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NEW JERSEY REGISTER
VOLUME 38, ISSUE 7
ISSUE DATE: APRIL 3, 2006
RULE PROPOSALS
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
LEGALIZED GAMES OF CHANCE CONTROL COMMISSION
Maximum Fee for Participation in Game;
Types of Prizes Permitted; Value of Prize

38 N.J.R. 1534(a)

Proposed Amendments: N.J.A.C. 13:3-3.4 and 3.5

Maximum Fee for Participation in Game; Types of Prizes Permitted; Value of Prize

Authorized By: Legalized Games of Chance Control Commission, Stephen Nolan, Acting Executive Officer, and Deputy Director, Division of Consumer Affairs.

Authority: N.J.S.A. 5:8-79.1.

Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2006-97.

Submit comments by June 2, 2006 to:
Stephen Nolan, Deputy Director
Legalized Games of Chance Control Commission
124 Halsey Street
PO Box 46000
Newark, New Jersey 07101

The agency proposal follows:

Summary

The Legalized Games of Chance Control Commission (the Commission) conducted a public hearing on July 13, 2005 at the Seaside Heights Borough Hall, 901 Boulevard, Seaside Heights, New Jersey to elicit comments from the public concerning increasing the maximum allowable charge to participate in amusement games from $ 5.00 to $ 10.00 and increasing the maximum retail value of prizes which may be awarded from $ 5,000 to $ 10,000. Notice of the hearing was published in the New Jersey Register on June 20, 2005 (37 N.J.R. 2261(a)). According to the information presented during the hearing, the maximum fee of $ 5.00 to participate in an amusement game is insufficient to cover the costs the holders of such games incur. The report issued by the hearing officer from this hearing recommended that the Commission consider whether it should propose such increases. The Commission has decided that increasing the maximum allowable fee is appropriate and proposes to amend N.J.A.C. 13:3-3.4 to raise the maximum fee for participation in an amusement game from $ 5.00 to $ 10.00. The Commission also proposes to amend N.J.A.C. 13:3-3.5 to raise the maximum retail value of prizes from $ 5,000 to $ 10,000. This will enable holders of amusement games to offer a prize that is commensurate with the higher maximum fee for participation in an amusement game. As the Commission has provided a 60-day comment period for this notice of proposal, this notice is excepted from the rulemaking calendar requirement pursuant to N.J.A.C. 1:30-3.3(a)5.

Social Impact

The Commission believes that the proposed amendments will benefit society. According to testimony the Commission received during the public hearing, licensees need to charge more for the games they offer in order to cover the costs of operating amusement games. The proposed increase in fees ensures that licensees will be able to afford to offer these games to the public. The proposed increase in the maximum prize for an amusement game allows operators of amusement games to offer the public a prize commensurate with the price they pay to play an amusement game.

Economic Impact

The Commission believes that the proposed amendments will have a positive economic impact on licensees. By increasing the maximum fee for amusement games, the Commission is allowing licensees to charge a fee that covers the costs they incur. Licensees are not required to charge these higher fees and may charge any fee they deem appropriate, as long as the fee is not higher than the maximum set by this proposal. This flexibility in fees may increase competition in the industry. The increased fee for playing games will impact individuals who play amusement games. These individuals will bear increased costs. These individuals will benefit from the increased value of prizes. The Commission does not believe that the proposed amendments will impose any costs on licensees.

Federal Standards Statement

A Federal standards analysis is not required because there are no Federal laws or standards applicable to the proposed amendments.

Jobs Impact

The Commission does not expect that the proposed amendments will increase or decrease the number of available jobs in New Jersey.

Agriculture Industry Impact

The proposed amendments will not have any impact on the agriculture industry in the State.

Regulatory Flexibility Analysis

Since the individuals who are licensed to operate amusement games are individually licensed by the Commission, under the Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq., they may be considered "small businesses" for the purposes of the Act. The costs imposed by the proposed amendments are the same for all certificants as outlined above in the Economic Impact statement. The Board does not believe that certificants will need to employ any professional services to comply with the requirements of the amendments. The proposed amendments do not impose any compliance, reporting or recordkeeping requirements. The proposed amendments raise the maximum fee and prize value that licensees may elect to offer.

Smart Growth Impact

The Commission believes the proposed amendments will not have any impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

13:3-3.4 Maximum fee for participation in game

(a) No licensee shall charge or accept, directly or indirectly, more than [$ 5.00] $ 10.00 from any one player for an opportunity to participate in any one amusement game.

(b) (No change.)

(c) No charge may be made or accepted for participation in a game in excess of the posted charge for the opportunity to participate in the game. Nothing in this section shall be construed to prohibit a licensee from offering a discounted entry fee for multiple opportunities to participate in a single game not in excess of [$ 5.00] $ 10.00.

(d) (No change.)

13:3-3.5 Types of prizes permitted; value of prize

(a) (No change.)

(b) The retail value of such merchandise prize or prizes to be offered or awarded in any game or for an accumulation of wins from a series of games or plays shall not exceed an average retail value of [$ 5,000] $ 10,000.

1.-2. (No change.)

(c) (No change.)

(d) Where games licensed and certified pursuant to N.J.A.C. 13:3-7.9(a)1, 3, 5, 6, 7, 8 or 9 are operated in conjunction with an arcade licensed pursuant to N.J.A.C. 13:3-7.9(a)2 under Certification No. 2, such arcade may also award as prizes tickets redeemable toward merchandise prizes available in the arcade, provided that the value of any single prize ticket shall not permit redemption for a prize valued in excess of an average retail value of [$ 5,000] $ 10,000. Such tickets may be combined with tickets or tokens awarded in the arcade for redemption purposes.



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