ARTICLE 9-A

LOCAL OPTION FOR CONDUCT OF

GAMES OF CHANCE BY CERTAIN ORGANIZATIONS

Section:

 
          185.   Short title; purpose of article.
          186.   Definitions.
          187.   Local option.
          188.   Local laws and ordinances.
          188-a. Powers and duties of the board.
          189.   Restrictions upon conduct of games of chance.
          189-a. Authorized supplier of games of chance equipment.
          189-b. Declaration   of  state's  exemption  from  operation  of
                   provisions of 15 U.S.C. (1172).
          189-c. Legal shipments of gaming devices into New York state.
          190.   Application for license.
          190-a. Raffles; license not required.
          191.   Investigation; matters  to  be  determined;  issuance  of
                   license; fees; duration of license.
          192.   Hearing; amendment of license.
          193.   Form and contents of license; display of license.
          194.   Control  and  supervision;  suspension  of identification
                   numbers and licenses; inspection of premises.
          195.   Sunday; conduct of games on.
          195-a. Participation by persons under eighteen.
          195-b. Frequency of games.
          195-c. Persons    operating    games;    equipment;    expenses; compensation.
          195-d. Charge for admission and participation; amount of prizes; award of prizes.
          195-e. Advertising games.
          195-f. Statement of receipts, expenses; additional license fees.
          195-g. Examination of books and records; examination of officers
                   and employees; disclosure of information.
          195-h. Appeals  from  the  decision  of  an  officer,  clerk  or department to board.
           195-i. Exemption from prosecution.
          195-j. Offenses; forfeiture of license; ineligibility  to  apply for license.
          195-k. Unlawful games of chance.
          195-l. Article inoperative until adopted by voters.
          195-m. Amendment and repeal of local laws and ordinances.
          195-n. Manufacturers of bell jars; reports and records.
          195-o. Distributor of bell jars; reports and records.
          195-p. Transfer restrictions.
          195-q. Bell jar compliance and enforcement.
          195-r. Severability.

 

§  185.  Short  title; purpose of article. This article shall be known  and may be cited as the games of chance licensing law.  The  legislature  hereby declares that the raising of funds for the promotion of bona fide  charitable,  educational,  scientific,  health,  religious and patriotic  causes and undertakings, where the beneficiaries are undetermined, is in  the public interest. It hereby finds that, as  conducted  prior  to  the  enactment  of  this  article,  games  of  chance  were  the  subject  of  exploitation  by  professional  gamblers,  promoters,   and   commercial  interests.  It  is  hereby  declared to be the policy of the legislature  that all phases of the supervision, licensing and regulation of games of  chance and of  the  conduct  of  games  of  chance,  should  be  closely  controlled  and  that the laws and regulations pertaining thereto should  be strictly construed and rigidly enforced; that the conduct of the game  and all  attendant  activities  should  be  so  regulated  and  adequate  controls so instituted as to discourage commercialization of gambling in  all  its forms, including the rental of commercial premises for games of  chance, and to ensure a maximum availability  of  the  net  proceeds  of  games  of  chance  exclusively  for application to the worthy causes and  undertakings specified herein; that  the  only  justification  for  this  article  is  to  foster and support such worthy causes and undertakings,  and that the mandate of  section  nine  of  article  one  of  the  state  constitution,  as amended, should be carried out by rigid regulations to  prevent commercialized gambling, prevent participation by  criminal  and  other  undesirable  elements and prevent the diversion of funds from the  purposes herein authorized.

§ 186. Definitions. As used in this article, the following terms shall  have the following meanings:

    1.  "Municipality"  shall  mean  any city, town or village within this  state.

    2. "Board" shall mean New York state racing and wagering board.

    3. "Games of chance" shall mean and include only the  games  known  as "merchandise wheels", "coin boards", "merchandise boards", "seal cards",  "raffles",  and  "bell  jars"  and  such  other specific games as may be  authorized by the board, in which prizes are awarded on the basis  of  a designated winning number or numbers, color or colors, symbol or symbols  determined  by  chance, but not including games commonly known as "bingo  or lotto" which are controlled under article fourteen-H of this  chapter  and  also  not  including  "bookmaking",  "policy  or numbers games" and  "lottery" as defined in section 225.00 of the  penal  law.  No  game  of  chance  shall  involve  wagering  of money by one player against another  player.

    3-a. "Bell jars" shall  mean  and  include  those  games  in  which  a  participant  shall  draw  a  card  from a jar, vending machine, or other  suitable device or container which contains numbers, colors  or  symbols  that  are  covered  and  which,  when uncovered, may reveal that a prize  shall be awarded on the basis of a designated winning number,  color  or  symbol  or  combination  of  numbers, colors or symbols. Bell jars shall  also include seal cards, coin boards, and merchandise boards.

    3-b. "Raffle" shall mean and include those games of chance in which  a  participant  pays  money  in return for a ticket or other receipt and in  which a prize is awarded on the basis of a winning  number  or  numbers,  color  or  colors,  or  symbol  or  symbols  designated on the ticket or  receipt, determined by chance as a result of a drawing from among  those  tickets or receipts previously sold.

    3-c.  "Coin  board" and "merchandise board" shall mean a board used in  conjunction with bell jar tickets which contains  and  displays  various  coins  and/or  merchandise  as prizes. A player having a bell jar ticket  with a number matching a pre-designated number reflected  on  the  board  for a prize wins that prize.

    3-d.  "Seal  cards"  shall mean a board or placard used in conjunction  with a deal of the  same  serial  number  which  contains  one  or  more  concealed  areas  that,  when  removed or opened, reveal a predesignated  winning number, letter, or symbol located on the board or placard.

    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  volunteer firemen, 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 immediatley 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.

    5. "Lawful purposes" shall mean one or more of the  following  causes,  deeds or activities:

    (a) Those which shall benefit needy or deserving persons indefinite in  number  by  enhancing  their  opportunity  for  religious or educational  advancement, by relieving them from disease, suffering or  distress,  or  by  contributing  to  their  physical  wellbeing,  by  assisting them in  establishing themselves in life as worthy and  useful  citizens,  or  by  increasing  their  comprehension  of and devotion to the principles upon  which  this  nation  was  founded  and  enhancing their loyalty to their  governments.

    (b) Those which shall initiate, perform or foster worthy public  works  or  shall  enable  or  further  the  erection  or  maintenance of public  structures.

    (c) Those which shall otherwise lessen the burdens borne by government  or which are voluntarily undertaken by  an  authorized  organization  to  augment or supplement services which government would normally render to  the  people,  including,  in the case of volunteer firemen's activities,  the purchase, erection or maintenance of a  building  for  a  firehouse,  activities open to the public for the enhancement of membership, and the  purchase  of  equipment which can reasonably be expected to increase the  efficiency of response to fires, accidents, public calamities and  other  emergencies.

    d.  Those  which  shall  initiate, perform or foster the provisions of  services to veterans by encouraging the gathering of such  veterans  and  shall  enable  or  further the erection or maintenance of facilities for use by such veterans which shall be used  primarily  for  charitable  or  patriotic  purposes,  or  those  purposes which shall be authorized by a  bona fide organization of veterans, provided however that such  proceeds  are  disbursed  pursuant  to  section  one  hundred  eighty-nine of this  article.

    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  actually     expended    for    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,  if  authorized by the clerk or  department and (b)  in  relation  to  the  gross  rent  received  by  an  authorized  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.

    7. "Net lease" shall mean a written agreement  between  a  lessor  and  lessee  under  the  terms  of  which  the  lessee  is  entitled  to  the  possession, use or occupancy of the whole or part of any  premises  from  any  non-commercial  or non-profit authorized games of chance lessor for  which the lessee pays rent to the lessor and likewise undertakes to  pay  substantially  all  of  the regularly recurring expenses incident to the  operation and maintenance of such leased premises.

