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RULE PROPOSALS
VOLUME 44, ISSUE 15
ISSUE DATE: AUGUST 6, 2012
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
LEGALIZED GAMES OF CHANCE CONTROL COMMISSION

 

44 N.J.R. 2040(a)

Proposed Amendments: N.J.A.C. 13:47-3.6, 4.3, 6.11, 6.20, 8.3, 8.10, 8.15, and 8.38
Proposed Repeal: N.J.A.C. 13:47-3.11

Bingo and Raffle; Separate Application and License; Special Senior Citizen Bingo License; Notice to Clerk; Duties of Municipal Clerk; Computation of Fees; Notice of Denial; License Issuance; Frequency and Location of Games; Prohibited Prizes; Amount of Prize Limitation; Maximum Charge; Method of Payment; Printer of Tickets; Certificate; Special Door-Prize Raffle; Instant Raffle Game: Sales; Credit Prohibition; Disposition
 
Authorized By: Legalized Games of Chance Control Commission, Eric T. Kanefsky, Acting Executive Officer and Acting Director, Division of Consumer Affairs.
 
Authority: N.J.S.A. 5:8-6.
 
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
 
Proposal Number: PRN 2012-104.
 
Submit comments by October 5, 2012 to:
   Legalized Games of Chance Control Commission
   c/o Eric T. Kanefsky, Acting Executive Officer
   124 Halsey Street
   P.O. Box 46000
   Newark, New Jersey 07101
 
The agency proposal follows:
 
Summary
N.J.A.C. 13:47-3.11 requires a registered organization holding a special door prize raffle to notify the clerk of the municipality in which the raffle is held. An organization does not need to have a license to hold a special door prize raffle. As there is no license requirement it is not necessary for a municipal clerk to know when such a raffle is being held. The Legalized Games of Chance Control Commission (Commission) proposes to repeal N.J.A.C. 13:47-3.11 to remove this notification requirement. The Commission proposes to amend N.J.A.C. 13:47-3.6 and 8.15 to remove references to the deleted notification requirement.
N.J.A.C. 13:47-4.3 requires a municipal clerk to forward to the Commission an organization's application for a municipal license to hold a raffle or bingo game in the municipality. Under the rules, an application is approved by the Commission if it has not taken any action on the application within 15 business days. The Commission proposes to shorten this time frame to 14 calendar days, thus permitting a municipal clerk to issue a license to an organization more quickly.
N.J.A.C. 13:47-6.11 establishes that an off-premises 50-50 raffle may be held only once a month. So that organizations that hold such raffles may increase the amount of money they raise through such raffles, the Commission proposes to amend the rule to allow off-premises 50-50 raffles to be held twice a month.
N.J.A.C. 13:47-6.20 sets the maximum cash prize amount for instant raffle games at $ 500.00. N.J.A.C. 13:47-8.3 sets a $ 500.00 limit for any prize awarded in a non-draw raffle. The Commission proposes to amend these rules to increase the prize limit to $ 1,500. Increasing the prize limit will help to make playing such raffles more enticing, thus increasing the number of people who purchase chances to win such raffles and the amount of money raised through such raffles. N.J.A.C. 13:47-8.3 also sets a price limit of $ 1.00 for an instant raffle game ticket. The Commission proposes to increase this limit to $ 3.00. The heading of N.J.A.C. 13:47-8.3 is amended to delete "method of payment" as that topic is not discussed in this section.
N.J.A.C. 13:47-8.10 requires that a certificate indicating the number of tickets printed for a raffle be sent to the Commission by organizations licensed to hold raffles. The Commission proposes to amend this rule so that organizations will no longer be required to submit this certificate with the report of operations.
N.J.A.C. 13:47-8.38 sets forth standards for the sale of instant raffle games, which are non-draw raffle games in which a player purchases tickets that are drawn or selected at random from a single finite deal. The winner is determined by a previously determined prize designation that has been obscured from the player's view until a tab has been removed. The Commission proposes to amend the rule to clarify that the only entities that may sell equipment for instant raffle games used in New Jersey are those that are licensed as instant raffle equipment suppliers. The proposed amendments also require that instant raffle game suppliers include a specific statement on invoices for sales.
The Commission has determined that the comment period for this proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this proposal is excepted from the rulemaking calendar requirement.
 
