SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR

SENATE BILL 444

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO HORSE RACING; INCREASING CIVIL PENALTIES FOR VIOLATIONS OF THE HORSE RACING ACT; PROVIDING FOR THE REPORT OF VIOLATIONS TO THE DISTRICT ATTORNEY; ADDING A CONDITION TO THE QUALIFICATIONS FOR A LICENSE; PROVIDING A NATIONALLY RECOGNIZED CLASSIFICATION OF PROHIBITED SUBSTANCES; PROVIDING AN INDEPENDENT STANDARD FOR DRUG TESTING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 60-1A-5 NMSA 1978 (being Laws 2007, Chapter 39, Section 5) is amended to read:

     "60-1A-5. COMMISSION RULES--ALL LICENSES--SUSPENSION, REVOCATION OR DENIAL OF LICENSES--PENALTIES.--

          A. The commission shall adopt rules to implement the Horse Racing Act and to ensure that horse racing in New Mexico is conducted with fairness and that the participants and patrons are protected against illegal practices [on the racing grounds].

          B. Every license issued by the commission shall require the licensee to comply with the rules adopted by the commission. A racetrack licensee shall post printed copies of the rules in conspicuous places on the racing grounds and shall maintain them during the period when live horse races are being conducted.

          C. The commission may suspend, revoke or deny renewal of a license of a person who violates the provisions of the Horse Racing Act or rules adopted pursuant to that act. The commission shall provide a licensee facing suspension, revocation or denial of renewal of a license reasonable notice and an opportunity for a hearing. The suspension, revocation or denial of renewal of a license shall not relieve the licensee from prosecution for the violations or from the payment of fines and penalties assessed the licensee by the commission.

          D. The commission may impose civil [penalties] penalty fines upon a licensee for a violation of the provisions of the Horse Racing Act or rules adopted by the commission. The fines shall not exceed [ten thousand dollars ($10,000)] one hundred thousand dollars ($100,000) or one hundred percent of a purse related to the violation, whichever is greater, for each violation [and].

          E. Fines shall be paid into the current school fund.

          F. When a penalty is imposed pursuant to this section for administering a performance-altering substance as provided in Subsection A of Section 60-1A-28 NMSA 1978, the commission shall direct its executive director to report the violation to the district attorney for the county in which the violation occurred and to the horse racing licensing authority in any other jurisdiction in which the licensee being penalized is also licensed."

     SECTION 2. Section 60-1A-11 NMSA 1978 (being Laws 2007, Chapter 39, Section 11) is amended to read:

     "60-1A-11. GRANTING A LICENSE--STANDARDS.--

          A. A license shall not be issued or renewed unless the applicant has satisfied the commission that the applicant:

                (1) is of good moral character, honesty and integrity;

                (2) has not been denied a license, had a license revoked or does not currently have a license suspended by a horse racing licensing authority in another jurisdiction;

                [(2)] (3) does not have prior activities, criminal record, reputation, habits or associations that:

                     (a) pose a threat to the public interest;

                     (b) pose a threat to the effective regulation and control of horse racing; or

                     (c) create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of horse racing, the business of operating a horse racetrack licensed pursuant to the Horse Racing Act or the financial activities incidental to operating a horse racetrack;

                [(3)] (4) is qualified to be licensed consistent with the Horse Racing Act;

                [(4)] (5) has sufficient business probity, competence and experience in horse racing as determined by the commission;

                [(5)] (6) has proposed financing that is sufficient for the nature of the license and from a suitable source that meets the criteria set forth in this subsection; and

                [(6)] (7) is sufficiently capitalized pursuant to standards set by the commission to conduct the business covered by the license.

          B. The commission shall establish by rule additional qualifications for a licensee as it deems in the public interest.

          C. A person issued or applying for an occupational license who has positive test results for a controlled substance or who has been convicted of a violation of a federal or state controlled substance law shall be denied a license or shall be subject to revocation of an existing license unless sufficient evidence of rehabilitation is presented to the commission.

          D. If the commission finds that an applicant for an occupational license or an occupational licensee has been convicted of any of the provisions of Subsection E of this section, the applicant shall be denied the occupational license or the occupational licensee shall have the occupational license revoked. An occupational license shall not be issued by the commission to an applicant or occupational licensee for a period of five years from the date of denial or revocation pursuant to this subsection.

          E. An occupational license [shall] may be denied or revoked if the applicant or occupational licensee, for the purpose of stimulating or depressing a racehorse or affecting its speed or stamina during a race or workout, is found to have:

                (1) administered, attempted to administer or conspired to administer to a racehorse, internally, externally or by injection, a drug, chemical, stimulant or depressant, or other [foreign substances not naturally occurring in a racehorse] performance-altering substance as defined by the association of racing commissioners international, incorporated, or a successor organization or, if none, by another nationally recognized organization that has published substantially similar guidelines that are generally accepted in the horse racing industry as determined by the commission, unless the applicant or occupational licensee has been specifically permitted to do so by the commission or a steward; or

                (2) attempted to use, used or conspired with others to use an electrical or mechanical device, implement or instrument, except [an ordinary whip] a commission-approved riding crop, unless the applicant or occupational licensee has been specifically permitted by the commission or a steward to use the device, implement or instrument.

