0001| HOUSE BILL 346
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| VINCENT GALLEGOS
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO GAMES OF CHANCE; ENACTING THE VIDEO GAMING ACT;
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0013| ESTABLISHING PROCEDURES; PRESCRIBING PENALTIES; IMPOSING TAXES
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0014| AND FEES; PERMITTING VERTICAL INTEGRATION OF CERTAIN LICENSEES;
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0015| PROVIDING FOR A CERTAIN LOCAL OPTION; MAKING APPROPRIATIONS.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. SHORT TITLE.--Sections 1 through 22 of this act
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0019| may be cited as the "Video Gaming Act."
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0020| Section 2. PURPOSE.--The purpose of the Video Gaming Act
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0021| is to combat the growth of illegal gaming through the
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0022| establishment of a regulated system of video games of chance.
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0023| The legislature finds that:
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0024| A. the technology now exists to provide a secure
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0025| system of regulated gaming;
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0001| B. this system will:
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0002| (1) offer fair play and return to consumers who
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0003| use the system;
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0004| (2) provide needed revenue to the state and its
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0005| political subdivisions;
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0006| (3) provide additional entertainment to attract
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0007| tourists and increase their length of stay; and
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0008| (4) provide additional jobs for the citizens of
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0009| New Mexico.
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0010| Section 3. DEFINITIONS.--As used in the Video Gaming Act:
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0011| A. "age controlled environment" means a location, or
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0012| portion of a location, licensed for the on premises consumption
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0013| of spirituous liquors and the interior of which is not
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0014| observable by any individual under the age of twenty-one years.
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0015| No individual under the age of twenty-one years may be employed
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0016| to work in the age controlled environment;
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0017| B. "application" means the forms and schedules
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0018| prescribed by the commission upon which an applicant applies for
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0019| a license or license renewal and includes, but is not limited
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0020| to, information, disclosure statements and financial statements
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0021| submitted;
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0022| C. "commission" means the video gaming commission;
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0023| D. "credit" means the basic unit of a win on a video
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0024| gaming device which entitles the player to one additional free
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0025| game at the lowest monetary rate at which one game may be
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0001| purchased on that device;
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0002| E. "financial source" means any person, partnership,
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0003| trust or corporation that provides credit for capital or
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0004| operations where the terms of repayment extend for more than
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0005| ninety days;
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0006| F. "gross proceeds" means the total value of money
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0007| placed in a video gaming device by consumers;
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0008| G. "holding a substantial interest" means:
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0009| (1) ownership, operation, management or
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0010| conducting the business of a proprietorship, directly or
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0011| indirectly, by an individual or spouse of the individual;
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0012| (2) sharing or being entitled to share in any
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0013| profits, actual or potential, of a partnership or trust by an
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0014| individual or spouse of the individual;
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0015| (3) being an officer, director, stockholder or
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0016| spouse of a stockholder in a corporation which is not publicly
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0017| traded;
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0018| (4) being the holder, legally or beneficially,
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0019| of five percent or more of any class of stock or other evidence
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0020| of ownership of a publicly traded corporation or other public
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0021| traded entity or being the spouse of such a holder;
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0022| (5) furnishing five percent or more of the
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0023| capital of any entity.
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0024| A person holding a substantial interest in any entity shall
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0025| be deemed to hold a substantial interest in every entity in
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0001| which the first entity holds a substantial interest;
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0002| H. "location agreement" means a written agreement
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0003| between an operator and the person or entity owning or
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0004| controlling a licensed premises for the placement of video
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0005| gaming devices within the location for use by the public. If
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0006| the person or entity owns the devices, the person or entity's
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0007| sworn statement to that effect shall be deemed a location
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0008| agreement;
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0009| I. "manufacturer" means a person or entity which
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0010| assembles, from subparts or raw materials, a complete video
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0011| gaming device;
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0012| J. "manufacturer's license" means a license issued
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0013| by the superintendent which authorizes the manufacture and
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0014| transfer or sale of video gaming devices to an operator;
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0015| K. "net proceeds" means the gross proceeds minus all
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0016| prizes paid out to players of a video gaming device;
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0017| L. "operator" means any person or entity who owns,
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0018| services or maintains video gaming devices, but does not include
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0019| any person owning or controlling, or holding a substantial
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0020| interest in an entity which owns or controls, a licensed
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0021| premises for which there is a location agreement;
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0022| M. "operator's license" means a license issued by
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0023| the superintendent which authorizes a person to engage in the
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0024| business of an operator;
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0025| N. "owner-operator" means any person or entity who
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0001| owns, services or maintains video gaming devices, owns or leases
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0002| one premises and is the holder of the premises license where the
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0003| video gaming devices are located;
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0004| N. "parimutuel horseracing facility" means a
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0005| premises licensed to hold public horseraces or horse meetings
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0006| for profit or gain;
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0007| O. "play" means to activate a video gaming device
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0008| and to manipulate or work it for the purpose of winning as
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0009| indicated by the pay-out schedule or accumulating credits to be
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0010| replayed or to be cashed out of the machine in the form of a
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0011| printed ticket to be exchanged for cash;
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0012| P. "premises license" means a license issued by the
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0013| superintendent to a person or entity owning or controlling a
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0014| location and authorizing the placement of video gaming devices
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0015| at that location for play by the public;
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0016| Q. "qualified sleeping unit" means a personal
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0017| sleeping room rented commercially to guests or transients whose
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0018| average stay is less than thirty days;
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0019| R. "resort" means a location within a resort area
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0020| having at least one hundred qualified sleeping units, a premises
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0021| licensed for the consumption of spirituous liquors and a
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0022| restaurant;
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0023| S. "resort area" means a geographical region
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0024| designated as a resort area by the commission and which is in a
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0025| local option district in which the local option provisions of
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0001| the Video Gaming Act have been adopted by the voters;
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0002| T. "spirituous liquors" means alcoholic beverages
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0003| except fermented beverages such as wine, beer and ale;
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0004| U. "superintendent" means the superintendent of
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0005| regulation and licensing; and
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0006| V. "video gaming device" means an electronic machine
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0007| which utilizes a cathode ray tube or video display screen and
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0008| microprocessors and which is available for consumer play upon
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0009| payment of specified consideration, with winners immediately
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0010| determined by the application of the element of chance, whether
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0011| or not accompanied by an element of skill, and with a reward of
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0012| possible games or credits displayed on the device to the
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0013| winners.
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0014| Section 4. COMMISSION ESTABLISHED--MEMBERSHIP--REQUIREMENTS.--
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0015| A. There is created the "video gaming commission"
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0016| which shall consist of five members appointed by the governor
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0017| with the advice and consent of the senate. Appointees not
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0018| confirmed by the senate shall continue to serve until the senate
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0019| has failed to confirm. Prior to appointing an individual, the
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0020| governor shall request the superintendent to conduct an inquiry
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0021| into the individual's background, with particular regard to
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0022| financial stability, integrity, responsibility and reputation
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0023| for good character.
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0024| B. Commission members serve three-year terms,
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0025| staggered by lot. One of the initial appointees shall serve
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0001| until December 31, 1997, two shall serve until December 31,
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0002| 1998, and the remaining two until December 31, 1999. Commission
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0003| member shall be eligible for reappointment only once. The chair
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0004| of the commission shall be appointed by the governor and shall
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0005| serve as chair at the pleasure of the governor. The vice-chair
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0006| of the commission, who shall have the full power of the chair in
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0007| the absence of the chair, shall be elected by the commission for
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0008| a term of one year. Appointments to fill vacancies shall be for
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0009| the unexpired term of the member replaced. No person shall be
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0010| appointed or continue to serve if the person has ever been
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0011| convicted of or pled guilty or nolo contendere to an offense
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0012| punishable by imprisonment for more than one year.
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0013| C. Each commission member may engage in any other
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0014| business, occupation or gainful employment that is not in
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0015| conflict with the duties of the commission. One member of the
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0016| commission shall represent those who manufacture, sell or
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0017| operate video gaming devices. Notwithstanding the provisions of
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0018| Subsection A of Section 5 of the Video Gaming Act, the member so
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0019| representing may hold an interest and accept anything of value
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0020| related to bona fide employment or bona fide business ownership.
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0021| The commission shall meet at least once each month and at the
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0022| call of the chair. The commission shall also meet upon the call
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0023| of two or more members after they have given seventy-two hour
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0024| written notice to each member.
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0025| D. The chair of the commission shall receive seven
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0001| thousand dollars ($7,000) per year and the other members six
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0002| thousand dollars ($6,000). All commission members shall be
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0003| reimbursed in accordance with the provisions of the Per Diem and
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0004| Mileage Act.
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0005| E. A majority of the commission shall constitute a
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0006| quorum for purposes of conducting business, but no action or
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0007| decision of the superintendent shall be reversed or modified by
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0008| the commission unless at least three members vote to do so.
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0009| F. Initial appointments to the commission shall be
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0010| made within thirty days of the effective date of the Video
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0011| Gaming Act.
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0012| G. The commission shall:
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0013| (1) hear and decide all appeals from decisions
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0014| of the superintendent relative to the granting, suspension,
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0015| revocation, condition or renewal of all licenses;
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0016| (2) impose all fines under the Video Gaming
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0017| Act;
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0018| (3) approve or disapprove rules promulgated by
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0019| the superintendent, provided that the commission shall not
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0020| modify any rule and any rule not disapproved within sixty days
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0021| of submission to the commission shall be deemed approved;
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0022| (4) make an annual report to the governor and
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0023| the legislature on the operation of the Video Gaming Act,
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0024| including any recommendations for changes.
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0025| H. The commission shall approve, by rule, any games
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0001| to be used in a video gaming device. The commission shall
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0002| approve all games which meet the definition of video gaming
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0003| which the commission finds meet the commission's security
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0004| requirements and will further the purposes of the Video Gaming
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0005| Act. The commission may approve games which do not provide
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0006| immediate notice of outcome, but any games so approved shall be
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0007| played only on video gaming devices, shall meet the commission's
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0008| security requirements and shall be subject to the same central
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0009| site computer monitoring system as all other games. The
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0010| commission shall designate resort areas by rule.
