Eases certain restrictions on the conducting of games of chance for charitable purposes; authorizes the payment, out of the net proceeds of games of chance, of reimbursement for reasonable expenses of volunteers working at the games; expands the frequency upon which games of chance may be held; authorizes auxiliary members of authorized organizations to operate games of chance; authorizes persons convicted of crimes to operate games of chance when participating in a rehabilitation program; authorizes conducting of games of chance on Sundays; expands advertising of games of chance.
STATE OF NEW YORK
________________________________________________________________________
4379
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the general municipal law, in relation to the conducting
of games of chance by certain organizations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 4 and 6 of section 186 of the general munici-
2 pal law, subdivision 4 as amended by chapter 476 of the laws of 2018 and
3 subdivision 6 as amended by chapter 574 of the laws of 1978, are amended
4 and two new subdivisions 4-a and 22 are added to read as follows:
5 4. "Authorized organization" shall mean and include any bona fide
6 religious or charitable organization or bona fide educational, fraternal
7 or service organization or bona fide organization of veterans or volun-
8 teer firefighters or volunteer ambulance workers, which by its charter,
9 certificate of incorporation, constitution, or act of the legislature,
10 shall have among its dominant purposes one or more of the lawful
11 purposes as defined in this article, provided that each shall operate
12 without profit to its members, and provided that each such organization
13 has engaged in serving one or more of the lawful purposes as defined in
14 this article for a period of three years immediately prior to applying
15 for a license under this article.
16 No organization shall be deemed an authorized organization which is
17 formed primarily for the purpose of conducting games of chance and which
18 does not devote at least seventy-five percent of its activities to other
19 than conducting games of chance. No political party shall be deemed an
20 authorized organization.
21 4-a. "Auxiliary member" shall mean a bona fide member of an organiza-
22 tion or association which is auxiliary to an authorized organization
23 licensed pursuant to this article; or a bona fide member of an organiza-
24 tion or association of which an authorized organization licensed pursu-
25 ant to this article is an auxiliary; or a bona fide member of an organ-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00558-02-9
A. 4379 2
1 ization or association which is affiliated with an authorized
2 organization licensed pursuant to this article by being, with it, auxil-
3 iary to another organization or association.
4 6. "Net proceeds" shall mean (a) in relation to the gross receipts
5 from one or more license periods of games of chance, the amount that
6 shall remain after deducting the reasonable sums necessarily and actual-
7 ly expended for conducting games of chance including, but not limited
8 to, supplies and equipment, prizes, security-personnel, stated rental if
9 any, bookkeeping or accounting services according to a schedule of
10 compensation prescribed by the board, janitorial services and utility
11 supplies if any, license fees, and [the cost of bus transportation]
12 reimbursement of reasonable expenses incurred by volunteers who donate
13 their time to hold, operate or conduct, or assist in the conduct of such
14 games, and as authorized by the board and if authorized by the clerk or
15 department and (b) in relation to the gross rent received by an author-
16 ized games of chance lessor for the use of its premises by a game of
17 chance licensee, the amount that shall remain after deducting the
18 reasonable sums necessarily and actually expended for janitorial
19 services and utility supplies directly attributable thereto if any.
20 22. "Reasonable expenses" shall include, but not be limited to, child
21 care expenses, transportation expenses, meals and other expenses, as
22 determined and regulated by the board.
23 § 2. Subdivisions 4, 5, 6, 8, 10 and 11 of section 189 of the general
24 municipal law, subdivisions 4, 10 and 11 as amended by chapter 574 of
25 the laws of 1978, subdivisions 5 and 6 as amended by section 11 of part
26 MM of chapter 59 of the laws of 2017 and subdivision 8 as amended by
27 chapter 434 of the laws of 2016, are amended to read as follows:
28 4. The entire net proceeds of any game of chance shall be exclusively
29 devoted to the lawful purposes of the organization permitted to conduct
30 the same and the net proceeds of any rental derived therefrom shall be
31 exclusively devoted to the lawful purposes of the authorized games of
32 chance lessor; provided, however, that a person may accept reimbursement
33 of reasonable expenses incurred to manage, hold, operate or conduct such
34 games.
