Conditional Veto for A2578

7/29/2019 Conditional Veto for A2578

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February 7, 2013

ASSEMBLY SUBSTITUTE FOR

ASSEMBLY BILL NO. 2578

To the General Assembly:

The Assembly Substitute for Assembly Bill No. 2578 would

revise and supplement the Casino Control Act to authorize

Internet gaming through the licensed casinos operating in

Atlantic City. This bill represents an important policy

decision for the residents of New Jersey, and an historic

opportunity to continue the States leadership as a premiere

destination for tourism and entertainment. Such a significant

step must be carefully considered, balancing the benefits of job

creation, economic development, and the continued revitalization

of Atlantic City against the risks of addiction, corruption, and

improper influence. It is my responsibility as Governor to make

these determinations, always mindful of my duty to guarantee the

continued welfare of our families, our neighbors, and the future

generations who will call our State home.

With these goals in mind, I have concluded that now is the

time for our State to move forward, again leading the way for

the nation, by becoming one of the first States to permit

Internet gaming. I authorize this step towards modernizing

Atlantic Citys entertainment attractions cautiously, with

carefully constructed limitations that will ensure the highest

integrity and the most robust oversight. Accordingly, pursuant

to Article V, Section I, Paragraph 14 of the New Jersey

Constitution, I am returning the Assembly Substitute for

Assembly Bill No. 2578 with my recommendations for

reconsideration.


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The importance of the gaming and tourism industries in New

Jersey cannot be overstated. Together, these businesses, and

the tens of thousands of workers they employ, serve as a

constant, critical engine of economic development. Since the

first days of my Administration, I have stressed the need to

confront the complex challenges threatening Atlantic Citys

unrivaled combination of natural seaside beauty, world-class

attractions, and easy access from around the world. For these

reasons, one of my earliest acts as Governor was to establish an

Advisory Commission on Gaming, Sports and Entertainment to study

the issues and to develop a comprehensive approach to preserving

Atlantic Citys stature as a premier resort destination.

Through this effort, and working in collaboration with the

Legislature, my Administration has implemented broad-based

reforms to reinvigorate Atlantic City and create opportunities

for economic growth in the region.

For example, in 2011, I signed into law the landmark

legislation establishing a Tourism District in Atlantic City as

the framework to launch comprehensive initiatives aimed at

addressing blight and public safety. The Tourism District law

has already led to a $30 million marketing plan and the

realignment of State gaming agencies to minimize bureaucracy

while enhancing oversight. That same year, I signed a second

bill into law enacting the most comprehensive overhaul of the

States casino regulations since 1977. This reform eliminated

many significantly outdated regulatory burdens, allowing the

casino industry to reinvest and redevelop throughout the Tourism

District.

While still in their infancy, these initiatives have begun

to take hold with tangible progress evident in new commercial

and residential construction, demolition of blighted buildings,


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investments in infrastructure, and an infusion of capital

investment in new entertainment venues, convention facilities,

retail and shopping attractions, and casinos. Our efforts have

also led to the adoption of a Master Plan for the Tourism

District, the establishment of a public safety task force, the

formation of a Tourism Advisory Commission, and the creation of

the Atlantic City Alliance to coordinate the collective

marketing efforts of the casino industry.

Nonetheless, while these initiatives show that our shared

commitment to the future of Atlantic City is bearing fruit, it

is clear that much more work needs to be done. Since New Jersey

took its first steps to authorize gaming in 1976, our State has

been at the forefront of casino entertainment. Some experts

predict that Internet gaming will infuse new opportunities and

new development into Atlantic City, providing a mechanism to

expand the States already strong gaming options to a modern

platform. Others caution that this type of convenience gaming

will lead to declines in tourism, and a loss of visitors to the

region. Moreover, important questions linger regarding what

social impacts will follow the extension of casino wagering

across the Internet. All of these issues counsel in favor of a

narrowly tailored approach to Internet gaming that preserves the

unique character of Atlantic City, while also embracing the

tools that can reverse the trend of economic contraction in the

States gaming and tourism industries. Indeed, our State has a

long history of sparingly granting the authorization for

gambling, and only with the oversight and regulation that

ensures entertainment does not descend into addiction.

Accordingly, I recommend that New Jerseys first Internet

gaming law grant the Division of Gaming Enforcement in the

Department of Law and Public Safety wide latitude and authority


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to establish a regulatory framework that provides for the most

effective controls, monitoring, and supervision. Moreover, I

believe that Internet gaming should be developed in an open and

transparent manner, free from suspicion of self-dealing and

improper influence. I therefore recommend changes to this bill

that will extend the existing prohibitions on casino-related

employment for State employees and State legislators to Internet

gaming licensees, and their promoters or affiliates. In

addition, I propose a sensible requirement that State elected

officials promptly disclose their past and present

representation of entities seeking or holding Internet gaming

licensees.

