S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2259
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2021
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 AN ACT to amend the general municipal law, in relation to the conducting
   of games of chance by certain organizations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Subdivisions 4 and 6 of section 186 of the general munici-
 pal law, subdivision 4 as amended by chapter 476 of the laws of 2018 and
 subdivision 6 as amended by chapter 574 of the laws of 1978, are amended
 and two new subdivisions 4-a and 22 are added to read as follows:
   4. "Authorized organization" shall mean  and  include  any  bona  fide
 religious or charitable organization or bona fide educational, fraternal
 or  service organization or bona fide organization of veterans or volun-
 teer firefighters OR VOLUNTEER AMBULANCE WORKERS, which by its  charter,
 certificate  of  incorporation, constitution, or act of the legislature,
 shall have among its  dominant  purposes  one  or  more  of  the  lawful
 purposes  as  defined  in this article, provided that each shall operate
 without profit to its members, and provided that each such  organization
 has  engaged in serving one or more of the lawful purposes as defined in
 this article for a period of three years immediately prior  to  applying
 for a license under this article.
   No  organization  shall  be deemed an authorized organization which is
 formed primarily for the purpose of conducting games of chance and which
 does not devote at least seventy-five percent of its activities to other
 than conducting games of chance. No political party shall be  deemed  an
 authorized organization.
   4-A.  "AUXILIARY MEMBER" SHALL MEAN A BONA FIDE MEMBER OF AN ORGANIZA-
 TION  OR  ASSOCIATION  WHICH  IS AUXILIARY TO AN AUTHORIZED ORGANIZATION
 LICENSED PURSUANT TO THIS ARTICLE; OR A BONA FIDE MEMBER OF AN ORGANIZA-
 TION OR ASSOCIATION OF WHICH AN AUTHORIZED ORGANIZATION LICENSED  PURSU-
 ANT  TO THIS ARTICLE IS AN AUXILIARY; OR A BONA FIDE MEMBER OF AN ORGAN-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06540-01-1

 A. 2259                             2
 
 IZATION  OR  ASSOCIATION  WHICH  IS  AFFILIATED   WITH   AN   AUTHORIZED
 ORGANIZATION LICENSED PURSUANT TO THIS ARTICLE BY BEING, WITH IT, AUXIL-
 IARY TO ANOTHER ORGANIZATION OR ASSOCIATION.
   6.  "Net  proceeds"  shall  mean (a) in relation to the gross receipts
 from one or more license periods of games of  chance,  the  amount  that
 shall remain after deducting the reasonable sums necessarily and actual-
 ly  expended  for  CONDUCTING GAMES OF CHANCE INCLUDING, BUT NOT LIMITED
 TO, supplies and equipment, prizes, security-personnel, stated rental if
 any, bookkeeping or accounting  services  according  to  a  schedule  of
 compensation  prescribed  by  the board, janitorial services and utility
 supplies if any, license fees, and  [the  cost  of  bus  transportation]
 REIMBURSEMENT  OF  REASONABLE EXPENSES INCURRED BY VOLUNTEERS WHO DONATE
 THEIR TIME TO HOLD, OPERATE OR CONDUCT, OR ASSIST IN THE CONDUCT OF SUCH
 GAMES, AND AS AUTHORIZED BY THE BOARD AND if authorized by the clerk  or
 department  and (b) in relation to the gross rent received by an author-
 ized games of chance lessor for the use of its premises  by  a  game  of
 chance  licensee,  the  amount  that  shall  remain  after deducting the
 reasonable  sums  necessarily  and  actually  expended  for   janitorial
 services and utility supplies directly attributable thereto if any.
   22.  "REASONABLE EXPENSES" SHALL INCLUDE, BUT NOT BE LIMITED TO, CHILD
 CARE EXPENSES, TRANSPORTATION EXPENSES, MEALS  AND  OTHER  EXPENSES,  AS
 DETERMINED AND REGULATED BY THE BOARD.
   §  2. Subdivisions 4, 5, 6, 8, 10 and 11 of section 189 of the general
 municipal law, subdivisions 4, 10 and 11 as amended by  chapter  574  of
 the  laws of 1978, subdivisions 5 and 6 as amended by section 11 of part
 MM of chapter 59 of the laws of 2017 and subdivision  8  as  amended  by
 chapter 434 of the laws of 2016, are amended to read as follows:
   4.  The entire net proceeds of any game of chance shall be exclusively
 devoted to the lawful purposes of the organization permitted to  conduct
 the  same  and the net proceeds of any rental derived therefrom shall be
 exclusively devoted to the lawful purposes of the  authorized  games  of
 chance lessor; PROVIDED, HOWEVER, THAT A PERSON MAY ACCEPT REIMBURSEMENT
 OF REASONABLE EXPENSES INCURRED TO MANAGE, HOLD, OPERATE OR CONDUCT SUCH
 GAMES.
   5.  (a)  No  single prize awarded by games of chance other than raffle
 shall exceed the sum or value of [three] FOUR  hundred  dollars,  except
 that  for  merchandise  wheels,  no single prize shall exceed the sum or
 value of [two] THREE hundred [fifty]  dollars,  and  for  bell  jar,  no
 single prize shall exceed the sum or value of one thousand dollars.
   (b) No single prize awarded by raffle shall exceed the sum or value of
 three hundred thousand dollars.
   (c)  No  single wager shall exceed six dollars and for bell jars, coin
 boards or merchandise boards, no single prize shall exceed one  thousand
 dollars,  provided, however, that such limitation shall not apply to the
 amount of money or value paid by the participant in a raffle  in  return
 for a ticket or other receipt.
   (d) For coin boards and merchandise boards, the value of a prize shall
 be  determined  by the cost of such prize to the authorized organization
 or, if donated, the fair market value of such prize.
   6. (a) No authorized organization  shall  award  a  series  of  prizes
 consisting  of  cash or of merchandise with an aggregate value in excess
 of:
   (1) ten thousand dollars during the successive operations of  any  one
 merchandise wheel OR BELL JAR; and
   (2) six thousand dollars during the successive operations of any [bell
 jar,] coin board or merchandise board.

