0001| SENATE BILL 701 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| MANNY M. ARAGON | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO GAMING; PERMITTING LIMITED CASINO GAMING ACTIVITIES; | 0013| ESTABLISHING ADMINISTRATIVE AND REGULATORY PROVISIONS; IMPOSING | 0014| A TAX ON CASINO GAMING ACTIVITIES; CREATING THE GAMING | 0015| AUTHORITY; PROVIDING PENALTIES; MAKING AN APPROPRIATION; | 0016| AMENDING AND ENACTING SECTIONS OF THE NMSA 1978. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0020| through 45 of this act may be cited as the "Gaming Control Act". | 0021| Section 2. [NEW MATERIAL] LEGISLATIVE POLICY.--It is | 0022| the policy of the legislature that: | 0023| A. limited gaming activities should be permitted in | 0024| the state if those activities are strictly regulated to ensure | 0025| honest and competitive gaming free from criminal and corruptive | 0001| elements and influence; and | 0002| B. the holder of any license or permit issued by the | 0003| state in connection with the regulation of gaming activities has | 0004| only a revocable privilege and has no property right or vested | 0005| interest in the license or permit. | 0006| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0007| Gaming Control Act: | 0008| A. "applicant" means any person who has applied for | 0009| a manufacturer's license, distributor's license, establishment | 0010| license, service technician's license or gaming machine license | 0011| pursuant to the provisions of the Gaming Control Act or for | 0012| approval of any act or transaction for which approval is | 0013| required or permitted under the provisions of that act; | 0014| B. "application" means a request for the issuance of | 0015| a manufacturer's license, distributor's license, establishment | 0016| license, service technician's license or gaming machine license | 0017| pursuant to the provisions of the Gaming Control Act or for | 0018| approval of any act or transaction for which approval is | 0019| required or permitted under the provisions of that act but does | 0020| not include any supplemental forms or information that may be | 0021| required with the application; | 0022| C. "authority" means the gaming authority created | 0023| pursuant to the Gaming Control Act; | 0024| D. "casino gaming" means all types of gaming; | 0025| E. "credit instrument" means a writing that | 0001| evidences a gaming debt owed to a person who holds a gaming | 0002| establishment license at the time the debt is created, and | 0003| includes any writing taken in consolidation, redemption or | 0004| payment of a prior credit instrument; | 0005| F. "distributor" means a person who distributes | 0006| gaming devices to a gaming establishment licensee; | 0007| G. "distributor's license" means any license issued | 0008| by the authority that authorizes the person named to be a | 0009| distributor; | 0010| H. "equity security" means: | 0011| (1) any voting stock of a company or similar | 0012| security; | 0013| (2) any security convertible, with or without | 0014| consideration, into voting stock or similar security or carrying | 0015| any warrant or right to subscribe to or purchase voting stock or | 0016| similar security; | 0017| (3) any warrant or right to subscribe to or | 0018| purchase voting stock or similar security; or | 0019| (4) any security having a direct or indirect | 0020| participation in the profits of the issuer; | 0021| I. "game" or "gambling game" means any game played | 0022| with cards, dice, equipment or any mechanical, electromechanical | 0023| or electronic device or machine for money, property, checks, | 0024| credit or any representative of value; but "game" or "gambling | 0025| game" does not include games played with cards in private homes | 0001| or residences in which no person makes money for operating the | 0002| game except as a player; | 0003| J. "gaming" or "gambling" means to operate, carry | 0004| on, conduct, maintain or expose for play any game; | 0005| K. "gaming device" means any mechanical, | 0006| electromechanical or electronic contrivance, component or | 0007| machine used in connection with gaming or any game that affects | 0008| the result of a wager by determining win or loss. "Gaming | 0009| device" includes a system for processing information that can | 0010| alter the normal criteria of random selection that affects the | 0011| operation of any game or determines the outcome of a game. | 0012| "Gaming device" does not include a system or device that affects | 0013| a game solely by stopping its operation so that the outcome | 0014| remains undetermined; | 0015| L. "gaming employee" means any person connected | 0016| directly with the operation of a gaming establishment licensed | 0017| to conduct any gaming; the term "gaming employee" also includes | 0018| employees of a person holding a manufacturer's license whose | 0019| duties are directly involved with manufacture of gaming devices | 0020| within New Mexico; employees of a person holding a distributor's | 0021| license whose duties are directly involved with the distributor | 0022| of or gaming devices within New Mexico; and employees of a | 0023| person whose duties are directly involved with servicing and | 0024| repairing gaming devices within New Mexico. "Gaming employee" | 0025| does not include bartenders, cocktail servers or other persons | 0001| engaged solely in preparing or serving food or beverages, or | 0002| secretarial personnel, janitorial, stage, sound and light | 0003| technicians and other nongaming personnel; | 0004| M. "gaming establishment license" or "establishment | 0005| license" means a license to conduct casino gaming at a location | 0006| specified in the license; | 0007| N. "gaming machine" means any mechanical, | 0008| electrical, electronic or electromechanical device, contrivance | 0009| or machine that, upon insertion of a coin, token or similar | 0010| object, or upon payment of any consideration, is available to | 0011| play or operate, the play or operation of which, whether by | 0012| reason of the skill of the player or operator or application of | 0013| the element of chance, or both, may deliver or entitle the | 0014| player or operator to receive cash, premiums, credits, | 0015| merchandise, tokens or any thing of value, whether the payoff is | 0016| made automatically from the machine or in any other manner; | 0017| O. "gross revenue" means the total of all the | 0018| following, less the total of all cash paid out as losses to | 0019| winning patrons and those amounts paid to purchase annuities to | 0020| fund losses paid to winning patrons over several years by | 0021| independent administrators: | 0022| (1) cash received from patrons for the purpose | 0023| of gaming; | 0024| (2) cash received in payment for credit | 0025| extended by a licensee to a patron for the purpose of gaming; | 0001| and | 0002| (3) compensation received for conducting any | 0003| game in which the licensee is not a party to a wager; | 0004| P. "license" means a manufacturer's license, a | 0005| distributor's license, an establishment license, a technician's | 0006| license or a license required by the authority by regulation for | 0007| conducting other gaming activities; | 0008| Q. "licensed gaming establishment" means any | 0009| premises in which or on which gaming is conducted pursuant to a | 0010| license revised by the authority; | 0011| R. "licensee" means any person to whom a valid | 0012| license has been issued; | 0013| S. "manufacturer" means a person who manufactures, | 0014| assembles, produces, programs or makes modifications to any | 0015| gaming device for use or play in New Mexico or for distribution | 0016| outside New Mexico from any location within New Mexico; | 0017| T. "manufacturer's license" means any license issued | 0018| by the authority that authorizes the licensee to manufacture, | 0019| assemble, produce, program or otherwise produce or make | 0020| modifications to any gaming device in New Mexico or from a | 0021| location outside New Mexico for use or play in New Mexico; | 0022| U. "person" means an individual or other entity; | 0023| V. "publicly traded corporation" means a corporation | 0024| that: | 0025| (1) has one or more classes of securities | 0001| registered pursuant to the securities laws of the United States | 0002| or of New Mexico; | 0003| (2) is an issuer subject to the securities laws | 0004| of the United States or of New Mexico; or | 0005| (3) has one or more classes of securities | 0006| registered or is an issuer pursuant to applicable foreign laws | 0007| that the authority finds provide protection for investors that | 0008| is comparable to or greater than the stricter of the securities | 0009| laws of the United States or of New Mexico laws; and | 0010| W. "regulation" means a rule, standard, directive or | 0011| statement of general applicability that effectuates the law or | 0012| policy or describes the procedures of the authority. | 0013| "Regulation" does not include: | 0014| (1) a statement concerning only the internal | 0015| management of the authority and not affecting the rights or | 0016| procedures available to any licensee or other person; | 0017| (2) a declaratory ruling; | 0018| (3) an interagency memorandum; or | 0019| (4) the authority's decision in a contested | 0020| case or relating to the application for a license. | 0021| Section 4. [NEW MATERIAL] GAMING AUTHORITY CREATED.-- | 0022| A. The "gaming authority" is created and consists of | 0023| five members. Two members shall be appointed by the governor | 0024| with the consent of the senate. One member shall be appointed | 0025| by the president pro tempore of the senate with the consent of | 0001| the senate. One member shall be appointed by the speaker of the | 0002| house of representatives with the consent of the senate. One | 0003| member shall be appointed by the other four members of the | 0004| authority, with the consent of the senate. All members of the | 0005| authority shall be residents of New Mexico and citizens of the | 0006| United States. | 0007| B. The members of the authority shall be appointed | 0008| for terms of five years, except, of the members who are first | 0009| appointed, two shall be appointed for a term of five years, two | 0010| shall be appointed for a term of four years and two shall be | 0011| appointed for a term of three years. Thereafter, all members | 0012| shall be appointed for terms of five years. An appointed | 0013| authority member shall serve and have all of the duties and | 0014| powers of that office during the period of time prior to final | 0015| action by the senate confirming or rejecting his appointment. | 0016| C. Vacancies on the authority shall be filled within | 0017| thirty days by the person originally appointing the member whose | 0018| position is vacant and the appointee shall serve for the | 0019| unexpired portion of the term in which the vacancy occurs. D. The authority shall appoint a chair annually from | 0020| its membership. | 0021| E. No more than three members of the authority shall | 0022| be from the same political party. | 0023| F. The members of the authority shall be reimbursed | 0024| pursuant to the provisions of the Per Diem and Mileage Act when | 0025| engaged in authority business. | 0001| G. The special investigations division of the | 0002| department of public safety shall conduct background | 0003| investigations of all members of the authority prior to | 0004| confirmation by the senate. A person who has been convicted of | 0005| a felony or any crime involving gambling, moral turpitude, fraud | 0006| or theft is not eligible for appointment and shall not serve as | 0007| a member of the authority. | 0008| H. No member of the authority or any member of his | 0009| immediate family or household shall have any financial interest | 0010| in or derive any financial benefit from a business that is | 0011| regulated by the authority, and at the time of taking office, | 0012| each authority member shall file with the secretary of state a | 0013| sworn statement to that effect. | 0014| Section 5. [NEW MATERIAL] AUTHORITY--MEETINGS--QUORUM--RECORDS.-- | 0015| A. A majority of the qualified membership of the | 0016| authority then in office constitutes a quorum. No action may be | 0017| taken by the authority unless at least three members concur. | 0018| B. Written notice of the time and place of each | 0019| meeting of the authority shall be given to each member at least | 0020| ten days prior to the meeting. | 0021| C. Meetings of the authority shall be open and | 0022| public in accordance with the Open Meetings Act, except that the | 0023| authority may have closed meetings to hear security and | 0024| investigative information. | 0025| D. All proceedings of the authority shall be | 0001| recorded by audio tape or other equivalent verbatim audio | 0002| recording device. | 0003| E. The chairman of the authority or a majority of | 0004| its members then in office may call a special meeting of the | 0005| authority upon written notice to all members of the authority. | 0006| Section 6. [NEW MATERIAL] AUTHORITY'S POWERS AND | 0007| DUTIES.-- | 0008| A. The authority shall develop and implement the | 0009| state's policy on gaming consistent with the provisions of the | 0010| Gaming Control Act. It has the duty to fulfill all | 0011| responsibilities assigned to it pursuant to that act and has all | 0012| powers necessary to carry out those responsibilities. It may | 0013| delegate power to its employees but it retains accountability. | 0014| The authority is an adjunct agency. | 0015| B. The authority shall: | 0016| (1) make the final decision on issuance, | 0017| denial, suspension and revocation of all licenses pursuant to | 0018| and consistent with the provisions of the Gaming Control Act; | 0019| (2) develop, adopt and promulgate all | 0020| regulations necessary to implement and administer the provisions | 0021| of the Gaming Control Act; | 0022| (3) conduct itself, or employ a hearing officer | 0023| to conduct, all hearings required by the provisions of the | 0024| Gaming Control Act and any other hearings it deems appropriate | 0025| to fulfill its responsibilities; | 0001| (4) meet at least once each month; and | 0002| (5) prepare and submit an annual report in | 0003| December of each year to the governor and the legislature | 0004| covering its activities in the most recently completed fiscal | 0005| year, a summary of gaming activities in the state authorized | 0006| pursuant to the Gaming Control Act and any recommended changes | 0007| in or additions to the laws relating to gaming in the state. | 0008| C. The authority may: | 0009| (1) employ individuals to assist it in carrying | 0010| out its responsibilities; | 0011| (2) impose civil fines not to exceed ten | 0012| thousand dollars ($10,000) for the first violation and fifteen | 0013| thousand dollars ($15,000) for subsequent violations of any | 0014| prohibitory provision of the Gaming Control Act or any | 0015| prohibitory provision of a regulation adopted pursuant to that | 0016| act; | 0017| (3) conduct investigations, subpoena persons | 0018| and documents to compel access to or for the production of | 0019| books, papers, records or memoranda in the custody or control of | 0020| any licensee or compel the appearance of employees of a licensee | 0021| or other persons for the purpose of ascertaining compliance with | 0022| any provision of the Gaming Control Act or a regulation adopted | 0023| pursuant to its provisions; | 0024| (4) administer oaths and take depositions to | 0025| the same extent and subject to the same limitations as would | 0001| apply if the deposition were pursuant to discovery rules in a | 0002| civil action in the district court; | 0003| (5) sue and be sued subject to the limitations | 0004| of the Tort Claims Act; | 0005| (6) contract for the provision of goods and | 0006| services necessary to carry out its responsibilities; | 0007| (7) conduct audits of applicants, licensees and | 0008| persons affiliated with licensees; | 0009| (8) inspect all places where gaming is | 0010| conducted or gaming devices are manufactured, sold or | 0011| distributed and inspect all equipment and supplies in those | 0012| places; | 0013| (9) summarily seize and remove from places | 0014| inspected and impound any equipment, supplies, documents or | 0015| records for the purpose of examination or inspection; and | 0016| (10) except for the powers specified in | 0017| Paragraphs (2) and (5) of this subsection, carry out all or part | 0018| of any of the foregoing powers and activities through delegation | 0019| of authority to its employees. | 0020| Section 7. [NEW MATERIAL] AUTHORITY REGULATIONS--DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0021| A. The authority may adopt any regulation: | 0022| (1) consistent with the provisions of the | 0023| Gaming Control Act; and | 0024| (2) deemed necessary by it to implement the | 0025| provisions of the Gaming Control Act. | 0001| B. No regulation affecting any person or agency | 0002| outside the authority shall be adopted, amended or repealed | 0003| without a public hearing on the proposed action before the | 0004| authority or a hearing officer designated by it. The public | 0005| hearing shall be held in Santa Fe. Notice of the subject matter | 0006| of the regulation, the action proposed to be taken, the time and | 0007| place of the hearing, the manner in which interested persons may | 0008| present their views and the method by which copies of the | 0009| proposed regulation or a proposed amendment to or proposed | 0010| repeal of an existing regulation may be obtained shall be | 0011| published once at least thirty days prior to the hearing date in | 0012| a newspaper of general circulation and mailed at least thirty | 0013| days prior to the hearing date to all persons who have made a | 0014| written request for advance notice of hearing. All regulations | 0015| shall be filed in accordance with the State Rules Act. | 0016| C. The authority shall adopt regulations: | 0017| (1) prescribing the method and form of | 0018| application to be followed by applicants for licenses; | 0019| (2) requiring work permits for gaming employees | 0020| and prescribing the information to be furnished by a licensee | 0021| about his gaming employees; | 0022| (3) requiring the fingerprinting or other | 0023| reliable methods of identification of applicants; | 0024| (4) prescribing the manner and procedure of all | 0025| hearings conducted by the authority or a hearing officer; | 0001| (5) requiring an applicant to pay all or part | 0002| of the fees and costs of investigation of the applicant as | 0003| determined by the authority; | 0004| (6) prescribing the manner and method of | 0005| collection and payment of fees and the issuance of licenses; | 0006| (7) defining the area, games and gaming devices | 0007| permitted and the methods of operation of the games and gaming | 0008| devices; | 0009| (8) establishing hours of operation for gaming; | 0010| (9) prescribing under what conditions the | 0011| nonpayment of a gambling debt by a gaming establishment licensee | 0012| is grounds for suspension or revocation of its license; | 0013| (10) governing the manufacture, sale, | 0014| distribution, repair and servicing of gaming devices; | 0015| (11) requiring any applicant or licensee to | 0016| waive any privilege with respect to any testimony at any hearing | 0017| or meeting of the authority, except a privilege afforded by the | 0018| constitutions of the United States or New Mexico; | 0019| (12) governing the specifications for approval | 0020| and licensing of gaming machines; | 0021| (13) governing accounting procedures, security, | 0022| collection and verification procedures required of licensees and | 0023| matters regarding financial responsibility of licensees; and | 0024| (14) establishing grounds and procedures for | 0025| the denial, suspension or revocation of a license. | 0001| Section 8. [NEW MATERIAL] EMPLOYEES--BACKGROUND | 0002| INVESTIGATION.-- | 0003| A. A background investigation shall be conducted on | 0004| each applicant for employment with the authority. The authority | 0005| shall contract with the department of public safety for the | 0006| performance of the investigations. The background | 0007| investigations shall include credit checks, police record | 0008| checks, conviction record checks, national and statewide | 0009| criminal records clearinghouse checks and fingerprint checks. | 0010| All information obtained through a background investigation | 0011| shall be confidential, except that the authority may exchange | 0012| such confidential information with state, federal and local law | 0013| enforcement agencies. | 0014| B. Any individual convicted of a felony or any crime | 0015| involving gambling, moral turpitude, fraud or theft shall not be | 0016| employed by the authority. | 0017| Section 9. [NEW MATERIAL] CONFLICTS OF INTEREST--AUTHORITY--EMPLOYEES.-- | 0018| A. In addition to all other provisions of New Mexico | 0019| law regarding conflicts of interest of state officials and | 0020| employees, a member of the authority, an authority employee or | 0021| any person residing in the household of a member of the | 0022| authority or an employee shall not: | 0023| (1) directly or indirectly, individually, as a | 0024| member of a partnership or other association, or as a | 0025| stockholder, director or officer of a corporation, have an | 0001| interest in a business licensed pursuant to the Gaming Control | 0002| Act; or | 0003| (2) accept or agree to accept any economic | 0004| opportunity, gift, loan, gratuity, special discount, favor, | 0005| hospitality or service having an aggregate value of one hundred | 0006| dollars ($100) or more in any calendar year from a person | 0007| licensed or applying for a license pursuant to the Gaming | 0008| Control Act. | 0009| B. If a member of the authority, an employee of the | 0010| authority or any person residing in the household of any of the | 0011| named persons violates any provision of this section or | 0012| Subsection H of Section 4 of the Gaming Control Act, the member | 0013| of the authority or an employee of the authority shall be | 0014| removed from his office or position. | 0015| Section 10. [NEW MATERIAL] CASINO GAMING PERMITTED--ELIGIBLE COUNTIES--CONDITIONS.--Casino gaming is permitted: | 0016| A. in a licensed gaming establishment; | 0017| B. at the times, in the manner and under the | 0018| conditions prescribed by regulations of the authority; and | 0019| C. at no more than two locations in: | 0020| (1) a class B county: | 0021| (a) having a population as determined by | 0022| the 1990 federal census of not more than twenty-five thousand | 0023| persons and not less than ten thousand persons; and | 0024| (b) having a 1993 net taxable value of | 0025| property, as that term is defined in the Property Tax Code, of | 0001| at least two hundred seventy million dollars ($270,000,000) but | 0002| not more than three hundred thirty million dollars | 0003| ($330,000,000); and | 0004| (2) a class A county currently having a | 0005| population of less than four hundred thousand persons. | 0006| Section 11. [NEW MATERIAL] LICENSE REQUIRED FOR CERTAIN | 0007| ACTIVITIES.-- | 0008| A. No person shall own, possess or control a place | 0009| used for gaming unless the place is licensed as a gaming | 0010| establishment. | 0011| B. No person shall sell or distribute in the state | 0012| any gaming device unless he is licensed as a distributor. | 0013| C. No person shall manufacture, assemble, program or | 0014| make modifications to a gaming device for use or play in this | 0015| state or for distribution outside this state unless he is | 0016| licensed as a manufacturer. | 0017| D. No person shall possess or control a place where | 0018| there is an unlicensed gaming machine. Any unlicensed gaming | 0019| machine, except one in the possession of a licensee while | 0020| awaiting licensure of the machine, is subject to forfeiture and | 0021| confiscation by any law enforcement agency or officer. | 0022| E. No person shall service or repair a gaming device | 0023| or associated equipment unless he is licensed as a service | 0024| technician. | 0025| F. No person shall engage in any activity for which | 0001| the authority requires a license or permit without obtaining the | 0002| license or permit. | 0003| Section 12. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0004| A. The authority shall establish the following | 0005| categories of licenses: | 0006| (1) manufacturers; | 0007| (2) distributors; | 0008| (3) establishment; | 0009| (4) machines; | 0010| (5) service technicians; or | 0011| (6) any other category of license deemed | 0012| necessary for secure, orderly, effective and efficient control | 0013| and operation of casino gaming in the state. | 0014| B. Except for a gaming establishment licensee having | 0015| licensed machines, no licensee shall hold more than one type of | 0016| license issued pursuant to the provisions of the Gaming Control | 0017| Act or own a majority interest in, manage or otherwise control, | 0018| a holder of another type of license issued pursuant to the | 0019| provisions of that act. | 0020| C. Applicants for a license shall apply on forms | 0021| provided by the authority and furnish all information requested | 0022| by the authority. Submission of an application constitutes | 0023| consent to a credit check of the applicant and all persons | 0024| having a substantial interest in the applicant and any other | 0025| background investigations required pursuant to the Gaming | 0001| Control Act or deemed necessary by the authority. | 0002| D. All licenses issued by the authority pursuant to | 0003| the provisions of this section shall be reviewed for renewal | 0004| annually, unless revoked, suspended, canceled or terminated. | 0005| E. No license issued pursuant to the provisions of | 0006| the Gaming Control Act shall be transferred or assigned. | 0007| F. The application for a license shall include: | 0008| (1) the name of the proposed licensee; | 0009| (2) the location of the proposed operation; | 0010| (3) the gaming devices to be operated, | 0011| supplied, distributed or serviced; | 0012| (4) the names of all persons directly or | 0013| indirectly interested in the business and the nature of such | 0014| interest; and | 0015| (5) such other information and details as the | 0016| authority may require. | 0017| G. The authority shall furnish to the applicant | 0018| supplemental forms that the applicant shall complete and file | 0019| with the application. Such supplemental forms shall require, | 0020| but shall not be limited to, complete information and details | 0021| with respect to the applicant's habits, character, criminal | 0022| records, business activities, financial affairs and business | 0023| associates, covering at least a ten-year period immediately | 0024| preceding the date of filing of the application. | 0025| Section 13. [NEW MATERIAL] LICENSE FEES.-- | 0001| A. The following license fees shall be paid to the | 0002| authority: | 0003| (1) establishment license, two hundred fifty | 0004| thousand dollars ($250,000) for the initial license and twenty-five thousand dollars ($25,000) for annual renewal; | 0005| (2) manufacturer's license, five thousand | 0006| dollars ($5,000) for the initial license and one thousand | 0007| dollars ($1,000) for annual renewal; | 0008| (3) distributor's license, five thousand | 0009| dollars ($5,000) for the initial license and one thousand | 0010| dollars ($1,000) for annual renewal; and | 0011| (4) for each separate gaming machine licensed, | 0012| one hundred dollars ($100) initially and one hundred dollars | 0013| ($100) annually for renewal. | 0014| B. The authority shall establish the license fee for | 0015| service technicians and the fee for any other license or permit | 0016| by regulation, but no fee established by the authority shall | 0017| exceed one hundred dollars ($100). The authority shall also | 0018| establish by regulation a nonrefundable application fee of no | 0019| more than five hundred dollars ($500) to be charged to | 0020| applicants other than establishment license applicants. | 0021| Section 14. [NEW MATERIAL] REQUIRED DISCLOSURE BY | 0022| APPLICANTS.-- | 0023| A. The following disclosures are required of all | 0024| applicants: | 0025| (1) name and address of the applicant and the | 0001| name and address of the following: | 0002| (a) if the applicant is a corporation, | 0003| the officers, directors and each stockholder in the corporation; | 0004| except that, in the case of stockholders of publicly held equity | 0005| securities of a publicly traded corporation, only the names and | 0006| addresses of those known to the corporation to beneficially own | 0007| five percent or more of the securities; | 0008| (b) if the applicant is a trust, the | 0009| trustee and all persons entitled to receive income or benefit | 0010| from the trust; | 0011| (c) if the applicant is an association, | 0012| the members, officers and directors; | 0013| (d) if the applicant is a subsidiary, the | 0014| officers, directors and each stockholder of the parent | 0015| corporation; except that in the case of stockholders of publicly | 0016| held equity securities of a publicly traded corporation, only | 0017| the names and addresses of those known to the corporation to | 0018| beneficially own five percent or more of the securities; | 0019| (e) if the applicant is a partnership or | 0020| joint venture, all of the general partners, limited partners or | 0021| joint venturers; | 0022| (f) if the parent company, general | 0023| partner, limited partner or joint venturer of any applicant is | 0024| itself a corporation, trust, association, subsidiary, | 0025| partnership or joint venture, then all the information required | 0001| in this section shall be disclosed by the parent company, | 0002| general partner, limited partner or joint venturer as if it were | 0003| itself the applicant so that full disclosure is achieved; and | 0004| (g) if any member of the immediate family | 0005| of any individual applicant is involved in the applicant's | 0006| business in any capacity, then all of the information required | 0007| in this section shall be disclosed for the immediate family | 0008| member as if the family member were the applicant; | 0009| (2) all the states and jurisdictions in which | 0010| each control person: | 0011| (a) does business and the nature of that | 0012| business for each state and jurisdiction; | 0013| (b) has contracts to supply gaming | 0014| devices, associated equipment or gaming services, including the | 0015| nature of the devices, equipment or services involved for each | 0016| state or jurisdiction; and | 0017| (c) has applied for, has sought renewal | 0018| of, has received, has been denied, has pending or has had | 0019| revoked a gaming license of any kind, and the disposition of the | 0020| application, renewal, denial, pendency or revocation of the | 0021| license in each state or jurisdiction; and regarding any gaming | 0022| license that has been revoked or has not been renewed, or any | 0023| gaming license application that has been denied or is or has | 0024| remained pending for greater than six months, all the facts and | 0025| circumstances underlying the failure to receive a license by | 0001| renewal or application or regarding the revocation; (3) the details of any conviction in or | 0002| judgment of a state or federal court of each control person of | 0003| any felony and any other criminal offense other than traffic | 0004| offenses; | 0005| (4) the details of any bankruptcy, insolvency, | 0006| reorganization or any pending litigation of each control person; | 0007| (5) for each control person who is a natural | 0008| person, the general details of employment, residence, education | 0009| and military history since the age of eighteen years and any | 0010| federal, state or local elective position ever held by the | 0011| control person; | 0012| (6) a consolidated report of all reportable | 0013| information on all reportable contributions by each control | 0014| person to any local, state or federal political candidate or | 0015| political committee in this state for the past five years that | 0016| is reportable pursuant to the provisions of any existing state | 0017| or federal law; | 0018| (7) the identity of any entity with which each | 0019| control person has a joint venture or other contractual | 0020| arrangement to supply any state or jurisdiction with gaming | 0021| devices, associated equipment or gaming services, including a | 0022| disclosure with regard to the entity of all of the information | 0023| requested in Paragraph (1) of this subsection; | 0024| (8) financial statements and copies of federal | 0025| and state income tax returns of the applicant for the five years | 0001| prior to the date of application; | 0002| (9) any economic interest known by the | 0003| applicant that is held by any member of the authority or an | 0004| employee of the authority in the business of the applicant or | 0005| any control person; and | 0006| (10) any additional disclosures as determined | 0007| to be necessary by the authority. | 0008| B. No license may be issued or renewed for an | 0009| applicant or licensee who has not complied with the disclosure | 0010| requirements, including periodic updates required pursuant to | 0011| regulations of the authority, described in this section for each | 0012| of its control persons. | 0013| C. As used in this section, "control person" means | 0014| the applicant and all persons whose identity must be disclosed | 0015| in Paragraph (1) of Subsection A of this section. | 0016| D. Any response to a request for a name, address, | 0017| date of birth, social security number, place of birth, current | 0018| residence, current marital status, duration of marriage, | 0019| residence addresses for the last ten years and spouse's name, | 0020| address, date of birth and social security number shall include | 0021| all versions of that information that has been used by the | 0022| applicant or the control person for whom the information has | 0023| been requested. | 0024| E. Pursuant to regulations adopted by the authority, | 0025| all or any part of the costs of any disclosure or background | 0001| investigation of any applicant may be billed to and shall be | 0002| paid by the applicant. | 0003| Section 15. [NEW MATERIAL] ACTION BY AUTHORITY ON | 0004| APPLICATIONS.-- | 0005| A. Any person that the authority determines is | 0006| qualified to receive a license pursuant to the provisions of the | 0007| Gaming Control Act, having due consideration for the proper | 0008| protection of the health, safety, morals, good order and general | 0009| welfare of the inhabitants of this state and the declared policy | 0010| of this state, may be issued a license. The burden of proving | 0011| qualifications is on the applicant. | 0012| B. An application to receive a license shall not be | 0013| granted unless the authority is satisfied that the applicant is: | 0014| (1) a person of good moral character, honesty | 0015| and integrity; | 0016| (2) a person whose prior activities, criminal | 0017| record, if any, reputation, habits and associations do not pose | 0018| a threat to the public interest or to the effective regulation | 0019| and control of gaming or create or enhance the dangers of | 0020| unsuitable, unfair or illegal practices, methods and activities | 0021| in the conduct of gaming or the carrying on of the business and | 0022| financial arrangements incidental thereto; and | 0023| (3) in all other respects qualified to be | 0024| licensed consistent with the laws of this state. | 0025| C. A license shall not be granted pursuant to the | 0001| Gaming Control Act unless the applicant has satisfied the | 0002| authority that: | 0003| (1) the applicant has adequate business | 0004| probity, competence and experience in business or gaming; | 0005| (2) the proposed financing of the applicant is | 0006| adequate for the nature of the proposed license and from a | 0007| suitable source; any lender or other source of money or credit | 0008| that the authority finds does not meet the standards set forth | 0009| in Subsection B of this section shall be deemed unsuitable; and | 0010| (3) the applicant is sufficiently capitalized | 0011| under standards set by the authority to conduct the business | 0012| covered by the license applied for. | 0013| D. In addition to other requirements for licensure, | 0014| an applicant for an establishment license shall at the time of | 0015| submitting the application: | 0016| (1) pay a nonrefundable deposit of one hundred | 0017| thousand dollars ($100,000) to cover the expenses of background | 0018| investigations necessary to be performed in connection with that | 0019| application; | 0020| (2) present an irrevocable commitment to | 0021| construction of a hotel with a minimum of two hundred rooms | 0022| adjoining the proposed casino gaming establishment with the | 0023| completion of the construction to be a condition precedent to | 0024| the issuance of the license; and | 0025| (3) demonstrate to the satisfaction of the | 0001| authority that the applicant has the ability and the willingness | 0002| to promote economic development and employment in the community | 0003| in which the establishment is located. | 0004| E. An application to receive a license constitutes a | 0005| request for a determination of the applicant's general moral | 0006| character, integrity and ability to participate or engage in or | 0007| be associated with gaming. Any written or oral statement made | 0008| in the course of an official proceeding of the authority or by | 0009| any witness testifying under oath that is relevant to the | 0010| purpose of the proceeding is absolutely privileged and does not | 0011| impose liability for defamation or constitute a ground for | 0012| recovery in any civil action. | 0013| F. The authority shall investigate the | 0014| qualifications of each applicant before any license is issued by | 0015| the authority and shall continue to observe and monitor the | 0016| conduct of all licensees and the persons having a material | 0017| involvement directly or indirectly with a licensed gaming | 0018| operation. | 0019| G. The authority has the authority to deny any | 0020| application or limit, condition, restrict, revoke or suspend any | 0021| license for any reasonable cause. | 0022| H. The authority may issue or deny a license to the | 0023| applicant. The authority may limit or place those reasonable | 0024| conditions it deems necessary to the public interest upon any | 0025| license for which application has been made. | 0001| I. After the issuance of the license, it shall | 0002| continue in effect upon proper payment of the license fees, | 0003| subject to the power of the authority to revoke, suspend, | 0004| condition or limit licenses. | 0005| J. The authority has full and absolute power to deny | 0006| any application for any cause it deems reasonable. If an | 0007| application is denied, the authority shall prepare and file its | 0008| written decision upon which its order denying the application is | 0009| based. | 0010| Section 16. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0011| CERTAIN PERSONS FROM LICENSED ESTABLISHMENTS--PERSONS | 0012| INCLUDED.-- | 0013| A. The authority shall by regulation provide for the | 0014| establishment of a list of persons who are to be excluded or | 0015| ejected from any licensed gaming establishment. The list may | 0016| include any person whose presence in the establishment is | 0017| determined by the authority to pose a threat to the public | 0018| interest or to licensed gaming, or both. | 0019| B. In making the determination in Subsection A of | 0020| this section, the authority may consider any: | 0021| (1) prior conviction of a crime that is a | 0022| felony under state or federal law, a crime involving moral | 0023| turpitude or a violation of the gaming laws of any jurisdiction; | 0024| (2) violation or conspiracy to violate the | 0025| provisions of the Gaming Control Act relating to: | 0001| (a) the failure to disclose an interest | 0002| in a gaming establishment for which the person must obtain a | 0003| license; or | 0004| (b) willful evasion of fees or taxes; | 0005| (3) notorious or unsavory reputation that would | 0006| adversely affect public confidence and trust that the gaming | 0007| industry is free from criminal or corruptive demands; or | 0008| (4) written order of any other governmental | 0009| agency in this state or any other state that authorizes the | 0010| exclusion or ejection of the person from an establishment at | 0011| which gaming is conducted. | 0012| C. A licensed gaming establishment has the right, | 0013| without any list established by the board, to exclude or eject | 0014| any person from the establishment who poses a threat to the | 0015| public interest or to licensed gaming or for any business | 0016| reason. | 0017| D. Race, color, creed, national origin or ancestry, | 0018| age, disability or sex shall not be grounds for placing the name | 0019| of a person upon the list or for exclusion or ejection under | 0020| Subsection C of this section. | 0021| Section 17. [NEW MATERIAL] INTERNAL AND EXTERNAL | 0022| CONTROL SYSTEMS.-- | 0023| A. Each licensed gaming establishment shall adopt | 0024| internal and external control systems that shall include, but | 0025| not be limited to, provisions for: | 0001| (1) safeguarding its assets and revenues, | 0002| especially the recording of cash and evidences of indebtedness; | 0003| (2) making and maintaining reliable records, | 0004| accounts and reports of transactions, operations and events, | 0005| including reports to the board; and | 0006| (3) a system by which the amount wagered on | 0007| each gaming machine and the amount paid out by each machine is | 0008| recorded on a daily basis, which results may be obtained by the | 0009| authority by appropriate means as described in regulations | 0010| promulgated by the authority; all manufacturers will be required | 0011| to have such a system available for licensed gaming | 0012| establishments for the gaming machines that it supplies for use | 0013| in New Mexico; and all distributors shall make such a system | 0014| available to establishments. | 0015| B. The internal control system shall be designed to | 0016| reasonably ensure that: | 0017| (1) assets are safeguarded; | 0018| (2) financial records are accurate and | 0019| reliable; | 0020| (3) transactions are performed only in | 0021| accordance with management's general or specific authorization; | 0022| (4) transactions are recorded adequately to | 0023| permit proper reporting of gaming revenue and of fees and taxes, | 0024| and to maintain accountability of assets; | 0025| (5) access to assets is permitted only in | 0001| accordance with management's specific authorization; | 0002| (6) recorded accountability for assets is | 0003| compared with actual assets at reasonable intervals and | 0004| appropriate action is taken with respect to any discrepancies; | 0005| and | 0006| (7) functions, duties and responsibilities are | 0007| appropriately segregated and performed in accordance with sound | 0008| accounting and management practices by competent, qualified | 0009| personnel. | 0010| C. Each licensed gaming establishment and each | 0011| applicant for a gaming establishment license shall describe, in | 0012| the manner the authority may approve or require, its | 0013| administrative and accounting procedures in detail in a written | 0014| system of internal control. Each licensed gaming establishment | 0015| and applicant for a gaming establishment license shall submit a | 0016| copy of its written system to the authority. Each written | 0017| system shall include: | 0018| (1) an organizational chart depicting | 0019| appropriate segregation of functions and responsibilities; | 0020| (2) a description of the duties and | 0021| responsibilities of each position shown on the organizational | 0022| chart; | 0023| (3) a detailed, narrative description of the | 0024| administrative and accounting procedures designed to satisfy the | 0025| requirements of Subsection A of this section; | 0001| (4) a written statement signed by the | 0002| licensee's chief financial officer and either the licensee's | 0003| chief executive officer or a licensed owner attesting that the | 0004| system satisfies the requirements of this section; | 0005| (5) if the written system is submitted by an | 0006| applicant, a letter from an independent certified public | 0007| accountant stating that the applicant's written system has been | 0008| reviewed by the accountant and complies with the requirements of | 0009| this section; and | 0010| (6) such other items as the authority may | 0011| require. | 0012| D. The authority shall adopt and publish minimum | 0013| standards for internal control procedures. | 0014| Section 18. [NEW MATERIAL] GAMING EMPLOYEES--ISSUANCE | 0015| OF WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0016| A. A person shall not be employed as a gaming | 0017| employee unless the person holds a valid work permit issued by | 0018| the authority. | 0019| B. A work permit shall be issued and may be revoked | 0020| by the authority as provided in regulations adopted by the | 0021| authority. | 0022| C. Any person whose work permit has been denied or | 0023| revoked may seek judicial review as provided in applicable law. | 0024| Section 19. [NEW MATERIAL] AGE REQUIREMENT FOR PATRONS | 0025| AND GAMING EMPLOYEES.--A person under the age of twenty-one | 0001| years of age shall not: | 0002| A. play, be allowed to play, place wagers or collect | 0003| winnings from, whether personally or through an agent, any game | 0004| authorized under the Gaming Control Act; or | 0005| B. be employed as a gaming employee. | 0006| Section 20. [NEW MATERIAL] ACCEPTANCE OF CREDIT | 0007| INSTRUMENTS BY LICENSEE.-- | 0008| A. A credit instrument evidencing a gaming debt is | 0009| authorized by the Gaming Control Act and may be enforced by | 0010| legal process. | 0011| B. A gaming establishment licensee or person acting | 0012| on the licensee's behalf may accept an incomplete credit | 0013| instrument that is signed by a patron and states the amount of | 0014| the debt in figures. The licensee may complete the instrument | 0015| as is necessary for the instrument to be presented for payment. | 0016| C. A gaming establishment licensee or person acting | 0017| on behalf of a licensee: | 0018| (1) shall not accept a credit instrument that | 0019| is incomplete except as authorized in Subsection B of this | 0020| section; and | 0021| (2) may accept a credit instrument that is | 0022| payable to an affiliate or affiliated company or may complete a | 0023| credit instrument in the name of an affiliate or affiliated | 0024| company as payout if the credit instrument otherwise complies | 0025| with this section and the records of the affiliate or an | 0001| affiliated company pertaining to the credit instrument are made | 0002| available to the authority upon request. | 0003| D. This section does not prohibit the establishment | 0004| of an account by a deposit of cash, recognized traveler's check | 0005| or any other instrument that is equivalent to cash. | 0006| E. Any person, gaming establishment licensee or its | 0007| agents or employees that violates the provisions of this section | 0008| is subject only to the penalties provided by regulations of the | 0009| authority. The failure of a person to comply with the | 0010| provisions of this section or the regulations of the authority | 0011| does not invalidate a credit instrument or affect the ability to | 0012| enforce the credit instrument or the debt that the credit | 0013| instrument represents. | 0014| Section 21. [NEW MATERIAL] FACE VALUE OF CREDIT | 0015| INSTRUMENT INCLUDED IN COMPUTATION OF GROSS REVENUE-- | 0016| EXCEPTIONS--CASH RECEIVED IN PAYMENT OF DEBT NOT INCLUDED IN | 0017| GROSS REVENUE.-- | 0018| A. For the purposes of the Gaming Control Act, | 0019| except as otherwise provided in Subsection C of this section, | 0020| the computation of gross revenue shall include the face value of | 0021| any credit instrument if, within two years after the last day of | 0022| the month following the month in which that instrument was | 0023| accepted by the gaming establishment licensee, the authority | 0024| determines that: | 0025| (1) the instrument was not signed by the patron | 0001| or otherwise acknowledged by him in a written form satisfactory | 0002| to the authority; | 0003| (2) the licensee did not have an address for | 0004| the patron at the time of accepting the instrument, or, in lieu | 0005| of that address, has not provided the authority, within a | 0006| reasonable time after its request, the current address of the | 0007| patron to whom the credit was extended; | 0008| (3) the licensee has not provided the authority | 0009| with any evidence that the licensee made a reasonable effort to | 0010| collect the debt; | 0011| (4) the licensee has not provided the authority | 0012| with any evidence that the licensee checked the credit history | 0013| of the patron before extending credit to him; | 0014| (5) the licensee has not produced the | 0015| instrument within a reasonable time after a request by the | 0016| authority for the instrument unless it: | 0017| (a) is in the possession of a court, | 0018| governmental agency or financial institution; | 0019| (b) has been returned to the patron upon | 0020| his partial payment of the instrument and the licensee has | 0021| obtained a substitute credit instrument for the remaining | 0022| balance; | 0023| (c) has been stolen and the licensee has | 0024| made a written report of the theft to the appropriate law | 0025| enforcement agency; or | 0001| (d) cannot be produced because of any | 0002| other circumstance that is beyond the licensee's control; | 0003| (6) the signature of the patron on the | 0004| instrument was forged and the licensee has not made a written | 0005| report of the forgery to the appropriate law enforcement agency; | 0006| or | 0007| (7) upon an audit by the authority, the | 0008| licensee requested the auditors not to confirm the unpaid | 0009| balance of the debit with the patron and there is not other | 0010| satisfactory means of confirmation. | 0011| B. For the purpose of the Gaming Control Act, the | 0012| computation of gross revenue shall not include cash or its | 0013| equivalent that is received in full or partial payment of a debt | 0014| previously included in the computation of gross revenue pursuant | 0015| to Subsection A of this section. | 0016| C. The provisions of Subsection A of this section do | 0017| not apply to any credit instrument that is settled for less than | 0018| its face amount to: | 0019| (1) induce a substantial partial payment; | 0020| (2) compromise a dispute; or | 0021| (3) obtain a patron's business if: | 0022| (a) an agreement is entered into to | 0023| discount the face amount of a credit instrument before it is | 0024| issued to induce timely payment of the credit instrument; and | 0025| (b) the percentage of discount of the | 0001| instrument is reasonable as compared to the prevailing practice | 0002| in the industry. | 0003| Section 22. [NEW MATERIAL] CALCULATION OF GROSS | 0004| REVENUE--CERTAIN EXPENSES NOT DEDUCTIBLE.