Next, the bill should be revised to do more to prevent the

documented harms that can accompany excessive gambling. Our

State cannot carelessly create a new generation of addicted

gamers, sitting in their homes, using laptops or iPads, gambling

away their salaries and their futures. For this reason, I

recommend an enhanced level of funding for compulsive gambling

treatment programs and additional financial support for other

beneficial purposes for which casino gaming was originally

authorized. I also recommend an annual analysis of the

potential problems and harms associated with these new games to

be undertaken at the expense of Internet gaming licensees.

Finally, I believe that Internet gaming in New Jersey

should be carefully studied and periodically revisited. I

recommend that this law authorizing Internet gaming in New

Jersey sunset after a period of ten years, giving future leaders

the perspective and opportunity to revise and renew Internet

gaming as appropriate. Taken together, these recommendations

will provide the balance of opportunity and oversight that has

characterized gaming in New Jersey for more than three decades.


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Like all of the most sensitive and significant policy

matters, it is incumbent on the elected officials of this State

to act with equal parts confidence and caution. In the wake of

the devastating losses suffered by our residents in recent

months, we must embrace new ideas to fuel our reconstruction and

continued prosperity. Internet gaming should be a part of that

effort. With the recommendations I propose today, we can

revitalize one of our States premier attractions, and

reintroduce New Jersey and Atlantic City at the forefront of

innovation and entertainment.

Accordingly, I herewith return the Assembly Substitute for

Assembly Bill No. 2578 and recommend that it be amended as

follows:

Page 2, Title, Line 3: Before and insertamending P.L.1981, c.142,

Page 4, Section 2, Lines 36-39: Delete in their entirety

Page 4, Line 40: Insert 2. Section 5 ofP.L.1977, c.110 (C.5:12-5)is amended to read asfollows:

"Authorized Game" or"Authorized Gambling Game"

- Roulette, baccarat,blackjack, craps, big sixwheel, slot machines,minibaccarat, red dog,paigow, and sic bo; anyvariations or composites ofsuch games, provided thatsuch variations orcomposites are found by thedivision suitable for useafter an appropriate testor experimental periodunder such terms and

conditions as the divisionmay deem appropriate; andany other game which isdetermined by the divisionto be compatible with thepublic interest and to besuitable for casino useafter such appropriate testor experimental period asthe division may deemappropriate. "Authorizedgame" or "authorizedgambling game" includes

gaming tournaments in which


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players compete against oneanother in one or more ofthe games authorized hereinor by the division or inapproved variations orcomposites thereof if thetournaments are authorizedby the division."Authorized game" or"Authorized gambling game"shall also include any gamethat the division maydetermine by regulation tobe suitable for use forwagering through theInternet.

Page 4, Section 3, Line 47: After conducted insert ,pursuant to rulesestablished by thedivision

Page 5, Section 5, Line 40: After State insert , asauthorized by rulesestablished by thedivision

Page 5, Section 6, Line 45: After patrons delete and

promotional Internet gamingcredits; and insert .




Page 6, Line 14: Insert new sections 7through 11 as follows:7. Section 70 of P.L.1977, c. 110 (C. 5:12-70)

is amended to read asfollows:

70. Required regulations.a. The division shall,without limitation includethe following specificprovisions in itsregulations in accordancewith the provisions of thisact:

(1) Prescribing themethods and forms ofapplication andregistration which anyapplicant or registrantshall follow and complete;

(2) Prescribing themethods, procedures andform for delivery ofinformation concerning anyperson's family, habits,character, associates,

criminal record, business


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activities and financialaffairs;

(3) Prescribing suchprocedures for thefingerprinting of anapplicant, employee of alicensee, or registrant,and methods ofidentification which may benecessary to accomplisheffective enforcement ofrestrictions on access tothe casino floor, thesimulcasting facility, andother restricted areas of

the casino hotel complex;

(4) Prescribing the methodof notice to an applicant,registrant or licenseeconcerning the release ofany information or dataprovided to the commissionor division by suchapplicant, registrant orlicensee;

(5) Prescribing the manner

and procedure of allhearings conducted by thedivision or any hearingexaminer, including specialrules of evidenceapplicable thereto andnotices thereof;

(6) Prescribing the mannerand method of collection ofpayments of taxes, fees,and penalties;

(7) Defining and limitingthe areas of operation, therules of authorized games,including games played uponand wagered through theInternet, odds, and devicespermitted, and the methodof operation of such gamesand devices;

(8) Regulating thepractice and procedures fornegotiable transactionsinvolving patrons,including limitations onthe circumstances andamounts of suchtransactions, and theestablishment of forms andprocedures for negotiableinstrument transactions,redemptions, andconsolidations;

(9) Prescribing grounds

and procedures for therevocation or suspension of


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operating certificates,licenses and registrations;

