AN ACT
RELATING TO GAMING; REMOVING THE LIMITATION ON THE GAMING CONTROL BOARD EXECUTIVE DIRECTOR'S SALARY; PROVIDING DISCRETION TO THE GAMING CONTROL BOARD REGARDING ISSUING LICENSES TO APPLICANTS WHO HAVE BEEN DENIED LICENSES IN NEW MEXICO OR OTHER STATES; ALLOWING THE BOARD TO ADOPT RULES FOR VOLUNTARY EXCLUSION OF COMPULSIVE GAMBLERS FROM THE AREA WHERE GAMING OCCURS IN A GAMING ESTABLISHMENT; IMPOSING COMPULSIVE GAMBLER FEES ON NONPROFIT GAMING OPERATORS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 60-2E-7 NMSA 1978 (being Laws 1997, Chapter 190, Section 9, as amended) is amended to read:
"60-2E-7. BOARD'S POWERS AND DUTIES.--
A. The board shall implement the state's policy on gaming consistent with the provisions of the Gaming Control Act. It has the duty to fulfill all responsibilities assigned to it pursuant to that act, and it has all authority necessary to carry out those responsibilities. It may delegate authority to the executive director, but it retains accountability. The board is an adjunct agency.
B. The board shall:
(1) employ the executive director;
(2) make the final decision on issuance, denial, suspension and revocation of all licenses pursuant to and consistent with the provisions of the Gaming Control Act;
(3) develop, adopt and promulgate all regulations necessary to implement and administer the provisions of the Gaming Control Act;
(4) conduct itself, or employ a hearing officer to conduct, all hearings required by the provisions of the Gaming Control Act and other hearings it deems appropriate to fulfill its responsibilities;
(5) meet at least once each month;
(6) prepare and submit an annual report in December of each year to the governor and the legislature, covering activities of the board in the most recently completed fiscal year, a summary of gaming activities in the state and any recommended changes in or additions to the laws relating to gaming in the state; and
(7) impose civil fines not to exceed:
(a) five thousand dollars ($5,000) for violation by a key executive or any other person employed by or working pursuant to a contract with a gaming establishment of the prohibition against disclosure of names of persons who are self-excluded; and
(b) twenty-five thousand dollars ($25,000) for violation by the gaming operator licensee of the prohibition against disclosure of names of persons who are self-excluded.
C. The board may:
(1) impose civil fines not to exceed
twenty-five thousand dollars ($25,000) for the first violation and fifty thousand dollars ($50,000) for subsequent violations of any other prohibitory provision of the Gaming Control Act or any prohibitory provision of a regulation adopted pursuant to that act;
(2) conduct investigations;
(3) subpoena persons and documents to compel access to or the production of documents and records, including books and memoranda, in the custody or control of a licensee;
(4) compel the appearance of employees of a licensee or persons for the purpose of ascertaining compliance with provisions of the Gaming Control Act or a regulation adopted pursuant to its provisions;
(5) administer oaths and take depositions to the same extent and subject to the same limitations as would apply if the deposition were pursuant to discovery rules in a civil action in the district court;
(6) sue and be sued subject to the limitations of the Tort Claims Act;
(7) contract for the provision of goods and services necessary to carry out its responsibilities;
(8) conduct audits, relevant to their gaming activities, of applicants, licensees and persons affiliated with licensees;
(9) inspect, examine, photocopy and audit all documents and records of an applicant or licensee relevant to his gaming activities in the presence of the applicant or licensee or his agent;
(10) require verification of income and all other matters pertinent to the gaming activities of an applicant or licensee affecting the enforcement of any provision of the Gaming Control Act;
(11) inspect all places where gaming activities are conducted and inspect all property connected with gaming in those places;
(12) summarily seize, remove and impound from places inspected any gaming devices, property connected with gaming, documents or records for the purpose of examination or inspection;
(13) inspect, examine, photocopy and audit documents and records, relevant to his gaming activities, of any affiliate of an applicant or licensee that the board knows or reasonably suspects is involved in the financing, operation or management of the applicant or licensee. The inspection, examination, photocopying and audit shall be in the presence of a representative of the affiliate or its agent when practicable; and
(14) except for the powers specified in Paragraphs (1) and (4) of this subsection, carry out all or part of the foregoing powers and activities through the executive director.
D. The board shall monitor all activity authorized in an Indian gaming compact between the state and an Indian nation, tribe or pueblo. The board shall appoint the state gaming representative for the purposes of the compact."
Section 2. Section 60-2E-9 NMSA 1978 (being Laws 1997, Chapter 190, Section 11) is amended to read:
"60-2E-9. EXECUTIVE DIRECTOR--EMPLOYMENT--QUALIFICATIONS.--
A. The executive director shall be employed by, report directly to and serve at the pleasure of the board.
B. The executive director shall have had at least five years of responsible supervisory administrative experience in a governmental gaming regulatory agency.
