0001| SENATE BILL 381 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| FERNANDO R. MACIAS | 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, 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 selected by the president pro | 0013| 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| (4) the number of electronic gaming machines at | 0001| each racetrack licensee, subject to Section 30 of the Horse | 0002| Racing Industry Enhancement Act; | 0003| (5) the establishment of criteria and | 0004| conditions for the operation of progressive jackpots and | 0005| progressive systems; | 0006| (6) directing and ensuring that all necessary | 0007| or appropriate security systems and personnel are in place at | 0008| racetrack licensees to ensure the security and integrity of the | 0009| operation of electronic games; | 0010| (7) the minimum and maximum bet per play; and | 0011| (8) such other policies, rules and regulations, | 0012| not inconsistent with those promulgated by the board, as may be | 0013| appropriate for the proper and fair operation of electronic | 0014| gaming under the Horse Racing Industry Enhancement Act. | 0015| Section 10. [NEW MATERIAL] ADMINISTRATION--HEARING--RULES AND REGULATIONS.-- | 0016| A. Rules and regulations shall be adopted, | 0017| promulgated, amended or repealed only after a public hearing by | 0018| the adopting authority. Notice of the hearing shall be given at | 0019| least twenty days in advance in a newspaper of general | 0020| circulation in the state. The adopting authority shall either | 0021| approve or disapprove the proposed adoption, promulgation, | 0022| amendment or repeal of such rules and regulations within ten | 0023| days of the hearing. | 0024| B. Certified copies of any approved rules and | 0025| regulations shall be submitted to the committee, the board, if | 0001| adopted by the commission, the commission, if adopted by the | 0002| board, and, as required, to the state records center pursuant to | 0003| the State Rules Act. Copies of the rules and regulations in | 0004| force shall be made available to any person upon request. | 0005| C. The adopting authority shall adopt and promulgate | 0006| rules and regulations for the conduct of all hearings. | 0007| Section 11. [NEW MATERIAL] ADMINISTRATIVE SUPPORT.--The | 0008| regulation and licensing department shall be responsible for | 0009| providing to the board and commission all necessary and | 0010| appropriate administrative support, which shall include but not | 0011| be limited to clerical, administrative, investigatory or such | 0012| other functions as are necessary or appropriate to carry out the | 0013| functions of the board and commission. | 0014| Section 12. [NEW MATERIAL] SECURITY.-- | 0015| A. The regulation and licensing department shall be | 0016| responsible for providing security-related services to the board | 0017| and commission, including but not limited to obtaining | 0018| background checks on appropriate state personnel. | 0019| B. The department of public safety shall perform a | 0020| full criminal background investigation of any state employee, | 0021| other than members of the board, directly involved in | 0022| administration, implementation or oversight of the Horse Racing | 0023| Industry Enhancement Act. Such background investigations shall | 0024| include, but not be limited to, credit checks, police record | 0025| checks, conviction record checks, national and statewide | 0001| criminal records clearinghouse checks and fingerprint checks. | 0002| The board shall reimburse the department of public safety for | 0003| the actual costs of an investigation. | 0004| C. An individual convicted of any crime, other than | 0005| a petty misdemeanor, involving gambling, moral turpitude, fraud | 0006| or theft or a felony shall not be eligible for state employment | 0007| in any capacity directly involved in administration, | 0008| implementation or oversight of the Horse Racing Industry | 0009| Enhancement Act. | 0010| D. Any state employee directly involved in | 0011| administration, implementation or oversight of the Horse Racing | 0012| Industry Enhancement Act shall report any arrest for or | 0013| conviction of any crime not a petty misdemeanor involving | 0014| gambling, moral turpitude, fraud or theft or a felony to the | 0015| board within three days of such arrest or conviction. | 0016| E. By July 1, 1997, and at least once every two | 0017| years thereafter, the board shall employ an independent firm | 0018| that is experienced in security, including computer security and | 0019| systems security, to conduct a comprehensive confidential study | 0020| of all aspects of electronic gaming security, including: | 0021| (1) vendor, licensee and racetrack licensee | 0022| security; | 0023| (2) security against voucher counterfeiting and | 0024| alteration and other means of fraudulent winning; | 0025| (3) computer system security, data | 0001| communications, database and systems security; | 0002| (4) security of validation and payment | 0003| procedures; | 0004| (5) security of electronic gaming machines; and | 0005| (6) other security aspects of board operations. | 0006| F. The board shall provide the governor, the | 0007| committee and the commission with a copy of the confidential | 0008| security study. | 0009| G. The board and the commission shall develop a plan | 0010| to improve the security of the electronic gaming based upon the | 0011| recommendations of the confidential security study; however, | 0012| nothing in this section shall be construed as requiring the | 0013| board or commission to implement any of the recommendations made | 0014| by the study. | 0015| Section 13. [NEW MATERIAL] INFORMATION AND DATA--CONFIDENTIALITY--DISCLOSURE.-- | 0016| A. All of the following information and data are | 0017| confidential and may be revealed in whole or in part only in the | 0018| course of the necessary administration of the Horse Racing | 0019| Industry Enhancement Act or upon the lawful order of a court of | 0020| competent jurisdiction, except that the board or commission may | 0021| reveal confidential information or data to an authorized agent | 0022| of any governmental agency pursuant to a reciprocal agreement | 0023| with the other governmental agency to share information and | 0024| maintain confidentiality of the information as provided in this | 0025| section: | 0001| (1) security measures and internal security | 0002| reports; | 0003| (2) information or data provided by a | 0004| governmental agency that is required by that agency's governing | 0005| law to be kept confidential; | 0006| (3) trade secrets and proprietary information | 0007| of any applicant, racetrack licensee, licensee or vendor; | 0008| (4) personal data, including personal financial | 0009| data, not otherwise public and not directly related to the | 0010| license or major procurement contract; and | 0011| (5) any information or data that are otherwise | 0012| made confidential by law. | 0013| B. Notice of the content of any information or data | 0014| furnished or released pursuant to this section may be given to | 0015| any applicant or licensee in a manner prescribed by regulations | 0016| adopted pursuant to the Horse Racing Industry Enhancement Act. | 0017| Section 14. [NEW MATERIAL] BOOKS AND RECORDS--REQUIREMENTS.-- | 0018| A. The regulation and licensing department, on | 0019| behalf of the board and commission, shall make and keep books | 0020| and records that accurately and fairly reflect transactions of | 0021| electronic games conducted pursuant to the Horse Racing Industry | 0022| Enhancement Act, including the receipt of funds, expenses and | 0023| all other activities and financial transactions involving | 0024| revenue generated by electronic games, so as to permit | 0025| preparation of financial statements in conformity with generally | 0001| accepted accounting principles and to maintain daily | 0002| accountability. | 0003| B. The regulation and licensing department, on | 0004| behalf of the board and commission, shall maintain a file of all | 0005| applications for licenses and racetrack licenses under the Horse | 0006| Racing Industry Enhancement Act, together with a record of all | 0007| action taken with respect to those applications. The file and | 0008| record are open to public inspection, except those portions | 0009| declared by law to be confidential. | 0010| C. The regulation and licensing department, on | 0011| behalf of and as directed by the board and commission, may | 0012| maintain such other files and records as it deems desirable. | 0013| Section 15. [NEW MATERIAL] AUDITS.-- | 0014| A. The board shall provide for a certified public | 0015| accountant to conduct an independent audit for each fiscal year | 0016| of all accounts and transactions related to electronic gaming. | 0017| The independent audit shall be reviewed by the state auditor. | 0018| The certified public accountant shall not have an ownership | 0019| interest in a vendor, racetrack licensee or licensee and shall | 0020| report any conflict of interest to the board. The certified | 0021| public accountant shall present an audit report to the board, | 0022| the commission, the governor and the committee not later than | 0023| December 31 of the year following the fiscal year for which the | 0024| audit was performed. | 0025| B. Each vendor's, licensee's and racetrack | 0001| licensee's records relating to the Horse Racing Industry | 0002| Enhancement Act are subject to audit by the board. | 0003| C. The board and the committee shall develop a plan | 0004| to improve the efficiency of the board based upon the | 0005| recommendations of the certified public accountant; however, | 0006| nothing in this section shall be construed as requiring the | 0007| board to implement any of the recommendations made by the | 0008| certified public accountant. | 0009| D. All accounts and transactions relating to gaming | 0010| are exempt from the Audit Act. | 0011| Section 16. [NEW MATERIAL] INVESTIGATORY POWERS.--The | 0012| board and the commission shall have the power to: | 0013| A. examine under oath any person or any officer, | 0014| employee or agent of any organization or corporation; | 0015| B. compel by subpoena the production of records; and | 0016| C. compel by subpoena the attendance of any person | 0017| in this state to testify before the board or commission when | 0018| such investigation is necessary to the proper administration of | 0019| the Horse Racing Industry Enhancement Act. | 0020| Section 17. [NEW MATERIAL] ATTORNEY GENERAL--OTHER LAW | 0021| ENFORCEMENT AUTHORITY--POWERS AND DUTIES.