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VOLUME 46, ISSUE 20
ISSUE DATE: October 20, 2014
RULE PROPOSALS

LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
Legalized Games of Chance Control Commission



Proposed Amendments: N.J.A.C. 13:47-1.1 and 6.3

Click here to view Interested Persons Statement

Words and Phrases Defined; Use of Proceeds; Capital Improvements
 
Authorized By: Steve C. Lee, Acting Executive Officer, Legalized Games of Chance Control Commission.
 
Authority: N.J.S.A. 5:8-6.
 
Calendar Reference: See Summary below for explanation of exemption to calendar requirement.
 
Proposal Number: PRN 2014-182.
 
Submit comments by December 19, 2014, to:
 
   Legalized Games of Chance Control Commission
   c/o Steve C. Lee, Acting Executive Officer
   124 Halsey Street
   P.O. Box 46000
   Newark, New Jersey 07101
   or electronically at: www.NJConsumerAffairs.gov/proposal/comment/.
 
The agency proposal follows:
 
Summary

Article IV, § 7 of the New Jersey Constitution permits veterans' organizations to conduct games of chance as long as the net proceeds from such games are devoted to educational, charitable, patriotic, religious, or public-spirited uses. N.J.S.A. 5:8-25 and 51 authorize specific entities to hold bingo games and raffles and set forth the ways those entities may use the proceeds from bingo games and raffles. P.L. 2013, c. 85 amended N.J.S.A. 5:8-25 and 51 to permit veteran's organizations to use the net proceeds from games of chance for support of the organization. On November 5, 2013, New Jersey residents approved an amendment to Article IV, § 7 that effectuated P.L. 2013, c. 85. The Legalized Games of Chance Control Commission (Commission) proposes to amend its rules to recognize that veterans' organizations may now use proceeds from games of chance for their support.

The Commission proposes to amend the definition of "authorized purpose" in N.J.A.C. 13:47-1.1, so that support of an organization is an authorized purpose for veterans' organizations or associations. N.J.A.C. 13:47-6.3(c) establishes requirements that veterans' organizations, religious organizations, charitable organizations, educational [page=2102] organizations, fraternal organizations, civic or service clubs, volunteer fire companies, and volunteer first aid or rescue squads must meet if they wish to use the proceeds from games of chance for capital improvements. As veterans' organizations are permitted to use proceeds from games of chance for their support, it is no longer necessary for such organizations to meet the requirements of N.J.A.C. 13:47-6.3(c) in order to use proceeds for capital improvements. The Commission proposes to amend N.J.A.C. 13:47-6.3(c) to remove reference to organizations or associations of veterans.

The Commission has determined that the comment period for this notice of proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.
 
Social Impact

The proposed amendments will have a beneficial impact on veterans' organizations in that they will have a new source of income to support themselves.
 
Economic Impact

The proposed amendments will have a positive economic impact on veterans' organizations as they will be able to support themselves through proceeds from games of chance.
 
Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments are governed by N.J.S.A. 5:8-6 and are not subject to any Federal requirements or standards.
 
Jobs Impact

The Commission does not believe that the proposed amendments will increase or decrease the number of jobs in New Jersey.
 
Agriculture Industry Impact

The Commission does not believe that the proposed amendments will have any impact on the agriculture industry in the State.
 
Regulatory Flexibility Statement

It is possible that some veterans' organizations could be considered "small businesses" under the Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq. The proposed amendments will not have any economic impact or require veterans' organizations to employ professional services. The proposed amendments do not impose any compliance, recordkeeping, or reporting requirements.
 
Housing Affordability Impact Analysis

The proposed amendments will have an insignificant impact on affordable housing in New Jersey and there is an extreme unlikelihood that the proposed amendments would evoke a change in the average costs associated with housing because the rules concern veterans' organizations using the proceeds from games of chance for their support.
 
Smart Growth Development Impact Analysis

The proposed amendments will have an insignificant impact on smart growth and there is an extreme unlikelihood that the proposed amendments would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan in New Jersey because the rules concern veterans' organizations using the proceeds from games of chance for their support.
 
Full text of the proposal follows: (additions indicated in boldface thus; deletions indicated in brackets [thus]):
 
SUBCHAPTER 1.    DEFINITIONS
 
13:47-1.1   Words and phrases defined
 
The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:
 
"Authorized purpose" means an educational, charitable, patriotic, religious, or public-spirited purpose, which terms are defined to be the purpose of benefiting an indefinite number of persons either by bringing their minds or hearts under the influence of education or religion, by relieving their bodies from disease, suffering, or constraint, by assisting them to establish themselves in life or by erecting or maintaining public buildings or works, or otherwise lessening the burden of government or, in the case of an organization or association of veterans or a senior citizen association or club, the support of such organization, association, or club. Authorized purpose includes capital improvements to a facility owned by the licensee as limited by N.J.A.C. 13:47-6.3. Authorized purpose does not include the erection or acquisition of property, real, personal, or mixed, unless such property is and shall be used exclusively for one or more of the purposes hereinabove stated.
 
. . .
 
SUBCHAPTER 6.    GENERAL CONDUCT OF GAMES OF CHANCE
 
13:47-6.3   Use of proceeds; capital improvements
 
(a)-(b) (No change.)
 
(c) A bona fide [organization or association of veterans of any war in which the United States has been engaged,] church or religious congregation or religious organization, charitable, educational or fraternal organization, civic or service club, officially recognized volunteer fire company, or officially recognized volunteer first aid or rescue squad licensed to hold and operate games of chance may use the net proceeds of games of chance for capital improvements to a facility owned by the licensee only if:
 
1.-3. (No change.)
 
(d)-(e) (No change.)

 

If you wish to submit comments about this rule proposal, please fill out the form below. When you have completed the form, click the "Submit Your Comments" button below.

Last Name :

First Name:

Professional Organization, Association or Affiliation, if any:

E-Mail Address:

PRN 2014-182

Comments:

       
   
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