New Jersey § 5:10-7

§ 5:10-7.

a. The authority or a lessee of the authority is hereby authorized, licensed and empowered

to apply to the Racing Commission for a permit or permits to hold and conduct, at

any of the projects set forth in paragraphs (1) and (5) of subsection a. of section

6 of P.L.1971, c. 137 ( C.5:10-6 ), horse race meetings for stake, purse or reward, and to provide a place or places

on the race meeting grounds or enclosure for wagering by patrons on the results of

such horse races by the parimutuel system, and to receive charges and collect all

revenues, receipts and other sums from the operation thereof and, in the case of the

authority, the ownership thereof. b. Except as otherwise provided in this section, such horse race meetings and parimutuel

wagering shall be conducted by the authority or a lessee of the authority in the manner

and subject to compliance with the standards set forth in P.L.1940, c. 17 ( C.5:5-22 et seq. ) and the rules, regulations and conditions prescribed by the Racing Commission thereunder

for the conduct of horse race meetings and for parimutuel betting at such meetings. c. Application for said permit or permits shall be on such forms and shall include

such accompanying data as the Racing Commission shall prescribe for other applicants. The Racing Commission shall proceed to review and act on any such application within

30 days after its filing and the Racing Commission is authorized in its sole discretion

to determine whether a permit shall be granted to the authority or a lessee of the

authority. If, after such review, the Racing Commission acts favorably on such application,

a permit shall be granted to the authority or a lessee of the authority without any

further approval and shall remain in force and effect so long as any bonds or notes

of the authority remain outstanding, the provisions of any other law to the contrary

notwithstanding. In granting a permit to the authority or a lessee of the authority to conduct a

horse race meeting, the Racing Commission shall not be subject to any limitation as

to the number of tracks authorized for the conduct of horse race meetings pursuant

to any provision of P.L.1940, c. 17 ( C.5:5-22 et seq. ). Said permit shall set forth the dates to be allotted to the authority for its initial

horse race meetings. Thereafter application for dates for horse race meetings by the authority or a lessee

of the authority and the allotment thereof by the Racing Commission, including the

renewal of the same dates theretofore allotted, shall be governed by the applicable

provisions of P.L.1940, c. 17 ( C.5:5-22 et seq. ). Notwithstanding the provisions of any other law to the contrary, the Racing Commission

shall allot annually to the authority or a lessee of the authority for the Meadowlands

Complex, in the case of harness racing, not less than the number of racing days allotted

pursuant to subsection b. of section 30 of P.L.2001, c. 199 ( C.5:5-156 ), and in the case of running racing, not less than 56 racing days, if and to the

extent that application is made therefor. d. No hearing, referendum or other election or proceeding, and no payment, surety

or cash bond or other deposit, shall be required for the authority or a lessee of

the authority to hold or conduct the horse race meetings with parimutuel wagering

herein authorized. e. The authority or a lessee of the authority shall determine the amount of the admission

fee for the races and all matters relating to the collection thereof. f. Distribution of sums deposited in parimutuel pools to winners thereof shall be

in accordance with the provisions of section 44 of P.L.1940, c. 17 ( C.5:5-64 ) pertaining thereto. The authority or a lessee of the authority shall make disposition of the deposits

remaining undistributed as follows: (1) In the case of harness races: (a) Hold and set aside in an account designated as a special trust account 1% of such

total contributions in all pools, to be used and distributed as hereinafter provided

and as provided in section 5 of P.L.1967, c. 40, 1 for the following purposes and no other: (i) 42 1/2% thereof to increase purses and grant awards for starting horses, as provided

or as may be provided by rules of the New Jersey Racing Commission, with payment to

be made in the same manner as payment of other purses and awards , unless otherwise provided by a contractual agreement authorized under section 11

of P.L.2013, c. 266 ( C.5:5-188 ) ; (ii) 49% thereof for the establishment of a Sire Stakes Program for standardbred horses,

with payment to be made to the Department of Agriculture for administration as hereinbefore

provided; (iii) 5 1/2% thereof to the Sire Stakes Program for purse supplements designed to

improve and promote the standardbred breeding industry in New Jersey by increasing

purses for owners of horses that are sired by a New Jersey registered stallion and

are eligible to participate in the Sire Stakes Program. The Sire Stakes Program board of trustees shall consult with the Standardbred Breeders'

and Owners' Association of New Jersey before disbursing money for purse supplements; (iv) 3% thereof for other New Jersey horse breeding and promotion conducted by the

New Jersey Department of Agriculture. Payment of the sums held and set aside pursuant to subparagraphs (iii) and (iv) shall

be made to the commission every seventh day of any and every race meeting in the amount

then due, as determined in the manner provided above, and shall be accompanied by

a report under oath showing the total of all such contributions, together with such

other information as the commission may require. (b) Distribute as purse money and for programs designed to aid the horsemen and the

