0001| HOUSE BILL 399 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| W. C. "DUB" WILLIAMS | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO GAMBLING; ENACTING THE INDIAN GAMING COMPACT; | 0012| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE | 0013| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR PUEBLO | 0014| CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING THE VIDEO | 0015| GAMBLING ACT TO PERMIT CERTAIN NONTRIBAL GAMBLING; PROVIDING | 0016| PENALTIES; CREATING A FUND; IMPOSING A GAMBLING TAX; AMENDING | 0017| AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN | 0018| APPROPRIATION; DECLARING AN EMERGENCY. | 0019| | 0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0021| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT | 0022| ENTERED INTO.--The Indian Gaming Compact is enacted into law | 0023| and entered into with all Indian nations, tribes and pueblos in | 0024| the state legally joining in it by enactment of a resolution | 0025| pursuant to the requirements of applicable tribal and federal | 0001| law. The compact is enacted and entered into in the form | 0002| substantially as follows: | 0003| "INDIAN GAMING COMPACT | 0004| INTRODUCTION | 0005| The State is a sovereign State of the United States of | 0006| America, having been admitted to the Union pursuant to the Act | 0007| of June 20, 1910, 36 Statutes at Large 557, Chapter 310, and is | 0008| authorized by its constitution to enter into contracts and | 0009| agreements, including this Compact, with the Tribe; | 0010| The Tribe is a sovereign federally recognized Indian tribe | 0011| and its governing body has authorized the officials of the | 0012| Tribe to enter into contracts and agreements of every | 0013| description, including this Compact, with the State; | 0014| The Congress of the United States has enacted the Indian | 0015| Gaming Regulatory Act of 1988, 25 U.S.C. 2701-2721 | 0016| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0017| Class III Gaming on Indian Lands pursuant to a tribal-state | 0018| compact entered into for that purpose; | 0019| The Tribe owns or controls Indian Lands and by Ordinance | 0020| has adopted rules and regulations governing Class III games | 0021| played and related activities at any Gaming Facility; | 0022| The State and the Tribe, in recognition of the sovereign | 0023| rights of each party and in a spirit of cooperation to promote | 0024| the best interests of the citizens of the State and the members | 0025| of the Tribe, have engaged in good faith negotiations | 0001| recognizing and respecting the interests of each party and have | 0002| agreed to this Compact. | 0003| NOW, THEREFORE, the State and the Tribe agree as follows: | 0004| TERMS AND CONDITIONS | 0005| SECTION 1. Purpose and Objectives. | 0006| The purpose and objectives of the State and the Tribe in | 0007| making this Compact are as follows: | 0008| A. To evidence the good will and cooperative spirit | 0009| between the State and the Tribe; | 0010| B. To continue the development of an effective | 0011| government-to-government relationship between the State and the | 0012| Tribe; | 0013| C. To provide for the regulation of Class III Gaming on | 0014| Indian Lands as required by the IGRA; | 0015| D. To fulfill the purpose and intent of the IGRA by | 0016| providing for tribal gaming as a means of generating tribal | 0017| revenues, thereby promoting tribal economic development, tribal | 0018| self-sufficiency, and strong tribal government; | 0019| E. To provide revenues to fund tribal government | 0020| operations or programs, to provide for the general welfare of | 0021| the tribal members and for other purposes allowed under the | 0022| IGRA; | 0023| F. To provide for the effective regulation of Class III | 0024| Gaming in which the Tribe shall have the sole proprietary | 0025| interest and be the primary beneficiary; and | 0001| G. To address the State's interest in the establishment, | 0002| by the Tribe, of rules and procedures for ensuring that Class | 0003| III Gaming is conducted fairly and honestly by the owners, | 0004| operators, employees and patrons of any Class III Gaming | 0005| enterprise on Indian Lands. | 0006| SECTION 2. Definitions. | 0007| For purposes of this Compact, the following definitions | 0008| pertain: | 0009| A. "Class III Gaming" means all forms of gaming as | 0010| defined in 25 U.S.C. 2703(8), and 25 C.F.R. 502.4. | 0011| B. "Indian Lands" means: | 0012| 1. all lands within the exterior boundaries of the | 0013| Tribe's reservation and its confirmed grants from prior | 0014| sovereigns; or | 0015| 2. any other lands title to which is either held in | 0016| trust by the United States for the exclusive benefit of the | 0017| Tribe or a member thereof or is held by the Tribe or a member | 0018| thereof subject to restrictions against alienation imposed by | 0019| the United States, and over which the Tribe exercises | 0020| jurisdiction and governmental authority. | 0021| C. "Tribal Gaming Agency" means the tribal governmental | 0022| agency which will be identified to the State Gaming | 0023| Representative as the agency responsible for actions of the | 0024| Tribe set out in the Compact. It will be the single contact | 0025| with the State and may be relied upon as such by the State. | 0001| D. "State Gaming Representative" means that person | 0002| designated by the Governor of the State, who will be | 0003| responsible for actions of the State set out in the Compact. | 0004| The representative will be the single contact with the Tribe | 0005| and may be relied upon as such by the Tribe. If the State | 0006| Legislature enacts legislation to establish an agency of the | 0007| State, such agency may assume the duties of the State Gaming | 0008| Representative. | 0009| E. "Compact" means this compact between the State and the | 0010| Tribe. | 0011| F. "Gaming Facility" means the buildings or structures in | 0012| which Class III Gaming is conducted on Indian Lands. | 0013| G. "Management Contract" means a contract within the | 0014| meaning of 25 U.S.C. 2710(d)(9) and 2711. | 0015| H. "Management Contractor" means any person or entity | 0016| that has entered into a Management Contract with the Tribe. | 0017| I. "Ordinance" means the gaming ordinance and any | 0018| amendments thereto adopted by the Tribal Council of the Tribe. | 0019| J. "Tribe" means any Indian Tribe or Pueblo located | 0020| within the State of New Mexico entering into this Compact as | 0021| provided for herein. | 0022| K. "State" means the State of New Mexico. | 0023| SECTION 3. Authorized Class III Gaming. | 0024| The Tribe may conduct, only on Indian Lands, subject to | 0025| all of the terms and conditions of this Compact, any or all | 0001| forms of casino-style gaming, including but not limited to slot | 0002| machines and other forms of electronic gaming devices; all | 0003| forms of poker, blackjack and other casino-style card games, | 0004| both banked and unbanked; roulette; craps; keno; wheel of | 0005| fortune; pai gow; and other games played in casino settings, | 0006| and any form of a lottery. | 0007| Subject to the foregoing, the Tribe shall establish, in | 0008| its discretion, by tribal law, such limitations as it deems | 0009| appropriate on the number and type of Class III Gaming | 0010| conducted, the location of Class III Gaming on Indian Lands, | 0011| the hours and days of operation, and betting and pot limits, | 0012| applicable to such gaming. | 0013| SECTION 4. Regulation of Class III Gaming. | 0014| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0015| assure that the Tribe will: | 0016| 1. operate all Class III Gaming pursuant to this | 0017| Compact, tribal law, the IGRA and other | 0018| applicable Federal law; | 0019| 2. provide for the physical safety of patrons in | 0020| any Gaming Facility; | 0021| 3. provide for the physical safety of personnel | 0022| employed by the gaming enterprise; | 0023| 4. provide for the physical safeguarding of assets | 0024| transported to and from the Gaming Facility and | 0025| cashier's cage department; | 0001| 5. provide for the protection of the property of the | 0002| patrons and the gaming enterprise from illegal | 0003| activity; | 0004| 6. participate in licensing of primary management | 0005| officials and key employees of a Class III Gaming | 0006| enterprise; | 0007| 7. detain persons who may be involved in illegal | 0008| acts for the purpose of notifying law enforcement | 0009| authorities; and | 0010| 8. record and investigate any and all unusual | 0011| occurrences related to Class III Gaming within | 0012| the Gaming Facility. | 0013| B. Regulations. Without affecting the generality of the | 0014| foregoing, the Tribe shall adopt laws: | 0015| 1. prohibiting participation in any Class III Gaming | 0016| by any person under the age of twenty-one (21); | 0017| 2. prohibiting the employment of any person as a key | 0018| employee or primary management official in a | 0019| position that is directly involved in Class III | 0020| Gaming activities who is under the age of twenty- | 0021| one (21) or who has not been licensed in | 0022| accordance with Section 5, herein; | 0023| 3. prohibiting the play of any Class III Gaming for | 0024| at least four (4) consecutive hours daily, | 0025| Mondays through Thursdays (except federal | 0001| holidays); | 0002| 4. prohibiting a gaming enterprise from cashing any | 0003| paycheck or any type of government assistance | 0004| check, including Social Security, AFDC, pension | 0005| and other such checks, for any patron; | 0006| 5. requiring that, if feasible, automatic teller | 0007| machines on Gaming Facility premises be | 0008| programmed so that the machines will not accept | 0009| cards issued by the State to AFDC recipients for | 0010| access to AFDC benefits, and so that such | 0011| machines limit the amount that a person may | 0012| withdraw on a single day; | 0013| 6. providing that each electronic or | 0014| electromechanical gaming device in use at the | 0015| Gaming Facility must pay out a mathematically | 0016| demonstrable percentage of all amounts wagered, | 0017| which must not be less than seventy-five percent | 0018| (75%); | 0019| 7. providing that within eighteen (18) months from | 0020| the date on which this Compact takes effect, all | 0021| gaming machines on the premises of the Gaming | 0022| Facility will be connected to a central | 0023| computerized reporting and auditing system on the | 0024| Gaming Facility premises, which shall collect on | 0025| a continual basis the activity of each gaming | 0001| machine in use at the Gaming Facility, and that | 0002| such data shall be electronically accessible to | 0003| the State Gaming Representative upon entry of | 0004| appropriate security codes; | 0005| 8. prohibiting any gaming enterprise from offering | 0006| free food or free alcoholic beverages to patrons; | 0007| 9. requiring the gaming enterprise to spend an | 0008| amount that is no less than one-quarter of one | 0009| percent (.25%) of its net win as that term is | 0010| defined herein annually to fund or support | 0011| programs for the treatment and assistance of | 0012| compulsive gamblers; and | 0013| 10. governing any Management Contract regarding its | 0014| Class III Gaming activity such that it conforms | 0015| to the requirements of tribal law and the IGRA | 0016| and the regulations issued thereunder. | 0017| The Tribal Gaming Agency will provide true copies of all | 0018| tribal laws and regulations affecting Class III Gaming | 0019| conducted under the provisions of this Compact to the State | 0020| Gaming Representative within thirty (30) days after the | 0021| effective date of this Compact, and will provide true copies of | 0022| any amendments thereto or additional laws or regulations | 0023| affecting gaming within thirty (30) days after their enactment | 0024| (or approval, if any). | 0025| C. Audit and Financial Statements. The Tribal Gaming | 0001| Agency shall require all books and records relating to Class | 0002| III Gaming to be maintained in accordance with generally | 0003| accepted accounting principles. All such books and records | 0004| shall be retained for a period of at least six (6) years from | 0005| the date of creation. Not less than annually, the Tribal | 0006| Gaming Agency shall require an audit and a certified financial | 0007| statement covering all financial activities of the gaming | 0008| enterprise by an independent certified public accountant | 0009| licensed by the State. The financial statement shall be | 0010| prepared in accordance with generally accepted accounting | 0011| principles and shall be submitted to the Tribal Gaming Agency | 0012| within one hundred twenty (120) days of the close of the | 0013| Tribe's fiscal year. The Tribe will maintain the following | 0014| records for not less than six (6) years: | 0015| 1. revenues, expenses, assets, liabilities and | 0016| equity for each Gaming Facility; | 0017| 2. daily cash transactions for each Class III | 0018| Gaming activity at each Gaming Facility, | 0019| including but not limited to transactions | 0020| relating to each gaming table bank, game drop | 0021| box and gaming room bank; | 0022| 3. all markers, IOU's, returned checks, hold check | 0023| or other similar credit instruments; | 0024| 4. individual and statistical game records (except | 0025| card games) to reflect statistical drop and | 0001| statistical win; for electronic, computer, or | 0002| other technologically assisted games, analytic | 0003| reports which show the total amount of cash | 0004| wagered and the total amount of prizes won; | 0005| 5. contracts, correspondence and other transaction | 0006| documents relating to all vendors and | 0007| contractors; | 0008| 6. records of all tribal gaming enforcement | 0009| activities; | 0010| 7. audits prepared by or on behalf of the Tribe; and | 0011| 8. personnel information on all Class III Gaming | 0012| employees or agents, including rotation sheets, | 0013| hours worked, employee profiles and background | 0014| checks. | 0015| D. Violations. The agents of the Tribal Gaming Agency | 0016| shall have unrestricted access to the Gaming Facility during all | 0017| hours of Class III Gaming activity, and shall have immediate and | 0018| unrestricted access to any and all areas of the Gaming Facility | 0019| for the purpose of ensuring compliance with the provisions of | 0020| this Compact and the Ordinance. The agents shall report | 0021| immediately to the Tribal Gaming Agency any suspected violation | 0022| of this Compact, the Ordinance, or regulations of the Tribal | 0023| Gaming Agency by the gaming enterprise, Management Contractor, or | 0024| any person, whether or not associated with Class III Gaming. | 0025| E. State Gaming Representative. | 0001| 1. Upon written request by the State to the Tribe, | 0002| the Tribe will provide information on primary | 0003| management officials, key employees and | 0004| suppliers, sufficient to allow the State to | 0005| conduct its own background investigations, as it | 0006| may deem necessary, so that it may make an | 0007| independent determination as to the suitability | 0008| of such individuals, consistent with the | 0009| standards set forth in Section 5, hereinafter. | 0010| The Tribe shall consider any information or | 0011| recommendations provided to it by the State as to | 0012| any such person or entity, but the Tribe shall | 0013| have the final say with respect to the hiring or | 0014| licensing of any such person or entity. | 0015| 2. Notwithstanding that the Tribe has the primary | 0016| responsibility to administer and enforce the | 0017| regulatory requirements, the State Gaming | 0018| Representative authorized in writing by the | 0019| Governor of the State or by legislation duly | 0020| enacted by the State Legislature shall have the | 0021| right to inspect a Gaming Facility, Class III | 0022| Gaming activity, and all records relating to | 0023| Class III Gaming (including those set forth in | 0024| Section 5, hereinafter) of the Tribe, subject to | 0025| the following conditions: | 0001| (a) with respect to public areas of a Gaming | 0002| Facility, at any time without prior notice | 0003| during normal business hours; | 0004| (b) with respect to private areas of a Gaming | 0005| Facility not accessible to the public, at any | 0006| time during normal business hours, immediately | 0007| after notifying the gaming enterprise | 0008| management of his or her presence on the | 0009| premises and presenting proper identification, | 0010| and requesting access to such non-public areas | 0011| of the Gaming Facility; | 0012| (c) with respect to inspection and copying of all | 0013| management records relating to Class III | 0014| Gaming, with forty-eight (48) hours prior | 0015| written notice, not including weekends. The | 0016| reasonable costs of copying will be borne by | 0017| the State; and | 0018| (d) whenever the State Gaming Representative, or | 0019| his designee, enters the premises of the | 0020| Gaming Facility for any such inspection, such | 0021| Representative, or designee, shall identify | 0022| himself to security or supervisory personnel | 0023| of the Gaming Facility. | 0024| 3. The financial information, proprietary ideas, | 0025| plans, methods, data, development inventions or | 0001| other proprietary information regarding the gaming | 0002| enterprise of the Tribe, Class III Gaming conducted | 0003| by the Tribe, or the operation thereof, which is | 0004| provided to the State by the Tribe shall not be | 0005| deemed public records as a matter of state law, and | 0006| shall not be disclosed to any member of the public, | 0007| without the prior written approval of a duly | 0008| authorized representative of the Tribe. These | 0009| prohibitions shall not be construed to prohibit: | 0010| (a) the furnishing of any information to a law | 0011| enforcement or regulatory agency of the | 0012| Federal Government; | 0013| (b) the State from making known the names of | 0014| persons, firms, or corporations conducting | 0015| Class III Gaming pursuant to the terms of this | 0016| Compact, locations at which such activities | 0017| are conducted, or the dates on which such | 0018| activities are conducted; | 0019| (c) publishing the terms of this Compact; | 0020| (d) disclosing information as necessary to audit, | 0021| investigate, prosecute or arbitrate violations | 0022| of this Compact or other applicable laws or to | 0023| defend suits against the State; and | 0024| (e) complying with subpoenas or court orders | 0025| issued by courts of competent jurisdiction. | 0001| 4. To the fullest extent allowed by State law, the | 0002| Tribe shall have the right to inspect State records | 0003| concerning all Class III Gaming conducted by the | 0004| Tribe; the Tribe shall have the right to copy such | 0005| State records, with the Tribe bearing the | 0006| reasonable cost of copying. | 0007| 5. For every year or part thereof in which the Tribe | 0008| is actually engaged in Class III Gaming hereunder, | 0009| the Tribe shall reimburse the State for the actual | 0010| costs the State incurs in carrying out any | 0011| functions authorized by the terms of this Compact, | 0012| in an amount not to exceed twenty-five thousand | 0013| dollars ($25,000) per year. All calculations of | 0014| amounts due shall be based upon a fiscal year | 0015| beginning October 1, and ending September 30, | 0016| unless the parties select a different fiscal year. | 0017| Payments due the State shall be made no later than | 0018| sixty (60) days after the beginning of each fiscal | 0019| year. Payments due the State during any partial | 0020| fiscal year this Compact is in effect shall be | 0021| adjusted to reflect only that portion of the | 0022| fiscal year. Within sixty (60) days after each | 0023| fiscal year in which this Compact is in effect, | 0024| the State shall submit to the Tribe an accounting | 0025| of actual costs incurred in carrying out any | 0001| functions authorized by the terms of this Compact. | 0002| Any amount of said twenty-five thousand dollars | 0003| ($25,000) not expended by the State on said actual | 0004| costs shall be returned to the Tribe by the State | 0005| within sixty (60) days after the fiscal year or | 0006| treated as a prepayment of the Tribe's obligation | 0007| during the subsequent fiscal year. | 0008| 6. In the event the State believes that the Tribe is | 0009| not administering and enforcing the regulatory | 0010| requirements set forth herein, it may invoke the | 0011| procedures set forth in Section 7 of this Compact. | 0012| F. The Tribe shall comply with all applicable provisions | 0013| of the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 | 0014| U.S.C. 5311-5314, and all reporting requirements of the | 0015| Internal Revenue Service. | 0016| SECTION 5. Licensing Requirements. | 0017| A. License Required. The Gaming Facility operator, (but | 0018| not including the Tribe) including its principals, primary | 0019| management officials, and key employees, the Management | 0020| Contractor and its principals, primary management officials, | 0021| and key employees (if the Tribe hires a Management Contractor); | 0022| any person, corporation, or other entity that has supplied or | 0023| proposes to supply any gaming device to the Tribe or the | 0024| Management Contractor; and any person, corporation or other | 0025| entity providing gaming services within or without a Gaming | 0001| Facility, shall apply for and receive a license from the Tribal | 0002| Gaming Agency before participating in any way in the operation | 0003| or conduct of any Class III Gaming on Indian Lands. | 0004| B. License Application. Each applicant for a license | 0005| shall file with the Tribal Gaming Agency a written application | 0006| in the form prescribed by the Tribal Gaming Agency, along with | 0007| the applicant's fingerprint card, current photograph and the | 0008| fee required by the Tribal Gaming Agency. | 0009| 1. The following Notice ("Privacy Act Notice") shall | 0010| be placed on the application form for a | 0011| principal, key employee or a primary management | 0012| official before that form is filled out by an | 0013| applicant: | 0014| "In compliance with the | 0015| Privacy Act of 1974, the | 0016| following information is | 0017| provided: Solicitation | 0018| of the information on | 0019| this form is authorized | 0020| by 25 U.S.C. 2701- | 0021| 2721. The purpose of | 0022| the requested | 0023| information is to | 0024| determine the | 0025| eligibility of | 0001| individuals to be | 0002| employed in a gaming | 0003| enterprise. The | 0004| information will be