Proposed Amendment: N.J.A.C. 13:47-13.6

Approval; Time Limitations; Renewal; Fees

Authorized By: Legalized Games of Chance Control Commission, David M. Szuchman, Acting Executive Officer.

Authority: N.J.S.A. 5:8-6 and 5:8-25.

Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2009-251.

Submit comments by October 16, 2009 to:

Legalized Games of Chance Control Commission

c/o David M. Szuchman, Acting Executive Officer

124 Halsey Street

P.O. Box 46000

Newark, New Jersey 07101

The agency proposal follows:

Summary

N.J.A.C. 13:47-13.6 requires a licensed distributor of electronic games of chance systems, or a licensed organization if it owns the equipment, to pay a fee of $ 25.00 for each bingo occasion on which electronic card minding devices are used. This fee covers the first 10 electronic card minding devices used at the occasion. The rule requires a distributor or licensed organization to pay $ 10.00 for each additional 10 devices used at the occasion. The Legalized Games of Chance Control Commission (Commission) has been approached by distributors and qualified organizations that hold bingo occasions who claim that the additional fee of $ 10.00 is significantly impacting the proceeds from bingo games and that this fee is dissuading organizations from offering electronic games of chance systems at bingo occasions. The Commission has reviewed these claims and agrees that the additional $ 10.00 fee per 10 additional units is impacting proceeds and discouraging the use of electronic games of chance systems. The Commission has also determined that the additional $ 10.00 fee does not significantly contribute to its operating budget and that the initial $ 25.00 fee adequately covers the expenses the Commission incurs in regulating the use of electronic games of chance systems. The Commission proposes to amend N.J.A.C. 13:47-13.6 to delete the $ 10.00 fee for every additional 10 electronic devices used at a bingo occasion. A distributor who provides electronic games of chance control systems for a bingo occasion or the licensed organization owning the equipment will be required to pay only the initial $ 25.00 fee, regardless of how many devices are used.

N.J.A.C. 13:47-13.6 further requires that fees paid by distributors for the use of electronic card minding systems be paid no later than the 10th day of the month immediately following the month in which the system was used in a bingo occasion. This deadline has proven to be difficult for distributors to meet. The Commission proposes to amend N.J.A.C. 13:47-13.6 to increase this deadline from the 10th day of the succeeding month to the last day of the succeeding month.

The Commission has determined that the comment period for this notice of proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.

Social Impact

The Commission believes that the proposed amendment will have a beneficial impact on qualified organizations that hold bingo occasions, and the educational, charitable, patriotic, religious or public-spirited purposes they support. Reducing the fee to use electronic card minding systems is expected to encourage their use. The Commission believes that such systems make bingo games more attractive to younger people and may aid experienced players by facilitating their play of multiple boards. The proposed amendment may encourage them to play bingo and increase the proceeds that qualified organizations receive from holding bingo occasions.

Economic Impact

The proposed amendment will have a positive economic impact on distributors of electronic games of chance systems and qualified organizations that use such systems for bingo occasions. Reducing the fee for using such systems may reduce the charges imposed by distributors, thus increasing proceeds from bingo occasions. The Commission also anticipates that decreasing the fee will encourage more qualified organizations to use these systems, making bingo games more attractive to players and increasing the number of people who play bingo. This anticipated increase in players will have a positive economic impact on qualified organizations.

Federal Standards Statement

A Federal standards analysis is not required because the proposed amendment is governed by N.J.S.A. 5:8-6 and is not subject to any Federal requirements or standards.

Jobs Impact

The Commission does not believe that the proposed amendment will increase or decrease the number of jobs in New Jersey.

Agriculture Industry Impact

The Commission does not believe that the proposed amendment will have any impact on the agriculture industry in the State.

Regulatory Flexibility Statement

Although distributors of electronic games of chance systems tend to be large enterprises, there may be some manufacturers that may be considered "small businesses" under the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq. (the Act). In addition, licensed organizations owning equipment may be considered small businesses.

The proposed amendment does not impose any compliance, reporting or recordkeeping requirements.

Smart Growth Impact

The Commission does not believe that the proposed amendment will have an impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Housing Affordability Impact

The proposed amendment will have an insignificant impact on affordable housing in New Jersey and there is an extreme unlikelihood that the rule would evoke a change in the average costs associated with housing because the proposed amendment concerns fees for the use of electronic card minding devices used in bingo occasions.

Smart Growth Development Impact

The proposed amendment will have an insignificant impact on smart growth and there is an extreme unlikelihood that the rule would evoke a change in housing production in Planning Areas 1 or 2 or within designated centers under the State Development and Redevelopment Plan in New Jersey because the proposed amendment concerns fees for the use of electronic card minding devices used in bingo occasions.

Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

SUBCHAPTER 13. RAFFLES AND BINGO EQUIPMENT PROVIDERS; INSTANT RAFFLE EQUIPMENT PROVIDERS; ARMCHAIR RACE AND CASINO NIGHT EQUIPMENT AND PERSONNEL PROVIDERS; FEES; NOTIFICATIONS; QUALIFICATIONS

13:47-13.6 Approval; time limitations; renewal; fees

(a)-(h) (No change)

(i) Each licensed distributor of electronic games of chance systems, or, if a system is owned by a licensed organization, the licensed organization, in addition to the use fee required under N.J.A.C. 13:47-4.9, shall pay a fee for the use of the electronic games of chance systems as follows:

1. For use of electronic card minding systems, a $ 25.00 fee, in the form of a check payable to the Legalized Games of Chance Control Commission, for each occasion on which electronic card minding devices are used in the conduct of games of chance. [If more than 10 electronic [page=3033] card minding devices are used on an occasion, an additional $ 10.00 shall be paid for each additional 10 electronic devices, or any fraction thereof, used.] The fee shall be paid no later than the [10th] last day of the month immediately following the month in which the electronic card minding system was used for the holding, operating or conducting of bingo games together with a statement disclosing:

i.-vii. (No change.)

(j) (No change.)