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Bill > S12


NJ S12

NJ S12
Revises various aspects of casino industry regulation.


summary

Introduced
In Committee
Crossed Over
Passed
Dead
Signed/Enacted/Adopted
02/01/2011

Introduced Session

2010-2011 Regular Session

Bill Summary

This bill revises the Casino Control Act, P.L.1977, c.110 (C.5:12-1 et seq.), the law that regulates the licensing of casinos and casino gaming in this State. Under the bill, various regulatory matters currently with the Casino Control Commission would become the responsibility of the Division of Gaming Enforcement in the Department of Law and Public Safety. The divisions responsibilities would include: conducting investigative hearings on the conduct of gaming and gaming operations and the enforcement of the casino control act; issuing reports and recommendations to the commission on entities or persons required to qualify for a casino license, on applications for interim casino authorization, or on petitions for a statement of compliance; examining records and procedures, and conducting periodic reviews of operations and facilities, to evaluate provisions of law; collecting certain fees and assessments; issuing operation certificates to casino licensees; accepting impact statements submitted by casino license applicants; issuing emergency orders; taking action against licensees or registrants for violations of the act; imposing sanctions and collecting penalties; accepting and maintaining registrations for casino employees and certain vendors; receiving complaints from the public; certifying the revenue of a casino or simulcasting facility; creating and maintaining the list of excluded patrons; and using private contractors to process criminal history record background checks. With regard to the Casino Control Commission, the responsibilities of the commission would include the areas of casino licensing; licensing of casino key employees; and hearing appeals on actions taken by the division. The commission would retain responsibility over the institution of a conservatorship and appointment of conservators, and over interim authorizations. The bill removes the requirement that the commission be present through inspectors and agents at all times during the operation of a casino. The bill would also require the commission to expeditiously implement Internet wagering when it is permitted under State and federal law. With regard to the membership of the commission, the bill would remove the provision that prohibits members of the commission from continuing in holdover status for more than 120 days after the expiration of their term, so that the members may remain in holdover status until a successor is appointed. Also, the bill would provide for the election of the chairperson by the commission members; currently, the chairperson is designated by the Governor. The election of the chairperson would commence after the expiration of the term of the current chair. The commission would no longer be authorized to employ legal counsel but may award a contract for professional legal services. Under the bill, the commission would continue to have responsibility for issuing casino licenses and casino key employee licenses. The division would have jurisdiction over the licensing of casino service industry enterprises, and the registration of those vendors that are not within the definition of such an enterprise. The division would also have jurisdiction over the registration of casino employees. The definition of casino service industry enterprise would be revised to mean any vendor offering goods or services which directly relate to casino or gaming activity, including gaming equipment and simulcast wagering equipment manufacturers, suppliers, repairers and independent testing laboratories, junket enterprises, and junket representatives. The definition of casino employee would be revised to mean a person, who is not within the definition of casino key employee, but who is employed by a casino licensee, or a holding or intermediary company of a casino licensee, and is involved in the operation of a licensed casino or a simulcasting facility, or performs services or duties in a casino, simulcasting facility or a restricted casino area. The bill would remove license renewal requirements, but would add a requirement for certain information to be provided to the commission and division every five years by licensees in order to verify continued compliance with the law. The bill would remove certain restrictions concerning a Casino Hotel Alcoholic Beverage License, and would permit a manufacturer, wholesaler, or other person licensed to sell alcoholic beverages to retailers, or third parties at their discretion, to jointly sponsor with the Casino Hotel Alcoholic Beverage Licensee musical or theatrical performances or concerts, sporting events and such similar events and festivals, with an anticipated overall audience attendance of at least one thousand patrons, as may be approved by the division. The administration of the tax on casino service industry multi-casino progressive slot machine revenue would be transferred to the Department of the Treasury, and administration of the $3.00 per day fee on each casino hotel room occupied by a guest would be transferred to the Casino Revenue Fund Advisory Commission. The definition of "gross revenue" would be revised to exclude non-cashable credits in any form, including coupons, electronic credits and vouchers. Other provisions of the bill would: add certain criminal violations to the current list that would disqualify an applicant for a casino license; revise various casino licensing requirements; add a presumption that a casino licensee is financially stable under described conditions; revise procedures for the conduct of hearings by the commission and the division; permit the division to adopt the conclusions of a private testing laboratory or governmental agency with regard to the testing of gaming equipment; permit the deployment, within 14 days after submission for testing, of new gaming equipment or simulcast wagering equipment that is submitted for testing to the division or to an independent testing laboratory; require the division to give a one-time right of first refusal offer of employment to certain former commission employees; prohibit a member of the commission and any employee of the commission holding a supervisory or policy-making management position, and the director of the division and any employee of the division holding a supervisory or policy-making management position, from making any political contribution; add the director of the division to the current four-year post-employment restriction applicable to commission members; require the division to be located in Atlantic City, except that the division may maintain a secondary office in Trenton; and double all monetary fines for violations of the casino control act. The bill would repeal: the definition of "casino service employee" and "principal employee;" the provision authorizing the commission to exclude unqualified or disqualified persons from licensing or casino operations; the provision describing the powers and authority of the commission; the provisions that permit the commission to issue subpoenas, administer oaths, appoint hearing examiners, order persons to answer questions or produce evidence, and confer immunity, which are being replaced by new sections in the bill; the provisions concerning the renewal of casino licenses, and the licensing of casino employees; and the provision that imposed a tax on casino complimentaries until June 30, 2009.

AI Summary

This bill significantly reorganizes the regulation of New Jersey's casino industry by shifting many responsibilities from the Casino Control Commission (CCC) to the Division of Gaming Enforcement (DGE) within the Department of Law and Public Safety. The DGE will now handle tasks such as conducting investigative hearings, issuing reports on license applications, examining records, collecting fees, issuing operation certificates, accepting impact statements, issuing emergency orders, taking action against licensees for violations, imposing sanctions, and maintaining employee and vendor registrations. The CCC will retain authority over casino licensing, casino key employee licensing, and hearing appeals of DGE actions, as well as conservatorship and interim authorizations. The bill also updates definitions for "casino employee" and "casino service industry enterprise," removes certain license renewal requirements in favor of periodic verification, allows joint sponsorship of events with alcoholic beverage licensees, transfers tax administration for certain casino revenue streams, revises the definition of "gross revenue" to exclude non-cashable credits, adds new criminal violations that disqualify license applicants, and doubles monetary fines for violations of the casino control act. Additionally, it modifies commission membership rules, allows commission members to remain in holdover status until successors are appointed, permits commission members to elect their chairperson, and restricts the commission's ability to employ legal counsel, instead allowing contracts for legal services. The bill also mandates the expeditious implementation of internet wagering and makes other adjustments to casino industry regulations.

Committee Categories

Government Affairs

Sponsors (7)

Last Action

Approved P.L.2011, c.19. (on 02/01/2011)

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