Bill Text: NY A04616 | 2017-2018 | General Assembly | Introduced

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Bill Title: Eases certain restrictions on the conducting of games of chance for charitable purposes; authorizes the payment, out of the net proceeds of games of chance, of reimbursement for reasonable expenses of volunteers working at the games; expands the frequency upon which games of chance may be held; authorizes auxiliary members of authorized organizations to operate games of chance; authorizes persons convicted of crimes to operate games of chance when participating in a rehabilitation program; authorizes conducting of games of chance on Sundays; expands advertising of games of chance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - referred to racing and wagering [A04616 Detail]

Download: New_York-2017-A04616-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4616
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 3, 2017
                                       ___________
        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:
     1    Section  1. Subdivisions 4 and 6 of section 186 of the general munici-
     2  pal law, as amended by chapter 574 of the laws of 1978, are amended  and
     3  two new subdivisions 4-a and 22 are added to read as follows:
     4    4.  "Authorized  organization"  shall  mean  and include any bona fide
     5  religious or charitable organization or bona fide educational, fraternal
     6  or service organization or bona  fide  organization  of  veterans  [or],
     7  volunteer  [firemen]  firefighters or volunteer ambulance workers, which
     8  by its charter, certificate of incorporation, constitution,  or  act  of
     9  the  legislature,  shall have among its dominant purposes one or more of
    10  the lawful purposes as defined in this article, provided that each shall
    11  operate without profit to its  members,  and  provided  that  each  such
    12  organization  has  engaged in serving one or more of the lawful purposes
    13  as defined in this article for a period  of  three  years  [immediatley]
    14  immediately prior to applying for a license under this article.
    15    No  organization  shall  be deemed an authorized organization which is
    16  formed primarily for the purpose of conducting games of chance and which
    17  does not devote at least seventy-five percent of its activities to other
    18  than conducting games of chance. No political party shall be  deemed  an
    19  authorized organization.
    20    4-a.  "Auxiliary member" shall mean a bona fide member of an organiza-
    21  tion  or  association  which  is auxiliary to an authorized organization
    22  licensed pursuant to this article; or a bona fide member of an organiza-
    23  tion or association of which an authorized organization licensed  pursu-
    24  ant  to this article is an auxiliary; or a bona fide member of an organ-
    25  ization  or  association  which  is  affiliated   with   an   authorized
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09072-02-7
        A. 4616                             2
     1  organization licensed pursuant to this article by being, with it, auxil-
     2  iary to another organization or association.
     3    6.  "Net  proceeds"  shall  mean (a) in relation to the gross receipts
     4  from one or more license periods of games of  chance,  the  amount  that
     5  shall remain after deducting the reasonable sums necessarily and actual-
     6  ly  expended  for  conducting games of chance including, but not limited
     7  to, supplies and equipment, prizes, security-personnel, stated rental if
     8  any, bookkeeping or accounting  services  according  to  a  schedule  of
     9  compensation  prescribed  by  the board, janitorial services and utility
    10  supplies if any, license fees, and  [the  cost  of  bus  transportation]
    11  reimbursement  of  reasonable expenses incurred by volunteers who donate
    12  their time to hold, operate or conduct, or assist in the conduct of such
    13  games, and as authorized by the board and if authorized by the clerk  or
    14  department  and (b) in relation to the gross rent received by an author-
    15  ized games of chance lessor for the use of its premises  by  a  game  of
    16  chance  licensee,  the  amount  that  shall  remain  after deducting the
    17  reasonable  sums  necessarily  and  actually  expended  for   janitorial
    18  services and utility supplies directly attributable thereto if any.
    19    22.  "Reasonable expenses" shall include, but not be limited to, child
    20  care expenses, transportation expenses, meals  and  other  expenses,  as
    21  determined and regulated by the board.
    22    §  2. Subdivisions 4, 5, 6, 8, 10 and 11 of section 189 of the general
    23  municipal law, subdivisions 4, 10 and 11 as amended by  chapter  574  of
    24  the  laws of 1978, subdivisions 5 and 8 as amended by chapter 434 of the
    25  laws of 2016 and subdivision 6 as amended by chapter 302 of the laws  of
    26  2010, are amended to read as follows:
    27    4.  The entire net proceeds of any game of chance shall be exclusively
    28  devoted to the lawful purposes of the organization permitted to  conduct
    29  the  same  and the net proceeds of any rental derived therefrom shall be
    30  exclusively devoted to the lawful purposes of the  authorized  games  of
    31  chance lessor; provided, however, that a person may accept reimbursement
    32  of reasonable expenses incurred to manage, hold, operate or conduct such
    33  games.
