New Jersey § 5:5-130

§ 5:5-130.

a. The commission is authorized to issue a license to the authority to permit off-track

wagering at a specified facility, upon application of the authority and in accordance

with the provisions of this act. A license issued pursuant to this act shall be valid for a period of one year. The commission shall issue a license pursuant to this subsection only if the permit

holder at Monmouth Park and the thoroughbred and standardbred permit holders at Meadowlands

Racetrack schedule at least the minimum number of race dates required in section 30

of this act, P.L.2001, c. 199 ( C.5:5-156 ), and it is satisfied that the authority has entered into a participation agreement

with each and every other person, partnership, association, corporation, or authority

or the successor in interest to such person, partnership, association, corporation

or authority that: (1) held a valid permit to hold or conduct a race horse meeting within this State

in the calendar year 2000; (2) has complied with the terms of such permit; and (3) is in good standing with the commission and the State of New Jersey. An off-track wagering license may not be transferred or assigned to a successor in

interest without the approval of the commission and the Attorney General, which approval

may not be unreasonably withheld. b. (1) As part of the license application process, any participation agreement entered

into for the purposes of subsection a. of this section, or any modification to the

agreement made thereafter, shall be reviewed by the commission and the Attorney General

to determine whether the agreement meets the requirements of this act and shall be

subject to the approval of the commission and the Attorney General. Notwithstanding any other law, rule, or regulation to the contrary, a permit holder

subject to a participation agreement entered into prior to the effective date of P.L.2011, c. 26 shall have made progress since the signing of that agreement toward establishing

the permit holder's share of the 15 off-track wagering facilities authorized pursuant

to section 10 of P.L.2001, c. 199 ( C.5:5-136 ), provided that any facility that has not received a license under section 7 of P.L.2001, c. 199 ( C.5:5-133 ) on the effective date of this act, P.L.2011, c. 205 1 shall be subject to a cash deposit, a bond, or an irrevocable letter of credit to

be posted or deposited by the permit holder in the amount of $1 million for each facility

in the permit holder's share that remains to be licensed, which deposit shall be paid

to the commission within 180 days of the effective date of this act, P.L.2011, c. 205 . A permit holder making a deposit or posting a bond, or irrevocable letter of credit,

in connection with one or more of the off-track wagering facilities in the permit

holder's share that remain to be established shall obtain the license and make substantial

progress in the commission's judgment pursuant to the progress benchmarks issued by

the commission and the New Jersey Economic Development Authority under subsection

e. of this section toward establishing the off-track wagering facility or facilities

within one year of making the deposit, or posting the bond, or irrevocable letter

of credit, and if so the deposit, bond, or irrevocable letter of credit shall be returned

to the permit holder at the end of the one-year period, or the amount deposited or

posted shall be forfeited and distributed by the commission to the representative

horsemen's organization in this State for use in establishing an off-track wagering

facility or facilities under paragraph (2) of this subsection. Any facility that has not been licensed on the effective date of this act, P.L.2011, c. 205, and for which a deposit, bond, or irrevocable letter of credit is not made or posted,

and any facility for which a deposit, bond, or irrevocable letter of credit is made

or posted which has not been licensed and made progress toward establishment within

one year of making such deposit or posting the bond, or irrevocable letter of credit, shall no longer be considered as part of the permit holder's share, and shall be

available to be established by a horsemen's organization in this State as provided

by paragraph (2) of this subsection. However, if the commission finds that a permit holder is making progress toward

obtaining an off-track wagering license and establishing an off-track wagering facility

according to specified benchmarks developed by the commission, the commission may

allow a permit holder to retain its share of the off-track wagering facilities to

be established, provided the permit holder continues to make progress on an annual

basis. For the purposes of this section, a permit holder shall be deemed to have made progress

toward establishing its share of off-track wagering facilities , and shall not be subject to a cash deposit or be required to post a bond or irrevocable

letter of credit as set forth in this section, if it has entered into an agreement, in connection with good faith negotiations over

the sale or lease of a racetrack under the permit holder's control, to transfer allocated

off-track wagering licenses or facilities to an individual or entity that is a bona

fide prospective purchaser or lessee, or has demonstrated to the satisfaction of the

