PROPOSALS
STATE
costs that include costs related to maintaining its facility, hardware and
software costs, and the regulatory costs of the Racing Commission
Supervisor of Mutuels. To the extent such costs are off-set by billings to
the account wagering licensee and off-track wagering licensees as part of
the services provided to each by the hub facility, a negative economic
impact results to such licensees. Additionally, the operator of the hub
facility is required to establish internal control procedures associated with
operating both systems, which may result in additional operating and
administrative costs.
The permit holders and successors in interest will incur costs, as
mandated by these rules proposed for readoption, as a result of the
requirement that they pay costs associated with the regulation of racing.
Additionally, it is possible that these costs may increase as the continued
build-out of the off-track wagering facilities may result in an increase in
costs associated with the Commission’s regulatory costs. However, it
must be noted that these costs are lessened somewhat by provisions of
N.J.A.C. 13:74-10.1(b), which allocates certain other racing related
revenues to regulatory costs, which revenues will likely increase along
with any such build-out of off-track wagering facilities.
Federal Standards Statement
A Federal standards analysis is not required because the rules
proposed for readoption are authorized by the provisions of the Off-Track
and Account Wagering Act, P.L. 2001, c. 199, and are not subject to any
Federal requirements or standards.
Jobs Impact
As noted earlier, the rules proposed for readoption may result in
employment opportunities for New Jersey residents. The opening of
additional off-track wagering facilities will allow for the creation of new
job opportunities, and the continued operation of current off-track
wagering facilities and the account wagering system will allow for a
continuation of jobs already in existence. Although the locations for the
remaining available off-track wagering licenses (10) has yet to be
determined, and the specific geographic locations of these additional
employment opportunities is consequently unknown, the impact of the
current facilities evidences that employment opportunities will be created
for residents of this State. Additionally, the continued operation of the
account wagering system has the potential to create employment
opportunities through repair and replacement of system parts and services
necessary for its orderly operation.
Agriculture Industry Impact
The rules proposed for readoption are likely to have a positive impact
on the agriculture industry. The horse racing industry requires farms to
breed, raise, board, exercise, and train racehorses, directly impacting the
agriculture industry and promoting open space considerations. Since the
rules proposed for readoption require that certain funds collected through
off-track wagering and account wagering are to be allocated for horse
breeding and development, those funds directly benefit the agriculture
industry.
Regulatory Flexibility Analysis
The rules proposed for readoption may impose reporting or
recordkeeping requirements on limited small businesses as defined by the
Regulatory Flexibility Act, N.J.S.A. 52:14B-1 et seq. However, it is
important to note that any impact on small businesses, which may result
from these rules, is due to the Legislature’s decision to authorize the
activities incident thereto, and not the readoption of these rules. With
respect to the permit holders who currently have the rights to establish,
license, and operate off-track wagering facilities, none qualify as a small
business under the Regulatory Flexibility Act as each has over 100 fulltime employees and therefore, no regulatory flexibility analysis is
required as to the permit holders.
Additionally, the rules proposed for readoption will likely expand the
opportunities for vendors, who may operate as small businesses, who
furnish goods and services to an off-track wagering facility. For example,
the rules requires that, unless a vendor is able to obtain an exemption
from the Commission pursuant to the procedure as set forth in the rules,
the vendor must obtain a license issued by the Racing Commission if that
vendor maintains a presence at the premises of an off-track wagering
facility or account wagering licensee, or where they supply racing-related
or pari-mutuel related equipment, supplies, information, or data to either
licensee. Moreover, in a significantly lesser number, other vendors who
transact more than $10,000 annually with an off-track wagering licensee
might be required to file an application for a vendor’s license. However,
these costs may be mitigated in the event the vendor is already licensed
by the Commission for performing services substantially similar to those
which it is contracting for in connection with off-track wagering or
account wagering, because in such case an endorsement to the existing
license at no cost is the only requirement. These requirements, in addition
to being amply warranted, are necessary to ensure the integrity of offtrack wagering.
