Hearing Unit Cover and Text
Total Page:16
File Type:pdf, Size:1020Kb
Public Hearing before ASSEMBLY JUDICIARY COMMITTEE Assembly Concurrent Resolution 1 “Proposes constitutional amendment to authorize Legislature to permit by law establishment and operation of casinos in certain counties” LOCATION: Committee Room 12 DATE: March 7, 2016 State House Annex 10:00 a.m. Trenton, New Jersey MEMBERS OF COMMITTEE PRESENT: Assemblyman John F. McKeon, Chair Assemblyman Gordon M. Johnson, Vice Chair Assemblyman Joseph A. Lagana Assemblywoman Elizabeth Maher Muoio Assemblyman Andrew Zwicker Assemblyman Chris A. Brown Assemblyman Michael Patrick Carroll ALSO PRESENT: Miriam Bavati Rafaela Garcia Kate McDonnell Kevin Logan Office of Legislative Services Assembly Majority Assembly Republican Committee Aides Committee Aide Committee Aide Hearing Recorded and Transcribed by The Office of Legislative Services, Public Information Office, Hearing Unit, State House Annex, PO 068, Trenton, New Jersey TABLE OF CONTENTS Page Assemblyman Ralph R. Caputo District 28 6 John Heinz Private Citizen 21 Vicki T. Clark President Cape May County Chamber of Commerce 24 Joseph D. Kelly President Greater Atlantic City Chamber 25 Debra P. DiLorenzo President and CEO Chamber of Commerce Southern New Jersey 26 Sal M. Anderton, Esq. General Counsel Porzio Governmental Affairs, LLC 29 Gordon MacInnes President New Jersey Policy Perspective 29 Anthony Russo Executive Vice President Government Affairs and Communications Commerce and Industry Association of New Jersey 38 APPENDIX Testimony submitted by Vicki T. Clark 1x Testimony submitted by Debra P. DiLorenzo 2x TABLE OF CONTENTS (continued) Page Testimony submitted by Joseph D. Kelly 5x Testimony submitted by Gordon MacInnes 9x Testimony submitted by Sal M. Anderton, Esq. 11x Testimony submitted by Anthony Russo 13x Testimony submitted by Michele N. Siekerka, Esq. President and CEO New Jersey Business and Industry Association 14x Testimony submitted by Assemblyman Chris A. Brown District 2 15x Testimony submitted by Marlene Z. Asselta President Southern New Jersey Development Council 20x pnf:1-49 ASSEMBLYMAN JOHN F. McKEON (Chair): Welcome to everyone. We are going to defer on the regularly scheduled agenda to move forward on the public hearing on ACR-1. So we need to gavel in, so to speak, on that and take attendance; and then gavel out before we get to the regular part of the meeting. MS. GARCIA (Committee Aide): Assemblyman Brown. ASSEMBLYMAN BROWN: Here. MS. GARCIA: Assemblyman Carroll. ASSEMBLYMAN CARROLL: Here. MS. GARCIA: Assemblyman Zwicker. ASSEMBLYMAN ZWICKER: Here. MS. GARCIA: Assemblywoman Muoio. ASSEMBLYWOMAN MUOIO: Here. MS. GARCIA: Assemblyman Lagana. ASSEMBLYMAN LAGANA: Here. MS. GARCIA: Assemblyman Johnson. ASSEMBLYMAN GORDON M. JOHNSON (Vice Chair): Here. MS. GARCIA: Assemblyman McKeon. ASSEMBLYMAN McKEON: Present. I’d like to, again, welcome Assemblyman Brown. I probably made the mistake of telling Michael Patrick Carroll that I missed him (laughter); so don’t make me feel badly, as far as that statement to you, Michael, today. Be good to me. 1 I will take two minutes of time just to, in general, talk about ACR-1. This is now the fifth hearing that this Committee, Judiciary, has had -- number five as it relates to ACR-1; and really, frankly, with only some very important, but relatively minor, straightforward changes. So I’d like everybody to keep in mind that this Committee has heard themselves, as well as any other witness that purports to be before us today. So try to do your best to be brief and succinct. I think we know everyone’s stated position. We know that, in 2006, the gross revenues from the casinos was $5.2 billion; and that in 2015, I think, the number was somewhere around $2.6 billion. Notwithstanding the dedication of the industry, and the men and women who make up those -- make that a part of our very important tourism economy, the proliferation of casinos really all over the place -- in Pennsylvania, New York, Delaware -- are such to have put a dent into that number. There was a five-year plan, that has about a little less than a year left, that has continued to show those revenues having been decreased; and it’s a matter of us having to take action, and frankly, action that probably should have taken place probably five or ten years ago. At the end game, although it’s very important to preserve the economy of that section of the state, let’s not lose mind or set of the fact that, at least, we’re down -- to this point -- about $200 million that comes back to the State for the sake of funding some very, very important programs