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S06351 Summary:

S06351 Actions:

S06351 Committee Votes:

S06351 Floor Votes:

S06351 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6351--B
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                     March 11, 2025
                                       ___________
 
        Introduced  by  Sens.  ADDABBO,  ASHBY, GRIFFO, SCARCELLA-SPANTON, STEC,
          WALCZYK -- read twice and ordered printed,  and  when  printed  to  be
          committed to the Committee on Racing, Gaming and Wagering -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  reported  favorably  from  said committee and
          committed to the Committee on Finance --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee
 
        AN ACT to amend the general municipal law,  in  relation  to  electronic
          bell jar games
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative findings and purpose. 1. The legislature hereby
     2  finds that:
     3    (a) bell jar games are a popular and profitable fundraising  mechanism
     4  for  bona fide not-for-profit organizations across the state, generating
     5  millions of dollars in net revenues for charitable purposes every year;
     6    (b) authorized organizations that offer bell jars and other  games  of
     7  chance  must  meet  strict  standards  established by the New York state
     8  general municipal law and the New York state gaming commission,  includ-
     9  ing receiving a license to conduct charitable gaming activities; and
    10    (c)  while  other  types of gaming in New York state have continued to
    11  expand and improve, the operation of charitable  gaming  activities  has
    12  largely remained the same over the last several decades.
    13    2. (a) For the aforementioned reasons, the legislature hereby declares
    14  that  authorized  organizations  licensed  by  the New York state gaming
    15  commission to conduct charitable gaming would greatly benefit  from  the
    16  ability  to  operate electronic bell jar vending machines, which display
    17  and dispense  pre-printed  bell  jar  tickets  that  have  predetermined
    18  winners  and  predetermined values for prizes, in order to help increase
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10856-03-5
        S. 6351--B                          2
 
     1  charitable gaming profits across the state and attract more  members  to
     2  join such organizations; and
     3    (b)  Provided  further, the legislature also declares that this legis-
     4  lation includes appropriate safeguards to ensure  that  electronic  bell
     5  jar  vending  machines remain a limited and controlled fundraising tool,
     6  distinct from video lottery terminals or slot  machines  in  design  and
     7  function.  The  machines  authorized  herein  may  only  be  operated by
     8  licensed and authorized  organizations,  are  limited  pursuant  to  the
     9  provisions  of  subdivision  6 of section 195-c of the general municipal
    10  law in order to prohibit casino-like gaming parlors, and  are  primarily
    11  for use by members of such authorized organizations.
    12    §  2.  Subdivision 3-a of section 186 of the general municipal law, as
    13  amended by chapter 531 of the laws  of  2011,  is  amended  to  read  as
    14  follows:
    15    3-a. "Bell jars" shall mean and include those games in which a partic-
    16  ipant  shall draw a card from a jar, vending machine, including an elec-
    17  tronic bell jar vending machine, or other suitable device  or  container
    18  which  contains  numbers,  colors or symbols that are covered and which,
    19  when uncovered, may reveal that a prize shall be awarded on the basis of
    20  a designated winning number, color or symbol or combination of  numbers,
    21  colors or symbols. Bell jars shall also include seal cards, coin boards,
    22  event  games,  and  merchandise  boards.  An electronic bell jar vending
    23  machine shall track the sales of tickets and any  other  information  as
    24  required  by  the commission and report such sales and other information
    25  to the commission, use electronic features to display and dispense  pre-
    26  printed  bell  jar  tickets, and may include audio and video features to
    27  display information about a ticket being dispensed, provided  that  such
    28  features shall not affect the outcome of the game.
    29    §  3.  Subdivision 9 of section 188-a of the general municipal law, as
    30  added by chapter 960 of the laws of 1976, is amended to read as follows:
    31    9. (a) The [board] commission shall have  the  power  to  approve  and
    32  establish  a  standard set of games of chance equipment and shall by its
    33  rules and regulations prescribe the manner in which such equipment is to
    34  be reproduced and distributed to licensed authorized organizations.  The
    35  sale or distribution to a licensed authorized organization of any equip-
    36  ment  other  than  that contained in the standard set of games of chance
    37  equipment shall constitute a violation of this section.
    38    (b) After the effective date of this paragraph, no electronic bell jar
    39  vending machine shall be sold, leased, distributed, installed, or  oper-
    40  ated  by any manufacturer, distributor, or charitable organization until
    41  such machine has been approved by the commission.   No  electronic  bell
    42  jar vending machine shall be approved by the commission unless the oper-
    43  ation  of the game demonstrates that there is a finite probability basis
    44  of having a predetermined quantity of chances among  which  there  is  a
    45  predetermined  quantity  of  winners  that pay a fixed and predetermined
    46  value of prizes, regardless of the symbols that are used  or  how  those
    47  symbols are displayed on pre-printed bell jar tickets.
    48    (c)  The commission shall promulgate such rules and regulations as may
    49  be necessary for the approval and implementation of electronic bell  jar
    50  vending machine gaming. The commission may revoke, suspend, or condition
    51  approval  of  an  electronic  bell jar vending machine. Upon request for
    52  authorization, the commission shall approve or deny such request  within
    53  thirty  days.  If  the  commission  denies such request for approval, it
    54  shall provide the reasons for such determination.
        S. 6351--B                          3
 