    34    5.  No single prize awarded by games of chance other than raffle shall
    35  exceed the sum or value of [three] four hundred dollars, except that for
    36  merchandise wheels, no single prize shall exceed the  sum  or  value  of
    37  [two]  three  hundred [fifty] dollars. No single prize awarded by raffle
    38  shall exceed the sum or value of  three  hundred  thousand  dollars.  No
    39  single wager shall exceed six dollars and for bell jars, coin boards, or
    40  merchandise  boards,  no  single prize shall exceed five hundred dollars
    41  provided, however, that such limitation shall not apply to the amount of
    42  money or value paid by the participant in a raffle in return for a tick-
    43  et or other receipt. For coin boards and merchandise boards,  the  value
    44  of  a prize shall be determined by its costs to the authorized organiza-
    45  tion or, if donated, its fair market value.
    46    6. No authorized organization shall award a series of prizes  consist-
    47  ing  of  cash or of merchandise with an aggregate value in excess of ten
    48  thousand dollars during the successive operations of any one merchandise
    49  wheel or bell jar, and three  thousand  dollars  during  the  successive
    50  operations  of  any  [bell  jar,] coin board[,] or merchandise board. No
    51  series of prizes awarded by raffle shall  have  an  aggregate  value  in
    52  excess of five hundred thousand dollars. For coin boards and merchandise
    53  boards,  the  value  of  a  prize shall be determined by its cost to the
    54  authorized organization or, if donated, its fair market value.
    55    8. Except for merchandise wheels and raffles, no series of  prizes  on
    56  any  one  occasion shall aggregate more than [four] five hundred dollars
        A. 4616                             3
     1  when the licensed authorized organization conducts five single types  of
     2  games  of  chance  during any one license period. Except for merchandise
     3  wheels, raffles and bell jars, no series of prizes on any  one  occasion
     4  shall aggregate more than five hundred dollars when the licensed author-
     5  ized  organization  conducts  less  than  five  single types of games of
     6  chance, exclusive of merchandise wheels, raffles and bell  jars,  during
     7  any one license period. No authorized organization shall award by raffle
     8  prizes with an aggregate value in excess of three million dollars during
     9  any one license period.
    10    10.  No  person  except  a bona fide member of the licensed authorized
    11  organization or an auxiliary member of such organization  shall  partic-
    12  ipate  in  the  management  of such games[; no person except a bona fide
    13  member of the licensed authorized organization, its auxiliary or  affil-
    14  iated  organization, shall participate in the operation of such game, as
    15  set forth in section one hundred ninety-five-c of this article].
    16    11. No person shall receive any remuneration for participating in  the
    17  management  or  operation  of  any  such game; provided, however, that a
    18  person may accept  reimbursement  of  reasonable  expenses  incurred  to
    19  manage, hold, operate or conduct games of chance.
    20    §  3.  Subparagraph 5 of paragraph (a) of subdivision 1 of section 190
    21  of the general municipal law, as amended by chapter 574 of the  laws  of
    22  1978, is amended to read as follows:
    23    (5) the purposes to which the entire net proceeds of such games are to
    24  be  devoted  and  in  what  manner;  that no commission, salary, compen-
    25  sation[,] or reward [or recompense] will  be  paid  to  any  person  for
    26  conducting such game or games or for assisting therein except as in this
    27  article  otherwise  provided;  and  such  other  information as shall be
    28  prescribed by such rules and regulations.
    29    § 4. Paragraph (b) of subdivision 1 of  section  190  of  the  general
    30  municipal law, as amended by chapter 574 of the laws of 1978, is amended
    31  to read as follows:
    32    (b) In each application there shall be designated not less than [four]
    33  three  bona  fide  members  of the applicant organization under whom the
    34  game or games of chance will be managed and to the application shall  be
    35  appended  a  statement  executed by the members so designated, that they
    36  will be responsible for the management of such games in accordance  with
    37  the  terms  of the license, the rules and regulations of the board, this
    38  article and the applicable local laws or ordinances.