used | 0005| by members and staff of | 0006| the Tribal Gaming Agency | 0007| and the National Indian | 0008| Gaming Commission who | 0009| have need for the | 0010| information in the | 0011| performance of their | 0012| official duties. The | 0013| information may be | 0014| disclosed to appropriate | 0015| federal, tribal, state, | 0016| local or foreign law | 0017| enforcement and | 0018| regulatory agencies when | 0019| relevant to civil, | 0020| criminal or regulatory | 0021| investigations or | 0022| prosecutions or when, | 0023| pursuant to a | 0024| requirement by a Tribe, | 0025| or the National Indian | 0001| Gaming Commission, the | 0002| information is relevant | 0003| to the hiring or firing | 0004| of an employee, the | 0005| issuance or revocation | 0006| of a gaming license or | 0007| investigations of | 0008| activities while | 0009| associated with a Tribe | 0010| or a gaming enterprise. | 0011| Failure to consent to | 0012| the disclosures | 0013| indicated in this Notice | 0014| will result in a Tribe | 0015| being unable to hire you | 0016| in a primary management | 0017| official or key employee | 0018| position with a tribal | 0019| gaming enterprise. | 0020| The disclosure of your Social Security | 0021| Number (SSN) is voluntary. However, | 0022| failure to supply an SSN may result in | 0023| errors in processing your application." | 0024| 2. Existing principals, key employees and primary | 0025| management officials shall be notified, in writing, | 0001| that they shall either: | 0002| (a) complete a new application form that contains | 0003| a Privacy Act Notice; or | 0004| (b) sign a statement that contains the Privacy Act | 0005| Notice and consent to the routine uses | 0006| described in that Notice. | 0007| 3. The following Notice ("False Statement Notice") | 0008| shall be placed on the application form for a | 0009| principal, key employee or a primary management | 0010| official before that form is filled out by an | 0011| applicant: | 0012| "A false statement on any part of your | 0013| application may be grounds for not hiring you | 0014| or for firing you after you begin work. Also, | 0015| you may be punished by fine or imprisonment. | 0016| See 18 U.S.C. 1001.". | 0017| 4. The Tribal Gaming Agency shall notify, in writing, | 0018| existing principals, key employees and primary | 0019| management officials that they shall either: | 0020| (a) complete a new application form that contains | 0021| a False Statement Notice; or | 0022| (b) sign a statement that contains the False | 0023| Statement Notice. | 0024| 5. The Tribal Gaming Agency shall request from each | 0025| applicant, and from each principal, primary | 0001| management official and key employee of each | 0002| applicant, all of the following information: | 0003| (a) full name, other names used (oral or written), | 0004| Social Security Number(s), birth date, place | 0005| of birth, citizenship, gender and all | 0006| languages spoken or written; | 0007| (b) currently, and for the previous ten (10) | 0008| years, business and employment positions held, | 0009| ownership interests in those businesses, | 0010| business and residence addresses and driver's | 0011| license numbers; provided, that any applicant | 0012| who is a principal, primary management | 0013| official, key employee, Management Contractor, | 0014| manufacturer or supplier of gaming devices, | 0015| and/or a person providing gaming services, | 0016| must provide such information currently, and | 0017| from the age of eighteen (18); | 0018| (c) the names and current addresses of at least | 0019| three (3) personal references, including one | 0020| (1) personal reference who was acquainted with | 0021| the applicant during each period of residence | 0022| listed in Paragraph B.5.(b) of this section; | 0023| (d) current business and residence telephone | 0024| numbers; | 0025| (e) a description of any existing and previous | 0001| business relationships with a Tribe, including | 0002| ownership interests in those businesses, and a | 0003| description of any potential or actual | 0004| conflict of interests between such businesses | 0005| and a Tribe; | 0006| (f) a description of any existing and previous | 0007| business relationships in the gaming industry, | 0008| including, but not limited to, ownership | 0009| interests in those businesses; | 0010| (g) the name and address of any licensing or | 0011| regulatory agency with which the applicant has | 0012| filed an application for a license or permit | 0013| related to gaming, whether or not such license | 0014| or permit was granted; | 0015| (h) for each felony for which there is an ongoing | 0016| prosecution or a conviction, the charge, the | 0017| date of the charge, the name and address of | 0018| the court involved and the disposition, if | 0019| any; | 0020| (i) for each misdemeanor for which there is an | 0021| ongoing prosecution or conviction (excluding | 0022| minor traffic violations), the charge, the | 0023| date of the charge, the name and address of | 0024| the court involved, and the disposition, if | 0025| any; | 0001| (j) for each criminal charge (excluding minor | 0002| traffic charges), whether or not there is a | 0003| conviction, if such criminal charge is not | 0004| otherwise listed pursuant to Paragraph B.5.(h) | 0005| or B.5.(i) of this Section, the criminal | 0006| charge, the date of the charge, the name and | 0007| address of the court involved and the | 0008| disposition, if any; | 0009| (k) the name and address of any licensing or | 0010| regulatory agency with which the person has | 0011| filed an application for an occupational | 0012| license or permit, as an applicant, principal, | 0013| primary management official or key employee, | 0014| and whether or not such license or permit was | 0015| granted; | 0016| (l) a current photograph; | 0017| (m) fingerprints, which shall be taken by officers | 0018| of the tribal police department. Pursuant to | 0019| a Memorandum of Understanding between the | 0020| Tribe and the National Indian Gaming | 0021| Commission ("Commission"), tribal police | 0022| officers shall forward the fingerprint cards | 0023| directly to the Commission; | 0024| (n) the fee required by the Tribal Gaming Agency; | 0025| and | 0001| (o) any other information the Tribal Gaming Agency | 0002| deems relevant. | 0003| C. Background Investigations. | 0004| 1. Upon receipt of a completed application and | 0005| required fee for licensing, the Tribal Gaming | 0006| Agency shall conduct or cause to be conducted a | 0007| background investigation to ensure that the | 0008| applicant is qualified for licensing. | 0009| 2. Background checks of applicants will be performed | 0010| pursuant to the following procedures: | 0011| (a) The Tribal Gaming Agency will provide | 0012| applications to potential applicants upon | 0013| request and shall collect and maintain the | 0014| applications. | 0015| (b) Pursuant to a Memorandum of Understanding | 0016| between the Tribe and the Commission, tribal | 0017| police officers will collect fingerprints from | 0018| all applicants and forward the fingerprint | 0019| cards directly to the Commission. The | 0020| Commission will obtain a criminal history | 0021| record from the Federal Bureau of | 0022| Investigation on each applicant and forward | 0023| such information to the Tribal Gaming Agency. | 0024| (c) The Tribal Gaming Agency shall investigate the | 0025| information provided in the applications. | 0001| This investigation shall include: | 0002| (1) contacting persons or entities | 0003| identified in the application and | 0004| verifying by written or oral | 0005| communication that the information | 0006| contained in the application is | 0007| accurate; | 0008| (2) interviewing a sufficient number of | 0009| knowledgeable people, such as former | 0010| employers, partners, business | 0011| associates, and others referred to in | 0012| the application, to provide a basis for | 0013| the Tribal Gaming Agency to make a | 0014| determination concerning whether the | 0015| applicant meets applicable eligibility | 0016| requirements; | 0017| (3) reviewing relevant financial records of | 0018| the applicant for the three (3) years | 0019| preceding the application; and | 0020| (4) contacting any state, federal or other | 0021| government agency that is referred to in | 0022| the application. | 0023| (d) The Tribal Gaming Agency shall document any | 0024| information it obtains that calls into | 0025| question whether the applicant would meet the | 0001| eligibility requirements under the Ordinance. | 0002| The Tribal Gaming Agency shall then document | 0003| in detail the disposition of these problem | 0004| areas, indicating the follow-up investigations | 0005| performed on the problem areas and the result | 0006| of such investigations. | 0007| (e) The Tribal Gaming Agency will review the | 0008| results of the investigation. This review | 0009| will include a determination as to the scope | 0010| of the investigation and whether sufficient | 0011| information was obtained and verified. If | 0012| such information is found not sufficient, the | 0013| Tribal Gaming Agency will perform additional | 0014| investigations. | 0015| (f) Once the investigation is complete, the Tribal | 0016| Gaming Agency will decide whether the | 0017| applicant meets the eligibility criteria under | 0018| the Ordinance. | 0019| 3. In conducting a background investigation, the | 0020| Tribal Gaming Agency and its agents shall keep | 0021| confidential the identity of each person | 0022| interviewed in the course of the investigation. | 0023| 4. Within twenty (20) days of the receipt of a | 0024| completed application for licensing, and upon | 0025| request of an applicant, the Tribal Gaming Agency | 0001| may issue a temporary license to the applicant, | 0002| unless the background investigation undertaken | 0003| discloses that the applicant has a criminal | 0004| history, or unless other grounds sufficient to | 0005| disqualify the applicant are apparent on the face | 0006| of the application. The temporary license shall | 0007| become void and be of no effect upon either: | 0008| (a) the issuance of the license; | 0009| (b) the issuance of a notice of denial; or | 0010| (c) ninety (90) days after the temporary license | 0011| is issued, whichever occurs first. | 0012| 5. The Tribal Gaming Agency shall review a person's | 0013| prior activities, criminal record, if any, and | 0014| reputation, habits and associations to make a | 0015| finding concerning the eligibility or suitability | 0016| of an applicant, or a principal, key employee or | 0017| primary management official of an applicant, for | 0018| employment or involvement in a gaming enterprise. | 0019| After such consultation, the Tribal Gaming Agency | 0020| shall either issue a license or deny the | 0021| application. If the Tribal Gaming Agency | 0022| determines that employment or involvement of the | 0023| applicant poses a threat to the public interest or | 0024| to the effective regulation of Class III Gaming or | 0025| creates or enhances dangers of unsuitable, unfair | 0001| or illegal practices, methods or activities in the | 0002| conduct of Class III Gaming, the Tribal Gaming | 0003| Agency shall deny the application. | 0004| 6. The Tribal Gaming Agency shall retain the right to | 0005| conduct additional background investigations of any | 0006| person required to be licensed at any time while | 0007| the license is valid. | 0008| D. Procedure for Forwarding Applications and Reports. | 0009| Procedures for forwarding applications and investigative reports to | 0010| the Commission and State Gaming Representative. | 0011| 1. When a key employee or primary management official | 0012| begins work at a gaming enterprise authorized by | 0013| this Compact, the Tribal Gaming Agency shall | 0014| forward to the Commission and the State Gaming | 0015| Representative a completed application for | 0016| employment. | 0017| 2. The Tribal Gaming Agency shall forward the report | 0018| referred to in Paragraph D.4. of this section to | 0019| the Commission and the State Gaming Representative | 0020| within sixty (60) days after an employee begins | 0021| work, or within sixty (60) days of the approval of | 0022| this Compact by the Secretary of the Interior. | 0023| 3. A key employee or primary management official who | 0024| does not have a license shall not be employed after | 0025| ninety (90) days. | 0001| 4. The Tribal Gaming Agency shall prepare and forward | 0002| to the Commission and the State Gaming | 0003| Representative a report on each background | 0004| investigation ("Investigative Report"). An | 0005| Investigative Report shall include all of the | 0006| following: | 0007| (a) steps taken in conducting the background | 0008| investigation; | 0009| (b) results obtained; | 0010| (c) conclusions reached; and | 0011| (d) the basis for those conclusions. | 0012| 5. The Tribal Gaming Agency shall submit with the | 0013| Investigative Report a copy of the eligibility | 0014| determination made under Paragraph C.5. of this | 0015| section. | 0016| 6. If a license is not issued to an applicant, the | 0017| Tribal Gaming Agency shall notify the Commission | 0018| and the State Gaming Representative. | 0019| 7. With respect to principals, key employees and | 0020| primary management officials, the Tribal Gaming | 0021| Agency shall retain applications for employment and | 0022| Investigative Reports (if any) for no less than | 0023| three (3) years from the date of termination of | 0024| employment. | 0025| E. Granting a Gaming License. | 0001| 1. If within thirty (30) days after it receives an | 0002| Investigative Report, neither the Commission nor | 0003| the State Gaming Representative has notified the | 0004| Tribal Gaming Agency that it has an objection to | 0005| the issuance of a license pursuant to a license | 0006| application filed by a principal, key employee or | 0007| primary management official, the Tribal Gaming | 0008| Agency may issue a license to such applicant. | 0009| 2. The Tribal Gaming Agency shall respond to any | 0010| request for additional information from the | 0011| Commission or the State Gaming Representative | 0012| concerning a principal, key employee or primary | 0013| management official who is the subject of an | 0014| Investigative Report. Such a request shall suspend | 0015| the thirty-day (30-day) period under Paragraph E.1. | 0016| of this section until the Commission or the State | 0017| Gaming Representative receives the additional | 0018| information. | 0019| 3. If, within the thirty-day (30-day) period described | 0020| above, the Commission or the State Gaming | 0021| Representative provides the Tribal Gaming Agency | 0022| with a statement itemizing objections to the | 0023| issuance of a license to a principal, key employee | 0024| or primary management official for whom the Tribal | 0025| Gaming Agency has provided an application and | 0001| Investigative Report, the Tribal Gaming Agency | 0002| shall reconsider the application, taking into | 0003| account the objections itemized by the Commission | 0004| and/or the State Gaming Representative, and make a | 0005| final decision whether to issue a license to such | 0006| applicant. | 0007| F. Management Contract. | 0008| 1. If the Tribe chooses to enter into a Management | 0009| Contract, the Tribal Gaming Agency shall require | 0010| that all principals, primary management officials | 0011| and key employees of the Management Contractor be | 0012| licensed. | 0013| 2. The Tribe may enter into a Management Contract only | 0014| if the Management Contract: | 0015| (a) provides that all Class III Gaming covered by | 0016| the Management Contract will be conducted in | 0017| accordance with the IGRA, the Ordinance and | 0018| this Compact; | 0019| (b) enumerates the responsibilities of each of the | 0020| parties for each identifiable function, | 0021| including: | 0022| (1) maintaining and improving the Gaming | 0023| Facility; | 0024| (2) providing operating capital; | 0025| (3) establishing operating days and hours; | 0001| (4) hiring, firing, training and promoting | 0002| employees; | 0003| (5) maintaining the gaming enterprise's | 0004| books and records; | 0005| (6) preparing the gaming enterprise's | 0006| financial statements and reports; | 0007| (7) paying for the services of the | 0008| independent auditor engaged pursuant to | 0009| 25 C.F.R. 571.12; | 0010| (8) hiring and supervising security | 0011| personnel; | 0012| (9) providing fire protection services; | 0013| (10) setting an advertising budget and | 0014| placing advertising; | 0015| (11) paying bills and expenses; | 0016| (12) establishing and administering | 0017| employment practices; | 0018| (13) obtaining and maintaining insurance | 0019| coverage, including coverage of public | 0020| liability and property loss or damage; | 0021| (14) complying with all applicable provisions | 0022| of the Internal Revenue Code of 1986, as | 0023| amended; | 0024| (15) paying the cost of public safety | 0025| services; and | 0001| (16) if applicable, supplying the Commission | 0002| with all information necessary for the | 0003| Commission to comply with the National | 0004| Environmental Policy Act of 1969. | 0005| (c) provides for the establishment and maintenance | 0006| of satisfactory accounting systems and | 0007| procedures that shall, at a minimum: | 0008| (1) include an adequate system of internal | 0009| controls; | 0010| (2) permit the preparation of financial | 0011| statements in accordance with generally | 0012| accepted accounting principles; | 0013| (3) be susceptible to audit; | 0014| (4) permit the calculation and payment of | 0015| the Management Contractor's fee; and | 0016| (5) provide for the allocation of operating | 0017| expenses or overhead expenses among the | 0018| Tribe, the Management Contractor and any | 0019| other user of a shared Gaming Facility | 0020| and services; | 0021| (d) requires the Management Contractor to provide | 0022| the Tribe, not less frequently than monthly, | 0023| verifiable financial reports or all | 0024| information necessary to prepare such reports; | 0025| (e) requires the Management Contractor to provide | 0001| immediate access to the Gaming Facility, | 0002| including its books and records, by | 0003| appropriate officials of the Tribe, who shall | 0004| have: | 0005| (1) the right to verify the daily gross | 0006| revenues and income from the gaming | 0007| enterprise; and | 0008| (2) access to any other gaming-related | 0009| information the Tribe deems appropriate; | 0010| (f) provides for a minimum guaranteed monthly | 0011| payment to the Tribe in a sum certain that has | 0012| preference over the retirement of development | 0013| and construction costs; | 0014| (g) provides an agreed upon maximum dollar amount | 0015| for the recoupment of development and | 0016| construction costs; | 0017| (h) provides for a term not to exceed the period | 0018| allowed by the IGRA; | 0019| (i) details the method of compensating and | 0020| reimbursing the Management Contractor. If a | 0021| Management Contract provides for a percentage | 0022| fee, such fee shall be either: | 0023| (1) not more than thirty percent (30%) of | 0024| the net revenues of the gaming | 0025| enterprise if the Chairman of the | 0001| Commission determines that such | 0002| percentage is reasonable considering the | 0003| circumstances; or | 0004| (2) not more than forty percent (40%) of the | 0005| net revenues if the Chairman of the | 0006| Commission is satisfied that the capital | 0007| investment required and income | 0008| projections for the gaming enterprise | 0009| require the additional fee; | 0010| (j) provides the grounds and mechanisms for | 0011| modifying or terminating the Management | 0012| Contract; | 0013| (k) contains a mechanism to resolve disputes | 0014| between: | 0015| (1) the Management Contractor and customers, | 0016| consistent with the procedures in the | 0017| Ordinance; | 0018| (2) the Management Contractor and the Tribe; | 0019| and | 0020| (3) the Management Contractor and the gaming | 0021| enterprise employees; | 0022| (l) indicates whether and to what extent contract | 0023| assignments and subcontracting are | 0024| permissible; | 0025| (m) indicates whether and to what extent changes | 0001| in the ownership interest in the Management | 0002| Contract require advance approval by the | 0003| Tribe; and | 0004| (n) states that the Management Contract shall not | 0005| be effective unless and until it is approved | 0006| by the Chairman of the Commission, date of | 0007| signature of the parties notwithstanding. | 0008| 3. The Tribe shall not enter into any Management | 0009| Contract if the Tribal Gaming Agency determines | 0010| that the Management Contractor or any principal, | 0011| primary management official or key employee of | 0012| the Management Contractor is not licensed or is | 0013| ineligible to be licensed. | 0014| G. Confidentiality of Records. Any and all background | 0015| investigative reports on employees or contractors, supporting | 0016| documents acquired or generated in connection therewith, and any | 0017| other investigative reports or documents acquired or generated in | 0018| the course of investigations performed by the Tribe or the Tribal | 0019| Gaming Agency, that are provided to the State Gaming | 0020| Representative or any other agency or official of the State by | 0021| the Tribal Gaming Agency or the Tribe pursuant to the provisions | 0022| of this Compact, shall not be deemed public records of the State | 0023| and shall not be disclosed to any member of the public without | 0024| the prior express written authorization of an authorized | 0025| representative of the Tribe; provided, that nothing herein shall | 0001| preclude any State agency or official from providing information | 0002| to a federal agency or official having responsibility relative to | 0003| Indian Gaming or from compliance with any valid order of a court | 0004| having jurisdiction. | 0005| SECTION 6. Providers of Class III Gaming Equipment or Devices or | 0006| Supplies. | 0007| A. Within thirty (30) days after the effective date of this | 0008| Compact, if it has not already done so, the Tribal Gaming Agency | 0009| will adopt standards for any and all Class III Gaming equipment, | 0010| devices or supplies to be purchased, leased or otherwise acquired | 0011| by the Tribe after the effective date of this Compact for use in | 0012| any Gaming Facility, which standards shall be at least as strict | 0013| as the comparable standards applicable to Class III Gaming | 0014| equipment, devices or supplies within