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0011| Section 5. PROHIBITED ACTS--PENALTY.--
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0012| A. No member of the commission or employee of the
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0013| state, or any of its political subdivisions, agencies or
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0014| instrumentalities, shall, directly or indirectly,:
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0015| (1) hold a substantial interest in the
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0016| manufacture, sale, distribution or operation of video gaming
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0017| devices, equipment, services, tickets, machines or any business
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0018| or entity which enters into a location agreement;
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0019| (2) have any interest whatsoever in the
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0020| purchases or sales made by persons licensed under the Video
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0021| Gaming Act or purchase, lease, or sell video gaming equipment,
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0022| services, tickets, machines or other materials;
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0023| (3) solicit or accept any gift, gratuity,
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0024| emolument or employment, of more than de minimis value, from any
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0025| person licensed under the Video Gaming Act, or from any officer,
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0001| agent or employee of such a person; or
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0002| (4) solicit from, request from or recommend to
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0003| any person licensed under that act or any officer, agent or
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0004| employee of such a person, the appointment of any person to any
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0005| place or position.
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0006| B. No person or entity licensed under the Video
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0007| Gaming Act or any officer, agent or employee of such a person or
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0008| entity shall offer to any member or employee of the commission
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0009| or employee of the superintendent any gift, gratuity, emolument
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0010| or employment, of more than de minimis value.
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0011| C. Any person violating the provisions of this
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0012| section is guilty of a fourth degree felony and shall be
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0013| sentenced in accordance with the provisions of Section 31-18-15
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0014| NMSA 1978.
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0015| Section 6. SUPERINTENDENT--DUTIES.--The superintendent
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0016| shall:
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0017| A. promulgate rules, in accordance with the State
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0018| Rules Act and subject to the approval of the commission,
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0019| relating to:
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0020| (1) authorized premises for video gaming
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0021| devices;
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0022| (2) investigations of prospective or current
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0023| licensees;
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0024| (3) mandating that electronic fund transfers to
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0025| the state of all money due from persons licensed under the Video
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0001| Gaming Act and the necessary implementation requirements; and
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0002| (4) other matters appropriate to carrying out
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0003| the provisions of the Video Gaming Act;
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0004| B. provide staff and other support for the
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0005| commission;
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0006| C. enter into such contracts other legal agreements
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0007| as are necessary to carry out the decisions of the commission;
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0008| D. purchase or lease, in accordance with the
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0009| Procurement Code, a central site computer monitoring system for
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0010| video gaming devices and such other monitoring equipment as the
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0011| commission finds appropriate;
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0012| E. issue all licenses and other documents necessary
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0013| to carry out the purposes of the Video Gaming Act. No person
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0014| shall hold more than one level of license, nor shall a person
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0015| holding a substantial interest in a license of one class hold a
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0016| license of another level, provided, however, that the holder of
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0017| a premises license may hold an operator's license may be an
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0018| owner-operator of that premises license. A person holding a
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0019| substantial interest, prior to January 1, 1995, in a person or
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0020| entity eligible for a level one license may apply for and hold a
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0021| level three license in addition to the level one license so long
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0022| as the ownership of the person or entity does not change. The
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0023| levels of license are as follows:
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0024| (1) level one--manufacturer;
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0025| (2) level two--operator; and
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0001| (3) level three--premises;
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0002| F. annually issue a separate license for each
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0003| qualified video gaming device in operation in the state. The
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0004| license shall not be removable from the device and shall be in
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0005| the form of a numbered sticker which shall be attached to the
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0006| device and indicate that the device has been inspected, although
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0007| not necessarily in that year, and that all taxes and fees have
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0008| been paid;
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0009| G. investigate and then approve or reject a video
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0010| gaming device representative of each type or model proposed to
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0011| be used in video gaming, and license each video gaming device
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0012| prior to its installation or operation in any regulated system
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0013| of video gaming;
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0014| H. investigate and then license each premises upon
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0015| which the video gaming devices are to be played;
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0016| I. conduct spot inspections of video gaming devices
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0017| on the premises where they are being played;
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0018| J. conduct hearings upon complaints charging
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0019| violations of the Video Gaming Act or the superintendent's rules
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0020| and, subject to an appeal to the commission, suspend, revoke or
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0021| place conditions on the use of any license issued under that
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0022| act;
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0023| K. conduct any other hearings provided for in the
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0024| rules of the superintendent;
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0025| L. supervise, audit and investigate the operation of
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0001| all games and devices played under the Video Gaming Act;
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0002| M. investigate for possible approval all persons or
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0003| other entities seeking licenses and all of their financial
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0004| sources.
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0005| Section 7. ADVISORY COMMITTEE--CREATION--DUTIES.--The
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0006| superintendent shall appoint an advisory committee of seven
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0007| members who shall serve at the pleasure of the superintendent.
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0008| They shall receive no per diem or mileage reimbursement or any
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0009| other compensation or reimbursement for their expenses. No
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0010| employee of the state, its political subdivisions, agencies or
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0011| instrumentalities, shall serve on the committee. There shall be
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0012| at least one member representing each of the following areas or
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0013| industries:
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0014| A. the public at large;
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0015| B. the hotel and motel industry;
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0016| C. persons holding level two licenses, or, prior to
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0017| the issuance of such licenses, persons proposing to hold such
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0018| licenses;
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0019| D. the retail liquor industry;
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0020| E. the horse racing industry;
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0021| F. the restaurant industry; and
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0022| G. the fraternal orders.
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0023| The committee shall advise the superintendent and the
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0024| commission on the operation of the Video Gaming Act, any rules
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0025| proposed to be promulgated pursuant to that act, the practical
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0001| effect of any actions proposed to be taken under that act, any
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0002| amendments to that act that might be necessary and any other
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0003| matter the committee deems appropriate.
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0004| Section 8. LICENSES--APPLICATION--FEES.--
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0005| A. An applicant for a manufacturer's, operator's or
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0006| premises license or any renewal of a license shall file an
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0007| application with the superintendent in a form, and including all
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0008| information, required by rule of the superintendent or the Video
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0009| Gaming Act. The application shall include a sworn statement by
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0010| the principal licensee, or an individual authorized to act on
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0011| behalf of the principal licensee, that the applicant shall
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0012| comply with the Video Gaming Act and all rules promulgated
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0013| pursuant to that act.
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0014| B. The following fees shall be transmitted in
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0015| connection with the application for a license or renewal:
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0016| (1) manufacturer's license--ten thousand
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0017| dollars ($10,000);
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0018| (2) operator's license--three thousand dollars
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0019| ($3,000);
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0020| (3) premises license held by a parimutuel
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0021| horseracing facility or resort--ten thousand dollars ($10,000);
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0022| and
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0023| (4) all other premises license--five hundred
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0024| dollars ($500).
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0025| C. A fee of five hundred dollars ($500) per device
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0001| shall be transmitted with the application for a video gaming
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0002| device license but shall not be transmitted with the application
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0003| for any renewal. This fee shall be in lieu of all other taxes
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0004| and fees, including the gross receipts tax, attributable to the
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0005| device or computed based upon the proceeds from the device
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0006| except for the percentage net proceeds tax.
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0007| Section 9. APPLICATIONS--REQUIREMENTS--APPROVAL.--
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0008| A. Any person or entity whom the superintendent
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0009| determines is qualified to be licensed, having due consideration
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0010| for the proper protection of the health, safety, morals, good
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0011| order and general welfare of the residents of the state, may be
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0012| issued a license. The burden of proving all qualifications of a
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0013| licensee shall be upon the applicant.
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0014| B. No license shall be issued unless the
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0015| superintendent is satisfied that the applicant:
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0016| (1) is of good character, honesty and
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0017| integrity;
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0018| (2) does not have prior activities, including
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0019| any criminal record, reputation, habits or associations that
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0020| pose a threat to the public interest of the state or the
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0021| effective regulation and control of video gaming within the
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0022| state or create or enhance the dangers of unsuitable, unfair or
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0023| illegal practices, methods or activities in the operation of the
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0024| video gaming or in the business or financial arrangement
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0025| incident to operating of video gaming;
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0001| (3) have adequate business integrity, honesty
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0002| and competence;
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0003| (4) have proposed financing which is:
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0004| (a) adequate for the nature of the
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0005| proposed operation; and
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0006| (b) from financial sources posing no risk
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0007| to the integrity of the regulated system of video gaming;
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0008| (5) have demonstrated sufficient technological
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0009| capability to meet the superintendent's rules; and
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0010| (6) are in all other respects qualified to be
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0011| licensed consistent with the desired policy of the state.
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0012| C. Before any license is issued, every person
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0013| holding a substantial interest in the applicant shall be proven
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0014| by the applicant:
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0015| (1) to be of good character, honesty and
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0016| integrity; and
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0017| (2) to have no prior activities, including any
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0018| criminal record, reputation, habits or associations that pose a
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0019| threat to the public interest of the state or the effective
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0020| regulation and control of video gaming within the state or
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0021| create or enhance the dangers of unsuitable, unfair or illegal
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0022| practices, methods or activities in the operation of the video
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0023| gaming or in the business or financial arrangement incident to
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0024| the operation of video gaming.
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0025| D. An application for a license shall constitute a
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0001| request for the determination of the applicant's general
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0002| character, integrity and ability to participate in, engage in,
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0003| or be associated with a regulated system of video games of
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0004| chance. An applicant shall provide any release or authorization
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0005| determined by the superintendent to be appropriate for the
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0006| consideration of an application. Any written or oral statement
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0007| made in the course of an official proceeding, including any
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0008| investigation, shall be absolutely privileged and shall not
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0009| impose any civil liability.
