0001| HOUSE BILL 346 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| VINCENT GALLEGOS | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO GAMES OF CHANCE; ENACTING THE VIDEO GAMING ACT; | 0013| ESTABLISHING PROCEDURES; PRESCRIBING PENALTIES; IMPOSING TAXES | 0014| AND FEES; PERMITTING VERTICAL INTEGRATION OF CERTAIN LICENSEES; | 0015| PROVIDING FOR A CERTAIN LOCAL OPTION; MAKING APPROPRIATIONS. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. SHORT TITLE.--Sections 1 through 22 of this act | 0019| may be cited as the "Video Gaming Act." | 0020| Section 2. PURPOSE.--The purpose of the Video Gaming Act | 0021| is to combat the growth of illegal gaming through the | 0022| establishment of a regulated system of video games of chance. | 0023| The legislature finds that: | 0024| A. the technology now exists to provide a secure | 0025| system of regulated gaming; | 0001| B. this system will: | 0002| (1) offer fair play and return to consumers who | 0003| use the system; | 0004| (2) provide needed revenue to the state and its | 0005| political subdivisions; | 0006| (3) provide additional entertainment to attract | 0007| tourists and increase their length of stay; and | 0008| (4) provide additional jobs for the citizens of | 0009| New Mexico. | 0010| Section 3. DEFINITIONS.--As used in the Video Gaming Act: | 0011| A. "age controlled environment" means a location, or | 0012| portion of a location, licensed for the on premises consumption | 0013| of spirituous liquors and the interior of which is not | 0014| observable by any individual under the age of twenty-one years. | 0015| No individual under the age of twenty-one years may be employed | 0016| to work in the age controlled environment; | 0017| B. "application" means the forms and schedules | 0018| prescribed by the commission upon which an applicant applies for | 0019| a license or license renewal and includes, but is not limited | 0020| to, information, disclosure statements and financial statements | 0021| submitted; | 0022| C. "commission" means the video gaming commission; | 0023| D. "credit" means the basic unit of a win on a video | 0024| gaming device which entitles the player to one additional free | 0025| game at the lowest monetary rate at which one game may be | 0001| purchased on that device; | 0002| E. "financial source" means any person, partnership, | 0003| trust or corporation that provides credit for capital or | 0004| operations where the terms of repayment extend for more than | 0005| ninety days; | 0006| F. "gross proceeds" means the total value of money | 0007| placed in a video gaming device by consumers; | 0008| G. "holding a substantial interest" means: | 0009| (1) ownership, operation, management or | 0010| conducting the business of a proprietorship, directly or | 0011| indirectly, by an individual or spouse of the individual; | 0012| (2) sharing or being entitled to share in any | 0013| profits, actual or potential, of a partnership or trust by an | 0014| individual or spouse of the individual; | 0015| (3) being an officer, director, stockholder or | 0016| spouse of a stockholder in a corporation which is not publicly | 0017| traded; | 0018| (4) being the holder, legally or beneficially, | 0019| of five percent or more of any class of stock or other evidence | 0020| of ownership of a publicly traded corporation or other public | 0021| traded entity or being the spouse of such a holder; | 0022| (5) furnishing five percent or more of the | 0023| capital of any entity. | 0024| A person holding a substantial interest in any entity shall | 0025| be deemed to hold a substantial interest in every entity in | 0001| which the first entity holds a substantial interest; | 0002| H. "location agreement" means a written agreement | 0003| between an operator and the person or entity owning or | 0004| controlling a licensed premises for the placement of video | 0005| gaming devices within the location for use by the public. If | 0006| the person or entity owns the devices, the person or entity's | 0007| sworn statement to that effect shall be deemed a location | 0008| agreement; | 0009| I. "manufacturer" means a person or entity which | 0010| assembles, from subparts or raw materials, a complete video | 0011| gaming device; | 0012| J. "manufacturer's license" means a license issued | 0013| by the superintendent which authorizes the manufacture and | 0014| transfer or sale of video gaming devices to an operator; | 0015| K. "net proceeds" means the gross proceeds minus all | 0016| prizes paid out to players of a video gaming device; | 0017| L. "operator" means any person or entity who owns, | 0018| services or maintains video gaming devices, but does not include | 0019| any person owning or controlling, or holding a substantial | 0020| interest in an entity which owns or controls, a licensed | 0021| premises for which there is a location agreement; | 0022| M. "operator's license" means a license issued by | 0023| the superintendent which authorizes a person to engage in the | 0024| business of an operator; | 0025| N. "owner-operator" means any person or entity who | 0001| owns, services or maintains video gaming devices, owns or leases | 0002| one premises and is the holder of the premises license where the | 0003| video gaming devices are located; | 0004| N. "parimutuel horseracing facility" means a | 0005| premises licensed to hold public horseraces or horse meetings | 0006| for profit or gain; | 0007| O. "play" means to activate a video gaming device | 0008| and to manipulate or work it for the purpose of winning as | 0009| indicated by the pay-out schedule or accumulating credits to be | 0010| replayed or to be cashed out of the machine in the form of a | 0011| printed ticket to be exchanged for cash; | 0012| P. "premises license" means a license issued by the | 0013| superintendent to a person or entity owning or controlling a | 0014| location and authorizing the placement of video gaming devices | 0015| at that location for play by the public; | 0016| Q. "qualified sleeping unit" means a personal | 0017| sleeping room rented commercially to guests or transients whose | 0018| average stay is less than thirty days; | 0019| R. "resort" means a location within a resort area | 0020| having at least one hundred qualified sleeping units, a premises | 0021| licensed for the consumption of spirituous liquors and a | 0022| restaurant; | 0023| S. "resort area" means a geographical region | 0024| designated as a resort area by the commission and which is in a | 0025| local option district in which the local option provisions of | 0001| the Video Gaming Act have been adopted by the voters; | 0002| T. "spirituous liquors" means alcoholic beverages | 0003| except fermented beverages such as wine, beer and ale; | 0004| U. "superintendent" means the superintendent of | 0005| regulation and licensing; and | 0006| V. "video gaming device" means an electronic machine | 0007| which utilizes a cathode ray tube or video display screen and | 0008| microprocessors and which is available for consumer play upon | 0009| payment of specified consideration, with winners immediately | 0010| determined by the application of the element of chance, whether | 0011| or not accompanied by an element of skill, and with a reward of | 0012| possible games or credits displayed on the device to the | 0013| winners. | 0014| Section 4. COMMISSION ESTABLISHED--MEMBERSHIP--REQUIREMENTS.-- | 0015| A. There is created the "video gaming commission" | 0016| which shall consist of five members appointed by the governor | 0017| with the advice and consent of the senate. Appointees not | 0018| confirmed by the senate shall continue to serve until the senate | 0019| has failed to confirm. Prior to appointing an individual, the | 0020| governor shall request the superintendent to conduct an inquiry | 0021| into the individual's background, with particular regard to | 0022| financial stability, integrity, responsibility and reputation | 0023| for good character. | 0024| B. Commission members serve three-year terms, | 0025| staggered by lot. One of the initial appointees shall serve | 0001| until December 31, 1997, two shall serve until December 31, | 0002| 1998, and the remaining two until December 31, 1999. Commission | 0003| member shall be eligible for reappointment only once. The chair | 0004| of the commission shall be appointed by the governor and shall | 0005| serve as chair at the pleasure of the governor. The vice-chair | 0006| of the commission, who shall have the full power of the chair in | 0007| the absence of the chair, shall be elected by the commission for | 0008| a term of one year. Appointments to fill vacancies shall be for | 0009| the unexpired term of the member replaced. No person shall be | 0010| appointed or continue to serve if the person has ever been | 0011| convicted of or pled guilty or nolo contendere to an offense | 0012| punishable by imprisonment for more than one year. | 0013| C. Each commission member may engage in any other | 0014| business, occupation or gainful employment that is not in | 0015| conflict with the duties of the commission. One member of the | 0016| commission shall represent those who manufacture, sell or | 0017| operate video gaming devices. Notwithstanding the provisions of | 0018| Subsection A of Section 5 of the Video Gaming Act, the member so | 0019| representing may hold an interest and accept anything of value | 0020| related to bona fide employment or bona fide business ownership. | 0021| The commission shall meet at least once each month and at the | 0022| call of the chair. The commission shall also meet upon the call | 0023| of two or more members after they have given seventy-two hour | 0024| written notice to each member. | 0025| D. The chair of the commission shall receive seven | 0001| thousand dollars ($7,000) per year and the other members six | 0002| thousand dollars ($6,000). All commission members shall be | 0003| reimbursed in accordance with the provisions of the Per Diem and | 0004| Mileage Act. | 0005| E. A majority of the commission shall constitute a | 0006| quorum for purposes of conducting business, but no action or | 0007| decision of the superintendent shall be reversed or modified by | 0008| the commission unless at least three members vote to do so. | 0009| F. Initial appointments to the commission shall be | 0010| made within thirty days of the effective date of the Video | 0011| Gaming Act. | 0012| G. The commission shall: | 0013| (1) hear and decide all appeals from decisions | 0014| of the superintendent relative to the granting, suspension, | 0015| revocation, condition or renewal of all licenses; | 0016| (2) impose all fines under the Video Gaming | 0017| Act; | 0018| (3) approve or disapprove rules promulgated by | 0019| the superintendent, provided that the commission shall not | 0020| modify any rule and any rule not disapproved within sixty days | 0021| of submission to the commission shall be deemed approved; | 0022| (4) make an annual report to the governor and | 0023| the legislature on the operation of the Video Gaming Act, | 0024| including any recommendations for changes. | 0025| H. The commission shall approve, by rule, any games | 0001| to be used in a video gaming device. The commission shall | 0002| approve all games which meet the definition of video gaming | 0003| which the commission finds meet the commission's security | 0004| requirements and will further the purposes of the Video Gaming | 0005| Act. The commission may approve games which do not provide | 0006| immediate notice of outcome, but any games so approved shall be | 0007| played only on video gaming devices, shall meet the commission's | 0008| security requirements and shall be subject to the same central | 0009| site computer monitoring system as all other games. The | 0010| commission shall designate resort areas by rule. | 0011| Section 5. PROHIBITED ACTS--PENALTY.