 A. 2259                             3
 
   (b)  No  series  of  prizes  awarded by raffle shall have an aggregate
 value in excess of five hundred thousand dollars.
   (c) For coin boards and merchandise boards, the value of a prize shall
 be  determined  by the cost of such prize to the authorized organization
 or, if donated, the fair market value of such prize.
   8. Except for merchandise wheels and raffles, no series of  prizes  on
 any  one  occasion shall aggregate more than [four] FIVE hundred dollars
 when the licensed authorized organization conducts five single types  of
 games  of  chance  during any one license period. Except for merchandise
 wheels, raffles and bell jars, no series of prizes on any  one  occasion
 shall aggregate more than five hundred dollars when the licensed author-
 ized  organization  conducts  less  than  five  single types of games of
 chance, exclusive of merchandise wheels, raffles and bell  jars,  during
 any one license period. No authorized organization shall award by raffle
 prizes with an aggregate value in excess of three million dollars during
 any one license period.
   10.  No  person  except  a bona fide member of the licensed authorized
 organization OR AN AUXILIARY MEMBER OF SUCH ORGANIZATION  shall  partic-
 ipate  in  the  management  of such games[; no person except a bona fide
 member of the licensed authorized organization, its auxiliary or  affil-
 iated  organization, shall participate in the operation of such game, as
 set forth in section one hundred ninety-five-c of this article].
   11. No person shall receive any remuneration for participating in  the
 management  or  operation  of  any  such game; PROVIDED, HOWEVER, THAT A
 PERSON MAY ACCEPT  REIMBURSEMENT  OF  REASONABLE  EXPENSES  INCURRED  TO
 MANAGE, HOLD, OPERATE OR CONDUCT GAMES OF CHANCE.
   §  3.  Subparagraph 5 of paragraph (a) of subdivision 1 of section 190
 of the general municipal law, as amended by chapter 574 of the  laws  of
 1978, is amended to read as follows:
   (5) the purposes to which the entire net proceeds of such games are to
 be  devoted  and  in  what  manner;  that no commission, salary, compen-
 sation[,] OR reward [or recompense] will  be  paid  to  any  person  for
 conducting such game or games or for assisting therein except as in this
 article  otherwise  provided;  and  such  other  information as shall be
 prescribed by such rules and regulations.
   § 4. Paragraph (b) of subdivision 1 of  section  190  of  the  general
 municipal law, as amended by chapter 574 of the laws of 1978, is amended
 to read as follows:
   (b) In each application there shall be designated not less than [four]
 THREE  bona  fide  members  of the applicant organization under whom the
 game or games of chance will be managed and to the application shall  be
 appended  a  statement  executed by the members so designated, that they
 will be responsible for the management of such games in accordance  with
 the  terms  of the license, the rules and regulations of the board, this
 article and the applicable local laws or ordinances.
   § 5. Subdivision 3 of section 190-a of the general municipal  law,  as
 added by chapter 400 of the laws of 2005, is amended to read as follows:
   3.  No  person  under the age of eighteen shall be permitted to play[,
 operate or assist] in any raffle conducted pursuant to this section.  NO
 PERSON UNDER THE AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO OPERATE  OR
 ASSIST  IN  ANY  RAFFLE  CONDUCTED  PURSUANT  TO THIS SECTION; PROVIDED,
 HOWEVER, THAT A PERSON UNDER THE  AGE  OF  EIGHTEEN  YEARS  AND  WHO  IS
 SIXTEEN YEARS OF AGE OR OLDER SHALL BE PERMITTED TO ASSIST IN ANY RAFFLE
 IF ACCOMPANIED BY AN ADULT.

