SB0403

SENATE BILL 403

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO HORSE RACING; ADMINISTRATIVELY ATTACHING THE STATE RACING COMMISSION TO THE GAMING CONTROL BOARD; PROHIBITING ANY HORSE RACING ACTIVITY WITHOUT A LICENSE; PROVIDING FOR APPEAL FROM STATE RACING COMMISSION ADJUDICATORY DECISIONS TO THE COURT OF APPEALS; REQUIRING A LIFETIME BAN FROM HORSE RACING FOR CERTAIN OFFENSES; PROVIDING FOR TEMPORARY LICENSES; CLARIFYING STEWARDS' POWERS; ADDRESSING THE REVIEW OF STEWARDS' DECISIONS; RENAMING THE RACEHORSE TESTING FUND THE "RACEHORSE TESTING AND ENFORCEMENT FUND"; MAKING POSSESSION OF CERTAIN DRUGS ON THE LICENSED PREMISES OF A RACETRACK A FOURTH DEGREE FELONY; MAKING AN APPROPRIATION.

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

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

"60-1A-3. COMMISSION CREATED--APPOINTMENT OF MEMBERS--TERMS OF OFFICE.--

A. The "state racing commission" is created and is administratively attached to the [tourism department] board.

B. The commission shall consist of five members, no more than three of whom shall be members of the same political party. The commission members shall be appointed by the governor and be confirmed by the senate. All members of the commission shall hold at-large positions on the commission.

C. At least three of the members of the commission shall be practical breeders of racehorses within New Mexico.

D. A commission member shall have primary residence in New Mexico and shall be of high character and reputation so that public confidence in the administration of horse racing is maintained.

E. The term of each member of the commission shall be six years from the date of the member's appointment. The member shall serve until a successor is appointed. In the case of a vacancy in the membership of the commission, the governor shall fill the vacancy by appointment for the unexpired term.

F. A person shall not be eligible for appointment as a member of the commission who is an officer, official or director in a corporation conducting horse racing within the state.

G. Members of the commission shall receive no salary, but each member of the commission shall receive per diem and mileage pursuant to the Per Diem and Mileage Act.

H. The commission may appoint an executive director and establish the executive director's duties and compensation."

SECTION 2. A new Section 60-1A-4.1 NMSA 1978 is enacted to read:

"60-1A-4.1. [NEW MATERIAL] LICENSE REQUIRED--PARTICIPATION IN UNLICENSED HORSE RACING--VIOLATIONS--PENALTIES.--

A. It is a violation of the Horse Racing Act for a person to hold or attempt to hold a public or private horse race or race meet for profit, gain or compensation or where any type of wagering or betting on the outcome of the race or for any other purpose occurs unless the person has been issued a racetrack license by the commission and has been authorized by the commission to hold the horse race or race meet on specific dates. A person who violates the provisions of this section is guilty of a fourth degree felony and upon conviction shall be sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978.

B. It is a violation of the Horse Racing Act for a person to participate in or attempt to participate in or to attend a public or private horse race or race meet held for profit, gain or compensation or where any type of wagering or betting on the outcome of the race or for any other purpose occurs unless the racetrack has been licensed by the commission and the commission has authorized the race or race meet for specific days. A person who violates the provisions of this section is guilty of a misdemeanor and shall be sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978."

SECTION 3. Section 60-1A-5 NMSA 1978 (being Laws 2007, Chapter 39, Section 5, as amended) is amended to read:

"60-1A-5. COMMISSION RULES--ALL LICENSES--SUSPENSION, REVOCATION OR DENIAL OF LICENSES--FINES AND LOSS OF PURSE--PENALTIES--HEARINGS--APPEAL.--

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.