     1    § 4. Subdivision 3 of section 189 of the  general  municipal  law,  as
     2  amended  by  chapter  337  of  the  laws  of 1998, is amended to read as
     3  follows:
     4    3.  No  authorized  organization licensed under the provisions of this
     5  article shall purchase, lease, or  receive  any  supplies  or  equipment
     6  specifically  designed  or  adapted  for  use in the conduct of games of
     7  chance from other than a supplier licensed by the [board] commission  or
     8  from  another  authorized organization. Lease terms and conditions shall
     9  be subject to rules and regulations promulgated by the  [board]  commis-
    10  sion. The provisions of this article shall not be construed to authorize
    11  or  permit an authorized organization to engage in the business of leas-
    12  ing games of chance, supplies, or equipment. Furthermore,  no  organiza-
    13  tion shall purchase bell jar tickets[,] or deals of bell jar tickets, or
    14  purchase  or  lease  any  electronic  bell jar vending machine, from any
    15  other person or organization other than  those  specifically  authorized
    16  under  sections  one hundred ninety-five-n and one hundred ninety-five-o
    17  of this article.
    18    § 5. The opening paragraph of section 189-a of the  general  municipal
    19  law,  as  amended by chapter 164 of the laws of 2003, is amended to read
    20  as follows:
    21    No person, firm, partnership, corporation or organization, shall  sell
    22  or distribute supplies or equipment specifically designed or adapted for
    23  use  in  conduct  of  games  of  chance  without having first obtained a
    24  license therefor upon written application made, verified and filed  with
    25  the  [board]  commission  in  the form prescribed by the rules and regu-
    26  lations of the [board] commission.   As  a  part  of  its  determination
    27  concerning  the  applicant's  suitability  for  licensing  as a games of
    28  chance supplier, the [board] commission shall require the  applicant  to
    29  furnish  to the [board] commission two sets of fingerprints.  Such fing-
    30  erprints shall be submitted to the division of criminal justice services
    31  for a state criminal history record check, as defined in subdivision one
    32  of section three thousand thirty-five of the education law, and  may  be
    33  submitted to the federal bureau of investigation for a national criminal
    34  history record check. Manufacturers of bell jar tickets shall be consid-
    35  ered suppliers of such equipment. In each such application for a license
    36  under  this  section  shall be stated the name and address of the appli-
    37  cant; the names and addresses of its officers,  directors,  shareholders
    38  or  partners;  the  amount  of  gross  receipts realized on the sale and
    39  rental of games of  chance  supplies  and  equipment  to  duly  licensed
    40  authorized  organizations  during  the last preceding calendar or fiscal
    41  year, and such other information as shall be prescribed  by  such  rules
    42  and  regulations. The fee for such license shall be a sum equal to twen-
    43  ty-five dollars plus an amount equal to two  per  centum  of  the  gross
    44  sales  and rentals, if any, of games of chance equipment and supplies to
    45  authorized organizations or authorized games of chance  lessors  by  the
    46  applicant  during  the  preceding  calendar  year, or fiscal year if the
    47  applicant maintains  [his]  their  accounts  on  a  fiscal  year  basis;
    48  provided, however, that for manufacturers of electronic bell jar vending
    49  machines,  the  fee  for such license shall be one thousand dollars.  No
    50  license granted pursuant to the provisions  of  this  section  shall  be
    51  effective for a period of more than one year.
    52    § 6. Section 195-c of the general municipal law, as amended by chapter
    53  252 of the laws of 1998, is amended to read as follows:
    54    §  195-c.  [1.]  Persons operating games; equipment; expenses; compen-
    55  sation.  1. No person shall operate any game of chance under any license
    56  issued under this article except a bona fide member  of  the  authorized
        S. 6351--B                          4
 