Social Impact
The proposed amendments and repeal ease reporting requirements for organizations licensed to hold raffles and bingo games, will speed up the issuance of municipal licenses to such organizations, allow specific raffles to be held more often, and increase the amount that may be awarded in specific raffles. These amendments will either decrease burdens on organizations or make participating in raffles or bingo games more attractive, which is expected to increase the proceeds such organizations obtain from raffles or bingo games. As these proceeds are used to fund the charitable and public spirited purposes of these organizations, the proposed amendments will benefit society by increasing the funds available to support the authorized purposes.
 
Economic Impact
The proposed amendments and repeal will decrease costs incurred by licensed organizations by removing reporting requirements for special door prize raffles and by removing the requirement that organizations submit a certificate regarding the number of tickets printed to the Commission. The proposed amendments and repeal will also have a beneficial economic impact on organizations in that they will be permitted to hold off-premises 50-50 raffles twice as often, which will increase the funds organizations can earn from such raffles. The proposed amendments and repeal will not have any other economic impact.
 
Federal Standards Statement
A Federal standards analysis is not required because the proposed amendments and repeal are governed by N.J.S.A. 5:8-6 and are not subject to any Federal requirements or standards.
 
Jobs Impact
The Commission does not believe that the proposed amendment along with the proposed repeal will increase or decrease the number of jobs in New Jersey.
 
Agriculture Industry Impact
The Commission does not believe that the proposed amendment along with the proposed repeal will have any impact on the agriculture industry in the State.
 
Regulatory Flexibility Analysis
The majority of instant raffle equipment suppliers are small entities that may be considered "small businesses" under the Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq. The proposed amendments and repeal will have the same economic impact on small businesses as it does on all suppliers as outlined in the Economic Impact statement. Equipment suppliers will not need to employ any professional services to comply with the requirements of the proposed amendments and repeal. The proposed amendments and repeal do not impose recordkeeping or reporting requirements, but do impose compliance requirements as detailed in the Summary above. The proposed amendments and repeal ensure that equipment suppliers are selling instant raffle games only to licensed organizations or other suppliers. Therefore, no differing compliance requirements are imposed upon equipment suppliers based on the size of the business.
[page=2041] Almost all organizations that are licensed to hold raffles or bingo games are small entities that may be considered "small businesses" under the Act. The proposed amendments and repeal will have the same economic impact on small businesses as it does on all such organizations as outlined in the Economic Impact statement. Organizations will not need to employ any professional services to comply with the requirements of the proposed amendments and repeal. The proposed amendments and repeal do not impose recordkeeping requirements, but do impose compliance and reporting requirements as detailed in the Summary above. The proposed amendments and repeal reduce reporting burdens and benefits organizations by decreasing the time they must wait for the issuance of a municipal license. The proposed amendments and repeal also make certain raffles more attractive, which will increase the funds organizations earn from such raffles. Accordingly, no differing compliance requirements are imposed based upon the size of a business.
 
Housing Affordability Impact Analysis
The proposed amendments and repeal will have an insignificant impact on affordable housing in New Jersey and there is an extreme unlikelihood that the rules would evoke a change in the average costs associated with housing because the proposed amendments and repeal concern raffles and bingo games.
 
Smart Growth Development Impact Analysis
The proposed amendments and repeal will have an insignificant impact on smart growth and there is an extreme unlikelihood that the rules 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 amendments and repeal concern raffles and bingo games.
 
Full text of the proposal follows: (additions indicated in boldface thus; deletions indicated in brackets [thus]):
 
13:47-3.6   Bingo and raffle; separate application and license; special senior citizen bingo license
 
(a)-(c) (No change.)
 
(d) In the case of a special door prize raffle, see [N.J.A.C. 13:47-3.11, Notice to clerk, and] N.J.A.C. 13:47-8.15, Special door-prize raffle.
 
