Provides for automatic renewal of off-track wagering licenses.

A1531

ASSEMBLY, No. 1531

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CLINTON CALABRESE

District 36 (Bergen and Passaic)

Assemblyman WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

Co-Sponsored by:

Assemblywoman Speight

SYNOPSIS

���� Provides for automatic renewal of off-track wagering
licenses.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning horse racing in this State and off-track wagering licenses and
amending P.L.2001, c.199.

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

���� 1.��� Section 3 of P.L.2001,
c.199 (C.5:5-129) is amended to read as follows:

���� 3.��� As used in this act:

���� "Account holder"
means a resident of this State over age 18 who establishes an account pursuant
to this act through which account wagers are placed.

���� "Account wagering"
means a form of parimutuel wagering in which an account holder may deposit
money in an account with the account wagering licensee and then use the account
balance to pay for parimutuel wagers by the account holder.

���� "Account wagering
licensee" means the New Jersey Sports and Exposition Authority or its
assignee, provided that the commission has granted its approval for the
authority to establish an account wagering system as provided for in this act.

���� "Account wagering
system" means the system through which account wagers are processed by the
account wagering licensee pursuant to this act.

����
[
"Applicant" means the
New Jersey Sports and Exposition Authority or another entity that submits an
application to the commission for a license to establish and conduct an
off-track wagering facility pursuant to this act.
]

���� "Authority" means
the New Jersey Sports and Exposition Authority created by section 4 of
P.L.1971, c.137 (C.5:10-4).

���� "Backstretch
Benevolency" means the Backstretch Benevolency Programs Fund established
pursuant to section 1 of P.L.1993, c.15 (C.5:5-44.8).

���� "Breeders and
Stallions" means the distribution from the special trust account created
pursuant to section 46 a. (2) of P.L.1940, c.17 (C.5:5-66) for the purposes of
subparagraph (c) of that citation.

���� "Breeding and
Development" means the New Jersey Horse Breeding and Development Account
established pursuant to section 5 of P.L.1967, c.40 (C.5:5-88).

���� "Commission" means
the New Jersey Racing Commission created by section 1 of P.L.1940, c.17
(C.5:5-22).

���� "Executive Director"
means the Executive Director of the commission.

���� "Health and Welfare"
means moneys distributed to the Standardbred Breeders' and Owners' Association
for the administration of a health benefits program pursuant to section 46 a.
(5) of P.L.1940, c.17 (C.5:5-66).

���� "In-State host
track" means a racetrack within this State which is operated by a permit
holder which conducts a horse race upon which account wagers are placed
pursuant to this act.

���� "In-State sending
track" means a racetrack within this State which is operated by a permit
holder and is equipped to conduct off-track simulcasting.

���� "In-State track"
means an in-State host track or an in-State sending track.

���� "Interstate common
pool" means the parimutuel pool established within this State or in
another state or foreign nation within which is combined parimutuel pools of
one or more receiving tracks located in one or more states or foreign nations
upon a race at an out-of-State sending track or out-of-State host track for the
purpose of establishing payoff prices in the various jurisdictions.

���� "Jockey's Health and
Welfare" means a health and welfare trust established by the organization
certified by the New Jersey Racing Commission as representing a majority of the
active licensed thoroughbred jockeys in New Jersey for the purpose of providing
health and welfare benefits to active, disabled and retired New Jersey jockeys
and their dependents based upon reasonable criteria by that organization.

���� "New Jersey Racing
Industry Special Fund" means the fund established pursuant to section 27
of this act.

���� "New Jersey Thoroughbred
Horsemen's Association" means the association representing the majority of
New Jersey thoroughbred owners and trainers responsible for receiving and
distributing funds for programs designed to aid thoroughbred horsemen.

���� "Off-track
simulcasting" means the simultaneous audio or visual transmission of horse
races conducted at in-State and out-of-State racetracks to off-track wagering
facilities and parimutuel wagering at those off-track wagering facilities on
the results of those races.

