S00994 Summary:

BILL NOS00994C
 
SAME ASSAME AS A02303-C
 
SPONSORBONACIC
 
COSPNSRAVELLA, GALLIVAN, MARCHIONE, O'MARA, RITCHIE, SANDERS, SAVINO
 
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.
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S00994 Actions:

BILL NOS00994C
 
01/06/2017REFERRED TO RACING, GAMING AND WAGERING
01/31/2017REPORTED AND COMMITTED TO FINANCE
06/01/2017AMEND AND RECOMMIT TO FINANCE
06/01/2017PRINT NUMBER 994A
01/03/2018REFERRED TO RACING, GAMING AND WAGERING
04/16/2018AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
04/16/2018PRINT NUMBER 994B
06/15/2018AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
06/15/2018PRINT NUMBER 994C
06/20/2018COMMITTEE DISCHARGED AND COMMITTED TO RULES
06/20/2018ORDERED TO THIRD READING CAL.2029
06/20/2018PASSED SENATE
06/20/2018DELIVERED TO ASSEMBLY
06/20/2018referred to ways and means
06/20/2018substituted for a2303c
06/20/2018ordered to third reading cal.169
06/20/2018passed assembly
06/20/2018returned to senate
12/18/2018DELIVERED TO GOVERNOR
12/28/2018VETOED MEMO.351
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S00994 Committee Votes:

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S00994 Floor Votes:

DATE:06/20/2018Assembly Vote  YEA/NAY: 131/11
Yes
Abbate
Yes
Cook
Yes
Garbarino
Yes
Lupardo
Yes
Pellegrino
Yes
Stec
Yes
Abinanti
Yes
Crespo
Yes
Giglio
Yes
Magee
No
Peoples-Stokes
Yes
Steck
ER
Arroyo
Yes
Crouch
No
Glick
Yes
Magnarelli
Yes
Perry
Yes
Stern
Yes
Ashby
Yes
Curran
Yes
Goodell
Yes
Malliotakis
Yes
Pheffer Amato
Yes
Stirpe
Yes
Aubry
Yes
Cusick
Yes
Gottfried
Yes
McDonald
Yes
Pichardo
Yes
Tague
Yes
Barclay
Yes
Cymbrowitz
Yes
Gunther
Yes
McDonough
Yes
Pretlow
Yes
Taylor
Yes
Barnwell
Yes
Davila
Yes
Hawley
Yes
Mikulin
Yes
Quart
Yes
Thiele
Yes
Barrett
Yes
De La Rosa
Yes
Hevesi
Yes
Miller B
Yes
Ra
Yes
Titone
No
Barron
Yes
DenDekker
ER
Hikind
Yes
Miller MG
Yes
Raia
Yes
Titus
Yes
Benedetto
Yes
Dickens
Yes
Hooper
Yes
Miller ML
Yes
Ramos
Yes
Vanel
Yes
Bichotte
Yes
Dilan
Yes
Hunter
Yes
Montesano
Yes
Richardson
Yes
Walker
Yes
Blake
No
Dinowitz
Yes
Hyndman
Yes
Morelle
Yes
Rivera
Yes
Wallace
Yes
Blankenbush
Yes
DiPietro
No
Jaffee
Yes
Morinello
Yes
Rodriguez
Yes
Walsh
Yes
Bohen
Yes
D'Urso
Yes
Jean-Pierre
Yes
Mosley
Yes
Rosenthal D
Yes
Walter
Yes
Brabenec
Yes
Englebright
Yes
Jenne
Yes
Murray
No
Rosenthal L
No
Weinstein
Yes
Braunstein
ER
Epstein
Yes
Johns
Yes
Niou
Yes
Rozic
Yes
Weprin
Yes
Brindisi
Yes
Errigo
Yes
Jones
Yes
Nolan
No
Ryan
Yes
Williams
Yes
Bronson
Yes
Espinal
Yes
Joyner
Yes
Norris
Yes
Santabarbara
Yes
Woerner
No
Buchwald
Yes
Fahy
Yes
Kim
Yes
Oaks
Yes
Schimminger
Yes
Wright
Yes
Butler
Yes
Fernandez
Yes
Kolb
Yes
O'Donnell
Yes
Seawright
Yes
Zebrowski
Yes
Byrne
Yes
Finch
Yes
Lalor
Yes
Ortiz
No
Simon
Yes
Mr. Speaker
Yes
Cahill
No
Fitzpatrick
Yes
Lavine
Yes
Otis
Yes
Simotas
Yes
Carroll
Yes
Friend
Yes
Lawrence
Yes
Palmesano
Yes
Skoufis
Yes
Castorina
Yes
Galef
Yes
Lentol
Yes
Palumbo
Yes
Smith
Yes
Colton
ER
Gantt
Yes
Lifton
Yes
Paulin
Yes
Solages