(e)-(f) (No change.)
 
13:47-3.11   [Notice to clerk] (Reserved)
 
[(a) Before conducting a special door prize raffle for which no license is required, the registered organization shall notify the clerk of the municipality in which the door prize will be awarded.
 
(b) The notice shall be in writing and in duplicate signed by an officer, giving the following:
 
1. The name and identification number of the organization;
 
2. The place and date for the special door prize raffle or raffles;
 
3. A description of the prizes and the retail value thereof;
 
4. Names of the donors of the prizes.
 
(c) The notice shall be sent at least one week in advance of the raffle.
 
(d) The municipal clerk, on receipt of the notice, shall forthwith forward one copy to the Control Commission.]
 
13:47-4.3   Duties of municipal clerk; computation of fees; notice of denial; license issuance
 
(a) (No change.)
 
(b) If the Control Commission has not taken action on the application within [15 business] 14 calendar days after the municipality has mailed the application and licensing fee to the Control Commission, the application is deemed approved.
 
(c) (No change.)
 
SUBCHAPTER 6.    GENERAL CONDUCT OF GAMES OF CHANCE
 
13:47-6.11   Frequency and location of games
 
(a) No registered organization shall conduct any game(s) of chance more often than as set forth in this section:
 
1.-4. (No change.)
 
5. Off-premises [50/50] 50-50 cash draw raffles shall not be conducted more often than [once] twice in any calendar month.
 
6.-10. (No change.)
 
(b)-(d) (No change.)
 
13:47-6.20   Prohibited prizes
 
(a) (No change.)
 
(b) A prize consisting of cash or money shall not be offered or awarded except in the case of:
 
1.-2. (No change.)
 
3. An instant raffle game having a maximum prize amount of $[500.00]1500.00 for any one ticket, held, operated, and conducted pursuant to N.J.A.C. 13:47-8;
 
4.-5. (No change.)
 
SUBCHAPTER 8.    CONDUCT OF RAFFLES
 
13:47-8.3   Amount of prize limitation; maximum charge[; method of payment]
 
(a)-(c) (No change.)
 
(d) No prize having a retail value greater than $[500.00]1500.00 shall be offered or awarded in any raffle not conducted by drawing.
 
(e) A single opportunity to participate in any instant raffle game shall not cost more than $[1.00]3.00.
 
(f)-(g) (No change.)
 
13:47-8.10   Printer of tickets; certificate
 
(a) (No change.)
 
[(b) One such certificate shall be attached to each copy of Form 8R-A, Report of Raffles Operations.]
 
[(c)] (b) (No change in text.)
 
13:47-8.15   Special door-prize raffle
 
(a) A "special door-prize raffle" is one [which] that may be conducted without a license under the following conditions:
 
1.-5. (No change.)
 
6. No game of chance other than the special door prize raffle may be held or conducted on the occasion; and
 
7. All net proceeds of the occasion must be devoted to authorized purposes[;].
 
[8. Notice of the special door prize raffle has been given to the municipal clerk.]
 
13:47-8.38   Instant raffle game: sales; credit prohibition; disposition
 
(a)-(c) (No change.)
 
(d) Entities selling instant raffle equipment for use in this State must be licensed as instant raffle equipment suppliers.
 
(e) Licensed raffle equipment suppliers must include the following statement on or attached to invoices for all sales of instant raffle games:
 
"Sales of instant raffle games in the State of New Jersey are governed by the Raffles Licensing Law, N.J.S.A. 5:8-50 et seq., and the rules governing games of chance, N.J.A.C. 13:47. Only organizations registered with the Legalized Games of Chance Control Commission and holding a valid license from the municipality to conduct instant raffles, or entities licensed by the Commission as raffle equipment suppliers may purchase instant raffle games that are intended for use in New Jersey. Violations are punishable with penalties of up to $ 7,500 for the first offense and up to $ 15,000 for second and subsequent offenses. Criminal sanctions may also apply."





 

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