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 or impose a fine on or order the loss of a purse 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 or facing imposition of a fine or loss of a purse 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. A hearing shall be held within twenty days of the date the notice of hearing was sent to the licensee. The hearing may be held before the commission or before a hearing officer designated by the commission. Unless the hearing is held before a hearing officer, within thirty days after the end of the hearing the commission shall render findings of fact, conclusions of law and a decision setting forth the actions it will take. If the hearing is held before a hearing officer, the hearing officer shall submit to the commission within thirty days after the end of the hearing written findings of fact, conclusions of law and a recommendation for commission action. Within thirty days after receiving the hearing officer's submission, the commission shall render its findings of fact, conclusions of law and a decision setting forth the actions the commission will take.

[D.] E. The commission may impose civil 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 one hundred thousand dollars ($100,000) or one hundred percent of a purse related to the violation, whichever is greater, for each violation.

[E.] F. Fines shall be paid into the current school fund.

[F.] G. 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.

H. A licensee subject to an adjudicatory decision by the commission may appeal the decision to the court of appeals as follows:

(1) the appeal shall be on the record made at the hearing and shall not be de novo;

(2) the appeal shall be taken within thirty days of the date of receipt of the commission's written decision by the licensee; otherwise, the decision is conclusive;

(3) the Rules of Appellate Procedure provide the procedure for perfecting the appeal;

(4) the filing of the notice of appeal shall not stay the enforcement of the decision of the commission, but, subject to the licensee giving a supersedeas bond conditioned for the satisfaction of and compliance with the commission's decision together with costs, interest and damages for delay if the appeal is dismissed or the decision is upheld and after a hearing and a showing of good cause by the licensee, a stay of the decision may be granted:

(a) by the commission; or

(b) by the court of appeals if the commission denies a stay or fails to act upon an application for a stay within eleven days after receipt of the application; (5) the court shall set aside a decision of the commission only if it is found to be:

(a) arbitrary, capricious or an abuse of discretion;

(b) not supported by substantial evidence in the record; or

(6) the licensee shall pay all costs for an appeal found to be frivolous by the court of appeals."

SECTION 4. Section 60-1A-8 NMSA 1978 (being Laws 2007, Chapter 39, Section 8) is amended to read:

"60-1A-8. RACETRACK LICENSES--APPLICATIONS--SPECIFIC REQUIREMENTS.--

[A. It is a violation of the Horse Racing Act for a person to hold a public horse race or a race meet for profit or gain in any manner unless the person has been issued a racetrack license by the commission and has been authorized by the commission to hold the horse race or race meet on specific dates.

B.] A. An application for a racetrack license shall be submitted in writing on forms designated by the commission. An applicant shall affirm that information contained in the application is true and accurate. The application shall be signed by the applicant or the applicant's agent, and the signature shall be notarized.

[C.] B. A racetrack license shall be valid for a period not to exceed one year. The commission may renew a racetrack license upon expiration of the term of the license.

[D.] C. Renewal applications for racetrack licenses shall be filed no later than June 1 of each year. The race dates for the upcoming year shall be set by the commission after the commission receives all renewal applications.

[E.] D. An application shall specify the dates and days of the week of the race meet that the applicant is requesting the commission to approve.

[F.] E. An application shall be filed not less than sixty days prior to the first day the proposed horse race or race meet is to be held.

[G.] F. The fee for a new racetrack license issued pursuant to this section shall not exceed five thousand dollars ($5,000).

[H.] G. The commission may schedule a date for a hearing on the application for a new racetrack license to determine the eligibility of the applicant pursuant to the Horse Racing Act or as needed for determining the eligibility for the renewal of a racetrack license. The applicant shall be notified of the hearing at least five days prior to the date of the hearing. The applicant has the right to present testimony in support of the application. Notice shall be mailed to the address of the applicant appearing upon the application for the racetrack license. Notice of the hearing date, time and location shall be postmarked by United States mail five days prior to the date of the hearing. Deposit of the hearing notice in United States mail constitutes notice.

[I.] H. If, after a hearing on the application, the commission finds the applicant ineligible pursuant to the provisions of the Horse Racing Act or rules adopted by the board, the racetrack license shall be denied.

