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NEW JERSEY REGISTER
VOLUME 38, ISSUE 7
ISSUE DATE: APRIL 3, 2006
RULE PROPOSALS
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
LEGALIZED GAMES OF CHANCE CONTROL COMMISSION
Registration and Identification; License Issuance; License Amendment; Raffles
and Bingo Equipment Providers; Instant Raffle Equipment Providers; Armchair
Race and Casino Night Equipment and Personnel Providers; Fees; Notifications;
Qualifications; Rental of Premises for Bingo

38 N.J.R. 1535(a)

Proposed Amendments: N.J.A.C. 13:47-2.3, 4.9, 5.1, 13.6, 14.2 and 14.3

Registration and Identification; License Issuance; License Amendment; Raffles and Bingo Equipment Providers; Instant Raffle Equipment Providers; Armchair Race and Casino Night Equipment and Personnel Providers; Fees; Notifications; Qualifications; Rental of Premises for Bingo

Authorized By: Legalized Games of Chance Control Commission, Stephen Nolan, Acting Executive Officer, and Deputy Director of the Division of Consumer Affairs.

Authority: N.J.S.A. 5:8-6 and 5:8-21.

Calendar Reference: See Summary below for explanation of exemption to calendar requirement.

Proposal Number: PRN 2006-120.

Submit comments by June 2, 2006 to:
Legalized Games of Chance Control Commission
c/o Stephen Nolan, Deputy Director
124 Halsey Street
7th Floor
PO Box 45027
Newark, New Jersey 07101

The agency proposal follows:

Summary

The Legalized Games of Chance Control Commission (the Commission) proposes to amend N.J.A.C. 13:47-2.3, 4.9, 5.1, 13.6, 14.2 and 14.3 to increase fee amounts that the Commission charges for registration and licensure. Under the statutory authority set forth in N.J.S.A. 5:8-21, fees must be established in an amount necessary to defray proper expenses incurred in performing its duties, but fees which raise revenues in excess of estimated expenses are prohibited. A Fiscal Officer of the Division of Consumer Affairs (the Division) recently completed a financial analysis which revealed that the fees for the Commission have not been increased in at least 10 years and the Commission's expenses have been subsidized from other sources in recent years. In addition, the Commission receives an appropriation from the Department of the Treasury (Treasury) each year. This appropriation initially provides funding to maintain the operations of the program until such time as revenues can be collected. The major portion of the revenues is collected in the second half of the fiscal year. At the end of the fiscal year, the Commission is required to pay back the appropriation in full with the revenue collected throughout the year. Any revenue collected above the amount of the appropriation can be used by the program or carried forward to the next fiscal year for future use. In each fiscal year, from Fiscal Year 2001 through Fiscal Year 2005, the Commission did not collect sufficient revenues to pay back the full amount of the appropriation owed to Treasury. As a result, the Commission must establish fees at a level consistent with current expenses. Therefore, the proposed fee increases are necessary and appropriate to satisfy the Commission's current and anticipated expense levels and which comport with the requirements of N.J.S.A. 5:8-21. The Commission is proposing to amend N.J.A.C. 13:47-2.3 to increase fees for each organization applying for registration to conduct bingo or raffles and registration renewal. The Commission is also proposing new N.J.A.C. 13:47-2.3(f) and (g). Proposed new N.J.A.C. 13:47-2.3(f) establishes that if an organization does not renew its registration prior to its expiration date, the organization may renew within 30 days of its expiration by filing an application for renewal of its registration together with the renewal fee and a $ 35.00 late filing fee. Proposed new N.J.A.C. 13:47-2.3(g) establishes that if an organization does not renew its registration within 30 days of its expiration, the organization may only re-apply for registration by fulfilling all of the initial registration requirements. The Commission is proposing to increase the licensing fees for bingo and raffles in N.J.A.C. 13:47-4.9(c) from $ 10.00 to $ 20.00, except at N.J.A.C. 13:47-4.9(c)9ii, when the Commission is proposing to increase the fee for a one-year license to sell, or to offer for sale, instant raffle tickets during the licensure year from $ 500.00 to $ 750.00. The Commission is proposing to add N.J.A.C. 13:47-5.1(b) that would prohibit a licensee that has applied for an amended license from operating a game until the amended license certificate has been issued by the Commission. The proposed amendments to N.J.A.C. 13:47-13.6 increase the annual licensing fee and the renewal fee for armchair race, bingo, casino night and raffle equipment providers from $ 500.00 to $ 1,000. The Commission is proposing to increase the annual licensing fee for each manufacturer of instant raffle equipment from $ 1,500 to $ 3,000. The Commission is also proposing to increase the annual licensing fee for each distributor of instant raffle equipment from $ 1,000 to $ 3,000. The Commission is proposing at N.J.A.C. 13:47-14.2 and 14.3 to increase the annual license fee for approved renters of premises for bingo games from $ 500.00 to $ 1,000. The Commission is also proposing to increase the fee the renter must pay the Commission for each occasion on which bingo games are held from $ 10.00 to $ 20.00. As the Commission has provided a 60-day comment period on this notice of proposal, this notice is exempted from the rulemaking calendar requirement pursuant to N.J.A.C. 1:30-3.3.

