0001| HOUSE BILL 548 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| MICHAEL OLGUIN | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO GAMING; ENACTING THE HORSE RACING INDUSTRY | 0013| ENHANCEMENT ACT; PERMITTING ELECTRONIC MACHINE GAMING AT | 0014| RACETRACKS; PROVIDING FOR OFF-TRACK PARI-MUTUEL WAGERING ON | 0015| HORSE RACES; PROVIDING FOR REGULATION AND LICENSING OF THE | 0016| PERMITTED ACTIVITIES; CREATING A REGULATORY BOARD; PROVIDING | 0017| PENALTIES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; | 0018| MAKING AN APPROPRIATION. | 0019| | 0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0021| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0022| through 35 of this act shall be known and may be cited as the | 0023| "Horse Racing Industry Enhancement Act". | 0024| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the | 0025| Horse Racing Industry Enhancement Act is to: | 0001| A. authorize and regulate the use and operation of | 0002| electronic gaming machines at racetracks in the state; | 0003| B. authorize and regulate the implementation and | 0004| operation of pari-mutuel wagering at facilities other than | 0005| racetracks, otherwise known as off-track betting; | 0006| C. take all actions necessary to ensure the | 0007| integrity, reliability and security of electronic games at | 0008| racetracks and off-track betting; and | 0009| D. encourage and enhance the horse racing industry | 0010| in this state, by increasing purse funds in order to | 0011| reinvigorate competitive motivation for horse trainers, | 0012| breeders, owners and racetracks in this state. | 0013| Section 3. [NEW MATERIAL] PUBLIC POLICY OF STATE | 0014| CONCERNING GAMING.--The legislature finds and declares it to be | 0015| the public policy of this state that: | 0016| A. regulation of electronic games at racetracks and | 0017| off-track betting is critical to ensure that they are conducted | 0018| honestly and competitively; | 0019| B. the public's confidence and trust in the | 0020| permitted electronic gaming activities at racetracks and off-track betting can be obtained and maintained only through strict | 0021| regulation of all persons, locations, practices, associations | 0022| and activities related directly or indirectly to electronic | 0023| gaming at racetracks and off-track betting conducted in the | 0024| state; and | 0025| C. a holder of a license issued pursuant to the | 0001| Horse Racing Industry Enhancement Act to conduct permitted | 0002| gaming activities at racetracks and off-track betting does not | 0003| acquire any vested interest or right in or under the license and | 0004| has only a revocable privilege. | 0005| Section 4. [NEW MATERIAL] DEFINITIONS.--As used in the | 0006| Horse Racing Industry Enhancement Act: | 0007| A. "associated equipment" means any proprietary | 0008| device, machine, component or part used in the manufacture or | 0009| maintenance of an electronic gaming machine, including, but not | 0010| limited to, integrated circuit chips, printed wired assembly, | 0011| printed wire boards, printing mechanisms, video display monitors | 0012| and metering devices; | 0013| B. "board" means the gaming board regulating gaming | 0014| under the Horse Racing Industry Enhancement Act; | 0015| C. "commission" means the state racing commission as | 0016| authorized pursuant to the Horse Racing Act; | 0017| D. "committee" means the gaming oversight committee | 0018| created pursuant to Section 7 of the Horse Racing Industry | 0019| Enhancement Act; | 0020| E. "distributor" means a person who finances and | 0021| distributes gaming devices to a racetrack in return for | 0022| consideration, but does not include a manufacturer or its | 0023| affiliate providing electronic gaming machines directly to a | 0024| racetrack; | 0025| F. "electronic game" means any simulated game of | 0001| chance, which may involve skill of the player or application of | 0002| the element of chance, or both, that is displayed and played on | 0003| an electronic gaming machine which has been authorized by the | 0004| commission; | 0005| G. "electronic gaming machine" means any electronic | 0006| or electromechanical or other device, contrivance or machine, | 0007| including without limitation video lottery machines, and those | 0008| machines commonly known as slot machines, that, upon the | 0009| insertion of a coin, currency, token or credit voucher, or upon | 0010| payment of any consideration, is available to play or operate or | 0011| simulate the play of electronic games, the play of which may | 0012| deliver or entitle a winning player to receive cash, premiums, | 0013| merchandise, credits, tokens or anything of value that reflects | 0014| credits earned that may be redeemed for any of the above, | 0015| whether the payoff is made automatically from the machine or in | 0016| any other manner; | 0017| H. "licensee" means a person other than a racetrack | 0018| licensee to whom a valid license has been issued under the Horse | 0019| Racing Industry Enhancement Act; | 0020| I. "licensed race meet" means a live or simulcast | 0021| race meet licensed by the commission for a period of duration | 0022| specified in the license; | 0023| J. "major procurement" means any procurement or | 0024| contract entered into by the board or commission for the | 0025| purchase or lease of facilities, equipment, goods or services | 0001| used by the board or commission primarily for regulation of | 0002| electronic games in excess of twenty thousand dollars ($20,000); | 0003| K. "manufacturer" means any person who assembles or | 0004| produces electronic gaming machines or associated equipment for | 0005| sale or use in this state; | 0006| L. "net machine income" means: | 0007| (1) the sum of all money wagered by players of | 0008| electronic games on a single licensed electronic gaming device, | 0009| not including counterfeit money or tokens; coins of other | 0010| countries that are received in electronic gaming devices, except | 0011| to the extent that they are readily convertible into United | 0012| States currency; cash taken in fraudulent acts perpetrated | 0013| against a licensee for which the licensee is not reimbursed or | 0014| cash received as entry fees for contests or tournaments in which | 0015| the patrons compete for prizes; and | 0016| (2) less the amount paid out to winning | 0017| players, including those amounts paid to purchase annuities to | 0018| fund amounts paid to winning players over several years; | 0019| M. "off-track betting" means pari-mutuel wagering on | 0020| horse races at facilities or locations other than racetracks; | 0021| N. "OTB facility" means a facility or location other | 0022| than a racetrack which conducts licensed off-track betting as an | 0023| extension of a live race meet conducted at a licensed New Mexico | 0024| racetrack and may include a facility or location established and | 0025| operated on property that is owned or leased and which is not | 0001| used solely for the operation of an OTB facility; | 0002| O. "person" means an individual or any legal entity, | 0003| including a partnership, joint venture, limited liability | 0004| company or corporation; | 0005| P. "progressive jackpot" means a prize that | 0006| increases over time or as electronic gaming machines that are | 0007| linked to a progressive system are played; | 0008| Q. "progressive system" means one or more electronic | 0009| gaming machines linked to one or more common progressive | 0010| jackpots. A "local area progressive system" shall consist | 0011| solely of electronic gaming machines located at a single-license | 0012| racetrack. A "wide area progressive system" may link electronic | 0013| gaming machines at multiple-license racetracks; | 0014| R. "racetrack" means a horse racetrack in New Mexico | 0015| licensed by the commission to conduct pari-mutuel wagering at | 0016| licensed race meets; | 0017| S. "racetrack license" means a license issued to a | 0018| racetrack pursuant to the Horse Racing Industry Enhancement Act | 0019| to have electronic gaming machines in operation in that | 0020| racetrack's facilities; | 0021| T. "racetrack licensee" means a racetrack that has | 0022| obtained a racetrack license; | 0023| U. "vendor" means any person who is awarded a major | 0024| procurement contract; and | 0025| V. "winning percentage" means the portion of the | 0001| gross terminal revenue that is available for the payment of | 0002| prizes to winning players. | 0003| Section 5. [NEW MATERIAL] GAMING BOARD CREATED.-- | 0004| A. The "gaming board" is created. The board is | 0005| administratively attached to the regulation and licensing | 0006| department and consists of five members who are: | 0007| (1) the superintendent of regulation and | 0008| licensing or his designee; | 0009| (2) the secretary of public safety or his | 0010| designee; | 0011| (3) the state treasurer or his designee; | 0012| (4) an individual appointed by the president | 0013| pro tempore of the senate; and | 0014| (5) an individual appointed by the speaker of | 0015| the house of representatives. | 0016| All members of the board shall be citizens of the United | 0017| States. | 0018| B. The members of the board appointed by the speaker | 0019| of the house of representatives and the president pro tempore of | 0020| the senate shall be appointed for terms of two years. | 0021| C. The board shall elect a chair annually from the | 0022| board's membership. | 0023| D. The special investigations division of the | 0024| department of public safety shall conduct background | 0025| investigations of all members of the board prior to their taking | 0001| office. Such background investigations shall include, but not | 0002| be limited to, credit checks, police record checks, conviction | 0003| record checks, national and statewide criminal records | 0004| clearinghouse checks and fingerprint checks. The results of | 0005| that investigation shall be furnished to the governor, the | 0006| president pro tempore of the senate and the speaker of the house | 0007| of representatives. | 0008| E. Any individual convicted of any crime not a petty | 0009| misdemeanor and involving gambling, moral turpitude, fraud or | 0010| theft, or of a felony shall not be eligible to serve on or be | 0011| appointed to the board. | 0012| F. Board members shall report any arrest for or | 0013| conviction of any crime not a petty misdemeanor and involving | 0014| gambling, moral turpitude, fraud or theft, or of a felony to the | 0015| governor within three days of such arrest or conviction. | 0016| G. No person who has or later acquires an ownership | 0017| interest in any vendor, licensee or racetrack licensee shall | 0018| serve on the board. | 0019| Section 6. [NEW MATERIAL] MEETINGS--QUORUM--RECORDS.-- | 0020| A. A majority of the qualified membership of the | 0021| board then in office constitutes a quorum. No action may be | 0022| taken by the board unless at least three members concur. | 0023| B. The board may hold regular or special meetings | 0024| upon reasonable notice. | 0025| C. Meetings of the board shall be open and public in | 0001| accordance with the Open Meetings Act, except that the board may | 0002| have closed meetings to hear security and investigative | 0003| information that is otherwise permitted by law to be | 0004| confidential, to evaluate confidential proprietary information | 0005| provided as part of a major procurement proposal and those | 0006| matters specified as confidential in Section 13 of the Horse | 0007| Racing Industry Enhancement Act. | 0008| D. All proceedings of the board shall be recorded by | 0009| audiotape or other equivalent verbatim radio recording device; | 0010| however, tapes of closed meetings shall not be made available to | 0011| the public. | 0012| Section 7. [NEW MATERIAL] GAMING OVERSIGHT COMMITTEE--DUTIES--COMPENSATION.-- | 0013| A. A joint interim legislative oversight committee | 0014| to be known as the "gaming oversight committee" is created. The | 0015| committee shall function from the date of its appointment until | 0016| the first day of December prior to the first session of the | 0017| forty-fifth legislature. | 0018| B. The committee shall be composed of ten members. | 0019| Five members of the house of representatives shall be appointed | 0020| by the speaker of the house of representatives and five members | 0021| of the senate shall be appointed by the committees' committee of | 0022| the senate or, if the senate appointments are made in the | 0023| interim, by the president pro tempore of the senate after | 0024| consultation with and agreement of a majority of the members of | 0025| the committees' committee. Members shall be appointed so that | 0001| there is a member from each of the major political parties from | 0002| each house. No person who has or later acquires an ownership | 0003| interest in any vendor, licensee or racetrack licensee shall | 0004| serve on the committee. | 0005| C. The committee shall oversee the regulation of | 0006| electronic games, as well as periodically review and evaluate | 0007| the success with which the board is accomplishing its duties and | 0008| regulating electronic gaming activity pursuant to the Horse | 0009| Racing Industry Enhancement Act. The committee may conduct any | 0010| independent audit or investigation of the regulation of | 0011| electronic gaming or the board as it deems necessary. | 0012| D. Members of the committee may receive per diem and | 0013| mileage in accordance with the provisions of the Per Diem and | 0014| Mileage Act when the legislature is not in session and shall | 0015| receive no other compensation, perquisite or allowance. | 0016| E. The committee shall report its findings and | 0017| recommendations on electronic gaming and the operation of the | 0018| board to each regular session of the legislature. | 0019| Section 8. [NEW MATERIAL] RULES AND REGULATIONS.-- | 0020| A. The board shall have the power to adopt, amend or | 0021| repeal those rules and regulations, consistent with the policy, | 0022| objectives and purposes of the Horse Racing Industry Enhancement | 0023| Act, as it deems necessary or desirable in the public interest | 0024| in carrying out the policy and provisions of that act, which | 0025| shall include but not be limited to rules and regulations | 0001| governing: | 0002| (1) security for electronic games; | 0003| (2) application requirements for racetrack | 0004| licensees, including disclosure requirements related to the | 0005| ownership and control of licensees and other disclosures | 0006| necessary to evaluate the competence, background, integrity or | 0007| character of the racetrack licensee; provided, however, that the | 0008| board shall have access to and shall utilize and review all | 0009| information obtained by the commission in connection with its | 0010| licensing of the racetrack licensee's race meet and the | 0011| racetrack licensee shall not be required to duplicate that | 0012| information for the board, and provided further that the board | 0013| may impose such additional requirements for information on the | 0014| applicant as the board may deem necessary or appropriate; | 0015| (3) application requirements for licensees, | 0016| including disclosure requirements related to the ownership and | 0017| control of licensees and other disclosures necessary to evaluate | 0018| the competence, background, integrity or character of the | 0019| licensee; | 0020| (4) the percentage chances of winning | 0021| electronic games and the prize structure for electronic games so | 0022| that the winning percentage shall be at least eighty-five | 0023| percent of the amount played or bet computed on a regular and | 0024| systematic basis; | 0025| (5) the procedures to be followed by a | 0001| racetrack licensee in payment of valid prizes, including | 0002| annuities; | 0003| (6) the qualifications of vendors and | 0004| licensees, and, in cooperation with the commission, the | 0005| qualifications of racetrack licensees; | 0006| (7) minimum standards for electronic gaming | 0007| machines; | 0008| (8) the operations of distributors to ensure | 0009| compliance with the Horse Racing Industry Enhancement Act; | 0010| (9) insurance and bonding requirements for | 0011| vendors; and | 0012| (10) any other matter necessary or desirable as | 0013| determined by the board to promote and ensure the integrity, | 0014| security, honesty and fairness of the operation of electronic | 0015| games. | 0016| B. The rules and regulations promulgated pursuant to | 0017| this section shall be promulgated not later than ninety days | 0018| from the effective date of the Horse Racing Industry Enhancement | 0019| Act and shall be valid for no longer than a period of ten years | 0020| following their promulgation unless earlier reenacted by the | 0021| board. | 0022| Section 9. [NEW MATERIAL] STATE RACING COMMISSION--POWERS AND DUTIES.-- | 0023| A. The commission shall oversee implementation of | 0024| all rules and regulations adopted by the board that are | 0025| applicable to racetrack licensees and licensees who are licensed | 0001| by the commission under the Horse Racing Act. | 0002| B. The board may delegate to the commission the | 0003| authority to enforce all rules and regulations adopted by the | 0004| board that are applicable to racetrack licensees and licensees. | 0005| C. The board shall provide the commission notice and | 0006| an opportunity to be heard in proceedings for the adoption, | 0007| amendment or repeal of rules or regulations applicable to | 0008| racetrack licensees. | 0009| D. Within ninety days of the effective date of the | 0010| Horse Racing Industry Enhancement Act, the commission shall | 0011| adopt, amend or repeal such rules, regulations and policies, | 0012| consistent with the policy, objectives and purposes of that act, | 0013| as it deems necessary or desirable for the operation of | 0014| racetrack licensees and electronic gaming machines for the | 0015| purpose of maximizing revenue and enhancing purses, encouraging | 0016| attendance at race meets and increasing public interest in horse | 0017| racing in New Mexico, including, but not limited to rules, | 0018| regulations and policies relating to: | 0019| (1) enforcement of prohibitions on the playing | 0020| of electronic games by or for an individual younger than twenty-one years of age; | 0021| (2) the specific games to be conducted within | 0022| the electronic games to ensure that no specific game is operated | 0023| that is unfair or misleading; | 0024| (3) the hours of operation of electronic games | 0025| to be not less than twelve hours a day on days when there are | 0001| live or simulcast races being run or shown at a New Mexico | 0002| racetrack or racetracks; | 0003| (4) the number of electronic gaming machines at | 0004| each racetrack licensee, subject to Section 30 of the Horse | 0005| Racing Industry Enhancement Act; | 0006| (5) the establishment of criteria and | 0007| conditions for the operation of progressive jackpots and | 0008| progressive systems; | 0009| (6) directing and ensuring that all necessary | 0010| or appropriate security systems and personnel are in place at | 0011| racetrack licensees to ensure the security and integrity of the | 0012| operation of electronic games; | 0013| (7) the minimum and maximum bet per play; and | 0014| (8) such other policies, rules and regulations, | 0015| not inconsistent with those promulgated by the board, as may be | 0016| appropriate for the proper and fair operation of electronic | 0017| gaming under the Horse Racing Industry Enhancement Act. | 0018| Section 10. [NEW MATERIAL] ADMINISTRATION--HEARING--RULES AND REGULATIONS.-- | 0019| A. Rules and regulations shall be adopted, | 0020| promulgated, amended or repealed only after a public hearing by | 0021| the adopting authority. Notice of the hearing shall be given at | 0022| least twenty days in advance in a newspaper of general | 0023| circulation in the state. The adopting authority shall either | 0024| approve or disapprove the proposed adoption, promulgation, | 0025| amendment or repeal of such rules and regulations within ten | 0001| days of the hearing. | 0002| B. Certified copies of any approved rules and | 0003| regulations shall be submitted to the committee, the board, if | 0004| adopted by the commission, the commission, if adopted by the | 0005| board, and, as required, to the state records center pursuant to | 0006| the State Rules Act. Copies of the rules and regulations in | 0007| force shall be made available to any person upon request. | 0008| C. The adopting authority shall adopt and promulgate | 0009| rules and regulations for the conduct of all hearings. | 0010| Section 11. [NEW MATERIAL] ADMINISTRATIVE SUPPORT.--The | 0011| regulation and licensing department shall be responsible for | 0012| providing to the board and commission all necessary and | 0013| appropriate administrative support, which shall include but not | 0014| be limited to clerical, administrative, investigatory or such | 0015| other functions as are necessary or appropriate to carry out the | 0016| functions of the board and commission. | 0017| Section 12. [NEW MATERIAL] SECURITY.-- | 0018| A. The regulation and licensing department shall be | 0019| responsible for providing security-related services to the board | 0020| and commission, including but not limited to obtaining | 0021| background checks on appropriate state personnel. | 0022| B. The department of public safety shall perform a | 0023| full criminal background investigation of any state employee, | 0024| other than members of the board, directly involved in | 0025| administration, implementation or oversight of the Horse Racing | 0001| Industry Enhancement Act. Such background investigations shall | 0002| include, but not be limited to, credit checks, police record | 0003| checks, conviction record checks, national and statewide | 0004| criminal records clearinghouse checks and fingerprint checks. | 0005| The board shall reimburse the department of public safety for | 0006| the actual costs of an investigation. | 0007| C. An individual convicted of any crime, other than | 0008| a petty misdemeanor, involving gambling, moral turpitude, fraud | 0009| or theft or a felony shall not be eligible for state employment | 0010| in any capacity directly involved in administration, | 0011| implementation or oversight of the Horse Racing Industry | 0012| Enhancement Act. | 0013| D. Any state employee directly involved in | 0014| administration, implementation or oversight of the Horse Racing | 0015| Industry Enhancement Act shall report any arrest for or | 0016| conviction of any crime not a petty misdemeanor involving | 0017| gambling, moral turpitude, fraud or theft or a felony to the | 0018| board within three days of such arrest or conviction. | 0019| E. By July 1, 1997, and at least once every two | 0020| years thereafter, the board shall employ an independent firm | 0021| that is experienced in security, including computer security and | 0022| systems security, to conduct a comprehensive confidential study | 0023| of all aspects of electronic gaming security, including: | 0024| (1) vendor, licensee and racetrack licensee | 0025| security; | 0001| (2) security against voucher counterfeiting and | 0002| alteration and other means of fraudulent winning; | 0003| (3) computer system security, data | 0004| communications, database and systems security; | 0005| (4) security of validation and payment | 0006| procedures; | 0007| (5) security of electronic gaming machines; and | 0008| (6) other security aspects of board operations. | 0009| F. The board shall provide the governor, the | 0010| committee and the commission with a copy of the confidential | 0011| security study. | 0012| G. The board and the commission shall develop a plan | 0013| to improve security of the electronic gaming based upon the | 0014| recommendations of the confidential security study; however, | 0015| nothing in this section shall be construed as requiring the | 0016| board or commission to implement any of the recommendations made | 0017| by the study. | 0018| Section 13. [NEW MATERIAL] INFORMATION AND DATA--CONFIDENTIALITY--DISCLOSURE.-- | 0019| A. All of the following information and data are | 0020| confidential and may be revealed in whole or in part only in the | 0021| course of the necessary administration of the Horse Racing | 0022| Industry Enhancement Act or upon the lawful order of a court of | 0023| competent jurisdiction, except that the board or commission may | 0024| reveal confidential information or data to an authorized agent | 0025| of any governmental agency pursuant to a reciprocal agreement | 0001| with the other governmental agency to share information and | 0002| maintain confidentiality of the information as provided in this | 0003| section: | 0004| (1) security measures and internal security | 0005| reports; | 0006| (2) information or data provided by a | 0007| governmental agency that is required by that agency's governing | 0008| law to be kept confidential; | 0009| (3) trade secrets and proprietary information | 0010| of any applicant, racetrack licensee, licensee or vendor; | 0011| (4) personal data, including personal financial | 0012| data, not otherwise public and not directly related to the | 0013| license or major procurement contract; and | 0014| (5) any information or data that are otherwise | 0015| made confidential by law. | 0016| B. Notice of the content of any information or data | 0017| furnished or released pursuant to this section may be given to | 0018| any applicant or licensee in a manner prescribed by regulations | 0019| adopted pursuant to the Horse Racing Industry Enhancement Act. | 0020| Section 14. [NEW MATERIAL] BOOKS AND RECORDS--REQUIREMENTS.-- | 0021| A. The regulation and licensing department, on | 0022| behalf of the board and commission, shall make and keep books | 0023| and records that accurately and fairly reflect transactions of | 0024| electronic games conducted pursuant to the Horse Racing Industry | 0025| Enhancement Act, including the receipt of funds, expenses and | 0001| all other activities and financial transactions involving | 0002| revenue generated by electronic games, so as to permit | 0003| preparation of financial statements in conformity with generally | 0004| accepted accounting principles and to maintain daily | 0005| accountability. | 0006| B. The regulation and licensing department, on | 0007| behalf of the board and commission, shall maintain a file of all | 0008| applications for licenses and racetrack licenses under the Horse | 0009| Racing Industry Enhancement Act, together with a record of all | 0010| action taken with respect to those applications. The file and | 0011| record are open to public inspection, except those portions | 0012| declared by law to be confidential. | 0013| C. The regulation and licensing department, on | 0014| behalf of and as directed by the board and commission, may | 0015| maintain such other files and records as it deems desirable. | 0016| Section 15. [NEW MATERIAL] AUDITS.-- | 0017| A. The board shall provide for a certified public | 0018| accountant to conduct an independent audit for each fiscal year | 0019| of all accounts and transactions related to electronic gaming. | 0020| The independent audit shall be reviewed by the state auditor. | 0021| The certified public accountant shall not have an ownership | 0022| interest in a vendor, racetrack licensee or licensee and shall | 0023| report any conflict of interest to the board. The certified | 0024| public accountant shall present an audit report to the board, | 0025| the commission, the governor and the committee not later than | 0001| December 31 of the year following the fiscal year for which the | 0002| audit was performed. | 0003| B. Each vendor's, licensee's and racetrack | 0004| licensee's records relating to the Horse Racing Industry | 0005| Enhancement Act are subject to audit by the board. | 0006| C. The board and the committee shall develop a plan | 0007| to improve the efficiency of the board based upon the | 0008| recommendations of the certified public accountant; however, | 0009| nothing in this section shall be construed as requiring the | 0010| board to implement any of the recommendations made by the | 0011| certified public accountant. | 0012| D. All accounts and transactions relating to gaming | 0013| are exempt from the Audit Act. | 0014| Section 16. [NEW MATERIAL] INVESTIGATORY POWERS.--The | 0015| board and the commission shall have the power to: | 0016| A. examine under oath any person or any officer, | 0017| employee or agent of any organization or corporation; | 0018| B. compel by subpoena the production of records; and | 0019| C. compel by subpoena the attendance of any person | 0020| in this state to testify before the board or commission when | 0021| such investigation is necessary to the proper administration of | 0022| the Horse Racing Industry Enhancement Act. | 0023| Section 17. [NEW MATERIAL] ATTORNEY GENERAL--OTHER LAW | 0024| ENFORCEMENT AUTHORITY--POWERS AND DUTIES.-- | 0025| A. The board or commission may confer with the | 0001| attorney general as deemed necessary and advisable for the | 0002| proper administration of the Horse Racing Industry Enhancement | 0003| Act. Upon request of the board, it shall be the duty of the | 0004| attorney general and any other law enforcement authority to whom | 0005| a violation is reported to investigate and cause appropriate | 0006| proceedings to be instituted without delay. | 0007| B. The attorney general and the department of public | 0008| safety shall furnish to the board and the commission any | 0009| information that they may have in their possession as may be | 0010| necessary to ensure security, honesty, fairness and integrity in | 0011| the operation and administration of electronic games conducted | 0012| pursuant to the Horse Racing Industry Enhancement Act. The | 0013| board and commission shall be considered to be criminal justice | 0014| agencies and shall be furnished such information without charge | 0015| upon proper written request. | 0016| Section 18. [NEW MATERIAL] CONFLICTS OF INTEREST--NUMERATED--COMPLIANCE WITH OTHER LAWS--VIOLATION--REMOVAL FROM | 0017| OFFICE.-- | 0018| A. The members of the board, the committee, the | 0019| commission and the regulation and licensing department and other | 0020| restricted persons shall not, directly or indirectly: | 0021| (1) knowingly hold a financial interest or | 0022| acquire stocks, bonds or any other interest in any entity that | 0023| is a distributor or manufacturer, licensee, racetrack licensee | 0024| or vendor; or | 0025| (2) have a financial interest in the ownership | 0001| or leasing of property used in the conduct or regulation of | 0002| electronic games. | 0003| B. The members of the board, the committee, the | 0004| commission or the regulation and licensing department shall not | 0005| ask for, offer to accept or receive any gift, gratuity or other | 0006| thing of value that would inure to that person's benefit from: | 0007| (1) any entity seeking to supply equipment, | 0008| materials or services for use in the conduct or regulation of | 0009| electronic games; | 0010| (2) any applicant for a license or racetrack | 0011| license; or | 0012| (3) any vendor, licensee or racetrack licensee. | 0013| C. No person seeking to supply equipment, materials | 0014| or services for use in the conduct or regulation of electronic | 0015| games, no applicant for a license and no vendor or licensee | 0016| shall offer or give to the members of the board, the committee, | 0017| the commission or the regulation and licensing department any | 0018| gift, gratuity or other thing of value that would inure to the | 0019| recipient's personal benefit. | 0020| D. For purposes of this section: | 0021| (1) "gift, gratuity or other thing of value" | 0022| does not include the provision of a breakfast, luncheon, dinner | 0023| or other refreshment consisting of food or beverage provided for | 0024| immediate consumption; and | 0025| (2) "other restricted person" means anyone | 0001| living in the same household as the board member, a member of | 0002| the committee, a member of the commission, the superintendent of | 0003| regulation and licensing or any administrative personnel or | 0004| security personnel directly involved in administering or | 0005| overseeing the Horse Racing Industry Enhancement Act. | 0006| E. The board, commission and regulation and | 0007| licensing department shall comply with all state laws applicable | 0008| to ethics in government, conflict of interest and financial | 0009| disclosure. | 0010| F. Anyone who violates this section may be removed | 0011| from his position after notice and a hearing before the board, | 0012| committee, commission or regulation and licensing department, as | 0013| applicable. | 0014| Section 19. [NEW MATERIAL] APPLICATION OF STATE | 0015| REVENUES FROM ELECTRONIC GAMES--STATE GAMING FUND ESTABLISHED--DISTRIBUTIONS.