[J.] I. If there is more than one application for a racetrack license pending at the same time, the commission shall determine the racing days that will be allotted to each successful applicant. Upon renewal, the commission shall determine the racing days that will be allotted to each applicant upon terms and conditions established by the commission.

[K.] J. A person shall not have a direct, indirect or beneficial interest of any nature, whether or not financial, administrative, policymaking or supervisory, in more than two horse racetracks in New Mexico. For purposes of this subsection, a person shall not be considered to have a direct, indirect or beneficial interest in a horse racetrack if the person owns or holds less than ten percent of the total authorized, issued and outstanding shares of a corporation that is licensed to conduct a race meet in New Mexico, unless the person has some other direct, indirect or beneficial interest of any nature, whether or not financial, administrative, policymaking or supervisory, in more than two licensed horse racetracks.

[L.] K. To determine interest held in a racetrack, to the extent that the interest is based on stock ownership:

(1) stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be considered as being owned proportionately by its shareholders, partners or beneficiaries;

(2) an individual shall be considered as owning the stock, directly or indirectly, if it is held by an immediate family member. For purposes of this paragraph, an "immediate family member" includes only the individual's siblings, spouse or children; and

(3) stock constructively owned by a person by reason of the application of Paragraph (1) of this subsection shall be considered to be actually owned by the person; and stock shall be constructively owned by an individual by reason of the application of Paragraph (2) of this subsection if the purpose of the constructive ownership is to make a person other than the individual applicant appear as the owner of the stock.

[M.] L. A corporation holding a racetrack license shall not issue to a person shares of its stock amounting to ten percent or more of the total authorized, issued and outstanding shares, and a corporation holding a racetrack license shall not issue shares of its stock that would, when combined with that stock transferee's existing shares owned, total more than ten percent of the total authorized, issued and outstanding shares of the corporation, unless:

(1) the corporation gives written notice to the commission at least sixty days before the contemplated stock transfer that the person to whom the stock is being transferred will become an owner of ten percent or more of the total authorized, issued and outstanding shares of the corporation; and

(2) the corporation receives written approval from the commission of the proposed transfer.

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

SECTION 5. Section 60-1A-11 NMSA 1978 (being Laws 2007, Chapter 39, Section 11, as amended) is amended to read:

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

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] is honest and has integrity;

(2) does not currently have a license suspended by a horse racing licensing authority in another jurisdiction;

(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;

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

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

(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

(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] three or more lifetime violations of Subsection A of Section 60-1A-28 NMSA 1978 or violations in other jurisdictions that would be considered by the commission to be violations of that subsection if they occurred in New Mexico, the commission shall deny the applicant's application or revoke the licensee's license and the applicant or former licensee shall be permanently barred from receiving a license pursuant to the Horse Racing Act.

E. An occupational license [may] shall be denied or revoked [if the applicant or occupational licensee] for a period of five years from the date of denial or revocation if the commission finds that an applicant for an occupational license or an 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] has:

(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 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 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. Pursuant to rules promulgated by the commission, the commission may issue a temporary or provisional occupational license to a person who is licensed for the same occupation in another jurisdiction with license requirements at least as stringent as those required by the Horse Racing Act and rules promulgated by the commission."

SECTION 6. Section 60-1A-12 NMSA 1978 (being Laws 2007, Chapter 39, Section 12) is amended to read:

"60-1A-12. STEWARDS--POWERS--DUTIES.--

A. There shall be three stewards, licensed and employed by the commission, to supervise each horse race meet. One of the stewards shall be designated the presiding official steward of the race meet. Stewards, other than the presiding official steward, shall be employed subject to the approval of the racetrack licensee. All stewards shall be licensed or certified by a nationally recognized horse racing organization. Stewards may impose suspension of a license or fines, or both, or may order the loss of a purse for violations of the Horse Racing Act and commission rules and shall exercise [those] other powers and perform duties prescribed by commission rules. B. A decision or action of a steward may be reviewed or reconsidered by the commission if a written request for review or reconsideration is made to the commission within five days of the steward's decision or action; otherwise, the right to a review or reconsideration is waived. A request by a licensee for a review or reconsideration shall be accompanied by a review fee of one thousand dollars ($1,000) to offset the costs or part of the costs of the review or reconsideration, which shall be deposited in the racehorse testing and enforcement fund. The review or reconsideration shall be subject to the hearing, decision and appeal provisions of Section 60-1A-5 NMSA 1978 as if the matter was originally before the commission for hearing. If the commission overrules the stewards' decision or action, the review fee shall be refunded to the licensee."

SECTION 7. Section 60-1A-14.1 NMSA 1978 (being Laws 2013, Chapter 102, Section 1) is amended to read:

"60-1A-14.1. RACEHORSE TESTING AND ENFORCEMENT FUND--CREATED--PURPOSE.--

A. The "racehorse testing and enforcement fund" is created in the state treasury. The purpose of the fund is:

(1) to ensure the testing of racehorses at a laboratory that meets or exceeds the current national laboratory standards for the testing of drugs or other foreign substances not naturally occurring in a horse, as established by the association of racing commissioners international, incorporated;

(2) to provide additional resources to the commission to enforce the requirements and prohibitions of the Horse Racing Act and commission rules; and

(3) to make refunds pursuant to Subsection B of Section 60-1A-12 NMSA 1978.

B. The fund consists of:

(1) one-half of the daily capital outlay tax appropriated and transferred pursuant to Paragraph (4) of Subsection A of Section 60-1A-20 NMSA 1978; [and]

(2) fees paid pursuant to Subsection B of Section 60-1A-12 NMSA 1978; and

(3) appropriations, gifts, grants and donations made to the fund.

C. Income from investment of the fund shall be credited to the fund.

D. The commission shall administer the racehorse testing and enforcement fund, and money in the fund is appropriated to the commission:

(1) for the handling and testing of blood serum plasma, urine or other appropriate test samples taken from racehorses pursuant to Section 60-1A-14 NMSA 1978;

(2) to offset enforcement costs; and

(3) to make refunds pursuant to Subsection B of Section 60-1A-12 NMSA 1978.

E. Any unexpended or unencumbered balance remaining in the racehorse testing and enforcement fund at the end of a fiscal year in excess of [six hundred thousand dollars ($600,000)] one million dollars ($1,000,000) shall revert to the general fund.

F. Expenditures from the fund shall be made on warrant of the secretary of finance and administration pursuant to vouchers signed by the executive director of the commission."

SECTION 8. Section 60-1A-20 NMSA 1978 (being Laws 2007, Chapter 39, Section 20, as amended) is amended to read:

"60-1A-20. DAILY CAPITAL OUTLAY TAX--CAPITAL OUTLAY OFFSET--STATE FAIR COMMISSION DISTRIBUTION--DAILY LICENSE FEES.--

A. A "daily capital outlay tax" of two and three-sixteenths percent is imposed on the gross amount wagered each day at a racetrack where horse racing is conducted on the premises of a racetrack licensee and also on the gross amount wagered each day when a racetrack licensee is engaged in simulcasting pursuant to the Horse Racing Act. After deducting the amount of offset allowed pursuant to this section, any remaining daily capital outlay tax shall be paid by the commission to the taxation and revenue department from the retainage of a racetrack licensee from on-site wagers made on the licensed premises of the racetrack licensee for deposit in the general fund. Of the daily capital outlay tax imposed pursuant to this subsection:

(1) for a class A racetrack licensee, not more than one-half of the daily capital outlay tax imposed on the first two hundred fifty thousand dollars ($250,000) of the daily handle may be offset by the amount that the class A racetrack licensee expends for capital improvements or for long-term financing of capital improvements at the racetrack licensee's existing facility;