    39    § 5. Paragraph (a) of subdivision 2 of section 190-a  of  the  general
    40  municipal law, as amended by chapter 400 of the laws of 2005, is amended
    41  to read as follows:
    42    (a)  For the purposes of this section, "authorized organization" shall
    43  mean and include any bona fide religious or charitable  organization  or
    44  bona  fide  educational,  fraternal or service organization or bona fide
    45  organization of veterans [or], volunteer [firefighter]  firefighters  or
    46  volunteer ambulance workers, which by its charter, certificate of incor-
    47  poration,  constitution, or act of the legislature, shall have among its
    48  dominant purposes one or more of the lawful purposes as defined in  this
    49  article, provided that each shall operate without profit to its members,
    50  and  provided  that each such organization has engaged in serving one or
    51  more of the lawful purposes as defined in this article for a  period  of
    52  three  years  immediately  prior to being granted the filing requirement
    53  exemption contained in subdivision one of this section.
    54    § 6. Subdivision 3 of section 190-a of the general municipal  law,  as
    55  added by chapter 400 of the laws of 2005, is amended to read as follows:
        A. 4616                             4
     1    3.  No  person  under the age of eighteen shall be permitted to play[,
     2  operate or assist] in any raffle conducted pursuant to this section.  No
     3  person under the age of eighteen years shall be permitted to operate  or
     4  assist  in  any  raffle  conducted  pursuant  to this section; provided,
     5  however,  that  a  person  under  the  age  of eighteen years and who is
     6  sixteen years of age or older shall be permitted to assist in any raffle
     7  if accompanied by an adult.
     8    § 7. Paragraph (a) of subdivision 1 of  section  191  of  the  general
     9  municipal  law, as amended by section 15 of part LL of chapter 56 of the
    10  laws of 2010, is amended to read as follows:
    11    (a) Issuance of licenses to conduct games of chance. If such clerk  or
    12  department  shall  determine  that the applicant is duly qualified to be
    13  licensed to conduct games of chance under this article; that the  member
    14  or  members  of  the  applicant  designated in the application to manage
    15  games of chance are bona fide active members of the  applicant  and  are
    16  persons  of  good  moral  character  and  have never been convicted of a
    17  crime, or, if convicted, have received a pardon, a certificate  of  good
    18  conduct or a certificate of relief from disabilities pursuant to article
    19  twenty-three  of  the  correction  law,  or, if convicted, the member or
    20  members are participating in a rehabilitation program licensed or certi-
    21  fied by a state agency and operated by the  applicant  or  an  auxiliary
    22  thereof;  that  such  games  are  to be conducted in accordance with the
    23  provisions of this article and in accordance with the  rules  and  regu-
    24  lations  of  the  board and applicable local laws or ordinances and that
    25  the proceeds thereof are to be disposed of as provided by this  article,
    26  and if such clerk or department is satisfied that no commission, salary,
    27  compensation[,] or reward [or recompense] whatever will be paid or given
    28  to  any  person  managing,  operating or assisting therein except as [in
    29  this article] otherwise provided in this article,  including  reimburse-
    30  ment of reasonable expenses incurred by volunteers who donate their time
    31  to  hold, operate or conduct, or assist in the conduct of such games; it
    32  shall issue a license to the applicant  for  the  conduct  of  games  of
    33  chance  upon  payment  of  a license fee of twenty-five dollars for each
    34  license period.
    35    § 8. Subdivision 3 of section 194 of the  general  municipal  law,  as
    36  amended  by  chapter  550  of  the  laws  of 1994, is amended to read as
    37  follows:
    38    3.  [Service  of  alcoholic  beverages.]  Subject  to  the  applicable
    39  provisions  of  the alcoholic beverage control law, beer and wine may be
    40  offered for sale during the conduct of  games  of  chance  on  games  of
    41  chance  premises as such premises are defined in subdivision nineteen of
    42  section one hundred eighty-six of this article; provided, however,  that
    43  nothing  herein shall be construed to limit the offering for sale of any
    44  other alcoholic beverage in areas other than the games of  chance  prem-
    45  ises  or the sale of any other alcoholic beverage in premises where only
    46  the games of chance known as bell jar or raffles are conducted.
    47    § 9. Section 195 of the general municipal law, as amended  by  chapter
    48  461 of the laws of 2003, is amended to read as follows:
    49    §  195. Sunday; conduct of games on. Except as provided in section one
    50  hundred ninety-five-b of this article, [no] games of chance [shall]  may
    51  be  conducted  under  any license issued under this article on the first
    52  day of the week, commonly known and  designated  as  Sunday,  unless  it
    53  shall  be  otherwise  provided  in the license issued for the conducting
    54  thereof, pursuant to the provisions of a local law or an ordinance  duly
    55  adopted by the governing body of the municipality wherein the license is
    56  issued,  [authorizing]  prohibiting the conduct of games of chance under
        A. 4616                             5
     1  this article on that day [only between the hours of noon and  midnight].