-- | 0005| A. In calculating gross revenue, any prizes, | 0006| premiums, drawings, benefits or tickets that are redeemable for | 0007| money or merchandise or other promotional allowance, except | 0008| money or tokens paid at face value directly to a patron as the | 0009| result of a specific wager and the amount of cash paid to | 0010| purchase an annuity to fund losses paid to winning patrons, | 0011| shall not be deducted as losses from winnings at any game except | 0012| a gaming machine. | 0013| B. In calculating gross revenue from gaming | 0014| machines, the actual cost to the licensee of any personal | 0015| property distributed to a patron as the result of a legitimate | 0016| wager may be deducted as a loss, but not travel expenses, food, | 0017| refreshments, lodging or services. For the purposes of this | 0018| section, "as the result of a legitimate wager" means that the | 0019| patron must make a wager prior to receiving the personal | 0020| property, regardless of whether the receipt of the personal | 0021| property is dependent on the outcome of the wager. | 0022| Section 23. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0023| LICENSE FEES.--No municipality or other political subdivision of | 0024| the state shall impose any license fee or tax on any licensee | 0025| licensed pursuant to the Gaming Control Act except for the | 0001| imposition of property taxes and gross receipts taxes. | 0002| Section 24. [NEW MATERIAL] USE OF CHIPS, TOKENS OR | 0003| LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be | 0004| conducted with chips, tokens or other instrumentalities approved | 0005| by the board or with the legal currency of the United States. | 0006| Section 25. [NEW MATERIAL] RECORDS OF GAMING | 0007| ESTABLISHMENT LICENSEES.-- | 0008| A. A gaming establishment licensee shall keep its | 0009| books and records to clearly show the amount of gross revenue | 0010| and other revenues received. | 0011| B. On a monthly basis, the gaming establishment | 0012| licensee shall furnish to the authority reports and information | 0013| as the authority may require with respect to its activities on | 0014| forms designed and supplied for that purpose by the authority. | 0015| Section 26. [NEW MATERIAL] COMMUNICATION OR DOCUMENT OF | 0016| APPLICANT OR LICENSEE ABSOLUTELY PRIVILEGED--PRIVILEGE NOT | 0017| WAIVED--DISCLOSURE OF PRIVILEGED INFORMATION PROHIBITED.-- | 0018| A. Any communication or document of an applicant or | 0019| licensee is absolutely privileged and does not impose liability | 0020| for defamation or constitute a ground for recovery in any civil | 0021| action if it is required by: | 0022| (1) law or the regulations of the authority; or | 0023| (2) a subpoena issued by the authority to be | 0024| made or transmitted to the authority. | 0025| B. The privilege created pursuant to Subsection A of | 0001| this section is not waived or lost because the document or | 0002| communication is disclosed to the authority. | 0003| C. Notwithstanding the powers granted to the | 0004| authority by the Gaming Control Act, the authority: | 0005| (1) shall not release or disclose any | 0006| privileged information, documents or communications provided by | 0007| an applicant or licensee without the prior written consent of | 0008| the applicant or licensee or pursuant to a lawful court order | 0009| after timely notice of the proceedings has been given to the | 0010| applicant or licensee; | 0011| (2) shall maintain all privileged information, | 0012| documents and communications in a secure place accessible only | 0013| to members of the authority; and | 0014| (3) shall adopt procedures and regulations to | 0015| protect the privileged nature of information, documents and | 0016| communications provided by an applicant or licensee. | 0017| Section 27. [NEW MATERIAL] MOTION FOR RELEASE OF | 0018| CONFIDENTIAL INFORMATION.--An application to a court for an | 0019| order requiring the authority to release any information | 0020| declared by law to be confidential shall be made only upon | 0021| motion in writing on ten days written notice to the authority, | 0022| the attorney general and all persons who may be affected by the | 0023| entry of such an order. Copies of the motion and all papers | 0024| filed in support of it shall be served with the notice by | 0025| delivering a copy in person or by certified mail to the last | 0001| known address of the person to be served. | 0002| Section 28. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0003| SYSTEM.--The authority shall develop and operate a central | 0004| system to which all licensed gaming machines are connected. The | 0005| central system shall be capable of: | 0006| A. retrieving and auditing the operation, financial | 0007| data and program information of the network; | 0008| B. disabling from operation or play any gaming | 0009| machine in the network that does not comply with the provisions | 0010| of the Gaming Control Act or the regulations of the authority; | 0011| C. communicating, through program modifications or | 0012| other equally effective means, with all gaming machines licensed | 0013| by the authority; | 0014| D. interacting, reading, communicating and linking | 0015| with gaming machines from a broad spectrum of manufacturers and | 0016| associated equipment; and | 0017| E. providing linkage to each gaming machine in the | 0018| network at a reasonable and affordable cost to the state or the | 0019| establishment and allowing for program modifications and system | 0020| updating at a reasonable rate of cost. | 0021| Section 29. [NEW MATERIAL] MACHINE SPECIFICATIONS.--To | 0022| be eligible for licensure, each gaming machine shall meet all | 0023| specifications established by regulations of the authority and: | 0024| A. be unable to be manipulated in a manner that | 0025| affects the random probability of winning plays or in any other | 0001| manner determined by the authority to be desirable; | 0002| B. have at least one mechanism that accepts coins or | 0003| currency, but does not accept bills of denominations greater | 0004| than twenty dollars ($20.00); | 0005| C. be capable of having play suspended through the | 0006| central system by the authority until the authority resets the | 0007| gaming machine; | 0008| D. house nonresettable mechanical and electronic | 0009| meters within a readily accessible locked area of the gaming | 0010| machine that maintain a permanent record of all money inserted | 0011| into the machine, all cash payouts of winnings, all refunds of | 0012| winnings made by the machine's printer, all credits played for | 0013| additional games and all credits won by players; | 0014| E. have a printing mechanism capable of printing out | 0015| at the request of the authority readings on the electronic | 0016| meters of the machine; | 0017| F. be capable of printing a ticket voucher stating | 0018| the value of a cash prize won by the player at the completion of | 0019| each game, the date and time of the day the game was played in a | 0020| twenty-four hour format showing hours and minutes, the machine | 0021| serial number, the sequential number of the ticket voucher and | 0022| an encrypted validation number for determining the validity of a | 0023| winning ticket voucher; | 0024| G. be capable of being linked to the authority's | 0025| central system for the purpose of auditing the operation, | 0001| financial data and program information as required by the | 0002| authority; | 0003| H. provide for a payback value for each credit | 0004| wagered, determined over time, of not less than eighty percent | 0005| or more than ninety-six percent; | 0006| I. offer only games authorized and examined by the | 0007| authority; and | 0008| J. display the gaming machine license issued for | 0009| that machine in an easily accessible place, before and during | 0010| the time that a machine is available for use. | 0011| Section 30. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0012| ODDS.--The odds of winning on each gaming machine shall be | 0013| posted on or near each gaming machine. The authority shall | 0014| provide the manner in which the odds shall be posted by | 0015| regulation. | 0016| Section 31. [NEW MATERIAL] EXAMINATION OF MACHINES AND | 0017| EQUIPMENT--COST ALLOCATION.-- | 0018| A. The authority shall examine prototypes of gaming | 0019| devices of manufacturers seeking a license as required pursuant | 0020| to the provisions of the Gaming Control Act. | 0021| B. The authority by regulation shall require the | 0022| manufacturer seeking the licensing of a gaming device to pay the | 0023| anticipated actual costs of the examination in advance and, | 0024| after the completion of the examination, shall refund | 0025| overpayments or charge and collect amounts sufficient to | 0001| reimburse the authority for underpayments of actual costs. | 0002| C. The authority may contract for the examination of | 0003| gaming devices to meet the requirements of this section. | 0004| Section 32. [NEW MATERIAL] GAMING TAX--IMPOSITION--ADMINISTRATION.-- | 0005| A. An excise tax is imposed upon the privilege of | 0006| conducting casino gaming in the state. This tax shall be known | 0007| as the "gaming tax". | 0008| B. The gaming tax is measured as a percentage of | 0009| gross revenue of a licensed gaming establishment. The rate of | 0010| the tax is twelve percent. | 0011| C. The gaming tax shall be administered and | 0012| collected by the taxation and revenue department in cooperation | 0013| with the authority, and the provisions of the Tax Administration | 0014| Act apply to the collection and administration of the tax. | 0015| Section 33. [NEW MATERIAL] GAMING FUND CREATED--DISTRIBUTION OF ALL FEES AND TAXES TO THE GAMING FUND--DISTRIBUTION FROM THE FUND.-- | 0016| A. The "gaming fund" is created in the state | 0017| treasury. All license fees collected pursuant to the Gaming | 0018| Control Act and all net proceeds of the gaming tax shall be | 0019| deposited into the gaming fund. | 0020| B. The gaming fund shall be invested as are other | 0021| state funds. Interest earned on the investment of the fund | 0022| shall be retained in the fund. | 0023| C. Money in the gaming fund is appropriated as | 0024| follows: | 0025| (1) the receipts to the fund from license fees | 0001| and other administrative impositions to the authority to | 0002| administer the Gaming Control Act; and | 0003| (2) the balance to the general fund; | 0004| Section 34. [NEW MATERIAL] FRAUDULENT ACTS--PENALTY.-- | 0005| A. A person commits an offense if the person | 0006| knowingly: | 0007| (1) alters or misrepresents the outcome of a | 0008| game or other event on which wagers have been made after the | 0009| outcome is made sure but before it is revealed to the players; | 0010| (2) places, increases or decreases a bet or | 0011| determines the course of play after acquiring knowledge not | 0012| available to all players of the outcome of the game or any event | 0013| that affects the outcome of the game or that is the subject of | 0014| the bet or to aid anyone in acquiring that knowledge for the | 0015| purpose of placing, increasing or decreasing a bet or | 0016| determining the course of play contingent upon that event or | 0017| outcome; | 0018| (3) claims, collects or takes, or attempts to | 0019| claim, collect or take, money or anything of value in or from a | 0020| gambling game, with intent to defraud, without having made a | 0021| wager contingent thereon, or claims, collects or takes an amount | 0022| greater than the amount won; | 0023| (4) entices or induces another to go to any | 0024| place where a gambling game is being conducted or operated in | 0025| violation of the provisions of the Gaming Control Act, with the | 0001| intent that the other person play or participate in that | 0002| gambling game; | 0003| (5) places or increases a bet after acquiring | 0004| knowledge of the outcome of the game or other event that is the | 0005| subject of the bet, including past-posting and pressing bets; | 0006| (6) reduces the amount wagered or cancels the | 0007| bet after acquiring knowledge of the outcome of the game or | 0008| other event that is the subject of the bet, including pinching | 0009| bets; or | 0010| (7) manipulates, with the intent to cheat, any | 0011| component of a gaming device in a manner contrary to the | 0012| designed and normal operational purpose for the component, | 0013| including, but not limited to, varying the pull of the handle of | 0014| a slot machine, with knowledge that the manipulation affects the | 0015| outcome of the game or with knowledge of any event that affects | 0016| the outcome of the game. | 0017| B. An offense under this section is a fourth degree | 0018| felony, and upon conviction a person shall be sentenced pursuant | 0019| to the provisions of Section 31-18-15 NMSA 1978. | 0020| Section 35. [NEW MATERIAL] USE OF DEVICE FOR | 0021| CALCULATING PROBABILITIES.-- | 0022| A. A person commits an offense who, at a licensed | 0023| gaming establishment, uses or possesses with the intent to use | 0024| any device to assist: | 0025| (1) in projecting the outcome of the game; | 0001| (2) in keeping track of the cards played; | 0002| (3) in analyzing the probability of the | 0003| occurrence of an event relating to the game; or | 0004| (4) in analyzing the strategy for playing or | 0005| betting to be used in the game. | 0006| B. An offense under this section is a misdemeanor, | 0007| and upon conviction a person shall be sentenced pursuant to the | 0008| provisions of Section 31-19-1 NMSA 1978. | 0009| Section 36. [NEW MATERIAL] USE OF COUNTERFEIT OR | 0010| UNAPPROVED CHIPS OR TOKENS OR UNLAWFUL COINS OR DEVICES--POSSESSION OF CERTAIN DEVICES, EQUIPMENT, PRODUCTS OR | 0011| MATERIALS.-- | 0012| A. A person commits an offense who knowingly uses | 0013| counterfeit chips in a gambling game. | 0014| B. A person commits an offense who, in playing or | 0015| using any gambling game designed to be played with, receive or | 0016| be operated by chips or tokens approved by the board or by | 0017| lawful currency of the United States knowingly uses chips or | 0018| tokens other than those approved by the authority, uses currency | 0019| that is not lawful currency of the United States or uses | 0020| currency not of the same denomination as the currency intended | 0021| to be used in that gambling game. | 0022| C. A person other than a duly authorized employee of | 0023| a gaming establishment licensee or of the authority acting in | 0024| furtherance of his employment within a licensed establishment | 0025| commits an offense who knowingly has on his person or in his | 0001| possession on or off the premises of any licensed gaming | 0002| establishment any device intended to be used by him to violate | 0003| the provisions of the Gaming Control Act. | 0004| D. A person other than a duly authorized employee of | 0005| a gaming establishment licensee acting in furtherance of his | 0006| employment within a licensed establishment commits an offense | 0007| who knowingly has on his person or in his possession on or off | 0008| the premises of any licensed gaming establishment any key or | 0009| device known by him to have been designed for the purpose of and | 0010| suitable for opening, entering or affecting the operation of any | 0011| gambling game, drop box or any electronic or mechanical device | 0012| connected thereto, or for removing money or other contents | 0013| therefrom. | 0014| E. A person commits an offense who knowingly and | 0015| with intent to use them for cheating has on his person or in his | 0016| possession any paraphernalia for manufacturing slugs. As used | 0017| in this subsection, "paraphernalia for manufacturing slugs" | 0018| means the equipment, products and materials that are intended | 0019| for use or designed for use in manufacturing, producing, | 0020| fabricating, preparing, testing, analyzing, packaging, storing | 0021| or concealing a counterfeit facsimile of the chips or tokens | 0022| approved by the board or a lawful coin of the United States, the | 0023| use of which is unlawful pursuant to the Gaming Control Act. | 0024| The term includes but is not limited to: | 0025| (1) lead or lead alloys; | 0001| (2) molds, forms or similar equipment capable | 0002| of producing a likeness of a gaming token or coin; | 0003| (3) melting pots or other receptacles; | 0004| (4) torches; and | 0005| (5) tongs, trimming tools or other similar | 0006| equipment. | 0007| F. Possession of more than two items of the | 0008| equipment, products or material described in Subsection E of | 0009| this section permits a rebuttable inference that the possessor | 0010| intended to use them for cheating. | 0011| G. An offense under this section is a third degree | 0012| felony and upon conviction a person shall be sentenced pursuant | 0013| to the provisions of Section 31-18-15 NMSA 1978. | 0014| Section 37. [NEW MATERIAL] CHEATING.-- | 0015| A. A person commits an offense who knowingly cheats | 0016| at any gambling game. | 0017| B. An offense under this section is a fourth degree | 0018| felony and upon conviction a person shall be sentenced pursuant | 0019| to the provisions of Section 31-18-15 NMSA 1978. | 0020| Section 38. [NEW MATERIAL] PENALTY FOR POSSESSION OF | 0021| DEVICE, EQUIPMENT OR MATERIAL MANUFACTURED, SOLD OR DISTRIBUTED | 0022| IN VIOLATION OF LAW.-- | 0023| A. A person commits an offense who knowingly | 0024| possesses any gaming device that has been manufactured, sold or | 0025| distributed in violation of the Gaming Control Act. | 0001| B. An offense under this section is a fourth degree | 0002| felony and upon conviction a person shall be sentenced pursuant | 0003| to the provisions of Section 31-18-15 NMSA 1978. | 0004| Section 39. [NEW MATERIAL] UNLAWFUL MANUFACTURE, SALE, | 0005| DISTRIBUTION, MARKING, ALTERING OR MODIFICATION OF EQUIPMENT AND | 0006| DEVICES ASSOCIATED WITH GAMING--UNLAWFUL INSTRUCTION.-- | 0007| A. A person commits an offense who manufactures, | 0008| sells or distributes any cards, chips, dice, game or device that | 0009| is intended by him to be used to violate any provision of the | 0010| Gaming Control Act. | 0011| B. A person commits an offense who marks, alters or | 0012| otherwise modifies any associated equipment or gaming device in | 0013| a manner that: | 0014| (1) affects the result of a wager by | 0015| determining win or loss; or | 0016| (2) alters the normal criteria of random | 0017| selection, which affects the operation of a game or which | 0018| determines the outcome of a game. | 0019| C. A person commits an offense who instructs another | 0020| in cheating or in the use of any device for that purpose with | 0021| the knowledge or intent that the information or use so conveyed | 0022| may be employed to violate any provision of the Gaming Control | 0023| Act. | 0024| D. An offense under this section is a fourth degree | 0025| felony, and upon conviction a person shall be sentenced pursuant | 0001| to the provisions of Section 31-18-15 NMSA 1978. | 0002| Section 40. [NEW MATERIAL] REPORTING AND RECORD | 0003| VIOLATIONS--PENALTY.-- | 0004| A. A person commits an offense if the person, in a | 0005| license application, in a book or record required to be | 0006| maintained by the Gaming Control Act or by a regulation adopted | 0007| under that act, or in a report required to be submitted by that | 0008| act: | 0009| (1) knowingly makes a statement or entry that | 0010| the person knows to be false or misleading; or | 0011| (2) fails to maintain or make an entry the | 0012| person knows is required to be maintained or made. | 0013| B. A person commits an offense if the person | 0014| knowingly refuses to produce for inspection by the authority a | 0015| book, record or document required to be maintained or made by | 0016| the Gaming Control Act or a regulation adopted under that act. | 0017| C. An offense under this section is a fourth degree | 0018| felony, and upon conviction a person shall be sentenced pursuant | 0019| to the provisions of Section 31-18-15 NMSA 1978. | 0020| Section 41. [NEW MATERIAL] GAMING BY INDIVIDUAL UNDER | 0021| TWENTY-ONE YEARS OF AGE.-- | 0022| A. A person commits an offense if the person | 0023| knowingly permits an individual who the person knows is younger | 0024| than twenty-one years of age to participate in gaming. | 0025| B. An individual commits an offense if the | 0001| individual participates in gaming and the individual is younger | 0002| than twenty-one years of age at the time of participation. | 0003| C. An offense under this section is a misdemeanor, | 0004| and upon conviction a person shall be sentenced pursuant to the | 0005| provisions of Section 31-19-1 NMSA 1978. | 0006| Section 42. [NEW MATERIAL] GENERAL PENALTIES FOR | 0007| VIOLATION OF ACT.-- | 0008| A. A person commits an offense who willfully | 0009| violates, attempts to violate or conspires to violate any of the | 0010| provisions of the Gaming Control Act specifying prohibited acts. | 0011| B. Any offense under the Gaming Control Act, the | 0012| classification of which is not specifically stated in that act, | 0013| is a misdemeanor, and upon conviction a person shall be | 0014| sentenced pursuant to the provisions of Section 31-19-1 NMSA | 0015| 1978. | 0016| Section 43. [NEW MATERIAL] DETENTION AND QUESTIONING OF | 0017| PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON LIABILITY--POSTING OF NOTICE.-- | 0018| A. Any gaming establishment licensee or its | 0019| officers, employees or agents may question any person in its | 0020| establishment suspected of violating any of the provisions of | 0021| the Gaming Control Act. No gaming establishment licensee or any | 0022| of its officers, employees or agents is criminally or civilly | 0023| liable: | 0024| (1) on account of any such questioning; or | 0025| (2) for reporting to the authority or law | 0001| enforcement authorities the person suspected of the violation. | 0002| B. Any gaming establishment licensee or any of its | 0003| officers, employees or agents who has reasonable cause for | 0004| believing that there has been a violation of the Gaming Control | 0005| Act in its establishment by any person may take that person into | 0006| custody and detain him in the establishment in a reasonable | 0007| manner and for a reasonable length of time. Such a taking into | 0008| custody and detention does not render the licensee or his | 0009| officers, employees or agents criminally or civilly liable | 0010| unless it is established by clear and convincing evidence that | 0011| the taking into custody and detention are unreasonable under all | 0012| the circumstances. | 0013| C. No gaming establishment licensee or its officers, | 0014| employees or agents is entitled to the immunity from liability | 0015| provided for in Subsection B of this section unless there is | 0016| displayed in a conspicuous place in the establishment a notice | 0017| in boldface type clearly legible and in substantially this form: | 0018| "Any gaming establishment licensee or any of his officers, | 0019| employees or agents who has reasonable cause for believing | 0020| that any person has violated any provision of the Gaming | 0021| Control Act prohibiting cheating in gaming may detain that | 0022| person in the establishment.". | 0023| Section 44. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0024| AUTHORITY ACTION.-- | 0025| A. Any person aggrieved by an action taken by the | 0001| authority may request and receive a hearing for the purpose of | 0002| reviewing the action. To obtain a hearing, the aggrieved person | 0003| shall file a request for hearing with the authority within | 0004| thirty days after the date the action is taken. Failure to file | 0005| the request within the specified time is an irrevocable waiver | 0006| of the right to a hearing, and the action complained of shall be | 0007| final with no further right to review, either administratively | 0008| or by a court. | 0009| B. The authority shall adopt procedural regulations | 0010| to govern the procedures to be followed in administrative | 0011| hearings pursuant to the provisions of this section. As a | 0012| minimum, the regulations shall provide: | 0013| (1) for the hearings to be public; | 0014| (2) for the appointment of a hearing officer to | 0015| conduct the hearing and make his recommendation to the board not | 0016| more than ten days after the completion of the hearing; | 0017| (3) procedures for discovery; | 0018| (4) assurance that procedural due process | 0019| requirements are satisfied; | 0020| (5) for the maintenance of a record of the | 0021| hearing proceedings and assessment of costs of any transcription | 0022| of testimony that is required for judicial review purposes; and | 0023| (6) for the place of the hearing to be in Santa | 0024| Fe for hearings on actions of statewide application and for | 0025| enforcement hearings on actions of statewide application and for | 0001| enforcement hearings and for hearings on actions of limited | 0002| local concern to be held in the place or area affected. | 0003| C. Actions taken by the authority after a hearing | 0004| pursuant to the provisions of this section shall be: | 0005| (1) written and shall state the reasons for the | 0006| action; | 0007| (2) made public when taken; | 0008| (3) communicated to all persons that have made | 0009| a written request for notification of the action taken; and | 0010| (4) taken within not more than thirty days | 0011| after the submission of the hearing officer's report to the | 0012| authority. | 0013| Section 45. [NEW MATERIAL] JUDICIAL REVIEW OF | 0014| ADMINISTRATIVE ACTIONS.-- | 0015| A. Any person adversely affected by an action taken | 0016| by the board after review pursuant to the provisions of Section | 0017| 44 of the Gaming Control Act may appeal the action to the court | 0018| of appeals. The appeal shall be on the record made at the | 0019| hearing. To support his appeal, the appellant shall make | 0020| arrangements with the board for a sufficient number of | 0021| transcripts of the record of the hearing on which the appeal is | 0022| based. The appellant shall pay for the preparation of the | 0023| transcripts. | 0024| B. On appeal, the court of appeals shall set aside | 0025| the administrative action only if it is found to be: | 0001| (1) arbitrary, capricious or an abuse of | 0002| discretion; | 0003| (2) not supported by substantial evidence in | 0004| the whole record; or | 0005| (3) otherwise not in accordance with law. | 0006| Section 46. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0007| Chapter 248, Section 2, as amended) is amended to read: | 0008| "7-1-2. APPLICABILITY.--The Tax Administration Act applies | 0009| to and governs: | 0010| A. The administration and enforcement of the | 0011| following taxes or tax acts as they now exist or may hereafter | 0012| be amended: | 0013| (1) Income Tax Act; | 0014| (2) Withholding Tax Act; | 0015| (3) Gross Receipts and Compensating Tax Act and | 0016| any state gross receipts tax; | 0017| (4) Liquor Excise Tax Act; | 0018| (5) Local Liquor Excise Tax Act; | 0019| [(6) Banking and Financial Corporations Tax | 0020| Act; | 0021| (7)] (6) any municipal local option gross | 0022| receipts tax; | 0023| [(8)] (7) any county local option gross | 0024| receipts tax; | 0025| [(9)] (8) Special Fuels Supplier Tax Act; | 0001| [(10)] (9) Gasoline Tax Act; | 0002| [(11)] (10) petroleum products loading fee, | 0003| which fee shall be considered a tax for the purpose of the Tax | 0004| Administration Act; | 0005| [(12)] (11) Cigarette Tax Act; | 0006| [(13)] (12) Estate Tax Act; | 0007| [(14)] (13) Railroad Car Company Tax Act; | 0008| [(15)] (14) Investment Credit Act; | 0009| [(16)] (15) Corporate Income Tax Act; | 0010| [(17)] (16) Corporate Income and Franchise | 0011| Tax Act; | 0012| [(18)] (17) Uniform Division of Income for | 0013| Tax Purposes Act; | 0014| [(19)] (18) Multistate Tax Compact; | 0015| [(20)] (19) Tobacco Products Tax Act; | 0016| [(21)] (20) Filmmaker's Credit Act; and | 0017| [(22)] (21) the telecommunications relay | 0018| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0019| surcharge shall be considered a tax for the purposes of the Tax | 0020| Administration Act; | 0021| B. the administration and enforcement of the | 0022| following taxes, surtaxes, advanced payments or tax acts as they | 0023| now exist or may hereafter be amended: | 0024| (1) Resources Excise Tax Act; | 0025| (2) Severance Tax Act; | 0001| (3) any severance surtax; | 0002| (4) Oil and Gas Severance Tax Act; | 0003| (5) Oil and Gas Conservation Tax Act; | 0004| (6) Oil and Gas Emergency School Tax Act; | 0005| (7) Oil and Gas Ad Valorem Production Tax Act; | 0006| (8) Natural Gas Processors Tax Act; | 0007| (9) Oil and Gas Production Equipment Ad Valorem | 0008| Tax Act; | 0009| (10) Copper Production Ad Valorem Tax Act; and | 0010| (11) any advance payment required to be made by | 0011| any act specified in this subsection, which advance payment | 0012| shall be considered a tax for the purposes of the Tax | 0013| Administration Act; | 0014| C. the administration and enforcement of the | 0015| following taxes, surcharges, fees or acts as they now exist or | 0016| may hereafter be amended: | 0017| (1) Weight Distance Tax Act; | 0018| (2) Special Fuels Tax Act; | 0019| (3) the workers' compensation fee authorized by | 0020| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0021| for purposes of the Tax Administration Act; | 0022| (4) Controlled Substance Tax Act; | 0023| (5) Uniform Unclaimed Property Act; | 0024| (6) 911 emergency surcharge and the network and | 0025| database surcharge, which surcharges shall be considered taxes | 0001| for purposes of the Tax Administration Act; | 0002| (7) the solid waste assessment fee authorized | 0003| by the Solid Waste Act, which fee shall be considered a tax for | 0004| purposes of the Tax Administration Act; [and] | 0005| (8) the water conservation fee imposed by | 0006| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0007| for the purposes of the Tax Administration Act; and | 0008| (9) the gaming tax imposed pursuant to the | 0009| Gaming Control Act. | 0010| D. the administration and enforcement of all other | 0011| laws, with respect to which the department is charged with | 0012| responsibilities pursuant to the Tax Administration Act, but | 0013| only to the extent that such other laws do not conflict with the | 0014| Tax Administration Act." | 0015| Section 47. A new section of the Tax Administration Act is | 0016| enacted to read: | 0017| "[NEW MATERIAL] DISTRIBUTION OF GAMING TAX.--A | 0018| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made | 0019| to the gaming fund of the net receipts attributable to the | 0020| gaming tax." | 0021| Section 48. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0022| Chapter 91, Section 1, as amended) is amended to read: | 0023| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0024| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED | 0025| MEETINGS.-- | 0001| A. In recognition of the fact that a representative | 0002| government is dependent upon an informed electorate, it is | 0003| declared to be public policy of this state that all persons are | 0004| entitled to the greatest possible information regarding the | 0005| affairs of government and the official acts of those officers | 0006| and employees who represent them. The formation of public | 0007| policy or the conduct of business by vote shall not be conducted | 0008| in closed meeting. All meetings of any public body except the | 0009| legislature and the courts shall be public meetings, and all | 0010| persons so desiring shall be permitted to attend and listen to | 0011| the deliberations and proceedings. Reasonable efforts shall be | 0012| made to accommodate the use of audio and video recording | 0013| devices. | 0014| B. All meetings of a quorum of members of any board, | 0015| commission, administrative adjudicatory body or other | 0016| policymaking body of any state agency, any agency or authority | 0017| of any county, municipality, district or any political | 0018| subdivision, held for the purpose of formulating public policy, | 0019| including the development of personnel policy, rules, | 0020| regulations or ordinances, discussing public business or for the | 0021| purpose of taking any action within the authority of or the | 0022| delegated authority of any board, commission or other | 0023| policymaking body are declared to be public meetings open to the | 0024| public at all times, except as otherwise provided in the | 0025| constitution of New Mexico or the Open Meetings Act. No public | 0001| meeting once convened that is otherwise required to be open | 0002| pursuant to the Open Meetings Act shall be closed or dissolved | 0003| into small groups or committees for the purpose of permitting | 0004| the closing of the meeting. | 0005| C. If otherwise allowed by law or rule of the public | 0006| body, a member of a public body may participate in a meeting of | 0007| the public body by means of a conference telephone or other | 0008| similar communications equipment when it is otherwise difficult | 0009| or impossible for the member to attend the meeting in person, | 0010| provided that each member participating by conference telephone | 0011| can be identified when speaking, all participants are able to | 0012| hear each other at the same time and members of the public | 0013| attending the meeting are able to hear any member of the public | 0014| body who speaks during the meeting. | 0015| D. Any meetings at which the discussion or adoption | 0016| of any proposed resolution, rule, regulation or formal action | 0017| occurs and at which a majority or quorum of the body is in | 0018| attendance, and any closed meetings, shall be held only after | 0019| reasonable notice to the public. The affected body shall | 0020| determine at least annually in a public meeting what notice for | 0021| a public meeting is reasonable when applied to that body. That | 0022| notice shall include broadcast stations licensed by the federal | 0023| communications commission and newspapers of general circulation | 0024| that have provided a written request for such notice. | 0025| E. A public body may recess and reconvene a meeting | 0001| to a day subsequent to that stated in the meeting notice if, | 0002| prior to recessing, the public body specifies the date, time and | 0003| place for continuation of the meeting, and, immediately | 0004| following the recessed meeting, posts notice of the date, time | 0005| and place for the reconvened meeting on or near the door of the | 0006| place where the original meeting was held and in at least one | 0007| other location appropriate to provide public notice of the | 0008| continuation of the meeting. Only matters appearing on the | 0009| agenda of the original meeting may be discussed at the | 0010| reconvened meeting. | 0011| F. Meeting notices shall include an agenda | 0012| containing a list of specific items of business to be discussed | 0013| or transacted at the meeting or information on how the public | 0014| may obtain a copy of such an agenda. Except in the case of an | 0015| emergency, the agenda shall be available to the public at least | 0016| twenty-four hours prior to the meeting. | 0017| Except for emergency matters, a public body shall take action | 0018| only on items appearing on the agenda. For purposes of this | 0019| subsection, an "emergency" refers to unforeseen circumstances | 0020| that, if not addressed immediately by the public body, will | 0021| likely result in injury or damage to persons or property or | 0022| substantial financial loss to the public body. | 0023| G. The board, commission or other policymaking body | 0024| shall keep written minutes of all its meetings. The minutes | 0025| shall include at a minimum the date, time and place of the | 0001| meeting, the names of members in attendance and those absent, | 0002| the substance of the proposals considered and a record of any | 0003| decisions and votes taken that show how each member voted. All | 0004| minutes are open to public inspection. Draft minutes shall be | 0005| prepared within ten working days after the meeting and shall be | 0006| approved, amended or disapproved at the next meeting where a | 0007| quorum is present. Minutes shall not become official until | 0008| approved by the policymaking body. | 0009| H. The provisions of Subsections A, B and G of this | 0010| section do not apply to: | 0011| (1) meetings pertaining to issuance, | 0012| suspension, renewal or revocation of a license, except that a | 0013| hearing at which evidence is offered or rebutted shall be open. | 0014| All final actions on the issuance, suspension, renewal or | 0015| revocation of a license shall be taken at an open meeting; | 0016| (2) limited personnel matters; provided that | 0017| for purposes of the Open Meetings Act, "limited personnel | 0018| matters" means the discussion of hiring, promotion, demotion, | 0019| dismissal, assignment or resignation of or the investigation or | 0020| consideration of complaints or charges against any individual | 0021| public employee; provided further that this subsection is not to | 0022| be construed as to exempt final actions on personnel from being | 0023| taken at open public meetings, nor does it preclude an aggrieved | 0024| public employee from demanding a public hearing. Judicial | 0025| candidates interviewed by any commission shall have the right to | 0001| demand an open interview; | 0002| (3) deliberations by a public body in | 0003| connection with an administrative adjudicatory proceeding. For | 0004| purposes of this paragraph, an "administrative adjudicatory | 0005| proceeding" means a proceeding brought by or against a person | 0006| before a public body in which individual legal rights, duties or | 0007| privileges are required by law to be determined by the public | 0008| body after an opportunity for a trial-type hearing. Except as | 0009| otherwise provided in this section, the actual administrative | 0010| adjudicatory proceeding at which evidence is offered or rebutted | 0011| and any final action taken as a result of the proceeding shall | 0012| occur in an open meeting; | 0013| (4) the discussion of personally identifiable | 0014| information about any individual student, unless the student, | 0015| his parent or guardian requests otherwise; | 0016| (5) meetings for the discussion of bargaining | 0017| strategy preliminary to collective bargaining negotiations | 0018| between the policymaking body and a bargaining unit representing | 0019| the employees of that policymaking body and collective | 0020| bargaining sessions at which the policymaking body and the | 0021| representatives of the collective bargaining unit are present; | 0022| (6) that portion of meetings at which a | 0023| decision concerning purchases in an amount exceeding two | 0024| thousand five hundred dollars ($2,500) that can be made only | 0025| from one source and that portion of meetings at which the | 0001| contents of competitive sealed proposals solicited pursuant to | 0002| the Procurement Code are discussed during the contract | 0003| negotiation process. The actual approval of purchase of the | 0004| item or final action regarding the selection of a contractor | 0005| shall be made in an open meeting; | 0006| (7) meetings subject to the attorney-client | 0007| privilege pertaining to threatened or pending litigation in | 0008| which the public body is or may become a participant; | 0009| (8) meetings for the discussion of the | 0010| purchase, acquisition or disposal of real property or water | 0011| rights by the public body; [and] | 0012| (9) those portions of meetings of committees or | 0013| boards of public hospitals that receive less than fifty percent | 0014| of their operating budget from direct public funds and | 0015| appropriations where strategic and long-range business plans are | 0016| discussed; and | 0017| (10) those portions of meetings of the gaming | 0018| authority held pursuant to the Gaming Control Act at which | 0019| security and investigative information is presented to the | 0020| board. | 0021| I. If any meeting is closed pursuant to the | 0022| exclusions contained in Subsection H of this section, the | 0023| closure: | 0024| (1) if made in an open meeting, shall be | 0025| approved by a majority vote of a quorum of the policymaking | 0001| body; the authority for the closure and the subject to be | 0002| discussed shall be stated with reasonable specificity in the | 0003| motion calling for the vote on a closed meeting; the vote shall | 0004| be taken in an open meeting; and the vote of each individual | 0005| member shall be recorded in the minutes. Only those subjects | 0006| announced or voted upon prior to closure by the policymaking | 0007| body may be discussed in a closed meeting; and | 0008| (2) if called for when the policymaking body is | 0009| not in an open meeting, shall not be held until public notice, | 0010| appropriate under the circumstances, stating the specific | 0011| provision of the law authorizing the closed meeting and stating | 0012| with reasonable specificity the subject to be discussed is given | 0013| to the members and to the general public. | 0014| J. Following completion of any closed meeting, the | 0015| minutes of the open meeting that was closed or the minutes of | 0016| the next open meeting if the closed meeting was separately | 0017| scheduled shall state that the matters discussed in the closed | 0018| meeting were limited only to those specified in the motion for | 0019| closure or in the notice of the separate closed meeting. This | 0020| statement shall be approved by the public body under Subsection | 0021| G of this section as part of the minutes." | 0022| Section 49. 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--EXEMPTIONS.-- | 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 theater 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. Gaming activities and activities associated with | 0021| gaming permitted pursuant to the Gaming Control Act are neither | 0022| prohibited nor subject to prosecution pursuant to any provision | 0023| of Chapter 30, Article 19 NMSA 1978." | 0024| Section 50. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0025| Chapter 39, Section 96) is amended to read: | 0001| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0002| A. It is a violation of the Liquor Control Act for a | 0003| licensee to knowingly allow commercial gambling on the licensed | 0004| premises. | 0005| B. In addition to any criminal penalties, any person | 0006| who violates Subsection A of this section may have his license | 0007| suspended or revoked or a fine imposed, or both, pursuant to the | 0008| Liquor Control Act. | 0009| C. [For purposes of] As used in this section: (1) "commercial gambling" means: | 0010| [(1)] (a) participating in the | 0011| earnings of or operating a gambling place; | 0012| [(2)] (b) receiving, recording or | 0013| forwarding bets or offers to bet; | 0014| [(3)] (c) possessing facilities with | 0015| the intent to receive, record or forward bets or offers to bet; | 0016| [(4)] (d) for gain, becoming a | 0017| custodian of anything of value bet or offered to be bet; | 0018| [(5)] (e) conducting a lottery where | 0019| both the consideration and the prize are money or whoever with | 0020| intent to conduct a lottery possesses facilities to do so; or | 0021| [(6)] (f) setting up for use for the | 0022| purpose of gambling, or collecting the proceeds of, any gambling | 0023| device or game; and | 0024| (2) "commercial gambling" does not include | 0025| activities authorized pursuant to the New Mexico Lottery Act or | 0001| the Gaming Control Act." | 0002| Section 51. SEVERABILITY.--If any part or application of | 0003| this act is held invalid, the remainder or its application to | 0004| other situations or persons shall not be affected. | 0005| Section 52. EFFECTIVE DATE.--The effective date of the | 0006| provisions of this act is July 1, 1996. | 0007|  | 0008| | 0009| FORTY-SECOND LEGISLATURE | 0010| SECOND SESSION, 1996 | 0011| | 0012| | 0013| FEBRUARY 1, 1996 | 0014| | 0015| Mr. President: | 0016| | 0017| Your COMMITTEES' COMMITTEE, to whom has been referred | 0018| | 0019| SENATE BILL 701 | 0020| | 0021| has had it under consideration and finds same to be GERMANE, PURSUANT | 0022| TO CONSTITUTIONAL PROVISIONS , and thence referred to the COMMITTEE | 0023| OF THE WHOLE COMMITTEE. | 0024| | 0025| Respectfully submitted, | 0001| | 0002| | 0003| | 0004| | 0005| __________________________________ | 0006| SENATOR MANNY M. ARAGON, Chairman | 0007| | 0008| | 0009| | 0010| Adopted_______________________ Not Adopted_______________________ | 0011| (Chief Clerk) (Chief Clerk) | 0012| | 0013| | 0014| Date ________________________ | 0015| | 0016| | 0017| | 0018| S0701CC1 | 0019| | 0020| FORTY-SECOND LEGISLATURE | 0021| SECOND SESSION, 1996 | 0022| | 0023| | 0024| February 2, 1996 | 0025| | 0001| Mr. President: | 0002| | 0003| Your COMMITTEE OF THE WHOLE, to whom has been referred | 0004| | 0005| SENATE BILL 701 | 0006| | 0007| has had it under consideration and reports same with recommendation that | 0008| it DO NOT PASS, and that | 0009| | 0010| SENATE COMMITTEE OF THE WHOLE SUBSTITUTE FOR | 0011| SENATE BILL 701 | 0012| | 0013| be reported WITHOUT RECOMMENDATI0N. | 0014| | 0015| Respectfully submitted, | 0016| | 0017| | 0018| | 0019| __________________________________ | 0020| Manny M. Aragon, Chairman | 0021| | 0022| | 0023| Adopted_______________________ Not Adopted_______________________ | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| | 0002| Date ________________________ | 0003| | 0004| | 0005| The roll call vote was by voice vote | 0006| | 0007| | 0008| S0701WS1 | 0009| SENATE COMMITTEE OF THE WHOLE SUBSTITUTE FOR | 0010| SENATE BILL 701 | 0011| 42nd legislature - STATE OF NEW MEXICO - second session, 1996 | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| AN ACT | 0020| RELATING TO GAMING; ENACTING THE VIDEO GAMING ACT; PROVIDING FOR | 0021| VIDEO MACHINE GAMING AT RACETRACKS, LICENSED RESORTS, LICENSED | 0022| LIQUOR ESTABLISHMENTS AND LICENSED CLUBS; CREATING A FUND AND | 0023| PROVIDING FOR DISTRIBUTION OF REVENUE; PROVIDING FOR A DEDUCTION | 0024| FROM GROSS RECEIPTS OF RECEIPTS FROM THE OPERATION OF VIDEO | 0025| GAMING MACHINES; PROVIDING FOR LOCAL OPTION REFERENDA ON CERTAIN | 0001| VIDEO GAMING; PROVIDING PENALTIES; AMENDING AND ENACTING | 0002| SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS; DECLARING AN | 0003| EMERGENCY. | 0004| | 0005| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0006| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0007| through 46 of this act may be cited as the "Video Gaming Act". | 0008| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the | 0009| Video Gaming Act is to: | 0010| A. establish video gaming to provide revenue that will | 0011| benefit the state and its citizens; | 0012| B. regulate the use, operation, distribution and | 0013| manufacture of video gaming machines in the state; and | 0014| C. take all actions necessary to ensure the integrity, | 0015| reliability and security of all games of chance not otherwise | 0016| subject to regulation by another agency or authority created by | 0017| state or federal law. | 0018| Section 3. [NEW MATERIAL] PUBLIC POLICY OF STATE | 0019| CONCERNING GAMING.--The legislature finds and declares it to be | 0020| the public policy of this state that: | 0021| A. regulation of video gaming is critical to ensure | 0022| that it is conducted honestly and uniformly throughout New | 0023| Mexico and to maintain the integrity of video gaming in the | 0024| state; and | 0025| B. the public's confidence and trust in the conduct of | 0001| permitted video gaming activities can be obtained and maintained | 0002| only through strict regulation of all persons, locations, | 0003| practices, associations and activities related directly or | 0004| indirectly to nontribal video gaming conducted in the state. | 0005| Section 4. [NEW MATERIAL] DEFINITIONS.--As used in the | 0006| Video Gaming Act: | 0007| A. "associated equipment" means any proprietary | 0008| device, machine or part used in the manufacture or maintenance | 0009| of a video gaming machine, including but not limited to | 0010| integrated circuit chips, printed wired assembly, printed wire | 0011| boards, printing mechanisms, video display monitors and metering | 0012| devices; | 0013| B. "charitable organization" means an organization | 0014| described in Section 501(c)(3) of the federal Internal Revenue Code | 0015| of 1986, that is exempt from federal income taxation pursuant to | 0016| Section 501(a) of that code and that has been issued a license | 0017| pursuant to the Bingo and Raffle Act; | 0018| C. "committee" means the legislative lottery and gaming | 0019| oversight committee that oversees the operation of video gaming in | 0020| the state and is created in the Video Gaming Act; | 0021| D. "director" means the director of the division; | 0022| E. "distributor" means any person who distributes or | 0023| sells video gaming machines or associated equipment in New Mexico; | 0024| F. "division" means the alcohol and gaming division of | 0025| the regulation and licensing department; | 0001| G. "electronic pull tab machine" means any pull tab | 0002| machine that is electronically operated and uses any number, letter | 0003| or symbol, or combination of numbers, letters or symbols, to play a | 0004| pull tab game and does not dispense cash payments; | 0005| H. "gaming administration personnel" means those | 0006| employees of the division who administer the provisions of the | 0007| Video Gaming Act and the regulations adopted pursuant to that act. | 0008| "Gaming administration personnel" does not include security | 0009| division personnel; | 0010| I. "licensed charitable organization" means a charitable | 0011| organization that has been issued a license as a video gaming | 0012| licensee pursuant to the Vide Gaming Act as a video gaming licensee | 0013| to permit the conduct of video gaming on the premises of the | 0014| charitable organization; | 0015| J. "licensed club" means a nonprofit organization that | 0016| has been licensed pursuant to the Video Gaming Act as a video | 0017| gaming licensee to permit the conduct of video gaming on the | 0018| premises of that nonprofit organization; | 0019| K. "licensed liquor establishment" means a liquor | 0020| establishment that has been issued a license pursuant to the Video | 0021| Gaming Act as a video gaming licensee to permit the conduct of | 0022| video gaming on the premises of the liquor establishment; | 0023| L. "licensed resort" means a resort that has been issued | 0024| a license pursuant to the Video Gaming Act as a video gaming | 0025| licensee to permit the conduct of video gaming on the premises of | 0001| the resort; | 0002| M. "licensee" means any person who is granted a license | 0003| pursuant to the Video Gaming Act; | 0004| N. "liquor establishment" means a person who has been | 0005| issued a license pursuant to Section 60-6A-3 or 60-6A-4 NMSA 1978 | 0006| whose licensed premises has a permanent seating capacity for more | 0007| than thirty patrons and whose premises has a permanent physical | 0008| barrier creating an age-restricted area if persons under the age of | 0009| twenty-one are permitted on the licensed premises; | 0010| O. "lottery" means the New Mexico state lottery; | 0011| P. "major procurement" means any procurement or contract | 0012| for the purchase or lease of facilities, equipment, goods or | 0013| services used primarily for the regulation and control of video | 0014| gaming, the value of which is in excess of twenty thousand dollars | 0015| ($20,000), including computer equipment, accounting, consulting or | 0016| other procurements deemed necessary by the superintendent; | 0017| Q. "manufacturer" means any person who assembles or | 0018| produces video gaming machines or associated equipment to be sold | 0019| or used in New Mexico; | 0020| R. "net take" means the total of all receipts paid by | 0021| patrons to play video gaming machines less the total of all cash, | 0022| annuities or other things of value paid out in prizes; | 0023| S. "nonprofit organization" means any organization, | 0024| described in Section 501(c)(8), (10), (19) or (23) of the federal | 0025| Internal Revenue Code of 1986, exempt from federal income taxation | 0001| pursuant to Section 501(a) of that code and that has been issued a | 0002| license pursuant to Section 60-6A-5 NMSA 1978; | 0003| T. "operator" means any person who enters into a contract | 0004| or other arrangement with a video gaming licensee for a percentage | 0005| of the receipts from a video gaming machine or who otherwise | 0006| leases, services or places a video gaming machine or associated | 0007| equipment on the premises of a video gaming licensee; | 0008| U. "person" means an individual or any legal entity, | 0009| including a partnership, joint venture, limited partnership, | 0010| limited liability company or corporation; | 0011| V. "racetrack" means a horse racetrack in New Mexico | 0012| licensed pursuant to the Horse Racing Act; | 0013| W. "regulation" means a rule, regulation, order, standard | 0014| or statement of policy issued or adopted by the superintendent | 0015| regarding the regulation or operation of video gaming in the state; | 0016| X. "resort" means a house or complex of buildings that | 0017| has available for public lodging at least one hundred fifty guest | 0018| rooms and that has on the same premises a restaurant that has | 0019| seating for and can serve meals to at least two hundred patrons at | 0020| one time; | 0021| Y. "security director" means the director of the security | 0022| division; | 0023| Z. "security division" means the gaming security division | 0024| of the regulation and licensing department; | 0025| AA. "superintendent" means the superintendent of | 0001| regulation and licensing; | 0002| BB. "vendor" means any person who provides a major | 0003| procurement under contract with the division or security division; | 0004| CC. "video amusement machine" means an electronic or | 0005| electromechanical device, contrivance or machine that may be | 0006| available for play upon the payment of consideration and when | 0007| played may, by reason of the skill of the player accompanied by | 0008| some chance, entitle the player to receive additional play on the | 0009| same or a similar video amusement machine or a voucher or credit | 0010| slip that may be exchanged for merchandise of insignificant value; | 0011| DD. "video game" means a game of chance played on a video | 0012| gaming machine; | 0013| EE. "video gaming licensee" means a racetrack, a | 0014| nonprofit organization, a charitable organization, a resort or a | 0015| liquor establishment that has obtained a license pursuant to the | 0016| Video Gaming Act to have video gaming machines in operation on the | 0017| licensee's premises; | 0018| FF. "video gaming machine" means any electronic or | 0019| electromechanical device, contrivance or machine that is available | 0020| for play upon the payment of consideration and when played may | 0021| entitle the player to receive or may deliver to the player | 0022| something of value, including cash, coins, premiums, merchandise, | 0023| credits, tokens or a voucher, whether by reason of the skill of the | 0024| player or application of the element of chance, or both; "video | 0025| gaming machine" includes electronic pull tab machines but does not | 0001| include video amusement machines; and | 0002| GG. "voucher" means a receipt, credit slip or other | 0003| tangible evidence printed out by a video gaming machine that | 0004| entitles the holder to receive something of value for having played | 0005| the machine and won its game. | 0006| Section 5. [NEW MATERIAL] LOTTERY AND GAMING OVERSIGHT | 0007| COMMITTEE--DUTIES--COMPENSATION.