(10) Governing themanufacture, distribution,sale, deployment, andservicing of gaming devicesand equipment;

(11) Prescribing forgaming operations theprocedures, forms andmethods of managementcontrols, includingemployee and supervisorytables of organization and

responsibility, and minimumsecurity and surveillancestandards, includingsecurity personnelstructure, alarm and otherelectrical or visualsecurity measures;provided, however, that thedivision shall grant anapplicant for a casinolicense or a casinolicensee broad discretionconcerning the organization

and responsibilities ofmanagement personnel whoare not directly involvedin the supervision ofgaming or simulcastwagering operations;

(12) Prescribing thequalifications of, and theconditions pursuant towhich, engineers,accountants, and othersshall be permitted to

practice before thedivision or to submitmaterials on behalf of anyapplicant or licensee;provided, however, that nomember of the Legislature,nor any firm with whichsaid member is associated,shall be permitted toappear or practice or actin any capacity whatsoeverbefore the commission ordivision regarding anymatter whatsoever, norshall any member of thefamily of the Governor orof a member of theLegislature be permitted toso practice or appear inany capacity whatsoeverbefore the commission ordivision regarding anymatter whatsoever;

(13) Prescribing minimum

procedures for the exerciseof effective control over


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the internal fiscal affairsof a licensee, includingprovisions for thesafeguarding of assets andrevenues, the recording ofcash and evidence ofindebtedness, and themaintenance of reliablerecords, accounts, andreports of transactions,operations and events,including reports to thedivision;(14) Providing for aminimum uniform standard ofaccountancy methods,

procedures and forms; auniform code of accountsand accountingclassifications; and suchother standard operatingprocedures, including thosecontrols listed insubsection a. of section 99of P.L.1977, c.110 (C.5:12-99), as may be necessary toassure consistency,comparability, andeffective disclosure of all

financial information,including calculations ofpercentages of profit bygames, tables, gamingdevices and slot machines;

(15) Requiring quarterlyfinancial reports and theform thereof, and an annualaudit prepared by acertified public accountantlicensed to do business inthis State, attesting to

the financial condition ofa licensee and disclosingwhether the accounts,records and controlprocedures examined aremaintained by the licenseeas required by this act andthe regulations promulgatedhereunder;

(16) Governing the gaming-related advertising ofcasino licensees, theiremployees and agents, withthe view toward assuringthat such advertisementsare in no way deceptive;provided, however, thatsuch regulations shallrequire the words "Bet withyour head, not over it," orsome comparable languageapproved by the division,to appear on allbillboards, signs, and

other on-site advertisingof a casino operation and


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shall require the words "Ifyou or someone you know hasa gambling problem andwants help, call 1-800GAMBLER," or somecomparable languageapproved by the division,which language shallinclude the words "gamblingproblem" and "call 1-800GAMBLER," to appear legiblyon all print, billboard,and sign advertising of acasino operation; and

(17) (Deleted by

amendment, P.L.1991,c.182).

(18) Concerning thedistribution andconsumption of alcoholicbeverages on the premisesof the licensee, whichregulations shall beinsofar as possibleconsistent with Title 33 ofthe Revised Statutes, andshall deviate only insofar

as necessary because of theunique character of thehotel casino premises andoperations;

(19) (Deleted byamendment, P.L.1991,c.182).b. The commission shall,in its regulations,prescribe the manner andprocedure of all hearingsconducted by the

commission, includingspecial rules of evidenceapplicable thereto andnotices thereof.

8. (New section) Reportsregarding the impact ofgaming through theInternet.The division shall annuallycause a report to beprepared and distributed tothe Governor on the impactof Internet gaming onproblem gamblers andgambling addiction in NewJersey. The report shallbe prepared by a privateorganization or entity withexpertise in serving theneeds of persons withgambling addictions, whichorganization or entityshall be selected by thedivision. The report shall

be prepared and distributedunder the supervision of,


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and in coordination with,the division. Any costsassociated with thepreparation anddistribution of the reportshall be borne by casinolicensees who have beenauthorized by the divisionto conduct Internet gamingand the division shall beauthorized to assess a feeagainst such licensees forthese purposes. Thedivision may also reportperiodically to theGovernor on the

effectiveness of thestatutory and regulatorycontrols in place to ensurethe integrity of gamingoperations through theInternet.