     2  Notwithstanding  the  foregoing  provisions  of this section no games of
     3  chance shall be conducted on Easter Sunday or Christmas Day.
     4    §  10. Section 195-a of the general municipal law, as amended by chap-
     5  ter 574 of the laws of 1978, is amended to read as follows:
     6    § 195-a. Participation by persons under eighteen. No person under  the
     7  age  of  eighteen  years shall be permitted to play any game or games of
     8  chance conducted pursuant to any  license  issued  under  this  article.
     9  Persons under the age of eighteen years may be permitted to attend games
    10  of  chance  [at  the  discretion  of the games of chance licensee].   No
    11  person under the age of eighteen years shall be permitted to operate any
    12  game of chance conducted pursuant to any license issued under this arti-
    13  cle or to assist therein; provided, however, that a person under the age
    14  of eighteen years and who is sixteen years of  age  or  older  shall  be
    15  permitted  to  assist in the operation of any game of chance if accompa-
    16  nied by a parent.
    17    § 11. Section 195-b of the general municipal law, as amended by  chap-
    18  ter 252 of the laws of 1998, is amended to read as follows:
    19    §  195-b.  Frequency  of  games.  No game or games of chance, shall be
    20  conducted under any license issued under this article  more  often  than
    21  [twelve]  eighteen  times  in  any calendar year. No particular premises
    22  shall be used for the conduct of games of chance on  more  than  twenty-
    23  four  license  periods  during  any  one  calendar  year. Games shall be
    24  conducted only between the hours of noon and midnight on Sunday, Monday,
    25  Tuesday, Wednesday and Thursday, and only between the hours of  noon  on
    26  Friday  and  two  A.M.   Saturday, and only between the hours of noon on
    27  Saturday and two A.M.  Sunday. The two A.M. closing  period  shall  also
    28  apply  to  a legal holiday.  The above restrictions shall not apply when
    29  only the games of chance known as bell jar and/or raffle are conducted.
    30    § 12. Section 195-c of the general municipal law, as amended by  chap-
    31  ter 252 of the laws of 1998, is amended to read as follows:
    32    §  195-c.  [1.]  Persons operating games; equipment; expenses; compen-
    33  sation.  1. No person shall operate any game of chance under any license
    34  issued under this article except a bona fide member or auxiliary  member
    35  of  the  authorized  organization  to which the license is issued[, or a
    36  bona fide member of an organization or association which is an auxiliary
    37  to the licensee or a bona fide member of an organization or  association
    38  of  which  such  licensee  is  an  auxiliary or a bona fide member of an
    39  organization or association which is affiliated  with  the  licensee  by
    40  being, with it, auxiliary to another organization or association]. Noth-
    41  ing  herein  shall  be  construed to limit the number of games of chance
    42  licensees for whom such persons may  operate  games  of  chance  nor  to
    43  prevent  non-members  from  assisting the licensee in any activity other
    44  than managing or operating games. No game of chance shall  be  conducted
    45  with  any  equipment  except  such  as  shall  be owned or leased by the
    46  authorized organization so licensed  or  used  without  payment  of  any
    47  compensation  therefor  by the licensee. However, in no event shall bell
    48  jar tickets be transferred from one authorized organization to  another,
    49  with  or  without payment of any compensation thereof. The head or heads
    50  of the authorized organization shall upon request certify,  under  oath,
    51  that the persons operating any game of chance are bona fide or auxiliary
    52  members  of such authorized organization, auxiliary or affiliated organ-
    53  ization. Upon request by an officer or the department  any  such  person
    54  involved  in  such  games  of chance shall certify that he or she has no
    55  criminal record. No items of  expense  shall  be  incurred  or  paid  in
    56  connection  with  the  conducting  of any game of chance pursuant to any
        A. 4616                             6
     1  license issued under this article except those that are  reasonable  and
     2  are  necessarily  expended  for  games of chance supplies and equipment,
     3  prizes,  security  personnel,  stated  rental  if  any,  bookkeeping  or
     4  accounting  services  according to a schedule of compensation prescribed
     5  by the board, janitorial services  and  utility  supplies  if  any,  and
     6  license  fees,  reimbursement  of reasonable expenses incurred by volun-
     7  teers who donate their time to operate or assist  in  the  operation  of
     8  games  of  chance  and  the cost of bus transportation, if authorized by
     9  such clerk or department.  No  commission,  salary,  compensation[,]  or
    10  reward [or recompense] shall be paid or given to any person for the sale
    11  or assisting with the sale of raffle tickets.