-- | 0012| A. No member of the commission or employee of the | 0013| state, or any of its political subdivisions, agencies or | 0014| instrumentalities, shall, directly or indirectly,: | 0015| (1) hold a substantial interest in the | 0016| manufacture, sale, distribution or operation of video gaming | 0017| devices, equipment, services, tickets, machines or any business | 0018| or entity which enters into a location agreement; | 0019| (2) have any interest whatsoever in the | 0020| purchases or sales made by persons licensed under the Video | 0021| Gaming Act or purchase, lease, or sell video gaming equipment, | 0022| services, tickets, machines or other materials; | 0023| (3) solicit or accept any gift, gratuity, | 0024| emolument or employment, of more than de minimis value, from any | 0025| person licensed under the Video Gaming Act, or from any officer, | 0001| agent or employee of such a person; or | 0002| (4) solicit from, request from or recommend to | 0003| any person licensed under that act or any officer, agent or | 0004| employee of such a person, the appointment of any person to any | 0005| place or position. | 0006| B. No person or entity licensed under the Video | 0007| Gaming Act or any officer, agent or employee of such a person or | 0008| entity shall offer to any member or employee of the commission | 0009| or employee of the superintendent any gift, gratuity, emolument | 0010| or employment, of more than de minimis value. | 0011| C. Any person violating the provisions of this | 0012| section is guilty of a fourth degree felony and shall be | 0013| sentenced in accordance with the provisions of Section 31-18-15 | 0014| NMSA 1978. | 0015| Section 6. SUPERINTENDENT--DUTIES.--The superintendent | 0016| shall: | 0017| A. promulgate rules, in accordance with the State | 0018| Rules Act and subject to the approval of the commission, | 0019| relating to: | 0020| (1) authorized premises for video gaming | 0021| devices; | 0022| (2) investigations of prospective or current | 0023| licensees; | 0024| (3) mandating that electronic fund transfers to | 0025| the state of all money due from persons licensed under the Video | 0001| Gaming Act and the necessary implementation requirements; and | 0002| (4) other matters appropriate to carrying out | 0003| the provisions of the Video Gaming Act; | 0004| B. provide staff and other support for the | 0005| commission; | 0006| C. enter into such contracts other legal agreements | 0007| as are necessary to carry out the decisions of the commission; | 0008| D. purchase or lease, in accordance with the | 0009| Procurement Code, a central site computer monitoring system for | 0010| video gaming devices and such other monitoring equipment as the | 0011| commission finds appropriate; | 0012| E. issue all licenses and other documents necessary | 0013| to carry out the purposes of the Video Gaming Act. No person | 0014| shall hold more than one level of license, nor shall a person | 0015| holding a substantial interest in a license of one class hold a | 0016| license of another level, provided, however, that the holder of | 0017| a premises license may hold an operator's license may be an | 0018| owner-operator of that premises license. A person holding a | 0019| substantial interest, prior to January 1, 1995, in a person or | 0020| entity eligible for a level one license may apply for and hold a | 0021| level three license in addition to the level one license so long | 0022| as the ownership of the person or entity does not change. The | 0023| levels of license are as follows: | 0024| (1) level one--manufacturer; | 0025| (2) level two--operator; and | 0001| (3) level three--premises; | 0002| F. annually issue a separate license for each | 0003| qualified video gaming device in operation in the state. The | 0004| license shall not be removable from the device and shall be in | 0005| the form of a numbered sticker which shall be attached to the | 0006| device and indicate that the device has been inspected, although | 0007| not necessarily in that year, and that all taxes and fees have | 0008| been paid; | 0009| G. investigate and then approve or reject a video | 0010| gaming device representative of each type or model proposed to | 0011| be used in video gaming, and license each video gaming device | 0012| prior to its installation or operation in any regulated system | 0013| of video gaming; | 0014| H. investigate and then license each premises upon | 0015| which the video gaming devices are to be played; | 0016| I. conduct spot inspections of video gaming devices | 0017| on the premises where they are being played; | 0018| J. conduct hearings upon complaints charging | 0019| violations of the Video Gaming Act or the superintendent's rules | 0020| and, subject to an appeal to the commission, suspend, revoke or | 0021| place conditions on the use of any license issued under that | 0022| act; | 0023| K. conduct any other hearings provided for in the | 0024| rules of the superintendent; | 0025| L. supervise, audit and investigate the operation of | 0001| all games and devices played under the Video Gaming Act; | 0002| M. investigate for possible approval all persons or | 0003| other entities seeking licenses and all of their financial | 0004| sources. | 0005| Section 7. ADVISORY COMMITTEE--CREATION--DUTIES.--The | 0006| superintendent shall appoint an advisory committee of seven | 0007| members who shall serve at the pleasure of the superintendent. | 0008| They shall receive no per diem or mileage reimbursement or any | 0009| other compensation or reimbursement for their expenses. No | 0010| employee of the state, its political subdivisions, agencies or | 0011| instrumentalities, shall serve on the committee. There shall be | 0012| at least one member representing each of the following areas or | 0013| industries: | 0014| A. the public at large; | 0015| B. the hotel and motel industry; | 0016| C. persons holding level two licenses, or, prior to | 0017| the issuance of such licenses, persons proposing to hold such | 0018| licenses; | 0019| D. the retail liquor industry; | 0020| E. the horse racing industry; | 0021| F. the restaurant industry; and | 0022| G. the fraternal orders. | 0023| The committee shall advise the superintendent and the | 0024| commission on the operation of the Video Gaming Act, any rules | 0025| proposed to be promulgated pursuant to that act, the practical | 0001| effect of any actions proposed to be taken under that act, any | 0002| amendments to that act that might be necessary and any other | 0003| matter the committee deems appropriate. | 0004| Section 8. LICENSES--APPLICATION--FEES.-- | 0005| A. An applicant for a manufacturer's, operator's or | 0006| premises license or any renewal of a license shall file an | 0007| application with the superintendent in a form, and including all | 0008| information, required by rule of the superintendent or the Video | 0009| Gaming Act. The application shall include a sworn statement by | 0010| the principal licensee, or an individual authorized to act on | 0011| behalf of the principal licensee, that the applicant shall | 0012| comply with the Video Gaming Act and all rules promulgated | 0013| pursuant to that act. | 0014| B. The following fees shall be transmitted in | 0015| connection with the application for a license or renewal: | 0016| (1) manufacturer's license--ten thousand | 0017| dollars ($10,000); | 0018| (2) operator's license--three thousand dollars | 0019| ($3,000); | 0020| (3) premises license held by a parimutuel | 0021| horseracing facility or resort--ten thousand dollars ($10,000); | 0022| and | 0023| (4) all other premises license--five hundred | 0024| dollars ($500). | 0025| C. A fee of five hundred dollars ($500) per device | 0001| shall be transmitted with the application for a video gaming | 0002| device license but shall not be transmitted with the application | 0003| for any renewal. This fee shall be in lieu of all other taxes | 0004| and fees, including the gross receipts tax, attributable to the | 0005| device or computed based upon the proceeds from the device | 0006| except for the percentage net proceeds tax. | 0007| Section 9. APPLICATIONS--REQUIREMENTS--APPROVAL.-- | 0008| A. Any person or entity whom the superintendent | 0009| determines is qualified to be licensed, having due consideration | 0010| for the proper protection of the health, safety, morals, good | 0011| order and general welfare of the residents of the state, may be | 0012| issued a license. The burden of proving all qualifications of a | 0013| licensee shall be upon the applicant. | 0014| B. No license shall be issued unless the | 0015| superintendent is satisfied that the applicant: | 0016| (1) is of good character, honesty and | 0017| integrity; | 0018| (2) does not have prior activities, including | 0019| any criminal record, reputation, habits or associations that | 0020| pose a threat to the public interest of the state or the | 0021| effective regulation and control of video gaming within the | 0022| state or create or enhance the dangers of unsuitable, unfair or | 0023| illegal practices, methods or activities in the operation of the | 0024| video gaming or in the business or financial arrangement | 0025| incident to operating of video gaming; | 0001| (3) have adequate business integrity, honesty | 0002| and competence; | 0003| (4) have proposed financing which is: | 0004| (a) adequate for the nature of the | 0005| proposed operation; and | 0006| (b) from financial sources posing no risk | 0007| to the integrity of the regulated system of video gaming; | 0008| (5) have demonstrated sufficient technological | 0009| capability to meet the superintendent's rules; and | 0010| (6) are in all other respects qualified to be | 0011| licensed consistent with the desired policy of the state. | 0012| C. Before any license is issued, every person | 0013| holding a substantial interest in the applicant shall be proven | 0014| by the applicant: | 0015| (1) to be of good character, honesty and | 0016| integrity; and | 0017| (2) to have no prior activities, including any | 0018| criminal record, reputation, habits or associations that pose a | 0019| threat to the public interest of the state or the effective | 0020| regulation and control of video gaming within the state or | 0021| create or enhance the dangers of unsuitable, unfair or illegal | 0022| practices, methods or activities in the operation of the video | 0023| gaming or in the business or financial arrangement incident to | 0024| the operation of video gaming. | 0025| D. An application for a license shall constitute a | 0001| request for the determination of the applicant's general | 0002| character, integrity and ability to participate in, engage in, | 0003| or be associated with a regulated system of video games of | 0004| chance. An applicant shall provide any release or authorization | 0005| determined by the superintendent to be appropriate for the | 0006| consideration of an application. Any written or oral statement | 0007| made in the course of an official proceeding, including any | 0008| investigation, shall be absolutely privileged and shall not | 0009| impose any civil liability. | 0010| E. Until July 1, 1997, no operator's license shall | 0011| be issued to any person who has not been, at the time of | 0012| issuance, a bona fide resident of the state for two years nor | 0013| shall an operator's license be issued to any entity in which a | 0014| person ineligible to hold an operator's license pursuant to this | 0015| subsection holds a substantial interest. An owner-operator may | 0016| be issued an operator's license and a premises license. | 0017| Section 10. LICENSES--TRANSFER--DISPLAY.