Bill Text: NJ A1223 | 2010-2011 | Regular Session | Introduced
Bill Title: Directs the State Lottery Commission to establish video lottery at not more than three horse racetracks; provides for NJ Casino Control Commission and NJ Division of Gaming Enforcement oversight.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2010-01-25 - Transferred to Assembly Regulatory Oversight and Gaming Committee [A1223 Detail]
Download: New_Jersey-2010-A1223-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman LINDA STENDER
District 22 (Middlesex, Somerset and Union)
Assemblyman JOHN S. WISNIEWSKI
District 19 (Middlesex)
Co-Sponsored by:
Assemblyman Diegnan
SYNOPSIS
Directs the State Lottery Commission to establish video lottery at not more than three horse racetracks; provides for NJ Casino Control Commission and NJ Division of Gaming Enforcement oversight.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing for the establishment of video lottery at New Jersey racetracks, amending and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1970, c.13 (C.5:9-3) shall be amended to read as follows:
3. For the purposes of this act:
a. "Commission" shall mean the State Lottery Commission established by this act.
b. "Division" shall mean the Division of the State Lottery created by this act.
c. "Lottery" or "State lottery" shall mean the lottery established and operated pursuant to this act.
d. "Director" shall mean the Director of the Division of the State Lottery.
e. "Video lottery" shall mean lottery games created pursuant to section 7 of P.L.1970, c.13 (C.5:9-7).
f. "Video lottery employee" shall mean any natural person employed by a video lottery agent whose duties in the opinion of the casino control commission predominantly involve video lottery operations.
g. "Video lottery terminal" shall mean a device through which is played a video lottery game.
(cf: P.L.1970, c.13, s.3)
2. Section 7 of P.L.1970, c.13 (C.5:9-7) is amended to read as follows:
7. The commission shall have the power, and it shall be its duty:
a. After full and thorough study of the report and recommendations of the State Lottery Planning Commission established pursuant to Joint Resolution Number 11, approved November 20, 1969, and such other pertinent information as may be available, to promulgate such rules and regulations governing the establishment and operation of a State lottery as it deems necessary and desirable in order that the mandate of the people expressed in their approval of the amendment to Article IV, Section VII, paragraph 2, of the Constitution in the general election of November, 1969, may be fully implemented, in order that such a lottery shall be initiated at the earliest feasible and practicable time, and in order that such lottery shall produce the maximum amount of net revenues for State institutions and State aid for education consonant with the dignity of the State and the general welfare of the people. Such rules and regulations may include, but shall not be limited to, the following:
(1) The type of lottery to be conducted.
(2) The price, or prices, of tickets or shares in the lottery.
(3) The number and sizes of the prizes on the winning tickets or shares.
(4) The manner of selecting the winning tickets or shares.
(5) The manner of payment of prizes to the holders of winning tickets or shares, including, subject to the approval of the State Treasurer, provision for payment of prizes not to exceed $599.00 by agents licensed hereunder out of moneys received from sales of tickets or shares.
(6) The frequency of the drawings or selections of winning tickets or shares, without limitation.
(7) Without limit as to number, the type or types of locations at which tickets or shares may be sold.
(8) The method to be used in selling tickets or shares.
(9) The licensing of agents to sell tickets or shares, provided that no person under the age of 21 shall be licensed as an agent.
(10) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public.
(11) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources among (a) the payment of prizes to the holders of winning tickets or shares, (b) the payment of costs incurred in the operation and administration of the lottery, including the expenses of the division and the costs resulting from any contract or contracts entered into for promotional, advertising or operational services or for the purchase or lease of lottery equipment and materials, (c) for the repayment of the money appropriated to the State Lottery Fund pursuant to section 23 of this act, and (d) for transfer to the general fund for State institutions and State aid for education; provided, however, that no less than 30% of the total revenues accruing from the sale of lottery tickets or shares shall be dedicated to (d), above.
(12) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.