    8. "Authorized games  of  chance  lessor"  shall  mean  an  authorized  organization  which  has been granted a lessor's license pursuant to the  provisions of this article or a municipality.

    9. "Single type of game" shall mean  the  games  of  chance  known  as  merchandise  wheels,  coin boards, merchandise boards, raffles, and bell  jars and each other specific game of chance authorized by the board.

    10. "Operation" shall mean the play of a single type of game of chance  necessary to determine the outcome or winners each time wagers are made.  A single drawing of a winning ticket or other receipt in a raffle  shall  be deemed one operation.

    11. "Single prize" shall mean the sum of money or fair market value of  merchandise  or  coins  awarded  to  a  participant by a games of chance  licensee in any one operation of a single type  of  game  of  chance  in  excess of his wager.

    12.  "Series  of  prizes" shall mean the total amount of single prizes  minus the total amount of wagers lost during the  successive  operations  of  a  single type of game of chance, except that for merchandise wheels  and raffles, "series of prizes" shall mean the sum of cash and the  fair  market  value  of  merchandise  awarded  as  single  prizes  during  the  successive operations of any single merchandise wheel or raffle. In  the  game  of  raffle, a series of prizes may include a percentage of the sum  of cash received from the sale of raffle tickets.

    13. "Authorized supplier of games of chance equipment" shall mean  any  person,  firm,  partnership, corporation or organization licensed by the  board to sell or lease games of chance equipment or paraphernalia  which  meets  the  specifications  and  regulations  established  by the board.  Nothing herein shall prevent an authorized organization from  purchasing  common  articles,  such as cards and dice, from normal sources of supply  of such articles or from constructing equipment  and  paraphernalia  for  games  of  chance  for  its  own  use.  However,  no  such  equipment or  paraphernalia, constructed or owned by an authorized organization  shall  be  sold or leased to any other authorized organization, without written  permission from the board.

    14. "One occasion" shall mean the successive  operations  of  any  one  single  type of game of chance which results in the awarding of a series  of prizes amounting to five hundred  dollars  or  four  hundred  dollars  during  any  one  license  period,  in accordance with the provisions of  subdivision eight of section one hundred eighty-nine of this article, as  the case may be.  For  purposes  of  the  game  of  chance  known  as  a  merchandise  wheel or a raffle, "one occasion" shall mean the successive  operations of any one such merchandise wheel or  raffle  for  which  the  limit  on  a series of prizes provided by subdivision six of section one  hundred eighty-nine of this article shall apply.  For  purposes  of  the  game  of  chance  known  as  a  bell  jar, "one occasion" shall mean the  successive operation of any one such bell jar, seal card, coin board, or  merchandise board which results in the awarding of a  series  of  prizes  amounting  to  three  thousand  dollars. For the purposes of the game of  chance known as raffle "one occasion" shall mean a calendar year  during  which successive operations of such game are conducted.

    15.  "License  period"  shall  mean  a  period  of  time not to exceed  fourteen consecutive hours and, for purposes of the game of chance known  as a bell jar and a raffle, "license period" shall mean a period of time  running from January first to December thirty-first of each year.

    16. "Clerk" shall mean the clerk of a municipality outside the city of  New York.

    17. "Officer" shall mean  the  chief  law  enforcement  officer  of  a  municipality  outside  the  city  of  New  York, or if such municipality  exercises the option set forth in subdivision two of section one hundred  ninety-four of this article, the chief law enforcement  officer  of  the  county.

    18.  "Department"  shall mean the New York City Department of Consumer  Affairs.

    19. "Premises" shall mean a designated area within a  building,  hall,  tent,  or  grounds  reasonably  identified  for  the conduct of games of  chance. Nothing herein shall require such area to be enclosed.

    20. "Games of chance currency" shall mean legal tender or  a  form  of  scrip  or  chip authorized by the board, any of which may be used at the  discretion of the games of chance licensee.

    21. "Flare" shall mean a poster description  of  the  bell  jar  game,  which shall include a declaration of the number of winners and amount of  prizes  in  each  deal,  the number of prizes available in the deal, the  number of tickets in each deal  which  contain  the  stated  prize;  the  manufacturer's game form number, and the serial number of the deal which  shall  be  identical  to  the  serial  number  imprinted  on each ticket  contained in the deal.

§  187.  Local  option. Subject to the provisions of this article, and  pursuant to the direction contained in subdivision two of  section  nine  of  article one of the constitution of the state, the legislature hereby  gives and grants to every municipality the right, power and authority to  authorize the conduct of games of  chance  by  authorized  organizations  within  the  territorial  limits  of  such  municipality. A local law or  ordinance adopted by a town shall be operative in any village or  within  any  part  of any village located within such town if, after adoption of  such local law or ordinance, the  board  of  trustees  of  such  village  adopts  a  local  law or resolution subject to a permisive referendum as  provided in article nine of the village law authorizing the issuance  of  licenses by the town for games of chance within such village. Such local  law  or  resolution  may  be  repealed only by a local law or resolution  which shall also be subject to a permissive referendum, or by  enactment  of  a  local  law authorizing games of chance as provided in section one  hundred eighty-eight of this article.

§ 188. Local laws and ordinances. 1. The common council or other local  legislative  body  of  any  municipality  may,  either  by  local law or  ordinance,  provide  that  it  shall  be  lawful  for   any   authorized  organization, upon obtaining a license therefor as hereinafter provided,  to  conduct  games  of  chance  within  the  territorial  limits of such  municipality, subject to the provisions of such local law or  ordinance,  the  provisions  of  this  article,  and the provisions set forth by the  board.

    2. No such local law or ordinance shall become operative or  effective  unless  and  until  it  shall  have  been  approved by a majority of the  electors voting on a proposition  submitted  at  a  general  or  special  election  held  within  such  municipality who are qualified to vote for

 officers of such municipality.

    3.  The  time,  method  and  manner  of  submission,  preparation  and  provision  of ballots and ballot labels, balloting by voting machine and  conducting the election, canvassing the result and making and filing the  returns and all other procedure with reference to the submission of  and  action  upon  any  proposition for the approval of any such local law or  ordinance shall be the same as in the case of any other  proposition  to  be  submitted  to  the  electors  of  such  municipality at a general or  special election in such municipality, as provided by law.

§  188-a.  Powers  and  duties  of the board. The board shall have the  power and it shall be its duty to:

    1. Supervise the administration of the games of chance  licensing  law  and  to  adopt,  amend  and  repeal  rules and regulations governing the  issuance and amendment of licenses  thereunder  and  the  conducting  of  games  under  such  licenses, which rules and regulations shall have the  force and effect of law and shall be  binding  upon  all  municipalities  issuing  licenses, and upon licensees of the board, to the end that such  licenses shall be issued to qualified  licensees  only,  and  that  said  games shall be fairly and properly conducted for the purposes and in the  manner  of  the  said  games  of  chance licensing law prescribed and to  prevent the games of chance thereby  authorized  to  be  conducted  from  being  conducted  for  commercial  purposes or purposes other than those  therein authorized, participated in by  criminal  or  other  undesirable  elements  and  the  funds derived from the games being diverted from the  purposes authorized, and to provide uniformity in the administration  of  said  law  throughout  the  state,  the  board  shall prescribe forms of  application for licenses, licensees, amendment of licenses,  reports  of  the conduct of games and other matters incident to the administration of  such law.

    2.   Conduct,   anywhere   in   the   state,   investigations  of  the  administration, enforcement and potential or actual  violations  of  the  games  of  chance  licensing law and of the rules and regulations of the  board.

    3. Reveiw all determinations and actions of the clerk or department in  issuing an initial license and it may review the issuance of  subsequent  licenses  and,  after hearing, revoke those licenses which do not in all  respects meet the  requirements  of  this  article  and  the  rules  and  regulations of the board.