-- | 0022| A. The board or commission may confer with the | 0023| attorney general as deemed necessary and advisable for the | 0024| proper administration of the Horse Racing Industry Enhancement | 0025| Act. Upon request of the board, it shall be the duty of the | 0001| attorney general and any other law enforcement authority to whom | 0002| a violation is reported to investigate and cause appropriate | 0003| proceedings to be instituted without delay. | 0004| B. The attorney general and the department of public | 0005| safety shall furnish to the board and the commission any | 0006| information that they may have in their possession as may be | 0007| necessary to ensure security, honesty, fairness and integrity in | 0008| the operation and administration of electronic games conducted | 0009| pursuant to the Horse Racing Industry Enhancement Act. The | 0010| board and commission shall be considered to be criminal justice | 0011| agencies and shall be furnished such information without charge | 0012| upon proper written request. | 0013| Section 18. [NEW MATERIAL] CONFLICTS OF INTEREST--NUMERATED--COMPLIANCE WITH OTHER LAWS--VIOLATION--REMOVAL FROM | 0014| OFFICE.-- | 0015| A. The members of the board, the committee, the | 0016| commission and the regulation and licensing department and other | 0017| restricted persons shall not, directly or indirectly: | 0018| (1) knowingly hold a financial interest or | 0019| acquire stocks, bonds or any other interest in any entity that | 0020| is a distributor or manufacturer, licensee, racetrack licensee | 0021| or vendor; or | 0022| (2) have a financial interest in the ownership | 0023| or leasing of property used in the conduct or regulation of | 0024| electronic games. | 0025| B. The members of the board, the committee, the | 0001| commission or the regulation and licensing department shall not | 0002| ask for, offer to accept or receive any gift, gratuity or other | 0003| thing of value that would inure to that person's benefit from: | 0004| (1) any entity seeking to supply equipment, | 0005| materials or services for use in the conduct or regulation of | 0006| electronic games; | 0007| (2) any applicant for a license or racetrack | 0008| license; or | 0009| (3) any vendor, licensee or racetrack licensee. | 0010| C. No person seeking to supply equipment, materials | 0011| or services for use in the conduct or regulation of electronic | 0012| games, no applicant for a license and no vendor or licensee | 0013| shall offer or give to the members of the board, the committee, | 0014| the commission or the regulation and licensing department any | 0015| gift, gratuity or other thing of value that would inure to the | 0016| recipient's personal benefit. | 0017| D. For purposes of this section: | 0018| (1) "gift, gratuity or other thing of value" | 0019| does not include the provision of a breakfast, luncheon, dinner | 0020| or other refreshment consisting of food or beverage provided for | 0021| immediate consumption; and | 0022| (2) "other restricted person" means anyone | 0023| living in the same household as the board member, a member of | 0024| the committee, a member of the commission, the superintendent of | 0025| regulation and licensing or any administrative personnel or | 0001| security personnel directly involved in administering or | 0002| overseeing the Horse Racing Industry Enhancement Act. | 0003| E. The board, commission and regulation and | 0004| licensing department shall comply with all state laws applicable | 0005| to ethics in government, conflict of interest and financial | 0006| disclosure. | 0007| F. Anyone who violates this section may be removed | 0008| from his position after notice and a hearing before the board, | 0009| committee, commission or regulation and licensing department, as | 0010| applicable. | 0011| Section 19. [NEW MATERIAL] APPLICATION OF STATE | 0012| REVENUES FROM ELECTRONIC GAMES--STATE GAMING FUND ESTABLISHED--DISTRIBUTIONS.-- | 0013| A. The "state gaming fund" is established as a | 0014| separate fund within the state treasury. The fund consists of | 0015| all revenue received from electronic games and interest accrued | 0016| thereon, license and application fees under the Horse Racing | 0017| Industry Enhancement Act and all money credited to the fund from | 0018| any other fund or source under law, except as otherwise provided | 0019| in the Horse Racing Industry Enhancement Act. | 0020| B. Money in the state gaming fund may be used only | 0021| for the following purposes and shall be distributed as follows: | 0022| (1) the payment of costs incurred in the | 0023| operation and administration of electronic games, including any | 0024| fees paid to a vendor; | 0025| (2) five percent of the balance shall be | 0001| distributed: | 0002| (a) among municipalities in the same | 0003| proportion as the revenue raised pursuant to Subsection D of | 0004| Section 30 of the Horse Racing Industry Enhancement Act from | 0005| racetrack licensees located within a municipality bears to the | 0006| total revenue raised in the state from all racetrack licensees; | 0007| and | 0008| (b) among counties in the same proportion | 0009| as the revenue raised pursuant to Subsection D of Section 30 of | 0010| the Horse Racing Industry Enhancement Act from racetrack | 0011| licensees located in a county outside the boundaries of any | 0012| municipality bears to the total revenue raised in the state from | 0013| all racetrack licensees; and | 0014| (3) the balance shall be paid into the general | 0015| fund. | 0016| Section 20. [NEW MATERIAL] PROCUREMENT OF GOODS OR | 0017| SERVICES--POWERS--LIMITATION.--The superintendent of regulation | 0018| and licensing, subject to the approval of the board, shall enter | 0019| into all contracts for procurement of goods and services | 0020| required by the board to carry out its duties and | 0021| responsibilities under the Horse Racing Industry Enhancement | 0022| Act. | 0023| Section 21. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--DISCLOSURE REQUIRED--CONTRACT APPROVAL--REQUIREMENTS.-- | 0024| A. The board shall request proposals for major | 0025| procurements by the board for effectuating the purpose of the | 0001| Horse Racing Industry Enhancement Act. No contract for a major | 0002| procurement may be assigned by a vendor except by a written | 0003| agreement approved by the board. | 0004| B. The board may require major procurement vendors | 0005| to disclose information to enable the board to review and | 0006| evaluate the responses to the requests for proposals on the | 0007| basis of competence, background, integrity, character and nature | 0008| of the ownership and control of vendors and to ensure compliance | 0009| with the provisions of the Horse Racing Industry Enhancement | 0010| Act. | 0011| C. The board shall investigate, as part of the | 0012| process for analyzing responses to requests for proposals for | 0013| any major procurement, the financial responsibility, security | 0014| and integrity of any party whose proposal is under final | 0015| consideration. The board shall require a background | 0016| investigation of any person with a substantial interest, as | 0017| defined by the board, in a party whose proposal is under final | 0018| consideration. Such background investigation may include credit | 0019| checks, police record checks, conviction record checks, national | 0020| and statewide criminal records clearinghouse checks and | 0021| fingerprint checks. Each party whose proposal is under final | 0022| consideration shall pay the costs of that party's background | 0023| investigation. | 0024| D. No major procurement with any vendor shall be | 0025| entered into if any person with a substantial interest, as | 0001| defined by the board, in the vendor has been convicted of a | 0002| felony. | 0003| E. A vendor shall report any arrest for or | 0004| conviction of a felony for any person with a substantial | 0005| interest in that vendor to the board within ten days of such | 0006| arrest or conviction. | 0007| F. No contract shall be approved by the board unless | 0008| the vendor has complied with this section. Any contract entered | 0009| into with a vendor who has not complied with this section shall | 0010| be void. | 0011| G. 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, complete and ongoing | 0014| evaluation by the board of the competence, integrity, | 0015| background, character and nature of the ownership and control of | 0016| vendors for major procurements. | 0017| Section 22. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--PERFORMANCE BOND.-- Each vendor for a major procurement shall | 0018| post a performance bond with the board, using a surety | 0019| acceptable to the board, in consultation with the superintendent | 0020| of insurance in an amount equal to the full amount estimated to | 0021| be paid annually to the vendor under the contract. Nothing in | 0022| the Horse Racing Industry Enhancement Act shall be construed to | 0023| restrict the authority of the board to specify liquidated or | 0024| other damages in contracts with vendors. | 0025| Section 23. [NEW MATERIAL] LICENSING.-- | 0001| A. No person may act as a manufacturer or | 0002| distributor without first obtaining an appropriate license | 0003| pursuant to the Horse Racing Industry Enhancement Act. | 0004| B. Any racetrack may apply to become a racetrack | 0005| licensee. A racetrack that has received approval from the | 0006| commission for specific race days in fiscal year 1996 may apply | 0007| for and receive a temporary racetrack licensee's license upon | 0008| payment of the license fee required for regular licensure. The | 0009| temporary license shall expire six months from the date of | 0010| issuance unless otherwise extended by the board for good cause. | 0011| Unless the racetrack licensee has completed the application for | 0012| and has been granted a regular racetrack licensee's license on | 0013| or before the date of expiration of the temporary license, the | 0014| racetrack licensee is not entitled to carry on electronic gaming | 0015| operations on the racetrack licensee's premises after that date | 0016| until the racetrack licensee applies for and receives a regular | 0017| license. A temporary racetrack licensee is entitled to have the | 0018| license fee it has paid credited as payment of its regular | 0019| racetrack license fee to cover the period of one year from the | 0020| date of issuance of the temporary racetrack license. | 0021| C. The board and commission shall adopt regulations | 0022| concerning the licensing criteria. The board shall require | 0023| licensees who are not distributors or manufacturers, or | 0024| affiliates or employees of distributors or manufacturers, to be | 0025| licensed by the commission and shall delegate licensing of those | 0001| persons to the commission. The regulations shall require | 0002| consideration of such factors as the applicant's financial | 0003| responsibility, security of the applicant's place of business or | 0004| activity, accessibility to the public and the applicant's | 0005| integrity and reputation. It shall be unlawful to consider | 0006| political affiliation, activities or monetary contributions to | 0007| political organizations or candidates for any public office. | 0008| D. Applicants for licensure, renewal or amendment | 0009| shall pay a fee to be submitted with the application not to | 0010| exceed the following: | 0011| (1) racetrack license, twenty-five dollars | 0012| ($25.00) annually for each electronic gaming machine; | 0013| (2) distributors, five thousand dollars | 0014| ($5,000) for initial licensure and two thousand five hundred | 0015| dollars ($2,500) for annual renewal; | 0016| (3) manufacturers, ten thousand dollars | 0017| ($10,000) for initial licensure and five thousand dollars | 0018| ($5,000) for annual renewal; and | 0019| (4) other licenses as defined by the board or | 0020| commission, at fee amounts determined by the board or | 0021| commission. | 0022| E. Licenses and racetrack licenses issued pursuant | 0023| to the Horse Racing Industry Enhancement Act shall be valid for | 0024| one year. Upon application for renewal, the board may require | 0025| such additional information as the board deems necessary to | 0001| evaluate the application. | 0002| F. The board shall require background investigations | 0003| of any person with a substantial interest, as defined by the | 0004| board, in the applicant. Such background investigations may | 0005| include, but not be limited to, credit checks, police record | 0006| checks, conviction record checks, national and statewide | 0007| criminal records clearinghouse checks and fingerprint checks. | 0008| The applicant shall pay the costs of the background | 0009| investigation. | 0010| G. No license or racetrack license shall be granted | 0011| to an applicant if any person with a substantial interest, as | 0012| defined in the regulations, if the applicant has, within ten | 0013| years prior to the application, been convicted of a crime, other | 0014| than a petty misdemeanor, involving gambling, moral turpitude, | 0015| fraud, or theft or a felony. | 0016| H. The licensee or racetrack licensee shall report | 0017| any arrest for or conviction of a felony of any person with a | 0018| substantial interest in that licensee or racetrack licensee to | 0019| the board within ten days of such arrest or conviction. | 0020| I. No license or racetrack license shall be granted | 0021| by the board unless the applicant complies with this section. | 0022| Any license or racetrack license granted to an applicant who has | 0023| not complied with this section shall be void. | 0024| J. The burden of proving qualifications for | 0025| licensure is on the applicant. | 0001| K. If an application is denied, the board shall | 0002| prepare and make available to the applicant a written decision | 0003| upon which the order denying the application is based. | 0004| L. The holder of any license or racetrack license | 0005| does not acquire any vested interest or right in or under the | 0006| license, and a license issued pursuant to the Horse Racing | 0007| Industry Enhancement Act is a revocable privilege. | 0008| M. This section shall be construed broadly and | 0009| liberally to achieve the end of full disclosure of all | 0010| information necessary to allow for a full and complete | 0011| evaluation by the board of an applicant's fitness. | 0012| N. The license fees paid pursuant to this section in | 0013| fiscal years 1997 and 1998 are appropriated one-half to the | 0014| regulation and licensing department and board and one-half to | 0015| the commission for expenditure in that fiscal year to pay the | 0016| start-up costs incurred in establishing a regulatory system for | 0017| the gaming activities permitted pursuant to the Horse Racing | 0018| Industry Enhancement Act. | 0019| Section 24. [NEW MATERIAL] REVOCATION--CONTRACT--LICENSE.-- | 0020| A. Failure to comply with any provision of the Horse | 0021| Racing Industry Enhancement Act or the rules and regulations | 0022| promulgated thereunder shall be sufficient cause for suspension | 0023| or termination of a procurement contract; provided, however, | 0024| that suspension or termination of a procurement contract shall | 0025| not relieve the vendor from prosecution for any of the alleged | 0001| violations or from imposition of fines and penalties. | 0002| B. If a licensee or racetrack licensee fails to | 0003| respond to a written request from the board or violates any | 0004| provision of the Horse Racing Industry Enhancement Act or any | 0005| rule or regulation promulgated thereunder, the license of the | 0006| offending licensee or racetrack licensee may be suspended, | 0007| canceled or revoked by the board; provided, however, that the | 0008| licensee or racetrack licensee shall have reasonable notice and | 0009| opportunity to be heard before the board before suspension, | 0010| cancellation, limitation or revocation; and provided, further, | 0011| that the suspension, cancellation, limitation or revocation of | 0012| any license shall not relieve the licensee or racetrack licensee | 0013| from prosecution for any of the alleged violations or from | 0014| imposition of fines and penalties. | 0015| C. The board may levy a fine against a vendor, | 0016| licensee or racetrack licensee for violation of the provisions | 0017| of the Horse Racing Industry Enhancement Act or regulations | 0018| promulgated pursuant to that act, not to exceed ten thousand | 0019| dollars ($10,000) per violation; provided, however, that the | 0020| licensee or racetrack licensee shall have a reasonable | 0021| opportunity to be heard by the board before the imposition of | 0022| such fine. Nothing in this section shall limit the board from | 0023| pursuing contractual remedies, including assessing penalties, | 0024| pursuant to the terms of a contract with a vendor. | 0025| Section 25. [NEW MATERIAL] EMERGENCY ORDERS OF BOARD.-- | 0001| A. The board may issue an emergency order for | 0002| suspension or limitation of a license or racetrack license. | 0003| B. An emergency order may be issued only when the | 0004| board finds that: | 0005| (1) any licensee or racetrack licensee has | 0006| failed to report, pay or truthfully account for and pay over any | 0007| fee or money imposed by or owed under the provisions of the | 0008| Horse Racing Industry Enhancement Act or attempted in any manner | 0009| to evade or defeat any such fee or debt or payment thereof; | 0010| (2) any licensee or racetrack licensee has | 0011| violated any provision of the Horse Racing Industry Enhancement | 0012| Act and the violation impairs the security of electronic gaming | 0013| activities; or | 0014| (3) any licensee or racetrack licensee is | 0015| convicted of a crime, not a petty misdemeanor, involving | 0016| gambling, moral turpitude, fraud, theft or a felony. | 0017| C. The emergency order shall set forth the grounds | 0018| upon which it is issued, including a statement of facts | 0019| constituting the alleged emergency necessitating such action. | 0020| D. An emergency order may be issued only with the | 0021| approval of and upon signature by three members of the board. | 0022| E. The emergency order is effective immediately upon | 0023| issuance and service upon the licensee or racetrack licensee or | 0024| resident agent of the licensee or racetrack licensee. The | 0025| emergency order remains effective until further order of the | 0001| board or final disposition of the case. | 0002| F. The licensee or racetrack licensee may request | 0003| that a hearing be held by the board regarding the issuance and | 0004| maintenance of the emergency order. The board shall then hold a | 0005| hearing within twenty days. | 0006| Section 26. [NEW MATERIAL] CENTRAL COMPUTER SYSTEM.--Each electronic gaming machine shall be linked via a | 0007| communications network to a central computer system or systems | 0008| that monitor the play or operation of each electronic gaming | 0009| machine and will provide financial reporting information as | 0010| required by the board. If only one central computer system is | 0011| required by the board, that central computer system shall not | 0012| limit participation to only one manufacturer of electronic | 0013| gaming machines by either cost of implementing the necessary | 0014| program modifications to communicate or the inability to | 0015| communicate with the central computer system. | 0016| Section 27. [NEW MATERIAL] RACETRACK LICENSEE--FUNDS--CONFLICTS--CHILD SUPPORT.-- | 0017| A. The board may require each racetrack licensee to | 0018| deposit all money owed to the state under the Horse Racing | 0019| Industry Enhancement Act into financial institutions designated | 0020| by the board for credit to the state gaming fund. | 0021| B. The board may authorize the electronic transfer | 0022| of funds, other than funds derived from off-track betting, owed | 0023| to the state under the Horse Racing Industry Enhancement Act | 0024| from the accounts of racetrack licensees to the state gaming | 0025| fund. | 0001| C. No electronic gaming machine shall be played by | 0002| and no prize shall be awarded to any racetrack licensee or | 0003| business that is engaged in supplying equipment, supplies or | 0004| services being used in the operation of electronic gaming | 0005| machines or any officer, director, employee or owner of such | 0006| licensee or business unless authorized in writing by the board | 0007| for research purposes. However, no prize may be awarded as a | 0008| result of play for research purposes. | 0009| D. The superintendent of regulation and licensing | 0010| shall investigate the feasibility of implementing a policy to | 0011| recover delinquent child support payments or outstanding state | 0012| tax liability from payment of electronic gaming prizes in excess | 0013| of six hundred dollars ($600). If the board determines that | 0014| such a policy is feasible, the superintendent of regulation and | 0015| licensing shall implement a policy to credit any electronic | 0016| gaming prize first against any delinquent child support owed by | 0017| the winner and then against any outstanding state tax liability | 0018| owed by the winner and shall pay the balance of the prize to the | 0019| winner. The policy shall ensure that any person who | 0020| investigates the money owed by the prize winner shall have no | 0021| liability to a person to whom a delinquent child support payment | 0022| may be owed, to the human services department or to the taxation | 0023| and revenue department, if the investigator fails to discover | 0024| that a winner owes money that is to be applied according to the | 0025| policy. | 0001| Section 28. [NEW MATERIAL] REQUIREMENTS FOR LICENSED | 0002| ELECTRONIC GAMING MACHINES.