-- | 0008| A. There is created a joint interim legislative oversight | 0009| committee, which shall be known as the "lottery and gaming | 0010| oversight committee". The committee shall function from the date | 0011| of its appointment until the first day of December prior to the | 0012| second session of the forty-fifth legislature. | 0013| B. The committee shall be composed of ten members. Five | 0014| members of the house of representatives shall be appointed by the | 0015| speaker of the house of representatives, and five members of the | 0016| senate shall be appointed by the committees' committee of the | 0017| senate or, if the senate appointments are made in the interim, by | 0018| the president pro tempore of the senate after consultation with and | 0019| agreement of a majority of the members of the committees' | 0020| committee. Members shall be appointed so that there is a member | 0021| from each of the major political parties from each house. No | 0022| person who has or later acquires an ownership interest in any | 0023| vendor or licensee shall serve on the committee. | 0024| C. The committee shall oversee the start-up, operations | 0025| and regulation of video gaming, as well as periodically review and | 0001| evaluate the success with which the superintendent is accomplishing | 0002| his duties and regulating video gaming activity pursuant to the | 0003| Video Gaming Act. The committee may conduct any independent audit | 0004| or investigation of the gaming functions of the regulation and | 0005| licensing department it deems necessary. | 0006| D. Members of the committee may receive per diem and | 0007| mileage in accordance with the provisions of the Per Diem and | 0008| Mileage Act when the legislature is not in session and shall | 0009| receive no other compensation, perquisite or allowance. | 0010| E. The committee shall report its findings and | 0011| recommendations on video gaming to each regular session of the | 0012| legislature. | 0013| F. The committee shall perform duties as required by the | 0014| New Mexico Lottery Act in addition to the duties specified in this | 0015| section. | 0016| Section 6. [NEW MATERIAL] SUPERINTENDENT--DUTIES.-- | 0017| A. The superintendent shall adopt all regulations | 0018| necessary to administer the Video Gaming Act and to assure the | 0019| honest and secure operation of video gaming in the state. | 0020| B. The superintendent shall clearly delegate areas of | 0021| authority to the director and to the security director to prevent | 0022| duplication of staff effort, but shall retain the ultimate | 0023| decision-making authority in all areas of operation or | 0024| administration of the Video Gaming Act. | 0025| C. The superintendent shall oversee and review all | 0001| actions taken by the director or the security director. The | 0002| director and the security director shall report directly to the | 0003| superintendent. | 0004| Section 7. [NEW MATERIAL] SUPERINTENDENT--DIRECTOR--SECURITY DIRECTOR--APPOINTMENT--BACKGROUND INVESTIGATION.-- | 0005| A. The governor shall appoint the superintendent, the | 0006| director and the security director, who shall all serve at the | 0007| pleasure of the governor. | 0008| B. The superintendent and director shall have extensive | 0009| employment experience in supervisory, administrative and management | 0010| positions. A person appointed as superintendent or director prior | 0011| to the date on which the Video Gaming Act becomes effective shall | 0012| submit to a background investigation to be conducted by the | 0013| department of public safety, the costs of which shall be reimbursed | 0014| by the regulation and licensing department. | 0015| C. The security director shall have five years of work | 0016| experience in supervisory, administrative or management positions | 0017| in law enforcement or security and shall have completed training at | 0018| a law enforcement academy or an equivalent law enforcement program. | 0019| D. A background investigation shall be conducted on each | 0020| applicant for the positions of superintendent, director or security | 0021| director who has reached the final selection process. The | 0022| department of public safety shall perform the investigations and | 0023| shall be reimbursed from funds of the regulation and licensing | 0024| department. Background investigations shall include but are not | 0025| limited to credit checks, police record checks, conviction record | 0001| checks, national and statewide criminal records clearinghouse | 0002| checks and fingerprint checks. All information obtained through a | 0003| background investigation shall be confidential, except that the | 0004| superintendent may exchange such confidential information with | 0005| state, federal and local law enforcement agencies. | 0006| E. Any individual convicted of a felony or any crime | 0007| involving gambling, moral turpitude, fraud or theft shall not be | 0008| eligible for the position of superintendent, director or security | 0009| director. The superintendent, director or security director shall | 0010| report his arrest for or conviction of a felony or any crime | 0011| involving gambling, moral turpitude, fraud or theft to the governor | 0012| within three days of the arrest or conviction. | 0013| Section 8. [NEW MATERIAL] DIRECTOR--POWERS--DUTIES.-- | 0014| A. The director has authority and shall exercise strict | 0015| control and close supervision over video gaming conducted in this | 0016| state to promote and ensure integrity, security, honesty and | 0017| fairness in the operation, administration and regulation of video | 0018| gaming. | 0019| B. The director has authority to contract for, purchase | 0020| or lease equipment, goods or services, including consultants, | 0021| marketing representatives, financial services, technical services | 0022| and advertisers necessary for effectuating the purposes of the | 0023| Video Gaming Act. | 0024| C. The director shall regulate the operation of video | 0025| games. The director may approve new technologies in video games | 0001| and video gaming as it becomes available. The director shall | 0002| approve new video games for play in the state. The director shall | 0003| exclude any game that he deems to be unfair or misleading or may | 0004| exclude any game that he deems to be not financially beneficial to | 0005| the state. | 0006| D. The director shall authorize video gaming licensees to | 0007| begin to operate video games by February 1, 1997, unless the | 0008| superintendent determines in his sole discretion that | 0009| implementation by that date will compromise the secure operation of | 0010| video gaming in New Mexico. | 0011| E. The director shall implement all regulations necessary | 0012| to administer the Video Gaming Act. | 0013| F. The director has authority to determine the prize | 0014| structure for each game, including the authority to authorize the | 0015| payment of prizes in installments and to administer the regulation | 0016| of payment of video game prizes. However, any prize paid in excess | 0017| of two hundred fifty thousand dollars ($250,000) shall be paid with | 0018| an annuity, the term of which shall be determined by the director. | 0019| G. The director shall make a continuous study of the | 0020| Video Gaming Act, the regulations adopted pursuant to that act, | 0021| similar existing laws in other states and the concerns of citizens | 0022| regarding existing and potential features of video gaming to | 0023| ascertain any improvement and operational efficiencies beneficial | 0024| to the state or its residents. The director shall report his | 0025| findings to the superintendent and the committee for the purposes | 0001| of making recommendations for improving the Video Gaming Act, the | 0002| regulations adopted pursuant to that act or the regulation of video | 0003| gaming in the state. | 0004| H. The director shall supervise the gaming administration | 0005| personnel. | 0006| I. The director shall cooperate and coordinate the gaming | 0007| administration activities of the division with the security | 0008| director whenever necessary and appropriate. | 0009| J. The director shall exercise the authority and perform | 0010| all duties delegated to him by the superintendent and the Video | 0011| Gaming Act. | 0012| Section 9. [NEW MATERIAL] REGULATIONS.-- | 0013| A. The regulations adopted by the superintendent and | 0014| administered by the director and the security director pursuant to | 0015| the Video Gaming Act shall include regulations governing: | 0016| (1) security for video games; | 0017| (2) application requirements for licensees, | 0018| including disclosure requirements related to the ownership and | 0019| control of licensees, the applicant's financial responsibility, the | 0020| security of the applicant's place of business, the integrity and | 0021| reputation of the applicant and other disclosures necessary to | 0022| evaluate the competence, background, integrity or character of the | 0023| licensee, but shall not consider political affiliation, activities | 0024| or monetary contributions to political organizations or candidates | 0025| for any public office; | 0001| (3) the definition of "a person with a substantial | 0002| interest", which shall include a person with an ownership interest | 0003| of five percent or more in a licensee or vendor and employees of | 0004| vendors or licensees in management positions or having management | 0005| responsibities; | 0006| (4) the manner and schedule of implementation of | 0007| video gaming authorized by and consistent with the Video Gaming | 0008| Act; | 0009| (5) enforcement of prohibitions on the playing of | 0010| video games by or for an individual younger than twenty-one years | 0011| of age; | 0012| (6) specific games to be conducted within the | 0013| categories of video games to ensure that no specific game is | 0014| operated that is unfair or misleading; | 0015| (7) the percentage payout for video gaming machines | 0016| and how it should be calculated, provided that at least | 0017| eighty-seven percent of the amount played or bet computed on a | 0018| regular and systematic basis shall be paid or awarded in cash or | 0019| credits; | 0020| (8) procedures to be followed by a video gaming | 0021| licensee in payment of valid prizes, including annuities; | 0022| (9) procedures to ensure that only valid vouchers | 0023| are paid; | 0024| (10) procedures for collecting from winners of | 0025| prizes in excess of six hundred dollars ($600) money owed for | 0001| delinquent child support or taxes; | 0002| (11) methods and limitations on marketing and | 0003| advertising; | 0004| (12) qualifications of vendors or licensees; | 0005| (13) mechanical and electronic standards for video | 0006| gaming machines ensuring the integrity, honesty and security of the | 0007| machines, which standards shall not be more lenient than those | 0008| applied to similar machines in lawful use within the United States | 0009| by any other jurisdiction regulating the conduct of video gaming; | 0010| (14) operations of distributors and operators to | 0011| ensure their compliance with the Video Gaming Act; | 0012| (15) insurance and bonding requirements for vendors | 0013| or licensees; | 0014| (16) minimum requirements for plans to be submitted | 0015| by each video gaming licensee to identify how that licensee will | 0016| assist in the prevention, education and treatment of compulsive | 0017| gambling; | 0018| (17) registration of persons offering video | 0019| amusement machines for play and periodic inspections of the | 0020| premises where video amusement machines are available for play; and | 0021| (18) any other matter necessary or desirable as | 0022| determined by the superintendent to promote and ensure the | 0023| integrity, security, honesty and fairness of the operation and | 0024| administration of video gaming. | 0025| B. The regulations adopted pursuant to this section shall | 0001| be valid for no longer than a period of ten years following | 0002| adoption unless earlier reviewed and approved by the | 0003| superintendent. | 0004| Section 10. [NEW MATERIAL] ADMINISTRATION--HEARING--REGULATIONS.-- | 0005| A. Regulations shall be adopted, amended or repealed only | 0006| after a public hearing by the superintendent. Notice of the | 0007| hearing shall be given at least twenty days in advance in a | 0008| newspaper of general circulation in the state and shall set forth | 0009| the proposed regulation, amendment or the regulation proposed to be | 0010| repealed. Written notice from the superintendent directed to the | 0011| clerk of a municipality or county in which twenty percent or more | 0012| of the licensed video gaming machines in the state are located | 0013| shall be mailed at least twenty days prior to the hearing. The | 0014| superintendent shall either approve or disapprove the proposed | 0015| regulation or the amendment or repeal of a regulation within twenty | 0016| days following the hearing. | 0017| B. Certified copies of any approved regulations shall be | 0018| submitted to the committee and, as required, to the records center | 0019| pursuant to the State Rules Act. Copies of the regulations in | 0020| force shall be made available to any person upon request. | 0021| C. The superintendent shall adopt and promulgate | 0022| regulations to implement this section and for the conduct of all | 0023| hearings. | 0024| Section 11. [NEW MATERIAL] ADMINISTRATIVE PERSONNEL.-- | 0025| A. The director shall appoint all gaming administration | 0001| personnel necessary but shall not appoint security division | 0002| personnel. The gaming administration personnel appointed by the | 0003| director shall serve at the will of the director. In no event | 0004| shall the gaming administration personnel appointed by the director | 0005| exceed fifteen people, without the consent of the superintendent | 0006| and after notifying the committee. | 0007| B. Gaming administration personnel are specifically | 0008| exempted from the Personnel Act. The director, subject to the | 0009| approval of the superintendent, shall set the salaries of the | 0010| gaming administration personnel. | 0011| C. Personnel of the security division shall conduct | 0012| background investigations of all individuals seeking employment | 0013| with the director. The background investigations shall include | 0014| credit checks, police record checks, conviction record checks, | 0015| national and statewide criminal records clearinghouse checks and | 0016| fingerprint checks. | 0017| D. Any individual convicted of a felony or any crime | 0018| involving gambling, moral turpitude, fraud or theft shall not be | 0019| eligible for employment. | 0020| E. An individual employee of the gaming administration | 0021| personnel shall report his arrest for or conviction of a felony or | 0022| any crime involving gambling, moral turpitude, fraud or theft to | 0023| the director within three days of such arrest or conviction. | 0024| Section 12. [NEW MATERIAL] SECURITY DIVISION--BACKGROUND | 0025| INVESTIGATIONS--SECURITY AUDIT.-- | 0001| A. The security director shall administer the security | 0002| division. The security director may employ security division | 0003| personnel as he considers necessary and shall ensure that security | 0004| division personnel are commissioned as peace officers. Security | 0005| division personnel are specifically exempt from the Personnel Act. | 0006| Security division personnel serve at the pleasure of the security | 0007| director. The security director, subject to approval of the | 0008| superintendent, shall set the salaries of the security division | 0009| personnel. | 0010| B. The department of public safety shall perform a full | 0011| criminal background investigation of a prospective investigator or | 0012| any other security division personnel. The department of public | 0013| safety shall report the findings to the security director except | 0014| for background information on the security director, which shall be | 0015| reported to the superintendent. The background investigations | 0016| shall include but are not limited to credit checks, police record | 0017| checks, conviction record checks, national and statewide criminal | 0018| records clearinghouse checks and fingerprint checks. The security | 0019| division shall reimburse the department of public safety for the | 0020| actual costs of an investigation. All information obtained through | 0021| a background investigation shall be confidential, except that the | 0022| security director may exchange such confidential information with | 0023| state, federal and local law enforcement agencies. | 0024| C. Any individual convicted of a felony or any crime | 0025| involving gambling, moral turpitude, fraud or theft shall not be | 0001| eligible for employment in the security division. | 0002| D. An individual employee of the security division | 0003| personnel shall report his arrest for or conviction of a felony or | 0004| any crime involving gambling, moral turpitude, fraud or theft to | 0005| the security director within three days of such arrest or | 0006| conviction. | 0007| E. By January 1, 1998 and at least once every two years | 0008| thereafter, the superintendent shall employ an independent firm | 0009| that is experienced in security, including computer security and | 0010| systems security, to conduct a comprehensive confidential study of | 0011| all aspects of video gaming security, including: | 0012| (1) regulation and licensing department personnel | 0013| security; | 0014| (2) vendor, licensee and racetrack security; | 0015| (3) security against fraudulent winning; | 0016| (4) computer system security, data communications, | 0017| database and systems security; | 0018| (5) gaming administration and security premises | 0019| security; | 0020| (6) security of payment procedures; | 0021| (7) security of video gaming machines; and | 0022| (8) other security aspects of video gaming | 0023| regulatory operations. | 0024| F. The security director shall provide the governor, the | 0025| committee and the superintendent with a copy of the confidential | 0001| security study. | 0002| G. The security director, after consultation with the | 0003| committee, shall develop a plan to improve the security of video | 0004| gaming based upon the recommendations of the confidential security | 0005| study; however, nothing in this section requires the security | 0006| director to implement any of the recommendations made in the | 0007| security study. | 0008| H. The security director shall keep files that he deems | 0009| necessary for the secure and efficient operation of the security | 0010| division. | 0011| I. The security director shall cooperate and coordinate | 0012| the activities of the security division with the director in order | 0013| to resolve security issues raised by the director to the greatest | 0014| extent possible. The security director shall exercise the | 0015| authority and perform the duties delegated to him by the | 0016| superintendent. | 0017| J. If at any time the volume of background | 0018| investigations required exceeds the capacity for the security | 0019| division to complete the investigations in a timely or effective | 0020| manner, the security director or superintendent may contract with | 0021| the department of public safety for completion of background | 0022| investigations as needed. | 0023| Section 13. [NEW MATERIAL] INFORMATION AND DATA--CONFIDENTIALITY--DISCLOSURE.-- | 0024| A. All of the following information and data are | 0025| confidential and may be revealed in whole or in part only in the | 0001| course of the necessary administration of the Video Gaming Act or | 0002| upon the lawful order of a court of competent jurisdiction, except | 0003| that the security director may reveal confidential information and | 0004| data to an authorized agent of any governmental agency pursuant to | 0005| a reciprocal agreement with the other governmental agency to share | 0006| information and maintain confidentiality of the information as | 0007| provided in this section: | 0008| (1) security measures and internal security reports; | 0009| (2) information and data provided by a governmental | 0010| agency required by that agency's governing law to be kept | 0011| confidential; | 0012| (3) trade secrets and proprietary information of any | 0013| applicant, licensee or vendor; | 0014| (4) personal data, including personal financial | 0015| data, not otherwise public and not directly related to the license | 0016| or major procurement contract; and | 0017| (5) data or information as otherwise authorized by | 0018| law. | 0019| B. Notice of the content of any information or data | 0020| furnished or released pursuant to Paragraphs (3) and (4) of | 0021| Subsection A of this section shall be given to any applicant or | 0022| licensee in a manner prescribed by regulations adopted pursuant to | 0023| the Video Gaming Act. | 0024| Section 14. [NEW MATERIAL] DIVISION--RECORDS--REQUIREMENTS.-- | 0025| A. The director shall make and keep records that | 0001| accurately and fairly reflect transactions of video gaming | 0002| conducted pursuant to the Video Gaming Act, including the receipt | 0003| of funds, prize claims, prizes paid, expenses and all other | 0004| activities and financial transactions involving revenue generated | 0005| by video gaming, to permit preparation of financial statements in | 0006| conformity with generally accepted accounting principles and to | 0007| maintain daily accountability. | 0008| B. The director shall maintain a file of all applications | 0009| for licenses pursuant to the Video Gaming Act, together with a | 0010| record of all action taken with respect to those applications. The | 0011| file and record are open to public inspection, except those | 0012| portions declared by law to be confidential. | 0013| C. The director may maintain such other files and records | 0014| as he deems desirable. | 0015| D. The superintendent may examine the records or files | 0016| maintained by the director at any time. | 0017| Section 15. [NEW MATERIAL] AUDITS.-- | 0018| A. The superintendent shall provide for a certified | 0019| public accountant to conduct an independent audit for each fiscal | 0020| year of all accounts and transactions related to video gaming. The | 0021| independent audit shall be reviewed by the state auditor. The | 0022| certified public accountant shall not have an ownership interest in | 0023| a vendor or licensee and shall report any conflict of interest or | 0024| prior or existing business relationship with a vendor or licensee | 0025| to the superintendent. The certified public accountant shall | 0001| present an audit report to the superintendent, the governor and the | 0002| committee not later than March 1 of the year following the fiscal | 0003| year for which the audit was performed. The report shall contain | 0004| recommendations to improve the efficiency of video gaming | 0005| regulatory operations. | 0006| B. Each vendor's or licensee's records relating to the | 0007| Video Gaming Act are subject to audit. | 0008| C. The superintendent, after consultation with the | 0009| committee, shall develop a plan to improve the efficiency of the | 0010| regulation of video gaming based upon the recommendations of the | 0011| certified public accountant; however, nothing in this section | 0012| requires the superintendent to implement any of the recommendations | 0013| made by the certified public accountant. | 0014| D. All records, accounts and transactions relating to | 0015| video gaming are exempt from the Audit Act. | 0016| Section 16. [NEW MATERIAL] INVESTIGATORY POWERS.--The | 0017| superintendent, director and security director have the power to: | 0018| A. examine, under oath, any person or any officer, | 0019| employee or agent of any person; | 0020| B. compel by subpoena the production of records; | 0021| C. compel by subpoena the attendance of any person in | 0022| this state to testify before the superintendent, director or | 0023| security director when such investigation is necessary to the | 0024| proper administration of the Video Gaming Act; and | 0025| D. inspect the premises and records of a licensee | 0001| licensed pursuant to the Video Gaming Act or any place where gaming | 0002| machines are located, without prior notice during regular work | 0003| hours. | 0004| Section 17. [NEW MATERIAL] ATTORNEY GENERAL--OTHER LAW | 0005| ENFORCEMENT AUTHORITY--POWERS AND DUTIES.-- | 0006| A. The superintendent, security director or director may | 0007| confer with the attorney general as deemed necessary and advisable | 0008| for the proper administration of the Video Gaming Act. Upon | 0009| request of the superintendent, it is the duty of the attorney | 0010| general and any other law enforcement authority to whom a violation | 0011| is reported to investigate and cause appropriate proceedings to be | 0012| instituted without delay. | 0013| B. The attorney general and the department of public | 0014| safety shall furnish to the superintendent any information that | 0015| they may have in their possession as may be necessary to ensure | 0016| security, honesty, fairness and integrity in the operation and | 0017| administration of video gaming conducted pursuant to the Video | 0018| Gaming Act. The security division shall be considered to be a | 0019| criminal justice agency and shall be furnished that information | 0020| without charge upon proper written request from the superintendent | 0021| or security director. | 0022| Section 18. [NEW MATERIAL] CONFLICTS OF INTEREST--COMPLIANCE WITH OTHER LAWS--VIOLATION--REMOVAL FROM POSITION.-- | 0023| A. The superintendent, the committee, the director, | 0024| gaming administration personnel, the security director, security | 0025| division personnel or other restricted persons shall not, directly | 0001| or indirectly: | 0002| (1) knowingly hold a financial interest or acquire | 0003| stocks, bonds or any other interest in any entity that is a | 0004| licensee or vendor; or | 0005| (2) have a financial interest in the ownership or | 0006| leasing of property used in the conduct or regulation of video | 0007| gaming. | 0008| B. The superintendent, the committee, the director, | 0009| gaming administration personnel, the security director, security | 0010| division personnel or other restricted persons shall not ask for, | 0011| offer to accept or receive any gift, gratuity or other thing of | 0012| value that would inure to that person's benefit from: | 0013| (1) any entity seeking to supply equipment, | 0014| materials or services for use in the conduct or regulation of video | 0015| gaming; | 0016| (2) any applicant for a license; or | 0017| (3) any vendor or licensee. | 0018| C. No person seeking to supply equipment, materials or | 0019| services for use in the conduct or regulation of video gaming, no | 0020| applicant for a license and no vendor or licensee shall offer or | 0021| give to the superintendent, the committee, the director, gaming | 0022| administration personnel, the security director, security division | 0023| personnel or other restricted persons any gift, gratuity or other | 0024| thing of value that would inure to the recipient's personal | 0025| benefit. | 0001| D. The superintendent, the director, gaming | 0002| administration personnel, the security director and security | 0003| division personnel shall comply with all state laws applicable to | 0004| ethics in government, conflict of interest and financial | 0005| disclosure. | 0006| E. If the director, the security director or any employee | 0007| of the security division or an employee of the division who works | 0008| in gaming administration violates this section, he shall be | 0009| suspended or removed from his position after notice and a hearing | 0010| before the superintendent. The governor may appoint an independent | 0011| hearing officer to receive testimony on alleged violations of the | 0012| Video Gaming Act by the superintendent. The hearing officer shall | 0013| report his findings to the governor and the committee. | 0014| F. For purposes of this section: | 0015| (1) "gift, gratuity or other thing of value" does | 0016| not include the provision of a breakfast, luncheon, dinner or other | 0017| refreshment consisting of food and beverage provided for immediate | 0018| consumption; and | 0019| (2) "other restricted person" means anyone living in | 0020| the same household as the superintendent, the director, a member of | 0021| the committee, any gaming administration personnel, the security | 0022| director or security division personnel. | 0023| Section 19. [NEW MATERIAL] PROCUREMENT OF GOODS OR | 0024| SERVICES--DIRECTOR--POWERS--LIMITATION.--All procurement shall be | 0025| subject to the Video Gaming Act and shall be exempt from the | 0001| Procurement Code and any other state law concerning the purchase of | 0002| any goods or services. The director, subject to the approval of | 0003| the superintendent, shall enter into all contracts for procurement. | 0004| The superintendent may adopt provisions of the Procurement Code as | 0005| may be practically applied in administering and regulating | 0006| procurement for gaming administration and security. | 0007| Section 20. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--DISCLOSURES REQUIRED--CONTRACT APPROVAL--REQUIREMENTS.-- | 0008| A. The director shall request proposals for major | 0009| procurements for effectuating the purpose of the Video Gaming Act. | 0010| In awarding contracts in response to requests for proposals, the | 0011| director shall award contracts to the responsible party who submits | 0012| the best proposal that maximizes the benefits to the state in | 0013| relation to the cost in the areas of security, competence, quality | 0014| of product, capability, timely performance and maximization of net | 0015| revenue. No contract for a major procurement may be assigned by a | 0016| vendor except by a written agreement approved and signed by the | 0017| director. | 0018| B. The director shall require proposed vendors to | 0019| disclose information to enable him to review and evaluate the | 0020| responses to the requests for proposals on the basis of competence, | 0021| background, integrity, character and nature of the ownership and | 0022| control of vendors and to ensure compliance with the provisions of | 0023| the Video Gaming Act. | 0024| C. The director shall investigate, as part of the process | 0025| for analyzing responses to requests for proposals for any major | 0001| procurement and prior to agreeing to an assignment of a major | 0002| procurement, the financial responsibility, security and integrity | 0003| of any party whose proposal is under final consideration. The | 0004| director shall require a background investigation to be conducted | 0005| by the security division of any person with a substantial interest | 0006| in a person whose proposal is under final consideration. A | 0007| background investigation shall include credit checks, police record | 0008| checks, conviction record checks, national and statewide criminal | 0009| records clearinghouse checks and fingerprint checks. Each proposed | 0010| vendor who is under final consideration shall pay the costs of that | 0011| person's background investigation. | 0012| D. No major procurement shall be entered into if any | 0013| person with a substantial interest in the proposed vendor has been | 0014| convicted of a felony or a crime involving gambling, moral | 0015| turpitude, fraud or theft. | 0016| E. If any person with a substantial interest in a vendor | 0017| is charged with a felony or any crime involving gambling, moral | 0018| turpitude, fraud or theft, the vendor shall report the arrest or | 0019| conviction to the director within three days of the arrest or | 0020| conviction. | 0021| F. No major procurement proposal shall be approved by the | 0022| director if the proposed vendor makes a material misrepresentation | 0023| of fact in his proposal or during the proposal review process or if | 0024| the proposed vendor fails to comply with this section. Any | 0025| contract entered into with a vendor who has made a material | 0001| misrepresentation of fact or has failed to comply with this section | 0002| shall be void. | 0003| G. This section shall be construed broadly and liberally | 0004| to achieve the end of full disclosure of all information necessary | 0005| to allow for a full, complete and ongoing evaluation by the | 0006| director of the competence, integrity, background, character and | 0007| nature of the ownership and control of vendors. | 0008| Section 21. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--PERFORMANCE BOND.--Each vendor shall post a performance bond with | 0009| the director, using a surety acceptable to the director, in | 0010| consultation with the superintendent of insurance in an amount | 0011| equal to the full amount estimated to be paid annually to the | 0012| vendor under the contract. Nothing in the Video Gaming Act shall | 0013| be construed to restrict the authority of the director to specify | 0014| liquidated or other damages in contracts with vendors. | 0015| Section 22. [NEW MATERIAL] LICENSING--RENEWALS.-- | 0016| A. No person may act, or conduct any activity, as a video | 0017| gaming licensee, distributor, manufacturer or operator without | 0018| first obtaining an appropriate license pursuant to the Video Gaming | 0019| Act. | 0020| B. The burden of proving qualifications for licensure is | 0021| on the applicant. | 0022| C. The director shall require background investigations | 0023| of the applicant and any person with a substantial interest in the | 0024| applicant. Background investigations to be conducted by the | 0025| security division may include at a minimum credit checks, police | 0001| record checks, conviction record checks, national and statewide | 0002| criminal records clearinghouse checks and fingerprint checks. The | 0003| applicant shall pay the costs of the background investigation. | 0004| D. No license shall be granted to an applicant if the | 0005| applicant or any person with a substantial interest in the | 0006| applicant has been convicted of a a felony or any crime involving | 0007| gambling, moral turpitude, fraud or theft within ten years prior to | 0008| the application. | 0009| E. Licenses issued pursuant to the Video Gaming Act shall | 0010| be valid for one year. | 0011| F. Upon application for renewal, the director may require | 0012| such additional information as he deems necessary to evaluate the | 0013| renewal application. | 0014| G. This section shall be construed broadly and liberally | 0015| to achieve full disclosure of all information necessary to allow | 0016| for a full and complete evaluation by the director of an | 0017| applicant's fitness. | 0018| Section 23. [NEW MATERIAL] LICENSING--DENIAL--CANCELLATION--TRANSFER.-- | 0019| A. No license shall be granted by the director if the | 0020| applicant makes a material misrepresentation of fact in his | 0021| application or during the application process, or if the applicant | 0022| fails to comply with any provision required as part of the | 0023| licensing procedure. Any license granted to an applicant who has | 0024| made a material misrepresentation of fact or has failed to comply | 0025| with this section shall be void and canceled by the director. | 0001| B. The director may deny an application for or limit, | 0002| cancel or condition any license with cause. | 0003| C. If an application is denied, canceled, limited or | 0004| conditioned, the director shall prepare and make available to the | 0005| applicant a written decision upon which the order denying the | 0006| application is based. | 0007| D. If an applicant is denied a license, renewal or | 0008| amendment, or the application is withdrawn prior to a determination | 0009| being made by the director on the application, the fee submitted | 0010| shall be returned to the applicant less an administrative fee to be | 0011| set by the director. For video gaming licensees, a total not | 0012| exceeding the amount of one administrative fee shall be retained | 0013| and not a separate administrative fee for each video gaming machine | 0014| requested to be licensed. | 0015| E. The director shall determine the circumstances under | 0016| which it is possible to return the background check fee if an | 0017| application is denied or withdrawn. | 0018| F. No licensee may transfer a license to another person. | 0019| For purposes of this section, "transfer" means a change in | 0020| ownership or control of the licensee involving five percent or more | 0021| of the ownership or control interest of the licensee. A licensee | 0022| shall notify the director of any transfer. | 0023| G. The holder of any license does not acquire any vested | 0024| interest or right in or under the license, and a license issued | 0025| pursuant to the Video Gaming Act is a revocable privilege. | 0001| Section 24. [NEW MATERIAL] LICENSE FEES.-- | 0002| A. Applicants for licensure, renewal, amendment or | 0003| registration shall pay a fee to the division to be submitted with | 0004| the application not to exceed the following: | 0005| (1) manufacturers, twenty thousand dollars | 0006| ($20,000); | 0007| (2) distributors, ten thousand dollars ($10,000); | 0008| (3) operators, seven thousand five hundred dollars | 0009| ($7,500); | 0010| (4) video amusement machine registration, ten | 0011| dollars ($10.00) for each video amusement machine; and | 0012| (5) video gaming licensees, five hundred dollars | 0013| ($500) for each video gaming machine and one hundred dollars ($100) | 0014| annually for renewal. | 0015| B. License fees shall be deposited in the general fund. | 0016| Section 25. [NEW MATERIAL] TAX IMPOSED--VIDEO GAMING TAX--RATE--ADMINISTRATION AND ENFORCEMENT.-- | 0017| A. In addition to all other taxes imposed by other state | 0018| laws, an excise tax is imposed for the privilege of engaging in the | 0019| activities authorized pursuant to the Video Gaming Act. The tax | 0020| shall be known as the "video gaming tax". | 0021| B. The video gaming tax is imposed in an amount equal to | 0022| twenty percent of the net take of a person who operates video | 0023| gaming machines. | 0024| C. The video gaming tax shall be credited to the general | 0025| fund. | 0001| D. The video gaming tax shall be paid to and administered | 0002| and enforced by the taxation and revenue department pursuant to the | 0003| provisions of the Tax Administration Act. | 0004| Section 26. [NEW MATERIAL] LICENSURE--LICENSED CHARITABLE | 0005| ORGANIZATIONS--ELECTRONIC PULL TAB MACHINES--NET TAKE | 0006| DISTRIBUTIONS.-- | 0007| A. A charitable organization licensed to conduct bingo | 0008| and raffles pursuant to the Bingo and Raffle Act may apply for and | 0009| be issued a license as a video gaming licensee by the director to | 0010| offer video gaming limited to electronic pull tab machines on its | 0011| premises pursuant to the Video Gaming Act and the regulations | 0012| adopted to implement and enforce that act. | 0013| B. A licensed charitable organization shall not permit | 0014| electronic pull tab machines to be placed for use on their premises | 0015| until each machine has had a license affixed following approval by | 0016| the director. | 0017| C. No more than twenty-five electronic pull tab machines | 0018| may be offered for operation and play on the premises of a licensed | 0019| charitable organization. | 0020| D. No electronic pull tab machine on the premises of a | 0021| licensed charitable organization may award a prize that exceeds one | 0022| thousand dollars ($1,000). | 0023| E. Licensed charitable organizations shall distribute a | 0024| minimum of twenty percent of the net take of each electronic pull | 0025| tab machine to organizations with at least one office located in | 0001| New Mexico that are described in Section 501(c)(3) of the Internal | 0002| Revenue Code of 1986 and have received an exemption from payment of | 0003| federal income taxes pursuant to Section 501(a) of that act. No | 0004| money shall be distributed from the proceeds of electronic pull tab | 0005| machines to organizations described in this section by which an | 0006| officer, director or employee or a family member of an officer, | 0007| director or employee is employed or will directly benefit. | 0008| F. Licensed charitable organizations shall submit an | 0009| accounting of distributions made pursuant to Subsection E of this | 0010| section to the director by December 31 of each calendar year. | 0011| G. Electronic pull tab machines may be played on the | 0012| premises of a licensed charitable organization Sunday through | 0013| Saturday from 12:00 noon until 12:00 midnight. | 0014| Section 27. [NEW MATERIAL] LICENSURE--LICENSED CLUBS--VIDEO GAMING--NET TAKE DISTRIBUTIONS.-- | 0015| A. A nonprofit organization may apply for and be issued a | 0016| license as a video gaming licensee by the director to offer video | 0017| gaming on its club premises pursuant to the Video Gaming Act and | 0018| the regulations adopted to implement and enforce that act. A | 0019| nonprofit organization that is a video gaming licensee is a | 0020| licensed club. | 0021| B. Licensed clubs shall not permit video gaming machines | 0022| to be placed for use on their premises until each machine has had a | 0023| license affixed following approval by the director. | 0024| C. No more than twenty-five video gaming machines may be | 0025| offered for operation and play on the premises of a licensed club. | 0001| No video gaming machine that dispenses cash or coins as a prize may | 0002| be played on the premises of a licensed club. | 0003| D. No video gaming machine on the premises of a licensed | 0004| club may award a prize that exceeds one thousand dollars ($1,000). | 0005| E. Licensed clubs shall distribute a minimum of twenty | 0006| percent of the net take of each video gaming machine to | 0007| organizations with at least one office located in New Mexico that | 0008| are described in Section 501(c)(3) of the Internal Revenue Code of | 0009| 1986 and have received an exemption from payment of federal income | 0010| taxes pursuant to Section 501(a) of that act. No money shall be | 0011| distributed from the proceeds of video gaming machines to | 0012| organizations described in this section by which an officer, | 0013| director or employee or a family member of an officer, director or | 0014| employee is employed or will directly benefit. | 0015| F. Licensed clubs shall submit an accounting of | 0016| distributions made pursuant to Subsection E of this section to the | 0017| director by December 31 of each calendar year. | 0018| G. Video gaming machines may be played on the premises of | 0019| a licensed club Sunday through Saturday from 12:00 noon until 12:00 | 0020| midnight. | 0021| Section 28. [NEW MATERIAL] LICENSURE--RACETRACKS--VIDEO | 0022| GAMING--NET TAKE DISTRIBUTIONS.-- | 0023| A. A racetrack licensed by the state racing commission | 0024| pursuant to the Horse Racing Act to conduct live horse races or | 0025| simulcast races may apply for and be issued a license as a video | 0001| gaming licensee by the director to offer video gaming on its | 0002| premises where live racing is conducted pursuant to the Video | 0003| Gaming Act and regulations adopted to implement and enforce that | 0004| act. | 0005| B. A racetrack's video gaming license to operate video | 0006| gaming machines shall automatically become void if: | 0007| (1) the racetrack no longer holds an active license | 0008| to conduct pari-mutuel wagering; or | 0009| (2) the racetrack fails to maintain ninety percent | 0010| of the number of racing days and conduct ninety percent of the | 0011| number of live horse races as it did in the 1994 calendar year, | 0012| unless otherwise approved by the director in consultation with the | 0013| state racing commission. | 0014| C. The video gaming license of any racetrack that did not | 0015| conduct live racing in 1994 shall automatically become void if: | 0016| (1) the racetrack no longer holds an active license | 0017| to conduct pari-mutuel wagering; or | 0018| (2) the racetrack fails to conduct that number of | 0019| live horse races on that number of racing days that would represent | 0020| the minimum number of the horse races and racing days conducted by | 0021| any racetrack in New Mexico in the 1994 calendar year, unless | 0022| otherwise approved by the director in consultation with the state | 0023| racing commission. | 0024| D. No license shall be issued to a racetrack that has | 0025| dismantled or removed any part of the facilities required for the | 0001| operation of the track, including offices, stables, sheds or patron | 0002| seating or shelter, within two years prior to the date on which the | 0003| Video Gaming Act becomes effective. | 0004| E. A video gaming licensee that is a racetrack may have | 0005| no more than four hundred video gaming machines, including those | 0006| machines commonly known as video slot machines, provided that the | 0007| number of video gaming machines to be located on the licensee's | 0008| premises is specified in the licensee's video gaming license. | 0009| F. A video gaming licensee that is a racetrack is not | 0010| subject to limitations regarding maximum prize amounts; provided, | 0011| however, video gaming licensees that are racetracks shall comply | 0012| with all prize and payout requirements of the Video Gaming Act and | 0013| all regulations adopted pursuant to that act, except those that | 0014| only apply to licensed charities, licensed clubs and licensed | 0015| liquor establishments. | 0016| G. Video gaming licensees that are racetracks shall pay: | 0017| (1) twenty percent of the net take of each video | 0018| gaming machine to the New Mexico horsemen's association, of which | 0019| percentage one-fourth of one percent will be distributed to the New | 0020| Mexico horsemen's association benevolence fund and the balance will | 0021| be distributed to the appropriate New Mexico purse enhancement | 0022| funds; and | 0023| (2) five percent to the New Mexico horse breeders' | 0024| association for the New Mexico breeder incentive fund. | 0025| H. Video gaming licensees that are racetracks shall | 0001| submit an accounting of distributions made pursuant to Paragraphs | 0002| (1) and (2) of Subsection G of this section to the director by | 0003| December 31 of each calendar year. | 0004| I. Video gaming machines may be played on the premises of | 0005| a licensed racetrack only on days when the racetrack conducts live | 0006| horse races or simulcast races and only from 12:00 noon until 12:00 | 0007| midnight. | 0008| Section 29. [NEW MATERIAL] LICENSURE--LIQUOR | 0009| ESTABLISHMENTS--VIDEO GAMING--NET TAKE DISTRIBUTIONS.-- | 0010| A. A liquor establishment may apply for and be issued a | 0011| license as a video gaming licensee by the director to offer video | 0012| gaming on its premises pursuant to the Video Gaming Act and the | 0013| regulations adopted to implement and enforce that act. | 0014| B. No more than five video gaming machines, including | 0015| those commonly known as slot machines, may be offered for play on | 0016| the premises of a licensed liquor establishment. | 0017| C. No video gaming machine located on the premises of a | 0018| licensed liquor establishment shall pay out a prize that exceeds | 0019| one thousand dollars ($1,000). | 0020| D. Video gaming machines may be played on the premises of | 0021| a licensed liquor establishment Sunday through Saturday from 12:00 | 0022| noon until 12:00 midnight. | 0023| Section 30. [NEW MATERIAL] LICENSURE--RESORTS--VIDEO | 0024| GAMING--NET TAKE DISTRIBUTIONS.