          F. The burden of proving the qualifications of an applicant or licensee to be issued or have a license renewed shall be on the applicant or licensee.

          [G. A determination by the commission of a matter pursuant to this section shall be final and conclusive and not subject to appeal.]"

     SECTION 3. Section 60-1A-14 NMSA 1978 (being Laws 2007, Chapter 39, Section 14) is amended to read:

     "60-1A-14. TESTING SPECIMENS.--

          A. The commission shall adopt rules applying to the handling and testing of [urine and other specimens] blood serum plasma, urine or other appropriate test samples identified by the commission to be taken from racehorses.  

          B. Each specimen taken from a racehorse shall be divided into two or more equal samples, and:

                (1) one sample shall be tested by the commission or its designated laboratory in order to detect the presence of unauthorized drugs, chemicals, stimulants, depressants or other [foreign substances not naturally occurring in a horse] performance-altering substance as defined by the association of racing commissioners international, incorporated, or a successor organization or, if none, by another nationally recognized organization that has published substantially similar guidelines that are generally accepted in the horse racing industry as determined by the commission; and

                (2) the second sample shall be forwarded by the commission to the scientific laboratory division of the department of health.

          C. After [an inconclusive or] a positive test result on the sample tested by the commission or its designated laboratory and upon a written request from the president, executive director or manager of the New Mexico horsemen's association on forms designated by the commission, the scientific laboratory division shall transmit the corresponding second sample to the New Mexico horsemen's association.

          D. The scientific laboratory division shall keep all samples in a controlled environment for a period of at least three months.

          E. The commission shall contract with an independent laboratory to maintain a quality assurance program. The laboratory shall meet or exceed the current national laboratory standards for the testing of drugs or other foreign substances in a horse, as established by the association of racing commissioners international, incorporated, or of a successor organization or, if none, of another nationally recognized organization that has published substantially similar guidelines that are generally accepted in the horse racing industry."

     SECTION 4. Section 60-1A-28 NMSA 1978 (being Laws 2007, Chapter 39, Section 28) is amended to read:

     "60-1A-28. AFFECTING SPEED OR STAMINA OF A RACE HORSE--PENALTIES.--

          A. A person administering, attempting to administer or conspiring with others to administer to a racehorse a drug, chemical, stimulant or depressant or other [foreign substances not naturally occurring in a racehorse] performance-altering substance defined as a class 1 or class 2 penalty class A drug by the association of racing commissioners international, incorporated, or a successor organization or, if none, by another nationally recognized organization that has published substantially similar guidelines that are generally accepted in the horse racing industry as determined by the commission whether internally, externally or by injection for the purpose of stimulating or depressing the racehorse or affecting the speed or stamina of the racehorse during a horse race or workout is guilty of a fourth degree felony and upon conviction shall be sentenced pursuant to Section 31-18-15 NMSA 1978.

          B. A person who uses, attempts to use or conspires with others to use during a horse race or workout an electrically or mechanically prohibited device, implement or instrument, other than [an ordinary whip] a commission-approved riding crop, is guilty of a fourth degree felony and upon conviction shall be sentenced pursuant to Section 31-18-15 NMSA 1978.

          C. A person who sponges the nostrils or trachea of a racehorse or who uses anything to injure a racehorse for the purpose of stimulating or depressing the racehorse or affecting the speed or stamina of the racehorse during a horse race or workout is guilty of a fourth degree felony and upon conviction shall be sentenced pursuant to Section 31-18-15 NMSA 1978.

          D. It is prima facie evidence of intent to commit any of the crimes set forth:

                (1) in Subsection A of this section for a person to be found within the racing grounds of a racetrack licensee, including the stands, stables, sheds or other areas where racehorses are kept, who possesses with the intent to use, sell, give away or otherwise transfer to another person a drug, chemical, stimulant or depressant or other [foreign substance not naturally occurring in a racehorse] performance- altering substance defined as a class 1 or class 2 penalty class A drug by the association of racing commissioners international, incorporated, or a successor organization or, if none, by another nationally recognized organization that has published substantially similar guidelines that are generally accepted in the horse racing industry as determined by the commission, to stimulate or depress a racehorse or to affect the speed or stamina of a racehorse;

                (2) in Subsection B of this section for a person to be found within the racing grounds of a racetrack licensee, including the stands, stables, sheds or other areas where racehorses are kept, who possesses with the intent to use, sell, give away or otherwise transfer to another person an electrically or mechanically prohibited device, implement or instrument, other than [an ordinary whip] a commission-approved riding crop; and

                (3) in Subsection C of this section for a person to be found within the racing grounds of a racetrack licensee, including the stands, stables, sheds or other areas where racehorses are kept, who possesses with the intent to use, sell, give away or otherwise transfer to another person paraphernalia or substances used to sponge the nostrils or trachea of a racehorse or that may be used to injure a racehorse for the purpose of stimulating or depressing the racehorse or affecting its speed or stamina during a horse race or workout."

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