forty-five, forty-five-a,
    24  forty-seven,  fifty-three,  fifty-four,  or fifty-nine of section two of
    25  the benevolent orders law, nor shall it apply to an authorized organiza-
    26  tion which is a successor organization  to  an  authorized  organization
    27  which  was a games of chance licensee and conducted bell jar games prior
    28  to the effective date of this subdivision.
    29    (d) Each bell jar vending machine shall  generate  sales  reports  and
    30  such  other  information that the commission may direct by regulation in
    31  order to determine that such machine is operating in accordance with the
    32  provisions of this chapter.   The commission shall have  access  to  the
    33  server  of  each  electronic bell jar vending machine for the purpose of
    34  monitoring and auditing at no cost to the state.
    35    (e) Any unclaimed funds or tickets left in  any  electronic  bell  jar
    36  vending  machine  shall  be  retained by the authorized organization and
    37  reported as net proceeds.
    38    § 10. This act shall take effect on  the  one  hundred  eightieth  day
    39  after it shall have become a law.