Social Impact

There is a strong State interest in regulating the practice of games of chance in large part on ensuring that those individuals who participate in such games of chance are participating in legal games of chance. The Commission believes that the proposed amendments will have a positive social impact upon the general public to the extent that the Committee will have adequate financial resources to devote to regulating the practice of games of chance so as to safeguard the welfare of consumers who participate in such games. New N.J.A.C. 13:47-5.1(b) will have a social impact upon licensees since the Commission is proposing that no licensees who has applied for an amended license can operate a game in any manner other than that which has been licensed until an amended license certificate has been issued. Thus, licensees will have to cease operations until the amended license certificate has been issued.

Economic Impact

The proposed fee increase amendments will have an economic impact upon the organizations requesting registration, registration renewal and/or licensure for various games of chance events as well as armchair race, bingo, casino night and raffle equipment providers and manufacturers.

Federal Standards Statement

A Federal standards analysis is not necessary as there are no Federal standards or requirements applicable to the proposed amendments.

Jobs Impact

The Commission does not expect that the proposed amendments will result in the generation or loss of jobs in New Jersey.

Agriculture Industry Impact

The proposed amendments will not have any impact on the agriculture industry in the State.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq., requires the Commission to give a description of the types and an estimate of the number of small businesses to which the proposed amendments will apply. When each license is looked at individually, all of the more than 7,000 registered organizations come within the Regulatory Flexibility Act's definition of "small business" as defined in N.J.S.A. 52:14B-17. The proposed amendments do not impose any reporting or recordkeeping requirements. But the proposed amendments do impose compliance requirements. Organizations requesting registration, registration renewal and/or licensure for various games of chance events and armchair race, bingo, casino night and raffle equipment providers and manufacturers must comply with the proposed new fees when submitting registration or licensure information. The proposed amendments will also impose compliance requirements upon renters of premises for bingo and their renters for the same reason. The Commission does not expect any of the proposed amendments to result in any additional compliance costs. No additional professional services will be required for compliance. The Commission also believes that the proposed amendments should be uniformly applied to all gaming organizations, as the costs to be covered by the registration and licensing fees are not dependent on the business size of the registrant or licensee; therefore, no differing compliance requirements are provided.

Smart Growth Impact

The Commission believes the proposed amendments will not have any impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

SUBCHAPTER 2. REGISTRATION AND IDENTIFICATION

13:47-2.3 Application for registration: renewal; fees

(a) Except as provided in [subsection] (b) below, each organization requesting registration shall remit by check or money order a non-refundable biennial registration fee of [$ 50.00] $ 100.00, payable to the Legalized Games of Chance Control Commission, and shall submit a completed application together with sufficient proof of the organization's eligibility for registration. Such proofs shall include at least the following:

1.-4. (No change.)

(b)-(d) (No change.)

(e) Each registered organization requesting renewal of its registration with the Control Commission shall remit by check payable to the Legalized Games of Chance Control Commission, a non-refundable fee of [$ 50.00] $ 100.00 together with any additional information requested by the Control Commission.

(f) If an organization does not renew its registration prior to its expiration date, the organization may renew its registration within 30 days of its expiration by filing an application for renewal of its registration together with a check in the amount set forth in (e) above, plus an additional amount of $ 35.00 as a late filing fee.

(g) If an organization does not renew its registration within 30 days of its expiration, the organization may only re-apply for registration by fulfilling all of the initial registration requirements as set forth in (a) above.

SUBCHAPTER 4. LICENSE ISSUANCE

13:47-4.9 Licensing fees payable to the Control Commission

(a)-(b) (No change.)

(c) The licensing fees payable to the Commission are:

1. Bingo: [$ 10.00] $ 20.00 for each occasion on which any game or games of bingo are to be conducted under the license;

2. On-premises draw raffle for cash prizes (50/50) in excess of $ 400.00 or merchandise prices where the total combined retail value of prizes awarded is in excess of $ 400.00: [$ 10.00] $ 20.00 for each day on which a drawing(s) is to be conducted under the license; v 3. On-premises draw raffle for cash prizes (50/50) that do not exceed $ 400.00 or merchandise prizes where the total combined retail value of prizes awarded does not exceed $ 400.00: no licensing fee. In the event the retail value of the prize(s) offered or awarded exceeds $ 400.00 in a raffle in which it was anticipated that the retail value would not exceed $ 400.00, the licensee shall submit a check or money order made payable to the Legalized Games of Chance Commission in the amount of [$ 10.00] $ 20.00 at the time of filing the report of operations required by N.J.A.C. 13:47-9 and if required, provide the licensing municipality with any additional and if required, provide the licensing municipality with any additional fees due, together with a copy of the Report of Raffle Operations;

