Current through Register Vol. 56, No. 18, September 16, 2024
(a) The State
Treasurer shall certify racing costs annually. The Commission shall submit to
the State Treasurer all information pertinent to the certification for the
related State fiscal year. Subject to the approval of the State Treasurer, the
Racing Commission may adjust the annual assessment amount established pursuant
to (b) below to cover costs not anticipated at the time of the
certification.
(b) Racing costs
shall be reimbursed to the Commission in the following order:
1. All license, permit and application filing
fees collected by the Commission including those derived in connection with
live thoroughbred racing, live harness racing, simulcasting at permitted
racetrack facilities, casino simulcasting, account wagering and off-track
wagering;
2. All breakage monies
and outstanding ticket monies resulting from wagering at any off-track wagering
facility or through account wagering on races conducted by an in-State track,
and all breakage monies and outstanding ticket monies resulting from wagering
at any off-track wagering facility or through account wagering on races
conducted by an out-of-State track in excess of $300,000 annually, which
$300,000 is to be devoted to the purposes set forth in the Act; and
3. The outstanding pari-mutuel ticket monies
due the Racing Commission pursuant to N.J.S.A. 5:5-64a.1 and 5:10-7g(1),
comprising 50 percent of the total proceeds of outstanding ticket monies
derived from all wagering on live running and live harness races at permitted
racetrack facilities in this State.
(c) Where the items in (b) above are not
sufficient to reimburse the Racing Commission for racing costs in any State
fiscal year, the permit holders and successors in interest shall be assessed
for the balance of racing costs not otherwise appropriated to the Commission by
law in accordance with the following formula:
1. The dollar amount of the balance shall be
divided by the greater of the number of race dates allocated to or actually
raced by New Jersey permit holders and successors in interest during the
assessment period;
2. The figure
derived by performing the calculation in (c)1 above shall be multiplied by the
greater of the number of race days allocated to or actually raced by each
permit holder or successor in interest;
3. The figure derived by performing the
calculation in (c)2 above, as to each permit holder or successor in interest
which conducted live racing, shall be reduced by 40 percent each. Subject to
any additional amount due, as a result of the application of the calculation in
(c)4 above, this figure shall comprise the total amount due for racing costs by
each permit holder or successor in interest offering live racing;
4. The cumulative dollar amount derived by
performing the 40 percent percentage reduction calculation in (c)3 above shall
be allocated for payment amongst each permit holder or successor in interest,
the permit holder or successor in interest which holds the account wagering
licensee or the off-track wagering licensee, on the following basis:
i. Twenty percent of the total shall be paid
on an equal basis by each permit holder who offers live racing but is not
subject to the minimum live race date requirements of the Act;
ii. Twenty-five percent shall be paid by the
permit holder or successor in interest which holds the off-track wagering
licensee, commencing with the opening of the first Commission approved account
wagering facility in this State, and the off-track wagering licensee shall not
be precluded from obtaining reimbursement for any or all of such costs from
other parties to the participation agreement related to off-track wagering;
and
iii. Any remaining balance
shall be paid by the permit holder or successor in interest that holds the
account wagering licensee, which shall not be precluded from obtaining
reimbursement for any or all of such costs from other parties to the
participation agreement related to account wagering; and
5. Such assessment shall be approved by the
State Treasurer.
(d) The
Commission shall issue a written invoice to a designated representative of each
permit holder or successor in interest, the account wagering licensee, or the
off-track wagering licensee as appropriate who is responsible for the payment
of racing costs pursuant to (b) or (c) above. If the State Treasurer does not
certify racing costs within 30 days of submission of information by the
Commission under (a) above, the Commission may issue an interim invoice based
on the information submitted. The amount of the invoice or interim invoice
shall be paid to the Commission within 21 days of issuance. The Commission
shall make a refund or additional assessment, if required, in accordance with
the certification by the State Treasurer. Upon receipt of the funds subject to
any invoice for racing costs, the Commission shall cause such funds to be
deposited into a non-lapsing dedicated account to be used for racing
purposes.