���� "Off-track wagering"
means parimutuel wagering at an off-track wagering facility as authorized under
this act.

���� "Off-track wagering
facility" means a licensed facility, other than a racetrack, at which
parimutuel wagering is conducted pursuant to this act.

���� "Off-track wagering
licensee" means the New Jersey Sports and Exposition Authority or its
assignee,
[
or
another entity to which
]

provided that
the commission has granted its approval to conduct an
off-track wagering facility as provided for in this act.

���� "Out-of-State host
track" means a racetrack in a jurisdiction other than the State of New
Jersey, the operator of which is lawfully permitted to conduct a horse race
meeting and which conducts horse races upon which account wagers may be placed
pursuant to this act.

���� "Out-of-State sending
track" means a racetrack in a jurisdiction other than the State of New
Jersey which is equipped to conduct off-track simulcasting and the operator of
which is lawfully permitted to conduct a horse race meeting and to provide
simulcast horse races to off-track wagering facilities in this State.

���� "Out-of-State track"
means an out-of-State host track or an out-of-State sending track.

���� "Outstanding parimutuel
ticket" means a winning parimutuel ticket which is not claimed within 12
months of sale.

���� "Parimutuel" means
any system whereby wagers with respect to the outcome of a horse race are
placed with, or in, a wagering pool conducted by an authorized person, and in
which the participants are wagering with each other and not against the person
conducting the wagering pool.

���� "Participation
agreement" means the written contract entered into prior to the effective
date of P.L.2011, c.26, that provides for the establishment or implementation
of either (a) an off-track wagering facility or facilities or (b) an account wagering
system.� Each such contract shall set forth the manner in which the off-track
wagering facility or facilities or the account wagering system shall be
managed, operated and capitalized, as well as how expenses and revenues shall
be allocated and distributed by and among the authority and the other eligible
participants
[
subject
to the agreement
]
.

���� "Permit holder"
means the holder of an annual permit to conduct a horse race meeting issued by
the commission.

���� "Racetrack" means
the physical facility where a permit holder conducts a horse race meeting with
parimutuel wagering.

���� "Racing costs" means
the prospective and actual costs for all licensing, investigation, operation,
regulation, supervision and enforcement activities and functions performed by
the commission.

���� "Simulcast horse
races" means horse races conducted at an in-State sending track or an
out-of-State sending track, as the case may be, and transmitted simultaneously
by picture to a receiving track or an off-track wagering facility.

���� "Sire Stakes" means
the Sire Stakes Program established pursuant to section 1 of P.L.1971, c.85
(C.5:5-91).

���� "Standardbred Drivers'
Health and Welfare" means a health and welfare trust established by the
Standardbred Breeders' and Owners' Association of New Jersey for the purpose of
providing health and welfare benefits to active, disabled and retired New
Jersey standardbred drivers and their dependents based upon reasonable criteria
by that organization.

���� "Takeout" means that
portion of a wager which is deducted from or not included in the parimutuel
pool, and which is distributed other than to persons placing wagers.

���� "Thoroughbred Breeders
and Stallions" means the special trust account created pursuant to section
46 b.(1)(e) of P.L.1940, c.17 (C.5:5-66).

(cf: P.L.2021, c.89, s.3)

���� 2.��� Section 4 of P.L.2001,
c.199 (C.5:5-130) is amended to read as follows:

���� 4.� a.� The commission is
authorized to issue a license to the authority to permit off-track wagering at
a specified facility, upon application of the authority and in accordance with
the provisions of this act.� A license issued pursuant to this act shall be
valid for a period of
time to be determined by the commission, but for not
less than
one year.�
Any such license that is valid on, or issued after,
the effective date of P.L.������������ , c.������ (pending before the
Legislature as this bill), shall renew automatically upon filing of the
necessary renewal forms with the commission, and payment of any renewal fees
required by the commission.

