Bill Text: NJ A3985 | 2014-2015 | Regular Session | Introduced
Bill Title: Removes provisions of law relating to Atlantic City Alliance.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Enrolled - Dead) 2016-01-17 - Cond. Veto, Passed Both House, No Action Taken By Governor [A3985 Detail]
Download: New_Jersey-2014-A3985-Introduced.html
LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 3985
STATE OF NEW JERSEY
216th LEGISLATURE
DATED: JANUARY 5, 2015
SUMMARY
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Synopsis: |
Removes provisions of law relating to Atlantic City Alliance. |
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Type of Impact: |
Potentially foregone revenue, Casino Reinvestment Development Authority |
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Agencies Affected: |
Casino Reinvestment Development Authority (CRDA) |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Year 1 |
Year 2 |
Year 3 |
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State Revenue |
Indeterminate- See comments below |
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· The original five-year public-private partnership between the Atlantic City casino licensees and the Atlantic City Alliance (ACA) has approximately two years remaining. The ACA is due to receive $30 million per year under that partnership from the casino licensees.
· If the casino licensees cancel their agreement with the ACA, the casino licensees would be subject to a fee payable to Casino Reinvestment Development Authority (CRDA) for the same $30 million per year that they would owe to the ACA over the cancelled portion of the agreement. The bill removes the statutory language permitting CRDA to impose this fee if the partnership between the ACA and casino licensees is cancelled.
BILL DESCRIPTION
Assembly Bill No. 3985 of 2014 repeals the portions of law that require the CRDA to enter into an agreement with a not-for-profit corporation comprised of a majority of the casino licensees, which has been established and is known as the ACA, for a five-year public-private partnership. The purpose of the partnership was to establish a five-year marketing campaign to promote Atlantic City and the Atlantic City Tourism District (district) as a destination resort. The bill also repeals the portion of law which authorized the CRDA to assess a fee on casino licensees if the public-private partnership was terminated or otherwise ended.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The Office of Legislative Services finds that this bill will have an indeterminate impact on revenues of the CRDA that depends upon whether the five-year public-private partnership agreement establishing the ACA is cancelled prior to the expiration of the agreement. The agreement provides the ACA with casino contributions or assessments totaling $30 million per year for five years to promote the Atlantic City tourism district and the casinos. There are approximately two years remaining in the agreement and $60 million owed to the ACA over that period, depending on the payment schedule. The law outlining this agreement also provides that if the public-private partnership agreement is not established or cancelled at any time before the five-year term is over, the CRDA will impose a fee on the casino licensees for the amount that they would have paid to the ACA. In that case, the CRDA is then directed to use the remaining amount owed to the ACA to facilitate the development of the district, enhance the cleanliness and safety of the district, and fund the marketing efforts of the CRDA concerning tourism in the district. The bill repeals the provision of law enabling the CRDA to impose this fee, and therefore reduces the revenue potentially available to the CRDA in the event that the public-private partnership agreement forming the ACA is terminated. The agreement is currently in effect, so the bill would have no impact, but if the agreement is terminated, the bill would result in a loss of potential CRDA revenue equal to $30 million per year over the proportional amount of time remaining on the funding agreement.
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Section: |
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Analyst: |
Senior Fiscal Analyst |
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Approved: |
David J. Rosen Legislative Budget and Finance Officer |
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).
