[First Reprint] SENATE, No. 1811

STATE OF 214th LEGISLATURE

INTRODUCED MARCH 16, 2010

Sponsored by: Senator JENNIFER BECK District 12 (Mercer and Monmouth) Senator PAUL A. SARLO District 36 (Bergen, Essex and Passaic)

Co-Sponsored by: Senators Kyrillos, O'Toole and Bateman

SYNOPSIS Reduces 2010 minimum racing dates; makes various changes to breeders’ awards during 2010; authorizes certain loans.

CURRENT VERSION OF TEXT As reported by the Senate State Government, Wagering, Tourism & Historic Preservation Committee on May 13, 2010, with amendments.

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1 1 AN ACT concerning [the annual number of Thoroughbred horse 2 race dates required to be scheduled by Monmouth Park 3 Racetrack and ] horse racing1 and 4 amending P.L.2001, c.199 and P.L.1992, c.19. 5 6 BE IT ENACTED by the Senate and General Assembly of the State 7 of New Jersey: 8 9 1. Section 30 of P.L.2001, c.199 (C.5:5-156) is amended to 10 read as follows: 11 30. a. The permit holder at Monmouth Park and the 12 thoroughbred permit holder at Meadowlands Racetrack together 13 shall schedule (1) no fewer than 120 thoroughbred race dates in the 14 aggregate in each of calendar years 2004 through 2007; (2) no 15 fewer than 141 thoroughbred race dates in the aggregate in each of 16 calendar years 2008 through 2016, except that in calendar year 2010 17 the permit holder at Monmouth Park and the thoroughbred permit 18 holder at Meadowlands Racetrack may schedule no fewer than 71 19 race dates in the aggregate and all to take place at Monmouth Park; 20 and (3) beginning in calendar year 2017 and in each calendar year 21 thereafter, no fewer than 141 thoroughbred race dates in the 22 aggregate, provided that in calendar year 2017 and in each calendar 23 year thereafter the permit holders may schedule fewer than 141 24 thoroughbred race dates in the aggregate if the commission 25 determines, upon application by the permit holders, that scheduling 26 fewer dates in that calendar year is in the best interest of the racing 27 industry and the State. In making its determination, the commission 28 shall consider all factors, including, but not limited to, handle, 29 number of starters, interstate competition, and export marketability. 30 Notwithstanding the foregoing in (3), in no calendar year shall the 31 permit holders schedule, in the aggregate, fewer than 120 32 thoroughbred race dates. 33 b. The standardbred permit holder at Meadowlands Racetrack 34 shall schedule annually no fewer than 151 standardbred race dates, 35 except that the standardbred permit holder may decrease the annual 36 number of scheduled standardbred race dates to no fewer than 141 37 standardbred race dates upon mutual written agreement with the 38 representative horsemen's organization. 39 c. The permit holders at Freehold Raceway shall schedule 40 annually no fewer than 192 standardbred race dates, except that the 41 permit holders may decrease the annual number of scheduled race 42 dates to no fewer than 168 standardbred race dates upon mutual 43 written agreement with the representative horsemen's organization. 44 d. Notwithstanding subsection a. of this section, the permit

EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law.

Matter underlined thus is new matter. Matter enclosed in superscript numerals has been adopted as follows: 1Senate SSG committee amendments adopted May 13, 2010.