Notwithstanding the provisions of any other law to the contrary, no rule or regulation establishing a lottery game shall be considered an "administrative rule" or "rule" pursuant to P.L.1968, c.410 (C.52:14B-1 et seq.).
b. To amend, repeal, or supplement any such rules and regulations from time to time as it deems necessary or desirable.
c. To advise and make recommendations to the director regarding the operation and administration of the lottery.
d. To report monthly to the Governor and the Legislature the total lottery revenues, prize disbursements and other expenses for the preceding month, and to make an annual report, which shall include a full and complete statement of lottery revenues, prize disbursements and other expenses, to the Governor and the Legislature, and including such recommendations for changes in this act as it deems necessary or desirable.
e. To report immediately to the Governor and the Legislature any matters which shall require immediate changes in the laws of this State in order to prevent abuses and evasions of this act or rules and regulations promulgated thereunder or to rectify undesirable conditions in connection with the administration or operation of the lottery.
f. To carry on a continuous study and investigation of the lottery throughout the State (1) for the purpose of ascertaining any defects in this act or in the rules and regulations issued thereunder by reason whereof any abuses in the administration and operation of the lottery or any evasion of this act or the rules and regulations may arise or be practiced, (2) for the purpose of formulating recommendations for changes in this act and the rules and regulations promulgated thereunder to prevent such abuses and evasions, (3) to guard against the use of this act and the rules and regulations issued thereunder as a cloak for the carrying on of organized gambling and crime, and (4) to insure that said law and rules and regulations shall be in such form and be so administered as to serve the true purposes of this act.
g. To make a continuous study and investigation of (1) the operation and the administration of similar laws which may be in effect in other states or countries, (2) any literature on the subject which from time to time may be published or available, (3) any Federal laws which may affect the operation of the lottery, and (4) the reaction of New Jersey citizens to existing and potential features of the lottery with a view to recommending or effecting changes that will tend to serve the purposes of this act.
h. Notwithstanding section 1 of P.L.1983, c.80 (C.5:9-7.1), to establish video lottery games pursuant to its powers and duties provided under subsection a. of this section. The video lottery shall be conducted at no more than three horse racetracks in this State which conducted at least 50 live race dates in calendar year 2002, and no more than 3,000 video lottery terminals shall be placed in each of the three racetracks.
i. To cooperate fully with the New Jersey Casino Control Commission and the New Jersey Division of Gaming Enforcement, which shall have the authority and responsibility for ensuring the integrity of video lottery operations.
(cf: P.L.1981, c.182, s.1)
3. Section 8 of P.L.1970, c.13 (C.5:9-8) is amended to read as follows:
8. The director shall have the power, and it shall be his duty to:
a. Supervise and administer the operation of the lottery in accordance with the provisions of this act and with the rules and regulations of the commission.
b. Subject to the approval of the commission, appoint such deputy directors as may be required to carry out the functions and duties of the division, which deputy directors shall be in the unclassified service of the civil service.
c. Subject to the approval of the commission and Title 11 of the Revised Statutes, Civil Service, appoint such professional, technical and clerical assistants and employees as may be necessary to perform the duties imposed upon the division by this act.
d. Act as secretary and executive officer of the commission.
e. In accordance with the provisions of this act and the rules and regulations of the commission, to license as agents to sell lottery tickets such persons as in his opinion will best serve the public convenience and promote the sale of tickets or shares. The director may require a bond from every licensed agent, in such amount as provided in the rules and regulations of the commission. Every licensed agent shall prominently display his license, or a copy thereof, as provided in the rules and regulations of the commission.
f. Shall confer regularly as necessary or desirable and not less than once every month with the commission on the operation and administration of the lottery; shall make available for inspection by the commission, upon request, all books, records, files, and other information and documents of the division; shall advise the commission and recommend such matters as he deems necessary and advisable to improve the operation and administration of the lottery.
g. Suspend or revoke any license issued pursuant to this act or the rules and regulations promulgated thereunder.
h. Subject to the approval of the commission and the applicable laws relating to public contracts, to act on behalf of the commission as using agency with respect to purchases made by the Division of Purchase and Property of goods and services required in the operation of the lottery.
i. To certify monthly to the State Treasurer and the commission a full and complete statement of lottery revenues, prize disbursements and other expenses for the preceding month.
j. To cooperate fully with the New Jersey Casino Control Commission and the New Jersey Division of Gaming Enforcement, which shall have the authority and responsibility for ensuring the integrity of video lottery operations.
