N.J. Admin. Code § 13:47-6.3 - Use of proceeds; capital improvements

(a) The entire net proceeds of the games of chance must be devoted to authorized purposes.

(b) A qualified organization shall not provide all or any portion of the net proceeds from a game of chance directly to an individual. A qualified organization may use net proceeds to pay expenses on the behalf of an individual for authorized purposes.

(c) A bona fide church or religious congregation or religious organization, charitable, educational or fraternal organization, civic or service club, officially recognized volunteer fire company, or officially recognized volunteer first aid or rescue squad licensed to hold and operate games of chance may use the net proceeds of games of chance for capital improvements to a facility owned by the licensee only if:

1. The facility is devoted full-time to an authorized purpose;

2. A portion of the facility is devoted full-time to an authorized purpose, in which case all of the net proceeds may be used for capital improvements to that portion of the facility so devoted; or

3. All or a portion of the facility is devoted part-time to an authorized purpose, in which case a percentage of the net proceeds may be used for capital improvements to the facility or to that portion of a facility so devoted. The percentage of the net proceeds which may be used for capital improvements under this paragraph shall be equal to the percentage that represents the number of days of the preceding calendar year during which the facility or portion thereof was devoted to an authorized purpose.

(d) In determining the amount of net proceeds a licensee may use for capital improvements pursuant to (b) above, an amount not to exceed 25 percent of the total cost of the capital improvement shall be allowed for facility space used full-time for administrative or operational activities of the licensee, provided the space is located in a facility at least half of which was devoted to an authorized purpose for at least 70 days in the previous calendar year.

(e) The use of a facility or a portion thereof for an authorized purpose for at least three hours in any one day shall be sufficient to substantiate that the facility or portion thereof was devoted that day to an authorized purpose.

Notes

N.J. Admin. Code § 13:47-6.3

Amended by 47 N.J.R. 1953(b), effective 8/3/2015