SENATE BILL 302
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Nicholas A. Paul
AN ACT
RELATING TO GAMING; REQUIRING A BACKGROUND INVESTIGATION OF CONTRACTORS SEEKING UNESCORTED ACCESS TO FACILITIES OF THE GAMING CONTROL BOARD; AMENDING APPLICATION AND RENEWAL REQUIREMENTS FOR GAMING LICENSES, CERTIFICATIONS OF FINDINGS SUITABILITY AND WORK PERMITS; PROVIDING FOR BACKGROUND INVESTIGATIONS OF APPLICANTS FOR A LICENSE OR PERMIT ISSUED PURSUANT TO THE NEW MEXICO BINGO AND RAFFLE ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 60-2E-11 NMSA 1978 (being Laws 1997, Chapter 190, Section 13, as amended) is amended to read:
"60-2E-11. INVESTIGATION OF EXECUTIVE DIRECTOR CANDIDATES AND EMPLOYEES.--
A. A person who is under consideration in the final selection process for appointment as the executive director shall file a disclosure statement pursuant to the requirements of this section, and the board shall not make an appointment of a person as executive director until a background investigation is completed by the department of public safety and a report is made to the board.
B. A person who has reached the final selection process for employment by the executive director shall file a disclosure statement pursuant to the requirements of this section if the executive director or the board has directed the person do so. The person shall not be further considered for employment until a background investigation is completed by the board's law enforcement officers and a report is made to the executive director.
C. A person who is a contractor seeking unescorted access to a facility of the board shall file a disclosure statement pursuant to the requirements of this section. The contractor shall not be provided unescorted access to the facility until the enforcement division of the board completes a background investigation and a report is made to the executive director. Submission of a disclosure statement shall constitute consent to a national criminal background check and any other background investigations required pursuant to the Gaming Control Act or deemed necessary by the board.
[C.] D. Forms for the disclosure statements required by this section shall be developed by the board in cooperation with the department of public safety. At least the following information shall be required of a person submitting a statement:
(1) a full set of fingerprints made by a law enforcement agency on forms supplied by the board;
(2) complete information and details with respect to the person's antecedents, habits, immediate family, character, criminal record, business activities and business associates, covering at least a ten-year period immediately preceding the date of submitting the disclosure statement; and
(3) a complete description of any equity interest held in a business connected with the gaming industry.
[D.] E. In conducting a background investigation and preparing an investigative report, the board's law enforcement officers may request and receive criminal history information from the federal bureau of investigation or any other law enforcement agency or organization. The board's law enforcement officers shall maintain confidentiality regarding information received from a law enforcement agency that may be imposed by the agency as a condition for providing the information to the department, except that the board's law enforcement officers may provide criminal history information and reports to licensees or tribal gaming casinos when conducting background checks on behalf of the licensee or tribal gaming casino.
[E.] F. A person required to file a disclosure statement shall provide any assistance or information requested by the department of public safety or the board and shall cooperate in any inquiry or investigation.
[F.] G. If information required to be included in a disclosure statement changes or if information is added after the statement is filed, the person required to file it shall provide that information in writing to the person requesting the investigation. The supplemental information shall be provided within thirty days after the change or addition.
[G.] H. The board shall not appoint a person as executive director, and the executive director shall not employ a person, if the board or the executive director has reasonable cause to believe that the person has:
(1) knowingly misrepresented or omitted a material fact required in a disclosure statement;
(2) been convicted of a felony, a gaming- related offense or a crime involving fraud, theft or moral turpitude within ten years immediately preceding the date of submitting a disclosure statement required pursuant to this section;
(3) exhibited a history of willful disregard for the gaming laws of this or any other state or the United States; or
(4) had a permit or license issued pursuant to the gaming laws of this or any other state or the United States permanently suspended or revoked for cause.
[H.] I. Both the board and the executive director may exercise absolute discretion in exercising their respective appointing and employing powers."
SECTION 2. Section 60-2E-14 NMSA 1978 (being Laws 1997, Chapter 190, Section 16, as amended) is amended to read:
"60-2E-14. LICENSURE--APPLICATION.--
A. The board shall establish and issue the following categories of licenses:
(1) manufacturer;
(2) distributor;
(3) gaming operator; and
(4) gaming machine.