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0010| E. Until July 1, 1997, no operator's license shall
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0011| be issued to any person who has not been, at the time of
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0012| issuance, a bona fide resident of the state for two years nor
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0013| shall an operator's license be issued to any entity in which a
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0014| person ineligible to hold an operator's license pursuant to this
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0015| subsection holds a substantial interest. An owner-operator may
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0016| be issued an operator's license and a premises license.
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0017| Section 10. LICENSES--TRANSFER--DISPLAY.--No license
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0018| issued pursuant to the Video Gaming Act shall be assignable or
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0019| transferable from person to person or device to device. Any
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0020| license so issued shall be conspicuously displayed at the
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0021| licensee's principal place of business in an area visible to the
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0022| public.
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0023| Section 11. LICENSES--INVESTIGATIONS.--
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0024| A. Any applicant for or holder of a licensed issued
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0025| under the Video Gaming Act shall produce records or evidence and
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0001| give all information requested by the superintendent or the
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0002| commission. No applicant or holder shall interfere or attempt
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0003| to interfere with any investigation by the superintendent or
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0004| commission.
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0005| B. Every manufacturer's licensee shall immediately
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0006| make available for inspection by any agent of the state all
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0007| papers, books and records produced by any video gaming equipment
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0008| business and all portions of the establishment where equipment
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0009| is manufactured, sold or distributed. Any agent of the state
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0010| shall be given immediate access to any portion of the
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0011| establishment of any licensed manufacturer for the purpose of
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0012| inspecting or examining any records or documents required to be
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0013| kept by the licensee under the Video Gaming Act or any
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0014| superintendent's rule or examining any equipment related to the
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0015| conduct of any Video Gaming Activity.
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0016| C. Every operator and every person owning or
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0017| controlling a premises shall immediately make available for
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0018| inspection by any agent of the state all papers, books and
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0019| records produced by any Video Gaming Activity or business and
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0020| make available all portions of the establishment where
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0021| electronic instant video gaming-related equipment or devices may
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0022| be located in order to permit the agent to determine that all
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0023| devices comply with minimum requirements and do not vary in any
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0024| significant manner from the representative device of the same
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0025| type approved by the superintendent.
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0001| D. The state may, after written or oral notice,
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0002| remove a video gaming device or any portion of the device from
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0003| the establishment where it is being operated for the purpose of
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0004| examination and inspection.
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0005| Section 12. SUSPENSION--REVOCATION--SEIZURE.--
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0006| A. The superintendent may revoke a manufacturer's,
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0007| operator's or premises license upon a finding that the licensee
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0008| or any person holding a substantial interest in the licensee
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0009| has:
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0010| (1) provided false or misleading information to
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0011| the superintendent or commission;
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0012| (2) been convicted of any felony or gambling-related offense;
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0013| (3) endangered the security of a video gaming
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0014| device;
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0015| (4) become a person whose character is no
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0016| longer consistent with the protection of the public interest and
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0017| trust in video gaming; or
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0018| (5) become delinquent in remitting money owed
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0019| to any person or to the state.
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0020| B. The superintendent may suspend or revoke a
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0021| manufacturer's, operator's or premises license upon a finding
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0022| that the licensee or any person holding a substantial interest
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0023| in the licensee has violated the Video Gaming Act or
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0024| superintendent's rule. If the superintendent suspends or
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0025| revokes or refuses to grant a license or seizes the video gaming
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0001| devices of a licensee, any interested party may, upon written
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0002| notice to the commission, in accordance with the rules of the
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0003| superintendent, request a hearing. The chair of the commission
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0004| may stay the revocation of suspension of a license pending the
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0005| outcome of the hearing.
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0006| C. Any person aggrieved by a decision of the
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0007| superintendent may appeal the decision to the commission.
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0008| D. The superintendent may seize or seal any or all
|
0009| video gaming devices changed or modified in any manner not
|
0010| approved by the superintendent.
|
0011| Section 13. DEVICE MANUFACTURE--RESPONSIBILITY.--
|
0012| A. The responsibility for final assembly and initial
|
0013| operation of a video gaming device, in the manner approved by
|
0014| the superintendent, shall be with the manufacturer. Changes in
|
0015| the manner of final assembly or initial operation of a device
|
0016| after a representative device has been submitted to the
|
0017| superintendent for inspection and approval shall void the
|
0018| approval unless prior to the change the manufacturer obtains
|
0019| approval from the superintendent in accordance with the
|
0020| provisions of this section. A voided approval shall be deemed
|
0021| to revoke all licenses of the affected devices.
|
0022| B. Any request for changes to be made in a video
|
0023| gaming device shall be submitted in writing to the
|
0024| superintendent for prior approval. When appropriate, the
|
0025| request for a change shall be accompanied by a print, schematic,
|
0001| block diagram or machine analysis which contains details of the
|
0002| proposed change. Further, a reason for the change shall be set
|
0003| forth. In emergency cases, when a change is found by the
|
0004| superintendent to be necessary to prevent cheating or
|
0005| malfunction, a verbal request may be approved. The verbal
|
0006| approval shall be followed within fifteen days by a written
|
0007| request noting the verbal approval and containing the additional
|
0008| material required by this subsection.
|
0009| Section 14. VIDEO GAMING DEVICE LIMITATIONS.--
|
0010| A. No video gaming device shall allow more than two
|
0011| dollars ($2.00) to be played on a single game or award, in any
|
0012| one game, games or credits worth in excess of eight hundred
|
0013| dollars ($800); provided that, after December 31, 1997, the
|
0014| commission may set a limit different from eight hundred dollars
|
0015| ($800) by regulation.
|
0016| B. No video gaming device shall directly dispense
|
0017| coins or currency.
|
0018| C. No person shall allow access to a video gaming
|
0019| device by a person under the age of twenty-one years, nor shall
|
0020| any person employ a person under the age of twenty-one years if
|
0021| any portion of the job duties are to be performed in any area
|
0022| licensed for the location of video gaming devices.
|
0023| D. No video gaming device shall be available for
|
0024| play by the public unless it is included in a valid location
|
0025| agreement, it is located on premises licensed for the
|
0001| consumption of spirituous liquors, at least thirty-five percent
|
0002| of the receipts attributable to spirituous liquors, wine and
|
0003| fermented beverages are from sales for on premises consumption
|
0004| and:
|
0005| (1) located on the premises owned, leased or
|
0006| maintained by a person holding an operator's license, but not
|
0007| for play by the public; or
|
0008| (2) the premises are owned, leased or
|
0009| maintained by the person or entity controlling the location at
|
0010| which the device is located; provided that, a financial
|
0011| institution may own or hold a substantial interest in a device
|
0012| for the period necessary for it to satisfy any valid security
|
0013| interest, not to exceed six months.
|
0014| Section 15. VIDEO GAMING DEVICE REQUIREMENTS.--
|
0015| A. An video gaming device may deliver or entitle the
|
0016| person playing the device to receive a printed ticket,
|
0017| exchangeable for cash, which specifies the time, date, amount of
|
0018| winnings and the location of the device. A video gaming device
|
0019| shall record all use of the device and all amounts deposited in
|
0020| it and report the use and amounts deposited to a central site
|
0021| computer monitor. A video gaming device shall, at a minimum:
|
0022| (1) pay out a mathematically demonstrable
|
0023| percentage of all amounts played, which shall be not less than
|
0024| eighty percent and not more than ninety-five percent. Video
|
0025| games which may be affected by skill shall be evaluated against
|
0001| this criterion using a method of play which will provide the
|
0002| greatest return to the player over a period of continuous play;
|
0003| (2) use a random selection process to determine
|
0004| the outcome of each play of a game which meets ninety-five
|
0005| percent confidence limits using a standard chi squared test for
|
0006| randomness and which is impervious to outside influences;
|
0007| (3) display an accurate representation of the
|
0008| game outcome, and shall not alter any function of the device
|
0009| based on internal computation of payout percentage;
|
0010| (4) have the capacity to display outcome
|
0011| intermediate play steps, credits available, credits played,
|
0012| credits paid and credits cashed out for the most recent game
|
0013| played and one game prior;
|
0014| (5) be equipped with electronic meters and
|
0015| electromechanical meters capable of displaying monetary
|
0016| transactions and be capable of printing a record of those
|
0017| transactions. The device memory shall be in units equal to the
|
0018| denomination of the device, be at least six digits in length and
|
0019| retain, at least, the following transaction records for a period
|
0020| of at least one hundred eighty days:
|
0021| (a) electronic meters: money inserted,
|
0022| credits wagered, credits won, credits paid out, times logic area
|
0023| accessed, times ticket or other pay-out device accessed, credits
|
0024| or money won, number of credits representing money inserted by a
|
0025| player and credit for games won but not collected; and
|
0001| (b) electromechanical meters: money
|
0002| inserted, total credits of ticket vouchers printed, credits
|
0003| played and credits won;
|
0004| (6) be designed so that replacement of parts of
|
0005| modules required for normal maintenance does not necessitate
|
0006| replacement of the meters.
|
0007| B. Every video gaming device shall:
|
0008| (1) clearly represent its rules of play to the
|
0009| playing public; and
|
0010| (2) operate and play in accordance with the
|
0011| representation made to the superintendent and the public.
|
0012| C. Pay off schedules applicable to each video gaming
|
0013| device shall be displayed on the device or in a conspicuous
|
0014| place immediately adjacent thereto or be accessible from the
|
0015| device. Pay off schedules shall accurately state the range of
|
0016| actual pay offs or awards and shall not be worded in such manner
|
0017| as to mislead or deceive the public. The posting of any
|
0018| misleading or deceptive material on any pay off schedule or
|
0019| failure to make payment in accordance with a posted pay off
|
0020| schedules shall constitute a violation of the Video Gaming Act.
|
0021| D. The superintendent may inspect any video gaming
|
0022| device which is offered for sale or use in this state by a
|
0023| manufacturer.