 A. 2259                             4
 
   §  6.  Paragraph  (a)  of  subdivision 1 of section 191 of the general
 municipal law, as amended by section 2 of subpart E of part II of  chap-
 ter 55 of the laws of 2019, is amended to read as follows:
   (a)  Issuance of licenses to conduct games of chance. If such clerk or
 department determines:
   (i) that the applicant is duly qualified to  be  licensed  to  conduct
 games of chance under this article;
   (ii)  that  the  member  or members of the applicant designated in the
 application to manage games of chance are bona fide  active  members  of
 the  applicant  and  are  persons of good moral character and have never
 been convicted of a crime if there is a direct relationship between  one
 or more of the previous criminal offenses and the integrity or safety of
 charitable  gaming, considering the factors set forth in article twenty-
 three-A of the correction law, OR, IF CONVICTED, THE MEMBER  OR  MEMBERS
 ARE PARTICIPATING IN A REHABILITATION PROGRAM LICENSED OR CERTIFIED BY A
 STATE AGENCY AND OPERATED BY THE APPLICANT OR AN AUXILIARY THEREOF;
   (iii)  that  such  games  are  to  be conducted in accordance with the
 provisions of this article and in accordance with the  rules  and  regu-
 lations of the gaming commission and applicable local laws or ordinances
 and  that the proceeds thereof are to be disposed of as provided by this
 article; and
   (iv) that no commission, salary, compensation[,] OR reward [or  recom-
 pense]  whatever will be paid or given to any person managing, operating
 or assisting therein except as [in this article] otherwise  provided  IN
 THIS ARTICLE, INCLUDING REIMBURSEMENT OF REASONABLE EXPENSES INCURRED BY
 VOLUNTEERS  WHO DONATE THEIR TIME TO HOLD, OPERATE OR CONDUCT, OR ASSIST
 IN THE CONDUCT OF SUCH GAMES; then such clerk or department shall  issue
 a  license  to  the  applicant  for  the conduct of games of chance upon
 payment of a license fee of twenty-five dollars for each license period.
   § 7. Section 195 of the general municipal law, as amended  by  chapter
 461 of the laws of 2003, is amended to read as follows:
   §  195. Sunday; conduct of games on. Except as provided in section one
 hundred ninety-five-b of this article, [no] games of chance [shall]  MAY
 be  conducted  under  any license issued under this article on the first
 day of the week, commonly known and  designated  as  Sunday,  unless  it
 shall  be  otherwise  provided  in the license issued for the conducting
 thereof, pursuant to the provisions of a local law or an ordinance  duly
 adopted by the governing body of the municipality wherein the license is
 issued,  [authorizing]  PROHIBITING the conduct of games of chance under
 this article on that day [only between the hours of noon and  midnight].
 Notwithstanding  the  foregoing  provisions  of this section no games of
 chance shall be conducted on Easter Sunday or Christmas Day.
   § 8. Section 195-a of the general municipal law, as amended by chapter
 574 of the laws of 1978, is amended to read as follows:
   § 195-a. Participation by persons under eighteen. No person under  the
 age  of  eighteen  years shall be permitted to play any game or games of
 chance conducted pursuant to any  license  issued  under  this  article.
 Persons under the age of eighteen years may be permitted to attend games
 of  chance  [at  the  discretion  of the games of chance licensee].   No
 person under the age of eighteen years shall be permitted to operate any
 game of chance conducted pursuant to any license issued under this arti-
 cle or to assist therein; PROVIDED, HOWEVER, THAT A PERSON UNDER THE AGE
 OF EIGHTEEN YEARS AND WHO IS SIXTEEN YEARS OF  AGE  OR  OLDER  SHALL  BE
 PERMITTED  TO  ASSIST IN THE OPERATION OF ANY GAME OF CHANCE IF ACCOMPA-
 NIED BY A PARENT.