-- | 0016| A. The "state gaming fund" is established as a | 0017| separate fund within the state treasury. The fund consists of | 0018| all revenue received from electronic games and interest accrued | 0019| thereon, license and application fees under the Horse Racing | 0020| Industry Enhancement Act and all money credited to the fund from | 0021| any other fund or source under law, except as otherwise provided | 0022| in the Horse Racing Industry Enhancement Act. | 0023| B. Money in the state gaming fund may be used only | 0024| for the following purposes and shall be distributed as follows: | 0025| (1) the payment of costs incurred in the | 0001| operation and administration of electronic games, including any | 0002| fees paid to a vendor; | 0003| (2) five percent of the balance shall be | 0004| distributed: | 0005| (a) among municipalities in the same | 0006| proportion as the revenue raised pursuant to Subsection D of | 0007| Section 30 of the Horse Racing Industry Enhancement Act from | 0008| racetrack licensees located within a municipality bears to the | 0009| total revenue raised in the state from all racetrack licensees; | 0010| and | 0011| (b) among counties in the same proportion | 0012| as the revenue raised pursuant to Subsection D of Section 30 of | 0013| the Horse Racing Industry Enhancement Act from racetrack | 0014| licensees located in a county outside the boundaries of any | 0015| municipality bears to the total revenue raised in the state from | 0016| all racetrack licensees; and | 0017| (3) the balance shall be paid into the general | 0018| fund. | 0019| Section 20. [NEW MATERIAL] PROCUREMENT OF GOODS OR | 0020| SERVICES--POWERS--LIMITATION.--The superintendent of regulation | 0021| and licensing, subject to the approval of the board, shall enter | 0022| into all contracts for procurement of goods and services | 0023| required by the board to carry out its duties and | 0024| responsibilities under the Horse Racing Industry Enhancement | 0025| Act. | 0001| Section 21. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--DISCLOSURE REQUIRED--CONTRACT APPROVAL--REQUIREMENTS.-- | 0002| A. The board shall request proposals for major | 0003| procurements by the board for effectuating the purpose of the | 0004| Horse Racing Industry Enhancement Act. No contract for a major | 0005| procurement may be assigned by a vendor except by a written | 0006| agreement approved by the board. | 0007| B. The board may require major procurement vendors | 0008| to disclose information to enable the board to review and | 0009| evaluate the responses to the requests for proposals on the | 0010| basis of competence, background, integrity, character and nature | 0011| of the ownership and control of vendors and to ensure compliance | 0012| with the provisions of the Horse Racing Industry Enhancement | 0013| Act. | 0014| C. The board shall investigate, as part of the | 0015| process for analyzing responses to requests for proposals for | 0016| any major procurement, the financial responsibility, security | 0017| and integrity of any party whose proposal is under final | 0018| consideration. The board shall require a background | 0019| investigation of any person with a substantial interest, as | 0020| defined by the board, in a party whose proposal is under final | 0021| consideration. Such background investigation may include credit | 0022| checks, police record checks, conviction record checks, national | 0023| and statewide criminal records clearinghouse checks and | 0024| fingerprint checks. Each party whose proposal is under final | 0025| consideration shall pay the costs of that party's background | 0001| investigation. | 0002| D. No major procurement with any vendor shall be | 0003| entered into if any person with a substantial interest, as | 0004| defined by the board, in the vendor has been convicted of a | 0005| felony. | 0006| E. A vendor shall report any arrest for or | 0007| conviction of a felony for any person with a substantial | 0008| interest in that vendor to the board within ten days of such | 0009| arrest or conviction. | 0010| F. No contract shall be approved by the board unless | 0011| the vendor has complied with this section. Any contract entered | 0012| into with a vendor who has not complied with this section shall | 0013| be void. | 0014| G. This section shall be construed broadly and | 0015| liberally to achieve the end of full disclosure of all | 0016| information necessary to allow for a full, complete and ongoing | 0017| evaluation by the board of the competence, integrity, | 0018| background, character and nature of the ownership and control of | 0019| vendors for major procurements. | 0020| Section 22. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--PERFORMANCE BOND.-- Each vendor for a major procurement shall | 0021| post a performance bond with the board, using a surety | 0022| acceptable to the board, in consultation with the superintendent | 0023| of insurance in an amount equal to the full amount estimated to | 0024| be paid annually to the vendor under the contract. Nothing in | 0025| the Horse Racing Industry Enhancement Act shall be construed to | 0001| restrict the authority of the board to specify liquidated or | 0002| other damages in contracts with vendors. | 0003| Section 23. [NEW MATERIAL] LICENSING.-- | 0004| A. No person may act as a manufacturer or | 0005| distributor without first obtaining an appropriate license | 0006| pursuant to the Horse Racing Industry Enhancement Act. | 0007| B. Any racetrack may apply to become a racetrack | 0008| licensee. A racetrack that has received approval from the | 0009| commission for specific race days in fiscal year 1996 may apply | 0010| for and receive a temporary racetrack licensee's license upon | 0011| payment of the license fee required for regular licensure. The | 0012| temporary license shall expire six months from the date of | 0013| issuance unless otherwise extended by the board for good cause. | 0014| Unless the racetrack licensee has completed the application for | 0015| and has been granted a regular racetrack licensee's license on | 0016| or before the date of expiration of the temporary license, the | 0017| racetrack licensee is not entitled to carry on electronic gaming | 0018| operations on the racetrack licensee's premises after that date | 0019| until the racetrack licensee applies for and receives a regular | 0020| license. A temporary racetrack licensee is entitled to have the | 0021| license fee it has paid credited as payment of its regular | 0022| racetrack license fee to cover the period of one year from the | 0023| date of issuance of the temporary racetrack license. | 0024| C. The board and commission shall adopt regulations | 0025| concerning the licensing criteria. The board shall require | 0001| licensees who are not distributors or manufacturers, or | 0002| affiliates or employees of distributors or manufacturers, to be | 0003| licensed by the commission and shall delegate licensing of those | 0004| persons to the commission. The regulations shall require | 0005| consideration of such factors as the applicant's financial | 0006| responsibility, security of the applicant's place of business or | 0007| activity, accessibility to the public and the applicant's | 0008| integrity and reputation. It shall be unlawful to consider | 0009| political affiliation, activities or monetary contributions to | 0010| political organizations or candidates for any public office. | 0011| D. Applicants for licensure, renewal or amendment | 0012| shall pay a fee to be submitted with the application not to | 0013| exceed the following: | 0014| (1) racetrack license, twenty-five dollars | 0015| ($25.00) annually for each electronic gaming machine; | 0016| (2) distributors, five thousand dollars | 0017| ($5,000) for initial licensure and two thousand five hundred | 0018| dollars ($2,500) for annual renewal; | 0019| (3) manufacturers, ten thousand dollars | 0020| ($10,000) for initial licensure and five thousand dollars | 0021| ($5,000) for annual renewal; and | 0022| (4) other licenses as defined by the board or | 0023| commission, at fee amounts determined by the board or | 0024| commission. | 0025| E. Licenses and racetrack licenses issued pursuant | 0001| to the Horse Racing Industry Enhancement Act shall be valid for | 0002| one year. Upon application for renewal, the board may require | 0003| such additional information as the board deems necessary to | 0004| evaluate the application. | 0005| F. The board shall require background investigations | 0006| of any person with a substantial interest, as defined by the | 0007| board, in the applicant. Such background investigations may | 0008| include, but not be limited to, credit checks, police record | 0009| checks, conviction record checks, national and statewide | 0010| criminal records clearinghouse checks and fingerprint checks. | 0011| The applicant shall pay the costs of the background | 0012| investigation. | 0013| G. No license or racetrack license shall be granted | 0014| to an applicant if any person with a substantial interest, as | 0015| defined in the regulations, in the applicant has, within ten | 0016| years prior to the application, been convicted of a crime, other | 0017| than a petty misdemeanor, involving gambling, moral turpitude, | 0018| fraud or theft or a felony. | 0019| H. The licensee or racetrack licensee shall report | 0020| any arrest for or conviction of a felony of any person with a | 0021| substantial interest in that licensee or racetrack licensee to | 0022| the board within ten days of such arrest or conviction. | 0023| I. No license or racetrack license shall be granted | 0024| by the board unless the applicant complies with this section. | 0025| Any license or racetrack license granted to an applicant who has | 0001| not complied with this section shall be void. | 0002| J. The burden of proving qualifications for | 0003| licensure is on the applicant. | 0004| K. If an application is denied, the board shall | 0005| prepare and make available to the applicant a written decision | 0006| upon which the order denying the application is based. | 0007| L. The holder of any license or racetrack license | 0008| does not acquire any vested interest or right in or under the | 0009| license, and a license issued pursuant to the Horse Racing | 0010| Industry Enhancement Act is a revocable privilege. | 0011| M. This section shall be construed broadly and | 0012| liberally to achieve the end of full disclosure of all | 0013| information necessary to allow for a full and complete | 0014| evaluation by the board of an applicant's fitness. | 0015| N. The license fees paid pursuant to this section in | 0016| fiscal years 1997 and 1998 are appropriated one-half to the | 0017| regulation and licensing department and board and one-half to | 0018| the commission for expenditure in that fiscal year to pay the | 0019| start-up costs incurred in establishing a regulatory system for | 0020| the gaming activities permitted pursuant to the Horse Racing | 0021| Industry Enhancement Act. | 0022| Section 24. [NEW MATERIAL] REVOCATION--CONTRACT--LICENSE.-- | 0023| A. Failure to comply with any provision of the Horse | 0024| Racing Industry Enhancement Act or the rules and regulations | 0025| promulgated thereunder shall be sufficient cause for suspension | 0001| or termination of a procurement contract; provided, however, | 0002| that suspension or termination of a procurement contract shall | 0003| not relieve the vendor from prosecution for any of the alleged | 0004| violations or from imposition of fines and penalties. | 0005| B. If a licensee or racetrack licensee fails to | 0006| respond to a written request from the board or violates any | 0007| provision of the Horse Racing Industry Enhancement Act or any | 0008| rule or regulation promulgated thereunder, the license of the | 0009| offending licensee or racetrack licensee may be suspended, | 0010| canceled or revoked by the board; provided, however, that the | 0011| licensee or racetrack licensee shall have reasonable notice and | 0012| opportunity to be heard before the board before suspension, | 0013| cancellation, limitation or revocation; and provided, further, | 0014| that the suspension, cancellation, limitation or revocation of | 0015| any license shall not relieve the licensee or racetrack licensee | 0016| from prosecution for any of the alleged violations or from | 0017| imposition of fines and penalties. | 0018| C. The board may levy a fine against a vendor, | 0019| licensee or racetrack licensee for violation of the provisions | 0020| of the Horse Racing Industry Enhancement Act or regulations | 0021| promulgated pursuant to that act, not to exceed ten thousand | 0022| dollars ($10,000) per violation; provided, however, that the | 0023| licensee or racetrack licensee shall have a reasonable | 0024| opportunity to be heard by the board before the imposition of | 0025| such fine. Nothing in this section shall limit the board from | 0001| pursuing contractual remedies, including assessing penalties, | 0002| pursuant to the terms of a contract with a vendor. | 0003| Section 25. [NEW MATERIAL] EMERGENCY ORDERS OF BOARD.-- | 0004| A. The board may issue an emergency order for | 0005| suspension or limitation of a license or racetrack license. | 0006| B. An emergency order may be issued only when the | 0007| board finds that: | 0008| (1) any licensee or racetrack licensee has | 0009| failed to report, pay or truthfully account for and pay over any | 0010| fee or money imposed by or owed under the provisions of the | 0011| Horse Racing Industry Enhancement Act or attempted in any manner | 0012| to evade or defeat any such fee or debt or payment thereof; | 0013| (2) any licensee or racetrack licensee has | 0014| violated any provision of the Horse Racing Industry Enhancement | 0015| Act and the violation impairs the security of electronic gaming | 0016| activities; or | 0017| (3) any licensee or racetrack licensee is | 0018| convicted of a crime, not a petty misdemeanor, involving | 0019| gambling, moral turpitude, fraud, theft or a felony. | 0020| C. The emergency order shall set forth the grounds | 0021| upon which it is issued, including a statement of facts | 0022| constituting the alleged emergency necessitating such action. | 0023| D. An emergency order may be issued only with the | 0024| approval of and upon signature by three members of the board. | 0025| E. The emergency order is effective immediately upon | 0001| issuance and service upon the licensee or racetrack licensee or | 0002| resident agent of the licensee or racetrack licensee. The | 0003| emergency order remains effective until further order of the | 0004| board or final disposition of the case. | 0005| F. The licensee or racetrack licensee may request | 0006| that a hearing be held by the board regarding the issuance and | 0007| maintenance of the emergency order. The board shall then hold a | 0008| hearing within twenty days. | 0009| Section 26. [NEW MATERIAL] CENTRAL COMPUTER SYSTEM.--Each electronic gaming machine shall be linked via a | 0010| communications network to a central computer system or systems | 0011| that monitor the play or operation of each electronic gaming | 0012| machine and will provide financial reporting information as | 0013| required by the board. If only one central computer system is | 0014| required by the board, that central computer system shall not | 0015| limit participation to only one manufacturer of electronic | 0016| gaming machines by either cost of implementing the necessary | 0017| program modifications to communicate or the inability to | 0018| communicate with the central computer system. | 0019| Section 27. [NEW MATERIAL] RACETRACK LICENSEE--FUNDS--CONFLICTS--CHILD SUPPORT.-- | 0020| A. The board may require each racetrack licensee to | 0021| deposit all money owed to the state under the Horse Racing | 0022| Industry Enhancement Act into financial institutions designated | 0023| by the board for credit to the state gaming fund. | 0024| B. The board may authorize the electronic transfer | 0025| of funds, other than funds derived from off-track betting, owed | 0001| to the state under the Horse Racing Industry Enhancement Act | 0002| from the accounts of racetrack licensees to the state gaming | 0003| fund. | 0004| C. No electronic gaming machine shall be played by | 0005| and no prize shall be awarded to any racetrack licensee or | 0006| business that is engaged in supplying equipment, supplies or | 0007| services being used in the operation of electronic gaming | 0008| machines or any officer, director, employee or owner of such | 0009| licensee or business unless authorized in writing by the board | 0010| for research purposes. However, no prize may be awarded as a | 0011| result of play for research purposes. | 0012| D. The superintendent of regulation and licensing | 0013| shall investigate the feasibility of implementing a policy to | 0014| recover delinquent child support payments or outstanding state | 0015| tax liability from payment of electronic gaming prizes in excess | 0016| of six hundred dollars ($600). If the board determines that | 0017| such a policy is feasible, the superintendent of regulation and | 0018| licensing shall implement a policy to credit any electronic | 0019| gaming prize first against any delinquent child support owed by | 0020| the winner and then against any outstanding state tax liability | 0021| owed by the winner and shall pay the balance of the prize to the | 0022| winner. The policy shall ensure that any person who | 0023| investigates the money owed by the prize winner shall have no | 0024| liability to a person to whom a delinquent child support payment | 0025| may be owed, to the human services department or to the taxation | 0001| and revenue department, if the investigator fails to discover | 0002| that a winner owes money that is to be applied according to the | 0003| policy. | 0004| Section 28. [NEW MATERIAL] REQUIREMENTS FOR LICENSED | 0005| ELECTRONIC GAMING MACHINES.-- | 0006| A. Each electronic gaming machine licensed under the | 0007| Horse Racing Industry Enhancement Act shall fulfill as a minimum | 0008| all requirements imposed by the state of Nevada to licensure and | 0009| shall: | 0010| (1) offer only games authorized by the | 0011| commission; | 0012| (2) not have any means of manipulation that | 0013| affects the random probabilities of winning; | 0014| (3) have one or more mechanisms that accept | 0015| coins, tokens or cash in the form of bills. The mechanisms | 0016| shall be designed to prevent obtaining credits without paying by | 0017| any form of tampering. If such attempts involve physical | 0018| tampering, the machine shall suspend itself from operation until | 0019| reset; | 0020| (4) have nonresettable meters that keep a | 0021| permanent record of all coins, tokens and cash inserted into the | 0022| machine and all awards of prizes, whether in coin, tokens or | 0023| cash; | 0024| (5) have accounting software that keeps an | 0025| electronic record that includes but is not limited to the | 0001| following: | 0002| (a) total coins, tokens and cash inserted | 0003| into the machine; | 0004| (b) the value of coins, tokens or cash | 0005| paid to players; and | 0006| (c) the winning percentage credited | 0007| players of each electronic game; and | 0008| (6) be linked via a communications network to a | 0009| central computer system or systems designated by the board to | 0010| provide security and financial information as required by the | 0011| board. | 0012| B. The board shall examine prototypes of electronic | 0013| gaming machines of licensed manufacturers. The board shall | 0014| require the manufacturer seeking the examination and approval of | 0015| any electronic gaming machine or associated equipment to pay the | 0016| anticipated actual costs of the examination in advance and, | 0017| after the completion of the examination, shall refund | 0018| overpayments or charge and collect amounts sufficient to | 0019| reimburse the board for underpayments of actual costs. The | 0020| board may contract for the examination of electronic gaming | 0021| machines and associated equipment as required by this section. | 0022| C. Each electronic gaming machine shall be licensed | 0023| by the board before placement or operation on the premises of a | 0024| racetrack licensee. Each machine shall have the license | 0025| prominently displayed thereon in such a way that an attempt at | 0001| alteration will result in a mutilation of the license. Any | 0002| machine that does not display the license required by this | 0003| section is contraband and a public nuisance subject to | 0004| confiscation by any law enforcement or peace officer. | 0005| Section 29. [NEW MATERIAL] AGE LIMIT--RULES FOR | 0006| PLACEMENT OF ELECTRONIC GAMING MACHINES.-- | 0007| A. No person under twenty-one years of age may play | 0008| an electronic gaming machine licensed under the Horse Racing | 0009| Industry Enhancement Act. | 0010| B. Electronic gaming machines may only be operated | 0011| in an area restricted to persons twenty-one years of age or | 0012| older. An establishment may erect a permanent physical barrier | 0013| to allow for multiple uses of the premises by persons of all | 0014| ages. The entrance to the area where electronic gaming machines | 0015| are located shall display a sign that the premises are | 0016| restricted to persons twenty-one years or older. Subject to the | 0017| prohibition of Subsection A of this section, and except as | 0018| otherwise permitted by the commission, persons under the age of | 0019| twenty-one shall not enter the premises where electronic gaming | 0020| machines are located unless they are accompanied by a parent, | 0021| guardian or spouse aged twenty-one or older. | 0022| Section 30. [NEW MATERIAL] RACETRACK LICENSEES--ELECTRONIC GAMING MACHINES--DISTRIBUTION.-- | 0023| A. The number of electronic gaming machines | 0024| permitted upon the premises of a racetrack licensee will be that | 0025| number requested by the racetrack licensee and so designated by | 0001| the commission. | 0002| B. Nothing in the Horse Racing Industry Enhancement | 0003| Act shall prevent a racetrack licensee from leasing or owning | 0004| the electronic gaming machines in operation in that racetrack | 0005| licensee's facilities or purchasing or leasing electronic gaming | 0006| machines directly from a licensed manufacturer, provided that | 0007| the electronic gaming machines comply with the Horse Racing | 0008| Industry Enhancement Act and regulations promulgated thereunder. | 0009| C. A racetrack licensee may operate electronic | 0010| gaming machines at its facilities if approved by the commission, | 0011| provided that: | 0012| (1) effective for a live licensed race meet | 0013| beginning after January 1, 1997, the licensed racetrack conducts | 0014| live racing an average of four days per week during such race | 0015| meet; and | 0016| (2) the commission may waive the live race day | 0017| requirements of this subsection for good cause shown with due | 0018| regard for the interests of the licensed racetrack, the horsemen | 0019| and the breeders. | 0020| D. Licensed racetracks shall pay: | 0021| (1) ten percent of the net machine income of | 0022| each licensed electronic gaming machine, of which: | 0023| (a) the amount due as gross receipts tax | 0024| under the Gross Receipts and Compensating Tax Act shall be paid | 0025| to the state general fund; | 0001| (b) one-fourth of one percent shall be | 0002| paid for addictive behavior programs into an account | 0003| administered by the board; and | 0004| (c) the balance shall be paid in lieu of | 0005| all other taxes, including but not limited to income taxes, to | 0006| the state gaming fund in a manner directed by the board; | 0007| (2) twenty and eighteen hundredths percent of | 0008| the net machine income of each electronic gaming machine to the | 0009| New Mexico horsemen's association, of which percentage one-fourth of one percent will be distributed to the New Mexico | 0010| horsemen's association benevolence fund and the balance will be | 0011| distributed to the appropriate New Mexico purse enhancement | 0012| funds; and | 0013| (3) four and eighty-two hundredths percent to | 0014| the New Mexico horse breeders' association to be divided equally | 0015| among the New Mexico breeder incentive fund and each New Mexico | 0016| bred purse enhancement fund. | 0017| E. Racetrack licensees shall submit an annual | 0018| accounting of distributions made pursuant to Paragraph (2) of | 0019| Subsection D of this section to the board within ninety days of | 0020| the end of the racetrack licensee's fiscal year each year. | 0021| Section 31. [NEW MATERIAL] PROHIBITED ACTS--VIOLATIONS--PENALTIES.-- | 0022| A. It is a misdemeanor for a racetrack licensee to | 0023| knowingly allow any person under twenty-one years of age to play | 0024| an electronic gaming machine. | 0025| B. It is a misdemeanor for a person under twenty-one | 0001| years of age to play an electronic gaming machine. | 0002| C. It is a misdemeanor to release any information | 0003| obtained through a background investigation performed by the | 0004| board without the prior written consent of the subject of the | 0005| investigation except as provided otherwise in the Horse Racing | 0006| Industry Enhancement Act. | 0007| D. It is a fourth degree felony to tamper with an | 0008| electronic gaming machine with intent to interfere with the | 0009| proper operation of such machine. | 0010| E. It is a fourth degree felony to tamper with a | 0011| voucher or electronic gaming machine with intent to manipulate | 0012| the outcome or payoff of an electronic gaming machine. | 0013| F. It is a fourth degree felony to knowingly possess | 0014| an unlicensed electronic gaming machine. | 0015| G. It is a fourth degree felony to falsify | 0016| information provided to the board for purposes of applying for a | 0017| contract or a license with the board or for purposes of | 0018| completing a background investigation pursuant to the Horse | 0019| Racing Industry Enhancement Act. | 0020| H. Any person convicted of a violation of | 0021| Subsections A through C of this section shall be sentenced | 0022| pursuant to the provisions of Section 31-19-1 NMSA 1978. Any | 0023| person convicted of a violation of Subsections D through G of | 0024| this section shall be sentenced pursuant to the provisions of | 0025| Section 31-18-15 NMSA 1978. | 0001| Section 32. [NEW MATERIAL] DISTRICT COURT OF SANTA FE | 0002| COUNTY--JURISDICTION--APPEAL.--The district court of Santa Fe | 0003| county shall have exclusive original jurisdiction of all legal | 0004| proceedings, except criminal actions, related to the | 0005| administration, enforcement or fulfillment of the | 0006| responsibilities, duties or functions of the board and | 0007| commission under the Horse Racing Industry Enhancement Act. An | 0008| aggrieved party, including a party subject to a fine, may seek | 0009| review of an order or decision of the board or commission by | 0010| filing an appeal with the district court of Santa Fe county | 0011| within thirty days after the date of such order or decision. | 0012| Section 33. [NEW MATERIAL] EXEMPTION FROM LOCAL TAXES.--Electronic games conducted pursuant to the Horse Racing | 0013| Industry Enhancement Act shall be exempt from any local tax | 0014| levied or assessed by any political subdivision having the power | 0015| to levy, assess or collect such tax. | 0016| Section 34. [NEW MATERIAL] LOCAL LAWS PREEMPTED--APPLICABILITY OF OTHER LAWS--SEVERABILITY.-- | 0017| A. The Horse Racing Industry Enhancement Act shall | 0018| be applicable and uniform throughout the state and all political | 0019| subdivisions, and no local authority shall enact any ordinances, | 0020| rules or regulations in conflict with the provisions of that | 0021| act. | 0022| B. If any provision of the Horse Racing Industry | 0023| Enhancement Act or the application thereof to any person or | 0024| circumstance is held invalid, such invalidity shall not affect | 0025| other provisions or applications of that act that can be given | 0001| effect without the invalid provision or application, and to this | 0002| end the provisions of that act are severable. | 0003| Section 35. [NEW MATERIAL] OFF-TRACK PARI-MUTUEL | 0004| WAGERING.-- | 0005| A. Off-track betting at licensed OTB facilities in | 0006| this state is declared to be legal. | 0007| B. The commission is authorized and empowered to | 0008| adopt, repeal and amend such rules and regulations as it may | 0009| deem necessary or appropriate to regulate and govern the conduct | 0010| of off-track betting so as to ensure the integrity, reliability | 0011| and security of off-track betting and for the protection of the | 0012| public, including, without limitation, regulations covering: | 0013| (1) grant, refusal and revocation of licenses | 0014| for OTB facilities, persons holding a direct or indirect | 0015| interest in or control of those facilities, and persons | 0016| supplying goods or services to those facilities; provided that | 0017| no OTB facility may be licensed to conduct off-track betting | 0018| unless it is doing so as an extension of a live race meet | 0019| conducted at a licensed New Mexico racetrack and receives, | 0020| except as otherwise permitted by the commission, the simulcast | 0021| of all live races from licensed race meets; | 0022| (2) inspection and visitation at reasonable | 0023| intervals at OTB facilities; | 0024| (3) the governing, restricting or regulating of | 0025| operation of off-track betting and all equipment used in | 0001| connection with it; | 0002| (4) the approval of all contracts and | 0003| agreements related to off-track betting or an OTB facility; | 0004| (5) supervision and regulation of the operation | 0005| of an entity formed or joint agreement entered into at the | 0006| discretion of one or more racetracks to construct, contract or | 0007| subcontract for, establish or operate one or more OTB | 0008| facilities, the formation of such an entity or the entering into | 0009| of such an agreement being hereby specifically authorized; and | 0010| (6) any and all such other matters as the | 0011| commission may deem necessary or appropriate to accomplish the | 0012| objectives of this section. | 0013| C. For purposes of this section, the commission | 0014| shall have all the powers and authority conferred upon it by the | 0015| Horse Racing Act as if those powers and authority were restated | 0016| in this section. | 0017| D. Distribution of the gross amount wagered at an | 0018| OTB facility will be made as follows: | 0019| (1) with respect to the gross amount wagered as | 0020| off-track betting on horse races run live in this state, after | 0021| deductions by the racetrack, racetracks or racetrack entity | 0022| operating the OTB facility as provided in Subsection H of | 0023| Section 60-1-10 NMSA 1978, except that no deduction shall be | 0024| taken pursuant to Paragraph (1) of Subsection B of Section | 0025| 60-1-15 NMSA 1978, net retainage will be distributed to the | 0001| racetrack holding the live race meet upon which off-track | 0002| betting was wagered for distribution in accordance with that | 0003| subsection; and | 0004| (2) with respect to the gross amount wagered as | 0005| off-track betting on horse races run live other than in this | 0006| state, after deductions by the racetrack, racetracks or | 0007| racetrack entity operating the OTB facility as provided in | 0008| Subsection H of Section 60-1-10 NMSA 1978, except that the | 0009| deduction in Paragraph (4) of that subsection for expenses | 0010| incurred to engage in simulcasting shall be one and one-half | 0011| percent and no deduction shall be taken pursuant to Paragraph | 0012| (1) of Subsection B of Section 60-1-15 NMSA 1978, each racetrack | 0013| will receive a proportion of net retainage equal to the net | 0014| retainage multiplied by the ratio of the number of live race | 0015| days run at that racetrack to the total number of live race days | 0016| run in this state during the preceding state fiscal year, the | 0017| net retainage so received by a racetrack being then distributed | 0018| as provided by Subsection H of Section 60-1-10 NMSA 1978. | 0019| Section 36. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0020| Chapter 91, Section 1, as amended) is amended to read: | 0021| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0022| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0023| A. In recognition of the fact that a representative | 0024| government is dependent upon an informed electorate, it is | 0025| declared to be public policy of this state that all persons are | 0001| entitled to the greatest possible information regarding the | 0002| affairs of government and the official acts of those officers | 0003| and employees who represent them. The formation of public | 0004| policy or the conduct of business by vote shall not be conducted | 0005| in closed meeting. All meetings of any public body except the | 0006| legislature and the courts shall be public meetings, and all | 0007| persons so desiring shall be permitted to attend and listen to | 0008| the deliberations and proceedings. Reasonable efforts shall be | 0009| made to accommodate the use of audio and video recording | 0010| devices. | 0011| B. All meetings of a quorum of members of any board, | 0012| commission, administrative adjudicatory body or other | 0013| policymaking body of any state agency, any agency or authority | 0014| of any county, municipality, district or any political | 0015| subdivision, held for the purpose of formulating public policy, | 0016| including the development of personnel policy, rules, | 0017| regulations or ordinances, discussing public business or for the | 0018| purpose of taking any action within the authority of or the | 0019| delegated authority of any board, commission or other | 0020| policymaking body are declared to be public meetings open to the | 0021| public at all times, except as otherwise provided in the | 0022| constitution of New Mexico or the Open Meetings Act. No public | 0023| meeting once convened that is otherwise required to be open | 0024| pursuant to the Open Meetings Act shall be closed or dissolved | 0025| into small groups or committees for the purpose of permitting | 0001| the closing of the meeting. | 0002| C. If otherwise allowed by law or rule of the public | 0003| body, a member of a public body may participate in a meeting of | 0004| the public body by means of a conference telephone or other | 0005| similar communications equipment when it is otherwise difficult | 0006| or impossible for the member to attend the meeting in person, | 0007| provided that each member participating by conference telephone | 0008| can be identified when speaking, all participants are able to | 0009| hear each other at the same time and members of the public | 0010| attending the meeting are able to hear any member of the public | 0011| body who speaks during the meeting. | 0012| D. Any meetings at which the discussion or adoption | 0013| of any proposed resolution, rule, regulation or formal action | 0014| occurs and at which a majority or quorum of the body is in | 0015| attendance, and any closed meetings, shall be held only after | 0016| reasonable notice to the public. The affected body shall | 0017| determine at least annually in a public meeting what notice for | 0018| a public meeting is reasonable when applied to that body. That | 0019| notice shall include broadcast stations licensed by the federal | 0020| communications commission and newspapers of general circulation | 0021| that have provided a written request for such notice. | 0022| E. A public body may recess and reconvene a meeting | 0023| to a day subsequent to that stated in the meeting notice if, | 0024| prior to recessing, the public body specifies the date, time and | 0025| place for continuation of the meeting, and, immediately | 0001| following the recessed meeting, posts notice of the date, time | 0002| and place for the reconvened meeting on or near the door of the | 0003| place where the original meeting was held and in at least one | 0004| other location appropriate to provide public notice of the | 0005| continuation of the meeting. Only matters appearing on the | 0006| agenda of the original meeting may be discussed at the | 0007| reconvened meeting. | 0008| F. Meeting notices shall include an agenda | 0009| containing a list of specific items of business to be discussed | 0010| or transacted at the meeting or information on how the public | 0011| may obtain a copy of such an agenda. Except in the case of an | 0012| emergency, the agenda shall be available to the public at least | 0013| twenty-four hours prior to the meeting. Except for emergency | 0014| matters, a public body shall take action only on items appearing | 0015| on the agenda. For purposes of this subsection, an "emergency" | 0016| refers to unforeseen circumstances that, if not addressed | 0017| immediately by the public body, will likely result in injury or | 0018| damage to persons or property or substantial financial loss to | 0019| the public body. | 0020| G. The board, commission or other policymaking body | 0021| shall keep written minutes of all its meetings. The minutes | 0022| shall include at a minimum the date, time and place of the | 0023| meeting, the names of members in attendance and those absent, | 0024| the substance of the proposals considered and a record of any | 0025| decisions and votes taken that show how each member voted. All | 0001| minutes are open to public inspection. Draft minutes shall be | 0002| prepared within ten working days after the meeting and shall be | 0003| approved, amended or disapproved at the next meeting where a | 0004| quorum is present. Minutes shall not become official until | 0005| approved by the policymaking body. | 0006| H. The provisions of Subsections A, B and G of this | 0007| section do not apply to: | 0008| (1) meetings pertaining to issuance, | 0009| suspension, renewal or revocation of a license, except that a | 0010| hearing at which evidence is offered or rebutted shall be open. | 0011| All final actions on the issuance, suspension, renewal or | 0012| revocation of a license shall be taken at an open meeting; | 0013| (2) limited personnel matters; provided that | 0014| for purposes of the Open Meetings Act, "limited personnel | 0015| matters" means the discussion of hiring, promotion, demotion, | 0016| dismissal, assignment or resignation of or the investigation or | 0017| consideration of complaints or charges against any individual | 0018| public employee; provided further that this subsection is not to | 0019| be construed as to exempt final actions on personnel from being | 0020| taken at open public meetings, nor does it preclude an aggrieved | 0021| public employee from demanding a public hearing. Judicial | 0022| candidates interviewed by any commission shall have the right to | 0023| demand an open interview; | 0024| (3) deliberations by a public body in | 0025| connection with an administrative adjudicatory proceeding. For | 0001| purposes of this paragraph, an "administrative adjudicatory | 0002| proceeding" means a proceeding brought by or against a person | 0003| before a public body in which individual legal rights, duties or | 0004| privileges are required by law to be determined by the public | 0005| body after an opportunity for a trial-type hearing. Except as | 0006| otherwise provided in this section, the actual administrative | 0007| adjudicatory proceeding at which evidence is offered or rebutted | 0008| and any final action taken as a result of the proceeding shall | 0009| occur in an open meeting; | 0010| (4) the discussion of personally identifiable | 0011| information about any individual student, unless the student, | 0012| his parent or guardian requests otherwise; | 0013| (5) meetings for the discussion of bargaining | 0014| strategy preliminary to collective bargaining negotiations | 0015| between the policymaking body and a bargaining unit representing | 0016| the employees of that policymaking body and collective | 0017| bargaining sessions at which the policymaking body and the | 0018| representatives of the collective bargaining unit are present; | 0019| (6) that portion of meetings at which a | 0020| decision concerning purchases in an amount exceeding two | 0021| thousand five hundred dollars ($2,500) that can be made only | 0022| from one source and that portion of meetings at which the | 0023| contents of competitive sealed proposals solicited pursuant to | 0024| the Procurement Code are discussed during the contract | 0025| negotiation process. The actual approval of purchase of the | 0001| item or final action regarding the selection of a contractor | 0002| shall be made in an open meeting; | 0003| (7) meetings subject to the attorney-client | 0004| privilege pertaining to threatened or pending litigation in | 0005| which the public body is or may become a participant; | 0006| (8) meetings for the discussion of the | 0007| purchase, acquisition or disposal of real property or water | 0008| rights by the public body; [and] | 0009| (9) those portions of meetings of committees or | 0010| boards of public hospitals that receive less than fifty percent | 0011| of their operating budget from direct public funds and | 0012| appropriations where strategic and long-range business plans are | 0013| discussed; and | 0014| (10) those portions of meetings of the gaming | 0015| board held pursuant to the Horse Racing Industry Enhancement Act | 0016| during which are discussed security and investigative | 0017| information that is otherwise permitted by law to be | 0018| confidential, proprietary information furnished as part of a | 0019| major procurement proposal or matters made confidential pursuant | 0020| to Section 13 of the Horse Racing Industry Enhancement Act. | 0021| I. If any meeting is closed pursuant to the | 0022| exclusions contained in Subsection H of this section, the | 0023| closure: | 0024| (1) if made in an open meeting, shall be | 0025| approved by a majority vote of a quorum of the policymaking | 0001| body; the authority for the closure and the subject to be | 0002| discussed shall be stated with reasonable specificity in the | 0003| motion calling for the vote on a closed meeting; the vote shall | 0004| be taken in an open meeting; and the vote of each individual | 0005| member shall be recorded in the minutes. Only those subjects | 0006| announced or voted upon prior to closure by the policymaking | 0007| body may be discussed in a closed meeting; and | 0008| (2) if called for when the policymaking body is | 0009| not in an open meeting, shall not be held until public notice, | 0010| appropriate under the circumstances, stating the specific | 0011| provision of the law authorizing the closed meeting and stating | 0012| with reasonable specificity the subject to be discussed is given | 0013| to the members and to the general public. | 0014| J. Following completion of any closed meeting, the | 0015| minutes of the open meeting that was closed or the minutes of | 0016| the next open meeting if the closed meeting was separately | 0017| scheduled shall state that the matters discussed in the closed | 0018| meeting were limited only to those specified in the motion for | 0019| closure or in the notice of the separate closed meeting. This | 0020| statement shall be approved by the public body under Subsection | 0021| G of this section as part of the minutes." | 0022| Section 37. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0023| Chapter 303, Section 19-1, as amended) is amended to read: | 0024| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0025| Chapter 30, Article 19 NMSA 1978: | 0001| A. "antique gambling device" means a gambling device | 0002| twenty-five years of age or older and substantially in original | 0003| condition that is not used for gambling or commercial gambling | 0004| or located in a gambling place; | 0005| B. "bet" means a bargain in which the parties agree | 0006| that, dependent upon chance, even though accompanied by some | 0007| skill, one stands to win or lose anything of value specified in | 0008| the agreement. A bet does not include: | 0009| (1) bona fide business transactions that are | 0010| valid under the law of contracts, including [without | 0011| limitation]: | 0012| (a) contracts for the purchase or sale, | 0013| at a future date, of securities or other commodities; and | 0014| (b) agreements to compensate for loss | 0015| caused by the happening of the chance, including [without | 0016| limitation] contracts for indemnity or guaranty and life or | 0017| health and accident insurance; | 0018| (2) offers of purses, prizes or premiums to the | 0019| actual contestants in any bona fide contest for the | 0020| determination of skill, speed, strength or endurance or to the | 0021| bona fide owners of animals or vehicles entered in such contest; | 0022| (3) a lottery as defined in this section; or | 0023| (4) betting otherwise permitted by law; | 0024| C. "lottery" means an enterprise [other than] | 0025| excluding both the New Mexico state lottery established and | 0001| operated pursuant to the New Mexico Lottery Act and the | 0002| operation of electronic gaming machines licensed pursuant to the | 0003| Horse Racing Industry Enhancement Act, wherein, for a | 0004| consideration, the participants are given an opportunity to win | 0005| a prize, the award of which is determined by chance, even though | 0006| accompanied by some skill. As used in this subsection, | 0007| "consideration" means anything of pecuniary value required to be | 0008| paid to the promoter in order to participate in such enterprise; | 0009| D. "gambling device" means a contrivance other than | 0010| an electronic gaming machine or other device licensed pursuant | 0011| to the Horse Racing Industry Enhancement Act or other lawfully | 0012| enacted similar act, other than an antique gambling device | 0013| that, for a consideration, affords the player an opportunity to | 0014| obtain anything of value, the award of which is determined by | 0015| chance, even though accompanied by some skill and whether or not | 0016| the prize is automatically paid by the device; and | 0017| E. "gambling place" means any building or tent, any | 0018| vehicle, whether self-propelled or not, or any room within any | 0019| of them, one of whose principal uses is: | 0020| (1) making and settling of bets; | 0021| (2) receiving, holding, recording or forwarding | 0022| bets or offers to bet; | 0023| (3) conducting lotteries; or | 0024| (4) playing gambling devices." | 0025| Section 38. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0001| Chapter 303, Section 19-6, as amended) is amended to read: | 0002| "30-19-6. [PERMISSIVE LOTTERY] PERMITTED ACTIVITIES.-- | 0003| A. Nothing in [Article 19] Chapter 30, Article | 0004| 19 NMSA 1978 shall be construed to apply to any sale or drawing | 0005| of any prize at any fair held in this state for the benefit of | 0006| any church, public library or religious society situate or being | 0007| in this state, or for charitable purposes when all the proceeds | 0008| of [such] the fair shall be expended in this state for the | 0009| benefit of [such] the church, public library, religious | 0010| society or charitable purposes. | 0011| A lottery shall be operated for the benefit of the | 0012| organization or charitable purpose only when the entire proceeds | 0013| of the lottery go to the organization or charitable purpose and | 0014| no part of such proceeds go to any individual member or employee | 0015| thereof. | 0016| B. Nothing in [Article 19] Chapter 30, Article | 0017| 19 NMSA 1978 shall be held to prohibit any bona fide motion | 0018| picture theatre from offering prizes of cash or merchandise for | 0019| advertising purposes, in connection with such business or for | 0020| the purpose of stimulating business, whether or not any | 0021| consideration other than a monetary consideration in excess of | 0022| the regular price of admission is exacted for participation in | 0023| drawings for prizes. | 0024| C. Nothing in [Article 19] Chapter 30, Article | 0025| 19 NMSA 1978 shall be held to apply to any bona fide county | 0001| fair, including fairs for more than one county, which shall have | 0002| been held annually at the same location for at least two years | 0003| and which shall offer prizes of livestock or poultry in | 0004| connection with [such] the fair when the proceeds of | 0005| [such] the drawings shall be used for the benefit of | 0006| [said] the fair. | 0007| D. Nothing in [Article 19] Chapter 30, Article | 0008| 19 NMSA 1978 shall be construed to apply to any lottery | 0009| operated by an organization exempt from the state income tax | 0010| pursuant to Subsection [C] B of Section 7-2-4 NMSA 1978 and | 0011| not subject to the provisions of Subsection A of this section; | 0012| provided that: | 0013| (1) no more than two lotteries shall be | 0014| operated in any year by such an organization; | 0015| (2) all the gross proceeds less the reasonable | 0016| cost of prizes of any lottery operated by such an organization | 0017| shall be expended in the state for the benefit of the | 0018| organization or public purposes; and | 0019| (3) no part of the proceeds of any lottery | 0020| shall go to any individual member or employee of any | 0021| organization except as payment for the purchase of prizes at no | 0022| more than the reasonable retail price. | 0023| E. Nothing in Chapter 30, Article 19 NMSA 1978 | 0024| prohibits or applies to gaming activities permitted pursuant to | 0025| the Horse Racing Industry Enhancement Act." | 0001| Section 39. Section 60-1-3 NMSA 1978 (being Laws 1933, | 0002| Chapter 55, Section 2, as amended by Laws 1989, Chapter 99, | 0003| Section 1 and also by Laws 1989, Chapter 377, Section 1) is | 0004| amended to read: | 0005| "60-1-3. APPLICATION FOR LICENSES--STATE RACING COMMISSION | 0006| CREATED--MEMBERS--TERMS OF OFFICE--VACANCIES--POWERS AND | 0007| DUTIES.-- | 0008| A. Any person, firm, association or corporation | 0009| desiring to hold a horse race or to engage in horse race | 0010| meetings shall apply to the state racing commission for a | 0011| license. | 0012| B. There is created the "state racing commission". | 0013| The state racing commission shall consist of five members, no | 0014| more than three of whom shall be members of the same political | 0015| party. They shall be appointed by the governor, and no less | 0016| than three of them shall be practical breeders of racehorses | 0017| within the state. Each member shall be an actual resident of | 0018| New Mexico and of such character and reputation as to promote | 0019| public confidence in the administration of racing affairs. | 0020| C. The term of office of each member of the state | 0021| racing commission shall be six years from his appointment, and | 0022| he shall serve until his successor is appointed and qualified. | 0023| In case of any vacancy in the membership of the commission, the | 0024| governor shall fill the vacancy by appointment for the unexpired | 0025| term. | 0001| D. No person shall be eligible for appointment as a | 0002| member of the state racing commission who is an officer, | 0003| official or director in any association or corporation | 0004| conducting racing within the state. | 0005| E. Members of the state racing commission shall | 0006| receive no salary, but each member of the commission shall | 0007| receive per diem and mileage in accordance with the Per Diem and | 0008| Mileage Act. The commission may appoint a secretary and fix his | 0009| duties and compensation. | 0010| F. The state racing commission has the power to: | 0011| (1) grant, refuse and revoke licenses; | 0012| (2) make rules and regulations for the holding, | 0013| conducting and operating of all race meets and races held in the | 0014| state and to fix and set racing dates; | 0015| (3) oversee implementation of all rules and | 0016| regulations adopted by the gaming board acting pursuant to the | 0017| Horse Racing Industry Enhancement Act that are applicable to | 0018| racetrack licensees and licensees who are authorized to operate | 0019| electronic gaming machines at racetracks in the state and are | 0020| authorized to operate pari-mutuel wagering at facilities other | 0021| than racetracks pursuant to the Horse Racing Industry | 0022| Enhancement Act and who are licensed by the commission under the | 0023| Horse Racing Act; and, subject to a delegation of such authority | 0024| to the commission by the gaming board, enforce all rules and | 0025| regulations adopted by the gaming board that are applicable to | 0001| racetrack licensees and licensees pursuant to the Horse Racing | 0002| Industry Enhancement Act; | 0003| [(3)] (4) make an annual report to the | 0004| governor of its administration of the racing laws; | 0005| [(4)] (5) require of each applicant for a | 0006| license the full name of the person, association or corporation | 0007| applying and, if the applicant is a corporation or an | 0008| association, the name of the state in which incorporated, the | 0009| nationality and residence of the members of the association and | 0010| the names of the stockholders and directors of the corporation; | 0011| [(5)] (6) require of an applicant for a | 0012| license the exact location where it is desired to conduct or | 0013| hold a race or race meeting, whether or not the racetrack or | 0014| plant is owned or leased and, if leased, the name and residence | 0015| of the fee owner or, if the owner is a corporation, the names of | 0016| the directors and stockholders, a statement of the assets and | 0017| liabilities of the person, association or corporation making the | 0018| application, the kind of racing to be conducted and the period | 0019| desired and such other information as the commission may | 0020| require; | 0021| [(6)] (7) require on each application a | 0022| statement under oath that the information contained in the | 0023| application is true; | 0024| [(7)] (8) personally or by agents and | 0025| representatives supervise and check the making of pari-mutuel | 0001| pools and the distribution from those pools; | 0002| [(8)] (9) cause the various places where | 0003| race meets are held to be visited and inspected at reasonable | 0004| intervals; | 0005| [(9)] (10) make rules governing, | 0006| restricting or regulating bids on leases; | 0007| [(10)] (11) regulate rates charged by the | 0008| licensee for admission to races or for the performance of any | 0009| service or the sale of any article on the premises of the | 0010| licensee; | 0011| [(11)] (12) approve all proposed | 0012| extensions, additions or improvements to the buildings, stables | 0013| or tracks upon property owned or leased by a licensee and | 0014| require the removal of any employee or official employed by the | 0015| licensee; | 0016| [(12)] (13) completely supervise and | 0017| control the pari-mutuel machines and equipment at all races held | 0018| or operated by the state or any state agency or commission; | 0019| [(13)] (14) approve all contracts and | 0020| agreements for the payment of money and all salaries, fees and | 0021| compensations by any licensee; | 0022| [(14)] (15) regulate the size of the purse, | 0023| stake or reward to be offered for the conducting of any race; | 0024| [(15)] (16) exclude or compel the exclusion | 0025| of, from all racecourses, any person whom the commission deems | 0001| detrimental to the best interests of racing or any person who | 0002| willfully violates the racing laws or any rule, regulation or | 0003| order of the commission or any law of the United States or of | 0004| this state; | 0005| [(16)] (17) compel the production of all | 0006| documents showing the receipts and disbursements of any licensee | 0007| and determine the manner in which such financial records shall | 0008| be kept; | 0009| [(17)] (18) investigate the operations of | 0010| any licensee, and the commission has authority to place | 0011| attendants and such other persons as may be deemed necessary in | 0012| the offices, on the tracks or in places of business of any | 0013| licensee for the purpose of satisfying itself that the rules and | 0014| regulations are strictly complied with; and | 0015| [(18)] (19) employ staff as peace officers | 0016| for the purpose of conducting investigations and for enforcing | 0017| rules and regulations of the state racing commission and the | 0018| laws of the state and to obtain documents and information from | 0019| other agencies in order to assist the state racing commission. | 0020| Staff employed as peace officers shall be required to satis- | 0021| factorily complete a basic law enforcement training program, but | 0022| such peace officers shall not carry firearms or other deadly | 0023| weapons while on duty. | 0024| G. The state racing commission shall publicly state | 0025| its reasons for refusing an application for a license. The | 0001| reasons shall be included in the minute book of the commission, | 0002| and the minute book shall be subject to public inspection at all | 0003| reasonable times. | 0004| H. The state racing commission has the power to | 0005| summon witnesses, books, papers, documents or tangible things | 0006| and to administer oaths for the effectual discharge of the | 0007| commission's duties. The commission may appoint a hearing | 0008| officer to conduct any hearing required by the Horse Racing Act | 0009| or any rule or regulation promulgated pursuant to that act." | 0010| Section 40. A new Section 60-1-9.1 NMSA 1978 is enacted to | 0011| read: | 0012| "60-1-9.1. [NEW MATERIAL] GAMING BOARD TO HAVE ACCESS | 0013| TO LICENSURE INFORMATION.--The state racing commission shall | 0014| provide access to all information obtained by the commission in | 0015| connection with its licensing of horse race meetings to the | 0016| gaming board operating pursuant to the Horse Racing Industry | 0017| Enhancement Act, and the board shall utilize and review all such | 0018| information in connection with the issuance of licenses pursuant | 0019| to that act and shall not require the duplication of such | 0020| information." | 0021| Section 41. Section 60-1-10 NMSA 1978 (being Laws 1933, | 0022| Chapter 55, Section 6, as amended) is amended to read: | 0023| "60-1-10. PARI-MUTUEL METHOD LEGALIZED--MAXIMUM | 0024| COMMISSIONS--HORSEMEN'S COMMISSION--GAMBLING STATUTES NOT | 0025| REPEALED--COMMISSION DISTRIBUTION.-- | 0001| A. Within the enclosure where any horse races are | 0002| conducted, either as live on-track horse races or as horse races | 0003| simulcast pursuant to Section 60-1-25 NMSA 1978, and where the | 0004| licensee has been licensed to use the pari-mutuel method or | 0005| system of wagering on races, the pari-mutuel system is lawful, | 0006| but only within the enclosure where races are conducted. | 0007| B. The sale to patrons present on the grounds of | 0008| pari-mutuel tickets or certificates on the races or the use of | 0009| the pari-mutuel system shall not be construed to be betting, | 0010| gambling or pool selling and is authorized under the conditions | 0011| provided by law. | 0012| C. There shall be for each class A licensee a | 0013| commission of nineteen percent of the gross amount wagered on | 0014| win, place and show through the pari-mutuel system, of which | 0015| eighteen and three-fourths percent shall be retained by a class | 0016| A licensee and one-fourth of one percent shall be allocated to | 0017| the general fund. A commission in an amount determined by the | 0018| licensee of not less than eighteen and six-eighths percent and | 0019| not greater than twenty-five percent of the gross amount wagered | 0020| on win, place and show through the pari-mutuel system shall be | 0021| retained by a class B licensee. Each class B licensee shall | 0022| advise the state racing commission not less than thirty days in | 0023| advance of each horse racing meeting of the percentage the | 0024| licensee shall retain as commission. From that commission, each | 0025| class A and class B licensee shall allocate five-eighths of one | 0001| percent to the New Mexico horse breeders' association weekly for | 0002| distribution pursuant to the provisions of Subsection C of | 0003| Section 60-1-17 NMSA 1978. | 0004| D. Except as otherwise provided in this subsection, | 0005| a commission shall be retained by the licensee at the election | 0006| of each class A licensee of not less than twenty-one percent and | 0007| not greater than twenty-five percent of the gross amount wagered | 0008| on exotic wagering and at the election of each class B licensee, | 0009| and with the approval of the state racing commission, of not | 0010| less than twenty-one percent and not greater than thirty percent | 0011| of the gross amount wagered on exotic wagering. For the purpose | 0012| of this subsection, "exotic wagering" means all wagering other | 0013| than win, place and show, through the pari-mutuel system. Each | 0014| licensee shall advise the state racing commission not less than | 0015| thirty days in advance of each horse racing meeting of the | 0016| amount of the commission of the gross amount wagered on exotic | 0017| wagering to be retained by the licensee. From that commission, | 0018| the licensee shall allocate one and three-eighths percent to the | 0019| New Mexico horse breeders' association weekly for distribution | 0020| pursuant to the provisions of Subsection C of Section 60-1-17 | 0021| NMSA 1978. | 0022| E. The odd cents of all redistributions to the | 0023| wagerer over the next lowest multiple of ten from the gross | 0024| amount wagered through the pari-mutuel system shall be retained | 0025| by the licensee, with fifty percent of the total being allocated | 0001| to enhance the race purses of established stake races that | 0002| include only horses registered as New Mexico bred with the New | 0003| Mexico horse breeders' association, to be distributed by the New | 0004| Mexico horse breeders' association pursuant to Paragraph (3) of | 0005| Subsection C of Section 60-1-17 NMSA 1978 subject to the | 0006| approval of the state racing commission. | 0007| F. All money resulting from the failure of patrons | 0008| who purchased winning pari-mutuel tickets during the meeting to | 0009| redeem their winning tickets before the end of the sixty-day | 0010| period immediately succeeding the closing day of the meeting and | 0011| all money resulting from the failure of patrons who purchased | 0012| pari-mutuel tickets that were entitled to refund but were not | 0013| refunded during the same sixty-day period shall be apportioned | 0014| as follows: | 0015| (1) thirty-three and thirty-three hundredths | 0016| percent shall be retained by the licensee; | 0017| (2) thirty-three and thirty-four hundredths | 0018| percent shall be distributed to the New Mexico horse breeders' | 0019| association to enhance each track's established overnight purses | 0020| for races that include only horses registered as New Mexico bred | 0021| with the New Mexico horse breeders' association pursuant to | 0022| Paragraph (3) of Subsection C of Section 60-1-17 NMSA 1978, | 0023| subject to the approval of the state racing commission; and | 0024| (3) thirty-three and thirty-three hundredths | 0025| percent shall be allocated to [horseman's] horsemen's race | 0001| purses. | 0002| G. To promote and improve the quality of horse | 0003| racing and simulcasting and the participation of interested | 0004| persons in horse racing in New Mexico, one-half of one percent | 0005| of the gross amount wagered on simulcast horse races at each | 0006| licensed racetrack in New Mexico that receives simulcast horse | 0007| races shall be allocated by each licensee for distribution to | 0008| the New Mexico horsemen's association, provided that at least | 0009| one-quarter of one percent of the gross amount wagered on | 0010| simulcast races that is so allocated is used solely for medical | 0011| benefits for the members of the New Mexico horsemen's | 0012| association, and provided further that the remaining one-quarter | 0013| of one percent of the gross amount wagered on simulcast races | 0014| that is so allocated shall be used to enhance purses at each | 0015| such licensed racetrack. The state racing commission shall by | 0016| regulation provide for the timing and manner of the distribution | 0017| required by this subsection and shall audit, or arrange for an | 0018| independent audit of, the disbursement required by this | 0019| subsection. | 0020| H. Subject to the provisions of Subsection D of | 0021| Section 35 of the Horse Racing Industry Enhancement Act, fifty | 0022| percent of the net retainage of each licensee shall be allocated | 0023| to race purses. For purposes of this section, "net retainage" | 0024| of the licensee means the commission retained by the licensee on | 0025| all forms of wagers minus: | 0001| (1) the taxes delineated in Sections 60-1-8 and | 0002| 60-1-15 NMSA 1978; | 0003| (2) money allocated to the New Mexico horse | 0004| breeders' association by this section and Section 60-1-17 NMSA | 0005| 1978; | 0006| (3) money allocated to the New Mexico | 0007| horsemen's association by this section; | 0008| (4) a deduction for expenses incurred to engage | 0009| in intrastate simulcasting pursuant to Section | 0010| 60-1-25 NMSA 1978, provided that: | 0011| (a) the deduction for each licensee shall | 0012| be a portion of five percent of the gross amount wagered at all | 0013| the sites receiving the same simulcast horse races; | 0014| (b) the deduction portion for each | 0015| licensee shall be an amount allocated to the licensee by | 0016| agreement voluntarily reached among all the licensees sending or | 0017| receiving the same simulcast horse races; and | 0018| (c) the deduction portion for each | 0019| licensee shall be an amount allocated to the licensee by the | 0020| state racing commission if all the licensees sending or | 0021| receiving the same simulcast horse races fail to reach a | 0022| voluntary agreement under Subparagraph (b) of this paragraph; | 0023| and | 0024| (5) a deduction for fees and commissions | 0025| incurred to receive interstate simulcasts pursuant to Section | 0001| 60-1-25 NMSA 1978. | 0002| I. Existing statutes of this state against horse | 0003| racing on Sundays or on bookmaking, pool selling or other | 0004| methods of wagering on the racing of horses are not repealed but | 0005| are hereby expressly continued in effect, with the exception | 0006| that the operation of the pari-mutuel method or system in | 0007| connection with the racing of horses, when used as provided by | 0008| law, is lawful. | 0009| J. In the event any money paid or allocated to the | 0010| New Mexico horse breeders' association or the New Mexico | 0011| Appaloosa racing association pursuant to the Horse Racing Act | 0012| cannot be paid to or allocated or administered by such | 0013| associations, then the state racing commission, or such other | 0014| organization as may be designated, retained or absolutely | 0015| controlled by the state racing commission, shall receive all | 0016| such money and shall pay, allocate and administer all such money | 0017| pursuant to the provisions of Section 60-1-17 NMSA 1978. If the | 0018| state racing commission or its controlled designee is required | 0019| to pay, allocate or administer money on behalf of the New Mexico | 0020| horse breeders' association or the New Mexico Appaloosa racing | 0021| association pursuant to this subsection, then the maximum | 0022| percentage of funds set forth in Paragraph (3) of Subsection C | 0023| of Section 60-1-17 NMSA 1978 shall be paid by the state racing | 0024| commission to the New Mexico horse breeders' association or the | 0025| New Mexico Appaloosa racing association as a fee to obtain the | 0001| certification of the registry of the dam and stud of the New | 0002| Mexico bred horse. | 0003| K. In the event any money paid or allocated to the | 0004| New Mexico horsemen's association pursuant to the Horse Racing | 0005| Act cannot be paid to or allocated or administered by the | 0006| association, then the state racing commission, or such other | 0007| organization as may be designated, retained or absolutely | 0008| controlled by the state racing commission, shall receive all | 0009| such money and shall pay, allocate and administer all such money | 0010| to achieve the purposes of the provisions of this section." | 0011| Section 42. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0012| Chapter 39, Section 96) is amended to read: | 0013| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0014| A. It is a violation of the Liquor Control Act for a | 0015| licensee to knowingly allow commercial gambling on the licensed | 0016| premises. | 0017| B. In addition to any criminal penalties, any person | 0018| who violates Subsection A of this section may have his license | 0019| suspended or revoked or a fine imposed, or both, pursuant to the | 0020| Liquor Control Act. | 0021| C. For purposes of this section, "commercial | 0022| gambling" means: | 0023| (1) participating in the earnings of or | 0024| operating a gambling place; | 0025| (2) receiving, recording or forwarding bets or | 0001| offers to bet; | 0002| (3) possessing facilities with the intent to | 0003| receive, record or forward bets or offers to bet; | 0004| (4) for gain, becoming a custodian of anything | 0005| of value bet or offered to be bet; | 0006| (5) conducting a lottery where both the | 0007| consideration and the prize are money, or whoever with intent to | 0008| conduct a lottery possesses facilities to do so; or | 0009| (6) setting up for use for the purpose of | 0010| gambling, or collecting the proceeds of, any gambling device or | 0011| game. | 0012| D. A horse racetrack or off-track betting facility | 0013| licensed to conduct parimutuel wagering or electronic gaming is | 0014| exempt from the application of the provisions of this section." | 0015|  State of New Mexico | 0016| House of Representatives | 0017| | 0018| FORTY-SECOND LEGISLATURE | 0019| SECOND SESSION, 1996 | 0020| | 0021| | 0022| February 10, 1996 | 0023| | 0024| | 0025| Mr. Speaker: | 0001| | 0002| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has | 0003| been referred | 0004| | 0005| HOUSE BILL 548 | 0006| | 0007| has had it under consideration and reports same with | 0008| recommendation that it DO NOT PASS, but that | 0009| | 0010| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0011| FOR HOUSE BILL 548 | 0012| | 0013| DO PASS, and thence referred to the JUDICIARY | 0014| COMMITTEE. | 0015| | 0016| Respectfully submitted, | 0017| | 0018| | 0019| | 0020| | 0021| Fred Luna, Chairman | 0022| | 0023| | 0024| Adopted Not Adopted | 0025| | 0001| (Chief Clerk) (Chief Clerk) | 0002| | 0003| Date | 0004| | 0005| The roll call vote was 7 For 3 Against | 0006| Yes: 7 | 0007| No: Alwin, Hobbs, Macko | 0008| Excused: Gubbels, Varela | 0009| Absent: None | 0010| | 0011| | 0012| | 0013| H0548BI1 State of New Mexico | 0014| House of Representatives | 0015| | 0016| FORTY-SECOND LEGISLATURE | 0017| SECOND SESSION, 1996 | 0018| | 0019| | 0020| February 10, 1996 | 0021| | 0022| | 0023| Mr. Speaker: | 0024| | 0025| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has | 0001| been referred | 0002| | 0003| HOUSE BILL 548 | 0004| | 0005| has had it under consideration and reports same with | 0006| recommendation that it DO NOT PASS, but that | 0007| | 0008| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0009| FOR HOUSE BILL 548 | 0010| | 0011| DO PASS, and thence referred to the JUDICIARY | 0012| COMMITTEE. | 0013| | 0014| Respectfully submitted, | 0015| | 0016| | 0017| | 0018| | 0019| Fred Luna, Chairman | 0020| | 0021| | 0022| Adopted Not Adopted | 0023| | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| Date | 0002| | 0003| The roll call vote was 7 For 3 Against | 0004| Yes: 7 | 0005| No: Alwin, Hobbs, Macko | 0006| Excused: Gubbels, Varela | 0007| Absent: None | 0008| | 0009| | 0010| | 0011| H0548BI1 State of New Mexico | 0012| House of Representatives | 0013| | 0014| FORTY-SECOND LEGISLATURE | 0015| SECOND SESSION, 1996 | 0016| | 0017| | 0018| February 10, 1996 | 0019| | 0020| | 0021| Mr. Speaker: | 0022| | 0023| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has | 0024| been referred | 0025| | 0001| HOUSE BILL 548 | 0002| | 0003| has had it under consideration and reports same with | 0004| recommendation that it DO NOT PASS, but that | 0005| | 0006| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0007| FOR HOUSE BILL 548 | 0008| | 0009| DO PASS, and thence referred to the JUDICIARY | 0010| COMMITTEE. | 0011| | 0012| Respectfully submitted, | 0013| | 0014| | 0015| | 0016| | 0017| Fred Luna, Chairman | 0018| | 0019| | 0020| Adopted Not Adopted | 0021| | 0022| (Chief Clerk) (Chief Clerk) | 0023| | 0024| Date | 0025| | 0001| The roll call vote was 7 For 3 Against | 0002| Yes: 7 | 0003| No: Alwin, Hobbs, Macko | 0004| Excused: Gubbels, Varela | 0005| Absent: None | 0006| | 0007| | 0008| | 0009| H0548BI1 HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0010| HOUSE BILL 548 | 0011| 42nd legislature - STATE OF NEW MEXICO - second session, 1996 | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| AN ACT | 0020| RELATING TO GAMING; ENACTING THE GAMING CONTROL ACT; PERMITTING | 0021| MACHINE GAMING AT RACETRACKS AND BY CERTAIN NONPROFIT | 0022| ORGANIZATIONS; PROVIDING FOR LICENSING AND REGULATION OF THE | 0023| PERMITTED ACTIVITIES; PERMITTING CERTAIN TRIBAL GAMING; | 0024| PROVIDING PENALTIES; AMENDING AND ENACTING SECTIONS OF THE NMSA | 0025| 1978; MAKING AN APPROPRIATION; DECARING AN EMERGENCY. | 0001| | 0002| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0003| Section 1. [NEW MATERIAL] SHORT TITLE. Sections 1 | 0004| through 62 of this act may be cited as the "Gaming Control Act". | 0005| Section 2. [NEW MATERIAL] LEGISLATIVE POLICY.--It is | 0006| the policy of the legislature that: | 0007| A. limited gaming activities should be permitted in | 0008| the state if those activities are strictly regulated to ensure | 0009| honest and competitive gaming free from criminal and corruptive | 0010| elements and influence; and | 0011| B. the holder of any license or permit issued by the | 0012| state in connection with the regulation of gaming activities has | 0013| only a revocable privilege and has no property right or vested | 0014| interest in the license or permit. | 0015| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0016| Gaming Control Act: | 0017| A. "affiliate" means a person who, directly or | 0018| indirectly through one or more intermediaries, controls, is | 0019| controlled by or is under common control with a specified | 0020| person; | 0021| B. "affiliated company" means a subsidiary company, | 0022| holding company, intermediate company or any other form of | 0023| business organization that: | 0024| (1) controls, is controlled by or is under | 0025| common control with a company licensee; and | 0001| (2) is involved in gaming activities or | 0002| involved in the ownership of property upon which gaming is | 0003| conducted; | 0004| C. "applicant" means any person who has applied for | 0005| a gaming operator's license, manufacturer's license, | 0006| distributor's license, service technician's license or gaming | 0007| machine license pursuant to the provisions of the Gaming Control | 0008| Act or approval of any act or transaction for which approval is | 0009| required or permitted under the provisions of that act; | 0010| D. "application" means a request for the issuance of | 0011| a gaming operator's license, manufacturer's license, | 0012| distributor's license, service technician's license or gaming | 0013| machine license pursuant to the provisions of the Gaming Control | 0014| Act or approval of any act or transaction for which approval is | 0015| required or permitted under the provisions of that act but does not | 0016| include any supplemental forms or information that may be required | 0017| with the application; | 0018| E. "associated equipment" means any equipment or | 0019| mechanical, electromechanical or electronic contrivance, component | 0020| or machine used in connection with gaming; | 0021| F. "board" means the gaming control board created | 0022| pursuant to the Gaming Control Act; | 0023| G. "company" means a corporation, partnership, limited | 0024| partnership, trust, association, joint stock company, joint | 0025| venture, limited liability company or other form of business | 0001| organization that is not a natural person; | 0002| H. "credit instrument" means a writing that evidences a | 0003| gaming debt owed to a person who holds a gaming operator's license | 0004| at the time the debt is created and includes any writing taken in | 0005| consolidation, redemption or payment of a prior credit instrument; | 0006| I. "director" means the director appointed by the | 0007| board; | 0008| J. "distributor" means a person who distributes gaming | 0009| devices to a gaming operator; | 0010| K. "distributor's license" means any license issued by | 0011| the board that authorizes the person named to be a distributor; | 0012| L. "equity security" means: | 0013| (1) any voting stock of a company or similar | 0014| security; | 0015| (2) any security convertible, with or without | 0016| consideration, into voting stock or similar security or carrying | 0017| any warrant or right to subscribe to or purchase voting stock or | 0018| similar security; | 0019| (3) any warrant or right to subscribe to or | 0020| purchase voting stock or similar security; or | 0021| (4) any security having a direct or indirect | 0022| participation in the profits of the issuer; | 0023| M. "finding of suitability" means an approval issued by | 0024| the board permitting a person to be involved directly or indirectly | 0025| with a licensee and related only to the specified involvement for | 0001| which it is made; | 0002| N. "game" or "gambling game" means any game played with | 0003| cards, dice, equipment or any mechanical, electromechanical or | 0004| electronic device or machine for money, property, checks, credit or | 0005| any representative of value; but "game" or "gambling game" does not | 0006| include games played with cards in private homes or residences in | 0007| which no person makes money for operating the game except as a | 0008| player; | 0009| O. "gaming" or "gambling" means to operate, carry on, | 0010| conduct, maintain or expose for play any game; | 0011| P. "gaming device" means any mechanical, | 0012| electromechanical or electronic contrivance, component or machine | 0013| used in connection with gaming or any game that affects the result | 0014| of a wager by determining win or loss. "Gaming device" includes a | 0015| system for processing information that can alter the normal | 0016| criteria of random selection that affects the operation of any game | 0017| or determines the outcome of a game. "Gaming device" does not | 0018| include a system or device that affects a game solely by stopping | 0019| its operation so that the outcome remains undetermined; | 0020| Q. "gaming employee" means any person connected | 0021| directly with the operation of a gaming establishment licensed to | 0022| conduct any gaming. "Gaming employee" also includes employees of a | 0023| person holding a manufacturer's license whose duties are directly | 0024| involved with manufacture of gaming devices within New Mexico; | 0025| employees of a person holding a distributor's license whose duties | 0001| are directly involved with the distributor of or gaming devices | 0002| within New Mexico; and employees of a person whose duties are | 0003| directly involved with servicing and repairing gaming devices | 0004| within New Mexico. "Gaming employee" does not include bartenders, | 0005| cocktail servers or other persons engaged solely in preparing or | 0006| serving food or beverages, or secretarial personnel, janitorial, | 0007| stage, sound and light technicians and other nongaming personnel; | 0008| R. "gaming establishment" means the premises on which | 0009| or in which gaming is conducted; | 0010| S. "gaming machine" means any mechanical, electrical, | 0011| electronic or electromechanical device, contrivance or machine | 0012| that, upon insertion of a coin, token or similar object, or upon | 0013| payment of any consideration, is available to play or operate, the | 0014| play or operation of which, whether by reason of the skill of the | 0015| player or operator or application of the element of chance, or | 0016| both, may deliver or entitle the player or operator to receive | 0017| cash, premiums, credits, merchandise, tokens or any thing of value, | 0018| whether the payoff is made automatically from the machine or in any | 0019| other manner; | 0020| T. "gaming operator" means a person who operates or | 0021| conducts gaming activities; | 0022| U. "gaming operator's license" means any license issued | 0023| by the board that authorizes the person named therein to engage in | 0024| gaming operations; | 0025| V. "gross revenue" means the total of all the | 0001| following, less the total of all cash paid out as losses to winning | 0002| patrons and those amounts paid to purchase annuities to fund losses | 0003| paid to winning patrons over several years by independent | 0004| administrators: | 0005| (1) cash received from patrons for the purpose of | 0006| gaming; | 0007| (2) cash received in payment for credit extended | 0008| by a licensee to a patron for the purpose of gaming; and | 0009| (3) compensation received for conducting any game | 0010| in which the licensee is not a party to a wager; | 0011| W. "holding company" means any company that directly or | 0012| indirectly owns or has the power or right to control a company that | 0013| holds or applies for a gaming operator's, supplier's or | 0014| distributor's license; provided that a company that does not have a | 0015| beneficial ownership of more than ten percent of the voting | 0016| securities of a publicly traded corporation shall not be considered | 0017| a holding company; | 0018| X. "institutional investor" means: | 0019| (1) a bank as defined in Section 3(a)(6) of the | 0020| federal Securities Exchange Act of 1934; | 0021| (2) an insurance company as defined in Section | 0022| 2(a)(17) of the federal Investment Company Act of 1940, as amended; | 0023| (3) an investment company registered under | 0024| Section 8 of the federal Investment Company Act of 1940, as | 0025| amended; | 0001| (4) an investment advisor registered under | 0002| Section 203 of the federal Investment Advisors Act of 1940, as | 0003| amended; | 0004| (5) collective trust funds as defined in Section | 0005| 3(c)(11) of the federal Investment Company Act of 1940, as amended; | 0006| (6) an employee benefit plan or pension fund that | 0007| is subject to the federal Employee Retirement Income Security Act | 0008| of 1974, as amended, excluding an employee benefit plan or pension | 0009| fund sponsored by a publicly traded corporation registered with the | 0010| board; | 0011| (7) a state or federal government pension plan; | 0012| (8) a group comprised entirely of persons | 0013| specified in Paragraphs (1) through (6) of this subsection; or | 0014| (9) such other persons as the board may determine | 0015| for reasons consistent with the state policies expressed in Section | 0016| 2 of the Gaming Control Act. | 0017| To qualify as an "institutional investor", a person other | 0018| than a state or federal pension plan shall meet the requirements of | 0019| a "qualified institutional buyer" as defined in Rule 144A of the | 0020| federal Securities Act of 1933; | 0021| Y. "intermediary company" means any company that: | 0022| (1) is a holding company with respect to a | 0023| company that holds or applies for a gaming operator's, supplier's | 0024| or distributor's license; and | 0025| (2) is a subsidiary with respect to any holding | 0001| company; | 0002| Z. "key executive" means any executive that is a | 0003| department head of a gaming licensee having the power to exercise a | 0004| significant influence over decisions concerning any part of the | 0005| gaming operations of the gaming licensee, or whose compensation | 0006| exceeds an amount determined by the board by regulation; | 0007| AA. "license" means a gaming operator's license, a | 0008| manufacturer's license, a distributor's license, a technician's | 0009| license or a license required by the board by rule for conducting | 0010| other gaming activities; | 0011| BB. "licensee" means any person to whom a valid license | 0012| has been issued; | 0013| CC. "manufacturer" means a person who manufactures, | 0014| assembles, produces, programs or makes modifications to any gaming | 0015| device for use or play in New Mexico or for distribution outside | 0016| New Mexico from any location within New Mexico; | 0017| DD. "manufacturer's license" means any license issued | 0018| by the board that authorizes the licensee to manufacture, assemble, | 0019| produce, program or otherwise produce or make modifications to any | 0020| gaming device in New Mexico or from a location outside New Mexico | 0021| for use or play in New Mexico; | 0022| EE. "person" means an individual or other entity; | 0023| FF. "premises" means land, together with all buildings, | 0024| improvements and personal property located thereon; | 0025| GG. "progressive jackpot" means a prize that increases | 0001| over time or as electronic gaming devices that are linked to a | 0002| progressive system are played. Upon conditions established by the | 0003| board, a progressive jackpot may be paid by an annuity; | 0004| HH. "progressive system" means one or more electronic | 0005| gaming devices linked to one or more common progressive jackpots. | 0006| A "local area progressive system" shall consist solely of | 0007| electronic gaming devices located at a single licensed | 0008| establishment. A "wide area progressive system" may link | 0009| electronic gaming devices at multiple gaming establishments; | 0010| II. "publicly traded corporation" means a corporation | 0011| that: | 0012| (1) has one or more classes of securities | 0013| registered pursuant to the securities laws of the United States or | 0014| of New Mexico; | 0015| (2) is an issuer subject to the securities laws | 0016| of the United States or of New Mexico; or | 0017| (3) has one or more classes of securities | 0018| registered or is an issuer pursuant to applicable foreign laws that | 0019| the board finds provide protection for investors that is comparable | 0020| to or greater than the stricter of the securities laws of the | 0021| United States or of New Mexico laws; | 0022| JJ. "registration" means an approval or board action | 0023| that authorizes a company to be a holding company with respect to a | 0024| company that holds or applies for a gaming license or that relates | 0025| to other persons required to be registered under the Gaming Control | 0001| Act; | 0002| KK. "regulation" means a rule, standard, directive or | 0003| statement of general applicability that effectuates the law or | 0004| policy or describes the procedures of the board, but "regulation" | 0005| does not include: | 0006| (1) a statement concerning only the internal | 0007| management of the board and not affecting the rights or procedures | 0008| available to any licensee or other person; | 0009| (2) a declaratory ruling; | 0010| (3) an interagency memorandum; or | 0011| (4) the board's decision in a contested case or | 0012| relating to the application for a license; | 0013| LL. "subsidiary" means any corporation or company, all | 0014| or any part of whose outstanding equity securities are owned, | 0015| subject to a power or right of control, or held, with power to | 0016| vote, by a holding company or intermediary company; and | 0017| MM. "work permit" means any card, certificate or permit | 0018| issued by the board, whether denominated as a work permit, | 0019| registration card or otherwise, authorizing the employment of the | 0020| holder as a gaming employee. A document issued by any governmental | 0021| authority for any employment other than gaming is not a valid work | 0022| permit for the purposes of the Gaming Control Act. | 0023| Section 4. [NEW MATERIAL] GAMING CONTROL BOARD CREATED.-- | 0024| A. The "gaming control board" is created and consists | 0025| of three members appointed by the governor with the consent of the | 0001| senate. All members of the board shall be residents of New Mexico | 0002| and citizens of the United States. One member of the board shall | 0003| have a minimum of five years of previous employment in a first-level management position in law enforcement, and one member of the | 0004| board shall be a licensed certified public accountant in New Mexico | 0005| who has had at least five years of public accountancy practice | 0006| experience. | 0007| B. The members of the board shall be appointed for | 0008| terms of five years, except, of the members who are first | 0009| appointed, the member with law enforcement experience shall be | 0010| appointed for a term of five years, the member who is a certified | 0011| public accountant shall be appointed for a term of four years and | 0012| the third member shall be appointed for a term of three years. | 0013| Thereafter, all members shall be appointed for terms of five years. | 0014| C. Vacancies on the board shall be filled within thirty | 0015| days by the governor with the consent of the senate for the | 0016| unexpired portion of the term in which the vacancy occurs. A | 0017| person appointed to fill a vacancy shall meet all qualification | 0018| requirements of the office established in this section. | 0019| D. The governor shall appoint a chair annually from the | 0020| board's membership. | 0021| E. No more than two members of the board shall be from | 0022| the same political party. | 0023| F. The members of the board shall be full-time state | 0024| officials and shall receive a salary set by the governor. | 0025| G. The special investigations division of the | 0001| department of public safety shall conduct background investigations | 0002| of all members of the board prior to confirmation by the senate. | 0003| To assist the department of public safety in this background | 0004| investigation, the prospective board member shall furnish a | 0005| disclosure statement to the department on a form provided by the | 0006| department and requiring that information deemed by the department | 0007| as necessary for completion of a detailed and thorough background | 0008| investigation. As a minimum, the required information shall | 0009| include: | 0010| (1) a full set of fingerprints made by a law | 0011| enforcement agency on forms supplied by the department; | 0012| (2) complete information and details with respect | 0013| to the prospective board member's antecedents, habits, character, | 0014| criminal records, business activities and business associates | 0015| covering at least a ten-year period immediately preceding the date | 0016| of submitting the disclosure statement; and | 0017| (3) a complete description of any equity interest | 0018| held in a business connected with the gaming industry. | 0019| H. A prospective board member shall provide any | 0020| assistance or information requested by the department of public | 0021| safety or the governor and shall cooperate in any inquiry or | 0022| investigation of the prospective board member's fitness or | 0023| qualifications to hold the office to which he is appointed. The | 0024| senate shall refuse to confirm a prospective board member if it has | 0025| reasonable cause to believe that the prospective board member has: | 0001| (1) knowingly misrepresented or omitted a | 0002| material fact required in a disclosure statement; or | 0003| (2) been convicted of a felony, a gambling-related offense or any crime involving fraud, theft or moral | 0004| turpitude within ten years immediately preceding the date of | 0005| submitting a disclosure statement required pursuant to Subsection G | 0006| of this section. | 0007| I. No member of the board or any member of his | 0008| immediate family or household shall have any financial interest in | 0009| or derive any financial benefit from a business that is regulated | 0010| by the board, and at the time of taking office, each board member | 0011| shall file with the secretary of state a sworn statement to that | 0012| effect. | 0013| Section 5. [NEW MATERIAL] MEETINGS--QUORUM--RECORDS.-- | 0014| A. A majority of the qualified membership of the board | 0015| then in office constitutes a quorum. No action may be taken by the | 0016| board unless at least two members concur. | 0017| B. Written notice of the time and place of each board | 0018| meeting shall be given to each member of the board at least ten | 0019| days prior to the meeting. | 0020| C. Meetings of the board shall be open and public in | 0021| accordance with the Open Meetings Act, except that the board may | 0022| have closed meetings to hear security and investigative | 0023| information. | 0024| D. All proceedings of the board shall be recorded by | 0025| audio tape or other equivalent verbatim audio recording device. | 0001| E. The chairman of the board, the director or a | 0002| majority of the members of the board then in office may call a | 0003| special meeting of the board upon written notice to all members of | 0004| the board and the director. | 0005| Section 6. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0006| A. The board shall develop and implement the state's | 0007| policy on gaming consistent with the provisions of the Gaming | 0008| Control Act. It has the duty to fulfill all responsibilities | 0009| assigned to it pursuant to that act and has all authority necessary | 0010| to carry out those responsibilities. It may delegate authority to | 0011| the director, but it retains accountability. The board is an | 0012| adjunct agency. | 0013| B. The board shall: | 0014| (1) employ the director; | 0015| (2) make the final decision on issuance, denial, | 0016| suspension and revocation of all licenses pursuant to and | 0017| consistent with the provisions of the Gaming Control Act; | 0018| (3) develop, adopt and promulgate all regulations | 0019| necessary to implement and administer the provisions of the Gaming | 0020| Control Act; | 0021| (4) conduct itself, or employ a hearing officer | 0022| to conduct, all hearings required by the provisions of the Gaming | 0023| Control Act and any other hearings it deems appropriate to fulfill | 0024| its responsibilities; | 0025| (5) meet at least once each month; and | 0001| (6) prepare and submit an annual report in | 0002| December of each year to the governor and the legislature covering | 0003| activities of the board in the most recently completed fiscal year, | 0004| a summary of gaming activities in the state and any recommended | 0005| changes in or additions to the laws relating to gaming in the | 0006| state. | 0007| C. The board may: | 0008| (1) impose civil fines not to exceed ten thousand | 0009| dollars ($10,000) for the first violation and fifteen thousand | 0010| dollars ($15,000) for subsequent violations of any prohibitory | 0011| provision of the Gaming Control Act or any prohibitory provision of | 0012| a regulation adopted pursuant to that act; | 0013| (2) conduct investigations, subpoena persons and | 0014| documents to compel access to or for the production of books, | 0015| papers, records or memoranda in the custody or control of any | 0016| licensee or compel the appearance of employees of a licensee or | 0017| other persons for the purpose of ascertaining compliance with any | 0018| provision of the Gaming Control Act or a regulation adopted | 0019| pursuant to its provisions; | 0020| (3) administer oaths and take depositions to the | 0021| same extent and subject to the same limitations as would apply if | 0022| the deposition were pursuant to discovery rules in a civil action | 0023| in the district court; | 0024| (4) sue and be sued subject to the limitations of | 0025| the Tort Claims Act; | 0001| (5) contract for the provision of goods and | 0002| services necessary to carry out its responsibilities; | 0003| (6) conduct audits of applicants, licensees and | 0004| persons affiliated with licensees; | 0005| (7) inspect all places where gaming is conducted | 0006| or gaming devices are manufactured, sold or distributed and inspect | 0007| all equipment and supplies in those places; | 0008| (8) summarily seize and remove from places | 0009| inspected and impound any equipment, supplies, documents or records | 0010| for the purpose of examination or inspection; and | 0011| (9) except for the powers specified in Paragraphs | 0012| (1) and (4) of this subsection, carry out all or part of any of the | 0013| foregoing powers and activities through the director. | 0014| Section 7. [NEW MATERIAL] BOARD REGULATIONS--DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0015| A. The board may adopt any regulation: | 0016| (1) consistent with the provisions of the Gaming | 0017| Control Act; and | 0018| (2) deemed necessary by it to implement the | 0019| provisions of the Gaming Control Act. | 0020| B. No regulation shall be adopted, amended or repealed | 0021| without a public hearing on the proposed action before the board or | 0022| a hearing officer designated by it. The public hearing shall be | 0023| held in Santa Fe. Notice of the subject matter of the regulation, | 0024| the action proposed to be taken, the time and place of the hearing, | 0025| the manner in which interested persons may present their views and | 0001| the method by which copies of the proposed regulation, amendment or | 0002| repeal may be obtained shall be published once at least thirty days | 0003| prior to the hearing date in a newspaper of general circulation and | 0004| mailed at least thirty days prior to the hearing date to all | 0005| persons who have made a written request for advance notice of | 0006| hearing. All regulations and actions taken on regulations shall be | 0007| filed in accordance with the State Rules Act. | 0008| C. The board shall adopt regulations: | 0009| (1) prescribing the method and form of | 0010| application to be followed by applicants for licenses; | 0011| (2) prescribing the information to be furnished | 0012| by any applicant or licensee concerning his antecedents, habits, | 0013| character, associates, criminal records, business activities and | 0014| financial affairs, past or present; | 0015| (3) requiring work permits for gaming employees | 0016| and prescribing the information to be furnished by a licensee about | 0017| his gaming employees; | 0018| (4) requiring the fingerprinting or other | 0019| reliable methods of identification of applicants; | 0020| (5) prescribing the manner and procedure of all | 0021| hearings conducted by the board or a hearing officer; | 0022| (6) requiring an applicant to pay all or part of | 0023| the fees and costs of investigation of the applicant as determined | 0024| by the board; | 0025| (7) prescribing the manner and method of | 0001| collection and payment of fees and the issuance of licenses; | 0002| (8) for authorized gaming, defining the area, | 0003| games and gaming devices permitted and the methods of operation of | 0004| the games and gaming devices; | 0005| (9) for authorized gaming, establishing hours of | 0006| operation; | 0007| (10) prescribing under what conditions the | 0008| nonpayment of a gambling debt is grounds for suspension or | 0009| revocation of a license; | 0010| (11) governing the manufacture, sale, | 0011| distribution, repair and servicing of gaming devices and associated | 0012| equipment; | 0013| (12) requiring any applicant or licensee to waive | 0014| any privilege with respect to any testimony at any hearing or | 0015| meeting of the board, except a privilege afforded by the | 0016| constitutions of the United States or New Mexico; | 0017| (13) governing the specifications for approval | 0018| and licensing of gaming machines; | 0019| (14) governing accounting procedures, security, | 0020| collection and verification procedures required of licensees and | 0021| matters regarding financial responsibility of licensees; | 0022| (15) establishing grounds and procedures for the | 0023| denial, suspension or revocation of a license; | 0024| (16) prescribing what shall be considered to be | 0025| an unsuitable method of operation; | 0001| (17) restricting access to confidential | 0002| information obtained under the Gaming Control Act and ensuring that | 0003| the confidentiality of such information is maintained and | 0004| protected; | 0005| (18) prescribing financial reporting and internal | 0006| control requirements for gaming operator licensees; | 0007| (19) prescribing the manner in which winnings, | 0008| compensation from games and gaming devices and gross revenue shall | 0009| be computed and reported by the gaming operator licensee; | 0010| (20) requiring audits of the financial statements | 0011| of all gaming operator licensees; | 0012| (21) requiring periodic financial reports from | 0013| each gaming operator licensee consistent with standards and | 0014| intervals prescribed by the board; | 0015| (22) prescribing the procedures to be followed by | 0016| gaming operator licensees for the exclusion of certain persons from | 0017| gaming establishments; | 0018| (23) prescribing the procedures to be followed by | 0019| gaming operator licensees for cash transactions; and | 0020| (24) establishing criteria and conditions for the | 0021| operation of progressive systems. | 0022| Section 8. [NEW MATERIAL] DIRECTOR--EMPLOYMENT--QUALIFICATIONS.