the State of Nevada. Any | 0015| and all Class III Gaming equipment, devices or supplies acquired | 0016| by the Tribe after the date of this Compact shall meet or exceed | 0017| the standards thereby adopted, and any and all Class III Gaming | 0018| equipment, devices or supplies used by the Tribe in its Gaming | 0019| Facilities as of the effective date of this Compact shall be | 0020| upgraded or replaced, if necessary, so as to comply with such | 0021| standards, by no later than one (1) year after the effective date | 0022| of this Compact. | 0023| B. Prior to entering into any future lease or purchase | 0024| agreement for Class III Gaming equipment, devices or supplies, | 0025| the Tribe shall obtain sufficient information and identification | 0001| from the proposed seller or lessor and all persons holding any | 0002| direct or indirect financial interest in the lessor or the | 0003| lease/purchase agreement to permit the Tribe to license those | 0004| persons in accordance with Section 5, hereof. | 0005| C. The seller, lessor, manufacturer or distributor shall | 0006| provide, assemble and install all Class III Gaming equipment, | 0007| devices or supplies in a manner approved and licensed by the | 0008| Tribe. | 0009| SECTION 7. Dispute Resolution. | 0010| A. In the event either party believes that the other | 0011| party has failed to comply with or has otherwise breached any | 0012| provision of this Compact, such party may invoke the following | 0013| procedure: | 0014| 1. The party asserting noncompliance shall serve | 0015| written notice on the other party. The notice | 0016| shall identify the specific Compact provision | 0017| believed to have been violated and shall specify | 0018| the factual and legal basis for the alleged | 0019| noncompliance. The notice shall specifically | 0020| identify the date, time and nature of the alleged | 0021| noncompliance. Representatives of the State and | 0022| Tribe shall thereafter meet within thirty (30) | 0023| days in an effort to resolve the dispute. | 0024| 2. In the event an allegation by the complaining | 0025| party is not resolved to the satisfaction of such | 0001| party within ninety (90) days after service of the | 0002| notice set forth in Paragraph (A)(1) of this | 0003| section, the complaining party may serve upon the | 0004| other party a notice to cease conduct of the | 0005| particular game(s) or activities alleged by the | 0006| complaining party to be in noncompliance. Upon | 0007| receipt of such notice, the responding party may | 0008| elect to stop the game(s) or activities specified | 0009| in the notice or invoke arbitration and continue | 0010| the game(s) or activities pending the results of | 0011| arbitration. The responding party shall act upon | 0012| one of the foregoing options within thirty (30) | 0013| days of receipt of notice from the complaining | 0014| party. | 0015| 3. Arbitration under this authority shall be | 0016| conducted under the Commercial Arbitration Rules | 0017| of the American Arbitration Association, except | 0018| that the arbitrators shall be attorneys who are | 0019| licensed members in good standing of the State Bar | 0020| of New Mexico or of the bar of another state. The | 0021| State will select one arbitrator, the Tribe a | 0022| second arbitrator, and the two so chosen shall | 0023| select a third arbitrator. If the third | 0024| arbitrator is not chosen in this manner within ten | 0025| (10) days after the second arbitrator is selected, | 0001| the third arbitrator will be chosen in accordance | 0002| with the rules of the American Arbitration | 0003| Association. | 0004| 4. All parties shall bear their own costs of | 0005| arbitration and attorney fees. | 0006| 5. The results of arbitration shall be enforceable by | 0007| an action for injunctive or mandatory injunctive | 0008| relief against the State and the Tribe in any | 0009| court of competent jurisdiction. For purposes of | 0010| any such action, the State and the Tribe | 0011| acknowledge that any action or failure to act on | 0012| the part of any agent or employee of the State or | 0013| the Tribe, contrary to a decision of the | 0014| arbitrators in an arbitration proceeding conducted | 0015| under the provisions of this section, occurring | 0016| after such decision, shall be wholly unauthorized | 0017| and ultra vires acts, not protected by the | 0018| sovereign immunity of the State or the Tribe. | 0019| B. Nothing in Subsection 7(A) shall be construed to waive, | 0020| limit or restrict any remedy that is otherwise available to | 0021| either party to enforce or resolve disputes concerning the | 0022| provisions of this Compact. Nothing in this Compact shall be | 0023| deemed a waiver of the Tribe's sovereign immunity. Nothing in | 0024| this Compact shall be deemed a waiver of the State's sovereign | 0025| immunity. | 0001| SECTION 8. Protection of Patrons. | 0002| A. Liability to Patrons. To ensure the personal safety | 0003| and protection of patrons and other invitees of a Tribe's | 0004| Gaming Facility operated under the provisions of this Compact, | 0005| the Tribe shall at all times maintain in effect a policy of | 0006| public liability insurance, insuring the Tribe, its agents and | 0007| employees against any claims, demands or liability that may | 0008| arise as a result of personal injury to any person (other than | 0009| an employee of the gaming establishment) occurring anywhere on | 0010| the premises of any gaming establishment operated by the Tribe | 0011| under the provisions of this Compact, or as a result of any act | 0012| or omission of any agent or employee of such gaming | 0013| establishment while in the course of his or her employment, | 0014| which policy shall provide personal injury coverage of no less | 0015| than one million dollars ($1,000,000) per injured person and | 0016| ten million dollars ($10,000,000) per occurrence. | 0017| The Tribe agrees that in the event of any claim made | 0018| against it or its gaming enterprise, or any agent or employee | 0019| thereof, arising out of any personal injury as described above, | 0020| neither the Tribe nor its insurer will assert any defense of | 0021| immunity from suit as to such claim for compensatory damages up | 0022| to the amount of one million dollars ($1,000,000) per injured | 0023| person, and ten million dollars ($10,000,000) per occurrence, | 0024| in any action filed in a court of competent jurisdiction to be | 0025| tried to the court; provided, however, that this agreement not | 0001| to assert such defense shall be strictly limited as provided | 0002| herein, and shall not apply to any claim for punitive damages, | 0003| or to any claim for which a jury trial is demanded, or to any | 0004| claim for any loss or damage other than that arising from | 0005| actual bodily injury or death, or to any claim for damages in | 0006| excess of the amount set forth herein. Nothing herein shall be | 0007| construed as stating or implying that the Tribe has waived or | 0008| agreed not to assert its immunity from suit for any other | 0009| purpose or in any other circumstance other than the limited | 0010| purposes and circumstances expressly set forth herein, and | 0011| nothing herein shall be construed as an admission of liability | 0012| as to any claim for damages or as an agreement or indication of | 0013| willingness to pay any amount as damages absent a judicial | 0014| determination of fault, and the Tribe or its insurer, or both, | 0015| shall in every instance have the right to defend any such claim | 0016| fully on the merits. | 0017| The Tribe shall provide to the State Gaming Representative | 0018| annually a certificate of insurance showing that its gaming | 0019| enterprise and its agents and employees engaged therein are | 0020| insured to the extent and in the circumstances required by this | 0021| section, or that it is self-insured to such extent and in such | 0022| circumstances. If the State Gaming Representative so requests | 0023| in writing, the certificate of insurance may be furnished | 0024| directly to the State Gaming Representative from the insurance | 0025| carrier or the insuring agency for the insured Tribe. | 0001| B. Public Health and Safety. The Tribe shall establish | 0002| for its Gaming Facility health, safety and construction | 0003| standards that are at least as stringent as the current | 0004| editions of the National Electrical Code, the Uniform Building | 0005| Code, the Uniform Mechanical Code, the Uniform Fire Code and | 0006| the Uniform Plumbing Code, and any and all gaming facilities or | 0007| additions thereto constructed by the Tribe hereafter shall be | 0008| constructed and all facilities shall be maintained so as to | 0009| comply with such standards. Inspections will be conducted with | 0010| respect to these standards at least annually. If the State | 0011| Gaming Representative requests sufficiently in advance of an | 0012| annual inspection, the State Gaming Representative may be | 0013| present during such inspection. The Tribe agrees to correct | 0014| any deficiencies noted in such inspections within a reasonable | 0015| period of time. The Tribal Gaming Agency will provide copies | 0016| of such inspection reports to the State Gaming Representative, | 0017| if requested to do so in writing. | 0018| SECTION 9. Effective Date. This Compact shall be effective | 0019| immediately upon the occurrence of the last of the following: | 0020| A. execution by the Tribe's Governor after approval of | 0021| the Tribal Council; | 0022| B. execution by the Governor of the State; | 0023| C. approval by the Secretary of the Interior; and | 0024| D. publication in the Federal Register. | 0025| The Governor is authorized to execute compacts with an | 0001| individual Tribe that has also entered into revenue-sharing | 0002| agreements and has passed resolutions described herein, in | 0003| substantially the same form as set forth herein. Upon | 0004| signature by the Governor and the Tribe, the Compact shall be | 0005| transmitted to the Secretary of the Interior for approval. | 0006| SECTION 10. Criminal Jurisdiction. | 0007| The Tribe and the State acknowledge that under the | 0008| provisions of 23 of the IGRA, especially that portion | 0009| codified at 18 U.S.C. 1166(d), jurisdiction to prosecute | 0010| violations of State gambling laws made applicable by that | 0011| section to Indian country is vested exclusively within the | 0012| United States, unless the Tribe and the State agree in a | 0013| compact entered into the IGRA to transfer such jurisdiction to | 0014| the State. The Tribe and the State hereby agree that, in the | 0015| event of any violation of any State gambling law within the | 0016| Indian Lands by any person who is not a member of the Tribe, | 0017| the State shall have and may exercise jurisdiction, concurrent | 0018| with that of the United States, to prosecute such person, under | 0019| its laws and in its courts; provided, however, that this | 0020| concurrent jurisdiction shall (1) not take effect unless and | 0021| until the State, the Tribe and the Office of the United States | 0022| Attorney for the District of New Mexico shall have entered into | 0023| a Memorandum of Understanding with respect to the manner in | 0024| which State, federal and tribal law enforcement agencies shall | 0025| cooperate in the detection of violations, apprehension and | 0001| detention of any suspected violator and the investigation and | 0002| prosecution of any charges brought by the State pursuant to | 0003| this section and (2) continue so long as the Memorandum of | 0004| Understanding remains in effect. | 0005| SECTION 11. Binding Effect and Duration. | 0006| A. This Compact shall be binding upon the State and Tribe | 0007| for a term of fifteen (15) years from the date it becomes | 0008| effective and will automatically renew for an additional five- | 0009| year (5-year) period. | 0010| B. Before the date that is one (1) year prior to the | 0011| expiration of the fifteen-year (15-year) initial term, and/or | 0012| before the date that is one year prior to the expiration of the | 0013| five-year (5-year) renewal period, either party may serve | 0014| written notice on the other of its desire to renegotiate this | 0015| Compact. | 0016| C. In the event that either party gives written notice to | 0017| the other of its desire to renegotiate this Compact pursuant to | 0018| Subsection (B) of this section, the Tribe may, pursuant to the | 0019| procedures of the IGRA, request the State to enter into | 0020| negotiations for a new compact governing the conduct of Class | 0021| III Gaming. If the parties are unable to conclude a successor | 0022| compact, this Compact shall remain in full force and effect in | 0023| accordance with its terms pending exhaustion of the | 0024| administrative and judicial remedies set forth in the IGRA and | 0025| any other applicable federal law. | 0001| D. Notwithstanding the foregoing, at any time while this | 0002| Compact remains in effect, either party may, by written notice | 0003| to the other party, request reopening of negotiations with | 0004| respect to any provision of this Compact, or with respect to | 0005| any issue not addressed in the Compact, specifying such | 0006| provision or issue in such notice. No such request shall be | 0007| unreasonably refused, but neither party shall be required to | 0008| agree to any change in the Compact, and no agreement to | 0009| supplement or amend this Compact in any respect shall have any | 0010| validity until the same shall have been approved in writing by | 0011| the Tribe, the State and the Secretary of the Interior and | 0012| notice of such approval published in the Federal Register. | 0013| E. The Tribe may operate Class III Gaming only while this | 0014| Compact or any renegotiated compact is in effect. | 0015| SECTION 12. Severability. | 0016| In the event that any section or provision of this Compact | 0017| is held invalid by any court of competent jurisdiction, it is | 0018| the intent of the parties that the remaining sections or | 0019| provisions of this Compact, and any amendments thereto, shall | 0020| continue in full force and effect. | 0021| SECTION 13. Notice to Parties. | 0022| Unless otherwise indicated, all notices, payments, | 0023| requests, reports, information or demand that any party hereto | 0024| may desire or may be required to give to the other party | 0025| hereto, shall be in writing and shall be personally delivered | 0001| or sent by first-class mail sent to the other party at the | 0002| address provided in writing by the other party. Every notice, | 0003| payment, request, report, information or demand so given shall | 0004| be deemed effective upon receipt or, if mailed, upon receipt or | 0005| the expiration of the third day following the day of mailing, | 0006| whichever occurs first, except that any notice of change of | 0007| address shall be effective only upon receipt by the party to | 0008| whom said notice is addressed. | 0009| SECTION 14. Entire Agreement. | 0010| This Compact is the entire agreement between the parties | 0011| and supersedes all prior agreements, whether written or oral, | 0012| with respect to the subject matter hereof. Neither this | 0013| Compact nor any provision herein may be changed, waived, | 0014| discharged or terminated orally, but only by an instrument, in | 0015| writing, signed by the Tribe and the State and approved by the | 0016| Secretary of the Interior. | 0017| SECTION 15. Filing of Compact with State Records Center. | 0018| Upon the effective date of this Compact, a copy shall be | 0019| filed by the Governor with the New Mexico Records Center. Any | 0020| subsequent amendment or modification of this Compact shall be | 0021| filed with the New Mexico Records Center. | 0022| SECTION 16. Counterparts. | 0023| This Compact may be executed by the parties in any number | 0024| of separate counterparts with the same effect as if the | 0025| signatures were upon the same instrument. All such | 0001| counterparts shall together constitute one and the same | 0002| document." | 0003| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL | 0004| GAMING REVENUE.--The governor is authorized to execute a | 0005| revenue-sharing agreement in the form substantially set forth | 0006| in this section with any New Mexico Indian nation, tribe or | 0007| pueblo that has also entered into an Indian gaming compact as | 0008| provided by law. Execution of an Indian gaming compact is | 0009| conditioned upon execution of a revenue-sharing agreement. The | 0010| consideration for the Indian entity entering into the revenue- | 0011| sharing agreement is the condition of the agreement providing | 0012| limited exclusivity of gaming activities to the tribal entity. | 0013| The revenue-sharing agreement shall be in substantially the | 0014| following form and is effective when executed by the governor | 0015| on behalf of the state and the appropriate official of the | 0016| Indian entity: | 0017| "REVENUE-SHARING AGREEMENT | 0018| 1. Summary and consideration. The Tribe shall agree to | 0019| contribute certain of its Class III Gaming revenues, as | 0020| described below. | 0021| 2. Revenue to State. The parties agree that, after the | 0022| effective date hereof, the Tribe shall make semi-annual | 0023| payments to the General Fund of the State ("State General | 0024| Fund"). | 0025| 3. Calculation of Revenue to State. | 0001| A. The parties agree that, as used herein, "net win" | 0002| is defined as the total amount wagered at each Gaming Facility | 0003| on Class III Gaming, which is protected by the limitations in | 0004| Paragraph 5, below, and elsewhere herein, minus the total | 0005| amount paid as prizes (including noncash prizes) and winning | 0006| wagers at said games, and minus all tribal regulatory fees and | 0007| expenses, supported by reasonable, adequate documentation, not | 0008| to exceed Two Hundred Fifty Thousand Dollars ($250,000) per | 0009| year and minus federal and State regulatory fees and expenses, | 0010| and taxes. | 0011| B. The total revenue the Tribe will pay to the State | 0012| in the aggregate pursuant to Paragraph 3, above, shall be | 0013| determined as follows: | 0014| (1) three percent (3%) of the first four million | 0015| dollars ($4,000,000) of net win at each Gaming | 0016| Facility derived annually from Class III Gaming, | 0017| which is protected by the limitations herein; | 0018| (2) five percent (5%) of the next six million | 0019| dollars ($6,000,000) of net win at each Gaming | 0020| Facility derived annually from Class III Gaming, | 0021| which is protected by the limitations herein; | 0022| and/or | 0023| (3) eight percent (8%) of the net win over ten million | 0024| dollars ($10,000,000) at each gaming facility | 0025| derived annually from Class III Gaming, which is | 0001| protected by the limitations provided herein. | 0002| C. For purposes of these payments, all calculations of | 0003| amounts due shall be based upon a calendar year beginning January | 0004| 1 and ending December 31, unless the parties agree on a different | 0005| fiscal year. The semiannual payments due to the State pursuant to | 0006| these terms shall be paid no later than twenty-five (25) days | 0007| after December 31 and June 30 of each year (or commensurate dates | 0008| if the fiscal year agreed upon is different from the calendar | 0009| year). Any payments due and owing from the Tribe in the year the | 0010| Compact is approved, or the final year the Compact is in force, | 0011| shall reflect the net win, but only for the portion of the year | 0012| the Compact is in effect. | 0013| 4. Limitations. The Tribe's obligation to make the | 0014| payments provided for in Paragraphs 2 and 3 of this section | 0015| shall apply and continue only so long as there is a binding | 0016| Indian Gaming Compact in effect between the Tribe and the | 0017| State, which Compact provides for the play of Class III Gaming, | 0018| but shall terminate in the event of any of the following | 0019| conditions: | 0020| A. If the State passes, amends, or repeals any law, | 0021| or takes any other action, which would directly or indirectly | 0022| attempt to restrict, or has the effect of restricting, the | 0023| scope of Indian gaming. | 0024| B. If the State permits any expansion of nontribal | 0025| Class III Gaming in the State. Notwithstanding this general | 0001| prohibition against permitted expansion of gaming activities, | 0002| the State may permit: (1) the enactment of a State lottery, | 0003| (2) any fraternal, veterans or other nonprofit membership | 0004| organization to operate such electronic gaming devices | 0005| lawfully, but only for the benefit of such organization's | 0006| members, (3) limited fundraising activities conducted by | 0007| nonprofit tax exempt organizations pursuant to Section 30-19-6 | 0008| NMSA 1978, and (4) any horse ractracks to operate electronic | 0009| gaming devices on days on which live or simulcast horse racing | 0010| occurs. "Simulcast horse racing" means live broadcasting of | 0011| horse races occurring at horseracing tracks elsewhere within | 0012| New Mexico. However, for any day on which electronic gaming | 0013| devices are permitted to be operated under this provision at | 0014| any horse racetracks located within one hundred fifty (150) | 0015| miles of a Gaming Facility owned by the Tribe, one-half (�) of | 0016| the net win derived from electronic gaming devices at such | 0017| Gaming Facility for such day would be exempt from any revenue- | 0018| sharing obligation under the provisions of this Agreement | 0019| (except if electronic gaming devices are operated at such horse | 0020| racetracks for more than twelve (12) hours on any such day, all | 0021| of the Tribe's revenues from electronic gaming devices on such | 0022| day shall be exempt from any revenue-sharing obligation under | 0023| the provisions of this Agreement); and provided further that | 0024| there will be no exemption from State taxes imposed on the | 0025| operation of electronic gaming devices for those devices | 0001| operated at horse racetracks. | 0002| 5. Effect of Variance. | 0003| A. In the event the acts or omissions of the State | 0004| cause the Tribe's obligation to make payments under Paragraph 3 | 0005| of this section to terminate under the provisions of Paragraph | 0006| 4 of this section, such cessation of obligation to pay will not | 0007| adversely affect the validity of the Compact, but the maximum | 0008| amount that the Tribe agrees to reimburse the State for actual | 0009| documented regulatory costs under the Compact shall | 0010| automatically increase to one hundred thousand dollars | 0011| ($100,000) per year. | 0012| B. In the event a Tribe's revenue-sharing payment to | 0013| the State is less than one hundred thousand dollars ($100,000) | 0014| per year, the maximum amount that the Tribe agrees to reimburse | 0015| the State for actual documented regulatory costs under the | 0016| Compact shall automatically increase to one hundred thousand | 0017| dollars ($100,000) per year less the amount of the revenue- | 0018| sharing payment. | 0019| 6. Third-Party Beneficiaries. This Agreement is not | 0020| intended to create any third-party beneficiaries and is entered | 0021| into solely for the benefit of the Tribe and the State." | 0022| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 | 0023| through 26 of this act may be cited as the "Video Gambling | 0024| Act". | 0025| Section 4. [NEW MATERIAL] AUTHORITY AND PURPOSE.