���� The commission shall issue a
license pursuant to this subsection only if the permit holder at Monmouth Park
and the thoroughbred and standardbred permit holders at Meadowlands Racetrack
schedule at least the minimum number of race dates required in section 30 of
this act, P.L.2001, c.199 (C.5:5-156), and it is satisfied that the authority
has entered into a participation agreement with each and every other person,
partnership, association, corporation, or authority or the successor in
interest to such person, partnership, association, corporation or authority
that:

���� (1)� held a valid permit to
hold or conduct a race horse meeting within this State in the calendar year
2000;

���� (2)� has complied with the
terms of such permit; and

���� (3)� is in good standing with
the commission and the State of New Jersey.

���� An off-track wagering license
may not be transferred or assigned to a successor in interest without the
approval of the commission and the Attorney General, which approval may not be
unreasonably withheld.

���� b.�
[
(1) As part of the license
application process, any
]

Any
participation agreement entered into for the purposes of subsection
a. of this section, or any modification to the agreement made thereafter, shall
be reviewed by the commission and the Attorney General to determine whether the
agreement meets the requirements of this act and shall be subject to the
approval of the commission and the Attorney General.
[
Notwithstanding any other law,
rule, or regulation to the contrary, a permit holder subject to a participation
agreement entered into prior to the effective date of P.L.2011, c.26 shall have
made progress since the signing of that agreement toward establishing the
permit holder's share of the 15 off-track wagering facilities authorized
pursuant to section 10 of P.L.2001, c.199 (C.5:5-136), provided that any
facility that has not received a license under section 7 of P.L.2001, c.199
(C.5:5-133) on the effective date of this act, P.L.2011, c.205 shall be subject
to a cash deposit, a bond, or an irrevocable letter of credit to be posted or
deposited by the permit holder in the amount of $1 million for each facility in
the permit holder's share that remains to be licensed, which deposit shall be
paid to the commission within 180 days of the effective date of this act,
P.L.2011, c.205.� A permit holder making a deposit or posting a bond, or
irrevocable letter of credit, in connection with one or more of the off-track
wagering facilities in the permit holder's share that remain to be established
shall obtain the license and make substantial progress in the commission's
judgment pursuant to the progress benchmarks issued by the commission and the
New Jersey Economic Development Authority under subsection e. of this section
toward establishing the off-track wagering facility or facilities within one
year of making the deposit, or posting the bond, or irrevocable letter of
credit, and if so the deposit, bond, or irrevocable letter of credit shall be
returned to the permit holder at the end of the one-year period, or the amount
deposited or posted shall be forfeited and distributed by the commission to the
representative horsemen's organization in this State for use in establishing an
off-track wagering facility or facilities under paragraph (2) of this
subsection.� Any facility that has not been licensed on the effective date of
this act, P.L.2011, c.205, and for which a deposit, bond, or irrevocable letter
of credit is not made or posted, and any facility for which a deposit, bond, or
irrevocable letter of credit is made or posted which has not been licensed and
made progress toward establishment within one year of making such deposit or
posting the bond, or irrevocable letter of credit, shall no longer be
considered as part of the permit holder's share, and shall be available to be
established by a horsemen's organization in this State as provided by paragraph
(2) of this subsection.� However, if the commission finds that a permit holder
is making progress toward obtaining an off-track wagering license and establishing
an off-track wagering facility according to specified benchmarks developed by
the commission, the commission may allow a permit holder to retain its share of
the off-track wagering facilities to be established, provided the permit holder
continues to make progress on an annual basis.� For the purposes of this
section, a permit holder shall be deemed to have made progress toward
establishing its share of off-track wagering facilities, and shall not be
subject to a cash deposit or be required to post a bond or irrevocable letter
of credit as set forth in this section, if it has entered into an agreement, in
connection with good faith negotiations over the sale or lease of a racetrack
under the permit holder's control, to transfer allocated off-track wagering
licenses or facilities to an individual or entity that is a bona fide
prospective purchaser or lessee, or has demonstrated to the satisfaction of the
Commission that the execution of such an agreement is imminent based upon the
portions of such an agreement agreed upon in principle by the parties as
evidenced by a memorandum of understanding or similar accord, or has
demonstrated to the satisfaction of the commission that negotiations concerning
such an agreement have been unsuccessful and the permit holder has plans for
soliciting new sources of interest or entering into new negotiations that, in
the judgment of the commission, have a reasonable likelihood of resulting in a
successful conclusion.