Standardbred Breeders' and Owners' Association of New Jersey 5.1175%, or in the case

of races on a charity racing day 5%, of such total contributions. Expenditures for programs designed to aid the horsemen and the Standardbred Breeders'

and Owners' Association of New Jersey shall not exceed 5% of the sum available for

distribution as purse money. The formula for distribution of the purse money as either overnight purses or special

stakes shall be determined by an agreement between the Standardbred Breeders' and

Owners' Association of New Jersey and the authority or a lessee of the authority. Notwithstanding the foregoing, for pools where the patron is required to select

two or more horses, the authority or a lessee of the authority shall distribute as

purse money 5.6175%, or in the case of races on a charity racing day 5.5%, of the

total contributions and for pools where the patron is required to select three or

more horses, the authority or a lessee of the authority shall distribute as purse

money 7.1175%, or in the case of races on a charity racing day 7%, of the total contributions. Notwithstanding the foregoing, for pools where a patron is required to select three

or more horses, the authority or a lessee of the authority shall retain out of the

7.1175% or 7% to be distributed as purse money a sum deemed necessary by the racing

commission, for use by the commission to finance a prerace blood testing program,

and such other testing programs which the commission shall deem proper and necessary

and which shall be subject to the regulation and control of said commission. Notwithstanding the foregoing, the sum available for distribution as purse money under

this subsection may be distributed as provided by a contractual agreement authorized

under section 11 of P.L.2013, c. 266 ( C.5:5-188 ). (c) In the case of races on a racing day other than a charity racing day, distribute

to the Standardbred Breeders' and Owners' Association of New Jersey for the administration

of a health benefits program for horsemen .1175% of such total contributions. (d) In the case of races on a racing day other than a charity racing day, distribute

to the Sire Stakes Program for standardbred horses .02% of such total contributions. (e) In the case of races on a racing day other than a charity racing day, distribute

to the Backstretch Benevolency Programs Fund created pursuant to P.L.1993, c. 15 ( C.5:5-44.8 ) .01% of such total contributions. (2) In the case of running races: (a) Hold and set aside in an account designated as a special trust account .05% of

such total contributions, to be used and distributed for State horse breeding and

development programs, research, fairs, horse shows, youth activities, promotion and

administration, as provided in section 5 of P.L.1967, c. 40 ( C.5:5-88 ). (b) Distribute as purse money and for programs designed to aid the horsemen and the

New Jersey Thoroughbred Horsemen's Association 4.475%, or in the case of races on

a charity racing day 4.24%, of such total contributions. Expenditures for programs designed to aid the horsemen and the New Jersey Thoroughbred

Horsemen's Association shall not exceed 2.9% of the sum available for distribution

as purse money. The formula for distribution of the purse money as either overnight purses or special

stakes shall be determined by an agreement between the New Jersey Thoroughbred Horsemen's

Association and the authority or a lessee of the authority. Notwithstanding the foregoing, for pools where the patron is required to select

three or more horses, the authority or a lessee of the authority shall distribute

as purse money 7.475%, or in the case of races on a charity racing day 7.24%, of the

total contributions. Notwithstanding the foregoing, the sum available for distribution as purse money under

this subsection may be distributed as provided by a contractual agreement authorized

under section 12 of P.L.2013, c. 266 ( C.5:5-189 ). (c) Deduct and set aside in a special trust account established pursuant to section

46b.(1)(e) and 46b.(2)(e) of P.L.1940, c. 17 ( C.5:5-66 ) for the establishment and support by the commission of the thoroughbred breeding

industry in New Jersey .1% of such total contributions, except that for pools where

the patron is required to select three or more horses, the amount shall be .6%. The money in the special trust account shall be used to: (i) improve purses for

closed races; (ii) provide awards to owners and breeders of registered New Jersey

bred horses who earn portions of purses in open and closed races at New Jersey race

tracks or in closed races at an out-of-State track as part of a multi-state event

to promote thoroughbred breeding, and to owners of stallions posted on the official

stallion roster of the Thoroughbred Breeders' Association of New Jersey, which sire

such New Jersey bred money earners; and (iii) provide awards to the New Jersey Thoroughbred

Breeders' Association for programs beneficial to thoroughbred breeding in this State. The New Jersey thoroughbred award program shall be administered and disbursed by

the Thoroughbred Breeders' Association of New Jersey subject to the approval of the

commission. The special trust account to be established pursuant to this paragraph shall be

separate and apart from the special trust account established and maintained pursuant

to subparagraph (a) of this paragraph. (d) In the case of races on a racing day other than a charity racing day, distribute

to the Thoroughbred Breeders' Association of New Jersey .02% of such total contributions. (e) In the case of races on a racing day other than a charity racing day, distribute

to the Backstretch Benevolency Programs Fund created pursuant to P.L.1993, c. 15 ( C.5:5-44.8 ) .01% of such total contributions. Payment of the sums held and set aside pursuant to subparagraphs (a) and (c) of this

subsection shall be made to the commission every seventh day of any and every race

meeting in the amount then due, as determined in the manner provided above, and shall

