STATE OF NEW YORK
________________________________________________________________________
1959
2023-2024 Regular Sessions
IN SENATE
January 17, 2023
___________
Introduced by Sen. ADDABBO -- read twice and ordered printed, and when
printed to be committed to the Committee on Racing, Gaming and Wager-
ing
AN ACT to amend the 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
19 charitable gaming profits across the state and attract more members to
20 join such organizations.
21 § 2. Subdivision 3-a of section 186 of the general municipal law, as
22 amended by chapter 531 of the laws of 2011, is amended to read as
23 follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04113-01-3
S. 1959 2
1 3-a. "Bell jars" shall mean and include those games in which a partic-
2 ipant shall draw a card from a jar, vending machine, including an elec-
3 tronic bell jar vending machine, or other suitable device or container
4 which contains numbers, colors or symbols that are covered and which,
5 when uncovered, may reveal that a prize shall be awarded on the basis of
6 a designated winning number, color or symbol or combination of numbers,
7 colors or symbols. Bell jars shall also include seal cards, coin boards,
8 event games, and merchandise boards. An electronic bell jar vending
9 machine shall use electronic features to display and dispense pre-print-
10 ed bell jar tickets, including audio and video features to display
11 information about a ticket being dispensed, provided that such features
12 do not affect the outcome of the game.
13 § 3. Subdivision 9 of section 188-a of the general municipal law, as
14 added by chapter 960 of the laws of 1976, is amended to read as follows:
15 9. (a) The [board] commission shall have the power to approve and
16 establish a standard set of games of chance equipment and shall by its
17 rules and regulations prescribe the manner in which such equipment is to
18 be reproduced and distributed to licensed authorized organizations. The
19 sale or distribution to a licensed authorized organization of any equip-
20 ment other than that contained in the standard set of games of chance
21 equipment shall constitute a violation of this section.
22 (b) After the effective date of this paragraph, no electronic bell jar
23 vending machine shall be sold, leased, distributed, installed, or oper-
24 ated by any manufacturer, distributor, or charitable organization until
25 such machine has been approved by the commission. No electronic bell
26 jar vending machine shall be approved by the commission unless the oper-
27 ation of the game demonstrates that there is a finite probability basis
28 of having a predetermined quantity of chances among which there is a
29 predetermined quantity of winners that pay a fixed and predetermined
30 value of prizes, regardless of the symbols that are used or how those
31 symbols are displayed on pre-printed bell jar tickets.
32 § 4. Subdivision 3 of section 189 of the general municipal law, as
33 amended by chapter 337 of the laws of 1998, is amended to read as
34 follows:
35 3. No authorized organization licensed under the provisions of this
36 article shall purchase, lease, or receive any supplies or equipment
37 specifically designed or adapted for use in the conduct of games of
38 chance from other than a supplier licensed by the [board] commission or
39 from another authorized organization. Lease terms and conditions shall
40 be subject to rules and regulations promulgated by the [board] commis-
41 sion. The provisions of this article shall not be construed to authorize
42 or permit an authorized organization to engage in the business of leas-
43 ing games of chance, supplies, or equipment. Furthermore, no organiza-
44 tion shall purchase bell jar tickets[,] or deals of bell jar tickets, or
45 purchase or lease any electronic bell jar vending machine, from any
46 other person or organization other than those specifically authorized
47 under sections one hundred ninety-five-n and one hundred ninety-five-o
48 of this article.
