HOUSE BILL 546

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Rod Montoya

 

 

 

 

 

AN ACT

RELATING TO HORSE RACING; AMENDING AND ENACTING SECTIONS OF THE HORSE RACING ACT; CREATING THE STATE RACING COMMISSION NOMINATING COMMITTEE; REQUIRING MEMBERS OF THE STATE RACING COMMISSION TO BE SELECTED FROM A LIST OF QUALIFIED NOMINEES CREATED BY THE STATE RACING COMMISSION NOMINATING COMMITTEE; PROVIDING FOR THE EMPLOYMENT AND QUALIFICATIONS OF AN EXECUTIVE DIRECTOR OF THE STATE RACING COMMISSION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 60-1A-2 NMSA 1978 (being Laws 2007, Chapter 39, Section 2) is amended to read:

     "60-1A-2. DEFINITIONS.--As used in the Horse Racing Act:

          A. "board" means the gaming control board;

          B. "breakage" means the odd cents by which the amount payable on each dollar wagered exceeds a multiple of ten;

          C. "commission" means the state racing commission;

          D. "exotic wagering" means all wagering other than on win, place or show, through pari-mutuel wagering;

          E. "export" means to send a live audiovisual broadcast of a horse race in the process of being run at a horse racetrack from the originating horse racetrack to another location;

          F. "guest state" means a jurisdiction, other than the jurisdiction in which a horse race is run, in which a horse racetrack, off-track wagering facility or other facility that is a member of and subject to an interstate common pool is located;

          G. "guest track" means a horse racetrack, off-track wagering facility or other licensed facility in a location other than the state in which a horse race is run that is a member of and subject to an interstate common pool;

          H. "handle" means the total of all pari-mutuel wagering sales, excluding refunds and cancellations;

          I. "horse race" means a competition among racehorses on a predetermined course in which the horse completing the course in the least amount of time generally wins;

          J. "host state" means the jurisdiction within which a sending track is located, also known as a "sending state";

          K. "host track" means the horse racetrack from which a horse race subject to an interstate common pool is transmitted to members of that interstate common pool, also known as a "sending track";

          L. "import" means to receive a live audiovisual broadcast of a horse race;

          M. "interstate common pool" means a pari-mutuel pool that combines comparable pari-mutuel pools from one or more locations that accept wagers on a horse race run at a sending track for purposes of establishing payoff prices at the pool members' locations, including pools in which pool members from more than one state simultaneously combine pari-mutuel pools to form an interstate common pool;

          N. "jockey club" means an organization that administers thoroughbred registration records and registers thoroughbreds;

          O. "licensed premises" means land, together with all buildings, other improvements and personal property located on the land, that is under the direct control of a racetrack licensee, including the restricted areas, grandstand and public parking areas;

          P. "licensee" means a person licensed by the commission and includes a holder of an occupational, secondary or racetrack license;

          Q. "nominating committee" means the state racing commission nominating committee;

          [Q.] R. "occupational license" means a license issued by the commission to a vendor or to a person having access to a restricted area on the licensed premises, including a horse owner, trainer, jockey, agent, apprentice, groom, exercise person, veterinarian, valet, farrier, starter, clocker, racing secretary, pari-mutuel clerk and other personnel designated by the commission whose work, in whole or in part, is conducted around racehorses or pari-mutuel betting windows;

          [R.] S. "pari-mutuel wagering" means a system of wagering in which bets on a live or simulcast horse race are pooled and held by the racetrack licensee for distribution of the total amount, less the deductions authorized by law, to holders of winning tickets; "pari-mutuel wagering" does not include bookmaking or pool selling;

          [S.] T. "pari-mutuel wagering pool" means the money wagered on a specific horse race through pari-mutuel wagering;

          [T.] U. "practical breeder" means a person who has practical experience in breeding horses, although the person may not be actively involved in breeding horses;

          [U.] V. "primary residence" means the domicile where a person resides for most of the year, and, if the person is temporarily out of state, the address where a person will return when the person returns to New Mexico or the address that a person uses for purposes of a driver's license, passport or voting;

          [V.] W. "quarter horse" means a racehorse that is registered with the American quarter horse association or any successor association;

          [W.] X. "race meet" means a period of time within dates specified by the commission in which a racetrack licensee is authorized to conduct live racing on the racing grounds;

          [X.] Y. "racehorse" means a quarter horse or thoroughbred that is bred and trained to compete in horse races;

          [Y.] Z. "racetrack license" means a license to conduct horse races issued by the commission;

          [Z.] AA. "racetrack licensee" means a person who has been issued a racetrack license;

          [AA.] BB. "racing grounds" means the area of the restricted area of licensed premises used for the purpose of conducting horse races and all activities ancillary to the conduct of horse races, including the track, stable area, jockey's quarters and horse training areas;

          [BB.] CC. "retainage" means money that is retained from wagers on win, place and show and on exotic wagers by a racetrack licensee pursuant to the Horse Racing Act;