9. Section 43 of P.L.2011, c.19 (C.5:12-74.1) isamended to read as follows:

43. a. Except as otherwiseprovided in this act, all

information and datarequired by the division orcommission to be furnishedpursuant to the act or theregulations promulgatedhereunder, or which mayotherwise be obtained,relative to the internalcontrols specified insubsection a. of section 99of P.L.1977, c.110 (C.5:12-99) or to the earnings orrevenue of any applicant,

registrant, or licenseeshall be considered to beconfidential and shall notbe revealed in whole or inpart except in the courseof the necessaryadministration of this act,or upon the lawful order ofa court of competentjurisdiction, or, with theapproval of the AttorneyGeneral, to a dulyauthorized law enforcementagency.

b. All information anddata pertaining to anapplicants criminalrecord, family, andbackground furnished to orobtained by the division orthe commission from anysource shall be consideredconfidential and shall bewithheld in whole or in

part, except that anyinformation shall be


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released upon the lawfulorder of a court ofcompetent jurisdiction or,with the approval of theAttorney General, to a dulyauthorized law enforcementagency.

c. Notice of the contentsof any information or datareleased, except to a dulyauthorized law enforcementagency pursuant tosubsection a. or b. of thissection, shall be given toany applicant, registrant,

or licensee in a mannerprescribed by the rules andregulations adopted by thedivision.

d. The followinginformation to be reportedperiodically to thedivision by a casinolicensee shall not beconsidered confidential andshall be made available forpublic inspection:

(1) A licensees grossrevenue from all authorizedgames as defined herein,and the licensees grossrevenue from simulcastwagering;

(2) (i) The dollar amountof patron checks initiallyaccepted by a licensee,(ii) the dollar amount ofpatron checks deposited to

the licensees bankaccount, (iii) the dollaramount of such checksinitially dishonored by thebank and returned to thelicensee as uncollected,and (iv) the dollar amountultimately uncollectedafter all reasonableefforts;

(3) The amount of grossrevenue tax or investmentalternative tax actuallypaid and the amount ofinvestment, if any,required and allowed,pursuant to section 144 ofP.L.1977, c.110 (C.5:12-144) and section 3 ofP.L.1984, c.218 (C.5:12-144.1);

(4) A list of the premisesand the nature of

improvements, costs thereofand the payees for all such


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improvements, which werethe subject of aninvestment required andallowed pursuant to section144 of P.L.1977, c.110(C.5:12-144) and section 3of P.L.1984, c.218 (C.5:12-144.1);

(5) The amount, if any, oftax in lieu of full localreal property tax paidpursuant to section 146 ofP.L.1977, c.110 (C.5:12-146), and the amount ofprofits, if any, recaptured

pursuant to section 147 ofP.L.1977, c.110 (C.5:12-147);

(6) A list of thepremises, nature ofimprovements and coststhereof which constitutethe cumulative investmentsby which a licensee hasrecaptured profits pursuantto section 147 of P.L.1977,c.110 (C.5:12-147); [and]

(7) All quarterly andannual financial statementspresenting historical datawhich are submitted to thedivision, including allannual financial statementswhich have been audited byan independent certifiedpublic accountant licensedto practice in the State ofNew Jersey; and

(8) The identity and natureof services provided by anyperson or firm receivingpayment in any formwhatsoever for professionalservices in connection withthe authorization orconduct of games conductedvia the Internet by anentity holding any license,permit or registrationpursuant to P.L.1977, c.110(C.5:12-1 et seq.).

Nothing in this subsectionshall be construed to limitaccess by the public tothose forms and documentsrequired to be filedpursuant to Article 11 ofthis act.

10. Section 76 ofP.L.1977, c. 110 (C.5:12-76) is amended to read as

follows:


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76. General duties andpowers.

The Division of GamingEnforcement shall have thegeneral responsibility forthe implementation ofP.L.1977, c.110, (C.5:12-1et seq.), and to issue anyapprovals necessary ashereinafter provided,including withoutlimitation, theresponsibility to:

a. Enforce the

provisions of this act andany regulations promulgatedhereunder;

b. Promptly and inreasonable orderinvestigate allapplications for licensureand all registrations underthis act;

c. Issue reports andrecommendations to the

commission with respect toall entities and naturalpersons required to qualifyfor a casino license, anapplication for interimcasino authorization or apetition for a statement ofcompliance;

d. Promptly and inreasonable order review andapprove or deny all casinoservice industry enterprise

license applications;

e. Accept and maintainregistrations for allcasino employee and vendorregistrants;

f. Revoke anyregistration or casinoservice industry enterpriselicense upon findingspursuant to thedisqualification criteriain section 86 of P.L.1977,c.110 (C.5:12-86);

g. Promulgate suchregulations as may benecessary to fulfill thepolicies of this act;

h. Initiate and decideany actions againstlicensees or registrantsfor violation of this act

or regulations promulgatedhereunder, and impose


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sanctions and levy andcollect penalties uponfinding violations;

i. Provide thecommission with allinformation that thedirector deems necessaryfor any action to be takenby the commission underArticle 6 of P.L.1977,c.110 (C.5:12-80 through95);

j. Initiate, prosecuteand defend appeals, as the

director may deemappropriate;

k. Conduct continuingreviews of casinooperations through on-siteobservation and otherreasonable means to assurecompliance with this actand regulations promulgatedhereunder, subject tosubsection h. of section 63of P.L.1977, c.110 (C.5:12-