35 5. (a) No single prize awarded by games of chance other than raffle
36 shall exceed the sum or value of [three] four hundred dollars, except
37 that for merchandise wheels, no single prize shall exceed the sum or
38 value of [two] three hundred [fifty] dollars, and for bell jar, no
39 single prize shall exceed the sum or value of one thousand dollars.
40 (b) No single prize awarded by raffle shall exceed the sum or value of
41 three hundred thousand dollars.
42 (c) No single wager shall exceed six dollars and for bell jars, coin
43 boards or merchandise boards, no single prize shall exceed one thousand
44 dollars, provided, however, that such limitation shall not apply to the
45 amount of money or value paid by the participant in a raffle in return
46 for a ticket or other receipt.
47 (d) For coin boards and merchandise boards, the value of a prize shall
48 be determined by the cost of such prize to the authorized organization
49 or, if donated, the fair market value of such prize.
50 6. (a) No authorized organization shall award a series of prizes
51 consisting of cash or of merchandise with an aggregate value in excess
52 of:
53 (1) ten thousand dollars during the successive operations of any one
54 merchandise wheel or bell jar; and
55 (2) six thousand dollars during the successive operations of any [bell
56 jar,] coin board or merchandise board.
A. 4379 3
1 (b) No series of prizes awarded by raffle shall have an aggregate
2 value in excess of five hundred thousand dollars.
3 (c) For coin boards and merchandise boards, the value of a prize shall
4 be determined by the cost of such prize to the authorized organization
5 or, if donated, the fair market value of such prize.
6 8. Except for merchandise wheels and raffles, no series of prizes on
7 any one occasion shall aggregate more than [four] five hundred dollars
8 when the licensed authorized organization conducts five single types of
9 games of chance during any one license period. Except for merchandise
10 wheels, raffles and bell jars, no series of prizes on any one occasion
11 shall aggregate more than five hundred dollars when the licensed author-
12 ized organization conducts less than five single types of games of
13 chance, exclusive of merchandise wheels, raffles and bell jars, during
14 any one license period. No authorized organization shall award by raffle
15 prizes with an aggregate value in excess of three million dollars during
16 any one license period.
17 10. No person except a bona fide member of the licensed authorized
18 organization or an auxiliary member of such organization shall partic-
19 ipate in the management of such games[; no person except a bona fide
20 member of the licensed authorized organization, its auxiliary or affil-
21 iated organization, shall participate in the operation of such game, as
22 set forth in section one hundred ninety-five-c of this article].
23 11. No person shall receive any remuneration for participating in the
24 management or operation of any such game; provided, however, that a
25 person may accept reimbursement of reasonable expenses incurred to
26 manage, hold, operate or conduct games of chance.
27 § 3. Subparagraph 5 of paragraph (a) of subdivision 1 of section 190
28 of the general municipal law, as amended by chapter 574 of the laws of
29 1978, is amended to read as follows:
30 (5) the purposes to which the entire net proceeds of such games are to
31 be devoted and in what manner; that no commission, salary, compen-
32 sation[,] or reward [or recompense] will be paid to any person for
33 conducting such game or games or for assisting therein except as in this
34 article otherwise provided; and such other information as shall be
35 prescribed by such rules and regulations.
36 § 4. Paragraph (b) of subdivision 1 of section 190 of the general
37 municipal law, as amended by chapter 574 of the laws of 1978, is amended
38 to read as follows:
39 (b) In each application there shall be designated not less than [four]
40 three bona fide members of the applicant organization under whom the
41 game or games of chance will be managed and to the application shall be
42 appended a statement executed by the members so designated, that they
43 will be responsible for the management of such games in accordance with
44 the terms of the license, the rules and regulations of the board, this
45 article and the applicable local laws or ordinances.
