STATE OF NEW YORK ________________________________________________________________________ 6175 2023-2024 Regular Sessions IN SENATE April 3, 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 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- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08307-01-3
S. 6175 2 1 ant to this article is an auxiliary; or a bona fide member of an organ- 2 ization or association which is affiliated with an authorized 3 organization licensed pursuant to this article by being, with it, auxil- 4 iary to another organization or association. 5 6. "Net proceeds" shall mean (a) in relation to the gross receipts 6 from one or more license periods of games of chance, the amount that 7 shall remain after deducting the reasonable sums necessarily and actual- 8 ly expended for conducting games of chance including, but not limited 9 to, supplies and equipment, prizes, security-personnel, stated rental if 10 any, bookkeeping or accounting services according to a schedule of 11 compensation prescribed by the board, janitorial services and utility 12 supplies if any, license fees, and [the cost of bus transportation] 13 reimbursement of reasonable expenses incurred by volunteers who donate 14 their time to hold, operate or conduct, or assist in the conduct of such 15 games, and as authorized by the board and if authorized by the clerk or 16 department and (b) in relation to the gross rent received by an author- 17 ized games of chance lessor for the use of its premises by a game of 18 chance licensee, the amount that shall remain after deducting the 19 reasonable sums necessarily and actually expended for janitorial 20 services and utility supplies directly attributable thereto if any. 21 22. "Reasonable expenses" shall include, but not be limited to, child 22 care expenses, transportation expenses, meals and other expenses, as 23 determined and regulated by the board. 24 § 2. Subdivisions 4, 5, 6, 8, 10 and 11 of section 189 of the general 25 municipal law, subdivisions 4, 10 and 11 as amended by chapter 574 of 26 the laws of 1978, subdivisions 5 and 6 as amended by section 11 of part 27 MM of chapter 59 of the laws of 2017 and subdivision 8 as amended by 28 chapter 434 of the laws of 2016, are amended to read as follows: 29 4. The entire net proceeds of any game of chance shall be exclusively 30 devoted to the lawful purposes of the organization permitted to conduct 31 the same and the net proceeds of any rental derived therefrom shall be 32 exclusively devoted to the lawful purposes of the authorized games of 33 chance lessor; provided, however, that a person may accept reimbursement 34 of reasonable expenses incurred to manage, hold, operate or conduct such 35 games. 36 5. (a) No single prize awarded by games of chance other than raffle 37 shall exceed the sum or value of [three] four hundred dollars, except 38 that for merchandise wheels, no single prize shall exceed the sum or 39 value of [two] three hundred [fifty] dollars, and for bell jar, no 40 single prize shall exceed the sum or value of one thousand dollars. 41 (b) No single prize awarded by raffle shall exceed the sum or value of 42 three hundred thousand dollars. 43 (c) No single wager shall exceed six dollars and for bell jars, coin 44 boards or merchandise boards, no single prize shall exceed one thousand 45 dollars, provided, however, that such limitation shall not apply to the 46 amount of money or value paid by the participant in a raffle in return 47 for a ticket or other receipt. 48 (d) For coin boards and merchandise boards, the value of a prize shall 49 be determined by the cost of such prize to the authorized organization 50 or, if donated, the fair market value of such prize. 51 6. (a) No authorized organization shall award a series of prizes 52 consisting of cash or of merchandise with an aggregate value in excess 53 of: 54 (1) ten thousand dollars during the successive operations of any one 55 merchandise wheel or bell jar; and
S. 6175 3 1 (2) six thousand dollars during the successive operations of any [bell 2 jar,] coin board or merchandise board. 3 (b) No series of prizes awarded by raffle shall have an aggregate 4 value in excess of five hundred thousand dollars. 5 (c) For coin boards and merchandise boards, the value of a prize shall 6 be determined by the cost of such prize to the authorized organization 7 or, if donated, the fair market value of such prize. 8 8. Except for merchandise wheels and raffles, no series of prizes on 9 any one occasion shall aggregate more than [four] five hundred dollars 10 when the licensed authorized organization conducts five single types of 11 games of chance during any one license period. Except for merchandise 12 wheels, raffles and bell jars, no series of prizes on any one occasion 13 shall aggregate more than five hundred dollars when the licensed author- 14 ized organization conducts less than five single types of games of 15 chance, exclusive of merchandise wheels, raffles and bell jars, during 16 any one license period. No authorized organization shall award by raffle 17 prizes with an aggregate value in excess of three million dollars during 18 any one license period. 19 10. No person except a bona fide member of the licensed authorized 20 organization or an auxiliary member of such organization shall partic- 21 ipate in the management of such games[; no person except a bona fide 22 member of the licensed authorized organization, its auxiliary or affil- 23 iated organization, shall participate in the operation of such game, as 24 set forth in section one hundred ninety-five-c of this article]. 25 11. No person shall receive any remuneration for participating in the 26 management or operation of any such game; provided, however, that a 27 person may accept reimbursement of reasonable expenses incurred to 28 manage, hold, operate or conduct games of chance. 