Bill Text: NJ A509 | 2010-2011 | Regular Session | Introduced
Bill Title: Addresses qualifications and compensation of casino conservators and persons providing services under conservatorship.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2010-01-25 - Transferred to Assembly Regulatory Oversight and Gaming Committee [A509 Detail]
Download: New_Jersey-2010-A509-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman VINCENT J. POLISTINA
District 2 (Atlantic)
Assemblyman JOHN F. AMODEO
District 2 (Atlantic)
SYNOPSIS
Addresses qualifications and compensation of casino conservators and persons providing services under conservatorship.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning casino conservators and persons providing services under casino conservatorships and amending P.L.1978, c.7.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 31 of P.L.1978, c.7 (C.5:12-130.1) is amended to read as follows:
Institution of Conservatorship and Appointment of Conservators.
a. Notwithstanding any other provision of the Casino Control Act, (1) upon the revocation of a casino license, (2) upon, in the discretion of the commission, the suspension of a casino license or operation certificate for a period of in excess of 120 days, or (3) upon the failure or refusal to renew a casino license, and notwithstanding the pendency of any appeal therefrom, the commission may appoint and constitute a conservator to, among other things, take over and into his possession and control all the property and business of the licensee relating to the casino and the approved hotel; provided, however, that this subsection shall not apply in any instance in which the casino in the casino hotel facility for which the casino license had been issued has not been, in fact, in operation and open to the public[, and]; provided further that no person shall be appointed as conservator unless the commission is satisfied that he is individually qualified according to the standard applicable to casino key employees, [except that casino experience shall not be necessary for qualification] and provided further that no person who is serving as a trustee pursuant to P.L.1987, c.409 (C.5:12-95.12 et seq.) shall be appointed as, or serve as, a conservator.
b. (Deleted by amendment, P.L.1987, c.410).
c. The commission may proceed in a conservatorship action in a summary manner or otherwise and shall have the power to appoint and remove one or more conservators and to enjoin the former or suspended licensee from exercising any of its privileges and franchises, from collecting or receiving any debts and from paying out, selling, assigning or transferring any of its property to other than a conservator, except as the commission may otherwise order. The commission shall have such further powers as shall be appropriate for the fulfillment of the purposes of this act.
d. Every conservator shall,
before assuming his duties, execute and file a bond for the faithful
performance of his duties payable to the commission in the office of the
commission with such surety or sureties and in such form as the commission
shall approve and in
such amount as the commission shall prescribe.
e. When more than one conservator is appointed pursuant to this section, the provisions of this article applicable to one conservator shall be applicable to all; the debts and property of the former or suspended licensee may be collected and received by any of them; and the powers and rights conferred upon them shall be exercised by a majority of them.
f. The commission shall require that the former or suspended licensee purchase liability insurance, in an amount determined by the commission, to protect a conservator from liability for any acts or omissions of the conservator occurring during the duration of the conservatorship which are reasonably related to, and within the scope of, the conservator's duties.
g. No partnership, firm or corporation in which the conservator or a member of the immediate family of the conservator has an interest, as defined in section 2 of P.L.1971, c.182 (C.52:13D-13), or which employs the conservator or a member of the immediate family, as defined in section 2 of P.L.1971, c.182 (C.52:13D-13), of the conservator, shall be appointed by the Casino Control Commission in any capacity relating to the conservatorship.
(cf: P.L.1991, c.182, s.54)
2. Section 33 of P.L.1978, c.7 (C.5:12-130.3) is amended to read as follows:
Compensation of Conservators and Others. In any proceeding pursuant to section 31 of P.L.1978, c.7 (C.5:12-130.1), the commission shall, upon the appointment of a conservator, establish a reasonable rate of compensation for the services, costs and expenses in the conservatorship action of the conservator. The commission shall also designate the party or parties responsible for the payment of compensation to the conservator and shall direct that the responsible party or parties guarantee payment in such manner as the commission shall deem appropriate. The rate of compensation payable to the conservator, to the attorney for the conservator, the appraiser, the auctioneer, the accountant and such other persons as the commission may appoint in connection with the conservatorship action shall be established by the commission at the time of appointment, but shall not exceed in the aggregate 2% of the total sale price of a casino. All requests for payment by the conservator and other persons appointed by the commission in connection with the conservatorship shall be subject to the approval of the commission, and the commission shall reduce any fee which it deems to be excessive. The actual dollar amount of all requests for payment shall be included in the minutes of the appropriate public meeting of the commission. Fees payable to the conservator and expenses incurred in the course of the conservatorship shall have priority for payment over all other debts or obligations of the former or suspended licensee, including debts or obligations secured by the former or suspended licensee's property.
(cf: P.L.1991, c.182, s.57)
3. This act shall take effect immediately.
STATEMENT
This bill amends current law pertaining to the qualifications and compensation of casino conservators and persons providing services under conservatorships.
Current law provides that casino experience is not necessary in order to serve as a conservator. The bill deletes this provision, and adds a provision that no person who is serving as a trustee pursuant to N.J.S.A.5:12-95.12 et seq. will be appointed as, or serve as, a conservator. The bill also provides that no partnership, firm or corporation in which the conservator or a member of the immediate family of the conservator has an interest, or which employs the conservator or a member of the immediate family of the conservator, will be appointed by the Casino Control Commission in any capacity relating to the conservatorship.
The bill provides that compensation payable to a conservator, to the attorney for the conservator, the appraiser, the auctioneer, the accountant and such other persons as the commission may appoint in connection with the conservatorship action will be established by the commission at the time of appointment, but will not exceed in the aggregate 2% of the total sale price of a casino. The bill also requires that the actual dollar amount of all requests for payment will be included in the minutes of the appropriate public meeting of the commission.