The rules also impose recordkeeping and reporting requirements on
the hub facility utilized by both the account wagering system licensee and
the off-track wagering licensees. Presently, there is one licensed and
operational hub facility in New Jersey servicing all New Jersey racing
outlets, including the account wagering system and off-track wagering
facilities. Should a hub facility be used that has not yet been licensed, it
would be required to be licensed and pay the licensing fee. Additionally,
in the event off-track wagering or the account wagering system was
serviced in-whole or in-part by any new hub facility, as is the case with
the existing hub facility, that hub facility would be responsible for the
regulatory costs of the Commission’s Supervisor of Mutuels assigned to
the facility.
A hub facility houses the totalisator and generates the reports that are
to be utilized to reconcile simulcast wagers with sending or host tracks
and calculates payments due to the Commission. The hub facility also
performs integral functions, as overseeing the operations of the totalisator
and conducting manual merges of pari-mutuel pool information in the
event of a transmission failure. For these reasons, the licensing
requirements and other controls imposed upon a hub facility are essential
to maintaining the integrity, fiscal soundness, and technical reliability of
off-track wagering.
It is not anticipated that any small businesses will have to employ
professional services in order to comply with these rules proposed for
readoption.
Housing Affordability Impact Analysis
The rules proposed for readoption are unlikely to impact affordable
housing in New Jersey and would not evoke a change in average costs
associated with housing because the rules proposed for readoption have
to do with the establishment, operation, and regulation of off-track
wagering facilities and the account wagering system. The rules proposed
for readoption regulate wagering as concerns the sport of horse racing
and have no impact on the affordability of housing in New Jersey.
Smart Growth Development Impact Analysis
The rules proposed for readoption are not likely to have any impact on
housing production in Planning Areas 1 or 2, or designated centers, under
the State Development and Redevelopment Plan. The rules proposed for
readoption regulate wagering as concerns the sport of horse racing.
Full text of the rules proposed for readoption may be found in the
New Jersey Administrative Code at N.J.A.C. 13:74.
__________
STATE
LAW AND PUBLIC SAFETY
(a)
STATE PLANNING COMMISSION
Plan Endorsement
Period of Endorsement
Proposed Amendment: N.J.A.C. 5:85-7.21
Authorized By: State Planning Commission, Gerry Scharfenberger,
Secretary and Director of the Office for Planning Advocacy.
Authority: N.J.S.A. 52:18A-203.
Calendar Reference: See Summary below for explanation of
exception to calendar requirement.
Proposal Number: PRN 2014-179.
NEW JERSEY REGISTER, MONDAY, OCTOBER 20, 2014
(CITE 46 N.J.R. 2105)
STATE
PROPOSALS
Submit written comments by December 19, 2014, to:
Gerry Scharfenberger
Office for Planning Advocacy, Department of State
P.O. Box 820
Trenton, New Jersey 08625
or
Gerard.scharfenberger@sos.state.nj.us
If you need this document in Braille, large print, or audio cassette,
contact the Office of Marketing at (609) 292-7832 or NJ Relay (TTY) 1800-852-7899.
The agency proposal follows:
Summary
The State Planning Commission (Commission), pursuant to N.J.S.A.
52:18A-203, proposes N.J.A.C. 5:85-7.21(f) to extend the period of
approvals otherwise set forth in N.J.A.C. 5:85-7.21, which period
was previously suspended by operation of the Permit Extension Act, for
certain approvals including, but not limited to, plan endorsements and
center designations.
On September 6, 2008, the Legislature enacted the Permit Extension
Act of 2008, P.L. 2008, c. 78. The Act provided that, for certain
identified government approvals, the running of the period of approval
was automatically suspended for a period of time designated as the
“extension period.” The original extension period set forth in Chapter 78
ran from January 1, 2007, through July 1, 2010. The Legislature
subsequently extended that extension period on two occasions: through
December 31, 2012 (pursuant to P.L. 2009, c. 336), and then through
December 31, 2014 (pursuant to P.L. 2012, c. 48). Included among the
approvals covered by the Act are, among others, plan endorsements and
center designations.