     1  organization to which the license is issued, or a bona fide member of an
     2  organization  or  association which is an auxiliary to the licensee or a
     3  bona fide member of an organization or association of which such  licen-
     4  see  is an auxiliary or a bona fide member of an organization or associ-
     5  ation which is affiliated with the licensee by being, with it, auxiliary
     6  to  another  organization  or  association.  Nothing  herein  shall   be
     7  construed to limit the number of games of chance licensees for whom such
     8  persons  may  operate  games  of  chance nor to prevent non-members from
     9  assisting the licensee in any activity other than managing or  operating
    10  games.  No  game  of chance shall be conducted with any equipment except
    11  such as shall be owned or  leased  by  the  authorized  organization  so
    12  licensed  or  used  without  payment of any compensation therefor by the
    13  licensee. However, in no event shall bell  jar  tickets  be  transferred
    14  from  one authorized organization to another, with or without payment of
    15  any compensation thereof. The head or heads of the authorized  organiza-
    16  tion  shall upon request certify, under oath, that the persons operating
    17  any game of chance are bona fide members of  such  authorized  organiza-
    18  tion,  auxiliary  or affiliated organization. Upon request by an officer
    19  or the department any such person involved in such games of chance shall
    20  certify that [he or she has] they have no criminal record. No  items  of
    21  expense  shall  be incurred or paid in connection with the conducting of
    22  any game of chance pursuant to any license  issued  under  this  article
    23  except  those that are reasonable and are necessarily expended for games
    24  of chance supplies and equipment,  prizes,  security  personnel,  stated
    25  rental  if any, bookkeeping or accounting services according to a sched-
    26  ule of compensation prescribed by  the  [board]  commission,  janitorial
    27  services  and utility supplies if any, and license fees, and the cost of
    28  bus transportation, if  authorized  by  such  clerk  or  department.  No
    29  commission,  salary, compensation, reward or recompense shall be paid or
    30  given to any person for the sale or assisting with the  sale  of  raffle
    31  tickets.
    32    2.  For the purpose of the sale of tickets for the game of raffle, the
    33  term "operate" shall not include the sale of such tickets by persons  of
    34  lineal or collateral consanguinity to members of an authorized organiza-
    35  tion licensed to conduct a raffle.
    36    3.  Each electronic bell jar vending machine that has been approved by
    37  the commission pursuant to paragraph (b) of subdivision nine of  section
    38  one hundred eighty-eight-a of this article shall do the following:
    39    (a)  read  a  barcode  or similar form of encryption or marking on the
    40  pre-printed bell jar ticket;
    41    (b) reveal results;
    42    (c) verify if a bell jar ticket is redeemable for a prize;
    43    (d) electronically aggregate winning prizes for continued play;
    44    (e) produce a voucher for prize redemption or proof of purchase;
    45    (f) track the sales of tickets and any other information  as  required
    46  by  the  commission  and  report such sales and other information to the
    47  commission;
    48    (g) prohibit spinning reels or other  representations  or  audiovisual
    49  features that mimic a video lottery terminal or slot machine;
    50    (h)  prohibit  any  electronic user interface that mimics a video slot
    51  machine;
    52    (i) prohibit free plays, bonus games, multipliers, jackpots; provided,
    53  however, that for purposes of   this  paragraph,  the    prohibition  on
    54  "jackpots"  shall  not  include  prizes  that may be won on the bell jar
    55  ticket itself, subject to limitations set forth in  regulations  promul-
        S. 6351--B                          5
 
