Bill Text: NJ A3242 | 2016-2017 | Regular Session | Introduced
Bill Title: Permits State Lottery Commission to authorize video lottery terminals at Freehold Raceway, upon voter approval; dedicates one-third net proceeds to General Fund, one-third to State education aid, and one-third to horse racing industry.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-02-22 - Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee [A3242 Detail]
Download: New_Jersey-2016-A3242-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Permits State Lottery Commission to authorize video lottery terminals at Freehold Raceway, upon voter approval; dedicates one-third net proceeds to General Fund, one-third to State education aid, and one-third to horse racing industry.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for lottery games using video lottery terminals at Freehold Raceway, subject to voter approval, amending and supplementing various parts of the statutory law, and repealing P.L.1983, c.80.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. The State Lottery Commission, established pursuant to section 4 of P.L.1970, c.13 (C.5:9-4) may authorize lottery games using video lottery terminals at Freehold Raceway. The commission shall enter into an agreement with the permitholder for the facility or facilities necessary or desirable to conduct games using video lottery terminals authorized under this section. Revenue generated from the establishment of video lottery terminals shall be deposited into the Video Lottery Terminal Fund, established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Prior to the establishment of video lottery terminals pursuant to subsection a. of this section, the State Lottery Commission shall conduct a study to determine the optimal number of video lottery terminals to be established, any capital costs associated with the establishment of the optimal number of video lottery terminals, and revenue projections for the video lottery terminals.
2. (New section) a. There is hereby created in the Department of the Treasury a non-lapsing revolving fund to be known as the "Video Lottery Terminal Fund," to be held separate and apart from all other funds of the State, and to be deposited in such depositories as the State Treasurer may select. Such fund shall consist of all amounts received from the establishment of video lottery terminals authorized pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). All earnings received from the investment or deposit of moneys in the fund shall be credited to the fund.
b. The moneys in the Video Lottery Terminal Fund shall be appropriated only:
(1) for the payment of prizes to the holders of winning video lottery tickets or shares;
(2) for the expenses of the division in its operation of games using video lottery terminals;
(3) for payment to the permitholder for its administrative expenses relating to the video lottery terminal project; and
(4) for other necessary administrative expenses associated with the operation of video lottery terminals.
c. The amounts in the Video Lottery Terminal Fund remaining after the payment of winnings and other expenses pursuant to subsection b. of this section, shall be distributed as follows: (1) one-third shall be transferred to the "Horse Racing Special Fund," for the horse racing industry as provided by section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); (2) one-third shall be transferred to the General Fund for general State purposes; and (3) one-third shall be dedicated to the funding of State aid for education.
d. On or about March 15 and September 15 of each year, the State Treasurer shall publish in at least 10 newspapers circulating generally in the State a report accounting for the total revenues received in the Video Lottery Terminal Fund and the specific amounts of money appropriated therefrom for specific expenditures during the preceding six months ending December 31 and June 30.
3. (New section) a. The New Jersey Racing Commission shall establish and administer a separate fund to be known as the "Horse Racing Special Fund," into which shall be transferred monthly from the Video Lottery Terminal Fund established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) the amounts from the establishment of video lottery terminals dedicated to it for allocation by the commission to the benefit of the horse racing industry. Money deposited into the fund shall be disbursed monthly by the New Jersey Racing Commission and used as provided in subsection b. of this section.
b. The proceeds allocated to the benefit of the horse racing industry shall be distributed as follows: 83.4 percent to permit holders conducting thoroughbred racing pursuant to P.L.1940, c.17 (C.5:5-22 et seq.) for the purpose of supplementing purses, 16.6 percent for thoroughbred breeding and development.
4. Section 2 of P.L.1970, c.13 (C.5:9-2) is amended to read as follows:
2. This act is enacted to implement the amendment of Article IV, Section VII, paragraph 2, of the Constitution of New Jersey, approved by the people in the general election of November, 1969, and to carry out the mandate thereof by establishing a lottery to be operated by the State, the entire net proceeds of which are to be used for State institutions and State aid for education, and to implement P.L. , c. (C. ) (pending before the Legislature as this bill), establishing video lottery terminals.
(cf: P.L.1970, c. 13, s. 2)
5. Section 3 of P.L.1970, c.13 (C.5:9-3) is 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 terminals" shall mean the type of lottery games authorized to be operated at a racetrack facility that is part of Freehold Raceway, pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.1970, c.13, s.3)
6. 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.