The proposed subsection provides that any endorsement of a plan,
designation of a center, or other approval governed by subsections (a)
through (e) approved by the Commission prior to September 6, 2008, is
extended an additional three years beyond its otherwise applicable
expiration date. This extension in no way prevents a municipality from
re-establishing or amending any endorsement of a plan, designation of a
center, or other approval prior to expiration of such.
Since February 2010, the recessionary low point for private sector
employment in New Jersey, the policies implemented by the State of
New Jersey have led to significant economic improvement, most notably
the creation of more than 140,000 private sector jobs and a significant
reduction in the unemployment rate. Nevertheless, due to, among other
things, the recession and its lingering impacts, the reality for many
municipalities is that development and redevelopment projects have been
delayed. Accordingly, despite the best efforts of the private sector and
governments at all levels, development and redevelopment previously
contemplated has not come to fruition at the pace once anticipated.
Those economic realities must be viewed in light of other
circumstances impacting municipalities relevant to plan endorsement and
center designation. For example, for many municipalities the expense of
re-establishing plan endorsements or center designations – costs that
often times can equal hundreds of thousands of dollars – may be
untenable. Given limited municipal resources, some towns are refocusing
their limited resources to only the most essential services. In view of that
reality, many municipalities would suffer a significant financial hardship
in the near-term if required to re-establish a plan endorsement or center
designation.
Those expenses must be juxtaposed with the impact of failing to reestablish plan endorsement or center designation. In short, failure to reestablish plan endorsement or center designations may only compound
the problem for municipalities as these designations facilitate smart
growth in myriad ways including eligibility for economic incentives and
triggering of land use standards. Failure to maintain plan endorsement
and center designation status would thus frustrate economic development
and re-development, thereby perpetuating the economic circumstances
that have, in recent years, delayed economic growth in some areas.
Accordingly, the Commission proposes to amend N.J.A.C. 5:85-7.21
by extending, for three years, the validity of plan endorsements and
center designations approved by the Commission prior to September 6,
(CITE 46 N.J.R. 2106)
2008. Doing such will not only delay the incursion of significant costs by
impacted municipalities (thereby allowing limited resources to be focused
on other essential services), but will also ensure certainty for businesses
in the near-term that are considering economic development and redevelopment projects.
As the Commission has provided a 60-day comment period for this
notice of proposal, this notice is excepted from the rulemaking calendar
requirements, pursuant to N.J.A.C. 1:30-3.3(a)(5).
Social Impact
The proposed amendment at N.J.A.C. 5:85-7.21(f) will have a positive
social impact in municipalities that will benefit from economic activity,
job creation, and revenue generation. As discussed in the Summary
above, this amendment benefits municipalities in two related ways. First,
the amendment delays the incursion of significant expense by
municipalities seeking to re-establish plan endorsements and center
designations, thereby allowing their limited resources to be re-directed to
essential services and other needs. Second, this amendment ensures that
specified geographic areas remain eligible for myriad economic
incentives and land use standards, ensuring certainty for the near-term
land use horizon, thereby facilitating economic activity and job creation
that, in turn, will lead to revenue generation in the form of, among other
things, increased ratable and taxable income.
From an economic development perspective, the proposed amendment
will provide certainty to the business community. By understanding the
near-term land use horizon, that certainty will facilitate economic activity
and job creation.
Economic Impact
The proposed amendment at N.J.A.C. 5:85-7.21(f) will have a positive
economic impact on the State and impacted municipalities. Not only will
municipalities delay the incursion of significant expense in seeking to reestablish plan endorsements and center designations, but this amendment
ensures that specified geographic areas remain eligible for myriad
economic incentives and land use standards, increasing certainty in the
near-term land use horizon, thereby facilitating economic activity, job
creation, and revenue generation.