    4.  Suspend  or  revoke a license, after hearing, for any violation of  the provisions of this article or  the  rules  and  regulations  of  the  board.

    5.  Hear  appeals  from  the  determinations  and action of the clerk,  department or officer in connection with the refusing to issue licenses,  the suspension and revocation of licenses and the imposition of fines in  the manner prescribed by law and the action  and  determination  of  the  board  upon  any such appeal shall be binding upon the clerk, department  or officer and all parties thereto.

    6. Carry on continuous study of the operation of the games  of  chance  licensing   law   to   ascertain  from  time  to  time  defects  therein  jeopardizing or threatening to jeopardize the purposes of this  article,  and  to formulate and recommend changes in such law and in other laws of  the state which  the  board  may  determine  to  be  necessary  for  the  realization  of  such purposes, and to the same end to make a continuous  study of the operation and administration of similar laws which  may  be  in effect in other states of the United States.

    7.  Supervise the disposition of all funds derived from the conduct of  games of chance by authorized organizations not  currently  licensed  to  conduct such games.

    8.   Issue   an  identification  number  to  an  applicant  authorized  organization if it shall determine  that  the  applicant  satisfies  the  requirements  of  the  games  of  chance licensing law and the rules and  regulations of the board.

    9. The board shall have the power to approve and establish a  standard  set  of games of chance equipment and shall by its rules and regulations  prescribe the manner in which such equipment is  to  be  reproduced  and  distributed   to   licensed   authorized   organizations.  The  sale  or  distribution to a licensed  authorized  organization  of  any  equipment  other  than  that  contained  in  the  standard  set  of games of chance  equipment shall constitute a violation of this section.

§  189.  Restrictions  upon conduct of games of chance. The conduct of  games of chance authorized by local law or ordinance shall be subject to  the following restrictions irrespective of whether the restrictions  are  contained  in  such  local law or ordinance, but nothing herein shall be  construed to prevent the inclusion within such local law or ordinance of  other provisions imposing additional restrictions upon  the  conduct  of  such games:

    1.  No  person,  firm, partnership, corporation or organization, other  than a licensee under the provisions of section one  hundred  ninety-one  of  this  article,  shall  conduct such game or shall lease or otherwise  make  available  for  conducting  games  of  chance  premises  for   any  consideration whatsoever, direct or indirect.

    2. No game of chance shall be held, operated or conducted on or within  any  leased premises if rental under such lease is to be paid, wholly or  partly, on the basis of a percentage of  the  receipts  or  net  profits  derived from the operation of such game.

    3.  No  authorized  organization licensed under the provisions of this  article shall purchase, lease, or  receive  any  supplies  or  equipment  specifically  designed  or  adapted  for  use in the conduct of games of  chance from other than a supplier licensed by the board or from  another  authorized  organization. Lease terms and conditions shall be subject to  rules and regulations promulgated by the board. The provisions  of  this  article  shall  not  be  construed  to authorize or permit an authorized  organization to engage in the  business  of  leasing  games  of  chance,  supplies, or equipment. Furthermore, no organization shall purchase bell  jar  tickets,  or  deals  of  bell  jar tickets from any other person or  organization other than those specifically authorized under sections one  hundred ninety-five-n and one hundred ninety-five-o of this article.

    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.

    5. No single prize awarded by games of chance other than raffle  shall  exceed  the  sum  or  value  of  three  hundred dollars, except that for  merchandise wheels, no single prize shall exceed the sum or value of two  hundred fifty dollars. No single prize awarded by  raffle  shall  exceed  the  sum  or  value of fifty thousand dollars, except that an authorized  organization may award by raffle a single prize having a value of up  to  and  including  one  hundred  thousand  dollars if its application for a  license filed pursuant to section one hundred  ninety  of  this  article  includes  a  statement of its intent to award a prize having such value.  No single wager shall exceed six dollars and for bell jars, coin boards,  or merchandise boards, no single prize shall exceed five hundred 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.  For coin boards and merchandise boards, the  value of a prize shall be determined by  its  costs  to  the  authorized  organization or, if donated, its fair market value.

    6.   No  authorized  organization  shall  award  a  series  of  prizes  consisting of cash or of merchandise with an aggregate value  in  excess  of  ten  thousand  dollars  during  the successive operations of any one  merchandise wheel, and three  thousand  dollars  during  the  successive  operations  of any bell jar, coin board, or merchandise board. No series  of prizes awarded by raffle shall have an aggregate value in  excess  of  one  hundred  thousand  dollars. For coin boards and merchandise boards,  the value of a prize shall be determined by its cost to  the  authorized organization or, if donated, its fair market value.

    7.  In  addition to merchandise wheels, raffles and bell jars, no more  than five other single types of  games  of  chance  shall  be  conducted  during any one license period.

    8.  Except  for merchandise wheels and raffles, no series of prizes on  any one occasion shall aggregate more than four 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 authorized  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 one hundred thousand dollars during  any one license period.

    9.  Except  for  the limitations on the sum or value for single prizes  and series of prizes, no limit shall be imposed on the sum or  value  of  prizes awarded to any one participant during any occasion or any license  period.

    10.  No  person  except  a bona fide member of the licensed authorized  organization shall participate in  the  management  of  such  games;  no  person   except   a   bona   fide  member  of  the  licensed  authorized  organization,  its   auxiliary   or   affiliated   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.

    12.  No  authorized  organization  shall  extend credit to a person to

 participate in playing a game of chance.

    13. No game of chance shall be conducted on other than the premises of  an authorized organization or an  authorized  games  of  chance  lessor.  Nothing  herein  shall prohibit the sale of raffle tickets to the public  outside the premises of an  authorized  organization  or  an  authorized  games  of  chance lessor; or in municipalities which have passed a local  law, ordinance or resolution in accordance  with  sections  one  hundred  eighty-seven  and one hundred eighty-eight of this article approving the  conduct of games of chance that are located in the county in  which  the  municipality  issuing  the  license is located and in the counties which  are contiguous to the county  in  which  the  municipality  issuing  the  raffle license is located, provided those municipalities have authorized  the  licensee,  in  writing,  to  sell  such  raffle tickets therein and  provided, however, that no sale of raffle tickets  shall  be  made  more  than  one  hundred  eighty  days  prior  to  the  date scheduled for the  occasion at which the raffle will be conducted. The winner of any single  prize in a raffle shall not be required to be present at the  time  such  raffle is conducted.

    13-a.  No person licensed to manufacture, distribute, or sell games of  chance  supplies  or  equipment,  or  their   agents,   shall   conduct,  participate  in,  or  assist  in the conduct of games of chance. Nothing  herein shall prohibit a licensed distributor from selling, offering  for  sale,   or  explaining  a  product  to  an  authorized  organization  or  installing or servicing games of chance equipment upon the  premises  of  games of chance licensees.

    14.  The unauthorized conduct of a game of chance shall constitute and  be punishable as a misdemeanor.

    15. No coins or merchandise from a coin  board  or  merchandise  board  shall  be  redeemable or convertible into cash directly or indirectly by  the authorized organization.