|
0024| Section 16. LOCATION AGREEMENTS--FILING.--All location
|
0025| agreements shall be filed with the superintendent of the
|
0001| division before becoming effective, and no location agreement
|
0002| shall be effective without being filed with the superintendent.
|
0003| Any location agreement for a location which is not a resort or a
|
0004| parimutuel horseracing facility and which includes a video
|
0005| gaming device which is owned by a person or entity which does
|
0006| not hold an operator's license shall include a maintenance
|
0007| agreement for that machine with a person or entity holding an
|
0008| operator's license. A person holding both a premises and an
|
0009| operator's license shall hold only one premises license. This
|
0010| section shall not affect rights and obligations between private
|
0011| parties.
|
0012| Section 17. LOCATION AGREEMENTS--PROCEEDS
|
0013| DISTRIBUTION.--No location agreement shall require an operator
|
0014| to remit to another party more than fifty percent of the net
|
0015| proceeds, after deduction of any taxes due.
|
0016| Section 18. VIDEO GAMING DEVICES--LIMITATIONS.--Video
|
0017| gaming devices shall not be made available for play except in
|
0018| accordance with this section. Devices shall be placed only in
|
0019| locations which are age controlled. Devices can only be placed
|
0020| in the following places in the following numbers:
|
0021| A. premises licensed for the on-premises consumption
|
0022| of spirituous liquors--five devices;
|
0023| C. premises that are resorts--fifty devices;
|
0024| D. premises that are licensed as clubs under the
|
0025| Liquor Control Act as of January 1, 1995--fifteen devices;
|
0001| E. premises that are parimutuel horseracing
|
0002| facilities--one hundred devices, if fifty percent of the money
|
0003| retained by the licensee is used exclusively for purses,
|
0004| provided that the money shall not be substituted for money
|
0005| otherwise dedicated to purses or awards, five devices,
|
0006| otherwise. Notwithstanding the otherwise applicable number of
|
0007| devices permissible, no resort area shall have more than one
|
0008| hundred and fifty devices located within it; provided that, for
|
0009| purposes of calculating this limitation, premises that are
|
0010| licensed for consumption of spirituous liquors shall be deemed
|
0011| to have five devices.
|
0012| Section 19. PERCENTAGE NET PROCEEDS TAX.--For the
|
0013| privilege of locating video gaming devices for play by the
|
0014| public, there is imposed on every operator a "percentage net
|
0015| proceeds tax." The tax shall be equal to twenty percent of the
|
0016| net proceeds attributable to devices owned or maintained by the
|
0017| operator. The taxable event shall be the playing of the device
|
0018| by the public. The tax shall be due on the fifth of the month
|
0019| following the taxable event. The taxation and revenue
|
0020| department is charged with administration of the tax. The rate
|
0021| of the percentage net proceeds tax shall not be increased in any
|
0022| year in which the gross receipts tax is not increased and in
|
0023| such a year may be increased only by a proportion which bears
|
0024| the same ratio to the prior net proceeds tax as the increase in
|
0025| the gross receipts tax bears to prior gross receipts tax.
|
0001| Section 20. ELECTIONS FOR LOCAL OPTION.--Any municipality
|
0002| containing over five thousand population according to the latest
|
0003| United States census, whether the county in which that
|
0004| municipality is situated has adopted the local option provisions
|
0005| of the Video Gaming Act or not, or any county in the state may
|
0006| adopt local option in the county or municipality upon the
|
0007| following terms and conditions:
|
0008| A. at any time after the effective date of the Video
|
0009| Gaming Act, the registered qualified electors of any proposed
|
0010| local option district may petition the governing body by filing
|
0011| one or more petitions in the appropriate office to hold an
|
0012| election for the purpose of determining whether the county or
|
0013| municipality shall adopt the local option provisions of the
|
0014| Video Gaming Act. If the aggregate of the signatures of such
|
0015| elector on all the petitions equals or exceeds five percent of
|
0016| the number of registered voters of the district, the governing
|
0017| body shall call an election within seventy-five days of the
|
0018| verification of the petition. The date of the filing of the
|
0019| petition shall be the date of the filing of the last petition
|
0020| which brings the number of signatures up to the required five
|
0021| percent; provided, however, that the governing body shall refuse
|
0022| to recognize the petition if more than three months have elapsed
|
0023| between the date of the first signature and the filing of the
|
0024| last petition necessary to bring the number of signatures on the
|
0025| petition up to five percent;
|
0001| B. the election shall be called, conducted, counted
|
0002| and canvassed substantially in the manner provided by law for
|
0003| general elections within the county or special municipal
|
0004| elections within the municipality, except as otherwise provided
|
0005| in this section;
|
0006| C. the votes at the election shall be counted,
|
0007| returned and canvassed as provided for in the case of general
|
0008| elections within the county or special municipal elections
|
0009| within the municipality;
|
0010| D. except as otherwise provided in this section,
|
0011| contests, recounts and rechecks shall be permitted as provided
|
0012| for in the case of candidates for county office in general
|
0013| elections or as provided for in the case of special municipal
|
0014| elections within the municipality. Applications for contests,
|
0015| recounts or rechecks may be filed by any person who voted in the
|
0016| election, and service shall be made upon the county clerk or
|
0017| municipal clerk as the case may be;
|
0018| E. if a majority of all the votes cast at the
|
0019| election are cast in favor of allowing the location of video
|
0020| gaming devices at resorts in the county or municipality, the
|
0021| chairman of the governing body shall declare by order entered
|
0022| upon the records of the county or municipality that the county
|
0023| or municipality has adopted the local option provisions of the
|
0024| Video Gaming Act and shall notify the commission of such
|
0025| results;
|
0001| F. no election held pursuant to this section shall
|
0002| be held within forty-two days of any primary, general, municipal
|
0003| or school district election. If, within sixty days from the
|
0004| verification of any petition as provided in Subsection A of this
|
0005| section, a primary, general, municipal or school election is
|
0006| held, the governing body may call an election for a day not less
|
0007| than sixty days after the primary, general, municipal or school
|
0008| election;
|
0009| G. if an election is held under the provisions of
|
0010| the Video Gaming Act in any county which contains within its
|
0011| limits any municipality of more than five thousand persons
|
0012| according to the last United States census, it is not necessary
|
0013| for the registered qualified electors in the municipality to
|
0014| file a separate petition asking for a separate or different vote
|
0015| on the question of adopting the local option provisions of the
|
0016| Video Gaming Act by the municipality. The election in the county
|
0017| shall be conducted so as to separate the votes in the
|
0018| municipality from those in the remaining parts of the county. If
|
0019| a majority of the voters in the county, including the voters in
|
0020| the municipality, vote against the location of video gaming
|
0021| devices at resorts in the county, the county shall not adopt the
|
0022| local option provisions of the Video Gaming Act; but if a
|
0023| majority of the votes in the municipality are in favor of
|
0024| locating video gaming devices at resorts, the municipality shall
|
0025| have adopted the local option provisions of the Video Gaming
|
0001| Act. Nothing contained in this subsection shall prevent any
|
0002| municipality from having a separate election under the terms of
|
0003| this section.
|
0004| Section 21. RESUBMISSION OF LOCAL OPTION QUESTION.--In any
|
0005| local option district in which the local option provisions of
|
0006| the Video Gaming Act have been rejected by the voters, it shall
|
0007| be permissible after the expiration of two years from the date
|
0008| of the election at which the local option provisions of the
|
0009| Video Gaming Act were rejected, to have another local option
|
0010| election in the district.
|
0011| Section 22. FUND CREATED.--There is created in the state
|
0012| treasury the "video gaming fund." All money in the fund, and
|
0013| all interest attributable to it are appropriated to the
|
0014| superintendent for the purpose of carrying out the provisions of
|
0015| the Video Gaming Act. All fees paid for licenses under the
|
0016| Video Gaming Act shall be credited to the fund.
|
0017| Section 23. APPROPRIATION.--There is appropriated from the
|
0018| general fund to the video gaming fund the sum of one million
|
0019| five hundred thousand dollars ($1,500,000) for the purpose of
|
0020| carrying out the provisions of this act. This appropriation
|
0021| shall not revert at the end of any fiscal year.
|
0022| Section 24. SEVERABILITY.--If any part or application of
|
0023| this act is held invalid, the remainder or its application to
|
0024| other situations or persons shall not be affected.
|
0025| Section 25. EFFECTIVE DATE.--The effective date of the
|
0001| provisions of the Video Gaming Act is July 1, 1996.
|
0002| - -
|
0003|
|
0004|
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| State of New Mexico
|
0011| House of Representatives
|
0012|
|
0013| FORTY-SECOND LEGISLATURE
|
0014| SECOND SESSION, 1996
|
0015|
|
0016| January 29, l996
|
0017|
|
0018|
|
0019| Mr. Speaker:
|
0020|
|
0021| Your RULES AND ORDER OF BUSINESS COMMITTEE, to
|
0022| whom has been referred
|
0023|
|
0024| HOUSE BILL 346
|
0025|
|
0001| has had it under consideration and finds same to be
|
0002| GERMANE in accordance with constitutional provisions.
|
0003|
|
0004| Respectfully submitted,
|
0005|
|
0006|
|
0007|
|
0008|
|
0009| Barbara A. Perea Casey,
|
0010| Chairperson
|
0011|
|
0012|
|
0013| Adopted Not Adopted
|
0014|
|
0015| (Chief Clerk) (Chief Clerk)
|
0016|
|
0017| Date
|
0018|
|
0019| The roll call vote was 9 For 0 Against
|
0020| Yes: 9
|
0021| Excused: Lujan, Nicely, Olguin, Pederson, Wallach,
|
0022| S. Williams
|
0023| Absent: None
|
0024|
|
0025| H0346RC1 State of New Mexico
|
0001| House of Representatives
|
0002|
|
0003| FORTY-SECOND LEGISLATURE
|
0004| SECOND SESSION, 1996
|
0005|
|
0006|
|
0007| February 11, 1996
|
0008|
|
0009|
|
0010| Mr. Speaker:
|
0011|
|
0012| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
|
0013| been referred
|
0014|
|
0015| HOUSE BILL 346
|
0016|
|
0017| has had it under consideration and reports same with
|
0018| recommendation that it DO NOT PASS, but that
|
0019|
|
0020| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE
|
0021| FOR HOUSE BILL 346
|
0022|
|
0023| DO PASS, and thence referred to the APPROPRIATIONS AND
|
0024| FINANCE COMMITTEE.