-- | 0023| A. The director shall be employed by and serve at the | 0024| pleasure of the board. | 0025| B. The director shall have had at least five years of | 0001| responsible administrative experience in public or business | 0002| administration. | 0003| Section 9. [NEW MATERIAL] DIRECTOR--DUTIES.-- | 0004| A. The director shall implement the policies of the | 0005| board. | 0006| B. The director shall employ all personnel of the | 0007| board, who shall be covered employees pursuant to the provisions of | 0008| the Personnel Act. Among those personnel he shall employ and | 0009| designate an appropriate number of individuals as law enforcement | 0010| officers subject to proper certification pursuant to the Law | 0011| Enforcement Training Act. | 0012| C. The director shall establish those units he | 0013| determines are appropriate to administer the provisions of the | 0014| Gaming Control Act. | 0015| D. The director: | 0016| (1) may delegate authority to subordinates as he | 0017| deems necessary and appropriate, clearly delineating the delegated | 0018| authority and the limitations on it, if any; | 0019| (2) shall take administrative action by issuing | 0020| orders and instructions, not inconsistent with the Gaming Control | 0021| Act and regulations of the board, to assure implementation of and | 0022| compliance with the provisions of that act and those regulations; | 0023| (3) may conduct research and studies that will | 0024| improve the operations of the board and the provision of services | 0025| to the citizens of the state; | 0001| (4) may provide courses of instruction and | 0002| practical training for employees of the board and other persons | 0003| involved in the activities regulated by the board with the | 0004| objectives of improving operations of the board and achieving | 0005| compliance with the law and regulations; | 0006| (5) shall prepare an annual budget for the board | 0007| and submit it to the board for its approval; and | 0008| (6) shall make recommendations to the board of | 0009| proposed regulations and any legislative changes needed to provide | 0010| better administration of the Gaming Control Act and fair and | 0011| efficient regulation of gaming activities in the state. | 0012| Section 10. [NEW MATERIAL] CONFLICTS OF INTEREST--BOARD--DIRECTOR.-- | 0013| A. In addition to all other provisions of New Mexico | 0014| law regarding conflicts of interest of state officials and | 0015| employees, a member of the board, the director or any person | 0016| residing in the household of a member of the board or the director | 0017| shall not: | 0018| (1) directly or indirectly, individually, as a | 0019| member of a partnership or other association, or as a stockholder, | 0020| director or officer of a corporation, have an interest in a | 0021| business licensed pursuant to the Gaming Control Act; or | 0022| (2) accept or agree to accept any economic | 0023| opportunity, gift, loan, gratuity, special discount, favor, | 0024| hospitality or service having an aggregate value of one hundred | 0025| dollars ($100) or more in any calendar year from a person licensed | 0001| or applying for a license pursuant to the Gaming Control Act. | 0002| B. If a member of the board, the director or any person | 0003| residing in the household of any of the named persons violates any | 0004| provision of this section or Subsection I of Section 4 of the | 0005| Gaming Control Act, the member of the board or the director shall | 0006| be removed from his office or position. | 0007| Section 11. [NEW MATERIAL] PERMITTED GAMING--RACETRACKS--MACHINE GAMING--NET TAKE DISTRIBUTIONS.-- | 0008| A. A racetrack licensed by the state racing commission | 0009| pursuant to the Horse Racing Act to conduct live horse races or | 0010| simulcast races may conduct machine gaming on its premises where | 0011| live racing is conducted if the racetrack is licensed as a gaming | 0012| operator pursuant to the Gaming Control Act and regulations adopted | 0013| to implement and enforce that act. | 0014| B. A racetrack's gaming operator's license shall | 0015| automatically become void if: | 0016| (1) the racetrack no longer holds an active | 0017| license to conduct pari-mutuel wagering; or | 0018| (2) the racetrack fails to maintain ninety | 0019| percent of the number of racing days and conduct ninety percent of | 0020| the number of live horse races as it did in the 1994 calendar year, | 0021| unless otherwise approved by the board in consultation with the | 0022| state racing commission. | 0023| C. The gaming operator's license of a racetrack that | 0024| did not conduct live racing in 1994 shall automatically become void | 0025| if: | 0001| (1) the racetrack no longer holds an active | 0002| license to conduct pari-mutuel wagering; or | 0003| (2) the racetrack fails to conduct that number of | 0004| live horse races on that number of racing days that would represent | 0005| the minimum number of the horse races and racing days conducted by | 0006| any racetrack in New Mexico in the 1994 calendar year, unless | 0007| otherwise approved by the board in consultation with the state | 0008| racing commission. | 0009| D. No license shall be issued to a racetrack that has | 0010| dismantled or removed any part of the facilities required for the | 0011| operation of the track, including offices, stables, sheds or patron | 0012| seating or shelter, within two years prior to the date on which the | 0013| Gaming Control Act becomes effective. | 0014| E. A gaming operator licensee that is a racetrack may | 0015| have an unlimited number of gaming machines, provided that the | 0016| number of gaming machines to be located on the licensee's premises | 0017| is specified in the gaming operator's license. | 0018| F. A gaming operator licensee that is a racetrack shall | 0019| pay: | 0020| (1) twenty and eighteen hundredths percent of the | 0021| net take of each gaming machine to the New Mexico horsemen's | 0022| association, of which percentage one-fourth of one percent shall be | 0023| distributed to the New Mexico horsemen's association benevolence | 0024| fund and the balance shall be distributed to the appropriate New | 0025| Mexico purse enhancement funds; and | 0001| (2) four and eighty-two hundredths percent to the | 0002| New Mexico horse breeders' association for the New Mexico breeder | 0003| incentive fund. | 0004| G. A gaming operator licensee that is a racetrack shall | 0005| submit an accounting of distributions made pursuant to Paragraphs | 0006| (1) and (2) of Subsection F of this section to the board by | 0007| December 31 of each calendar year. | 0008| H. Gaming machines may be played on the premises of a | 0009| licensed racetrack only on days when the racetrack conducts live | 0010| horse races or simulcast races and during times established by | 0011| regulation of the board, which shall provide for at least twelve | 0012| hours a day. | 0013| Section 12. [NEW MATERIAL] PERMITTED GAMING--CERTAIN | 0014| NONPROFIT ORGANIZATIONS--MACHINE GAMING--NET TAKE DISTRIBUTIONS.-- | 0015| A. A nonprofit organization may conduct machine gaming | 0016| on its premises if the nonprofit organization is licensed as a | 0017| gaming operator pursuant to the Gaming Control Act and the | 0018| regulations adopted to implement and enforce that act and if the | 0019| nonprofit organization: | 0020| (1) is an organization described in Section | 0021| 501(c)(8), (10), (19) or (23) of the federal Internal Revenue Code | 0022| of 1986 and is exempt from federal income taxation pursuant to | 0023| Section 501(a) of that code; | 0024| (2) has been issued a license pursuant to Section | 0025| 60-6A-5 NMSA 1978; and | 0001| (3) has been in continuous existence in the state | 0002| since before January 1, 1994. | 0003| B. No more than twenty-five gaming machines may be | 0004| offered for play on the premises of a nonprofit organization having | 0005| a gaming operator's license. No gaming machine that dispenses cash | 0006| or coins directly from the machine may be offered for play on the | 0007| premises of a nonprofit organization having a gaming operator's | 0008| license. | 0009| C. No gaming machine on the premises of a nonprofit | 0010| organization having a gaming operator's license may award a prize | 0011| that exceeds one thousand dollars ($1,000). | 0012| D. Nonprofit organizations having a gaming operator's | 0013| license shall distribute a minimum of twenty percent of the net | 0014| take of each gaming machine to organizations with at least one | 0015| office located in New Mexico that are described in Section | 0016| 501(c)(3) of the federal Internal Revenue Code of 1986 and have | 0017| received an exemption from payment of federal income taxes pursuant | 0018| to Section 501(a) of that code. No money shall be distributed from | 0019| the proceeds of gaming machines to organizations described in that | 0020| section by which an officer, director or employee or a family | 0021| member of an officer, director or employee is employed or will | 0022| directly benefit. | 0023| E. Nonprofit organizations having a gaming operator's | 0024| license shall submit an accounting of distributions made pursuant | 0025| to Subsection D of this section to the board by December 31 of each | 0001| calendar year. | 0002| F. Gaming machines may be played on the premises of a | 0003| nonprofit organization having a gaming operator's license Sunday | 0004| through Saturday from 12:00 noon until 12:00 midnight. | 0005| Section 13. [NEW MATERIAL] OTHER GAMING NOT TO BE | 0006| LICENSED.--No gaming other than the gaming permitted pursuant to | 0007| Sections 11 and 12 of the Gaming Control Act shall be licensed in | 0008| the state pursuant to that act. | 0009| Section 14. [NEW MATERIAL] LICENSE REQUIRED FOR CERTAIN | 0010| ACTIVITIES.-- | 0011| A. No person shall engage in gaming unless he is | 0012| licensed as a gaming operator. | 0013| B. No person shall sell or distribute in the state any | 0014| gaming device or associated equipment unless he is licensed as a | 0015| distributor. | 0016| C. No person shall manufacture, assemble, program or | 0017| make modifications to a gaming device for use or play in this state | 0018| or for distribution outside of this state unless he is licensed as | 0019| a manufacturer. | 0020| D. No person shall possess or control a place where | 0021| there is an unlicensed gaming machine. Any unlicensed gaming | 0022| machine, except one in the possession of a licensee while awaiting | 0023| licensure of the machine, is subject to forfeiture and confiscation | 0024| by any law enforcement agency or officer. | 0025| E. No person shall service or repair a gaming device or | 0001| associated equipment unless he is licensed as a service technician. | 0002| F. No person shall engage in any activity for which the | 0003| board requires a license or permit without obtaining the license or | 0004| permit. | 0005| Section 15. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0006| A. The board shall establish the following categories | 0007| of licenses: | 0008| (1) manufacturers; | 0009| (2) distributors; | 0010| (3) operators; | 0011| (4) machines; | 0012| (5) service technicians; or | 0013| (6) any other category of license deemed | 0014| necessary for secure, orderly, effective and efficient control and | 0015| operation of gaming in the state. | 0016| B. No licensee shall hold more than one type of license | 0017| issued pursuant to the provisions of the Gaming Control Act or own | 0018| a majority interest in, manage or otherwise control a holder of | 0019| another type of license issued pursuant to the provisions of that | 0020| act. | 0021| C. Applicants for a license shall apply on forms | 0022| provided by the board and furnish all information requested by the | 0023| board. Submission of an application constitutes consent to a | 0024| credit check of the applicant and all persons having a substantial | 0025| interest in the applicant and any other background investigations | 0001| required pursuant to the Gaming Control Act or deemed necessary by | 0002| the board. | 0003| D. All licenses issued by the board pursuant to the | 0004| provisions of this section shall be reviewed for renewal annually, | 0005| unless revoked, suspended, canceled or terminated. | 0006| E. No license issued pursuant to the provisions of the | 0007| Gaming Control Act shall be transferred or assigned. | 0008| F. The application for a license shall include: | 0009| (1) the name of the proposed licensee; | 0010| (2) the location of the proposed operation; | 0011| (3) the gaming devices to be operated, supplied, | 0012| distributed or serviced; | 0013| (4) the names of all persons directly or | 0014| indirectly interested in the business of the applicant and the | 0015| nature of such interest; and | 0016| (5) such other information and details as the | 0017| board may require. | 0018| G. The board shall furnish to the applicant | 0019| supplemental forms that the applicant shall complete and file with | 0020| the application. Such supplemental forms shall require, but shall | 0021| not be limited to, complete information and details with respect to | 0022| the applicant's antecedents, habits, character, criminal records, | 0023| business activities, financial affairs and business associates, | 0024| covering at least a ten-year period immediately preceding the date | 0025| of filing of the application. | 0001| Section 16. [NEW MATERIAL] LICENSE FEES.-- | 0002| A. The following license fees shall be paid to the | 0003| board: | 0004| (1) manufacturer's license, twenty thousand | 0005| dollars ($20,000) for the initial license and five thousand dollars | 0006| ($5,000) for annual renewal; | 0007| (2) distributor's license, ten thousand dollars | 0008| ($10,000) for the initial license and one thousand dollars ($1,000) | 0009| for annual renewal; | 0010| (3) operator's license for a racetrack, fifty | 0011| thousand dollars ($50,000) for the initial license and ten thousand | 0012| dollars ($10,000) for annual renewal; operator's license for a | 0013| nonprofit organization, one thousand dollars ($1,000) for the | 0014| initial license and two hundred dollars ($200) for annual renewal; | 0015| and | 0016| (4) for each separate gaming machine licensed, | 0017| five hundred dollars ($500) initially and one hundred dollars | 0018| ($100) annually for renewal. | 0019| B. The board shall establish the license fee for | 0020| service technicians and the fee for any other license or permit by | 0021| regulation, but no fee established by the board shall exceed one | 0022| hundred dollars ($100). The board shall also establish by | 0023| regulation a nonrefundable application fee of no more than five | 0024| hundred dollars ($500) to be charged to any applicant. | 0025| Section 17. [NEW MATERIAL] GAMING OPERATOR LICENSEES--GENERAL PROVISIONS--PLAYER AGE LIMIT--RULES FOR PLACEMENT.-- | 0001| A. An applicant for licensure as a gaming operator | 0002| shall submit with the application a plan for assisting in the | 0003| prevention, education and treatment of compulsive gambling. The | 0004| plan shall include regular educational training sessions for | 0005| employees. Plan approval is a condition of issuance of the | 0006| license. | 0007| B. Gaming operator licensees shall be granted a license | 0008| to operate a specific number of machines on the premises identified | 0009| in the license application consistent with the Gaming Control Act | 0010| and regulations adopted pursuant to that act and shall be granted a | 0011| license for each gaming machine. | 0012| C. A gaming operator licensee that desires to change | 0013| the number of machines in operation on his premises shall apply to | 0014| the board for an amendment to his license authorizing a change in | 0015| the number of machines. | 0016| D. Gaming machines may be available for play only in an | 0017| area restricted to persons twenty-one years of age or older. A | 0018| gaming operator licensee shall erect a permanent physical barrier | 0019| to allow for multiple uses of the premises by persons of all ages. | 0020| For purposes of this section, "permanent physical barrier" means a | 0021| floor-to-ceiling wall separating the general areas from the | 0022| restricted areas. The entrance to the area where gaming machines | 0023| are located shall display a sign that the premises are restricted | 0024| to persons twenty-one years or older. Persons under the age of | 0025| twenty-one shall not enter the premises where gaming machines are | 0001| located. | 0002| E. No gaming operator licensee shall have automated | 0003| teller machines on the premises. | 0004| F. No gaming operator licensee shall provide, allow, | 0005| contract or arrange to provide alcohol or food at reduced prices as | 0006| an incentive or enticement to gamble. | 0007| G. No nonprofit organization shall be granted a license | 0008| as a gaming operator if gaming is intended as its primary business | 0009| or activity. | 0010| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0011| APPLICATIONS.-- | 0012| A. Any person that the board determines is qualified to | 0013| receive a license pursuant to the provisions of the Gaming Control | 0014| Act, having due consideration for the proper protection of the | 0015| health, safety, morals, good order and general welfare of the | 0016| inhabitants of this state and the declared policy of this state, | 0017| may be issued a license. The burden of proving qualifications is | 0018| on the applicant. | 0019| B. An application to receive a license shall not be | 0020| granted unless the board is satisfied that the applicant is: | 0021| (1) a person of good moral character, honesty and | 0022| integrity; | 0023| (2) a person whose prior activities, criminal | 0024| record, if any, reputation, habits and associations do not pose a | 0025| threat to the public interest or to the effective regulation and | 0001| control of gaming or create or enhance the dangers of unsuitable, | 0002| unfair or illegal practices, methods and activities in the conduct | 0003| of gaming or the carrying on of the business and financial | 0004| arrangements incidental thereto; and | 0005| (3) in all other respects qualified to be | 0006| licensed consistent with the laws of this state. | 0007| C. A license shall not be granted pursuant to the | 0008| Gaming Control Act unless the applicant has satisfied the board | 0009| that: | 0010| (1) the applicant has adequate business probity, | 0011| competence and experience in business or gaming; | 0012| (2) the proposed financing of the applicant is | 0013| adequate for the nature of the proposed license and from a suitable | 0014| source; any lender or other source of money or credit that the | 0015| board finds does not meet the standards set forth in Subsection B | 0016| of this section shall be deemed unsuitable; and | 0017| (3) the applicant is sufficiently capitalized | 0018| under standards set by the board to conduct the business covered by | 0019| the license applied for. | 0020| D. An application to receive a license constitutes a | 0021| request for a determination of the applicant's general moral | 0022| character, integrity and ability to participate or engage in or be | 0023| associated with gaming. Any written or oral statement made in the | 0024| course of an official proceeding of the board or by any witness | 0025| testifying under oath that is relevant to the purpose of the | 0001| proceeding is absolutely privileged and does not impose liability | 0002| for defamation or constitute a ground for recovery in any civil | 0003| action. | 0004| E. The board shall investigate the qualifications of | 0005| each applicant before any license is issued by the board and shall | 0006| continue to observe and monitor the conduct of all licensees and | 0007| the persons having a material involvement directly or indirectly | 0008| with a licensed gaming operation. | 0009| F. The board has the authority to deny any application | 0010| or limit, condition, restrict, revoke or suspend any license for | 0011| any reasonable cause. | 0012| G. The board may issue or deny a license to the | 0013| applicant. The board may limit or place those reasonable | 0014| conditions it deems necessary to the public interest upon any | 0015| license for which application has been made. | 0016| H. After the issuance of the license, it shall continue | 0017| in effect upon proper payment of the initial and renewal license | 0018| fees, subject to the power of the board to revoke, suspend, | 0019| condition or limit licenses. | 0020| I. The board has full and absolute power and authority | 0021| to deny any application for any cause it deems reasonable. If an | 0022| application is denied, the board shall prepare and file its written | 0023| decision upon which its order denying the application is based. | 0024| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES.--Within thirty days after filing of an application and receipt of | 0025| such supplemental information as the board may require, the board | 0001| shall commence the investigation of the applicant and shall conduct | 0002| those proceedings in accordance with applicable regulations as the | 0003| board may deem necessary. | 0004| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS FOR | 0005| COMPANIES.--In order to be eligible to receive a license, a company | 0006| shall: | 0007| A. be incorporated or otherwise organized and in good | 0008| standing in this state or incorporated or otherwise organized in | 0009| another state and qualified to do business in this state; | 0010| B. comply with all of the requirements of the laws of | 0011| this state pertaining to the company; and | 0012| C. maintain a ledger in the principal office of the | 0013| company in this state, which shall: | 0014| (1) at all times reflect the ownership of every | 0015| class of security issued by the company; and | 0016| (2) be available for inspection by the board at | 0017| all reasonable times without notice. | 0018| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0019| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company that applies | 0020| for a license shall provide the following information to the board | 0021| on forms provided by the board: | 0022| A. the organization, financial structure and nature of | 0023| the business to be operated, including the names and personal | 0024| history of all officers, directors and key executives; | 0025| B. the rights and privileges acquired by the holders of | 0001| different classes of authorized securities; | 0002| C. the terms and conditions of all outstanding loans, | 0003| mortgages, trust deeds, pledges or any other indebtedness or | 0004| security device pertaining to the proposed gaming operation or | 0005| other licensed activity in this state; | 0006| D. remuneration to persons other than directors, | 0007| officers and key executives exceeding one hundred thousand dollars | 0008| ($100,000) per year; | 0009| E. bonus and profit-sharing arrangements within the | 0010| company; | 0011| F. management and service contracts pertaining to the | 0012| proposed gaming operation or other licensed activity in this state; | 0013| G. balance sheets and profit and loss statements for at | 0014| least the three preceding fiscal years, or, if the company has not | 0015| been in business for a period of three years, balance sheets and | 0016| profit and loss statements from the time of its commencement of | 0017| business operations and projected for three years from the time of | 0018| its commencement of business operations. All balance sheets and | 0019| profit and loss statements shall be certified by independent | 0020| certified public accountants; and | 0021| H. any further financial data that the board may deem | 0022| necessary or appropriate for the protection of the state or | 0023| licensed gaming, or both. | 0024| Section 22. [NEW MATERIAL] INDIVIDUAL LICENSING OF | 0025| OFFICERS, DIRECTORS AND OTHER PERSONS.--All officers, directors, | 0001| equity security holders of five percent or more, partners, general | 0002| partners, limited partners, trustees and beneficiaries of the | 0003| company that holds or has applied for a license shall be licensed | 0004| individually, according to the provisions of the Gaming Control | 0005| Act, and if, in the judgment of the board, the public interest will | 0006| be served by requiring any or all of the company's key executives | 0007| to be licensed, the company shall require those persons to apply | 0008| for a license in accordance with the laws and requirements in | 0009| effect at the time the board requires the licensing. A person who | 0010| is required to be licensed by this section shall apply for a | 0011| license within thirty days after becoming an officer, director, | 0012| equity security holder of five percent or more, partner, general | 0013| partner, limited partner of five percent or more, trustee, | 0014| beneficiary or key executive. A person who is required to be | 0015| licensed pursuant to a decision of the board shall apply for a | 0016| license within thirty days after the board so requests. | 0017| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS OR | 0018| BECOMES SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON UNSUITABLE | 0019| PERSONS--OTHER REQUIREMENTS.-- | 0020| A. If the company applying for or holding a license is | 0021| or becomes a subsidiary, each nonpublicly traded holding company | 0022| and intermediary company with respect to the subsidiary company | 0023| shall: | 0024| (1) qualify to do business in New Mexico; and | 0025| (2) register with the board and furnish the board | 0001| the following information: | 0002| (a) a complete list of all beneficial owners | 0003| of five percent or more of its equity securities, which shall be | 0004| updated within thirty days after any change; | 0005| (b) the names of all corporate officers and | 0006| directors within thirty days of their appointment or election; | 0007| (c) the organization, financial structure | 0008| and nature of the business it operates; | 0009| (d) the terms, position, rights and | 0010| privileges of the different classes of securities outstanding; | 0011| (e) the terms on which its securities are to | 0012| be, and during the preceding three years have been, offered to the | 0013| public or otherwise; | 0014| (f) the terms and conditions of all | 0015| outstanding loans, mortgages, trust deeds, pledges or any other | 0016| indebtedness or security device pertaining to the applicant or | 0017| licensee; | 0018| (g) the extent of the securities holdings or | 0019| other interest in the holding company or intermediary company of | 0020| all officers, directors, key executives, underwriters, partners, | 0021| principals, trustees or any direct or beneficial owner, and the | 0022| amount of any remuneration paid them as compensation for their | 0023| services, in the form of salary, wages, fees or by contract, | 0024| pertaining to the licensee; | 0025| (h) remuneration to persons other than | 0001| directors, officers and key executives exceeding one hundred | 0002| thousand dollars ($100,000) per year; | 0003| (i) bonus and profit-sharing arrangements | 0004| within the holding company or intermediary company; | 0005| (j) management and service contracts | 0006| pertaining to the licensee; | 0007| (k) options existing or to be created in | 0008| respect to their securities or other interests; | 0009| (l) balance sheets and profit and loss | 0010| statements, certified by independent certified public accountants, | 0011| for not more than the three preceding fiscal years, or, if the | 0012| holding company or intermediary company has not been in existence | 0013| more than three years, balance sheets and profit and loss | 0014| statements from the time of its establishment, together with | 0015| projections for three years from the time of its establishment; | 0016| (m) any further financial statements | 0017| necessary or appropriate for the protection of the state, licensed | 0018| gaming, or both; and | 0019| (n) an annual profit and loss statement and | 0020| an annual balance sheet, and a copy of its annual federal income | 0021| tax return, within thirty days after the return is filed with the | 0022| federal government. | 0023| B. All equity security holders of five percent or more | 0024| of a holding company or intermediary company shall apply for and be | 0025| issued a license. | 0001| C. The board may in its discretion make such | 0002| investigations concerning the officers, directors, underwriters, | 0003| security holders, partners, principals, trustees or direct or | 0004| beneficial owners of any interest in any holding company or | 0005| intermediary company as it deems necessary, either at the time of | 0006| initial registration or at any time thereafter. | 0007| D. If at any time the board finds that any person | 0008| owning, controlling or holding with power to vote all or any part | 0009| of any class of securities of, or any interest in, any holding | 0010| company or intermediary company is unsuitable to be connected with | 0011| a licensee, it shall so notify both the unsuitable person and the | 0012| holding company or intermediary company. The unsuitable person | 0013| shall immediately offer the securities or other interest to the | 0014| issuing company for purchase. The company shall purchase the | 0015| securities or interest offered upon the terms and within the time | 0016| period ordered by the board. | 0017| E. Beginning upon the date when the board serves notice | 0018| of a determination of unsuitability pursuant to Subsection D of | 0019| this section, it is unlawful for the unsuitable person to: | 0020| (1) receive any dividend or interest upon any | 0021| securities held in the holding company or intermediary company, or | 0022| any dividend, payment or distribution of any kind from the holding | 0023| company or intermediary company; | 0024| (2) exercise, directly or indirectly or through | 0025| any proxy, trustee or nominee, any voting right conferred by the | 0001| securities or interest; or | 0002| (3) receive any remuneration in any form from the | 0003| licensee, or from any holding company or intermediary company with | 0004| respect to that licensee, for services rendered or otherwise. | 0005| F. A holding company or intermediary company subject to | 0006| the provisions of Subsection A of this section shall not make any | 0007| public offering of any of its equity securities unless such public | 0008| offering has been approved by the board. | 0009| G. This section does not apply to publicly traded | 0010| corporations, the stock of which is traded on recognized stock | 0011| exchanges, which shall instead comply with the provisions of | 0012| Section 24 of the Gaming Control Act. | 0013| Section 24. [NEW MATERIAL] REGISTRATION OF PUBLICLY | 0014| TRADED CORPORATIONS.