49 § 5. The opening paragraph of section 189-a of the general municipal
50 law, as amended by chapter 164 of the laws of 2003, is amended to read
51 as follows:
52 No person, firm, partnership, corporation or organization, shall sell
53 or distribute supplies or equipment specifically designed or adapted for
54 use in conduct of games of chance without having first obtained a
55 license therefor upon written application made, verified and filed with
56 the [board] commission in the form prescribed by the rules and regu-
S. 1959 3
1 lations of the [board] commission. As a part of its determination
2 concerning the applicant's suitability for licensing as a games of
3 chance supplier, the [board] commission shall require the applicant to
4 furnish to the [board] commission two sets of fingerprints. Such fing-
5 erprints shall be submitted to the division of criminal justice services
6 for a state criminal history record check, as defined in subdivision one
7 of section three thousand thirty-five of the education law, and may be
8 submitted to the federal bureau of investigation for a national criminal
9 history record check. Manufacturers of bell jar tickets shall be consid-
10 ered suppliers of such equipment. In each such application for a license
11 under this section shall be stated the name and address of the appli-
12 cant; the names and addresses of its officers, directors, shareholders
13 or partners; the amount of gross receipts realized on the sale and
14 rental of games of chance supplies and equipment to duly licensed
15 authorized organizations during the last preceding calendar or fiscal
16 year, and such other information as shall be prescribed by such rules
17 and regulations. The fee for such license shall be a sum equal to twen-
18 ty-five dollars plus an amount equal to two per centum of the gross
19 sales and rentals, if any, of games of chance equipment and supplies to
20 authorized organizations or authorized games of chance lessors by the
21 applicant during the preceding calendar year, or fiscal year if the
22 applicant maintains his accounts on a fiscal year basis; provided,
23 however, that for manufacturers of electronic bell jar vending machines,
24 the fee for such license shall be one thousand dollars. No license
25 granted pursuant to the provisions of this section shall be effective
26 for a period of more than one year.
27 § 6. Section 195-c of the general municipal law, as amended by chapter
28 252 of the laws of 1998, is amended to read as follows:
29 § 195-c. [1.] Persons operating games; equipment; expenses; compen-
30 sation. 1. No person shall operate any game of chance under any license
31 issued under this article except a bona fide member of the authorized
32 organization to which the license is issued, or a bona fide member of an
33 organization or association which is an auxiliary to the licensee or a
34 bona fide member of an organization or association of which such licen-
35 see is an auxiliary or a bona fide member of an organization or associ-
36 ation which is affiliated with the licensee by being, with it, auxiliary
37 to another organization or association. Nothing herein shall be
38 construed to limit the number of games of chance licensees for whom such
39 persons may operate games of chance nor to prevent non-members from
40 assisting the licensee in any activity other than managing or operating
41 games. No game of chance shall be conducted with any equipment except
42 such as shall be owned or leased by the authorized organization so
43 licensed or used without payment of any compensation therefor by the
44 licensee. However, in no event shall bell jar tickets be transferred
45 from one authorized organization to another, with or without payment of
46 any compensation thereof. The head or heads of the authorized organiza-
47 tion shall upon request certify, under oath, that the persons operating
48 any game of chance are bona fide members of such authorized organiza-
49 tion, auxiliary or affiliated organization. Upon request by an officer
50 or the department any such person involved in such games of chance shall
51 certify that he or she has no criminal record. No items of expense shall
52 be incurred or paid in connection with the conducting of any game of
53 chance pursuant to any license issued under this article except those
54 that are reasonable and are necessarily expended for games of chance
55 supplies and equipment, prizes, security personnel, stated rental if
56 any, bookkeeping or accounting services according to a schedule of
S. 1959 4
1 compensation prescribed by the board, janitorial services and utility
2 supplies if any, and license fees, and the cost of bus transportation,
3 if authorized by such clerk or department. No commission, salary,
4 compensation, reward or recompense shall be paid or given to any person
5 for the sale or assisting with the sale of raffle tickets.
6 2. For the purpose of the sale of tickets for the game of raffle, the
7 term "operate" shall not include the sale of such tickets by persons of
8 lineal or collateral consanguinity to members of an authorized organiza-
9 tion licensed to conduct a raffle.
10 3. Each electronic bell jar vending machine that has been approved by
11 the commission pursuant to paragraph (b) of subdivision nine of section
12 one hundred eighty-eight-a of this article shall have the ability to:
13 (a) read a barcode or similar form of encryption or marking on the
14 pre-printed bell jar ticket;
15 (b) reveal results and other game information through audio and video
16 displays;
17 (c) verify if a bell jar ticket is redeemable for a prize;
18 (d) electronically aggregate winning prizes for continued play;
19 (e) produce a voucher for prize redemption; and
20 (f) track the sales of tickets and report such sales to the commis-
21 sion.