63);

l. Receive and takeappropriate action on anyreferral from thecommission relating to anyevidence of a violation ofP.L.1977, c.110 (C.5:12-1et seq.) or the regulationspromulgated thereunder;

m. Exchange fingerprintdata with, and receive

criminal history recordinformation from, theFederal Bureau ofInvestigation for use inconsidering applicants forany license or registrationissued pursuant to theprovisions of P.L.1977,c.110 (C.5:12-1 et seq.);

n. Conduct audits ofcasino operations at suchtimes, under suchcircumstances, and to suchextent as the directorshall determine, includingreviews of accounting,administrative andfinancial records, andmanagement control systems,procedures and recordsutilized by a casinolicensee;

o. Request and receive

information, materials andany other data from any


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licensee or registrant, orapplicant for a license orregistration under thisact; and

p. Report to theAttorney Generalrecommendations thatpromote more efficientoperations of the division.

q. Receive complaintsfrom the public relating tothe conduct of gaming andsimulcasting operations,examine records andprocedures, and conduct

periodic reviews ofoperations and facilitiesfor the purpose ofevaluating current orsuggested provisions ofP.L.1977, c.110 (C.5:12-1et. seq.) and theregulations promulgatedthereunder, as the directordeems appropriate;

r. Certify the revenueof any casino or

simulcasting facility insuch manner as the directordeems appropriate;

s. Create and maintaina list of all excludedpatrons;

t. Initiate and decideall actions for involuntaryexclusion of patronspursuant to section 71 ofP.L.1977, c.110 (C.5:12-

71);

u. Issue an operationcertificate upon thecommissions grant of anapplication for a casinolicense;

v. Recommend that thecommission issue or revokestatements of compliancepursuant to section 81 ofP.L.1977, c.110 (C.5:12-81)and the regulationspromulgated thereunder;

w. Accept impactstatements submitted by anapplicant for a casinolicense pursuant to section84 of P.L.1977, c.110(C.5:12-84); [and]

x. Utilize, in itsdiscretion, the services of

a private entity for thepurpose of expediting


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criminal history recordbackground checks requiredto be performed by thedivision pursuant to theprovisions of P.L.1977,c.110 (C.5:12-1 et seq.),provided that the privateentity has been awarded acontract in accordance withthe public contracting lawsof this State;

y. License, regulate,investigate and take anyother action regarding allaspects of authorized games

conducted through theInternet.

11. Section 85 of P.L.1977 c. 110 (C. 5:12-85) isamended to read as follows:85. Additionalrequirements.

a. In addition to otherinformation required bythis act, a corporation orother form of business

organization applying for acasino license shallprovide the followinginformation, in such formas may be established byregulation:

(1) The organization,financial structure andnature of all businessesoperated by the applicant;the names and personalemployment and criminal

histories of all officers,directors and such otheremployees of the applicantas the division mayrequire; the names of allholding, intermediary andsubsidiary companies of theapplicant; and theorganization, financialstructure and nature of allbusinesses operated by suchof its holding,intermediary and subsidiarycompanies as the divisionmay require, including thenames and personalemployment and criminalhistories of such corporateofficers, directors andother employees of suchholding, intermediary andsubsidiary companies as thedivision may require;

(2) The rights and

privileges acquired by theholders of different


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classes of authorizedsecurities of the applicantand such companies as thedivision may require,including the names,addresses and amounts heldby all holders of suchsecurities;

(3) The terms uponwhich securities have beenor are to be offered;

(4) The terms andconditions of alloutstanding loans,mortgages, trust deeds,

pledges or any otherindebtedness or securitydevices utilized by theapplicant;

(5) The extent of theequity security holding inthe applicant of allofficers, directors andunderwriters, and theirremuneration in the form ofsalary, wages, fees orotherwise;

(6) Names of personsother than directors andofficers who occupypositions specified by thedivision or whosecompensation exceeds anamount determined by thedivision, and the amount oftheir compensation;

(7) A description ofall bonus and profit-

sharing arrangements;

(8) Copies of allmanagement and servicecontracts;

(9) A listing of stockoptions existing or to becreated; and

(10) Documentationestablishing that it isqualified to do business inthe State of New Jersey.

b. Each holding,intermediary and subsidiarycompany of an applicant foror holder of a casinolicense shall be requiredto qualify to do businessin the State of New Jersey;and

(1) If it is a

corporation, register withthe division and furnish


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the division with all theinformation required of acorporate licensee asspecified in subsection a.(1), (2) and (3) of thissection and such otherinformation as the divisionmay require; or

(2) If it is not acorporation, register withthe division and furnishthe division with suchinformation as the divisionmay prescribe.

