Title 9 Part 4624

Every licensee shall attach and file with its financial statement an additional statement (form GC-7B, as prescribed by the commission) setting forth receipts relating to each type of game of chance and the names of the workers. The records setting forth the calculation of the receipts shall be retained by the licensee for such licensee’s permanent records, together with form GC-7B, for a period of not less than four years.

Upon the filing of the financial statement of games of chance operations (form GC-7) and attachment, the licensee shall pay to the clerk or department or, where applicable, the chief fiscal officer of the county, as an additional licensee fee, a sum in the amount of five percent of the reported net proceeds, if any, for the license period covered by such statement. In the case of raffles, the licensee, upon filing the financial statement of raffles operations, shall pay to the clerk or department or, where applicable, the chief fiscal officer of the county, as an additional license fee, a sum in the amount of two percent of the reported net proceeds, if any, for that portion of the license period covered by such statement. Where the cumulative net proceeds or net profits derived from the conduct of a raffle or raffles are less than $30,000 during any one occasion, in such case, the reporting requirement shall be satisfied by the filing within 30 days of the conclusion of such occasion a verified statement on a form prescribed by the commission 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 commission. No fee shall be required where the net proceeds or net profits derived from the conduct of a raffle or raffles are less than $30,000 during any one occasion. An organization that has filed a verified statement with the clerk or department and the commission attesting that such organization shall derive net proceeds or net profits from raffles in an amount less than $30,000 during one occasion or part thereof that in fact derives net proceeds or net profits exceeding $30,000 during any one occasion or part thereof shall be required to obtain a license as required by this Title and shall be subject to the reporting requirements and additional license fees required by this Part. In the case of bell jars, the licensee, upon filing financial statements of bell jar operations (form GC-7Q) with the commission, shall also tender to the commission a sum in the amount of five percent of the net proceeds as defined in this Part, from the sale of bell jar tickets, 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, coin boards, merchandise boards and seal cards, less the purchase price to the licensee of the bell jar tickets, coin boards, merchandise boards and seal cards and the amount of money paid out in prizes. Additionally, a credit shall be permitted against the net proceeds fee tendered to the commission 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 commission for a period of one year following the date upon which the relevant financial statement was received by the commission.

When no games are held on any date when a license authorizes them to be held, a notification to that effect must be filed with the clerk or department, the officer and the commission.

If the financial statement of games of chance operations, financial statement of raffle operations or financial statement of bell jar operations filed by a licensee is not properly verified, or not fully, accurately and truthfully completed, no further license shall issue to such licensee, and any existing license may be suspended pursuant to the provisions of Part 5626 of this Title.

Before any games of chance funds are expended for noncharitable purposes, the licensee organization shall utilize all other sources or potential sources of income to discharge such noncharitable and operating expenses ordinarily incurred. Any licensee organization that is disbursing games of chance funds for noncharitable purposes shall make its general fund and all other books and records available for examination by the commission or the municipal governing body or their representatives upon request.

With the exception of the transfer of funds to the commission as may be required by section 4624.3, which may be accomplished by approved electronic means pursuant to instructions, directions and procedures that the commission may establish and modify from time to time, all monies withdrawn from the “special games of chance account,” “special raffle account” or “special bell jar account” shall be only by checks having preprinted consecutive numbers, signed by at least two duly authorized officers of the licensee and made payable to a specific person, firm, partnership or corporation with the purpose specified on the check stub. No check from any of the accounts described in this section is permitted to be made payable to cash. All checks must be accounted for in the appropriate part of the financial statement of games of chance operations (form GC-7), financial statement of raffle operations (form GC-7R) or financial statement of bell jar operations (form GC-7Q), including voided checks.

Monies withdrawn from the “special games of chance account,” “special raffle account” or the “special bell jar account” shall only be for one or more of the following purposes:

The commingling of monies derived from the conduct of games of chance with any other funds of the licensee is prohibited.

Each licensee shall maintain a single-entry bookkeeping system for the purpose of recording all receipts and expenditures in connection with the conduct of games of chance and the disbursement of net proceeds derived therefrom. Such bookkeeping system shall consist of a columnar book prepared in the manner shown in Exhibits 1 and 2 (Appendix T-2 of this Title) and shall be maintained on a calendar- or fiscal-year basis. In the case of raffles and bell jars, each licensee shall maintain a single-entry bookkeeping system for the purpose of recording all receipts and expenditures in connection with the conduct of raffles and bell jars and the disbursement of net proceeds derived therefrom. Such bookkeeping system shall consist of a columnar book maintained on a calendar-year or fiscal-year basis. The functions of bookkeeper and duly authorized signer of checks shall not be performed by the same persons.

The books of account shall be kept up-to-date. The columnar books, deposit books, savings account passbooks, cancelled checks, checkbooks, deposit slips, bank statements and copies of financial statements of games of chance operations (form GC-7), financial statements of raffle operations (form GC-7R) and financial statement of bell jar operations (form GC-7Q) for the previous 18 months, and all other books of account, shall be available at all games of chance license periods and other reasonable times for examination by the commission, clerk or department and officer or their representatives. The books of account and all documents supporting the entries made in the books of account shall be kept by the licensee for a period of not less than four years.

Each licensee shall require its treasurer or its duly designated officer to report in writing to its chief officer and membership, at least once a month, the number of games of chance license periods played, the number of raffles conducted, the number of bell jar deals sold since the last report and the net profit or loss from the operation of each games of chance license period, raffle and bell jar deal. The chief officer shall require monthly deposit slips, bank statements, checking accounts and bankbooks to be exhibited at each such meeting, and such items shall be open to individual membership inspection. Such information must be incorporated in the minutes or proper records of each licensee. Where a licensee is an auxiliary or an affiliate of a parent organization, a copy of the written report shall be filed with the executive officer of the parent organization and incorporated in its minutes.

All monies must be deposited and kept in banks located within the boundaries of New York State. When said monies are deposited into a checking account, the account shall be designated “ special games of chance account” when deposited into an interest-bearing account, certificate of deposit or federally insured money market account, the account or certificate shall be designated “special games of chance savings account.” Every licensee shall designate its president or chief officer to receive from the bank the monthly statements, cancelled checks of the special games of chance, special raffle and special bell jar accounts and the records of all other games of chance accounts who shall verify and reconcile the GC-7's, GC-7Q's and GC-7R's, original bank deposit slips, books and records with the treasurer at least monthly.

An organization that has ceased to conduct games of chance for any reason, and has unexpended games of chance funds, shall:

A licensed authorized games of chance lessor shall execute and file a financial statement of rental income on form GC-9, as prescribed by the commission. The original of the form shall be filed with the licensing authority and one copy with the commission.

Licensed games of chance lessors shall file form GC-9 with the licensing authority and commission within seven days after the conclusion of each leased license period.

Each licensed authorized games of chance lessor shall maintain a games of chance rental account, which shall be designated the “special games of chance rental account” and which shall be in the form of a regular checking account. Into this account shall be deposited all, and only, monies received from rentals of premises for the conduct of games of chance. All disbursements related to the rental of premises for the conduct of games of chance and for lawful purposes shall be made from this account.

The disbursement of net proceeds on deposit in an interest-bearing account for one or more lawful purposes shall be made by transferring the amount of the intended disbursement back into the “special games of chance account,” “special raffle account” or “special bell jar account” and then withdrawing the amount therefrom in the manner prescribed in section 4624.9 of this Part.