Bill Text: NJ A2631 | 2018-2019 | Regular Session | Introduced


Bill Title: Authorizes placement of patron-operated lottery terminals at running and harness horse racetracks.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-02-01 - Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee [A2631 Detail]

Download: New_Jersey-2018-A2631-Introduced.html

ASSEMBLY, No. 2631

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED FEBRUARY 1, 2018

 


 

Sponsored by:

Assemblyman  RONALD S. DANCER

District 12 (Burlington, Middlesex, Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Authorizes placement of patron-operated lottery terminals at running and harness horse racetracks.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act authorizing the placement at running and harness horse racetracks of patron-operated lottery terminals, supplementing Title 5 of the Revised Statutes, and repealing P.L.1983, c.80.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.     The State Lottery Commission, established pursuant to section 4 of P.L.1970, c.13 (C.5:9-4), may authorize the playing of lottery games using patron-operated lottery terminals, of a type and kind to be determined by the commission, at running and harness horse racetracks in this State that conducted live racing during 2015 with up to 500 terminals at each racetrack.  The commission shall enter into an agreement with a permitholder for the facility or facilities necessary or desirable to conduct games using lottery terminals authorized under this section.  Revenue generated from the establishment of patron-operated lottery terminals shall be deposited into the Racetrack Lottery Terminal Fund, established pursuant to section 2 of P.L.     , c.       (C.        ) (pending before the Legislature as this bill).

     Prior to the establishment of lottery terminals pursuant to this section, the commission shall conduct a study to determine the optimal number of lottery terminals to be established, any capital costs associated with the establishment of the optimal number of lottery terminals, and revenue projections for the lottery terminals.

 

     2.    a.  There is created in the Department of  the Treasury a non-lapsing revolving fund to be known as the Racetrack 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 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 Racetrack Lottery Terminal Fund shall be appropriated only for the:

     (1)   payment of prizes to the holders of winning lottery tickets or shares;

     (2)   expenses of the Division of the State Lottery in its operation of games using patron-operated lottery terminals;

     (3)   other necessary administrative expenses associated with the operation of patron-operated lottery terminals; and

     (4)   for payment to participating permitholders an amount negotiated with the permitholders but which shall not be less than one-third of revenues remaining after payment of paragraphs (1) through (3) of this subsection.

     c.     The amounts in the Racetrack 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 Racetrack 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.    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 Racetrack 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 patron-operated 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 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: 41.7 percent to participating permitholders conducting thoroughbred racing pursuant to P.L.1940, c.17 (C.5:5-22 et seq.) for the purpose of supplementing purses; 41.7 percent to participating permitholders conducting standardbred racing pursuant to P.L.1940, c.17 (C.5:5-22 et seq.) for the purpose of supplementing purses; 8.3 percent for thoroughbred State bred races or incentives to run New Jersey breds in open company; and 8.3 percent for standardbred State bred races or incentives to run New Jersey breds in open company. 

     If any of the funds for permitholders cannot be distributed because there were no participating permitholders conducting thoroughbred races or no participating permitholders conducting standardbred races, those funds shall be distributed instead among participating permitholders without regard to breed.

 

     4.    In the case of patron-operated lottery terminals established pursuant to section 1 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill), the Division of the State Lottery shall apportion 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 Racetrack Lottery Terminal Fund, established pursuant to section 2 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill) the revenues from the patron-operated lottery terminals for such purposes as may be provided by law.

 

     5.    A person under the age of 21 shall be prohibited from playing lottery games using patron-operated lottery terminals authorized pursuant to section 1 of P.L.    , c.   (C.      ) (pending before the Legislature as this bill).

 

     6.    Unclaimed prize money for the prize on a winning ticket or share on a patron-operated lottery terminal authorized pursuant to section 1 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill) shall be retained by the director for the person entitled thereto for one year after the drawing in which the prize was won.  If no claim is made for that money within such year, the prize money shall be allocated to the Racetrack Lottery Terminal Fund established pursuant to section 2 of that act.

 

     7.    The Division of the State Lottery shall:

     a.     Investigate the qualifications of each applicant to operate patron-operated 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);

     b.    Investigate violations of P.L.1970, c.13 (C.5:9-1 et seq.) or the regulations promulgated thereunder relating to patron-operated lottery terminals;

     c.     Provide assistance upon request by the State Lottery Commission in the consideration and promulgation of rules and regulations relating to patron-operated lottery terminals;

     d.    Conduct continuing reviews of patron-operated 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;

     e.  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 patron-operated lottery terminals;

     f.     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 patron-operated lottery terminals issued pursuant to the provisions of P.L.1970, c.13 (C.5:9-1 et seq.);

     g.    Conduct audits of patron-operated 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 patron-operated lottery terminal licensee; and

     h.    Be entitled to request and receive information, materials and any other data from any patron-operated lottery terminal licensee, or applicant for a license, under P.L.1970, c.13 (C.5:9-1 et seq.).

 

     8.    As a condition of the operation of patron-operated lottery terminals at a racetrack, 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 patron-operated 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 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 the racetrack.  In connection therewith, the permitholder may enter into an agreement with the State Lottery Commission to effectuate the lottery terminal project and to receive payment for its administrative expenses relating to the lottery terminal project from the Racetrack Lottery Terminal Fund, established pursuant to section 2 of P.L.    , c.   (C.      ) (pending before the Legislature as this bill).  Revenues from the 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 lottery terminal project.

 

     9.    The Division of the State Lottery, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate such rules and regulations as may be necessary to effectuate the purposes of P.L.    , c.   (C.      ) (pending before the Legislature as this bill).

 

     10.  P.L.1983, c.80 (C.5:9-7.1) is repealed.

 

     11.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill permits the State Lottery Commission to authorize lottery games on up to 500 patron-operated lottery terminals at facilities located at participating running and harness horse racetracks in this State that conducted live racing during 2015.  The facility for the lottery terminal project would be developed by each permitholder.  The Division of the State Lottery would have investigatory and enforcement responsibilities over the lottery terminal licensees and games.

     Revenue generated by the lottery terminals would be deposited into a newly created "Racetrack Lottery Terminal Fund," to be appropriated only for the payment of prizes to the winners of lottery games, the expenses of the Division of the State Lottery, the administrative expenses of participating permitholders in operating the facility for the lottery terminals, and other necessary administrative expenses. Not less than one-third of the amount remaining would be paid to participating permitholders.  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.

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