‡ Indicates voting via videoconference
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S00994 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         994--C
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                     January 6, 2017
                                       ___________
 
        Introduced  by  Sens.  BONACIC,  AVELLA,  GALLIVAN,  MARCHIONE,  O'MARA,
          RITCHIE, SANDERS, SAVINO -- read twice and ordered printed,  and  when
          printed  to be committed to the Committee on Racing, Gaming and Wager-
          ing -- reported favorably from said committee  and  committed  to  the
          Committee  on  Finance  -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee --  recommitted
          to  the  Committee  on  Racing, Gaming and Wagering in accordance with
          Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
          reprinted  as  amended  and recommitted to said committee -- 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 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04475-10-8

        S. 994--C                           2
 
     1  and  dispense  pre-printed  bell  jar  tickets  that  have predetermined
     2  winners and predetermined values for prizes, in order to  help  increase
     3  charitable  gaming  profits across the state and attract more members to
     4  join such organizations.
     5    §  2.  Subdivision 3-a of section 186 of the general municipal law, as
     6  amended by chapter 531 of the laws  of  2011,  is  amended  to  read  as
     7  follows:
     8    3-a. "Bell jars" shall mean and include those games in which a partic-
     9  ipant  shall draw a card from a jar, vending machine, including an elec-
    10  tronic bell jar vending machine, or other suitable device  or  container
    11  which  contains  numbers,  colors or symbols that are covered and which,
    12  when uncovered, may reveal that a prize shall be awarded on the basis of
    13  a designated winning number, color or symbol or combination of  numbers,
    14  colors or symbols. Bell jars shall also include seal cards, coin boards,
    15  event  games,  and  merchandise  boards.  An electronic bell jar vending
    16  machine shall use electronic features to display and dispense pre-print-
    17  ed bell jar tickets, including  audio  and  video  features  to  display
    18  information  about a ticket being dispensed, provided that such features
    19  do not affect the outcome of the game.
    20    § 3. Subdivision 9 of section 188-a of the general municipal  law,  as
    21  added by chapter 960 of the laws of 1976, is amended to read as follows:
    22    9.  (a)  The  [board]  commission  shall have the power to approve and
    23  establish a standard set of games of chance equipment and shall  by  its
    24  rules and regulations prescribe the manner in which such equipment is to
    25  be  reproduced and distributed to licensed authorized organizations. The
    26  sale or distribution to a licensed authorized organization of any equip-
    27  ment other than that contained in the standard set of  games  of  chance
    28  equipment shall constitute a violation of this section.
    29    (b)  After  the effective date of the chapter of the laws of two thou-
    30  sand eighteen that amended this  subdivision,  no  electronic  bell  jar
    31  vending  machine shall be sold, leased, distributed, installed, or oper-
    32  ated by any manufacturer, distributor, or charitable organization  until
    33  such  machine  has  been approved by the commission.  No electronic bell
    34  jar vending machine shall be approved by the commission unless the oper-
    35  ation of the game demonstrates that there is a finite probability  basis
    36  of  having  a  predetermined  quantity of chances among which there is a
    37  predetermined quantity of winners that pay  a  fixed  and  predetermined
    38  value  of  prizes,  regardless of the symbols that are used or how those
    39  symbols are displayed on pre-printed bell jar tickets.
    40    § 4. Subdivision 3 of section 189 of the  general  municipal  law,  as
    41  amended  by  chapter  337  of  the  laws  of 1998, is amended to read as
    42  follows:
    43    3. No authorized organization licensed under the  provisions  of  this
    44  article  shall  purchase,  lease,  or  receive any supplies or equipment
    45  specifically designed or adapted for use in  the  conduct  of  games  of
    46  chance  from other than a supplier licensed by the board or from another
    47  authorized organization. Lease terms and conditions shall be subject  to
    48  rules  and  regulations promulgated by the board. The provisions of this
    49  article shall not be construed to  authorize  or  permit  an  authorized
    50  organization  to  engage  in  the  business  of leasing games of chance,
    51  supplies, or equipment. Furthermore, no organization shall purchase bell
    52  jar tickets[,] or deals of bell jar tickets, or purchase  or  lease  any
    53  electronic  bell jar vending machine, from any other person or organiza-
    54  tion other than those specifically authorized under sections one hundred
    55  ninety-five-n and one hundred ninety-five-o of this article.