(cf: P.L.1983, c.60, s.2)
4. Section 12 of P.L.1970, c.13 (C.5:9-12) is amended to read as follows:
12. Notwithstanding any other provision of law, any person licensed as provided in this act is hereby authorized and empowered to act as a lottery sales agent, provided that no person may be employed as a video lottery employee unless that person is the holder of a valid video lottery employee license issued by the New Jersey Casino Control Commission.
(cf: P.L.1970, c.13, s.12)
5. (New section) "Video lottery" - Lottery games established by the State Lottery Commission pursuant to subsection h. of section 7 of P.L.1970, c.13 (C.5:9-7).
6. (New section) "Video lottery employee" - Any natural person employed by a video lottery agent whose duties in the opinion of the commission predominantly involve video lottery operations.
7. (New section) "Video lottery facility" - That portion of a horse racetrack at which video lottery is authorized to be conducted pursuant to section 7 of P.L.1970, c.13 (C.5:9-7).
8. (New section) "Video lottery terminal" - A device through which is played a video lottery game.
9. Section 63 of P.L.1977, c.110 (C.5:12-63) is amended to read as follows:
63. Duties of the Commission. The Casino Control Commission shall have general responsibility for the implementation of this act, as hereinafter provided, including, without limitation, the responsibility:
a. To hear and decide promptly and in reasonable order all license, registration, certificate, and permit applications and causes affecting the granting, suspension, revocation, or renewal thereof;
b. To conduct all hearings pertaining to civil violations of this act or regulations promulgated hereunder;
c. To promulgate such regulations as in its judgment may be necessary to fulfill the policies of this act;
d. To collect all license and registration fees and taxes imposed by this act and the regulations issued pursuant hereto;
e. To levy and collect penalties for the violation of provisions of this act and the regulations promulgated hereunder;
f. To be present through its inspectors and agents at all times during the operation of any casino or simulcasting facility for the purpose of certifying the revenue thereof, receiving complaints from the public relating to the conduct of gaming and simulcast wagering operations, examining records of revenues and procedures, and conducting periodic reviews of operations and facilities for the purpose of evaluating current or suggested provisions of P.L.1977, c.110 (C.5:12-1 et seq.) and the regulations promulgated thereunder;
g. To refer to the division for investigation and prosecution any evidence of a violation of P.L.1977, c.110 (C.5:12-1 et seq.) or the regulations promulgated thereunder;
h. To review and rule upon any complaint by a casino licensee regarding any investigative procedures of the division which are unnecessarily disruptive of casino or simulcasting facility operations. The need to inspect and investigate shall be presumed at all times. The disruption of a licensee's operations shall be proved by clear and convincing evidence, which evidence shall establish that: (1) the procedures had no reasonable law enforcement purpose, and (2) the procedures were so disruptive as to inhibit unreasonably casino or simulcasting facility operations; and
i. To ensure that there is no duplication of duties and responsibilities between it and the division and between it and the State Lottery Commission.
j. To regulate video lottery operations in a manner substantially similar to the commission's authority to regulate casino gaming and consistent with this act, including but not limited to: ensuring the integrity of video lottery, the licensing of video lottery employees, and the certification of video lottery revenues to the State Lottery Commission.