--The | 0001| purpose of the Video Gambling Act is to make lawful and | 0002| regulate the conduct and operation of certain electronic video | 0003| games of chance by certain nonprofit organizations and | 0004| racetracks. | 0005| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0006| Video Gambling Act: | 0007| A. "director" means the director of the alcohol and | 0008| gaming division of the regulation and licensing department; | 0009| B. "distributor" means a person who sells, offers | 0010| for sale or furnishes to another person a video gambling | 0011| machine; | 0012| C. "division" means the alcohol and gaming division | 0013| of the regulation and licensing department; | 0014| D. "fraternal organization" means any organization | 0015| within the state that is not organized for pecuniary profit, is | 0016| a branch, lodge or chapter of a national or state organization, | 0017| exists for the common business, brotherhood or other interests | 0018| of its members and has existed in New Mexico for at least three | 0019| years immediately prior to making application for a license | 0020| pursuant to the Video Gambling Act, but "fraternal | 0021| organization" does not include college and high school | 0022| fraternities or sororities; | 0023| E. "gross receipts" means the total amount of money | 0024| or the value of other consideration received from selling, | 0025| renting, leasing or distributing a video gambling machine, but | 0001| in an exchange in which the money or other consideration | 0002| received does not represent the value of the property | 0003| exchanged, "gross receipts" means the reasonable value of the | 0004| property exchanged as determined by the director; | 0005| F. "licensee" means the holder of any license issued | 0006| pursuant to the Video Gambling Act; | 0007| G. "manufacturer" means a person that assembles, | 0008| from parts or raw materials, a video gambling machine; | 0009| H. "net drop" means the amount wagered on a video | 0010| gambling machine less the amounts paid as winnings on the | 0011| machine; | 0012| I. "operate" means to possess or maintain any video | 0013| gambling machine for the purpose of allowing a person to play | 0014| it; | 0015| J. "person" means an individual or other entity; | 0016| K. "play" means to activate a video gambling machine | 0017| and to manipulate or work it for the purpose of trying to win | 0018| money, prizes or other consideration; | 0019| L. "racetrack" means a facility or person licensed | 0020| by the state racing commission to conduct horse racing within | 0021| this state; | 0022| M. "veterans' organization" means any organization | 0023| within this state or any branch, lodge or chapter of a national | 0024| or state organization within this state that is organized not | 0025| for pecuniary profit, the membership of which consists entirely | 0001| of individuals who were members of the armed services of the | 0002| United States, and which has been in existence in New Mexico | 0003| for at least three years immediately prior to its making | 0004| application for a license under the Video Gambling Act; and | 0005| N. "video gambling machine" means an electronic | 0006| device, except amusement-type video game machines not operated | 0007| by a licensee that are commonly used for amusement only and | 0008| only pay out tickets or credits that may only be exchanged for | 0009| merchandise of insignificant value, that: | 0010| (1) upon payment of any consideration | 0011| simulates the play of any game of chance; | 0012| (2) utilizes a video display and | 0013| microprocessors; and | 0014| (3) by chance or through some combination of | 0015| chance and skill dispenses or the player may otherwise receive | 0016| cash, coins, tokens, free gambling or credits that can be | 0017| redeemed for cash, coins, tokens, prizes or other | 0018| consideration. | 0019| Section 6. [NEW MATERIAL] PROHIBITION AGAINST | 0020| UNAUTHORIZED ACTS RELATING TO VIDEO GAMBLING.--Except as | 0021| provided pursuant to a valid Indian gaming compact between the | 0022| state and an Indian nation, tribe or pueblo in effect and | 0023| except as provided pursuant to Section 30-19-6 NMSA 1978, no | 0024| person shall manufacture, import, sell, lease, rent, | 0025| distribute, operate, participate in the operation of or conduct | 0001| an activity using a video gambling machine without having first | 0002| obtained an appropriate license issued by the division pursuant | 0003| to the Video Gambling Act. | 0004| Section 7. [NEW MATERIAL] LICENSING--GENERAL | 0005| PROVISIONS.-- | 0006| A. A license may be issued only in accordance with | 0007| the provisions of the Video Gambling Act. | 0008| B. An applicant for a license or a licensee shall | 0009| produce records or evidence and give all information requested | 0010| by the director. An applicant or licensee shall not interfere | 0011| or attempt to interfere with any investigation by the director. | 0012| C. The director shall investigate the qualifications | 0013| of an applicant for a license and shall investigate the | 0014| conditions existing in the community in which the premises for | 0015| which a license is sought is located before the license is | 0016| issued so that a license is not issued to a person or for a | 0017| location if the issuance is prohibited by law or contrary to | 0018| the public health or safety. | 0019| D. No license shall be issued to a person that: | 0020| (1) has been convicted of a felony; or | 0021| (2) has as a majority shareholder, director or | 0022| officer a person who has been convicted of a felony. | 0023| E. A licensee shall not employ in a position having | 0024| authority to conduct or supervise video gambling for the | 0025| licensee a person that has been convicted of a felony. | 0001| F. An applicant that is a proprietor shall file with | 0002| an application two complete sets of his fingerprints. An | 0003| applicant that is a general partnership shall file with an | 0004| application two complete sets of fingerprints of all general | 0005| partners. | 0006| G. If the applicant is a limited partnership, it | 0007| shall file two complete sets of fingerprints for each general | 0008| partner and for each limited partner contributing ten percent | 0009| or more of the total value of contributions made to the limited | 0010| partnership or entitled to ten percent or more of the profits | 0011| earned or other compensation by way of income paid by the | 0012| limited partnership. | 0013| H. If the applicant is a limited liability company, | 0014| it shall file two complete sets of fingerprints for each | 0015| manager or member with management responsibilities. | 0016| I. If the applicant is a corporation, it shall file | 0017| two complete sets of fingerprints for a stockholder holding ten | 0018| percent or more of the outstanding stock, principal officer, | 0019| director and the agent responsible for the operation of the | 0020| licensed business. | 0021| J. Fingerprints taken pursuant to the provisions of | 0022| this section shall be taken under the supervision of and | 0023| certified to by an officer of the New Mexico state police, a | 0024| county sheriff or a municipal chief of police. | 0025| K. The director may exchange identification records | 0001| and information with law enforcement agencies for official use. | 0002| Any identification records received from the United States | 0003| department of justice, including identification records based | 0004| on fingerprints, shall be used only for licensing purposes and | 0005| to achieve compliance with the provisions of the Video Gambling | 0006| Act. The department shall not disseminate information obtained | 0007| pursuant to the provisions of this subsection except to law | 0008| enforcement agencies for official use only. | 0009| L. An application for the issuance of a license or | 0010| annual renewal of a license shall be accompanied by a fee in | 0011| the following amounts: | 0012| (1) for manufacturer licensees, the initial | 0013| license fee shall be fifteen thousand dollars ($15,000) and the | 0014| annual renewal fee shall be one thousand dollars ($1,000); and | 0015| (2) for racetrack licensees, video gambling | 0016| machine licensees and distributor licensees, the initial | 0017| license fee and the annual renewal fee shall be one thousand | 0018| dollars ($1,000). | 0019| M. The director shall prescribe the requirements for | 0020| and contents of each application, consistent with the | 0021| provisions of the Video Gambling Act. | 0022| N. Licenses issued pursuant to the Video Gambling | 0023| Act shall expire on June 30 of each year and may be renewed | 0024| upon proper application and payment of the required application | 0025| fee. If a license expires, the licensee shall cease all | 0001| activities subject to licensure until the license is renewed. | 0002| O. A licensee has no vested property right in a | 0003| license. It is the property of the state. Licenses issued | 0004| pursuant to the provisions of the Video Gambling Act are not | 0005| subject to sale, lease, devise, transfer, assignment, | 0006| execution, attachment, a security transaction, liens or | 0007| receivership. | 0008| Section 8. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0009| LICENSE.-- | 0010| A. A license may be issued to a fraternal | 0011| organization or veterans' organization to own or operate, or | 0012| both, video gambling machines for which permits have been | 0013| issued by the director. | 0014| B. A video gambling machine licensee may install and | 0015| operate video gambling machines only at the location stated in | 0016| its application and approved by the director. | 0017| C. No person other than an active member of a | 0018| veterans' organization or a fraternal organization that is a | 0019| video gambling machine licensee and bona fide guests of that | 0020| member may play video gambling machines operated by the video | 0021| gambling machine licensee. | 0022| D. A video gambling machine licensee shall report | 0023| information required by division regulations to the division | 0024| every three months. Forms for reporting shall be prescribed | 0025| and furnished by the director. | 0001| E. A video gambling machine licensee shall not | 0002| purchase, lease or otherwise acquire a video gambling machine | 0003| except from a distributor licensee. | 0004| F. No more than one video gambling machine for every | 0005| twenty members of a video gambling machine licensee, not to | 0006| exceed twenty-five machines per organization, shall be | 0007| permitted by the director or operated by the licensee. | 0008| Section 9. [NEW MATERIAL] RACETRACK LICENSE.-- | 0009| A. A license may be issued to a racetrack to own or | 0010| operate, or both, video gambling machines for which permits | 0011| have been issued by the director. | 0012| B. A racetrack licensee may install and operate | 0013| video gambling machines only at the location stated in its | 0014| application and approved by the director. | 0015| C. A racetrack licensee shall not operate or allow a | 0016| person to play a video gambling machine at the racetrack except | 0017| in accordance with the following provisions: | 0018| (1) a video gambling machine shall not be | 0019| operated or played except on days that the racetrack is holding | 0020| a live formal race meet or simulcasting New Mexico horse race | 0021| meets authorized by the state racing commission and only during | 0022| the periods of time authorized by the commission but not to | 0023| exceed twelve consecutive hours on a day; | 0024| (2) members of the public patronizing the | 0025| racetrack, except minors, may play video gambling machines | 0001| operated by the racetrack licensee; and | 0002| (3) only racetrack employees may operate video | 0003| gambling machines at the racetrack. | 0004| D. A racetrack licensee shall report information | 0005| required by division regulations to the division every three | 0006| months. Forms for reporting shall be prescribed and furnished | 0007| by the director. | 0008| E. A racetrack licensee shall not purchase, lease or | 0009| otherwise acquire a video gambling machine except from a | 0010| distributor licensee. | 0011| Section 10. [NEW MATERIAL] MANUFACTURER LICENSE.-- | 0012| A. A license may be issued to a person desiring to | 0013| manufacture video gambling machines in this state. | 0014| B. A person shall not manufacture video gambling | 0015| machines in this state without a license issued to the | 0016| manufacturer by the director. | 0017| C. Each licensed manufacturer shall report | 0018| information required by division regulations to the division | 0019| every three months. Forms for reporting shall be prescribed | 0020| and furnished by the director. | 0021| D. A licensed manufacturer shall not sell a video | 0022| gambling machine to or solicit the purchase of a video gambling | 0023| machine by a person other than a licensed distributor. | 0024| E. A licensed manufacturer shall not operate, | 0025| receive for resale or participate either directly or indirectly | 0001| in the operation or resale of a video gambling machine. | 0002| Section 11. [NEW MATERIAL] DISTRIBUTOR LICENSE.-- | 0003| A. A license may be issued to a person desiring to | 0004| distribute video gambling machines in this state. | 0005| B. A person shall not distribute video gambling | 0006| machines in this state without a license issued by the | 0007| director. | 0008| C. A licensed distributor shall not distribute a | 0009| video gambling machine except to a video gambling licensee. | 0010| D. A licensed distributor shall report information | 0011| required by division regulations to the division every three | 0012| months. Forms for reporting shall be prescribed and furnished | 0013| by the director. | 0014| E. A licensed distributor shall not operate or | 0015| participate either directly or indirectly in the operation of | 0016| any video gambling machine. | 0017| Section 12. [NEW MATERIAL] RULES AND REGULATIONS.-- | 0018| A. The director may adopt reasonable rules and | 0019| regulations necessary to implement the Video Gambling Act. | 0020| Except for emergency regulations adopted pursuant to the | 0021| provisions of Subsection B of this section, no rule or | 0022| regulation affecting any person outside the division shall be | 0023| adopted, amended or repealed without a public hearing on the | 0024| proposed action before the director or a hearing officer | 0025| designated by him. The public hearing shall be held in Santa | 0001| Fe. Notice of the subject matter of the proposed action, the | 0002| date, time and place of the public hearing, the manner in which | 0003| an interested person may present his views and the method by | 0004| which copies of the proposed regulation, amendment or repeal | 0005| may be obtained shall be published once at least thirty days | 0006| prior to the hearing date in a newspaper of general | 0007| circulation. All regulations shall be filed in accordance with | 0008| the State Rules Act. | 0009| B. If the director determines that an emergency | 0010| exists that requires immediate action to implement or enforce | 0011| the provisions of the Video Gambling Act, he may adopt, amend | 0012| or repeal a regulation without notice and hearing and the | 0013| emergency action shall become effective immediately upon its | 0014| filing under the State Rules Act. The emergency adoption, | 0015| amendment or repeal of a regulation shall not continue in | 0016| effect longer than forty-five days unless within that time the | 0017| director commences proceedings to take the action by issuing | 0018| the notice required in Subsection A of this section. If the | 0019| director commences proceedings by issuing notice, the emergency | 0020| adoption, amendment or repeal of a regulation shall remain in | 0021| effect until a permanent action takes effect or until the | 0022| procedures are otherwise completed. | 0023| C. Regulations adopted by the director may provide | 0024| for the following: | 0025| (l) any reasonable reporting requirements in | 0001| addition to those set forth in the Video Gambling Act; | 0002| (2) required provisions in purchase or leasing | 0003| contracts relating to video gambling machines; | 0004| (3) appropriate security measures providing | 0005| for the safety of participants in the conduct of video | 0006| gambling; | 0007| (4) the contents of and process for | 0008| applications for licenses or permits pursuant to the Video | 0009| Gambling Act; | 0010| (5) electronic fund transfers from licensees of | 0011| taxes owed to the state as provided herein, and trust accounts | 0012| for the collection and maintenance of those funds; and | 0013| (6) other rules and regulations that are | 0014| consistent with the provisions of the Video Gambling Act and | 0015| provide for the integrity, honesty and security of the conduct | 0016| of video gambling activities by a licensee. | 0017| D. The division shall adopt by regulation mechanical | 0018| and electronic standards for video gambling machines ensuring | 0019| the integrity, honesty and security of the machines. The | 0020| standards shall not be more lenient than those applied to | 0021| similar machines in lawful use within the United States by any | 0022| other jurisdiction regulating the conduct of video gambling. | 0023| Section 13. [NEW MATERIAL] CONTRACT WITH NEW MEXICO | 0024| LOTTERY AUTHORITY.--The division shall enter into a contract | 0025| with the New Mexico lottery authority to conduct the monitoring | 0001| of video gambling machines, including receiving and | 0002| transmitting information required by the Video Gambling Act to | 0003| the division by the authority. The contract shall allow the | 0004| authority to electronically disable any video gambling machine | 0005| that is not operated in compliance with the Video Gambling Act | 0006| upon request from the division. The contract is not subject to | 0007| the provisions of the Procurement Code, and may provide for the | 0008| compensation agreed to by the division and the authority. | 0009| Section 14. [NEW MATERIAL] PERMITS REQUIRED FOR VIDEO | 0010| GAMBLING MACHINES.-- | 0011| A. A licensee that intends to operate a video | 0012| gambling machine shall file an application with the division | 0013| for a permit for each video gambling machine purchased, leased | 0014| or otherwise acquired by the licensee within twenty days of | 0015| purchasing, leasing or otherwise acquiring the machine. The | 0016| application shall be on forms prescribed and furnished by the | 0017| director. The division shall not issue a permit for any | 0018| machine that has not been tested in accordance with the | 0019| provisions of the Video Gambling Act or does not comply with | 0020| standards adopted by the division by regulation. | 0021| B. An application for a permit shall be accompanied | 0022| by a permit fee of one hundred dollars ($100) per machine. | 0023| C. The division shall issue a permit number for a | 0024| machine based upon compliance with all applicable provisions of | 0025| the Video Gambling Act and upon filing a properly completed | 0001| application along with the required permit fee for the machine, | 0002| but the director may refuse to issue a permit for a specific | 0003| machine if he believes that the machine is inaccurate, | 0004| unreliable or will not be operated in accordance with the | 0005| provisions of the Video Gambling Act or regulations adopted | 0006| pursuant to that act. | 0007| D. A video gambling machine shall not be operated | 0008| and a person shall not play a video gambling machine unless the | 0009| licensee has a current permit to operate the machine. | 0010| E. An application for a permit shall provide | 0011| information required by regulations adopted by the director. | 0012| F. A licensee shall place a video gambling machine | 0013| into operation within ten days of issuance of the permit for | 0014| that machine. If the machine is not placed into operation | 0015| within ten days, the permit shall be canceled by the director. | 0016| Section 15. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0017| TESTING AND INSPECTION.-- | 0018| A. A permit shall not be issued for a video gambling | 0019| machine unless it is first tested and certified for accuracy | 0020| and reliability by an independent testing laboratory approved | 0021| by the director. The costs of the testing shall be paid by the | 0022| licensee that proposes to operate the machine. | 0023| B. No video gambling machine may be operated if it, | 0024| or the software used to control its electronic functions, has | 0025| been modified in any way without having been tested after the | 0001| modification and certified for accuracy and reliability by an | 0002| independent testing laboratory approved by the director. | 0003| C. A video gambling machine and the premises at | 0004| which it is being operated or played shall be open to | 0005| inspection at all times by the director, his authorized | 0006| employees or any law enforcement officer. Whenever the | 0007| director or any law enforcement officer has probable cause to | 0008| believe that any video gambling machine was obtained from an | 0009| unlicensed manufacturer or distributor, is being operated by an | 0010| unlicensed person, is being operated without a permit or | 0011| otherwise fails to meet the requirements of the Video Gambling | 0012| Act or regulations adopted pursuant to that act, he shall | 0013| remove and impound the video gambling machine for the purpose | 0014| of testing and detention and shall retain possession of the | 0015| machine until otherwise ordered by a district court. | 0016| Section 16. [NEW MATERIAL] CONDUCT OF VIDEO MACHINE | 0017| GAMBLING.