���� (2)� The commission is
authorized to issue a license or licenses to any horsemen's organization in
this State, for the establishment of one or more of the remaining off-track
wagering facilities in partnership with other horsemen's organizations in this
State, the authority, or private investors, in accordance with all applicable
provisions of the "Off-Track and Account Wagering Act," P.L.2001,
c.199 (C.5:5-127 et seq.).� Notwithstanding any provision of this paragraph to
the contrary, a representative standardbred horsemen's organization shall have
the right to establish the off-track wagering facilities not established by the
permit holder at Freehold Raceway as provided under paragraph (1) of this
subsection, and to receive any deposit, bond, or irrevocable letter of credit
forfeited by that permit holder for the establishment of one or more of those
off-track wagering facilities, except that if a representative standardbred
horsemen's organization does not make application therefor, or fails to make
progress in establishing the facility or facilities as provided herein, any
amounts received shall be returned as provided in this paragraph and the
facility or facilities shall be available to be established in accordance with
subsection c. of this section.� A horsemen's organization shall make progress
on an annual basis in establishing an off-track wagering facility from the date
the organization is eligible to apply for an initial license pursuant to this
subsection, provided that any facility that has not received a license under
section 7 of P.L.2001, c.199 (C.5:5-133) within a reasonable timeframe from the
date the horsemen's organization became eligible to apply for its initial
license shall no longer be considered eligible to be established by a
horsemen's organization under this paragraph, and shall be available to be
established by a well-suited entity pursuant to subsection c. of this section.�
When a horsemen's organization under this paragraph has received the sum of $1
million as provided under paragraph (1) of this subsection, the horsemen's
organization shall have one year from the date the funds are allocated to it by
the commission to obtain a license and make substantial progress in
establishing the off-track wagering facility or facilities, provided that, if
the horsemen's organization fails to make progress within that year, in the
commission's judgment pursuant to the progress benchmarks issued by the
commission and the New Jersey Economic Development Authority under subsection
e. of this section, the horsemen's organization shall be liable to return to
the commission the funds allocated to it in their entirety at the end of the
one-year period, and the commission shall return such funds to the permit
holder originally making the deposit, or posting the bond or irrevocable letter
of credit, to be used for capital improvements at the permit holder's
racetrack.
]
�

���� c.���
[
With respect
to any licenses that remain to be issued under paragraph (2) of subsection b.
of this section, the commission is also authorized to issue a license to a
well-suited entity to permit off-track wagering at a specified facility, upon
application of the entity and in accordance with the provisions of this act and
the provisions of section 14 of P.L.1940, c.17 (C.5:5-34).� A license issued
pursuant to this act shall be valid for a period of one year and, if the
licensed entity is not a permit holder in this State, the license shall be
contingent upon the licensee showing simulcast New Jersey races and allowing
wagering thereon at the off-track wagering facility, subject to the rules and
regulations of the commission, and shall be issued only if the permit holders
schedule at least the minimum number of race dates required in section 30 of
P.L.2001, c.199 (C.5:5-156).� In assessing the qualifications of an entity to
establish and conduct an off-track wagering facility, the commission shall
apply substantially similar standards and criteria to those applied to the
authority, its assignees, and other permit holders and licensees in the State.�
These standards and criteria shall enable the commission to determine by clear
and convincing evidence in the opinion of the commission that the person or
persons applying for licensure on behalf of the entity are well-suited to
receive licensure, and shall include, but may not be limited to:

���� (1)� proof of financial
resources sufficient to enable the entity to establish and conduct a quality
off-track wagering facility or facilities with appropriately staffed and
managed operations;

���� (2)� evidence of good
character, honesty, competency and integrity;

���� (3)� the absence of a
conviction for a crime involving fraud, dishonesty or moral turpitude; and

���� (4)� any additional standards
and criteria the commission may establish by rule or regulation in accordance
with this act.
]
�

(Deleted by amendment, P.L.���������� ���� , c.� ) (pending before the
Legislature as this bill).

���� d.�
[
(1) The commission, in
consultation with the State Treasurer, shall develop a process by which the
commission will accept bids for each off-track wagering license to be awarded
under this act, P.L.2001, c.199.� An off-track wagering licensee and an entity
interested in establishing an off-track wagering facility and being licensed as
an off-track wagering licensee shall be eligible to submit a bid.� The bidding
process shall include procedures for the establishment of a minimum bid
threshold, for the selection of a successful bidder and, when the successful
bidder is not yet licensed as an off-track wagering licensee, for the awarding
of a bid to that successful bidder subject to its eligibility to be licensed as
an off-track wagering licensee in compliance with the provisions of this act,
P.L.2001, c.199.� As part of the bidding process, and in addition to submitting
a monetary bid, a bidder shall submit to the commission a conceptual plan of
the off-track wagering facility the bidder intends to establish, which shall
include, but may not be limited to, a description of the proposed facility and
the amenities it would offer, and its proposed or intended location.� In
selecting a successful bidder, the commission shall consider and balance the
following:� (a) the monetary value of the bid in comparison to other bids
submitted; (b) the level of quality of the proposed facility and amenities in
striving to be a first-rate experience for the customer that includes the
provision of first-class dining facilities; (c) the potential of the proposed
facility and amenities to generate greater interest in the horse racing
industry and the sport of horse racing in the State; and (d) the proximity of
the bidder's proposed or intended location for the off-track wagering facility
and its impact on other planned or existing off-track wagering facilities and
racetracks in the State.� For the purposes of this act, P.L.2001, c.199, a
successful bid shall be conditional upon the successful bidder's compliance
with all the provisions of this act, P.L.2001, c.199, and the applicable rules
and regulations promulgated by the commission.

���� (2)� The commission shall
consider the amount of a successful bid pursuant to paragraph (1) of this
subsection as a license fee in connection with the issuance of an initial
license to an off-track wagering facility licensee.� The initial license fee
need not be uniform for all off-track wagering facility licenses, and may vary
depending on the results of the bidding process for each license. The proceeds
generated by the initial license fee shall be distributed as follows:� 50% to
the New Jersey Thoroughbred Horsemen's Association for programs designed to aid
the horsemen, and 50% to the Standardbred Breeders' and Owners' Association of
New Jersey for programs designed to aid the horsemen.
]
�
(Deleted by amendment, P.L. ���� ,
c.� ) (pending before the Legislature as this bill).

���� e.���
[
The commission
shall, in consultation with the New Jersey Economic Development Authority,
develop progress benchmarks, within three months of the effective date of
P.L.2011, c.26, for each off-track wagering licensee to follow for the timely
and expeditious establishment of each off-track wagering facility.� Such
benchmarks shall provide that a permit holder shall be deemed to have made
progress toward establishing its share of off-track wagering facilities if it
has entered into an agreement, in connection with good faith negotiations over
the sale or lease of a racetrack under the permit holder's control, to transfer
allocated off-track wagering licenses or facilities to an individual or entity
that is a bona fide prospective purchaser or lessee, or has demonstrated to the
satisfaction of the Commission that the execution of such an agreement is
imminent based upon the portions of such an agreement agreed upon in principle
by the parties as evidenced by a memorandum of understanding or similar accord,
or has demonstrated to the satisfaction of the commission that negotiations
concerning such an agreement have been unsuccessful and the permit holder has
plans for soliciting new sources of interest or entering into new negotiations
that, in the judgment of the commission, have a reasonable likelihood of
resulting in a successful conclusion. The failure of a licensee to meet the
benchmarks shall constitute a basis for the denial by the commission of the
renewal of the off-track wagering license, except that the licensee shall have
the right to appeal the commission's decision.
]
�

(Deleted by amendment, P.L.���������������� , c.������ ) (pending before the
Legislature as this bill).

����
f.���� Nothing in P.L.2001,
c.199 (C.5:5-127 et seq.) shall be construed to limit the ability of a
horsemen�s organization to enter into or enforce a participation agreement or
any other partnership agreement with a horse racing permit holder for the
operation of an off-track wagering facility pursuant to a valid license issued
pursuant to P.L.2001, c.199 (C.5:5-127 et seq.).

(cf: P.L.2011, c.205, s.1)

����� 3.�� Section
5 of P.L.2001, c.199 (C.5:5-131) is amended to read as follows:

����� 5.
a. At the time of filing an application for an off-track wagering license, the
applicant shall submit to the commission a non-refundable filing fee in an
amount established by regulation by the commission, and a certification in a
form prescribed by the commission which specifies, but is not limited to, the
following information:

����� (1) a
plan depicting the proposed facility and improvements thereon, including
information about the size, seating capacity, parking and services to be
provided at the facility;

����� (2) the
location of the proposed facility, and relevant demographic or other
information concerning the municipality and surrounding area where the proposed
facility is to be located;

����� (3) the
number of permanent and part-time jobs expected to be created at the proposed
facility, and gross revenues expected to be generated by the facility;

����� (4) the
fire evacuation plan for the proposed facility;

����� (5) the
type of food and beverages available, which shall include the provision of
first-class dining facilities; and

����� (6) such
other information as the commission may require.

����� b.�� The
applicant shall file a separate application and certification for each proposed
off-track wagering facility.

����� c.�� The
commission shall charge each off-track wagering licensee
[
an annual
]

a
reasonable
fee in connection with the renewal of the off-track wagering
license, and shall establish by regulation procedures and
[
conditions
]

forms
necessary
for renewal of licenses issued under this act.� The amount of the

[
annual
]
license renewal fee shall be used by the commission
to cover commission expenses associated with implementation of the provisions
of this act, P.L.2001, c.199, and shall reasonably reflect those costs.�

�����
The
commission shall not establish or enforce any requirements for the renewal of
an off-track wagering license other than the submission of the necessary forms
and payment of a reasonable fee established pursuant to this subsection.

����� d.�� The
commission shall by regulation establish the maximum hours of operation of
off-track wagering facilities.

����� e.
(1) Notwithstanding R.S.33:1-42, priority for the service of alcoholic
beverages for on-premise consumption at an off-track wagering facility shall be
given to a Class C plenary retail consumption licensee, by an agreement or
contract with the off-track wagering licensee, pursuant to the provisions of
R.S.33:1-1 et seq. in accordance with such procedures as established by statute
and by regulation of the Division of Alcoholic Beverage Control.� When a Class
C plenary retail consumption license or licensee is available in the
municipality, the authority shall not hold a license to provide alcoholic
beverages at an off-track wagering facility.� However, when a Class C plenary
retail consumption licensee or license is not available in the municipality, the
Director of the Division of Alcoholic Beverage Control shall issue a special
concessionaire permit to the authority for the provision of alcoholic beverages
at the off-track wagering facility and, if the off-track wagering license is
held by an off-track wagering licensee other than the authority, the director
may issue a non-transferable special license to provide alcoholic beverages at
the off-track wagering facility pursuant to paragraph (2) of this subsection.

