governor christie conditionally vetoes a1705

8/6/2019 Governor Christie Conditionally Vetoes A1705

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February 3, 2011STATE OF NEW JERSEY

EXECUTlVE DEPARTMENTASSEMBLY BILL NO. 1705(Second Reprint)

To the General Assembly:Pursuant to Article V, Section I, Paragraph 14 of the New

Jersey Constitution, I am returning Assembly Bill No. 1705(Second Reprint) with my recommendations for reconsideration.

This bill revises the "Off-Track and Account Wagering ActHto expedite the establishment of off-track wagering facilitiesan this State. Specifically, the bill would permit entitiesother than racetrack operators to obtain licenses from the NewJersey Racing Commission to establish and operate off-trackwagering facilities provided that they meet certainrequirements, standards and criteria. Under the bill'sprovisions, current racetrack operators will have theopportunity to demonstrate to the satisfaction of theCommission that they have made progress towards establishingtheir share of the off-track wagering facilities authorized bylaw. If a licensee fails to establish the foregoing by January1, 2012, all unused licenses will be forfeited and offeredfirst to horsemen's organizations, and subsequently to anywell-suited entity that meets the bill's requirements.

While I commend the sponsors for their interest inenhancing the horse racing industry and wholeheartedly supportthe expeditious development of off-track wagering facilities inthis State, I am concerned that some of the bill's provisionsmay impede the Administration's progress in developing a self-sustaining horse racin9 industry. Specifically, on December 17,2010, in an effort to preserve live Standardbred racing at theMeadowlands I directed the Sports and Exposition Authori.t y tonegotiate with the Standardbred Breeders and Owners Association(SBOA) for the lease of the Meadowlands Racetrack. Moreover,because the full development of the State's off-track wagering

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STATE OF NEW JERSEYEXECUTlVE DEPARTMENT

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network l.S essential to the future economic viability of thehorse racing industry, I further directed the Authority toassign up to four off-track wagering locations as a component ofany such lease agreement.

Moreover, in furtherance of our efforts to develop a self-sustaining horse racing industry, my Administration is alsopursuing the sale or lease of Monmouth Park Rclcetrack. Inconnection with these proposed transactions, the assignment ofadditional off-track wagering locations by the Authority may benecessary. Thus I it is essential that the Administration andthe Authority retain the flexibility to assign off-trackwagering licenses in connection with the sale or lease ofMonmouth Park.

Based upon the foregoing, I am concerned that the bi11'sprovision requiring the forfeiture of off-track wageringlicenses absent a showing of "progress" toward the developmentof such facilities may adversely impact the Authority's abilityto assign off track wagering locations pursuant to an agreementwith the SBOA or its designee in connection with the MeadowlandsRacetrack or with a potential purchaser or operator of MonmouthPark. Accordingly, I am recommending that the legislat.ion berevised to clarify that negotiations concerning the transfer orassignment of off-track wagering 1icenses an the context of apotential sale or lease of a racetrack shall be deemed"progress" toward the establishment of such facilities.Moreover, I am recommending that the bill be revised to requirethe Racing Commission t.oadhere to the standard set forth abovein its development of progress benchmarks for licensees and topermit the Commission to adopt administrative regulations on anexpedited basis.

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STATE OF NEW JERSEYEXECUTiVE DEPARTMENT

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In addition, I am concerned that the bill's provisionrequiring licensees to pay annually to their host municipalityan amount equal to H s of profits will be a barrier to thedevelopment of off-track wagering facilities. Nhile I fullysupport the sponsors' efforts to provide economic incentivesfor municipalities where off-track wagering facilities arebeing considered, existing law already requires facilityoperators to pay property taxes and, as such, this new feewould be an additional form of taxation that may discourage thedevelopment of new locations. While I am recommending throughthis conditional veto that the 1% fee be eliminated, I pledgeto work with the sponsors to find alternatives to defray anyadditional cost burdens that host municipalities may incur.

Accordingly, I herewith return Assembly Bill No. 1705(Second Reprint) and recommend that it be amended as follows:Page 3, Section 1, Lines 7-8: Delete ", and additionalcompensation as p:r:ovidedin this act,"Page 3, Section 1, Lines 13-15: Delete "and be furtherrequired to pay aportion of its wagering

revenues to its hostmunicipality [pursuantto the terms of thisact] as provided by law2/fPage 7, Section 3, Line 43: After "basis.II r insert"For the purposes ofthis section, a permitholder shall be deemedto have made progresstoward establishing itsshare of off-trackwagering facilities if

it has entered into anagreement I in connectionwith good faithnegotiations over thesale or lease of aracetrack under thepermit holder's control Jto transfer allocatedoff-track wageringlicenses or facilitiesto an individual orentity that is a bonafide prospectivepurchaser or lessee, orhas demonstrated to thesatisfaction of the



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Commission that theexecution of such anagreement is imminentbased upon the portionsof such an agreementagreed upon in principleby the parties asevidenced by amemorandum ofunderstanding or similaraccord."Page la, Section 3, Line 1: After "facility.",insert "Such benchmarksshall provide that a

permit holder shall bedeemed to have madeprogress towardestablishing its shareof off-track wageringfacilities if it hasentered into anagreement, in connectionwith good faithnegotiations over thesale or lease of aracetrack under thepermit holder's control,to transfer allocatedoff-track wageringlicenses or facilitiesto an individual orentity that is a bonafide prospectivepurchaser or lessee, orhas demonstrated to thesatisfaction of theCommission that theexecution of such anagreement is imminentbased upon the portionsof such an agreementagreed upon in principleby the parties asevidenced by amemorandum ofunderstanding or similaraccord."

Page 15, Section 7, Line 35: Delete "a.wageringits"An off-tracklicensee, or

Page 15, Section 7, Lines 36-47: Delete Lines 36-47their entirety in

Page 16, Section 7, Lines 1-15: Delete Lines 1-15their entirety inPage 16, Section 7, Line 16: Delete "d."Page 16, Line 45: Insert new section 8:

"8. (New Section)Notwithstanding anyprovision of P.:L.1968,c.410 (C.52:14B-l etseq.) to the contrary,the Commission may adoptimmediately upon filingwith the Office of



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Page 16, Line 46:

[seal]

Attest:/s/ Jeffrey S. Chiesa

STATE OF NEW JERSEYEXECUTiVE DEPARTMENT

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Administrative Law suchregulations as theCommission deemsnecessary to implementthe provisions of thisact, which shall beeffective for a periodnot to exceed 180 daysand may thereafter beamended, adopted orreadopted by theCommission in accordancewith the requirements ofP.L.1968, c.410.URenumber Section 8Section 9 asRespectfully,/s/ Chris ChristieGovernor

Chief Counsel to the Governor

governor christie conditionally vetoes a1705

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