Bill Text: NJ S195 | 2018-2019 | Regular Session | Introduced


Bill Title: Provides casino licensee must repay any grants received from State entity when casino hotel facility is not sold at fair market value and used for casino gambling.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-09 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S195 Detail]

Download: New_Jersey-2018-S195-Introduced.html

SENATE, No. 195

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 


 

Sponsored by:

Senator  CHRIS A. BROWN

District 2 (Atlantic)

 

 

 

 

SYNOPSIS

     Provides casino licensee must repay any grants received from State entity when casino hotel facility is not sold at fair market value and used for casino gambling.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning the sale of a casino hotel facility and the repayment of State grants by certain casino licensees under certain circumstances and amending and supplementing P.L.1977, c.110.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 76 of P.L.1977, c.110 (C.5:12-76) is amended to read as follows:

     76.  General Duties and Powers.

     The Division of Gaming Enforcement shall have the general responsibility for the implementation of P.L.1977, c.110 (C.5:12-1 et seq.), and to issue any approvals necessary as hereinafter provided, including without limitation, the responsibility to:

     a.     Enforce the provisions of this act and any regulations promulgated hereunder;

     b.    Promptly and in reasonable order investigate all applications for licensure and all registrations under this act;

     c.     Issue reports and recommendations to the commission with respect to all entities and natural persons required to qualify for a casino license, an application for interim casino authorization or a petition for a statement of compliance;

     d.    Promptly and in reasonable order review and approve or deny all casino service industry enterprise license applications;

     e.     Accept and maintain registrations for all casino employee and vendor registrants;

     f.     Revoke any registration or casino service industry enterprise license upon findings pursuant to the disqualification criteria in section 86 of P.L.1977, c.110 (C.5:12-86);

     g.    Promulgate such regulations as may be necessary to fulfill the policies of this act;

     h.    Initiate and decide any actions against licensees or registrants for violation of this act or regulations promulgated hereunder, and impose sanctions and levy and collect penalties upon finding violations;

     i.     Provide the commission with all information that the director deems necessary for any action to be taken by the commission under Article 6 of P.L.1977, c.110 (C.5:12-80 through 95); 

     j.     Initiate, prosecute and defend appeals, as the director may deem appropriate;

     k.    Conduct continuing reviews of casino operations through on-site observation and other reasonable means to assure compliance with this act and regulations promulgated hereunder, subject to subsection h. of section 63 of P.L.1977, c.110 (C.5:12-63);

     l.     Receive and take appropriate action on any referral from the commission relating to any evidence of a violation of P.L.1977, c.110 (C.5:12-1 et seq.) or the regulations promulgated thereunder;

     m.   Exchange fingerprint data with, and receive criminal history record information from, the Federal Bureau of Investigation for use in considering applicants for any license or registration issued pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.);

     n.    Conduct audits of casino operations at such times, under such circumstances, and to such extent as the director shall determine, including reviews of accounting, administrative and financial records, and management control systems, procedures and records utilized by a casino licensee;

     o.    Request and receive information, materials and any other data from any licensee or registrant, or applicant for a license or registration under this act; [and]

     p.    Report to the Attorney General recommendations that promote more efficient operations of the division.

     q.    Receive complaints from the public relating to the conduct of gaming and simulcasting operations, examine records and procedures, and conduct periodic reviews of operations and facilities for the purpose of evaluating current or suggested provisions of P.L.1977, c.110 (C.5:12-1 et seq.) and the regulations promulgated thereunder, as the director deems appropriate;

     r.     Certify the revenue of any casino or simulcasting facility in such manner as the director deems appropriate;

     s.     Create and maintain a list of all excluded patrons;

     t.     Initiate and decide all actions for involuntary exclusion of patrons pursuant to section 71 of P.L.1977, c.110 (C.5:12-71);

     u.    Issue an operation certificate upon the commission's grant of an application for a casino license;

     v.    Recommend that the commission issue or revoke statements of compliance pursuant to section 81 of P.L.1977, c.110 (C.5:12-81) and the regulations promulgated thereunder;

     w.   Accept impact statements submitted by an applicant for a casino license pursuant to section 84 of P.L.1977, c.110 (C.5:12-84);

