54 N.J.R. 770(a)

VOLUME 54, ISSUE 9, MAY 2, 2022
RULE PROPOSALS

Reporter
54 N.J.R. 770(a)
NJ - New Jersey Register  >  2022  >  MAY  >  MAY 2, 2022  >  RULE PROPOSALS  >  LAW AND PUBLIC SAFETY -- DIVISION OF CONSUMER AFFAIRS

Interested Persons Statement 

INTERESTED PERSONS 
Interested persons may submit comments, information or arguments concerning any of the rule proposals in this issue until the date indicated in the proposal. Submissions and any inquiries about submissions should be addressed to the agency officer specified for a particular proposal. 
The required minimum period for comment concerning a proposal is 30 days. A proposing agency may extend the 30-day comment period to accommodate public hearings or to elicit greater public response to a proposed new rule or amendment. Most notices of proposal include a 60-day comment period, in order to qualify the notice for an exception to the rulemaking calendar requirements of  N.J.S.A. 52:14B-3. An extended comment deadline will be noted in the heading of a proposal or appear in a subsequent notice in the Register. 
At the close of the period for comments, the proposing agency may thereafter adopt a proposal, without change, or with changes not in violation of the rulemaking procedures at      N.J.A.C. 1:30-6.3. The adoption becomes effective upon publication in the Register of a notice of adoption, unless otherwise indicated in the adoption notice. Promulgation in the New Jersey Register establishes a new or amended rule as an official part of the New Jersey Administrative Code. 
Agency


LAW AND PUBLIC SAFETY > DIVISION OF CONSUMER AFFAIRS > LEGALIZED GAMES OF CHANCE CONTROL COMMISSION

Administrative Code Citation


Proposed Amendment: N.J.A.C. 13:3-3.4
Text

 Maximum Fee for Participation in Amusement Games
Authorized By: Legalized Games of Chance Control Commission, Karl Reidel, Executive Officer.
Authority: N.J.S.A. 5:8-79.1.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal Number: PRN 2022-056.
Submit comments by July 1, 2022, to:

Legalized Games of Chance Control Commission
c/o Karl Reidel, Executive Officer
124 Halsey Street
PO Box 46000
Newark, New Jersey 07101

or electronically at: http://www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.
The agency proposal follows:
Summary
The Legalized Games of Chance Control Commission (Commission) received a petition for rulemaking from Edward R. McGlynn of the New Jersey Attractions Association, on February 25, 2020. The petitioner requested that the Commission amend N.J.A.C. 13:3-3.4 to raise the maximum fee for participation in an amusement game from $ 10.00 to $ 20.00. The Commission noted that, pursuant to Executive Order No. 127 (2020), and P.L. 2021, c. 103, effective June 4, 2021, the deadline for action on a pending petition for rulemaking had been extended until January 1, 2022. The Commission published a notice of action on the petition in the New Jersey Register on March 15, 2021 (see 53 N.J.R. 435(d)) granting the petition to the extent that the Commission will pursue the process for amending N.J.A.C. 13:3-3.4 as set forth at N.J.S.A. 5:8-107. This process required the Commission to hold a public hearing prior to determining the maximum fee for participation in an amusement game.
The Commission conducted a virtual public hearing on May 12, 2021, to elicit comments from the public concerning increasing the maximum allowable charge to participate in amusement games from $ 10.00 to $ 20.00. Notice of the hearing was published in the New Jersey Register on April 19, 2021 (see 53 N.J.R. 659(a)). According to the information presented during the hearing, the maximum fee of $ 10.00 to participate in an amusement game is insufficient to cover the costs that 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 because testimony from the speakers indicated that the maximum price established at N.J.A.C. 13:3-3.4 is not sufficient to cover costs incurred by amusement games operators. This is especially true in light of the fact that the maximum fee has not been increased in 16 years. 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 $ 10.00 to $ 20.00.
The Commission has determined that the comment period for this notice of proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.
Social Impact
The Commission believes that the proposed amendment will benefit society. According to testimony the Commission received during the public hearing, amusement games license holders 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 amusement games license holders will be able to afford to offer these games to the public.
Economic Impact
The Commission believes that the proposed amendment may have a positive economic impact on amusement games license holders. By increasing the maximum fee for amusement games, the Commission is allowing licensees to charge a fee that covers the costs they incur. Amusement games license holders 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 fee set by this proposed amendment. 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 should they choose to participate in games with increased fees. The Commission does not believe that this proposed amendment will impose any costs on amusement games license holders.
Federal Standards Statement
A Federal standards analysis is not required because the proposed amendment is governed by N.J.S.A. 5:8-79 and is not subject to any Federal requirements or standards.
Jobs Impact
The Commission does not believe that the proposed amendment will increase or decrease the number of jobs in New Jersey.
Agriculture Industry Impact
The Commission does not believe that the proposed amendment will have any impact on the agriculture industry in the State.
Regulatory Flexibility Statement
As amusement games license holders 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 amendment are the same for all amusement games license holders as outlined in the Economic Impact statement above. The Board does not believe that amusement games license holders will need to employ any professional services to comply with the requirements of the proposed amendment. The proposed amendment does not impose any compliance, reporting, or recordkeeping requirements.
Housing Affordability Impact Analysis
The proposed amendment will have no impact on the affordability of housing in New Jersey and there is an extreme unlikelihood that the proposed amendment would evoke a change in the average costs associated with housing because the proposed amendment concerns maximum fees for amusement games.
Smart Growth Development Impact Analysis
The proposed amendment will have no impact on smart growth and there is an extreme unlikelihood that the proposed amendment 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 amendment concerns maximum fees for amusement games.
Racial and Ethnic Community Criminal Justice and Public Safety Impact
The Commission has evaluated this rulemaking and determined that it will not have an impact on pretrial detention, sentencing, probation, or parole policies concerning adults and juveniles in the State. Accordingly, no further analysis is required.
Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):
[page=771] SUBCHAPTER 3. CONDUCT OF LICENSEES AND OPERATION OF LICENSED GAMES
13:3-3.4 Maximum fee for participation in game
(a) No licensee shall charge or accept, directly or indirectly, more than $[10.00] 20.00 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 $[10.00] 20.00.
(d) (No change.)