Federal Standards Statement
There are no Federal standards or requirements applicable to the
proposed amendment. As a result, a Federal standards analysis is not
required.
Jobs Impact
The proposed amendment at N.J.A.C. 5:85-7.21(f) may have a positive
impact on jobs and job growth in the State. As discussed in the Social
Impact and Economic Impact above, the proposed amendment will
ensure that specified geographic areas remain eligible for myriad
economic incentives and land use standards. As such, developers will
have greater certainty with respect to the near-term land use horizon and
may be more inclined to proceed with economic development and
redevelopment in specified areas.
Agriculture Industry Impact
The proposed amendment at N.J.A.C. 5:85-7.21(f) is unlikely to have
an appreciable impact on the agriculture industry because the vast
majority of impacted land is not in agricultural production.
Regulatory Flexibility Statement
The proposed amendment at N.J.A.C. 5:85-7.21(f) imposes no
reporting, recordkeeping, or other compliance requirements on small
business. The basis for this finding is that plan endorsement and center
designations are sought by municipalities – not businesses.
Housing Affordability Impact Analysis
The proposed amendment at N.J.A.C. 5:85-7.21(f) is unlikely to result
in a significant change in the average costs associated with housing. The
acreage of land affected by the proposed amendment is fairly minimal in
comparison to the acreage of land in New Jersey in total, and, therefore,
the amendment is unlikely have a measurable effect on housing costs.
Smart Growth Development Impact Analysis
The proposed amendment at N.J.A.C. 5:85-7.21(f) will have a positive
impact on smart growth areas in the State through the maintenance of
NEW JERSEY REGISTER, MONDAY, OCTOBER 20, 2014
PROPOSALS
OTHER AGENCIES
existing Planning Areas 1 and 2 and center-designated lands, thus
encouraging additional housing production in those areas.
Full text of the proposal follows (additions indicated in boldface
thus):
5:85-7.21 Period of endorsement
(a) Endorsement of any plan shall be valid for 10 years.
(b) In the Pinelands, as defined by N.J.A.C. 7:50-2.11, the Pinelands
Commission’s certification of a municipality’s master plan and land use
ordinances pursuant to N.J.A.C. 7:50-3.31 et seq., is deemed equivalent
to endorsement by the Commission for the purposes of qualifying
municipalities for benefits of plan endorsement, provided the
municipality’s master plan and land use ordinances remains certified.
Pinelands Regional Growth Areas, Pinelands Towns, and Pinelands
Villages within the municipalities having Pinelands Commission certified
plans and implementing land use ordinances are deemed equivalent to
designated regional centers, town centers, and village centers,
respectively, as defined in the State planning rules and State Plan, for the
purposes of determining eligibility for State agency benefits of plan
endorsement.
(c) Urban complex strategic revitalization plans and corridor plans,
including any centers, cores, or nodes designated therein, approved prior
to January 7, 2002, shall remain endorsed for a period of 10 years from
January 7, 2002.
(d) Designated centers, cores, and nodes approved prior to January 7,
2002, shall remain endorsed for a period of six years from January 7,
2002.
(e) Designated centers approved after January 7, 2002, and prior to
July 1, 2004, other than centers designated in an endorsed plan, shall be
endorsed for a period of six years from the date of designation by the
Commission.
(f) Any endorsement of a plan, designation of a center, or other
approval governed by (a) through (e) above approved by the
Commission prior to September 6, 2008, is hereby extended an
additional three years beyond its otherwise applicable expiration
date. This extension, however, in no way prevents a municipality
from re-establishing or amending any endorsement of a plan,
designation of a center, or other approval prior to expiration of such.
__________
OTHER AGENCIES
STATE
(a)
NEW JERSEY ECONOMIC DEVELOPMENT
AUTHORITY
Administrative Rules; Fees
Authority Assistance Programs; Direct Loan
Program
Real Estate Impact Fund
Proposed Amendments: N.J.A.C. 19:30-6.1 and
19:31-3.1
Authorized By: New Jersey Economic Development Authority,
Michele Brown, Chief Executive Officer.