§ 189-a. Authorized supplier of games of chance equipment.  No person,  firm, partnership, corporation or organization, shall sell or distribute  supplies  or  equipment  specifically  designed  or  adapted  for use in  conduct of games of chance  without  having  first  obtained  a  license  therefor  upon  written  application  made,  verified and filed with the  board in the form prescribed by the rules and regulations of the  board.  As  a  part  of its determination concerning the applicant's suitability  for licensing as a games of chance supplier, the board shall require the  applicant to furnish to the  board  two  sets  of  fingerprints.    Such  fingerprints  shall  be  submitted  to  the division of criminal justice  services for a state  criminal  history  record  check,  as  defined  in  subdivision  one  of section three thousand thirty-five of the education  law, and may be submitted to the federal bureau of investigation  for  a  national  criminal  history  record  check.  Manufacturers  of  bell jar  tickets shall be considered suppliers of such equipment.  In  each  such  application  for  a  license under this section shall be stated the name  and address of the applicant; the names and addresses of  its  officers,  directors,  shareholders  or  partners;  the  amount  of  gross receipts  realized on the  sale  and  rental  of  games  of  chance  supplies  and  equipment  to  duly  licensed  authorized  organizations during the last  preceding calendar or fiscal year, and such other information  as  shall  be  prescribed  by  such rules and regulations. The fee for such license  shall be a sum equal to twenty-five dollars plus an amount equal to  two  per  centum  of  the gross sales and rentals, if any, of games of chance equipment and supplies to authorized organizations or  authorized  games  of  chance  lessors by the applicant during the preceding calendar year,  or fiscal year if the applicant maintains his accounts on a fiscal  year  basis.  No  license  granted  pursuant to the provisions of this section  shall be effective for a period of more than one year.

    (a) The following shall be ineligible for such a license:

    (1) a person convicted of a crime who has not  received  a  pardon,  a  certificate   of   good   conduct   or  a  certificate  of  relief  from  disabilities;

    (2) a person who is or has been a  professional  gambler  or  gambling  promoter or who for other reasons is not of good moral character;

    (3) a public officer or employee;

    (4) an authorized games of chance lessor;

    (5)  a  firm  or  corporation in which a person defined in subdivision  (1),  (2),  (3)  or  (4)  above  has  greater  than  a  ten  per  centum  proprietary,  equitable  or credit interest or in which such a person is  active or employed.

    (b) The board shall have power to examine or cause to be examined  the  books  and  records  of any applicant for a license, under this section.  Any information so received shall not be disclosed except so far as  may  be  necessary  for  the  purpose  of carrying out the provisions of this  article.

    (c) Any solicitation of an organization licensed to conduct  games  of  chance,  to  purchase or induce the purchase of games of chance supplies  and equipment, other than by a person licensed or  otherwise  authorized  pursuant to this section shall constitute a violation of this section.

    (d)  Any  person who willfully shall make any material false statement  in any application for a license authorized  to  be  issued  under  this  section  or  who  willfully  shall violate any of the provisions of this  section or of  any  license  issued  hereunder  shall  be  guilty  of  a  misdemeanor  and,  in  addition  to  the penalties in such case made and  provided, shall forfeit any license issued  to  him  or  it  under  this  section  and be ineligible to apply for a license under this section for  one year thereafter.

    (e)  At  the  end  of  such  period  specified  in  the   license,   a  recapitulation  shall  be  made as between the licensee and the board in  respect of the gross sales and rentals  actually  recorded  during  that  period  and  the  fee  paid  therefor, and any deficiency of fee thereby  shown  to  be  due  shall  be paid by the licensee and any excess of fee  thereby shown to have been paid shall be credited to  said  licensee  in  such manner as the board by the rules and regulations shall prescribe.

§ 189-b. Declaration of state's exemption from operation of provisions  of  15  U.S.C.  (1172). Pursuant to section two of an Act of Congress of  the United  States  entitled  "An  act  to  prohibit  transportation  of  gambling  devices  in interstate and foreign commerce," approved January  second, nineteen hundred fifty-one, being chapter 1194, 64  Stat.  1134,  and  also  designated  as  15 U.S.C. (1171-1177), the state of New York,  acting by and through the duly elected  and  qualified  members  of  its  legislature,  does hereby, in accordance with and in compliance with the  provisions of section two of said Act of Congress, declare and  proclaim  that  it  is  exempt  from  the provisions of section two of said Act of  Congress.

§  189-c.  Legal  shipments of gaming devices into New York state. All  shipments into this state of gaming devices, excluding slot machines and  coin operated gambling devices, as defined  in  subdivision  seven-a  of  section 225.00 of the penal law, the registering, recording and labeling  of  which  has  been  duly  had by the manufacturer or dealer thereof in  accordance with sections three and four of an Act  of  Congress  of  the  United  States  entitled  "An act to prohibit transportation of gambling  devices in interstate and foreign commerce,"  approved  January  second,  nineteen  hundred fifty-one, being chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. (1171-1177), shall  be  deemed  legal  shipments  thereof into this state.

§  190.  Application  for  license. 1. To conduct games of chance. (a)  Each applicant for a license shall, after  obtaining  an  identification  number  from  the  board,  file  with the clerk or department, a written  application therefor in a form to  be  prescribed  by  the  board,  duly  executed and verified, in which shall be stated:

    (1)  the  name  and  address of the applicant together with sufficient  facts relating to its incorporation  and  organization  to  enable  such  clerk  or department, as the case may be, to determine whether or not it  is a bona fide authorized organization;

    (2) the names and addresses of  its  officers;  the  place  or  places  where,  the  date  or  dates  and  the  time or times when the applicant  intends to conduct games under the license applied for;

    (3) the amount of rent to be paid or other consideration to  be  given directly  or indirectly for each licensed period for use of the premises  of an authorized games of chance lessor;

    (4) all other items of expense intended to  be  incurred  or  paid  in  connection  with  the holding, operating and conducting of such games of  chance and the names and addresses of  the  persons  to  whom,  and  the  purposes for which, they are to be paid;

    (5) the purposes to which the entire net proceeds of such games are to  be devoted and in what manner; that no commission, salary, compensation,  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.

    (6)  the  name  of  each single type of game of chance to be conducted  under the license applied for and the number of merchandise  wheels  and  raffles, if any, to be operated.

    (b)  In  each application there shall be designated not less than four  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.

    2. Authorized games of chance lessor: Each applicant for a license  to  lease premises to a licensed organization for the purposes of conducting  games  of  chance  therein  shall  file  with the clerk or department, a  written application therefor in a form to be  prescribed  by  the  board  duly  executed  and verified, which shall set forth the name and address  of the applicant; designation and address of the premises intended to be  covered by the license sought; a statement that  the  applicant  in  all  respects conforms with the specifications contained in the definition of  "authorized organization" set forth in section one hundred eighty-six of  this  article;  a  statement  of  the  lawful  purposes to which the net  proceeds from any rental are to be devoted by the  applicant,  and  such  other information as shall be prescribed by the board.

    3.  In  counties  outside  the  city  of New York, municipalities may,  pursuant to section one hundred eighty-eight of this article,  adopt  an  ordinance  providing  that an authorized organization having obtained an  identification number from the board and having applied for no more than  one license to conduct games of chance during the period not  less  than  twelve nor more than eighteen months immediately preceding may file with  the clerk or department a summary application in a form to be prescribed  by  the  board  duly  executed  and  verified,  containing the names and  addresses of the applicant organization and its officers, the date, time  and place or places where the applicant intends to conduct  games  under  the  license  applied for, the purposes to which the entire net proceeds  of such games are to  be  devoted  and  the  information  and  statement  required  by paragraph (b) of subdivision one of this section in lieu of  the application required under subdivision one of this section.