(cf: P.L.1995, c.18, s.14)
10. Section 70 of P.L.1977, c.110 (C.5:12-70) is amended to read as follows:
70. Required Regulations. The commission shall, without limitation on the powers conferred in the preceding section, include within its regulations the following specific provisions in accordance with the provisions of this act:
a. Prescribing the methods and forms of application which any applicant shall follow and complete prior to consideration of his application by the commission;
b. Prescribing the methods, procedures and form for delivery of information concerning any person's family, habits, character, associates, criminal record, business activities and financial affairs;
c. Prescribing procedures for the fingerprinting of an applicant, employee of a licensee, or registrant, or other methods of identification which may be necessary in the judgment of the commission to accomplish effective enforcement of restrictions on access to the casino floor, the simulcasting facility, and other restricted areas of the casino hotel complex;
d. Prescribing the manner and procedure of all hearings conducted by the commission or any hearing examiner, including special rules of evidence applicable thereto and notices thereof;
e. Prescribing the manner and method of collection of payments of taxes, fees, and penalties;
f. Defining and limiting the areas of operation, the rules of authorized games, odds, and devices permitted, and the method of operation of such games and devices;
g. Regulating the practice and procedures for negotiable transactions involving patrons, including limitations on the circumstances and amounts of such transactions, and the establishment of forms and procedures for negotiable instrument transactions, redemptions, and consolidations;
h. Prescribing grounds and procedures for the revocation or suspension of operating certificates and licenses;
i. Governing the manufacture, distribution, sale, and servicing of gaming devices and equipment;
j. Prescribing for gaming operations the procedures, forms and methods of management controls, including employee and supervisory tables of organization and responsibility, and minimum security standards, including security personnel structure, alarm and other electrical or visual security measures; provided, however, that the commission shall grant an applicant for a casino license or a casino licensee broad discretion concerning the organization and responsibilities of management personnel who are not directly involved in the supervision of gaming or simulcast wagering operations;
k. Prescribing the qualifications of, and the conditions pursuant to which, engineers, accountants, and others shall be permitted to practice before the commission or to submit materials on behalf of any applicant or licensee; provided, however, that no member of the Legislature, nor any firm with which said member is associated, shall be permitted to appear or practice or act in any capacity whatsoever before the commission or division regarding any matter whatsoever, nor shall any member of the family of the Governor or of a member of the Legislature be permitted to so practice or appear in any capacity whatsoever before the commission or division regarding any matter whatsoever;
l. Prescribing minimum procedures for the exercise of effective control over the internal fiscal affairs of a licensee, including provisions for the safeguarding of assets and revenues, the recording of cash and evidence of indebtedness, and the maintenance of reliable records, accounts, and reports of transactions, operations and events, including reports to the commission;
m. Providing for a minimum uniform standard of accountancy methods, procedures and forms; a uniform code of accounts and accounting classifications; and such other standard operating procedures, including those controls listed in section 99a. hereof, as may be necessary to assure consistency, comparability, and effective disclosure of all financial information, including calculations of percentages of profit by games, tables, gaming devices and slot machines;
n. Requiring quarterly financial reports and the form thereof, and an annual audit prepared by a certified public accountant licensed to do business in this State, attesting to the financial condition of a licensee and disclosing whether the accounts, records and control procedures examined are maintained by the licensee as required by this act and the regulations promulgated hereunder;
o. Governing the gaming-related advertising of casino licensees, their employees and agents, with the view toward assuring that such advertisements are in no way deceptive; provided, however, that such regulations shall require the words "Bet with your head, not over it," or some comparable language approved by the commission, to appear on all billboards, signs, and other on-site advertising of a casino operation and shall require the words "If you or someone you know has a gambling problem and wants help, call 1-800 GAMBLER," or some comparable language approved by the commission, which language shall include the words "gambling problem" and "call 1-800 GAMBLER," to appear legibly on all print, billboard, and sign advertising of a casino operation; and
p. (Deleted by amendment, P.L.1991, c.182).
q. Concerning the distribution and consumption of alcoholic beverages on the premises of the licensee, which regulations shall be insofar as possible consistent with Title 33 of the Revised Statutes, and shall deviate only insofar as necessary because of the unique character of the hotel casino premises and operations;
r. (Deleted by amendment, P.L.1991, c.182).
s. Concerning the oversight of video lottery operations in a manner substantially similar to the commission's authority to regulate casino gaming and consistent with this act, including but not limited to: ensuring the integrity of video lottery, the licensing of video lottery employees, and the certification of video lottery revenues to the State Lottery Commission.