c. (Deleted by

amendment, P.L.2011, c.19).

d. (Deleted byamendment, P.L.2011, c.19).

e. (Deleted byamendment, P.L.2011, c.19).

f. (Deleted byamendment, P.L.2011, c.19).

g. (Deleted byamendment, P.L.2011, c.19).

h. Each applicant foror holder of a casinolicense, or any holding,intermediary and subsidiarycompany of an applicant foror holder of a casinolicense, and any affiliatethereof, and any otherlicensee, permit holder orvendor under P.L. 1977,c.110 (C.5:12-1 et seq.),including but not limited

to an applicant or holderof any license, permit, orother approval to conductInternet gaming, or anyInternet gaming affiliatein accordance with theregulations of thedivision, shall provide tothe division on a quarterlybasis the followinginformation with respect togames conducted through theinternet:

(1) The name of anyperson, entity or firm towhom any payment,remuneration or otherbenefit or thing of valuehas been made or conferredfor professional services,including but not limitedto legal, consulting andlobbying services;

(2) The amount or valueof such payments,


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remuneration, benefit, orthing of value;

(3) The date on whichsuch payments,remuneration, benefit, orthing of value were made;and

(4) The reason orpurpose for the procurementof such services.

Page 6, Section 8, Line 15: Delete 8. and insert12.



Page 12, Section 9, Line 33: Delete Each game andinsert All gaming andwagering

Page 14, Section 9, Line 28: Delete All and insert Acasinos primary

Page 14, Section 9, Line 28: Delete by a licensee

Page 14, Section 9, Line 31: Delete and other

Page 14, Section 9, Line 32: Delete not

Page 14, Section 9, Line 32: After used insert on atemporary basis pursuant torules established by thedivision

Page 14, Section 9, Lines 32-33: After may delete , withthe approval of thedivision,

Page 14, Section 9, Line 34: After Atlantic Cityinsert , provided noInternet gaming shall occurunless a wager is acceptedby a casino within theterritorial limits ofAtlantic City, New Jersey

Page 15, Section 9, Line 7: Delete commission andinsert division

Page 15, Section 9, Line 11: Delete confirm on acontinuous basis andinsert require byregulation





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Page 21, Section 13, Line 33: Delete 10% and insert15%






Page 23, Section 16, Lines 1-11: Delete in their entiretyand insert by thedivision.


Page 23, Section 17, Line 13: Delete The entire andinsert A casinos primary

Page 23, Section 17, Line 17: Delete Backup and other

Page 23, Section 17, Lines 18-20: Delete in their entiretyand insert Backupequipment used on atemporary basis pursuant torules established by thedivision to conductInternet gaming may, withthe approval of thedivision, be locatedoutside the territoriallimits of Atlantic City,provided no internet gaming

shall occur unless a wageris accepted by a casinowithin the territoriallimits of Atlantic City,New Jersey.

Page 23, Section 17, Line 27: Delete commission or the












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Page 32, Section 31, Line 5: Delete $200,000 andinsert $400,000

Page 32, Section 31, Line 7: Delete $150,000 andinsert $250,000

Page 32, Section 31, Line 19: Delete $150,000 and

insert $250,000

Page 32, Section 31, Line 21: Delete $85,000 and insert$140,000

Page 32, Section 31, Line 22: Delete $65,000 and insert$110,000



Page 32, Section 33, Line 47: Delete an interstatecompact and insert areciprocal agreement



Page 33, Section 36, Lines 46: Delete 36. And insert31.




Page 41, Section 40, Lines 32-47: Delete in their entiretyand insert 35. Section 4of P.L.1981, c.142

(C.52:13D-17.2) is amendedto read as follows:


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4. a. As used in thissection "person" means:

(1) any State officeror employee subject tofinancial disclosure by lawor executive order and anyother State officer oremployee withresponsibility for mattersaffecting casino activity;any special State officeror employee withresponsibility for mattersaffecting casino activity;

the Governor; any member ofthe Legislature or anyfull-time member of theJudiciary; any full-timeprofessional employee ofthe Office of the Governor,or the Legislature; membersof the Casino ReinvestmentDevelopment Authority; thehead of a principaldepartment; the assistantor deputy heads of aprincipal department,

including all assistant anddeputy commissioners; thehead of any division of aprincipal department; or

(2) any member of thegoverning body, or themunicipal judge or themunicipal attorney of amunicipality wherein acasino is located; anymember of or attorney forthe planning board or

zoning board of adjustmentof a municipality wherein acasino is located, or anyprofessional planner, orconsultant regularlyemployed or retained bysuch planning board orzoning board of adjustment.