29 § 3. Subparagraph 5 of paragraph (a) of subdivision 1 of section 190 30 of the general municipal law, as amended by chapter 574 of the laws of 31 1978, is amended to read as follows: 32 (5) the purposes to which the entire net proceeds of such games are to 33 be devoted and in what manner; that no commission, salary, compen- 34 sation[,] or reward [or recompense] will be paid to any person for 35 conducting such game or games or for assisting therein except as in this 36 article otherwise provided; and such other information as shall be 37 prescribed by such rules and regulations. 38 § 4. Paragraph (b) of subdivision 1 of section 190 of the general 39 municipal law, as amended by chapter 574 of the laws of 1978, is amended 40 to read as follows: 41 (b) In each application there shall be designated not less than [four] 42 three bona fide members of the applicant organization under whom the 43 game or games of chance will be managed and to the application shall be 44 appended a statement executed by the members so designated, that they 45 will be responsible for the management of such games in accordance with 46 the terms of the license, the rules and regulations of the board, this 47 article and the applicable local laws or ordinances. 48 § 5. Subdivision 3 of section 190-a of the general municipal law, as 49 added by chapter 400 of the laws of 2005, is amended to read as follows: 50 3. No person under the age of eighteen shall be permitted to play[, 51 operate or assist] in any raffle conducted pursuant to this section. No 52 person under the age of eighteen years shall be permitted to operate or 53 assist in any raffle conducted pursuant to this section; provided, 54 however, that a person under the age of eighteen years and who is 55 sixteen years of age or older shall be permitted to assist in any raffle 56 if accompanied by an adult.
S. 6175 4 1 § 6. Paragraph (a) of subdivision 1 of section 191 of the general 2 municipal law, as amended by section 2 of subpart E of part II of chap- 3 ter 55 of the laws of 2019, is amended to read as follows: 4 (a) Issuance of licenses to conduct games of chance. If such clerk or 5 department determines: 6 (i) that the applicant is duly qualified to be licensed to conduct 7 games of chance under this article; 8 (ii) that the member or members of the applicant designated in the 9 application to manage games of chance are bona fide active members of 10 the applicant and are persons of good moral character and have never 11 been convicted of a crime if there is a direct relationship between one 12 or more of the previous criminal offenses and the integrity or safety of 13 charitable gaming, considering the factors set forth in article twenty- 14 three-A of the correction law, or, if convicted, the member or members 15 are participating in a rehabilitation program licensed or certified by a 16 state agency and operated by the applicant or an auxiliary thereof; 17 (iii) that such games are to be conducted in accordance with the 18 provisions of this article and in accordance with the rules and regu- 19 lations of the gaming commission and applicable local laws or ordinances 20 and that the proceeds thereof are to be disposed of as provided by this 21 article; and 22 (iv) that no commission, salary, compensation[,] or reward [or recom- 23 pense] whatever will be paid or given to any person managing, operating 24 or assisting therein except as [in this article] otherwise provided in 25 this article, including reimbursement of reasonable expenses incurred by 26 volunteers who donate their time to hold, operate or conduct, or assist 27 in the conduct of such games; then such clerk or department shall issue 28 a license to the applicant for the conduct of games of chance upon 29 payment of a license fee of twenty-five dollars for each license period. 30 § 7. Section 195 of the general municipal law, as amended by chapter 31 461 of the laws of 2003, is amended to read as follows: 32 § 195. Sunday; conduct of games on. Except as provided in section one 33 hundred ninety-five-b of this article, [no] games of chance [shall] may 34 be conducted under any license issued under this article on the first 35 day of the week, commonly known and designated as Sunday, unless it 36 shall be otherwise provided in the license issued for the conducting 37 thereof, pursuant to the provisions of a local law or an ordinance duly 38 adopted by the governing body of the municipality wherein the license is 39 issued, [authorizing] prohibiting the conduct of games of chance under 40 this article on that day [only between the hours of noon and midnight]. 41 Notwithstanding the foregoing provisions of this section no games of 42 chance shall be conducted on Easter Sunday or Christmas Day. 43 § 8. Section 195-a of the general municipal law, as amended by chapter 44 574 of the laws of 1978, is amended to read as follows: 45 § 195-a. Participation by persons under eighteen. No person under the 46 age of eighteen years shall be permitted to play any game or games of 47 chance conducted pursuant to any license issued under this article. 48 Persons under the age of eighteen years may be permitted to attend games 49 of chance [at the discretion of the games of chance licensee]. No 50 person under the age of eighteen years shall be permitted to operate any 51 game of chance conducted pursuant to any license issued under this arti- 52 cle or to assist therein; provided, however, that a person under the age 53 of eighteen years and who is sixteen years of age or older shall be 54 permitted to assist in the operation of any game of chance if accompa- 55 nied by a parent.