(cf: P.L.2002, c.65, s.11)
11. Section 76 of P.L.1977, c.110 (C.5:12-76) is amended to read as follows:
76. General Duties and Powers.
a. The Division of Gaming Enforcement shall:
(1) promptly and in reasonable order investigate all applications, enforce the provisions of this act and any regulations promulgated hereunder, and prosecute before the commission all proceedings for violations of this act or any regulations promulgated hereunder;
(2) provide the commission with all information necessary for all action under Article 6 of this act and for all proceedings involving enforcement of the provisions of this act or any regulations promulgated hereunder; and
(3) ensure that there is no duplication of duties and responsibilities between it and the commission or between it and the State Lottery Commission.
b. The division shall:
(1) Investigate the qualifications of each applicant before any license, certificate, or permit is issued pursuant to the provisions of this act;
(2) Investigate the circumstances surrounding any act or transaction for which commission approval is required;
(3) Investigate violations of this act and regulations promulgated hereunder;
(4) Initiate, prosecute and defend such proceedings before the commission, or appeals therefrom, as the division may deem appropriate;
(5) Provide assistance upon request by the commission in the consideration and promulgation of rules and regulations;
(6) Conduct continuing reviews of casino operations and video lottery operations through on-site observation and other reasonable means to assure compliance with this act and regulations promulgated hereunder, subject to subsection h. of section 63 of this act;
(7) Receive and take appropriate action on any referral from the commission relating to any evidence of a violation of P.L.1977, c.110 (C.5:12-1 et seq.) or the regulations promulgated thereunder;
(8) Exchange fingerprint data with, and receive criminal history record information from, the Federal Bureau of Investigation for use in considering applicants for any license or registration issued pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.);
(9) Conduct audits of casino operations and video lottery operations at such times, under such circumstances, and to such extent as the director shall determine, including reviews of accounting, administrative and financial records, and management control systems, procedures and records utilized by a casino licensee;
(10) Be entitled to request and receive information, materials and any other data from any licensee or registrant, or applicant for a license or registration under this act, or any video lottery agent; and (11) Report to the Attorney General recommendations that promote more efficient operations of the division.
(cf: P.L.1995, c.18, s.20)
12. Section 79 of P.L.1977, c.110 (C.5:12-79) is amended to read as follows:
79. a. The division and its employees and agents, upon approval of the director, shall have the authority, without notice and without warrant:
(1) To inspect and examine all premises wherein casino gaming or casino simulcasting, as defined in section 2 of the "Casino Simulcasting Act," P.L.1992, c.19 (C.5:12-192), or video lottery, is conducted; or gaming devices or equipment are manufactured, sold, distributed, or serviced; or wherein any records of such activities are prepared or maintained;
(2) To inspect all equipment and supplies in, about, upon or around such premises;
(3) To seize summarily and remove from such premises and impound any such equipment or supplies for the purposes of examination and inspection;
(4) To inspect, examine and audit all books, records, and documents pertaining to a casino licensee's or video lottery agent's operation;
(5) To seize, impound or assume physical control of any book, record, ledger, game, device, cash box and its contents, counting room or its equipment, or casino or video lottery operations; and
(6) To inspect the person, and personal effects present in a casino facility licensed under this act or in a video lottery facility, of any holder of a license or registration issued pursuant to this act while that person is present in a licensed casino facility or video lottery facility.
b. The provisions of subsection a. of this section shall in no way be deemed to limit warrantless inspections except in accordance with constitutional requirements.
c. To effectuate further the purposes of this act, the division and its employees and agents may obtain administrative warrants for the inspection and seizure of any property possessed, controlled, bailed or otherwise held by any applicant, licensee, registrant, intermediary company, [or] holding company or video lottery agent.
d. Issuance and execution of warrants for administrative inspection shall be in accordance with the following:
(1) Any judge of a court having jurisdiction in the municipality where the inspection or seizure is to be conducted may, upon proper oath or affirmation showing probable cause, issue warrants for the purpose of conducting administrative inspections authorized by this act or regulations thereunder and seizures of property appropriate to such inspections. For the purposes of this section, "probable cause" means a valid public interest in the effective enforcement of the act or regulations sufficient to justify administrative inspection of the area, premises, building or conveyance in the circumstances specified in the application for the warrant.
(2) A warrant shall issue only upon an affidavit of a person duly designated and having knowledge of the facts alleged, sworn to before the judge and establishing the grounds for issuing the warrant. If the judge is satisfied that grounds for the application exist or that there is probable cause to believe they exist, he shall issue a warrant identifying the area, premises, building, or conveyance to be inspected; the purpose of such inspection; and, where appropriate, the type of property to be inspected, if any. The warrant shall identify the item or types of property to be seized, if any. The warrant shall be directed to a person authorized to execute it. The warrant shall state the grounds for its issuance and the name of the person or persons whose affidavit has been taken in support thereof. It shall command the person to whom it is directed to inspect the area, premises, building, or conveyance identified for the purpose specified, and where appropriate, shall direct the seizure of the property specified. The warrant shall direct that it be served during normal business hours of the licensee. It shall designate the judge to whom it shall be returned.