C. The executive director shall receive an annual salary to be set by the board."
Section 3. Section 60-2E-16 NMSA 1978 (being Laws 1997, Chapter 190, Section 18) is amended to read:
"60-2E-16. ACTION BY BOARD ON APPLICATIONS.--
A. A person that the board determines is qualified to receive a license pursuant to the provisions of the Gaming Control Act may be issued a license. The burden of proving qualifications is on the applicant.
B. A license shall not be issued unless the board is satisfied that the applicant is:
(1) a person of good moral character, honesty and integrity;
(2) a person whose prior activities, criminal record, reputation, habits and associations do not pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto; and
(3) in all other respects qualified to be licensed consistent with the laws of this state.
C. A license shall not be issued unless the applicant has satisfied the board that:
(1) the applicant has adequate business probity, competence and experience in business and gaming;
(2) the proposed financing of the applicant is adequate for the nature of the proposed license and from a suitable source; any lender or other source of money or credit that the board finds does not meet the standards set forth in Subsection B of this section shall be deemed unsuitable; and
(3) the applicant is sufficiently capitalized under standards set by the board to conduct the business covered by the license.
D. An application to receive a license, certification or work permit constitutes a request for a determination of the applicant's general moral character, integrity and ability to participate or engage in or be associated with gaming. Any written or oral statement made in the course of an official proceeding of the board or by a witness testifying under oath that is relevant to the purpose of the proceeding is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action.
E. The board may refuse to issue a license or certification to an applicant who has been denied a license or certification in this state or another state, who has had a certification, permit or license issued pursuant to the gaming laws of a state or the United States permanently suspended or revoked for cause or who is currently under suspension or subject to any other limiting action in this state or another state involving gaming activities or licensure for gaming activities.
F. The board shall investigate the qualifications of each applicant before a license, certification or work permit is issued by the board and shall continue to observe and monitor the conduct of all licensees, work permit holders, persons certified as being suitable and the persons having a material involvement directly or indirectly with a licensee.
G. The board has the authority to deny an application or limit, condition, restrict, revoke or suspend a license, certification or permit for any cause.
H. After issuance, a license, certification or permit shall continue in effect upon proper payment of the initial and renewal fees, subject to the power of the board to revoke, suspend, condition or limit licenses, certifications and permits.
I. The board has full and absolute power and authority to deny an application for any cause it deems reasonable. If an application is denied, the board shall prepare and file its written decision on which its order denying the application is based."
Section 4. Section 60-2E-34 NMSA 1978 (being Laws 1997, Chapter 190, Section 36) is amended to read:
"60-2E-34. EXCLUSION OR EJECTION OF CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.--
A. The board shall by regulation provide for the establishment of a list of persons who are to be excluded or ejected from a gaming establishment. The list may include any person whose presence in the gaming establishment is determined by the board to pose a threat to the public interest or licensed gaming activities.
B. In making the determination in Subsection A of this section, the board may consider a:
(1) prior conviction for a crime that is a felony under state or federal law, a crime involving moral turpitude or a violation of the gaming laws of any jurisdiction;
(2) violation or conspiracy to violate the provisions of the Gaming Control Act relating to:
(a) the failure to disclose an interest in a gaming activity for which the person must obtain a license; or
(b) willful evasion of fees or taxes;
(3) notorious or unsavory reputation that would adversely affect public confidence and trust that the gaming industry is free from criminal or corruptive influences; or
(4) written order of any other governmental agency in this state or any other state that authorizes the exclusion or ejection of the person from an establishment at which gaming is conducted.
C. A gaming operator licensee has the right, without a list established by the board, to exclude or eject a person from its gaming establishment who poses a threat to the public interest or for any business reason.
D. Race, color, creed, national origin or ancestry, age, disability or sex shall not be grounds for placing the name of a person on the list or for exclusion or ejection under Subsection A or C of this section.
E. The board may adopt rules allowing a person who is a compulsive gambler to be voluntarily excluded from the area where gaming occurs in a gaming establishment and providing for a self-exclusion list.
F. A person who is self-excluded from the area where gaming occurs in a gaming establishment is guilty of trespass pursuant to Section 30-14-1.1 NMSA 1978 if the person enters the area where gaming occurs in a gaming establishment from which the person has been self-excluded.
G. A gaming operator licensee, a key executive or any other person employed by or working pursuant to a contract with a gaming establishment is prohibited from disclosing the name of a person who is voluntarily
self-excluded from the area where gaming occurs in a gaming establishment. The self-exclusion list shall not be subject to inspection under the Inspection of Public Records Act.
H. A person requesting to be voluntarily
self-excluded from the area where gaming occurs in a gaming establishment shall be required to execute a valid waiver and release of claims for damages resulting from placement on the self-exclusion list.
I. No gaming operator licensee shall be held liable for an action taken as a result of administering a self-exclusion program in accordance with rules adopted by the board."
Section 5. 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 percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers.
F. 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.
G. No less than one-fourth percent of the net take of the nonprofit gaming operator licensee's gaming machines shall be expended on compulsive gambler treatment and assistance programs."