New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 70 - HORSE RACING › Subchapter 1 - GENERAL RULES › Section 13:70-1.30 - Horsemen associations

Current through Register Vol. 56, No. 14, July 15, 2024
(a) It shall be
				the intent of this rule to establish guidelines that ensure that funds
				allocated to the horsemen's organizations by statute (5:5-66 ) are used to finance
				programs to benefit all New Jersey horsemen and that administrative and
				overhead costs are reasonably related to such programs.
(b) Funds allocated to the horsemen's
				organizations by statute must be used to benefit all New Jersey horsemen.
				Membership in the horsemen's organizations shall not be a condition for
				receiving benefits.
(c) Amounts
				collected as voluntary dues from members are excluded from this rule. However,
				funds acquired from sources other than the statutory allocation must be kept
				separate and apart from funds obtained from the statutory allocation.
(d) The horsemen's organizations shall
				maintain adequate records concerning receipt of and distribution of funds
				allocated to them by statute. The New Jersey Racing Commission shall have
				access to all records maintained by the horsemen's organizations which relate
				directly or indirectly to funds allocated by statute.
(e) The horsemen's organizations shall submit
				detailed budgets to the Racing Commission by December 15 of each year,
				identifying the source and use of funds, as well as any surplus or deficit that
				may result. The budget must also include the actual prior year's expenses in
				each category for comparison purposes. In addition, quarterly budget reports
				must be filed with the Commission 45 days after the close of each quarter.
				These reports must reflect actual income and expenses to date, as well as
				projected income and expenses for the remainder of the year. Prior approval
				must be obtained from the Commission for all expenditures that exceed the
				approved budget levels.
(f) The
				horsemen's organizations Audited financial statements, including balance sheet,
				income statement and source and use of funds, prepared by a certified public
				accountant of New Jersey, must be filed with the Commission by February 28 for
				the preceding calendar year.
(g)
				Funding for benevolent programs, including but not limited to pension plans,
				health and life insurance plans, etc. will be considered reasonable if such
				program funding on an annual basis is at least 70 percent of the total
				statutory allocation. Whether or not a program will be considered a "benevolent
				program" will be decided upon application to the Racing Commission. Annual
				benevolence program funding below 70 percent of the total statutory allocation
				requires justification satisfactory to the Commission. The administrative costs
				and overhead expenses of administering the horsemen's organizations including
				benevolent programs may not exceed 30 percent of the total allocated by statute
				unless and to the extent specifically authorized in advance by the Racing
				Commission.
(h) General
				administration and overhead expenses are considered reasonable if they are less
				than 30 percent of the statutory allocation. Funding above 30 percent of the
				total statutory allocation requires justification satisfactory to the
				Commission. Within this category, expenses for travel, entertainment, meals and
				lodging are considered reasonable if they conform to the horsemen's
				organizations' travel and expense reimbursement guidelines on file and approved
				by the Commission. For expenses in excess of amounts allowed under these
				guidelines, the Racing Commission may require special justification and/or
				prior approval.
(i) Payments to
				national programs are allowed only to the extent that the horsemen's
				organizations can clearly show that the payments benefit all New Jersey
				horsemen, not just members of these organizations.
(j) If the accumulated surplus exceeds $
				250,000 at the end of a calendar year, horsemen's organizations are required to
				utilize the amount in excess of the $ 250,000 for new or expanded benevolent
				programs or justify to the Racing Commission why they do not intend to utilize
				the excess funds.
(k) Violation of
				this rule may subject the organization to a fine not to exceed $ 1,000 per
				violation.