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A06655 Summary:

BILL NOA06655C
 
SAME ASNo Same As
 
SPONSORWoerner
 
COSPNSRSantabarbara
 
MLTSPNSR
 
Amd §§1604 & 1607, Tax L
 
Requires the return of unsold instant lottery game tickets to the division of the lottery when a licensed agent goes out of business, sells their business or if their license is suspended or revoked.
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A06655 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6655C
 
SPONSOR: Woerner
  TITLE OF BILL: An act to amend the tax law, in relation to unsold instant lottery game tickets   PURPOSE OR GENERAL IDEA OF BILL: Provides that the State Division of Lottery shall redistribute instant lottery game tickets if a licensed lottery agent goes out of business or sells their business, or if a person's license is suspended or revoked.   SUMMARY OF PROVISIONS: Section 1 amends Subdivision b of § 1604 of the Tax Law to direct the division to redistribute unsold instant lottery game tickets to other sales agents when a lottery sales agent goes out of business or sells their business. If the division is unable to redistribute such unsold instant lottery game tickets to other licensed sales agents, the commis- sion shall terminate such instant lottery game. Section 2 amends § 1607 of the Tax Law to direct the division to redis- tribute unsold instant lottery game tickets to other sales agents when a lottery sales agent's license is suspended or revoked. If the division is unable to redistribute such unsold instant lottery game tickets to other licensed sales agents, the commission shall terminate such instant lottery game. Section 3 provides the effective date.   JUSTIFICATION: When instant lottery games are created there are a certain number of grand prizes in the game. Generally, when the last grand prize has been claimed, the Division of Lottery will end the game. However, when a lottery agent goes out of business or sells their business to another person, the Division reclaims the scratch off tickets and puts them into storage. If there is a grand prize on one of those scratch off tickets, the instant lottery game does not end because the last grand prize has not been awarded. That means, people buying tickets think they may win a grand prize, but the grand prize ticket is not in fact in circulation. This bill provides that any unused scratch off tickets reclaimed by the Division must be distributed to other sales agents so the games can end when there are no more grand prizes to be awarded.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This bill shall take effect immediately.
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A06655 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6655--C
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 6, 2025
                                       ___________
 
        Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
          tee on Racing and Wagering  --  committee  discharged,  bill  amended,
          ordered  reprinted  as  amended  and  recommitted to said committee --
          again reported from said committee with amendments, ordered  reprinted
          as  amended and recommitted to said committee -- reported and referred
          to the Committee on Ways and Means -- reported  and  referred  to  the
          Committee  on  Rules  --  Rules  Committee  discharged,  bill amended,
          ordered reprinted as amended and recommitted to the Committee on Rules
 
        AN ACT to amend the tax law, in relation to unsold instant lottery  game
          tickets
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision b of section 1604 of the tax law, as  added  by
     2  chapter 92 of the laws of 1976, is amended to read as follows:
     3    b. 1. The division is authorized to license agents to sell tickets for
     4  the  state  lottery.  The  division may require a bond from any licensed
     5  agent, in an amount to be determined by  the  division.  Every  licensed
     6  agent  shall prominently display [his] their license, or a copy thereof,
     7  as may be determined by rules and regulations of the division,  in  each
     8  place of business or activity where lottery tickets are sold.
     9    2.  When a licensed agent goes out of business or sells their business
    10  to another person as defined in section one thousand six hundred five of
    11  this article, their license shall expire and any unsold instant  lottery
    12  game  tickets  in their possession shall be returned to the division and
    13  redistributed to  other  licensed  sales  agents,  unless  such  instant
    14  lottery  game has been terminated by the commission.  If the division is
    15  unable to redistribute such unsold instant lottery game tickets to other
    16  licensed sales agents,  the  commission  shall  terminate  such  instant
    17  lottery  game.    For the purposes of this subdivision, "instant lottery
    18  game" shall mean any lottery game conducted on a game ticket  authorized
    19  or    issued  by  the  commission that includes one or more instant play
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10449-06-5