    4. Notwithstanding and in lieu of the licensing requirements set forth  in  this article, an authorized organization defined in subdivision four  of section one hundred eighty-six of this article may  file  a  verified  statement,  for  which  no  fee  shall  be  required,  with the clerk or  department and the board attesting that such organization  shall  derive  net  proceeds  or net profits from raffles in an amount less than thirty  thousand dollars during one occasion or part thereof  at  which  raffles  are  to  be  conducted.  Such  statement  shall be on a single page form  prescribed by the board  and  shall  be  deemed  a  license  to  conduct  raffles:  (a)  under  this article; and (b) within the municipalities in  which the authorized organization are  domiciled  which  have  passed  a  local  law,  ordinance  or  resolution  in  accordance with sections one  hundred eighty-seven  and  one  hundred  eighty-eight  of  this  article  approving  the  conduct  of games of chance, and in municipalities which  have passed a local law, ordinance  or  resolution  in  accordance  with  sections  one  hundred eighty-seven and one hundred eighty-eight of this  article approving the conduct of games of chance that are located in the  county in which the municipality issuing the license is located  and  in  the   counties   which  are  contiguous  to  the  county  in  which  the  municipality issuing the  raffle  license  is  located,  provided  those  municipalities  have  authorized  the licensee, in writing, to sell such  raffle tickets therein.  An  organization  that  has  filed  a  verified  statement with the clerk or department and the board attesting that such  organization shall derive net proceeds or net profits from raffles in an  amount  less  than  thirty  thousand dollars during one occasion or part  thereof that in fact derives  net  proceeds  or  net  profits  exceeding  thirty thousand dollars during any one occasion or part thereof shall be  required  to  obtain  a license as required by this article and shall be  subject to the provisions of section one hundred ninety-five-f  of  this  article.

§  190-a.  Raffles;  license  not  required.  1.  Notwithstanding  the  licensing requirements set  forth  in  this  article  and  their  filing  requirements set forth in subdivision four of section one hundred ninety  of this article, an authorized organization may conduct a raffle without  complying  with such licensing requirements or such filing requirements,  provided, that such organization shall derive net proceeds from  raffles  in  an  amount less than five thousand dollars during the conduct of one  raffle and shall derive net proceeds from raffles in an amount less than  twenty thousand dollars during one calendar year.

    2. (a) For the purposes of  this  section,  "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 volunteer firefighter, 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   being   granted  the  filing  requirement  exemption  contained  in  subdivision one of this section.

    (b) 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.

    3.  No  person  under  the age of eighteen shall be permitted to play,  operate or assist in any raffle conducted pursuant to this section.

    4. No raffle shall be conducted pursuant to this section except within  a municipality in which the authorized organization  is  domiciled  that  has  passed  a  local  law,  ordinance  or resolution in accordance with  sections one hundred eighty-seven and one hundred eighty-eight  of  this  article  approving the conduct of games of chance, and in municipalities  which have passed a local law, ordinance  or  resolution  in  accordance  with  sections  one hundred eighty-seven and one hundred eighty-eight of  this article approving the conduct of games of chance that  are  located  within  the county or contiguous to the county in which the organization  is domiciled.

§  191.  Investigation; matters to be determined; issuance of license;  fees; duration of license. 1. The clerk  or  department  shall  make  an  investigation  of the qualifications of each applicant and the merits of  each  application,  with  due  expedition  after  the  filing   of   the  application.

    (a)  Issuance of licenses to conduct games of chance. If such clerk or  department shall determine that the applicant is duly  qualified  to  be  licensed  to conduct games of chance under this article; 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,  or,  if convicted, have received a pardon, a certificate of good  conduct or a certificate of relief from disabilities;  that  such  games  are  to  be  conducted in accordance with the provisions of this article  and in accordance with the  rules  and  regulations  of  the  board  and  applicable local laws or ordinances and that the proceeds thereof are to  be  disposed  of  as  provided  by  this  article,  and if such clerk or  department is satisfied that no commission, salary, compensation, reward  or recompense whatever will be paid or given  to  any  person  managing,  operating  or  assisting  therein  except  as  in this article otherwise  provided; it 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.

    (b)  Issuance  of  licenses  to authorized games of chance lessors. If  such clerk or department shall determine that the applicant  seeking  to  lease  premises  for the conduct of games of chance to a games of chance  licensee is duly qualified to be licensed under this article;  that  the  applicant  satisfies  the requirements for an authorized organization as  defined in section one hundred eighty-six  of  this  article;  that  the  applicant  has  filed its proposed rent for each license period and that  the clerk or department has approved  the  proposed  rent  as  fair  and  reasonable; that the net proceeds from any rental will be devoted to the  lawful  purposes  of  the  applicant;  that there is no diversion of the  funds of the proposed lessee from the lawful purposes as defined in this  article; and that such leasing of premises for the conduct of such games  is to be in accordance with the provisions of  this  article,  with  the  rules  and  regulations  of  the  board  and  applicable  local laws and  ordinances, it shall issue a license permitting the applicant  to  lease  said  premises  for  the  conduct  of  such games to the games of chance  licensee or licensees specified in the  application  during  the  period  therein  specified  or  such  shorter period as such clerk or department  shall determine, but not to  exceed  twelve  license  periods  during  a  calendar  year, upon payment of a license fee of fifty dollars.  Nothing  herein shall be construed to require the applicant to be licensed  under  this article to conduct games of chance.

    (c)  Issuance  of license upon summary application. If, upon the basis  of a summary  application  as  prescribed  under  subdivision  three  of  section  one  hundred  ninety  of  this article, the clerk or department  shall determine that the applicant is duly qualified to be  licensed  to  conduct  games  of  chance  under this article, said clerk or department  shall forthwith issue said license. In the event the clerk or department  has reason to believe  that  the  applicant  is  not  so  qualified  the  applicant   shall  be  directed  to  file  an  application  pursuant  to  subdivision one of section one hundred ninety of this article.

    2. On or before the thirtieth day of each month, the treasurer of  the  municipality in which the licensed property is located shall transmit to  the  state  comptroller  a  sum equal to fifty percent of all authorized  games of chance lessor license fees and the sum of fifteen  dollars  per  license  period  for  the  conduct  of games of chance collected by such  clerk or department  pursuant  to  this  section  during  the  preceding  calendar month.

    3.  No  license  shall  be  issued  under  this section which shall be  effective for a period of more than one year.

§  192.  Hearing;  amendment  of  license.  1.  No application for the  issuance of a license to conduct games of chance or lease premises to an  authorized organization shall be denied  by  the  clerk  or  department,  until after a hearing, held on due notice to the applicant, at which the  applicant  shall  be entitled to be heard upon the qualifications of the  applicant and the merits of the application.

    2. Any  license  issued  under  this  article  may  be  amended,  upon  application  made  to  such  clerk or department which issued it, if the  subject matter of the proposed amendment  could  lawfully  and  properly  have  been  included  in  the  original license and upon payment of such  additional license fee if any, as would have been payable if it had been  so included.

 

§  193.  Form  and  contents  of  license; display of license. 1. Each  license to conduct games of chance shall be in such  form  as  shall  be  prescribed  in  the  rules and regulations promulgated by the board, and  shall contain a statement of the name and address of  the  licensee,  of  the  names  and  addresses of the members of the licensee under whom the  games will be managed, of the place or places  where  and  the  date  or  dates  and  time or times when such games are to be conducted and of the  purposes to which the entire net  proceeds  of  such  games  are  to  be  devoted;  the name of each single type of game to be conducted under the  license and the number of merchandise wheels and raffles, if any, to  be  operated;  and any other information which may be required by said rules and regulations to be contained therein, and each license issued for the  conduct of any games shall be conspicuously displayed at the place where  same is to be conducted at all times during the conduct thereof.

    2. Each license to lease premises for conducting games of chance  will  be  in  such form as shall be prescribed in the rules and regulations of  the board and shall contain a statement of the name and address  of  the  licensee  and  the  address  of  the  leased  premises,  the  amount  of  permissible rent and any information which may be required by said rules  and regulations to be contained therein, and each such license shall  be conspicuously  displayed  upon  such  premises  at  all times during the conduct of games of chance.