          [CC.] DD. "restricted areas" means the stable area, the area behind the pari-mutuel betting windows and anywhere on the racing grounds;

          [DD.] EE. "secondary licensee" means all officers, directors, shareholders, lenders or holders of evidence of indebtedness of a corporation or legal entity owning a horse racetrack, and all persons holding a direct or indirect interest of any nature whatsoever in the horse racetrack, including interests or positions that deal with the funds of the racetrack or that are administrative, policymaking or supervisory;

          [EE.] FF. "simulcast" means a transmission of a live audiovisual broadcast of a horse race being run at a horse racetrack other than the horse racetrack or other licensed facility at which the broadcast is being received for viewing pursuant to a simulcasting contract;

          [FF.] GG. "stakes race" means a horse race in which nominations or entry or starting fees contribute to the purse; an overnight race is not a stakes race;

          [GG.] HH. "steward" means an employee of the commission who supervises horse races and oversees a race meet while in progress, including holding hearings regarding licensees and enforcing the rules of the commission and the horse racetrack;

          [HH.] II. "takeout" means amounts authorized by statute to be deducted from the pari-mutuel wagers;

          [II.] JJ. "thoroughbred" means a racehorse that is registered with the jockey club;

          [JJ.] KK. "track" means the surfaced oval area on which horse races are conducted; and

          [KK.] LL. "vendor" means a person who provides goods or services to or in the racing grounds or restricted area of the licensed premises of a horse racetrack."

     SECTION 2. Section 60-1A-3 NMSA 1978 (being Laws 2007, Chapter 39, Section 3) is amended to read:

     "60-1A-3. COMMISSION CREATED--APPOINTMENT OF MEMBERS--TERMS OF OFFICE.--

          A. The "state racing commission" is created and is administratively attached to the tourism department.

          B. The commission shall consist of five members, no more than three of whom shall be members of the same political party. The commission members shall be appointed by the governor [and be confirmed by the senate] with the consent of the senate and shall be selected from a list of qualified nominees submitted to the governor by the nominating committee. All members of the commission shall hold at-large positions on the commission.

           C. At least three of the members of the commission shall be practical breeders of racehorses within New Mexico.

          D. A commission member shall have primary residence in New Mexico and shall be of high character and reputation so that public confidence in the administration of horse racing is maintained.

          E. The term of each member of the commission shall be six years from the date of the member's appointment. The member shall serve until a successor is appointed. In the case of a vacancy in the membership of the commission, the governor shall fill the vacancy by appointment for the unexpired term from a list of nominees submitted by the nominating committee.

          F. A person shall not be eligible for appointment as a member of the commission who is an officer, official or director in a corporation conducting horse racing within the state. A member of the commission or relatives of a member of the commission to the first degree of consanguinity shall not have a financial interest in a licensee regulated by the commission.

          G. Members of the commission shall receive no salary, but each member of the commission shall receive per diem and mileage pursuant to the Per Diem and Mileage Act.

          [H. The commission may appoint an executive director and establish the executive director's duties and compensation.]"

     SECTION 3. A new section of the Horse Racing Act, Section 60-1A-3.1 NMSA 1978, is enacted to read:

     "60-1A-3.1. [NEW MATERIAL] STATE RACING COMMISSION NOMINATING COMMITTEE.--

          A. The "state racing commission nominating committee" is created and consists of nine members who are:

                (1) knowledgeable about horse racing;

                (2) not recipients of contracts or other forms

of compensation from the commission or the board;

                (3) not applicants or nominees for membership on the commission; and

                (4) appointed as follows:

                     (a) six members appointed one each by the speaker of the house of representatives, the majority floor leader of the house of representatives, the minority floor leader of the house of representatives, the president pro tempore of the senate, the majority floor leader of the senate and the minority floor leader of the senate;

                     (b) two members appointed by the governor; and

                     (c) one member appointed by the chief justice of the supreme court.

          B. A nominating committee member shall:

                (1) be a resident of New Mexico;

                (2) serve a four-year term; and

                (3) serve without compensation, but shall be reimbursed for expenses incurred in pursuit of the member's duties on the nominating committee pursuant to the Per Diem and Mileage Act.

          C. The nominating committee and individual members shall be subject to the Governmental Conduct Act, the Inspection of Public Records Act, the Financial Disclosure Act and the Open Meetings Act.

          D. Administrative support shall be provided to the nominating committee by the staff of the board.

          E. Initial appointments to the nominating committee shall be made by the appointing authorities prior to September 1, 2025. Subsequent appointments shall be made no later than thirty days before the end of a term.

          F. The first meeting of the members of the nominating committee shall be held prior to November 1, 2025. The nominating committee shall select one member to be chair and one member to be secretary of the nominating committee. Following the first meeting, the nominating committee shall meet as often as necessary in order to submit a list to the governor of no fewer than two qualified nominees for appointment as members of the commission when a vacancy occurs on the commission. The list shall be developed to provide geographical diversity, and nominees on the list shall be from at least three different counties of the state.