 A. 2259                             5
 
   § 9. Section 195-b of the general municipal law, as amended by chapter
 252 of the laws of 1998, is amended to read as follows:
   §  195-b.  Frequency  of  games.  No game or games of chance, shall be
 conducted under any license issued under this article  more  often  than
 [twelve]  EIGHTEEN  times  in  any calendar year. No particular premises
 shall be used for the conduct of games of chance on  more  than  twenty-
 four  license  periods  during  any  one  calendar  year. Games shall be
 conducted only between the hours of noon and midnight on SUNDAY, Monday,
 Tuesday, Wednesday and Thursday, and only between the hours of  noon  on
 Friday  and  two  A.M.   Saturday, and only between the hours of noon on
 Saturday and two A.M.  Sunday. The two A.M. closing  period  shall  also
 apply  to  a legal holiday.  The above restrictions shall not apply when
 only the games of chance known as bell jar and/or raffle are conducted.
   § 10. Section 195-c of the general municipal law, as amended by  chap-
 ter 252 of the laws of 1998, is amended to read as follows:
   §  195-c.  [1.]  Persons operating games; equipment; expenses; compen-
 sation.  1. No person shall operate any game of chance under any license
 issued under this article except a bona fide member OR AUXILIARY  MEMBER
 of  the  authorized  organization  to which the license is issued[, or a
 bona fide member of an organization or association which is an auxiliary
 to the licensee or a bona fide member of an organization or  association
 of  which  such  licensee  is  an  auxiliary or a bona fide member of an
 organization or association which is affiliated  with  the  licensee  by
 being, with it, auxiliary to another organization or association]. Noth-
 ing  herein  shall  be  construed to limit the number of games of chance
 licensees for whom such persons may  operate  games  of  chance  nor  to
 prevent  non-members  from  assisting the licensee in any activity other
 than managing or operating games. No game of chance shall  be  conducted
 with  any  equipment  except  such  as  shall  be owned or leased by the
 authorized organization so licensed  or  used  without  payment  of  any
 compensation  therefor  by the licensee. However, in no event shall bell
 jar tickets be transferred from one authorized organization to  another,
 with  or  without payment of any compensation thereof. The head or heads
 of the authorized organization shall upon request certify,  under  oath,
 that the persons operating any game of chance are bona fide OR AUXILIARY
 members  of such authorized organization, auxiliary or affiliated organ-
 ization. Upon request by an officer or the department  any  such  person
 involved  in  such  games  of chance shall certify that he or she has no
 criminal record. No items of  expense  shall  be  incurred  or  paid  in
 connection  with  the  conducting  of any game of chance pursuant to any
 license issued under this article except those that are  reasonable  and
 are  necessarily  expended  for  games of chance supplies and equipment,
 prizes,  security  personnel,  stated  rental  if  any,  bookkeeping  or
 accounting  services  according to a schedule of compensation prescribed
 by the board, janitorial services  and  utility  supplies  if  any,  and
 license  fees,  REIMBURSEMENT  OF REASONABLE EXPENSES INCURRED BY VOLUN-
 TEERS WHO DONATE THEIR TIME TO OPERATE OR ASSIST  IN  THE  OPERATION  OF
 GAMES  OF  CHANCE  and  the cost of bus transportation, if authorized by
 such clerk or department.  No  commission,  salary,  compensation[,]  OR
 reward [or recompense] shall be paid or given to any person for the sale
 or assisting with the sale of raffle tickets.
   2.  For the purpose of the sale of tickets for the game of raffle, the
 term "operate" shall not include the sale of such tickets by persons  of
 lineal or collateral consanguinity to members of an authorized organiza-
 tion licensed to conduct a raffle.