(2) for a class B racetrack licensee, not more than one-half of the daily capital outlay tax imposed on the first two hundred fifty thousand dollars ($250,000) of the daily handle may be offset:

(a) in an amount not to exceed one-half of the offset allowed, the amount expended by the class B racetrack licensee for capital improvements; and

(b) in an amount not to exceed one-half of the offset allowed, the amount expended by the class B racetrack licensee for advertising, marketing and promoting horse racing in the state;

(3) through December 31, 2014, for both class A and class B racetrack licensees, an amount equal to one-half of the daily capital outlay tax is appropriated and transferred to the state fair commission for expenditure on capital improvements at the state fairgrounds and for expenditure on debt service on negotiable bonds issued for the state fairgrounds' capital improvements; and

(4) on and after January 1, 2015, for both class A and class B racetrack licensees, an amount equal to one-half of the daily capital outlay tax is appropriated and transferred to the racehorse testing and enforcement fund.

B. An additional daily license fee of five hundred dollars ($500) shall be paid to the commission by the racetrack licensee for each day of live racing on the premises of the racetrack licensee.

C. Accurate records shall be kept by the racetrack licensee to show gross amounts wagered, retainage, breakage and amounts received from interstate common pools and distributions from gross amounts wagered, retainage, breakage and amounts received from interstate common pools, as well as other information the commission may require. Records shall be open to inspection and shall be audited by the commission, its authorized representatives or an independent auditor selected by the commission. The commission may prescribe the method in which records shall be maintained. A racetrack licensee shall keep records that are accurate, legible and easy to understand.

D. Notwithstanding any other provision of law,

a political subdivision of the state shall not impose an occupational tax on a horse racetrack owned or operated by

a racetrack licensee. A political subdivision of the state shall not impose an excise tax on a horse racetrack owned

or operated by a racetrack licensee. Local option gross

receipts taxes authorized by the state may be imposed to the extent authorized and imposed by a subdivision of the state

on a horse racetrack owned or operated by a racetrack licensee."

SECTION 9. Section 60-1A-25 NMSA 1978 (being Laws 2007, Chapter 39, Section 25) is amended to read:

"60-1A-25. VIOLATIONS OF HORSE RACING ACT--POSSESSION OF DRUGS--FOURTH DEGREE FELONY.--Except as otherwise provided in the Horse Racing Act, a person who willfully violates, attempts to violate or conspires to violate a requirement of the Horse Racing Act or a prohibition specifically set forth in the Horse Racing Act is guilty of a fourth degree felony and shall be sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978."

SECTION 10. Section 60-1A-28 NMSA 1978 (being Laws 2007, Chapter 39, Section 28, as amended) is amended to read:

"60-1A-28. AFFECTING SPEED OR STAMINA OF A RACEHORSE--DRUG POSSESSION--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 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 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 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 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.

E. A person who possesses or uses a drug, substance or medication on the licensed premises that has not been approved by the United States food and drug administration for use in humans or animals without the prior approval of the commission is guilty of a fourth degree felony and upon conviction shall be sentenced pursuant to Section 31-18-5 NMSA 1978."

SECTION 11. APPROPRIATIONS.--

A. One hundred thousand dollars ($100,000) is appropriated from the general fund to the administrative office of the courts for expenditure in fiscal year 2016 and subsequent fiscal years for the court of appeals to handle direct appeals from adjudicatory decisions of the state racing commission. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

B. One hundred thousand dollars ($100,000) is appropriated from the general fund to the office of attorney general for expenditure in fiscal year 2016 and subsequent fiscal years to administratively prosecute civil violations of the Horse Racing Act and state racing commission rules and to represent the commission in appeals from those prosecutions. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

SECTION 12. TEMPORARY PROVISION.--The racehorse testing and enforcement fund is the new name for the racehorse testing fund and is not a new fund created by this act.

SECTION 13. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.

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