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

SPONSOR Lujan, B.

ORIGINAL DATE

LAST UPDATED

2/9/06

HB 864

SHORT TITLE Transfer of Duties to Gaming Control Board

SB

ANALYST Francis

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Gaming Control Board

State Racing Commission

SUMMARY

Synopsis of Bill

House Bill 864 makes significant changes to the way horse racing is operated in New Mexico.

The bill transfers significant duties enumerated in the Horse Racing Act from the state racing

commission to the gaming control board. These duties include licensing, pari-mutuel wagering,

and simulcasting as they pertain to horse racing

Changes to the Horse Racing Act:

1.

Adds definitions.

2.

Attaches the state racing commission to the tourism department.

3.

Stipulates that at least three of the members of the state racing commission are breeders.

4.

Removes authority for licensing, supervision and enforcement of pari-mutuel wagering

activities from the state racing commission.

5.

Directing the state racing commission to work with the gaming control board to deveop

rules and procedures for supervision and enforcement of horse racetrack activities.

6.

Directs the state racing commission to establish rules and issue work permits for horse

racetrack employees who are not licensed by the gaming control board.

House Bill 864 – Page

2

Changes to the Gaming Control Act:

1.

Expands the definitions to include horse racetracks and wagering on horse races whether

live or simulcast.

2.

Defines pari-mutuel wagering.

3.

Stipulates that one member of the gaming control board must be a public member of the

state racing commission and is counted as the public member of the gaming control

board. The public member who is the state racing commission member shall not receive a

salary.

4.

Provides the gaming control board the authority to license horse racetrack gaming opera-

tions.

5.

Allows simulcast horse races as long as there is a live race going on at the track and the

track where the simulcast race has at least 17 days of live racing.

6.

Commission rates are established for licensees.

FISCAL IMPLICATIONS

There will be no additional fiscal impacts due to this change. The taxes indicated in HB 864 are

being moved from the Horse Racing Act to the Gaming Control Act. There will be a new racing

suspense fund that is created to accept payments and make distributions but neither the existing

taxes nor the existing distributions change.

SIGNIFICANT ISSUES

The State Racing Commission reports that there would be savings that result from the consolida-

tion of duties and authorities. The elimination of the deputy director position, being able to con-

solidate the investigations at race tracks and the elimination of contracted auditors. This would

streamline service to the public with regard to licensing, background checks, regulation and su-

pervision of race tracks.

The Gaming Control Board reports that the transfer of duties to the control board would need to

come with a joint powers agreement to ensure that they have sufficient budget to absorb the addi-

tional responsibilities. If there is no reallocation of personnel and monies to the Gaming Control

Board, the Board will be hampered in fulfilling the mandated duties assigned by this bill. This

bill eliminates two agencies from duplicating their efforts, particularly as it pertains to licensing.

The implementation of the bill will streamline the licensing aspects of the racetracks as well as

strengthen the regulatory oversight.

NF/yr