(3) A warrant issued pursuant to this section must be executed and returned within 10 days of its date. If property is seized pursuant to a warrant, the person executing the warrant shall give to the person from whom or from whose premises the property was taken a copy of the warrant and a receipt for the property taken or shall leave the copy and receipt at the place from which the property was taken. The return of the warrant shall be made promptly and shall be accompanied by a written inventory of any property taken. The inventory shall be made in the presence of the person executing the warrant and of the person from whose possession or premises the property was taken, if they are present, or in the presence of at least one credible person other than the person executing the warrant. The clerk of the court, upon request, shall deliver a copy of the inventory to the person from whom or from whose premises the property was taken and to the applicant for the warrant.
(4) The judge who has issued a warrant under this section shall attach to the warrant a copy of the return and all papers filed in connection therewith and shall cause them to be filed with the court which issued such warrant.
e. The division is authorized to make administrative inspections to check for compliance by any applicant, licensee, registrant, intermediary company [or], holding company or video lottery agent with the provisions of this act or regulations promulgated thereunder, and to investigate any violations thereof.
f. This section shall not be construed to prevent entries and administrative inspections, including seizures of property, without a warrant:
(1) With the consent of the owner, operator or agent in charge of the controlled premises;
(2) In situations presenting imminent danger to health or safety;
(3) In situations involving inspection of conveyances where there is reasonable cause to believe that the mobility of the conveyance makes it impractical to obtain a warrant or in any other exceptional or emergency circumstance where time or opportunity to apply for a warrant is lacking;
(4) In accordance with the provisions of this act; or
(5) In all other situations where a warrant is not constitutionally required.
(cf: P.L.1992, c.19, s.29)
13. (New section) a. The commission shall establish by regulation an annual license fee to be imposed on each video lottery terminal maintained for use or in use by any video lottery agent in this State. The amount of the fee shall be based upon the cost of the commission and the division in maintaining control and regulatory activities regarding video lottery.
b. The license fee imposed by this section shall be imposed as of the first day of July of each year with regard to all video lottery terminals maintained or in use on that date, and on a pro rata basis thereafter during the year with regard to all video lottery terminals maintained for use or placed in use after July 1.
14. (New section) The commission shall establish by regulation license fees for the investigation and consideration of applications for the issuance and renewal of video lottery employee licenses.
15. (New section) a. There is hereby created and established in the Department of the Treasury a separate special account to be known as the "Video Lottery Control Fund" into which shall be deposited all license fee revenues imposed by sections 13 and 14 of this act.
b. Money in the Video Lottery Control Fund shall be appropriated exclusively for the expenses of the commission and division for the control and regulation of video lottery.
16. (New section) Commencing in State fiscal year 2005, there shall be appropriated annually from the General Fund to the Casino Revenue Fund, established pursuant to section 145 of P.L.1977, c.110 (C.5:12-145), an amount that is necessary to annually provide the funds to preserve the amount of total resources of the Casino Revenue Fund, as certified by the Governor upon enactment of the annual appropriations act for the prior State fiscal year.
17. (New section) a. Commencing in State fiscal year 2005, there shall be appropriated annually from the General Fund to the New Jersey Racing Commission an amount equivalent to 10% of net proceeds resulting from wagering on video lottery terminals at horse racetracks in the previous fiscal year, which shall be allocated by the commission to the benefit of the horse racing industry.
b. The New Jersey Racing Commission shall establish and administer a separate fund into which shall be deposited the sums allocated to the benefit of the horse racing industry pursuant to subsection a. of this section. Money deposited into the fund shall be disbursed monthly by the New Jersey Racing Commission and used as provided in subsections c. and d. of this section.
c. Of the proceeds allocated to the benefit of the horse racing industry, 92% shall be distributed as follows: 50% to permit holders conducting thoroughbred racing pursuant to P.L.1940, c.17 (C.5:5-22 et seq.) and 50% to permit holders conducting standardbred racing pursuant to P.L.1940, c.17 (C.5:5-22 et seq.).