b. (1) No State officer oremployee, nor any person,nor any member of theimmediate family of anyState officer or employee,or person, nor anypartnership, firm orcorporation with which anysuch State officer oremployee or person isassociated or in which hehas an interest, nor anypartner, officer, directoror employee while he isassociated with suchpartnership, firm, or

corporation, shall hold,directly or indirectly, an


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interest in, or holdemployment with, orrepresent, appear for, ornegotiate on behalf of, anyholder of, or applicantfor, a casino license, inconnection with any cause,application, or matter,except as provided insection 3 of P.L.2009, c.26(C.52:13D-17.3), and exceptthat (1) a State officer oremployee other than a Stateofficer or employeeincluded in the definitionof person, and (2) a member

of the immediate family ofa State officer oremployee, or of a person,may hold employment withthe holder of, or applicantfor, a casino license if,in the judgment of theState Ethics Commission,the Joint LegislativeCommittee on EthicalStandards, or the SupremeCourt, as appropriate, suchemployment will not

interfere with theresponsibilities of theState officer or employee,or person, and will notcreate a conflict ofinterest, or reasonablerisk of the publicperception of a conflict ofinterest, on the part ofthe State officer oremployee, or person. Nospecial State officer oremployee without

responsibility for mattersaffecting casino activity,excluding those serving inthe Departments ofEducation, Health andSenior Services, and HumanServices and the Commissionon Higher Education, shallhold, directly orindirectly, an interest in,or represent, appear for,or negotiate on behalf of,any holder of, or applicantfor, a casino license, orany holding or intermediarycompany with respectthereto, in connection withany cause, application, ormatter. However, a specialState officer or employeewithout responsibility formatters affecting casinoactivity may holdemployment directly withany holder of or applicant

for a casino license or anyholding or intermediary


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company thereof and if soemployed may hold, directlyor indirectly, an interestin, or represent, appearfor, or negotiate on behalfof, his employer, except asotherwise prohibited bylaw.

(2) No State officer oremployee, nor any person,nor any member of theimmediate family of anyState officer or employee,or person, nor anypartnership, firm or

corporation with which anysuch State officer oremployee or person isassociated or in which hehas an interest, nor anypartner, officer, directoror employee while he isassociated with suchpartnership, firm, orcorporation, shall hold,directly or indirectly, aninterest in, or holdemployment with, or

represent, appear for, ornegotiate on behalf of, orderive any remuneration,payment, benefit or anyother thing of value forany services, including butnot limited to consultingor similar services, fromany holder of, or applicantfor, a license, permit, orother approval to conductInternet gaming, or anyholding or intermediary

company with respectthereto, or any Internetgaming affiliate of anyholder of, or applicantfor, a casino license, orany holding or intermediarycompany with respectthereto, or any business,association, enterprise orother entity that isorganized, in whole or inpart, for the purpose ofpromoting, advocating for,or advancing the interestsof the Internet gamingindustry generally or anyInternet gaming-relatedbusiness or businesses inconnection with any cause,application, or matter,except as provided insection 3 of P.L.2009, c.26(C.52:13D-17.3), and exceptthat (1) a State officer oremployee other than a State

officer or employeeincluded in the definition


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of person, and (2) a memberof the immediate family ofa State officer oremployee, or of a person,may hold employment withthe holder of, or applicantfor, a license, permit, orother approval to conductInternet gaming, or anyholding or intermediarycompany with respectthereto, or any Internetgaming affiliate of anyholder of, or applicantfor, a casino license, orany holding or intermediary

company with respectthereto if, in the judgmentof the State EthicsCommission, the JointLegislative Committee onEthical Standards, or theSupreme Court, asappropriate, suchemployment will notinterfere with theresponsibilities of theState officer or employee,or person, and will not

create a conflict ofinterest, or reasonablerisk of the publicperception of a conflict ofinterest, on the part ofthe State officer oremployee, or person.

c. No person or any memberof his immediate family,nor any partnership, firmor corporation with whichsuch person is associated

or in which he has aninterest, nor any partner,officer, director oremployee while he isassociated with suchpartnership, firm orcorporation, shall, withintwo years next subsequentto the termination of theoffice or employment ofsuch person, hold, directlyor indirectly, an interestin, or hold employmentwith, or represent, appearfor or negotiate on behalfof, any holder of, orapplicant for, a casino inconnection with any cause,application or matter, orany holding or intermediarycompany with respect tosuch holder of, orapplicant for, a casinolicense in connection withany phase of casino

development, permitting,licensure or any other


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matter whatsoever relatedto casino activity, exceptas provided in section 3 ofP.L.2009, c.26 (C.52:13D-17.3), and except that:

(1) a member of theimmediate family of aperson may hold employmentwith the holder of, orapplicant for, a casinolicense if, in the judgmentof the State EthicsCommission, the JointLegislative Committee onEthical Standards, or the

Supreme Court, asappropriate, suchemployment will notinterfere with theresponsibilities of theperson and will not createa conflict of interest, orreasonable risk of thepublic perception of aconflict of interest, onthe part of the person;