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1 holder at Monmouth Park and the thoroughbred permit holder at 2 Meadowlands Racetrack may schedule 120 thoroughbred race dates 3 in the aggregate in each calendar year from 2004 through 2007 only 4 if the thoroughbred permit holder at Meadowlands Racetrack or the 5 permit holder at Monmouth Park guarantee in each calendar year 6 from 2004 through 2007 at least $4,200,000 in thoroughbred stakes 7 at Meadowlands Racetrack and Monmouth Park, and guarantee the 8 average daily overnight purses for thoroughbred race meetings at 9 the following levels: (1) at least $300,000 at Meadowlands 10 Racetrack in each calendar year from 2004 through 2007; (2) for the 11 traditional meet at Monmouth Park, at least $320,000 in calendar 12 year 2004, at least $325,000 in calendar year 2005, at least 13 $330,000 in calendar year 2006 and at least $335,000 in calendar 14 year 2007; and (3) for the 18-day supplemental meet at Monmouth 15 Park, at least $300,000 in each calendar year from 2004 through 16 2006. In any calendar year from 2004 through 2007 in which the 17 permit holder at the Meadowlands Racetrack or the permit holder at 18 Monmouth Park, as appropriate, fails to guarantee the required 19 minimum for thoroughbred stakes or the required minimum in 20 average in daily overnight purses pursuant to this subsection, the 21 permit holder at Monmouth Park and the thoroughbred permit 22 holder at Meadowlands Racetrack together shall schedule no fewer 23 than 141 thoroughbred race dates in the aggregate in that calendar 24 year. 25 (cf: P.L.2009, c.92, s.1) 26 27 2. Section 5 of P.L.1992, c.19 (C.5:12-195) is amended to read 28 as follows: 29 5. A permit holder which wishes to conduct casino 30 simulcasting shall request the approval of the New Jersey Racing 31 Commission in its annual application for horse race meeting dates 32 filed with that commission pursuant to section 23 of P.L.1940, c.17 33 (C.5:5-43), or, if applying between the submittal of annual 34 applications, through such supplemental application as that 35 commission shall deem appropriate. The New Jersey Racing 36 Commission shall not approve the request of any permit holder to 37 conduct casino simulcasting unless the permit holder will conduct a 38 number of live racing programs during the period for which the 39 permit is issued which is equal to the following: 40 a. in the case of harness races, each permit holder shall conduct 41 at least the number of live racing programs required under 42 subsections b. and c. of section 30 of P.L.2001, c.199 (C.5:5-156); 43 and 44 b. in the case of running races, Monmouth Racetrack shall 45 conduct at least the same number of live racing programs conducted 46 in 1991 and each of the other permit holders conducting running 47 races shall conduct at least five live racing programs, except that in 48 calendar year 2010 Monmouth Racetrack may conduct at least 71

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1 live racing programs and Meadowlands Racetrack may conduct zero 2 live racing programs. 3 For the purpose of satisfying the requirements of this section for 4 the conduct of live racing programs, any live racing program or part 5 thereof which is cancelled because of weather or another act of God 6 shall be deemed to have been conducted, subject to the approval of 7 the New Jersey Racing Commission. 8 (cf: P.L.2009, c.92, s.2) 9 10 13. Notwithstanding the provisions of any other law to the 11 contrary, of the monies distributed in calendar years 2009 and 2010 12 for purses and programs designed to aid the horsemen pursuant to: 13 section 46(a)(4) of P.L.1940, c.17 (C.5:5-66), 14 section 38(a)(4)(a) of P.L.1992, c.19 (C.5:5-126), 15 section 38(b)(4)(a) of P.L.1992, c.19 (C.5:5-126), 16 section 38(c)(2)(a) of P.L.1992, c.19 (C.5:5-126), and 17 section 7(f)(1)(b) of P.L.1971, c.137 (C.5:10-7), 18 the Standardbred Breeders’ and Owners’ Association of New 19 Jersey is hereby authorized to utilize up to a total of $3,000,000 20 thereof for a grant to the New Jersey Sports and Exposition 21 Authority to promote financially the continued viability and success 22 of standardbred racing at the Meadowlands Racetrack and the 23 continued viability and success of thoroughbred racing at 24 .1 25 26 14. Notwithstanding the provisions of any other law to the 27 contrary, of the monies distributed in calendar years 2009 and 2010 28 for purses and programs designed to aid the horsemen pursuant to: 29 section 46(b)(1)(d) of P.L.1940, c.17 (C.5:5-66), 30 section 46(b)(2)(d) of P.L.1940, c.17 (C.5:5-66), 31 section 38(a)(4)(b) of P.L.1992, c.19 (C.5:5-126), 32 section 38(b)(4)(b) of P.L.1992, c.19 (C.5:5-126), 33 section 38(c)(2)(b) of P.L.1992, c.19 (C.5:5-126), and 34 section 7(f)(2)(b) of P.L.1971, c.137 (C.5:10-7), 35 the New Jersey Thoroughbred Horsemen’s Association is hereby 36 authorized to utilize up to a total of $2,000,000 thereof for a loan to 37 the New Jersey Sports and Exposition Authority for use as purse 38 money in calendar year 2010 at Monmouth Park Racetrack. The 39 loan shall be repaid pursuant to the contract between the 40 Thoroughbred Horsemen’s Association and the authority entered 41 into on March 15, 2010.1 42 43 15. Notwithstanding the provisions of section 7(f)(2) of 44 P.L.1971, c.137 (C.5:10-7) or any other law to the contrary, if any 45 purse underpay exists on November 21, 2010 in connection with 46 thoroughbred racing at Monmouth Park Racetrack in calendar year 47 2010, the New Jersey Sports and Exposition Authority shall