Authority: N.J.S.A. 34:1B-1 et seq.
Calendar Reference: See Summary below for explanation of
exception to calendar requirement.
Proposal Number: PRN 2014-178.
Submit written comments by December 19, 2014, to:
Jacob Genovay, Senior Legislative and Regulatory Officer
New Jersey Economic Development Authority
PO Box 990
Trenton, NJ 08625-0990
jgenovay@njeda.com
The agency proposal follows:
Summary
The New Jersey Economic Development Authority (“EDA” or
“Authority”) is proposing amendments to establish certain terms and
eligibility requirements for a new loan product, entitled the Real Estate
Impact Fund, intended to support and foster redevelopment in strategic
urban and other significant locations.
Specifically, the proposed amendment at N.J.A.C. 19:30-6.1(a)5
establishes an application fee for assistance under the Real Estate Impact
Fund of $2,500 and requires an eligible developer or business to pay the
full amount of direct costs of any analysis by a third party retained by the
Authority, if the Authority deems such retention to be necessary.
The proposed amendment at new N.J.A.C. 19:31-3.1(b)8 provides that
the maximum loan amount will be $3 million, not to exceed 25 percent of
the total project costs; and the total amount of public assistance that a
developer or business may receive shall not exceed 50 percent of the total
project costs.
The proposed amendment at new N.J.A.C. 19:31-3.1(h) provides that
proceeds of Real Estate Impact Fund loans may be used for eligible
project development costs within municipalities qualified to receive
assistance under P.L. 1978, c. 14 (N.J.S.A. 52:27D-178 et seq.) or within
Fort Monmouth or as part of New Jersey university/college sponsored
projects that are public-private partnerships that promote emerging
technologies or industries.
Finally, the proposed amendment at new N.J.A.C. 19:31-3.1(i)6
provides that the rate of interest for Real Estate Impact Fund loans shall
be determined by the economic feasibility and economics pertaining to
the return on investment and the ability to attract the required investment;
and full repayment shall be due and payable to the Authority at the earlier
of the end of the loan term or a liquidity event, on terms and conditions
mutually agreed upon based on the structure and merits of the project.
As the Authority has provided a 60-day comment period in 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 proposed amendments will have a positive social impact by
offering assistance to revitalize communities through development and
redevelopment initiatives, including mixed use, retail, office, industrial,
entertainment venues, associated parking garage structures, and/or land
acquisition/assemblages for development, in critical areas of the State.
Economic Impact
The EDA has utilized $10 million of Authority funds to capitalize the
Real Estate Impact Fund, which may result in increased capital available
to eligible applicants to support necessary project development costs such
as property acquisition and assembly, demolition and site clearance,
environmental investigation and remediation, pre-development costs, onsite infrastructure, general construction or rehabilitation, and associated
soft development expenses.
Federal Standards Statement
A Federal standards analysis is not required because the proposed
amendments are not subject to any Federal requirements or standards.
Jobs Impact
The proposed amendments, which establish certain terms and
eligibility requirements for the newly-established Real Estate Impact
Fund, may result in an indeterminate number of construction jobs and
new or retained full-time jobs derived through eligible development and
redevelopment projects.
Agriculture Industry Impact
The proposed amendments will have no impact on the agriculture
industry of the State of New Jersey.
Regulatory Flexibility Statement
The proposed amendments do not impose reporting, recordkeeping, or
other compliance requirements on small business, as defined in the
Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., because the Real
Estate Impact Fund is intended to support development and
redevelopment projects, which are invariably advanced by large- and
medium-sized developers and business entities. The proposed fees, which
NEW JERSEY REGISTER, MONDAY, OCTOBER 20, 2014
(CITE 46 N.J.R. 2107)