        S. 994--C                           3
 
     1    § 5. The opening paragraph of section 189-a of the  general  municipal
     2  law,  as  amended by chapter 164 of the laws of 2003, is amended to read
     3  as follows:
     4    No  person, firm, partnership, corporation or organization, shall sell
     5  or distribute supplies or equipment specifically designed or adapted for
     6  use in conduct of games  of  chance  without  having  first  obtained  a
     7  license  therefor upon written application made, verified and filed with
     8  the [board] commission in the form prescribed by  the  rules  and  regu-
     9  lations  of  the  [board]  commission.    As a part of its determination
    10  concerning the applicant's suitability  for  licensing  as  a  games  of
    11  chance  supplier,  the [board] commission shall require the applicant to
    12  furnish to the [board] commission two sets of fingerprints.  Such  fing-
    13  erprints shall be submitted to the division of criminal justice services
    14  for a state criminal history record check, as defined in subdivision one
    15  of  section  three thousand thirty-five of the education law, and may be
    16  submitted to the federal bureau of investigation for a national criminal
    17  history record check. Manufacturers of bell jar tickets shall be consid-
    18  ered suppliers of such equipment. In each such application for a license
    19  under this section shall be stated the name and address  of  the  appli-
    20  cant;  the  names and addresses of its officers, directors, shareholders
    21  or partners; the amount of gross  receipts  realized  on  the  sale  and
    22  rental  of  games  of  chance  supplies  and  equipment to duly licensed
    23  authorized organizations during the last preceding  calendar  or  fiscal
    24  year,  and  such  other information as shall be prescribed by such rules
    25  and regulations. The fee for such license shall be a sum equal to  twen-
    26  ty-five  dollars  plus  an  amount  equal to two per centum of the gross
    27  sales and rentals, if any, of games of chance equipment and supplies  to
    28  authorized  organizations  or  authorized games of chance lessors by the
    29  applicant during the preceding calendar year,  or  fiscal  year  if  the
    30  applicant  maintains  his  accounts  on  a  fiscal year basis; provided,
    31  however, that for manufacturers of electronic bell jar vending machines,
    32  the fee for such license shall be one  thousand  dollars.    No  license
    33  granted  pursuant  to  the provisions of this section shall be effective
    34  for a period of more than one year.
    35    § 6. Section 195-c of the general municipal law is amended  by  adding
    36  three new subdivisions 3, 4, and 5 to read as follows:
    37    3.  Each electronic bell jar vending machine that has been approved by
    38  the commission pursuant to paragraph (b) of subdivision nine of  section
    39  one hundred eighty-eight-a of this article shall have the ability to:
    40    (a)  read  a  barcode  or similar form of encryption or marking on the
    41  pre-printed bell jar ticket;
    42    (b) reveal results and other game information through audio and  video
    43  displays;
    44    (c) verify if a bell jar ticket is redeemable for a prize;
    45    (d) electronically aggregate winning prizes for continued play;
    46    (e) produce a voucher for prize redemption; and
    47    (f)  track  the  sales of tickets and report such sales to the commis-
    48  sion.
    49    4. The following information shall be  displayed  by  each  electronic
    50  bell jar vending machine:
    51    (a) the total number of tickets in each deal;
    52    (b) the price of each ticket;
    53    (c)  the  number  and  amount of prizes available or remaining in each
    54  deal;
    55    (d) the number and amounts of prizes that have been  claimed  in  each
    56  deal;