S. 6175 5 1 § 9. Section 195-b of the general municipal law, as amended by chapter 2 252 of the laws of 1998, is amended to read as follows: 3 § 195-b. Frequency of games. No game or games of chance, shall be 4 conducted under any license issued under this article more often than 5 [twelve] eighteen times in any calendar year. No particular premises 6 shall be used for the conduct of games of chance on more than twenty- 7 four license periods during any one calendar year. Games shall be 8 conducted only between the hours of noon and midnight on Sunday, Monday, 9 Tuesday, Wednesday and Thursday, and only between the hours of noon on 10 Friday and two A.M. Saturday, and only between the hours of noon on 11 Saturday and two A.M. Sunday. The two A.M. closing period shall also 12 apply to a legal holiday. The above restrictions shall not apply when 13 only the games of chance known as bell jar and/or raffle are conducted. 14 § 10. Section 195-c of the general municipal law, as amended by chap- 15 ter 252 of the laws of 1998, is amended to read as follows: 16 § 195-c. [1.] Persons operating games; equipment; expenses; compen- 17 sation. 1. No person shall operate any game of chance under any license 18 issued under this article except a bona fide member or auxiliary member 19 of the authorized organization to which the license is issued[, or a 20 bona fide member of an organization or association which is an auxiliary 21 to the licensee or a bona fide member of an organization or association 22 of which such licensee is an auxiliary or a bona fide member of an 23 organization or association which is affiliated with the licensee by 24 being, with it, auxiliary to another organization or association]. Noth- 25 ing herein shall be construed to limit the number of games of chance 26 licensees for whom such persons may operate games of chance nor to 27 prevent non-members from assisting the licensee in any activity other 28 than managing or operating games. No game of chance shall be conducted 29 with any equipment except such as shall be owned or leased by the 30 authorized organization so licensed or used without payment of any 31 compensation therefor by the licensee. However, in no event shall bell 32 jar tickets be transferred from one authorized organization to another, 33 with or without payment of any compensation thereof. The head or heads 34 of the authorized organization shall upon request certify, under oath, 35 that the persons operating any game of chance are bona fide or auxiliary 36 members of such authorized organization, auxiliary or affiliated organ- 37 ization. Upon request by an officer or the department any such person 38 involved in such games of chance shall certify that he or she has no 39 criminal record. No items of expense shall be incurred or paid in 40 connection with the conducting of any game of chance pursuant to any 41 license issued under this article except those that are reasonable and 42 are necessarily expended for games of chance supplies and equipment, 43 prizes, security personnel, stated rental if any, bookkeeping or 44 accounting services according to a schedule of compensation prescribed 45 by the board, janitorial services and utility supplies if any, and 46 license fees, reimbursement of reasonable expenses incurred by volun- 47 teers who donate their time to operate or assist in the operation of 48 games of chance and the cost of bus transportation, if authorized by 49 such clerk or department. No commission, salary, compensation[,] or 50 reward [or recompense] shall be paid or given to any person for the sale 51 or assisting with the sale of raffle tickets. 52 2. For the purpose of the sale of tickets for the game of raffle, the 53 term "operate" shall not include the sale of such tickets by persons of 54 lineal or collateral consanguinity to members of an authorized organiza- 55 tion licensed to conduct a raffle.