    12    2.  For the purpose of the sale of tickets for the game of raffle, the
    13  term "operate" shall not include the sale of such tickets by persons  of
    14  lineal or collateral consanguinity to members of an authorized organiza-
    15  tion licensed to conduct a raffle.
    16    § 13.  Section 195-e of the general municipal law, as amended by chap-
    17  ter 94 of the laws of 1981, is amended to read as follows:
    18    §  195-e.  Advertising  games. A licensee may advertise the conduct of
    19  games of chance to the general public by means of  newspaper,  circular,
    20  handbill  [and],  poster, electronic mail, electronic communications and
    21  government access television broadcasts, and by one sign  not  exceeding
    22  sixty  square feet in area, which may be displayed on or adjacent to the
    23  premises owned or occupied by a licensed  authorized  organization,  and
    24  when  an organization is licensed to conduct games of chance on premises
    25  of an authorized games of chance lessor, one additional such sign may be
    26  displayed on or adjacent to the premises in which the games  are  to  be
    27  conducted.    Additional  signs  may be displayed upon any fire fighting
    28  equipment belonging to any licensed authorized organization which  is  a
    29  volunteer  fire  company, or upon any equipment of a first aid or rescue
    30  squad, or volunteer ambulance company in and  throughout  the  community
    31  served by such volunteer fire company or such first aid or rescue squad,
    32  or  volunteer  ambulance company, as the case may be. All advertisements
    33  shall be limited to the description of such event as "Games  of  chance"
    34  or "Las Vegas Night", the name of the authorized organization conducting
    35  such  games,  the  license  number  of  the  authorized  organization as
    36  assigned by the clerk or department and the date, location and  time  of
    37  the event.
    38    §  14. Subdivision 3 of section 195-f of the general municipal law, as
    39  amended by chapter 550 of the laws  of  1994,  is  amended  to  read  as
    40  follows:
    41    3.  Any authorized organization required to file an annual report with
    42  the secretary of state pursuant to article seven-A of the executive  law
    43  [or  the  attorney  general  pursuant  to  article eight of the estates,
    44  powers and trusts law] shall include with such annual report a  copy  of
    45  the statement required to be filed with the clerk or department pursuant
    46  to subdivision one or two of this section.
    47    §  15. Subdivision 1 of section 195-n of the general municipal law, as
    48  amended by chapter 637 of the laws  of  1999,  is  amended  to  read  as
    49  follows:
    50    1.  Distribution; manufacturers. For business conducted in this state,
    51  manufacturers licensed by the board to sell bell jar tickets shall  sell
    52  only  such  tickets to distributors licensed by the board. Manufacturers
    53  of bell jar tickets, seal cards, merchandise boards, and coin boards may
    54  submit samples, artists' renderings, or color  photocopies  of  proposed
    55  bell  jar  tickets,  seal cards, merchandise boards, coin boards, payout
    56  cards, and flares for review and approval by the  board.  Within  thirty
        A. 4616                             7
     1  days  of receipt of such sample or rendering, the board shall approve or
     2  deny such bell jar tickets. [Following approval of a rendering of a bell
     3  jar ticket, seal card, merchandise board, or coin board  by  the  board]
     4  Prior to the sale of a bell jar game, jar ticket, seal card, merchandise
     5  board  or  coin  board  to  any  licensed distributor for resale in this
     6  state, the manufacturer shall submit to the board a sample of the print-
     7  ed bell jar ticket, seal card, merchandise  board,  coin  board,  payout
     8  card,  and flare for such game. [Such sample shall be submitted prior to
     9  the sale of the game to any licensed  distributor  for  resale  in  this
    10  state.]  Within  forty-five  days  of  receipt of such sample, the board
    11  shall approve or deny the  bell  jar  ticket,  jar  ticket,  seal  card,
    12  merchandise board or coin board. For coin boards and merchandise boards,
    13  nothing  herein  shall require the submittal of actual coins or merchan-
    14  dise as part of the approval  process.  Any  licensed  manufacturer  who
    15  willfully  violates  the provisions of this section shall: (a) upon such
    16  first offense, have their license suspended for a period of thirty days;
    17  (b) upon such second offense, participate in a hearing to  be  conducted
    18  by the board, and surrender their license for such period as recommended
    19  by  the board; and (c) upon such third or subsequent offense, have their
    20  license suspended for a period of one year and  shall  be  guilty  of  a
    21  class  E felony. Any unlicensed manufacturer who violates the provisions
    22  of this section shall be guilty of a class E felony.
    23    § 16. This act shall take effect on the first of January next succeed-
    24  ing the date on which it shall have become a law.