-- | 0018| A. A licensee shall not allow access to a video | 0019| gambling machine for the purpose of play by a person who has | 0020| not reached his twenty-first birthday. | 0021| B. Except for video gambling machines located on the | 0022| premises of a racetrack licensee, a licensee shall not allow | 0023| access to a video gambling machine for the purpose of play by a | 0024| person who is not a bona fide member of the licensee or a bona | 0025| fide guest of the member. | 0001| C. A video gambling machine for which a permit has | 0002| been issued by the division may be located and operated on a | 0003| liquor premises licensed pursuant to the Liquor Control Act if | 0004| the person holding the liquor license is also a video gambling | 0005| machine licensee. | 0006| D. If a video gambling machine fails to meet | 0007| specifications and requirements of the Video Gambling Act or a | 0008| regulation adopted pursuant to that act after a permit is | 0009| issued, the licensee shall remove the machine from public | 0010| access immediately and not operate it until it has been | 0011| adjusted to meet all requirements. | 0012| E. All tables displaying prizes or awards shall be | 0013| prominently displayed on a video gambling machine operated by a | 0014| licensee. A licensee may establish house rules regulating the | 0015| operation or conduct of video gambling machines if the rules do | 0016| not conflict with provisions of the Video Gambling Act or a | 0017| regulation adopted pursuant to that act. | 0018| F. A licensee operating a video gambling machine | 0019| shall display on each machine, or in a conspicuously visible | 0020| place, the telephone number of the division that can be called | 0021| to report device malfunctions or complaints. | 0022| Section 17. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0023| REQUIREMENTS--MONITORING.-- | 0024| A. Prior to operation, a licensee, at his own | 0025| expense, shall connect each video gambling machine to existing | 0001| telecommunications lines and systems and ensure that the video | 0002| gambling machine is capable of providing the following | 0003| information to the division or its contractor through a data | 0004| report or detailed tape: | 0005| (1) the time of day in hours and minutes in | 0006| which the video gambling machine is in operation; | 0007| (2) the location of the video gambling | 0008| machine; | 0009| (3) the number of the pool of tickets or deal | 0010| and the size of the pool; | 0011| (4) the serial and permit numbers of the video | 0012| gambling machine; | 0013| (5) the cumulative amount of money inserted | 0014| into the video gambling machine at any given time; | 0015| (6) the amount of money contained in the video | 0016| gambling machine at a given time; | 0017| (7) the amount of money, credits or other | 0018| consideration paid to players by the video gambling machine at | 0019| any given time; | 0020| (8) the version number of the software running | 0021| on the gambling machine; and | 0022| (9) other information required by regulations | 0023| adopted by the director. | 0024| B. A video gambling machine shall contain a printer | 0025| that is capable of printing a performance synopsis of the | 0001| gambling played and that creates an exact and identical copy of | 0002| all items printed that is retained inside the video gambling | 0003| machine. A video gambling machine shall have electronic and | 0004| mechanical meters. The printer inside the video gambling | 0005| machine shall be capable of printing the information on the | 0006| meters. | 0007| C. The main logic board and the printed circuit | 0008| board of a video gambling machine containing gambling erasable | 0009| program read-only memories shall be isolated in a locked area | 0010| of the video gambling machine. The memories shall be sealed to | 0011| the board by the manufacturer using a process approved by the | 0012| division. The sealing shall be of a type that permits field | 0013| examination of the memories and effective resealing after | 0014| examination. | 0015| D. A video gambling machine shall have a | 0016| nonremovable serial number plate that provides at least the | 0017| following information: | 0018| (1) the permit number issued by the division; | 0019| and | 0020| (2) the manufacturer's name, date of | 0021| manufacture and manufacturer's serial number. | 0022| E. Access to a video gambling machine shall be | 0023| controlled through locks. | 0024| F. A video gambling machine shall have surge | 0025| protection and battery backup systems and shall pass a static | 0001| discharge test of at least forty thousand volts. | 0002| G. A video gambling machine shall allow for random | 0003| play and winning. | 0004| H. Each video gambling machine shall be capable of | 0005| being deactivated by an electronic signal generated by the | 0006| division or its contractor. | 0007| Section 18. [NEW MATERIAL] TESTING, AUDITING AND | 0008| SEIZURE OF VIDEO GAMBLING MACHINES.-- | 0009| A. The director may by written directive require a | 0010| licensee, at the licensee's expense, to have a video gambling | 0011| machine manufactured, distributed, owned, leased or operated by | 0012| that licensee tested for reliability and accuracy by an | 0013| independent laboratory approved or designated by the director. | 0014| No video gambling machine may be operated or distributed by a | 0015| licensee until it has been tested and the director is satisfied | 0016| that the video gambling machine is accurate and reliable based | 0017| upon the results of the test. | 0018| B. The director or his designated agents or | 0019| contractors may, without advance notice to the licensee, audit | 0020| or test the operation of a video gambling machine to ensure | 0021| reliability and accuracy. A licensee shall allow access to its | 0022| video gambling machines and its premises by the director or his | 0023| designated agents or contractors immediately upon request. | 0024| C. The director or his designated agents or | 0025| contractors may audit all records of a licensee, whether or not | 0001| they are in the licensee's possession, to ensure compliance | 0002| with the provisions of the Video Gambling Act or regulations | 0003| adopted pursuant to the provisions of that act. A licensee | 0004| requested to produce records relating to its video gambling | 0005| machine activities by the director, his designated agents or | 0006| contractors, shall do so immediately upon request. | 0007| D. The director may seize or seal a video gambling | 0008| machine, and he may order a licensee to cease operating a video | 0009| gambling machine, without prior notice if the director believes | 0010| that the licensee is violating any provision of the Video | 0011| Gambling Act or a regulation adopted pursuant to the provisions | 0012| of that act. He also may take the foregoing actions if a | 0013| machine is not accurate or reliable or has been changed or | 0014| modified in any manner not approved by the director. | 0015| Section 19. [NEW MATERIAL] DENIAL, SUSPENSION OR | 0016| REVOCATION OF LICENSE.-- | 0017| A. The director may refuse to issue or renew a | 0018| license or suspend or revoke a license, and he may fine a | 0019| licensee in an amount not to exceed ten thousand dollars | 0020| ($10,000) per incident, or both, upon a finding that the | 0021| applicant or licensee or any member, officer, director, | 0022| employee or agent of the applicant or licensee has: | 0023| (1) violated any provision of the Video | 0024| Gambling Act or a regulation adopted pursuant to that act; | 0025| (2) provided false or misleading information | 0001| to the director; | 0002| (3) been convicted of a felony or any | 0003| gambling- related offense; | 0004| (4) modified or changed any video gambling | 0005| machine so as to endanger or compromise its accuracy, security | 0006| or reliability; | 0007| (5) engaged in dishonest or deceptive | 0008| practices with respect to its video gambling machine | 0009| activities; or | 0010| (6) conducted its video gambling activities in | 0011| a manner that may be considered a public nuisance. | 0012| B. When the director contemplates taking an action | 0013| against an applicant or licensee to refuse to issue or renew or | 0014| to revoke or suspend a license or impose a fine, he shall serve | 0015| written notice upon the applicant or licensee containing the | 0016| following: | 0017| (1) a statement that the director has | 0018| sufficient evidence that, if not rebutted or explained, will | 0019| justify the director in taking the contemplated action; | 0020| (2) a statement indicating the general nature | 0021| of the evidence; and | 0022| (3) a statement advising the applicant or | 0023| licensee that unless the applicant or licensee within twenty | 0024| days after service of the notice delivers a written request for | 0025| hearing to the director, the director will take the | 0001| contemplated action. | 0002| C. If the applicant or licensee does not deliver a | 0003| request for hearing within the time required by Paragraph (3) | 0004| of Subsection B of this section, the director may take the | 0005| action contemplated in the notice, and that action is final and | 0006| not subject to judicial review. | 0007| D. If the applicant or licensee delivers a request | 0008| for hearing within the time required by Paragraph (3) of | 0009| Subsection B of this section, the director shall, within twenty | 0010| days of receipt of the request, notify the applicant or | 0011| licensee of the time and place of hearing and the name of the | 0012| person who shall conduct the hearing for the director. The | 0013| hearing shall be held not more than sixty and not less than | 0014| fifteen days from the date of service of the notice of hearing. | 0015| E. Hearings held pursuant to the provisions of this | 0016| section shall be: | 0017| (1) in Santa Fe; | 0018| (2) conducted by the director or by a hearing | 0019| officer appointed by the director; and | 0020| (3) open to the public. | 0021| F. A licensee or applicant entitled to and | 0022| requesting a hearing has the right to be represented by | 0023| counsel, to present all relevant evidence, to examine all | 0024| opposing witnesses, and to have subpoenas issued by the | 0025| director to compel the attendance of witnesses and the | 0001| production of documents. | 0002| G. The director or hearing officer may impose | 0003| appropriate evidentiary sanctions against a party who fails to | 0004| provide discovery or to comply with a subpoena. | 0005| H. The director or hearing officer shall cause a | 0006| complete record to be made of all evidence received during the | 0007| course of a hearing. | 0008| I. After a hearing has been completed, the director | 0009| shall render his decision as soon as is practicable. | 0010| J. An applicant or licensee that is aggrieved by an | 0011| adverse decision of the director may obtain a review of the | 0012| decision in the district court of Santa Fe county by filing | 0013| with the court a petition for review within twenty days after | 0014| the date of service of the decision. Failure to file a | 0015| petition for review in the manner and within the time stated | 0016| shall operate as a waiver of the right to judicial review and | 0017| shall result in the decision of the director becoming final. | 0018| K. Upon the review of a decision of the director, | 0019| the court shall affirm the decision of the director unless it | 0020| finds that the substantial rights of the petitioner have been | 0021| prejudiced because the decision was in violation of | 0022| constitutional provisions; in excess of the statutory authority | 0023| or jurisdiction of the director, or made upon unlawful | 0024| procedure; affected by other error of law; unsupported by | 0025| substantial evidence based upon a review of the entire record | 0001| submitted; or arbitrary or capricious. | 0002| L. A party to the review proceeding in the district | 0003| court may appeal to the supreme court from the decision of the | 0004| district court. | 0005| Section 20. [NEW MATERIAL] SHIPMENT OF VIDEO GAMBLING | 0006| MACHINES.--Shipments of video gambling machines into this state | 0007| shall comply with all requirements of the Video Gambling Act | 0008| and all applicable federal laws. | 0009| Section 21. [NEW MATERIAL] RECORDS REQUIRED AND RECORD | 0010| RETENTION.-- | 0011| A. In addition to other records required to be | 0012| generated or kept pursuant to the Video Gambling Act, each | 0013| licensee operating video gambling machines shall maintain | 0014| complete operation records, including audit tapes, and shall | 0015| make them available for inspection by the director, authorized | 0016| employees of the division or any law enforcement officer upon | 0017| request. Those records shall include: | 0018| (1) all permit and licensing documents issued | 0019| by the division; | 0020| (2) a complete record of all winnings paid out | 0021| by each video gambling machine, including the date, time and | 0022| amount of the winnings paid out; | 0023| (3) a record of gross receipts from operation | 0024| of each video gambling machine by date; and | 0025| (4) records required by regulations adopted | 0001| pursuant to the Video Gambling Act. | 0002| B. A licensee shall maintain records required by the | 0003| Video Gambling Act, or a regulation adopted pursuant to that | 0004| act, within this state for a minimum of three years. | 0005| C. An applicant for a license or a licensee, as a | 0006| condition of issuance or continuation of licensure, shall grant | 0007| the director, or his designee, access to all tax returns | 0008| maintained by the United States internal revenue service or the | 0009| taxation and revenue department that have been filed on behalf | 0010| of any person having an ownership or other financial interest | 0011| in the applicant or the video gambling activities of the | 0012| licensee or having a function in relation to the video gambling | 0013| activities of the licensee. The director shall consider those | 0014| records when determining qualifications for initial and | 0015| continuing licensure or other actions pursuant to the Video | 0016| Gambling Act. | 0017| Section 22. [NEW MATERIAL] TAX IMPOSED--PURSE | 0018| ALLOCATION.-- | 0019| A. An excise tax known as the "gambling tax" is | 0020| imposed upon the privilege of manufacturing, distributing or | 0021| operating a video gambling machine in this state or receiving | 0022| revenue from the operation of a video gambling machine within | 0023| this state. The amount of the gambling tax is, for: | 0024| (1) manufacturer licensees, ten percent of the | 0025| gross receipts from each sale or other transfer of a video | 0001| gambling machine manufactured within this state; | 0002| (2) distributor licensees, ten percent of | 0003| gross receipts from the distribution of a video gambling | 0004| machine within this state; | 0005| (3) video gambling machine licensees, fifteen | 0006| percent of the net drop derived from the operation of a video | 0007| gambling machine; and | 0008| (4) racetrack licensees, the following amounts: | 0009| (a) for the 1997 calendar year, fifteen | 0010| percent of the net drop derived from the operation of a video | 0011| gambling machine; | 0012| (b) for the calendar year beginning | 0013| January 1, 1998 and ending December 31, 1998, twenty percent of | 0014| the net drop derived from the operation of a video gambling | 0015| machine; and | 0016| (c) for the calendar year beginning | 0017| January 1, 1999 and ending December 31, 1999 and each year | 0018| thereafter, twenty-five percent of the net drop derived from the | 0019| operation of a video gambling machine. | 0020| B. The gambling tax shall be paid to the division on | 0021| or before the twenty-fifth day of the month following the month | 0022| in which the taxable event occurs. | 0023| C. Revenue received by the division from the | 0024| imposition of the gambling tax shall be deposited into the | 0025| general fund. | 0001| D. In addition to the taxes set forth herein, each | 0002| racetrack licensee shall allocate not less than the following | 0003| amounts to purses in accordance with regulations adopted by the | 0004| state racing commission: | 0005| (1) for the 1997 calendar year, fifteen percent | 0006| of the net drop derived from the operation of a video gambling | 0007| machine; | 0008| (2) for the calendar year beginning January 1, | 0009| 1998 and ending December 31, 1998, twenty percent of the net | 0010| drop derived from the operation of a video gambling machine; and | 0011| (3) for the calendar year beginning January 1, | 0012| 1999 and ending December 31, 1999 and each year thereafter, | 0013| twenty-five percent of the net drop derived from the operation | 0014| of a video gambling machine. | 0015| Section 23. [NEW MATERIAL] CRIMINAL PENALTIES.--A | 0016| person who violates a provision of the Video Gambling Act or a | 0017| regulation adopted pursuant to that act is guilty of a | 0018| misdemeanor and upon conviction shall be sentenced pursuant to | 0019| the provisions of Section 31-19-1 NMSA 1978. A person convicted | 0020| pursuant to this section is prohibited from owning, operating or | 0021| participating in the proceeds from the operation of a video | 0022| gambling machine for a period of five years after the date of | 0023| the conviction. | 0024| Section 24. [NEW MATERIAL] ENFORCEMENT.--The special | 0025| investigations division of the department of public safety, and | 0001| any other law enforcement agency entering into a joint powers | 0002| agreement with the department of public safety, has the | 0003| authority to enforce the provisions of the Video Gambling Act by | 0004| investigating all violations and by issuing administrative | 0005| citations or by initiating criminal prosecutions, or both. | 0006| Section 25. [NEW MATERIAL] FUND CREATED-- | 0007| APPROPRIATION.-- There is created in the state treasury the | 0008| "video gambling fund". All money in the fund and all interest | 0009| attributable to it is appropriated to the division for the | 0010| purpose of carrying out the provisions of the Video Gambling | 0011| Act. All license fees paid by licensees pursuant to the | 0012| provisions of the Video Gambling Act or regulations adopted | 0013| pursuant to that act shall be credited to the fund. Money in | 0014| the fund at the end of a fiscal year shall not revert to the | 0015| general fund. | 0016| Section 26. SEVERABILITY.--If any part or application of | 0017| the Video Gambling Act is held invalid, the remainder or its | 0018| application to other situations or persons shall not be | 0019| affected. | 0020| Section 27. Section 13-1-98 NMSA 1978 (being Laws 1984, | 0021| Chapter 65, Section 71, as amended) is amended to read: | 0022| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The | 0023| provisions of the Procurement Code shall not apply to: | 0024| A. procurement of items of tangible personal | 0025| property or services by a state agency or a local public body | 0001| from a state agency, a local public body, the New Mexico | 0002| lottery authority or an external procurement unit except as | 0003| otherwise provided in Sections 13-1-135 through 13-1-137 NMSA | 0004| 1978; | 0005| B. procurement of tangible personal property or | 0006| services for the governor's mansion and grounds; | 0007| C. printing and duplicating contracts involving | 0008| materials ~~[which]~~ that are required to be filed in | 0009| connection with proceedings before administrative agencies or | 0010| state or federal courts; | 0011| D. purchases of publicly provided or publicly | 0012| regulated gas, electricity, water, sewer and refuse collection | 0013| services; | 0014| E. purchases of books and periodicals from the | 0015| publishers or copyright holders thereof; | 0016| F. travel or shipping by common carrier or by | 0017| private conveyance or to meals and lodging; | 0018| G. purchase of livestock at auction rings or to the | 0019| procurement of animals to be used for research and | 0020| experimentation or exhibit; | 0021| H. contracts with businesses for public school | 0022| transportation services; | 0023| I. procurement of tangible personal property or | 0024| services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978, | 0025| by the corrections industries division of the corrections | 0001| department pursuant to regulations adopted by the corrections | 0002| ~~[industries]~~ commission, which shall be reviewed by the | 0003| purchasing division of the general services department prior to | 0004| adoption; | 0005| J. minor purchases consisting of magazine | 0006| subscriptions, conference registration fees and other similar | 0007| purchases where prepayments are required; | 0008| K. municipalities having adopted home rule charters | 0009| and having enacted their own purchasing ordinances; | 0010| L. the issuance, sale and delivery of public | 0011| securities pursuant to the applicable authorizing statute, with | 0012| the exception of bond attorneys and general financial | 0013| consultants; | 0014| M. contracts entered into by a local public body | 0015| with a private independent contractor for the operation, or | 0016| provision and operation, of a jail pursuant to Sections 33-3-26 | 0017| and | 0018| 33-3-27 NMSA 1978; | 0019| N. contracts for maintenance of grounds and | 0020| facilities at highway rest stops and other employment | 0021| opportunities, excluding those intended for the direct care and | 0022| support of persons with handicaps, entered into by state | 0023| agencies with private, nonprofit, independent contractors who | 0024| provide services to persons with handicaps; | 0025| O. contracts and expenditures for services to be | 0001| paid or compensated by money or other property transferred to | 0002| New Mexico law enforcement agencies by the United States | 0003| department of justice drug enforcement administration; | 0004| P. contracts for retirement and other benefits | 0005| pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978; and | 0006| Q. contracts with professional entertainers." | 0007| Section 28. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0008| Chapter 303, Section 19-1, as amended) is amended to read: | 0009| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0010| Chapter 30, Article 19 NMSA 1978: | 0011| A. "antique gambling device" means a gambling device | 0012| twenty-five years of age or older and substantially in original | 0013| condition that is not used for gambling or commercial gambling | 0014| or located in a gambling place; | 0015| B. "bet" means a bargain in which the parties agree | 0016| that, dependent upon chance, even though accompanied by some | 0017| skill, one stands to win or lose anything of value specified in | 0018| the agreement. A bet does not include: | 0019| (1) bona fide business transactions that are | 0020| valid under the law of contracts, including ~~[without~~ | 0021| ~~limitation]~~: | 0022| (a) contracts for the purchase or sale, | 0023| at a future date, of securities or other commodities; and | 0024| (b) agreements to compensate for loss | 0025| caused by the happening of the chance, including ~~[without~~ | 0001| ~~limitation]~~ contracts for indemnity or guaranty and life or | 0002| health and accident insurance; | 0003| (2) offers of purses, prizes or premiums to | 0004| the actual contestants in any bona fide contest for the | 0005| determination of skill, speed, strength or endurance or to the | 0006| bona fide owners of animals or vehicles entered in such | 0007| contest; | 0008| (3) a lottery as defined in this section; or | 0009| (4) betting otherwise permitted by law; | 0010| C. "lottery" means an enterprise other than the New | 0011| Mexico state lottery established and operated pursuant to the | 0012| New Mexico Lottery Act wherein, for a consideration, the | 0013| participants are given an opportunity to win a prize, the award | 0014| of which is determined by chance, even though accompanied by | 0015| some skill. As used in this subsection, "consideration" means | 0016| anything of pecuniary value required to be paid to the promoter | 0017| in order to participate in such enterprise; | 0018| D. "gambling device" means a contrivance other than | 0019| an antique gambling device that, for a consideration, affords | 0020| the player an opportunity to obtain anything of value, the | 0021| award of which is determined by chance, even though accompanied | 0022| by some skill and whether or not the prize is automatically | 0023| paid by the device, but "gambling device" does not include a | 0024| video gambling machine for which a permit has been issued | 0025| pursuant to the Video Gambling Act; and | 0001| E. "gambling place" means any building or tent, any | 0002| vehicle, whether self-propelled or not, or any room within any | 0003| of them, one of whose principal uses is: | 0004| (1) making and settling of bets; | 0005| (2) receiving, holding, recording or | 0006| forwarding bets or offers to bet; | 0007| (3) conducting lotteries; or | 0008| (4) playing gambling devices." | 0009| Section 29. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0010| Chapter 303, Section 19-6, as amended) is amended to read: | 0011| "30-19-6. ~~[PERMISSIVE LOTTERY]~~ AUTHORIZED ACTIVITIES-- | 0012| FAIRS--THEATERS--TAX-EXEMPT ORGANIZATIONS.-- | 0013| A. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0014| 19 NMSA 1978 ~~[shall be construed to apply to any]~~ prohibits | 0015| a sale or drawing of ~~[any]~~ a prize at ~~[any]~~ a fair | 0016| held in this state for the benefit of ~~[any]~~ a church, | 0017| public library or religious society ~~[situate or being]~~ | 0018| located in this state, or for charitable purposes when all | 0019| the proceeds of ~~[such]~~ the fair ~~[shall be]~~ are expended | 0020| in this state for the benefit of ~~[such]~~ the church, public | 0021| library, religious society or charitable purposes. A ~~[lottery~~ | 0022| ~~shall be operated]~~ sale or drawing conducted pursuant to this | 0023| subsection is for the benefit of the organization or | 0024| charitable purpose only ~~[when]~~ if the entire proceeds ~~[of~~ | 0025| ~~the lottery]~~ from the sale or drawing go to the organization | 0001| or charitable purpose and no part of ~~[such]~~ the proceeds go | 0002| to ~~[any]~~ an individual member or employee ~~[thereof]~~ of | 0003| the organization. | 0004| B. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0005| 19 NMSA 1978 ~~[shall be held to prohibit any]~~ prohibits a | 0006| bona fide motion picture ~~[theatre]~~ theater from offering | 0007| prizes of cash or merchandise for advertising purposes, in | 0008| connection with ~~[such]~~ the business of the theater or for | 0009| the purpose of stimulating business, whether or not ~~[any]~~ | 0010| consideration other than a monetary consideration in excess of | 0011| the regular price of admission is ~~[exacted]~~ charged for | 0012| participation in drawings for prizes. | 0013| C. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0014| 19 NMSA 1978 ~~[shall be held to apply to any]~~ prohibits a | 0015| bona fide county fair, including ~~[fairs]~~ a fair for more | 0016| than one county, ~~[which shall have]~~ that has been held | 0017| annually at the same location for at least two years ~~[and~~ | 0018| ~~which shall offer]~~ from offering prizes of livestock or | 0019| poultry in connection with ~~[such]~~ the fair ~~[when]~~ if | 0020| the proceeds of ~~[such]~~ the drawings ~~[shall be]~~ are used | 0021| for the benefit of ~~[said]~~ the fair. | 0022| ~~[D. Nothing in Article 19, Chapter 30 NMSA 1978~~ | 0023| ~~shall be construed to apply to any lottery operated by an~~ | 0024| ~~organization exempt from the state income tax pursuant to~~ | 0025| ~~Subsection C of Section 7-2-4 NMSA 1978 and not subject to the~~ | 0001| ~~provisions of Subsection A of this section; provided that:~~ | 0002| ~~(1) no more than two lotteries shall be~~ | 0003| ~~operated in any year by such an organization;~~ | 0004| ~~(2) all the gross proceeds less the reasonable~~ | 0005| ~~cost of prizes of any lottery operated by such an organization~~ | 0006| ~~shall be expended in the state for the benefit of the~~ | 0007| ~~organization or public purposes; and~~ | 0008| ~~(3) no part of the proceeds of any lottery~~ | 0009| ~~shall go to any individual member or employee of any~~ | 0010| ~~organization except as payment for the purchase of prizes at no~~ | 0011| ~~more than the reasonable retail price.]~~ | 0012| D. Nothing in Chapter 30, Article 19 NMSA 1978 | 0013| prohibits an organization that is exempt from state income tax | 0014| pursuant to Section 7-2-4 NMSA 1978 and in good standing as a | 0015| not for profit corporation as shown by the records of the state | 0016| corporation commission from conducting electronic gambling, | 0017| bingo games, raffles, lotteries or table games, including | 0018| poker, craps, blackjack, roulette and the like, at a | 0019| fundraising event if: | 0020| (1) the fundraising event is conducted no more | 0021| than four times in a calendar year by the qualifying | 0022| organization; | 0023| (2) the only persons authorized to participate | 0024| in 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 | 0002| operation or management of the event; or | 0003| (b) persons who provide goods or | 0004| services for the fundraising event for a flat fee or an hourly | 0005| fee pursuant to a written contract with the qualifying | 0006| organization; | 0007| (3) no person receives any part of the | 0008| proceeds of the fundraising event except: | 0009| (a) as payment for prizes purchased at | 0010| no more 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 | 0014| are 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 | 0017| the date, time and location of the fundraising event are | 0018| reported to the alcohol and gaming division of the regulation | 0019| and licensing 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 | 0022| after the date of the event that accurately show the gross | 0023| revenue generated by the event, details of the expenses of | 0024| conducting the event and details of how the gross revenue is | 0025| used, and the qualifying organization makes the records | 0001| available for review by the director of the alcohol and gaming | 0002| division of the regulation and licensing department or the | 0003| attorney general, or both, at their request; | 0004| (7) no more than five electronic gambling | 0005| devices are operated during the fundraising event; | 0006| (8) no person younger than the age of twenty- | 0007| one is allowed to participate in the operation or management of | 0008| the fundraising event or to play any game at the event; and | 0009| (9) the fundraising event is conducted | 0010| pursuant to regulations and a permit issued by the alcohol and | 0011| gaming division of the regulation and licensing department. | 0012| E. As used in Subsection D of this section | 0013| "electronic gambling device" means a gambling device consisting | 0014| of an electronic device that simulates the play of any game of | 0015| chance, uses microprocessors and that, by chance or through | 0016| some combination of chance and skill, the device dispenses or | 0017| the player may otherwise receive cash, coins, tokens for free | 0018| games or credits that can be redeemed for cash, coins or | 0019| tokens; "electronic gambling" means the play of an electronic | 0020| gambling device. Electronic gambling conducted pursuant to the | 0021| provisions of this section shall be conducted in accordance | 0022| with regulations adopted by the regulation and licensing | 0023| department. Those regulations may provide for minimum | 0024| standards for security, restrictions of amounts wagered, limits | 0025| on amounts paid by electronic gambling devices, recordkeeping | 0001| by the operator and sponsor of the gaming event and monitoring, | 0002| electronic or otherwise, of the electronic gambling conducted. | 0003| F. The provisions of the Bingo and Raffle Act and | 0004| the New Mexico Lottery Act do not apply to the activities | 0005| described in Subsection D of this section. | 0006| G. Activities authorized by this section may be | 0007| conducted on licensed premises, as that term is defined in | 0008| Section 60-3A-3 NMSA 1978." | 0009| Section 30. EMERGENCY.--It is necessary for the public | 0010| peace, health and safety that this act take effect immediately. | 0011| State of New Mexico | 0012| House of Representatives | 0013| | 0014| FORTY-THIRD LEGISLATURE | 0015| FIRST SESSION, 1997 | 0016| | 0017| | 0018| February 21, 1997 | 0019| | 0020| | 0021| Mr. Speaker: | 0022| | 0023| Your BUSINESS AND INDUSTRY COMMITTEE, to whom | 0024| has been referred | 0025| | 0001| HOUSE BILL 399 | 0002| | 0003| has had it under consideration and reports same with | 0004| recommendation that it DO NOT PASS, but that | 0005| | 0006| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0007| FOR HOUSE BILL 399 | 0008| | 0009| be reported WITHOUT RECOMMENDATION, and thence | 0010| referred to JUDICIARY COMMITTEE. | 0011| | 0012| Respectfully submitted, | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| Fred Luna, Chairman | 0019| | 0020| | 0021| Adopted Not Adopted | 0022| | 0023| (Chief Clerk) (Chief Clerk) | 0024| | 0025| Date | 0001| | 0002| The roll call vote was 8 For 3 Against | 0003| Yes: 8 | 0004| No: Alwin, Gubbels, Lutz | 0005| Excused: Getty, Varela | 0006| Absent: None | 0007| | 0008| G:\BILLTEXT\BILLW_97\H0399 HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0009| HOUSE BILL 399 | 0010| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0011| | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| AN ACT | 0019| RELATING TO GAMING; ENACTING THE INDIAN GAMING COMPACT; | 0020| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE | 0021| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR PUEBLO | 0022| CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING THE GAMING | 0023| CONTROL ACT TO PERMIT CERTAIN NONTRIBAL GAMING; PROVIDING | 0024| PENALTIES; IMPOSING A GAMING TAX AND FEES; AMENDING AND | 0025| ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION; | 0001| DECLARING AN EMERGENCY. | 0002| | 0003| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0004| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT ENTERED | 0005| INTO.--The Indian Gaming Compact is enacted into law and | 0006| entered into with all Indian nations, tribes and pueblos in the | 0007| state legally joining in it by enactment of a resolution | 0008| pursuant to the requirements of applicable tribal and federal | 0009| law. The compact is enacted and entered into in the form | 0010| substantially as follows: | 0011| "INDIAN GAMING COMPACT | 0012| INTRODUCTION | 0013| The State is a sovereign State of the United States of | 0014| America, having been admitted to the Union pursuant to the Act | 0015| of June 20, 1910, 36 Statutes at Large 557, Chapter 310, and is | 0016| authorized by its constitution to enter into contracts and | 0017| agreements, including this Compact, with the Tribe; | 0018| The Tribe is a sovereign federally recognized Indian tribe | 0019| and its governing body has authorized the officials of the | 0020| Tribe to enter into contracts and agreements of every | 0021| description, including this Compact, with the State; | 0022| The Congress of the United States has enacted the Indian | 0023| Gaming Regulatory Act of 1988, 25 U.S.C. 2701-2721 | 0024| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0025| Class III Gaming on Indian Lands pursuant to a tribal-state | 0001| compact entered into for that purpose; | 0002| The Tribe owns or controls Indian Lands and by Ordinance | 0003| has adopted rules and regulations governing Class III games | 0004| played and related activities at any Gaming Facility; | 0005| The State and the Tribe, in recognition of the sovereign | 0006| rights of each party and in a spirit of cooperation to promote | 0007| the best interests of the citizens of the State and the members | 0008| of the Tribe, have engaged in good faith negotiations | 0009| recognizing and respecting the interests of each party and have | 0010| agreed to this Compact. | 0011| NOW, THEREFORE, the State and the Tribe agree as follows: | 0012| TERMS AND CONDITIONS | 0013| SECTION 1. Purpose and Objectives. | 0014| The purpose and objectives of the State and the Tribe in | 0015| making this Compact are as follows: | 0016| A. To evidence the good will and cooperative spirit between | 0017| the State and the Tribe; | 0018| B. To continue the development of an effective government- | 0019| to-government relationship between the State and the Tribe; | 0020| C. To provide for the regulation of Class III Gaming on | 0021| Indian Lands as required by the IGRA; | 0022| D. To fulfill the purpose and intent of the IGRA by | 0023| providing for tribal gaming as a means of generating tribal | 0024| revenues, thereby promoting tribal economic development, tribal | 0025| self-sufficiency, and strong tribal government; | 0001| E. To provide revenues to fund tribal government operations | 0002| or programs, to provide for the general welfare of the tribal | 0003| members and for other purposes allowed under the IGRA; | 0004| F. To provide for the effective regulation of Class III | 0005| Gaming in which the Tribe shall have the sole proprietary interest | 0006| and be the primary beneficiary; and | 0007| G. To address the State's interest in the establishment, by | 0008| the Tribe, of rules and procedures for ensuring that Class III | 0009| Gaming is conducted fairly and honestly by the owners, operators, | 0010| employees and patrons of any Class III Gaming enterprise on Indian | 0011| Lands. | 0012| SECTION 2. Definitions. | 0013| For purposes of this Compact, the following definitions | 0014| pertain: | 0015| A. "Class III Gaming" means all forms of gaming as defined | 0016| in 25 U.S.C. 2703(8), and 25 C.F.R. 502.4. | 0017| B. "Indian Lands" means: | 0018| 1. all lands within the exterior boundaries of the | 0019| Tribe's reservation and its confirmed grants from prior | 0020| sovereigns; or | 0021| 2. any other lands title to which is either held in | 0022| trust by the United States for the exclusive benefit of the Tribe | 0023| or a member thereof or is held by the Tribe or a member thereof | 0024| subject to restrictions against alienation imposed by the United | 0025| States, and over which the Tribe exercises jurisdiction and | 0001| governmental authority. | 0002| C. "Tribal Gaming Agency" means the tribal governmental | 0003| agency which will be identified to the State Gaming Representative | 0004| as the agency responsible for actions of the Tribe set out in the | 0005| Compact. It will be the single contact with the State and may be | 0006| relied upon as such by the State. | 0007| D. "State Gaming Representative" means that person | 0008| designated by the Governor of the State, who will be responsible | 0009| for actions of the State set out in the Compact. The | 0010| representative will be the single contact with the Tribe and may | 0011| be relied upon as such by the Tribe. If the State Legislature | 0012| enacts legislation to establish an agency of the State, such | 0013| agency may assume the duties of the State Gaming Representative. | 0014| E. "Compact" means this compact between the State and the | 0015| Tribe. | 0016| F. "Gaming Facility" means the buildings or structures in | 0017| which Class III Gaming is conducted on Indian Lands. | 0018| G. "Management Contract" means a contract within the | 0019| meaning of 25 U.S.C. 2710(d)(9) and 2711. | 0020| H. "Management Contractor" means any person or entity that | 0021| has entered into a Management Contract with the Tribe. | 0022| I. "Ordinance" means the gaming ordinance and any | 0023| amendments thereto adopted by the Tribal Council of the Tribe. | 0024| J. "Tribe" means any Indian Tribe or Pueblo located within | 0025| the State of New Mexico entering into this Compact as provided for | 0001| herein. | 0002| K. "State" means the State of New Mexico. | 0003| SECTION 3. Authorized Class III Gaming. | 0004| The Tribe may conduct, only on Indian Lands, subject to all | 0005| of the terms and conditions of this Compact, any or all forms of | 0006| casino-style gaming, including but not limited to slot machines | 0007| and other forms of electronic gaming devices; all forms of poker, | 0008| blackjack and other casino-style card games, both banked and | 0009| unbanked; roulette; craps; keno; wheel of fortune; pai gow; and | 0010| other games played in casino settings, and any form of a lottery. | 0011| Subject to the foregoing, the Tribe shall establish, in its | 0012| discretion, by tribal law, such limitations as it deems | 0013| appropriate on the number and type of Class III Gaming conducted, | 0014| the location of Class III Gaming on Indian Lands, the hours and | 0015| days of operation, and betting and pot limits, applicable to such | 0016| gaming. | 0017| SECTION 4. Regulation of Class III Gaming. | 0018| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0019| assure that the Tribe will: | 0020| 1. operate all Class III Gaming pursuant to this | 0021| Compact, tribal law, the IGRA and other applicable | 0022| Federal law; | 0023| 2. provide for the physical safety of patrons in any | 0024| Gaming Facility; | 0025| 3. provide for the physical safety of personnel | 0001| employed by the gaming enterprise; | 0002| 4. provide for the physical safeguarding of assets | 0003| transported to and from the Gaming Facility and | 0004| cashier's cage department; | 0005| 5. provide for the protection of the property of the | 0006| patrons and the gaming enterprise from illegal | 0007| activity; | 0008| 6. participate in licensing of primary management | 0009| officials and key employees of a Class III Gaming | 0010| enterprise; | 0011| 7. detain persons who may be involved in illegal acts | 0012| for the purpose of notifying law enforcement | 0013| authorities; and | 0014| 8. record and investigate any and all unusual | 0015| occurrences related to Class III Gaming within the | 0016| Gaming Facility. | 0017| B. Regulations. Without affecting the generality of the | 0018| foregoing, the Tribe shall adopt laws: | 0019| 1. prohibiting participation in any Class III Gaming | 0020| by any person under the age of twenty-one (21); | 0021| 2. prohibiting the employment of any person as a key | 0022| employee or primary management official in a | 0023| position that is directly involved in Class III | 0024| Gaming activities who is under the age of twenty- | 0025| one (21) or who has not been licensed in accordance | 0001| with Section 5, herein; | 0002| 3. providing to all employees of a gaming establisment | 0003| employment benefits, including, at a minimum, sick | 0004| leave, life insurnce, paid annual leave, medical | 0005| and dental insurance as well as providing | 0006| unemployment insurance and workers' compensation | 0007| insurance through participation in the state | 0008| programs offering those benefits; | 0009| 4. providing a grievance process for an employee in | 0010| cases of disciplinary or punitive action taken | 0011| against an employee that includes a process for | 0012| appeals to persons of greater authority than the | 0013| immediate supervisor of the employee; | 0014| 5. prohibiting a gaming enterprise from cashing any | 0015| paycheck or any type of government assistance | 0016| check, including Social Security, AFDC, pension and | 0017| other such checks, for any patron; | 0018| 6. requiring that, if feasible, automatic teller | 0019| machines on Gaming Facility premises be programmed | 0020| so that the machines will not accept cards issued | 0021| by the State to AFDC recipients for access to AFDC | 0022| benefits; | 0023| 7. providing that each electronic or electromechanical | 0024| gaming device in use at the Gaming Facility must | 0025| pay out a mathematically demonstrable percentage of | 0001| all amounts wagered, which must not be less than | 0002| seventy-five percent (75%); | 0003| 8. providing that no later than July 1, 1997, all | 0004| gaming machines on the premises of the Gaming | 0005| Facility will be connected to a central | 0006| computerized reporting and auditing system on the | 0007| Gaming Facility premises, which shall collect on a | 0008| continual basis the activity of each gaming machine | 0009| in use at the Gaming Facility, and that such data | 0010| shall be electronically accessible to the State | 0011| Gaming Representative upon entry of appropriate | 0012| security codes; | 0013| 9. enacting provisions that are at least as stringent | 0014| as the provisions of Section 41-11-1 NMSA 1978 that | 0015| provide that the gaming establishment shall be | 0016| liable if one of its employees sells or serves | 0017| alcohol to a person who is intoxicated and who is | 0018| the cause of injury, death or property damage while | 0019| intoxicated; | 0020| 10. prohibiting alcoholic beverages from being sold, | 0021| served, delivered or consumed in that part of a | 0022| Gaming Facility where gaming is allowed; | 0023| 11. requiring the gaming enterprise to spend an amount | 0024| that is no less than one-quarter of one percent | 0025| (.25%) of its net win as that