--No license | 0018| issued pursuant to the Video Gaming Act shall be assignable or | 0019| transferable from person to person or device to device. Any | 0020| license so issued shall be conspicuously displayed at the | 0021| licensee's principal place of business in an area visible to the | 0022| public. | 0023| Section 11. LICENSES--INVESTIGATIONS.-- | 0024| A. Any applicant for or holder of a licensed issued | 0025| under the Video Gaming Act shall produce records or evidence and | 0001| give all information requested by the superintendent or the | 0002| commission. No applicant or holder shall interfere or attempt | 0003| to interfere with any investigation by the superintendent or | 0004| commission. | 0005| B. Every manufacturer's licensee shall immediately | 0006| make available for inspection by any agent of the state all | 0007| papers, books and records produced by any video gaming equipment | 0008| business and all portions of the establishment where equipment | 0009| is manufactured, sold or distributed. Any agent of the state | 0010| shall be given immediate access to any portion of the | 0011| establishment of any licensed manufacturer for the purpose of | 0012| inspecting or examining any records or documents required to be | 0013| kept by the licensee under the Video Gaming Act or any | 0014| superintendent's rule or examining any equipment related to the | 0015| conduct of any Video Gaming Activity. | 0016| C. Every operator and every person owning or | 0017| controlling a premises shall immediately make available for | 0018| inspection by any agent of the state all papers, books and | 0019| records produced by any Video Gaming Activity or business and | 0020| make available all portions of the establishment where | 0021| electronic instant video gaming-related equipment or devices may | 0022| be located in order to permit the agent to determine that all | 0023| devices comply with minimum requirements and do not vary in any | 0024| significant manner from the representative device of the same | 0025| type approved by the superintendent. | 0001| D. The state may, after written or oral notice, | 0002| remove a video gaming device or any portion of the device from | 0003| the establishment where it is being operated for the purpose of | 0004| examination and inspection. | 0005| Section 12. SUSPENSION--REVOCATION--SEIZURE.-- | 0006| A. The superintendent may revoke a manufacturer's, | 0007| operator's or premises license upon a finding that the licensee | 0008| or any person holding a substantial interest in the licensee | 0009| has: | 0010| (1) provided false or misleading information to | 0011| the superintendent or commission; | 0012| (2) been convicted of any felony or gambling-related offense; | 0013| (3) endangered the security of a video gaming | 0014| device; | 0015| (4) become a person whose character is no | 0016| longer consistent with the protection of the public interest and | 0017| trust in video gaming; or | 0018| (5) become delinquent in remitting money owed | 0019| to any person or to the state. | 0020| B. The superintendent may suspend or revoke a | 0021| manufacturer's, operator's or premises license upon a finding | 0022| that the licensee or any person holding a substantial interest | 0023| in the licensee has violated the Video Gaming Act or | 0024| superintendent's rule. If the superintendent suspends or | 0025| revokes or refuses to grant a license or seizes the video gaming | 0001| devices of a licensee, any interested party may, upon written | 0002| notice to the commission, in accordance with the rules of the | 0003| superintendent, request a hearing. The chair of the commission | 0004| may stay the revocation of suspension of a license pending the | 0005| outcome of the hearing. | 0006| C. Any person aggrieved by a decision of the | 0007| superintendent may appeal the decision to the commission. | 0008| D. The superintendent may seize or seal any or all | 0009| video gaming devices changed or modified in any manner not | 0010| approved by the superintendent. | 0011| Section 13. DEVICE MANUFACTURE--RESPONSIBILITY.-- | 0012| A. The responsibility for final assembly and initial | 0013| operation of a video gaming device, in the manner approved by | 0014| the superintendent, shall be with the manufacturer. Changes in | 0015| the manner of final assembly or initial operation of a device | 0016| after a representative device has been submitted to the | 0017| superintendent for inspection and approval shall void the | 0018| approval unless prior to the change the manufacturer obtains | 0019| approval from the superintendent in accordance with the | 0020| provisions of this section. A voided approval shall be deemed | 0021| to revoke all licenses of the affected devices. | 0022| B. Any request for changes to be made in a video | 0023| gaming device shall be submitted in writing to the | 0024| superintendent for prior approval. When appropriate, the | 0025| request for a change shall be accompanied by a print, schematic, | 0001| block diagram or machine analysis which contains details of the | 0002| proposed change. Further, a reason for the change shall be set | 0003| forth. In emergency cases, when a change is found by the | 0004| superintendent to be necessary to prevent cheating or | 0005| malfunction, a verbal request may be approved. The verbal | 0006| approval shall be followed within fifteen days by a written | 0007| request noting the verbal approval and containing the additional | 0008| material required by this subsection. | 0009| Section 14. VIDEO GAMING DEVICE LIMITATIONS.-- | 0010| A. No video gaming device shall allow more than two | 0011| dollars ($2.00) to be played on a single game or award, in any | 0012| one game, games or credits worth in excess of eight hundred | 0013| dollars ($800); provided that, after December 31, 1997, the | 0014| commission may set a limit different from eight hundred dollars | 0015| ($800) by regulation. | 0016| B. No video gaming device shall directly dispense | 0017| coins or currency. | 0018| C. No person shall allow access to a video gaming | 0019| device by a person under the age of twenty-one years, nor shall | 0020| any person employ a person under the age of twenty-one years if | 0021| any portion of the job duties are to be performed in any area | 0022| licensed for the location of video gaming devices. | 0023| D. No video gaming device shall be available for | 0024| play by the public unless it is included in a valid location | 0025| agreement, it is located on premises licensed for the | 0001| consumption of spirituous liquors, at least thirty-five percent | 0002| of the receipts attributable to spirituous liquors, wine and | 0003| fermented beverages are from sales for on premises consumption | 0004| and: | 0005| (1) located on the premises owned, leased or | 0006| maintained by a person holding an operator's license, but not | 0007| for play by the public; or | 0008| (2) the premises are owned, leased or | 0009| maintained by the person or entity controlling the location at | 0010| which the device is located; provided that, a financial | 0011| institution may own or hold a substantial interest in a device | 0012| for the period necessary for it to satisfy any valid security | 0013| interest, not to exceed six months. | 0014| Section 15. VIDEO GAMING DEVICE REQUIREMENTS.-- | 0015| A. An video gaming device may deliver or entitle the | 0016| person playing the device to receive a printed ticket, | 0017| exchangeable for cash, which specifies the time, date, amount of | 0018| winnings and the location of the device. A video gaming device | 0019| shall record all use of the device and all amounts deposited in | 0020| it and report the use and amounts deposited to a central site | 0021| computer monitor. A video gaming device shall, at a minimum: | 0022| (1) pay out a mathematically demonstrable | 0023| percentage of all amounts played, which shall be not less than | 0024| eighty percent and not more than ninety-five percent. Video | 0025| games which may be affected by skill shall be evaluated against | 0001| this criterion using a method of play which will provide the | 0002| greatest return to the player over a period of continuous play; | 0003| (2) use a random selection process to determine | 0004| the outcome of each play of a game which meets ninety-five | 0005| percent confidence limits using a standard chi squared test for | 0006| randomness and which is impervious to outside influences; | 0007| (3) display an accurate representation of the | 0008| game outcome, and shall not alter any function of the device | 0009| based on internal computation of payout percentage; | 0010| (4) have the capacity to display outcome | 0011| intermediate play steps, credits available, credits played, | 0012| credits paid and credits cashed out for the most recent game | 0013| played and one game prior; | 0014| (5) be equipped with electronic meters and | 0015| electromechanical meters capable of displaying monetary | 0016| transactions and be capable of printing a record of those | 0017| transactions. The device memory shall be in units equal to the | 0018| denomination of the device, be at least six digits in length and | 0019| retain, at least, the following transaction records for a period | 0020| of at least one hundred eighty days: | 0021| (a) electronic meters: money inserted, | 0022| credits wagered, credits won, credits paid out, times logic area | 0023| accessed, times ticket or other pay-out device accessed, credits | 0024| or money won, number of credits representing money inserted by a | 0025| player and credit for games won but not collected; and | 0001| (b) electromechanical meters: money | 0002| inserted, total credits of ticket vouchers printed, credits | 0003| played and credits won; | 0004| (6) be designed so that replacement of parts of | 0005| modules required for normal maintenance does not necessitate | 0006| replacement of the meters. | 0007| B. Every video gaming device shall: | 0008| (1) clearly represent its rules of play to the | 0009| playing public; and | 0010| (2) operate and play in accordance with the | 0011| representation made to the superintendent and the public. | 0012| C. Pay off schedules applicable to each video gaming | 0013| device shall be displayed on the device or in a conspicuous | 0014| place immediately adjacent thereto or be accessible from the | 0015| device. Pay off schedules shall accurately state the range of | 0016| actual pay offs or awards and shall not be worded in such manner | 0017| as to mislead or deceive the public. The posting of any | 0018| misleading or deceptive material on any pay off schedule or | 0019| failure to make payment in accordance with a posted pay off | 0020| schedules shall constitute a violation of the Video Gaming Act. | 0021| D. The superintendent may inspect any video gaming | 0022| device which is offered for sale or use in this state by a | 0023| manufacturer. | 0024| Section 16. LOCATION AGREEMENTS--FILING.