46 § 5. Subdivision 3 of section 190-a of the general municipal law, as
47 added by chapter 400 of the laws of 2005, is amended to read as follows:
48 3. No person under the age of eighteen shall be permitted to play[,
49 operate or assist] in any raffle conducted pursuant to this section. No
50 person under the age of eighteen years shall be permitted to operate or
51 assist in any raffle conducted pursuant to this section; provided,
52 however, that a person under the age of eighteen years and who is
53 sixteen years of age or older shall be permitted to assist in any raffle
54 if accompanied by an adult.
A. 4379 4
1 § 6. Paragraph (a) of subdivision 1 of section 191 of the general
2 municipal law, as amended by section 15 of part LL of chapter 56 of the
3 laws of 2010, is amended to read as follows:
4 (a) Issuance of licenses to conduct games of chance. If such clerk or
5 department shall determine that the applicant is duly qualified to be
6 licensed to conduct games of chance under this article; that the member
7 or members of the applicant designated in the application to manage
8 games of chance are bona fide active members of the applicant and are
9 persons of good moral character and have never been convicted of a
10 crime, or, if convicted, have received a pardon, a certificate of good
11 conduct or a certificate of relief from disabilities pursuant to article
12 twenty-three of the correction law, or, if convicted, the member or
13 members are participating in a rehabilitation program licensed or certi-
14 fied by a state agency and operated by the applicant or an auxiliary
15 thereof; that such games are to be conducted in accordance with the
16 provisions of this article and in accordance with the rules and regu-
17 lations of the board and applicable local laws or ordinances and that
18 the proceeds thereof are to be disposed of as provided by this article,
19 and if such clerk or department is satisfied that no commission, salary,
20 compensation[,] or reward [or recompense] whatever will be paid or given
21 to any person managing, operating or assisting therein except as [in
22 this article] otherwise provided in this article, including reimburse-
23 ment of reasonable expenses incurred by volunteers who donate their time
24 to hold, operate or conduct, or assist in the conduct of such games; it
25 shall issue a license to the applicant for the conduct of games of
26 chance upon payment of a license fee of twenty-five dollars for each
27 license period.
28 § 7. Subdivision 3 of section 194 of the general municipal law, as
29 amended by chapter 550 of the laws of 1994, is amended to read as
30 follows:
31 3. [Service of alcoholic beverages.] Subject to the applicable
32 provisions of the alcoholic beverage control law, beer and wine may be
33 offered for sale during the conduct of games of chance on games of
34 chance premises as such premises are defined in subdivision nineteen of
35 section one hundred eighty-six of this article; provided, however, that
36 nothing herein shall be construed to limit the offering for sale of any
37 other alcoholic beverage in areas other than the games of chance prem-
38 ises or the sale of any other alcoholic beverage in premises where only
39 the games of chance known as bell jar or raffles are conducted.
40 § 8. Section 195 of the general municipal law, as amended by chapter
41 461 of the laws of 2003, is amended to read as follows:
42 § 195. Sunday; conduct of games on. Except as provided in section one
43 hundred ninety-five-b of this article, [no] games of chance [shall] may
44 be conducted under any license issued under this article on the first
45 day of the week, commonly known and designated as Sunday, unless it
46 shall be otherwise provided in the license issued for the conducting
47 thereof, pursuant to the provisions of a local law or an ordinance duly
48 adopted by the governing body of the municipality wherein the license is
49 issued, [authorizing] prohibiting the conduct of games of chance under
50 this article on that day [only between the hours of noon and midnight].
51 Notwithstanding the foregoing provisions of this section no games of
52 chance shall be conducted on Easter Sunday or Christmas Day.
53 § 9. Section 195-a of the general municipal law, as amended by chapter
54 574 of the laws of 1978, is amended to read as follows:
55 § 195-a. Participation by persons under eighteen. No person under the
56 age of eighteen years shall be permitted to play any game or games of
A. 4379 5
1 chance conducted pursuant to any license issued under this article.