|
0025|
|
0001| Respectfully submitted,
|
0002|
|
0003|
|
0004|
|
0005|
|
0006|
|
0007| Fred Luna, Chairman
|
0008|
|
0009|
|
0010| Adopted Not Adopted
|
0011|
|
0012| (Chief Clerk) (Chief Clerk)
|
0013|
|
0014| Date
|
0015|
|
0016| The roll call vote was 7 For 3 Against
|
0017| Yes: 7
|
0018| No: Alwin, Hobbs, Macko
|
0019| Excused: None
|
0020| Absent: Gubbels, Varela
|
0021|
|
0022| H0346BI1 HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR
|
0023| HOUSE BILL 346
|
0024| 42nd legislature - STATE OF NEW MEXICO - second session, 1996
|
0025|
|
0001|
|
0002|
|
0003|
|
0004|
|
0005|
|
0006|
|
0007| AN ACT
|
0008| RELATING TO GAMES OF CHANCE; ENACTING THE VIDEO GAMING ACT;
|
0009| ESTABLISHING PROCEDURES; PRESCRIBING PENALTIES; IMPOSING TAXES
|
0010| AND FEES; PERMITTING VERTICAL INTEGRATION OF CERTAIN LICENSEES;
|
0011| PROVIDING FOR A CERTAIN LOCAL OPTION; MAKING APPROPRIATIONS.
|
0012|
|
0013| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0014| Section 1. SHORT TITLE.--Sections 1 through 22 of this act
|
0015| may be cited as the "Video Gaming Act."
|
0016| Section 2. PURPOSE.--The purpose of the Video Gaming Act
|
0017| is to combat the growth of illegal gaming through the
|
0018| establishment of a regulated system of video games of chance.
|
0019| The legislature finds that:
|
0020| A. the technology now exists to provide a secure
|
0021| system of regulated gaming;
|
0022| B. this system will:
|
0023| (1) offer fair play and return to consumers who
|
0024| use the system;
|
0025| (2) provide needed revenue to the state and its
|
0001| political subdivisions;
|
0002| (3) provide additional entertainment to attract
|
0003| tourists and increase their length of stay; and
|
0004| (4) provide additional jobs for the citizens of
|
0005| New Mexico.
|
0006| Section 3. DEFINITIONS.--As used in the Video Gaming Act:
|
0007| A. "age controlled environment" means a location, or
|
0008| portion of a location, licensed for the on premises consumption
|
0009| of spirituous liquors and the interior of which is not
|
0010| observable by any individual under the age of twenty-one years.
|
0011| No individual under the age of twenty-one years may be employed
|
0012| to work in the age controlled environment;
|
0013| B. "application" means the forms and schedules
|
0014| prescribed by the commission upon which an applicant applies for
|
0015| a license or license renewal and includes, but is not limited
|
0016| to, information, disclosure statements and financial statements
|
0017| submitted;
|
0018| C. "commission" means the video gaming commission;
|
0019| D. "credit" means the basic unit of a win on a video
|
0020| gaming device which entitles the player to one additional free
|
0021| game at the lowest monetary rate at which one game may be
|
0022| purchased on that device;
|
0023| E. "financial source" means any person, partnership,
|
0024| trust or corporation that provides credit for capital or
|
0025| operations where the terms of repayment extend for more than
|
0001| ninety days;
|
0002| F. "fraternal order" or "veterans' club" means an
|
0003| organization described in Section 501(c)(8), (10), (19) or (23) of
|
0004| the federal Internal Revenue Code of 1986 and exempt from federal
|
0005| income taxation pursuant to Section 501(a) of that code;
|
0006| G. "gross proceeds" means the total value of money
|
0007| placed in a video gaming device by consumers;
|
0008| H. "holding a substantial interest" means:
|
0009| (1) ownership, operation, management or
|
0010| conducting the business of a proprietorship, directly or
|
0011| indirectly, by an individual or spouse of the individual;
|
0012| (2) sharing or being entitled to share in any
|
0013| profits, actual or potential, of a partnership or trust by an
|
0014| individual or spouse of the individual;
|
0015| (3) being an officer, director, stockholder or
|
0016| spouse of a stockholder in a corporation which is not publicly
|
0017| traded;
|
0018| (4) being the holder, legally or beneficially, of
|
0019| five percent or more of any class of stock or other evidence of
|
0020| ownership of a publicly traded corporation or other public traded
|
0021| entity or being the spouse of such a holder;
|
0022| (5) furnishing five percent or more of the
|
0023| capital of any entity.
|
0024| A person holding a substantial interest in any entity shall
|
0025| be deemed to hold a substantial interest in every entity in which
|
0001| the first entity holds a substantial interest;
|
0002| I. "location agreement" means a written agreement
|
0003| between an operator and the person or entity owning or controlling
|
0004| a licensed premises for the placement of video gaming devices
|
0005| within the location for use by the public. If the person or entity
|
0006| owns the devices, the person or entity's sworn statement to that
|
0007| effect shall be deemed a location agreement;
|
0008| J. "manufacturer" means a person or entity which
|
0009| assembles, from subparts or raw materials, a complete video gaming
|
0010| device;
|
0011| K. "manufacturer's license" means a license issued by
|
0012| the superintendent which authorizes the manufacture and transfer or
|
0013| sale of video gaming devices to an operator;
|
0014| L. "net proceeds" means the gross proceeds minus all
|
0015| prizes paid out to players of a video gaming device;
|
0016| M. "operator" means any person or entity who owns,
|
0017| services or maintains video gaming devices, but does not include
|
0018| any person owning or controlling, or holding a substantial interest
|
0019| in an entity which owns or controls, a licensed premises for which
|
0020| there is a location agreement;
|
0021| N. "operator's license" means a license issued by the
|
0022| superintendent which authorizes a person to engage in the business
|
0023| of an operator;
|
0024| O. "owner-operator" means any person or entity who
|
0025| owns, services or maintains video gaming devices, owns or leases
|
0001| one premises and is the holder of the premises license where the
|
0002| video gaming devices are located;
|
0003| P. "parimutuel horseracing facility" means a premises
|
0004| licensed to hold public horseraces or horse meetings for profit or
|
0005| gain;
|
0006| Q. "play" means to activate a video gaming device and
|
0007| to manipulate or work it for the purpose of winning as indicated by
|
0008| the pay-out schedule or accumulating credits to be replayed or to
|
0009| be cashed out of the machine in the form of a printed ticket to be
|
0010| exchanged for cash;
|
0011| R. "premises license" means a license issued by the
|
0012| superintendent to a person or entity owning or controlling a
|
0013| location and authorizing the placement of video gaming devices at
|
0014| that location for play by the public;
|
0015| S. "spirituous liquors" means alcoholic beverages except
|
0016| fermented beverages such as wine, beer and ale;
|
0017| T. "superintendent" means the superintendent of
|
0018| regulation and licensing; and
|
0019| U. "video gaming device" means an electronic machine
|
0020| which utilizes a cathode ray tube or video display screen and
|
0021| microprocessors and which is available for consumer play upon
|
0022| payment of specified consideration, with winners immediately
|
0023| determined by the application of the element of chance, whether or
|
0024| not accompanied by an element of skill, and with a reward of
|
0025| possible games or credits displayed on the device to the winners.
|
0001| Section 4. COMMISSION ESTABLISHED--MEMBERSHIP--REQUIREMENTS.--
|
0002| A. There is created the "video gaming commission" which
|
0003| shall consist of five members appointed by the governor with the
|
0004| advice and consent of the senate. Appointees not confirmed by the
|
0005| senate shall continue to serve until the senate has failed to
|
0006| confirm. Prior to appointing an individual, the governor shall
|
0007| request the superintendent to conduct an inquiry into the
|
0008| individual's background, with particular regard to financial
|
0009| stability, integrity, responsibility and reputation for good
|
0010| character.
|
0011| B. Commission members serve three-year terms, staggered
|
0012| by lot. One of the initial appointees shall serve until December
|
0013| 31, 1997, two shall serve until December 31, 1998, and the
|
0014| remaining two until December 31, 1999. Commission member shall be
|
0015| eligible for reappointment only once. The chair of the commission
|
0016| shall be appointed by the governor and shall serve as chair at the
|
0017| pleasure of the governor. The vice-chair of the commission, who
|
0018| shall have the full power of the chair in the absence of the chair,
|
0019| shall be elected by the commission for a term of one year.
|
0020| Appointments to fill vacancies shall be for the unexpired term of
|
0021| the member replaced. No person shall be appointed or continue to
|
0022| serve if the person has ever been convicted of or pled guilty or
|
0023| nolo contendere to an offense punishable by imprisonment for more
|
0024| than one year.
|
0025| C. Each commission member may engage in any other
|
0001| business, occupation or gainful employment that is not in conflict
|
0002| with the duties of the commission. One member of the commission
|
0003| shall represent those who manufacture, sell or operate video gaming
|
0004| devices. Notwithstanding the provisions of Subsection A of Section
|
0005| 5 of the Video Gaming Act, the member so representing may hold an
|
0006| interest and accept anything of value related to bona fide
|
0007| employment or bona fide business ownership. The commission shall
|
0008| meet at least once each month and at the call of the chair. The
|
0009| commission shall also meet upon the call of two or more members
|
0010| after they have given seventy-two hour written notice to each
|
0011| member.