--All location | 0025| agreements shall be filed with the superintendent of the | 0001| division before becoming effective, and no location agreement | 0002| shall be effective without being filed with the superintendent. | 0003| Any location agreement for a location which is not a resort or a | 0004| parimutuel horseracing facility and which includes a video | 0005| gaming device which is owned by a person or entity which does | 0006| not hold an operator's license shall include a maintenance | 0007| agreement for that machine with a person or entity holding an | 0008| operator's license. A person holding both a premises and an | 0009| operator's license shall hold only one premises license. This | 0010| section shall not affect rights and obligations between private | 0011| parties. | 0012| Section 17. LOCATION AGREEMENTS--PROCEEDS | 0013| DISTRIBUTION.--No location agreement shall require an operator | 0014| to remit to another party more than fifty percent of the net | 0015| proceeds, after deduction of any taxes due. | 0016| Section 18. VIDEO GAMING DEVICES--LIMITATIONS.--Video | 0017| gaming devices shall not be made available for play except in | 0018| accordance with this section. Devices shall be placed only in | 0019| locations which are age controlled. Devices can only be placed | 0020| in the following places in the following numbers: | 0021| A. premises licensed for the on-premises consumption | 0022| of spirituous liquors--five devices; | 0023| C. premises that are resorts--fifty devices; | 0024| D. premises that are licensed as clubs under the | 0025| Liquor Control Act as of January 1, 1995--fifteen devices; | 0001| E. premises that are parimutuel horseracing | 0002| facilities--one hundred devices, if fifty percent of the money | 0003| retained by the licensee is used exclusively for purses, | 0004| provided that the money shall not be substituted for money | 0005| otherwise dedicated to purses or awards, five devices, | 0006| otherwise. Notwithstanding the otherwise applicable number of | 0007| devices permissible, no resort area shall have more than one | 0008| hundred and fifty devices located within it; provided that, for | 0009| purposes of calculating this limitation, premises that are | 0010| licensed for consumption of spirituous liquors shall be deemed | 0011| to have five devices. | 0012| Section 19. PERCENTAGE NET PROCEEDS TAX.--For the | 0013| privilege of locating video gaming devices for play by the | 0014| public, there is imposed on every operator a "percentage net | 0015| proceeds tax." The tax shall be equal to twenty percent of the | 0016| net proceeds attributable to devices owned or maintained by the | 0017| operator. The taxable event shall be the playing of the device | 0018| by the public. The tax shall be due on the fifth of the month | 0019| following the taxable event. The taxation and revenue | 0020| department is charged with administration of the tax. The rate | 0021| of the percentage net proceeds tax shall not be increased in any | 0022| year in which the gross receipts tax is not increased and in | 0023| such a year may be increased only by a proportion which bears | 0024| the same ratio to the prior net proceeds tax as the increase in | 0025| the gross receipts tax bears to prior gross receipts tax. | 0001| Section 20. ELECTIONS FOR LOCAL OPTION.--Any municipality | 0002| containing over five thousand population according to the latest | 0003| United States census, whether the county in which that | 0004| municipality is situated has adopted the local option provisions | 0005| of the Video Gaming Act or not, or any county in the state may | 0006| adopt local option in the county or municipality upon the | 0007| following terms and conditions: | 0008| A. at any time after the effective date of the Video | 0009| Gaming Act, the registered qualified electors of any proposed | 0010| local option district may petition the governing body by filing | 0011| one or more petitions in the appropriate office to hold an | 0012| election for the purpose of determining whether the county or | 0013| municipality shall adopt the local option provisions of the | 0014| Video Gaming Act. If the aggregate of the signatures of such | 0015| elector on all the petitions equals or exceeds five percent of | 0016| the number of registered voters of the district, the governing | 0017| body shall call an election within seventy-five days of the | 0018| verification of the petition. The date of the filing of the | 0019| petition shall be the date of the filing of the last petition | 0020| which brings the number of signatures up to the required five | 0021| percent; provided, however, that the governing body shall refuse | 0022| to recognize the petition if more than three months have elapsed | 0023| between the date of the first signature and the filing of the | 0024| last petition necessary to bring the number of signatures on the | 0025| petition up to five percent; | 0001| B. the election shall be called, conducted, counted | 0002| and canvassed substantially in the manner provided by law for | 0003| general elections within the county or special municipal | 0004| elections within the municipality, except as otherwise provided | 0005| in this section; | 0006| C. the votes at the election shall be counted, | 0007| returned and canvassed as provided for in the case of general | 0008| elections within the county or special municipal elections | 0009| within the municipality; | 0010| D. except as otherwise provided in this section, | 0011| contests, recounts and rechecks shall be permitted as provided | 0012| for in the case of candidates for county office in general | 0013| elections or as provided for in the case of special municipal | 0014| elections within the municipality. Applications for contests, | 0015| recounts or rechecks may be filed by any person who voted in the | 0016| election, and service shall be made upon the county clerk or | 0017| municipal clerk as the case may be; | 0018| E. if a majority of all the votes cast at the | 0019| election are cast in favor of allowing the location of video | 0020| gaming devices at resorts in the county or municipality, the | 0021| chairman of the governing body shall declare by order entered | 0022| upon the records of the county or municipality that the county | 0023| or municipality has adopted the local option provisions of the | 0024| Video Gaming Act and shall notify the commission of such | 0025| results; | 0001| F. no election held pursuant to this section shall | 0002| be held within forty-two days of any primary, general, municipal | 0003| or school district election. If, within sixty days from the | 0004| verification of any petition as provided in Subsection A of this | 0005| section, a primary, general, municipal or school election is | 0006| held, the governing body may call an election for a day not less | 0007| than sixty days after the primary, general, municipal or school | 0008| election; | 0009| G. if an election is held under the provisions of | 0010| the Video Gaming Act in any county which contains within its | 0011| limits any municipality of more than five thousand persons | 0012| according to the last United States census, it is not necessary | 0013| for the registered qualified electors in the municipality to | 0014| file a separate petition asking for a separate or different vote | 0015| on the question of adopting the local option provisions of the | 0016| Video Gaming Act by the municipality. The election in the county | 0017| shall be conducted so as to separate the votes in the | 0018| municipality from those in the remaining parts of the county. If | 0019| a majority of the voters in the county, including the voters in | 0020| the municipality, vote against the location of video gaming | 0021| devices at resorts in the county, the county shall not adopt the | 0022| local option provisions of the Video Gaming Act; but if a | 0023| majority of the votes in the municipality are in favor of | 0024| locating video gaming devices at resorts, the municipality shall | 0025| have adopted the local option provisions of the Video Gaming | 0001| Act. Nothing contained in this subsection shall prevent any | 0002| municipality from having a separate election under the terms of | 0003| this section. | 0004| Section 21. RESUBMISSION OF LOCAL OPTION QUESTION.--In any | 0005| local option district in which the local option provisions of | 0006| the Video Gaming Act have been rejected by the voters, it shall | 0007| be permissible after the expiration of two years from the date | 0008| of the election at which the local option provisions of the | 0009| Video Gaming Act were rejected, to have another local option | 0010| election in the district. | 0011| Section 22. FUND CREATED.--There is created in the state | 0012| treasury the "video gaming fund." All money in the fund, and | 0013| all interest attributable to it are appropriated to the | 0014| superintendent for the purpose of carrying out the provisions of | 0015| the Video Gaming Act. All fees paid for licenses under the | 0016| Video Gaming Act shall be credited to the fund. | 0017| Section 23. APPROPRIATION.--There is appropriated from the | 0018| general fund to the video gaming fund the sum of one million | 0019| five hundred thousand dollars ($1,500,000) for the purpose of | 0020| carrying out the provisions of this act. This appropriation | 0021| shall not revert at the end of any fiscal year. | 0022| Section 24. SEVERABILITY.--If any part or application of | 0023| this act is held invalid, the remainder or its application to | 0024| other situations or persons shall not be affected. | 0025| Section 25. EFFECTIVE DATE.