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F I S C A L I M P A C T R E P O R T
SPONSOR HJC
ORIGINAL DATE
LAST UPDATED
3/06/07
HB 1333/HJCS
SHORT TITLE
Public Peace. Health. Safety & Welfare
(Clarifying Procedures for Background
Investigation by Gaming Control Board)
SB
ANALYST Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB664
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY07
FY08
FY09 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
.01*
See Fiscal
Impact and
Possible
Questions
Recurring General
Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Gaming Control Board
State Racing Commission
SUMMARY
Synopsis of Bill
House Bill 1333 amends Section 60-2E-7 NMSA 1978 to allow the Gaming Control Board to
conduct background investigations pursuant to the Horse Racing Act and updates language to
reflect the applicant’s or licensee’s documents and records may be audited, photocopied and
pg_0002
House Bill 1333/HJCS – Page
2
examined in order for GCB to implement the state’s policy on gaming. It also requires an
applicant for a license, certification of finding or suitability or a work permit to supply GCB with
two sets of fingerprints. The application will constitute consent to a national criminal
background check of the applicant. It adds that GCB’s law enforcement officers may request
criminal history information from the FBI or any law enforcement agency.
FISCAL IMPLICATIONS
In its analysis of HB664, which also addresses Gaming Control Board conducting background
investigations for the State Racing Commission, the State Racing Commission states that anyone
currently involved in both racing and gaming must obtain two licenses and two backgrounds,
which results in a negative fiscal impact. However, if duplication of services is eliminated and
background investigations a done by one agency there will be a significant savings to the public.
According to the Gaming Control Board HB664 analysis, there will an increased financial
responsibility on the Gaming Control Board. Hard costs for each background check is
approximately $25 per person and the Racing Commission currently licenses approximately
3500 individuals. These individuals will need background checks conducted by GCB.
SIGNIFICANT ISSUES
It relieves the State Racing Commission from conducting background checks.
The State Racing Commission notes that if the change is adopted it would allow for a more
timely background investigations.
ADMINISTRATIVE IMPLICATIONS
The State Racing Commission explains that currently racing participants are required to have
licenses for both racing and gaming. This bill will eliminate the duplication of background
checks, which will benefit the public. The State Racing Commission will only license concession
employees in a restricted area, all other concession employees will not be licensed by the State
Racing Commission nor will it approve admission and concession prices.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to House Bill 664 which makes numerous changes to the current laws regulating horse
racing by adopting definitions as they generally exist within the current regulations of the Racing
Commission; reorganizing the current statute regulating horse racing; requiring the Gaming
Control Board and the Racing Commission to coordinate with each other in conducting
background checks for the Racing Commission; raising civil penalties for violations of the Act
from a maximum of $5,000 to $10,000; raising the licensing fees for race track applicants and
secondary license applicants; and creates a new fund.
OTHER SUBSTANTIVE ISSUES
The State Racing Commission explains that the licensing conducted by GCB does not constitute
a consolidation of Racing Commission and Gaming Control Board.
pg_0003
House Bill 1333/HJCS – Page
3
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
Anyone currently involved in both racing and gaming must obtain two licenses and two
background checks.
POSSIBLE QUESTIONS
If the intent of the bill is to help avoid duplication of background checks, then how many
duplicated background checks will be avoided.
Of those background checks that are not duplicated, how many new background checks will
GCB add to it workload.
EO/csd