-- | 0003| A. Each electronic gaming machine licensed under the | 0004| Horse Racing Industry Enhancement Act shall fulfill as a minimum | 0005| all requirements imposed by the state of Nevada to licensure and | 0006| shall: | 0007| (1) offer only games authorized by the | 0008| commission; | 0009| (2) not have any means of manipulation that | 0010| affects the random probabilities of winning; | 0011| (3) have one or more mechanisms that accept | 0012| coins, tokens or cash in the form of bills. The mechanisms | 0013| shall be designed to prevent obtaining credits without paying by | 0014| any form of tampering. If such attempts involve physical | 0015| tampering, the machine shall suspend itself from operation until | 0016| reset; | 0017| (4) have nonresettable meters that keep a | 0018| permanent record of all coins, tokens and cash inserted into the | 0019| machine and all awards of prizes, whether in coin, tokens or | 0020| cash; | 0021| (5) have accounting software that keeps an | 0022| electronic record that includes but is not limited to the | 0023| following: | 0024| (a) total coin, tokens and cash inserted | 0025| into the machine; | 0001| (b) the value of coin, tokens or cash | 0002| paid to players; and | 0003| (c) the winning percentage credited | 0004| players of each electronic game; and | 0005| (6) be linked via a communications network to a | 0006| central computer system or systems designated by the board to | 0007| provide security and financial information as required by the | 0008| board. | 0009| B. The board shall examine prototypes of electronic | 0010| gaming machines of licensed manufacturers. The board shall | 0011| require the manufacturer seeking the examination and approval of | 0012| any electronic gaming machine or associated equipment to pay the | 0013| anticipated actual costs of the examination in advance and, | 0014| after the completion of the examination, shall refund | 0015| overpayments or charge and collect amounts sufficient to | 0016| reimburse the board for underpayments of actual costs. The | 0017| board may contract for the examination of electronic gaming | 0018| machines and associated equipment as required by this section. | 0019| C. Each electronic gaming machine shall be licensed | 0020| by the board before placement or operation on the premises of a | 0021| racetrack licensee. Each machine shall have the license | 0022| prominently displayed thereon in such a way that an attempt at | 0023| alteration will result in a mutilation of the license. Any | 0024| machine that does not display the license required by this | 0025| section is contraband and a public nuisance subject to | 0001| confiscation by any law enforcement or peace officer. | 0002| Section 29. [NEW MATERIAL] AGE LIMIT--RULES FOR | 0003| PLACEMENT OF ELECTRONIC GAMING MACHINES.-- | 0004| A. No person under twenty-one years of age may play | 0005| an electronic gaming machine licensed under the Horse Racing | 0006| Industry Enhancement Act. | 0007| B. Electronic gaming machines may only be operated | 0008| in an area restricted to persons twenty-one years of age or | 0009| older. An establishment may erect a permanent physical barrier | 0010| to allow for multiple uses of the premises by persons of all | 0011| ages. The entrance to the area where electronic gaming machines | 0012| are located shall display a sign that the premises are | 0013| restricted to persons twenty-one years or older. Subject to the | 0014| prohibition of Subsection A of this section, and except as | 0015| otherwise permitted by the commission, persons under the age of | 0016| twenty-one shall not enter the premises where electronic gaming | 0017| machines are located unless they are accompanied by a parent, | 0018| guardian or spouse aged twenty-one or older. | 0019| Section 30. [NEW MATERIAL] RACETRACK LICENSEES--ELECTRONIC GAMING MACHINES--DISTRIBUTION.-- | 0020| A. The number of electronic gaming machines | 0021| permitted upon the premises of a racetrack licensee will be that | 0022| number requested by the racetrack licensee and so designated by | 0023| the commission. | 0024| B. Nothing in the Horse Racing Industry Enhancement | 0025| Act shall prevent a racetrack licensee from leasing or owning | 0001| the electronic gaming machines in operation in that racetrack | 0002| licensee's facilities or purchasing or leasing electronic gaming | 0003| machines directly from a licensed manufacturer, provided that | 0004| the electronic gaming machines comply with the Horse Racing | 0005| Industry Enhancement Act and regulations promulgated thereunder. | 0006| C. A racetrack licensee may operate electronic | 0007| gaming machines at its facilities if approved by the commission, | 0008| provided that: | 0009| (1) effective for a live licensed race meet | 0010| beginning after January 1, 1997, the licensed racetrack conducts | 0011| live racing an average of four days per week during such race | 0012| meet; and | 0013| (2) the commission may waive the live race day | 0014| requirements of this subsection for good cause shown with due | 0015| regard for the interests of the licensed racetrack, the horsemen | 0016| and the breeders. | 0017| D. Licensed racetracks shall pay: | 0018| (1) ten percent of the net machine income of | 0019| each licensed electronic gaming machine, of which: | 0020| (a) the amount due as gross receipts tax | 0021| under the Gross Receipts and Compensating Tax Act shall be paid | 0022| to the state general fund; | 0023| (b) one-fourth of one percent shall be | 0024| paid for addictive behavior programs into an account | 0025| administered by the board; and | 0001| (c) the balance shall be paid in lieu of | 0002| all other taxes, including but not limited to income taxes, to | 0003| the state gaming fund in a manner directed by the board; | 0004| (2) twenty and eighteen hundredths percent of | 0005| the net machine income of each electronic gaming machine to the | 0006| New Mexico horsemen's association, of which percentage one-fourth of one percent will be distributed to the New Mexico | 0007| horsemen's association benevolence fund and the balance will be | 0008| distributed to the appropriate New Mexico purse enhancement | 0009| funds; and | 0010| (3) four and eighty-two hundredths percent to | 0011| the New Mexico horse breeders' association to be divided equally | 0012| among the New Mexico breeder incentive fund and each New Mexico | 0013| bred purse enhancement fund. | 0014| E. Racetrack licensees shall submit an annual | 0015| accounting of distributions made pursuant to Paragraph (2) of | 0016| Subsection D of this section to the board within ninety days of | 0017| the end of the racetrack licensee's fiscal year each year. | 0018| Section 31. [NEW MATERIAL] PROHIBITED ACTS--VIOLATIONS--PENALTIES.-- | 0019| A. It is a misdemeanor for a racetrack licensee to | 0020| knowingly allow any person under twenty-one years of age to play | 0021| an electronic gaming machine. | 0022| B. It is a misdemeanor for a person under twenty-one | 0023| years of age to play an electronic gaming machine. | 0024| C. It is a misdemeanor to release any information | 0025| obtained through a background investigation performed by the | 0001| board without the prior written consent of the subject of the | 0002| investigation except as provided otherwise in the Horse Racing | 0003| Industry Enhancement Act. | 0004| D. It is a fourth degree felony to tamper with an | 0005| electronic gaming machine with intent to interfere with the | 0006| proper operation of such machine. | 0007| E. It is a fourth degree felony to tamper with a | 0008| voucher or electronic gaming machine with intent to manipulate | 0009| the outcome or payoff of an electronic gaming machine. | 0010| F. It is a fourth degree felony to knowingly possess | 0011| an unlicensed electronic gaming machine. | 0012| G. It is a fourth degree felony to falsify | 0013| information provided to the board for purposes of applying for a | 0014| contract or a license with the board or for purposes of | 0015| completing a background investigation pursuant to the Horse | 0016| Racing Industry Enhancement Act. | 0017| H. Any person convicted of a violation of | 0018| Subsections A through C of this section shall be sentenced | 0019| pursuant to the provisions of Section 31-19-1 NMSA 1978. Any | 0020| person convicted of a violation of Subsections D through G of | 0021| this section shall be sentenced pursuant to the provisions of | 0022| Section 31-18-15 NMSA 1978. | 0023| Section 32. [NEW MATERIAL] DISTRICT COURT OF SANTA FE | 0024| COUNTY--JURISDICTION--APPEAL.--The district court of Santa Fe | 0025| county shall have exclusive original jurisdiction of all legal | 0001| proceedings, except criminal actions, related to the | 0002| administration, enforcement or fulfillment of the | 0003| responsibilities, duties or functions of the board and | 0004| commission under the Horse Racing Industry Enhancement Act. An | 0005| aggrieved party, including a party subject to a fine, may seek | 0006| review of an order or decision of the board or commission by | 0007| filing an appeal with the district court of Santa Fe county | 0008| within thirty days after the date of such order or decision. | 0009| Section 33. [NEW MATERIAL] EXEMPTION FROM LOCAL TAXES.--Electronic games conducted pursuant to the Horse Racing | 0010| Industry Enhancement Act shall be exempt from any local tax | 0011| levied or assessed by any political subdivision having the power | 0012| to levy, assess or collect such tax. | 0013| Section 34. [NEW MATERIAL] LOCAL LAWS PREEMPTED--APPLICABILITY OF OTHER LAWS--SEVERABILITY.-- | 0014| A. The Horse Racing Industry Enhancement Act shall | 0015| be applicable and uniform throughout the state and all political | 0016| subdivisions, and no local authority shall enact any ordinances, | 0017| rules or regulations in conflict with the provisions of that | 0018| act. | 0019| B. If any provision of the Horse Racing Industry | 0020| Enhancement Act or the application thereof to any person or | 0021| circumstance is held invalid, such invalidity shall not affect | 0022| other provisions or applications of that act that can be given | 0023| effect without the invalid provision or application, and to this | 0024| end the provisions of that act are severable. | 0025| Section 35. [NEW MATERIAL] OFF-TRACK PARI-MUTUEL | 0001| WAGERING.