The commission shall also promulgate rules and regulations governing the establishment and operation of video lottery terminals, authorized pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
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, except in the case of video lottery terminals, 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 or operators 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 or operators necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public.
(11) [The] Except in the case of the video lottery terminals established pursuant to section 1 of P.L. ,c. (C. ) (pending before the Legislature as this bill), 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) In the case of the video lottery terminals established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), 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, and (c) for transfer into the Video Lottery Terminal Fund, established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) the revenues from the video lottery terminals for such purposes as may be provided by law.
(13) 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.
(cf: P.L.1981, c.182, s.1)
7. 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] the director's 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 or, in the case of video lottery terminals, operators to sell lottery tickets such persons as in [his] the director's 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 or operator, in such amount as provided in the rules and regulations of the commission. Every licensed agent or operator shall prominently display [his] the agent or operator's 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.
(cf: P.L.1983, c.60, s.2)
8. Section 14 of P.L.1970, c.13 (C.5:9-14) is amended to read as follows:
14. No person shall sell a ticket or share at a price greater than that fixed by rule or regulation of the commission. No person other than a licensed lottery sales agent or operator shall sell lottery tickets or shares, except that nothing in this section shall be construed to prevent any person from giving lottery tickets or shares to another as a gift.
Any person convicted of violating this section shall be guilty of a misdemeanor.
(cf: P.L.1970, c.13, s.14)
9. Section 15 of P.L.1970, c.13 (C.5:9-15) is amended to read as follows:
15. a. No ticket or share shall be sold to any person under the age of 18, but this shall not be deemed to prohibit the purchase of a ticket or share for the purpose of making a gift by a person 18 years of age or older to a person less than that age. Any licensee who knowingly sells or offers to sell a lottery ticket or share to any person under the age of 18 is a disorderly person.
b. Notwithstanding the provisions of subsection a. of this section, any person under the age of 21 shall be prohibited from playing lottery games using video lottery terminals authorized pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.1970, c.13, s.15)
10. Section 17 of P.L.1970, c.13 (C.5:9-17) is amended to read as follows:
17. Unclaimed prize money for the prize on a winning ticket or share shall be retained by the director for the person entitled thereto for 1 year after the drawing in which the prize was won. If no claim is made for said money within such year, the prize money shall be allocated to State institutions and State aid for education in the same manner as lottery revenues are allocated for such purposes under this act , except that if the prize money was won on a video lottery terminal authorized pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the prize money shall be allocated to the Video Lottery Terminal Fund established pursuant to section 2 of that act.
(cf: P.L.1970, c. 13, s. 17)
11. Section 21 of P.L.1970, c.13 (C.5:9-21) is amended to read as follows:
21. There is hereby created and established in the Department of the Treasury a separate fund, to be known as the "State Lottery Fund," to be deposited in such depositories as the State Treasurer may select. Such fund shall consist of all revenues received from the sale of lottery tickets or shares, except video lottery terminals, established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), and all other moneys credited or transferred thereto from any other fund or source pursuant to law.
(cf: P.L.1970, c.13, s.21)
12. Section 76 of P.L.1977, c.110 (C.5:12-76) is amended to read as follows:
76. General Duties and Powers.
The Division of Gaming Enforcement shall have the general responsibility for the implementation of P.L.1977, c.110 (C.5:12-1 et seq.), and to issue any approvals necessary as hereinafter provided, including without limitation, the responsibility to:
a. Enforce the provisions of this act and any regulations promulgated hereunder;
b. Promptly and in reasonable order investigate all applications for licensure and all registrations under this act;
c. Issue reports and recommendations to the commission with respect to all entities and natural persons required to qualify for a casino license, an application for interim casino authorization or a petition for a statement of compliance;
d. Promptly and in reasonable order review and approve or deny all casino service industry enterprise license applications;
e. Accept and maintain registrations for all casino employee and vendor registrants;
f. Revoke any registration or casino service industry enterprise license upon findings pursuant to the disqualification criteria in section 86 of P.L.1977, c.110 (C.5:12-86);
g. Promulgate such regulations as may be necessary to fulfill the policies of this act;
h. Initiate and decide any actions against licensees or registrants for violation of this act or regulations promulgated hereunder, and impose sanctions and levy and collect penalties upon finding violations;
i. Provide the commission with all information that the director deems necessary for any action to be taken by the commission under Article 6 of P.L.1977, c.110 (C.5:12-80 through 95);
j. Initiate, prosecute and defend appeals, as the director may deem appropriate;
k. Conduct continuing reviews of casino 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 P.L.1977, c.110 (C.5:12-63);
l. 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;
m. 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.);
n. Conduct audits of casino 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;
o. Request and receive information, materials and any other data from any licensee or registrant, or applicant for a license or registration under this act; [and]
p. Report to the Attorney General recommendations that promote more efficient operations of the division.
