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SPONSOR: |
Roberts |
DATE TYPED: |
02/07/02 |
HB |
276 |
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SHORT TITLE: |
Amend Gaming Control Act |
SB |
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ANALYST: |
Gonzales |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
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FY02 |
FY03 |
FY02 |
FY03 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
LFC Files
Attorney General
Gaming Control Board (GCB)
SUMMARY
Synopsis
of Bill
The analysis below submitted by the Gaming
Control Board fully explains House Bill 276.
The Attorney General concurs with the analysis.
HB276 makes the
following substantive amendments to the Criminal Code and the Gaming Control
Act:
Section
1. HB276 amends Section 30-19-1 of the
Criminal Code. A specific date (1970)
is established to determine whether a gaming device is considered an antique
for purposes of determining the legality of the device. The bill also amends the definition of
“gambling device” and “lottery” to include money, tokens or other consideration
and to include any machine that is designed, constructed or readily adaptable
for use in gambling.
Section
3. The bill amends the definition of
“game” by (a) identifying various types of consideration that may activate a
“game”; (b) providing that a game may, but does not necessarily, award a prize;
and (3) specifying that playing cards in a private residence where no one makes
money operating the activity is not a prohibited activity. Amendments also include a
change in the definition of “gaming device” and “gaming machine’” to clarify that the design of the machine, not its use, determines whether it is a legal device under the Act. The definition of “manufacturer” also is amended to clarify that a manufacture of gaming device components that affect the gaming device’s game outcome, security, recordkeeping, reporting functions, or communication with the central monitoring system need to be licensed by the board. The bill also defines “public post-secondary educational institution”.
Section
4. The bill allows the Board to
delegate its authority to impose fines.
Section
5. The amendment eliminates the
requirement that rulemaking hearings be held in Santa Fe.
The
bill also adds a provision allowing the board to establish regulations
governing the criteria and conditions for temporary possession of a gaming
device by post-secondary educational institutions or trade shows.
Section
6. The bill expressly authorizes the
executive director to issue administrative citations where there is reasonable
belief that a violation has occurred.
Section
7. The bill amends background
investigation procedures by providing that the board’s law enforcement officers
will conduct background investigations on applicants for employment with the
Board. The bill also allows the
Board’s law enforcement officers to receive an applicant’s criminal history
information from other law enforcement agencies. The bill provides that the Board’s law enforcement officers will
maintain the confidentiality of information received from other agencies except
that the Board’s officers may provide criminal history information to licensees
or tribal gaming casinos when conducting background checks on behalf of the
licensee or tribal casino.
Section
8. The bill allows the Board to waive
the requirement for a manufacturer’s license upon written request from a
manufacturer of associated equipment.
The bill allows public post secondary educational institutions to
possess unlicensed or illegal gaming devices for the sole purpose of providing
technical training. The bill changes
“machine” to “device” and clarifies that unlicensed gaming devices are illegal
and are subject to seizure and forfeiture.
Section
9. A new section is added that permits
public post-secondary educational institutions, trade shows and component
manufactures to temporarily possess unlicensed gaming devices. Post-secondary educational institutions may
possess unlicensed gaming devices for the limited purposed of providing
educational instruction on the technical aspects of gaming devices. Trade shows may temporarily possess
unlicensed gaming devices for the limited purpose of demonstration and
marketing the device. Component manufacturers
of equipment that does not affect a gaming device’s game outcome, security,
recording and reporting functions, or communication with a central monitoring
system may possess an unlicensed gaming device for the limited purpose of
testing or demonstration.
Section
10. The bill clarifies that the Board
may obtain tax information on an applicant for licensure from the Taxation and
Revenue Department.
Section
12. The amendment conforms licensure
requirements for distributors and manufacturers by providing that a license is
necessary for anyone who distributes gaming machines from within New Mexico for
use or play outside New Mexico.
Section
13. The bill deletes language
concerning requests to the Board for remand of a matter to a hearing officer
for additional evidence. The amendment
clarifies that Board orders are effective on the date issued and remain in
effect unless reversed by judicial review.
Section
14. The amendment changes “slot
machine” to “gaming machine.” “Slot machine”
is not a defined term and does not appear elsewhere in the Gaming Control Act.
Section
15. The amendment increases the time
frame in which a hearing officer must submit his recommendation to the Board
from 10 to 30 days. The amendment also
provides that administrative hearings will be conducted in Albuquerque or, at
the licensee’ request, in the place or area affected.
Section
16. The amendment provides that persons
adversely affected by an action of the Board have 30 days after the date the
action is taken to file an appeal.
Section
17. The bill increases from $600 to
$1,200 the amount of winnings that triggers Human Services Department
notification requirements.
Section
18. New language specifies that it is
illegal for a person to intentionally possess an unlicensed gaming device and
makes it a fourth degree felony to do so.
Significant
Issues
The amended definition
of “manufacturer” may require the Board to monitor the completion, sale, and
addition of components to gaming devices before the Board can determine whether
the component manufacturer must obtain a license. The additional language allowing the possession of gaming devices
for testing appears incorrect because it inadvertently gives that authority to
persons who have no reason to need the devices.
PERFORMANCE IMPLICATIONS
By clarifying definitions relating to gaming
devices, specifying crimes related to possession and manufacturing of gaming
devices and associated equipment, allowing for delegation of authority, and
conforming language internally and with the Criminal Code, the bill will
enhance the Board’s ability to regulate licensed gambling and limit unlicensed
gambling. Changes in definitions to
“gaming device” will help ensure consistency among the Act, the Criminal Code
and gaming technology.
The provision in the bill allowing the Board to
delegate authority to impose fines also improves administration and enforcement
of the Act by allowing those decisions to be made outside of monthly Board
meetings. The amendment also allows the
executive director to settle cases within parameters established by the Board,
which could increase efficiency.
Changes in the location for rulemaking hearings
will help ensure full hearings as a significant number of the Board’s licensee
cannot, or do not, attend hearings in Santa Fe.
Administration of the Act would be enhanced by
the proposed changes in background investigation procedures for applicants for
employment with the Board. The
amendment allowing in-house investigation of applicants streamlines the process
and reflects current procedures under cooperative agreement between the Board
and the Department of Public Safety.
Also allowing the Board to provide criminal history report information
to requesting tribal casino fosters cooperation between the tribes and the
State Gaming Representative and also expedites and streamlines the licensing
process of the tribal casinos.
The amendment allowing the Board to obtain
information directly from Taxation and Revenue concerning an applicant’s tax
history may expedite licensing activities.
OTHER SUBSTANTIVE ISSUES
The added language in
Section 9 of the bill, identified as Section 60-2E-13.1(C), allows manufacturers
of gaming device components that do not affect a gaming device’s game outcome,
security, recording and reporting functions, or communication with a central
monitoring system, possess an unlicensed gaming device. If the components have no effect, there is
no reason to authorize possession of unlicensed gaming devices by those manufacturers. As drafted, any person who manufactures
items such as light bulbs, glass, bolts, control knobs, and cabinet locks may
possess an unlicensed and illegal gaming device.
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