2 Persons under the age of eighteen years may be permitted to attend games
3 of chance [at the discretion of the games of chance licensee]. No
4 person under the age of eighteen years shall be permitted to operate any
5 game of chance conducted pursuant to any license issued under this arti-
6 cle or to assist therein; provided, however, that a person under the age
7 of eighteen years and who is sixteen years of age or older shall be
8 permitted to assist in the operation of any game of chance if accompa-
9 nied by a parent.
10 § 10. Section 195-b of the general municipal law, as amended by chap-
11 ter 252 of the laws of 1998, is amended to read as follows:
12 § 195-b. Frequency of games. No game or games of chance, shall be
13 conducted under any license issued under this article more often than
14 [twelve] eighteen times in any calendar year. No particular premises
15 shall be used for the conduct of games of chance on more than twenty-
16 four license periods during any one calendar year. Games shall be
17 conducted only between the hours of noon and midnight on Sunday, Monday,
18 Tuesday, Wednesday and Thursday, and only between the hours of noon on
19 Friday and two A.M. Saturday, and only between the hours of noon on
20 Saturday and two A.M. Sunday. The two A.M. closing period shall also
21 apply to a legal holiday. The above restrictions shall not apply when
22 only the games of chance known as bell jar and/or raffle are conducted.
23 § 11. Section 195-c of the general municipal law, as amended by chap-
24 ter 252 of the laws of 1998, is amended to read as follows:
25 § 195-c. [1.] Persons operating games; equipment; expenses; compen-
26 sation. 1. No person shall operate any game of chance under any license
27 issued under this article except a bona fide member or auxiliary member
28 of the authorized organization to which the license is issued[, or a
29 bona fide member of an organization or association which is an auxiliary
30 to the licensee or a bona fide member of an organization or association
31 of which such licensee is an auxiliary or a bona fide member of an
32 organization or association which is affiliated with the licensee by
33 being, with it, auxiliary to another organization or association]. Noth-
34 ing herein shall be construed to limit the number of games of chance
35 licensees for whom such persons may operate games of chance nor to
36 prevent non-members from assisting the licensee in any activity other
37 than managing or operating games. No game of chance shall be conducted
38 with any equipment except such as shall be owned or leased by the
39 authorized organization so licensed or used without payment of any
40 compensation therefor by the licensee. However, in no event shall bell
41 jar tickets be transferred from one authorized organization to another,
42 with or without payment of any compensation thereof. The head or heads
43 of the authorized organization shall upon request certify, under oath,
44 that the persons operating any game of chance are bona fide or auxiliary
45 members of such authorized organization, auxiliary or affiliated organ-
46 ization. Upon request by an officer or the department any such person
47 involved in such games of chance shall certify that he or she has no
48 criminal record. No items of expense shall be incurred or paid in
49 connection with the conducting of any game of chance pursuant to any
50 license issued under this article except those that are reasonable and
51 are necessarily expended for games of chance supplies and equipment,
52 prizes, security personnel, stated rental if any, bookkeeping or
53 accounting services according to a schedule of compensation prescribed
54 by the board, janitorial services and utility supplies if any, and
55 license fees, reimbursement of reasonable expenses incurred by volun-
56 teers who donate their time to operate or assist in the operation of
A. 4379 6
1 games of chance and the cost of bus transportation, if authorized by
2 such clerk or department. No commission, salary, compensation[,] or
3 reward [or recompense] shall be paid or given to any person for the sale
4 or assisting with the sale of raffle tickets.
5 2. For the purpose of the sale of tickets for the game of raffle, the
6 term "operate" shall not include the sale of such tickets by persons of
7 lineal or collateral consanguinity to members of an authorized organiza-
8 tion licensed to conduct a raffle.