B. The board shall issue certifications of findings of suitability for key executives and other persons for whom certification is required.
C. The board shall issue work permits for gaming employees.
D. A licensee shall not be issued more than one type of license, but this provision does not prohibit a licensee from owning, leasing, acquiring or having in the licensee's possession licensed gaming machines if that activity is otherwise allowed by the provisions of the Gaming Control Act. A licensee shall not own a majority interest in, manage or otherwise control a holder of another type of license issued pursuant to the provisions of that act.
E. An applicant for a license, a certification of finding of suitability or a work permit shall apply on forms provided by the board and shall furnish to the board [two sets of fingerprint cards] a full set of fingerprints made by a law enforcement agency or the department of public safety's designee and all other information requested by the board. Submission of an application constitutes consent to a national criminal background check of the applicant, a credit check of the applicant and all persons having a substantial interest in the applicant and any other background investigations required pursuant to the Gaming Control Act or deemed necessary by the board. The board may obtain from the taxation and revenue department copies of tax returns filed by or on behalf of the applicant or its affiliates and information concerning liens imposed on the applicant or its affiliates by the taxation and revenue department.
F. All licenses issued by the board pursuant to the provisions of this section, except for certifications of findings of suitability and work permits, shall be reviewed for renewal annually unless revoked, suspended, canceled or terminated. Certifications of findings of suitability and work permits issued by the board pursuant to the provisions of this section shall be reviewed for renewal every three years unless revoked, suspended, canceled or terminated.
G. A license shall not be transferred or assigned.
H. The application for a license shall include:
(1) the name of the applicant;
(2) the location of the proposed operation;
(3) the gaming devices to be operated, manufactured, distributed or serviced;
(4) the names of all persons having a direct or indirect interest in the business of the applicant and the nature of such interest; and
(5) such other information and details as the board may require.
I. The board shall furnish to the applicant supplemental forms that the applicant shall complete and file with the application. The supplemental forms shall require two sets of fingerprint cards and complete information and details with respect to the applicant's antecedents, habits, immediate family, character, state and federal criminal records, business activities, financial affairs and business associates, covering at least a ten-year period immediately preceding the date of filing of the application.
J. In conducting a background investigation and preparing an investigative report on the applicant, the board's law enforcement officers may request and receive criminal history information from the federal bureau of investigation or any other law enforcement agency or organization. The board's law enforcement officers shall maintain confidentiality regarding information received from a law enforcement agency that may be imposed by the agency as a condition for providing the information to the board."
SECTION 3. Section 60-2F-9 NMSA 1978 (being Laws 2009, Chapter 81, Section 9) is amended to read:
"60-2F-9. DISCLOSURE OF BACKGROUND INFORMATION.--
A. The board may require an applicant for a license or permit to be issued pursuant to the New Mexico Bingo and Raffle Act to disclose information sufficient for the board to make a determination as to the applicant's suitability. The board may adopt rules to coordinate the manner in which the information is produced.
B. An applicant [shall provide all of the information required by the board] for a license or permit issued pursuant to the New Mexico Bingo and Raffle Act shall apply on forms provided by the board and shall furnish to the board a full set of fingerprints made by a law enforcement agency or the department of public safety's designee and all other information requested by the board. Submission of such an application constitutes consent to a national criminal background check of the applicant, a credit check of the applicant and all persons having a substantial interest in the applicant and any other background investigations required pursuant to the New Mexico Bingo and Raffle Act or deemed necessary by the board.
C. In conducting a background investigation and preparing an investigative report on an applicant pursuant to this section, the board's enforcement division may request and receive criminal history information from the federal bureau of investigation or any other law enforcement agency or organization. The board's enforcement division shall maintain confidentiality regarding such information received from the federal bureau of investigation or a law enforcement agency that may be imposed as a condition for providing the information to the board.
[C.] D. The cost of a background investigation, not to exceed one hundred dollars ($100), shall be paid by the applicant."
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.
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