          G. The nominating committee shall meet at least ninety days prior to the date on which the term of a member of the commission ends and as often as necessary thereafter in order to submit a list to the governor, at least thirty days prior to the beginning of the new term, of no fewer than two qualified nominees from diverse geographical areas of the state for appointment as a member of the commission.

          H. Upon the occurrence of a vacancy on the commission, the nominating committee shall meet within thirty days of the date of the beginning of the vacancy and as often as necessary thereafter in order to submit a list to the governor, within sixty days of the first meeting after the vacancy occurs, of no fewer than two qualified nominees from diverse geographical areas of the state for appointment as a member of the commission.

          I. If a position on the nominating committee becomes vacant during a term, a successor shall be selected in the same manner as the original appointment for that position and shall serve for the remainder of the term of the position vacated.

          J. The nominating committee shall actively solicit, accept and evaluate applications and may require an applicant to submit any information the nominating committee deems relevant to the consideration of the individual's application.

          K. A majority vote of all members of the nominating committee in favor of a person is required for that person to be included on the list of qualified nominees submitted to the

governor."

     SECTION 4. Section 60-1A-4 NMSA 1978 (being Laws 2007, Chapter 39, Section 4) is amended to read:

     "60-1A-4. COMMISSION--POWERS--DUTIES.--

          A. The commission may:

                (1) grant, deny, suspend or revoke occupational licenses, secondary licenses and racetrack licenses, establish the terms for each classification of a racetrack license and set fees for submitting an application for a license;

                (2) exclude or compel the exclusion of a person from all horse racetracks [who] whom the commission deems detrimental to the best interests of horse racing or who willfully violates the Horse Racing Act, a rule or order of the commission or a law of the United States or New Mexico;

                (3) compel the production of documents, books and tangible items, including documents showing the receipts and disbursements of a racetrack licensee;

                (4) investigate the operations of a licensee and place a designated representative on the licensed premises of a racetrack licensee for the purpose of observing compliance with the Horse Racing Act and rules or orders of the commission;

                (5) employ staff as required to administer the Horse Racing Act and employ staff with basic law enforcement training to be stationed at racetracks to maintain peace and order, enforce the law, conduct investigations and enforce the Horse Racing Act or rules or orders of the commission; provided that staff employed with law enforcement training may not carry firearms or other deadly weapons while on duty for the commission;

                (6) summon witnesses;

                (7) administer oaths for the effective discharge of the commission's authority; and

                (8) appoint a hearing officer to conduct hearings required by the Horse Racing Act or a rule adopted pursuant to that act.

          B. The commission shall:

                (1) make rules to hold, conduct and operate all race meets and horse races held in the state and to identify and assign racing dates;

                (2) require the following information for each applicant on an application for a license:

                     (a) the full name, address and contact information of the applicant, and if the applicant is a corporation, the name of the state of incorporation and the names, addresses and contact information of officers, members of the board of directors and managers of the corporation;

                     (b) the exact location at which the applicant desires to conduct a horse race or race meet;                         (c) whether the horse racetrack is owned or leased, and, if leased, the name and residence of the fee owner of the land or, if the owner is a corporation, the names of the directors and stockholders;

                     (d) a statement of the assets and liabilities of the person or corporation making the application;

                     (e) the kind of racing to be conducted;                      (f) the beginning and ending dates desired for the race meet and the days during that time period when horse races are to be scheduled; and

                     (g) other information determined by the commission to be necessary to assess the potential for success of the applicant;

                (3) require a statement under oath by the applicant that the information on the application is true;

                (4) supervise and oversee the making of pari-mutuel pools and the distribution from those pools;

                (5) make on-site inspections of horse racetracks in New Mexico at reasonable intervals;

                (6) approve all improvements proposed to be completed on the licensed premises of a horse racetrack, including extensions, additions or improvements of buildings, stables or tracks;

                (7) monitor and oversee the pari-mutuel machines and equipment at all horse races or race meets held in the state;

                (8) approve contracts for simulcasting, pari-mutuel wagering and capital improvements funded pursuant to Section 60-1A-20 NMSA 1978 entered into by horse racetracks;

                (9) regulate the size of the purses to be offered at horse races run in the state;

                (10) require background investigations of employees of a racetrack licensee as set forth in the rules of the commission; [and]

                (11) provide an annual report to the governor regarding the commission's administration of horse racing in the state; and

                (12) appoint an executive director."

     SECTION 5. A new section of the Horse Racing Act is enacted to read:

     "[NEW MATERIAL] EXECUTIVE DIRECTOR--QUALIFICATIONS.--

          A. The executive director appointed by the commission shall have had at least five years of responsible supervisory administrative experience in a governmental gaming regulatory agency.

          B. The executive director appointed by the commission shall not have a financial interest, either directly or indirectly, in a racetrack or the operation of licensed wagering on the results of races."

     SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.

- 15 -