     x.    Utilize, in its discretion, the services of a private entity for the purpose of expediting criminal history record background checks required to be performed by the division pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), provided that the private entity has been awarded a contract in accordance with the public contracting laws of this State; [and]

     y.    License, regulate, investigate and take any other action regarding all aspects of authorized games conducted through the Internet; and

     z.     Require a casino licensee or owner seeking to close or sell a casino hotel facility, or a property formerly used by that licensee or owner as a casino hotel facility, to conduct an independent appraisal of the facility using a formula devised by the division, and inform the licensee or owner that failure to accept a bona fide offer to purchase the facility at fair market value made by a willing buyer who certifies in writing to the division that casino gambling will be conducted on the premises shall subject the licensee or owner to the repayment of any grant received from any State entity, as required pursuant to section 2 of P.L.   , c.   (C.   ) (pending before the Legislature as this bill).

(cf:  P.L.2013, c.27, s.10)

 

     2.    (New section)  Whenever a casino licensee or owner seeking to close or sell a casino hotel facility fails to accept a bona fide offer to purchase the facility at fair market value made by a willing buyer who certifies in writing to the division that casino gambling will be conducted on the premises, as provided under subsection z. of section 76 of P.L.1977, c.110 (C.5:12-76), the licensee or owner shall be liable to repay to the State the full dollar amount of any grant received by the licensee or owner from any State agency for use at the facility, notwithstanding the provisions of any law to the contrary.  Upon the licensee's or owner's refusal of the bona fide purchase offer, the Division of Gaming Enforcement shall notify in writing the State Treasurer, the Casino Control Commission, and the Casino Reinvestment Development Authority.  Upon receiving notice from the division, the State Treasurer shall solicit from each State department and agency, including any independent authority or commission of the State, an accounting of any grants made by the department or agency to the casino licensee or owner in accordance with any statute, regulation, or program for use at the casino hotel facility.  The State Treasurer shall notify the licensee or owner of the amounts due to the State, which the licensee or owner shall repay within 30 days of receiving the notice.  When a licensee or owner fails to repay the State within the specified timeframe, the State Treasurer shall recover the amounts due to the State as an unpaid liability.  The division may grant an extension if sufficient information is presented by the licensee or owner showing that a good-faith effort is being made to sell the casino hotel facility at fair market value to a willing buyer who will conduct casino gambling at the facility.

 

     3.    This act shall take effect immediately.

STATEMENT

 

     This bill provides that if a casino hotel facility is not sold at fair market value and used for casino gambling, the facility's licensee or owner must repay to the State any grants received by the licensee or owner for use at the facility.

     The bill directs the Division of Gaming Enforcement to require a casino licensee or owner seeking to close or sell a casino hotel facility, or a property formerly used by that licensee or owner as a casino hotel facility, to conduct an independent appraisal of the facility using a formula devised by the division.  The division must also inform the licensee or owner that failure to accept a bona fide offer to purchase the facility at fair market value made by a willing buyer who certifies in writing to the division that casino gambling will be conducted on the premises will subject the licensee or owner to the repayment of any grant received from any State entity for the facility.

     Under the bill, whenever a casino licensee or owner seeking to close or sell a casino hotel facility fails to accept a bona fide offer to purchase the facility at fair market value made by a willing buyer who certifies in writing to the division that casino gambling will be conducted on the premises, the licensee or owner would be required to repay to the State the full dollar amount of any grant received by the licensee or owner from any State agency for use at the facility.  Upon the licensee's or owner's refusal of the bona fide purchase offer, the division would notify in writing the State Treasurer, the Casino Control Commission, and the Casino Reinvestment Development Authority.  Upon receiving notice from the division, the State Treasurer would solicit from each State department and agency, including any independent authority or commission of the State, an accounting of any grants made by the department or agency to the casino licensee or owner in accordance with any statute, regulation, or program for use at the casino hotel facility.  The State Treasurer is required to notify the licensee or owner of the amounts due to the State, which the licensee or owner must repay within 30 days of receiving the notice.  When a licensee or owner fails to repay the State within the specified timeframe, the State Treasurer would recover the amounts due to the State as an unpaid liability.  The bill allows the division to grant an extension if sufficient information is presented by the licensee or owner showing that a good-faith effort is being made to sell the casino hotel facility at fair market value to a willing buyer who will conduct casino gambling at the facility.

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