§  194.  Control and supervision; suspension of identification numbers  and licenses; inspection of premises.   1. The  officer  or  department,  shall  have  and  exercise  rigid control and close supervision over all  games of chance conducted under such license, to the end that  the  same  are  fairly conducted in accordance with the provisions of such license,  the provisions of the rules and regulations promulgated  by  the  board,  and  the  provisions of this article. Such officer or department and the  board shall have the power and the authority to temporarily suspend  any  license  issued  by  the  clerk  or  department  and/or impose fines for  violations not to exceed one thousand dollars. Temporary  suspension  of  licenses  shall  be promptly followed by a hearing, and after notice and  hearing, the clerk, department, or board may suspend or revoke the  same  and  declare the violator ineligible to apply for a license for a period  not exceeding twelve months thereafter. Any fines tendered to the clerk,  department, or board shall not be  paid  from  funds  derived  from  the  conduct  of games of chance. The officer and the department or the board  shall additionally have the right of entry, by their respective officers  and agents, at all times into any premises where any game of  chance  is  being  conducted  or  where  it  is intended that any such game shall be  conducted, or where any equipment being used or intended to be  used  in  the  conduct  thereof  is found, for the purpose of inspecting the same.  Upon suspension or revocation of any  license  or  upon  declaration  of  ineligibility  to  apply  for a license, the board may suspend or revoke  the  identification  number  issued  pursuant  to  section  one  hundred  eighty-eight-a  of  this article. An agent of the appropriate officer or  department shall make an on site inspection during the  conduct  of  all  games of chance licensed pursuant to this article.

    2.  A  municipality may, by local law or ordinance enacted pursuant to  the provisions of section one  hundred  eighty-eight  of  this  article,  provide  that the powers and duties set forth in subdivision one of this  section, shall be exercised by the chief law enforcement officer of  the  county.    In  the  event  a municipality exercises this option the fees  provided for by subdivision two of section one hundred ninety-five-f  of  this  article,  shall  be  remitted  to  the chief fiscal officer of the  county.

    3.  Service  of  alcoholic  beverages.  Subject  to   the   applicable  provisions  of  the  alcoholic beverage control law, beer may be offered  for sale during the conduct of  games  of  chance  on  games  of  chance  premises as such premises are defined in subdivision nineteen of section  one  hundred eighty-six of this article; provided, however, that nothing  herein shall be construed to limit the offering for sale  of  any  other  alcoholic  beverage  in areas other than the games of chance premises or  the sale of any other alcoholic beverage  in  premises  where  only  the  games of chance known as bell jar or raffles are conducted.

§  195. Sunday; conduct of games on. Except as provided in section one  hundred ninety-five-b of this article,  no  games  of  chance  shall  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 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.

§  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 article or  to assist therein.

§  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  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 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.

§   195-c.   1.   Persons   operating   games;   equipment;  expenses;  compensation.  No person shall operate any  game  of  chance  under  any  license  issued  under  this  article  except  a bona fide 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.  Nothing 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 members of  such authorized organization, auxiliary or affiliated organization. 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, and  the  cost  of  bus  transportation,  if  authorized  by  such  clerk  or  department.  No  commission,  salary, compensation, 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  organization licensed to conduct a raffle.

§  195-d.  Charge  for  admission and participation; amount of prizes;  award of prizes. A fee may be charged by any licensee for  admission  to  any  game  or  games  of chance conducted under any license issued under  this article. The clerk or  department  may  in  its  discretion  fix  a  minimum  fee.  With the exception of bell jars, coin boards, seal cards,  merchandise boards, and raffles, every winner shall  be  determined  and  every  prize shall be awarded and delivered within the same calendar day  as that upon which the game was played. No alcoholic beverage  shall  be  offered or given as a prize in any game of chance.

§  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, 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, and when an organization  is  licensed  to  conduct  games  of chance on 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.  Additional signs may be  displayed  upon  any  fire  fighting  equipment  belonging  to  any licensed authorized organization which is a volunteer  fire company, or upon any equipment of a first aid or  rescue  squad  in  and  throughout  the  community served by such volunteer fire company 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 and the date, location and time of  the event.

§  195-f. Statement of receipts, expenses; additional license fees. 1.  Within seven days after the conclusion of any license period other  than  a  license period for a raffle, or as otherwise prescribed by the board,  the authorized organization which conducted the same,  and  its  members  who  were in charge thereof, and when applicable the authorized games of  chance lessor which rented its premises therefor, shall each furnish  to  the  clerk  or department a statement subscribed by the member in charge  and affirmed by him as true, under the penalties of perjury, showing the  amount of the gross receipts derived therefrom and each item of  expense  incurred, or paid, and each item of expenditure made or to be made other  than  prizes, the name and address of each person to whom each such item  of expense has been paid, or is to be paid, with a detailed  description  of  the merchandise purchased or the services rendered therefor, the net  proceeds derived from the conduct of games of chance during such license  period, and the use to which such  proceeds  have  been  or  are  to  be  applied  and  it shall be the duty of each licensee to maintain and keep  such  books  and  records  as  may  be  necessary  to  substantiate  the  particulars of each such statement.

    2. Within thirty days after the conclusion of an occasion during which  a  raffle  was  conducted,  the  authorized organization conducting such  raffle and the members in charge of such raffle, and,  when  applicable,  the  authorized  games  of  chance  lessor  which  rented  its  premises  therefor, shall each furnish to the clerk or department a statement on a  form prescribed by the board, subscribed by the  member  in  charge  and  affirmed  by  him  as  true, under the penalties of perjury, showing the  number of tickets printed, the number of tickets sold,  the  price,  and  the  number  of  tickets  returned  to  or  retained  by  the authorized  organization as unsold, a description and statement of the  fair  market  value  for each prize actually awarded, the amount of the gross receipts  derived therefrom, each item of expenditure made or  to  be  made  other  than  prizes, the name and address of each person to whom each such item  of expense has been paid, or is to be paid, a  detailed  description  of  the  merchandise  purchased  or  the services rendered therefor, the net  proceeds derived from the raffle at such occasion, the use to which  the  proceeds  have  been  or are to be applied and shall be the duty of each  licensee to maintain and keep such books and records as may be necessary  to substantiate  the  particulars  of  each  such  statement,  provided,  however,  where  the cumulative net proceeds or net profits derived from  the conduct of a raffle or raffles are less than thirty thousand dollars  during any one occasion, in such case, the reporting  requirement  shall  be  satisfied by the filing within thirty days of the conclusion of such  occasion a verified statement prescribed by the board attesting  to  the  amount  of such net proceeds or net profits and the distribution thereof  for lawful purposes with the clerk or department and  a  copy  with  the  board,  and provided further, however, where the cumulative net proceeds  derived from the conduct of a raffle  or  raffles  are  less  than  five  thousand  dollars  during any one occasion and less than twenty thousand  dollars during one calendar year, no reporting shall be required.

    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.

    4.  Upon  the  filing  of  such  statement  of  receipts  pursuant  to  subdivision  one  or  two  of  this section, the authorized organization  furnishing the same shall pay to the clerk or department as and  for  an  additional  license  fee  a sum based upon the reported net proceeds, if  any, for the license period, or in the case of raffles, for the occasion  covered by  such  statement  and  determined  in  accordance  with  such  schedule  as  shall  be  established  from  time to time by the board to  defray  the  actual  cost to municipalities or counties of administering  the provisions of this article, but such additional  license  fee  shall  not exceed five percent of the net proceeds for such license period. The  provisions  of this subdivision shall not apply to the net proceeds from  the sale of bell jar tickets. No fee shall be  required  where  the  net  proceeds  or net profits derived from the conduct of a raffle or raffles  are less than thirty thousand dollars during any one occasion.

 

§ 195-g. Examination of books and records; examination of officers and  employees;  disclosure  of  information. The clerk or department and the  board shall have power to examine or cause to be examined the books  and  records of:

    1.  Any  authorized  organization  which  is  or  has been licensed to  conduct games of chance, so far as they may relate to  games  of  chance  including  the  maintenance,  control  and  disposition  of net proceeds  derived from games of chance or from the use of its premises  for  games  of  chance, and to examine any manager, officer, director, agent, member  or employee thereof under oath in relation to the conduct  of  any  such  game  under  any  such  license,  the  use  of its premises for games of  chance, or the disposition of net proceeds derived from games of chance,  as the case may be.

