SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 3456

STATE OF NEW JERSEY

DATED:  DECEMBER 9, 2024

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3456.

This bill permits amusement games licenses to be issued to certain nonprofit organizations.  Under the bill, a charitable organization determined by the federal Internal Revenue Service to be a tax exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code, would be eligible to be issued an amusement games license pursuant to the “Amusement Games Licensing Law,” to conduct amusement games at festivals, carnivals, or fairs held for the benefit of, or sponsored by, the tax exempt organization, provided that all other requirements for licensure to conduct amusement games are met.

     Under current law, amusement games are permitted to be conducted by licensed entities at locations that include certain entertainment venues of the licensee, recognized amusement parks, seashore or other resort areas constituting amusement or entertainment areas, and at agricultural fairs, 4-H Clubs or exhibitions.  Qualified organizations are licensed by the Legalized Games of Chance Control Commission in the Division of Consumer Affairs in the Department of Law and Public Safety.  Licensed entities are additionally subject to licensing by municipalities that have approved the conduct of amusement games within their boundaries.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that this bill would result in an indeterminate annual State expenditure increase related to the expansion, processing, and regulation of amusement games licenses to certain qualifying nonprofit organizations by the Department of Law and Public Safety.  The OLS further notes that the bill may increase annual State revenue collections from application fees, licensure fees, fines, and penalties by indeterminate amounts.

      As licensed entities are additionally subject to licensing by municipalities that have approved the conduct of amusement games within their boundaries, this bill may affect municipal revenues and expenditures.