Eases certain restrictions on the conducting of games of chance and bingo for charitable purposes

Another purpose of this bill is to update the provisions that govern the conduct of bingo games in New York. Article 14-H of the General Municipal Law was first codified in 1957 and has not been substantially modified since that date. The operation of bingo games raises significant funds for not-for-profit organizations that helps to support their charitable purposes. However, the change in lifestyles and entertainment venues since the 1960's has substantially curtailed the amount of bingo money raised by charitable organizations to support their charitable purposes. This bill hopes to encourage more volunteers to participate in bingo games and reduce overhead costs that could then be shifted to supporting those designated charitable purposes.

Summary of provisions

Section 1: Amends General Municipal Law section 186 to up-date definitions that are used in Article 9-A that govern the regulation of charitable games such as bell jars, raffles, and Las Vegas nights. Among the definitions that are modified axe the inclusion of the term "auxiliary member". This definition is currently included in the law, but is buried in the body of the General Municipal Law. It updates the definition of "net proceeds" to better reflect the kinds of expenses that charitable organizations incur to operate bingo games. This provision slightly increases the number of times and number of games of bingo that that occur during the calendar year. In addition, a definition of "reasonable expenses" is provided to reimburse volunteers for their reasonable out of pocket expenses to help conduct such games.

Section 2: Amends General Municipal Law section 189 to permit auxiliary members of a charitable organization to participate in the management and operation of such games. This provision was added to reflect the current problem that charitable organizations are facing in securing volunteers to manage and conduct games of chance. Further, it permits the charitable organization to reimburse volunteers for

their reasonable expenses incurred to volunteer for conducting such games. The items would be limited transportation costs, babysitting costs to watch children while parents help conduct bingo games. To avoid abuse of this section, the Board could adopt rules to specify the kinds of reimbursable expenses which could be allowed for volunteers. This provision also increases a single prize limit from $300 to $400, except for raffles which increased from $250 to $300. For a series of prizes, the values increase from $400 to $500 to reflect the devaluation of the prizes due to inflation. The prize limits set in this section were established in 1976. With inflation since 1976, the prize values have been devalued substantially over the past 35 years.

Section 3: Amends General Municipal Law section 190 to revise how reasonable expenses of volunteers of a charitable organization can be paid for to increase the pool of volunteers who can assist in the conduct of bingo games.

Section 4: Amends General Municipal Law section 190 to reduce the number of bonafide members of an applicant organization that are named to manage the games of chance from 4 to 3. This is needed due to the lack of volunteers available to manage these charitable games.

Section 5: Amends the General Municipal Law section 190-a to include volunteer ambulance workers as being a bona fide authorized organization that can conduct games of chance. Before 1976, most ambulance companies were organized under a volunteer fire company. However, it is more common now to see ambulance companies that operate free of a volunteer fire company.

Section 6: Amends General Municipal Law section 190-a to allow those between the ages of 16 and 18 can help conduct a raffle if accompanied by an adult.

Section 7: Amends General Municipal Law section 191 to allow those who have been convicted of a crime to conduct bingo games, if the charitable organization that is sponsoring such games of chance has as its charitable purposes the charge of assisting and rehabilitating those who have committed crimes or convicted of drug offenses. There are probably worse things that a formerly convicted individual could be doing once released from prison than helping to conduct a game chance that is under the supervision of a rehabilitation services program.

Section 8: Amends General Municipal Law section 194 to allow for the sale of wine, in addition to the currently authorized sale of beer during the conduct of games of chance events. Drinking patterns have changed since this law was last codified in 1976. The consumption of wine is far more common that it was in the past and should be allowed during the conduct of games of chance.

Section 9: Amends General Municipal Law section 195 to change the default on conducting of games of chance on Sunday from being prohibited unless authorized by the local municipality to being permitted unless the local municipality opts to prohibit such games on Sunday.

Section 10: Amends General Municipal Law section 195-a to permit those who are 16 to 18 years old to help conduct games as long as they are accompanied by a parent or another adult. Under current law, children can attend games as long as they are accompanied by an adult. This bill will increase the pool of volunteers that could help to conduct bingo games, provide assistance at the snack stand. Since 1967, the world has changed. With the expanded use of the internet, internet gambling, and questionable material that is readily available to children on the internet, it seems outdated that teenagers between the ages of 16 and 18 are prohibited from assisting their parents or other adults in assisting in the conduct of games with other adults. In today's society, there are probably much worse things that a teenager could be doing than helping a charitable organization conduct a games of chance.

Section 11: Amends General Municipal Law section 195-b to increase the frequency at which games can be conducted from 12 to 18 times in any calendar year.

Section 12: Amends General Municipal Law section 195-c to reformat this section so that the definition of auxiliary member of a charitable organization is contained not in this section, but shifted to the definitions section contained in bill section one.

Section 13: Amends General Municipal Law section 195-e to modernize the types of advertising that can be done to promote game nights. It permits the use of emails and government access television broadcasts. Also, it allows volunteer ambulance companies to display signs advertising bingo events as is now the case for volunteer fire companies. When this law was first enacted in 1967, ambulance corps were generally associated with a fire company. Since then, the free standing volunteer ambulance company is more common so this provision was amended to include such free standing ambulance squads.

Section 14: Amends General Municipal Law section 195-f to make a technical amendment thereto.

Section 15: Amends General Municipal Law section I95-n related to approvals of bell jar game cards.