-- | 0015| A. If a company applying for or holding a license is or | 0016| becomes a publicly traded corporation, the publicly traded | 0017| corporation shall register with the board and provide the following | 0018| information: | 0019| (1) the ownership of record of persons holding | 0020| five percent or more of the outstanding shares of any class of | 0021| equity securities issued by the publicly traded corporation; the | 0022| ledger may initially consist of a copy of its latest list of record | 0023| equity securities holders and thereafter be maintained by adding a | 0024| copy of such material as it is regularly received from the transfer | 0025| agent for its equity securities of any class that is outstanding; | 0001| (2) the names of all officers within thirty days | 0002| of their appointment; | 0003| (3) the names of all directors within thirty days | 0004| of their election or appointment; | 0005| (4) the organization, financial structure and | 0006| nature of the businesses it operates; | 0007| (5) the terms, position, rights and privileges of | 0008| the different classes of securities outstanding; | 0009| (6) the terms on which its securities are to be, | 0010| and during the preceding three years have been, offered to the | 0011| public or otherwise initially issued by it; | 0012| (7) the terms and conditions of all outstanding | 0013| loans, mortgages, trust deeds, pledges or any other indebtedness or | 0014| security device pertaining directly or indirectly to the licensee; | 0015| (8) remuneration exceeding one hundred thousand | 0016| dollars ($100,000) per year paid to persons other than directors, | 0017| officers and key executives who are actively and directly engaged | 0018| in the administration or supervision of the gaming activities of | 0019| the licensee; | 0020| (9) bonus and profit-sharing arrangements within | 0021| the publicly traded corporation directly or indirectly relating to | 0022| the gaming activities of the licensee; | 0023| (10) management and service contracts of the | 0024| publicly traded corporation pertaining to the licensee; | 0025| (11) options existing or to be created in respect | 0001| of its equity securities; | 0002| (12) balance sheets and profit and loss | 0003| statements, certified by independent certified public accountants, | 0004| for not less than the three preceding fiscal years. These balance | 0005| sheets and profit and loss statements may be those filed by it with | 0006| or furnished by it to another government agency that requires the | 0007| filing of substantially similar balance sheets; | 0008| (13) any further financial statements deemed | 0009| necessary or appropriate for the protection of the state, licensed | 0010| gaming, or both; and | 0011| (14) a description of the publicly traded | 0012| corporation's affiliated companies and intermediary companies, and | 0013| the various gaming licenses and approvals obtained by such | 0014| entities. | 0015| B. The board shall consider the following criteria in | 0016| determining whether to issue a registration to a publicly traded | 0017| corporation: | 0018| (1) the business history of the applicant, | 0019| including its record of financial stability, integrity and success | 0020| of its gaming operations in other jurisdictions; | 0021| (2) the current business activities and interest | 0022| of the applicant, as well as those of its officers, promoters, | 0023| lenders and other sources of financing, or any other individuals | 0024| associated therewith; | 0025| (3) the current financial structure of the | 0001| applicant, as well as changes that could reasonably be undisputed | 0002| to occur to that financial structure as a consequence of the | 0003| proposed action of the applicant; | 0004| (4) the present and proposed compensation | 0005| arrangement between the applicant and its directors, officers, key | 0006| executives, securities holders, lenders or other sources of | 0007| financing; | 0008| (5) the equity investment, commitment or | 0009| contribution of present or prospective directors, key executives, | 0010| investors, lenders or other sources of financing; and | 0011| (6) the dealings and arrangements, prospective or | 0012| otherwise, between the applicant and any investment bankers, | 0013| promoters, finders or lenders and other sources of financing. | 0014| C. The board may issue an order of registration upon | 0015| receipt of a proper application and consideration of the criteria | 0016| set forth in Subsection B of this section if it finds that the | 0017| registration would not be contrary to the public interest or the | 0018| policy set forth in the Gaming Control Act. | 0019| Section 25. [NEW MATERIAL] INDIVIDUAL LICENSING OF | 0020| DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL FROM POSITION IF | 0021| FOUND UNSUITABLE OR IF LICENSE IS DENIED OR REVOKED--SUSPENSION OF | 0022| SUITABILITY BY BOARD.-- | 0023| A. Each officer, director and key executive of a | 0024| holding company, intermediary company or publicly traded | 0025| corporation that the board determines is or is to become actively | 0001| and directly engaged in the administration or supervision of, or | 0002| any other significant involvement with, the activities of the | 0003| subsidiary licensee or applicant shall apply for and be issued a | 0004| finding of suitability therefor. | 0005| B. If any officer, director or key executive of a | 0006| holding company, intermediary company or publicly traded | 0007| corporation required to be found suitable pursuant to Subsection A | 0008| of this section fails to apply for a finding of suitability within | 0009| thirty days after being requested to do so by the board, or is not | 0010| found suitable by the board, or if his finding of suitability is | 0011| revoked after appropriate findings by the board, the holding | 0012| company, intermediary company or publicly traded corporation shall | 0013| immediately remove that officer, director or key executive from any | 0014| office or position in which the person is engaged in the | 0015| administration or supervision of, or any other involvement with, | 0016| the activities of the subsidiary licensee until the person is | 0017| thereafter found to be suitable. If the board suspends the finding | 0018| of suitability of any officer, director or key executive, the | 0019| holding company, intermediary company or publicly traded | 0020| corporation shall, immediately and for the duration of the | 0021| suspension, suspend that officer, director or key executive from | 0022| performance of any duties in which he is actively and directly | 0023| engaged in administration or supervision of, or any other | 0024| significant involvement with, the activities of the subsidiary | 0025| licensee. | 0001| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0002| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0003| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION--PROHIBITION.-- | 0004| A. Each person who individually or in association with | 0005| others, acquires, directly or indirectly, beneficial ownership of | 0006| five percent or more of any voting securities in a publicly traded | 0007| corporation registered with the board may be required to be found | 0008| suitable if the board has reason to believe that the acquisition of | 0009| the ownership would otherwise be inconsistent with the declared | 0010| policy of this state. | 0011| B. Each person who, individually or in association with | 0012| others, acquires, directly or indirectly, beneficial ownership of | 0013| five percent or more of any class of voting securities of a | 0014| publicly traded corporation registered with the board shall notify | 0015| the board within ten days after acquiring such interest. | 0016| C. Each person who, individually or in association with | 0017| others, acquires, directly or indirectly, the beneficial ownership | 0018| of more than ten percent of any class of voting securities of a | 0019| publicly traded corporation registered with the board, shall apply | 0020| to the board for a finding of suitability within thirty days after | 0021| acquiring such interest. | 0022| D. Institutional investors that have been exempted from | 0023| or have received a waiver of suitability requirements pursuant to | 0024| regulations adopted by the board are not required to comply with | 0025| this section. | 0001| E. Any person required by the board or by this section | 0002| to be found suitable shall: | 0003| (1) apply for a finding of suitability within | 0004| thirty days after the board requests that he do so; and | 0005| (2) together with the application, deposit with | 0006| the board a sum of money that will be adequate to pay the | 0007| reasonable costs and charges incurred in the investigation and | 0008| processing of the application, and deposit such additional sums as | 0009| are required by the board to pay final costs and charges. | 0010| F. Any person required by the board or this section to | 0011| be found suitable who subsequently is found unsuitable by the board | 0012| shall not hold directly or indirectly the beneficial ownership of | 0013| any security of a publicly traded corporation that is registered | 0014| with the board beyond that period of time prescribed by the board. | 0015| G. The board may, but is not required to, deem a person | 0016| qualified to hold a license or finding of suitability as required | 0017| by this section if such person currently holds a valid license or | 0018| finding of suitability issued by gaming regulatory authorities in | 0019| another jurisdiction, provided that the board finds that such other | 0020| jurisdiction has conducted a thorough investigation of the | 0021| applicant and has criteria substantially similar to those of the | 0022| board to determine when a person is to be found suitable or to | 0023| obtain a license. | 0024| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE OR | 0025| TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE OFFICERS AND | 0001| DIRECTORS--APPROVAL OF BOARD.-- | 0002| A. Before a licensed company, other than a publicly | 0003| traded corporation, may issue or transfer five percent or more of | 0004| its securities to any person, it shall file a report of its | 0005| proposed action with the board, which report shall request the | 0006| approval of the board. The board shall have ninety days within | 0007| which to approve or deny the request. If the board fails to act in | 0008| ninety days, the request is deemed approved. If the board denies | 0009| the request, the company shall not issue or transfer five percent | 0010| or more of its securities to the person about whom the request was | 0011| made. | 0012| B. A licensed company shall file a report of each | 0013| change of the corporate officers and directors with the board | 0014| within thirty days of such change. The board shall have ninety | 0015| days from the date the report is filed within which to approve or | 0016| disapprove such change. During the ninety-day period and | 0017| thereafter, if the board does not disapprove the change, an officer | 0018| or director shall be entitled to exercise all powers of the office | 0019| to which he was so elected or appointed. | 0020| C. A licensed company shall report to the board in | 0021| writing any change in company personnel who have been designated as | 0022| key executives. The report shall be made no later than thirty days | 0023| after the change. | 0024| D. The board may require that any licensed company | 0025| furnish the board with a copy of its federal income tax return | 0001| within thirty days after the return is filed with the federal | 0002| government. | 0003| Section 28. [NEW MATERIAL] LICENSING OF MANUFACTURERS OF | 0004| GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0005| A. Except as otherwise provided in Subsections B and C | 0006| of this section, it is unlawful for any person to operate, carry | 0007| on, conduct or maintain any form of manufacturing of any gaming | 0008| device for use or play in New Mexico or any form of manufacturing | 0009| of any gaming device in New Mexico for use or play outside of New | 0010| Mexico without first procuring and maintaining a manufacturer's | 0011| license. | 0012| B. A company that holds a gaming operator's license or | 0013| any of its registered holding companies may ship gaming devices to | 0014| affiliates licensed to conduct gaming operations in other | 0015| jurisdictions, or receive shipments of gaming devices from those | 0016| affiliates. | 0017| C. A company that holds a gaming operator's license or | 0018| the holding company of the licensed company may, within two years | 0019| after cessation of business, upon specific approval by the board, | 0020| dispose of by sale in a manner approved by the board any or all of | 0021| its gaming devices. | 0022| D. Any person whom the board determines is a suitable | 0023| person to receive a license under the provisions of this section | 0024| may be issued a manufacturer's license. | 0025| E. If the board determines that a person is unsuitable | 0001| to receive or hold a manufacturer's license: | 0002| (1) no new gaming device manufactured by the | 0003| person may be approved for use in this state; | 0004| (2) any previously approved gaming device | 0005| manufactured by the person is subject to revocation of approval if | 0006| the reasons for the denial of the license also apply to that gaming | 0007| device; | 0008| (3) no new gaming device or associated equipment | 0009| made by the manufacturer may be distributed, sold, transferred or | 0010| offered for use or play in New Mexico; and | 0011| (4) any association or agreement between the | 0012| manufacturer and a licensed distributor in New Mexico shall be | 0013| terminated, unless otherwise provided by the board; an agreement | 0014| between a manufacturer of gaming devices and a licensed distributor | 0015| in New Mexico shall be deemed to include a provision for its | 0016| termination without liability on the part of the licensed | 0017| distributor upon a finding by the board that the manufacturer is | 0018| unsuitable. Failure to include that condition in the agreement is | 0019| not a defense in any action brought pursuant to this section to | 0020| terminate the agreement. | 0021| F. A gaming device shall not be used and offered for | 0022| play by a licensed gaming operator unless it is identical in all | 0023| material aspects to a model that has been specifically tested and | 0024| approved by: | 0025| (1) the board; | 0001| (2) a laboratory selected by the board; or | 0002| (3) gaming officials in Nevada or New Jersey | 0003| after January 1, 1990. | 0004| G. The board may inspect every gaming device that is | 0005| manufactured: | 0006| (1) for use in New Mexico; or | 0007| (2) in New Mexico for use outside of New Mexico. | 0008| H. The board may inspect every gaming device that is | 0009| offered for play within New Mexico by a licensed gaming operator. | 0010| I. The board may inspect all associated equipment that | 0011| is manufactured and sold for use in New Mexico. | 0012| J. In addition to all other fees and charges imposed by | 0013| the Gaming Control Act, the board may determine, charge and collect | 0014| an inspection fee from each manufacturer, which shall not exceed | 0015| the actual cost of inspection and investigation. | 0016| K. The board may prohibit the use of a gaming device, | 0017| or associated equipment by a gaming operator licensee if it finds | 0018| that the gaming device or associated equipment does not meet the | 0019| requirements of this section or is otherwise inimical to the policy | 0020| of this state concerning gaming. | 0021| Section 29. [NEW MATERIAL] LICENSING OF DISTRIBUTORS OF | 0022| GAMING DEVICES.-- | 0023| A. It is unlawful for any person to operate, carry on, | 0024| conduct or maintain any form of distribution of any gaming device | 0025| for use or play in New Mexico without first obtaining and | 0001| maintaining a distributor's license. | 0002| B. Any person whom the board determines is a suitable | 0003| person to receive a license under the provisions of this section | 0004| may be issued a distributor's license. | 0005| C. If the board determines that a person is unsuitable | 0006| to receive or hold a distributor's license: | 0007| (1) no new gaming device distributed by the | 0008| person may be approved; | 0009| (2) any previously approved gaming device | 0010| distributed by the person is subject to revocation of approval if | 0011| the reasons for the denial of the license also apply to that gaming | 0012| device; | 0013| (3) no new gaming device or associated equipment | 0014| distributed by the distributor may be distributed, sold, | 0015| transferred or offered for use or play in New Mexico; and | 0016| (4) any association or agreement between the | 0017| distributor and a licensed gaming operator shall be terminated, | 0018| unless otherwise provided by the board. An agreement between a | 0019| distributor of gaming devices and a licensed gaming operator shall | 0020| be deemed to include a provision for its termination without | 0021| liability on the part of either party upon a finding by the board | 0022| that the other party is unsuitable. Failure to include that | 0023| condition in the agreement is not a defense in any action brought | 0024| pursuant to this section to terminate the agreement. | 0025| D. The board may inspect every gaming device that is | 0001| distributed for use in New Mexico. | 0002| E. The board may inspect all associated equipment that | 0003| is distributed for use in New Mexico. | 0004| F. In addition to all other fees and charges imposed by | 0005| the Gaming Control Act, the board may determine, charge and collect | 0006| an inspection fee from each distributor, which shall not exceed the | 0007| actual cost of inspection and investigation. | 0008| Section 30. [NEW MATERIAL] SUITABILITY OR LICENSING OF | 0009| CERTAIN PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS | 0010| WITH GAMING LICENSEE--TERMINATION OF ASSOCIATION.-- | 0011| A. The board may determine the suitability of any | 0012| person who furnishes services or property to a licensed gaming | 0013| operator under any arrangement pursuant to which the person | 0014| receives compensation based on earnings, profits or receipts from | 0015| gaming. The board may require the person to comply with the | 0016| requirements of the Gaming Control Act and with the regulations of | 0017| the board. If the board determines that the person is unsuitable, | 0018| it may require the arrangement to be terminated. | 0019| B. The board may require the application of any person | 0020| for a determination of suitability to be associated with a licensed | 0021| gaming operator if the person: | 0022| (1) does business on the premises of a gaming | 0023| establishment; or | 0024| (2) provides any goods or services to a licensed | 0025| gaming operator for a compensation that the board finds to be | 0001| grossly disproportionate to the value of the goods or services. | 0002| C. If the board determines that a person is unsuitable | 0003| to be associated with a licensed gaming operator, the association | 0004| shall be terminated. Any agreement that entitles a business other | 0005| than gaming to be conducted on the premises of a gaming | 0006| establishment, or entitles a person other than a licensed gaming | 0007| operator to conduct business with the licensed gaming operator, is | 0008| subject to termination upon a finding of unsuitability of the | 0009| person associated therewith. Every such agreement shall be deemed | 0010| to include a provision for its termination without liability on the | 0011| part of the licensed gaming operator upon a finding by the board | 0012| that the person associated therewith is unsuitable to be associated | 0013| with the licensed gaming operator. Failure to include that | 0014| condition in the agreement is not a defense in any action brought | 0015| pursuant to this section to terminate the agreement. If the | 0016| application is not presented to the board within thirty days | 0017| following demand or the unsuitable association is not terminated, | 0018| the board may pursue any remedy or combination of remedies provided | 0019| in the Gaming Control Act. | 0020| Section 31. REASONS FOR INVESTIGATIONS BY BOARD--COMPLAINT | 0021| BY BOARD--BOARD TO APPOINT HEARING EXAMINER--REVIEW BY BOARD--ORDER | 0022| OF BOARD.-- | 0023| A. The board shall make appropriate investigations to: | 0024| (1) determine whether there has been any | 0025| violation of the Gaming Control Act or of any regulations adopted | 0001| pursuant to that act; | 0002| (2) determine any facts, conditions, practices or | 0003| matters that it may deem necessary or proper to aid in the | 0004| enforcement of the Gaming Control Act or regulations adopted | 0005| pursuant to that act; | 0006| (3) aid in adopting regulations; | 0007| (4) secure information as a basis for | 0008| recommending legislation relating to the Gaming Control Act; or | 0009| (5) determine whether a licensee is able to meet | 0010| its financial obligations, including all financial obligations | 0011| imposed by the Gaming Control Act, as they become due. | 0012| B. If after any investigation the board is satisfied | 0013| that a license, registration, finding of suitability or prior | 0014| approval by the board of any transaction for which approval was | 0015| required or permitted under the provisions of the Gaming Control | 0016| Act should be limited, conditioned, suspended or revoked, or that a | 0017| fine should be levied, the board shall initiate a hearing by filing | 0018| a complaint and transmitting a copy of it to the licensee, together | 0019| therewith a summary of evidence in its possession bearing on the | 0020| matter and the transcript of testimony at any investigative hearing | 0021| conducted by or on behalf of the board. The complaint shall be a | 0022| written statement of charges that sets forth in ordinary and | 0023| concise language the acts or omissions with which the respondent is | 0024| charged. It shall specify the statutes or regulations that the | 0025| respondent is alleged to have violated but shall not consist merely | 0001| of charges raised in the language of the statutes or regulations. | 0002| The summary of the evidence shall be confidential and made | 0003| available only to the respondent until such time as it is offered | 0004| into evidence at any public hearing on the matter. | 0005| C. The respondent shall file an answer within thirty | 0006| days after service of the complaint. | 0007| D. Upon filing of the complaint the board shall appoint | 0008| a hearing examiner to conduct further proceedings. | 0009| E. The hearing examiner shall conduct proceedings in | 0010| accordance with the Gaming Control Act and the regulations adopted | 0011| by the board. After such proceedings as may be required or | 0012| permitted, the hearing examiner may recommend that the board take | 0013| any appropriate action, including revocation, suspension, | 0014| limitation or conditioning of a license, or imposition of a fine | 0015| not to exceed ten thousand dollars ($10,000) for each violation. | 0016| F. The hearing examiner shall prepare a written | 0017| decision containing his recommendation to the board and shall serve | 0018| it on all parties. Any respondent that disagrees with the hearing | 0019| examiner's recommendation may request the board, within ten days of | 0020| service of the recommendation, to review the recommendation. | 0021| G. If properly requested the board shall review the | 0022| recommendation. The board may remand the case to the hearing | 0023| examiner for the presentation of additional evidence upon a showing | 0024| of good cause why such evidence could not have been presented at | 0025| the previous hearing. | 0001| H. The board shall by a majority vote accept, reject or | 0002| modify the recommendation. | 0003| I. If the board limits, conditions, suspends or revokes | 0004| any license or imposes a fine or limits, conditions, suspends or | 0005| revokes any registration, finding of suitability or prior approval, | 0006| it shall issue its written order therefor. | 0007| J. The board's order is effective unless and until | 0008| reversed upon judicial review, except that the board may stay its | 0009| order pending a rehearing or judicial review upon such terms and | 0010| conditions as it deems proper. | 0011| Section 32. [NEW MATERIAL] EMERGENCY ORDERS OF BOARD.--The board may issue an emergency order for suspension, limitation | 0012| or conditioning of a license, registration, finding of suitability | 0013| or work permit or may issue an emergency order requiring a licensed | 0014| gaming establishment to exclude an individual licensee from the | 0015| premises of the licensed gaming establishment or not to pay an | 0016| individual licensee any remuneration for services or any profits, | 0017| income or accruals on his investment in the licensed gaming | 0018| establishment in the following manner: | 0019| A. an emergency order may be issued only when the board | 0020| believes that: | 0021| (1) any licensee has willfully failed to report, | 0022| pay or truthfully account for and pay over any fee imposed by the | 0023| provisions of the Gaming Control Act or willfully attempted in any | 0024| manner to evade or defeat any such fee or payment thereof; | 0025| (2) any licensee or gaming employee has cheated | 0001| at any gambling game; or | 0002| (3) the emergency order is necessary for the | 0003| immediate preservation of the public peace, health, safety, morals, | 0004| good order or general welfare; | 0005| B. the emergency order shall set forth the grounds upon | 0006| which it is issued, including a statement of facts constituting the | 0007| alleged emergency necessitating such action; | 0008| C. the emergency order is effective immediately upon | 0009| issuance and service upon the licensee or resident agent of the | 0010| licensee, gaming employee, or, in cases involving registration or | 0011| findings of suitability, upon issuance and service upon the person | 0012| or entity involved or resident agent of the entity involved; the | 0013| emergency order may suspend, limit, condition or take other action | 0014| in relation to the license of one or more persons in an operation, | 0015| without affecting other individual licensees or the licensed gaming | 0016| establishment. The emergency order remains effective until further | 0017| order of the board or final disposition of the case; and | 0018| D. within five days after issuance of an emergency | 0019| order, the board shall cause a complaint to be filed and served | 0020| upon the person or entity involved; thereafter, the person or | 0021| entity against whom the emergency order has been issued and served | 0022| is entitled to a hearing before the board and to judicial review of | 0023| the decision and order of the board in accordance with the | 0024| provisions of the board's regulations. | 0025| Section 33. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0001| CERTAIN PERSONS FROM ESTABLISHMENTS--PERSONS INCLUDED.-- | 0002| A. The board shall by regulation provide for the | 0003| establishment of a list of persons who are to be excluded or | 0004| ejected from any gaming establishment. The list may include any | 0005| person whose presence in the establishment is determined by the | 0006| board to pose a threat to the public interest or to licensed | 0007| gaming, or both. | 0008| B. In making the determination in Subsection A of this | 0009| section, the board may consider any: | 0010| (1) prior conviction of a crime that is a felony | 0011| under state or federal law, a crime involving moral turpitude or a | 0012| violation of the gaming laws of any jurisdiction; | 0013| (2) violation or conspiracy to violate the | 0014| provisions of the Gaming Control Act relating to: | 0015| (a) the failure to disclose an interest in a | 0016| gaming activity for which the person must obtain a license; or | 0017| (b) willful evasion of fees or taxes; | 0018| (3) notorious or unsavory reputation that would | 0019| adversely affect public confidence and trust that the gaming | 0020| industry is free from criminal or corruptive demands; or | 0021| (4) written order of any other governmental | 0022| agency in this state or any other state that authorizes the | 0023| exclusion or ejection of the person from an establishment at which | 0024| gaming is conducted. | 0025| C. A licensed gaming operator has the right, without | 0001| any list established by the board, to exclude or eject any person | 0002| from its gaming establishment who poses a threat to the public | 0003| interest or to licensed gaming or for any business reason. | 0004| D. Race, color, creed, national origin or ancestry, | 0005| age, disability or sex shall not be grounds for placing the name of | 0006| a person upon the list or for exclusion or ejection under | 0007| Subsection C of this section. | 0008| Section 34. [NEW MATERIAL] INTERNAL AND EXTERNAL CONTROL | 0009| SYSTEMS.-- | 0010| A. Each licensed gaming operator shall adopt internal | 0011| and external control systems that shall include, but not be limited | 0012| to, provisions for: | 0013| (1) safeguarding its assets and revenues, | 0014| especially the recording of cash and evidences of indebtedness; | 0015| (2) making and maintaining reliable records, | 0016| accounts and reports of transactions, operations and events, | 0017| including reports to the board; and | 0018| (3) a system by which the amount wagered on each | 0019| gaming machine and the amount paid out by each machine is recorded | 0020| on a daily basis, which results may be obtained by the board by | 0021| appropriate means as described in regulations promulgated by the | 0022| board; all manufacturers will be required to have such a system | 0023| available for licensed gaming operators for the gaming machines | 0024| that it supplies for use in New Mexico, and all distributors shall | 0025| make such a system available to operators. | 0001| B. The internal control system shall be designed to | 0002| reasonably ensure that: | 0003| (1) assets are safeguarded; | 0004| (2) financial records are accurate and reliable; | 0005| (3) transactions are performed only in accordance | 0006| with management's general or specific authorization; | 0007| (4) transactions are recorded adequately to | 0008| permit proper reporting of gaming revenue and of fees and taxes, | 0009| and to maintain accountability of assets; | 0010| (5) access to assets is permitted only in | 0011| accordance with management's specific authorization; | 0012| (6) recorded accountability for assets is | 0013| compared with actual assets at reasonable intervals and appropriate | 0014| action is taken with respect to any discrepancies; and | 0015| (7) functions, duties and responsibilities are | 0016| appropriately segregated and performed in accordance with sound | 0017| accounting and management practices by competent, qualified | 0018| personnel. | 0019| C. Each licensed gaming operator and each applicant for | 0020| a gaming operator's license shall describe, in the manner the board | 0021| may approve or require, its administrative and accounting | 0022| procedures in detail in a written system of internal control. Each | 0023| licensed gaming operator and applicant for a gaming operator's | 0024| license shall submit a copy of its written system to the board. | 0025| Each written system shall include: | 0001| (1) an organizational chart depicting appropriate | 0002| segregation of functions and responsibilities; | 0003| (2) a description of the duties and | 0004| responsibilities of each position shown on the organizational | 0005| chart; | 0006| (3) a detailed, narrative description of the | 0007| administrative and accounting procedures designed to satisfy the | 0008| requirements of Subsection A of this section; | 0009| (4) a written statement signed by the licensee's | 0010| chief financial officer and either the licensee's chief executive | 0011| officer or a licensed owner attesting that the system satisfies the | 0012| requirements of this section; | 0013| (5) if the written system is submitted by an | 0014| applicant, a letter from an independent certified public accountant | 0015| stating that the applicant's written system has been reviewed by | 0016| the accountant and complies with the requirements of this section; | 0017| and | 0018| (6) such other items as the board may require. | 0019| D. The board shall adopt and publish minimum standards | 0020| for internal control procedures. | 0021| Section 35. [NEW MATERIAL] GAMING EMPLOYEES--ISSUANCE OF | 0022| WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0023| A. A person shall not be employed as a gaming employee | 0024| unless the person holds a valid work permit issued by the board. | 0025| B. A work permit shall be issued and may be revoked by | 0001| the board as provided in regulations adopted by the board. | 0002| C. Any person whose work permit has been denied or | 0003| revoked may seek judicial review as provided in applicable law. | 0004| Section 36. [NEW MATERIAL] AGE REQUIREMENT FOR PATRONS | 0005| AND GAMING EMPLOYEES.--A person under the age of twenty-one years | 0006| of age shall not: | 0007| A. play, be allowed to play, place wagers or collect | 0008| winnings from, whether personally or through an agent, any game | 0009| authorized under the Gaming Control Act; or | 0010| B. be employed as a gaming employee. | 0011| Section 37. [NEW MATERIAL] ACCEPTANCE OF CREDIT | 0012| INSTRUMENTS BY LICENSEE.