 A. 2259                             6
 
   §  11.  Section  195-e  of  the  general  municipal law, as amended by
 section 14 of part MM of chapter 59 of the laws of 2017, is  amended  to
 read as follows:
   §  195-e.  Advertising  games. A licensee may advertise the conduct of
 games of chance to the general public by means of  newspaper,  circular,
 handbill  [and],  poster, ELECTRONIC MAIL, ELECTRONIC COMMUNICATIONS AND
 GOVERNMENT ACCESS TELEVISION BROADCASTS, and by one sign  not  exceeding
 sixty  square feet in area, which may be displayed on or adjacent to the
 premises owned  or  occupied  by  a  licensed  authorized  organization,
 through  the internet or television as may be regulated by the rules and
 regulations of the commission.  When  an  organization  is  licensed  or
 authorized  to  conduct games of chance on the premises of an authorized
 games of chance lessor, one additional such sign may be displayed on  or
 adjacent  to  the premises in which the games are to be conducted. Addi-
 tional signs may be displayed upon any firefighting or ambulance  equip-
 ment  belonging to any licensed authorized organization that is a volun-
 teer fire company, volunteer ambulance corps or upon any equipment of  a
 first aid or rescue squad in and throughout the community served by such
 volunteer  fire  company, volunteer ambulance corps or such first aid or
 rescue squad, as the case may be. All advertisements shall be limited to
 the description of such event as "Games of chance" or "Las Vegas Night",
 the name of the  authorized  organization  conducting  such  games,  the
 license  number  of the authorized organization as assigned by the clerk
 or department, the prizes offered and the date, location and time of the
 event.
   § 12. Subdivision 3 of section 195-f of the general municipal law,  as
 amended  by  chapter  550  of  the  laws  of 1994, is amended to read as
 follows:
   3. Any authorized organization required to file an annual report  with
 the  secretary of state pursuant to article seven-A of the executive law
 [or the attorney general pursuant  to  article  eight  of  the  estates,
 powers  and  trusts law] shall include with such annual report a copy of
 the statement required to be filed with the clerk or department pursuant
 to subdivision one or two of this section.
   § 13. Subdivision 1 of section 195-n of the general municipal law,  as
 amended  by  chapter  637  of  the  laws  of 1999, is amended to read as
 follows:
   1. Distribution; manufacturers. For business conducted in this  state,
 manufacturers  licensed by the board to sell bell jar tickets shall sell
 only such tickets to distributors licensed by the  board.  Manufacturers
 of bell jar tickets, seal cards, merchandise boards, and coin boards may
 submit  samples,  artists'  renderings, or color photocopies of proposed
 bell jar tickets, seal cards, merchandise boards,  coin  boards,  payout
 cards,  and  flares  for review and approval by the board. Within thirty
 days of receipt of such sample or rendering, the board shall approve  or
 deny such bell jar tickets. [Following approval of a rendering of a bell
 jar  ticket,  seal  card, merchandise board, or coin board by the board]
 PRIOR TO THE SALE OF A BELL JAR GAME, JAR TICKET, SEAL CARD, MERCHANDISE
 BOARD OR COIN BOARD TO ANY  LICENSED  DISTRIBUTOR  FOR  RESALE  IN  THIS
 STATE, the manufacturer shall submit to the board a sample of the print-
 ed  bell  jar  ticket,  seal card, merchandise board, coin board, payout
 card, and flare for such game. [Such sample shall be submitted prior  to
 the  sale  of  the  game  to any licensed distributor for resale in this
 state.] WITHIN FORTY-FIVE DAYS OF RECEIPT  OF  SUCH  SAMPLE,  THE  BOARD
 SHALL  APPROVE  OR  DENY  THE  BELL  JAR  TICKET, JAR TICKET, SEAL CARD,
 MERCHANDISE BOARD OR COIN BOARD. For coin boards and merchandise boards,

 A. 2259                             7
 
 nothing herein shall require the submittal of actual coins  or  merchan-
 dise  as  part  of  the  approval process. Any licensed manufacturer who
 willfully violates the provisions of this section shall: (a)  upon  such
 first offense, have their license suspended for a period of thirty days;
 (b)  upon  such second offense, participate in a hearing to be conducted
 by the board, and surrender their license for such period as recommended
 by the board; and (c) upon such third or subsequent offense, have  their
 license  suspended  for  a  period  of one year and shall be guilty of a
 class E felony. Any unlicensed manufacturer who violates the  provisions
 of this section shall be guilty of a class E felony.
   § 14. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.