-- | 0025| A. A resort may apply for and be issued a license as a | 0001| video gaming licensee by the director to offer video gaming on its | 0002| premises pursuant to the Video Gaming Act and the regulations | 0003| adopted to implement and enforce that act. | 0004| B. A licensed resort may have an unlimited number of | 0005| video gaming machines, including those machines commonly known as | 0006| slot machines, provided that the number of video gaming machines to | 0007| be located on the licensee's premises is specified in the | 0008| licensee's video gaming license. | 0009| C. A licensed resort is not subject to limitations | 0010| regarding maximum prize amounts; provided, however, a licensed | 0011| resort shall comply with all prize and payout requirements of the | 0012| Video Gaming Act and all regulations adopted pursuant to that act, | 0013| except those that only apply to licensed charitable organizations, | 0014| licensed clubs and liquor establishments. | 0015| D. Video gaming machines may be played on the premises of | 0016| a licensed resort Sunday through Saturday from 12:00 noon until | 0017| 12:00 midnight. | 0018| E. A licensed resort may be established only following a | 0019| referendum in which the majority of the registered voters approves | 0020| permitting video gaming at licensed resorts. The referendum may be | 0021| held only in: | 0022| (1) class B counties: | 0023| (a) having populations as determined by the | 0024| 1990 federal census of not more than twenty-five thousand persons | 0025| and not less than ten thousand persons; and | 0001| (b) having a 1993 net taxable value of | 0002| property, as that term is defined in the Property Tax Code, of at | 0003| least two hundred seventy million dollars ($270,000,000) but not | 0004| more than three hundred thirty million dollars ($330,000,000); and | 0005| (2) class A counties having populations as | 0006| determined by the 1990 federal census of less than four hundred | 0007| thousand persons. | 0008| Section 31. [NEW MATERIAL] VIDEO GAMING LICENSEES--GENERAL | 0009| PROVISIONS--PLAYER AGE LIMIT--RULES FOR PLACEMENT.-- | 0010| A. An applicant for licensure as a video gaming licensee | 0011| shall submit with the application a plan for assisting in the | 0012| prevention, education and treatment of compulsive gambling. The | 0013| plan shall include regular educational training sessions for | 0014| employees. The director must approve the plan as part of the | 0015| licensing process. | 0016| B. Video gaming licensees shall be granted a license to | 0017| operate a specific number of machines on premises identified in the | 0018| license application consistent with the Video Gaming Act and shall | 0019| be granted a license for each video gaming machine. | 0020| C. A video gaming licensee that desires to change the | 0021| number of machines in operation on his premises shall apply to the | 0022| director for an amendment to his license authorizing a change in | 0023| the number of machines. | 0024| D. No person under twenty-one years of age may play a | 0025| video gaming machine licensed pursuant to the Video Gaming Act. | 0001| E. Video gaming machines may be available for play only | 0002| in an area restricted to persons twenty-one years of age or older. | 0003| A video gaming licensee shall erect a permanent physical barrier to | 0004| allow for multiple uses of the premises by persons of all ages. | 0005| For purposes of this section, "permanent physical barrier" means a | 0006| floor-to-ceiling wall separating the general areas from the | 0007| restricted areas. The entrance to the area where video gaming | 0008| machines are located shall display a sign that the premises are | 0009| restricted to persons twenty-one years or older. Persons under the | 0010| age of twenty-one shall not enter the premises where video gaming | 0011| machines are located. | 0012| F. No video gaming licensee shall have automated teller | 0013| machines on the premises. | 0014| G. No video gaming licensee shall provide, allow, | 0015| contract or arrange to provide alcohol or food at reduced prices as | 0016| an incentive or enticement to gamble. | 0017| H. No licensee may transfer a license to another person. | 0018| For purposes of this section, "transfer" means a change in | 0019| ownership or control of the licensee involving five percent or more | 0020| of the ownership or interest of the licensee. A licensee shall | 0021| notify the director of a transfer. | 0022| I. No licensed charitable organization, licensed club or | 0023| licensed liquor establishment shall engage in business to offer | 0024| video gaming as its primary business or activity. | 0025| Section 32. [NEW MATERIAL] VIDEO GAMING MACHINES--SPECIFICATIONS AND REQUIREMENTS.-- | 0001| A. The director shall examine and approve prototypes of | 0002| video gaming machines of licensed manufacturers prior to that type | 0003| of video gaming machine being sold, leased or placed anywhere in | 0004| this state. The director shall require the manufacturer seeking | 0005| the examination and approval of a video gaming machine or | 0006| associated equipment to pay the anticipated actual cost of the | 0007| examination in advance and, after the completion of the | 0008| examination, shall refund overpayments or charge and collect | 0009| amounts sufficient to reimburse the director for underpayments of | 0010| actual costs. The director may contract for the examination of | 0011| video gaming machines and associated equipment as required by this | 0012| section. | 0013| B. Each video gaming machine licensed pursuant to the | 0014| Video Gaming Act shall: | 0015| (1) be identical to a prototype of that video gaming | 0016| machine as approved by the director or, if not, then specifically | 0017| approved by the director; | 0018| (2) offer only games authorized by the director; | 0019| (3) not have any means of manipulation that affects | 0020| the random probabilities of winning; | 0021| (4) have nonresettable meters that keep a permanent | 0022| record of all cash inserted into the machine and all awards of | 0023| prizes; | 0024| (5) not have the capabilities to accept a bill | 0025| larger than twenty dollars ($20.00); | 0001| (6) have the license prominently displayed on it in | 0002| such a way that an attempt at alteration will result in a | 0003| mutilation of the license; and | 0004| (7) be linked to a central communications system to | 0005| provide auditing program information as required by the director. | 0006| C. Any machine that does not comply with the requirements | 0007| of this section is contraband and a public nuisance and is subject | 0008| to confiscation by any law enforcement or peace officer. | 0009| D. No contract or other arrangement with a video gaming | 0010| licensee for the lease or maintenance of video gaming machines | 0011| shall allow the operator to receive more than thirty percent of the | 0012| net take of each video gaming machine. | 0013| E. Nothing in the Video Gaming Act prevents a video | 0014| gaming licensee from owning the video gaming machines located on | 0015| that licensee's premises, provided that the machines comply with | 0016| the Video Gaming Act and regulations adopted pursuant to that act. | 0017| Section 33. [NEW MATERIAL] LOCAL OPTION.-- | 0018| A. In any county or municipality in which the local | 0019| option provision of the Video Gaming Act has been accepted by the | 0020| voters, the use of video gaming machines is prohibited or permitted | 0021| in accordance with the outcome of the referendum. | 0022| B. Placement or use of video gaming machines on the | 0023| premises of a racetrack is not subject to prohibition by a local | 0024| option referendum. | 0025| Section 34. [NEW MATERIAL] LOCAL OPTION ELECTION--CHARITABLE ORGANIZATIONS--NONPROFIT ORGANIZATIONS--LICENSED LIQUOR | 0001| ESTABLISHMENTS--RESORTS--PROCEDURE.-- | 0002| A. A county as described in Subsection E of Section 30 of | 0003| the Video Gaming Act, not including incorporated municipalities | 0004| within its boundaries, or an incorporated municipality within a | 0005| county as described in Subsection E of Section 30 of the Video | 0006| Gaming Act becomes a local option district if: | 0007| (1) the option of prohibiting video gaming on the | 0008| premises of charitable organizations, nonprofit organizations and | 0009| liquor establishments in that county or incorporated municipality | 0010| is adopted by the registered voters of that county or municipality; | 0011| or | 0012| (2) the option of permitting video gaming in resorts | 0013| in that county or incorporated municipality is adopted by the | 0014| registered voters of that county or municipality. | 0015| B. An incorporated municipality may have a local option | 0016| referendum in that municipality, even if the county in which the | 0017| incorporated municipality is located has had a referendum and | 0018| resolved the local option question for the county. | 0019| C. Based on the content of the petition, a local | 0020| governing body of a proposed local option district shall place one | 0021| or both of the following questions on the ballot: | 0022| (1) "Shall video gaming at certain charitable | 0023| organizations, nonprofit clubs and liquor establishments be | 0024| prohibited in (name of proposed local option district), effective | 0025| July 1, 19__? _____YES _____NO"; or | 0001| (2) "Shall video gaming be permitted at resorts in | 0002| (name of proposed local option district), effective July 1, 19__? | 0003| ______YES ______NO". | 0004| D. The procedures for adopting the local option provision | 0005| regarding video gaming are: | 0006| (1) at any time from the effective date of the Video | 0007| Gaming Act, the registered voters of any proposed local option | 0008| district may petition the governing body by filing one or more | 0009| petitions in the appropriate office to hold a referendum to | 0010| determine whether the proposed local option district shall adopt a | 0011| local option provision of the Video Gaming Act. Each petition | 0012| shall state the question that will be present on the ballot. If | 0013| the aggregate of the signatures of the registered voters on all the | 0014| petitions equals or exceeds five percent of the number of | 0015| registered voters of the proposed local option district at the time | 0016| of the last general election, the governing body shall call an | 0017| election within ninety days of the verification of the petition. | 0018| The date of the filing of the petition shall be three months after | 0019| the date on which the first signature was obtained; | 0020| (2) except as otherwise provided in this section, | 0021| the election shall be called and conducted and votes shall be | 0022| counted and canvassed substantially in the manner provided by law | 0023| for general elections within the county or pursuant to the | 0024| Municipal Election Code for an incorporated municipality; | 0025| (3) except as otherwise provided in this section, | 0001| contests, recounts and rechecks shall be permitted as provided for | 0002| in the case of candidates for county offices in general elections | 0003| or as provided for in the Municipal Election Code for candidates | 0004| for municipal office. Applications for contests, recounts or | 0005| rechecks may be filed by any person who voted in the election, and | 0006| service shall be made upon the county clerk or municipal clerk. | 0007| The payment of the costs and expenses of the contest, recount or | 0008| recheck shall be assessed in the manner provided by the Election | 0009| Code for contests in a general election of candidates for county | 0010| offices or pursuant to the Municipal Election Code for candidates | 0011| for municipal office; | 0012| (4) if a majority of all the votes cast at an | 0013| election: | 0014| (a) seeking to prohibit video gaming on the | 0015| premises of charitable organizations, nonprofit organizations and | 0016| liquor establishments is in favor of the local option provision to | 0017| prohibit video gaming in the local option district, the chairman of | 0018| the governing body shall declare by order entered upon the records | 0019| of the local option district that the local option district has | 0020| adopted the local option provision of the Video Gaming Act | 0021| prohibiting video gaming on the premises of charitable | 0022| organizations, nonprofit organizations and liquor establishments | 0023| and shall notify the superintendent of the results; or | 0024| (b) seeking to permit video gaming at resorts | 0025| is in favor of the local option provision to permit video gaming | 0001| machines in the local option district, the chairman of the | 0002| governing body shall declare by order entered upon the records of | 0003| the local option district that the local option district has | 0004| adopted the local option provision of the Video Gaming Act | 0005| permitting video gaming machines to be operated on the premises of | 0006| licensed resorts and shall notify the superintendent of the | 0007| results; and | 0008| (5) no election shall be held pursuant to this | 0009| section within forty-two days of any primary, general, municipal or | 0010| school district election unless the election is held on the day of | 0011| any primary, general, municipal or school district election. | 0012| Section 35. [NEW MATERIAL] RESUBMISSION OF LOCAL OPTION | 0013| QUESTION.-- | 0014| A. In a local option district in which a local option | 0015| provision of the Video Gaming Act has been rejected by the voters, | 0016| it is permissible after the expiration of three years from the date | 0017| of the election at which the local option provision was rejected to | 0018| have another local option election in the district by following the | 0019| procedure provided for in the Video Gaming Act. | 0020| B. In a local option district in which a local option | 0021| provision of the Video Gaming Act has been accepted by the voters, | 0022| it is permissible after the expiration of twelve years from the | 0023| date of election at which the local option provision was accepted | 0024| to have another local option election that may allow voters to | 0025| rescind the local option previously adopted in the county or | 0001| municipality by following the procedures provided for in the Video | 0002| Gaming Act. | 0003| Section 36. [NEW MATERIAL] MULTIPLE TYPES OF LICENSES | 0004| PROHIBITED.-- | 0005| A. Except as set forth in Subsection B of this section, a | 0006| manufacturer, distributor or operator shall not be licensed as or | 0007| own, manage or control a video gaming licensee. A manufacturer | 0008| shall not be licensed as or own, manage or control an operator. | 0009| B. Nothing in the Video Gaming Act shall prevent an | 0010| applicant that is otherwise eligible for a license as a video | 0011| gaming licensee and that is owned, in whole or in part, by a | 0012| manufacturer on the date of passage of that act from applying for a | 0013| license as a video gaming licensee. However, no more than thirty-five percent of the video gaming machines or associated equipment | 0014| operated by the video gaming licensee may be manufactured by the | 0015| manufacturer that owns the licensee. If a video gaming licensee | 0016| operates or uses any video gaming machines or associated equipment | 0017| that is manufactured by the manufacturer that owns the video gaming | 0018| licensee, the manufacturer shall not qualify as a vendor of | 0019| equipment or communications systems that regulates or audits video | 0020| gaming operations in the state. | 0021| Section 37. [NEW MATERIAL] REVOCATION--CONTRACT--LICENSE.-- | 0022| A. Failure of a vendor to comply with any provision of | 0023| the Video Gaming Act or the regulations adopted pursuant to that | 0024| act shall be sufficient cause for suspension or termination of a | 0025| procurement contract; provided, however, suspension or termination | 0001| of a procurement contract shall not relieve the vendor from | 0002| prosecution for any of the alleged violations or from imposition of | 0003| fines and penalties. | 0004| B. If a licensee fails to respond timely to a written | 0005| request from the superintendent, director or security director or | 0006| violates any provision of the Video Gaming Act or any regulation | 0007| adopted pursuant to that act, the license of the offending licensee | 0008| may be suspended, canceled, limited or revoked by the | 0009| superintendent; provided, however, the licensee shall have | 0010| reasonable notice and opportunity to be heard before the | 0011| superintendent before suspension, cancellation, limitation or | 0012| revocation; and provided, further, the suspension, cancellation, | 0013| limitation or revocation of any license does not relieve the | 0014| licensee from prosecution for any of the alleged violations or from | 0015| imposition of fines and penalties. | 0016| C. The superintendent may levy a fine against a vendor or | 0017| licensee for violation of the provisions of the Video Gaming Act or | 0018| regulations adopted pursuant to that act, not to exceed one hundred | 0019| thousand dollars ($100,000) per violation; provided, however, the | 0020| licensee has a reasonable opportunity to be heard by the | 0021| superintendent before the imposition of the fine. Nothing in this | 0022| section limits the superintendent from pursuing contractual | 0023| remedies, including assessing penalties, pursuant to the terms of a | 0024| contract with a vendor. | 0025| D. The director shall not issue a license to a person who | 0001| has been convicted of a felony or any crime involving gambling, | 0002| moral turpitude or fraud in another jurisdiction. | 0003| E. The director shall not issue a license to a person who | 0004| has had a similar license revoked in another jurisdiction or has | 0005| failed to be issued a similar license for good cause, as determined | 0006| by the superintendent pursuant to a hearing. | 0007| F. If a licensee fails to adequately implement a plan to | 0008| aid in the prevention, education and treatment of compulsive | 0009| gambling, the license of the offending licensee may be suspended, | 0010| limited or revoked by the superintendent or the offending licensee | 0011| may be fined. | 0012| Section 38. [NEW MATERIAL] EMERGENCY ORDERS OF | 0013| SUPERINTENDENT.-- | 0014| A. The superintendent may issue an emergency order for | 0015| suspension or limitation of a license. | 0016| B. An emergency order may be issued only when the | 0017| superintendent finds that a licensee has failed to report, pay or | 0018| truthfully account for and remit any fee or money imposed by or | 0019| owed under the provisions of the Video Gaming Act or attempted in | 0020| any manner to evade or defeat a fee, debt or required payment. | 0021| C. An emergency order shall be issued only when the | 0022| superintendent finds that: | 0023| (1) a licensee has violated any provision of the | 0024| Video Gaming Act and the violation impairs the security of video | 0025| gaming activities; or | 0001| (2) a licensee is convicted of a crime involving a | 0002| felony or gambling, moral turpitude, fraud or theft. | 0003| D. The emergency order shall set forth the grounds upon | 0004| which it is issued, including a statement of facts constituting the | 0005| alleged emergency necessitating the action. | 0006| E. An emergency order may be issued only with the | 0007| approval of and upon signature of the superintendent. | 0008| F. The emergency order is effective immediately upon | 0009| issuance and service upon the licensee. The emergency order | 0010| remains effective until further order of the superintendent. | 0011| G. Within twenty days of the order, the licensee may | 0012| request that a hearing be held by the superintendent regarding the | 0013| issuance and maintenance of the emergency order. The | 0014| superintendent shall then hold a hearing within twenty days and | 0015| enter a final order in the case. | 0016| H. If no hearing is requested in a timely manner, the | 0017| superintendent may enter a final order in the case. | 0018| Section 39. [NEW MATERIAL] COMMUNICATIONS SYSTEM.--Each | 0019| video gaming machine and voucher validation system shall be linked | 0020| to a central communications system to provide auditing program and | 0021| financial information as required by the director. No | 0022| communications system required by the director shall limit | 0023| participation to only one manufacturer of video gaming machines by | 0024| either cost of implementing the necessary program modifications to | 0025| communicate or the inability to communicate with the communications | 0001| system. | 0002| Section 40. [NEW MATERIAL] TRADE NAMES--LIMITATIONS.--No | 0003| licensee may use a name or trade name that contains the words | 0004| casino, gambling, names of traditional casino style games, | 0005| including poker, blackjack or keno, or the name of any city outside | 0006| this state in which a casino exists unless the name has been used | 0007| by the licensee for one year prior to the effective date of the | 0008| Video Gaming Act. However, the director may authorize vendors or | 0009| licensees whose physical location is in San Miguel county to use | 0010| the words "Las Vegas" in their names. | 0011| Section 41. [NEW MATERIAL] VIDEO GAMING LICENSEE--STATE | 0012| REVENUE--DEPOSITS--PROHIBITIONS.-- | 0013| A. The director may require each video gaming licensee to | 0014| deposit all money owed to the state into financial institutions | 0015| designated by the director for credit to the general fund. | 0016| B. The director may authorize the electronic transfer of | 0017| money from the accounts of video gaming licensees to the general | 0018| fund. | 0019| C. No video gaming machine shall be played by and no | 0020| prize shall be awarded to any video gaming licensee or business | 0021| that is engaged in supplying associated equipment, supplies or | 0022| services being used in the operation of video gaming machines or to | 0023| any officer, member of the board of directors, employee or owner of | 0024| a licensee or associated equipment business, unless authorized in | 0025| writing by the director for research purposes. However, no prize | 0001| may be awarded as a result of play for research purposes. | 0002| Section 42. [NEW MATERIAL] CRIMINAL PROHIBITIONS--VIOLATIONS--PENALTIES.-- | 0003| A. It is a misdemeanor for a video gaming licensee to | 0004| fail to make available to the director all records pertaining to | 0005| accounts maintained for revenue derived from the operation of video | 0006| gaming machines. | 0007| B. It is a misdemeanor for any video gaming licensee to | 0008| knowingly allow any person under twenty-one years of age to play a | 0009| video gaming machine. | 0010| C. It is a misdemeanor for a person under twenty-one | 0011| years of age to play a video gaming machine. | 0012| D. It is a misdemeanor to release any information | 0013| obtained through a background investigation performed by the | 0014| security division or the department of public safety without the | 0015| prior written consent of the subject of the investigation, except | 0016| as provided otherwise in the Video Gaming Act. | 0017| E. It is a fourth degree felony to tamper with a video | 0018| gaming machine with intent to interfere with the proper operation | 0019| and reporting of the video gaming machine. | 0020| F. It is a fourth degree felony to tamper with or falsify | 0021| a voucher or to tamper with a video gaming machine with intent to | 0022| manipulate the outcome or payoff of the video gaming machine. | 0023| G. It is a fourth degree felony to possess an unlicensed | 0024| video gaming machine. | 0025| H. It is a fourth degree felony to provide false | 0001| information or intentionally make a material misrepresentation of | 0002| fact to the director or the security director for purposes of | 0003| applying for a contract or a license or for purposes of completing | 0004| a background investigation pursuant to the Video Gaming Act. | 0005| I. Any person convicted of a violation of Subsections A | 0006| through D of this section shall be sentenced pursuant to the | 0007| provisions of Section 31-19-1 NMSA 1978. Any person convicted of a | 0008| violation of Subsections E through H of this section shall be | 0009| sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978. | 0010| Section 43. [NEW MATERIAL] DISTRICT COURT OF SANTA FE | 0011| COUNTY--JURISDICTION--APPEAL.--The district court of Santa Fe | 0012| county has exclusive original jurisdiction of all legal | 0013| proceedings, except criminal actions, related to the | 0014| administration, enforcement or fulfillment of the responsibilities, | 0015| duties or functions performed pursuant to the Video Gaming Act. An | 0016| aggrieved party, including a party subject to a fine, may seek | 0017| review of an order or decision of the superintendent by filing an | 0018| appeal with the district court of Santa Fe county within thirty | 0019| days after the date of the order or decision. | 0020| Section 44. [NEW MATERIAL] EXEMPTION FROM LOCAL TAXES.--Video gaming machines licensed and operated pursuant to the Video | 0021| Gaming Act are exempt from any local excise tax assessed by any | 0022| political subdivision of the state having the power to levy, assess | 0023| or collect such a tax. | 0024| Section 45. [NEW MATERIAL] LOCAL LAWS PREEMPTED--APPLICABILITY OF OTHER LAWS.--The Video Gaming Act shall be applied | 0025| uniformly throughout the state and to all political subdivisions of | 0001| the state, and no local authority shall enact any ordinances or | 0002| regulations that expand or conflict with the provisions of that | 0003| act. | 0004| Section 46. [NEW MATERIAL] VIDEO AMUSEMENT MACHINES--REGISTRATION.-- | 0005| A. Video amusement machines are not subject to the | 0006| licensure provisions of the Video Gaming Act. | 0007| B. A person who offers video amusement machines for use | 0008| by the public shall: | 0009| (1) register with the division; and | 0010| (2) be subject to inspection by the director or the | 0011| security director. | 0012| Section 47. Section 6-24-9 NMSA 1978 (being Laws 1995, | 0013| Chapter 155, Section 9) is amended to read: | 0014| "6-24-9. LOTTERY AND GAMING OVERSIGHT COMMITTEE--[BIPARTISAN] DUTIES.-- | 0015| [A. There is created a joint interim legislative | 0016| committee, which shall be known as the "lottery oversight | 0017| committee". | 0018| B. The lottery oversight committee shall be composed of | 0019| four members. Two members of the house of representatives shall be | 0020| appointed by the speaker of the house of representatives, and two | 0021| members of the senate shall be appointed by the committees' | 0022| committee of the senate or, if the senate appointments are made in | 0023| the interim, by the president pro tempore of the senate after | 0024| consultation with and agreement of a majority of the members of the | 0025| committees' committee. Members shall be appointed so that there is | 0001| a member from each of the major political parties from each house. | 0002| No member who has a financial interest in any lottery contractor, | 0003| lottery retailer or lottery vendor shall be appointed to the | 0004| committee. | 0005| C.] A. The lottery and gaming oversight committee | 0006| created pursuant to the Video Gaming Act shall oversee the | 0007| operations of the authority, as well as periodically review and | 0008| evaluate the success with which the authority is accomplishing its | 0009| duties and operating the lottery pursuant to the New Mexico Lottery | 0010| Act. The committee may conduct any independent audit or | 0011| investigation of the lottery or the authority it deems necessary. | 0012| [D.] B. The lottery and gaming oversight committee | 0013| shall report annually its findings and recommendations on the | 0014| lottery and the operation of the authority to each regular session | 0015| of the legislature." | 0016| Section 48. Section 6-24-27 NMSA 1978 (being Laws 1995, | 0017| Chapter 155, Section 27) is amended to read: | 0018| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT | 0019| AUDITS.-- | 0020| A. The board shall: | 0021| (l) submit quarterly and annual reports to the | 0022| governor, legislative finance committee and lottery and gaming | 0023| oversight committee disclosing the total lottery revenue, prizes, | 0024| commissions, ticket costs, operating expenses and net revenues of | 0025| the authority during the reporting period and, in the annual | 0001| report, describe the organizational structure of the authority and | 0002| summarize the functions performed by each organizational division | 0003| within the authority; | 0004| (2) maintain weekly or more frequent records of | 0005| lottery transactions, including the distribution of lottery tickets | 0006| to retailers, revenue received, claims for prizes, prizes paid, | 0007| prizes forfeited and other financial transactions of the authority; | 0008| and | 0009| (3) use the state government fiscal year. | 0010| B. The board shall provide, for informational purposes, | 0011| to the department of finance and administration and the legislative | 0012| finance committee, by December 1 of each year, a copy of the annual | 0013| proposed operating budget for the authority for the succeeding | 0014| fiscal year. This budget proposal shall also be accompanied by an | 0015| estimate of the net revenues to be deposited in the public school | 0016| capital outlay fund and the lottery tuition fund for the current | 0017| and succeeding fiscal years. | 0018| C. The board shall contract with an independent certified | 0019| public accountant or firm for an annual financial audit of the | 0020| authority. The certified public accountant or firm shall have no | 0021| financial interest in any lottery contractor. The certified public | 0022| accountant or firm shall present an audit report no later than | 0023| March 1 for the prior fiscal year. The certified public accountant | 0024| or firm shall evaluate the internal auditing controls in effect | 0025| during the audit period. The cost of this financial audit shall be | 0001| an operating expense of the authority. The legislative finance | 0002| committee may, at any time, order an audit of any phase of the | 0003| operations of the authority, at the expense of the authority, and | 0004| shall receive a copy of the annual independent financial audit. A | 0005| copy of any audit performed by the certified public accountant or | 0006| ordered by the legislative finance committee shall be transmitted | 0007| to the governor, the speaker of the house of representatives, the | 0008| president pro tempore of the senate, the legislative finance | 0009| committee and the lottery and gaming oversight committee." | 0010| Section 49. Section 6-24-28 NMSA 1978 (being Laws 1995, | 0011| Chapter 155, Section 28) is amended to read: | 0012| "6-24-28. INTERNAL AUDITOR--APPOINTMENT--DUTIES.-- | 0013| A. The board, with the recommendation and assistance of | 0014| the chief executive officer, shall employ an internal auditor. The | 0015| internal auditor, who shall be an employee of the authority, shall | 0016| be qualified by training and experience as an auditor and | 0017| management analyst and have at least five years of auditing | 0018| experience. The internal auditor shall take direction as needed | 0019| from the chief executive officer and be accountable to the board. | 0020| B. The internal auditor shall conduct and coordinate | 0021| comprehensive audits for all aspects of the lottery, provide | 0022| management analysis expertise and carry out any other duties | 0023| specified by the board and by law. The internal auditor shall | 0024| specifically: | 0025| (1) conduct, or provide for through a competitive | 0001| bid process, an annual financial audit and observation audits of | 0002| drawings; | 0003| (2) create an annual audit plan to be approved by | 0004| the board; | 0005| (3) search for means of better efficiency and cost | 0006| savings and waste prevention; | 0007| (4) examine the policy and procedure needs of the | 0008| lottery and determine compliance; | 0009| (5) ensure that proper internal controls exist; | 0010| (6) perform audits that meet or exceed governmental | 0011| audit standards; and | 0012| (7) submit audit reports on a quarterly basis to the | 0013| board, the chief executive officer, the state auditor, the lottery | 0014| and gaming oversight committee and the legislative finance | 0015| committee. | 0016| C. The internal auditor shall conduct audits as needed in | 0017| the areas of: | 0018| (1) personnel security; | 0019| (2) lottery retailer security; | 0020| (3) lottery contractor security; | 0021| (4) security of manufacturing operations of lottery | 0022| contractors; | 0023| (5) security against lottery ticket counterfeiting | 0024| and alteration and other means of fraudulently winning; | 0025| (6) security of drawings among entries or finalists; | 0001| (7) computer security; | 0002| (8) data communications security; | 0003| (9) database security; | 0004| (10) systems security; | 0005| (11) lottery premises and warehouse security; | 0006| (12) security in distribution; | 0007| (13) security involving validation and payment | 0008| procedures; | 0009| (14) security involving unclaimed prizes; | 0010| (15) security aspects applicable to each particular | 0011| lottery game; | 0012| (16) security of drawings in games whenever winners | 0013| are determined by drawings; | 0014| (17) the completeness of security against locating | 0015| winners in lottery games with preprinted winners by persons | 0016| involved in their production, storage, distribution, administration | 0017| or sales; and | 0018| (18) any other aspects of security applicable to any | 0019| particular lottery game and to the lottery and its operations. | 0020| D. Specific audit findings related to security invasion | 0021| techniques are confidential and may be reported only to the chief | 0022| executive officer or his designee, the board, the governor and the | 0023| attorney general." | 0024| Section 50. Section 6-24-33 NMSA 1978 (being Laws 1995, | 0025| Chapter 155, Section 33) is amended to read: | 0001| "6-24-33. UNLAWFUL PURCHASE OF LOTTERY TICKET--PENALTY.-- | 0002| A. It is unlawful for the following persons to purchase a | 0003| lottery ticket or to share knowingly in the lottery winnings of | 0004| another person: | 0005| (1) the chief executive officer, a board member, a | 0006| member of the lottery and gaming oversight committee or an | 0007| employee of the authority; or | 0008| (2) an owner, officer or employee of a lottery | 0009| vendor or, in the case of a corporation, an owner of five percent | 0010| or more of the corporate stock of a lottery vendor. | 0011| B. Notwithstanding the provisions of Subsection A of this | 0012| section, the chief executive officer may authorize in writing any | 0013| employee of the authority and any employee of a lottery contractor | 0014| to purchase a lottery ticket for the purposes of verifying the | 0015| proper operation of the lottery with respect to security, systems | 0016| operation and lottery retailer contract compliance. Any prize | 0017| awarded as a result of such ticket purchase shall become the | 0018| property of the authority and shall be added to the prize pools of | 0019| subsequent lottery games. | 0020| C. Nothing in this section shall prohibit lottery | 0021| retailers or their employees from purchasing lottery tickets or | 0022| from being paid a prize for a winning ticket. | 0023| D. Certain classes of persons who, because of the unique | 0024| nature of the supplies or services they provide for use directly in | 0025| the operation of the lottery, may be prohibited, in accordance with | 0001| rules adopted by the board, from participating in any lottery in | 0002| which such supplies or services are used. | 0003| E. Any person who violates any provision of this section | 0004| for the first time is guilty of a misdemeanor and shall be | 0005| sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0006| F. Any person who violates any provision of this section | 0007| for a second or subsequent time is guilty of a fourth degree felony | 0008| and shall be sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978." | 0009| Section 51. Section 7-1-2 NMSA 1978 (being Laws 1965, Chapter | 0010| 248, Section 2, as amended) is amended to read: | 0011| "7-1-2. APPLICABILITY.--The Tax Administration Act applies to | 0012| and governs: | 0013| A. the administration and enforcement of the following | 0014| taxes or tax acts as they now exist or may hereafter be amended: | 0015| (1) Income Tax Act; | 0016| (2) Withholding Tax Act; | 0017| (3) Gross Receipts and Compensating Tax Act and any | 0018| state gross receipts tax; | 0019| (4) Liquor Excise Tax Act; | 0020| (5) Local Liquor Excise Tax Act; | 0021| [(6) Banking and Financial Corporations Tax Act; | 0022| (7)] (6) any municipal local option gross | 0023| receipts tax; | 0024| [(8)] (7) any county local option gross receipts | 0025| tax; | 0001| [(9)] (8) Special Fuels Supplier Tax Act; | 0002| [(10)] (9) Gasoline Tax Act; | 0003| [(11)] (10) petroleum products loading fee, | 0004| which fee shall be considered a tax for the purpose of the Tax | 0005| Administration Act; | 0006| [(12)] (11) Cigarette Tax Act; | 0007| [(13)] (12) Estate Tax Act; | 0008| [(14)] (13) Railroad Car Company Tax Act; | 0009| [(15)] (14) Investment Credit Act; | 0010| [(16)] (15) Corporate Income Tax Act; | 0011| [(17)] (16) Corporate Income and Franchise Tax | 0012| Act; | 0013| [(18)] (17) Uniform Division of Income for Tax | 0014| Purposes Act; | 0015| [(19)] (18) Multistate Tax Compact; | 0016| [(20)] (19) Tobacco Products Tax Act; | 0017| [(21)] (20) Filmmaker's Credit Act; and | 0018| [(22)] (21) the telecommunications relay service | 0019| surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge | 0020| shall be considered a tax for the purposes of the Tax | 0021| Administration Act; | 0022| B. the administration and enforcement of the following | 0023| taxes, surtaxes, advanced payments or tax acts as they now exist or | 0024| may hereafter be amended: | 0025| (1) Resources Excise Tax Act; | 0001| (2) Severance Tax Act; | 0002| (3) any severance surtax; | 0003| (4) Oil and Gas Severance Tax Act; | 0004| (5) Oil and Gas Conservation Tax Act; | 0005| (6) Oil and Gas Emergency School Tax Act; | 0006| (7) Oil and Gas Ad Valorem Production Tax Act; | 0007| (8) Natural Gas Processors Tax Act; | 0008| (9) Oil and Gas Production Equipment Ad Valorem Tax | 0009| Act; | 0010| (10) Copper Production Ad Valorem Tax Act; and | 0011| (11) any advance payment required to be made by any | 0012| act specified in this subsection, which advance payment shall be | 0013| considered a tax for the purposes of the Tax Administration Act; | 0014| C. the administration and enforcement of the following | 0015| taxes, surcharges, fees or acts as they now exist or may hereafter | 0016| be amended: | 0017| (1) Weight Distance Tax Act; | 0018| (2) Special Fuels Tax Act; | 0019| (3) the workers' compensation fee authorized by | 0020| Section 52-5-19 NMSA 1978, which fee shall be considered a tax for | 0021| purposes of the Tax Administration Act; | 0022| (4) Controlled Substance Tax Act; | 0023| (5) Uniform Unclaimed Property Act; | 0024| (6) 911 emergency surcharge and the network and | 0025| database surcharge, which surcharges shall be considered taxes for | 0001| purposes of the Tax Administration Act; | 0002| (7) the solid waste assessment fee authorized by the | 0003| Solid Waste Act, which fee shall be considered a tax for purposes | 0004| of the Tax Administration Act; [and] | 0005| (8) the water conservation fee imposed by Section | 0006| 74-1-13 NMSA 1978, which fee shall be considered a tax for the | 0007| purposes of the Tax Administration Act; and | 0008| (9) the video gaming tax imposed pursuant to the | 0009| Video Gaming Act; and | 0010| D. the administration and enforcement of all other laws, | 0011| with respect to which the department is charged with | 0012| responsibilities pursuant to the Tax Administration Act, but only | 0013| to the extent that such other laws do not conflict with the Tax | 0014| Administration Act." | 0015| Section 52. A new section of the Tax Administration Act is | 0016| enacted to read: | 0017| "[NEW MATERIAL] DISTRIBUTION OF VIDEO GAMING TAX.--A | 0018| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to | 0019| the general fund of the net receipts attributable to the video | 0020| gaming tax." | 0021| Section 53. A new section of the Gross Receipts and | 0022| Compensating Tax Act is enacted to read: | 0023| "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX.--Receipts of | 0024| video gaming licensees from the operation of video gaming machines | 0025| pursuant to the Video Gaming Act may be deducted from gross | 0001| receipts." | 0002| Section 54. Section 9-16-4 NMSA 1978 (being Laws 1983, | 0003| Chapter 297, Section 20, as amended) is amended to read: | 0004| "9-16-4. DEPARTMENT ESTABLISHED.--There is created in the | 0005| executive branch the "regulation and licensing department". The | 0006| department shall not be a cabinet department. The department shall | 0007| consist of but not be limited to [five] seven divisions as | 0008| follows: | 0009| A. the administrative services division; | 0010| B. the construction industries division; | 0011| C. the financial institutions division; | 0012| D. the securities division; [and] | 0013| E. the manufactured housing division; | 0014| F. the alcohol and gaming division; and | 0015| G. the gaming security division." | 0016| Section 55. 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 declared | 0022| to be public policy of this state that all persons are entitled to | 0023| the greatest possible information regarding the affairs of | 0024| government and the official acts of those officers and employees | 0025| who represent them. The formation of public policy or the conduct | 0001| of business by vote shall not be conducted in closed meeting. All | 0002| meetings of any public body except the legislature and the courts | 0003| shall be public meetings and all persons so desiring shall be | 0004| permitted to attend and listen to the deliberations and | 0005| proceedings. Reasonable efforts shall be made to accommodate the | 0006| use of audio and video recording devices. | 0007| B. All meetings of a quorum of members of any board, | 0008| commission, administrative adjudicatory body or other policymaking | 0009| body of any state agency, any agency or authority of any county, | 0010| municipality, district or any political subdivision, held for the | 0011| purpose of formulating public policy, including the development of | 0012| personnel policy, rules, regulations or ordinances, discussing | 0013| public business or for the purpose of taking any action within the | 0014| authority of or the delegated authority of any board, commission or | 0015| other policymaking body are declared to be public meetings open to | 0016| the public at all times, except as otherwise provided in the | 0017| constitution of New Mexico or the Open Meetings Act. No public | 0018| meeting once convened that is otherwise required to be open | 0019| pursuant to the Open Meetings Act shall be closed or dissolved into | 0020| small groups or committees for the purpose of permitting the | 0021| closing of the meeting. | 0022| C. If otherwise allowed by law or rule of the public | 0023| body, a member of a public body may participate in a meeting of the | 0024| public body by means of a conference telephone or other similar | 0025| communications equipment when it is otherwise difficult or | 0001| impossible for the member to attend the meeting in person, provided | 0002| that each member participating by conference telephone can be | 0003| identified when speaking, all participants are able to hear each | 0004| other at the same time and members of the public attending the | 0005| meeting are able to hear any member of the public body who speaks | 0006| during the meeting. | 0007| D. Any meetings at which the discussion or adoption of | 0008| any proposed resolution, rule, regulation or formal action occurs | 0009| and at which a majority or quorum of the body is in attendance, and | 0010| any closed meetings, shall be held only after reasonable notice to | 0011| the public. The affected body shall determine at least annually in | 0012| a public meeting what notice for a public meeting is reasonable | 0013| when applied to that body. That notice shall include broadcast | 0014| stations licensed by the federal communications commission and | 0015| newspapers of general circulation that have provided a written | 0016| request for such notice. | 0017| E. A public body may recess and reconvene a meeting to a | 0018| day subsequent to that stated in the meeting notice if, prior to | 0019| recessing, the public body specifies the date, time and place for | 0020| continuation of the meeting, and, immediately following the | 0021| recessed meeting, posts notice of the date, time and place for the | 0022| reconvened meeting on or near the door of the place where the | 0023| original meeting was held and in at least one other location | 0024| appropriate to provide public notice of the continuation of the | 0025| meeting. Only matters appearing on the agenda of the original | 0001| meeting may be discussed at the reconvened meeting. | 0002| F. Meeting notices shall include an agenda containing a | 0003| list of specific items of business to be discussed or transacted at | 0004| the meeting or information on how the public may obtain a copy of | 0005| such an agenda. Except in the case of an emergency, the agenda | 0006| shall be available to the public at least twenty-four hours prior | 0007| to the meeting. Except for emergency matters, a public body shall | 0008| take action only on items appearing on the agenda. For purposes of | 0009| this subsection, an "emergency" refers to unforeseen circumstances | 0010| that, if not addressed immediately by the public body, will likely | 0011| result in injury or damage to persons or property or substantial | 0012| financial loss to the public body. | 0013| G. The board, commission or other policymaking body shall | 0014| keep written minutes of all its meetings. The minutes shall | 0015| include at a minimum the date, time and place of the meeting, the | 0016| names of members in attendance and those absent, the substance of | 0017| the proposals considered and a record of any decisions and votes | 0018| taken that show how each member voted. All minutes are open to | 0019| public inspection. Draft minutes shall be prepared within ten | 0020| working days after the meeting and shall be approved, amended or | 0021| disapproved at the next meeting where a quorum is present. Minutes | 0022| shall not become official until approved by the policymaking body. | 0023| H. The provisions of Subsections A, B and G of this | 0024| section do not apply to: | 0025| (1) meetings pertaining to issuance, suspension, | 0001| renewal or revocation of a license, except that a hearing at which | 0002| evidence is offered or rebutted shall be open. All final actions | 0003| on the issuance, suspension, renewal or revocation of a license | 0004| shall be taken at an open meeting; | 0005| (2) limited personnel matters; provided that for | 0006| purposes of the Open Meetings Act, "limited personnel matters" | 0007| means the discussion of hiring, promotion, demotion, dismissal, | 0008| assignment or resignation of or the investigation or consideration | 0009| of complaints or charges against any individual public employee; | 0010| provided further that this subsection is not to be construed as to | 0011| exempt final actions on personnel from being taken at open public | 0012| meetings, nor does it preclude an aggrieved public employee from | 0013| demanding a public hearing. Judicial candidates interviewed by any | 0014| commission shall have the right to demand an open interview; | 0015| (3) deliberations by a public body in connection | 0016| with an administrative adjudicatory proceeding. For purposes of | 0017| this paragraph, an "administrative adjudicatory proceeding" means a | 0018| proceeding brought by or against a person before a public body in | 0019| which individual legal rights, duties or privileges are required by | 0020| law to be determined by the public body after an opportunity for a | 0021| trial-type hearing. Except as otherwise provided in this section, | 0022| the actual administrative adjudicatory proceeding at which evidence | 0023| is offered or rebutted and any final action taken as a result of | 0024| the proceeding shall occur in an open meeting; | 0025| (4) the discussion of personally identifiable | 0001| information about any individual student, unless the student, his | 0002| parent or guardian requests otherwise; | 0003| (5) meetings for the discussion of bargaining | 0004| strategy preliminary to collective bargaining negotiations between | 0005| the policymaking body and a bargaining unit representing the | 0006| employees of that policymaking body and collective bargaining | 0007| sessions at which the policymaking body and the representatives of | 0008| the collective bargaining unit are present; | 0009| (6) that portion of meetings at which a decision | 0010| concerning purchases in an amount exceeding two thousand five | 0011| hundred dollars ($2,500) that can be made only from one source, | 0012| that portion of a meeting dealing with confidential or proprietary | 0013| information regarding procurement made pursuant to the Video Gaming | 0014| Act and that portion of meetings at which the contents of | 0015| competitive sealed proposals solicited pursuant to the Procurement | 0016| Code are discussed during the contract negotiation process. The | 0017| actual approval of purchase of the item or final action regarding | 0018| the selection of a contractor shall be made in an open meeting; | 0019| (7) meetings subject to the attorney-client | 0020| privilege pertaining to threatened or pending litigation in which | 0021| the public body is or may become a participant; | 0022| (8) meetings for the discussion of the purchase, | 0023| acquisition or disposal of real property or water rights by the | 0024| public body; and | 0025| (9) those portions of meetings of committees or | 0001| boards of public hospitals that receive less than fifty percent of | 0002| their operating budget from direct public funds and appropriations | 0003| where strategic and long-range business plans are discussed. | 0004| I. If any meeting is closed pursuant to the exclusions | 0005| contained in Subsection H of this section, the closure: | 0006| (1) if made in an open meeting, shall be approved by | 0007| a majority vote of a quorum of the policymaking body; the authority | 0008| for the closure and the subject to be discussed shall be stated | 0009| with reasonable specificity in the motion calling for the vote on a | 0010| closed meeting; the vote shall be taken in an open meeting; and the | 0011| vote of each individual member shall be recorded in the minutes. | 0012| Only those subjects announced or voted upon prior to closure by the | 0013| policymaking body may be discussed in a closed meeting; and | 0014| (2) if called for when the policymaking body is not | 0015| in an open meeting, shall not be held until public notice, | 0016| appropriate under the circumstances, stating the specific provision | 0017| of the law authorizing the closed meeting and stating with | 0018| reasonable specificity the subject to be discussed is given to the | 0019| members and to the general public. | 0020| J. Following completion of any closed meeting, the | 0021| minutes of the open meeting that was closed or the minutes of the | 0022| next open meeting if the closed meeting was separately scheduled | 0023| shall state that the matters discussed in the closed meeting were | 0024| limited only to those specified in the motion for closure or in the | 0025| notice of the separate closed meeting. This statement shall be | 0001| approved by the public body under Subsection G of this section as | 0002| part of the minutes." | 0003| Section 56. Section 13-1-98 NMSA 1978 (being Laws 1984, | 0004| Chapter 65, Section 71, as amended) is amended to read: | 0005| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The | 0006| provisions of the Procurement Code [shall] do not apply to: | 0007| A. procurement of items of tangible personal property or | 0008| services by a state agency or a local public body from a state | 0009| agency, a local public body or external procurement unit except as | 0010| otherwise provided in Sections 13-1-135 through 13-1-137 NMSA 1978; | 0011| B. procurement of tangible personal property or services | 0012| for the governor's mansion and grounds; | 0013| C. printing and duplicating contracts involving materials | 0014| [which] that are required to be filed in connection with | 0015| proceedings before administrative agencies or state or federal | 0016| courts; | 0017| D. purchases of publicly provided or publicly regulated | 0018| gas, electricity, water, sewer and refuse collection services; | 0019| E. purchases of books and periodicals from the publishers | 0020| or copyright holders thereof; | 0021| F. travel or shipping by common carrier or by private | 0022| conveyance or to meals and lodging; | 0023| G. purchase of livestock at auction rings or to the | 0024| procurement of animals to be used for research and experimentation | 0025| or exhibit; | 0001| H. contracts with businesses for public school | 0002| transportation services; | 0003| I. procurement of tangible personal property or services, | 0004| as defined by Sections 13-l-87 and 13-l-93 NMSA 1978, by the | 0005| corrections industries division of the corrections department | 0006| pursuant to regulations adopted by the corrections [industries] | 0007| commission, which shall be reviewed by the purchasing division of | 0008| the general services department prior to adoption; | 0009| J. minor purchases consisting of magazine subscriptions, | 0010| conference registration fees and other similar purchases where | 0011| prepayments are required; | 0012| K. municipalities having adopted home rule charters and | 0013| having enacted their own purchasing ordinances; | 0014| L. the issuance, sale and delivery of public securities | 0015| pursuant to the applicable authorizing statute, with the exception | 0016| of bond attorneys and general financial consultants; | 0017| M. contracts entered into by a local public body with a | 0018| private independent contractor for the operation, or provision and | 0019| operation, of a jail pursuant to Sections 33-3-26 and 33-3-27 NMSA | 0020| 1978; | 0021| N. contracts for maintenance of grounds and facilities at | 0022| highway rest stops and other employment opportunities, excluding | 0023| those intended for the direct care and support of persons with | 0024| handicaps, entered into by state agencies with private, nonprofit, | 0025| independent contractors who provide services to persons with | 0001| handicaps; | 0002| O. contracts and expenditures for services to be paid or | 0003| compensated by money or other property transferred to New Mexico | 0004| law enforcement agencies by the United States department of justice | 0005| drug enforcement administration; | 0006| P. contracts for retirement and other benefits pursuant | 0007| to Sections 22-11-47 through 22-11-52 NMSA 1978; [and] | 0008| Q. contracts with professional entertainers; and | 0009| R. any procurement made pursuant to the Video Gaming | 0010| Act." | 0011| Section 57. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0012| Chapter 303, Section 19-1, as amended) is amended to read: | 0013| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0014| Chapter 30, Article 19 NMSA 1978: | 0015| A. "antique gambling device" means a gambling device | 0016| twenty-five years of age or older and substantially in original | 0017| condition that is not used for gambling or commercial gambling or | 0018| located in a gambling place; | 0019| B. "bet" means a bargain in which the parties agree that, | 0020| dependent upon chance, even though accompanied by some skill, one | 0021| stands to win or lose anything of value specified in the agreement. | 0022| A "bet" does not include: | 0023| (1) bona fide business transactions that are valid | 0024| under the law of contracts, including [without limitation]: | 0025| (a) contracts for the purchase or sale, at a | 0001| future date, of securities or other commodities; and | 0002| (b) agreements to compensate for loss caused by | 0003| the happening of the chance, including [without limitation] | 0004| contracts for indemnity or guaranty and life or health and accident | 0005| insurance; | 0006| (2) offers of purses, prizes or premiums to the | 0007| actual contestants in any bona fide contest for the determination | 0008| of skill, speed, strength or endurance or to the bona fide owners | 0009| of animals or vehicles entered in such contest; | 0010| (3) a lottery as defined in this section; or | 0011| (4) betting otherwise permitted by law; | 0012| [C. "lottery" means an enterprise other than the New | 0013| Mexico state lottery established and operated pursuant to the New | 0014| Mexico Lottery Act wherein, for a consideration, the participants | 0015| are given an opportunity to win a prize, the award of which is | 0016| determined by chance, even though accompanied by some skill. As | 0017| used in this subsection, "consideration" means anything of | 0018| pecuniary value required to be paid to the promoter in order to | 0019| participate in such enterprise] | 0020| C. "calcutta" means a pool associated with an athletic | 0021| sporting event in which a party invests in a competitor or team and | 0022| agrees to a bargain that, dependent upon chance even though | 0023| accompanied by some skill on the part of oneself or another, | 0024| results in the loss of the party's initial investment or winning of | 0025| a percentage of the net pool, where the percentages of the net pool | 0001| allocated to winners are predetermined and specified by the rules | 0002| of the sponsor; | 0003| D. "gambling device" means a contrivance other than an | 0004| antique gambling device that, for a consideration, affords the | 0005| player an opportunity to obtain anything of value, the award of | 0006| which is determined by chance, even though accompanied by some | 0007| skill, [and] whether or not the prize is automatically paid by | 0008| the device and that is not licensed for use pursuant to the Video | 0009| Gaming Act; | 0010| E. "gambling place" means [any] a building or tent, | 0011| [any] a vehicle, whether self-propelled or not, or [any] a | 0012| room within any of them, that is not within the premises of a | 0013| person licensed as a lottery retailer or to provide video gaming | 0014| pursuant to the New Mexico Lottery Act or the Video Gaming Act and | 0015| one of whose principal uses is: | 0016| (1) making and settling of bets; | 0017| (2) receiving, holding, recording or forwarding bets | 0018| or offers to bet; | 0019| (3) conducting lotteries; or | 0020| (4) playing gambling devices; | 0021| F. "lottery" means an enterprise wherein, for a | 0022| consideration, the participants are given an opportunity to win a | 0023| prize, the award of which is determined by chance, even though | 0024| accompanied by some skill. "Lottery" does not include the New | 0025| Mexico state lottery established and operated pursuant to the New | 0001| Mexico Lottery Act or video gaming that is licensed and operated | 0002| pursuant to the Video Gaming Act. As used in this section, | 0003| "consideration" means anything of pecuniary value required to be | 0004| paid to the promoter in order to participate in a gambling or | 0005| gaming enterprise; and | 0006| G. "video gaming machine" means any electronic or | 0007| electromechanical device, contrivance or machine that is available | 0008| for play upon the payment of a consideration and when played may | 0009| entitle the player to receive or may deliver to the player | 0010| something of value, including currency, coins, premiums, | 0011| merchandise, credits, tokens or a voucher, whether by reason of the | 0012| skill of the player or application of the element of chance, or | 0013| both; "video gaming machine" does not include video amusement | 0014| machines." | 0015| Section 58. Section 30-19-6 NMSA 1978 (being Laws 1963, Chap- | 0016| ter 303, Section 19-6, as amended) is amended to read: | 0017| "30-19-6. [PERMISSIVE LOTTERY] AUTHORIZED GAMING--FAIRS--THEATERS--TAX-EXEMPT ORGANIZATIONS--CALCUTTAS.-- | 0018| A. Nothing in [Article 19] Chapter 30, Article 19 | 0019| NMSA 1978 [shall be construed to apply to any] prohibits a sale | 0020| or drawing of [any] a prize at [any] a fair held in this | 0021| state for the benefit of [any] a church, public library or | 0022| religious society [situate or being] located in this state, or | 0023| for charitable purposes when all the proceeds of [such] the | 0024| fair [shall be] are expended in this state for the benefit of | 0025| [such] the church, public library, religious society or | 0001| charitable purposes. | 0002| A [lottery shall be operated] calcutta, sale or drawing | 0003| conducted pursuant to this subsection is for the benefit of the | 0004| organization or charitable purpose only [when] if the entire | 0005| proceeds [of the lottery] from the calcutta, sale or drawing go | 0006| to the organization or charitable purpose and no part of [such] | 0007| the proceeds go to any individual member or employee [thereof] | 0008| of the organization. | 0009| B. Nothing in [Article 19] Chapter 30, Article 19 | 0010| NMSA 1978 [shall be held to prohibit any] prohibits a bona fide | 0011| motion picture [theatre] theater from offering prizes of cash | 0012| or merchandise for advertising purposes, in connection with | 0013| [such] the business of the theater or for the purpose of | 0014| stimulating business, whether or not [any] consideration other | 0015| than a monetary consideration in excess of the regular price of | 0016| admission is [exacted] charged for participation in drawings | 0017| for prizes. | 0018| C. Nothing in [Article 19] Chapter 30, Article 19 | 0019| NMSA 1978 [shall be held to apply to any] prohibits a bona fide | 0020| county fair, including [fairs] fair for more than one county, | 0021| [which shall have] that has been held annually at the same | 0022| location for at least two years [and which shall offer] from | 0023| offering prizes of livestock or poultry in connection with | 0024| [such] the fair [when] if the proceeds of [such] the | 0025| drawings [shall be] are used for the benefit of [said] the | 0001| fair. | 0002| [D. Nothing in Article 19, Chapter 30 NMSA 1978 shall be | 0003| construed to apply to any lottery operated by an organization | 0004| exempt from the state income tax pursuant to Subsection C of | 0005| Section 7-2-4 NMSA 1978 and not subject to the provisions of | 0006| Subsection A of this section; provided that: | 0007| (1) no more than two lotteries shall be operated in | 0008| any year by such an organization; | 0009| (2) all the gross proceeds less the reasonable cost | 0010| of prizes of any lottery operated by such an organization shall be | 0011| expended in the state for the benefit of the organization or public | 0012| purposes; and | 0013| (3) no part of the proceeds of any lottery shall go | 0014| to any individual member or employee of any organization except as | 0015| payment for the purchase of prizes at no more than the reasonable | 0016| retail price.] | 0017| D. Nothing in Chapter 30, Article 19 NMSA 1978 prohibits | 0018| an organization that is exempt from state income tax pursuant to | 0019| Section 7-2-4 NMSA 1978 from conducting bingo games, raffles, | 0020| lotteries, calcuttas or table games, including poker, craps, | 0021| blackjack, roulette and the like, at a fundraising event if: | 0022| (1) the fundraising events are conducted no more | 0023| than twice in a calendar year by the qualifying organization; | 0024| (2) the only persons authorized to participate in | 0025| the operation or management of the fundraising event are: | 0001| (a) bona fide members of the qualifying | 0002| organization who are not paid for their services in the operation | 0003| or management of the event; or | 0004| (b) persons who provide goods or services for | 0005| the fundraising event for a flat fee or an hourly fee pursuant to a | 0006| written contract with the qualifying organization; | 0007| (3) no person receives any part of the proceeds of | 0008| the fundraising event except: | 0009| (a) as payment for prizes purchased at no more | 0010| than the reasonable retail prices for the prizes; or | 0011| (b) pursuant to a contract described in | 0012| Subparagraph (b) of Paragraph (2) of this subsection; | 0013| (4) the net proceeds of the fundraising event are | 0014| expended in the state for the benefit of the qualifying | 0015| organization or purposes for which it was formed; | 0016| (5) gross revenue, expenses, prizes paid and the | 0017| date, time and location of the fundraising event are reported to | 0018| the alcohol and gaming division of the regulation and licensing | 0019| department within thirty days after the event; | 0020| (6) the qualifying organization conducting the | 0021| fundraising event maintains records for a period of one year after | 0022| the date of the event that accurately show the gross revenue | 0023| generated by the event, details of the expenses of conducting the | 0024| event and details of how the gross revenue is used, and the | 0025| qualifying organization makes the records available for review by | 0001| the director of the alcohol and gaming division of the regulation | 0002| and licensing department or the attorney general, or both, at their | 0003| request; | 0004| (7) no video gaming machines and no slot machines | 0005| are operated during the fundraising event; | 0006| (8) no persons less than the age of twenty-one are | 0007| allowed to participate in the operation or management of the | 0008| fundraising event or to play any game at the event; and | 0009| (9) the fundraising event is conducted pursuant to a | 0010| permit issued by the alcohol and gaming division of the regulation | 0011| and licensing department. | 0012| E. Nothing in Chapter 30, Article 19 NMSA 1978 prohibits | 0013| or applies to gaming activities permitted and licensed pursuant to | 0014| the New Mexico Lottery Act or the Video Gaming Act. | 0015| F. As used in Subsections A and D of this section, | 0016| "lottery" means a paper lottery, a raffle, paper pull tabs or other | 0017| games of chance, not including any electronic facsimile of a game | 0018| of chance played on a video gaming machine." | 0019| Section 59. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0020| Chapter 39, Section 96) is amended to read: | 0021| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0022| A. It is a violation of the Liquor Control Act for a li- | 0023| censee to knowingly allow commercial gambling on the licensed | 0024| premises. | 0025| B. In addition to any criminal penalties, any person who | 0001| violates Subsection A of this section may have his license | 0002| suspended or revoked or a fine imposed, or both, pursuant to the | 0003| Liquor Control Act. | 0004| C. [For purposes of] As used in this section: (1) "commercial gambling" means: | 0005| [(1)] (a) participating in the earnings of | 0006| or operating a gambling place; | 0007| [(2)] (b) receiving, recording or | 0008| forwarding bets or offers to bet; | 0009| [(3)] (c) possessing facilities with the | 0010| intent to receive, record or forward bets or offers to bet; | 0011| [(4)] (d) for gain, becoming a custodian of | 0012| anything of value bet or offered to be bet; | 0013| [(5)] (e) conducting a lottery where both | 0014| the consideration and the prize are money or whoever with intent to | 0015| conduct a lottery possesses facilities to do so; or | 0016| [(6)] (f) setting up for use for the | 0017| purpose of gambling, or collecting the proceeds of, any gambling | 0018| device or game; and | 0019| (2) "commercial gambling" does not include: | 0020| (a) activities authorized pursuant to the New | 0021| Mexico Lottery Act; | 0022| (b) the conduct of activities pursuant to | 0023| Subsection D of Section 30-19-6 NMSA 1978; and | 0024| (c) the conduct of video gaming authorized | 0025| pursuant to the Video Gaming Act on the licensed premises of a | 0001| video gaming licensee licensed pursuant to that act." | 0002| Section 60. APPROPRIATION.--One million dollars ($1,000,000) | 0003| is appropriated from the general fund to the regulation and | 0004| licensing department for expenditure in fiscal years 1996 and 1997 | 0005| for the purpose of implementation of the Video Gaming Act. Any | 0006| unexpended or unencumbered balance remaining at the end of fiscal | 0007| year 1997 shall revert to the general fund. | 0008| Section 61. SEVERABILITY.--If any part or application of the | 0009| Video Gaming Act is held invalid, the remainder or its application | 0010| to other situations or persons shall not be affected. | 0011| Section 62. EFFECTIVE DATE.--The effective date of the | 0012| provisions of this act shall be the date on which tribal-state | 0013| gaming compacts negotiated pursuant to the provisions of the | 0014| federal Indian Gaming Regulatory Act are approved by the | 0015| legislature, the governor and the pueblos of Taos, San Juan, Santa | 0016| Clara, San Ildefonso, Nambe, Pojoaque, Tesuque, Santo Domingo, San | 0017| Felipe, Santa Ana, Sandia, Isleta, Laguna and Acoma and the | 0018| Mescalero Apache and Jicarilla Apache tribes. | 0019| Section 63. EMERGENCY.--It is necessary for the public peace, | 0020| health and safety that this act take effect immediately. | 0021|  FORTY-SECOND LEGISLATURE | 0022| SECOND SESSION | 0023| | 0024| | 0025| February 3, 1996 | 0001| | 0002| | 0003| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0004| WHOLE SUBSTITUTE FOR SENATE | 0005| BILL 701 | 0006| | 0007| Amendment sponsored by Senator JOHN ARTHUR SMITH | 0008| | 0009| | 0010| 1. On page 40, line 11, after the semicolon strike "and". | 0011| | 0012| 2. On page 40, between lines 11 and 12, insert the following: | 0013| | 0014| "(2) class B counties: | 0015| | 0016| (a) having populations as determined by the | 0017| 1990 federal census of not more than ten thousand persons and not | 0018| less than nine thousand persons; and | 0019| | 0020| (b) having a 1993 net taxable value of | 0021| property, as that term is defined in the Property Tax Code, of at | 0022| least one hundred five million dollars ($105,000,000) but not more | 0023| than one hundred ten million dollars ($110,000,000); and". | 0024| | 0025| 3. Renumber the succeeding paragraph accordingly. | 0001| | 0002| | 0003| __________________________ | 0004| John Arthur Smith | 0005| | 0006| | 0007| Adopted ___________________ Not Adopted _____________________ | 0008| (Chief Clerk) (Chief Clerk) | 0009| | 0010| Date _________________ FORTY-SECOND LEGISLATURE | 0011| SECOND SESSION | 0012| | 0013| | 0014| February 3, 1996 | 0015| | 0016| | 0017| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0018| WHOLE SUBSTITUTE FOR | 0019| SENATE | 0020| BILL 701 | 0021| | 0022| Amendment sponsored by Senator Tom Rutherford | 0023| | 0024| | 0025| 1. On page 36, line 10, following the period insert "No | 0001| racetrack located on property owned by the state may apply for or | 0002| be issued a license as a video gaming licensee.". | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| __________________________ | 0011| Tom Rutherford | 0012| | 0013| | 0014| | 0015| | 0016| Adopted ___________________ Not Adopted _____________________ | 0017| (Chief Clerk) (Chief Clerk) | 0018| | 0019| | 0020| Date _________________ | 0021| FORTY-SECOND LEGISLATURE | 0022| SECOND SESSION | 0023| | 0024| | 0025| February 3, 1996 | 0001| | 0002| | 0003| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE WHOLE SUBSTITUTE FOR SENATE | 0004| BILL 701 | 0005| | 0006| Amendment sponsored by Senator Ben D. Altamirano | 0007| | 0008| | 0009| 1. On page 3, between lines 16 and 17, insert the following | 0010| new subsection: | 0011| | 0012| "G. "electronic bingo device" means a portable, | 0013| electronic contrivance that records and stores card information, | 0014| matches the numbers that are inserted by the user against the | 0015| stored cared information, is used in conjunction with an | 0016| authorized bingo game and is not connected, attached or otherwise | 0017| linked in any manner during the course of a game to a central | 0018| computer, sales station or any other device that could alter the | 0019| cards or numbers;". | 0020| | 0021| 2. Reletter the succeeding subsections accordingly. | 0022| | 0023| 3. On page 7, line 2, after the semicolon insert ""video | 0024| amusement machine" does not include an electronic bingo device;". | 0025| | 0001| 4. On page 7, line 18, after "machines" insert "or electronic | 0002| bingo devices". | 0003| | 0004| __________________________ | 0005| Ben D. Altamirano | 0006| | 0007| Adopted ___________________ Not Adopted _____________________ | 0008| (Chief Clerk) (Chief Clerk) | 0009| | 0010| Date _________________ FORTY-SECOND LEGISLATURE | 0011| SECOND SESSION, 1996 | 0012| | 0013| | 0014| | 0015| December 17, 1997 | 0016| | 0017| | 0018| SENATE FLOOR AMENDMENT number to SENATE COMMITTEE OF THE | 0019| WHOLE | 0020| SUBSTITUTE FOR SENATE BILL 701, | 0021| as amended, | 0022| with emergency clause | 0023| | 0024| AMENDMENT sponsored by SENATOR RHODES | 0025| | 0001| 1. On page 52, line 22, following the period, insert the | 0002| following: | 0003| | 0004| "No licensee may use lights commonly known as spot or search | 0005| lights on the premises or as part of an advertising campaign.". | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| | 0012| Senator Virgil O. Rhodes | 0013| | 0014| | 0015| | 0016| Adopted Not Adopted | 0017| | 0018| (Chief Clerk) (Chief Clerk) | 0019| | 0020| | 0021| Date | 0022| | 0023| | 0024| | 0025| S0701FS4 | 0001| FORTY-SECOND LEGISLATURE | 0002| SECOND SESSION | 0003| | 0004| | 0005| February 4, 1996 | 0006| | 0007| | 0008| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0009| WHOLE SUBSTITUTE FOR | 0010| SENATE | 0011| BILL 701 | 0012| | 0013| Amendment sponsored by Senator Roman M. Maes III | 0014| | 0015| 1. On page 83, between lines 13 and 14, insert the following | 0016| new sections: | 0017| | 0018| "Section 59. Section 41-11-1 NMSA 1978 (being Laws 1983, | 0019| Chapter 328, Section 1, as amended) is amended to read: | 0020| | 0021| "41-11-1. TORT LIABILITY FOR ALCOHOLIC LIQUOR SALES OR | 0022| SERVICE.-- | 0023| | 0024| A. No civil liability shall be predicated upon the | 0025| breach of Section 60-7A-16 NMSA 1978 by a licensee, except in the | 0001| case of the licensee [who]: | 0002| | 0003| (1) who sold or served alcohol to a person who | 0004| was intoxicated; | 0005| | 0006| (2) to whom it was reasonably apparent [to the | 0007| licensee] that the person buying or apparently receiving service | 0008| of alcoholic beverages was intoxicated; and | 0009| | 0010| (3) [the licensee] who knew from the | 0011| circumstances that the person buying or receiving service of | 0012| alcoholic beverages was intoxicated. | 0013| | 0014| B. No person who was sold or served alcoholic beverages | 0015| while intoxicated shall be entitled to collect any damages or | 0016| obtain any other relief against the licensee who sold or served | 0017| the | 0018| alcoholic beverages unless the licensee is determined to have | 0019| acted with gross negligence and reckless disregard for the safety | 0020| of the person who purchased or was served the alcoholic beverages. | 0021| | 0022| C. No licensee is chargeable with knowledge of previous | 0023| acts by which a person becomes intoxicated at other locations un- | 0024| known to the licensee. | 0025| | 0001| D. As used in this section: | 0002| | 0003| (1) "licensee" means: | 0004| | 0005| (a) a person licensed under the | 0006| provisions of the Liquor Control Act and the agents or servants of | 0007| the licensee; or | 0008| | 0009| (b) an Indian nation, tribe or pueblo that is | 0010| a party to a valid gaming compact with the state and that | 0011| dispenses alcoholic beverages to persons in connection with its | 0012| operation of gaming activities pursuant to that compact if the | 0013| compact contains a provision binding the Indian nation, tribe or | 0014| pueblo to accept the provisions of this section and to waive | 0015| sovereign immunity in any action brought in a court of competent | 0016| jurisdiction to enforce a claim arising under this section; and | 0017| | 0018| (2) "intoxicated" means the impairment of a | 0019| person's mental and physical faculties as a result of alcoholic | 0020| beverage use so as to substantially diminish that person's ability | 0021| to think and act in a manner in which an ordinary prudent person, | 0022| in full | 0023| possession of his faculties, would think and act under like | 0024| circumstances. | 0025| | 0001| E. No person who has gratuitously provided alcoholic | 0002| beverages to a guest in a social setting may be held liable in | 0003| damages to any person for bodily injury, death or property damage | 0004| arising from the intoxication of the social guest unless the | 0005| alcoholic beverages were provided recklessly in disregard of the | 0006| rights of others, including the social guest. | 0007| | 0008| F. A licensee may be civilly liable for the negligent | 0009| violation of [Sections] Section 60-7B-l [and 60-7B-l.l] NMSA | 0010| l978. The fact-finder shall consider all the circumstances of the | 0011| sale in determining whether there is negligence such as the | 0012| representation used to obtain the alcoholic beverage. It shall | 0013| not be negligence | 0014| per se to violate [Sections] Section 60-7B-l [and 60-7B-l.l] | 0015| NMSA l978. | 0016| | 0017| G. A licensee shall not be held civilly liable pursuant | 0018| to the provisions of Subsection F of this section except when: | 0019| | 0020| (1) it is demonstrated by the preponderance of the | 0021| evidence that the licensee knew, or that a reasonable person in | 0022| the same circumstances would have known, that the person who | 0023| received the alcoholic beverages was a minor; and | 0024| | 0025| (2) the licensee's violation of Section 60-7B-l | 0001| [or | 0002| 60-7B-1.1] NMSA 1978 was a proximate cause of the plaintiff's | 0003| injury, death or property damage. | 0004| | 0005| H. No person may seek relief in a civil claim against a | 0006| licensee or a social host for injury or death or damage to | 0007| property [which] that was proximately caused by the sale, | 0008| service or provision of alcoholic beverages except as provided in | 0009| this section. | 0010| | 0011| I. Liability arising under this section shall not exceed | 0012| fifty thousand dollars ($50,000) for bodily injury to or death of | 0013| one person in each transaction or occurrence or, subject to that | 0014| limitation for one person, one hundred thousand dollars ($100,000) | 0015| for bodily injury to or death of two or more persons in each | 0016| transaction or occurrence, and twenty thousand dollars ($20,000) | 0017| for property damage in each transaction or occurrence." | 0018| | 0019| Section 60. Section 60-3A-5 NMSA 1978 (being Laws 1981, | 0020| Chapter 39, Section 112, as amended) is amended to read: | 0021| | 0022| "60-3A-5. EXEMPTIONS FROM ACT.--Except for the specific | 0023| exception in Subsection D of this section, nothing in the Liquor | 0024| Control Act applies to: | 0025| | 0001| A. the transportation of alcoholic beverages through New | 0002| Mexico; | 0003| | 0004| B. the transportation of alcoholic beverages into a | 0005| United States customs bonded warehouse located in New Mexico; | 0006| | 0007| C. ethyl alcohol intended for or used for any of the | 0008| following purposes: | 0009| | 0010| (1) scientific, mechanical, industrial, medical, | 0011| chemical or culinary purposes; | 0012| | 0013| (2) use by those authorized to procure the same | 0014| tax-free, as provided by the acts of congress and regulations | 0015| promulgated thereunder; or | 0016| | 0017| (3) in the manufacture of denatured alcohol | 0018| produced and used as provided by the acts of congress and | 0019| regulations | 0020| promulgated thereunder; or | 0021| | 0022| D. the sale, service, possession or public consumption | 0023| of alcoholic beverages by any person within the boundaries of | 0024| lands over which an Indian nation, tribe or pueblo has | 0025| jurisdiction if the alcoholic beverages are purchased from New | 0001| Mexico wholesalers and if the sale, service, possession or public | 0002| consumption of alcoholic beverages is authorized by the laws of | 0003| the Indian nation, tribe or pueblo having jurisdiction over those | 0004| lands and is consistent with the ordinance of the Indian nation, | 0005| tribe or pueblo certified by the secretary of the interior and | 0006| published in the federal register according to the laws of the | 0007| United States, but this exemption does not relieve an Indian | 0008| nation, tribe or pueblo defined as a licensee | 0009| pursuant to the provisions of Subsection D of Section 41-11-1 NMSA | 0010| 1978 from the prohibition of Section 60-7A-16 NMSA 1978 and from | 0011| | 0012| liability pursuant to Section 41-11-1 NMSA 1978 predicated upon a | 0013| violation of Section 60-7A-16 NMSA 1978."". | 0014| | 0015| 2. Renumber the succeeding sections accordingly. | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| | 0022| __________________________ | 0023| Roman M. Maes III | 0024| | 0025| | 0001| | 0002| Adopted ___________________ Not Adopted _____________________ | 0003| (Chief Clerk) (Chief Clerk) | 0004| | 0005| | 0006| Date _________________ | 0007| FORTY-SECOND LEGISLATURE | 0008| SECOND SESSION | 0009| | 0010| | 0011| February 5, 1996 | 0012| | 0013| | 0014| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0015| WHOLE SUBSTITUTE FOR | 0016| SENATE BILL 701, as | 0017| amended | 0018| | 0019| Amendment sponsored by Senator | 0020| | 0021| | 0022| 1. On page 8, line 12, after the period strike the remainder | 0023| of the line, strike line 13 through the period and insert in lieu | 0024| thereof: | 0025| | 0001| "Members shall be appointed from each house so as to give the | 0002| two major political parties the same proportional representation | 0003| as prevails in each house; however, in no event shall either party | 0004| have fewer than one member from each house on the committee.". | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| | 0012| __________________________ | 0013| | 0014| | 0015| | 0016| | 0017| Adopted ___________________ Not Adopted _____________________ | 0018| (Chief Clerk) (Chief Clerk) | 0019| | 0020| | 0021| Date _________________ | 0022| FORTY-SECOND LEGISLATURE | 0023| SECOND SESSION | 0024| | 0025| | 0001| February 4, 1996 | 0002| | 0003| | 0004| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0005| WHOLE SUBSTITUTE FOR | 0006| SENATE | 0007| BILL 701 | 0008| | 0009| Amendment sponsored by Senator Ben D. Altamirano | 0010| | 0011| | 0012| 1. On page 78, line 6, after the semicolon insert: | 0013| | 0014| ""gambling device" does not include an electronic bingo device | 0015| that is a portable, electronic contrivance that records and stores | 0016| card information, matches the numbers that are inserted by the | 0017| user against the stored card information, is used in conjunction | 0018| with an authorized bingo game and is not connected, attached or | 0019| otherwise linked in any manner during the course of a game to a | 0020| central computer, sales station or any other device that could | 0021| alter the cards or numbers;". | 0022| | 0023| | 0024| __________________________ | 0025| Ben D. Altamirano | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| Adopted ___________________ Not Adopted _____________________ | 0007| (Chief Clerk) (Chief Clerk) | 0008| | 0009| | 0010| Date _________________ | 0011| FORTY-SECOND LEGISLATURE | 0012| SECOND SESSION | 0013| | 0014| | 0015| February 4, 1996 | 0016| | 0017| | 0018| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0019| WHOLE SUBSTITUTE FOR | 0020| SENATE | 0021| BILL 701, as amended | 0022| | 0023| Amendment sponsored by Senator Roman M. Maes III | 0024| | 0025| | 0001| 1. On page 1, line 17, after "PENALTIES;" insert "LIMITING | 0002| SOLICITATION OR ACCEPTANCE OF CAMPAIGN CONTRIBUTIONS FROM GAMING | 0003| INTERESTS;". | 0004| | 0005| 2. On page 56, between lines 3 and 4, insert the following | 0006| new section: | 0007| | 0008| "Section 47. A new section of the Campaign Reporting Act is | 0009| enacted to read: | 0010| | 0011| "[NEW MATERIAL] SOLICITING OR ACCEPTING CAMPAIGN | 0012| CONTRIBUTIONS FROM GAMING INTERESTS LIMITED.--No candidate shall | 0013| solicit or accept a campaign contribution in excess of two hundred | 0014| fifty dollars ($250) from: | 0015| | 0016| A. a person who holds or is an applicant for a license | 0017| issued pursuant to the Video Gaming Act or an employee, officer or | 0018| representative of that person; | 0019| | 0020| B. an Indian nation, tribe or pueblo that engages in | 0021| gaming or an officer, employee, member of a governing body or | 0022| representative of that Indian entity; or | 0023| | 0024| C. a person who is a contractor that operates gaming | 0025| activities on behalf of an Indian nation, tribe or pueblo or an | 0001| officer, employee or representative of that person.". | 0002| | 0003| 3. Renumber the succeeding sections accordingly. | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| __________________________ | 0014| Roman M. Maes III | 0015| | 0016| | 0017| | 0018| | 0019| Adopted ___________________ Not Adopted _____________________ | 0020| (Chief Clerk) (Chief Clerk) | 0021| | 0022| | 0023| Date _________________ | 0024| FORTY-SECOND LEGISLATURE | 0025| SECOND SESSION | 0001| | 0002| | 0003| February 5, 1996 | 0004| | 0005| | 0006| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0007| WHOLE SUBSTITUTE FOR | 0008| SENATE | 0009| BILL 701, as amended | 0010| | 0011| Amendment sponsored by Senator Tom Rutherford | 0012| | 0013| | 0014| 1. On page 1, line 17, after "AMENDING" insert ", REPEALING". | 0015| | 0016| 2. On page 56, between lines 3 and 4, insert the following | 0017| additional sections: | 0018| | 0019| "Section 47. Section 6-24-5 NMSA 1978 (being Laws 1995, | 0020| Chapter 155, Section 5) is amended to read: | 0021| | 0022| "6-24-5. NEW MEXICO LOTTERY AUTHORITY CREATED.-- | 0023| | 0024| A. There is created a public body, politic and | 0025| corporate, separate and apart from the state, constituting a | 0001| governmental instrumentality to be known as the "New Mexico | 0002| lottery authority". The authority is created and organized for | 0003| the purpose of establishing and conducting the [New Mexico | 0004| state] lottery to provide revenues for the public purposes | 0005| designated by the New Mexico Lottery Act. | 0006| | 0007| B. The authority shall be governed by a board of | 0008| directors composed of seven members who are residents of New | 0009| Mexico appointed by the governor with the advice and consent of | 0010| the senate. The members of the board of directors shall be | 0011| prominent persons in their businesses or professions and shall be | 0012| appointed so as to provide equitable geographical representation. | 0013| No more than four members of the board shall be from any one | 0014| political party. The governor shall consider appointing at least | 0015| one member who has at least five years experience as a law | 0016| enforcement officer, at least one member who is an attorney | 0017| admitted to practice in New Mexico and at least one member who is | 0018| a certified public accountant certified in New Mexico. | 0019| | 0020| C. Board members shall be appointed for five-year terms. | 0021| To provide for staggered terms, four of the initially appointed | 0022| members shall be appointed for terms of five years and three | 0023| members for terms of three years. Thereafter, all members shall | 0024| be appointed for five-year terms. A vacancy shall be filled by | 0025| appointment by the governor for the remainder of the unexpired | 0001| term. A member shall serve until his replacement is confirmed by | 0002| the senate. Board members shall be eligible for reappointment. | 0003| | 0004| D. The board shall select one of its members as chairman | 0005| annually. A chairman may be selected for successive years. | 0006| Members of the board may be removed by the governor for | 0007| malfeasance, misfeasance or willful neglect of duty after | 0008| reasonable notice and a public hearing unless the notice and | 0009| hearing are expressly waived in writing by the member. | 0010| | 0011| E. The board shall hold regular meetings at the call of | 0012| the chairman, but not less often than once each calendar quarter. | 0013| A board meeting may also be called upon the request in writing of | 0014| three or more board members. A majority of members then in office | 0015| constitutes a quorum for the transaction of any business and for | 0016| the exercise of any power or function of the authority. | 0017| | 0018| F. Board members shall receive no compensation for their | 0019| services, but shall be paid expenses incurred in the conduct of | 0020| authority business as allowed and approved by the authority in | 0021| accordance with policies adopted by the board. | 0022| | 0023| G. A board member shall be subject to a background check | 0024| and investigation to determine his fitness for office and shall | 0025| make the disclosures required by Section 6-24-20 NMSA 1978. The | 0001| results of that background check shall be made available to the | 0002| governor and the senate." | 0003| | 0004| Section 48. Section 6-24-6 NMSA 1978 (being Laws 1995, | 0005| Chapter 155, Section 6) is amended to read: | 0006| | 0007| "6-24-6. POWERS OF THE AUTHORITY.-- | 0008| | 0009| A. The authority shall have [any and] all powers | 0010| necessary or convenient to carry out and effectuate the purposes | 0011| and provisions of the New Mexico Lottery Act that are not in | 0012| conflict with the constitution of New Mexico and that are | 0013| generally exercised by corporations engaged in entrepreneurial | 0014| pursuits, including [but without limiting the generality of the | 0015| foregoing] the power to: | 0016| | 0017| (1) sue and be sued; | 0018| | 0019| (2) adopt and alter a seal; | 0020| | 0021| (3) adopt, amend and repeal bylaws, rules, policies | 0022| and procedures for the conduct of its affairs and its business; | 0023| | 0024| (4) procure or provide insurance; | 0025| | 0001| (5) hold copyrights, trademarks and service marks | 0002| and enforce its rights with respect thereto; | 0003| | 0004| (6) initiate, supervise and administer the | 0005| operation of the lottery in accordance with the provisions of the | 0006| New Mexico Lottery Act and rules, policies and procedures adopted | 0007| pursuant to that act; | 0008| | 0009| (7) enter into written agreements with one or more | 0010| other states for the operation, participation in or marketing or | 0011| promotion of a joint lottery or joint lottery games; | 0012| | 0013| (8) acquire or lease real property and make | 0014| improvements thereon and acquire by lease or by purchase personal | 0015| property, including [but not limited to] computers, mechanical, | 0016| electronic and on-line equipment and terminals and intangible | 0017| property, including [but not limited to] computer programs, | 0018| systems and software; | 0019| | 0020| (9) enter into contracts to incur debt and borrow | 0021| money in its own name and enter into financing agreements with the | 0022| state, with agencies or instrumentalities of the state or with | 0023| any commercial bank or credit provider; | 0024| | 0025| (10) receive and expend, in accordance with the | 0001| provisions of the New Mexico Lottery Act, all money received from | 0002| any lottery or nonlottery source for effectuating the purposes of | 0003| the New Mexico Lottery Act; | 0004| | 0005| (11) administer oaths, take depositions, issue | 0006| subpoenas and compel the attendance of witnesses and the | 0007| production of books, papers, documents and other evidence relative | 0008| to any investigation or proceeding conducted by the authority; | 0009| | 0010| (12) appoint and prescribe the duties of officers, | 0011| agents and employees of the authority, including professional and | 0012| administrative staff and personnel, and to fix their compensation, | 0013| pay their expenses and provide a benefit program, including [but | 0014| not limited to] a retirement plan and a group insurance plan; | 0015| | 0016| (13) select and contract with lottery vendors and | 0017| lottery retailers; | 0018| | 0019| (14) enter into contracts or agreements with state, | 0020| local or federal law enforcement agencies or private investigators | 0021| or other persons for the performance of law enforcement, | 0022| background investigations and security checks; | 0023| | 0024| (15) establish an applicant fee schedule for | 0025| processing permit applications that is based on costs of | 0001| application review incurred by the authority and also costs | 0002| incurred for investigations of applicants by state departments and | 0003| agencies other than the authority, which regulation shall provide | 0004| for the reimbursement of these costs to the authority or other | 0005| department or agency from the fees charged and shall also limit | 0006| the fee to be not greater than ten thousand dollars ($10,000); | 0007| | 0008| [(15)] (16) enter into contracts of [any and] | 0009| all types on such terms and conditions as the authority may | 0010| determine; | 0011| | 0012| [(16)] (17) establish and maintain banking | 0013| relationships, including [but not limited to] establishment of | 0014| checking and savings accounts and lines of credit; | 0015| | 0016| [(17)] (18) advertise and promote the lottery | 0017| and lottery games; | 0018| | 0019| [(18)] (19) act as a lottery retailer, conduct | 0020| promotions that involve the dispensing of lottery tickets and | 0021| establish and operate a sales facility to sell lottery tickets and | 0022| any related merchandise; and | 0023| | 0024| [(19)] (20) adopt, repeal and amend such rules, | 0025| policies and procedures as necessary to carry out and implement | 0001| its powers and duties, organize and operate the authority, conduct | 0002| lottery games and any other matters necessary or desirable for the | 0003| efficient and effective operation of the lottery and the | 0004| convenience of the public. | 0005| | 0006| B. The powers enumerated in this section are cumulative | 0007| of and in addition to those powers enumerated elsewhere in the New | 0008| Mexico Lottery Act, and no such powers limit or restrict any other | 0009| powers of the authority."". | 0010| | 0011| 3. Renumber the succeeding sections accordingly. | 0012| | 0013| 4. On page 57, between lines 8 and 9, insert the following | 0014| additional sections: | 0015| | 0016| "Section 48. Section 6-24-11 NMSA 1978 (being Laws 1995, | 0017| Chapter 155, Section 11) is amended to read: | 0018| | 0019| "6-24-11. EMPLOYEES--CONFLICT OF INTEREST--INVESTIGATIONS--BONDS.-- | 0020| | 0021| A. No employee of the authority shall participate in any | 0022| decision involving a lottery retailer with whom the employee has a | 0023| financial interest. | 0024| | 0025| B. No employee of the authority who leaves the | 0001| employment of the authority may represent any lottery vendor or | 0002| lottery retailer before the authority for a period of two years | 0003| following termination of employment with the authority. | 0004| | 0005| C. A background investigation shall be conducted on each | 0006| applicant who has reached the final selection process prior to | 0007| employment by the authority if an investigation of that applicant | 0008| is directed by the authority or requested by the lottery and | 0009| gaming oversight committee. If a background investigation of an | 0010| applicant is directed or requested, the applicant shall make the | 0011| disclosures required by Section 6-24-20 NMSA 1978. The authority | 0012| is authorized to pay for the actual cost of such investigations | 0013| and may contract with the department of public safety for the | 0014| performance of the investigations. | 0015| | 0016| D. The authority shall bond authority employees with | 0017| access to authority funds or lottery revenue in an amount | 0018| determined by the board and may bond other employees as deemed | 0019| necessary." | 0020| | 0021| Section 49. Section 6-24-20 NMSA 1978 (being Laws 1995, | 0022| Chapter 155, Section 20) is repealed and a new Section 6-24-20 | 0023| NMSA 1978 is enacted to read: | 0024| | 0025| "6-24-20. [NEW MATERIAL] DISCLOSURES REQUIRED FOR BOARD | 0001| MEMBERS, EMPLOYEES, LOTTERY VENDORS AND RETAILERS.