     1  gated by the commission, discounts, promotions, special offers, or simi-
     2  lar incentives to initiate or prolong player engagement;
     3    (j)  prohibit  any feature that simulates skill or allows player input
     4  to influence the outcome of a predetermined result;
     5    (k) prohibit the display of near-miss  outcomes  that  may  mislead  a
     6  player into believing a win was narrowly missed; and
     7    (l)  limit  the  speed of play to prevent rapid successive wagering as
     8  required by regulations promulgated by the commission.
     9    4. The following information shall be  displayed  by  each  electronic
    10  bell jar vending machine:
    11    (a) the total number of tickets in each deal;
    12    (b) the price of each ticket;
    13    (c) the number and amount of prizes in each deal;
    14    (d)  the  number  of  winners  per  ticket  and its respective winning
    15  numbers or symbols;
    16    (e) the name of the game;
    17    (f) the name or logo of the manufacturer of the tickets and the  elec-
    18  tronic bell jar vending machine;
    19    (g)  the compulsive gambling hotline telephone number for the state of
    20  New York; and
    21    (h) notification that only individuals eighteen years of age or  older
    22  may use an electronic bell jar vending machine.
    23    5.  If a voucher is produced by an electronic bell jar vending machine
    24  for prize redemption, the following information  shall  appear  on  such
    25  voucher:
    26    (a) the aggregate prize amount payable to the player;
    27    (b)  the  device number or other identification method for the vending
    28  machine that produced such voucher;
    29    (c) the date and time that such voucher was printed;
    30    (d) the sequential number  or  other  identification  method  of  such
    31  voucher;
    32    (e)  an  identification  number, barcode or similar form of encryption
    33  that may be used to validate the prize amount payable to the player; and
    34    (f) the period of time during which unused tickets  or  prize  amounts
    35  must be claimed.
    36    6. (a) For the purposes of this subdivision, the following terms shall
    37  have the following meanings:
    38    (i) "Active local member" shall mean an individual who participates in
    39  the  activities  of  an  authorized  organization and resides within the
    40  county where the authorized organization  is  located  or  an  adjoining
    41  county, as defined by rules promulgated by the commission.
    42    (ii)  "Existing  authorized  organization"  shall  mean  an authorized
    43  organization that was licensed to conduct games of chance prior  to  the
    44  effective date of this subdivision.
    45    (iii) "New authorized organization" shall mean an authorized organiza-
    46  tion  that  is first licensed to conduct games of chance on or after the
    47  effective date of this subdivision.
    48    (iv) "Gaming facility" shall mean any commercial casino, video lottery
    49  terminal facility, or tribal gaming facility operating pursuant to state
    50  or federal law. Locations of such facilities shall be  those  identified
    51  by the commission.
    52    (b) The maximum number of electronic bell jar vending machines that an
    53  existing  authorized  organization may operate shall be determined based
    54  upon the number of its active local members, as follows:
        S. 6351--B                          6
 
     1    (i) An existing authorized organization with fewer than  fifty  active
     2  local  members  may  operate a maximum number of one electronic bell jar
     3  vending machine;
     4    (ii)  An existing authorized organization with fifty or more but fewer
     5  than one hundred active local members may operate a maximum of two elec-
     6  tronic bell jar vending machines;
     7    (iii) An existing authorized organization with  one  hundred  or  more
     8  active local members but fewer than two hundred active local members may
     9  operate a maximum of three electronic bell jar vending machines;
    10    (iv)  An existing authorized organization with two hundred or more but
    11  fewer than three hundred active local members may operate a  maximum  of
    12  four electronic bell jar vending machines; and
    13    (v)  An  existing  authorized  organization with three hundred or more
    14  active local members may operate a maximum of five electronic  bell  jar
    15  vending machines.
    16    (c)  A  new authorized organization may operate a maximum of one elec-
    17  tronic bell jar vending machine.
    18    (d) (i) For any authorized organization at a premises  located  within
    19  fifteen  miles  of any gaming facility, the maximum number of electronic
    20  bell jar vending machines that may be operated shall  be  one,  notwith-
    21  standing  the  provisions of paragraph (b) of this subdivision; provided
    22  however, that this limitation  shall  not  apply  to  gaming  facilities
    23  located within cities with a population of one million or more as of the
    24  latest federal decennial census.
    25    (ii)  For  any authorized organization at a premises located more than
    26  fifteen miles but not more than twenty-five miles from any gaming facil-
    27  ity, the maximum number of electronic bell jar vending machines that may
    28  be operated shall be three, notwithstanding the provisions of  paragraph
    29  (b) of this subdivision.
    30    (iii)  In  cities  with  a population of one million or more as of the
    31  latest federal decennial census, the following geographic considerations
    32  shall apply, notwithstanding any other provision of  this  paragraph  or
    33  paragraph (b) of this subdivision:
    34    For any authorized organization at a premises located within two thou-
    35  sand  five  hundred  feet  of any gaming facility, the maximum number of
    36  electronic bell jar vending machines that may be operated shall be  one.
    37  The  commission  shall establish procedures for measuring such distance.
    38  For any authorized organization at a  premises  located  more  than  two
    39  thousand  five  hundred  feet but not more than one mile from any gaming
    40  facility, the maximum number of electronic  bell  jar  vending  machines
    41  that  may be operated shall be one for new authorized organizations. For
    42  existing authorized organizations within this zone, the  maximum  number
    43  of  electronic bell jar vending machines shall be two, provided that the
    44  commission, in authorizing such machines, considers local market  condi-
    45  tions  and  the  objectives of preventing market oversaturation. For any
    46  authorized organization at a premises located more than  one  mile  from
    47  any  gaming  facility, the maximum number of electronic bell jar vending
    48  machines shall be determined in accordance with paragraphs (b)  and  (c)
    49  of  this  subdivision,  provided  that  the  commission shall retain the
    50  discretion to impose stricter limitations  based  on  local  density  of
    51  authorized  organizations  operating  such machines, potential impact on
    52  existing gaming facilities, and other local market  conditions  specific
    53  to  such city, consistent with the objectives set forth in paragraph (e)
    54  of this subdivision.  The  commission  shall,  by  rule  or  regulation,
    55  further  define  the  methodology for assessing local density and market
    56  conditions within such cities and may establish specific zones or  areas
        S. 6351--B                          7
 