q. Receive complaints from the public relating to the conduct of gaming and simulcasting operations, examine records and procedures, and conduct 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, as the director deems appropriate;
r. Certify the revenue of any casino or simulcasting facility in such manner as the director deems appropriate;
s. Create and maintain a list of all excluded patrons;
t. Initiate and decide all actions for involuntary exclusion of patrons pursuant to section 71 of P.L.1977, c.110 (C.5:12-71);
u. Issue an operation certificate upon the commission's grant of an application for a casino license;
v. Recommend that the commission issue or revoke statements of compliance pursuant to section 81 of P.L.1977, c.110 (C.5:12-81) and the regulations promulgated thereunder;
w. Accept impact statements submitted by an applicant for a casino license pursuant to section 84 of P.L.1977, c.110 (C.5:12-84);
x. Utilize, in its discretion, the services of a private entity for the purpose of expediting criminal history record background checks required to be performed by the division pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), provided that the private entity has been awarded a contract in accordance with the public contracting laws of this State; [and]
y. License, regulate, investigate and take any other action regarding all aspects of authorized games conducted through the Internet; and
z. The division shall:
(1) Investigate the qualifications of each applicant to operate video lottery terminals before any license is issued by the State Lottery Commission pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) Investigate violations of P.L.1970, c.13 (C.5:9-1 et seq.) or the regulations promulgated thereunder relating to video lottery terminals;
(3) Provide assistance upon request by the State Lottery Commission in the consideration and promulgation of rules and regulations relating to video lottery terminals;
(4) Conduct continuing reviews of video lottery terminal operations through on-site observation and other reasonable means to assure compliance with P.L.1970, c.13 (C.5:9-1 et seq.) and the regulations promulgated thereunder;
(5) Receive and take appropriate action on any referral from the State Lottery Commission relating to any evidence of a violation of P.L.1970, c.13 (C.5:9-1 et seq.) or the regulations promulgated thereunder relating to video lottery terminals;
(6) Exchange fingerprint data with, and receive criminal history record information from, the Federal Bureau of Investigation for use in considering applicants for any license relating to video lottery terminals issued pursuant to the provisions of P.L.1970, c.13 (C.5:9-1 et seq.);
(7) Conduct audits of video lottery terminal 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 video lottery terminal licensee; and
(8) Be entitled to request and receive information, materials and any other data from any video lottery terminal licensee, or applicant for a license, under P.L.1970, c.13 (C.5:9-1 et seq.).
(cf: P.L.2013, c.27, s.10)
13. Section 78 of P.L.1977, c.110 (C.5:12-78) is amended to read as follows:
78. Each licensee or registrant or video lottery terminal licensee, or applicant for a license or registration under this act , or applicant for a video lottery terminal license under P.L.1970, c.13 (C.5:9-1 et seq.), shall cooperate with the division in the performance of its duties.
(cf: P.L.1977, c.110, s.78)
14. 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 lottery games using video lottery terminals, authorized pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), 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 or video lottery terminal licensee'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 a video lottery terminal facility licensed under P.L.1970, c.13 (C.5:9-1 et seq.), of any holder of a license or registration issued pursuant to this act or holder of a video lottery terminal license issued under P.L.1970, c.13 (C.5:9-1 et seq.) while that person is present in a licensed casino 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, video lottery terminal licensee, registrant, intermediary company, or holding company.