����� (2) The
Director of the Division of Alcoholic Beverage Control may issue one special
license to an individual, corporation, or other type of legal entity to serve
alcoholic beverages at an off-track wagering facility located in the
municipality where a Class C plenary retail consumption licensee was not
available to provide alcoholic beverages at the off-track wagering facility
pursuant to paragraph (1) of this subsection.� The license shall authorize the
sale of alcoholic beverages for immediate consumption on the premises of the
off-track wagering facility.� The director may issue not more than 15 licenses
pursuant to this paragraph.� Furthermore, licenses issued pursuant to this
paragraph shall be subject to the following requirements:

����� (a) No
person who would fail to qualify as a licensee under Title 33 of the Revised
Statutes shall be permitted to hold an interest in a special license under the
provisions of this paragraph;

����� (b) Licenses
shall be subject to the provisions of Title 33 of the Revised Statutes and
rules and regulations promulgated by the director, to the extent those
provisions are not inconsistent with the provisions of this act;

����� (c) No
license issued pursuant to this paragraph shall be transferred to any other
premises;

����� (d) Application
for the initial issuance and renewal of each license shall be made to the
director on an annual basis.� The fee for the initial issuance of the license
shall be the average sale price for the three most recent sales of plenary
retail consumption licenses in the municipality where the license is being
issued during the preceding five years.� If the off-track wagering facility is
located within the boundaries of two or more municipalities, the highest
average sale price of the two or more municipalities shall be used.� If less
than three plenary retail consumption licenses have been sold in the
municipality or municipalities, as the case may be, within the previous five
years, the director shall obtain an appraisal, at the applicant's expense, to
determine the appropriate fee for the license.� The appraisal process shall
include an examination of previous transactions in the municipality or
municipalities, as the case may be, and shall reflect what a willing buyer,
under no pressure to buy, would pay a willing seller, under no pressure to
sell, for a plenary retail consumption license in that municipality or
municipalities, as the case may be. One half of the amount of the application
fee for the initial issuance of the license shall be paid upon the issuance of
the license and the other half of that amount shall be paid one year later.�
The director shall establish an annual fee for the license which shall not
exceed the fee which may be imposed by a municipality for a plenary retail
consumption license pursuant to R.S.33:1-12, a portion of which shall be paid
by the director to the New Jersey Racing Commission for the funding of horse
breeding incentive programs;

����� (e) The
fee for the initial issuance of the license shall be distributed in the
following manner:

����� (i)� Twenty-five
percent shall be paid to the municipality where the off-track wagering facility
is located and if the off-track wagering facility is located within the
boundaries of two or more municipalities, the fee shall be divided equally
among those municipalities;

����� (ii) Twenty-five
percent shall be paid to the Director of the Division of Alcoholic Beverage
Control;

����� (iii)
Fifty percent shall be paid to the New Jersey Racing Commission for the funding
of horse breeding incentive programs;

����� (f)� The
individual corporation or entity holding the license shall not be entitled to
sell a license issued pursuant to this paragraph, and the license shall expire
upon the closure of the off-track wagering facility;

����� (g) The
director shall not issue a special concessionaire permit for any off-track
wagering facility or premises which is eligible to obtain a license to serve
alcoholic beverages under the provisions of this paragraph; and

����� (h) Pursuant
to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et
seq.), the director shall adopt rules and regulations to effectuate the
purposes of this paragraph.

����� (3)
Nothing in this subsection shall be construed to allow the Director of the
Division of Alcoholic Beverage Control to issue a special concessionaire permit
or a special license described in paragraph (2) of this subsection to the
authority pursuant to this act, P.L.2001, c.199, or to issue a special license
to any individual, corporation, or other type of legal entity to serve
alcoholic beverages in a municipality that prohibits the retail sale of
alcoholic beverages within its boundaries.