     1  where  the  placement of electronic bell jar vending machines is further
     2  limited or requires enhanced review, to  ensure  the  responsible  inte-
     3  gration of such charitable gaming opportunities.
     4    (iv)  The commission shall have the authority to establish, by rule or
     5  regulation, specific proximity zones around  gaming  facilities  and  to
     6  modify the limitations provided in subparagraphs (i), (ii), and (iii) of
     7  this  paragraph  based upon local market conditions, potential impact on
     8  existing gaming facilities, and the need to prevent loss  of  employment
     9  at  such  facilities,  provided  that  any  such  modification  shall be
    10  consistent with the objective of supporting charitable fundraising while
    11  maintaining the existing gaming landscape and preventing market oversat-
    12  uration; provided however, that any such modification  shall  constitute
    13  only a reduction of the thresholds established by this subdivision.
    14    (e)  (i)  Notwithstanding any other provision of this subdivision, the
    15  commission shall have the discretion to determine the  number  of  elec-
    16  tronic  bell jar vending machines that may be operated by any authorized
    17  organization, and the location of such machines; provided however,  that
    18  such  number of machines shall not exceed the limits established in this
    19  subdivision. Such discretion shall  be  exercised  to  ensure  that  the
    20  introduction  and  operation  of  electronic  bell  jar vending machines
    21  occurs exclusively to the fundraising capabilities of legitimate  chari-
    22  table  organizations  while  maintaining the stability of existing regu-
    23  lated gaming sectors and revenue to the state, and avoiding any loss  of
    24  employment at existing gaming facilities.
    25    (ii)  The commission may require periodic reporting or verification of
    26  active local membership to ensure ongoing  compliance  with  eligibility
    27  requirements  and  may  take  enforcement  action  in  cases of material
    28  misrepresentation or sustained noncompliance. The  commission  may  also
    29  take  into consideration reasonable and periodic fluctuations in member-
    30  ship to avoid requiring the removal or retirement of electronic bell jar
    31  vending machines due to temporary or minimal decreases in membership.
    32    (iii) The commission shall deny, revoke, or limit the number of  elec-
    33  tronic  bell jar vending machines an authorized organization may operate
    34  if it determines that such organization  has  been  established,  struc-
    35  tured, or is being utilized, directly or indirectly, to obtain a greater
    36  number of machines than otherwise would be permitted. This includes, but
    37  is  not limited to, the creation of subsidiary entities, shell organiza-
    38  tions, or any other arrangement where the facts and circumstances  indi-
    39  cate  an intent to circumvent the limitations set forth in this subdivi-
    40  sion.  The  commission  is  empowered  to  scrutinize  the   governance,
    41  operational  control,  and financial interdependence of organizations to
    42  make such determinations.
    43    (iv) The co-siting or joint housing of multiple  authorized  organiza-
    44  tions  at  a  single  premises  or  contiguous  premises for the primary
    45  purpose of increasing the aggregate number of electronic bell jar  vend-
    46  ing  machines  at such location beyond what would otherwise be permitted
    47  for a single authorized  organization  operating  at  such  premises  is
    48  prohibited,  unless explicitly authorized by the commission upon a find-
    49  ing that such arrangement is consistent with the public interest and the
    50  objectives of this article.  The commission shall promulgate  rules  and
    51  regulations  to  effectuate  this provision, considering factors such as
    52  shared operational control, membership overlap, and the primary  purpose
    53  of the co-siting arrangement.
    54    7.  The  commission shall promulgate such rules and regulations as may
    55  be necessary for the  implementation  of  electronic  bell  jar  vending
    56  machine  gaming  in  accordance  with  the  provisions  of this section,
        S. 6351--B                          8
 
