Title 9 Part 4607

License required.

No person, firm, partnership, organization, association, joint venture, corporation or other business entity shall sell or distribute games of chance supplies, devices or equipment to any authorized organization licensed to conduct games of chance, or a licensed authorized games of chance lessor, without having first obtained a license therefor as provided in the Games of Chance Licensing Law and this Chapter.

Form for application.

Application for a license as a games of chance supplier shall be made on form GC-106, as prescribed by the commission. The application with supporting material as set forth in this Part shall be filed in duplicate with the commission.

Individual and business entity statement.

Where the applicant is an individual, the application shall be accompanied by an individual statement on form GC-103; where the applicant is a firm, partnership, organization, association, joint venture or any business entity other than a corporation, it shall be accompanied by a business entity statement on form GC-104. Each person named in form GC-104 shall file an individual statement on form GC-103. For corporations, see section 4607.4 of this Part.

Corporation statement.

If the applicant is a corporation, the application shall be accompanied by a corporation statement on form GC-105. Each officer and stockholder shall file an individual statement on form GC-103.

List of employees, agents or representatives.

The application shall be accompanied by a statement on form GC-108, as prescribed by the commission, containing a list of all employees, agents or representatives of the applicant.

Requisites for license.

No license as a games of chance supplier shall be granted:

Hearings.

The commission may hold hearings or inquiries at which the applicant, and its employees and, if the applicant is a corporation, its officers, directors and stockholders, may be required to appear and testify under oath respecting the contents of the application.

Issuance by commission.

per centum

of the gross sales or rentals, if any, of games of chance equipment or supplies to licensed authorized games of chance organizations and licensed authorized games of chance lessors by the applicant during the license year, or fiscal year, whichever is specified by the commission.

When fees shall be payable.

The licensing fee shall be payable to the commission upon application for license.

Ineligibility for a license.

Persons and entities set forth in General Municipal Law 189-a(a) shall be ineligible for a games of chance supplier's license.

Disapproval procedure.

If the application is not approved, the commission shall give due notice in writing to the applicant, who may, within 10 days of receipt thereof, request a hearing to be held upon the qualifications of the applicant and the merits of the application. At the hearing the burden of proof shall be on the applicant to establish eligibility for a license.

Grounds for revocation or suspension.

Any license as a games of chance supplier issued pursuant to the Games of Chance Licensing Law may be revoked or suspended for such period as the board deems in the public interest for any of the following acts or omissions on the part of the licensee, its agents or employees, or any person required by the Games of Chance Licensing Law or this Chapter to sign or be identified in an original application for a license:

Persons prohibited from participating in the conduct of games of

chance. No person who is directly or indirectly connected with the manufacture, sale or distribution of games of chance equipment or supplies, or such person’s agents or employees, shall conduct, participate, advise or assist in the conduct of games of chance, or render any service to anyone conducting, participating or assisting in the conduct of games of chance, or prepare any form pertaining to games of chance. This shall not be construed so as to prohibit a licensed manufacturer or supplier from selling, offering for sale, or explaining a product to a licensed authorized organization or installing or servicing games of chance equipment upon the premises of a licensed authorized organization.

Games of chance supplier to notify commission of all changes in

structure. An applicant for a license as a games of chance supplier shall, during the pendency of the application, notify the commission immediately of any change respecting any facts set forth in the application. If any such change occurs after the issuance of the license applied for, the change must be reported to the commission within 10 days of the date of the change. Furthermore, every licensed games of chance supplier shall notify the commission of any change in its organization, structure, mode of operation, or of any change in the identity of persons named or required to be named in the application, or of the nature or extent of their interest, or of any other change respecting any facts set forth in the application, within 10 days of the date of such change. Failure to give the notice provided by this section shall constitute sufficient cause for denial of a pending license or suspension or revocation of a license that has been granted.

Maintenance of books and records.

All licensed games of chance, manufacturers and suppliers shall maintain their books and records in such manner as to enable the commission to determine the gross sales and rentals of games of chance equipment, devices and supplies to licensed suppliers and authorized organizations duly licensed to conduct games of chance in the State of New York.

Sales to other than licensed organizations or lessors prohibited.

No licensed games of chance supplier, its duly authorized agents, salespersons or representatives, shall, during the term of such license, sell or distribute games of chance supplies, devices or equipment in the State of New York to other than an organization licensed to conduct games of chance or licensed authorized games of chance lessors.

Examination of records.

The commission shall have power to examine the books and records of any applicant for a license, or any licensee under this Part.

Time during which license is effective.

A license as a games of chance supplier shall be valid for a period not exceeding one year, or until revoked or suspended by the commission.

License form.

A license as a games of chance supplier shall be issued on form GC-107, as prescribed by the commission.

Recapitulation of fees.

At the end of the license period, a recapitulation shall be made as between the supplier licensee and the commission with respect to the gross sales recorded during the license period and the license fee previously paid, as required by General Municipal Law section 189-a(e). Any deficiency of fee thereby established to be due shall be paid by the licensee and, should said licensee apply for a license for a subsequent year, and in that event only, shall any excess of fee be credited to said applicant.

Identification of games of chance devices and equipment.

No licensed supplier shall sell or lease any type of games of chance devices and equipment unless there has been permanently and prominently marked thereon the name and license number of the supplier.

Specifications of games of chance equipment and supplies.

All equipment and supplies designed for, manufactured, sold or leased for use in the conduct of games of chance shall be restricted to those games authorized by the commission and in accordance with the specifications and rules for such games promulgated by the commission.

Maintenance to be licensed activity.

No person, firm, partnership, corporation, joint venture, association or organization shall engage in the business of repairing or maintaining games of chance equipment or paraphernalia without having first obtained a games of chance supplier's license therefor from the commission.

No separate fee to be charged by supplier.

No licensed supplier, its duly authorized agent, salesperson or representative, shall charge a separate fee for the demonstration of games of chance equipment or paraphernalia.

Supplier's gifts or donations prohibited.

No licensed supplier, its duly authorized agent, salesperson or representative, shall furnish any equipment, devices or supplies without a charge to a licensed organization; nor shall any agreement, oral or written, be made to give or allow the use of any property or thing of value to a licensed organization in consideration of its purchase, lease or use of the licensed supplier's equipment, devices or supplies.

Leasing of games of chance equipment from any unlicensed person

prohibited. No licensed games of chance supplier, its duly authorized agents, salespersons or representatives, shall rent or lease games of chance supplies, devices or equipment from any person, firm, partnership, association, joint venture, corporation, or organization unless such person, firm, partnership, association, joint venture, corporation or organization is a licensed games of chance supplier.

Temporary permit.

The commission may issue a temporary permit to an applicant pending final action on the application. Any such temporary permit shall be valid until withdrawn by the commission.