-- | 0002| | 0003| A. A prospective board member shall file a disclosure | 0004| statement pursuant to the requirements of this section at the time | 0005| of his appointment by the governor, and the senate shall not take | 0006| the appointment under consideration until a background | 0007| investigation is completed and a report is made to the senate and | 0008| the governor. | 0009| | 0010| B. A person who is under consideration in the final | 0011| selection process for appointment as the authority's chief | 0012| executive officer shall file a disclosure statement pursuant to | 0013| the requirements of this section, and the authority shall not make | 0014| an appointment of a person as chief executive officer until a | 0015| background investigation is completed and a report is made to the | 0016| authority. | 0017| | 0018| C. A person who has reached the final selection process | 0019| in his application for employment by the authority shall file a | 0020| disclosure statement pursuant to the requirements of this section | 0021| if the authority has directed or the lottery and gaming oversight | 0022| committee has requested that the applicant do so. The person | 0023| shall not be further considered for employment unless a background | 0024| investigation is completed and a report is made to the authority. | 0025| | 0001| D. A lottery vendor and a person seeking a contract as a | 0002| lottery retailer shall file with any proposal a disclosure | 0003| statement pursuant to the provisions of this section. No contract | 0004| shall be executed between the authority and a lottery vendor or a | 0005| lottery retailer unless a background investigation is completed | 0006| and a report is made to the authority covering the vendor or | 0007| retailer. | 0008| | 0009| E. The forms for disclosure statements required by this | 0010| section shall be developed by the authority in cooperation with | 0011| the department of public safety. As a minimum, the following | 0012| information shall be required of a person submitting a statement: | 0013| | 0014| (1) if the person submitting the statement is a | 0015| prospective board member, an applicant for the position of chief | 0016| executive officer, an applicant for employment with the authority | 0017| or an applicant for a contract as a lottery retailer: | 0018| | 0019| (a) a full set of fingerprints made by a law | 0020| enforcement agency on forms supplied by the authority; | 0021| | 0022| (b) complete information and details with | 0023| respect to the person's antecedents, habits, character, criminal | 0024| records, business activities and business associates covering at | 0025| least a ten- year period immediately preceding the date of | 0001| submitting the disclosure statement; and | 0002| | 0003| (c) a complete description of any equity | 0004| interest held in a business connected with the gambling industry; | 0005| | 0006| (2) if the person submitting the statement is a | 0007| prospective lottery vendor: | 0008| | 0009| (a) the lottery vendor's business name and | 0010| address and the names and addresses of the following: | 0011| | 0012| 1) if the lottery vendor is a partnership, | 0013| all of the general and limited partners; | 0014| | 0015| 2) if the lottery vendor is a trust, the | 0016| trustee and all persons entitled to receive income or benefit from | 0017| the trust; | 0018| | 0019| 3) if the lottery vendor is an | 0020| association, the members, officers and directors; | 0021| | 0022| 4) if the lottery vendor is a corporation, | 0023| the officers, directors and each owner or holder, directly or | 0024| indirectly, of any equity security or other evidence of ownership | 0025| of any interest in the corporation; except that, in the case of | 0001| owners or holders of publicly held equity securities of a publicly | 0002| traded corporation, only the names and addresses of those owning | 0003| or holding five percent or more of the publicly held securities | 0004| must be disclosed; and | 0005| | 0006| 5) if the lottery vendor is a subsidiary | 0007| company, each intermediary company, holding company or parent | 0008| company involved and the officers, directors and stockholders of | 0009| each; except that, in the case of owners or holders of publicly | 0010| held securities of an intermediary company, holding company or | 0011| parent company that is a publicly traded corporation, only the | 0012| names and addresses of those owning or holding five percent or | 0013| more of the publicly held securities must be disclosed; | 0014| | 0015| (b) if the lottery vendor is a corporation, all | 0016| the states in which the lottery vendor is authorized to do | 0017| business and the nature of that business; | 0018| | 0019| (c) other jurisdictions in which the lottery | 0020| vendor has contracts to supply gaming materials, equipment or | 0021| services; | 0022| (d) the details of any conviction by a federal | 0023| or any state court of the lottery vendor or any person whose name | 0024| and address are required under this section for a criminal offense | 0025| punishable by imprisonment for more than one year and shall submit | 0001| to the board a full set of fingerprints of such person made at a | 0002| law enforcement agency by an agent or officer of such agency on | 0003| forms supplied by the authority; | 0004| | 0005| (e) the details of any disciplinary action | 0006| taken by any state against the lottery vendor or any person whose | 0007| name and address are required by this section regarding any matter | 0008| related to gaming services or the selling, leasing, offering for | 0009| sale or lease, buying or servicing of gaming materials or | 0010| equipment; | 0011| | 0012| (f) audited annual financial statements of the | 0013| lottery vendor for the preceding five years; | 0014| | 0015| (g) a statement of the lottery vendor's gross | 0016| receipts realized in the preceding year from gaming services and | 0017| the sale, lease or distribution of gaming materials or equipment | 0018| to states operating lotteries and to private persons licensed to | 0019| conduct gambling, differentiating that portion of the gross | 0020| receipts attributable to transactions with states operating | 0021| lotteries from that portion of the gross receipts attributable to | 0022| transactions with private persons licensed to conduct gambling; | 0023| | 0024| (h) the name and address of any source of | 0025| gaming materials or equipment for the lottery vendor; | 0001| | 0002| (i) the number of years the lottery vendor has | 0003| been in the business of supplying gaming services or gaming | 0004| materials or equipment; and | 0005| | 0006| (j) any other information, accompanied by any | 0007| documents the board by rule may reasonably require as being | 0008| necessary or appropriate in the public interest to accomplish the | 0009| purposes of the New Mexico Lottery Act. | 0010| | 0011| F. Upon the request of the governor in the case of a | 0012| prospective board member and upon the request of the authority in | 0013| all other cases, the department of public safety shall prepare and | 0014| transmit to the requesting person an investigative report of the | 0015| person submitting the disclosure statement, based in part upon the | 0016| statement. The report shall be prepared and transmitted within | 0017| ninety days after the receipt of a copy of the disclosure | 0018| statement. Upon good cause, the ninety days may be extended for a | 0019| reasonable period of time by the person requesting the | 0020| investigative report. | 0021| | 0022| G. In preparing an investigative report the department | 0023| of public safety may request and receive criminal history | 0024| information from the federal bureau of investigation or any other | 0025| law enforcement agency or organization. The department of public | 0001| safety shall maintain confidentiality regarding information | 0002| received from a law enforcement agency that may be imposed by the | 0003| agency as a condition for providing the information to the | 0004| department of public safety. | 0005| | 0006| H. All persons required to file a disclosure statement | 0007| shall provide any assistance or information requested by the | 0008| department of public safety, the governor or the authority and | 0009| shall cooperate in any inquiry or investigation. | 0010| | 0011| I. If any information required to be included in a | 0012| disclosure statement changes or if any information is added after | 0013| filing the statement, the person required to file it shall provide | 0014| that information in writing to the person requesting the | 0015| investigation. The supplemental information shall be provided | 0016| within thirty days after the change or addition. | 0017| | 0018| J. No contract for supplying goods or services for use | 0019| in the operation of the lottery is enforceable against the | 0020| authority unless the requirements of this section have been | 0021| fulfilled. | 0022| | 0023| K. The senate shall refuse to confirm a prospective | 0024| board member and the authority shall not appoint, employ or enter | 0025| into a contract with a person if the senate or the authority, | 0001| respectively, has reasonable cause to believe that the prospective | 0002| board member or the person has: | 0003| | 0004| (1) knowingly misrepresented or omitted a material | 0005| fact required in a disclosure statement; | 0006| | 0007| (2) been convicted of a felony or a crime involving | 0008| moral turpitude within ten years immediately preceding the date of | 0009| submitting a disclosure statement required pursuant to this | 0010| section; | 0011| | 0012| (3) exhibited a history of willful disregard for | 0013| the gambling laws of this or any other state or the United States; | 0014| or | 0015| | 0016| (4) had any permit or license issued pursuant to | 0017| the gambling laws of a state or the United States permanently | 0018| suspended or revoked for cause. | 0019| | 0020| L. The department of public safety shall transmit copies | 0021| of all investigative reports prepared on a prospective board | 0022| member to the legislative organized crime oversight committee."". | 0023| | 0024| 5. Renumber the succeeding sections accordingly. | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| __________________________ | 0008| Tom Rutherford | 0009| | 0010| | 0011| | 0012| Adopted ___________________ Not Adopted _____________________ | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| | 0016| Date _________________ | 0017| FORTY-SECOND LEGISLATURE | 0018| SECOND SESSION | 0019| | 0020| | 0021| February 5, 1996 | 0022| | 0023| | 0024| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0025| WHOLE SUBSTITUTE FOR | 0001| SENATE | 0002| BILL 701, as amended | 0003| | 0004| Amendment sponsored by Senator Ben D. Altamirano | 0005| | 0006| | 0007| 1. On page 40, between lines 3 and 4, insert the following: | 0008| | 0009| "(1) class B counties: | 0010| | 0011| (a) having populations as determined by the | 0012| 1990 federal census of not more than thirteen thousand persons and | 0013| not less than twelve thousand persons; and | 0014| | 0015| (b) having a 1993 net taxable value of | 0016| property, as that term is defined in the Property Tax Code, of at | 0017| least one hundred fifty-nine million dollars ($159,000,000) but | 0018| not more than one hundred sixty-five million dollars | 0019| ($165,000,000);". | 0020| | 0021| 2. Renumber the succeeding paragraphs accordingly. | 0022| | 0023| | 0024| | 0025| __________________________ | 0001| Ben D. Altamirano | 0002| | 0003| | 0004| | 0005| Adopted ___________________ Not Adopted _____________________ | 0006| (Chief Clerk) (Chief Clerk) | 0007| | 0008| | 0009| Date _________________ FORTY-SECOND LEGISLATURE | 0010| SECOND SESSION, 1996 | 0011| | 0012| | 0013| | 0014| December 17, 1997 | 0015| | 0016| | 0017| SENATE FLOOR AMENDMENT number to SENATE COMMITTEE OF THE | 0018| WHOLE | 0019| SUBSTITUTE FOR SENATE | 0020| BILL 701, AS AMENDED | 0021| WITH EMERGENCY CLAUSE | 0022| | 0023| AMENDMENT sponsored by SENATOR L. SKIP VERNON | 0024| | 0025| 1. On page 85, Section 62, line 14, after the period, insert | 0001| the following sentence: | 0002| | 0003| "Provided, however, that no provision of this act shall | 0004| become effective unless all tribal-state gaming compacts | 0005| contain a specific provision requiring that all parties | 0006| to the tribal-state gaming compact agree to be fully | 0007| bound by all provisions of the Campaign Reporting Act, | 0008| Section 1-19-1 NMSA 1978, et seq.". | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| | 0015| Senator L. SKIP VERNON | 0016| | 0017| | 0018| | 0019| Adopted Not Adopted | 0020| | 0021| (Chief Clerk) (Chief Clerk) | 0022| | 0023| | 0024| Date | 0025| S0701FS11 FORTY-SECOND LEGISLATURE | 0001| SECOND SESSION | 0002| | 0003| | 0004| February 5, 1996 | 0005| | 0006| | 0007| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0008| WHOLE SUBSTITUTE FOR | 0009| SENATE BILL 701, as amended | 0010| | 0011| | 0012| Amendment sponsored by Senator Manny M. Aragon | 0013| | 0014| | 0015| 1. On page 33, line 1, strike "twenty" and insert in lieu | 0016| thereof "fifteen". | 0017| | 0018| 2. On page 37, line 11, strike "no more than four hundred" | 0019| and insert in lieu thereof "an unlimited number of". | 0020| | 0021| 3. On page 37, line 12, strike "video". | 0022| | 0023| 4. On page 37, line 24, after "twenty" insert "and eighteen | 0024| hundredths". | 0025| | 0001| 5. On page 38, line 5, strike "five" and insert in lieu | 0002| thereof "four and eighty-two hundredths". | 0003| | 0004| 6. On page 38, strike lines 11 through 14 and insert in lieu | 0005| thereof: | 0006| | 0007| "I. A racetrack may conduct video gaming only on days | 0008| the racetrack is holding a live race meet or simulcasting. The | 0009| hours during which gaming may be conducted shall be established by | 0010| regulation of the director but shall provide a minimum of twelve | 0011| hours a day.". | 0012| | 0013| 7. On page 83, between lines 13 and 14, insert the following | 0014| new sections: | 0015| | 0016| "Section 59. A new Section 60-1-9.1 NMSA 1978 is enacted to | 0017| read: | 0018| | 0019| "60-1-9.1. [NEW MATERIAL] SUPERINTENDENT OF REGULATION AND | 0020| LICENSING TO HAVE ACCESS TO LICENSURE INFORMATION.--The state | 0021| racing commission shall provide access to all information obtained | 0022| by the commission in connection with its licensing of horse race | 0023| meetings to the superintendent of regulation and licensing | 0024| operating pursuant to the Video Gaming Act, and the superintendent | 0025| shall utilize and review all such information in connection with | 0001| the issuance of licenses pursuant to that act and shall not | 0002| require the duplication of such information." | 0003| | 0004| Section 60. A new Section 60-1-25.2 NMSA 1978 is enacted to | 0005| read: | 0006| | 0007| "60-1-25.2. [NEW MATERIAL] OFF-TRACK PARI-MUTUEL | 0008| WAGERING.-- | 0009| | 0010| A. Off-track betting at licensed OTB facilities in this | 0011| state is declared to be legal. | 0012| | 0013| B. The state racing commission is authorized and | 0014| empowered to adopt, repeal and amend such rules and regulations as | 0015| it may deem necessary or appropriate to regulate and govern the | 0016| conduct of off-track betting so as to ensure the integrity, | 0017| reliability and security of off-track betting and for the | 0018| protection of the public, including, without limitation, | 0019| regulations covering: | 0020| | 0021| (1) grant, refusal and revocation of licenses for | 0022| OTB facilities, persons holding a direct or indirect interest in | 0023| or control of those facilities, and persons supplying goods or | 0024| services to those facilities; provided that no OTB facility may be | 0025| licensed to conduct off-track betting unless it is doing so as an | 0001| extension of a live race meet conducted at a licensed New Mexico | 0002| racetrack and receives, except as otherwise permitted by the | 0003| commission, the simulcast of all live races from licensed race | 0004| meets; | 0005| | 0006| (2) inspection and visitation at reasonable | 0007| intervals at OTB facilities; | 0008| | 0009| (3) the governing, restricting or regulating of | 0010| operation of off-track betting and all equipment used in | 0011| connection with it; | 0012| | 0013| (4) the approval of all contracts and agreements | 0014| related to off-track betting or an OTB facility; | 0015| | 0016| (5) supervision and regulation of the operation of | 0017| an entity formed or joint agreement entered into at the discretion | 0018| of one or more racetracks to construct, contract or subcontract | 0019| for, establish or operate one or more OTB facilities, the | 0020| formation of such an entity or the entering into of such an | 0021| agreement being hereby specifically authorized; and | 0022| | 0023| (6) any and all such other matters as the | 0024| commission may deem necessary or appropriate to accomplish the | 0025| objectives of this section. | 0001| | 0002| C. For purposes of this section, the state racing | 0003| commission shall have all the powers and authority conferred upon | 0004| it by the Horse Racing Act as if those powers and authority were | 0005| restated in this section. | 0006| | 0007| D. Distribution of the gross amount wagered at an OTB | 0008| facility will be made as follows: | 0009| | 0010| (1) with respect to the gross amount wagered as | 0011| off-track betting on horse races run live in this state, after | 0012| deductions by the racetrack, racetracks or racetrack entity | 0013| operating the OTB facility as provided in Subsection H of Section | 0014| 60-1-10 NMSA 1978, except that no deduction shall be taken | 0015| pursuant to Paragraph (1) of Subsection B of Section 60-1-15 NMSA | 0016| 1978, net retainage will be | 0017| | 0018| | 0019| distributed to the racetrack holding the live race meet upon which | 0020| off-track betting was wagered for distribution in accordance with | 0021| that subsection; and | 0022| | 0023| (2) with respect to the gross amount wagered as | 0024| offtrack betting on horse races run live other than in this state, | 0025| after deductions by the racetrack, racetracks or racetrack entity | 0001| operating the OTB facility as provided in Subsection H of Section | 0002| 60-1-10 NMSA 1978, except that the deduction in Paragraph (4) of | 0003| that subsection for expenses incurred to engage in simulcasting | 0004| shall be one and one-half percent and no deduction shall be taken | 0005| pursuant to Paragraph (1) of Subsection B of Section 60-1-15 NMSA | 0006| 1978, each racetrack will receive a proportion of net retainage | 0007| equal to the net retainage multiplied by the ratio of the number | 0008| of live race days run at that racetrack to the total number of | 0009| live race days run in this state during the preceding state fiscal | 0010| year, the net retainage so received by a racetrack being then | 0011| distributed as provided by Subsection H of Section 60-1-10 NMSA | 0012| 1978."". | 0013| | 0014| 8. Renumber the succeeding sections accordingly. | 0015| | 0016| | 0017| | 0018| | 0019| __________________________ | 0020| Manny M. Aragon | 0021| | 0022| | 0023| | 0024| Adopted ___________________ Not Adopted _____________________ | 0025| (Chief Clerk) (Chief Clerk) | 0001| | 0002| | 0003| Date _________________ | 0004| FORTY-SECOND LEGISLATURE | 0005| SECOND SESSION, 1996 | 0006| | 0007| | 0008| | 0009| December 17, 1997 | 0010| | 0011| | 0012| SENATE FLOOR AMENDMENT number to SENATE COMMITTEE OF THE | 0013| WHOLE | 0014| SUBSTITUTE FOR SENATE | 0015| BILL 701, AS AMENDED | 0016| WITH EMERGENCY CLAUSE | 0017| | 0018| AMENDMENT sponsored by SENATOR DUNCAN SCOTT | 0019| | 0020| 1. Add a final sentence to Section 62, page 85 that reads: | 0021| | 0022| "Provided, however, that a condition of approval of | 0023| compacts shall be that the tribe or pueblo shall have in | 0024| effect at all times a Dram Shop Act substantially similar | 0025| to New Mexico's Dram Shop Act subjecting the tribe or | 0001| pueblo to liability.". | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| Senator Duncan Scott | 0009| | 0010| | 0011| | 0012| Adopted Not Adopted | 0013| | 0014| (Chief Clerk) (Chief Clerk) | 0015| | 0016| | 0017| Date | 0018| S0701FS13 FORTY-SECOND LEGISLATURE | 0019| SECOND SESSION, 1996 | 0020| | 0021| | 0022| | 0023| December 17, 1997 | 0024| | 0025| | 0001| SENATE FLOOR AMENDMENT number to SENATE COMMITTEE OF THE | 0002| WHOLE | 0003| SUBSTITUTE FOR SENATE | 0004| BILL 701, AS AMENDED | 0005| WITH EMERGENCY CLAUSE | 0006| | 0007| AMENDMENT sponsored by SENATOR DUNCAN SCOTT | 0008| | 0009| 1. On page 54, delete Section 43, requiring legal | 0010| proceedings to be brought in Santa Fe county, and | 0011| renumber accordingly. | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| Senator Duncan Scott | 0019| | 0020| | 0021| | 0022| Adopted Not Adopted | 0023| | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| | 0002| Date | 0003| S0701FS14 FORTY-SECOND LEGISLATURE | 0004| SECOND SESSION | 0005| | 0006| | 0007| February 4, 1996 | 0008| | 0009| | 0010| SENATE FLOOR AMENDMENT number _______ to SENATE COMMITTEE OF THE | 0011| WHOLE SUBSTITUTE FOR | 0012| SENATE | 0013| BILL 701 | 0014| | 0015| Amendment sponsored by Senator Manny M. Aragon | 0016| | 0017| | 0018| 1. On page 3, between lines 3 and 4, insert the following: | 0019| | 0020| "B. "casino games" means a banking or nonbanking game of | 0021| chance, including card games, craps, roulette, big 6 and other | 0022| table games of chance or games of chance played with specialized | 0023| gambling equipment; "casino game" does not include sports betting; | 0024| | 0025| C. "casino gaming" means the conduct or play of casino | 0001| games;". | 0002| | 0003| 2. Reletter the succeeding subsections accordingly. | 0004| | 0005| 3. On page 7, line 9, after "premises" insert "and in the | 0006| case of licensed resorts, includes casino gaming". | 0007| | 0008| 4. On page 32, line 14, strike "and". | 0009| | 0010| 5. On page 32, line 15, strike "video gaming licensees" and | 0011| insert in lieu thereof "licensed charities, licensed clubs, | 0012| licensed liquor establishments or racetracks". | 0013| | 0014| 6. On page 32, line 17, strike the period and insert in lieu | 0015| thereof "; and". | 0016| | 0017| 7. On page 32, between lines 17 and 18, insert the following: | 0018| | 0019| "(6) licensed resorts, two hundred fifty thousand | 0020| dollars ($250,000) for an initial license and twenty-five thousand | 0021| dollars ($25,000) annually for renewal.". | 0022| | 0023| 8. On page 39, line 8, after the first "gaming" insert "and | 0024| casino games". | 0025| | 0001| 9. On page 39, line 22, after "machines" insert "and casino | 0002| games". | 0003| | 0004| 10. On page 40, line 2, after "at" strike the remainder of | 0005| the line, strike line 3 in its entirety and insert in lieu | 0006| thereof: | 0007| | 0008| "two licensed resorts in the counties described in this section. | 0009| The referendum may be held only in the following counties:". | 0010| | 0011| 11. On page 40, between lines 14 and 15, insert the | 0012| following: | 0013| | 0014| "F. A person who wants to become a licensed resort may | 0015| apply to become a video gaming licensee even if he does not meet | 0016| the lodging or restaurant criteria of the Video Gaming Act if that | 0017| person presents to the superintendent an irrevocable commitment to | 0018| construct facilities that meet all of the resort requirements. | 0019| The superintendent may set aside a video gaming license for that | 0020| person until after that person completes a facility that meets the | 0021| requirements of licensure for a resort; provided, however, that | 0022| the superintendent is satisfied that the person applying for | 0023| licensure: | 0024| | 0025| (1) will complete construction of the facility in a | 0001| timely manner; | 0002| | 0003| (2) has a firm financing commitment for full | 0004| funding of the construction of the facility; | 0005| | 0006| (3) has a facility plan, including a facility | 0007| design completed by an architect licensed in New Mexico; | 0008| | 0009| (4) has a business plan that includes an operations | 0010| plan; and | 0011| | 0012| (5) meets any other criteria set forth in | 0013| regulations and adopted by the superintendent.". | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| __________________________ | 0020| Manny M. Aragon | 0021| | 0022| | 0023| | 0024| Adopted ___________________ Not Adopted _____________________ | 0025| (Chief Clerk) (Chief Clerk) | 0001| | 0002| | 0003| Date _________________ | 0004| FORTY-SECOND LEGISLATURE | 0005| SECOND SESSION, 1996 | 0006| | 0007| | 0008| | 0009| December 17, 1997 | 0010| | 0011| | 0012| SENATE FLOOR AMENDMENT number to SENATE COMMITTEE OF THE | 0013| WHOLE | 0014| SUBSTITUTE FOR SENATE | 0015| BILL 701, AS AMENDED | 0016| WITH EMERGENCY CLAUSE | 0017| | 0018| AMENDMENT sponsored by SENATOR TITO D. CHAVEZ | 0019| | 0020| 1. Add a final sentence to Section 62, page 85 that reads: | 0021| | 0022| "In addition, a condition of approval of any compact | 0023| shall be that any gaming shall be excluded from the | 0024| Indian trust land located at the southeast corner of 12th | 0025| Street and Menaul Boulevard NW in Albuquerque, New | 0001| Mexico.". | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| Senator Tito D. Chavez | 0009| | 0010| | 0011| | 0012| Adopted Not Adopted | 0013| | 0014| (Chief Clerk) (Chief Clerk) | 0015| | 0016| | 0017| Date | 0018| S0701FS16 SENATE FLOOR SUBSTITUTE FOR SENATE COMMITTEE OF THE WHOLE | 0019| SUBSTITUTE FOR SENATE BILL 701 | 0020| 42nd legislature - STATE OF NEW MEXICO - second session, 1996 | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| | 0003| AN ACT | 0004| RELATING TO GAMBLING; ENACTING THE GAMING COMPACT ACT, THE VIDEO | 0005| GAMBLING ACT AND THE CHARITY GAMES ACT; ESTABLISHING PROCEDURES | 0006| FOR THE RATIFICATION, NEGOTIATION, APPROVAL AND EXECUTION OF | 0007| GAMING COMPACTS BETWEEN THE STATE AND INDIAN TRIBES; RATIFYING, | 0008| AUTHORIZING AND REGULATING CERTAIN GAMBLING ACTIVITIES; CHANGING | 0009| CERTAIN EXISTING LAW PROVISIONS RELATING TO GAMBLING; CHANGING | 0010| PROVISIONS RELATING TO LOTTERY BONDS; IMPOSING TAXES, FEES AND | 0011| PENALTIES; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA | 0012| 1978; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0016| through 7 of this act may be cited as the "Gaming Compact Act". | 0017| Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the | 0018| Gaming Compact Act: | 0019| A. "committee" means the joint legislative committee | 0020| on compacts created pursuant to Section 5 of the Gaming Compact | 0021| Act; | 0022| B. "compact" means a tribal-state gaming compact | 0023| entered into between a tribe and the state pursuant to IGRA and | 0024| includes an ancillary agreement or proposed ancillary agreement | 0025| related to that compact; | 0001| C. "gaming" means "class III gaming" as defined in | 0002| IGRA; | 0003| D. "governor" means the governor of New Mexico; | 0004| E. "IGRA" means the federal Indian Gaming Regulatory | 0005| Act (25 U.S.C.A. Sections 2701 et seq.); and | 0006| F. "tribe" means an Indian nation, tribe or pueblo | 0007| located in whole or in part within the state. | 0008| Section 3. [NEW MATERIAL] COMPACTS--RATIFICATION.--Compacts signed by the governor and the pueblos of Taos, San | 0009| Juan, Santa Clara, Pojoaque, Tesuque, San Felipe, Santa Ana, | 0010| Sandia, Isleta, Acoma, Nambe and San Ildelfonso and the | 0011| Mescalero and Jicarilla Apache tribes that were approved by the | 0012| secretary of the interior and published in the federal register | 0013| are ratified by the legislature. The governor is authorized to | 0014| execute those compacts on behalf of the state of New Mexico. | 0015| Section 4. [NEW MATERIAL] COMPACTS--NEGOTIATION--SUBMISSION TO LEGISLATURE BY GOVERNOR--APPROVAL OR REJECTION--COMPACT PROVISIONS--REPORT OF GOVERNOR TO LEGISLATURE.-- | 0016| A. A request by a tribe to negotiate a compact | 0017| initially or to renegotiate or amend an existing compact shall | 0018| be submitted to the governor in writing pursuant to IGRA. | 0019| B. The governor may designate a representative to | 0020| negotiate the terms of a compact. The designation shall be written | 0021| and a copy of the designation shall be delivered or mailed within | 0022| three days of the designation to the speaker of the house of | 0023| representatives and the president pro tempore of the senate. The | 0024| designated representative of the governor is authorized to | 0025| negotiate the terms of a compact on behalf of the state, but | 0001| neither the representative nor the governor is authorized to | 0002| execute a compact on behalf of the state without legislative | 0003| approval granted pursuant to the provisions of this section. | 0004| C. At the conclusion of negotiations a proposed compact | 0005| shall be prepared and submitted by the governor to the committee. | 0006| Submittal of a proposed compact occurs when the compact and the | 0007| submittal document are received for the committee by the | 0008| legislative council service. | 0009| D. The committee shall review the proposed compact and | 0010| within thirty days after its receipt shall: | 0011| (1) by written report to the legislature recommend | 0012| approval of the compact as proposed; or | 0013| (2) by written transmittal document to the governor | 0014| or his designated representative propose specific modifications to | 0015| the compact and request the governor to resume negotiations with | 0016| the tribe. | 0017| E. If the committee proposes specific modifications to | 0018| the proposed compact, the governor or his designated representative | 0019| may resume negotiations with the tribe in accordance with the | 0020| committee's recommendations. If, within thirty days of receipt by | 0021| the governor of the transmittal document on the specific | 0022| modifications proposed, either the governor or the tribe notifies | 0023| the other in writing that it refuses to negotiate further, the | 0024| governor shall promptly give written notification to the committee | 0025| of the decision. If negotiations are resumed, the governor shall | 0001| notify the committee of the date that he or his designated | 0002| representative has resumed negotiations on the requested | 0003| modifications. The approval process described in this section for | 0004| the originally submitted proposed compact shall be followed for | 0005| consideration of a proposed modified compact, except that the time | 0006| limitation for review by the committee specified in Subsection D of | 0007| this section is reduced to ten days. | 0008| F. Within five days of being notified that further | 0009| negotiations are refused by the tribe or the governor, the | 0010| committee shall reconsider the proposed compact and vote to | 0011| recommend its approval or rejection or shall vote to make no | 0012| recommendation on the proposed compact. | 0013| G. If the legislature is in session when a report of the | 0014| committee recommending approval or rejection of a proposed compact | 0015| is made or a report of a vote of no recommendation is made, within | 0016| five days of the date the report is received the committee shall | 0017| prepare and introduce in each house a resolution approving the | 0018| proposed compact as submitted by the governor. | 0019| A single resolution in each house may cover more than one compact | 0020| if the terms of the compacts are identical except for the name of | 0021| the tribe and the name of the person executing the compact on | 0022| behalf of the tribe. A copy of the committee report shall be | 0023| submitted with the resolution. If a majority of the members | 0024| present of each house votes to adopt the resolution, the compact is | 0025| approved by the legislature and the governor shall execute it on | 0001| behalf of the state. | 0002| H. If the legislature is not in session when a report of | 0003| the committee recommending approval or rejection of a proposed | 0004| compact is made or a report of a vote of no recommendation is made, | 0005| the committee shall inform the speaker of the house of | 0006| representatives and the president pro tempore of the senate, and | 0007| the legislature shall proceed pursuant to the provisions of | 0008| Subsection G of this section by no later than the fifth day after | 0009| the legislature convenes in a regular session or a special session | 0010| called for the purpose of considering the proposed compact. | 0011| I. The legislature may not amend or modify a proposed | 0012| compact submitted to it pursuant to the provisions of this section, | 0013| and it may not refer a proposed compact to a committee. | 0014| J. A compact negotiated on behalf of the state pursuant | 0015| to this section shall contain: | 0016| (1) a provision recognizing the right of each party | 0017| to the compact to request that the compact be amended, renegotiated | 0018| or replaced by a new compact, including the right of the | 0019| legislature by joint resolution to request amendment, renegotiation | 0020| or replacement of the compact, and providing terms under which | 0021| either party, including the legislature, may request amendment, | 0022| renegotiation or replacement of a compact; and | 0023| (2) a provision that, in the event of a request for | 0024| amendment, renegotiation or replacement of the compact, the | 0025| existing compact will remain in effect until amended, renegotiated | 0001| or replaced. | 0002| K. If a request for negotiation of a compact is made by a | 0003| tribe and the proposed compact is identical to a compact previously | 0004| approved by the legislature except for the name of the compacting | 0005| tribe and the names of the persons to execute the compact on behalf | 0006| of the tribe and on behalf of the state, the governor shall approve | 0007| and sign the compact on behalf of the state without submitting the | 0008| compact for approval pursuant to the provisions of this section. A | 0009| compact signed by the governor pursuant to this subsection is | 0010| deemed approved by the legislature. | 0011| Section 5. [NEW MATERIAL] JOINT LEGISLATIVE COMMITTEE ON | 0012| COMPACTS--CREATION--MEMBERSHIP--AUTHORITY.-- | 0013| A. The "joint legislative committee on compacts" is | 0014| created. Once established it shall continue operating until | 0015| specific action is taken by the legislature to terminate its | 0016| existence. | 0017| B. The committee shall have eight members, four from the | 0018| house of representatives and four from the senate. House members | 0019| shall be appointed by the speaker of the house of representatives, | 0020| and senate members shall be appointed by the committees' committee | 0021| of the senate or, if the senate appointments are made in the | 0022| interim, by the president pro tempore of the senate after | 0023| consultation with and agreement of a majority of the members of the | 0024| committees' committee. Members shall be appointed from each house | 0025| to give the two major political parties in each house equal | 0001| representation on the committee. At least two of the committee | 0002| members shall be legislators who are also members of a tribe if | 0003| there are two or more legislators meeting that requirement. If | 0004| there is but one legislator meeting that requirement, that | 0005| legislator shall be appointed as a committee member, and the | 0006| membership shall be adjusted subsequently if additional qualifying | 0007| legislators become available. | 0008| C. In addition to its duty to review proposed compacts, | 0009| the committee may establish and transmit to the governor proposed | 0010| guidelines reflecting the public policies and state interests, as | 0011| embodied in the constitution of New Mexico, state laws and case law | 0012| of the state, that are consistent with IGRA and that will be used | 0013| by the committee in reviewing proposed compacts. | 0014| D. The president pro tempore of the senate shall | 0015| designate a senate member of the committee to be chairman of the | 0016| committee in odd-numbered years and the vice chairman in even-numbered years. The speaker of the house of representatives shall | 0017| designate a house member of the committee to be chairman of the | 0018| committee in even-numbered years and the vice chairman in odd-numbered years. | 0019| E. The committee may meet at the call of the chairman. | 0020| F. The committee may meet during legislative sessions as | 0021| needed. | 0022| G. Staff services for the committee shall be provided by | 0023| the legislative council service. | 0024| Section 6. [NEW MATERIAL] ACCESS TO DOCUMENTS--LIMITATION.--The following documents are confidential and shall not | 0025| be made available to the public without the express consent of the | 0001| tribe or except as is otherwise provided in an approved compact: | 0002| A. reports containing results of background | 0003| investigations of individuals employed at tribal gaming | 0004| enterprises, vendors, contractors and management officials and any | 0005| other documents pertaining to those investigations; | 0006| B. documents showing income and expenses of tribal gaming | 0007| facilities; | 0008| C. documents pertaining to complaints or allegations of | 0009| violations of applicable laws or compact provisions and | 0010| investigations into those complaints or allegations; and | 0011| D. documents pertaining to licensing of or investigation | 0012| into gaming devices and documents showing payouts of individual | 0013| gaming devices. | 0014| Section 7. [NEW MATERIAL] CLASS III GAMING--CLARIFICATION--SCOPE.-- | 0015| A. The class III gaming activities listed in Subsection B | 0016| of this section are permitted within the state, but only on Indian | 0017| land: | 0018| (1) under governmental control of a tribe that has a | 0019| compact with the state of New Mexico that was entered into or | 0020| ratified pursuant to the Gaming Compact Act; and | 0021| (2) the title to which is held in trust by the | 0022| federal government or is subject to restriction by the federal | 0023| government against alienation. | 0024| B. Class III gaming activities that are permitted | 0025| pursuant to the conditions stated in Subsection A of this section | 0001| are limited to: | 0002| (1) electronic video gaming machines; | 0003| (2) electronic, electromechanical or mechanical slot | 0004| machines; | 0005| (3) card games, including: | 0006| (a) poker; | 0007| (b) blackjack; or | 0008| (c) baccarat; | 0009| (4) roulette; | 0010| (5) craps; | 0011| (6) wheels of fortune; | 0012| (7) keno; or | 0013| (8) lotteries. | 0014| Section 8. [NEW MATERIAL] SHORT TITLE.--Sections 8 through | 0015| 26 of this act may be cited as the "Video Gambling Act". | 0016| Section 9. [NEW MATERIAL] PURPOSE.--The purpose of the | 0017| Video Gambling Act is to make lawful and regulate the conduct and | 0018| operation of certain electronic video games of chance by certain | 0019| nonprofit organizations and the operation of both electronic video | 0020| games of chance and slot machines by racetracks. | 0021| Section 10. [NEW MATERIAL] DEFINITIONS.--As used in the | 0022| Video Gambling Act: | 0023| A. "department" means the regulation and licensing | 0024| department, the superintendent of regulation and licensing or an | 0025| employee of the department exercising authority lawfully delegated | 0001| to that employee by the superintendent; | 0002| B. "distributor" means a person who sells, offers for | 0003| sale or otherwise furnishes to another person a video gambling | 0004| machine; | 0005| C. "fraternal organization" means an organization within | 0006| this state, not organized for pecuniary profit, that: | 0007| (1) is a branch, lodge or chapter of a national or | 0008| state organization and exists for the common business, brotherhood | 0009| or other interests of its members; | 0010| (2) has existed in New Mexico for at least three | 0011| years immediately prior to making application for a license | 0012| pursuant to the Video Gambling Act; | 0013| (3) has been granted an exemption from federal | 0014| income tax by the United States commissioner of internal revenue as | 0015| an organization described in Section 501(c) of the Internal Revenue | 0016| Code of 1986, as amended; | 0017| (4) is exempt from state income tax pursuant to | 0018| Section 7-2-4 NMSA 1978; and | 0019| (5) is not a college or high school fraternity or | 0020| sorority; | 0021| D. "gross receipts" means the total amount of money and | 0022| the value of other consideration received from selling, renting, | 0023| leasing, distributing, operating, conducting or assisting in the | 0024| operation or conduct of any activities authorized by the Video | 0025| Gambling Act, except, in an exchange in which the money or other | 0001| consideration received does not reflect the value of the property | 0002| exchanged, "gross receipts" means the reasonable value of the | 0003| property exchanged as determined by the department; | 0004| E. "licensee" means the holder of a license issued | 0005| pursuant to the Video Gambling Act; | 0006| F. "manufacturer" means a person who assembles, from | 0007| parts or raw materials, a video gambling machine; | 0008| G. "net receipts" means gross receipts from operating a | 0009| video gambling machine, less the amounts paid as prizes and | 0010| winnings by the machine; | 0011| H. "operate" means to possess, for the purpose of | 0012| allowing persons to play, or to maintain a video gambling machine; | 0013| I. "person" means an individual or other legal entity; | 0014| J. "play" means to activate a video gambling machine and | 0015| to manipulate or work it for the purpose of trying to win money, | 0016| prizes or other consideration; | 0017| K. "qualified organization" means a fraternal | 0018| organization or a veterans' organization; | 0019| L. "veterans' organization" means an organization within | 0020| this state, or any branch, lodge or chapter of a national or state | 0021| organization within this state, that is not organized for pecuniary | 0022| profit, the membership of which consists entirely of individuals | 0023| who were members of the armed services or forces of the United | 0024| States, that has been in existence in New Mexico for at least three | 0025| years immediately prior to making application for a license | 0001| pursuant to the Video Gambling Act, that has been granted an | 0002| exemption from federal income tax by the United States commissioner | 0003| of internal revenue as an organization described in Section 501(c) | 0004| of the Internal Revenue Code of 1986, as amended, and that is | 0005| exempt from state income tax pursuant to Section 7-2-4 NMSA 1978; | 0006| and | 0007| M. "video gambling machine" means any electronic device | 0008| that, upon payment of any consideration, simulates the play of any | 0009| game of chance, including but not limited to pull tabs, poker, | 0010| keno, blackjack, craps, roulette and any other similar games | 0011| defined by regulation of the department, that uses video display | 0012| and microprocessors and that, by chance or through some combination | 0013| of chance and skill, dispenses, or the player may otherwise | 0014| receive, cash, tokens, free plays or credits that can be redeemed | 0015| for cash, coins or tokens, prizes or other consideration, but | 0016| "video gambling machine" does not include amusement-type video game | 0017| machines that do not simulate the play of any game of chance and | 0018| that are commonly used for amusement only, which only pay out free | 0019| games or tickets or credits that may only be exchanged for | 0020| merchandise of insignificant value and are not operated by a | 0021| licensee. | 0022| Section 11. [NEW MATERIAL] PROHIBITION OF ACTIVITIES | 0023| INVOLVING UNAUTHORIZED VIDEO GAMBLING MACHINES--EXCEPTION.-- | 0024| A. Except as provided in Subsection B of this section, | 0025| unless a person has a valid appropriate license or permit issued by | 0001| the department pursuant to the Video Gambling Act, a person shall | 0002| not: | 0003| (1) manufacture, import, sell, lease, rent, | 0004| distribute, operate or participate in the operation of a video | 0005| gambling machine; or | 0006| (2) conduct or participate in any activity involving | 0007| a video gambling machine. | 0008| B. The prohibition in Subsection A of this section does | 0009| not apply to an Indian nation, tribe or pueblo. | 0010| Section 12. [NEW MATERIAL] LICENSING GENERAL | 0011| PROVISIONS.-- | 0012| A. Licenses may be issued only in accordance with the | 0013| provisions of the Video Gambling Act. | 0014| B. Any applicant for or holder of a license issued | 0015| pursuant to the Video Gambling Act shall produce and furnish all | 0016| records, documents and information requested by the department. No | 0017| applicant or holder of a license shall interfere or attempt to | 0018| interfere with an investigation by the department. | 0019| C. The department shall investigate the qualifications of | 0020| applicants for licenses under the Video Gambling Act. The | 0021| department shall investigate the conditions existing in the | 0022| community in which the premises for which any license is sought are | 0023| located before the license is issued to ensure that a license is | 0024| not issued to persons or for locations if the issuance is | 0025| prohibited by state law or contrary to the public health or safety. | 0001| D. No license shall be issued to: | 0002| (1) a proprietorship if the proprietor has been | 0003| convicted of a felony; | 0004| (2) a general partnership if a general partner has | 0005| been convicted of a felony; | 0006| (3) a limited partnership if a general partner has | 0007| been convicted of a felony or if a limited partner contributing ten | 0008| percent or more of the total value of contributions made to the | 0009| limited partnership or entitled to ten percent or more of the | 0010| profits earned or other compensation by way of income paid by the | 0011| limited partnership has been convicted of a felony; | 0012| (4) a limited liability company if a manager or | 0013| member with management responsibilities has been convicted of a | 0014| felony; | 0015| (5) a corporation, association or similar entity | 0016| having a shareholder holding more than ten percent of the stock of | 0017| the entity, a director or an officer who has been convicted of a | 0018| felony; or | 0019| (6) a person subject to the control of an individual | 0020| or person who has been convicted of a felony when that control | 0021| arises out of relationships defined by regulations of the | 0022| department as resulting in control. | 0023| E. A licensee shall not employ an individual in a | 0024| position having authority or responsibility to supervise machine | 0025| gambling for the licensee if that individual has been convicted of | 0001| a felony. | 0002| F. An applicant for a license shall file with the | 0003| application two complete sets of fingerprints taken under the | 0004| supervision of and certified by an officer of the New Mexico state | 0005| police, a county sheriff or a municipal chief of police for the | 0006| following described individuals: | 0007| (1) if the applicant is a proprietorship, the | 0008| proprietor; | 0009| (2) if the applicant is a general partnership, each | 0010| general partner; | 0011| (3) if the applicant is a limited partnership, all | 0012| general partners and each limited partner contributing ten percent | 0013| or more of the total value of contributions to the limited | 0014| partnership or entitled to ten percent or more of the profits | 0015| earned or other compensation by way of income paid by the limited | 0016| partnership; | 0017| (4) if the applicant is a limited liability company, | 0018| each manager or member with management responsibilities; | 0019| (5) if the applicant is a corporation, association | 0020| or similar entity, each shareholder holding ten percent or more of | 0021| the outstanding stock, each principal officer, each director and | 0022| any agent responsible for the operation of the licensee; and | 0023| (6) an individual having control of an individual or | 0024| entity applicant when that control arises out of relationships | 0025| defined by regulations of the department as resulting in control. | 0001| G. The department may exchange identification records and | 0002| information with law enforcement agencies for official use. Any | 0003| identification records received from the United States department | 0004| of justice, including identification records based on fingerprints, | 0005| shall be used only to accomplish the licensing purposes and comply | 0006| with the provisions of the Video Gambling Act. The department | 0007| shall not disseminate identification records or information | 0008| received to any person except law enforcement agencies for official | 0009| use only. | 0010| H. An application for the issuance or annual renewal of a | 0011| license shall be accompanied by a license fee in the amount of one | 0012| thousand dollars ($1,000). | 0013| I. The department shall by regulation set forth the | 0014| requirements for and contents of an application for issuance and | 0015| renewal of licenses, consistent with the provisions of the Video | 0016| Gambling Act. The regulations shall include detailed provisions | 0017| describing those situations and relationships among persons and | 0018| applicants in which a person is determined to have control of | 0019| another for the purpose of qualifications and investigations | 0020| required for licensure. | 0021| J. All licenses issued pursuant to the Video Gambling Act | 0022| expire on July 1 of each year and may be renewed if the licensee | 0023| makes the required application and pays the required fee. If a | 0024| license expires, the licensee shall cease all video gambling | 0025| activities and transactions until the license is renewed. | 0001| K. The holder of a license issued pursuant to the Video | 0002| Gambling Act has no vested property right in the license. The | 0003| license is the property of the state. Licenses issued pursuant to | 0004| the Video Gambling Act are not subject to sale, lease, devise, | 0005| transfer, assignment, execution, attachment, a security | 0006| transaction, liens or receivership. | 0007| Section 13. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0008| LICENSE.-- | 0009| A. A license may be issued to a qualified organization to | 0010| own and operate video gambling machines for which permits have been | 0011| issued by the department. A video gambling machine licensee shall | 0012| operate video gambling machines only at the location of its primary | 0013| place of business and at no other location. | 0014| B. A video gambling machine licensee may install and | 0015| operate video gambling machines only at the location stated in its | 0016| application and approved by the department. | 0017| C. No person other than an active member of a veterans' | 0018| organization or a fraternal organization or a bona fide guest of | 0019| that active member may play video gambling machines owned or | 0020| operated by a veterans' organization or the fraternal organization | 0021| that is a video gambling machine licensee. | 0022| D. The department shall prescribe by regulation the | 0023| information required, frequency of reporting, which shall be no | 0024| less often than quarterly, and the form of the reports to be made | 0025| by video gambling machine licensees. | 0001| E. No video gambling machine licensee may purchase, lease | 0002| or otherwise receive a video gambling machine except from a | 0003| distributor licensed pursuant to the Video Gambling Act. | 0004| F. No more than twenty-five video gambling machines may | 0005| be operated by a video gambling machine licensee at any given time, | 0006| subject to the limitations contained in Section 17 of the Video | 0007| Gambling Act. | 0008| Section 14. [NEW MATERIAL] MANUFACTURER'S LICENSE.-- | 0009| A. A license may be issued to a person desiring to | 0010| manufacture video gambling machines in this state. | 0011| B. No person shall manufacture video gambling machines in | 0012| this state unless the person is issued a manufacturer's license by | 0013| the department. | 0014| C. A licensed manufacturer shall report to the | 0015| department, on prescribed forms, information required by regulation | 0016| of the department. | 0017| D. No licensed manufacturer may sell or solicit to sell a | 0018| video gambling machine to any person except a licensed distributor. | 0019| E. No licensed manufacturer may operate, receive for | 0020| resale or participate directly or indirectly in the operation or | 0021| resale of a video gambling machine. | 0022| Section 15. [NEW MATERIAL] DISTRIBUTOR'S LICENSE.-- | 0023| A. A license may be issued to a person desiring to | 0024| distribute video gambling machines by sale, lease or other | 0025| transaction in this state. | 0001| B. No person may distribute video gambling machines by | 0002| sale, lease or other transaction in this state unless the person is | 0003| issued a distributor's license by the department. | 0004| C. No licensed distributor may distribute a video | 0005| gambling machine by sale, lease or other transaction except to a | 0006| video gambling machine licensee or racetrack licensee. | 0007| D. A licensed distributor shall report to the department, | 0008| on prescribed forms, information required by regulation of the | 0009| department. | 0010| E. No licensed distributor may operate, receive for | 0011| resale or participate directly or indirectly in the operation or | 0012| resale of a video gambling machine. | 0013| Section 16. [NEW MATERIAL] REGULATIONS.-- | 0014| A. The department may adopt regulations necessary to | 0015| implement the Video Gambling Act. Other than emergency regulations | 0016| adopted pursuant to the provisions of Subsection B of this section, | 0017| no regulation affecting any person or agency outside the department | 0018| shall be adopted, amended or repealed without a public hearing on | 0019| the proposed action before the department or a designated hearing | 0020| officer. The public hearing shall be held in Santa Fe county. | 0021| Notice of the subject matter of the regulation, the date, time and | 0022| place of the public hearing, the manner in which interested persons | 0023| may present their views and the method by which copies of the | 0024| proposed regulation, amendment or repeal may be obtained shall be | 0025| published once at least thirty days prior to the hearing date in a | 0001| newspaper of general circulation. All regulations shall be filed | 0002| in accordance with the State Rules Act. | 0003| B. If the department determines that an emergency exists | 0004| that requires immediate action to implement or enforce the | 0005| provisions of the Video Gambling Act, it may adopt a regulation or | 0006| amendment or repeal thereof without notice and hearing, and the | 0007| emergency regulation shall become effective immediately upon its | 0008| filing under the State Rules Act. The emergency regulation shall | 0009| not continue in effect longer than forty-five days unless within | 0010| that time the department commences proceedings to adopt the | 0011| regulation by issuing the notice required in Subsection A of this | 0012| section. If the department commences proceedings by issuing | 0013| notice, the emergency regulation shall remain in effect until a | 0014| permanent regulation takes effect or until the procedures are | 0015| otherwise completed. | 0016| C. Regulations adopted by the department may provide for | 0017| the following: | 0018| (1) reporting requirements in addition to those set | 0019| forth in the Video Gambling Act; | 0020| (2) required provisions in purchase or leasing | 0021| contracts relating to video gambling machines; | 0022| (3) appropriate security measures providing for the | 0023| safety of participants in the conduct of video gambling; | 0024| (4) the contents of and process for applications for | 0025| licenses or permits issued pursuant to the Video Gambling Act; | 0001| (5) minimum required percentage of paybacks by video | 0002| gambling machines; and | 0003| (6) other regulations consistent with the provisions | 0004| of the Video Gambling Act that provide for the integrity, honesty | 0005| and security of the conduct of video gambling machine activities or | 0006| transactions by licensees. | 0007| D. The department shall enter into a contract with the | 0008| New Mexico lottery authority to conduct the monitoring of video | 0009| gambling machines, including receiving and transmitting to the | 0010| department by the lottery authority the information required by the | 0011| Video Gambling Act, performing electronic funds transfers, enabling | 0012| and disabling video gambling machines and performing other services | 0013| relating to the operation and administration of video gambling | 0014| machines. The contract is not subject to the Procurement Code. | 0015| Compensation to the lottery authority shall not exceed actual costs | 0016| incurred by the authority in performing the services plus up to two | 0017| percent of the net receipts of a monitored licensee. The contract | 0018| may provide for electronic funds transfer of that portion of the | 0019| compensation. The department shall provide by regulation for the | 0020| allocation and payment of the compensation. | 0021| E. The department shall, on or before January 1, 1997, | 0022| adopt by regulation mechanical and electronic standards for video | 0023| gambling machines, ensuring the integrity, honesty and security of | 0024| the machines, which standards shall not be more lenient than those | 0025| applied to similar machines in lawful use within the United States | 0001| by any other jurisdiction regulating the conduct of video machine | 0002| gambling. | 0003| Section 17. [NEW MATERIAL] PERMITTING OF VIDEO GAMBLING | 0004| MACHINES.