[First Reprint]

ASSEMBLY, No. 1207

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen HOLZAPFEL and WOLFE

An Act concerning raffles, and amending and supplementing P.L.1954, c.5.

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

    1. Section 13 of P.L.1954, c.5 (C.5:8-62) is amended to read as follows:

    13. No prize shall be offered and given in cash except as authorized by regulation promulgated by the control commission.

    a. The aggregate retail value of all prizes to be offered and given by raffles held, operated and conducted under any license issued under P.L.1954, c.5 (C.5:8-50 et seq.) in any calendar year shall not exceed $500,000.00, but the limit so fixed shall not apply to any raffle with respect to which all tickets, shares or rights to participate are sold only to persons present, the winners determined, and the prizes awarded, on the same occasion or if the prizes are wholly donated.

    b. Notwithstanding the provisions of subsection a. of this section, the maximum prize that may be offered and awarded in a golf hole-in-one contest shall not exceed $1,000,000. Any ¹[prize in such a contest in an amount greater than $500,000 but not exceeding $1,000,000] prizes above $25,000¹ shall be offered and awarded only when the entire amount is insured by a company licensed to conduct business in this State and approved by the control commission. The prize ¹[may] shall¹ be paid as an annuity with a payout over a maximum period of ¹ [40] 20¹ years. Ancillary prizes ¹[may be]¹ awarded ¹[and]¹ shall have an aggregate retail value no greater than that provided by subsection a. of this section¹and shall also be subject to the provisions of subsection c. of this section¹ .

    c. No prize having a retail value greater than that prescribed by regulation promulgated by the control commission shall be awarded in any raffle conducted by a drawing, or for each spin of the wheel or other allotment by chance.

(cf: P.L.1994, c.63, s.19)

    2. Section 14 of P.L.1954, c.5 (C.5:8-63) is amended to read as follows:

    14. No game of chance to be conducted under any license issued under this act shall be advertised as to its location, the time when it is to be or has been played, or the prizes awarded or to be awarded, by means of newspapers, radio, television or sound truck, or by means of billboards, posters or handbills or any other means addressed to the general public[, except that 1 sign not exceeding 60 square feet in area may be displayed on the premises where the drawing or allotment of prizes is to be held and also where the prize is to be exhibited and an additional similar sign may be displayed on or adjacent to the premises where the prize or prizes are displayed and additional signs may be displayed upon any fire fighting equipment belonging to any licensee, which is a volunteer fire company or upon any first-aid or rescue squad equipment belonging to any licensee, which is a first-aid or rescue squad, in and throughout the community or communities served by such volunteer fire company or such first-aid or rescue squad, as the case may be] in any municipality in which the majority of voters voting therein have not voted in favor of the adoption of the provisions of P.L. 1954, c.5 (C.5:8-50 et seq.) or in any municipality in which the majority of voters voting therein have voted in favor of rescinding the adoption of the provisions of this act.

(cf: P.L.1955, c.161, s.8)

    3. (New section) The Legalized Games of Chance Control Commission shall promulgate regulations to govern the advertising of any game of chance occurring in any municipality in which the majority of voters voting therein have voted in favor of the adoption of the "Raffles Licensing Law" P.L.1954, c.5 (C.5:8-50 et seq.) and in which the game of chance is held, operated or conducted under any license issued by the control commission pursuant to the provisions of that act.

    The regulations shall prohibit:

    a. any advertisement from containing any false, deceptive, misleading or fraudulent statement regarding the holding, operation or conduct of a game of chance;

    b. any advertisement from causing undue or unfair competition between organizations registered with the control commission that are holding competing games of chance; and

    c. the use, to an extent deemed excessive, of the proceeds derived from the conduct of any individual game of chance for advertising

subsequent games of chance.

    4. This act shall take effect immediately.

Prescribes prize limits for certain raffles; establishes restrictions on advertising games of chance.