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1 distribute any such underpay on or before January 15, 2011 to the 2 New Jersey Thoroughbred Horsemen’s Association for programs 3 designed to aid the New Jersey thoroughbred horsemen in calendar 4 year 2011. The authority is hereby authorized to recapture any 5 purse overpay up to $1,000,000 in connection with thoroughbred 6 racing at Monmouth Park Racetrack in calendar years 2010 and 7 2011.1 8 9 16. Notwithstanding the provisions of section 46(b)(1)(e) of 10 P.L.1940, c.17 (C.5:5-66) or any other law to the contrary, during 11 2010, and during that portion of 2011 which precedes the start of 12 the regular 2011 thoroughbred racing season in New Jersey, funds 13 in the special trust account established by that section 46(b)(1)(e) 14 may be used to pay awards to breeders and owners of registered 15 New Jersey bred horses who earn portions of purses in races at an 16 out-of-State racetrack even if a surplus in the special trust account 17 does not exist for those races conducted at an out-of-State racetrack 18 during the period of time which shall begin 15 days after the end of 19 thoroughbred racing at Monmouth Park Racetrack in the year 2010 20 and end 15 days prior to the start of the 2011 thoroughbred meet at 21 Monmouth Park Racetrack.1 22 23 17. Notwithstanding the provisions of section 46(b)(2)(e) of 24 P.L.1940, c.17 (C.5:5-66) or any other law to the contrary, during 25 2010 and 2011, awards to breeders and owners of registered New 26 Jersey bred horses who earn portions of purses in races at an out-of- 27 State racetrack may be paid pursuant to that section 46(b)(2)(e) 28 even if a surplus of these funds in the special trust account does not 29 exist in that calendar year.1 30 31 18. Notwithstanding the provisions of section 38(a)(4)(b) of 32 P.L.1992, c.19 (C.5:5-126) or any other law to the contrary, the 33 New Jersey Sports and Exposition Authority is hereby authorized to 34 use the underpay in purses from the 2009 thoroughbred meet 35 totaling $2,270,000 to pay purses for the thoroughbred meet at 36 Monmouth Park Racetrack beginning on September 11, 2010 and 37 concluding on November 21, 2010.1 38 39 19. Notwithstanding the provisions of section 29 of P.L.1940, 40 c.17 (C.5:5-49) or any other law to the contrary, during the year 41 2010, the New Jersey Sports and Exposition Authority shall not pay 42 the 25 percent purse enhancement for thoroughbred races conducted 43 at Monmouth Park Racetrack, and funds that would have been used 44 to increase purses by 25 percent as provided by that section 29, but 45 not more than $2,250,000, shall be used, instead, to increase purses 46 payable to New Jersey bred foals finishing in first, second, or third 47 place in open races by 20 percent, but not more than $20,000 per

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1 horse per race, with any amount not used for that purpose to be paid 2 to the Thoroughbred Breeders’ Association of New Jersey not later 3 than two weeks after the last day of the 2010 Monmouth Park meet 4 and used by the association to pay incentive awards to breeders and 5 owners.1 6 7 110. Notwithstanding the provisions of any other law to the 8 contrary, if the New Jersey Injury Compensation 9 Board determines that a surplus exists in the monies collected from 10 the thoroughbred industry pursuant to subsection b. of section 6 of 11 P.L.1995, c.329 (C.34:15-134) after the insurance or self-insurance 12 coverage for calendar year 2010 and all additional costs necessary 13 to carry out the board’s other duties in calendar year 2010 have 14 been paid, the board is hereby authorized to utilize $2,000,000 from 15 the surplus monies existing in calendar year 2010 to make a loan of 16 $2,000,000 in calendar year 2010 to the Thoroughbred Breeders’ 17 Association of New Jersey. The loan shall have a term of four 18 years commencing on January 1, 2012 and be paid at an annual 19 interest rate of 4 percent. The Thoroughbred Breeders’ Association 20 of New Jersey shall use $1,500,000 of this loan to pay those 21 breeders’ awards that accrued in calendar years 2008 and 2009 that 22 remain unpaid and $500,000 of this loan to pay awards to breeders 23 and owners of registered New Jersey bred horses who earn portions 24 of purses in races conducted at an out-of-State racetrack during the 25 period of time that shall begin 15 days after the end of thoroughbred 26 racing at Monmouth Park Racetrack in 2010 and end 15 days prior 27 to the start of the 2011 thoroughbred meet at Monmouth Park 28 Racetrack. The Thoroughbred Breeders’ Association of New Jersey 29 or the association’s successor shall repay any such loan, interest and 30 costs to the board utilizing all sources of revenue, including those 31 monies distributed to it pursuant to law. In the years 2012 through 32 2015, any surplus may be saved to repay the loan from the 33 Thoroughbred Breeders’ Association of New Jersey’s statutory 34 sources and other revenue instead of out-of-State awards.1 35 36 1[3.] 11.1 This act shall take effect immediately.