|
0012| D. The chair of the commission shall receive seven
|
0013| thousand dollars ($7,000) per year and the other members six
|
0014| thousand dollars ($6,000). All commission members shall be
|
0015| reimbursed in accordance with the provisions of the Per Diem and
|
0016| Mileage Act.
|
0017| E. A majority of the commission shall constitute a
|
0018| quorum for purposes of conducting business, but no action or
|
0019| decision of the superintendent shall be reversed or modified by the
|
0020| commission unless at least three members vote to do so.
|
0021| F. Initial appointments to the commission shall be made
|
0022| within thirty days of the effective date of the Video Gaming Act.
|
0023| G. The commission shall:
|
0024| (1) hear and decide all appeals from decisions of
|
0025| the superintendent relative to the granting, suspension,
|
0001| revocation, condition or renewal of all licenses;
|
0002| (2) impose all fines under the Video Gaming Act;
|
0003| (3) approve or disapprove rules promulgated by
|
0004| the superintendent, provided that the commission shall not modify
|
0005| any rule and any rule not disapproved within sixty days of
|
0006| submission to the commission shall be deemed approved;
|
0007| (4) make an annual report to the governor and the
|
0008| legislature on the operation of the Video Gaming Act, including any
|
0009| recommendations for changes.
|
0010| H. The commission shall approve, by rule, any games to
|
0011| be used in a video gaming device. The commission shall approve all
|
0012| games which meet the definition of video gaming which the
|
0013| commission finds meet the commission's security requirements and
|
0014| will further the purposes of the Video Gaming Act. The commission
|
0015| may approve games which do not provide immediate notice of outcome,
|
0016| but any games so approved shall be played only on video gaming
|
0017| devices, shall meet the commission's security requirements and
|
0018| shall be subject to the same central site computer monitoring
|
0019| system as all other games. The commission shall designate resort
|
0020| areas by rule.
|
0021| Section 5. PROHIBITED ACTS--PENALTY.--
|
0022| A. No member of the commission or employee of the
|
0023| state, or any of its political subdivisions, agencies or
|
0024| instrumentalities, shall, directly or indirectly,:
|
0025| (1) hold a substantial interest in the
|
0001| manufacture, sale, distribution or operation of video gaming
|
0002| devices, equipment, services, tickets, machines or any business or
|
0003| entity which enters into a location agreement;
|
0004| (2) have any interest whatsoever in the purchases
|
0005| or sales made by persons licensed under the Video Gaming Act or
|
0006| purchase, lease, or sell video gaming equipment, services, tickets,
|
0007| machines or other materials;
|
0008| (3) solicit or accept any gift, gratuity,
|
0009| emolument or employment, of more than de minimis value, from any
|
0010| person licensed under the Video Gaming Act, or from any officer,
|
0011| agent or employee of such a person; or
|
0012| (4) solicit from, request from or recommend to
|
0013| any person licensed under that act or any officer, agent or
|
0014| employee of such a person, the appointment of any person to any
|
0015| place or position.
|
0016| B. No person or entity licensed under the Video Gaming
|
0017| Act or any officer, agent or employee of such a person or entity
|
0018| shall offer to any member or employee of the commission or employee
|
0019| of the superintendent any gift, gratuity, emolument or employment,
|
0020| of more than de minimis value.
|
0021| C. Any person violating the provisions of this section
|
0022| is guilty of a fourth degree felony and shall be sentenced in
|
0023| accordance with the provisions of Section 31-18-15 NMSA 1978.
|
0024| Section 6. SUPERINTENDENT--DUTIES.--The superintendent
|
0025| shall:
|
0001| A. promulgate rules, in accordance with the State Rules
|
0002| Act and subject to the approval of the commission, relating to:
|
0003| (1) authorized premises for video gaming devices;
|
0004| (2) investigations of prospective or current
|
0005| licensees;
|
0006| (3) mandating that electronic fund transfers to
|
0007| the state of all money due from persons licensed under the Video
|
0008| Gaming Act and the necessary implementation requirements; and
|
0009| (4) other matters appropriate to carrying out the
|
0010| provisions of the Video Gaming Act;
|
0011| B. provide staff and other support for the commission;
|
0012| C. enter into such contracts other legal agreements as
|
0013| are necessary to carry out the decisions of the commission;
|
0014| D. purchase or lease, in accordance with the
|
0015| Procurement Code, a central site computer monitoring system for
|
0016| video gaming devices and such other monitoring equipment as the
|
0017| commission finds appropriate;
|
0018| E. issue all licenses and other documents necessary to
|
0019| carry out the purposes of the Video Gaming Act. No person shall
|
0020| hold more than one level of license, nor shall a person holding a
|
0021| substantial interest in a license of one class hold a license of
|
0022| another level, provided, however, that the holder of a premises
|
0023| license may hold an operator's license may be an owner-operator of
|
0024| that premises license. A person holding a substantial interest,
|
0025| prior to January 1, 1995, in a person or entity eligible for a
|
0001| level one license may apply for and hold a level three license in
|
0002| addition to the level one license so long as the ownership of the
|
0003| person or entity does not change. The levels of license are as
|
0004| follows:
|
0005| (1) level one--manufacturer;
|
0006| (2) level two--operator; and
|
0007| (3) level three--premises;
|
0008| F. annually issue a separate license for each qualified
|
0009| video gaming device in operation in the state. The license shall
|
0010| not be removable from the device and shall be in the form of a
|
0011| numbered sticker which shall be attached to the device and indicate
|
0012| that the device has been inspected, although not necessarily in
|
0013| that year, and that all taxes and fees have been paid;
|
0014| G. investigate and then approve or reject a video
|
0015| gaming device representative of each type or model proposed to be
|
0016| used in video gaming, and license each video gaming device prior to
|
0017| its installation or operation in any regulated system of video
|
0018| gaming;
|
0019| H. investigate and then license each premises upon
|
0020| which the video gaming devices are to be played;
|
0021| I. conduct spot inspections of video gaming devices on
|
0022| the premises where they are being played;
|
0023| J. conduct hearings upon complaints charging violations
|
0024| of the Video Gaming Act or the superintendent's rules and, subject
|
0025| to an appeal to the commission, suspend, revoke or place conditions
|
0001| on the use of any license issued under that act;
|
0002| K. conduct any other hearings provided for in the rules
|
0003| of the superintendent;
|
0004| L. supervise, audit and investigate the operation of
|
0005| all games and devices played under the Video Gaming Act;
|
0006| M. investigate for possible approval all persons or
|
0007| other entities seeking licenses and all of their financial sources.
|
0008| Section 7. ADVISORY COMMITTEE--CREATION--DUTIES.--The
|
0009| superintendent shall appoint an advisory committee of seven members
|
0010| who shall serve at the pleasure of the superintendent. They shall
|
0011| receive no per diem or mileage reimbursement or any other
|
0012| compensation or reimbursement for their expenses. No employee of
|
0013| the state, its political subdivisions, agencies or
|
0014| instrumentalities, shall serve on the committee. There shall be at
|
0015| least one member representing each of the following areas or
|
0016| industries:
|
0017| A. the public at large;
|
0018| B. persons holding level two licenses, or, prior to the
|
0019| issuance of such licenses, persons proposing to hold such licenses;
|
0020| C. the horse racing industry; and
|
0021| D. the fraternal orders or veterans' clubs.
|
0022| The committee shall advise the superintendent and the
|
0023| commission on the operation of the Video Gaming Act, any rules
|
0024| proposed to be promulgated pursuant to that act, the practical
|
0025| effect of any actions proposed to be taken under that act, any
|
0001| amendments to that act that might be necessary and any other matter
|
0002| the committee deems appropriate.
|
0003| Section 8. LICENSES--APPLICATION--FEES.--
|
0004| A. An applicant for a manufacturer's, operator's or
|
0005| premises license or any renewal of a license shall file an
|
0006| application with the superintendent in a form, and including all
|
0007| information, required by rule of the superintendent or the Video
|
0008| Gaming Act. The application shall include a sworn statement by the
|
0009| principal licensee, or an individual authorized to act on behalf of
|
0010| the principal licensee, that the applicant shall comply with the
|
0011| Video Gaming Act and all rules promulgated pursuant to that act.
|
0012| B. The following fees shall be transmitted in
|
0013| connection with the application for a license or renewal:
|
0014| (1) manufacturer's license--ten thousand dollars
|
0015| ($10,000);
|
0016| (2) operator's license--three thousand dollars
|
0017| ($3,000);
|
0018| (3) premises license held by a parimutuel
|
0019| horseracing facility--ten thousand dollars ($10,000); and
|
0020| (4) premises license held by a fraternal order or
|
0021| veterans' club--five hundred dollars ($500).
|
0022| C. A fee of five hundred dollars ($500) per device
|
0023| shall be transmitted with the application for a video gaming device
|
0024| license but shall not be transmitted with the application for any
|
0025| renewal. This fee shall be in lieu of all other taxes and fees,
|
0001| including the gross receipts tax, attributable to the device or
|
0002| computed based upon the proceeds from the device except for the
|
0003| percentage net proceeds tax.
|
0004| Section 9. APPLICATIONS--REQUIREMENTS--APPROVAL.--
|
0005| A. Any person or entity whom the superintendent
|
0006| determines is qualified to be licensed, having due consideration
|
0007| for the proper protection of the health, safety, morals, good order
|
0008| and general welfare of the residents of the state, may be issued a
|
0009| license. The burden of proving all qualifications of a licensee
|
0010| shall be upon the applicant.
