SENATE BILL 251
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Steve Komadina
AN ACT
RELATING TO COMPULSIVE GAMING; IMPOSING COMPULSIVE GAMBLER FEES; CREATING A SUSPENSE FUND; CREATING THE COMPULSIVE GAMBLING TREATMENT FUND; DISTRIBUTING COMPULSIVE GAMBLER FEES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-24-24 NMSA 1978 (being Laws 1995, Chapter 155, Section 24, as amended) is amended to read:
"6-24-24. DISPOSITION OF REVENUE.--
A. As nearly as practical, an amount equal to at least fifty percent of the gross annual revenues from the sale of lottery tickets shall be returned to the public in the form of lottery prizes.
B. The authority shall transmit all net revenues to the state treasurer, who shall deposit them in the lottery tuition fund. Estimated net revenues shall be transmitted monthly to the state treasurer for deposit in the fund; provided that the total amount of annual net revenues for the fiscal year shall be transmitted no later than August 1 of each year.
C. In determining net revenues, operating expenses of the lottery include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods or services required by the lottery, including the costs of supplies, materials, tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, commissions paid to lottery retailers, printing, distribution of tickets, purchases of annuities or investments to be used to pay future installments of winning lottery tickets, debt service and payment of any revenue bonds issued, contingency reserves, transfers to the reserve fund and any other necessary costs incurred in carrying out the provisions of the New Mexico Lottery Act.
D. An amount up to [two] one and three-fourths percent of the gross annual revenues shall be set aside as a reserve fund to cover bonuses and incentive plans for lottery retailers, special promotions for retailers, purchasing special promotional giveaways, sponsoring special promotional events [compulsive gambling rehabilitation] and such other purposes as the board deems necessary to maintain the integrity and meet the revenue goals of the lottery. The board shall report annually to the governor and each regular session of the legislature on the use of the money in the reserve fund. Any balance in excess of fifty thousand dollars ($50,000) at the end of any fiscal year shall be transferred to the lottery tuition fund.
E. A fee that may be cited as the "compulsive gambler fee" is imposed on the authority in an amount of one-fourth percent of the gross annual revenues. The compulsive gambler fee shall be submitted to the state treasurer for deposit in the compulsive gambler fee suspense fund. The authority shall estimate and remit the compulsive gambler fee due to the state treasurer no later than the twenty-fifth day of the month following the month on which the estimate is based. The total amount of annual revenue due to the compulsive gambler fee suspense fund shall be transmitted to the state treasurer no later than August 1 each year."
Section 2. Section 60-2E-47 NMSA 1978 (being Laws 1997, Chapter 190, Section 49, as amended) is amended to read:
"60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--
A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax".
B. The gaming tax is an amount equal to ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts; ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state; ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and twenty-five percent of the net take of every other gaming operator licensee. For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices.
C. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities.
D. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act apply to the collection and administration of the tax.
E. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. [A racetrack gaming operator licensee shall spend no less than one fourth of one percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers.]
F. A fee that may be cited as the "compulsive gambler fee" is imposed on gaming operator licensees in the amount of one-fourth percent of the net take from gaming machines of a gaming operator licensee. The compulsive gambler fee shall be submitted by a gaming operator licensee to the state treasurer for deposit in the compulsive gambler fee suspense fund. Each gaming operator licensee shall estimate and remit the compulsive gambler fee due to the state treasurer no later than the twenty-fifth day of the month following the month on which the estimate is based. The total amount of revenue due to the compulsive gambler fee suspense fund shall be transmitted to the state treasurer no later than August 1 each year.
[F.] G. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes,
for charitable or educational purposes."
Section 3. A new section of the Gaming Control Act is enacted to read:
"[NEW MATERIAL] COMPULSIVE GAMBLER FEE SUSPENSE FUND--CREATION--ADMINISTRATION.--
A. The "compulsive gambler fee suspense fund" is created in the state treasury. All money received by the state treasurer from compulsive gambler fees shall be credited daily to the fund. The state treasurer shall administer the fund. Earnings from investment of the fund shall not be retained in the compulsive gambler fee suspense fund but be distributed to the general fund.
B. The state treasurer may authorize a refund of money overpaid as estimated compulsive gambler fees based on evidence presented no later than August 1 of each year that estimated payments of compulsive gambling fees exceeded the amount of fees due from the requesting entity. As used in this subsection, a "requesting entity" means the New Mexico lottery authority, a gaming operator licensee or an Indian nation, tribe or pueblo that has entered into a tribal-state gaming compact and has submitted compulsive gambler fees to the state treasurer.
C. Beginning in September 2004 and in each subsequent month, the state treasurer on the twenty-fifth day shall distribute one-third of the net receipts of the compulsive gambler fee suspense fund to the compulsive gambling treatment fund."
Section 4. A new section of the Gaming Control Act is enacted to read:
"[NEW MATERIAL] COMPULSIVE GAMBLING TREATMENT FUND--CREATION--ADMINISTRATION.--
A. The "compulsive gambling treatment fund" is created in the state treasury. The fund shall be administered by the department of health. The fund shall be comprised of money distributed from the compulsive gambler fee suspense fund, grants, gifts or bequests and appropriations from the legislature.
B. No more than one hundred twenty-five thousand dollars ($125,000) or seven percent of the compulsive gambling treatment fund, whichever is less, may be expended by the department of health to administer the fund or to administer compulsive gambling education, prevention or treatment programs.
C. The money in the compulsive gambling treatment fund shall be expended by the department of health to provide compulsive gambling education, prevention and treatment services in New Mexico.
D. The department of health shall adopt rules to implement the purposes of the compulsive gambling treatment fund and to administer the distribution of money in the fund.
E. Money set aside for the prevention, treatment or assistance of compulsive gambling set aside by an Indian nation, tribe or pueblo that has entered into a tribal-state gaming compact may be deposited in the fund upon agreement with the Indian nation, tribe or pueblo.
F. Earnings from investment of the compulsive gambling treatment fund shall be deposited in that fund.
G. All money in the compulsive gambling treatment fund is appropriated to the department of health for use for the purposes of that fund.
H. Balances in the compulsive gambling treatment fund shall not revert to the general fund but shall remain in the fund for expenditure by the department of health for the purposes of the fund.
I. The department of health shall report to the legislative finance committee annually on the money deposited to the credit of the compulsive gambling treatment fund and the expenditures made from the fund."
- 8 -