    2. Any authorized games of chance lessor so far as they may relate  to  leasing  premises  for games of chance and to examine said lessor or any  manager, officer, director, agent or  employee  thereof  under  oath  in  relation to such leasing.

    Any  information  so  received shall not be disclosed except so far as  may be necessary for the purpose of carrying out the provisions of  this  article.

§  195-h. Appeals from the decision of an officer, clerk or department  to board. Any applicant for, or holder of, any license issued or  to  be issued  under  this article aggrieved by any action of an officer, clerk  or department, to which such application has been made or by which  such  license  has been issued, may appeal to the board from the determination  of said officer, clerk, or  department  by  filing  with  such  officer,  clerk, or department a written notice of appeal within thirty days after  the  determination or action appealed from, and upon the hearing of such  appeal, the evidence, if any,  taken  before  such  officer,  clerk,  or  department  and  any  additional  evidence  may be produced and shall be  considered in arriving at a determination of the matters in  issue,  and  the  action  of  the  board  upon said appeal shall be binding upon such  officer, clerk, or department and all parties to said appeal.

§  195-i.  Exemption  from  prosecution. No person, firm, partnership,  corporation or organization lawfully conducting, or participating in the  conduct of games of chance or permitting the conduct upon  any  premises  owned  or leased by him or it under any license lawfully issued pursuant  to this article, shall  be  liable  to  prosecution  or  conviction  for  violation  of  any  provision  of article two hundred twenty-five of the  penal law or any other law or ordinance to the extent that such  conduct  is  specifically authorized by this article, but this immunity shall not  extend  to  any  person   or   corporation   knowingly   conducting   or  participating  in  the  conduct  of  games  of  chance under any license  obtained by any false pretense or by any false  statement  made  in  any  application for license or otherwise, or permitting the conduct upon any  premises  owned  or  leased by him or it of any game of chance conducted  under any license known to him or it to have been obtained by  any  such  false pretense or statement.

§  195-j.  Offenses; forfeiture of license; ineligibility to apply for  license.  Any person, firm, partnership, corporation or organization who  or which shall:

    (1) make any material false  statement  in  any  application  for  any  license authorized to be issued under this article;

    (2)  pay  or receive, for the use of any premises for conducting games  of chance, a rental in excess of the amount specified as the permissible  rent in the license provided for  in  subdivision  two  of  section  one  hundred ninety-three of this article;

    (3)  fail  to  keep  such  books  and records as shall fully and truly  record all transactions connected with the conducting of games of chance  or the leasing of premises to be  used  for  the  conduct  of  games  of  chance;

    (4)  falsify or make any false entry in any books or records so far as  they relate in any manner to the conduct of  games  of  chance,  to  the  disposition  of the proceeds thereof and to the application of the rents  received by any authorized organization;

    (5) divert or pay any portion of the  net  proceeds  of  any  game  of  chance   to  any  person,  firm,  partnership,  corporation,  except  in  furtherance of one or more  of  the  lawful  purposes  defined  in  this  article;    shall  be guilty of a misdemeanor and shall forfeit any license issued  under this article and be ineligible to apply for a license  under  this  article for at least one year thereafter.

§  195-k.  Unlawful  games  of  chance.  1.  Any  person, association,  corporation or organization holding, operating, or conducting a game  or  games  of  chance  is  guilty  of  a misdemeanor, except when operating,  holding or conducting:

    (a) In accordance  with  a  valid  license  issued  pursuant  to  this  article;

    (b)  On  behalf  of a bona fide organization of persons sixty years of  age or over, commonly referred to as senior  citizens,  solely  for  the  purpose  of  amusement  and  recreation  of  its  members  where (i) the  organization has applied for and received an identification number  from  the  board,  (ii)  no player or other person furnishes anything of value  for the opportunity to participate, (iii) the prizes awarded  or  to  be  awarded are nominal, (iv) no person other than a bona fide active member  of the organization participates in the conduct of the games, and (v) no  person is paid for conducting or assisting in the conduct of the game or  games; or

    (c) A raffle pursuant to section one hundred ninety-a of this article.

    2.  The  provisions  of this section shall apply to all municipalities  within this state, including those municipalities where this article  is  inoperative.

§  195-l.  Article  inoperative  until  adopted  by  voters. Except as  provided in section one  hundred  ninety-five-k  of  this  article,  the  provisions  of this article shall remain inoperative in any municipality  unless and until a  proposition  therefor  submitted  at  a  general  or  special election in such municipality shall be approved by a vote of the  majority of the qualified electors in such municipality voting thereon.

§  195-m.  Amendment and repeal of local laws and ordinances. Any such  local law or ordinance may be amended, from time to time, or repealed by  the common council or other local legislative body of  the  municipality  which  enacted it by a two-thirds vote of such legislative body and such  amendment or repeal, as the case may  be,  may  be  made  effective  and  operative  not  earlier than thirty days following the date of enactment  of the local law or ordinance effecting such amendment or repeal, as the  case may be; and the approval of a majority  of  the  electors  of  such  municipality  shall not be a condition prerequisite to the taking effect  of such local law or ordinance.

§  195-n.  Manufacturers  of  bell  jars;  reports  and  records.   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,  the  manufacturer shall submit to the board a sample of the printed 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. For coin  boards  and  merchandise  boards,  nothing  herein  shall  require   the  submittal  of  actual  coins  or  merchandise  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.

    2.  Bar  codes. The manufacturer shall affix to the flare of each bell  jar game a bar code that provides  all  information  prescribed  by  the  board  and  shall require that the bar code include the serial number of  the game the flare describes. A manufacturer shall  also  affix  to  the  outside  of  the  container  or wrapping containing   a deal of bell jar  tickets a bar code providing all information prescribed by the board and  containing the same information as the bar code affixed  to  the  flare.  The board may also prescribe additional bar code requirements. No person  may  alter  the  bar code that appears on the flare or on the outside of  the container or  wrapping  containing  a  deal  of  bell  jar  tickets.  Possession  of  a deal of bell jar tickets that has a bar code different  from the serial number of the deal inside the container or  wrapping  as  evidenced  on  the  flare is prima facie evidence that the possessor has  altered the bar code on the container or wrapping.

    3. Bell jar flares. (a) A manufacturer shall not ship or cause  to  be  shipped  into this state any deal of bell jar tickets that does not have  its own individual flare as required for that deal by rule of the board.  A person other than  a  licensed  manufacturer  shall  not  manufacture,  alter,  modify,  or  otherwise  change  a  flare  for a deal of bell jar  tickets except as authorized by this article or  rules  and  regulations  promulgated by the board.

    (b) The flare for each deal of bell jar tickets sold by a manufacturer  in  this state shall be placed inside the wrapping of the deal which the  flare describes.

    (c) The bar code affixed to the flare of each bell jar game shall bear  the serial number of such game as prescribed by the board.

    (d) The flare of each bell jar game shall have affixed a bar code that  provides: (1) the game code; (2) the serial number of the game; (3)  the  name  of  the  manufacturer; and (4) other information the board by rule  may require. The serial number included on the bar  code  shall  be  the  same  as  the  serial  number  of  the  tickets  included in the deal. A  manufacturer who manufactures a deal of bell jar tickets shall affix  to  the outside of the container or wrapping containing the bell jar tickets  the same bar code that is affixed to the flare for that deal.

    (e)  No person shall alter the bar code that appears on the outside of  a  container  or  wrapping  containing  a  deal  of  bell  jar  tickets.  Possession of a deal of bell jars that has a bar code different from the  bar  code  of  the  deal inside the container or wrapping is prima facie  evidence that the possessor has altered the bar code on the box.