S. 6175 6 1 § 11. Section 195-e of the general municipal law, as amended by 2 section 14 of part MM of chapter 59 of the laws of 2017, is amended to 3 read as follows: 4 § 195-e. Advertising games. A licensee may advertise the conduct of 5 games of chance to the general public by means of newspaper, circular, 6 handbill [and], poster, electronic mail, electronic communications and 7 government access television broadcasts, and by one sign not exceeding 8 sixty square feet in area, which may be displayed on or adjacent to the 9 premises owned or occupied by a licensed authorized organization, 10 through the internet or television as may be regulated by the rules and 11 regulations of the commission. When an organization is licensed or 12 authorized to conduct games of chance on the premises of an authorized 13 games of chance lessor, one additional such sign may be displayed on or 14 adjacent to the premises in which the games are to be conducted. Addi- 15 tional signs may be displayed upon any firefighting or ambulance equip- 16 ment belonging to any licensed authorized organization that is a volun- 17 teer fire company, volunteer ambulance corps or upon any equipment of a 18 first aid or rescue squad in and throughout the community served by such 19 volunteer fire company, volunteer ambulance corps or such first aid or 20 rescue squad, as the case may be. All advertisements shall be limited to 21 the description of such event as "Games of chance" or "Las Vegas Night", 22 the name of the authorized organization conducting such games, the 23 license number of the authorized organization as assigned by the clerk 24 or department, the prizes offered and the date, location and time of the 25 event. 26 § 12. Subdivision 3 of section 195-f of the general municipal law, as 27 amended by chapter 550 of the laws of 1994, is amended to read as 28 follows: 29 3. Any authorized organization required to file an annual report with 30 the secretary of state pursuant to article seven-A of the executive law 31 [or the attorney general pursuant to article eight of the estates, 32 powers and trusts law] shall include with such annual report a copy of 33 the statement required to be filed with the clerk or department pursuant 34 to subdivision one or two of this section. 35 § 13. Subdivision 1 of section 195-n of the general municipal law, as 36 amended by chapter 637 of the laws of 1999, is amended to read as 37 follows: 38 1. Distribution; manufacturers. For business conducted in this state, 39 manufacturers licensed by the board to sell bell jar tickets shall sell 40 only such tickets to distributors licensed by the board. Manufacturers 41 of bell jar tickets, seal cards, merchandise boards, and coin boards may 42 submit samples, artists' renderings, or color photocopies of proposed 43 bell jar tickets, seal cards, merchandise boards, coin boards, payout 44 cards, and flares for review and approval by the board. Within thirty 45 days of receipt of such sample or rendering, the board shall approve or 46 deny such bell jar tickets. [Following approval of a rendering of a bell 47 jar ticket, seal card, merchandise board, or coin board by the board] 48 Prior to the sale of a bell jar game, jar ticket, seal card, merchandise 49 board or coin board to any licensed distributor for resale in this 50 state, the manufacturer shall submit to the board a sample of the print- 51 ed bell jar ticket, seal card, merchandise board, coin board, payout 52 card, and flare for such game. [Such sample shall be submitted prior to 53 the sale of the game to any licensed distributor for resale in this 54 state.] Within forty-five days of receipt of such sample, the board 55 shall approve or deny the bell jar ticket, jar ticket, seal card, 56 merchandise board or coin board. For coin boards and merchandise boards,
S. 6175 7 1 nothing herein shall require the submittal of actual coins or merchan- 2 dise as part of the approval process. Any licensed manufacturer who 3 willfully violates the provisions of this section shall: (a) upon such 4 first offense, have their license suspended for a period of thirty days; 5 (b) upon such second offense, participate in a hearing to be conducted 6 by the board, and surrender their license for such period as recommended 7 by the board; and (c) upon such third or subsequent offense, have their 8 license suspended for a period of one year and shall be guilty of a 9 class E felony. Any unlicensed manufacturer who violates the provisions 10 of this section shall be guilty of a class E felony. 11 § 14. This act shall take effect on the first of January next succeed- 12 ing the date on which it shall have become a law.