����� f.��� Persons
under the age of 18 years shall not be permitted in any off-track wagering
facility, except in dining areas if accompanied by a parent or guardian.

����� g.�� The
commission shall by regulation establish minimum standards for off-track
wagering facilities
[
and timelines
for their establishment and completion
]
, including,
but not limited to, standards for quality, size, seating capacity, the
provision of first-class dining facilities,
and
parking and services to
be provided
[
, as well as
expected dates of construction, renovations and opening
]
.� The failure of an off-track wagering licensee to
meet these standards shall be sufficient cause for the commission to revoke
[
,
]

or

suspend
[
or refuse to
renew
]
a license
pursuant to the provisions of section 8 of P.L.2001, c.199 (C.5:5-134).

����� h.�� Notwithstanding
the provisions of any law, rule, or regulation to the contrary, an off-track
wagering facility shall be a permitted use in all commercial and industrial
districts of a municipality.

����� i.��� In
evaluating an application for an off-track wagering license, the commission
shall consider the proximity of the applicant's proposed site to other planned
or existing off-track wagering facilities and to racetracks in this State.� If,
in the opinion of the commission, the establishment of the facility at its
proposed location would be inimical to the interests of another planned or
established off-track wagering facility, or to a State racetrack, the
commission shall require the applicant to consider alternative sites for the
proposed facility.

(cf:
P.L.2011, c.26, s.4)

���� 4. Section 8 of P.L.2001,
c.199 (C.5:5-134) is amended to read as follows:

���� 8.� a.� The commission shall
have full power to prescribe rules, regulations and conditions under which all
off-track wagering licenses are issued
[
and
renewed
]

in the State, including requiring an annual audit of the off-track wagering
licensee's books and records pertaining to off-track wagering, and to revoke
[
,
]

or

suspend
[
or
refuse to renew
]

a license if in the opinion of the commission the revocation
[
of,
]

or

suspension of
[
or
refusal to renew
]

such license is in the public interest; provided, however, that such rules,
regulations and conditions shall be uniform in their application.

���� b.��� The commission shall
have no right or power to determine who shall be officers, directors or
employees of any off-track wagering facility, or the salaries thereof;
provided, however, that the commission may compel the discharge of any official
or employee of the licensee at the off-track wagering facility who: (1) fails
or refuses for any reason to comply with the rules or regulations of the
commission; (2) fails or refuses for any reason to comply with any of the
provisions of this act; (3) fails to establish by clear and convincing evidence
in the opinion of the commission good character, honesty, competency and
integrity; or (4) has been convicted of a crime involving fraud, dishonesty or
moral turpitude.

(cf: P.L.2001, c.199, s.8)

���� 5.��� This act shall take
effect immediately.

STATEMENT

����� Under current law, off-track wagering licenses are
first issued to horse racing permit holders.� Licensees are required to meet
certain New Jersey Racing Commission rules and timelines for the establishment,
construction, and operation of off-track wagering facilities.� Violation of
racing commission rules and regulations are grounds for the commission to
revoke, suspend, or deny a renewal of a license.

����� This bill provides for the automatic renewal, without
conditions, of an off-track wagering license. As long as a licensee files the
appropriate forms and pays all relevant fees to the commission, their license
will continue to be renewed.

����� The bill removes the provisions which allow for the
denial of a license renewal.� However, the bill allows the racing commission to
continue to suspend or revoke a license for noncompliance with the commission�s
rules.�

����� Current law also provides for a preference system for
the award of a license forfeited by a horse racing permit holder, first to a
horsemen�s organization and then to any other well-suited entity.� This bill
removes these provisions.

����� The bill allows for the racing commission to use its
discretion to establish the timeframe for renewal of license, rather than the
fixed annual renewal under current law.

����� The bill specifies that nothing in the off-track and
wagering account law would limit the ability of horsemen�s organizations to
enter into agreements with horse racing permit holders for the operation of
off-track wagering facilities.