--The effective date of the | 0001| provisions of the Video Gaming Act is July 1, 1996. | 0002| - - | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| State of New Mexico | 0011| House of Representatives | 0012| | 0013| FORTY-SECOND LEGISLATURE | 0014| SECOND SESSION, 1996 | 0015| | 0016| January 29, l996 | 0017| | 0018| | 0019| Mr. Speaker: | 0020| | 0021| Your RULES AND ORDER OF BUSINESS COMMITTEE, to | 0022| whom has been referred | 0023| | 0024| HOUSE BILL 346 | 0025| | 0001| has had it under consideration and finds same to be | 0002| GERMANE in accordance with constitutional provisions. | 0003| | 0004| Respectfully submitted, | 0005| | 0006| | 0007| | 0008| | 0009| Barbara A. Perea Casey, | 0010| Chairperson | 0011| | 0012| | 0013| Adopted Not Adopted | 0014| | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| Date | 0018| | 0019| The roll call vote was 9 For 0 Against | 0020| Yes: 9 | 0021| Excused: Lujan, Nicely, Olguin, Pederson, Wallach, | 0022| S. Williams | 0023| Absent: None | 0024| | 0025| H0346RC1 State of New Mexico | 0001| House of Representatives | 0002| | 0003| FORTY-SECOND LEGISLATURE | 0004| SECOND SESSION, 1996 | 0005| | 0006| | 0007| February 11, 1996 | 0008| | 0009| | 0010| Mr. Speaker: | 0011| | 0012| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has | 0013| been referred | 0014| | 0015| HOUSE BILL 346 | 0016| | 0017| has had it under consideration and reports same with | 0018| recommendation that it DO NOT PASS, but that | 0019| | 0020| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0021| FOR HOUSE BILL 346 | 0022| | 0023| DO PASS, and thence referred to the APPROPRIATIONS AND | 0024| FINANCE COMMITTEE. | 0025| | 0001| Respectfully submitted, | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| Fred Luna, Chairman | 0008| | 0009| | 0010| Adopted Not Adopted | 0011| | 0012| (Chief Clerk) (Chief Clerk) | 0013| | 0014| Date | 0015| | 0016| The roll call vote was 7 For 3 Against | 0017| Yes: 7 | 0018| No: Alwin, Hobbs, Macko | 0019| Excused: None | 0020| Absent: Gubbels, Varela | 0021| | 0022| H0346BI1 HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0023| HOUSE BILL 346 | 0024| 42nd legislature - STATE OF NEW MEXICO - second session, 1996 | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| AN ACT | 0008| RELATING TO GAMES OF CHANCE; ENACTING THE VIDEO GAMING ACT; | 0009| ESTABLISHING PROCEDURES; PRESCRIBING PENALTIES; IMPOSING TAXES | 0010| AND FEES; PERMITTING VERTICAL INTEGRATION OF CERTAIN LICENSEES; | 0011| PROVIDING FOR A CERTAIN LOCAL OPTION; MAKING APPROPRIATIONS. | 0012| | 0013| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0014| Section 1. SHORT TITLE.--Sections 1 through 22 of this act | 0015| may be cited as the "Video Gaming Act." | 0016| Section 2. PURPOSE.--The purpose of the Video Gaming Act | 0017| is to combat the growth of illegal gaming through the | 0018| establishment of a regulated system of video games of chance. | 0019| The legislature finds that: | 0020| A. the technology now exists to provide a secure | 0021| system of regulated gaming; | 0022| B. this system will: | 0023| (1) offer fair play and return to consumers who | 0024| use the system; | 0025| (2) provide needed revenue to the state and its | 0001| political subdivisions; | 0002| (3) provide additional entertainment to attract | 0003| tourists and increase their length of stay; and | 0004| (4) provide additional jobs for the citizens of | 0005| New Mexico. | 0006| Section 3. DEFINITIONS.--As used in the Video Gaming Act: | 0007| A. "age controlled environment" means a location, or | 0008| portion of a location, licensed for the on premises consumption | 0009| of spirituous liquors and the interior of which is not | 0010| observable by any individual under the age of twenty-one years. | 0011| No individual under the age of twenty-one years may be employed | 0012| to work in the age controlled environment; | 0013| B. "application" means the forms and schedules | 0014| prescribed by the commission upon which an applicant applies for | 0015| a license or license renewal and includes, but is not limited | 0016| to, information, disclosure statements and financial statements | 0017| submitted; | 0018| C. "commission" means the video gaming commission; | 0019| D. "credit" means the basic unit of a win on a video | 0020| gaming device which entitles the player to one additional free | 0021| game at the lowest monetary rate at which one game may be | 0022| purchased on that device; | 0023| E. "financial source" means any person, partnership, | 0024| trust or corporation that provides credit for capital or | 0025| operations where the terms of repayment extend for more than | 0001| ninety days; | 0002| F. "fraternal order" or "veterans' club" means an | 0003| organization described in Section 501(c)(8), (10), (19) or (23) of | 0004| the federal Internal Revenue Code of 1986 and exempt from federal | 0005| income taxation pursuant to Section 501(a) of that code; | 0006| G. "gross proceeds" means the total value of money | 0007| placed in a video gaming device by consumers; | 0008| H. "holding a substantial interest" means: | 0009| (1) ownership, operation, management or | 0010| conducting the business of a proprietorship, directly or | 0011| indirectly, by an individual or spouse of the individual; | 0012| (2) sharing or being entitled to share in any | 0013| profits, actual or potential, of a partnership or trust by an | 0014| individual or spouse of the individual; | 0015| (3) being an officer, director, stockholder or | 0016| spouse of a stockholder in a corporation which is not publicly | 0017| traded; | 0018| (4) being the holder, legally or beneficially, of | 0019| five percent or more of any class of stock or other evidence of | 0020| ownership of a publicly traded corporation or other public traded | 0021| entity or being the spouse of such a holder; | 0022| (5) furnishing five percent or more of the | 0023| capital of any entity. | 0024| A person holding a substantial interest in any entity shall | 0025| be deemed to hold a substantial interest in every entity in which | 0001| the first entity holds a substantial interest; | 0002| I. "location agreement" means a written agreement | 0003| between an operator and the person or entity owning or controlling | 0004| a licensed premises for the placement of video gaming devices | 0005| within the location for use by the public. If the person or entity | 0006| owns the devices, the person or entity's sworn statement to that | 0007| effect shall be deemed a location agreement; | 0008| J. "manufacturer" means a person or entity which | 0009| assembles, from subparts or raw materials, a complete video gaming | 0010| device; | 0011| K. "manufacturer's license" means a license issued by | 0012| the superintendent which authorizes the manufacture and transfer or | 0013| sale of video gaming devices to an operator; | 0014| L. "net proceeds" means the gross proceeds minus all | 0015| prizes paid out to players of a video gaming device; | 0016| M. "operator" means any person or entity who owns, | 0017| services or maintains video gaming devices, but does not include | 0018| any person owning or controlling, or holding a substantial interest | 0019| in an entity which owns or controls, a licensed premises for which | 0020| there is a location agreement; | 0021| N. "operator's license" means a license issued by the | 0022| superintendent which authorizes a person to engage in the business | 0023| of an operator; | 0024| O. "owner-operator" means any person or entity who | 0025| owns, services or maintains video gaming devices, owns or leases | 0001| one premises and is the holder of the premises license where the | 0002| video gaming devices are located; | 0003| P. "parimutuel horseracing facility" means a premises | 0004| licensed to hold public horseraces or horse meetings for profit or | 0005| gain; | 0006| Q. "play" means to activate a video gaming device and | 0007| to manipulate or work it for the purpose of winning as indicated by | 0008| the pay-out schedule or accumulating credits to be replayed or to | 0009| be cashed out of the machine in the form of a printed ticket to be | 0010| exchanged for cash; | 0011| R. "premises license" means a license issued by the | 0012| superintendent to a person or entity owning or controlling a | 0013| location and authorizing the placement of video gaming devices at | 0014| that location for play by the public; | 0015| S. "spirituous liquors" means alcoholic beverages except | 0016| fermented beverages such as wine, beer and ale; | 0017| T. "superintendent" means the superintendent of | 0018| regulation and licensing; and | 0019| U. "video gaming device" means an electronic machine | 0020| which utilizes a cathode ray tube or video display screen and | 0021| microprocessors and which is available for consumer play upon | 0022| payment of specified consideration, with winners immediately | 0023| determined by the application of the element of chance, whether or | 0024| not accompanied by an element of skill, and with a reward of | 0025| possible games or credits displayed on the device to the winners. | 0001| Section 4. COMMISSION ESTABLISHED--MEMBERSHIP--REQUIREMENTS.-- | 0002| A. There is created the "video gaming commission" which | 0003| shall consist of five members appointed by the governor with the | 0004| advice and consent of the senate. Appointees not confirmed by the | 0005| senate shall continue to serve until the senate has failed to | 0006| confirm. Prior to appointing an individual, the governor shall | 0007| request the superintendent to conduct an inquiry into the | 0008| individual's background, with particular regard to financial | 0009| stability, integrity, responsibility and reputation for good | 0010| character. | 0011| B. Commission members serve three-year terms, staggered | 0012| by lot. One of the initial appointees shall serve until December | 0013| 31, 1997, two shall serve until December 31, 1998, and the | 0014| remaining two until December 31, 1999. Commission member shall be | 0015| eligible for reappointment only once. The chair of the commission | 0016| shall be appointed by the governor and shall serve as chair at the | 0017| pleasure of the governor. The vice-chair of the commission, who | 0018| shall have the full power of the chair in the absence of the chair, | 0019| shall be elected by the commission for a term of one year. | 0020| Appointments to fill vacancies shall be for the unexpired term of | 0021| the member replaced. No person shall be appointed or continue to | 0022| serve if the person has ever been convicted of or pled guilty or | 0023| nolo contendere to an offense punishable by imprisonment for more | 0024| than one year. | 0025| C. Each commission member may engage in any other | 0001| business, occupation or gainful employment that is not in conflict | 0002| with the duties of the commission. One member of the commission | 0003| shall represent those who manufacture, sell or operate video gaming | 0004| devices. Notwithstanding the provisions of Subsection A of Section | 0005| 5 of the Video Gaming Act, the member so representing may hold an | 0006| interest and accept anything of value related to bona fide | 0007| employment or bona fide business ownership. The commission shall | 0008| meet at least once each month and at the call of the chair. The | 0009| commission shall also meet upon the call of two or more members | 0010| after they have given seventy-two hour written notice to each | 0011| member. | 0012| D. The chair of the commission shall receive seven | 0013| thousand dollars ($7,000) per year and the other members six | 0014| thousand dollars ($6,000). All commission members shall be | 0015| reimbursed in accordance with the provisions of the Per Diem and | 0016| Mileage Act. | 0017| E. A majority of the commission shall constitute a | 0018| quorum for purposes of conducting business, but no action or | 0019| decision of the superintendent shall be reversed or modified by the | 0020| commission unless at least three members vote to do so. | 0021| F. Initial appointments to the commission shall be made | 0022| within thirty days of the effective date of the Video Gaming Act. | 0023| G. The commission shall: | 0024| (1) hear and decide all appeals from decisions of | 0025| the superintendent relative to the granting, suspension, | 0001| revocation, condition or renewal of all licenses; | 0002| (2) impose all fines under the Video Gaming Act; | 0003| (3) approve or disapprove rules promulgated by | 0004| the superintendent, provided that the commission shall not modify | 0005| any rule and any rule not disapproved within sixty days of | 0006| submission to the commission shall be deemed approved; | 0007| (4) make an annual report to the governor and the | 0008| legislature on the operation of the Video Gaming Act, including any | 0009| recommendations for changes. | 0010| H. The commission shall approve, by rule, any games to | 0011| be used in a video gaming device. The commission shall approve all | 0012| games which meet the definition of video gaming which the | 0013| commission finds meet the commission's security requirements and | 0014| will further the purposes of the Video Gaming Act. The commission | 0015| may approve games which do not provide immediate notice of outcome, | 0016| but any games so approved shall be played only on video gaming | 0017| devices, shall meet the commission's security requirements and | 0018| shall be subject to the same central site computer monitoring | 0019| system as all other games. The commission shall designate resort | 0020| areas by rule. | 0021| Section 5. PROHIBITED ACTS--PENALTY.-- | 0022| A. No member of the commission or employee of the | 0023| state, or any of its political subdivisions, agencies or | 0024| instrumentalities, shall, directly or indirectly,: | 0025| (1) hold a substantial interest in the | 0001| manufacture, sale, distribution or operation of video gaming | 0002| devices, equipment, services, tickets, machines or any business or | 0003| entity which enters into a location agreement; | 0004| (2) have any interest whatsoever in the purchases | 0005| or sales made by persons licensed under the Video Gaming Act or | 0006| purchase, lease, or sell video gaming equipment, services, tickets, | 0007| machines or other materials; | 0008| (3) solicit or accept any gift, gratuity, | 0009| emolument or employment, of more than de minimis value, from any | 0010| person licensed under the Video Gaming Act, or from any officer, | 0011| agent or employee of such a person; or | 0012| (4) solicit from, request from or recommend to | 0013| any person licensed under that act or any officer, agent or | 0014| employee of such a person, the appointment of any person to any | 0015| place or position. | 0016| B. No person or entity licensed under the Video Gaming | 0017| Act or any officer, agent or employee of such a person or entity | 0018| shall offer to any member or employee of the commission or employee | 0019| of the superintendent any gift, gratuity, emolument or employment, | 0020| of more than de minimis value. | 0021| C. Any person violating the provisions of this section | 0022| is guilty of a fourth degree felony and shall be sentenced in | 0023| accordance with the provisions of Section 31-18-15 NMSA 1978. | 0024| Section 6. SUPERINTENDENT--DUTIES.--The superintendent | 0025| shall: | 0001| A. promulgate rules, in accordance with the State Rules | 0002| Act and subject to the approval of the commission, relating to: | 0003| (1) authorized premises for video gaming devices; | 0004| (2) investigations of prospective or current | 0005| licensees; | 0006| (3) mandating that electronic fund transfers to | 0007| the state of all money due from persons licensed under the Video | 0008| Gaming Act and the necessary implementation requirements; and | 0009| (4) other matters appropriate to carrying out the | 0010| provisions of the Video Gaming Act; | 0011| B. provide staff and other support for the commission; | 0012| C. enter into such contracts other legal agreements as | 0013| are necessary to carry out the decisions of the commission; | 0014| D. purchase or lease, in accordance with the | 0015| Procurement Code, a central site computer monitoring system for | 0016| video gaming devices and such other monitoring equipment as the | 0017| commission finds appropriate; | 0018| E. issue all licenses and other documents necessary to | 0019| carry out the purposes of the Video Gaming Act. No person shall | 0020| hold more than one level of license, nor shall a person holding a | 0021| substantial interest in a license of one class hold a license of | 0022| another level, provided, however, that the holder of a premises | 0023| license may hold an operator's license may be an owner-operator of | 0024| that premises license. A person holding a substantial interest, | 0025| prior to January 1, 1995, in a person or entity eligible for a | 0001| level one license may apply for and hold a level three license in | 0002| addition to the level one license so long as the ownership of the | 0003| person or entity does not change. The levels of license are as | 0004| follows: | 0005| (1) level one--manufacturer; | 0006| (2) level two--operator; and | 0007| (3) level three--premises; | 0008| F. annually issue a separate license for each qualified | 0009| video gaming device in operation in the state. The license shall | 0010| not be removable from the device and shall be in the form of a | 0011| numbered sticker which shall be attached to the device and indicate | 0012| that the device has been inspected, although not necessarily in | 0013| that year, and that all taxes and fees have been paid; | 0014| G. investigate and then approve or reject a video | 0015| gaming device representative of each type or model proposed to be | 0016| used in video gaming, and license each video gaming device prior to | 0017| its installation or operation in any regulated system of video | 0018| gaming; | 0019| H. investigate and then license each premises upon | 0020| which the video gaming devices are to be played; | 0021| I. conduct spot inspections of video gaming devices on | 0022| the premises where they are being played; | 0023| J. conduct hearings upon complaints charging violations | 0024| of the Video Gaming Act or the superintendent's rules and, subject | 0025| to an appeal to the commission, suspend, revoke or place conditions | 0001| on the use of any license issued under that act; | 0002| K. conduct any other hearings provided for in the rules | 0003| of the superintendent; | 0004| L. supervise, audit and investigate the operation of | 0005| all games and devices played under the Video Gaming Act; | 0006| M. investigate for possible approval all persons or | 0007| other entities seeking licenses and all of their financial sources. | 0008| Section 7. ADVISORY COMMITTEE--CREATION--DUTIES.--The | 0009| superintendent shall appoint an advisory committee of seven members | 0010| who shall serve at the pleasure of the superintendent. They shall | 0011| receive no per diem or mileage reimbursement or any other | 0012| compensation or reimbursement for their expenses. No employee of | 0013| the state, its political subdivisions, agencies or | 0014| instrumentalities, shall serve on the committee. There shall be at | 0015| least one member representing each of the following areas or | 0016| industries: | 0017| A. the public at large; | 0018| B. persons holding level two licenses, or, prior to the | 0019| issuance of such licenses, persons proposing to hold such licenses; | 0020| C. the horse racing industry; and | 0021| D. the fraternal orders or veterans' clubs. | 0022| The committee shall advise the superintendent and the | 0023| commission on the operation of the Video Gaming Act, any rules | 0024| proposed to be promulgated pursuant to that act, the practical | 0025| effect of any actions proposed to be taken under that act, any | 0001| amendments to that act that might be necessary and any other matter | 0002| the committee deems appropriate. | 0003| Section 8. LICENSES--APPLICATION--FEES.-- | 0004| A. An applicant for a manufacturer's, operator's or | 0005| premises license or any renewal of a license shall file an | 0006| application with the superintendent in a form, and including all | 0007| information, required by rule of the superintendent or the Video | 0008| Gaming Act. The application shall include a sworn statement by the | 0009| principal licensee, or an individual authorized to act on behalf of | 0010| the principal licensee, that the applicant shall comply with the | 0011| Video Gaming Act and all rules promulgated pursuant to that act. | 0012| B. The following fees shall be transmitted in | 0013| connection with the application for a license or renewal: | 0014| (1) manufacturer's license--ten thousand dollars | 0015| ($10,000); | 0016| (2) operator's license--three thousand dollars | 0017| ($3,000); | 0018| (3) premises license held by a parimutuel | 0019| horseracing facility--ten thousand dollars ($10,000); and | 0020| (4) premises license held by a fraternal order or | 0021| veterans' club--five hundred dollars ($500). | 0022| C. A fee of five hundred dollars ($500) per device | 0023| shall be transmitted with the application for a video gaming device | 0024| license but shall not be transmitted with the application for any | 0025| renewal. This fee shall be in lieu of all other taxes and fees, | 0001| including the gross receipts tax, attributable to the device or | 0002| computed based upon the proceeds from the device except for the | 0003| percentage net proceeds tax. | 0004| Section 9. APPLICATIONS--REQUIREMENTS--APPROVAL.