|
0011| B. No license shall be issued unless the superintendent
|
0012| is satisfied that the applicant:
|
0013| (1) is of good character, honesty and integrity;
|
0014| (2) does not have prior activities, including any
|
0015| criminal record, reputation, habits or associations that pose a
|
0016| threat to the public interest of the state or the effective
|
0017| regulation and control of video gaming within the state or create
|
0018| or enhance the dangers of unsuitable, unfair or illegal practices,
|
0019| methods or activities in the operation of the video gaming or in
|
0020| the business or financial arrangement incident to operating of
|
0021| video gaming;
|
0022| (3) have adequate business integrity, honesty and
|
0023| competence;
|
0024| (4) have proposed financing which is:
|
0025| (a) adequate for the nature of the proposed
|
0001| operation; and
|
0002| (b) from financial sources posing no risk to
|
0003| the integrity of the regulated system of video gaming;
|
0004| (5) have demonstrated sufficient technological
|
0005| capability to meet the superintendent's rules; and
|
0006| (6) are in all other respects qualified to be
|
0007| licensed consistent with the desired policy of the state.
|
0008| C. Before any license is issued, every person holding a
|
0009| substantial interest in the applicant shall be proven by the
|
0010| applicant:
|
0011| (1) to be of good character, honesty and
|
0012| integrity; and
|
0013| (2) to have no prior activities, including any
|
0014| criminal record, reputation, habits or associations that pose a
|
0015| threat to the public interest of the state or the effective
|
0016| regulation and control of video gaming within the state or create
|
0017| or enhance the dangers of unsuitable, unfair or illegal practices,
|
0018| methods or activities in the operation of the video gaming or in
|
0019| the business or financial arrangement incident to the operation of
|
0020| video gaming.
|
0021| D. An application for a license shall constitute a
|
0022| request for the determination of the applicant's general character,
|
0023| integrity and ability to participate in, engage in, or be
|
0024| associated with a regulated system of video games of chance. An
|
0025| applicant shall provide any release or authorization determined by
|
0001| the superintendent to be appropriate for the consideration of an
|
0002| application. Any written or oral statement made in the course of
|
0003| an official proceeding, including any investigation, shall be
|
0004| absolutely privileged and shall not impose any civil liability.
|
0005| E. Until July 1, 1997, no operator's license shall be
|
0006| issued to any person who has not been, at the time of issuance, a
|
0007| bona fide resident of the state for two years nor shall an
|
0008| operator's license be issued to any entity in which a person
|
0009| ineligible to hold an operator's license pursuant to this
|
0010| subsection holds a substantial interest. An owner-operator may be
|
0011| issued an operator's license and a premises license.
|
0012| Section 10. LICENSES--TRANSFER--DISPLAY.--No license issued
|
0013| pursuant to the Video Gaming Act shall be assignable or
|
0014| transferable from person to person or device to device. Any
|
0015| license so issued shall be conspicuously displayed at the
|
0016| licensee's principal place of business in an area visible to the
|
0017| public.
|
0018| Section 11. LICENSES--INVESTIGATIONS.--
|
0019| A. Any applicant for or holder of a license issued
|
0020| under the Video Gaming Act shall produce records or evidence and
|
0021| give all information requested by the superintendent or the
|
0022| commission. No applicant or holder shall interfere or attempt to
|
0023| interfere with any investigation by the superintendent or
|
0024| commission.
|
0025| B. Every manufacturer's licensee shall immediately make
|
0001| available for inspection by any agent of the state all papers,
|
0002| books and records produced by any video gaming equipment business
|
0003| and all portions of the establishment where equipment is
|
0004| manufactured, sold or distributed. Any agent of the state shall be
|
0005| given immediate access to any portion of the establishment of any
|
0006| licensed manufacturer for the purpose of inspecting or examining
|
0007| any records or documents required to be kept by the licensee under
|
0008| the Video Gaming Act or any superintendent's rule or examining any
|
0009| equipment related to the conduct of any Video Gaming Activity.
|
0010| C. Every operator and every person owning or
|
0011| controlling a premises shall immediately make available for
|
0012| inspection by any agent of the state all papers, books and records
|
0013| produced by any Video Gaming Activity or business and make
|
0014| available all portions of the establishment where electronic
|
0015| instant video gaming-related equipment or devices may be located in
|
0016| order to permit the agent to determine that all devices comply with
|
0017| minimum requirements and do not vary in any significant manner from
|
0018| the representative device of the same type approved by the
|
0019| superintendent.
|
0020| D. The state may, after written or oral notice, remove
|
0021| a video gaming device or any portion of the device from the
|
0022| establishment where it is being operated for the purpose of
|
0023| examination and inspection.
|
0024| Section 12. SUSPENSION--REVOCATION--SEIZURE.--
|
0025| A. The superintendent may revoke a manufacturer's,
|
0001| operator's or premises license upon a finding that the licensee or
|
0002| any person holding a substantial interest in the licensee has:
|
0003| (1) provided false or misleading information to
|
0004| the superintendent or commission;
|
0005| (2) been convicted of any felony or gambling-related offense;
|
0006| (3) endangered the security of a video gaming
|
0007| device;
|
0008| (4) become a person whose character is no longer
|
0009| consistent with the protection of the public interest and trust in
|
0010| video gaming; or
|
0011| (5) become delinquent in remitting money owed to
|
0012| any person or to the state.
|
0013| B. The superintendent may suspend or revoke a
|
0014| manufacturer's, operator's or premises license upon a finding that
|
0015| the licensee or any person holding a substantial interest in the
|
0016| licensee has violated the Video Gaming Act or superintendent's
|
0017| rule. If the superintendent suspends or revokes or refuses to
|
0018| grant a license or seizes the video gaming devices of a licensee,
|
0019| any interested party may, upon written notice to the commission, in
|
0020| accordance with the rules of the superintendent, request a hearing.
|
0021| The chair of the commission may stay the revocation of suspension
|
0022| of a license pending the outcome of the hearing.
|
0023| C. Any person aggrieved by a decision of the
|
0024| superintendent may appeal the decision to the commission.
|
0025| D. The superintendent may seize or seal any or all
|
0001| video gaming devices changed or modified in any manner not approved
|
0002| by the superintendent.
|
0003| Section 13. DEVICE MANUFACTURE--RESPONSIBILITY.--
|
0004| A. The responsibility for final assembly and initial
|
0005| operation of a video gaming device, in the manner approved by the
|
0006| superintendent, shall be with the manufacturer. Changes in the
|
0007| manner of final assembly or initial operation of a device after a
|
0008| representative device has been submitted to the superintendent for
|
0009| inspection and approval shall void the approval unless prior to the
|
0010| change the manufacturer obtains approval from the superintendent in
|
0011| accordance with the provisions of this section. A voided approval
|
0012| shall be deemed to revoke all licenses of the affected devices.
|
0013| B. Any request for changes to be made in a video gaming
|
0014| device shall be submitted in writing to the superintendent for
|
0015| prior approval. When appropriate, the request for a change shall
|
0016| be accompanied by a print, schematic, block diagram or machine
|
0017| analysis which contains details of the proposed change. Further, a
|
0018| reason for the change shall be set forth. In emergency cases, when
|
0019| a change is found by the superintendent to be necessary to prevent
|
0020| cheating or malfunction, a verbal request may be approved. The
|
0021| verbal approval shall be followed within fifteen days by a written
|
0022| request noting the verbal approval and containing the additional
|
0023| material required by this subsection.
|
0024| Section 14. VIDEO GAMING DEVICE LIMITATIONS.--
|
0025| A. No video gaming device shall allow more than two
|
0001| dollars ($2.00) to be played on a single game or award, in any one
|
0002| game, games or credits worth in excess of eight hundred dollars
|
0003| ($800); provided that, after December 31, 1997, the commission may
|
0004| set a limit different from eight hundred dollars ($800) by
|
0005| regulation.
|
0006| B. No video gaming device shall directly dispense coins
|
0007| or currency.
|
0008| C. No person shall allow access to a video gaming
|
0009| device by a person under the age of twenty-one years, nor shall any
|
0010| person employ a person under the age of twenty-one years if any
|
0011| portion of the job duties are to be performed in any area licensed
|
0012| for the location of video gaming devices.
|
0013| D. No video gaming device shall be available for play
|
0014| by the public unless it is included in a valid location agreement,
|
0015| it is located on premises licensed for the consumption of
|
0016| spirituous liquors, at least fifty-one percent of the receipts
|
0017| attributable to spirituous liquors, wine and fermented beverages
|
0018| are from sales for on premises consumption and:
|
0019| (1) located on the premises owned, leased or
|
0020| maintained by a person holding an operator's license, but not for
|
0021| play by the public; or
|
0022| (2) the premises are owned, leased or maintained
|
0023| by the person or entity controlling the location at which the
|
0024| device is located; provided that, a financial institution may own
|
0025| or hold a substantial interest in a device for the period necessary
|
0001| for it to satisfy any valid security interest, not to exceed six
|
0002| months.