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, video lottery terminal licensee, registrant, intermediary company or holding company with the provisions of this act or regulations promulgated thereunder, or P.L.1970, c.13 (C.5:9-1 et seq.) or regulations promulgated thereunder relating to video lottery terminals, 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)
15. Section 1 of P.L.1999, c.352 (C.5:12-129.1) is amended to read as follows:
1. The holder of any license issued under P.L.1977, c.110 (C.5:12-1 et seq.), or the holder of any video lottery terminal license issued under P.L.1970, c.13 (C.5:9-1 et seq.), or any person acting on behalf thereof, shall file a report of any suspicious transaction with the Director of the Division of Gaming Enforcement. For the purposes of P.L.1999, c.352 (C.5:12-129.1 et al.), "suspicious transaction" means the acceptance of cash, the redeeming of chips or markers or other cash equivalents, or a payment to establish credits in an Internet gaming account involving or aggregating $5,000 if the licensee or person knows or suspects that the transaction:
a. involves funds derived from illegal activities or is intended or conducted in order to conceal or disguise funds or assets derived from illegal activities;
b. is part of a plan to violate or evade any law or regulation or to avoid any transaction reporting requirement under the law or regulations of this State or the United States, including a plan to structure a series of transactions to avoid any transaction reporting requirement under the laws or regulations of this State or the United States; or
c. has no business or other apparent lawful purpose or is not the sort of transaction in which a person would normally be expected to engage and the licensee or person knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction.
(cf: P.L.2013, c.27, s.16)
16. (New section) As a condition of the operation of video lottery terminals at Freehold Raceway, the permitholder shall establish, develop, construct, acquire, own, operate, manage, promote, maintain, repair, reconstruct, restore, improve and otherwise effectuate, either directly or indirectly through lessees, licensees or agents, a video lottery terminal project consisting of a facility or facilities, including any real or personal property, furnishings and equipment, necessary or desirable to conduct lottery games using video lottery terminals as authorized and regulated by the State Lottery Commission pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), such facility or facilities to be located at Freehold Raceway. In connection therewith, the permitholder may enter into an agreement with the State Lottery Commission to effectuate the video lottery terminal project and to receive payment for its administrative expenses relating to the video lottery terminal project from the Video Lottery Terminal Fund, established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). Revenues from the video lottery terminal project authorized pursuant to this section shall be excluded from racing revenues. The permitholder shall provide for the financing or refinancing of the video lottery terminal.
17. For the purpose of complying with Article IV, Section VII, paragraph 2 of the State Constitution, this act shall be submitted to the people for their approval or rejection at the next general election to be held 70 or more days following the date of its enactment.
18. This voter referendum shall be submitted to the people in the following manner and form:
There shall be printed on each official ballot to be used at the general election, the following:
a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:
If you favor the proposition printed below make a cross (X), plus (+), or check (T) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (T) in the square opposite the word "No."
b. In every municipality the following question:
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VIDEO LOTTERY TERMINALS AT FREEHOLD RACEWAY |
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YES
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Do you approve allowing lottery games to be played at Freehold Raceway using video lottery terminals? The racetrack is located in Freeport, Monmouth County. |
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INTERPRETIVE STATEMENT |
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NO
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Approval of this question would allow the operation of video lottery terminals at Freehold Raceway. The State Lottery Commission would regulate these terminals. The revenue from these terminals will be used as follows: one-third for the benefit of the horse racing industry; one-third for the State General Fund; and one-third for State aid for education. The revenues will also be used to pay prizes to game winners and for administrative expenses. |
19. P.L.1983, c.80 (C.5:9-7.1) is repealed.
20. Sections 17 and 18 shall take effect immediately and the remainder of this act shall take effect immediately upon voter approval of this act at the general election.
STATEMENT
This bill permits the State Lottery Commission to authorize lottery games using video lottery terminals at a facility located at Freehold Raceway. The facility for the video lottery terminal project would be developed by the permitholder at Freehold Raceway. The Division of Gaming Enforcement, which has investigatory and enforcement responsibilities over casino gaming in Atlantic City, would perform similar functions over the video lottery terminal licensees and games.
Revenue generated by the video lottery terminals would be deposited into a newly created "Video Lottery Terminal Fund," to be appropriated only for the payment of prizes to the winners of video lottery games, the expenses of the division of the State Lottery, the administrative expenses of the New Jersey Sports and Exposition Authority in developing the facility for the video lottery terminals, and such other necessary administrative expenses. Of the revenue amounts remaining in the fund, one-third would be transferred for the benefit of the horse racing industry, and one-third would be transferred into the General Fund of the State for the funding of State expenses, and one-third would fund State aid for education.
The bill repeals N.J.S.A. 5:9-7.1 which currently prohibits video lottery terminals.
The bill will take effect upon approval by the voters at a referendum held at a general election.
