N.J. Admin. Code § 13:74-2.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:74-2.1 - Prerequisites to and procedures for grant of initial off-track wagering license to the Authority on behalf of a permit holder

(a) The Authority shall make an application for an initial off-track wagering license on a form prescribed by the Commission, accompanied by a non-refundable filing fee of $ 2,500. An initial application, accompanied by the non-refundable filing fee, shall be filed for each off- track wagering facility proposed by the Authority on behalf of itself or a permit holder or permit holders subject to the participation agreement required by N.J.S.A. 5:5-130.

(b) An application for an initial off-track wagering license shall not be considered complete unless:

1. The permit holder or permit holders at Monmouth Park and the thoroughbred and standardbred permit holder or permit holders at the Meadowlands Racetrack have scheduled at least the minimum number of live race dates required by N.J.S.A. 5:5-156;

2. The Authority includes within the application a copy of a fully executed participation agreement that is consistent with current law, the terms of which encompass the license period, which it has entered into with all parties or successors in interest that held a valid race permit in 2000 (who are each in compliance with said permit, who are each in compliance with any minimum live race dates requirements of the Act, and who each are in good standing with the Commission and State);

3. All parties to the participation agreement are licensed by the Commission, or otherwise qualified to participate in off-track wagering;

4. If the Authority or a permit holder subject to the participation agreement is the owner of the land, building, and premises of the proposed off-track wagering facility, it shall include a statement evidencing that it has reached an agreement with the governing body of the local municipality within which the proposed off-track wagering facility is to be located, establishing the payment in-lieu-of taxes the Authority or the permit holder must pay to the municipality for the first five years of the operation of the off-track wagering facility pursuant to N.J.S.A. 5:5-151.1;

5. The Authority demonstrates through the application that the requirements of the Act have been satisfied; and

6. The Authority has completely answered each question within the application and complied with the requirements of this section.

(c) The initial application form, as prescribed by the Commission, shall include disclosure requirements concerning, but not limited to, the physical plan, location and the proposed hours of operation of the proposed off-track wagering facility subject of the specific application including the space relationship between wagering and non-wagering related amenities, the number of jobs expected to be created at the proposed facility, the gross revenues expected to be generated by the facility, the fire evacuation plan for the proposed facility, the type of food and beverages to be available, which shall include provisions for first-class dining, and, if alcoholic beverages are to be offered at the proposed facility, documentation that the requirements of the Act have been satisfied.

(d) The initial application shall have a written internal controls procedure attached, which shall set forth:

1. The procedures to be implemented to effectively operate and manage the proposed off-track wagering facility;

2. The procedures to be implemented to effectively maintain the integrity of wagering and the security of the proceeds from wagering within the proposed off-track wagering facility;

3. The procedures to be implemented to insure that the off-track wagering licensee complies with the requirements of the Act; and

4. The procedures to be implemented to ensure that a right of first refusal has been offered to certain individuals for certain employment opportunities within off-track wagering facilities.

(e) The initial application shall be accompanied by a certification, signed and dated by a high managerial agent of the Authority, attesting that the disclosures within the application and within its attachments are true, accurate, and complete.

(f) Any initial license granted pursuant to such application shall be for a period of one year.

(g) 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 reject the application and require the applicant to consider alternative sites for the proposed facility.

(h) The Commission may refuse to issue a license if it finds that the applicant has failed to demonstrate its suitability for licensure by clear and convincing evidence. The Authority or permit holder shall bear the burden of demonstrating to the Commission by clear and convincing evidence that the person or persons applying for licensure on behalf of the Authority or permit holder possess the necessary qualifications to obtain licensure for an off-track wagering facility in accordance with standards and criteria that shall include, but not be limited to:

1. Proof of financial resources sufficient to enable the Authority or permit holder 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. All requirements and considerations set forth in N.J.A.C. 13:74-5.8.

(i) Following a determination that the application for an initial off-track wagering license is complete, the Executive Director shall review the application in accordance with the Act to insure that the application is in due form and meets the requirements of law in all respects. Upon being satisfied that these requirements are met, the Commission shall hold a public hearing in the municipality in which the proposed off-track facility is to be located within 45 days of the application being deemed complete. The cost of such a public hearing shall be borne by the applicant.

(j) Between 30 days and 60 days following the closing of the record on the public hearing described in (i) above, the Commission shall make a final determination on the application. The Commission shall approve the application if it determines that the Authority has demonstrated, by clear and convincing evidence, that:

1. The plan for the proposed facility, including its size, seating capacity, parking and services to be provided reflects appropriate standards of quality;

2. The grant of a license to establish the proposed off-track wagering facility will not be inimical to the interest of the public and the horse racing industry in this State;

3. The participation agreement meets the requirements of the Act and is consistent with current law to the satisfaction of the Commission and Attorney General; and

4. The proposed off-track wagering facility site is in an appropriate location.

(k) An off-track wagering license shall be issued only if the permit holders in this State schedule at least the minimum number of race dates required by N.J.S.A. 5:5-156.

(l) The Commission's determination on the application shall be submitted to the Attorney General for review and approval. The determination of the Commission shall be deemed approved by the Attorney General if not affirmatively approved or disapproved by the Attorney General within 14 days of the date of submission. The decision of the Attorney General shall be deemed a final decision. The Commission shall issue the license upon the approval of the Attorney General.

(m) Any off-track wagering license shall specify the effective dates of the license, the location of the off-track wagering facility, the periods of time during the calendar year, and the hours of operation during which off-track wagering is permitted at the facility, and prescribe any other conditions or terms the Commission deems appropriate, including, but not limited to, the requiring of an annual audit of the off-track wagering licensee's books and records pertaining to off-track wagering.

N.J. Admin. Code § 13:74-2.1

Amended by 51 N.J.R. 1769(a), effective 12/2/2019