        S. 994--C                           4

     1    (e)  the  number  of  winners  per  ticket  and its respective winning
     2  numbers or symbols;
     3    (f) the name of the game; and
     4    (g) the name or logo of the manufacturer of the tickets.
     5    5.  When  a  voucher  is  produced  by  an electronic bell jar vending
     6  machine for prize redemption, the following information shall appear  on
     7  such voucher:
     8    (a) the aggregate prize amount payable to the player;
     9    (b) the value of any unused tickets;
    10    (c)  the  device number or other identification method for the vending
    11  machine that produced such voucher;
    12    (d) the date and time that such voucher was printed;
    13    (e) the sequential number of such voucher;
    14    (f) a barcode or similar form of encryption that may be used to  vali-
    15  date the prize amount payable to the player; and
    16    (g)  the  period  of time during which unused tickets or prize amounts
    17  must be claimed.
    18    § 7. Subdivisions 1 and 4 of section 195-n of  the  general  municipal
    19  law,  as amended by chapter 637 of the laws of 1999, are amended to read
    20  as follows:
    21    1. Distribution; manufacturers. For business conducted in this  state,
    22  manufacturers  licensed by the [board] commission to sell bell jar tick-
    23  ets or electric bell jar vending machines shall sell only  such  tickets
    24  or  vending machines to distributors licensed by the [board] commission.
    25  Manufacturers of bell jar tickets, seal cards, merchandise  boards,  and
    26  coin  boards  may submit samples, artists' renderings, or color photoco-
    27  pies of proposed bell jar tickets, seal cards, merchandise boards,  coin
    28  boards,  payout cards, and flares for review and approval by the [board]
    29  commission. Within thirty days of receipt of such sample  or  rendering,
    30  the  [board]  commission  shall  approve  or deny such bell jar tickets.
    31  Following approval of a rendering of  a  bell  jar  ticket,  seal  card,
    32  merchandise board, or coin board by the [board] commission, the manufac-
    33  turer  shall  submit  to  the [board] commission a sample of the printed
    34  bell jar ticket, seal card, merchandise board, coin board, payout  card,
    35  and  flare  for  such  game. Such sample shall be submitted prior to the
    36  sale of the game to any licensed distributor for resale in  this  state.
    37  For coin boards and merchandise boards, nothing herein shall require the
    38  submittal  of  actual coins or merchandise as part of the approval proc-
    39  ess. Any licensed manufacturer who willfully violates the provisions  of
    40  this  section  shall:  (a)  upon  such first offense, have their license
    41  suspended for a period of thirty days; (b)  upon  such  second  offense,
    42  participate  in a hearing to be conducted by the [board] commission, and
    43  surrender their license for such period as recommended  by  the  [board]
    44  commission;  and  (c)  upon such third or subsequent offense, have their
    45  license suspended for a period of one year and  shall  be  guilty  of  a
    46  class  E felony. Any unlicensed manufacturer who violates the provisions
    47  of this section shall be guilty of a class E felony.
    48    4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for
    49  resale  in  this state shall file with the [board] commission, on a form
    50  prescribed by the [board] commission a report of all  bell  jar  tickets
    51  sold  to  distributors in the state. The report shall be filed quarterly
    52  on or before the twentieth day of the month succeeding the  end  of  the
    53  quarter  in  which the sale was made. The [board] commission may require
    54  that the report be submitted  via  magnetic  media  or  electronic  data
    55  transfer. Such report shall also include information regarding any elec-

        S. 994--C                           5
 
     1  tronic  bell  jar  vending  machines  sold  or  leased  to a distributor
     2  licensed by the commission.
     3    §  8.  Subdivisions  1,  3,  4,  and 5 of section 195-o of the general
     4  municipal law, subdivision 1 as amended by chapter 637 of  the  laws  of
     5  1999,  subdivisions  3 and 4 as added by chapter 309 of the laws of 1996
     6  and subdivision 5 as amended by section 16 of part MM of chapter  59  of
     7  the laws of 2017, are amended to read as follows:
     8    1.  Distribution; distributors. Any distributor licensed in accordance
     9  with section one hundred eighty-nine-a of  this  article  to  distribute
    10  bell  jar tickets or electronic bell jar vending machines shall purchase
    11  [bell jar] such tickets and vending machines only from licensed manufac-
    12  turers and may manufacture coin boards and merchandise  boards  only  as
    13  authorized  in  subdivision one-a of this section. Licensed distributors
    14  of bell jar tickets and electronic bell jar vending machines shall  sell
    15  such  tickets and vending machines only to not-for-profit, charitable or
    16  religious organizations registered  by  the  [board]  commission.    Any
    17  licensed  distributor  who  willfully  violates  the  provisions of this
    18  section shall: (a) upon such first offense, have their license suspended
    19  for a period of thirty days; (b) upon such second  offense,  participate
    20  in  a  hearing  to be conducted by the [board] commission, and surrender
    21  their license for such period as recommended by the [board]  commission;
    22  and  (c)  upon  such  third  or  subsequent  offense, have their license
    23  suspended for a period of one year and shall be  guilty  of  a  class  E
    24  felony.  Any  unlicensed  distributor who violates this section shall be
    25  guilty of a class E felony.
    26    3. Sales records. A distributor shall maintain a record  of  all  bell
    27  jar  tickets  that it sells and all electronic bell jar vending machines
    28  that it sells or leases.   The record shall include,  but  need  not  be
    29  limited to:
    30    (a)  the  identity  of  the  manufacturer  from  whom  the distributor
    31  purchased the product;
    32    (b) the serial number of the product;
    33    (c) the name, address, and license or  exempt  permit  number  of  the
    34  organization or person to which the sale was made;
    35    (d) the date of the sale;
    36    (e) the name of the person who ordered the product;
    37    (f) the name of the person who received the product;
    38    (g) the type of product;
    39    (h) the serial number of the product;
    40    (i)  the  account number identifying the sale from the manufacturer to
    41  distributor and  the  account  number  identifying  the  sale  from  the
    42  distributor to the licensed organization; and
    43    (j)  the  name, form number, or other identifying information for each
    44  game.
    45    4. Invoices. (a) A distributor shall supply with each sale of  a  bell
    46  jar  product  an  itemized  invoice  showing  the distributor's name and
    47  address, the purchaser's name, address, and license number, the date  of
    48  the  sale, the account number identifying the sale from the manufacturer
    49  to distributor and the account number  identifying  the  sale  from  the
    50  distributor  to  the  licensed  organization, and the description of the
    51  deals, including the form number, the serial number and the ideal  gross
    52  from every deal of bell jar or similar game.
    53    (b)  Within  five business days after the sale, lease, or distribution
    54  of an electronic bell jar vending machine to an authorized organization,
    55  the distributor shall provide a copy of an  invoice  to  the  commission
    56  which shows:

        S. 994--C                           6
 
     1    (i) the name and address of the authorized organization;
     2    (ii) the date of sale, lease or distribution;
     3    (iii) the serial number of each such machine; and
     4    (iv) any additional information as the commission may require.
     5    5. Reports. A distributor shall report quarterly to the gaming commis-
     6  sion,  on  a form prescribed by the gaming commission, its sales of each
     7  type of bell jar  deal  or  tickets  and  electronic  bell  jar  vending
     8  machines.  This report shall be filed quarterly on or before the twenti-
     9  eth day of the month succeeding the end of the quarter in which the sale
    10  was made. The gaming commission may require that  a  distributor  submit
    11  the quarterly report and invoices required by this section via electron-
    12  ic media or electronic data transfer.
    13    § 9. Section 195-q of the general municipal law is amended by adding a
    14  new subdivision 3 to read as follows:
    15    3. (a) An authorized organization may only operate electronic bell jar
    16  vending machines on premises that it owns or leases.
    17    (b) An authorized organization may operate no more than five electron-
    18  ic  bell  jar vending machines. In no situation may more than five elec-
    19  tronic bell jar machines be operated at any leased premises,  no  matter
    20  how many authorized organizations are co-lessees.
    21    (c) No authorized organization may operate electronic bell jar vending
    22  machines  unless they were a games of chance licensee and conducted bell
    23  jar  games  prior  to  the  effective  date  of  this  subdivision.  The
    24  provisions of this paragraph shall not apply to any military or veterans
    25  organization named in subdivisions nine, thirty, thirty-a, thirty-seven,
    26  thirty-eight,   thirty-eight-a,   thirty-eight-b,   thirty-nine,  forty,
    27  forty-one, forty-two, forty-three, forty-four, forty-five, forty-five-a,
    28  forty-seven, fifty-three, fifty-four, or fifty-nine of  section  two  of
    29  the benevolent orders law, nor shall it apply to an authorized organiza-
    30  tion  which  is  a  successor organization to an authorized organization
    31  which was a games of chance licensee and conducted bell jar games  prior
    32  to the effective date of this subdivision.
    33    (d)  Each  bell  jar  vending machine shall generate sales reports and
    34  such other information that the commission may direct by  regulation  in
    35  order to determine that such machine is operating in accordance with the
    36  provisions  of  this  chapter.   The commission shall have access to the
    37  server of each electronic bell jar vending machine for  the  purpose  of
    38  monitoring and auditing at no cost to the state.
    39    (e)  Any  unclaimed  funds  or tickets left in any electronic bell jar
    40  vending machine shall be retained by  the  authorized  organization  and
    41  reported as net proceeds.
    42    §  10.  This  act  shall  take effect on the one hundred eightieth day
    43  after it shall have become a law.
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