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F I S C A L I M P A C T R E P O R T

SPONSOR Griego

DATE TYPED 3/16/05

HB

SHORT TITLE Gaming Control Board Powers and Duties

SB 384/aSJC/aSFl#1

ANALYST Medina

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the Gaming Control Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Gaming Control Board (GCB)

SUMMARY

Synopsis of Senate Floor Amendment #1

The Senate Floor Amendment to Senate Bill 384 strikes the essence of the Senate Judiciary

Committee Amendment, which relates to the Gaming Control Board’s adoption of rules govern-

ing the self-exclusion from areas where gaming occurs. The floor amendment replaces this sec-

tion of the SJC amendment with the same language with one exception. The floor amendment

strengthens the intent of the SJC amendment, replacing:

“The name of a person who has been voluntarily self-excluded from the area where gaming oc-

curs in a gaming establishment shall be confidential, and the self-exclusion list shall not be sub-

ject to inspection under the Inspection of Public Records Act.”

with:

“A gaming operator licensee, a key executive or any other person employed by or working pur-

suant to a contract with a gaming establishment is prohibited from disclosing the name of a per-

son who is voluntarily self-excluded from the area where gaming occurs in a gaming establish-

ment. The self-exclusion list shall not be subject to inspection under the Inspection of Public

Senate Bill 384/aSJC/aSFL#1 -- Page 2

Records Act.”

The floor amendment also amends GCB’s powers and duties to impose civil fines not to exceed

five thousand dollars for violation by a key executive or any other person employed by or work-

ing pursuant to a contract with a gaming establishment of the prohibition against disclosure of

names of persons who are self-excluded from gaming establishments; and twenty-five thousand

dollars for violation by a gaming operator licensee of the prohibition against disclosure of names

of persons who are self-excluded from gaming establishments.

Synopsis of SJC Amendment

The Senate Judiciary Committee Amendment to Senate Bill 384 changes the provision allowing

GCB to adopt rules for voluntary exclusion of compulsive gamblers from “gaming establish-

ments” to “the area where gaming occurs in a gaming establishment” and eliminates the rules,

truly leaving the adoption of rules up to GCB.

The amendment further adds sections providing:

•

that a person who is self-excluded from an area where gaming occurs is guilty of trespass

pursuant to Section 30-14-1.1 NMSA 1978 if he or she enters such an area,

•

that the names of self-excluded persons is to be confidential and not subject to inspection

under the Inspection of Public Records Act,

•

that a self-excluded person be required to execute a valid waiver and release of claims for

damages resulting from placement on the self-exclusion list, and

•

that no gaming operator licensee be held liable for action taken as a result of administer-

ing a self-exclusion program.

Synopsis of Original Bill

Senate Bill 384 amends the Gaming Control Act to remove a limitation on the salary of the ex-

ecutive director. The bill also grants the Gaming Control Board the discretion on the issuance of

a license or certification to an applicant who has been denied a license in this state or any other

state in the past.

The bill adds to the Gaming Control Act a provision allowing the board to adopt a rule to allow

persons who are compulsive gamblers to voluntarily exclude themselves from a gaming estab-

lishment and includes language for the proposed amendment to the board’s rules. Finally, the bill

includes an amendment to the gaming tax description for nonprofit gaming operator licensees.

The amendment requires that a portion of the 60 percent of a nonprofit gaming operator’s net

take be distributed for the treatment and assistance of compulsive gamblers and that no less than

0.25 percent of the net take of nonprofit operator’s gaming machines be expended on compulsive

gambler treatment and assistance programs.

Significant Issues

The bill includes specific language for the rules that the board would adopt regarding voluntary

exclusion from gaming facilities but does not recommend a salary for the executive director.

ADMINISTRATIVE IMPLICATIONS

The GCB’s audit division will be responsible for monitoring adherence to the proposed 0.25 per-

cent required allocation to compulsive gambling treatment and assistance programs. GCB would

also be charged with the maintenance of the voluntary exclusion program and list. Neither of

these activities would impose a significant administrative burden on the agency.

Senate Bill 384/aSJC/aSFL#1 -- Page 3

ALTERNATIVES

GCB recommends the following amendments:

“The language in 60-2E-34 needs to remain gender neutral, therefore the word ‘himself’

needs to be replaced to ‘oneself’.”

And:

“The language in 60-2E-47 (F) needs to change so not to impact charitable or education

expenditures to:

F. A nonprofit gaming operator licensee shall distribute at least sixty percent of the bal-

ance 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 licen-

see’s gaming machines shall be expended on compulsive gambler treatment and assis-

tance programs.”

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The Gaming Control Act would continue without a 0.25 percent required allocation to compul-

sive gambling treatment by nonprofit gaming operators.

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