-- | 0002| A. Off-track betting at licensed OTB facilities in | 0003| this state is declared to be legal. | 0004| B. The commission is authorized and empowered to | 0005| adopt, repeal and amend such rules and regulations as it may | 0006| deem necessary or appropriate to regulate and govern the conduct | 0007| of off-track betting so as to ensure the integrity, reliability | 0008| and security of off-track betting and for the protection of the | 0009| public, including, without limitation, regulations covering: | 0010| (1) grant, refusal and revocation of licenses | 0011| for OTB facilities, persons holding a direct or indirect | 0012| interest in or control of those facilities, and persons | 0013| supplying goods or services to those facilities; provided that | 0014| no OTB facility may be licensed to conduct off-track betting | 0015| unless it is doing so as an extension of a live race meet | 0016| conducted at a licensed New Mexico racetrack and receives, | 0017| except as otherwise permitted by the commission, the simulcast | 0018| of all live races from licensed race meets; | 0019| (2) inspection and visitation at reasonable | 0020| intervals at OTB facilities; | 0021| (3) the governing, restricting or regulating of | 0022| operation of off-track betting and all equipment used in | 0023| connection with it; | 0024| (4) the approval of all contracts and | 0025| agreements related to off-track betting or an OTB facility; | 0001| (5) supervision and regulation of the operation | 0002| of an entity formed or joint agreement entered into at the | 0003| discretion of one or more racetracks to construct, contract or | 0004| subcontract for, establish or operate one or more OTB | 0005| facilities, the formation of such an entity or the entering into | 0006| of such an agreement being hereby specifically authorized; and | 0007| (6) any and all such other matters as the | 0008| commission may deem necessary or appropriate to accomplish the | 0009| objectives of this section. | 0010| C. For purposes of this section, the commission | 0011| shall have all the powers and authority conferred upon it by the | 0012| Horse Racing Act as if those powers and authority were restated | 0013| in this section. | 0014| D. Distribution of the gross amount wagered at an | 0015| OTB facility will be made as follows: | 0016| (1) with respect to the gross amount wagered as | 0017| off-track betting on horse races run live in this state, after | 0018| deductions by the racetrack, racetracks or racetrack entity | 0019| operating the OTB facility as provided in Subsection H of | 0020| Section 60-1-10 NMSA 1978, except that no deduction shall be | 0021| taken pursuant to Paragraph (1) of Subsection B of Section | 0022| 60-1-15 NMSA 1978, net retainage will be distributed to the | 0023| racetrack holding the live race meet upon which off-track | 0024| betting was wagered for distribution in accordance with that | 0025| subsection; and | 0001| (2) with respect to the gross amount wagered as | 0002| off-track betting on horse races run live other than in this | 0003| state, after deductions by the racetrack, racetracks or | 0004| racetrack entity operating the OTB facility as provided in | 0005| Subsection H of Section 60-1-10 NMSA 1978, except that the | 0006| deduction in Paragraph (4) of that subsection for expenses | 0007| incurred to engage in simulcasting shall be one and one-half | 0008| percent and no deduction shall be taken pursuant to Paragraph | 0009| (1) of Subsection B of Section 60-1-15 NMSA 1978, each racetrack | 0010| will receive a proportion of net retainage equal to the net | 0011| retainage multiplied by the ratio of the number of live race | 0012| days run at that racetrack to the total number of live race days | 0013| run in this state during the preceding state fiscal year, the | 0014| net retainage so received by a racetrack being then distributed | 0015| as provided by Subsection H of Section 60-1-10 NMSA 1978. | 0016| Section 36. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0017| Chapter 91, Section 1, as amended) is amended to read: | 0018| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0019| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0020| A. In recognition of the fact that a representative | 0021| government is dependent upon an informed electorate, it is | 0022| declared to be public policy of this state that all persons are | 0023| entitled to the greatest possible information regarding the | 0024| affairs of government and the official acts of those officers | 0025| and employees who represent them. The formation of public | 0001| policy or the conduct of business by vote shall not be conducted | 0002| in closed meeting. All meetings of any public body except the | 0003| legislature and the courts shall be public meetings, and all | 0004| persons so desiring shall be permitted to attend and listen to | 0005| the deliberations and proceedings. Reasonable efforts shall be | 0006| made to accommodate the use of audio and video recording | 0007| devices. | 0008| B. All meetings of a quorum of members of any board, | 0009| commission, administrative adjudicatory body or other | 0010| policymaking body of any state agency, any agency or authority | 0011| of any county, municipality, district or any political | 0012| subdivision, held for the purpose of formulating public policy, | 0013| including the development of personnel policy, rules, | 0014| regulations or ordinances, discussing public business or for the | 0015| purpose of taking any action within the authority of or the | 0016| delegated authority of any board, commission or other | 0017| policymaking body are declared to be public meetings open to the | 0018| public at all times, except as otherwise provided in the | 0019| constitution of New Mexico or the Open Meetings Act. No public | 0020| meeting once convened that is otherwise required to be open | 0021| pursuant to the Open Meetings Act shall be closed or dissolved | 0022| into small groups or committees for the purpose of permitting | 0023| the closing of the meeting. | 0024| C. If otherwise allowed by law or rule of the public | 0025| body, a member of a public body may participate in a meeting of | 0001| the public body by means of a conference telephone or other | 0002| similar communications equipment when it is otherwise difficult | 0003| or impossible for the member to attend the meeting in person, | 0004| provided that each member participating by conference telephone | 0005| can be identified when speaking, all participants are able to | 0006| hear each other at the same time and members of the public | 0007| attending the meeting are able to hear any member of the public | 0008| body who speaks during the meeting. | 0009| D. Any meetings at which the discussion or adoption | 0010| of any proposed resolution, rule, regulation or formal action | 0011| occurs and at which a majority or quorum of the body is in | 0012| attendance, and any closed meetings, shall be held only after | 0013| reasonable notice to the public. The affected body shall | 0014| determine at least annually in a public meeting what notice for | 0015| a public meeting is reasonable when applied to that body. That | 0016| notice shall include broadcast stations licensed by the federal | 0017| communications commission and newspapers of general circulation | 0018| that have provided a written request for such notice. | 0019| E. A public body may recess and reconvene a meeting | 0020| to a day subsequent to that stated in the meeting notice if, | 0021| prior to recessing, the public body specifies the date, time and | 0022| place for continuation of the meeting, and, immediately | 0023| following the recessed meeting, posts notice of the date, time | 0024| and place for the reconvened meeting on or near the door of the | 0025| place where the original meeting was held and in at least one | 0001| other location appropriate to provide public notice of the | 0002| continuation of the meeting. Only matters appearing on the | 0003| agenda of the original meeting may be discussed at the | 0004| reconvened meeting. | 0005| F. Meeting notices shall include an agenda | 0006| containing a list of specific items of business to be discussed | 0007| or transacted at the meeting or information on how the public | 0008| may obtain a copy of such an agenda. Except in the case of an | 0009| emergency, the agenda shall be available to the public at least | 0010| twenty-four hours prior to the meeting. | 0011| Except for emergency matters, a public body shall take action | 0012| only on items appearing on the agenda. For purposes of this | 0013| subsection, an "emergency" refers to unforeseen circumstances | 0014| that, if not addressed immediately by the public body, will | 0015| likely result in injury or damage to persons or property or | 0016| substantial financial loss to the public body. | 0017| G. The board, commission or other policymaking body | 0018| shall keep written minutes of all its meetings. The minutes | 0019| shall include at a minimum the date, time and place of the | 0020| meeting, the names of members in attendance and those absent, | 0021| the substance of the proposals considered and a record of any | 0022| decisions and votes taken that show how each member voted. All | 0023| minutes are open to public inspection. Draft minutes shall be | 0024| prepared within ten working days after the meeting and shall be | 0025| approved, amended or disapproved at the next meeting where a | 0001| quorum is present. Minutes shall not become official until | 0002| approved by the policymaking body. | 0003| H. The provisions of Subsections A, B and G of this | 0004| section do not apply to: | 0005| (1) meetings pertaining to issuance, | 0006| suspension, renewal or revocation of a license, except that a | 0007| hearing at which evidence is offered or rebutted shall be open. | 0008| All final actions on the issuance, suspension, renewal or | 0009| revocation of a license shall be taken at an open meeting; | 0010| (2) limited personnel matters; provided that | 0011| for purposes of the Open Meetings Act, "limited personnel | 0012| matters" means the discussion of hiring, promotion, demotion, | 0013| dismissal, assignment or resignation of or the investigation or | 0014| consideration of complaints or charges against any individual | 0015| public employee; provided further that this subsection is not to | 0016| be construed as to exempt final actions on personnel from being | 0017| taken at open public meetings, nor does it preclude an aggrieved | 0018| public employee from demanding a public hearing. Judicial | 0019| candidates interviewed by any commission shall have the right to | 0020| demand an open interview; | 0021| (3) deliberations by a public body in | 0022| connection with an administrative adjudicatory proceeding. For | 0023| purposes of this paragraph, an "administrative adjudicatory | 0024| proceeding" means a proceeding brought by or against a person | 0025| before a public body in which individual legal rights, duties or | 0001| privileges are required by law to be determined by the public | 0002| body after an opportunity for a trial-type hearing. Except as | 0003| otherwise provided in this section, the actual administrative | 0004| adjudicatory