    4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for  resale  in this state shall file with the board, on a form prescribed by  the board, a report of all bell jar tickets sold to distributors in  the  state.  The  report  shall be filed quarterly on or before the twentieth  day of the month succeeding the end of the quarter in which the sale was  made. The board may require that the report be  submitted  via  magnetic  media or electronic data transfer.

    5. Inspection. The board may inspect the premises, books, records, and  inventory  of  a  manufacturer without notice during the normal business  hours of the manufacturer.

§   195-o.  Distributor  of  bell  jars;  reports  and  records.    1.  Distribution; distributors. Any distributor licensed in accordance  with  section one hundred eighty-nine-a of this article to distribute bell jar  tickets shall purchase bell jar tickets only from licensed manufacturers  and   may  manufacture  coin  boards  and  merchandise  boards  only  as  authorized in subdivision one-a of this section.  Licensed  distributors  of  bell  jar  tickets  shall  sell such tickets only to not-for-profit,  charitable or religious  organizations  registered  by  the  board.  Any  licensed  distributor  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 distributor  who violates this section shall be guilty of a class E felony.

    1-a. Coin boards and merchandise  boards.  Distributors  of  bell  jar  tickets  may manufacture coin boards and merchandise boards only if such  boards have been approved by the board and have a bar  code  affixed  to  them  setting  forth  all information required by the board. Except that  for coin boards and merchandise boards,  delineation  of  the  prize  or  prize  value need not be included on the game ticket sold in conjunction  with a coin board or merchandise board. In lieu of such requirement, the  distributor shall be required to  disclose  the  prize  levels  and  the  number  of  winners  at  each  level and shall print clearly on the game  ticket that a ticket holder may obtain the prize  and  prize  value  for  each  prize  level by referencing the flare. Such coin boards shall only  be sold by licensed distributors to  licensed  authorized  organizations  registered  by  the  board  in  accordance  with  the provisions of this  article.

    2. Business records.  A  distributor  shall  keep  at  each  place  of  business  complete  and  accurate  records  for  that place of business,  including itemized invoices of bell jar tickets held and purchased.  The  records  must  show the names and addresses of purchasers, the inventory  at the close of each period for which a return is required, all bell jar  tickets on hand, and other pertinent papers and  documents  relating  to  the  purchase,  sale,  or  disposition  of  bell  jar  tickets as may be  required by the board. Books,  records,  itemized  invoices,  and  other  papers and documents required by this section shall be kept for a period  of  at  least four years after the date of the documents, or the date of  the entries appearing in the records, unless  the  board  authorizes  in  writing  their  destruction or disposal at an earlier date. A person who  violates this section shall be guilty of a misdemeanor.

    3. Sales records. A distributor shall maintain a record  of  all  bell  jar  tickets  that  it  sells. The record shall include, but need not be  limited to:

    (a) the  identity  of  the  manufacturer  from  whom  the  distributor  purchased the product;

    (b) the serial number of the product;

    (c)  the  name,  address,  and  license or exempt permit number of the  organization or person to which the sale was made;

    (d) the date of the sale;

    (e) the name of the person who ordered the product;

    (f) the name of the person who received the product;

    (g) the type of product;

    (h) the serial number of the product;

    (i) the account number identifying the sale from the  manufacturer  to  distributor  and  the  account  number  identifying  the  sale  from the  distributor to the licensed organization; and

    (j)  the  name, form number, or other identifying information for each  game.

    4. Invoices. A distributor shall supply with each sale of a  bell  jar  product  an itemized invoice showing the distributor's name and address,  the purchaser's name, address, and license number, the date of the sale,  the account  number  identifying  the  sale  from  the  manufacturer  to  distributor  and  the  account  number  identifying  the  sale  from the  distributor to the licensed organization, and  the  description  of  the  deals,  including the form number, the serial number and the ideal gross  from every deal of bell jar or similar game.

    5. Reports. A distributor shall report quarterly to the  board,  on  a  form prescribed by the board, its sales of each type of bell jar deal or  tickets. This report shall be filed quarterly on or before the twentieth  day of the month succeeding the end of the quarter in which the sale was  made.  The  board  may  require  that a distributor submit the quarterly  report and invoices required by  this  section  via  magnetic  media  or  electronic data transfer.

    6.  The  board may inspect the premises, books, records, and inventory  of a distributor without notice during the normal business hours of  the  distributor.

    7.  Certified physical inventory. The board may, upon request, require  a distributor to furnish a certified physical inventory of all bell  jar  tickets  in stock. The inventory shall contain the information requested  by the board.

§   195-p.    Transfer  restrictions.  Not-for-profit,  charitable  or  religious  organizations  authorized  to  sell  bell  jar   tickets   in  accordance  with  this article shall purchase bell jar tickets only from  distributors licensed by the board.  No not-for-profit,  charitable,  or  religious  organization  shall  sell, donate, or otherwise transfer bell  jar  tickets  to  any  other  not-for-profit,  charitable  or  religious  organization.

§  195-q.  Bell  jar compliance and enforcement.   In the case of bell  jars, the  licensee,  upon  filing  financial  statements  of  bell  jar  operations,  shall  also tender to the board a sum in the amount of five  percent of the net proceeds as defined in this paragraph, from the  sale  of  bell jar tickets, seal cards, merchandise board, and coin boards, if  any, for that portion of license period covered by such  statement.  For  the  purposes  of this section, "net proceeds" shall mean the difference  between the ideal handle from the sale of bell jar tickets, seal  cards,  merchandise boards, and coin boards less the amount of money paid out in  prizes and less the purchase price of the bell jar deal, seal card deal,  merchandise board deal, or coin board deal. Additionally, a credit shall  be  permitted  against  the  net  proceeds fee tendered to the board for  unsold tickets of the bell jar deal as long as the unsold  tickets  have  the  same  serial  number  as the tickets for which the fee is rendered.  Such unsold tickets must be kept on file by the selling organization for  inspection by the board for a period of one year following the date upon  which the relevant financial statement was received by the board.

    1. One-half of one  percent  of  such  fee  received  from  authorized  volunteer  fire  companies shall be paid to the New York state emergency  services  revolving  loan  account  established  pursuant   to   sectionninety-seven-pp of the state finance law.

    2.  The  racing and wagering board shall submit to the director of the  division of the budget an annual plan that details the amount  of  money  the  racing  and  wagering board deems necessary to maintain operations,  compliance and enforcement of the provisions of  this  article  and  the  collection  of  the  license  fee authorized by this section. Contingent  upon the approval of the director of the division  of  the  budget,  the  racing  and wagering board shall pay into an account, to be known as the  bell jar collection account, under the joint custody of the  comptroller  and  the  board,  the total amount of license fees collected pursuant to  this section. With the approval of the director of the division  of  the  budget,  monies  to  be utilized to maintain the operations necessary to  enforce the provisions of this article and the collection of the license  fee imposed by this section shall be paid out of  such  account  on  the  audit  and  warrant of the comptroller on vouchers certified or approved  by the director of the division of the budget  or  his  duly  designated  official.  Those  monies  that  are  not utilized to maintain operations  necessary to enforce the provisions of this article and  the  collection  of  the license fee authorized by this section shall be paid out of such  amount on the audit and warrant of the state comptroller  and  shall  be  credited to the general fund.

§  195-r.    Severability.    If  any provision of this article or the  application thereof to any municipality, person or  circumstances  shall  be adjudged unconstitutional by any court of competent jurisdiction, the  remainder   of   this  article  or  the  application  thereof  to  other  municipalities, persons and circumstances shall not be affected thereby,  and the legislature hereby declares that  it  would  have  enacted  this  article  without  the  invalid provision or application, as the case may  be, had such invalidity been apparent.