4. Off-premises draw raffle awarding merchandise as a prize: [$ 10.00] $ 20.00 for each $ 1,000 or part thereof of the retail value of the prize(s) to be awarded;

5. Carnival games or wheels: [$ 10.00] $ 20.00 for each game or wheel held on any one day, or any series of consecutive days not exceeding six at one location;

6. Off-premises cash (50/50) raffle: a [$ 10.00] $ 20.00 fee shall be paid at the time the application is filed. In the event the awarded prize exceeds $ 1,000, then an additional fee of [$ 10.00] $ 20.00 for each $ 1,000 or part thereof in value of the awarded prize in excess of $ 1,000 shall be forwarded to the Control Commission by check payable to the Legalized Games of Chance Control Commission together with the Report of Operations as required by N.J.A.C. 13:47-9 and if required, any additional fees due, together with a copy of the Report of Raffle Operations shall be provided to the licensing municipality;

7. (No change.)

8. Calendar raffle awarding cash or merchandise as a prize: [$ 10.00] $ 20.00 for each $ 1,000 or part thereof of the retail value of the prize(s) to be awarded.

9. Instant raffle games awarding cash or merchandise as a prize:

i. [$ 10.00] $ 20.00 for each day on which instant raffle tickets are sold or offered for sale; or

ii. [$ 500.00] $ 750.00 for a one-year license to sell, or to offer for sale, instant raffle tickets during that year.

10. Golf Hole-in-One Contest: [$ 10.00] $ 20.00 for each $ 1,000 or part thereof of the retail value of the ancillary prizes offered.

11.-12. (No change.)

(d) (No change.)

SUBCHAPTER 5. LICENSE AMENDMENT

13:47-5.1 Application form

(a) Application to amend a license shall be made by an officer of the licensee on Form 7-A, hereby adopted. The application shall have annexed such proofs, signatures and verifications as would have been necessary if the changes were in the original application.

(b) No licensee who has applied for an amended license shall operate a game in any manner other than that which has been licensed until an amended license certificate has been issued.

SUBCHAPTER 13. RAFFLES AND BINGO EQUIPMENT PROVIDERS; INSTANT RAFFLE EQUIPMENT PROVIDERS; ARMCHAIR RACE AND CASINO NIGHT EQUIPMENT AND PERSONNEL PROVIDERS; FEES; NOTIFICATIONS; QUALIFICATIONS

13:47-13.6 Approval; time limitations; renewal

(a) Upon notification of approval by the Control Commission, each armchair race, bingo, casino night and raffle equipment provider shall forward an annual licensing fee of [$ 500.00] $ 1,000 by certified check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply armchair race, bingo, casino night and raffle equipment, when granted, shall be valid for one year.

(b) Prior to the expiration of the current annual license period, each licensed armchair race, bingo, casino night and raffle equipment provider shall submit an application for license renewal together with the annual license renewal fee of [$ 500.00] $ 1,000.

(c) Upon notification of approval by the Commission, each manufacturer of instant raffle equipment shall forward an annual licensing fee of [$ 1,500] $ 3,000 by certified check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply instant raffle equipment when granted shall be valid for one year.

(d) (No change.)

(e) Upon notification of approval by the Commission, each distributor of instant raffle equipment shall forward an annual licensing fee of [$ 1,000] $ 3,000 by certified check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply instant raffle equipment when granted shall be valid for one year.

(f)-(g) (No change.)

SUBCHAPTER 14. RENTAL OF PREMISES FOR BINGO

13:47-14.2 Applications and licensing

(a)-(g) (No change.)

(h) When the Commission is satisfied that the applicant possesses the qualifications to receive a license, the Secretary shall issue and deliver a license to an applicant as an approved rentor of specified premises upon the payment by the applicant of an annual license fee in the amount of [$ 500.00] $ 1,000. Such payment shall be made by certified check payable to the order of the Legalized Games of Chance Control Commission.

(i)-(m) (No change.)

13:47-14.3 Regulations concerning rentals

(a)-(h) (No change.)

(i) A [$ 10.00] $ 20.00 fee, in the form of a certified check payable to the Legalized Games of Chance Control Commission, shall be forwarded by the renter to the Commission for each occasion on which bingo games are held, pursuant to N.J.S.A. 5:8-24 et seq. Payment of this fee shall be made no later than the 10th day of the month immediately following the month in which the premises was used for the holding, operating or conducting of bingo together with a statement disclosing:

1.-5. (No change.)

(j)-(q) (No change.)



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