proceeding at which evidence is offered or rebutted | 0005| and any final action taken as a result of the proceeding shall | 0006| occur in an open meeting; | 0007| (4) the discussion of personally identifiable | 0008| information about any individual student, unless the student, | 0009| his parent or guardian requests otherwise; | 0010| (5) meetings for the discussion of bargaining | 0011| strategy preliminary to collective bargaining negotiations | 0012| between the policymaking body and a bargaining unit representing | 0013| the employees of that policymaking body and collective | 0014| bargaining sessions at which the policymaking body and the | 0015| representatives of the collective bargaining unit are present; | 0016| (6) that portion of meetings at which a | 0017| decision concerning purchases in an amount exceeding two | 0018| thousand five hundred dollars ($2,500) that can be made only | 0019| from one source and that portion of meetings at which the | 0020| contents of competitive sealed proposals solicited pursuant to | 0021| the Procurement Code are discussed during the contract | 0022| negotiation process. The actual approval of purchase of the | 0023| item or final action regarding the selection of a contractor | 0024| shall be made in an open meeting; | 0025| (7) meetings subject to the attorney-client | 0001| privilege pertaining to threatened or pending litigation in | 0002| which the public body is or may become a participant; | 0003| (8) meetings for the discussion of the | 0004| purchase, acquisition or disposal of real property or water | 0005| rights by the public body; [and] | 0006| (9) those portions of meetings of committees or | 0007| boards of public hospitals that receive less than fifty percent | 0008| of their operating budget from direct public funds and | 0009| appropriations where strategic and long-range business plans are | 0010| discussed; and | 0011| (10) those portions of meetings of the gaming | 0012| board held pursuant to the Horse Racing Industry Enhancement Act | 0013| during which are discussed security and investigative | 0014| information that is otherwise permitted by law to be | 0015| confidential, proprietary information furnished as part of a | 0016| major procurement proposal or matters made confidential pursuant | 0017| to Section 13 of the Horse Racing Industry Enhancement Act. | 0018| I. If any meeting is closed pursuant to the | 0019| exclusions contained in Subsection H of this section, the | 0020| closure: | 0021| (1) if made in an open meeting, shall be | 0022| approved by a majority vote of a quorum of the policymaking | 0023| body; the authority for the closure and the subject to be | 0024| discussed shall be stated with reasonable specificity in the | 0025| motion calling for the vote on a closed meeting; the vote shall | 0001| be taken in an open meeting; and the vote of each individual | 0002| member shall be recorded in the minutes. Only those subjects | 0003| announced or voted upon prior to closure by the policymaking | 0004| body may be discussed in a closed meeting; and | 0005| (2) if called for when the policymaking body is | 0006| not in an open meeting, shall not be held until public notice, | 0007| appropriate under the circumstances, stating the specific | 0008| provision of the law authorizing the closed meeting and stating | 0009| with reasonable specificity the subject to be discussed is given | 0010| to the members and to the general public. | 0011| J. Following completion of any closed meeting, the | 0012| minutes of the open meeting that was closed or the minutes of | 0013| the next open meeting if the closed meeting was separately | 0014| scheduled shall state that the matters discussed in the closed | 0015| meeting were limited only to those specified in the motion for | 0016| closure or in the notice of the separate closed meeting. This | 0017| statement shall be approved by the public body under Subsection | 0018| G of this section as part of the minutes." | 0019| Section 37. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0020| Chapter 303, Section 19-1, as amended) is amended to read: | 0021| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0022| Chapter 30, Article 19 NMSA 1978: | 0023| A. "antique gambling device" means a gambling device | 0024| twenty-five years of age or older and substantially in original | 0025| condition that is not used for gambling or commercial gambling | 0001| or located in a gambling place; | 0002| B. "bet" means a bargain in which the parties agree | 0003| that, dependent upon chance, even though accompanied by some | 0004| skill, one stands to win or lose anything of value specified in | 0005| the agreement. A bet does not include: | 0006| (1) bona fide business transactions that are | 0007| valid under the law of contracts, including [without | 0008| limitation]: | 0009| (a) contracts for the purchase or sale, | 0010| at a future date, of securities or other commodities; and | 0011| (b) agreements to compensate for loss | 0012| caused by the happening of the chance, including [without | 0013| limitation] contracts for indemnity or guaranty and life or | 0014| health and accident insurance; | 0015| (2) offers of purses, prizes or premiums to the | 0016| actual contestants in any bona fide contest for the | 0017| determination of skill, speed, strength or endurance or to the | 0018| bona fide owners of animals or vehicles entered in such contest; | 0019| (3) a lottery as defined in this section; or | 0020| (4) betting otherwise permitted by law; | 0021| C. "lottery" means an enterprise [other than] | 0022| excluding both the New Mexico state lottery established and | 0023| operated pursuant to the New Mexico Lottery Act and the | 0024| operation of electronic gaming machines licensed pursuant to the | 0025| Horse Racing Industry Enhancement Act, wherein, for a | 0001| consideration, the participants are given an opportunity to win | 0002| a prize, the award of which is determined by chance, even though | 0003| accompanied by some skill. As used in this subsection, | 0004| "consideration" means anything of pecuniary value required to be | 0005| paid to the promoter in order to participate in such enterprise; | 0006| D. "gambling device" means a contrivance other than | 0007| an electronic gaming machine or other device licensed pursuant | 0008| to the Horse Racing Industry Enhancement Act or other lawfully | 0009| enacted similar act, other than an antique gambling device | 0010| that, for a consideration, affords the player an opportunity to | 0011| obtain anything of value, the award of which is determined by | 0012| chance, even though accompanied by some skill and whether or not | 0013| the prize is automatically paid by the device; and | 0014| E. "gambling place" means any building or tent, any | 0015| vehicle, whether self-propelled or not, or any room within any | 0016| of them, one of whose principal uses is: | 0017| (1) making and settling of bets; | 0018| (2) receiving, holding, recording or forwarding | 0019| bets or offers to bet; | 0020| (3) conducting lotteries; or | 0021| (4) playing gambling devices." | 0022| Section 38. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0023| Chapter 303, Section 19-6, as amended) is amended to read: | 0024| "30-19-6. [PERMISSIVE LOTTERY] PERMITTED ACTIVITIES.-- | 0025| A. Nothing in [Article 19] Chapter 30, Article | 0001| 19 NMSA 1978 shall be construed to apply to any sale or drawing | 0002| of any prize at any fair held in this state for the benefit of | 0003| any church, public library or religious society situate or being | 0004| in this state, or for charitable purposes when all the proceeds | 0005| of [such] the fair shall be expended in this state for the | 0006| benefit of [such] the church, public library, religious | 0007| society or charitable purposes. | 0008| A lottery shall be operated for the benefit of the | 0009| organization or charitable purpose only when the entire proceeds | 0010| of the lottery go to the organization or charitable purpose and | 0011| no part of such proceeds go to any individual member or employee | 0012| thereof. | 0013| B. Nothing in [Article 19] Chapter 30, Article | 0014| 19 NMSA 1978 shall be held to prohibit any bona fide motion | 0015| picture theatre from offering prizes of cash or merchandise for | 0016| advertising purposes, in connection with such business or for | 0017| the purpose of stimulating business, whether or not any | 0018| consideration other than a monetary consideration in excess of | 0019| the regular price of admission is exacted for participation in | 0020| drawings for prizes. | 0021| C. Nothing in [Article 19] Chapter 30, Article | 0022| 19 NMSA 1978 shall be held to apply to any bona fide county | 0023| fair, including fairs for more than one county, which shall have | 0024| been held annually at the same location for at least two years | 0025| and which shall offer prizes of livestock or poultry in | 0001| connection with [such] the fair when the proceeds of | 0002| [such] the drawings shall be used for the benefit of | 0003| [said] the fair. | 0004| D. Nothing in [Article 19] Chapter 30, Article | 0005| 19 NMSA 1978 shall be construed to apply to any lottery | 0006| operated by an organization exempt from the state income tax | 0007| pursuant to Subsection [C] B of Section 7-2-4 NMSA 1978 and | 0008| not subject to the provisions of Subsection A of this section; | 0009| provided that: | 0010| (1) no more than two lotteries shall be | 0011| operated in any year by such an organization; | 0012| (2) all the gross proceeds less the reasonable | 0013| cost of prizes of any lottery operated by such an organization | 0014| shall be expended in the state for the benefit of the | 0015| organization or public purposes; and | 0016| (3) no part of the proceeds of any lottery | 0017| shall go to any individual member or employee of any | 0018| organization except as payment for the purchase of prizes at no | 0019| more than the reasonable retail price. | 0020| E. Nothing in Chapter 30, Article 19 NMSA 1978 | 0021| prohibits or applies to gaming activities permitted pursuant to | 0022| the Horse Racing Industry Enhancement Act." | 0023| Section 39. Section 60-1-3 NMSA 1978 (being Laws 1933, | 0024| Chapter 55, Section 2, as amended by Laws 1989, Chapter 99, | 0025| Section 1 and also by Laws 1989, Chapter 377, Section 1) is | 0001| amended to read: | 0002| "60-1-3. APPLICATION FOR LICENSES--STATE RACING COMMISSION | 0003| CREATED--MEMBERS--TERMS OF OFFICE--VACANCIES--POWERS AND | 0004| DUTIES.