22 4. The following information shall be displayed by each electronic
23 bell jar vending machine:
24 (a) the total number of tickets in each deal;
25 (b) the price of each ticket;
26 (c) the number and amount of prizes available or remaining in each
27 deal;
28 (d) the number and amounts of prizes that have been claimed in each
29 deal;
30 (e) the number of winners per ticket and its respective winning
31 numbers or symbols;
32 (f) the name of the game; and
33 (g) the name or logo of the manufacturer of the tickets.
34 5. When a voucher is produced by an electronic bell jar vending
35 machine for prize redemption, the following information shall appear on
36 such voucher:
37 (a) the aggregate prize amount payable to the player;
38 (b) the value of any unused tickets;
39 (c) the device number or other identification method for the vending
40 machine that produced such voucher;
41 (d) the date and time that such voucher was printed;
42 (e) the sequential number of such voucher;
43 (f) a barcode or similar form of encryption that may be used to vali-
44 date the prize amount payable to the player; and
45 (g) the period of time during which unused tickets or prize amounts
46 must be claimed.
47 § 7. Subdivisions 1 and 4 of section 195-n of the general municipal
48 law, as amended by chapter 637 of the laws of 1999, are amended to read
49 as follows:
50 1. Distribution; manufacturers. For business conducted in this state,
51 manufacturers licensed by the [board] commission to sell bell jar tick-
52 ets or electric bell jar vending machines shall sell only such tickets
53 or vending machines to distributors licensed by the [board] commission.
54 Manufacturers of bell jar tickets, seal cards, merchandise boards, and
55 coin boards may submit samples, artists' renderings, or color photoco-
56 pies of proposed bell jar tickets, seal cards, merchandise boards, coin
S. 1959 5
1 boards, payout cards, and flares for review and approval by the [board]
2 commission. Within thirty days of receipt of such sample or rendering,
3 the [board] commission shall approve or deny such bell jar tickets.
4 Following approval of a rendering of a bell jar ticket, seal card,
5 merchandise board, or coin board by the [board] commission, the manufac-
6 turer shall submit to the [board] commission a sample of the printed
7 bell jar ticket, seal card, merchandise board, coin board, payout card,
8 and flare for such game. Such sample shall be submitted prior to the
9 sale of the game to any licensed distributor for resale in this state.
10 For coin boards and merchandise boards, nothing herein shall require the
11 submittal of actual coins or merchandise as part of the approval proc-
12 ess. Any licensed manufacturer who willfully violates the provisions of
13 this section shall: (a) upon such first offense, have their license
14 suspended for a period of thirty days; (b) upon such second offense,
15 participate in a hearing to be conducted by the [board] commission, and
16 surrender their license for such period as recommended by the [board]
17 commission; and (c) upon such third or subsequent offense, have their
18 license suspended for a period of one year and shall be guilty of a
19 class E felony. Any unlicensed manufacturer who violates the provisions
20 of this section shall be guilty of a class E felony.
21 4. Reports of sales. A manufacturer who sells bell jar tickets for
22 resale in this state shall file with the [board] commission, on a form
23 prescribed by the [board] commission a report of all bell jar tickets
24 sold to distributors in the state. The report shall be filed quarterly
25 on or before the twentieth day of the month succeeding the end of the
26 quarter in which the sale was made. The [board] commission may require
27 that the report be submitted via magnetic media or electronic data
28 transfer. Such report shall also include information regarding any elec-
29 tronic bell jar vending machines sold or leased to a distributor
30 licensed by the commission.
31 § 8. Subdivisions 1, 3, 4, and 5 of section 195-o of the general
32 municipal law, subdivision 1 as amended by chapter 637 of the laws of
33 1999, subdivisions 3 and 4 as added by chapter 309 of the laws of 1996
34 and subdivision 5 as amended by section 16 of part MM of chapter 59 of
35 the laws of 2017, are amended to read as follows:
36 1. Distribution; distributors. Any distributor licensed in accordance
37 with section one hundred eighty-nine-a of this article to distribute
38 bell jar tickets or electronic bell jar vending machines shall purchase
39 [bell jar] such tickets and vending machines only from licensed manufac-
40 turers and may manufacture coin boards and merchandise boards only as
41 authorized in subdivision one-a of this section. Licensed distributors
42 of bell jar tickets and electronic bell jar vending machines shall sell
43 such tickets and vending machines only to not-for-profit, charitable or
44 religious organizations registered by the [board] commission. Any
45 licensed distributor who willfully violates the provisions of this
46 section shall: (a) upon such first offense, have their license suspended
47 for a period of thirty days; (b) upon such second offense, participate
48 in a hearing to be conducted by the [board] commission, and surrender
49 their license for such period as recommended by the [board] commission;
50 and (c) upon such third or subsequent offense, have their license
51 suspended for a period of one year and shall be guilty of a class E
52 felony. Any unlicensed distributor who violates this section shall be
53 guilty of a class E felony.
