New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 71 - HARNESS RACING › Subchapter 1 - GENERAL RULES › Section 13:71-1.25 - Horsemen associations

Current through Register Vol. 56, No. 14, July 15, 2024
(a) It shall be
				the intent of this section 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 to these
				associations 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, for the following calendar year, identifying the
				source and use of funds and any surplus or deficit that may result. The budget
				must 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 that year. Prior approval must be obtained from the
				Commission for all expenditures that exceed the approved budget
				levels.
(f) 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 of each year 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 section may subject the
				organization to a fine not to exceed $ 1,000 per violation.