-- | 0005| A. Any person, firm, association or corporation | 0006| desiring to hold a horse race or to engage in horse race | 0007| meetings shall apply to the state racing commission for a | 0008| license. | 0009| B. There is created the "state racing commission". | 0010| The state racing commission shall consist of five members, no | 0011| more than three of whom shall be members of the same political | 0012| party. They shall be appointed by the governor, and no less | 0013| than three of them shall be practical breeders of racehorses | 0014| within the state. Each member shall be an actual resident of | 0015| New Mexico and of such character and reputation as to promote | 0016| public confidence in the administration of racing affairs. | 0017| C. The term of office of each member of the state | 0018| racing commission shall be six years from his appointment, and | 0019| he shall serve until his successor is appointed and qualified. | 0020| In case of any vacancy in the membership of the commission, the | 0021| governor shall fill the vacancy by appointment for the unexpired | 0022| term. | 0023| D. No person shall be eligible for appointment as a | 0024| member of the state racing commission who is an officer, | 0025| official or director in any association or corporation | 0001| conducting racing within the state. | 0002| E. Members of the state racing commission shall | 0003| receive no salary, but each member of the commission shall | 0004| receive per diem and mileage in accordance with the Per Diem and | 0005| Mileage Act. The commission may appoint a secretary and fix his | 0006| duties and compensation. | 0007| F. The state racing commission has the power to: | 0008| (1) grant, refuse and revoke licenses; | 0009| (2) make rules and regulations for the holding, | 0010| conducting and operating of all race meets and races held in the | 0011| state and to fix and set racing dates; | 0012| (3) oversee implementation of all rules and | 0013| regulations adopted by the gaming board acting pursuant to the | 0014| Horse Racing Industry Enhancement Act that are applicable to | 0015| racetrack licensees and licensees who are authorized to operate | 0016| electronic gaming machines at racetracks in the state and are | 0017| authorized to operate pari-mutuel wagering at facilities other | 0018| than racetracks pursuant to the Horse Racing Industry | 0019| Enhancement Act and who are licensed by the commission under the | 0020| Horse Racing Act; and, subject to a delegation of such authority | 0021| to the commission by the gaming board, enforce all rules and | 0022| regulations adopted by the gaming board that are applicable to | 0023| racetrack licensees and licensees pursuant to the Horse Racing | 0024| Industry Enhancement Act; | 0025| [(3)] (4) make an annual report to the | 0001| governor of its administration of the racing laws; | 0002| [(4)] (5) require of each applicant for a | 0003| license the full name of the person, association or corporation | 0004| applying and, if the applicant is a corporation or an | 0005| association, the name of the state in which incorporated, the | 0006| nationality and residence of the members of the association and | 0007| the names of the stockholders and directors of the corporation; | 0008| [(5)] (6) require of an applicant for a | 0009| license the exact location where it is desired to conduct or | 0010| hold a race or race meeting, whether or not the racetrack or | 0011| plant is owned or leased and, if leased, the name and residence | 0012| of the fee owner or, if the owner is a corporation, the names of | 0013| the directors and stockholders, a statement of the assets and | 0014| liabilities of the person, association or corporation making the | 0015| application, the kind of racing to be conducted and the period | 0016| desired and such other information as the commission may | 0017| require; | 0018| [(6)] (7) require on each application a | 0019| statement under oath that the information contained in the | 0020| application is true; | 0021| [(7)] (8) personally or by agents and | 0022| representatives supervise and check the making of pari-mutuel | 0023| pools and the distribution from those pools; | 0024| [(8)] (9) cause the various places where | 0025| race meets are held to be visited and inspected at reasonable | 0001| intervals; | 0002| [(9)] (10) make rules governing, | 0003| restricting or regulating bids on leases; | 0004| [(10)] (11) regulate rates charged by the | 0005| licensee for admission to races or for the performance of any | 0006| service or the sale of any article on the premises of the | 0007| licensee; | 0008| [(11)] (12) approve all proposed | 0009| extensions, additions or improvements to the buildings, stables | 0010| or tracks upon property owned or leased by a licensee and | 0011| require the removal of any employee or official employed by the | 0012| licensee; | 0013| [(12)] (13) completely supervise and | 0014| control the pari-mutuel machines and equipment at all races held | 0015| or operated by the state or any state agency or commission; | 0016| [(13)] (14) approve all contracts and | 0017| agreements for the payment of money and all salaries, fees and | 0018| compensations by any licensee; | 0019| [(14)] (15) regulate the size of the purse, | 0020| stake or reward to be offered for the conducting of any race; | 0021| [(15)] (16) exclude or compel the exclusion | 0022| of, from all racecourses, any person whom the commission deems | 0023| detrimental to the best interests of racing or any person who | 0024| willfully violates the racing laws or any rule, regulation or | 0025| order of the commission or any law of the United States or of | 0001| this state; | 0002| [(16)] (17) compel the production of all | 0003| documents showing the receipts and disbursements of any licensee | 0004| and determine the manner in which such financial records shall | 0005| be kept; | 0006| [(17)] (18) investigate the operations of | 0007| any licensee, and the commission has authority to place | 0008| attendants and such other persons as may be deemed necessary in | 0009| the offices, on the tracks or in places of business of any | 0010| licensee for the purpose of satisfying itself that the rules and | 0011| regulations are strictly complied with; and | 0012| [(18)] (19) employ staff as peace officers | 0013| for the purpose of conducting investigations and for enforcing | 0014| rules and regulations of the state racing commission and the | 0015| laws of the state and to obtain documents and information from | 0016| other agencies in order to assist the state racing commission. | 0017| Staff employed as peace officers shall be required to satis- | 0018| factorily complete a basic law enforcement training program, but | 0019| such peace officers shall not carry firearms or other deadly | 0020| weapons while on duty. | 0021| G. The state racing commission shall publicly state | 0022| its reasons for refusing an application for a license. The | 0023| reasons shall be included in the minute book of the commission, | 0024| and the minute book shall be subject to public inspection at all | 0025| reasonable times. | 0001| H. The state racing commission has the power to | 0002| summon witnesses, books, papers, documents or tangible things | 0003| and to administer oaths for the effectual discharge of the | 0004| commission's duties. The commission may appoint a hearing | 0005| officer to conduct any hearing required by the Horse Racing Act | 0006| or any rule or regulation promulgated pursuant to that act." | 0007| Section 40. A new section 60-1-9.1 NMSA 1978 is enacted to | 0008| read: | 0009| "60-1-9.1. [NEW MATERIAL] GAMING BOARD TO HAVE ACCESS | 0010| TO LICENSURE INFORMATION.--The state racing commission shall | 0011| provide access to all information obtained by the commission in | 0012| connection with its licensing of horse race meetings to the | 0013| gaming board operating pursuant to the Horse Racing Industry | 0014| Enhancement Act, and the board shall utilize and review all such | 0015| information in connection with the issuance of licenses pursuant | 0016| to that act and shall not require the duplication of such | 0017| information." | 0018| Section 41. Section 60-1-10 NMSA 1978 (being Laws 1933, | 0019| Chapter 55, Section 6, as amended) is amended to read: | 0020| "60-1-10. PARI-MUTUEL METHOD LEGALIZED--MAXIMUM | 0021| COMMISSIONS--HORSEMEN'S COMMISSION--GAMBLING STATUTES NOT | 0022| REPEALED--COMMISSION DISTRIBUTION.-- | 0023| A. Within the enclosure where any horse races are | 0024| conducted, either as live on-track horse races or as horse races | 0025| simulcast pursuant to Section 60-1-25 NMSA 1978, and where the | 0001| licensee has been licensed to use the pari-mutuel method or | 0002| system of wagering on races, the pari-mutuel system is lawful, | 0003| but only within the enclosure where races are conducted. | 0004| B. The sale to patrons present on the grounds of | 0005| pari-mutuel tickets or certificates on the races or the use of | 0006| the pari-mutuel system shall not be construed to be betting, | 0007| gambling or pool selling and is authorized under the conditions | 0008| provided by law. | 0009| C. There shall be for each class A licensee a | 0010| commission of nineteen percent of the gross amount wagered on | 0011| win, place and show through the pari-mutuel system, of which | 0012| eighteen and three-fourths percent shall be retained by a class | 0013| A licensee and one-fourth of one percent shall be allocated to | 0014| the general fund. A commission in an amount determined by the | 0015| licensee of not less than eighteen and six-eighths percent and | 0016| not greater than twenty-five percent of the gross amount wagered | 0017| on win, place and show through the pari-mutuel system shall be | 0018| retained by a class B licensee. Each class B licensee shall | 0019| advise the state racing commission not less than thirty days in | 0020| advance of each horse racing meeting of the percentage the | 0021| licensee shall retain as commission. From that commission, each | 0022| class A and class B licensee shall allocate five-eighths of one | 0023| percent to the New Mexico horse breeders' association weekly for | 0024| distribution pursuant to the provisions of Subsection C of | 0025| Section 60-1-17 NMSA 1978. | 0001| D. Except as otherwise provided in this subsection, | 0002| a commission shall be retained by the licensee at the election | 0003| of each class A licensee of not less than twenty-one percent and | 0004| not greater than twenty-five percent of the gross amount wagered | 0005| on exotic wagering and at the election of each class B licensee, | 0006| and with the approval of the state racing commission, of not | 0007| less than twenty-one percent and not greater than thirty percent | 0008| of the gross amount wagered on exotic wagering. For the purpose | 0009| of this subsection, "exotic wagering" means all wagering other | 0010| than win, place and show, through the pari-mutuel system. Each | 0011| licensee shall advise the state racing commission not less than | 0012| thirty days in advance of each horse