that relate to property tax relief, that relate to senior programs -- everything from prescription aid, to transportation aid, to other essential 2 services -- and we can’t continue to watch as that important revenue source goes away. The bill, in general terms, requires as follows: If it’s-- Again, with the voters having the final word, there will be two new licenses -- so long as those licensees get a full and complete application in within a 60- day timeframe so it’s not sat on; that those operators will be current Atlantic City operators; that any of the casinos won’t be any closer than 72 miles to Atlantic City. We have on record a full compilation of every town in the state, as well as a map, if anybody has any questions as to where that exact mark is delineated. That those current operators will have to spend no less than $1 billion on acquisition, construction, and development of either of those two casinos to make certain that we just don’t end up with videos in a box, so to speak; and that this is true investment, and will put a dent into what the other states have done; and that the way that the money will be split, if you will -- and, by the way, it has to be at least two separate counties; they can’t both be in Hudson County, by way of example -- 2 percent of the fees will go to host benefit, meaning that either the county or the town that will be hosting the casinos will get that money as it relates to infrastructure and other things to support that; 2 percent of the funds off the top will go to our Thoroughbred industry and Standardbred industry as it relates to supporting that part of our very important tourism economy. And the rest of the money, through-- You know, I don’t, certainly, want to bore you all and go through all those numbers. But in the first fiscal year it will go, after that 4 percent, just as it goes now -- to the current manner in which those revenues come through; and then from year 2 to 16, again, the first $150 3 million -- 50 percent to Atlantic City, and 50 percent on the other side. The second $150 million -- 40 percent to Atlantic City. The third $150 million -- if we should be so lucky that there’s that much -- 30 percent to Atlantic City; and all remaining -- 20 percent to Atlantic City. I won’t get into years 17 to 27 because we’ll all be old by then -- or most of us -- but again, it’s a diminishing number as it relates to the sums to Atlantic City. But letting that all go aside, Atlantic City will never get more than one-third of the total amount. So if that number is $1 billion, even though if that structure would lead to sums that are even greater than that, one-third will be their maximum. The other good news -- again, if you care about all these important programs -- is that the funding for programs that get supported now by that $200 million will never be less than Fiscal Year 2015. So we’ll make sure -- at least today, we’ll hold volley regarding the financial support for those very important programs. So with that as an overview of what the legislation or what the constitutional amendment to be voted on will do, also keep in mind our current tax rate is 8 percent; other states are as high as 50 percent. We’ll see what will happen with that as it gets into the enabling legislation. We’ll see what happens as it relates to the specifics on that $1 billion of investment. We know what the Constitution will say; the details will come through in enabling legislation that will go forward. With us today is the primary sponsor -- who, beyond the five hearings that have been here thus far, has been diligent over the years as it relates to his opinions, and his advocacy, and leadership in expanding the 4 gaming industry in New Jersey to allow us to be competitive -- Ralph Caputo. Ralph, I probably talked longer than I should have; but I gave it an overview. Mr. Brown, again, I welcomed him here. He promises me that although he’ll be given no restriction as it relates to offering his opinion prior to voting -- and I’m going to bet a nickel as to how that vote might go -- that we’re going to limit the questions. This is a public hearing; so the time to let your opinions be known will be when you vote, as opposed to through long questions. So any questions there are -- pointed questions, and I’m going to use the prerogative of the Chair to slow that down if need be. ASSEMBLYMAN CARROLL: Mr. Chairman, we don’t vote at a public hearing, do we? ASSEMBLYMAN McKEON: I don’t know; that’s a good question. Do we have to vote to-- So we don’t even have to vote. So thank you very much; I knew, Michael, I needed you here to remind me of what to do.