     1  including but not limited to the verification of active local membership
     2  numbers and assessment of proximity to gaming facilities.
     3    §  7.  Subdivisions  1 and 4 of section 195-n of the general municipal
     4  law, as amended by chapter 637 of the laws of 1999, are amended to  read
     5  as follows:
     6    1.  Distribution; manufacturers. For business conducted in this state,
     7  manufacturers licensed by the [board] commission to sell bell jar  tick-
     8  ets or electronic bell jar vending machines shall sell only such tickets
     9  or  vending machines to distributors licensed by the [board] commission.
    10  Manufacturers of bell jar tickets, seal cards, merchandise  boards,  and
    11  coin  boards  may submit samples, artists' renderings, or color photoco-
    12  pies of proposed bell jar tickets, seal cards, merchandise boards,  coin
    13  boards,  payout cards, and flares for review and approval by the [board]
    14  commission. Within thirty days of receipt of such sample  or  rendering,
    15  the  [board]  commission  shall  approve  or deny such bell jar tickets.
    16  Following approval of a rendering of  a  bell  jar  ticket,  seal  card,
    17  merchandise board, or coin board by the [board] commission, the manufac-
    18  turer  shall  submit  to  the [board] commission a sample of the printed
    19  bell jar ticket, seal card, merchandise board, coin board, payout  card,
    20  and  flare  for  such  game. Such sample shall be submitted prior to the
    21  sale of the game to any licensed distributor for resale in  this  state.
    22  For coin boards and merchandise boards, nothing herein shall require the
    23  submittal  of  actual coins or merchandise as part of the approval proc-
    24  ess. Any licensed manufacturer who willfully violates the provisions  of
    25  this  section  shall:  (a)  upon  such first offense, have their license
    26  suspended for a period of thirty days; (b)  upon  such  second  offense,
    27  participate  in a hearing to be conducted by the [board] commission, and
    28  surrender their license for such period as recommended  by  the  [board]
    29  commission;  and  (c)  upon such third or subsequent offense, have their
    30  license suspended for a period of one year and  shall  be  guilty  of  a
    31  class  E felony. Any unlicensed manufacturer who violates the provisions
    32  of this section shall be guilty of a class E felony.
    33    4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for
    34  resale  in  this state shall file with the [board] commission, on a form
    35  prescribed by the [board] commission a report of all  bell  jar  tickets
    36  sold  to  distributors in the state. The report shall be filed quarterly
    37  on or before the twentieth day of the month succeeding the  end  of  the
    38  quarter  in  which the sale was made. The [board] commission may require
    39  that the report be submitted  via  magnetic  media  or  electronic  data
    40  transfer. Such report shall also include information regarding any elec-
    41  tronic  bell  jar  vending  machines  sold  or  leased  to a distributor
    42  licensed by the commission.
    43    § 8. Subdivisions 1, 3, 4, and 5  of  section  195-o  of  the  general
    44  municipal  law,  subdivision  1 as amended by chapter 637 of the laws of
    45  1999, subdivisions 3 and 4 as added by chapter 309 of the laws  of  1996
    46  and  subdivision  5 as amended by section 16 of part MM of chapter 59 of
    47  the laws of 2017, are amended to read as follows:
    48    1. Distribution; distributors. Any distributor licensed in  accordance
    49  with  section  one  hundred  eighty-nine-a of this article to distribute
    50  bell jar tickets or electronic bell jar vending machines shall  purchase
    51  [bell jar] such tickets and vending machines only from licensed manufac-
    52  turers  and  may  manufacture coin boards and merchandise boards only as
    53  authorized in subdivision one-a of this section.  Licensed  distributors
    54  of  bell jar tickets and electronic bell jar vending machines shall sell
    55  such tickets and vending machines only to not-for-profit, charitable  or
    56  religious  organizations  registered  by  the  [board] commission.   Any
        S. 6351--B                          9
 