racing meeting of the | 0013| amount of the commission of the gross amount wagered on exotic | 0014| wagering to be retained by the licensee. From that commission, | 0015| the licensee shall allocate one and three-eighths percent to the | 0016| New Mexico horse breeders' association weekly for distribution | 0017| pursuant to the provisions of Subsection C of Section 60-1-17 | 0018| NMSA 1978. | 0019| E. The odd cents of all redistributions to the | 0020| wagerer over the next lowest multiple of ten from the gross | 0021| amount wagered through the pari-mutuel system shall be retained | 0022| by the licensee, with fifty percent of the total being allocated | 0023| to enhance the race purses of established stake races that | 0024| include only horses registered as New Mexico bred with the New | 0025| Mexico horse breeders' association, to be distributed by the New | 0001| Mexico horse breeders' association pursuant to Paragraph (3) of | 0002| Subsection C of Section 60-1-17 NMSA 1978 subject to the | 0003| approval of the state racing commission. | 0004| F. All money resulting from the failure of patrons | 0005| who purchased winning pari-mutuel tickets during the meeting to | 0006| redeem their winning tickets before the end of the sixty-day | 0007| period immediately succeeding the closing day of the meeting and | 0008| all money resulting from the failure of patrons who purchased | 0009| pari-mutuel tickets that were entitled to refund but were not | 0010| refunded during the same sixty-day period shall be apportioned | 0011| as follows: | 0012| (1) thirty-three and thirty-three hundredths | 0013| percent shall be retained by the licensee; | 0014| (2) thirty-three and thirty-four hundredths | 0015| percent shall be distributed to the New Mexico horse breeders' | 0016| association to enhance each track's established overnight purses | 0017| for races that include only horses registered as New Mexico bred | 0018| with the New Mexico horse breeders' association pursuant to | 0019| Paragraph (3) of Subsection C of Section 60-1-17 NMSA 1978, | 0020| subject to the approval of the state racing commission; and | 0021| (3) thirty-three and thirty-three hundredths | 0022| percent shall be allocated to [horseman's] horsemen's race | 0023| purses. | 0024| G. To promote and improve the quality of horse | 0025| racing and simulcasting and the participation of interested | 0001| persons in horse racing in New Mexico, one-half of one percent | 0002| of the gross amount wagered on simulcast horse races at each | 0003| licensed racetrack in New Mexico that receives simulcast horse | 0004| races shall be allocated by each licensee for distribution to | 0005| the New Mexico horsemen's association, provided that at least | 0006| one-quarter of one percent of the gross amount wagered on | 0007| simulcast races that is so allocated is used solely for medical | 0008| benefits for the members of the New Mexico horsemen's | 0009| association, and provided further that the remaining one-quarter | 0010| of one percent of the gross amount wagered on simulcast races | 0011| that is so allocated shall be used to enhance purses at each | 0012| such licensed racetrack. The state racing commission shall by | 0013| regulation provide for the timing and manner of the distribution | 0014| required by this subsection and shall audit, or arrange for an | 0015| independent audit of, the disbursement required by this | 0016| subsection. | 0017| H. Subject to the provisions of Subsection D of | 0018| Section 35 of the Horse Racing Industry Enhancement Act, fifty | 0019| percent of the net retainage of each licensee shall be allocated | 0020| to race purses. For purposes of this section, "net retainage" | 0021| of the licensee means the commission retained by the licensee on | 0022| all forms of wagers minus: | 0023| (1) the taxes delineated in Sections 60-1-8 and | 0024| 60-1-15 NMSA 1978; | 0025| (2) money allocated to the New Mexico horse | 0001| breeders' association by this section and Section 60-1-17 NMSA | 0002| 1978; | 0003| (3) money allocated to the New Mexico | 0004| horsemen's association by this section; | 0005| (4) a deduction for expenses incurred to engage | 0006| in intrastate simulcasting pursuant to Section | 0007| 60-1-25 NMSA 1978, provided that: | 0008| (a) the deduction for each licensee shall | 0009| be a portion of five percent of the gross amount wagered at all | 0010| the sites receiving the same simulcast horse races; | 0011| (b) the deduction portion for each | 0012| licensee shall be an amount allocated to the licensee by | 0013| agreement voluntarily reached among all the licensees sending or | 0014| receiving the same simulcast horse races; and | 0015| (c) the deduction portion for each | 0016| licensee shall be an amount allocated to the licensee by the | 0017| state racing commission if all the licensees sending or | 0018| receiving the same simulcast horse races fail to reach a | 0019| voluntary agreement under Subparagraph (b) of this paragraph; | 0020| and | 0021| (5) a deduction for fees and commissions | 0022| incurred to receive interstate simulcasts pursuant to Section | 0023| 60-1-25 NMSA 1978. | 0024| I. Existing statutes of this state against horse | 0025| racing on Sundays or on bookmaking, pool selling or other | 0001| methods of wagering on the racing of horses are not repealed but | 0002| are hereby expressly continued in effect, with the exception | 0003| that the operation of the pari-mutuel method or system in | 0004| connection with the racing of horses, when used as provided by | 0005| law, is lawful. | 0006| J. In the event any money paid or allocated to the | 0007| New Mexico horse breeders' association or the New Mexico | 0008| Appaloosa racing association pursuant to the Horse Racing Act | 0009| cannot be paid to or allocated or administered by such | 0010| associations, then the state racing commission, or such other | 0011| organization as may be designated, retained or absolutely | 0012| controlled by the state racing commission, shall receive all | 0013| such money and shall pay, allocate and administer all such money | 0014| pursuant to the provisions of Section 60-1-17 NMSA 1978. If the | 0015| state racing commission or its controlled designee is required | 0016| to pay, allocate or administer money on behalf of the New Mexico | 0017| horse breeders' association or the New Mexico Appaloosa racing | 0018| association pursuant to this subsection, then the maximum | 0019| percentage of funds set forth in Paragraph (3) of Subsection C | 0020| of Section 60-1-17 NMSA 1978 shall be paid by the state racing | 0021| commission to the New Mexico horse breeders' association or the | 0022| New Mexico Appaloosa racing association as a fee to obtain the | 0023| certification of the registry of the dam and stud of the New | 0024| Mexico bred horse. | 0025| K. In the event any money paid or allocated to the | 0001| New Mexico horsemen's association pursuant to the Horse Racing | 0002| Act cannot be paid to or allocated or administered by the | 0003| association, then the state racing commission, or such other | 0004| organization as may be designated, retained or absolutely | 0005| controlled by the state racing commission, shall receive all | 0006| such money and shall pay, allocate and administer all such money | 0007| to achieve the purposes of the provisions of this section." | 0008| Section 42. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0009| Chapter 39, Section 96) is amended to read: | 0010| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0011| A. It is a violation of the Liquor Control Act for a | 0012| licensee to knowingly allow commercial gambling on the licensed | 0013| premises. | 0014| B. In addition to any criminal penalties, any person | 0015| who violates Subsection A of this section may have his license | 0016| suspended or revoked or a fine imposed, or both, pursuant to the | 0017| Liquor Control Act. | 0018| C. For purposes of this section, "commercial | 0019| gambling" means: | 0020| (1) participating in the earnings of or | 0021| operating a gambling place; | 0022| (2) receiving, recording or forwarding bets or | 0023| offers to bet; | 0024| (3) possessing facilities with the intent to | 0025| receive, record or forward bets or offers to bet; | 0001| (4) for gain, becoming a custodian of anything | 0002| of value bet or offered to be bet; | 0003| (5) conducting a lottery where both the | 0004| consideration and the prize are money, or whoever with intent to | 0005| conduct a lottery possesses facilities to do so; or | 0006| (6) setting up for use for the purpose of | 0007| gambling, or collecting the proceeds of, any gambling device or | 0008| game. | 0009| D. A horse racetrack or off-track betting facility | 0010| licensed to conduct parimutuel wagering or electronic gaming is | 0011| exempt from the application of the provisions of this section." | 0012|  | 0013| | 0014| FORTY-SECOND LEGISLATURE | 0015| SECOND SESSION, 1996 | 0016| | 0017| | 0018| JANUARY 29, 1996 | 0019| | 0020| Mr. President: | 0021| | 0022| Your COMMITTEES' COMMITTEE, to whom has been referred | 0023| | 0024| SENATE BILL 381 | 0025| | 0001| has had it under consideration and finds same to be GERMANE, PURSUANT | 0002| TO CONSTITUIONAL PROVISIONS, and thence referred to the COMMITTEE | 0003| OF THE WHOLE COMMITTEE. | 0004| | 0005| Respectfully submitted, | 0006| | 0007| | 0008| | 0009| | 0010| __________________________________ | 0011| SENATOR MANNY M. ARAGON, Chairman | 0012| | 0013| | 0014| | 0015| Adopted_______________________ Not Adopted_______________________ | 0016| (Chief Clerk) (Chief Clerk) | 0017| | 0018| | 0019| Date ________________________ | 0020| | 0021| | 0022| | 0023| S0381CC1 | 0024| | 0025| FORTY-SECOND LEGISLATURE | 0001| SECOND SESSION, 1996 | 0002| | 0003| | 0004| February 2, 1996 | 0005| | 0006| Mr. President: | 0007| | 0008| Your COMMITTEE OF THE WHOLE, to whom has been referred | 0009| | 0010| SENATE BILL 381 | 0011| | 0012| has had it under consideration and reports same WITHOUT | 0013| RECOMMENDATION, and thence placed on the President's | 0014| Table. | 0015| | 0016| Respectfully submitted, | 0017| | 0018| | 0019| | 0020| __________________________________ | 0021| Manny M. Aragon, Chairman | 0022| | 0023| | 0024| | 0025| Adopted_______________________ Not Adopted_______________________ | 0001| (Chief Clerk) (Chief Clerk) | 0002| | 0003| | 0004| | 0005| Date ________________________ | 0006| | 0007| | 0008| The roll call vote was 19 For 12 Against | 0009| Yes: 19 | 0010| No: Aragon, Donisthorpe, Kidd, Kysar, Lyons, Rawson, Rhodes, | 0011| Riley, Romero, Rutherford, Scott, Smith | 0012| Excused: Benavides, Carraro, Ingle, E. Jennings, T. Jennings, McKibben, | 0013| Naranjo, Rodriguez, Stefanics, Vernon, Wiener | 0014| Absent: None | 0015| | 0016| | 0017| S0381WS1 | 0018| |