SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE, No. 3455
with committee amendments
STATE OF NEW JERSEY
DATED: JUNE 24, 2024
The Senate Budget and Appropriations Committee reports
favorably and with committee amendments Senate Bill No. 3455.
Under current law, off-track wagering licenses are first issued to
horse racing permit holders. Licensees are required to meet certain
New Jersey Racing Commission rules and timelines for the
establishment, construction, and operation of off-track wagering
facilities. Violation of racing commission rules and regulations are
grounds for the commission to revoke, suspend, or deny a renewal of a
license.
This bill provides for the automatic renewal, without conditions, of
an off-track wagering license. As long as a licensee files the
appropriate forms and pays all relevant fees to the commission, their
license will continue to be renewed.
The bill removes the provisions which allow for the denial of a
license renewal. However, the bill allows the racing commission to
continue to suspend or revoke a license for noncompliance with the
commission’s rules.
Current law also provides for a preference system for the award of
a license forfeited by a horse racing permit holder, first to a
horsemen’s organization and then to any other well-suited entity. This
bill removes these provisions.
The bill allows for the racing commission to use its discretion to
establish the timeframe for renewal of license, rather than the fixed
annual renewal under current law.
The bill specifies that nothing in the off-track and wagering
account law would limit the ability of horsemen’s organizations to
enter into agreements with horse racing permit holders for the
operation of off-track wagering facilities.
COMMITTEE AMENDMENTS :
The committee amendments ensure that the only requirements for
the automatic renewal of an off-track wagering license will be the
submission of any required forms and the payment of a renewal fee, as
established by the Racing Commission. 2
The committee amendments also remove the provisions of the bill
which modified certain requirements for the operation of simulcasting
facilities.
The amendments also remove the provisions of the bill which
would have reduced the number of annual races required to be
conducted by thoroughbred permit holders from 50 to 25.
FISCAL IMPACT:
The Office of Legislative Services (OLS) concludes that the bill
will have an indeterminate impact on State finances as the bill grants
the New Jersey Racing Commission the ability to change the renewal
timeframe for off-track wagering license and provides for automatic
renewals of licenses if the proper paperwork and fees are submitted.
This bill grants the New Jersey Racing Commission the ability to
change the duration of the off-track wagering license, setting the
minimum renewal term to an annual duration. It is not known what
timeframe the commission may adopt, and if the associated renewal
fee would be adjusted simultaneously. If the commission were to
extend the renewal timeframe without a corresponding increase in
such fee, there could be a loss of revenue associated with license
renewals. All renewal fees are dedicated to the ongoing operations of
the New Jersey Racing Commission. Due to both of these licensing
factors being controlled through the commission’s discretion, the OLS
is unable to determine the impact of the bill on State revenues.