Section 16: Amends General Municipal Law section 476 to update definitions that are used in Article 14-H that govern the regulation of bingo games. Among the definitions that are modified are the inclusion of the term "auxiliary member". This definition is currently included in the law, but is buried in the body of the General Municipal Law. It updates the definition of "net proceeds" to better reflect the kinds of expenses that charitable organizations incur to operate bingo games. This provision slightly increases the number of times and number of games of bingo that that occur during the calendar year. Also, a definition for "reasonable expenses incurred by a volunteer" has been included.

Section 17: Amends General Municipal Law section 479 to permit auxiliary members of a charitable organization to participate in the management and operation of such games. This provision was added to reflect the current problem that charitable organizations are facing in securing volunteers to manage and conduct bingo games. Further, it

permits the charitable organization to reimburse volunteers for their reasonable expenses incurred to volunteer for conducting such games. The items would be limited transportation costs, babysitting costs to watch children while parents help conduct bingo games. To avoid abuse of this section, the Board could adopt rules or standards to specify the kinds of reimbursable expenses which could be allowed for volunteers. This provision also increases the prize limit from $ 1,000 to $ 1,500 and the aggregate prize value from $ 3,000 to $ 4,000 to reflect the devaluation of the prizes due to inflation. The last time the prize limits were increased was in 1957, the last year of the Governor Harriman Administration. Since 1957, New York has had Governors Rockefeller, Carey, Cuomo, Pataki, Spitzer, and now Andrew Cuomo.

Section 18: Amends General Municipal Law section 480 to revise how reasonable expenses of volunteers of a charitable organization can be paid for to increase the pool of volunteers who can assist in the conduct of bingo games.

Section 19: Amends General Municipal Law section 481 to update provisions related to those who have been convicted of a crime to conduct bingo games, if the charitable organization that is sponsoring such bingo games has as its charitable purposes the change of assisting and rehabilitating those who have committed crimes or convicted of drug offenses. There are probably worse things that a formerly convicted individual could be doing once released from prison than helping to conduct a game of bingo that is under the supervision of a rehabilitation services program. This provision also slightly increases the ceiling on the single and aggregate prize award from, respectively, $ 1,000 to $ 1,500 and $3,000 to $ 4,000. Again, these caps were instituted in 1957, the same year that the '57 Chevy was manufactured.

Section 20: Amends General Municipal Law section 483 to delete references to the Bingo Control Board, which went out of existence in 1977, and whose duties were shifted to the Racing & Wagering Board in the same year.

Section 21: Amends General Municipal Law section 485 to change the default on conducting bingo games on Sunday from being prohibited unless authorized by the local municipality to being permitted unless the local municipality opts to prohibit such games on Sunday.

Section 22: Amends General Municipal Law section 466 to permit those who are 15 to 18 years old to help conduct games of bingo as long as they are accompanied by a parent or another adult. Under current law, children can participate in bingo games as long as they are accompanied by an adult. This bill will increase the pool of volunteers that could help to conduct bingo games, provide assistance at the snack stand and hand out bingo cards. Since 1957, the world has changed. With the expanded used of the Internet, internet gambling, and questionable material that is readily available to children on the Internet, it seems outdated that a teenagers between the ages of 15 and 18 are prohibited from assisting their parents or other adults in passing out bingo cards to game participants. In today's society, there are probably much worse things that a teenager could be doing than helping a charitable organization conduct a bingo game.

Section 23: Amends General Municipal Law section 487 to increase the frequency at which bingo games can be conducted from 18 to 27 days in any three successive calendar months.

Section 24: Amends General Municipal Law section 468 to reformat this section so that the definition of auxiliary member of a charitable organization is contained not in this section, but shifted to the definitions section contained in bill section one.

Section 25: Amends General Municipal Law section 490 to modernize the types of advertising that can be done to promote bingo game nights. It permits the use of emails and government access television broadcasts. Also, it allows volunteer ambulance companies to display signs advertising bingo events as is now the case for volunteer fire companies. When this law was first enacted in 1957, ambulance corps were generally associated with a fire company. Since then, the free standing volunteer ambulance company is more common, so this provision was amended to include such free standing ambulance squads.

Section 26: Amends General Municipal Law section 491 to extend from 7 days to 10 days in which file municipal reports on gross receipts from bingo games. Since these reports are prepared and filed by charitable organization volunteers, this extension in the time period will in effect give them not just one, but two full weekends to prepare and file reports on gross receipts.

Justification

The conduct of games of chance raises substantial funds to support the charitable purposes of those organization that conduct such games. However, the total amount wagered and more importantly the profit that is retained by these charitable organizations has been steadily declining. In 2000, total games of chance handle generated in New York was $323,330,000, however in 2010 that total handle declined by approximately $81,000,000 to a total of $242,600,000. More importantly, the profits generated by these games declined substantially from $53,750,000 in 2000 to $46,530,000 in 2010. That is an annual reduction in support for New York's charitable organizations of $7,220,000.

There are many reasons for this reduction in revenue generated to support charitable organizations. The most important is the reduced number and pool of volunteers available to conduct and manage such games. This bill addresses this by allowing volunteers to get at least some of their out of pocket expenses for volunteering to conduct such games such as child care costs and gas money when volunteering, and allowing teenagers over the age of 16 to assist other adults in conducting the games and operating the snack bar.

Second, the means of advertising bingo games needs to be modernized to include those forms of communication that are more commonly used now, i.e. the Internet.

Legislative history

2014 - S. 2427 - Referred to Racing & Wagering, in 0 2014 - S. 2428- Referred to Racing & Wagering,

2012 - S. 6594 - Referred to Racing & Wagering Committee, 2012 - S. 6595- in Racing & Wagering Committee.

Fiscal implications

None

Effective date

January first after the act shall have become law.