-- | 0013| A. A credit instrument evidencing a gaming debt is | 0014| authorized by the Gaming Control Act and may be enforced by legal | 0015| process. | 0016| B. A gaming operator licensee or person acting on the | 0017| licensee's behalf may accept an incomplete credit instrument that | 0018| is signed by a patron and states the amount of the debt in figures. | 0019| The licensee may complete the instrument as is necessary for the | 0020| instrument to be presented for payment. | 0021| C. A gaming operator licensee or person acting on | 0022| behalf of a licensee: | 0023| (1) shall not accept a credit instrument that is | 0024| incomplete except as authorized in Subsection B of this section; | 0025| and | 0001| (2) may accept a credit instrument that is | 0002| payable to an affiliate or affiliated company or may complete a | 0003| credit instrument in the name of an affiliate or affiliated company | 0004| as payout if the credit instrument otherwise complies with this | 0005| section and the records of the affiliate or an affiliated company | 0006| pertaining to the credit instrument are made available to the board | 0007| upon request. | 0008| D. This section does not prohibit the establishment of | 0009| an account by a deposit of cash, recognized traveler's check or any | 0010| other instrument that is equivalent to cash. | 0011| E. Any person, gaming operator licensee or its agents | 0012| or employees that violate the provisions of this section are | 0013| subject only to the penalties provided by regulations of the board. | 0014| The failure of a person to comply with the provisions of this | 0015| section or the regulations of the board does not invalidate a | 0016| credit instrument or affect the ability to enforce the credit | 0017| instrument or the debt that the credit instrument represents. | 0018| Section 38. [NEW MATERIAL] FACE VALUE OF CREDIT | 0019| INSTRUMENT INCLUDED IN COMPUTATION OF GROSS REVENUE--EXCEPTIONS--CASH RECEIVED IN PAYMENT OF DEBT NOT INCLUDED IN GROSS REVENUE.-- | 0020| A. For the purposes of the Gaming Control Act, except | 0021| as otherwise provided in Subsection C of this section, the | 0022| computation of gross revenue shall include the face value of any | 0023| credit instrument if, within two years after the last day of the | 0024| month following the month in which that instrument was accepted by | 0025| the gaming operator licensee, the board determines that: | 0001| (1) the instrument was not signed by the patron | 0002| or otherwise acknowledged by him in a written form satisfactory to | 0003| the board; | 0004| (2) the licensee did not have an address for the | 0005| patron at the time of accepting the instrument, or, in lieu of that | 0006| address, has not provided the board, within a reasonable time after | 0007| its request, the current address of the patron to whom the credit | 0008| was extended; | 0009| (3) the licensee has not provided the board any | 0010| evidence that the licensee made a reasonable effort to collect the | 0011| debt; | 0012| (4) the licensee has not provided the board any | 0013| evidence that the licensee checked the credit history of the patron | 0014| before extending credit to him; | 0015| (5) the licensee has not produced the instrument | 0016| within a reasonable time after a request by the board for the | 0017| instrument unless it: | 0018| (a) is in the possession of a court, | 0019| governmental agency or financial institution; | 0020| (b) has been returned to the patron upon his | 0021| partial payment of the instrument and the licensee has obtained a | 0022| substitute credit instrument for the remaining balance; | 0023| (c) has been stolen and the licensee has | 0024| made a written report of the theft to the appropriate law | 0025| enforcement agency; or | 0001| (d) cannot be produced because of any other | 0002| circumstance that is beyond the licensee's control; | 0003| (6) the signature of the patron on the instrument | 0004| was forged and the licensee has not made a written report of the | 0005| forgery to the appropriate law enforcement agency; or | 0006| (7) upon an audit by the board, the licensee | 0007| requested the auditors not to confirm the unpaid balance of the | 0008| debit with the patron and there is not other satisfactory means of | 0009| confirmation. | 0010| B. For the purpose of the Gaming Control Act, the | 0011| computation of gross revenue shall not include cash or its | 0012| equivalent that is received in full or partial payment of a debt | 0013| previously included in the computation of gross revenue pursuant to | 0014| Subsection A of this section. | 0015| C. The provisions of Subsection A of this section do | 0016| not apply to any credit instrument that is settled for less than | 0017| its face amount to: | 0018| (1) induce a substantial partial payment; | 0019| (2) compromise a dispute; or | 0020| (3) obtain a patron's business if: | 0021| (a) an agreement is entered into to discount | 0022| the face amount of a credit instrument before it is issued to | 0023| induce timely payment of the credit instrument; and | 0024| (b) the percentage of discount of the | 0025| instrument is reasonable as compared to the prevailing practice in | 0001| the industry. | 0002| Section 39. [NEW MATERIAL] CALCULATION OF GROSS REVENUE--CERTAIN EXPENSES NOT DEDUCTIBLE.-- | 0003| A. In calculating gross revenue, any prizes, premiums, | 0004| drawings, benefits or tickets that are redeemable for money or | 0005| merchandise or other promotional allowance, except money or tokens | 0006| paid at face value directly to a patron as the result of a specific | 0007| wager and the amount of cash paid to purchase an annuity to fund | 0008| losses paid to winning patrons, shall not be deducted as losses | 0009| from winnings at any game except a gaming machine. | 0010| B. In calculating gross revenue from gaming machines, | 0011| the actual cost to the licensee of any personal property | 0012| distributed to a patron as the result of a legitimate wager may be | 0013| deducted as a loss, but not travel expenses, food, refreshments, | 0014| lodging or services. For the purposes of this section, "as the | 0015| result of a legitimate wager" means that the patron must make a | 0016| wager prior to receiving the personal property, regardless of | 0017| whether the receipt of the personal property is dependent on the | 0018| outcome of the wager. | 0019| Section 40. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0020| LICENSE FEES.--No municipality or other political subdivision of | 0021| the state shall impose any license fee or tax on any licensee | 0022| licensed pursuant to the Gaming Control Act except for the | 0023| imposition of property taxes and gross receipts taxes. | 0024| Section 41. [NEW MATERIAL] USE OF CHIPS, TOKENS OR LEGAL | 0025| TENDER REQUIRED FOR ALL GAMING.--All gaming shall be conducted with | 0001| chips, tokens or other instrumentalities approved by the board or | 0002| with the legal currency of the United States. | 0003| Section 42. [NEW MATERIAL] RECORDS OF GAMING OPERATOR | 0004| LICENSEES.-- | 0005| A. A gaming operator licensee shall keep its books and | 0006| records to clearly show the amount of gross revenue and other | 0007| revenues received. | 0008| B. On a monthly basis, the gaming operator licensee | 0009| shall furnish to the board reports and information as the board may | 0010| require with respect to its activities on forms designed and | 0011| supplied for that purpose by the board. | 0012| Section 43. [NEW MATERIAL] COMMUNICATION OR DOCUMENT OF | 0013| APPLICANT OR LICENSEE ABSOLUTELY PRIVILEGED--PRIVILEGE NOT WAIVED--DISCLOSURE OF PRIVILEGED INFORMATION PROHIBITED.-- | 0014| A. Any communication or document of an applicant or | 0015| licensee is absolutely privileged and does not impose liability for | 0016| defamation or constitute a ground for recovery in any civil action | 0017| if it is required by: | 0018| (1) law or the regulations of the board; or | 0019| (2) a subpoena issued by the board to be made or | 0020| transmitted to the board. | 0021| B. The privilege created pursuant to Subsection A of | 0022| this section is not waived or lost because the document or | 0023| communication is disclosed to the board. | 0024| C. Notwithstanding the powers granted to the board by | 0025| the Gaming Control Act, the board: | 0001| (1) shall not release or disclose any privileged | 0002| information, documents or communications provided by an applicant | 0003| or licensee without the prior written consent of the applicant or | 0004| licensee or pursuant to a lawful court order after timely notice of | 0005| the proceedings has been given to the applicant or licensee; | 0006| (2) shall maintain all privileged information, | 0007| documents and communications in a secure place accessible only to | 0008| members of the board; and | 0009| (3) shall adopt procedures and regulations to | 0010| protect the privileged nature of information, documents and | 0011| communications provided by an applicant or licensee. | 0012| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0013| CONFIDENTIAL INFORMATION.--An application to a court for an order | 0014| requiring the board to release any information declared by law to | 0015| be confidential shall be made only upon motion in writing on ten | 0016| days' written notice to the board, the attorney general and all | 0017| persons who may be affected by the entry of such an order. Copies | 0018| of the motion and all papers filed in support of it shall be served | 0019| with the notice by delivering a copy in person or by certified mail | 0020| to the last known address of the person to be served. | 0021| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0022| SYSTEM.--The board shall develop and operate a central system into | 0023| which all licensed gaming machines are connected. The central | 0024| system shall be capable of: | 0025| A. monitoring continuously, retrieving and auditing the | 0001| operation, financial data and program information of the network; | 0002| B. disabling from operation or play any gaming machine | 0003| in the network that does not comply with the provisions of the | 0004| Gaming Control Act or the regulations of the board; | 0005| C. communicating, through program modifications or | 0006| other means equally effective, with all gaming machines licensed by | 0007| the board; | 0008| D. interacting, reading, communicating and linking with | 0009| gaming machines from a broad spectrum of manufacturers and | 0010| associated equipment; and | 0011| E. providing linkage to each gaming machine in the | 0012| network at a reasonable and affordable cost to the state or the | 0013| operator and allowing for program modifications and system updating | 0014| at a reasonable rate of cost. | 0015| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.--To be | 0016| eligible for licensure, each gaming machine shall meet all | 0017| specifications established by regulations of the board and: | 0018| A. be unable to be manipulated in a manner that affects | 0019| the random probability of winning plays or in any other manner | 0020| determined by the board to be desirable; | 0021| B. have at least one mechanism that accepts coins or | 0022| currency, but does not accept bills of denominations greater than | 0023| twenty dollars ($20.00); | 0024| C. be capable of having play suspended through the | 0025| central system by the director until the director resets the gaming | 0001| machine; | 0002| D. house nonresettable mechanical and electronic meters | 0003| within a readily accessible locked area of the gaming machine that | 0004| maintain a permanent record of all money inserted into the machine, | 0005| all cash payouts of winnings, all refunds of winnings made by the | 0006| machine's printer, all credits played for additional games and all | 0007| credits won by players; | 0008| E. have a printing mechanism capable of printing out at | 0009| the request of the director readings on the electronic meters of | 0010| the machine; | 0011| F. be capable of printing a ticket voucher stating the | 0012| value of a cash prize won by the player at the completion of each | 0013| game, the date and time of the day the game was played in a twenty-four-hour format showing hours and minutes, the machine serial | 0014| number, the sequential number of the ticket voucher and an | 0015| encrypted validation number for determining the validity of a | 0016| winning ticket voucher; | 0017| G. be capable of being linked to the board's central | 0018| system for the purpose of monitoring continuously and auditing the | 0019| operation, financial data and program information of the network as | 0020| required by the board; | 0021| H. provide for a payback value for each credit wagered, | 0022| determined over time, of not less than eighty percent or more than | 0023| ninety-six percent; | 0024| I. offer only games authorized and examined by the | 0025| board; and | 0001| J. display the gaming machine license issued for that | 0002| machine in an easily accessible place, before and during the time | 0003| that a machine is available for use. | 0004| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0005| ODDS.--The odds of winning on each gaming machine shall be posted | 0006| on or near each gaming machine. The board shall provide the manner | 0007| in which the odds shall be posted by regulation. | 0008| Section 48. [NEW MATERIAL] EXAMINATION OF MACHINES AND | 0009| EQUIPMENT--COST ALLOCATION.-- | 0010| A. The board shall examine prototypes of video gaming | 0011| machines and associated equipment of manufacturers seeking a | 0012| license as required pursuant to the provisions of the Gaming | 0013| Control Act. | 0014| B. The board by regulation shall require the | 0015| manufacturer seeking the licensing of a gaming machine or | 0016| associated equipment to pay the anticipated actual costs of the | 0017| examination in advance and, after the completion of the | 0018| examination, shall refund overpayments or charge and collect | 0019| amounts sufficient to reimburse the board for underpayments of | 0020| actual costs. | 0021| C. The board may contract for the examination of gaming | 0022| machines and associated equipment to meet the requirements of this | 0023| section. | 0024| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION--ADMINISTRATION.-- | 0025| A. An excise tax is imposed upon the privilege of | 0001| conducting gaming in the state. This tax shall be known as the | 0002| "gaming tax". | 0003| B. The gaming tax is measured as a percentage of gross | 0004| revenue of every licensed gaming operator. The rate of the tax is | 0005| fifteen percent. | 0006| C. The gaming tax shall be administered and collected | 0007| by the taxation and revenue department in cooperation with the | 0008| board, and the provisions of the Tax Administration Act apply to | 0009| the collection and administration of the tax. | 0010| Section 50. [NEW MATERIAL] APPLICATION OF STATE REVENUES | 0011| FROM GAMING--STATE GAMING FUND ESTABLISHED--DISTRIBUTIONS.-- | 0012| A. The "state gaming fund" is established as a separate | 0013| fund within the state treasury. The fund consists of all revenue | 0014| received from the imposition of the gaming tax, license and | 0015| application fees and any other source pursuant to the Gaming | 0016| Control Act. Interest accrued on the fund shall be credited to the | 0017| fund. | 0018| B. Money in the state gaming fund may be used only for | 0019| the following purposes and shall be distributed as follows: | 0020| (1) the payment of costs of administering the | 0021| Gaming Control Act and the money necessary to pay those costs is | 0022| appropriated to the board; | 0023| (2) five percent of the balance shall be | 0024| distributed at such times as the board provides by regulation, but | 0025| not less often than quarterly: | 0001| (a) among municipalities in the same | 0002| proportion as the gaming tax revenue raised pursuant to the Gaming | 0003| Control Act from racetrack licensees located within a municipality | 0004| bears to the total gaming tax revenue raised in the state from all | 0005| racetrack licensees; and | 0006| (b) among counties in the same proportion as | 0007| the gaming tax revenue raised pursuant to the Gaming Control Act | 0008| from racetrack licensees located in a county outside the boundaries | 0009| of any municipality bears to the total gaming tax revenue raised in | 0010| the state from all racetrack licensees; and | 0011| (3) the balance shall be paid into the general | 0012| fund. | 0013| Section 51. [NEW MATERIAL] FRAUDULENT ACTS--PENALTY.-- | 0014| A. A person commits an offense if the person knowingly: | 0015| (1) alters or misrepresents the outcome of a game | 0016| or other event on which wagers have been made after the outcome is | 0017| made sure but before it is revealed to the players; | 0018| (2) places, increases or decreases a bet or | 0019| determines the course of play after acquiring knowledge, not | 0020| available to all players, of the outcome of the game, or any event | 0021| that affects the outcome of the game or that is the subject of the | 0022| bet, or aids anyone in acquiring that knowledge for the purpose of | 0023| placing, increasing or decreasing a bet or determining the course | 0024| of play contingent upon that event or outcome; | 0025| (3) claims, collects or takes, or attempts to | 0001| claim, collect or take, money or anything of value in or from a | 0002| gambling game, with intent to defraud, without having made a wager | 0003| contingent thereon or claims, collects or takes an amount greater | 0004| than the amount won; | 0005| (4) entices or induces another to go to any place | 0006| where a gambling game is being conducted or operated in violation | 0007| of the provisions of the Gaming Control Act with the intent that | 0008| the other person play or participate in that gambling game; | 0009| (5) places or increases a bet after acquiring | 0010| knowledge of the outcome of the game or other event that is the | 0011| subject of the bet, including past-posting and pressing bets; | 0012| (6) reduces the amount wagered or cancels the bet | 0013| after acquiring knowledge of the outcome of the game or other event | 0014| that is the subject of the bet, including pinching bets; or | 0015| (7) manipulates, with the intent to cheat, any | 0016| component of a gaming device in a manner contrary to the designed | 0017| and normal operational purpose of the component, including, but not | 0018| limited to, varying the pull of the handle of a slot machine, with | 0019| knowledge that the manipulation affects the outcome of the game or | 0020| with knowledge of any event that affects the outcome of the game. | 0021| B. An offense under this section is a fourth degree | 0022| felony and upon conviction a person shall be sentenced pursuant to | 0023| the provisions of Section 31-18-15 NMSA 1978. | 0024| Section 52. [NEW MATERIAL] USE OF DEVICE FOR CALCULATING | 0025| PROBABILITIES.-- | 0001| A. A person commits an offense who, at a gaming | 0002| establishment, uses or possesses with the intent to use any device | 0003| to assist: | 0004| (1) in projecting the outcome of the game; | 0005| (2) in keeping track of the cards played; | 0006| (3) in analyzing the probability of the | 0007| occurrence of an event relating to the game; or | 0008| (4) in analyzing the strategy for playing or | 0009| betting to be used in the game. | 0010| B. An offense under this section is a misdemeanor and | 0011| upon conviction a person shall be sentenced pursuant to the | 0012| provisions of Section 31-19-1 NMSA 1978. | 0013| Section 53. [NEW MATERIAL] USE OF COUNTERFEIT OR | 0014| UNAPPROVED CHIPS OR TOKENS OR UNLAWFUL COINS OR DEVICES---POSSESSION OF CERTAIN DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0015| A. A person commits an offense who knowingly uses | 0016| counterfeit chips in a gambling game. | 0017| B. A person commits an offense who, in playing or using | 0018| any gambling game designed to be played with, to receive or to be | 0019| operated by chips or tokens approved by the board or by lawful | 0020| currency of the United States, knowingly uses chips or tokens other | 0021| than those approved by the board, uses currency that is not lawful | 0022| currency of the United States or uses currency not of the same | 0023| denomination as the currency intended to be used in that gambling | 0024| game. | 0025| C. A person, other than a duly authorized employee of a | 0001| gaming operator licensee or of the board acting in furtherance of | 0002| his employment within a gaming establishment, commits an offense | 0003| who knowingly has on his person or in his possession on or off the | 0004| premises of any licensed gaming establishment any device intended | 0005| to be used by him to violate the provisions of the Gaming Control | 0006| Act. | 0007| D. A person, other than a duly authorized employee of a | 0008| gaming operator licensee acting in furtherance of his employment | 0009| within a gaming establishment, commits an offense who knowingly has | 0010| on his person or in his possession on or off the premises of any | 0011| gaming establishment any key or device known by him to have been | 0012| designed for the purpose of and suitable for opening, entering or | 0013| affecting the operation of any gambling game, drop box or any | 0014| electronic or mechanical device connected thereto or for removing | 0015| money or other contents therefrom. | 0016| E. A person commits an offense who knowingly and with | 0017| intent to use them for cheating has on his person or in his | 0018| possession any paraphernalia for manufacturing slugs. As used in | 0019| this subsection, "paraphernalia for manufacturing slugs" means the | 0020| equipment, products and materials that are intended for use or | 0021| designed for use in manufacturing, producing, fabricating, | 0022| preparing, testing, analyzing, packaging, storing or concealing a | 0023| counterfeit facsimile of the chips or tokens approved by the board | 0024| or a lawful coin of the United States, the use of which is unlawful | 0025| pursuant to the Gaming Control Act. The term includes, but is not | 0001| limited to: | 0002| (1) lead or lead alloys; | 0003| (2) molds, forms or similar equipment capable of | 0004| producing a likeness of a gaming token or coin; | 0005| (3) melting pots or other receptacles; | 0006| (4) torches; and | 0007| (5) tongs, trimming tools or other similar | 0008| equipment. | 0009| F. Possession of more than two items of the equipment, | 0010| products or material described in Subsection E of this section | 0011| permits a rebuttable inference that the possessor intended to use | 0012| them for cheating. | 0013| G. An offense under this section is a third degree | 0014| felony and upon conviction a person shall be sentenced pursuant to | 0015| the provisions of Section 31-18-15 NMSA 1978. | 0016| Section 54. [NEW MATERIAL] CHEATING.-- | 0017| A. A person commits an offense who knowingly cheats at | 0018| any gambling game. | 0019| B. An offense under this section is a fourth degree | 0020| felony and upon conviction a person shall be sentenced pursuant to | 0021| the provisions of Section 31-18-15 NMSA 1978. | 0022| Section 55. [NEW MATERIAL] PENALTY FOR POSSESSION OF | 0023| DEVICE, EQUIPMENT OR MATERIAL MANUFACTURED, SOLD OR DISTRIBUTED IN | 0024| VIOLATION OF LAW.-- | 0025| A. A person commits an offense who knowingly possesses | 0001| any gaming device that has been manufactured, sold or distributed | 0002| in violation of the Gaming Control Act. | 0003| B. An offense under this section is a fourth degree | 0004| felony and upon conviction a person shall be sentenced pursuant to | 0005| the provisions of Section 31-18-15 NMSA 1978. | 0006| Section 56. [NEW MATERIAL] UNLAWFUL MANUFACTURE, SALE, | 0007| DISTRIBUTION, MARKING, ALTERING OR MODIFICATION OF EQUIPMENT AND | 0008| DEVICES ASSOCIATED WITH GAMING--UNLAWFUL INSTRUCTION.-- | 0009| A. A person commits an offense who manufactures, sells | 0010| or distributes any cards, chips, dice, game or device that is | 0011| intended by him to be used to violate any provision of the Gaming | 0012| Control Act. | 0013| B. A person commits an offense who marks, alters or | 0014| otherwise modifies any associated equipment or gaming device in a | 0015| manner that: | 0016| (1) affects the result of a wager by determining | 0017| win or loss; or | 0018| (2) alters the normal criteria of random | 0019| selection that affects the operation of a game or that determines | 0020| the outcome of a game. | 0021| C. A person commits an offense who instructs another in | 0022| cheating or in the use of any device for that purpose, with the | 0023| knowledge or intent that the information or use so conveyed may be | 0024| employed to violate any provision of the Gaming Control Act. | 0025| D. An offense under this section is a fourth degree | 0001| felony and upon conviction a person shall be sentenced pursuant to | 0002| the provisions of Section 31-18-15 NMSA 1978. | 0003| Section 57. [NEW MATERIAL] REPORTING AND RECORD | 0004| VIOLATIONS--PENALTY.-- | 0005| A. A person commits an offense if the person, in a | 0006| license application, in a book or record required to be maintained | 0007| by the Gaming Control Act or by a regulation adopted under that | 0008| act, or in a report required to be submitted by that act or a | 0009| regulation adopted under that act: | 0010| (1) knowingly makes a statement or entry that the | 0011| person knows to be false or misleading; or | 0012| (2) fails to maintain or make an entry the person | 0013| knows is required to be maintained or made. | 0014| B. A person commits an offense if the person knowingly | 0015| refuses to produce for inspection by the board a book, record or | 0016| document required to be maintained or made by the Gaming Control | 0017| Act or a regulation adopted under that act. | 0018| C. An offense under this section is a fourth degree | 0019| felony and upon conviction a person shall be sentenced pursuant to | 0020| the provisions of Section 31-18-15 NMSA 1978. | 0021| Section 58. [NEW MATERIAL] GAMING BY INDIVIDUAL UNDER | 0022| TWENTY-ONE YEARS OF AGE.-- | 0023| A. A person commits an offense if the person knowingly | 0024| permits an individual who the person knows is younger than twenty-one years of age to participate in gaming. | 0025| B. An individual commits an offense if the individual | 0001| participates in gaming and the individual is younger than twenty-one years of age at the time of participation. | 0002| C. An offense under this section is a misdemeanor and | 0003| upon conviction a person shall be sentenced pursuant to the | 0004| provisions of Section 31-19-1 NMSA 1978. | 0005| Section 59. [NEW MATERIAL] GENERAL PENALTIES FOR | 0006| VIOLATION OF ACT.-- | 0007| A. A person commits an offense who willfully violates, | 0008| attempts to violate or conspires to violate any of the provisions | 0009| of the Gaming Control Act specifying prohibited acts. | 0010| B. Any offense under the Gaming Control Act, the | 0011| classification of which is not specifically stated in that act, is | 0012| a misdemeanor and upon conviction a person shall be sentenced | 0013| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0014| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING OF | 0015| PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON LIABILITY--POSTING OF NOTICE.-- | 0016| A. Any gaming operator licensee or its officers, | 0017| employees or agents may question any person in its gaming | 0018| establishment suspected of violating any of the provisions of the | 0019| Gaming Control Act. No gaming operator licensee or any of its | 0020| officers, employees or agents is criminally or civilly liable: | 0021| (1) on account of any such questioning; or | 0022| (2) for reporting to the board or law enforcement | 0023| authorities the person suspected of the violation. | 0024| B. Any gaming operator licensee or any of its officers, | 0025| employees or agents who has reasonable cause for believing that | 0001| there has been a violation of the Gaming Control Act in the gaming | 0002| establishment by any person may take that person into custody and | 0003| detain him in the establishment in a reasonable manner and for a | 0004| reasonable length of time. Such a taking into custody and | 0005| detention does not render the licensee or his officers, employees | 0006| or agents criminally or civilly liable unless it is established by | 0007| clear and convincing evidence that the taking into custody and | 0008| detention are unreasonable under all the circumstances. | 0009| C. No gaming operator licensee or its officers, | 0010| employees or agents is entitled to the immunity from liability | 0011| provided for in Subsection B of this section unless there is | 0012| displayed in a conspicuous place in the gaming establishment a | 0013| notice in boldface type clearly legible and in substantially this | 0014| form: | 0015| "Any gaming operator licensee or any of his officers, | 0016| employees or agents who has reasonable cause for believing | 0017| that any person has violated any provision of the Gaming | 0018| Control Act prohibiting cheating in gaming may detain that | 0019| person in the establishment.". | 0020| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF BOARD | 0021| OR DIRECTOR ACTION.-- | 0022| A. Any person aggrieved by an action taken by the board | 0023| or the director may request and receive a hearing for the purpose | 0024| of reviewing the action. To obtain a hearing the aggrieved person | 0025| shall file a request for hearing with the board within thirty days | 0001| after the date the action is taken. Failure to file the request | 0002| within the specified time is an irrevocable waiver of the right to | 0003| a hearing, and the action complained of shall be final with no | 0004| further right to review, either administratively or by a court. | 0005| B. The board shall adopt procedural regulations to | 0006| govern the procedures to be followed in administrative hearings | 0007| pursuant to the provisions of this section. As a minimum, the | 0008| regulations shall provide: | 0009| (1) for the hearings to be public; | 0010| (2) for the appointment of a hearing officer to | 0011| conduct the hearing and make his recommendation to the board not | 0012| more than ten days after the completion of the hearing; | 0013| (3) procedures for discovery; | 0014| (4) assurance that procedural due process | 0015| requirements are satisfied; | 0016| (5) for the maintenance of a record of the | 0017| hearing proceedings and assessment of costs of any transcription of | 0018| testimony that is required for judicial review purposes; and | 0019| (6) for the place of the hearing to be in Santa | 0020| Fe for hearings on actions of statewide application and for | 0021| enforcement hearings on actions of statewide application and for | 0022| enforcement hearings and for hearings on actions of limited local | 0023| concern to be held in the place or area affected. | 0024| C. Actions taken by the board after a hearing pursuant | 0025| to the provisions of this section shall be: | 0001| (1) written and shall state the reasons for the | 0002| action; | 0003| (2) made public when taken; | 0004| (3) communicated to all persons who have made a | 0005| written request for notification of the action taken; and | 0006| (4) taken within not more than thirty days after | 0007| the submission of the hearing officer's report to the board. | 0008| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0009| ADMINISTRATIVE ACTIONS.-- | 0010| A. Any person adversely affected by an action taken by | 0011| the board after review pursuant to the provisions of Section 60 of | 0012| the Gaming Control Act may appeal the action to the court of | 0013| appeals. The appeal shall be on the record made at the hearing. | 0014| To support his appeal, the appellant shall make arrangements with | 0015| the board for a sufficient number of transcripts of the record of | 0016| the hearing on which the appeal is based. The appellant shall pay | 0017| for the preparation of the transcripts. | 0018| B. On appeal, the court of appeals shall set aside the | 0019| administrative action only if it is found to be: | 0020| (1) arbitrary, capricious or an abuse of | 0021| discretion; | 0022| (2) not supported by substantial evidence in the | 0023| whole record; or | 0024| (3) otherwise not in accordance with law. | 0025| Section 63. [NEW MATERIAL] PERMITTED GAMING.-- | 0001| A. The gaming activities listed in Subsection B of this | 0002| section are permitted within the state, but only on Indian land: | 0003| (1) under governmental control of an Indian | 0004| nation, tribe or pueblo that has a valid compact with the state of | 0005| New Mexico pursuant to the provisions of the federal Indian Gaming | 0006| Regulatory Act; and | 0007| (2) the title to which is held in trust by the | 0008| federal government or is subject to restriction by the federal | 0009| government against alienation. | 0010| B. Gaming activities that are permitted pursuant to the | 0011| conditions stated in Subsection A of this section are limited to: | 0012| (1) electronic video gaming machines; | 0013| (2) electronic, electromechanical or mechanical | 0014| slot machines; | 0015| (3) card games, including: | 0016| (a) poker; | 0017| (b) blackjack; or | 0018| (c) baccarat; | 0019| (4) roulette; | 0020| (5) craps; | 0021| (6) wheels of fortune; | 0022| (7) keno; or | 0023| (8) lotteries. | 0024| Section 64. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0025| Chapter 248, Section 2, as amended) is amended to read: | 0001| "7-1-2. APPLICABILITY.