Bill Text: NJ S1866 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes alternative methods of casino licensure.
Spectrum: Slight Partisan Bill (Democrat 8-3)
Status: (Passed) 2011-01-05 - Approved P.L.2010, c.115. [S1866 Detail]
Download: New_Jersey-2010-S1866-Introduced.html
Sponsored by:
Senator JIM WHELAN
District 2 (Atlantic)
Senator JOSEPH M. KYRILLOS, JR.
District 13 (Middlesex and Monmouth)
Co-Sponsored by:
Senators Lesniak and Gordon
SYNOPSIS
Establishes alternative methods of casino licensure.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing alternative methods of casino licensure and supplementing P.L.1977, c.110 (C.5:12-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of P.L.1977, c.110 (C.5:12-1 et seq.) to the contrary, the Casino Control Commission shall issue two additional types of casino licenses: a small-scale casino facility license and a staged casino facility license.
b. An applicant may apply to the commission for a casino license to operate a small-scale casino facility consisting of not more than 20,000 square feet of casino space and not less than 200 qualified sleeping units to be located within or adjacent to the Boardwalk casino zone.
c. An applicant may apply to the commission for a casino license to operate a staged casino facility which shall initially consist of not more than 30,000 square feet of casino space and not less than 200 qualified sleeping units to be located within or adjacent to the Boardwalk casino zone, on the condition that within two years of the date of licensure the licensee shall begin an expansion of the facility to include not less than a total of 500 qualified sleeping units which shall be completed within five years of initial licensure. A staged casino facility licensee shall be deemed to have begun the expansion required by this subsection if the licensee has obtained all necessary permits, including a permit issued pursuant to the "Coastal Area Facility Review Act," P.L.1973, c.185 (C.13:19-1 et seq.), that are necessary for the commencement of site work and the construction of footings and foundations, and has begun site work, including grading, footing and foundation work. A licensee shall be deemed to have completed the expansion of the facility upon receipt of a temporary or permanent certificate of occupancy for the qualified sleeping units. Upon the completion of 75% of the expansion of the facility, as certified by the project architect or engineer, such level of completion shall be deemed an addition of those sleeping units for purposes of calculating such licensee's maximum allowable casino space under section 83 of P.L.1977, c.110 (C.5:12-83). Upon the completion of all of the additional qualified sleeping units the commission shall convert the licensee's license from a staged casino facility license to a standard casino license issued under P.L.1977, c.110 (C.5:12-1 et seq.). If the holder of a staged casino facility license fails to complete the expansion of the facility within the time period specified by this subsection, the commission shall convert that license to a small-scale casino facility license.
d. An applicant for a small-scale casino facility license or a staged casino facility license shall submit a notice of the intent to proceed to the commission on such forms as the commission may provide which shall include a statement of intention to apply for either a small-scale casino facility license or a staged casino facility license, a description of the general elements of the project, a description of the financing and source of funds for the project, and a commitment to a minimum investment threshold that includes acquisition costs and hard and soft development costs. In addition, the applicant shall provide a bond, letter of credit or cash deposit in the amount of $1,000,000 for the benefit of the State, which shall be forfeited upon the failure to commence or complete a project within the applicable time frames or refunded upon timely completion of the project.
e. The commission shall require the holder of a small-scale casino facility license or a staged casino facility license to deposit an amount equal to 5% of gross revenues into a special non-lapsing fund to be administered by the State Treasurer. Funds deposited by the holder of a staged casino facility license shall be made available to the licensee for the purpose of expanding the facility as provided by this section. Funds deposited by the holder of a small-scale casino facility license shall be made available to the licensee for the purpose of expanding the number of qualified sleeping units at the facility. Funds that are not used for these purposes, after a period of time to be determined by the commission, shall be expended for the purpose of funding infrastructure improvements in the City of Atlantic City or made available for low interest loans to expand existing casinos.
f. No more than four facilities shall be licensed pursuant to this section at the same time. If at any time the commission is in receipt of more than four applications for licensure, the commission shall rank the applications according to criteria developed by the commission, including, without limitation, job preservation, job creation, immediacy of project development and neighborhood benefit, but shall give preference to applicants seeking licensure to operate a staged casino facility as provided herein and to new construction over renovation.
g. The holder of a casino license issued pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.) shall be eligible for licensure under this section to operate a small-scale casino on the behalf of a small-scale casino licensee.
h. The provisions of P.L.1977, c.110 (C.5:12-1 et seq.) shall apply to licensure under this section except to the extent that those provisions may be inconsistent with this section.
2. This act shall take effect immediately.
STATEMENT
This bill establishes two alternative methods of casino licensure. It provides that the Casino Control Commission will issue a small-scale casino facility license and a staged casino facility license for a facility to be located within or adjacent to the Boardwalk casino zone. A small-scale casino facility would consist of not more than 20,000 square feet of casino space and not less than 200 qualified sleeping units. A staged casino facility would initially consist of not more than 30,000 square feet of casino space and not less than 200 qualified sleeping units. Within two years, a staged casino facility licensee would have to begin expanding the facility which must include not less than a total of 500 qualified sleeping units within five years of initial licensure. If the holder of a staged casino facility license fails to complete the expansion of the facility within the time period specified by the bill, the commission will convert that license to a small-scale casino facility license. A total of not more than four small-scale casino facility licenses and staged casino facility licenses could be issued by the commission at the same time. The bill also provides that the holder of either type of license would deposit an amount equal to 5% of gross revenues into a fund administered by the State Treasurer. Funds deposited by the holder of a staged casino facility license would be made available to the licensee for the purpose of expanding the facility. Funds deposited by the holder of a small-scale casino facility license would be made available to the licensee for the purpose of expanding the number of qualified sleeping units at the facility. Funds that are not used for these purposes, after a period of time to be determined by the commission, would be expended for the purpose of funding infrastructure improvements in Atlantic City or made available for low interest loans to expand existing casinos.