-- | 0005| A. Any person or entity whom the superintendent | 0006| determines is qualified to be licensed, having due consideration | 0007| for the proper protection of the health, safety, morals, good order | 0008| and general welfare of the residents of the state, may be issued a | 0009| license. The burden of proving all qualifications of a licensee | 0010| shall be upon the applicant. | 0011| B. No license shall be issued unless the superintendent | 0012| is satisfied that the applicant: | 0013| (1) is of good character, honesty and integrity; | 0014| (2) does not have prior activities, including any | 0015| criminal record, reputation, habits or associations that pose a | 0016| threat to the public interest of the state or the effective | 0017| regulation and control of video gaming within the state or create | 0018| or enhance the dangers of unsuitable, unfair or illegal practices, | 0019| methods or activities in the operation of the video gaming or in | 0020| the business or financial arrangement incident to operating of | 0021| video gaming; | 0022| (3) have adequate business integrity, honesty and | 0023| competence; | 0024| (4) have proposed financing which is: | 0025| (a) adequate for the nature of the proposed | 0001| operation; and | 0002| (b) from financial sources posing no risk to | 0003| the integrity of the regulated system of video gaming; | 0004| (5) have demonstrated sufficient technological | 0005| capability to meet the superintendent's rules; and | 0006| (6) are in all other respects qualified to be | 0007| licensed consistent with the desired policy of the state. | 0008| C. Before any license is issued, every person holding a | 0009| substantial interest in the applicant shall be proven by the | 0010| applicant: | 0011| (1) to be of good character, honesty and | 0012| integrity; and | 0013| (2) to have no prior activities, including any | 0014| criminal record, reputation, habits or associations that pose a | 0015| threat to the public interest of the state or the effective | 0016| regulation and control of video gaming within the state or create | 0017| or enhance the dangers of unsuitable, unfair or illegal practices, | 0018| methods or activities in the operation of the video gaming or in | 0019| the business or financial arrangement incident to the operation of | 0020| video gaming. | 0021| D. An application for a license shall constitute a | 0022| request for the determination of the applicant's general character, | 0023| integrity and ability to participate in, engage in, or be | 0024| associated with a regulated system of video games of chance. An | 0025| applicant shall provide any release or authorization determined by | 0001| the superintendent to be appropriate for the consideration of an | 0002| application. Any written or oral statement made in the course of | 0003| an official proceeding, including any investigation, shall be | 0004| absolutely privileged and shall not impose any civil liability. | 0005| E. Until July 1, 1997, no operator's license shall be | 0006| issued to any person who has not been, at the time of issuance, a | 0007| bona fide resident of the state for two years nor shall an | 0008| operator's license be issued to any entity in which a person | 0009| ineligible to hold an operator's license pursuant to this | 0010| subsection holds a substantial interest. An owner-operator may be | 0011| issued an operator's license and a premises license. | 0012| Section 10. LICENSES--TRANSFER--DISPLAY.--No license issued | 0013| pursuant to the Video Gaming Act shall be assignable or | 0014| transferable from person to person or device to device. Any | 0015| license so issued shall be conspicuously displayed at the | 0016| licensee's principal place of business in an area visible to the | 0017| public. | 0018| Section 11. LICENSES--INVESTIGATIONS.-- | 0019| A. Any applicant for or holder of a license issued | 0020| under the Video Gaming Act shall produce records or evidence and | 0021| give all information requested by the superintendent or the | 0022| commission. No applicant or holder shall interfere or attempt to | 0023| interfere with any investigation by the superintendent or | 0024| commission. | 0025| B. Every manufacturer's licensee shall immediately make | 0001| available for inspection by any agent of the state all papers, | 0002| books and records produced by any video gaming equipment business | 0003| and all portions of the establishment where equipment is | 0004| manufactured, sold or distributed. Any agent of the state shall be | 0005| given immediate access to any portion of the establishment of any | 0006| licensed manufacturer for the purpose of inspecting or examining | 0007| any records or documents required to be kept by the licensee under | 0008| the Video Gaming Act or any superintendent's rule or examining any | 0009| equipment related to the conduct of any Video Gaming Activity. | 0010| C. Every operator and every person owning or | 0011| controlling a premises shall immediately make available for | 0012| inspection by any agent of the state all papers, books and records | 0013| produced by any Video Gaming Activity or business and make | 0014| available all portions of the establishment where electronic | 0015| instant video gaming-related equipment or devices may be located in | 0016| order to permit the agent to determine that all devices comply with | 0017| minimum requirements and do not vary in any significant manner from | 0018| the representative device of the same type approved by the | 0019| superintendent. | 0020| D. The state may, after written or oral notice, remove | 0021| a video gaming device or any portion of the device from the | 0022| establishment where it is being operated for the purpose of | 0023| examination and inspection. | 0024| Section 12. SUSPENSION--REVOCATION--SEIZURE.-- | 0025| A. The superintendent may revoke a manufacturer's, | 0001| operator's or premises license upon a finding that the licensee or | 0002| any person holding a substantial interest in the licensee has: | 0003| (1) provided false or misleading information to | 0004| the superintendent or commission; | 0005| (2) been convicted of any felony or gambling-related offense; | 0006| (3) endangered the security of a video gaming | 0007| device; | 0008| (4) become a person whose character is no longer | 0009| consistent with the protection of the public interest and trust in | 0010| video gaming; or | 0011| (5) become delinquent in remitting money owed to | 0012| any person or to the state. | 0013| B. The superintendent may suspend or revoke a | 0014| manufacturer's, operator's or premises license upon a finding that | 0015| the licensee or any person holding a substantial interest in the | 0016| licensee has violated the Video Gaming Act or superintendent's | 0017| rule. If the superintendent suspends or revokes or refuses to | 0018| grant a license or seizes the video gaming devices of a licensee, | 0019| any interested party may, upon written notice to the commission, in | 0020| accordance with the rules of the superintendent, request a hearing. | 0021| The chair of the commission may stay the revocation of suspension | 0022| of a license pending the outcome of the hearing. | 0023| C. Any person aggrieved by a decision of the | 0024| superintendent may appeal the decision to the commission. | 0025| D. The superintendent may seize or seal any or all | 0001| video gaming devices changed or modified in any manner not approved | 0002| by the superintendent. | 0003| Section 13. DEVICE MANUFACTURE--RESPONSIBILITY.-- | 0004| A. The responsibility for final assembly and initial | 0005| operation of a video gaming device, in the manner approved by the | 0006| superintendent, shall be with the manufacturer. Changes in the | 0007| manner of final assembly or initial operation of a device after a | 0008| representative device has been submitted to the superintendent for | 0009| inspection and approval shall void the approval unless prior to the | 0010| change the manufacturer obtains approval from the superintendent in | 0011| accordance with the provisions of this section. A voided approval | 0012| shall be deemed to revoke all licenses of the affected devices. | 0013| B. Any request for changes to be made in a video gaming | 0014| device shall be submitted in writing to the superintendent for | 0015| prior approval. When appropriate, the request for a change shall | 0016| be accompanied by a print, schematic, block diagram or machine | 0017| analysis which contains details of the proposed change. Further, a | 0018| reason for the change shall be set forth. In emergency cases, when | 0019| a change is found by the superintendent to be necessary to prevent | 0020| cheating or malfunction, a verbal request may be approved. The | 0021| verbal approval shall be followed within fifteen days by a written | 0022| request noting the verbal approval and containing the additional | 0023| material required by this subsection. | 0024| Section 14. VIDEO GAMING DEVICE LIMITATIONS.-- | 0025| A. No video gaming device shall allow more than two | 0001| dollars ($2.00) to be played on a single game or award, in any one | 0002| game, games or credits worth in excess of eight hundred dollars | 0003| ($800); provided that, after December 31, 1997, the commission may | 0004| set a limit different from eight hundred dollars ($800) by | 0005| regulation. | 0006| B. No video gaming device shall directly dispense coins | 0007| or currency. | 0008| C. No person shall allow access to a video gaming | 0009| device by a person under the age of twenty-one years, nor shall any | 0010| person employ a person under the age of twenty-one years if any | 0011| portion of the job duties are to be performed in any area licensed | 0012| for the location of video gaming devices. | 0013| D. No video gaming device shall be available for play | 0014| by the public unless it is included in a valid location agreement, | 0015| it is located on premises licensed for the consumption of | 0016| spirituous liquors, at least fifty-one percent of the receipts | 0017| attributable to spirituous liquors, wine and fermented beverages | 0018| are from sales for on premises consumption and: | 0019| (1) located on the premises owned, leased or | 0020| maintained by a person holding an operator's license, but not for | 0021| play by the public; or | 0022| (2) the premises are owned, leased or maintained | 0023| by the person or entity controlling the location at which the | 0024| device is located; provided that, a financial institution may own | 0025| or hold a substantial interest in a device for the period necessary | 0001| for it to satisfy any valid security interest, not to exceed six | 0002| months. | 0003| Section 15. VIDEO GAMING DEVICE REQUIREMENTS.-- | 0004| A. A video gaming device may deliver or entitle the | 0005| person playing the device to receive a printed ticket, exchangeable | 0006| for cash, which specifies the time, date, amount of winnings and | 0007| the location of the device. A video gaming device shall record all | 0008| use of the device and all amounts deposited in it and report the | 0009| use and amounts deposited to a central site computer monitor. A | 0010| video gaming device shall, at a minimum: | 0011| (1) pay out a mathematically demonstrable | 0012| percentage of all amounts played, which shall be not less than | 0013| eighty percent and not more than ninety-five percent. Video games | 0014| which may be affected by skill shall be evaluated against this | 0015| criterion using a method of play which will provide the greatest | 0016| return to the player over a period of continuous play; | 0017| (2) use a random selection process to determine | 0018| the outcome of each play of a game which meets ninety-five percent | 0019| confidence limits using a standard chi squared test for randomness | 0020| and which is impervious to outside influences; | 0021| (3) display an accurate representation of the | 0022| game outcome, and shall not alter any function of the device based | 0023| on internal computation of payout percentage; | 0024| (4) have the capacity to display outcome | 0025| intermediate play steps, credits available, credits played, credits | 0001| paid and credits cashed out for the most recent game played and one | 0002| game prior; | 0003| (5) be equipped with electronic meters and | 0004| electromechanical meters capable of displaying monetary | 0005| transactions and be capable of printing a record of those | 0006| transactions. The device memory shall be in units equal to the | 0007| denomination of the