Of the allocations made pursuant to this subsection to permit holders conducting thoroughbred racing, specific distributions shall be made to the overnight thoroughbred purse account of each permit holder and for programs designed to aid the thoroughbred horsemen and the New Jersey Thoroughbred Horseman's Association. Expenditures for programs designed to aid the thoroughbred horsemen and the New Jersey Thoroughbred Horseman's Association shall not exceed 2.9% of such allocations. Distribution among thoroughbred permit holders shall be based on the following formula: total overnight thoroughbred purse distribution for each permit holder in the prior calendar year divided by the total overnight thoroughbred purse distribution of all permit holders in the prior calendar year.
Of the allocations made pursuant to this subsection to permit holders conducting standardbred racing, specific distributions shall be made to the overnight standardbred purse account of each permit holder and for programs designed to aid the standardbred horsemen and the Standardbred Breeders' and Owners' Association of New Jersey. Expenditures for programs designed to aid the standardbred horsemen and the Standardbred Breeders' and Owners' Association of New Jersey shall not exceed 3.5% of such allocations. Distribution among standardbred permit holders shall be based on the following formula: total overnight standardbred purse distribution for each permit holder in the prior calendar year divided by the total overnight standardbred purse distribution of all permit holders in the prior calendar year.
d. Of the proceeds allocated to benefit the horse racing industry, 8% shall be distributed as follows: 50% to thoroughbred funds and 50% to standardbred funds.
Of the amounts distributed to thoroughbred funds pursuant to this subsection, the following distributions shall apply: 94% to the special trust account created pursuant to section 46b.(1)(e) of P.L.1940, c.17 (C.5:5-66); 3% to the Backstretch Benevolency Fund established pursuant to section 1 of P.L.1993, c.15 (C.5:5-44.8); and 3% to the New Jersey Breeding and Development Account established pursuant to section 5 of P.L.1967, c.40 (C.5:5-88).
Of the amount distributed to standardbred funds pursuant to this subsection, the following distributions shall apply: 75% to the Sire Stakes Program established pursuant to section 1 of P.L.1971, c.85 (C.5:5-91); 8% to the special trust account established pursuant to section 46a.(2) of P.L.1940, c.17 (C.5:5-66) for the purposes of subparagraph (c) of that section; 3.5% to the Backstretch Benevolency Fund established pursuant to section 1 of P.L.1993, c.15 (C.5:544.8); 10% to the Standardbred Breeders' and Owners' Association for the administration of a health benefits program; and 3.5% to the New Jersey Breeding and Development Account established pursuant to section 5 of P.L.1967, c.40 (C.5:5-88).
18. This act shall take effect immediately.
STATEMENT
This bill directs the State Lottery Commission to create video lottery games, to be conducted at no more than three horse racetracks in New Jersey which conducted at least 50 live race dates in 2002, with no more than 3,000 video lottery terminals to be placed in each racetrack. The three horse racetracks that would qualify for video lottery terminals are Meadowlands Racetrack, Monmouth Park and Freehold Raceway.
The bill provides that the State Lottery Commission would operate the video lottery as it does other lotteries, by licensing agents (the racetracks) to sell rights to participate in the games. Because video lottery can be substantially similar to slot machine gaming, the bill directs the New Jersey Casino Control Commission and the New Jersey Division of Gaming Enforcement to regulate the operation of video lottery.
Pursuant to the New Jersey Constitution, revenues derived from video lottery would be dedicated to State institutions and State aid for education. The bill provides that beginning in State fiscal year 2005, there will be an annual appropriation from the General Fund to the Casino Revenue Fund, if needed, in order to maintain the total resources of the Casino Revenue Fund as of the previous fiscal year.
Finally, the bill provides that beginning in State fiscal year 2005, there will be an annual appropriation from the General Fund to the New Jersey Racing Commission in an amount equal to 10% of the net proceeds resulting from wagering on video lottery terminals, to be dedicated to the benefit of the horse racing industry.