Commission that the execution of such an agreement is imminent based upon the portions

of such an agreement agreed upon in principle by the parties as evidenced by a memorandum

of understanding or similar accord , or has demonstrated to the satisfaction of the commission that negotiations concerning

such an agreement have been unsuccessful and the permit holder has plans for soliciting

new sources of interest or entering into new negotiations that, in the judgment of

the commission, have a reasonable likelihood of resulting in a successful conclusion . (2) The commission is authorized to issue a license or licenses to any horsemen's

organization in this State, for the establishment of one or more of the remaining

off-track wagering facilities in partnership with other horsemen's organizations in

this State, the authority, or private investors, in accordance with all applicable

provisions of the “Off-Track and Account Wagering Act,” P.L.2001, c. 199 ( C.5:5-127 et seq. ). Notwithstanding any provision of this paragraph to the contrary, a representative

standardbred horsemen's organization shall have the right to establish the off-track

wagering facilities not established by the permit holder at Freehold Raceway as provided

under paragraph (1) of this subsection, and to receive any deposit, bond, or irrevocable

letter of credit forfeited by that permit holder for the establishment of one or more

of those off-track wagering facilities, except that if a representative standardbred

horsemen's organization does not make application therefor, or fails to make progress

in establishing the facility or facilities as provided herein, any amounts received

shall be returned as provided in this paragraph and the facility or facilities shall

be available to be established in accordance with subsection c. of this section. A horsemen's organization shall make progress on an annual basis in establishing

an off-track wagering facility from the date the organization is eligible to apply

for an initial license pursuant to this subsection, provided that any facility that

has not received a license under section 7 of P.L.2001, c. 199 ( C.5:5-133 ) within a reasonable timeframe from the date the horsemen's organization became eligible

to apply for its initial license shall no longer be considered eligible to be established

by a horsemen's organization under this paragraph, and shall be available to be established

by a well-suited entity pursuant to subsection c. of this section. When a horsemen's organization under this paragraph has received the sum of $1 million

as provided under paragraph (1) of this subsection, the horsemen's organization shall

have one year from the date the funds are allocated to it by the commission to obtain

a license and make substantial progress in establishing the off-track wagering facility

or facilities, provided that, if the horsemen's organization fails to make progress

within that year, in the commission's judgment pursuant to the progress benchmarks

issued by the commission and the New Jersey Economic Development Authority under subsection

e. of this section, the horsemen's organization shall be liable to return to the commission

the funds allocated to it in their entirety at the end of the one-year period, and

the commission shall return such funds to the permit holder originally making the

deposit, or posting the bond or irrevocable letter of credit, to be used for capital

improvements at the permit holder's racetrack. c. With respect to any licenses that remain to be issued under paragraph (2) of subsection

b. of this section, the commission is also authorized to issue a license to a well-suited

entity to permit off-track wagering at a specified facility, upon application of the

entity and in accordance with the provisions of this act and the provisions of section

14 of P.L.1940, c. 17 ( C.5:5-34 ). A license issued pursuant to this act shall be valid for a period of one year and,

if the licensed entity is not a permit holder in this State, the license shall be

contingent upon the licensee showing simulcast New Jersey races and allowing wagering

thereon at the off-track wagering facility, subject to the rules and regulations of

the commission, and shall be issued only if the permit holders schedule at least the

minimum number of race dates required in section 30 of P.L.2001, c. 199 ( C.5:5-156 ). In assessing the qualifications of an entity to establish and conduct an off-track

wagering facility, the commission shall apply substantially similar standards and

criteria to those applied to the authority, its assignees, and other permit holders

and licensees in the State. These standards and criteria shall enable the commission to determine by clear and

convincing evidence in the opinion of the commission that the person or persons applying

for licensure on behalf of the entity are well-suited to receive licensure, and shall