54 3. Sales records. A distributor shall maintain a record of all bell
55 jar tickets that it sells and all electronic bell jar vending machines
S. 1959 6
1 that it sells or leases. The record shall include, but need not be
2 limited to:
3 (a) the identity of the manufacturer from whom the distributor
4 purchased the product;
5 (b) the serial number of the product;
6 (c) the name, address, and license or exempt permit number of the
7 organization or person to which the sale was made;
8 (d) the date of the sale;
9 (e) the name of the person who ordered the product;
10 (f) the name of the person who received the product;
11 (g) the type of product;
12 (h) the serial number of the product;
13 (i) the account number identifying the sale from the manufacturer to
14 distributor and the account number identifying the sale from the
15 distributor to the licensed organization; and
16 (j) the name, form number, or other identifying information for each
17 game.
18 4. Invoices. (a) A distributor shall supply with each sale of a bell
19 jar product an itemized invoice showing the distributor's name and
20 address, the purchaser's name, address, and license number, the date of
21 the sale, the account number identifying the sale from the manufacturer
22 to distributor and the account number identifying the sale from the
23 distributor to the licensed organization, and the description of the
24 deals, including the form number, the serial number and the ideal gross
25 from every deal of bell jar or similar game.
26 (b) Within five business days after the sale, lease, or distribution
27 of an electronic bell jar vending machine to an authorized organization,
28 the distributor shall provide a copy of an invoice to the commission
29 which shows:
30 (i) the name and address of the authorized organization;
31 (ii) the date of sale, lease or distribution;
32 (iii) the serial number of each such machine; and
33 (iv) any additional information as the commission may require.
34 5. Reports. A distributor shall report quarterly to the gaming commis-
35 sion, on a form prescribed by the gaming commission, its sales of each
36 type of bell jar deal or tickets and electronic bell jar vending
37 machines. This report shall be filed quarterly on or before the twenti-
38 eth day of the month succeeding the end of the quarter in which the sale
39 was made. The gaming commission may require that a distributor submit
40 the quarterly report and invoices required by this section via electron-
41 ic media or electronic data transfer.
42 § 9. Section 195-q of the general municipal law is amended by adding a
43 new subdivision 3 to read as follows:
44 3. (a) An authorized organization may only operate electronic bell jar
45 vending machines on premises that it owns or leases.
46 (b) An authorized organization may operate no more than five electron-
47 ic bell jar vending machines. In no situation may more than five elec-
48 tronic bell jar machines be operated at any leased premises, no matter
49 how many authorized organizations are co-lessees.
50 (c) No authorized organization may operate electronic bell jar vending
51 machines unless they were a games of chance licensee authorized to
52 conduct bell jar games on the effective date of this subdivision.
53 (d) Each bell jar vending machine shall generate sales reports and
54 such other information that the commission may direct by regulation in
55 order to determine that such machine is operating in accordance with the
56 provisions of this chapter. The commission shall have access to the
S. 1959 7
1 server of each electronic bell jar vending machine for the purpose of
2 monitoring and auditing at no cost to the state.
3 (e) Any unclaimed funds or tickets left in any electronic bell jar
4 vending machine shall be retained by the authorized organization and
5 reported as net proceeds.
6 (f) No authorized organization may operate any electronic bell jar
7 vending machine within the following area: (i) to the east, state route
8 fourteen from Sodus Point to the Pennsylvania border with New York; (ii)
9 to the north, the border between New York and Canada; (iii) to the
10 south, the Pennsylvania border with New York; and (iv) to the west, the
11 border between New York and Canada and the border between Pennsylvania
12 and New York.
13 § 10. This act shall take effect immediately.