be accompanied by a report under oath showing the total of all such contributions,

together with such other information as the commission may require. In addition to the amounts above, in the case of races on a racing day designated

or allotted as a charity racing day pursuant to P.L.1977, c. 200 ( C.5:5-44.2 et seq. ), P.L.1993, c. 15 ( C.5:5-44.8 ), or section 1 of P.L.1997, c. 80 ( C.5:5-44.9 ), an amount equal to 1 / 2 of 1% of all parimutuel pools shall be paid to the commission at the time and in

the manner prescribed by the commission. All amounts remaining in parimutuel pools, including the breaks, after such distribution

and payments shall constitute revenues of the authority or a lessee of the authority. Except as otherwise expressly provided in this section 7, the authority or a lessee

of the authority shall not be required to make any payments to the Racing Commission

or others in connection with contributions to parimutuel pools. g. All sums held by the authority or a lessee of the authority for payment of outstanding

parimutuel tickets not claimed by the person or persons entitled thereto within the

time provided by law shall be paid upon the expiration of such time, without further

obligation to such ticketholder, as follows: (1) In the case of running and harness races, beginning July 1, 1997 50% of those

sums shall be paid to the Racing Commission for deposit in the general fund of the

State and disposition in accordance with section 4 of P.L.1997, c. 29 ( C.5:5-68.1 ); (2) In the case of running races, 50% of those sums shall be paid to the commission

and set aside in the special trust account established pursuant to section 46b.(1)(e) and section 46b.(2)(e) of P.L.1940, c. 17 ( C.5:5-66 ); and (3) In the case of harness races, 25% of those sums shall be retained by the permitholder

to supplement purses for sire stakes races on which there is parimutuel wagering,

and 25% shall be retained by the permitholder to supplement overnight purses unless otherwise provided by a contractual agreement authorized under section 11 of P.L.2013, c. 266 ( C.5:5-188 ) . h. No admission or amusement tax, excise tax, license or horse racing fee of any kind

shall be assessed or collected from the authority or a lessee of the authority by

the State of New Jersey, or by any county or municipality, or by any other body having

power to assess or collect license fees or taxes. i. Any horse race meeting and the parimutuel system of wagering upon the results of

horse races held at such race meeting shall not under any circumstances, if conducted

as provided in the act and in conformity thereto, be held or construed to be unlawful,

other statutes of the State to the contrary notwithstanding. j. Each employee of the authority or a lessee of the authority engaged in the conducting

of horse race meetings shall obtain the appropriate license from the Racing Commission,

subject to the same terms and conditions as is required of similar employees of other

permitholders. The Racing Commission may suspend any member of the authority upon approval of the

Governor and the license of any employee of the authority or a lessee of the authority

in connection with the conducting of horse race meetings, pending a hearing by the

Racing Commission, for any violation of the New Jersey laws regulating horse racing

or any rule or regulation of the commission. Such hearing shall be held and conducted in the manner provided in said laws. k. Notwithstanding any other provision of law, rule, or regulation to the contrary,

if the authority shall enter into an agreement with a private entity to lease a racetrack

facility it owns to that entity, it may further agree with that entity to jointly

operate the facility during a transitionary period. The transitionary period shall only last: (1) until the private entity lessee has been fully licensed by the New Jersey Racing

Commission and has received all necessary permits to conduct future horse race meetings

at the racetrack in the manner and subject to compliance with the standards set forth

in P.L.1940, c. 17 ( C.5:5-22 et seq. ), and the rules, regulations, and conditions prescribed by the New Jersey Racing

Commission thereunder; or (2) for one year from the date that the lease agreement is signed, whichever is shorter. The New Jersey Racing Commission may extend the transitionary period for a reasonable

time frame beyond one year from the date that the lease agreement is signed, however

under no circumstances can the transitionary period extend beyond two years from the

date that the lease agreement is signed. At the expiration of the transitionary period and any extension granted by the New

Jersey Racing Commission, the private entity lessee shall be required to have obtained

all the necessary permits and licenses in the manner and subject to compliance with

the standards set forth in P.L.1940, c. 17 ( C.5:5-22 et seq. ), and the rules, regulations, and conditions prescribed by the New Jersey Racing

Commission thereunder. During this transitionary period, the private entity lessee shall be permitted to

conduct horse race meetings and wagering through its own employees or through the

authority's employees, provided that the authority or the private entity lessee holds

a permit issued pursuant to section 30 of P.L.1940, c. 17 ( C.5:5-50 ). During this transitionary period, the authority may also assign any portion of the

proceeds it receives from the operation of the leased racetrack to the private entity

lessee. During the transitionary period, the private entity lessee and the authority must

remain, at all times, in compliance with P.L.1940, c. 17 ( C.5:5-22 et seq. ), except that the private entity need not obtain a permit pursuant to section 30

of P.L.1940, c. 17 ( C.5:5-50 ) if the authority has been granted one by the New Jersey Racing Commission. 1

N.J.S.A. § 5:5-88.