S2359

An Act concerning liquor licenses to provide alcoholic beverages at off-track wagering facilities and amending P.L.2001, c.199 and R.S.33:1-42.

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

1. Section 2 of P.L.2001, c.199 (C.5:5-128) is amended to read as follows:

2. The Legislature finds and declares that:

a. The horse racing industry is economically important to this State, and the general welfare of the people of the State will be promoted by the advancement of horse racing and related projects and facilities in the State.

b. It is the intent of the Legislature, by authorizing off-track wagering and account wagering in this State, to promote the economic future of the horse racing industry in this State, to foster the potential for increased commerce, employment and recreational opportunities in this State and to preserve the State's open spaces.

c. It is the further intent of the Legislature that facilities offering off-track wagering opportunities to the public also offer other amenities such as quality dining and handicapping facilities.

d. The Legislature has determined that the New Jersey Racing Commission is best suited to oversee, license and regulate off-track wagering and account wagering in the State, and that the New Jersey Sports and Exposition Authority, by virtue of its experience in the operation of parimutuel wagering facilities and other entertainment-related projects in this State, is particularly well-suited to coordinate with other parties to promote the uniformity and success of off-track wagering throughout the State and to ensure the fiscal soundness and technical reliability of an account wagering system, pursuant to the terms of this act.

e. In establishing off-track wagering facilities, the authority will not be performing an essential government function but rather an essentially private business function. Numerous municipalities, residents and businesses will be impacted by the establishment of off-track wagering facilities throughout the State. A municipality may oppose the placement of an off-track wagering facility within its boundaries at the discretion of the authority and the commission. A municipality may want an off-track wagering facility sited within its boundaries, but only if the municipality receives an appropriate level of property tax for municipal services. Therefore, fundamental fairness dictates that any municipality be empowered to refuse the siting of a facility within its boundaries. Fundamental fairness also dictates that an off-track wagering facility, even if owned and not leased by the authority, be subject to local property tax requirements.

f. By regulation of the Division of Alcoholic Beverage Control, there exist special licenses that permit the sale of alcoholic beverages on public property. These special licenses, typically available to the authority, are inexpensive and circumvent the traditional method for obtaining a license to sell alcoholic beverages. Because the establishment of off-track wagering facilities is, in reality, essentially a private business function and not an essential government function, the authority is not permitted under this act to receive a special license. Under this act, [only] a private holder of a Class C plenary retail consumption license is permitted to provide alcoholic beverages at an off-track wagering facility, or alternatively, the authority may obtain a Class C plenary retail consumption license to provide alcoholic beverages at an off-track wagering facility.

(cf: P.L.2004, c.116, s.3)

2. Section 5 of P.L.2001, c.199 (C.5:5-131) is amended to read as follows:

5. a. At the time of filing an application for an off-track wagering license, the authority shall submit to the commission a non-refundable filing fee in an amount established by regulation by the commission, and a certification in a form prescribed by the commission which specifies, but is not limited to, the following information:

(1) a plan depicting the proposed facility and improvements thereon, including information about the size, seating capacity, parking and services to be provided at the facility;

(2) the location of the proposed facility, and relevant demographic or other information concerning the municipality and surrounding area where the proposed facility is to be located;

(3) the number of permanent and part-time jobs expected to be created at the proposed facility, and gross revenues expected to be generated by the facility;

(4) the fire evacuation plan for the proposed facility;

(5) the type of food and beverages available; and

(6) such other information as the commission may require.

b. The authority shall file a separate application and certification for each proposed off-track wagering facility.

c. The commission shall establish by regulation procedures and conditions for renewal of licenses issued under this act.

d. The commission shall by regulation establish the maximum hours of operation of off-track wagering facilities.

e. Notwithstanding [R.S.33:1-42] any law, rule, or regulation to the contrary, alcoholic beverages may be offered for on-premise consumption at an off-track wagering facility [only] if provided by a Class C plenary retail consumption licensee, by an agreement or contract with the authority, pursuant to the provisions of R.S.33:1-1 et seq. in accordance with such procedures as established by statute and by regulation of the Division of Alcoholic Beverage Control. Alternatively, the authority may obtain a Class C plenary retail consumption license to provide alcoholic beverages only at an off-track wagering facility, pursuant to the provisions of R.S.33:1-1 et seq., and in accordance with such procedures established by statute or regulation of the Division of Alcoholic Beverage Control. The authority shall not hold [a] any other license or special license to provide alcoholic beverages at an off-track wagering facility.

f. Persons under the age of 18 years shall not be permitted in any off-track wagering facility, except in dining areas if accompanied by a parent or guardian.

g. The commission shall by regulation establish minimum standards for off-track wagering facilities, including, but not limited to, standards for size, seating capacity, parking and services to be provided.

h. The authority, in lieu of obtaining municipal zoning and planning approvals that may otherwise be required in connection with the off-track wagering facility, shall submit a written notice of its intention to site an off-track wagering facility to the governing body of the municipality within which the facility would be sited. The notice shall identify the proposed site of the facility by street address, if any, or by reference to lot and block numbers as shown on the current tax duplicate in the municipal tax assessor's offices. Within 45 days of its receipt of the authority's notice of intention, the municipal governing body may disapprove of the proposed site of an off-track wagering facility by adopting a resolution which shall be valid and binding upon the authority and the commission upon delivery of a duly certified copy of the resolution to the authority and the commission. Whenever a municipality determines to consider a resolution disapproving a proposed off-track wagering facility, the authority shall be given an opportunity to offer a public presentation of the proposed facility prior to consideration of the resolution. A resolution disapproving a proposed off-track wagering facility shall state the reasons for disapproval.

In the event the governing body shall not adopt such a resolution, the authority may seek a license for an off-track wagering facility in that municipality and the commission may grant the authority the license provided that:

(1) the proposed off-track wagering facility site is not in an area zoned residential;

(2) the authority has submitted its plans to the municipal planning board, and complied with the provisions of section 22 of P.L.1975, c.291 (C.40:55D-31); and

(3) the authority has made reasonable efforts to address the reasonable concerns expressed by the municipal planning board.

(cf: P.L.2004, c.116, s.6)

3. R.S.33:1-42 is amended to read as follows:

R.S.33:1-42. No sales of alcoholic beverages shall be made in any public buildings belonging to or under the control of the state or any political subdivision thereof except as to the national guard as hereinbefore provided, and except as to the New Jersey Sports and Exposition Authority under the provisions of the “Off-Track and Account Wagering Act,” P.L.2001, c.199 (C.5:5-127 et seq.), and except as permitted by the commissioner in specified cases and subject to rules and regulations.

(R.S.33:1-42)

4. This act shall take effect immediately.

STATEMENT

This bill authorizes the New Jersey Sports and Exposition Authority (NJSEA) to obtain a Class C plenary retail consumption license, also known as a retailer’s license, to provide alcoholic beverages at off-track wagering facilities only.

Currently, under the “Off-Track and Account Wagering Act,” P.L.2001, c.199 (C.5:5-127 et seq.), the authority is not allowed to obtain a special license to provide alcoholic beverages at off-track wagering facilities. The authority must instead partner with a private holder of a retailer’s license for the provision of alcoholic beverages at those localities.

This bill would broaden the options available to the authority by allowing the authority to directly obtain a retailer’s license, as an alternative to establishing a partnership with the holder of such a license.