include, but may not be limited to: (1) proof of financial resources sufficient to enable the entity to establish and

conduct a quality off-track wagering facility or facilities with appropriately staffed

and managed operations; (2) evidence of good character, honesty, competency and integrity; (3) the absence of a conviction for a crime involving fraud, dishonesty or moral turpitude;

and (4) any additional standards and criteria the commission may establish by rule or

regulation in accordance with this act. d. (1) The commission, in consultation with the State Treasurer, shall develop a process

by which the commission will accept bids for each off-track wagering license to be

awarded under this act, P.L.2001, c. 199 . An off-track wagering licensee and an entity interested in establishing an off-track

wagering facility and being licensed as an off-track wagering licensee shall be eligible

to submit a bid. The bidding process shall include procedures for the establishment of a minimum

bid threshold, for the selection of a successful bidder and, when the successful bidder

is not yet licensed as an off-track wagering licensee, for the awarding of a bid to

that successful bidder subject to its eligibility to be licensed as an off-track wagering

licensee in compliance with the provisions of this act, P. L.2001, c. 199 . As part of the bidding process, and in addition to submitting a monetary bid, a

bidder shall submit to the commission a conceptual plan of the off-track wagering

facility the bidder intends to establish, which shall include, but may not be limited

to, a description of the proposed facility and the amenities it would offer, and its

proposed or intended location. In selecting a successful bidder, the commission shall consider and balance the

following: (a) the monetary value of the bid in comparison to other bids submitted;

(b) the level of quality of the proposed facility and amenities in striving to be

a first-rate experience for the customer that includes the provision of first-class

dining facilities; (c) the potential of the proposed facility and amenities to generate

greater interest in the horse racing industry and the sport of horse racing in the

State; and (d) the proximity of the bidder's proposed or intended location for the

off-track wagering facility and its impact on other planned or existing off-track

wagering facilities and racetracks in the State. For the purposes of this act, P.L.2001, c. 199, a successful bid shall be conditional upon the successful bidder's compliance with

all the provisions of this act, P.L.2001, c. 199, and the applicable rules and regulations promulgated by the commission. (2) The commission shall consider the amount of a successful bid pursuant to paragraph

(1) of this subsection as a license fee in connection with the issuance of an initial

license to an off-track wagering facility licensee. The initial license fee need not be uniform for all off-track wagering facility

licenses, and may vary depending on the results of the bidding process for each license. The proceeds generated by the initial license fee shall be distributed as follows:

50% to the New Jersey Thoroughbred Horsemen's Association for programs designed to

aid the horsemen, and 50% to the Standardbred Breeders' and Owners' Association of

New Jersey for programs designed to aid the horsemen. e. The commission shall, in consultation with the New Jersey Economic Development

Authority, develop progress benchmarks, within three months of the effective date

of P.L.2011, c. 26, for each off-track wagering licensee to follow for the timely and expeditious establishment

of each off-track wagering facility. Such benchmarks shall provide that a permit holder shall be deemed to have made

progress toward establishing its share of off-track wagering facilities if it has

entered into an agreement, in connection with good faith negotiations over the sale

or lease of a racetrack under the permit holder's control, to transfer allocated off-track

wagering licenses or facilities to an individual or entity that is a bona fide prospective

purchaser or lessee, or has demonstrated to the satisfaction of the Commission that

the execution of such an agreement is imminent based upon the portions of such an

agreement agreed upon in principle by the parties as evidenced by a memorandum of

understanding or similar accord , or has demonstrated to the satisfaction of the commission that negotiations concerning

such an agreement have been unsuccessful and the permit holder has plans for soliciting

new sources of interest or entering into new negotiations that, in the judgment of

the commission, have a reasonable likelihood of resulting in a successful conclusion . The failure of a licensee to meet the benchmarks shall constitute a basis for the

denial by the commission of the renewal of the off-track wagering license, except

that the licensee shall have the right to appeal the commission's decision. 1

L.2011, c. 205, eff. January 17, 2012, retroactive to December 31, 2011.