A2409

An Act concerning the fee on casino parking facilities and amending P.L.1993, c.159.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1993, c.159 (C.5:12-173.1) is amended to read as follows:

1. The Legislature finds that the single most significant factor contributing to the cost of constructing, maintaining, operating and supporting highways, roads and infrastructure, in Atlantic City, and particularly in the "corridor" region of the city, is the heavy volume of motor vehicular traffic occasioned by the attraction of casino gambling in Atlantic City. This traffic is encouraged by the provision of free parking by casino operations, by the relative underdevelopment of public transportation services, and by the shortage of hotel accommodations in the city. While the Legislature has taken various measures, most notably the "South Jersey Transportation Authority Act," P.L.1991, c.252 (C.27:25A-1 et al.), to provide and improve public transportation services in the South Jersey region as an alternative to the use of motor vehicles, the heavy capital costs associated with reconstruction of the corridor region's infrastructure require a continuous source of public funding. The Legislature declares, therefore, that it is in the public interest to require a standard minimum charge for casino parking within Atlantic City, and to impose fees on amounts received from those charges, with the proceeds of those fees to be used by the Casino Reinvestment Development Authority for projects which are related to improving the highways, roads, infrastructure, traffic regulation and public safety of the city, or which are otherwise necessary or useful to the economic development and redevelopment of the city in this regard. It is also in the public interest to establish a special temporary fund for the use of existing moneys of the authority for the provision of financial assistance to casino licensees to construct, reconstruct or rehabilitate hotel rooms in Atlantic City.

The Legislature declares that it is the public purpose of this amendatory act, P.L.1996, c.118 (C.5:12-173.3a et al.), that financial assistance to casino licensees to construct, reconstruct or rehabilitate hotel rooms in Atlantic City shall be determined after excluding costs reasonably related to space used for the conduct of casino gaming. It was, and continues to be, the public purpose of P.L.1993, c.159 (C.5:12-173.1 et seq.) that financial assistance may be provided to a project which includes, incorporates, facilitates or supports space used for the conduct of casino gaming in a casino hotel facility, but only for costs reasonably related to hotel rooms and their appurtenant facilities in the project.

The Legislature declares that it is the public purpose of this amendatory and supplementary act, P.L.2003, c.116 (C.5:12-148.1 et al.), that the proceeds of the increase in the fee imposed on the minimum charge for casino hotel parking within Atlantic City be deposited into the Casino Revenue Fund in State fiscal years 2004 through 2006, in order to assist the Casino Revenue Fund, and thereafter for use for the purposes specified.

The Legislature finds and declares that it is the public purpose of this amendatory act, P.L. , c. (pending before the Legislature as this bill), that the entire proceeds of the fee imposed on the charge for casino hotel parking within Atlantic City be available to the Casino Reinvestment Development Authority for projects and other purposes to support the continued development and betterment of Atlantic City.

(cf: P.L.2003, c.116, s.8)

2. Section 4 of P.L.1993, c.159 (C.5:12-173.4) is amended to read as follows:

4. a. The State Treasurer shall deposit [the first $1.50 of] the proceeds of the fee collected pursuant to section 3 of this act, P.L.1993, c.159 (C.5:12-173.3) into a special fund established and held by the State Treasurer and made available for the exclusive use of the Casino Reinvestment Development Authority established pursuant to section 5 of P.L.1984, c.218 (C.5:12-153), [and shall deposit the remaining $1.50 of the fee into the Casino Revenue Fund established pursuant to section 145 of P.L.1977, c.110 (C.5:12-145) in State fiscal years 2004 through 2006. Beginning in] except that in State fiscal year 2007 [and thereafter] through State fiscal year 2025, the State Treasurer shall deposit [the remaining] the proceeds from $1.50 of the fee as follows: $0.50 into the Casino Revenue Fund and $1.00 to the authority for its purposes pursuant to law, as approved by the membership of the authority, provided that the authority shall use the portion of this $1.00 that is necessary to carry out the purpose of section 13 of P.L.2003, c.116 (C.5:12-173.22).

b. Amounts in the special fund shall be [expended by the authority for eligible projects in the corridor region of the City of Atlantic City in Atlantic County as defined by regulation of the authority, which are related to improving the highways, roads, infrastructure, traffic regulation and public safety of that city or which are otherwise necessary or useful to the economic development and redevelopment of the city in this regard] made available to the authority for projects located within the boundaries of the City of Atlantic City in Atlantic County, or for any other purposes of the authority as set forth in section 12 of P.L.1984, c.218 (C.5:12-160), as approved by the authority. The State Treasurer may require that a financial plan demonstrating the need, schedule, and use for moneys placed in the special fund be approved by the State Treasurer prior to allocation. Pending application of moneys held in this special fund for these purposes, the moneys shall be invested in accordance with applicable law and income therefrom shall be credited exclusively to the special fund.

(cf: P.L.2003, c.116, s.11)

3. This act shall take effect on the first day of the second month next following the date of enactment.

STATEMENT

This bill requires the full amount of revenue generated by the casino hotel parking fee to be made available to the Casino Reinvestment Development Authority (CRDA) for projects located within the boundaries of the City of Atlantic City.

Current law requires casino licensees to charge and collect a fee of $3.00 per day for the use of a parking space at a casino hotel facility. Of that amount, the revenue derived from $2.50 of the parking fee is deposited into a special fund held by the State Treasurer and made available for the use of the CRDA for eligible public improvements and economic development and redevelopment projects within the corridor region of the City of Atlantic City. The revenue derived from the remaining $0.50 of the parking fee is deposited into the Casino Revenue Fund. The Casino Revenue Fund accounts for the taxes imposed on casinos, internet gaming, sports betting, and other related activities. Moneys in the Casino Revenue Fund are required to be appropriated to support reductions in property taxes, utility charges, and other specified expenses of eligible senior citizens and individuals with disabilities.

Under the bill, the revenue derived from $0.50 of the parking fee currently deposited into the Casino Revenue Fund would instead be deposited into the special fund held by the State Treasurer and made available for the use of the CRDA beginning in State fiscal year 2026. Revenues from the parking fee would no longer be deposited into the Casino Revenue Fund. The bill also amends current law to provide that parking fee revenues deposited into the special fund would be available for use by the CRDA for any projects located within the boundaries of the City of Atlantic City, or for other statutory purposes of the authority, as approved by the CRDA. The CRDA would no longer be required to use the moneys in the special fund for projects located only within the corridor region of Atlantic City.