        A. 6655--C                          2
 
     1  features, such as rub-off coatings, pull-tabs, or other  concealed  play
     2  areas,  which,  when  revealed,  indicate  whether  the player has won a
     3  prize.
     4    §  2. Section 1607 of the tax law, as amended by chapter 2 of the laws
     5  of 1995, subdivision g as added by chapter 701  of  the  laws  of  1996,
     6  subdivision  h  as  amended by chapter 162 of the laws of 2002 and para-
     7  graph 1 of subdivision h as amended by section 7 of part EE  of  chapter
     8  56 of the laws of 2020, is amended to read as follows:
     9    §  1607.  Suspension  and  revocation of licenses. a. The division may
    10  suspend or revoke, after notice and an opportunity for a hearing  pursu-
    11  ant to the state administrative procedure act, any license issued pursu-
    12  ant to this article. Such license may, however, be temporarily suspended
    13  by  the division without prior notice, pending any prosecution, investi-
    14  gation or hearing. A license may be suspended or revoked by the division
    15  for one or more of the following reasons:
    16    [a.] 1. Failure  to  account  for  lottery  tickets  received  or  the
    17  proceeds of the sale of lottery tickets or to file a bond if required by
    18  the  division  or to comply with instructions of the division concerning
    19  the licensed activity;
    20    [b.] 2. Conviction of any offense as defined in the penal law, or  any
    21  felony  under  the  laws  of  the United States or under the laws of the
    22  state of New York or any other state  or  foreign  jurisdiction  or  any
    23  crime relating to gaming activities;
    24    [c.]  3.  Failure  to file any return or report, to keep records or to
    25  pay any tax required by any article of this chapter;
    26    [d.] 4. Fraud, deceit, misrepresentation  or  conduct  prejudicial  to
    27  public confidence in the state lottery;
    28    [e.]  5.  With respect to a lottery sales agent, the number of lottery
    29  tickets sold by the lottery sales agent is insufficient to meet adminis-
    30  trative costs and public  convenience  is  adequately  served  by  other
    31  licensees;
    32    [f.] 6. A material change, since issuance of the license, with respect
    33  to  any matters required to be considered by the division under subdivi-
    34  sion d or e of section sixteen hundred five of this article[.];
    35    [g.] 7. Conviction for misuse of food stamps pursuant to  section  one
    36  hundred forty-seven of the social services law[.]; or
    37    [h.]  8. A violation of article thirteen-F of the public health law as
    38  provided in this subdivision:
    39    [1.] (i) A license shall be suspended for a period of  one  year  upon
    40  notification  to the division by the commissioner of health of a lottery
    41  sales agent's accumulation of three or more points pursuant to  subdivi-
    42  sion  three  of  section  thirteen  hundred ninety-nine-ee of the public
    43  health law.
    44    [2.] (ii) A license shall be revoked for one year upon notification to
    45  the division by the commissioner of health of a  lottery  sales  agent's
    46  fourth violation of article thirteen-F of the public health law within a
    47  three year period.
    48    b.  In any case in which a sales agent's license has been suspended or
    49  revoked, any unsold instant lottery game tickets shall  be  returned  to
    50  the  division  and redistributed to other licensed sales agents for sale
    51  to the public, unless such instant lottery game has been  terminated  by
    52  the  commission.   If the division is unable to redistribute such unsold
    53  instant lottery game tickets to other licensed sales agents, the commis-
    54  sion shall terminate such instant lottery game.   For  the  purposes  of
    55  this  section,  "instant  lottery  game"  shall  mean  any  lottery game
    56  conducted on a game ticket authorized or  issued by the commission  that

        A. 6655--C                          3
 
     1  includes  one  or more instant play  features, such as rub-off coatings,
     2  pull-tabs, or other concealed play  areas, which, when  revealed,  indi-
     3  cate whether the player has won a  prize.
     4    § 3. This act shall take effect immediately.
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