9 § 12. Section 195-e of the general municipal law, as amended by
10 section 14 of part MM of chapter 59 of the laws of 2017, is amended to
11 read as follows:
12 § 195-e. Advertising games. A licensee may advertise the conduct of
13 games of chance to the general public by means of newspaper, circular,
14 handbill [and], poster, electronic mail, electronic communications and
15 government access television broadcasts, and by one sign not exceeding
16 sixty square feet in area, which may be displayed on or adjacent to the
17 premises owned or occupied by a licensed authorized organization,
18 through the internet or television as may be regulated by the rules and
19 regulations of the commission. When an organization is licensed or
20 authorized to conduct games of chance on the premises of an authorized
21 games of chance lessor, one additional such sign may be displayed on or
22 adjacent to the premises in which the games are to be conducted. Addi-
23 tional signs may be displayed upon any firefighting or ambulance equip-
24 ment belonging to any licensed authorized organization that is a volun-
25 teer fire company, volunteer ambulance corps or upon any equipment of a
26 first aid or rescue squad in and throughout the community served by such
27 volunteer fire company, volunteer ambulance corps or such first aid or
28 rescue squad, as the case may be. All advertisements shall be limited to
29 the description of such event as "Games of chance" or "Las Vegas Night",
30 the name of the authorized organization conducting such games, the
31 license number of the authorized organization as assigned by the clerk
32 or department, the prizes offered and the date, location and time of the
33 event.
34 § 13. Subdivision 3 of section 195-f of the general municipal law, as
35 amended by chapter 550 of the laws of 1994, is amended to read as
36 follows:
37 3. Any authorized organization required to file an annual report with
38 the secretary of state pursuant to article seven-A of the executive law
39 [or the attorney general pursuant to article eight of the estates,
40 powers and trusts law] shall include with such annual report a copy of
41 the statement required to be filed with the clerk or department pursuant
42 to subdivision one or two of this section.
43 § 14. Subdivision 1 of section 195-n of the general municipal law, as
44 amended by chapter 637 of the laws of 1999, is amended to read as
45 follows:
46 1. Distribution; manufacturers. For business conducted in this state,
47 manufacturers licensed by the board to sell bell jar tickets shall sell
48 only such tickets to distributors licensed by the board. Manufacturers
49 of bell jar tickets, seal cards, merchandise boards, and coin boards may
50 submit samples, artists' renderings, or color photocopies of proposed
51 bell jar tickets, seal cards, merchandise boards, coin boards, payout
52 cards, and flares for review and approval by the board. Within thirty
53 days of receipt of such sample or rendering, the board shall approve or
54 deny such bell jar tickets. [Following approval of a rendering of a bell
55 jar ticket, seal card, merchandise board, or coin board by the board]
56 Prior to the sale of a bell jar game, jar ticket, seal card, merchandise
A. 4379 7
1 board or coin board to any licensed distributor for resale in this
2 state, the manufacturer shall submit to the board a sample of the print-
3 ed bell jar ticket, seal card, merchandise board, coin board, payout
4 card, and flare for such game. [Such sample shall be submitted prior to
5 the sale of the game to any licensed distributor for resale in this
6 state.] Within forty-five days of receipt of such sample, the board
7 shall approve or deny the bell jar ticket, jar ticket, seal card,
8 merchandise board or coin board. For coin boards and merchandise boards,
9 nothing herein shall require the submittal of actual coins or merchan-
10 dise as part of the approval process. Any licensed manufacturer who
11 willfully violates the provisions of this section shall: (a) upon such
12 first offense, have their license suspended for a period of thirty days;
13 (b) upon such second offense, participate in a hearing to be conducted
14 by the board, and surrender their license for such period as recommended
15 by the board; and (c) upon such third or subsequent offense, have their
16 license suspended for a period of one year and shall be guilty of a
17 class E felony. Any unlicensed manufacturer who violates the provisions
18 of this section shall be guilty of a class E felony.
19 § 15. This act shall take effect on the first of January next succeed-
20 ing the date on which it shall have become a law.