-- | 0005| A. The department shall ensure that no more than two | 0006| thousand video gambling machines are permitted and operated within | 0007| the state at any given time by video gambling machine licensees. | 0008| If the number of completed applications for permits exceeds the | 0009| number of permits available, the department shall allocate permits | 0010| based upon regulations of the department according to membership | 0011| size, geographic diversity and any other factors deemed relevant by | 0012| the department. Completed applications are those that provide all | 0013| information requested, indicate the licensee is able to place | 0014| immediately the video gambling machines for which a permit is | 0015| requested into operation at the approved premises, include the | 0016| appropriate application fees and specifically comply with all | 0017| requirements of the Video Gambling Act and regulations adopted | 0018| pursuant to that act. If a licensee removes a video gambling | 0019| machine from operation for longer than ten consecutive days, he | 0020| shall notify the department immediately, and the permit issued for | 0021| that machine shall be canceled. | 0022| B. A licensee who intends to own or operate a video | 0023| gambling machine shall file an application for a permit with the | 0024| department for each video gambling machine purchased, leased or | 0025| otherwise acquired by the licensee on forms prescribed by the | 0001| department within twenty days after purchasing, leasing or | 0002| otherwise acquiring the machine. The department shall not issue a | 0003| permit for any machine that has not been tested in accordance with | 0004| the provisions of Section 18 of the Video Gambling Act or, after | 0005| January 1, 1997, does not comply with standards adopted by the | 0006| department by regulation. | 0007| C. Each application for a permit shall be accompanied by | 0008| a permit fee of one hundred dollars ($100) per machine. | 0009| D. The department shall issue a permit for a video | 0010| gambling machine if it complies with all conditions of the Video | 0011| Gambling Act and regulations adopted pursuant to that act and if a | 0012| properly completed application along with the required application | 0013| fee for each machine has been submitted, but the department may | 0014| refuse to issue a permit for a specific machine if it believes that | 0015| the machine is inaccurate, unreliable or will not be operated in | 0016| accordance with the provisions of the Video Gambling Act or | 0017| regulations adopted pursuant to that act. | 0018| E. No person may operate a video gambling machine and no | 0019| person may play a video gambling machine unless the department has | 0020| issued a permit for the machine. | 0021| F. All applications for a permit shall provide | 0022| information required by regulation of the department. | 0023| G. A video gambling machine licensee shall place a video | 0024| gambling machine into operation within ten days of issuance of the | 0025| permit for that machine. If a video gambling machine is not placed | 0001| into operation within ten days, the permit shall be canceled by the | 0002| department. | 0003| Section 18. [NEW MATERIAL] VIDEO GAMBLING MACHINE TESTING | 0004| AND INSPECTION.-- | 0005| A. No video gambling machine may be permitted without | 0006| having first been tested and certified for accuracy and reliability | 0007| by an independent testing laboratory approved by the department. | 0008| The costs of the testing shall be paid by the licensee. | 0009| B. No video gambling machine may be operated if it, or | 0010| the software used to control its electronic functions, has been | 0011| modified in any way without having been tested after the | 0012| modification and certified for accuracy and reliability by an | 0013| independent testing laboratory approved by the department. | 0014| C. A licensee seeking to obtain a permit for a video | 0015| gambling machine shall pay all costs of testing the machine. | 0016| D. A permitted video gambling machine and the premises at | 0017| which it is being operated or played shall be open to inspection at | 0018| all times by the department or by any law enforcement officer. | 0019| Whenever the department or any law enforcement officer has probable | 0020| cause to believe that any video gambling machine was obtained from | 0021| an unlicensed manufacturer or distributor, is being operated by an | 0022| unlicensed person, is unpermitted or otherwise fails to meet the | 0023| requirements of the Video Gambling Act or regulations adopted | 0024| pursuant to that act, he shall remove and impound the video | 0025| gambling machine for the purpose of testing and detention and shall | 0001| retain possession of the machine until otherwise ordered by a | 0002| district court. | 0003| Section 19. [NEW MATERIAL] CONDUCT OF VIDEO GAMBLING.-- | 0004| A. No licensee shall allow access for the purpose of | 0005| playing a video gambling machine to any person who is under the age | 0006| of twenty-one years. | 0007| B. No video gambling licensee shall allow access to | 0008| licensed premises for the purpose of playing a video gambling | 0009| machine by any person who is not an active member or a bona fide | 0010| guest of an active member of the qualified organization. | 0011| C. Video gambling machines may not be located on any | 0012| licensed liquor premises unless specifically exempted by the Liquor | 0013| Control Act. | 0014| D. If a video gambling machine fails to meet | 0015| specifications and requirements of the Video Gambling Act or any | 0016| regulation adopted pursuant to that act at any time after a permit | 0017| is issued, the licensee operating the machine shall cease operating | 0018| it immediately and not operate it until it has been adjusted to | 0019| meet all requirements. | 0020| E. All tables displaying prizes or awards shall be | 0021| prominently displayed on each video gambling machine. | 0022| F. A licensee may establish house rules regulating the | 0023| operation and play of the video gambling machines, provided they do | 0024| not conflict with any established by the department. | 0025| G. A licensee operating a video gambling machine shall | 0001| display on the machine, or in a conspicuously visible place, the | 0002| telephone number of the department that can be called to report | 0003| device malfunctions or complaints. | 0004| Section 20. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0005| REQUIREMENTS--MONITORING.-- | 0006| A. A video gambling machine operated by a licensee shall | 0007| be connected to and be capable of providing the following | 0008| information to the department or its contractor through the use of | 0009| existing telecommunications lines and systems and through a data | 0010| report or detailed tape: | 0011| (1) the time of day in hours and minutes in which | 0012| the machine is in play; | 0013| (2) the location of the machine; | 0014| (3) for video pull tab machines, the number of the | 0015| pool of tickets or deal and the size of the pool; | 0016| (4) the serial and permit numbers of the machine; | 0017| (5) the cumulative amount of money inserted into the | 0018| machine at any given time; | 0019| (6) the amount of money contained in the machine at | 0020| any given time; | 0021| (7) the amount of money, credits or other | 0022| consideration paid to players by the machine at any given time; | 0023| (8) the version number of the software running on | 0024| the machine; and | 0025| (9) other information determined by the department | 0001| to be required. | 0002| B. Each licensee that operates video gambling machines, | 0003| at its own expense, shall connect all machines to | 0004| telecommunications systems and lines to allow the department or its | 0005| contractor access to the information required by the Video Gambling | 0006| Act and regulations adopted pursuant to that act as a condition of | 0007| and prior to operating the machines. | 0008| C. A video gambling machine shall contain a printer that | 0009| is capable of printing a performance synopsis of the gambling | 0010| played and creates an exact and identical copy of all items printed | 0011| that is retained inside the machine. A video gambling machine | 0012| shall have electronic and mechanical meters. The printer inside | 0013| the machine shall be capable of printing the information on the | 0014| meters. | 0015| D. The main logic board and the printed circuit board | 0016| containing gambling erasable program read-only memory, or "EPROMs", | 0017| shall be isolated in a locked area of a video gambling machine. | 0018| The EPROMs shall be sealed to the board by the manufacturer using a | 0019| process approved by the department. The sealing shall be of a type | 0020| that permits field examination of the EPROMs and permits the EPROMs | 0021| to be resealed effectively. | 0022| E. A video gambling machine shall have a nonremovable | 0023| serial number plate that provides at least the following | 0024| information: | 0025| (1) the permit number issued by the department; and | 0001| (2) the manufacturer's name, date of manufacture and | 0002| manufacturer's serial number. | 0003| F. Access to a video gambling machine shall be controlled | 0004| through locks. | 0005| G. A video gambling machine shall have surge protection | 0006| and a battery backup system and shall pass a static discharge test | 0007| of at least forty thousand volts. | 0008| H. A video gambling machine, other than a video pull tab | 0009| machine, shall allow for random play and winning. | 0010| Section 21. [NEW MATERIAL] VIDEO GAMBLING MACHINES--TESTING, AUDITING AND SEIZURE.-- | 0011| A. The department may by written directive require a | 0012| licensee, at the licensee's expense, to have a video gambling | 0013| machine, whether or not a permit has been issued for the machine, | 0014| manufactured, distributed, owned, leased or operated by that | 0015| licensee tested for reliability and accuracy by an independent | 0016| laboratory approved or designated by the department. If a test is | 0017| required of a machine, it shall not be operated or distributed by a | 0018| licensee until it has been tested and the department is satisfied | 0019| that the machine is accurate and reliable based upon the results of | 0020| the test. | 0021| B. The department or its designated agents or contractors | 0022| may, without advance notice to a licensee, audit or test the | 0023| operation of a video gambling machine to ensure reliability and | 0024| accuracy. A licensee shall allow access to its video gambling | 0025| machines and its licensed premises to the department or its | 0001| designated agents or contractors immediately upon request. | 0002| C. The department or its designated agents or contractors | 0003| may audit all records of a licensee, whether or not they are in the | 0004| licensee's possession, to ensure compliance with the provisions of | 0005| the Video Gambling Act or any regulations adopted pursuant to that | 0006| act. A licensee requested to produce records relating to its video | 0007| gambling machine operations by the department, its designated | 0008| agents or contractors shall do so immediately upon request. | 0009| D. The department may seize, seal or order a licensee to | 0010| cease operating any or all of its video gambling machines without | 0011| prior notice if the department believes that the licensee is | 0012| violating any provision of the Video Gambling Act or of any | 0013| regulation adopted pursuant to that act or if any machine is not | 0014| accurate or reliable or has been changed or modified in any manner | 0015| not approved by the department. | 0016| Section 22. [NEW MATERIAL] DENIAL, SUSPENSION OR | 0017| REVOCATION OF LICENSE.-- | 0018| A. The department shall refuse to issue or renew or shall | 0019| suspend or revoke any license issued pursuant to the Video Gambling | 0020| Act or shall fine a licensee in an amount not to exceed ten | 0021| thousand dollars ($10,000) per incident, or both, upon a finding | 0022| that the applicant or licensee or any officer, director, employee | 0023| or agent of the applicant or licensee has: | 0024| (1) violated any provision of the Video Gambling Act | 0025| or of any regulation adopted pursuant to that act; | 0001| (2) provided false or misleading information to the | 0002| department; | 0003| (3) been convicted of a felony involving fraud or | 0004| theft or convicted of any gambling-related offense; | 0005| (4) modified or changed any video gambling machine | 0006| so as to endanger or compromise its accuracy, security or | 0007| reliability; | 0008| (5) engaged in dishonest or deceptive practices with | 0009| respect to its video gambling machine operations; or | 0010| (6) conducted its video gambling machine operations | 0011| in a manner that may be considered a public nuisance. | 0012| B. When the department contemplates taking any action | 0013| against an applicant or licensee to refuse to issue, renew, revoke | 0014| or suspend a license or impose a fine, it shall serve written | 0015| notice upon the applicant or licensee containing the following: | 0016| (1) a statement that the department has sufficient | 0017| evidence that, if not rebutted or explained, will justify the | 0018| department in taking the contemplated action; | 0019| (2) a statement indicating the general nature of the | 0020| evidence; and | 0021| (3) a statement advising the applicant or licensee | 0022| that, unless the applicant or licensee within twenty days after | 0023| service of the notice delivers a written request for hearing to the | 0024| department, the department will take the contemplated action. | 0025| C. If the applicant or licensee does not deliver a | 0001| request for hearing within the time required by this section, the | 0002| department may take the action contemplated in the notice, and such | 0003| action shall be final and not subject to judicial review. | 0004| D. If the applicant or licensee delivers a request for | 0005| hearing within the time required by this section, the department | 0006| shall, within twenty days of receipt of the request, notify the | 0007| applicant or licensee of the time and place of hearing and the name | 0008| of the person who shall conduct the hearing for the department, | 0009| which hearing shall be held not more than sixty or less than | 0010| fifteen days from the date of service of the notice of hearing. | 0011| E. All hearings under this section shall be held in Santa | 0012| Fe county. | 0013| F. The department may conduct the hearings or have them | 0014| conducted by a hearing officer appointed by the department. | 0015| G. All hearings shall be open to the public. | 0016| H. A licensee or applicant entitled to and requesting a | 0017| hearing shall have the right to be represented by counsel, to | 0018| present all relevant evidence, to examine all opposing witnesses | 0019| and to have subpoenas issued by the department to compel the | 0020| attendance of witnesses and the production of documents. | 0021| I. The department or hearing officer may impose any | 0022| appropriate evidentiary sanction against a party who fails to | 0023| provide discovery or to comply with a subpoena. | 0024| J. The department or hearing officer shall cause a | 0025| complete record to be made of all evidence received during the | 0001| course of a hearing. | 0002| K. After a hearing has been completed, the department | 0003| shall render its decision as soon as is practicable. | 0004| L. Any applicant or licensee who is aggrieved by an | 0005| adverse decision of the department may obtain a review of the | 0006| decision in the district court of Santa Fe county by filing with | 0007| the court a petition for review within twenty days after the date | 0008| of service of the decision. Failure to file a petition for review | 0009| in the manner and within the time stated shall operate as a waiver | 0010| of the right to judicial review and shall result in the decision of | 0011| the department becoming final. | 0012| M. Upon the review of any decision of the department, the | 0013| district judge shall sit without a jury and may hear oral arguments | 0014| and receive written briefs, but evidence not offered at the hearing | 0015| shall not be taken. The court shall affirm the decision of the | 0016| department unless it finds that the substantial rights of the | 0017| petitioner have been prejudiced because the decision was in | 0018| violation of constitutional provisions, in excess of the statutory | 0019| authority or jurisdiction of the department, made upon unlawful | 0020| procedure affected by other error of law, unsupported by | 0021| substantial evidence based upon a review of the entire record | 0022| submitted or arbitrary or capricious. | 0023| N. Any party to the review proceeding in the district | 0024| court, including the department, may appeal to the supreme court | 0025| from the decision of the district court. | 0001| Section 23. [NEW MATERIAL] RECORDS REQUIRED AND RECORD | 0002| RETENTION.-- | 0003| A. In addition to other records required to be generated | 0004| or kept pursuant to the Video Gambling Act, a licensee shall | 0005| maintain complete video gambling machine operation records, | 0006| including audit tapes, and shall make them available for inspection | 0007| by the department or any law enforcement officer upon request. | 0008| Those records shall include: | 0009| (1) all permit and licensing documents issued by the | 0010| department; | 0011| (2) a complete record of all funds paid out by each | 0012| machine, including the date, time and amount of the funds paid out; | 0013| (3) a record of all gross receipts from operation of | 0014| each machine by date; and | 0015| (4) any records required by regulations adopted | 0016| pursuant to the Video Gambling Act. | 0017| B. Each licensee shall maintain records required by the | 0018| Video Gambling Act or any regulation adopted pursuant to that act, | 0019| within this state, for a minimum period of at least three years. | 0020| C. Each applicant for a license pursuant to the Video | 0021| Gambling Act or current licensee, as a condition of licensure, | 0022| shall grant the department or its authorized designee access to all | 0023| tax returns maintained by the United States internal revenue | 0024| service or the taxation and revenue department that have been filed | 0025| on behalf of any individual having any ownership, managerial, | 0001| directorship or financial interest in the applicant or any activity | 0002| of the licensee carried out pursuant to the Video Gambling Act, and | 0003| those of any entity applying for licensure pursuant to that act. | 0004| The department shall consider those records when determining | 0005| qualifications for initial licensure or actions under Section 22 of | 0006| the Video Gambling Act. | 0007| Section 24. [NEW MATERIAL] TAX IMPOSED--DENOMINATED AS | 0008| VIDEO GAMBLING TAX--RATE--ADMINISTRATION AND ENFORCEMENT.-- | 0009| A. In addition to all other taxes imposed by other state | 0010| laws, an excise tax is imposed for the privilege of engaging in the | 0011| activities authorized pursuant to the Video Gambling Act. The tax | 0012| is denominated as and shall be known as the "video gambling tax". | 0013| B. The video gambling tax is imposed in an amount equal | 0014| to: | 0015| (1) five percent of the receipts of a manufacturer | 0016| from the sales of video gambling machines manufactured in the | 0017| state; | 0018| (2) five percent of the receipts of a distributor | 0019| from the distribution of video gambling machines in the state; and | 0020| (3) ten percent of the net receipts of a person who | 0021| operates video gambling machines. | 0022| C. The video gambling tax shall be paid to, and | 0023| administered and enforced by, the taxation and revenue department | 0024| pursuant to the provisions of the Tax Administration Act. | 0025| Section 25. [NEW MATERIAL] PENALTIES.--A person who | 0001| violates a provision of the Video Gambling Act or regulation | 0002| adopted pursuant to that act is guilty of a misdemeanor and shall | 0003| be sentenced pursuant to the provisions of Section 31-19-1 NMSA | 0004| 1978. A person convicted pursuant to this section is prohibited | 0005| from owning, operating or participating in the proceeds from the | 0006| manufacture, distribution or operation of a video gambling machine | 0007| for a period of five years after the date of the conviction. | 0008| Section 26. [NEW MATERIAL] FUND CREATED.--There is created | 0009| in the state treasury the "video gambling fund". All money in the | 0010| fund and all interest attributable to it is appropriated to the | 0011| department for the purpose of carrying out the provisions of the | 0012| Video Gambling Act. All fees and the net receipts of the video | 0013| gambling tax paid pursuant to the Video Gambling Act or regulations | 0014| adopted pursuant to that act shall be credited to the fund. | 0015| Balances in the fund at the end of a fiscal year shall revert to | 0016| the general fund. | 0017| Section 27. [NEW MATERIAL] SHORT TITLE.--Sections 27 | 0018| through 47 of this act may be cited as the "Charity Games Act". | 0019| Section 28. [NEW MATERIAL] PURPOSE OF ACT.--The purpose of | 0020| the Charity Games Act is to make lawful and regulate the conduct of | 0021| specific games of chance by certain nonprofit organizations. The | 0022| legislature declares that the raising of funds for the promotion of | 0023| certain nonprofit organizations is in the public interest as is | 0024| participation in the activities authorized in that act. | 0025| Section 29. [NEW MATERIAL] DEFINITIONS.--As used in the | 0001| Charity Games Act: | 0002| A. "bingo" means the game commonly known as bingo in | 0003| which prizes are awarded on the basis of designated numbers or | 0004| symbols on a card conforming to numbers or symbols selected at | 0005| random and in which no cards are sold except at the time and place | 0006| of the game; | 0007| B. "bingo hall permit" means a permit issued by the | 0008| department to a commercial lessor for premises that have been | 0009| approved by the department for the conduct of games of chance by | 0010| more than two licensed qualified organizations; | 0011| C. "commercial lessor" means a person who leases premises | 0012| to two or more licensed qualified organizations for the conduct of | 0013| lawful games of chance; | 0014| D. "department" means the regulation and licensing | 0015| department, the superintendent of regulation and licensing or an | 0016| employee of the department exercising authority lawfully delegated | 0017| to that employee by the superintendent; | 0018| E. "distributor" means a person who purchases or obtains | 0019| equipment, devices or supplies used in games of chance and who | 0020| sells or otherwise furnishes those items to another person for use, | 0021| resale, display or operation of the equipment, devices or supplies | 0022| in this state; | 0023| F. "electronic bingo" means a game in which a player uses | 0024| an electronic device that simulates the numbers and symbols on a | 0025| card in bingo for the opportunity to win a prize; | 0001| G. "equipment" means: | 0002| (1) with respect to bingo, the receptacle and | 0003| numbered objects drawn from it; the master board upon which the | 0004| numbered objects are placed as drawn; the cards or sheets bearing | 0005| numbers or other designations to be covered and the objects used to | 0006| cover them; the board or signs, however operated, used to announce | 0007| or display the numbers or designations as they are drawn; the | 0008| public address system; and all other articles essential to the | 0009| operation, conduct and playing of bingo; or | 0010| (2) with respect to raffle, implements, devices and | 0011| machines designed, intended or used for the conduct of raffle and | 0012| the identification of the winning number or unit and the ticket or | 0013| other evidence or right to participate in raffle; | 0014| H. "game manager" means a person, whether compensated or | 0015| not, who is responsible for operating and controlling authorized | 0016| games of chance and to whom a licensed qualified organization has | 0017| delegated the authority to make decisions regarding the operation | 0018| of the games; | 0019| I. "game of chance" means bingo, raffle, pull tabs, | 0020| electronic bingo or lottery game; | 0021| J. "gross profit" means gross receipts less the amount | 0022| actually expended for prizes; | 0023| K. "gross receipts" means receipts from the sale of | 0024| shares, tickets or rights in any manner connected with | 0025| participation in a game of chance or the right to participate in a | 0001| game of chance, including any admission fee or charge, receipts | 0002| from the sale of equipment or supplies and all other miscellaneous | 0003| receipts; | 0004| L. "lawful purpose" means the primary purpose for which a | 0005| qualified organization is formed; | 0006| M. "lessor" means a person who leases premises to a | 0007| qualified organization for the conduct of lawful games of chance; | 0008| N. "licensed premises" means premises in or on which | 0009| licensed games of chance are conducted, as approved for a licensed | 0010| qualified organization by the department; | 0011| O. "licensee" means a person to whom a license under the | 0012| Charity Games Act is issued by the department; | 0013| P. "lottery game" means an instant lottery game | 0014| authorized and conducted pursuant to the New Mexico Lottery Act or | 0015| the Charity Games Act; | 0016| Q. "manufacturer" means a person who assembles from raw | 0017| materials or subparts a completed piece of equipment or pieces of | 0018| equipment, devices or supplies for conducting games of chance and | 0019| who sells or furnishes the equipment, devices or supplies to a | 0020| distributor and includes a person who converts, modifies, adds to | 0021| or removes parts from any equipment used in a game of chance; | 0022| R. "member" means an individual who has qualified for | 0023| membership in a qualified organization pursuant to its charter, | 0024| articles of incorporation, bylaws, rules or other written | 0025| statement, and that action is recorded in the official minutes of a | 0001| regular meeting, or an individual who has held full and regular | 0002| membership status in the organization for a period of not less than | 0003| twelve consecutive months prior to participation in the management | 0004| or operation of any games of chance pursuant to the Charity Games | 0005| Act; | 0006| S. "net profit" mean gross receipts less the prizes paid, | 0007| expenses, charges, fees and deductions specifically authorized | 0008| pursuant to the Charity Games Act; | 0009| T. "occasion" means a single gathering or session at | 0010| which a series of one or more games of chance is played; | 0011| U. "person" means an individual or other legal entity; | 0012| V. "premises" means all or the part of a building or | 0013| property used for the purpose of playing a game of chance; | 0014| W. "pull tab" means a single folded or banded ticket or | 0015| card, the face of which is initially covered or otherwise hidden | 0016| from view to conceal one or more numbers or symbols, and the ticket | 0017| or card is part of a set of tickets or cards out of which some | 0018| tickets or cards have been designated prior to use in pull tabs as | 0019| winning tickets or cards; | 0020| X. "pull tabs" means a game in which a person pays | 0021| directly or indirectly some consideration for the opportunity to | 0022| obtain a pull tab, view the numbers or symbols on it and possibly | 0023| obtain a prize-winning pull tab but does not include any activity | 0024| that is authorized and regulated pursuant to the New Mexico Lottery | 0025| Act; | 0001| Y. "qualified organization" means an organization | 0002| described in Paragraphs (1) through (8) of this subsection that has | 0003| been granted an exemption from federal income tax by the United | 0004| States commissioner of internal revenue as an organization | 0005| described in Section 501(c) of the Internal Revenue Code of 1986, | 0006| as amended, that is exempt from state income tax pursuant to | 0007| Section 7-2-4 NMSA 1978 and that is not organized or operated | 0008| primarily for the purpose of conducting gaming activities: | 0009| (1) a charitable organization that is not organized | 0010| for pecuniary profit, is operated for the relief of poverty, | 0011| distress or other condition of public concern in New Mexico and has | 0012| been operated for those purposes for three years immediately prior | 0013| to making application for a license pursuant to the Charity Games | 0014| Act; | 0015| (2) an educational organization within the state | 0016| that is not organized for pecuniary profit, has as its primary | 0017| purpose an educational endeavor designed to develop the | 0018| capabilities of individuals by instruction and has been in | 0019| existence in New Mexico for three years immediately prior to making | 0020| application for a license pursuant to the Charity Games Act; | 0021| (3) a labor organization within the state that is | 0022| not organized for pecuniary profit, exists for the sole purpose of | 0023| dealing with employers on behalf of their employees concerning | 0024| grievances, labor disputes, wages, rates of pay, hours of | 0025| employment or conditions of work and has been in existence in New | 0001| Mexico for three years immediately prior to making application for | 0002| a license pursuant to the Charity Games Act; | 0003| (4) a voluntary firemen's organization within the | 0004| state that is not organized for pecuniary profit, exists for the | 0005| sole purpose of providing fire-fighting and rescue services to | 0006| specific communities and has been in existence in New Mexico for | 0007| three years immediately prior to making application for a license | 0008| pursuant to the Charity Games Act; | 0009| (5) an environmental organization within the state | 0010| that is not organized for pecuniary profit, is primarily concerned | 0011| with the protection and preservation of the natural environment and | 0012| has existed in New Mexico for three years immediately prior to | 0013| making application for a license pursuant to the Charity Games Act; | 0014| (6) a religious organization, including any church, | 0015| temple, synagogue or other house of worship or bona fide religious | 0016| congregation within the state, that is not organized for pecuniary | 0017| profit, whose members gather in common membership at a specific | 0018| location on specified dates and times for mutual support and | 0019| edification in piety, worship and religious observances or for | 0020| religious purposes and that has existed in New Mexico for three | 0021| years immediately prior to making application for a license | 0022| pursuant to the Charity Games Act; | 0023| (7) a fraternal organization within this state that | 0024| is not organized for pecuniary profit and that: | 0025| (a) is a branch, lodge or chapter of a national | 0001| or state organization and exists for the common business, | 0002| brotherhood or other interests of its members; | 0003| (b) has existed in New Mexico for at least | 0004| three years immediately prior to making application for a license | 0005| under the Charity Games Act; and | 0006| (c) is not a college or high school fraternity | 0007| or sorority; and | 0008| (8) a veterans' organization within this state, or | 0009| any branch, lodge or chapter of a national or state organization | 0010| within this state, that is not organized for pecuniary profit, the | 0011| membership of which consists entirely of individuals who were | 0012| members of the armed services or forces of the United States and | 0013| that has been in existence in New Mexico for at least three years | 0014| immediately prior to making application for a license pursuant to | 0015| the Charity Games Act; | 0016| Z. "raffle" means a game in which individual tickets are | 0017| sold and a prize or prizes are awarded, with the winner determined | 0018| by a random drawing that takes place at a set location and date and | 0019| includes door prizes but does not include any activity that is | 0020| authorized and regulated under the New Mexico Lottery Act; and | 0021| AA. "substantial interest" means the interest a person | 0022| has in an organization, association or business as follows: | 0023| (1) if, with respect to a sole proprietorship, an | 0024| individual or his spouse owns, operates, manages or conducts, | 0025| directly or indirectly, any part of the organization, association | 0001| or business; | 0002| (2) if, with respect to a partnership, the | 0003| individual or his spouse has a right to a share in any of the | 0004| profits or potential profits of the partnership activities; | 0005| (3) if, with respect to a corporation, an individual | 0006| or his spouse is an officer or director of or the individual or his | 0007| spouse is a holder, directly or beneficially, of five percent or | 0008| more of any class of stock of the corporation; | 0009| (4) if, with respect to an organization not covered | 0010| by Paragraph (1), (2) or (3) of this subsection, an individual or | 0011| his spouse is an officer or manages the business affairs of the | 0012| organization or the individual or his spouse owns, controls or has | 0013| the right to control five percent or more of the assets of the | 0014| organization; or | 0015| (5) if an individual or his spouse provides ten | 0016| percent or more of the capital, whether in cash, goods or services, | 0017| for the operation of a business, association or organization during | 0018| a calendar year. | 0019| Section 30. [NEW MATERIAL] REGULATIONS.-- | 0020| A. The department may make and adopt regulations | 0021| necessary to implement the Charity Games Act, including regulations | 0022| that establish the type, scope and manner of conducting the games | 0023| of chance authorized by that act. Except as provided in Subsection | 0024| B of this section, no regulation affecting any person or agency | 0025| outside the department shall be adopted, amended or repealed | 0001| without a public hearing on the proposed action before the | 0002| department or a designated hearing officer. The public hearing | 0003| shall be held in Santa Fe county. Notice of the subject matter of | 0004| the regulation; the date, time and place of the public hearing; the | 0005| manner in which interested persons may present their views; and the | 0006| method by which copies of the proposed regulation, amendment or | 0007| repeal may be obtained shall be published once at least thirty days | 0008| prior to the hearing date in a newspaper of general circulation. | 0009| All regulations shall be filed in accordance with the State Rules | 0010| Act. | 0011| B. If the department determines that an emergency exists | 0012| that requires immediate action to implement or enforce the | 0013| provisions of the Charity Games Act, it may adopt a regulation or | 0014| amend or repeal a regulation without notice and hearing, and the | 0015| emergency action shall be effective immediately upon its filing | 0016| pursuant to the State Rules Act. The emergency action shall not | 0017| continue in effect longer than forty-five days unless within that | 0018| time the department commences proceedings to ratify the emergency | 0019| action by issuing the notice required in Subsection A of this | 0020| section. If the department commences proceedings by issuing the | 0021| notice, the emergency action shall remain in effect until ratified | 0022| or until the procedures are otherwise completed. | 0023| C. Regulations adopted by the department may include any | 0024| provisions the department deems appropriate to ensure the | 0025| integrity, honesty and security of the conduct of games of chance. | 0001| Section 31. [NEW MATERIAL] ORGANIZATIONS AND PERSONS | 0002| ELIGIBLE FOR LICENSES--FEES.-- | 0003| A. A qualified organization that has had, since the date | 0004| of filing an application for a license pursuant to the Charity | 0005| Games Act and during the entire three-year period preceding the | 0006| filing of its application, an active membership engaged in carrying | 0007| out the objects of the organization may be issued a license by the | 0008| department pursuant to the Charity Games Act if it complies with | 0009| all requirements for the licensure pursuant to that act and | 0010| regulations adopted by the department. | 0011| B. Manufacturers, distributors, commercial lessors and | 0012| game managers who comply with the requirements of the Charity Games | 0013| Act and regulations of the department may be issued licenses | 0014| pursuant to the Charity Games Act. | 0015| C. No manufacturer, distributor or commercial lessor or | 0016| any person who has a substantial interest in a manufacturer, | 0017| distributor or commercial lessor may be a game manager. | 0018| D. The department shall adopt regulations establishing | 0019| licensing fees. The amount of the fees shall bear a direct | 0020| relationship to the costs estimated to be incurred by the | 0021| department in administering the Charity Games Act. The department | 0022| may establish different classes of licenses within a category of | 0023| license and may provide for different fees for the different | 0024| classes. License fees may be based on the estimated gross receipts | 0025| of the licensee. Fees for the following licenses shall not exceed | 0001| the indicated amounts: | 0002| (1) commercial lessor, two hundred fifty dollars | 0003| ($250); | 0004| (2) bingo hall permits, five hundred dollars ($500); | 0005| and | 0006| (3) game manager, one hundred dollars ($100). | 0007| E. The holder of any license issued pursuant to the | 0008| Charity Games Act has no vested property right in the license. The | 0009| license is the property of the state. Licenses issued pursuant to | 0010| the Charity Games Act are not subject to sale, lease, devise, | 0011| transfer, assignment, execution, attachment, a security | 0012| transaction, liens or receivership. | 0013| F. All licenses issued pursuant to the Charity Games Act | 0014| shall be issued for a period of two years. | 0015| G. In addition to basic license or permit fees, the | 0016| department may require additional fees of manufacturers, | 0017| distributors and commercial lessors necessary to defray the costs | 0018| of background investigations, including but not limited to costs | 0019| for applicants for whom background information is not readily | 0020| available. The department shall adopt regulations for the | 0021| assessment and reasonable notice of time for payment of the | 0022| additional fees. | 0023| H. The department may issue temporary or provisional | 0024| licenses for periods not to exceed sixty days. | 0025| Section 32. [NEW MATERIAL] APPLICATION FOR LICENSE--GENERAL PROVISIONS GOVERNING LICENSURE.-- | 0001| A. Any person seeking licensure pursuant to the Charity | 0002| Games Act shall submit an application to the department on forms | 0003| provided by the department. The application shall contain | 0004| information required by regulation of the department. In addition | 0005| to the information required on the application form, the department | 0006| may require the applicant to furnish additional information the | 0007| department deems necessary to fulfill the purposes and requirements | 0008| of the Charity Games Act. | 0009| B. An applicant for a license shall, during pendency of | 0010| the application, notify the department immediately of any change | 0011| respecting any facts set forth in the application. A | 0012| change occurring after the issuance of a license shall be reported | 0013| to the department within ten days of the date of the change. A | 0014| licensee shall notify the department of a change in its | 0015| organization, structure or mode of operation or a change in the | 0016| identity of or the nature or extent of an interest held by persons | 0017| named or required to be named in the application. Failure to give | 0018| a required notice of change is cause for denial of an application | 0019| for a license or suspension or revocation of a license that has | 0020| been issued. | 0021| C. The department may require fingerprinting of and | 0022| background checks on any person seeking licenses pursuant to the | 0023| Charity Games Act, any person holding an interest in games of | 0024| chance or a building or equipment to be used for conducting games | 0025| of chance or any person participating as an employee in the | 0001| operation of games of chance. The department may establish and | 0002| assess fees to defray the expenses of fingerprinting and conducting | 0003| background checks. | 0004| Section 33. [NEW MATERIAL] QUALIFIED ORGANIZATION | 0005| LICENSE.-- | 0006| A. A license may be issued to a qualified organization to | 0007| conduct games of chance. | 0008| B. A qualified organization shall designate in its | 0009| license application a game manager and up to two assistant game | 0010| managers, who shall be members of the organization, designated as | 0011| responsible for the conduct of the games of chance on each | 0012| occasion. | 0013| C. A qualified organization shall designate in its | 0014| license application a member of the organization to be the | 0015| financial officer in full charge and primarily responsible for the | 0016| proper distribution of the organization's net profits in accordance | 0017| with the Charity Games Act. | 0018| D. An applicant for a qualified organization license | 0019| shall have at the time of application and licensing at least | 0020| twenty-five members. | 0021| E. An applicant for a qualified organization license | 0022| shall not have as an officer or member of its governing body any | 0023| person who, within two years prior to issuance of the license, has | 0024| had a license issued by the department revoked for a violation of | 0025| law or department regulations. | 0001| F. If premises are to be leased or rented by the | 0002| qualified organization applying for a license, a copy of the lease | 0003| or rental agreement shall be provided with the application. | 0004| Section 34. [NEW MATERIAL] COMMERCIAL LESSOR'S LICENSE.-- | 0005| A. A commercial lessor's license may be issued to a | 0006| person desiring to lease premises to more than one qualified | 0007| organization. No person may lease premises to more than one | 0008| qualified organization for the conduct of games of chance unless | 0009| the person has a commercial lessor's license for the premises to be | 0010| leased. A lessor may not lease premises for the conduct of games | 0011| of chance at more than one location without a separate commercial | 0012| lessor's license for each location. The department may issue one | 0013| or more commercial lessor's licenses to a person who applies and | 0014| complies with the requirements for licensure contained in the | 0015| Charity Games Act and department regulations. | 0016| B. The following persons are not eligible for a | 0017| commercial lessor's license: | 0018| (1) an elected or appointed public officer or | 0019| employee; | 0020| (2) a person who extends credit to, loans money to | 0021| or pays or provides for the payment of license fees for a qualified | 0022| organization; or | 0023| (3) a person married or related in the first degree | 0024| by consanguinity or affinity to one of those persons listed in | 0025| Paragraph (1) or (2) of this subsection. | 0001| C. No commercial lessor may lease premises to more than | 0002| seven licensed qualified organizations for the conduct of games of | 0003| chance. | 0004| D. No lessor or commercial lessor shall directly or | 0005| indirectly: | 0006| (1) provide to the players, patrons, spectators or | 0007| charitable organization members or workers present at the lessor's | 0008| premises anything of economic value in the form of a gift or prize, | 0009| regardless of whether or not compensation is required for receipt | 0010| of the prize or gift; | 0011| (2) loan money to a qualified organization to which | 0012| premises are leased, but a lessor or commercial lessor may forebear | 0013| or reduce the rent to an amount less than the amount stipulated by | 0014| written lease as the lessor or commercial lessor does not reclaim | 0015| the amount of any reduction or forbearance; or | 0016| (3) sell, donate or otherwise distribute rights of | 0017| participation in any game of chance. | 0018| E. No lessor, commercial lessor or an employee or agent | 0019| of a lessor or commercial lessor, and no owner of premises or any | 0020| person having a substantial interest in the owner, lessor or | 0021| commercial lessor, shall take part in, share in the proceeds from | 0022| the conduct of or assist with the holding, operating or conduct of | 0023| a game of chance. The department may by regulation further define | 0024| or list the types of activity that constitute prohibited | 0025| participation in the conduct of a game of chance. | 0001| F. The department shall issue bingo hall permits in | 0002| accordance with regulations. | 0003| G. No lessor, commercial lessor or person having a | 0004| substantial interest in a lessor or commercial lessor shall: | 0005| (1) serve as an officer, director or member of the | 0006| governing body of any licensed qualified organization that rents, | 0007| leases or uses the premises of the lessor or commercial lessor for | 0008| conducting games of chance; or | 0009| (2) provide accounting services to a licensed | 0010| qualified organization conducting games of chance on premises | 0011| leased from the lessor or commercial lessor. | 0012| H. No lease or contract between a qualified organization | 0013| licensee and a lessor or commercial lessor shall provide for | 0014| consideration based upon a percentage or share in the proceeds from | 0015| the conduct of any game of chance by the qualified organization | 0016| licensee. | 0017| Section 35. [NEW MATERIAL] MANUFACTURER'S AND | 0018| DISTRIBUTOR'S LICENSES.-- | 0019| A. No person may sell, supply or store for the purpose of | 0020| sale to a person in this state or for use in this state supplies, | 0021| devices or equipment designed to be used in playing games of chance | 0022| or engage in any intrastate activities involving those items, | 0023| unless the manufacturer or distributor has a current manufacturer's | 0024| or distributor's license issued by the department. | 0025| B. An applicant for a manufacturer's or distributor's | 0001| license shall file with the department a written application on a | 0002| form prescribed by the department. | 0003| C. The following persons are not eligible for a | 0004| manufacturer's or distributor's license: | 0005| (1) an elected or appointed public officer or public | 0006| employee; | 0007| (2) a person who conducts, promotes or administers | 0008| or assists in conducting, promoting or administering games of | 0009| chance for which a license is required by the Charity Games Act; | 0010| (3) a person who has had a license to manufacture or | 0011| distribute gaming equipment, devices or supplies revoked by another | 0012| state within one year preceding the date of application; or | 0013| (4) an individual related in the first degree by | 0014| consanguinity or affinity to an individual ineligible to receive a | 0015| license pursuant to the Charity Games Act. | 0016| D. The Charity Games Act does not apply to manufacturers | 0017| or distributors licensed by the New Mexico lottery authority who do | 0018| not sell or supply or offer to sell or supply | 0019| equipment, devices or supplies for use by licensed qualified | 0020| organizations. | 0021| E. No manufacturer or distributor shall solicit sales or | 0022| sell or ship equipment for games of chance for use or storage in | 0023| this state before a license is issued to the manufacturer or | 0024| distributor by the department. | 0025| F. No distributor shall rent or lease equipment to a | 0001| licensed qualified organization on an income-sharing basis or on a | 0002| percentage-of-income-sharing basis. | 0003| Section 36. [NEW MATERIAL] GAME MANAGER'S LICENSE.-- | 0004| A. All games of chance conducted by a licensed qualified | 0005| organization shall be under the supervision of a game manager or | 0006| assistant game manager. A game manager designated by an | 0007| organization is responsible for the gross receipts of the | 0008| organization and for the conduct of all games of chance in | 0009| compliance with all laws and regulations. | 0010| B. A licensed qualified organization may not have more | 0011| than one game manager and two assistant game managers at any time. | 0012| C. A person may not serve as a game manager for a | 0013| licensed qualified organization unless the person possesses a valid | 0014| game manager's license issued by the department. The department | 0015| shall not issue a game manager's license to a person who is a | 0016| manufacturer, distributor, lessor, commercial lessor or person | 0017| having a substantial financial interest in a manufacturer, | 0018| distributor, lessor or commercial lessor. | 0019| D. The department may by regulation require all game | 0020| managers to receive training prior to assuming the duties of a game | 0021| manager and periodic training regarding the laws and regulations | 0022| governing lawful games of chance. | 0023| Section 37. [NEW MATERIAL] DENIAL, SUSPENSION OR | 0024| REVOCATION OF LICENSE.