|
0003| Section 15. VIDEO GAMING DEVICE REQUIREMENTS.--
|
0004| A. A video gaming device may deliver or entitle the
|
0005| person playing the device to receive a printed ticket, exchangeable
|
0006| for cash, which specifies the time, date, amount of winnings and
|
0007| the location of the device. A video gaming device shall record all
|
0008| use of the device and all amounts deposited in it and report the
|
0009| use and amounts deposited to a central site computer monitor. A
|
0010| video gaming device shall, at a minimum:
|
0011| (1) pay out a mathematically demonstrable
|
0012| percentage of all amounts played, which shall be not less than
|
0013| eighty percent and not more than ninety-five percent. Video games
|
0014| which may be affected by skill shall be evaluated against this
|
0015| criterion using a method of play which will provide the greatest
|
0016| return to the player over a period of continuous play;
|
0017| (2) use a random selection process to determine
|
0018| the outcome of each play of a game which meets ninety-five percent
|
0019| confidence limits using a standard chi squared test for randomness
|
0020| and which is impervious to outside influences;
|
0021| (3) display an accurate representation of the
|
0022| game outcome, and shall not alter any function of the device based
|
0023| on internal computation of payout percentage;
|
0024| (4) have the capacity to display outcome
|
0025| intermediate play steps, credits available, credits played, credits
|
0001| paid and credits cashed out for the most recent game played and one
|
0002| game prior;
|
0003| (5) be equipped with electronic meters and
|
0004| electromechanical meters capable of displaying monetary
|
0005| transactions and be capable of printing a record of those
|
0006| transactions. The device memory shall be in units equal to the
|
0007| denomination of the device, be at least six digits in length and
|
0008| retain, at least, the following transaction records for a period of
|
0009| at least one hundred eighty days:
|
0010| (a) electronic meters: money inserted,
|
0011| credits wagered, credits won, credits paid out, times logic area
|
0012| accessed, times ticket or other pay-out device accessed, credits or
|
0013| money won, number of credits representing money inserted by a
|
0014| player and credit for games won but not collected; and
|
0015| (b) electromechanical meters: money
|
0016| inserted, total credits of ticket vouchers printed, credits played
|
0017| and credits won;
|
0018| (6) be designed so that replacement of parts of
|
0019| modules required for normal maintenance does not necessitate
|
0020| replacement of the meters.
|
0021| B. Every video gaming device shall:
|
0022| (1) clearly represent its rules of play to the
|
0023| playing public; and
|
0024| (2) operate and play in accordance with the
|
0025| representation made to the superintendent and the public.
|
0001| C. Pay off schedules applicable to each video gaming
|
0002| device shall be displayed on the device or in a conspicuous place
|
0003| immediately adjacent thereto or be accessible from the device. Pay
|
0004| off schedules shall accurately state the range of actual pay offs
|
0005| or awards and shall not be worded in such manner as to mislead or
|
0006| deceive the public. The posting of any misleading or deceptive
|
0007| material on any pay off schedule or failure to make payment in
|
0008| accordance with a posted pay off schedules shall constitute a
|
0009| violation of the Video Gaming Act.
|
0010| D. The superintendent may inspect any video gaming
|
0011| device which is offered for sale or use in this state by a
|
0012| manufacturer.
|
0013| Section 16. LOCATION AGREEMENTS--FILING.--All location
|
0014| agreements shall be filed with the superintendent of the division
|
0015| before becoming effective, and no location agreement shall be
|
0016| effective without being filed with the superintendent. Any
|
0017| location agreement for a location which is not a parimutuel
|
0018| horseracing facility and which includes a video gaming device which
|
0019| is owned by a person or entity which does not hold an operator's
|
0020| license shall include a maintenance agreement for that machine with
|
0021| a person or entity holding an operator's license. A person holding
|
0022| both a premises and an operator's license shall hold only one
|
0023| premises license. This section shall not affect rights and
|
0024| obligations between private parties.
|
0025| Section 17. LOCATION AGREEMENTS--PROCEEDS
|
0001| DISTRIBUTION.--No location agreement shall require an operator to
|
0002| remit to another party more than fifty percent of the net proceeds,
|
0003| after deduction of any taxes due.
|
0004| Section 18. VIDEO GAMING DEVICES--LIMITATIONS.--Video gaming
|
0005| devices shall not be made available for play except in accordance
|
0006| with this section. Devices shall be placed only in locations which
|
0007| are age controlled. Devices can only be placed in the following
|
0008| places in the following numbers:
|
0009| A. premises that are licensed as clubs under the Liquor
|
0010| Control Act as of January 1, 1995--fifteen devices; or
|
0011| B. premises that are parimutuel horseracing facilities-one hundred devices, provided that fifty percent of the money
|
0012| retained by the licensee is used exclusively for purses and
|
0013| provided that the money shall not be substituted for money
|
0014| otherwise dedicated to purses or awards, five devices, otherwise.
|
0015| Section 19. PERCENTAGE NET PROCEEDS TAX.--For the privilege
|
0016| of locating video gaming devices for play by the public, there is
|
0017| imposed on every operator a "percentage net proceeds tax." The
|
0018| tax shall be equal to twenty percent of the net proceeds
|
0019| attributable to devices owned or maintained by the operator. The
|
0020| taxable event shall be the playing of the device by the public.
|
0021| The tax shall be due on the fifth of the month following the
|
0022| taxable event. The taxation and revenue department is charged with
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0023| administration of the tax. The rate of the percentage net proceeds
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0024| tax shall not be increased in any year in which the gross receipts
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0025| tax is not increased and in such a year may be increased only by a
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0001| proportion which bears the same ratio to the prior net proceeds tax
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0002| as the increase in the gross receipts tax bears to prior gross
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0003| receipts tax.
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0004| Section 20. ELECTIONS FOR LOCAL OPTION.--Any municipality
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0005| containing over five thousand population according to the latest
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0006| United States census, whether the county in which that municipality
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0007| is situated has adopted the local option provisions of the Video
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0008| Gaming Act or not, or any county in the state may adopt local
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0009| option in the county or municipality upon the following terms and
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0010| conditions:
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0011| A. at any time after the effective date of the Video
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0012| Gaming Act, the registered qualified electors of any proposed local
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0013| option district may petition the governing body by filing one or
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0014| more petitions in the appropriate office to hold an election for
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0015| the purpose of determining whether the county or municipality shall
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0016| adopt the local option provisions of the Video Gaming Act. If the
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0017| aggregate of the signatures of such elector on all the petitions
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0018| equals or exceeds five percent of the number of registered voters
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0019| of the district, the governing body shall call an election within
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0020| seventy-five days of the verification of the petition. The date of
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0021| the filing of the petition shall be the date of the filing of the
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0022| last petition which brings the number of signatures to the required
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0023| five percent; provided, however, that the governing body shall
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0024| refuse to recognize the petition if more than three months have
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0025| elapsed between the date of the first signature and the filing of
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0001| the last petition necessary to bring the number of signatures on
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0002| the petition to five percent;
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0003| B. the election shall be called, conducted, counted and
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0004| canvassed substantially in the manner provided by law for general
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0005| elections within the county or special municipal elections within
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0006| the municipality, except as otherwise provided in this section;
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0007| C. the votes at the election shall be counted, returned
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0008| and canvassed as provided for in the case of general elections
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0009| within the county or special municipal elections within the
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0010| municipality;
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0011| D. except as otherwise provided in this section,
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0012| contests, recounts and rechecks shall be permitted as provided for
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0013| in the case of candidates for county office in general elections or
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0014| as provided for in the case of special municipal elections within
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0015| the municipality. Applications for contests, recounts or rechecks
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0016| may be filed by any person who voted in the election, and service
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0017| shall be made upon the county clerk or municipal clerk as the case
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0018| may be;
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0019| E. if a majority of all the votes cast at the election
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0020| are cast in favor of allowing the location of video gaming devices
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0021| at parimutuel horse racing facilities, fraternal order or veterans'
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0022| clubs in the county or municipality, the chairman of the governing
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0023| body shall declare by order entered upon the records of the county
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0024| or municipality that the county or municipality has adopted the
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0025| local option provisions of the Video Gaming Act and shall notify
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0001| the commission of such results;
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0002| F. no election held pursuant to this section shall be
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0003| held within forty-two days of any primary, general, municipal or
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0004| school district election. If, within sixty days from the
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0005| verification of any petition as provided in Subsection A of this
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0006| section, a primary, general, municipal or school election is held,
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0007| the governing body may call an election for a day not less than
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0008| sixty days after the general, municipal or school election;
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0009| G. if an election is held under the provisions of the
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0010| Video Gaming Act in any county which contains within its limits any
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0011| municipality of more than five thousand persons according to the
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0012| last United States census, it is not necessary for the registered
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0013| qualified electors in the municipality to file a separate petition
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0014| asking for a separate or different vote on the question of adopting
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0015| the local option provisions of the Video Gaming Act by the
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0016| municipality. The election in the county shall be conducted so as
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0017| to separate the votes in the municipality from those in the
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0018| remaining parts of the county. If a majority of the voters in the
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0019| county, including the voters in the municipality, vote against the
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0020| location of video gaming devices at parimutuel horse racing
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0021| facilities, fraternal order clubs or veterans' clubs in the county,
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0022| the county shall not adopt the local option provisions of the Video
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0023| Gaming Act; but if a majority of the votes in the municipality are
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0024| in favor of locating video gaming devices at resorts, the
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0025| municipality shall have adopted the local option provisions of the
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0001| Video Gaming Act. Nothing contained in this subsection shall
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0002| prevent any municipality from having a separate election under the
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0003| terms of this section.
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0004| Section 21. RESUBMISSION OF LOCAL OPTION QUESTION.--In any
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0005| local option district in which the local option provisions of the
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0006| Video Gaming Act have been rejected by the voters, it shall be
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0007| permissible after the expiration of two years from the date of the
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0008| election at which the local option provisions of the Video Gaming
|
0009| Act were rejected, to have another local option election in the
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0010| district.
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0011| Section 22. FUND CREATED.--There is created in the state
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0012| treasury the "video gaming fund." All money in the fund, and all
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0013| interest attributable to it are appropriated to the superintendent
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0014| for the purpose of carrying out the provisions of the Video Gaming
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0015| Act. All fees paid for licenses under the Video Gaming Act shall
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0016| be credited to the fund.
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0017| Section 23. APPROPRIATION.--There is appropriated from the
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0018| general fund to the video gaming fund the sum of one million five
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0019| hundred thousand dollars ($1,500,000) for the purpose of carrying
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0020| out the provisions of this act. This appropriation shall not
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0021| revert at the end of any fiscal year.
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0022| Section 24. SEVERABILITY.--If any part or application of
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0023| this act is held invalid, the remainder or its application to other
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0024| situations or persons shall not be affected.
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0025| Section 25. EFFECTIVE DATE.--The effective date of the
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0001| provisions of the Video Gaming Act is July 1, 1996.
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