     1  licensed distributor who  willfully  violates  the  provisions  of  this
     2  section shall: (a) upon such first offense, have their license suspended
     3  for  a  period of thirty days; (b) upon such second offense, participate
     4  in  a  hearing  to be conducted by the [board] commission, and surrender
     5  their license for such period as recommended by the [board]  commission;
     6  and  (c)  upon  such  third  or  subsequent  offense, have their license
     7  suspended for a period of one year and shall be  guilty  of  a  class  E
     8  felony.  Any  unlicensed  distributor who violates this section shall be
     9  guilty of a class E felony.
    10    3. Sales records. A distributor shall maintain a record  of  all  bell
    11  jar  tickets  that it sells and all electronic bell jar vending machines
    12  that it sells or leases.   The record shall include,  but  need  not  be
    13  limited to:
    14    (a)  the  identity  of  the  manufacturer  from  whom  the distributor
    15  purchased the product;
    16    (b) the serial number of the product;
    17    (c) the name, address, and license or  exempt  permit  number  of  the
    18  organization or person to which the sale was made;
    19    (d) the date of the sale;
    20    (e) the name of the person who ordered the product;
    21    (f) the name of the person who received the product;
    22    (g) the type of product;
    23    [(h) the serial number of the product;
    24    (i)] (h) the account number identifying the sale from the manufacturer
    25  to  distributor  and  the  account  number identifying the sale from the
    26  distributor to the licensed organization; and
    27    [(j)] (i) the name, form number, or other identifying information  for
    28  each game.
    29    4.  Invoices;  agreements.    (a) A distributor shall supply with each
    30  sale of a bell jar product an itemized invoice showing the distributor's
    31  name and address, the purchaser's name, address, and license number, the
    32  date of the sale, the account  number  identifying  the  sale  from  the
    33  manufacturer  to distributor and the account number identifying the sale
    34  from the distributor to the licensed organization, and  the  description
    35  of the deals, including the form number, the serial number and the ideal
    36  gross from every deal of bell jar or similar game.
    37    (b)  Prior  to  the sale, lease, or distribution of an electronic bell
    38  jar vending machine to an authorized organization,  the  distributor  or
    39  manufacturer  shall  provide  the  contract  or agreement for such sale,
    40  lease or distribution to the commission for approval and  any  modifica-
    41  tion  to  such contract or agreement thereafter. Such contract or agree-
    42  ment shall show, at minimum:
    43    (i) the name and address of the authorized organization;
    44    (ii) the date of sale, lease or distribution;
    45    (iii) the serial number of each such machine;
    46    (iv) the material terms and conditions of such contract or  agreement;
    47  and
    48    (v) any additional information as the commission may require.
    49    (c)  The  commission  may promulgate rules and regulations relating to
    50  the terms of any contract or agreement for the sale, lease, or  distrib-
    51  ution  of an electronic bell jar vending machine to an authorized organ-
    52  ization.  The commission shall approve or deny such contract  or  agree-
    53  ment within thirty days of receipt and any material modification to such
    54  contract  or agreement thereafter. If the commission denies approval for
    55  such contract, agreement or modification, it shall provide  the  reasons
    56  for such determination.
        S. 6351--B                         10
 
     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 machines  than  the
    14  number permitted in subdivision six of section one hundred ninety-five-c
    15  of this article.
    16    (c)  No  authorized  organization shall operate an electronic bell jar
    17  vending machine unless it is a games of chance  licensee  authorized  by
    18  the  commission  to operate an electronic bell jar vending machine.  The
    19  commission may promulgate rules and regulations as may be necessary  for
    20  the approval of an authorized organization to operate an electronic bell
    21  jar  vending  machine.  The commission may revoke, suspend, or condition
    22  such approval. The commission shall approve or  deny  such  request  for
    23  such approval within thirty days. If the commission denies such request,
    24  it shall provide the reasons for such determination.
    25    (d)  Each  bell  jar  vending machine shall generate sales reports and
    26  such other information that the commission  may  direct  by  regulation.
    27  The  commission  shall have access to the server of each electronic bell
    28  jar vending machine for the purpose of monitoring  and  auditing  at  no
    29  cost to the state.
    30    (e)  Any  unclaimed  funds  or tickets left in any electronic bell jar
    31  vending machine shall be retained by  the  authorized  organization  and
    32  reported as net proceeds.
    33    § 10. This act shall take effect immediately.