-- | 0025| A. If, for reasons beyond the control of the department, | 0001| sufficient information is not available to allow the department to | 0002| determine the eligibility of an applicant for a license authorized | 0003| to be issued pursuant to the Charity Games Act, the department may | 0004| deny the application unless and until the applicant provides the | 0005| required information. | 0006| B. The department shall deny an application, or suspend | 0007| or revoke any license or permit issued by it, if the applicant or | 0008| licensee or any person with a substantial interest in the applicant | 0009| or licensee: | 0010| (1) has ever been convicted of a felony or any | 0011| offense punishable by one year or more in prison, a crime involving | 0012| gambling or assault or a criminal violation involving the use of a | 0013| firearm; | 0014| (2) has violated, failed or refused to comply with | 0015| the provisions, requirements, conditions, limitations or duties | 0016| imposed by the Charity Games Act or any regulation adopted by the | 0017| department pursuant to that act; | 0018| (3) knowingly causes, aids, abets or conspires with | 0019| another to cause any person to violate any of the provisions of the | 0020| Charity Games Act or the regulations of the department adopted | 0021| pursuant to that act; | 0022| (4) has obtained a license or permit by fraud, | 0023| misrepresentation, concealment or through inadvertence or mistake; | 0024| (5) has been convicted of or forfeited bond upon a | 0025| charge of or pleaded guilty to forgery, larceny, extortion, | 0001| conspiracy to defraud, willful failure to make required payments or | 0002| reports to a governmental agency at any level, filing false reports | 0003| therewith, any similar offense or offenses, bribing or otherwise | 0004| unlawfully influencing a public official or employee of any state | 0005| or the United States or any crime, whether a felony or misdemeanor, | 0006| involving any game of chance or physical harm to individuals or | 0007| involving moral turpitude; | 0008| (6) makes a misrepresentation of or fails to | 0009| disclose a material fact to the department; | 0010| (7) if a qualified organization, has failed to earn | 0011| a net profit during any calendar year from the conduct of games of | 0012| chance; or | 0013| (8) is subject to current prosecution for any | 0014| offense described in Paragraphs (1) through (6) of this subsection. | 0015| C. If any license is revoked, the holder of the revoked | 0016| license is not eligible to apply for another license until after | 0017| the expiration of the period of one year from the date of such | 0018| revocation or such longer period of time as the department may | 0019| reasonably determine, not to exceed five years. The licensee shall | 0020| be notified in writing at the time of revocation of the period of | 0021| ineligibility and the reasons for the determination. | 0022| D. When the department contemplates taking any action | 0023| against an applicant or licensee to refuse to issue or renew or to | 0024| revoke or suspend a license, it shall serve written notice upon the | 0025| applicant or licensee containing the following: | 0001| (1) a statement that the department has sufficient | 0002| evidence, which if not rebutted or explained, will justify the | 0003| department in taking the contemplated action; | 0004| (2) a statement indicating the general nature of the | 0005| evidence; and | 0006| (3) a statement advising the applicant or licensee | 0007| that unless the applicant or licensee within twenty days after | 0008| service of the notice delivers a written request for hearing to the | 0009| department, the department will take the contemplated action. | 0010| E. If the applicant or licensee does not deliver a | 0011| request for hearing within the time required by this section, the | 0012| department may take the action contemplated in the notice, and such | 0013| action shall be final and not subject to judicial review. | 0014| F. If the applicant or licensee delivers a request for | 0015| hearing within the time required by this section, the department | 0016| shall, within twenty days of receipt of the request, notify the | 0017| applicant or licensee of the time and place of hearing and the name | 0018| of the person who shall conduct the hearing for the department, | 0019| which hearing shall be held not more than sixty nor less than | 0020| fifteen days from the date of service of the notice of hearing. | 0021| G. All hearings under this section shall be held in Santa | 0022| Fe county. | 0023| H. The department may conduct the hearings or have them | 0024| conducted by a hearing officer appointed by the department. | 0025| I. All hearings shall be open to the public. | 0001| J. A licensee or applicant entitled to and requesting a | 0002| hearing shall have the right to be represented by counsel, to | 0003| present all relevant evidence, to examine all opposing witnesses | 0004| and to have subpoenas issued by the department to compel the | 0005| attendance of witnesses and the production of documents. | 0006| K. The department or hearing officer may impose any | 0007| appropriate evidentiary sanction against a party who fails to | 0008| provide discovery or to comply with a subpoena. | 0009| L. The department or hearing officer shall cause a | 0010| complete record to be made of all evidence received during the | 0011| course of a hearing. | 0012| M. After a hearing has been completed, the department | 0013| shall render its decision as soon as is practicable. | 0014| N. Any applicant or licensee who, after a properly | 0015| requested hearing, is aggrieved by an adverse decision of the | 0016| department may obtain a review of the decision in the district | 0017| court of Santa Fe county by filing with the court a petition for | 0018| review within twenty days after the date of service of the | 0019| decision. Failure to file a petition for review in the manner and | 0020| within the time stated shall operate as a waiver of the right to | 0021| judicial review and shall result in the decision of the department | 0022| becoming final. | 0023| O. Upon the review of any decision of the department, the | 0024| district judge shall sit without a jury and may hear oral arguments | 0025| and receive written briefs, but evidence not offered at the hearing | 0001| shall not be taken. The court shall affirm the decision of the | 0002| department unless it finds that the substantial rights of the | 0003| petitioner have been prejudiced because the decision was in | 0004| violation of constitutional provisions in excess of the statutory | 0005| authority or jurisdiction of the department, made upon unlawful | 0006| procedure, affected by other error of law unsupported by | 0007| substantial evidence based upon a review of the entire record | 0008| submitted, arbitrary or capricious. | 0009| P. Any party to the review proceeding in the district | 0010| court, including the department, may appeal to the supreme court | 0011| from the decision of the district court. | 0012| Section 38. [NEW MATERIAL] CONDUCT OF GAMES--PREMISES--EQUIPMENT--GENERAL PROVISIONS.-- | 0013| A. A qualified organization holding a current qualified | 0014| organization license pursuant to the Charity Games Act may conduct | 0015| the following specific games of chance as defined and restricted by | 0016| the Charity Games Act and the regulations of the department: | 0017| (1) bingo; | 0018| (2) pull tabs; | 0019| (3) electronic bingo; | 0020| (4) raffle; or | 0021| (5) lottery game. | 0022| B. Each license issued to a qualified organization shall | 0023| be in a form prescribed by the department and shall be | 0024| conspicuously displayed at the place where any game of chance is | 0025| being conducted at all times during the conduct of the game and for | 0001| at least thirty minutes after the last game has been concluded or | 0002| the premises are vacated, whichever is earlier. | 0003| C. A licensed qualified organization may not conduct | 0004| games of chance at any location other than the single location | 0005| approved as its licensed premises by the department, except as | 0006| follows: | 0007| (1) upon prior written approval of the department, | 0008| the licensee may conduct one of its sessions of games of chance | 0009| each year at a temporary location for a special event or similar | 0010| purpose; and | 0011| (2) a veterans' organization that is a licensee | 0012| pursuant to the Charity Games Act and whose licensed premises is | 0013| located in a bingo hall may obtain from the department a separate | 0014| permit authorizing the sale of paper pull tabs at its chapter or | 0015| post location, provided that the chapter or post location is | 0016| restricted to members and bona fide guests of the members of the | 0017| licensee organization. | 0018| D. No person shall hold, operate or conduct any game of | 0019| chance under a qualified organization license issued pursuant to | 0020| the Charity Games Act except under the supervision of a licensed | 0021| game manager. The game manager and any assistant game managers | 0022| shall be active members of the qualified organization licensed to | 0023| conduct games of chance, except that a game manager licensed | 0024| pursuant to the Charity Games Act may supervise games for licensed | 0025| qualified organizations other than the organization of which he is | 0001| a member. The department shall be notified in writing of a change | 0002| in game managers. Notification shall be made prior to the date | 0003| that the new game manager assumes the prior game manager's duties. | 0004| The game manager or assistant game manager shall supervise all | 0005| activities on the occasion for which he is in charge and be | 0006| responsible for making all reports required of the conduct of games | 0007| and accounting for gross receipts. | 0008| E. No person shall assist in the holding, operating or | 0009| conducting of any games of chance pursuant to a qualified | 0010| organization license except an active member of the licensee or a | 0011| member of an organization or association that is an auxiliary to | 0012| the licensee, a member of an organization or association of which | 0013| the licensee is an auxiliary or a member of an organization or | 0014| association that is affiliated with the licensee by being, with it, | 0015| auxiliary to another organization or association. This provision | 0016| does not prohibit bookkeepers and accountants from assisting in | 0017| preparation of required financial reports. | 0018| F. No item of expense shall be incurred or paid in | 0019| connection with the holding, operating or conducting of any game of | 0020| chance held, operated or conducted pursuant to any license issued | 0021| pursuant to the Charity Games Act except bona fide expenses in a | 0022| reasonable amount for goods, wares and merchandise furnished or | 0023| services rendered reasonably necessary for the holding, operating | 0024| or conducting of the games of chance. | 0025| G. The premises where any game of chance is being held, | 0001| operated or conducted or where it is intended that any equipment be | 0002| used shall at all times be open to inspection by the department, | 0003| its agents and employees and by peace officers. | 0004| H. No licensed qualified organization may obtain by | 0005| purchase or any other manner equipment, devices or supplies from a | 0006| person other than a distributor licensed pursuant to the Charity | 0007| Games Act, except that a licensed qualified organization may make | 0008| an occasional sale of equipment or supplies to another licensed | 0009| qualified organization with the prior written permission of the | 0010| department. No game of chance shall be conducted with any | 0011| equipment except that which is owned or leased by the licensee. | 0012| I. No game of chance shall be conducted more than five | 0013| times in any one calendar week, with no game lasting more than four | 0014| hours on each occasion and not more than two occasions in one | 0015| calendar day by any one licensee. | 0016| J. No alcoholic beverages may be dispensed, sold or | 0017| consumed on any premises authorized for the conduct of lawful games | 0018| of chance, except on the premises of licensed qualified | 0019| organizations that are veterans' or fraternal organizations that: | 0020| (1) hold a current club liquor license for such | 0021| premises pursuant to the Liquor Control Act; and | 0022| (2) restrict admittance to the premises licensed | 0023| pursuant to the Charity Games Act and the Liquor Control Act | 0024| exclusively to members of the organization and bona fide guests of | 0025| the members who are twenty-one years of age or older. | 0001| Section 39. [NEW MATERIAL] TAX IMPOSED--DENOMINATED AS | 0002| CHARITY GAMES TAX--RATE--ADMINISTRATION AND ENFORCEMENT.-- | 0003| A. In addition to other taxes imposed by other state | 0004| laws, an excise tax is imposed for the privilege of engaging in the | 0005| activity of commercial leasing for the conduct of charity games | 0006| authorized pursuant to the Charity Games Act. The tax is | 0007| denominated as and shall be known as the "charity games tax". | 0008| B. The charity games tax is imposed in an amount equal to | 0009| ten percent of the receipts of a commercial lessor received | 0010| pursuant to a contract or lease with a licensed qualified | 0011| organization under which premises are leased, rented or provided to | 0012| the licensed qualified organization for the conduct of games of | 0013| chance authorized pursuant to the Charity Games Act. | 0014| C. The charity games tax shall be paid to and | 0015| administered and enforced by the taxation and revenue department | 0016| pursuant to the provisions of the Tax Administration Act. | 0017| Section 40. [NEW MATERIAL] REPORTING REQUIREMENTS.-- | 0018| A. Every qualified organization licensed to conduct games | 0019| of chance and every applicant for a qualified organization license | 0020| shall file quarterly reports, an annual financial report and an | 0021| annual activity report containing the information required by | 0022| department regulations. The information required by the department | 0023| may include the information deemed necessary by the department to | 0024| fully disclose the eligibility and ability of the organization to | 0025| lawfully conduct games of chance, the participants in the operation | 0001| of games of chance, the amount | 0002| of gross receipts, gross profit and net profit, the distribution | 0003| and utilization of all revenue from games of chance, the | 0004| organization's progress in fulfillment of the purposes of the | 0005| organization and the organization's compliance with the Charity | 0006| Games Act. The department may take into account the nature and | 0007| extent of the games of chance conducted or to be conducted by the | 0008| licensee or applicant or otherwise in determining the extent of | 0009| information required. Each licensed qualified organization or | 0010| applicant for a qualified organization license shall maintain and | 0011| keep the books and records necessary to substantiate the | 0012| particulars of each report. | 0013| B. Every manufacturer and distributor shall file | 0014| quarterly reports providing information required by regulation of | 0015| the department. | 0016| C. Every commercial lessor shall file semiannual reports | 0017| providing information required by regulation of the department. | 0018| Section 41. [NEW MATERIAL] ACCOUNTING BY QUALIFIED | 0019| ORGANIZATIONS--ALLOWABLE EXPENSES--GAME ACCOUNTS.-- | 0020| A. All money collected or received from the sale of | 0021| admission, extra regular cards, special game cards, supplies and | 0022| all other receipts from the conduct of games of chance shall be | 0023| deposited in a special game account of the licensee, which shall | 0024| contain only such money. All expenses for the game shall be | 0025| withdrawn and paid directly from the game account by consecutively | 0001| numbered checks duly signed by specified officers of the licensee | 0002| and payable to a specific person or organization. There shall be | 0003| written on the check the nature of the expense for which the check | 0004| is drawn. No check shall be drawn to "cash" or a fictitious payee. | 0005| B. Gross profits from games of chance may only be spent | 0006| for allowable expenses or lawful purposes. Expenses may be | 0007| incurred only for the following purposes: | 0008| (1) the purchase of goods, wares and merchandise | 0009| furnished; | 0010| (2) payment for services rendered that are | 0011| reasonably necessary for repairs of equipment owned by the licensee | 0012| or operating or conducting games of chance; | 0013| (3) rent if the premises are rented or for | 0014| janitorial services if not rented; | 0015| (4) reasonable accountants' fees and bank charges; | 0016| (5) utilities that are not included in rent, such as | 0017| telephone; | 0018| (6) license fees and federal or state taxes imposed | 0019| on gross receipts and on income from conducting games of chance | 0020| pursuant to the Charity Games Act; and | 0021| (7) the reasonable costs of an audit required by the | 0022| department if the cost is approved by the department in writing. | 0023| C. All of the net profits derived from the holding of | 0024| games of chance shall be devoted to the lawful purposes of the | 0025| qualified organization licensed to conduct the games. | 0001| D. The department may by regulation establish the maximum | 0002| amounts that may be expended for the allowable expenses specified | 0003| in Subsection B of this section. | 0004| Section 42. [NEW MATERIAL] CONFIDENTIAL INFORMATION.-- | 0005| A. The following information shall not be considered | 0006| public record and is not subject to inspection under the Inspection | 0007| of Public Records Act and shall not be revealed by the department | 0008| except under order of a court of competent jurisdiction or with | 0009| written permission of the owner or provider of the information: | 0010| (1) technical manuals, instructions or wiring or | 0011| logic diagrams for the machine; | 0012| (2) listings of source codes and flow charts; | 0013| (3) results of simulations and related information | 0014| explaining simulation methodology; | 0015| (4) model EPROMs or logic boards containing compiled | 0016| programs; and | 0017| (5) tax returns received from the internal revenue | 0018| service or the taxation and revenue department. | 0019| B. Information relating to the results of actual | 0020| operations as shown on a machine's meter is not confidential and | 0021| may be used to compile studies or reports. | 0022| C. Persons with access to confidential information as | 0023| described in Subsection A of this section may not use or reveal | 0024| anything of a confidential nature outside the scope of its intended | 0025| purpose. | 0001| D. The department shall secure confidential information | 0002| and restrict all persons from access, except designated employees | 0003| whose duties include testing and interpretation of the information. | 0004| Such information is not public record and may not be released to | 0005| any member of the public. | 0006| Section 43. [NEW MATERIAL] EXAMINATION OF BOOKS AND | 0007| RECORDS.-- | 0008| A. The premises, equipment and all the books and records | 0009| of any person or organization conducting games of chance authorized | 0010| by the Charity Games Act and any person or organization receiving | 0011| profits therefrom or having any interest therein shall be subject | 0012| to inspection and audit at any reasonable time, with or without | 0013| notice, upon demand, by the department, the secretary of public | 0014| safety or his designee or the chief of police or the district | 0015| attorney of any city, town or county in which the person or | 0016| organization is located, for the purpose of determining compliance | 0017| or noncompliance with the provisions of the Charity Games Act and | 0018| any regulations or local ordinances incident thereto. | 0019| B. Licensees shall provide any reports or records to the | 0020| department relating to their activities pursuant to the Charity | 0021| Games Act upon request. | 0022| Section 44. [NEW MATERIAL] ACCESS TO INTERNAL REVENUE | 0023| SERVICE INFORMATION.--Each applicant for a license pursuant to the | 0024| Charity Games Act or current licensee, as a condition of licensure, | 0025| shall grant the department or its authorized designee access to all | 0001| tax returns maintained by the internal revenue service or the | 0002| taxation and revenue department that have been filed on behalf of | 0003| any individual having any ownership, managerial, directorship or | 0004| financial interest in the applicant or the conduct of games of | 0005| chance by the licensee and those of any entity applying for | 0006| licensure under that act. The department shall consider those | 0007| records when determining qualifications for initial licensure or | 0008| other actions under the Charity Games Act. | 0009| Section 45. [NEW MATERIAL] PENALTIES.-- | 0010| A. Every licensee; every officer, agent or employee of | 0011| the licensee; and every other person or corporation who willfully | 0012| violates or who procures, aids or abets in the willful violation of | 0013| the Charity Games Act by making false statements or material | 0014| omissions in any application or report filed with the department is | 0015| guilty of a fourth degree felony and shall be sentenced pursuant to | 0016| the provisions of Section 31-18-15 NMSA 1978. | 0017| B. Any person who violates any other provision of the | 0018| Charity Games Act or regulations adopted pursuant to that act is | 0019| guilty of a misdemeanor and, upon conviction thereof, shall be | 0020| sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0021| C. A manufacturer or distributor who is not licensed | 0022| pursuant to the Charity Games Act and who sells or attempts to sell | 0023| equipment, devices or supplies to a qualified organization is | 0024| guilty of a third degree felony and shall be sentenced pursuant to | 0025| the provisions of Section 31-18-15 NMSA 1978. | 0001| Section 46. [NEW MATERIAL] FUND CREATED.--There is created | 0002| in the state treasury the "charity games fund". All fees and the | 0003| net receipts of the charity games tax paid pursuant to the Charity | 0004| Games Act or regulations adopted pursuant to that act shall be | 0005| credited to the fund. All money in the fund and all interest | 0006| attributable to it is appropriated to the department for the | 0007| purpose of carrying out the provisions of the Charity Games Act. | 0008| Money remaining in the fund at the end of each fiscal year shall | 0009| revert to the general fund. | 0010| Section 47. [NEW MATERIAL] RECREATIONAL BINGO EXEMPTED | 0011| FROM ACT.-- | 0012| A. Nothing in the Charity Games Act prohibits a senior | 0013| citizen group from conducting bingo at a senior citizen center if | 0014| no person other than a player participating in the bingo game | 0015| receives or becomes entitled to receive a part of the proceeds from | 0016| the game and if no minor is permitted to participate in the conduct | 0017| of the game or play the game. | 0018| B. As used in this section, "senior citizen group" means | 0019| an organization in which the majority of the membership consists of | 0020| individuals who are fifty-five years of age or older and that has | 0021| as its primary purpose and activity the provision of recreational | 0022| or social activities for those individuals. | 0023| Section 48. Section 6-24-5 NMSA 1978 (being Laws 1995, | 0024| Chapter 155, Section 5) is amended to read: | 0025| "6-24-5. NEW MEXICO LOTTERY AUTHORITY CREATED--BOARD OF | 0001| DIRECTORS.-- | 0002| A. There is created a public body, politic and corporate, | 0003| separate and apart from the state, constituting a governmental | 0004| instrumentality to be known as the "New Mexico lottery authority". | 0005| The authority is created and organized for the purpose of | 0006| establishing and conducting the [New Mexico state] lottery to | 0007| provide revenues for the public purposes designated by the New | 0008| Mexico Lottery Act. | 0009| B. The authority shall be governed by a board of | 0010| directors composed of seven members who are residents of New Mexico | 0011| appointed by the governor with the advice and consent of the | 0012| senate. The members of the board of directors shall be prominent | 0013| persons in their businesses or professions and shall be appointed | 0014| so as to provide equitable geographical representation. No more | 0015| than four members of the board shall be from any one political | 0016| party. The governor shall consider appointing at least one member | 0017| who has at least five years of experience as a law enforcement | 0018| officer, at least one member who is an attorney admitted to | 0019| practice in New Mexico and at least one member who is a certified | 0020| public accountant certified in New Mexico. | 0021| C. Board members shall be appointed for five-year terms. | 0022| To provide for staggered terms, four of the initially appointed | 0023| members shall be appointed for terms of five years and three | 0024| members for terms of three years. Thereafter, all members shall be | 0025| appointed for five-year terms. A vacancy shall be filled by | 0001| appointment by the governor for the remainder of the unexpired | 0002| term. A member shall serve until his replacement is confirmed by | 0003| the senate. Board members shall be eligible for reappointment. | 0004| D. The board shall select one of its members as chairman | 0005| annually. A chairman may be selected for successive years. | 0006| Members of the board may be removed by the governor for | 0007| malfeasance, misfeasance or willful neglect of duty after | 0008| reasonable notice and a public hearing unless the notice and | 0009| hearing are expressly waived in writing by the member. | 0010| E. The board shall hold regular meetings at the call of | 0011| the chairman, but not less often than once each calendar quarter. | 0012| A board meeting may also be called upon the request in writing of | 0013| three or more board members. A majority of members then in office | 0014| constitutes a quorum for the transaction of any business and for | 0015| the exercise of any power or function of the authority. | 0016| F. Board members shall receive no compensation for their | 0017| services, but shall be paid expenses incurred in the conduct of | 0018| authority business as allowed and approved by the authority in | 0019| accordance with policies adopted by the board. | 0020| G. A board member shall be subject to a background check | 0021| and investigation to determine his fitness for office. The results | 0022| of that background check shall be made available to the governor | 0023| and the senate. | 0024| H. Neither the members of the board of directors nor any | 0025| person acting on behalf of the board, while acting within the scope | 0001| of their authority, shall be subject to any personal liability for | 0002| any action taken or omitted within that scope of authority." | 0003| Section 49. Section 6-24-6 NMSA 1978 (being Laws 1995, | 0004| Chapter 155, Section 6) is amended to read: | 0005| "6-24-6. POWERS OF THE AUTHORITY.-- | 0006| A. The authority shall have any and all powers necessary | 0007| or convenient to carry out and effectuate the purposes and | 0008| provisions of the New Mexico Lottery Act that are not in conflict | 0009| with the constitution of New Mexico and that are generally | 0010| exercised by corporations engaged in entrepreneurial pursuits, | 0011| including but without limiting the generality of the foregoing the | 0012| power to: | 0013| (1) sue and be sued; | 0014| (2) adopt and alter a seal; | 0015| (3) adopt, amend and repeal bylaws, rules, policies | 0016| and procedures for the conduct of its affairs and its business; | 0017| (4) procure or provide insurance; | 0018| (5) hold copyrights, trademarks and service marks | 0019| and enforce its rights with respect thereto; | 0020| (6) initiate, supervise and administer the operation | 0021| of the lottery in accordance with the provisions of the New Mexico | 0022| Lottery Act and rules, policies and procedures adopted pursuant to | 0023| that act; | 0024| (7) enter into written agreements with one or more | 0025| other states for the operation, participation in or marketing or | 0001| promotion of a joint lottery or joint lottery games; | 0002| (8) acquire or lease real property and make | 0003| improvements thereon and acquire by lease or by purchase personal | 0004| property, including but not limited to computers, mechanical, | 0005| electronic and on-line equipment and terminals and intangible | 0006| property, including but not limited to computer programs, systems | 0007| and software; | 0008| (9) enter into contracts to incur debt and borrow | 0009| money in its own name and enter into financing agreements with the | 0010| state, with agencies or instrumentalities of the state or with | 0011| any commercial bank or credit provider; | 0012| (10) receive and expend, in accordance with the | 0013| provisions of the New Mexico Lottery Act, all money received from | 0014| any lottery or nonlottery source for effectuating the purposes of | 0015| the New Mexico Lottery Act; | 0016| (11) administer oaths, take depositions, issue | 0017| subpoenas and compel the attendance of witnesses and the production | 0018| of books, papers, documents and other evidence relative to any | 0019| investigation or proceeding conducted by the authority; | 0020| (12) appoint and prescribe the duties of officers, | 0021| agents and employees of the authority, including professional and | 0022| administrative staff and personnel, and to fix their compensation, | 0023| pay their expenses and provide a benefit program, including but not | 0024| limited to a retirement plan and a group insurance plan; | 0025| (13) select and contract with lottery vendors and | 0001| lottery retailers; | 0002| (14) enter into contracts or agreements with state, | 0003| local or federal law enforcement agencies or private investigators | 0004| or other persons for the performance of law enforcement, background | 0005| investigations and security checks; | 0006| (15) enter into agreements with the superintendent | 0007| of regulation and licensing and the department of public safety to | 0008| monitor, enable and disable video gambling machines, perform | 0009| electronic funds transfers and other services relating to the | 0010| operation and administration of video gambling machines. Net | 0011| income received by the authority for performing such agreements | 0012| shall be included in net revenue of the lottery to be distributed | 0013| as provided in the New Mexico Lottery Act. Compensation shall not | 0014| exceed actual costs incurred by the lottery authority in performing | 0015| the services plus two percent of the difference between gross | 0016| receipts from the conduct of video machine gambling and winnings | 0017| paid by each licensee; | 0018| [(15)] (16) enter into contracts of any and all | 0019| types on such terms and conditions as the authority may determine; | 0020| [(16)] (17) establish and maintain banking | 0021| relationships, including but not limited to establishment of | 0022| checking and savings accounts and lines of credit; | 0023| [(17)] (18) advertise and promote the lottery | 0024| and lottery games; | 0025| [(18)] (19) act as a lottery retailer, conduct | 0001| promotions that involve the dispensing of lottery tickets and | 0002| establish and operate a sales facility to sell lottery tickets and | 0003| any related merchandise; and | 0004| [(19)] (20) adopt, repeal and amend such rules, | 0005| policies and procedures as necessary to carry out and implement its | 0006| powers and duties, organize and operate the authority, conduct | 0007| lottery games and any other matters necessary or desirable for the | 0008| efficient and effective operation of the lottery and the | 0009| convenience of the public. | 0010| B. The powers enumerated in this section are cumulative | 0011| of and in addition to those powers enumerated elsewhere in the New | 0012| Mexico Lottery Act, and no such powers limit or restrict any other | 0013| powers of the authority." | 0014| Section 50. Section 6-24-17 NMSA 1978 (being Laws 1995, | 0015| Chapter 155, Section 17, as amended) is amended to read: | 0016| "6-24-17. DISCLOSURE OF ODDS.--The authority shall make | 0017| adequate disclosure of the odds with respect to each lottery game | 0018| by stating the odds in lottery game advertisements, on lottery | 0019| tickets or by posting the odds at each place in which lottery | 0020| tickets are sold." | 0021| Section 51. Section 6-24-26 NMSA 1978 (being Laws 1995, | 0022| Chapter 155, Section 26) is amended to read: | 0023| "6-24-26. AUTHORIZATION TO ISSUE REVENUE BONDS.-- | 0024| A. In order to provide funds for the initial development | 0025| and operation of the lottery, the board is authorized to issue | 0001| lottery revenue bonds in an amount not to exceed [three million | 0002| dollars ($3,000,000)] six million dollars ($6,000,000) payable | 0003| solely from revenues of the authority generated from operation of | 0004| the lottery. | 0005| B. The board may issue bonds to refund other bonds issued | 0006| pursuant to this section. | 0007| C. The bonds shall have a maturity of no more than five | 0008| years from the date of issuance. The board shall determine all | 0009| other terms, covenants and conditions of the bonds; provided, | 0010| however, that the bonds may provide for prepayment in part or in | 0011| full of the balance due at any time without penalty. | 0012| D. The bonds shall be executed with the manual or | 0013| facsimile signature of the chief executive officer or the chairman | 0014| of the board and attested to by another member of the board. The | 0015| bonds may bear the seal, if any, of the authority. | 0016| E. The proceeds of the bonds and the earnings on those | 0017| proceeds are appropriated to the authority for the initial | 0018| development and operation of the lottery, to pay expenses incurred | 0019| in the preparation, issuance and sale of the bonds, to pay any | 0020| obligations relating to the bonds and the proceeds of the bonds | 0021| under the Internal Revenue Code of 1986 and for any other lawful | 0022| purpose. | 0023| F. The bonds may be sold either at a public sale or at a | 0024| private sale to the state investment officer or to the state | 0025| treasurer. If the bonds are sold at a public sale, the notice of | 0001| sale and other procedures for the sale shall be determined by the | 0002| chief executive officer or the board. | 0003| G. This section is full authority for the issuance and | 0004| sale of the bonds, and the bonds shall not be invalid for any | 0005| irregularity or defect in the proceedings for their issuance and | 0006| sale and shall be incontestable in the hands of bona fide | 0007| purchasers or holders of the bonds for value. | 0008| H. An amount of money from the sources specified in | 0009| Subsection A of this section sufficient to pay the principal of and | 0010| interest on the bonds as they become due in each year shall be set | 0011| aside, and is hereby pledged, for the payment of the principal and | 0012| interest on the bonds. | 0013| I. The bonds shall be legal investments for any person or | 0014| board charged with the investment of public funds and may be | 0015| accepted as security for any deposit of public money, and the bonds | 0016| and interest thereon are exempt from taxation by the state and any | 0017| political subdivision or agency of the state. | 0018| J. The bonds shall be payable by the authority, which | 0019| shall keep a complete record relating to the payment of the bonds." | 0020| Section 52. Section 7-1-2 NMSA 1978 (being Laws 1965, Chapter | 0021| 248, Section 2, as amended) is amended to read: | 0022| "7-1-2. APPLICABILITY.--The Tax Administration Act applies to | 0023| and governs: | 0024| A. the administration and enforcement of the following | 0025| taxes or tax acts as they now exist or may hereafter be amended: | 0001| (1) Income Tax Act; | 0002| (2) Withholding Tax Act; | 0003| (3) Gross Receipts and Compensating Tax Act and any | 0004| state gross receipts tax; | 0005| (4) Liquor Excise Tax Act; | 0006| (5) Local Liquor Excise Tax Act; | 0007| [(6) Banking and Financial Corporations Tax Act; | 0008| (7)] (6) any municipal local option gross | 0009| receipts tax; | 0010| [(8)] (7) any county local option gross receipts | 0011| tax; | 0012| [(9)] (8) Special Fuels Supplier Tax Act; | 0013| [(10)] (9) Gasoline Tax Act; | 0014| [(11)] (10) petroleum products loading fee, | 0015| which fee shall be considered a tax for the purpose of the Tax | 0016| Administration Act; | 0017| [(12)] (11) Cigarette Tax Act; | 0018| [(13)] (12) Estate Tax Act; | 0019| [(14)] (13) Railroad Car Company Tax Act; | 0020| [(15)] (14) Investment Credit Act; | 0021| [(16)] (15) Corporate Income Tax Act; | 0022| [(17)] (16) Corporate Income and Franchise Tax | 0023| Act; | 0024| [(18)] (17) Uniform Division of Income for Tax | 0025| Purposes Act; | 0001| [(19)] (18) Multistate Tax Compact; | 0002| [(20)] (19) Tobacco Products Tax Act; | 0003| [(21)] (20) Filmmaker's Credit Act; and | 0004| [(22)] (21) the telecommunications relay service | 0005| surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge | 0006| shall be considered a tax for the purposes of the Tax | 0007| Administration Act; | 0008| B. the administration and enforcement of the following | 0009| taxes, surtaxes, advanced payments or tax acts as they now exist or | 0010| may hereafter be amended: | 0011| (1) Resources Excise Tax Act; | 0012| (2) Severance Tax Act; | 0013| (3) any severance surtax; | 0014| (4) Oil and Gas Severance Tax Act; | 0015| (5) Oil and Gas Conservation Tax Act; | 0016| (6) Oil and Gas Emergency School Tax Act; | 0017| (7) Oil and Gas Ad Valorem Production Tax Act; | 0018| (8) Natural Gas Processors Tax Act; | 0019| (9) Oil and Gas Production Equipment Ad Valorem Tax | 0020| Act; | 0021| (10) Copper Production Ad Valorem Tax Act; and | 0022| (11) any advance payment required to be made by any | 0023| act specified in this subsection, which advance payment shall be | 0024| considered a tax for the purposes of the Tax Administration Act; | 0025| C. the administration and enforcement of the following | 0001| taxes, surcharges, fees or acts as they now exist or may hereafter | 0002| be amended: | 0003| (1) Weight Distance Tax Act; | 0004| (2) Special Fuels Tax Act; | 0005| (3) the workers' compensation fee authorized by | 0006| Section 52-5-19 NMSA 1978, which fee shall be considered a tax for | 0007| purposes of the Tax Administration Act; | 0008| (4) Controlled Substance Tax Act; | 0009| (5) Uniform Unclaimed Property Act; | 0010| (6) 911 emergency surcharge and the network and | 0011| database surcharge, which surcharges shall be considered taxes for | 0012| purposes of the Tax Administration Act; | 0013| (7) the solid waste assessment fee authorized by the | 0014| Solid Waste Act, which fee shall be considered a tax for purposes | 0015| of the Tax Administration Act; [and] | 0016| (8) the water conservation fee imposed by Section | 0017| 74-1-13 NMSA 1978, which fee shall be considered a tax for the | 0018| purposes of the Tax Administration Act; [and] | 0019| (9) the video gambling tax imposed pursuant to the | 0020| Video Gambling Act; and | 0021| (10) the charity games tax imposed pursuant to the | 0022| Charity Games Act; and | 0023| D. the administration and enforcement of all other laws, | 0024| with respect to which the department is charged with | 0025| responsibilities pursuant to the Tax Administration Act, but only | 0001| to the extent that such other laws do not conflict with the Tax | 0002| Administration Act." | 0003| Section 53. A new section of the Tax Administration Act is | 0004| enacted to read: | 0005| "[NEW MATERIAL] DISTRIBUTION OF CHARITY GAMES TAX.--A | 0006| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to | 0007| the charity games fund of the net receipts attributable to the | 0008| charity games tax." | 0009| Section 54. A new section of the Tax Administration Act is | 0010| enacted to read: | 0011| "[NEW MATERIAL] DISTRIBUTION OF VIDEO GAMBLING TAX.--A | 0012| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to | 0013| the video gambling fund of the net receipts attributable to the | 0014| video gambling tax." | 0015| Section 55. Section 7-27-5.21 NMSA 1978 (being Laws 1995, | 0016| Chapter 155, Section 36) is amended to read: | 0017| "7-27-5.21. NEW MEXICO LOTTERY REVENUE BONDS.--The severance | 0018| tax permanent fund may be invested in revenue bonds issued by the | 0019| New Mexico lottery authority pursuant to the provisions of the New | 0020| Mexico Lottery Act. The amount invested shall not exceed [three | 0021| million dollars ($3,000,000)] six million dollars ($6,000,000)." | 0022| Section 56. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0023| Chapter 303, Section 19-1, as amended) is amended to read: | 0024| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0025| Chapter 30, Article 19 NMSA 1978: | 0001| A. "antique gambling device" means a gambling device | 0002| twenty-five years of age or older and substantially in original | 0003| condition that is not used for gambling or commercial gambling or | 0004| located in a gambling place; | 0005| B. "bet" means a bargain in which the parties agree that, | 0006| dependent upon chance, even though accompanied by some skill, one | 0007| stands to win or lose anything of value specified in the agreement. | 0008| A bet does not include: | 0009| (1) bona fide business transactions that are valid | 0010| under the law of contracts, including without limitation: | 0011| (a) contracts for the purchase or sale, at a | 0012| future date, of securities or other commodities; and | 0013| (b) agreements to compensate for loss caused by | 0014| the happening of the chance, including without limitation contracts | 0015| for indemnity or guaranty and life or health and accident | 0016| insurance; | 0017| (2) offers of purses, prizes or premiums to the | 0018| actual contestants in any bona fide contest for the determination | 0019| of skill, speed, strength or endurance or to the bona fide owners | 0020| of animals or vehicles entered in such contest; | 0021| (3) a lottery as defined in this section; or | 0022| (4) betting otherwise permitted by law; | 0023| [C. "lottery" means an enterprise other than the New | 0024| Mexico state lottery established and operated pursuant to the New | 0025| Mexico Lottery Act wherein, for a consideration, the participants | 0001| are given an opportunity to win a prize, the award of which is | 0002| determined by chance, even though accompanied by some skill. As | 0003| used in this subsection, "consideration" means anything of | 0004| pecuniary value required to be paid to the promoter in order to | 0005| participate in such enterprise; | 0006| D.] C. "gambling device" means a contrivance other | 0007| than an antique gambling device that, for a consideration, affords | 0008| the player an opportunity to obtain anything of value, the award of | 0009| which is determined by chance, even though accompanied by some | 0010| skill and whether or not the prize is automatically paid by the | 0011| device; [and | 0012| E.] D. "gambling place" means any building or tent, | 0013| any vehicle, whether self-propelled or not, or any room within any | 0014| of them, one of whose principal uses is: | 0015| (1) making and settling of bets; | 0016| (2) receiving, holding, recording or forwarding bets | 0017| or offers to bet; | 0018| (3) conducting lotteries; or | 0019| (4) playing gambling devices; | 0020| E. "lottery" means an enterprise other than the New | 0021| Mexico state lottery established and operated pursuant to the New | 0022| Mexico Lottery Act wherein, for a consideration, the participants | 0023| are given an opportunity to win a prize, the award of which is | 0024| determined by chance, even though accompanied by some skill. As | 0025| used in this subsection, "consideration" means anything of | 0001| pecuniary value required to be paid to the promoter in order to | 0002| participate in the enterprise; | 0003| F. "raffle" means a game in which the prize is won by | 0004| random drawing of the name or number of one or more persons | 0005| purchasing a chance; and | 0006| G. "video gambling" means any form of gambling in which, | 0007| upon payment of a consideration, an electronic device may be played | 0008| that simulates the play of a game of chance, utilizes a video | 0009| display and microprocessors and that by chance, or through some | 0010| combination of chance and skill, a player may receive or the device | 0011| may dispense to the player cash, coins or tokens or free games or | 0012| credits that may be redeemed for cash, coins or tokens." | 0013| Section 57. Section 30-19-6 NMSA 1978 (being Laws 1963, Chap- | 0014| ter 303, Section 19-6, as amended) is amended to read: | 0015| "30-19-6. [PERMISSIVE LOTTERY] AUTHORIZED GAMBLING--FAIRS, | 0016| THEATERS AND TAX-EXEMPT ORGANIZATIONS--VIDEO GAMBLING ACT AND | 0017| CHARITY GAMES ACT ACTIVITIES.-- | 0018| A. Nothing in [Article 19] Chapter 30, Article 19 | 0019| NMSA 1978 [shall be construed to apply to any] prohibits a sale | 0020| or drawing of [any] a prize at [any] a fair held in this | 0021| state for the benefit of [any] a church, public library or | 0022| religious society [situate or being] located in this state or | 0023| for charitable purposes when all the proceeds of [such] the | 0024| fair [shall be] are expended in this state for the benefit of | 0025| [such] a church, public library, religious society or | 0001| charitable purposes. A [lottery shall be operated] sale or | 0002| drawing conducted pursuant to this subsection is for the benefit | 0003| of the organization or charitable purpose only [when] if the | 0004| entire proceeds [of] from the [lottery] sale or drawing go | 0005| to the organization or charitable purpose and no part of [such] | 0006| the proceeds go to any individual member or employee [thereof] | 0007| of the organization. | 0008| B. Nothing in [Article 19] Chapter 30, Article 19 | 0009| NMSA 1978 [shall be held to prohibit any] prohibits a bona fide | 0010| motion picture [theatre] theater from offering prizes of cash | 0011| or merchandise for advertising purposes in connection with [such] | 0012| the business of the theater or for the purpose of stimulating | 0013| business, whether or not [any] consideration other than a | 0014| monetary consideration in excess of the regular price of admission | 0015| is [exacted] charged for participation in drawings for prizes. | 0016| C. Nothing in [Article 19] Chapter 30, Article 19 | 0017| NMSA 1978 [shall be held to apply to any] prohibits a bona fide | 0018| county fair, including [fairs] a fair for more than one county, | 0019| [which shall have] that has been held annually at the same | 0020| location for at least two years [and which shall offer] from | 0021| offering prizes of livestock or poultry in connection with | 0022| [such] the fair [when] if the proceeds of [such] the | 0023| drawings [shall be] are used for the benefit of [said] the | 0024| fair. | 0025| [D. Nothing in Article 19, Chapter 30 NMSA 1978 shall be | 0001| construed to apply to any lottery operated by an organization | 0002| exempt from the state income tax pursuant to Subsection C of | 0003| Section 7-2-4 NMSA 1978 and not subject to the provisions of | 0004| Subsection A of this section; provided that: | 0005| (1) no more than two lotteries shall be operated in | 0006| any year by such an organization; | 0007| (2) all the gross proceeds less the reasonable cost | 0008| of prizes of any lottery operated by such an organization shall be | 0009| expended in the state for the benefit of the organization or public | 0010| purposes; and | 0011| (3) no part of the proceeds of any lottery shall go | 0012| to any individual member or employee of any organization except as | 0013| payment for the purchase of prizes at no more than the reasonable | 0014| retail price] | 0015| D. Nothing in Chapter 30, Article 19 NMSA 1978 prohibits | 0016| an organization that is exempt from state income tax pursuant to | 0017| Section 7-2-4 NMSA 1978 from conducting bingo games, raffles, | 0018| lotteries, limited slot machine gaming or table games, including | 0019| poker, craps, blackjack, roulette and the like, at a fundraising | 0020| event if: | 0021| (1) the fundraising events are conducted no more | 0022| than twice in a calendar year by the qualifying organization; | 0023| (2) the only persons authorized to participate in | 0024| the operation or management of the fundraising event are: | 0025| (a) bona fide members of the qualifying | 0001| organization who are not paid for their services in the operation | 0002| or management of the event; or | 0003| (b) persons who provide goods or services for | 0004| the fundraising event for a flat fee or an hourly fee pursuant to a | 0005| written contract with the qualifying organization; | 0006| (3) no person receives any part of the proceeds of | 0007| the fundraising event except: | 0008| (a) as payment for prizes purchased at no more | 0009| than the reasonable retail prices for the prizes; or | 0010| (b) pursuant to a contract described in | 0011| Subparagraph (b) of Paragraph (2) of this subsection; | 0012| (4) the net proceeds of the fundraising event are | 0013| expended in the state for the benefit of the qualifying | 0014| organization or purposes for which it was formed; | 0015| (5) gross revenue, expenses, prizes paid and the | 0016| date, time and location of the fundraising event are reported to | 0017| the alcohol and gaming division of the regulation and licensing | 0018| department within thirty days after the event; | 0019| (6) the qualifying organization conducting the | 0020| fundraising event maintains records for a period of one year after | 0021| the date of the event that accurately show the gross revenue | 0022| generated by the event, details of the expenses of conducting the | 0023| event and details of how the gross revenue is used, and the | 0024| qualifying organization makes the records available for review by | 0025| the director of the alcohol and gaming division of the regulation | 0001| and licensing department or the attorney general, or both, at their | 0002| request; | 0003| (7) no video gambling is conducted and not more than | 0004| two slot machines are operated during the fundraising event; | 0005| (8) no persons less than the age of twenty-one are | 0006| allowed to participate in the operation or management of the | 0007| fundraising event or to play any game at the event; and | 0008| (9) the fundraising event is conducted pursuant to a | 0009| permit issued by the alcohol and gaming division of the regulation | 0010| and licensing department. | 0011| E. Nothing in Chapter 30, Article 19 NMSA 1978 prohibits | 0012| activities authorized and the games of chance permitted and | 0013| regulated pursuant to the provisions of the Video Gambling Act and | 0014| the Charity Games Act." | 0015| Section 58. A new Section 30-19-6.1 NMSA 1978 is enacted to | 0016| read: | 0017| "30-19-6.1. [NEW MATERIAL] PERMITTED GAMBLING--RECREATIONAL BINGO.-- | 0018| A. Nothing in Chapter 30, Article 19 NMSA 1978 prohibits | 0019| a senior citizen group from conducting bingo at a senior citizen | 0020| center if no person other than a player participating in the bingo | 0021| game receives or becomes entitled to receive a part of the proceeds | 0022| from the game and if no minor is permitted to participate in the | 0023| conduct of the game or play the game. | 0024| B. As used in this section, "senior citizen group" means | 0025| an organization in which the majority of the membership consists of | 0001| individuals who are fifty-five years of age or older and that has | 0002| as its primary purpose and activity the provision of recreational | 0003| or social activities for those individuals." | 0004| Section 59. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0005| Chapter 39, Section 96) is amended to read: | 0006| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0007| A. It is a violation of the Liquor Control Act for a li- | 0008| censee to knowingly allow commercial gambling on the licensed | 0009| premises. | 0010| B. In addition to any criminal penalties, any person who | 0011| violates Subsection A of this section may have his license | 0012| suspended or revoked or a fine imposed, or both, pursuant to the | 0013| Liquor Control Act. | 0014| C. [For purposes of] As used in this section: (1) "commercial gambling" means: | 0015| [(1)] (a) participating in the earnings of | 0016| or operating a gambling place; | 0017| [(2)] (b) receiving, recording or | 0018| forwarding bets or offers to bet; | 0019| [(3)] (c) possessing facilities with the | 0020| intent to receive, record or forward bets or offers to bet; | 0021| [(4)] (d) for gain, becoming a custodian of | 0022| anything of value bet or offered to be bet; | 0023| [(5)] (e) conducting a lottery where both | 0024| the consideration and the prize are money or whoever with intent to | 0025| conduct a lottery possesses facilities to do so; or | 0001| [(6)] (f) setting up for use for the | 0002| purpose of gambling, or collecting the proceeds of, any gambling | 0003| device or game; and | 0004| (2) "commercial gambling" does not include: | 0005| (a) activities authorized pursuant to the New | 0006| Mexico Lottery Act; | 0007| (b) the conduct of games and activities | 0008| pursuant to Subsection D of Section 30-19-6 NMSA 1978; | 0009| (c) the conduct of video machine gambling | 0010| authorized pursuant to the Video Gambling Act on the licensed | 0011| premises of a club licensee licensed pursuant to Section 60-6A-5 | 0012| NMSA 1978; and | 0013| (d) the conduct of activities authorized or | 0014| games permitted pursuant to the Charity Games Act on the licensed | 0015| premises of a club licensee licensed pursuant to Section 60-6A-5 | 0016| NMSA 1978." | 0017| Section 60. REPEAL.--Sections 60-2B-1 through 60-2B-14 NMSA | 0018| 1978 (being Laws 1981, Chapter 259, Sections 1 through 14, as | 0019| amended) are repealed. | 0020| Section 61. SEVERABILITY.--If any part or application of this | 0021| act is held invalid, the remainder or its application to other | 0022| situations or persons shall not be affected. | 0023| Section 62. EFFECTIVE DATE.-- | 0024| A. The effective date of the provisions of Sections 20, | 0025| 27 through 47 and 60 of this act is January 1, 1997. | 0001| B. The effective date of the provisions of Sections 8 | 0002| through 19 and 21 through 26 of this act is July 1, 1996. | 0003| Section 63. EMERGENCY.--It is necessary for the public peace, | 0004| health and safety that this act take effect immediately. | 0005|  |