device, be at least six digits in length and | 0008| retain, at least, the following transaction records for a period of | 0009| at least one hundred eighty days: | 0010| (a) electronic meters: money inserted, | 0011| credits wagered, credits won, credits paid out, times logic area | 0012| accessed, times ticket or other pay-out device accessed, credits or | 0013| money won, number of credits representing money inserted by a | 0014| player and credit for games won but not collected; and | 0015| (b) electromechanical meters: money | 0016| inserted, total credits of ticket vouchers printed, credits played | 0017| and credits won; | 0018| (6) be designed so that replacement of parts of | 0019| modules required for normal maintenance does not necessitate | 0020| replacement of the meters. | 0021| B. Every video gaming device shall: | 0022| (1) clearly represent its rules of play to the | 0023| playing public; and | 0024| (2) operate and play in accordance with the | 0025| representation made to the superintendent and the public. | 0001| C. Pay off schedules applicable to each video gaming | 0002| device shall be displayed on the device or in a conspicuous place | 0003| immediately adjacent thereto or be accessible from the device. Pay | 0004| off schedules shall accurately state the range of actual pay offs | 0005| or awards and shall not be worded in such manner as to mislead or | 0006| deceive the public. The posting of any misleading or deceptive | 0007| material on any pay off schedule or failure to make payment in | 0008| accordance with a posted pay off schedules shall constitute a | 0009| violation of the Video Gaming Act. | 0010| D. The superintendent may inspect any video gaming | 0011| device which is offered for sale or use in this state by a | 0012| manufacturer. | 0013| Section 16. LOCATION AGREEMENTS--FILING.--All location | 0014| agreements shall be filed with the superintendent of the division | 0015| before becoming effective, and no location agreement shall be | 0016| effective without being filed with the superintendent. Any | 0017| location agreement for a location which is not a parimutuel | 0018| horseracing facility and which includes a video gaming device which | 0019| is owned by a person or entity which does not hold an operator's | 0020| license shall include a maintenance agreement for that machine with | 0021| a person or entity holding an operator's license. A person holding | 0022| both a premises and an operator's license shall hold only one | 0023| premises license. This section shall not affect rights and | 0024| obligations between private parties. | 0025| Section 17. LOCATION AGREEMENTS--PROCEEDS | 0001| DISTRIBUTION.--No location agreement shall require an operator to | 0002| remit to another party more than fifty percent of the net proceeds, | 0003| after deduction of any taxes due. | 0004| Section 18. VIDEO GAMING DEVICES--LIMITATIONS.--Video gaming | 0005| devices shall not be made available for play except in accordance | 0006| with this section. Devices shall be placed only in locations which | 0007| are age controlled. Devices can only be placed in the following | 0008| places in the following numbers: | 0009| A. premises that are licensed as clubs under the Liquor | 0010| Control Act as of January 1, 1995--fifteen devices; or | 0011| B. premises that are parimutuel horseracing facilities-one hundred devices, provided that fifty percent of the money | 0012| retained by the licensee is used exclusively for purses and | 0013| provided that the money shall not be substituted for money | 0014| otherwise dedicated to purses or awards, five devices, otherwise. | 0015| Section 19. PERCENTAGE NET PROCEEDS TAX.--For the privilege | 0016| of locating video gaming devices for play by the public, there is | 0017| imposed on every operator a "percentage net proceeds tax." The | 0018| tax shall be equal to twenty percent of the net proceeds | 0019| attributable to devices owned or maintained by the operator. The | 0020| taxable event shall be the playing of the device by the public. | 0021| The tax shall be due on the fifth of the month following the | 0022| taxable event. The taxation and revenue department is charged with | 0023| administration of the tax. The rate of the percentage net proceeds | 0024| tax shall not be increased in any year in which the gross receipts | 0025| tax is not increased and in such a year may be increased only by a | 0001| proportion which bears the same ratio to the prior net proceeds tax | 0002| as the increase in the gross receipts tax bears to prior gross | 0003| receipts tax. | 0004| Section 20. ELECTIONS FOR LOCAL OPTION.--Any municipality | 0005| containing over five thousand population according to the latest | 0006| United States census, whether the county in which that municipality | 0007| is situated has adopted the local option provisions of the Video | 0008| Gaming Act or not, or any county in the state may adopt local | 0009| option in the county or municipality upon the following terms and | 0010| conditions: | 0011| A. at any time after the effective date of the Video | 0012| Gaming Act, the registered qualified electors of any proposed local | 0013| option district may petition the governing body by filing one or | 0014| more petitions in the appropriate office to hold an election for | 0015| the purpose of determining whether the county or municipality shall | 0016| adopt the local option provisions of the Video Gaming Act. If the | 0017| aggregate of the signatures of such elector on all the petitions | 0018| equals or exceeds five percent of the number of registered voters | 0019| of the district, the governing body shall call an election within | 0020| seventy-five days of the verification of the petition. The date of | 0021| the filing of the petition shall be the date of the filing of the | 0022| last petition which brings the number of signatures to the required | 0023| five percent; provided, however, that the governing body shall | 0024| refuse to recognize the petition if more than three months have | 0025| elapsed between the date of the first signature and the filing of | 0001| the last petition necessary to bring the number of signatures on | 0002| the petition to five percent; | 0003| B. the election shall be called, conducted, counted and | 0004| canvassed substantially in the manner provided by law for general | 0005| elections within the county or special municipal elections within | 0006| the municipality, except as otherwise provided in this section; | 0007| C. the votes at the election shall be counted, returned | 0008| and canvassed as provided for in the case of general elections | 0009| within the county or special municipal elections within the | 0010| municipality; | 0011| D. except as otherwise provided in this section, | 0012| contests, recounts and rechecks shall be permitted as provided for | 0013| in the case of candidates for county office in general elections or | 0014| as provided for in the case of special municipal elections within | 0015| the municipality. Applications for contests, recounts or rechecks | 0016| may be filed by any person who voted in the election, and service | 0017| shall be made upon the county clerk or municipal clerk as the case | 0018| may be; | 0019| E. if a majority of all the votes cast at the election | 0020| are cast in favor of allowing the location of video gaming devices | 0021| at parimutuel horse racing facilities, fraternal order or veterans' | 0022| clubs in the county or municipality, the chairman of the governing | 0023| body shall declare by order entered upon the records of the county | 0024| or municipality that the county or municipality has adopted the | 0025| local option provisions of the Video Gaming Act and shall notify | 0001| the commission of such results; | 0002| F. no election held pursuant to this section shall be | 0003| held within forty-two days of any primary, general, municipal or | 0004| school district election. If, within sixty days from the | 0005| verification of any petition as provided in Subsection A of this | 0006| section, a primary, general, municipal or school election is held, | 0007| the governing body may call an election for a day not less than | 0008| sixty days after the general, municipal or school election; | 0009| G. if an election is held under the provisions of the | 0010| Video Gaming Act in any county which contains within its limits any | 0011| municipality of more than five thousand persons according to the | 0012| last United States census, it is not necessary for the registered | 0013| qualified electors in the municipality to file a separate petition | 0014| asking for a separate or different vote on the question of adopting | 0015| the local option provisions of the Video Gaming Act by the | 0016| municipality. The election in the county shall be conducted so as | 0017| to separate the votes in the municipality from those in the | 0018| remaining parts of the county. If a majority of the voters in the | 0019| county, including the voters in the municipality, vote against the | 0020| location of video gaming devices at parimutuel horse racing | 0021| facilities, fraternal order clubs or veterans' clubs in the county, | 0022| the county shall not adopt the local option provisions of the Video | 0023| Gaming Act; but if a majority of the votes in the municipality are | 0024| in favor of locating video gaming devices at resorts, the | 0025| municipality shall have adopted the local option provisions of the | 0001| Video Gaming Act. Nothing contained in this subsection shall | 0002| prevent any municipality from having a separate election under the | 0003| terms of this section. | 0004| Section 21. RESUBMISSION OF LOCAL OPTION QUESTION.--In any | 0005| local option district in which the local option provisions of the | 0006| Video Gaming Act have been rejected by the voters, it shall be | 0007| permissible after the expiration of two years from the date of the | 0008| election at which the local option provisions of the Video Gaming | 0009| Act were rejected, to have another local option election in the | 0010| district. | 0011| Section 22. FUND CREATED.--There is created in the state | 0012| treasury the "video gaming fund." All money in the fund, and all | 0013| interest attributable to it are appropriated to the superintendent | 0014| for the purpose of carrying out the provisions of the Video Gaming | 0015| Act. All fees paid for licenses under the Video Gaming Act shall | 0016| be credited to the fund. | 0017| Section 23. APPROPRIATION.--There is appropriated from the | 0018| general fund to the video gaming fund the sum of one million five | 0019| hundred thousand dollars ($1,500,000) for the purpose of carrying | 0020| out the provisions of this act. This appropriation shall not | 0021| revert at the end of any fiscal year. | 0022| Section 24. SEVERABILITY.--If any part or application of | 0023| this act is held invalid, the remainder or its application to other | 0024| situations or persons shall not be affected. | 0025| Section 25. EFFECTIVE DATE.--The effective date of the | 0001| provisions of the Video Gaming Act is July 1, 1996. | 0002| - - | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| |