--The Tax Administration Act applies | 0002| to and governs: | 0003| A. the administration and enforcement of the following | 0004| taxes or tax acts as they now exist or may hereafter be amended: | 0005| (1) Income Tax Act; | 0006| (2) Withholding Tax Act; | 0007| (3) Gross Receipts and Compensating Tax Act and | 0008| any state gross receipts tax; | 0009| (4) Liquor Excise Tax Act; | 0010| (5) Local Liquor Excise Tax Act; | 0011| [(6) Banking and Financial Corporations Tax Act; | 0012| (7)] (6) any municipal local option gross | 0013| receipts tax; | 0014| [(8)] (7) any county local option gross | 0015| receipts tax; | 0016| [(9)] (8) Special Fuels Supplier Tax Act; | 0017| [(10)] (9) Gasoline Tax Act; | 0018| [(11)] (10) petroleum products loading fee, | 0019| which fee shall be considered a tax for the purpose of the Tax | 0020| Administration Act; | 0021| [(12)] (11) Cigarette Tax Act; | 0022| [(13)] (12) Estate Tax Act; | 0023| [(14)] (13) Railroad Car Company Tax Act; | 0024| [(15)] (14) Investment Credit Act; | 0025| [(16)] (15) Corporate Income Tax Act; | 0001| [(17)] (16) Corporate Income and Franchise | 0002| Tax Act; | 0003| [(18)] (17) Uniform Division of Income for | 0004| Tax Purposes Act; | 0005| [(19)] (18) Multistate Tax Compact; | 0006| [(20)] (19) Tobacco Products Tax Act; | 0007| [(21)] (20) Filmmaker's Credit Act; and | 0008| [(22)] (21) the telecommunications relay | 0009| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0010| surcharge shall be considered a tax for the purposes of the Tax | 0011| Administration Act; | 0012| B. the administration and enforcement of the following | 0013| taxes, surtaxes, advanced payments or tax acts as they now exist or | 0014| may hereafter be amended: | 0015| (1) Resources Excise Tax Act; | 0016| (2) Severance Tax Act; | 0017| (3) any severance surtax; | 0018| (4) Oil and Gas Severance Tax Act; | 0019| (5) Oil and Gas Conservation Tax Act; | 0020| (6) Oil and Gas Emergency School Tax Act; | 0021| (7) Oil and Gas Ad Valorem Production Tax Act; | 0022| (8) Natural Gas Processors Tax Act; | 0023| (9) Oil and Gas Production Equipment Ad Valorem | 0024| Tax Act; | 0025| (10) Copper Production Ad Valorem Tax Act; and | 0001| (11) any advance payment required to be made by | 0002| any act specified in this subsection, which advance payment shall | 0003| be considered a tax for the purposes of the Tax Administration Act; | 0004| C. the administration and enforcement of the following | 0005| taxes, surcharges, fees or acts as they now exist or may hereafter | 0006| be amended: | 0007| (1) Weight Distance Tax Act; | 0008| (2) Special Fuels Tax Act; | 0009| (3) the workers' compensation fee authorized by | 0010| Section 52-5-19 NMSA 1978, which fee shall be considered a tax for | 0011| purposes of the Tax Administration Act; | 0012| (4) Controlled Substance Tax Act; | 0013| (5) Uniform Unclaimed Property Act; | 0014| (6) 911 emergency surcharge and the network and | 0015| database surcharge, which surcharges shall be considered taxes for | 0016| purposes of the Tax Administration Act; | 0017| (7) the solid waste assessment fee authorized by | 0018| the Solid Waste Act, which fee shall be considered a tax for | 0019| purposes of the Tax Administration Act; [and] | 0020| (8) the water conservation fee imposed by Section | 0021| 74-1-13 NMSA 1978, which fee shall be considered a tax for the | 0022| purposes of the Tax Administration Act; and | 0023| (9) the gaming tax imposed pursuant to the | 0024| Gaming Control Act; and | 0025| D. the administration and enforcement of all other | 0001| laws, with respect to which the department is charged with | 0002| responsibilities pursuant to the Tax Administration Act, but only | 0003| to the extent that such other laws do not conflict with the Tax | 0004| Administration Act." | 0005| Section 65. A new section of the Tax Administration Act is | 0006| enacted to read: | 0007| "[NEW MATERIAL] DISTRIBUTION OF GAMING TAX.--A | 0008| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to | 0009| the state gaming fund of the net receipts attributable to the | 0010| gaming tax." | 0011| Section 66. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0012| Chapter 91, Section 1, as amended) is amended to read: | 0013| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0014| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0015| A. In recognition of the fact that a representative | 0016| government is dependent upon an informed electorate, it is declared | 0017| to be public policy of this state that all persons are entitled to | 0018| the greatest possible information regarding the affairs of | 0019| government and the official acts of those officers and employees | 0020| who represent them. The formation of public policy or the conduct | 0021| of business by vote shall not be conducted in closed meeting. All | 0022| meetings of any public body except the legislature and the courts | 0023| shall be public meetings and all persons so desiring shall be | 0024| permitted to attend and listen to the deliberations and | 0025| proceedings. Reasonable efforts shall be made to accommodate the | 0001| use of audio and video recording devices. | 0002| B. All meetings of a quorum of members of any board, | 0003| commission, administrative adjudicatory body or other policymaking | 0004| body of any state agency, any agency or authority of any county, | 0005| municipality, district or any political subdivision, held for the | 0006| purpose of formulating public policy, including the development of | 0007| personnel policy, rules, regulations or ordinances, discussing | 0008| public business or for the purpose of taking any action within the | 0009| authority of or the delegated authority of any board, commission or | 0010| other policymaking body are declared to be public meetings open to | 0011| the public at all times, except as otherwise provided in the | 0012| constitution of New Mexico or the Open Meetings Act. No public | 0013| meeting once convened that is otherwise required to be open | 0014| pursuant to the Open Meetings Act shall be closed or dissolved into | 0015| small groups or committees for the purpose of permitting the | 0016| closing of the meeting. | 0017| C. If otherwise allowed by law or rule of the public | 0018| body, a member of a public body may participate in a meeting of the | 0019| public body by means of a conference telephone or other similar | 0020| communications equipment when it is otherwise difficult or | 0021| impossible for the member to attend the meeting in person, provided | 0022| that each member participating by conference telephone can be | 0023| identified when speaking, all participants are able to hear each | 0024| other at the same time and members of the public attending the | 0025| meeting are able to hear any member of the public body who speaks | 0001| during the meeting. | 0002| D. Any meetings at which the discussion or adoption of | 0003| any proposed resolution, rule, regulation or formal action occurs | 0004| and at which a majority or quorum of the body is in attendance, and | 0005| any closed meetings, shall be held only after reasonable notice to | 0006| the public. The affected body shall determine at least annually in | 0007| a public meeting what notice for a public meeting is reasonable | 0008| when applied to that body. That notice shall include broadcast | 0009| stations licensed by the federal communications commission and | 0010| newspapers of general circulation that have provided a written | 0011| request for such notice. | 0012| E. A public body may recess and reconvene a meeting to | 0013| a day subsequent to that stated in the meeting notice if, prior to | 0014| recessing, the public body specifies the date, time and place for | 0015| continuation of the meeting, and, immediately following the | 0016| recessed meeting, posts notice of the date, time and place for the | 0017| reconvened meeting on or near the door of the place where the | 0018| original meeting was held and in at least one other location | 0019| appropriate to provide public notice of the continuation of the | 0020| meeting. Only matters appearing on the agenda of the original | 0021| meeting may be discussed at the reconvened meeting. | 0022| F. Meeting notices shall include an agenda containing a | 0023| list of specific items of business to be discussed or transacted at | 0024| the meeting or information on how the public may obtain a copy of | 0025| such an agenda. Except in the case of an emergency, the agenda | 0001| shall be available to the public at least twenty-four hours prior | 0002| to the meeting. Except for emergency matters, a public body shall | 0003| take action only on items appearing on the agenda. For purposes of | 0004| this subsection, an "emergency" refers to unforeseen circumstances | 0005| that, if not addressed immediately by the public body, will likely | 0006| result in injury or damage to persons or property or substantial | 0007| financial loss to the public body. | 0008| G. The board, commission or other policymaking body | 0009| shall keep written minutes of all its meetings. The minutes shall | 0010| include at a minimum the date, time and place of the meeting, the | 0011| names of members in attendance and those absent, the substance of | 0012| the proposals considered and a record of any decisions and votes | 0013| taken that show how each member voted. All minutes are open to | 0014| public inspection. Draft minutes shall be prepared within ten | 0015| working days after the meeting and shall be approved, amended or | 0016| disapproved at the next meeting where a quorum is present. Minutes | 0017| shall not become official until approved by the policymaking body. | 0018| H. The provisions of Subsections A, B and G of this | 0019| section do not apply to: | 0020| (1) meetings pertaining to issuance, suspension, | 0021| renewal or revocation of a license, except that a hearing at which | 0022| evidence is offered or rebutted shall be open. All final actions | 0023| on the issuance, suspension, renewal or revocation of a license | 0024| shall be taken at an open meeting; | 0025| (2) limited personnel matters; provided that for | 0001| purposes of the Open Meetings Act, "limited personnel matters" | 0002| means the discussion of hiring, promotion, demotion, dismissal, | 0003| assignment or resignation of or the investigation or consideration | 0004| of complaints or charges against any individual public employee; | 0005| provided further that this subsection is not to be construed as to | 0006| exempt final actions on personnel from being taken at open public | 0007| meetings, nor does it preclude an aggrieved public employee from | 0008| demanding a public hearing. Judicial candidates interviewed by any | 0009| commission shall have the right to demand an open interview; | 0010| (3) deliberations by a public body in connection | 0011| with an administrative adjudicatory proceeding. For purposes of | 0012| this paragraph, an "administrative adjudicatory proceeding" means a | 0013| proceeding brought by or against a person before a public body in | 0014| which individual legal rights, duties or privileges are required by | 0015| law to be determined by the public body after an opportunity for a | 0016| trial-type hearing. Except as otherwise provided in this section, | 0017| the actual administrative adjudicatory proceeding at which evidence | 0018| is offered or rebutted and any final action taken as a result of | 0019| the proceeding shall occur in an open meeting; | 0020| (4) the discussion of personally identifiable | 0021| information about any individual student, unless the student, his | 0022| parent or guardian requests otherwise; | 0023| (5) meetings for the discussion of bargaining | 0024| strategy preliminary to collective bargaining negotiations between | 0025| the policymaking body and a bargaining unit representing the | 0001| employees of that policymaking body and collective bargaining | 0002| sessions at which the policymaking body and the representatives of | 0003| the collective bargaining unit are present; | 0004| (6) that portion of meetings at which a decision | 0005| concerning purchases in an amount exceeding two thousand five | 0006| hundred dollars ($2,500) that can be made only from one source, and | 0007| that portion of meetings at which the contents of competitive | 0008| sealed proposals solicited pursuant to the Procurement Code are | 0009| discussed during the contract negotiation process. The actual | 0010| approval of purchase of the item or final action regarding the | 0011| selection of a contractor shall be made in an open meeting; | 0012| (7) meetings subject to the attorney-client | 0013| privilege pertaining to threatened or pending litigation in which | 0014| the public body is or may become a participant; | 0015| (8) meetings for the discussion of the purchase, | 0016| acquisition or disposal of real property or water rights by the | 0017| public body; [and] | 0018| (9) those portions of meetings of committees or | 0019| boards of public hospitals that receive less than fifty percent of | 0020| their operating budget from direct public funds and appropriations | 0021| where strategic and long-range business plans are discussed; and | 0022| (10) that portion of a meeting of the gaming | 0023| control board dealing with information made confidential pursuant | 0024| to the provisions of the Gaming Control Act. | 0025| I. If any meeting is closed pursuant to the exclusions | 0001| contained in Subsection H of this section, the closure: | 0002| (1) if made in an open meeting, shall be approved | 0003| by a majority vote of a quorum of the policymaking body; the | 0004| authority for the closure and the subject to be discussed shall be | 0005| stated with reasonable specificity in the motion calling for the | 0006| vote on a closed meeting; the vote shall be taken in an open | 0007| meeting; and the vote of each individual member shall be recorded | 0008| in the minutes. Only those subjects announced or voted upon prior | 0009| to closure by the policymaking body may be discussed in a closed | 0010| meeting; and | 0011| (2) if called for when the policymaking body is | 0012| not in an open meeting, shall not be held until public notice, | 0013| appropriate under the circumstances, stating the specific provision | 0014| of the law authorizing the closed meeting and stating with | 0015| reasonable specificity the subject to be discussed is given to the | 0016| members and to the general public. | 0017| J. Following completion of any closed meeting, the | 0018| minutes of the open meeting that was closed or the minutes of the | 0019| next open meeting if the closed meeting was separately scheduled | 0020| shall state that the matters discussed in the closed meeting were | 0021| limited only to those specified in the motion for closure or in the | 0022| notice of the separate closed meeting. This statement shall be | 0023| approved by the public body under Subsection G of this section as | 0024| part of the minutes." | 0025| Section 67. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0001| Chapter 303, Section 19-1, as amended) is amended to read: | 0002| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0003| Chapter 30, Article 19 NMSA 1978: | 0004| A. "antique gambling device" means a gambling device | 0005| twenty-five years of age or older and substantially in original | 0006| condition that is not used for gambling or commercial gambling or | 0007| located in a gambling place; | 0008| B. "bet" means a bargain in which the parties agree | 0009| that, dependent upon chance, even though accompanied by some skill, | 0010| one stands to win or lose anything of value specified in the | 0011| agreement. A "bet" does not include: | 0012| (1) bona fide business transactions that are | 0013| valid under the law of contracts, including [without limitation]: | 0014| (a) contracts for the purchase or sale, at a | 0015| future date, of securities or other commodities; and | 0016| (b) agreements to compensate for loss caused | 0017| by the happening of the chance, including [without limitation] | 0018| contracts for indemnity or guaranty and life or health and accident | 0019| insurance; | 0020| (2) offers of purses, prizes or premiums to the | 0021| actual contestants in any bona fide contest for the determination | 0022| of skill, speed, strength or endurance or to the bona fide owners | 0023| of animals or vehicles entered in such contest; | 0024| (3) a lottery as defined in this section; or | 0025| (4) betting otherwise permitted by law; | 0001| [C. "lottery" means an enterprise other than the New | 0002| Mexico state lottery established and operated pursuant to the New | 0003| Mexico Lottery Act wherein, for a consideration, the participants | 0004| are given an opportunity to win a prize, the award of which is | 0005| determined by chance, even though accompanied by some skill. As | 0006| used in this subsection, "consideration" means anything of | 0007| pecuniary value required to be paid to the promoter in order to | 0008| participate in such enterprise | 0009| D.] C. "gambling device" means a contrivance other | 0010| than an antique gambling device that, for a consideration, affords | 0011| the player an opportunity to obtain anything of value, the award of | 0012| which is determined by chance, even though accompanied by some | 0013| skill, [and] whether or not the prize is automatically paid by | 0014| the device and that is not licensed for use pursuant to the Gaming | 0015| Control Act; | 0016| [E.] D. "gambling place" means [any] a building | 0017| or tent, [any] a vehicle, whether self-propelled or not, or | 0018| [any] a room within any of them, that is not within the | 0019| premises of a person licensed as a lottery retailer or to provide | 0020| gaming pursuant to the New Mexico Lottery Act or the Gaming Control | 0021| Act and one of whose principal uses is: | 0022| (1) making and settling of bets; | 0023| (2) receiving, holding, recording or forwarding | 0024| bets or offers to bet; | 0025| (3) conducting lotteries; or | 0001| (4) playing gambling devices; and | 0002| E. "lottery" means an enterprise wherein, for a | 0003| consideration, the participants are given an opportunity to win a | 0004| prize, the award of which is determined by chance, even though | 0005| accompanied by some skill. "Lottery" does not include the New | 0006| Mexico state lottery established and operated pursuant to the New | 0007| Mexico Lottery Act or gaming that is licensed and operated pursuant | 0008| to the Gaming Control Act. As used in this section, | 0009| "consideration" means anything of pecuniary value required to be | 0010| paid to the promoter in order to participate in a gambling or | 0011| gaming enterprise." | 0012| Section 68. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0013| Chapter 303, Section 19-6, as amended) is amended to read: | 0014| "30-19-6. [PERMISSIVE LOTTERY] AUTHORIZED ACTIVITIES-- | 0015| FAIRS--THEATERS--TAX-EXEMPT ORGANIZATIONS.-- | 0016| A. Nothing in [Article 19] Chapter 30, Article 19 | 0017| NMSA 1978 [shall be construed to apply to any] prohibits a sale | 0018| or drawing of [any] a prize at [any] a fair held in this | 0019| state for the benefit of [any] a church, public library or | 0020| religious society [situate or being] located in this state, or | 0021| for charitable purposes when all the proceeds of [such] the | 0022| fair [shall be] are expended in this state for the benefit of | 0023| [such] the church, public library, religious society or | 0024| charitable purposes. | 0025| A [lottery shall be operated] sale or drawing conducted | 0001| pursuant to this subsection is for the benefit of the organization | 0002| or charitable purpose only [when] if the entire proceeds [of | 0003| the lottery] from the sale or drawing go to the organization or | 0004| charitable purpose and no part of [such] the proceeds go to any | 0005| individual member or employee [thereof] of the organization. | 0006| B. Nothing in [Article 19] Chapter 30, Article 19 | 0007| NMSA 1978 [shall be held to prohibit any] prohibits a bona fide | 0008| motion picture [theatre] theater from offering prizes of cash | 0009| or merchandise for advertising purposes, in connection with | 0010| [such] the business of the theater or for the purpose of | 0011| stimulating business, whether or not [any] consideration other | 0012| than a monetary consideration in excess of the regular price of | 0013| admission is [exacted] charged for participation in drawings | 0014| for prizes. | 0015| C. Nothing in [Article 19] Chapter 30, Article 19 | 0016| NMSA 1978 [shall be held to apply to any] prohibits a bona fide | 0017| county fair, including [fairs] fair for more than one county, | 0018| [which shall have] that has been held annually at the same | 0019| location for at least two years [and which shall offer] from | 0020| offering prizes of livestock or poultry in connection with | 0021| [such] the fair [when] if the proceeds of [such] the | 0022| drawings [shall be] are used for the benefit of [said] the | 0023| fair. | 0024| D. Nothing in [Article 19] Chapter 30, Article 19 | 0025| NMSA 1978 [shall be construed to apply to] prohibits any | 0001| lottery operated by an organization exempt from the state income | 0002| tax pursuant to Subsection C of Section 7-2-4 NMSA 1978 and not | 0003| subject to the provisions of Subsection A of this section; provided | 0004| that: | 0005| (1) no more than two lotteries shall be operated | 0006| in any year by such an organization; | 0007| (2) all the gross proceeds less the reasonable | 0008| cost of prizes of any lottery operated by such an organization | 0009| shall be expended in the state for the benefit of the organization | 0010| or public purposes; and | 0011| (3) no part of the proceeds of any lottery shall | 0012| go to any individual member or employee of any organization except | 0013| as payment for the purchase of prizes at no more than the | 0014| reasonable retail price." | 0015| Section 69. A new section of the Horse Racing Act is enacted | 0016| to read: | 0017| "[NEW MATERIAL] OFF-TRACK PARI-MUTUEL WAGERING.-- | 0018| A. Off-track betting at licensed off-track betting | 0019| facilities in this state is permitted on and after April 1, 1997. | 0020| B. The state racing commission is authorized to adopt, | 0021| repeal and amend rules and regulations as it deems necessary or | 0022| appropriate to regulate and govern the conduct of off-track betting | 0023| so as to ensure the integrity, reliability and security of off-track betting and for the protection of the public, including, | 0024| without limitation, regulations covering: | 0025| (1) grant, refusal and revocation of licenses for | 0001| off-track betting facilities, persons holding a direct or indirect | 0002| interest in or control of those facilities and persons supplying | 0003| goods or services to those facilities; provided that no off-track | 0004| betting facility may be licensed to conduct off-track betting | 0005| unless it is doing so as an extension of a live race meet conducted | 0006| at a licensed New Mexico racetrack and receives, except as | 0007| otherwise permitted by the commission, the simulcast of all live | 0008| races from licensed race meets; | 0009| (2) inspection and visitation at reasonable | 0010| intervals at off-track betting facilities; | 0011| (3) the governing, restricting or regulating of | 0012| operation of off-track betting and all equipment used in connection | 0013| with it; | 0014| (4) the approval of all contracts and agreements | 0015| related to off-track betting or an off-track betting facility; | 0016| (5) supervision and regulation of the operation | 0017| of an entity formed or joint agreement entered into at the | 0018| discretion of one or more racetracks to construct, contract or | 0019| subcontract for, establish or operate one or more off-track betting | 0020| facilities, the formation of such an entity or the entering into of | 0021| such an agreement being hereby specifically authorized; and | 0022| (6) any and all such other matters as the | 0023| commission may deem necessary or appropriate to accomplish the | 0024| objectives of this section. | 0025| C. For purposes of this section, the commission shall | 0001| have all the powers and authority conferred upon it by the Horse | 0002| Racing Act as if those powers and authority were restated in this | 0003| section. | 0004| D. Distribution of the gross amount wagered at an off-track betting facility will be made as follows: | 0005| (1) with respect to the gross amount wagered as | 0006| off-track betting on horse races run live in this state, after | 0007| deductions by the racetrack, racetracks or racetrack entity | 0008| operating the off-track betting facility, as provided in Subsection | 0009| H of Section 60-1-10 NMSA 1978, except that no deduction shall be | 0010| taken pursuant to Paragraph (1) of Subsection B of Section | 0011| 60-1-15 NMSA 1978, net retainage will be distributed to the | 0012| racetrack holding the live race meet upon which off-track betting | 0013| was wagered for distribution in accordance with that subsection; | 0014| and | 0015| (2) with respect to the gross amount wagered as | 0016| off-track betting on horse races run live other than in this state, | 0017| after deductions by the racetrack, racetracks or racetrack entity | 0018| operating the off-track betting facility, as provided in Subsection | 0019| H of Section 60-1-10 NMSA 1978, except that the deduction in | 0020| Paragraph (4) of that subsection for expenses incurred to engage in | 0021| simulcasting shall be one and one-half percent and no deduction | 0022| shall be taken pursuant to Paragraph (1) of Subsection B of Section | 0023| 60-1-15 NMSA 1978, each racetrack will receive a proportion of net | 0024| retainage equal to the net retainage multiplied by the ratio of the | 0025| number of live race days run at that racetrack to the total number | 0001| of live race days run in this state during the preceding state | 0002| fiscal year, the net retainage so received by a racetrack being | 0003| then distributed, as provided by Subsection H of Section 60-1-10 | 0004| NMSA 1978." | 0005| Section 70. Section 60-2B-9 NMSA 1978 (being Laws 1981, | 0006| Chapter 259, Section 9, as amended) is amended to read: | 0007| "60-2B-9. REPORTS REQUIRED--CRITERIA--DEFINITIONS--TAX | 0008| IMPOSED.-- | 0009| A. On April 15, July 15, October 15 and January 15 of | 0010| each year, the licensee shall file with the licensing authority | 0011| upon forms prescribed by the licensing authority a duly verified | 0012| statement covering the preceding calendar quarter showing the | 0013| amount of the gross receipts derived during that period from games | 0014| of chance, the expenses incurred or paid and a brief description of | 0015| the classification of the expenses, the name and address of each | 0016| person to whom has been paid two hundred fifty dollars ($250) or | 0017| more and the purpose of the expenditure, the net proceeds derived | 0018| from each game of chance and the uses to which the net proceeds | 0019| have been or are to be applied. It is the duty of each licensee to | 0020| maintain and keep the books and records necessary to substantiate | 0021| the particulars of each report. | 0022| B. If a licensee fails to file reports within the time | 0023| required or if the reports are not properly verified or not fully, | 0024| accurately and truthfully completed, any existing license may be | 0025| suspended until the default has been corrected. | 0001| C. All money collected or received from the sale of | 0002| admission, extra regular cards, special game cards, sale of | 0003| supplies and all other receipts from the games of bingo shall be | 0004| deposited in a special account of the licensee, which shall contain | 0005| only such money. All expenses for the game shall be withdrawn from | 0006| the account by consecutively numbered checks duly signed by | 0007| specified officers of the licensee and payable to a specific person | 0008| or organization. There shall be written on the check the nature of | 0009| the expense for which the check is drawn. No check shall be drawn | 0010| to "cash" or a fictitious payee. | 0011| D. No part of the net profits, after they have been | 0012| given over to another organization, shall be used by the donee | 0013| organization to pay any person for services rendered or materials | 0014| purchased in connection with the conducting of games of bingo by | 0015| the donor organization. | 0016| E. No item of expense shall be incurred or paid in | 0017| connection with holding, operating or conducting any game of chance | 0018| pursuant to any license except bona fide expenses of a reasonable | 0019| amount. Expenses may be incurred only for the following purposes: | 0020| (1) the purchase of goods, wares and merchandise | 0021| furnished; | 0022| (2) payment for services rendered that are | 0023| reasonably necessary for repairs of equipment, operating or | 0024| conducting the game of bingo; | 0025| (3) for rent if the premises are rented or for | 0001| janitorial services if not rented; | 0002| (4) for accountant's fees; | 0003| (5) for license fees; and | 0004| (6) for utilities. | 0005| F. For the purposes enumerated in Subsection E of this | 0006| section: | 0007| (1) "goods, wares and merchandise" means prizes, | 0008| equipment as defined in Section 60-2B-3 NMSA 1978 and articles of | 0009| a minor nature such as pencils, crayons, tickets, envelopes, paper | 0010| clips and coupons necessary to the conduct of games of chance; | 0011| and | 0012| (2) "services rendered" means repair to | 0013| equipment, reasonable compensation to bookkeepers or accountants, | 0014| not more than two in the aggregate, for services in preparing | 0015| financial reports for an amount not exceeding the total amount of | 0016| thirty dollars ($30.00) for each occasion, rental of premises not | 0017| exceeding the amount of fifty dollars ($50.00) for each occasion | 0018| except upon prior approval of a greater amount by the licensing | 0019| authority, a reasonable amount for janitorial service not exceeding | 0020| a total amount of fifty dollars ($50.00) for each occasion, a | 0021| reasonable amount for assisting in the operation not exceeding a | 0022| total amount of two hundred fifty dollars ($250), and not exceeding | 0023| twenty-five dollars ($25.00) for any one employee, for each | 0024| occasion and a reasonable amount for security expense based on | 0025| established need as determined by the licensing authority. | 0001| G. There shall be paid to the licensing authority a tax | 0002| equal to three percent of the net proceeds of any game of chance | 0003| held, operated or conducted under the provisions of the Bingo and | 0004| Raffle Act, and no other state or local gross receipts tax shall | 0005| apply to the gross receipts of any such game of chance. This tax | 0006| does not apply to a licensee that is a gaming operator licensee | 0007| pursuant to the Gaming Control Act, and all receipts of that | 0008| licensee are subject to state and local gross receipts taxes." | 0009| Section 71. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0010| Chapter 39, Section 96) is amended to read: | 0011| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0012| A. It is a violation of the Liquor Control Act for a | 0013| licensee to knowingly allow commercial gambling on the licensed | 0014| premises. | 0015| B. In addition to any criminal penalties, any person | 0016| who violates Subsection A of this section may have his license | 0017| suspended or revoked or a fine imposed, or both, pursuant to the | 0018| Liquor Control Act. | 0019| C. [For purposes of] As used in this section: (1) "commercial gambling" means: | 0020| [(1)] (a) participating in the earnings | 0021| of or operating a gambling place; | 0022| [(2)] (b) receiving, recording or | 0023| forwarding bets or offers to bet; | 0024| [(3)] (c) possessing facilities with the | 0025| intent to receive, record or forward bets or offers to bet; | 0001| [(4)] (d) for gain, becoming a custodian | 0002| of anything of value bet or offered to be bet; | 0003| [(5)] (e) conducting a lottery where | 0004| both the consideration and the prize are money or whoever with | 0005| intent to conduct a lottery possesses facilities to do so; or | 0006| [(6)] (f) setting up for use for the | 0007| purpose of gambling, or collecting the proceeds of, any gambling | 0008| device or game; and | 0009| (2) "commercial gambling" does not include: | 0010| (a) activities authorized pursuant to the | 0011| New Mexico Lottery Act; | 0012| (b) the conduct of activities pursuant to | 0013| Subsection D of Section 30-19-6 NMSA 1978; and | 0014| (c) gaming authorized pursuant to the Gaming | 0015| Control Act on the premises of a gaming operator licensee licensed | 0016| pursuant to that act." | 0017| Section 72. SEVERABILITY.--If any part or application of the | 0018| Gaming Control Act is held invalid, the remainder or its | 0019| application to other situations or persons shall not be affected. | 0020| Section 73. EFFECTIVE DATE.--The effective date of the | 0021| provisions of this act shall be the earliest date on which any | 0022| tribal-state gaming compact negotiated pursuant to the provisions | 0023| of the federal Indian Gaming Regulatory Act is approved by the | 0024| legislature, the governor and any one of the pueblos of Taos, San | 0025| Juan, Santa Clara, San Ildefonso, Nambe, Pojoaque, Tesuque, Santo | 0001| Domingo, San Felipe, Santa Ana, Sandia, Isleta, Laguna or Acoma or | 0002| the Mescalero Apache or Jicarilla Apache tribe. | 0003| Section 74. EMERGENCY.--It is necessary for the public | 0004| peace, health and safety that this act take effect immediately. | 0005|  |