(2) an employee who is

terminated as a result of areduction in the workforceat the agency whereemployed, other than anemployee who held a policy-making management positionat any time during the fiveyears prior to terminationof employment, may, at anytime prior to the end ofthe two-year period, acceptemployment with the holderof, or applicant for, a

casino license if, in thejudgment of the StateEthics Commission, theJoint Legislative Committeeon Ethical Standards, orthe Supreme Court, asappropriate, suchemployment will not createa conflict of interest, orreasonable risk of thepublic perception of aconflict of interest, onthe part of the employee.In no case shall therestrictions of thissubsection apply to asecretarial or clericalemployee. Nothing hereincontained shall alter oramend the post-employmentrestrictions applicable tomembers and employees ofthe Casino ControlCommission and employeesand agents of the Division

of Gaming Enforcementpursuant to subsection e.


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(2) of section 59 and tosection 60 of P.L.1977,c.110 (C.5:12-59 andC.5:12-60); and

(3)any partnership, firm orcorporation engaged in thepractice of law or inproviding any otherprofessional services withwhich any person includedin paragraph (1) ofsubsection a. of thissection, or a member of theimmediate family of thatperson, is associated, and

any partner, officer,director or employeethereof, other than thatperson, or immediate familymember, may represent,appear for or negotiate onbehalf of any holder of, orapplicant for, a casinolicense in connection withany cause, application ormatter or any holdingcompany or intermediarycompany with respect to

such holder of, orapplicant for, a casinolicense in connection withany phase of casinodevelopment, permitting,licensure or any othermatter whatsoever relatedto casino activity, andthat person or immediatefamily member shall not bebarred from associationwith such partnership, firmor corporation, if for a

period of two years nextsubsequent to thetermination of theperson's office oremployment, the person orimmediate family member (a)is screened from personalparticipation in any suchrepresentation, appearanceor negotiation; and (b) isassociated with thepartnership, firm orcorporation in a positionwhich does not entail anyequity interest in thepartnership, firm orcorporation. The exceptionprovided in this paragraphshall not apply to a formerGovernor, LieutenantGovernor, Attorney General,member of the Legislature,person included inparagraph (2) of subsectiona. of this section, or to

the members of theirimmediate families.


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d. This section shall notapply to the spouse of aState officer or employee,which State officer oremployee is withoutresponsibility for mattersaffecting casino activity,who becomes the spousesubsequent to the Stateofficer's or employee'sappointment or employmentas a State officer oremployee and who is notindividually or directlyemployed by a holder of, or

applicant for, a casinolicense, or any holding orintermediary company.

e. The Joint LegislativeCommittee on EthicalStandards and the StateEthics Commission, asappropriate, shallforthwith determine andpublish, and periodicallyupdate, a list of thosepositions in State

government withresponsibility for mattersaffecting casino activity.

f. No person shall solicitor accept, directly orindirectly, anycomplimentary service ordiscount from any casinoapplicant or licensee whichhe knows or has reason toknow is other than aservice or discount that is

offered to members of thegeneral public in likecircumstance.

g. No person shallinfluence, or attempt toinfluence, by use of hisofficial authority, thedecision of the commissionor the investigation of thedivision in any applicationfor licensure or in anyproceeding to enforce theprovisions of this act orthe regulations of thecommission. Any suchattempt shall be promptlyreported to the AttorneyGeneral; provided, however,that nothing in thissection shall be deemed toproscribe a request forinformation by any personconcerning the status ofany application for

licensure or any proceedingto enforce the provisions


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of this act or theregulations of thecommission.

h. Any person who willfullyviolates the provisions ofthis section is adisorderly person and shallbe subject to a fine not toexceed $1,000, orimprisonment not to exceedsix months, or both.

In addition, for violationsof subsection c. of thissection occurring after the

effective date of P.L.2005,c.382, a civil penalty ofnot less than $500 nor morethan $10,000 shall beimposed upon a former Stateofficer or employee orformer special Stateofficer or employee of aState agency in theExecutive Branch upon afinding of a violation bythe State EthicsCommission, which penalty

may be collected in asummary proceeding pursuantto the "Penalty EnforcementLaw of 1999," P.L.1999,c.274 (C.2A:58-10 etseq.).


Page 42, Section 41, Line 1: After (New section)insert a.

Page 42, Section 41, Line 13: After this bill). Insertb. The authorization toconduct games through theInternet as provided for inP.L. c. (pending beforethe Legislature as thisbill) shall expire 10 yearsfollowing the operativedate established pursuantto subsection a. of thissection, unlessreauthorized by law.


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Respectfully,

/s/ Chris Christie

Governor

[seal]

Attest:

/s/Charles B. McKenna

Chief Counsel to the Governor

Documents

Conditional Veto for A2578