N.J. Admin. Code § 13:74-10.1

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

Section 13:74-10.1 - Racing costs assessment formula

(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.

N.J. Admin. Code § 13:74-10.1