term is defined | 0001| herein annually to fund or support programs for the | 0002| treatment and assistance of compulsive gamblers and | 0003| for the prevention of compulsive gambling; and | 0004| 12. governing any Management Contract regarding its | 0005| Class III Gaming activity such that it conforms to | 0006| the requirements of tribal law and the IGRA and the | 0007| regulations issued thereunder. | 0008| The Tribal Gaming Agency will provide true copies of all | 0009| tribal laws and regulations affecting Class III Gaming conducted | 0010| under the provisions of this Compact to the State Gaming | 0011| Representative within thirty (30) days after the effective date of | 0012| this Compact, and will provide true copies of any amendments | 0013| thereto or additional laws or regulations affecting gaming within | 0014| thirty (30) days after their enactment (or approval, if any). | 0015| C. Audit and Financial Statements. The Tribal Gaming | 0016| Agency shall require all books and records relating to Class III | 0017| Gaming to be maintained in accordance with generally accepted | 0018| accounting principles. All such books and records shall be | 0019| retained for a period of at least six (6) years from the date of | 0020| creation. Not less than annually, the Tribal Gaming Agency shall | 0021| require an audit and a certified financial statement covering all | 0022| financial activities of the gaming enterprise by an independent | 0023| certified public accountant licensed by the State. The financial | 0024| statement shall be prepared in accordance with generally accepted | 0025| accounting principles and shall be submitted to the Tribal Gaming | 0001| Agency within one hundred twenty (120) days of the close of the | 0002| Tribe's fiscal year. The Tribe will maintain the following | 0003| records for not less than six (6) years: | 0004| 1. revenues, expenses, assets, liabilities and equity | 0005| for each Gaming Facility; | 0006| 2. daily cash transactions for each Class III Gaming | 0007| activity at each Gaming Facility, including but not | 0008| limited to transactions relating to each gaming | 0009| table bank, game drop box and gaming room bank; | 0010| 3. all markers, IOU's, returned checks, hold check or | 0011| other similar credit instruments; | 0012| 4. individual and statistical game records (except | 0013| card games) to reflect statistical drop and | 0014| statistical win; for electronic, computer, or other | 0015| technologically assisted games, analytic reports | 0016| which show the total amount of cash wagered and the | 0017| total amount of prizes won; | 0018| 5. contracts, correspondence and other transaction | 0019| documents relating to all vendors and contractors; | 0020| 6. records of all tribal gaming enforcement | 0021| activities; | 0022| 7. audits prepared by or on behalf of the Tribe; and | 0023| 8. personnel information on all Class III Gaming | 0024| employees or agents, including rotation sheets, | 0025| hours worked, employee profiles and background | 0001| checks. | 0002| D. Violations. The agents of the Tribal Gaming Agency | 0003| shall have unrestricted access to the Gaming Facility during all | 0004| hours of Class III Gaming activity, and shall have immediate and | 0005| unrestricted access to any and all areas of the Gaming Facility | 0006| for the purpose of ensuring compliance with the provisions of this | 0007| Compact and the Ordinance. The agents shall report immediately to | 0008| the Tribal Gaming Agency any suspected violation of this Compact, | 0009| the Ordinance, or regulations of the Tribal Gaming Agency by the | 0010| gaming enterprise, Management Contractor, or any person, whether | 0011| or not associated with Class III Gaming. | 0012| E. State Gaming Representative. | 0013| 1. Upon written request by the State to the Tribe, the | 0014| Tribe will provide information on primary | 0015| management officials, key employees and suppliers, | 0016| sufficient to allow the State to conduct its own | 0017| background investigations, as it may deem | 0018| necessary, so that it may make an independent | 0019| determination as to the suitability of such | 0020| individuals, consistent with the standards set | 0021| forth in Section 5, hereinafter. The Tribe shall | 0022| consider any information or recommendations | 0023| provided to it by the State as to any such person | 0024| or entity, but the Tribe shall have the final say | 0025| with respect to the hiring or licensing of any such | 0001| person or entity. | 0002| 2. Notwithstanding that the Tribe has the primary | 0003| responsibility to administer and enforce the | 0004| regulatory requirements, the State Gaming | 0005| Representative authorized in writing by the | 0006| Governor of the State or by legislation duly | 0007| enacted by the State Legislature shall have the | 0008| right to inspect a Gaming Facility, Class III | 0009| Gaming activity, and all records relating to Class | 0010| III Gaming (including those set forth in Section 5, | 0011| hereinafter) of the Tribe, subject to the following | 0012| conditions: | 0013| (a) with respect to public areas of a Gaming | 0014| Facility, at any time without prior notice | 0015| during normal business hours; | 0016| (b) with respect to private areas of a Gaming | 0017| Facility not accessible to the public, at any | 0018| time during normal Gaming Facility business | 0019| hours, immediately after notifying the gaming | 0020| enterprise management of his or her presence on | 0021| the premises and presenting proper | 0022| identification, and requesting access to such | 0023| non-public areas of the Gaming Facility; | 0024| (c) with respect to inspection and copying of all | 0025| management records relating to Class III Gaming, | 0001| with forty-eight (48) hours prior written | 0002| notice, not including weekends. The reasonable | 0003| costs of copying will be borne by the State; and | 0004| (d) whenever the State Gaming Representative, or his | 0005| designee, enters the premises of the Gaming | 0006| Facility for any such inspection, such | 0007| Representative, or designee, shall identify | 0008| himself to security or supervisory personnel of | 0009| the Gaming Facility. | 0010| 3. The financial information, proprietary ideas, plans, | 0011| methods, data, development inventions or other | 0012| proprietary information regarding the gaming | 0013| enterprise of the Tribe, Class III Gaming conducted | 0014| by the Tribe, or the operation thereof, which is | 0015| provided to the State by the Tribe shall not be | 0016| deemed public records as a matter of state law, and | 0017| shall not be disclosed to any member of the public, | 0018| without the prior written approval of a duly | 0019| authorized representative of the Tribe. These | 0020| prohibitions shall not be construed to prohibit: | 0021| (a) the furnishing of any information to a law | 0022| enforcement or regulatory agency of the Federal | 0023| Government; | 0024| (b) the State from making known the names of | 0025| persons, firms, or corporations conducting Class | 0001| III Gaming pursuant to the terms of this | 0002| Compact, locations at which such activities are | 0003| conducted, or the dates on which such activities | 0004| are conducted; | 0005| (c) publishing the terms of this Compact; | 0006| (d) disclosing information as necessary to audit, | 0007| investigate, prosecute or arbitrate violations | 0008| of this Compact or other applicable laws or to | 0009| defend suits against the State; and | 0010| (e) complying with subpoenas or court orders issued | 0011| by courts of competent jurisdiction. | 0012| 4. To the fullest extent allowed by State law, the Tribe | 0013| shall have the right to inspect State records | 0014| concerning all Class III Gaming conducted by the | 0015| Tribe; the Tribe shall have the right to copy such | 0016| State records, with the Tribe bearing the reasonable | 0017| cost of copying. | 0018| 5. For every year or part thereof in which the Tribe is | 0019| actually engaged in Class III Gaming hereunder, the | 0020| Tribe shall reimburse the State for the actual costs | 0021| the State incurs in carrying out any functions | 0022| authorized by the terms of this Compact, in an amount | 0023| not to exceed twenty-five thousand dollars ($25,000) | 0024| per year. All calculations of amounts due shall be | 0025| based upon a fiscal year beginning October 1, and | 0001| ending September 30, unless the parties select a | 0002| different fiscal year. Payments due the State shall | 0003| be made no later than sixty (60) days after the | 0004| beginning of each fiscal year. Payments due the | 0005| State during any partial fiscal year this Compact is | 0006| in effect shall be adjusted to reflect only that | 0007| portion of the fiscal year. Within sixty (60) days | 0008| after each fiscal year in which this Compact is in | 0009| effect, the State shall submit to the Tribe an | 0010| accounting of actual costs incurred in carrying out | 0011| any functions authorized by the terms of this | 0012| Compact. Any amount of said twenty-five thousand | 0013| dollars ($25,000) not expended by the State on said | 0014| actual costs shall be returned to the Tribe by the | 0015| State within sixty (60) days after the fiscal year or | 0016| treated as a prepayment of the Tribe's obligation | 0017| during the subsequent fiscal year. | 0018| 6. In the event the State believes that the Tribe is not | 0019| administering and enforcing the regulatory | 0020| requirements set forth herein, it may invoke the | 0021| procedures set forth in Section 7 of this Compact. | 0022| F. The Tribe shall comply with all applicable provisions of | 0023| the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 U.S.C. | 0024| 5311-5314, and all reporting requirements of the Internal | 0025| Revenue Service. | 0001| SECTION 5. Licensing Requirements. | 0002| A. License Required. The Gaming Facility operator, (but | 0003| not including the Tribe) including its principals, primary | 0004| management officials, and key employees, the Management Contractor | 0005| and its principals, primary management officials, and key | 0006| employees (if the Tribe hires a Management Contractor); any | 0007| person, corporation, or other entity that has supplied or proposes | 0008| to supply any gaming device to the Tribe or the Management | 0009| Contractor; and any person, corporation or other entity providing | 0010| gaming services within or without a Gaming Facility, shall apply | 0011| for and receive a license from the Tribal Gaming Agency before | 0012| participating in any way in the operation or conduct of any Class | 0013| III Gaming on Indian Lands. | 0014| B. License Application. Each applicant for a license shall | 0015| file with the Tribal Gaming Agency a written application in the | 0016| form prescribed by the Tribal Gaming Agency, along with the | 0017| applicant's fingerprint card, current photograph and the fee | 0018| required by the Tribal Gaming Agency. | 0019| 1. The following Notice ("Privacy Act Notice") shall be | 0020| placed on the application form for a principal, key | 0021| employee or a primary management official before that | 0022| form is filled out by an applicant: | 0023| "In compliance with the | 0024| Privacy Act of 1974, the | 0025| following information is | 0001| provided: Solicitation of the | 0002| information on this form is | 0003| authorized by 25 U.S.C. | 0004| 2701-2721. The purpose of | 0005| the requested information is | 0006| to determine the eligibility | 0007| of individuals to be employed | 0008| in a gaming enterprise. The | 0009| information will be used by | 0010| members and staff of the | 0011| Tribal Gaming Agency and the | 0012| National Indian Gaming | 0013| Commission who have need for | 0014| the information in the | 0015| performance of their official | 0016| duties. The information may | 0017| be disclosed to appropriate | 0018| federal, tribal, state, local | 0019| or foreign law enforcement and | 0020| regulatory agencies when | 0021| relevant to civil, criminal or | 0022| regulatory investigations or | 0023| prosecutions or when, pursuant | 0024| to a requirement by a Tribe, | 0025| or the National Indian Gaming | 0001| Commission, the information is | 0002| relevant to the hiring or | 0003| firing of an employee, the | 0004| issuance or revocation of a | 0005| gaming license or | 0006| investigations of activities | 0007| while associated with a Tribe | 0008| or a gaming enterprise. | 0009| Failure to consent to the | 0010| disclosures indicated in this | 0011| Notice will result in a Tribe | 0012| being unable to hire you in a | 0013| primary management official or | 0014| key employee position with a | 0015| tribal gaming enterprise. | 0016| The disclosure of your Social Security | 0017| Number (SSN) is voluntary. However, | 0018| failure to supply an SSN may result in | 0019| errors in processing your application." | 0020| 2. Existing principals, key employees and primary | 0021| management officials shall be notified, in writing, | 0022| that they shall either: | 0023| (a) complete a new application form that contains a | 0024| Privacy Act Notice; or | 0025| (b) sign a statement that contains the Privacy Act | 0001| Notice and consent to the routine uses described | 0002| in that Notice. | 0003| 3. The following Notice ("False Statement Notice") shall | 0004| be placed on the application form for a principal, | 0005| key employee or a primary management official before | 0006| that form is filled out by an applicant: | 0007| "A false statement on any part of your | 0008| application may be grounds for not hiring you or | 0009| for firing you after you begin work. Also, you | 0010| may be punished by fine or imprisonment. See 18 | 0011| U.S.C. 1001.". | 0012| 4. The Tribal Gaming Agency shall notify, in writing, | 0013| existing principals, key employees and primary | 0014| management officials that they shall either: | 0015| (a) complete a new application form that contains a | 0016| False Statement Notice; or | 0017| (b) sign a statement that contains the False | 0018| Statement Notice. | 0019| 5. The Tribal Gaming Agency shall request from each | 0020| applicant, and from each principal, primary | 0021| management official and key employee of each | 0022| applicant, all of the following information: | 0023| (a) full name, other names used (oral or written), | 0024| Social Security Number(s), birth date, place of | 0025| birth, citizenship, gender and all languages | 0001| spoken or written; | 0002| (b) currently, and for the previous ten (10) years, | 0003| business and employment positions held, | 0004| ownership interests in those businesses, | 0005| business and residence addresses and driver's | 0006| license numbers; provided, that any applicant | 0007| who is a principal, primary management official, | 0008| key employee, Management Contractor, | 0009| manufacturer or supplier of gaming devices, | 0010| and/or a person providing gaming services, must | 0011| provide such information currently, and from the | 0012| age of eighteen (18); | 0013| (c) the names and current addresses of at least | 0014| three (3) personal references, including one (1) | 0015| personal reference who was acquainted with the | 0016| applicant during each period of residence listed | 0017| in Paragraph B.5.(b) of this section; | 0018| (d) current business and residence telephone | 0019| numbers; | 0020| (e) a description of any existing and previous | 0021| business relationships with a Tribe, including | 0022| ownership interests in those businesses, and a | 0023| description of any potential or actual conflict | 0024| of interests between such businesses and a | 0025| Tribe; | 0001| (f) a description of any existing and previous | 0002| business relationships in the gaming industry, | 0003| including, but not limited to, ownership | 0004| interests in those businesses; | 0005| (g) the name and address of any licensing or | 0006| regulatory agency with which the applicant has | 0007| filed an application for a license or permit | 0008| related to gaming, whether or not such license | 0009| or permit was granted; | 0010| (h) for each felony for which there is an ongoing | 0011| prosecution or a conviction, the charge, the | 0012| date of the charge, the name and address of the | 0013| court involved and the disposition, if any; | 0014| (i) for each misdemeanor for which there is an | 0015| ongoing prosecution or conviction (excluding | 0016| minor traffic violations), the charge, the date | 0017| of the charge, the name and address of the court | 0018| involved, and the disposition, if any; | 0019| (j) for each criminal charge (excluding minor | 0020| traffic charges), whether or not there is a | 0021| conviction, if such criminal charge is not | 0022| otherwise listed pursuant to Paragraph B.5.(h) | 0023| or B.5.(i) of this Section, the criminal charge, | 0024| the date of the charge, the name and address of | 0025| the court involved and the disposition, if any; | 0001| (k) the name and address of any licensing or | 0002| regulatory agency with which the person has | 0003| filed an application for an occupational license | 0004| or permit, as an applicant, principal, primary | 0005| management official or key employee, and whether | 0006| or not such license or permit was granted; | 0007| (l) a current photograph; | 0008| (m) fingerprints, which shall be taken by officers | 0009| of the tribal police department. Pursuant to a | 0010| Memorandum of Understanding between the Tribe | 0011| and the National Indian Gaming Commission | 0012| ("Commission"), tribal police officers shall | 0013| forward the fingerprint cards directly to the | 0014| Commission; | 0015| (n) the fee required by the Tribal Gaming Agency; | 0016| and | 0017| (o) any other information the Tribal Gaming Agency | 0018| deems relevant. | 0019| C. Background Investigations. | 0020| 1. Upon receipt of a completed application and required | 0021| fee for licensing, the Tribal Gaming Agency shall | 0022| conduct or cause to be conducted a background | 0023| investigation to ensure that the applicant is | 0024| qualified for licensing. | 0025| 2. Background checks of applicants will be performed | 0001| pursuant to the following procedures: | 0002| (a) The Tribal Gaming Agency will provide | 0003| applications to potential applicants upon | 0004| request and shall collect and maintain the | 0005| applications. | 0006| (b) Pursuant to a Memorandum of Understanding | 0007| between the Tribe and the Commission, tribal | 0008| police officers will collect fingerprints from | 0009| all applicants and forward the fingerprint cards | 0010| directly to the Commission. The Commission will | 0011| obtain a criminal history record from the | 0012| Federal Bureau of Investigation on each | 0013| applicant and forward such information to the | 0014| Tribal Gaming Agency. | 0015| (c) The Tribal Gaming Agency shall investigate the | 0016| information provided in the applications. This | 0017| investigation shall include: | 0018| (1) contacting persons or entities identified | 0019| in the application and verifying by written | 0020| or oral communication that the information | 0021| contained in the application is accurate; | 0022| (2) interviewing a sufficient number of | 0023| knowledgeable people, such as former | 0024| employers, partners, business associates, | 0025| and others referred to in the application, | 0001| to provide a basis for the Tribal Gaming | 0002| Agency to make a determination concerning | 0003| whether the applicant meets applicable | 0004| eligibility requirements; | 0005| (3) reviewing relevant financial records of the | 0006| applicant for the three (3) years preceding | 0007| the application; and | 0008| (4) contacting any state, federal or other | 0009| government agency that is referred to in | 0010| the application. | 0011| (d) The Tribal Gaming Agency shall document any | 0012| information it obtains that calls into question | 0013| whether the applicant would meet the eligibility | 0014| requirements under the Ordinance. The Tribal | 0015| Gaming Agency shall then document in detail the | 0016| disposition of these problem areas, indicating | 0017| the follow-up investigations performed on the | 0018| problem areas and the result of such | 0019| investigations. | 0020| (e) The Tribal Gaming Agency will review the results | 0021| of the investigation. This review will include | 0022| a determination as to the scope of the | 0023| investigation and whether sufficient information | 0024| was obtained and verified. If such information | 0025| is found not sufficient, the Tribal Gaming | 0001| Agency will perform additional investigations. | 0002| (f) Once the investigation is complete, the Tribal | 0003| Gaming Agency will decide whether the applicant | 0004| meets the eligibility criteria under the | 0005| Ordinance. | 0006| 3. In conducting a background investigation, the Tribal | 0007| Gaming Agency and its agents shall keep confidential | 0008| the identity of each person interviewed in the course | 0009| of the investigation. | 0010| 4. Within twenty (20) days of the receipt of a completed | 0011| application for licensing, and upon request of an | 0012| applicant, the Tribal Gaming Agency may issue a | 0013| temporary license to the applicant, unless the | 0014| background investigation undertaken discloses that | 0015| the applicant has a criminal history, or unless other | 0016| grounds sufficient to disqualify the applicant are | 0017| apparent on the face of the application. The | 0018| temporary license shall become void and be of no | 0019| effect upon either: | 0020| (a) the issuance of the license; | 0021| (b) the issuance of a notice of denial; or | 0022| (c) ninety (90) days after the temporary license is | 0023| issued, whichever occurs first. | 0024| 5. The Tribal Gaming Agency shall review a person's | 0025| prior activities, criminal record, if any, and | 0001| reputation, habits and associations to make a finding | 0002| concerning the eligibility or suitability of an | 0003| applicant, or a principal, key employee or primary | 0004| management official of an applicant, for employment | 0005| or involvement in a gaming enterprise. After such | 0006| consultation, the Tribal Gaming Agency shall either | 0007| issue a license or deny the application. If the | 0008| Tribal Gaming Agency determines that employment or | 0009| involvement of the applicant poses a threat to the | 0010| public interest or to the effective regulation of | 0011| Class III Gaming or creates or enhances dangers of | 0012| unsuitable, unfair or illegal practices, methods or | 0013| activities in the conduct of Class III Gaming, the | 0014| Tribal Gaming Agency shall deny the application. | 0015| 6. The Tribal Gaming Agency shall retain the right to | 0016| conduct additional background investigations of any | 0017| person required to be licensed at any time while the | 0018| license is valid. | 0019| D. Procedure for Forwarding Applications and Reports. | 0020| Procedures for forwarding applications and investigative reports | 0021| to the Commission and State Gaming Representative. | 0022| 1. When a key employee or primary management official | 0023| begins work at a gaming enterprise authorized by this | 0024| Compact, the Tribal Gaming Agency shall forward to | 0025| the Commission and the State Gaming Representative a | 0001| completed application for employment. | 0002| 2. The Tribal Gaming Agency shall forward the report | 0003| referred to in Paragraph D.4. of this section to the | 0004| Commission and the State Gaming Representative within | 0005| sixty (60) days after an employee begins work, or | 0006| within sixty (60) days of the approval of this | 0007| Compact by the Secretary of the Interior. | 0008| 3. A key employee or primary management official who | 0009| does not have a license shall not be employed after | 0010| ninety (90) days. | 0011| 4. The Tribal Gaming Agency shall prepare and forward to | 0012| the Commission and the State Gaming Representative a | 0013| report on each background investigation | 0014| ("Investigative Report"). An Investigative Report | 0015| shall include all of the following: | 0016| (a) steps taken in conducting the background | 0017| investigation; | 0018| (b) results obtained; | 0019| (c) conclusions reached; and | 0020| (d) the basis for those conclusions. | 0021| 5. The Tribal Gaming Agency shall submit with the | 0022| Investigative Report a copy of the eligibility | 0023| determination made under Paragraph C.5. of this | 0024| section. | 0025| 6. If a license is not issued to an applicant, the | 0001| Tribal Gaming Agency shall notify the Commission and | 0002| the State Gaming Representative. | 0003| 7. With respect to principals, key employees and primary | 0004| management officials, the Tribal Gaming Agency shall | 0005| retain applications for employment and Investigative | 0006| Reports (if any) for no less than three (3) years | 0007| from the date of termination of employment. | 0008| E. Granting a Gaming License. | 0009| 1. If within thirty (30) days after it receives an | 0010| Investigative Report, neither the Commission nor the | 0011| State Gaming Representative has notified the Tribal | 0012| Gaming Agency that it has an objection to the | 0013| issuance of a license pursuant to a license | 0014| application filed by a principal, key employee or | 0015| primary management official, the Tribal Gaming Agency | 0016| may issue a license to such applicant. | 0017| 2. The Tribal Gaming Agency shall respond to any request | 0018| for additional information from the Commission or the | 0019| State Gaming Representative concerning a principal, | 0020| key employee or primary management official who is | 0021| the subject of an Investigative Report. Such a | 0022| request shall suspend the thirty-day (30-day) period | 0023| under Paragraph E.1. of this section until the | 0024| Commission or the State Gaming Representative | 0025| receives the additional information. | 0001| 3. If, within the thirty-day (30-day) period described | 0002| above, the Commission or the State Gaming | 0003| Representative provides the Tribal Gaming Agency with | 0004| a statement itemizing objections to the issuance of a | 0005| license to a principal, key employee or primary | 0006| management official for whom the Tribal Gaming Agency | 0007| has provided an application and Investigative Report, | 0008| the Tribal Gaming Agency shall reconsider the | 0009| application, taking into account the objections | 0010| itemized by the Commission and/or the State Gaming | 0011| Representative, and make a final decision whether to | 0012| issue a license to such applicant. | 0013| F. Management Contract. | 0014| 1. If the Tribe chooses to enter into a Management | 0015| Contract, the Tribal Gaming Agency shall require that | 0016| all principals, primary management officials and key | 0017| employees of the Management Contractor be licensed. | 0018| 2. The Tribe may enter into a Management Contract only | 0019| if the Management Contract: | 0020| (a) provides that all Class III Gaming covered by | 0021| the Management Contract will be conducted in | 0022| accordance with the IGRA, the Ordinance and this | 0023| Compact; | 0024| (b) enumerates the responsibilities of each of the | 0025| parties for each identifiable function, | 0001| including: | 0002| (1) maintaining and improving the Gaming | 0003| Facility; | 0004| (2) providing operating capital; | 0005| (3) establishing operating days and hours; | 0006| (4) hiring, firing, training and promoting | 0007| employees; | 0008| (5) maintaining the gaming enterprise's books | 0009| and records; | 0010| (6) preparing the gaming enterprise's financial | 0011| statements and reports; | 0012| (7) paying for the services of the independent | 0013| auditor engaged pursuant to 25 C.F.R. | 0014| 571.12; | 0015| (8) hiring and supervising security personnel; | 0016| (9) providing fire protection services; | 0017| (10) setting an advertising budget and placing | 0018| advertising; | 0019| (11) paying bills and expenses; | 0020| (12) establishing and administering employment | 0021| practices; | 0022| (13) obtaining and maintaining insurance | 0023| coverage, including coverage of public | 0024| liability and property loss or damage; | 0025| (14) complying with all applicable provisions of | 0001| the Internal Revenue Code of 1986, as | 0002| amended; | 0003| (15) paying the cost of public safety services; | 0004| and | 0005| (16) if applicable, supplying the Commission | 0006| with all information necessary for the | 0007| Commission to comply with the National | 0008| Environmental Policy Act of 1969. | 0009| (c) provides for the establishment and maintenance | 0010| of satisfactory accounting systems and | 0011| procedures that shall, at a minimum: | 0012| (1) include an adequate system of internal | 0013| controls; | 0014| (2) permit the preparation of financial | 0015| statements in accordance with generally | 0016| accepted accounting principles; | 0017| (3) be susceptible to audit; | 0018| (4) permit the calculation and payment of the | 0019| Management Contractor's fee; and | 0020| (5) provide for the allocation of operating | 0021| expenses or overhead expenses among the | 0022| Tribe, the Management Contractor and any | 0023| other user of a shared Gaming Facility and | 0024| services; | 0025| (d) requires the Management Contractor to provide | 0001| the Tribe, not less frequently than monthly, | 0002| verifiable financial reports or all information | 0003| necessary to prepare such reports; | 0004| (e) requires the Management Contractor to provide | 0005| immediate access to the Gaming Facility, | 0006| including its books and records, by appropriate | 0007| officials of the Tribe, who shall have: | 0008| (1) the right to verify the daily gross | 0009| revenues and income from the gaming | 0010| enterprise; and | 0011| (2) access to any other gaming-related | 0012| information the Tribe deems appropriate; | 0013| (f) provides for a minimum guaranteed monthly | 0014| payment to the Tribe in a sum certain that has | 0015| preference over the retirement of development | 0016| and construction costs; | 0017| (g) provides an agreed upon maximum dollar amount | 0018| for the recoupment of development and | 0019| construction costs; | 0020| (h) provides for a term not to exceed the period | 0021| allowed by the IGRA; | 0022| (i) details the method of compensating and | 0023| reimbursing the Management Contractor. If a | 0024| Management Contract provides for a percentage | 0025| fee, such fee shall be either: | 0001| (1) not more than thirty percent (30%) of the | 0002| net revenues of the gaming enterprise if | 0003| the Chairman of the Commission determines | 0004| that such percentage is reasonable | 0005| considering the circumstances; or | 0006| (2) not more than forty percent (40%) of the | 0007| net revenues if the Chairman of the | 0008| Commission is satisfied that the capital | 0009| investment required and income projections | 0010| for the gaming enterprise require the | 0011| additional fee; | 0012| (j) provides the grounds and mechanisms for | 0013| modifying or terminating the Management | 0014| Contract; | 0015| (k) contains a mechanism to resolve disputes | 0016| between: | 0017| (1) the Management Contractor and customers, | 0018| consistent with the procedures in the | 0019| Ordinance; | 0020| (2) the Management Contractor and the Tribe; | 0021| and | 0022| (3) the Management Contractor and the gaming | 0023| enterprise employees; | 0024| (l) indicates whether and to what extent contract | 0025| assignments and subcontracting are permissible; | 0001| (m) indicates whether and to what extent changes in | 0002| the ownership interest in the Management | 0003| Contract require advance approval by the Tribe; | 0004| and | 0005| (n) states that the Management Contract shall not be | 0006| effective unless and until it is approved by the | 0007| Chairman of the Commission, date of signature of | 0008| the parties notwithstanding. | 0009| 3. The Tribe shall not enter into any Management | 0010| Contract if the Tribal Gaming Agency determines that | 0011| the Management Contractor or any principal, primary | 0012| management official or key employee of the Management | 0013| Contractor is not licensed or is ineligible to be | 0014| licensed. | 0015| G. Confidentiality of Records. Any and all background | 0016| investigative reports on employees or contractors, supporting | 0017| documents acquired or generated in connection therewith, and any | 0018| other investigative reports or documents acquired or generated in | 0019| the course of investigations performed by the Tribe or the Tribal | 0020| Gaming Agency, that are provided to the State Gaming | 0021| Representative or any other agency or official of the State by the | 0022| Tribal Gaming Agency or the Tribe pursuant to the provisions of | 0023| this Compact, shall not be deemed public records of the State and | 0024| shall not be disclosed to any member of the public without the | 0025| prior express written authorization of an authorized | 0001| representative of the Tribe; provided, that nothing herein shall | 0002| preclude any State agency or official from providing information | 0003| to a federal agency or official having responsibility relative to | 0004| Indian Gaming or from compliance with any valid order of a court | 0005| having jurisdiction. | 0006| SECTION 6. Providers of Class III Gaming Equipment or Devices or | 0007| Supplies. | 0008| A. Within thirty (30) days after the effective date of this | 0009| Compact, if it has not already done so, the Tribal Gaming Agency | 0010| will adopt standards for any and all Class III Gaming equipment, | 0011| devices or supplies to be purchased, leased or otherwise acquired | 0012| by the Tribe after the effective date of this Compact for use in | 0013| any Gaming Facility, which standards shall be at least as strict | 0014| as the comparable standards applicable to Class III Gaming | 0015| equipment, devices or supplies within the State of Nevada. Any | 0016| and all Class III Gaming equipment, devices or supplies acquired | 0017| by the Tribe after the date of this Compact shall meet or exceed | 0018| the standards thereby adopted, and any and all Class III Gaming | 0019| equipment, devices or supplies used by the Tribe in its Gaming | 0020| Facilities as of the effective date of this Compact shall be | 0021| upgraded or replaced, if necessary, so as to comply with such | 0022| standards, by no later than one (1) year after the effective date | 0023| of this Compact. | 0024| B. Prior to entering into any future lease or purchase | 0025| agreement for Class III Gaming equipment, devices or supplies, the | 0001| Tribe shall obtain sufficient information and identification from | 0002| the proposed seller or lessor and all persons holding any direct | 0003| or indirect financial interest in the lessor or the lease/purchase | 0004| agreement to permit the Tribe to license those persons in | 0005| accordance with Section 5, hereof. | 0006| C. The seller, lessor, manufacturer or distributor shall | 0007| provide, assemble and install all Class III Gaming equipment, | 0008| devices or supplies in a manner approved and licensed by the | 0009| Tribe. | 0010| SECTION 7. Dispute Resolution. | 0011| A. In the event either party believes that the other party | 0012| has failed to comply with or has otherwise breached any provision | 0013| of this Compact, such party may invoke the following procedure: | 0014| 1. The party asserting noncompliance shall serve written | 0015| notice on the other party. The notice shall identify | 0016| the specific Compact provision believed to have been | 0017| violated and shall specify the factual and legal | 0018| basis for the alleged noncompliance. The notice | 0019| shall specifically identify the date, time and nature | 0020| of the alleged noncompliance. Representatives of the | 0021| State and Tribe shall thereafter meet within thirty | 0022| (30) days in an effort to resolve the dispute. | 0023| 2. In the event an allegation by the complaining party | 0024| is not resolved to the satisfaction of such party | 0025| within ninety (90) days after service of the notice | 0001| set forth in Paragraph (A)(1) of this section, the | 0002| complaining party may serve upon the other party a | 0003| notice to cease conduct of the particular game(s) or | 0004| activities alleged by the complaining party to be in | 0005| noncompliance. Upon receipt of such notice, the | 0006| responding party may elect to stop the game(s) or | 0007| activities specified in the notice or invoke | 0008| arbitration and continue the game(s) or activities | 0009| pending the results of arbitration. The responding | 0010| party shall act upon one of the foregoing options | 0011| within thirty (30) days of receipt of notice from the | 0012| complaining party. | 0013| 3. Arbitration under this authority shall be conducted | 0014| under the Commercial Arbitration Rules of the | 0015| American Arbitration Association, except that the | 0016| arbitrators shall be attorneys who are licensed | 0017| members in good standing of the State Bar of New | 0018| Mexico or of the bar of another state. The State | 0019| will select one arbitrator, the Tribe a second | 0020| arbitrator, and the two so chosen shall select a | 0021| third arbitrator. If the third arbitrator is not | 0022| chosen in this manner within ten (10) days after the | 0023| second arbitrator is selected, the third arbitrator | 0024| will be chosen in accordance with the rules of the | 0025| American Arbitration Association. | 0001| 4. All parties shall bear their own costs of arbitration | 0002| and attorney fees. | 0003| 5. The results of arbitration shall be enforceable by an | 0004| action for injunctive or mandatory injunctive relief | 0005| against the State and the Tribe in any court of | 0006| competent jurisdiction. For purposes of any such | 0007| action, the State and the Tribe acknowledge that any | 0008| action or failure to act on the part of any agent or | 0009| employee of the State or the Tribe, contrary to a | 0010| decision of the arbitrators in an arbitration | 0011| proceeding conducted under the provisions of this | 0012| section, occurring after such decision, shall be | 0013| wholly unauthorized and ultra vires acts, not | 0014| protected by the sovereign immunity of the State or | 0015| the Tribe. | 0016| B. Nothing in Subsection 7(A) shall be construed to waive, | 0017| limit or restrict any remedy that is otherwise available to either | 0018| party to enforce or resolve disputes concerning the provisions of | 0019| this Compact. Nothing in this Compact shall be deemed a waiver of | 0020| the Tribe's sovereign immunity. Nothing in this Compact shall be | 0021| deemed a waiver of the State's sovereign immunity. | 0022| SECTION 8. Protection of Patrons. | 0023| A. Liability to Patrons. To ensure the personal safety and | 0024| protection of patrons and other invitees of a Tribe's Gaming | 0025| Facility operated under the provisions of this Compact, the Tribe | 0001| shall at all times maintain in effect a policy of public liability | 0002| insurance, insuring the Tribe, its agents and employees against | 0003| any claims, demands or liability that may arise as a result of | 0004| personal injury to any person (other than an employee of the | 0005| gaming establishment) occurring anywhere on the premises of any | 0006| gaming establishment operated by the Tribe under the provisions of | 0007| this Compact, or as a result of any act or omission of any agent | 0008| or employee of such gaming establishment while in the course of | 0009| his or her employment, which policy shall provide personal injury | 0010| coverage of no less than one million dollars ($1,000,000) per | 0011| injured person and ten million dollars ($10,000,000) aggregate per | 0012| policy year. | 0013| The Tribe agrees that in the event of any claim made against | 0014| it or its gaming enterprise, or any agent or employee thereof, | 0015| arising out of any personal injury as described above, neither the | 0016| Tribe nor its insurer will assert any defense of immunity from | 0017| suit as to such claim for compensatory damages up to the amount of | 0018| one million dollars ($1,000,000) per injured person, and ten | 0019| million dollars ($10,000,000) aggregate per policy year, in any | 0020| action filed in a court of competent jurisdiction to be tried to | 0021| the court; provided, however, that this agreement not to assert | 0022| such defense shall be strictly limited as provided herein, and | 0023| shall not apply to any claim for punitive damages, or to any claim | 0024| for which a jury trial is demanded, or to any claim for any loss | 0025| or damage other than that arising from actual bodily injury or | 0001| death, or to any claim for damages in excess of the amount set | 0002| forth herein. Nothing herein shall be construed as stating or | 0003| implying that the Tribe has waived or agreed not to assert its | 0004| immunity from suit for any other purpose or in any other | 0005| circumstance other than the limited purposes and circumstances | 0006| expressly set forth herein, and nothing herein shall be construed | 0007| as an admission of liability as to any claim for damages or as an | 0008| agreement or indication of willingness to pay any amount as | 0009| damages absent a judicial determination of fault, and the Tribe or | 0010| its insurer, or both, shall in every instance have the right to | 0011| defend any such claim fully on the merits. | 0012| The Tribe shall provide to the State Gaming Representative | 0013| annually a certificate of insurance showing that its gaming | 0014| enterprise and its agents and employees engaged therein are | 0015| insured to the extent and in the circumstances required by this | 0016| section, or that it is self-insured to such extent and in such | 0017| circumstances. If the State Gaming Representative so requests in | 0018| writing, the certificate of insurance may be furnished directly to | 0019| the State Gaming Representative from the insurance carrier or the | 0020| insuring agency for the insured Tribe. | 0021| B. Public Health and Safety. The Tribe shall establish for | 0022| its Gaming Facility health, safety and construction standards that | 0023| are at least as stringent as the current editions of the National | 0024| Electrical Code, the Uniform Building Code, the Uniform Mechanical | 0025| Code, the Uniform Fire Code and the Uniform Plumbing Code, and any | 0001| and all gaming facilities or additions thereto constructed by the | 0002| Tribe hereafter shall be constructed and all facilities shall be | 0003| maintained so as to comply with such standards. Inspections will | 0004| be conducted with respect to these standards at least annually. | 0005| If the State Gaming Representative requests sufficiently in | 0006| advance of an annual inspection, the State Gaming Representative | 0007| may be present during such inspection. The Tribe agrees to | 0008| correct any deficiencies noted in such inspections within a | 0009| reasonable period of time. The Tribal Gaming Agency will provide | 0010| copies of such inspection reports to the State Gaming | 0011| Representative, if requested to do so in writing. | 0012| SECTION 9. Effective Date. This Compact shall be effective | 0013| immediately upon the occurrence of the last of the following: | 0014| A. execution by the Tribe's Governor after approval of the | 0015| Tribal Council; | 0016| B. execution by the Governor of the State; | 0017| C. approval by the Secretary of the Interior; and | 0018| D. publication in the Federal Register. | 0019| The Governor is authorized to execute compacts with an | 0020| individual Tribe that has also entered into revenue-sharing | 0021| agreements and has passed resolutions described herein, in | 0022| substantially the same form as set forth herein. Upon signature | 0023| by the Governor and the Tribe, the Compact shall be transmitted to | 0024| the Secretary of the Interior for approval. | 0025| SECTION 10. Criminal Jurisdiction. | 0001| The Tribe and the State acknowledge that under the | 0002| provisions of 23 of the IGRA, especially that portion codified | 0003| at 18 U.S.C. 1166(d), jurisdiction to prosecute violations of | 0004| State gambling laws made applicable by that section to Indian | 0005| country is vested exclusively within the United States, unless the | 0006| Tribe and the State agree in a compact entered into the IGRA to | 0007| transfer such jurisdiction to the State. The Tribe and the State | 0008| hereby agree that, in the event of any violation of any State | 0009| gambling law within the Indian Lands by any person who is not a | 0010| member of the Tribe, the State shall have and may exercise | 0011| jurisdiction, concurrent with that of the United States, to | 0012| prosecute such person, under its laws and in its courts; provided, | 0013| however, that this concurrent jurisdiction shall (1) not take | 0014| effect unless and until the State, the Tribe and the Office of the | 0015| United States Attorney for the District of New Mexico shall have | 0016| entered into a Memorandum of Understanding with respect to the | 0017| manner in which State, federal and tribal law enforcement agencies | 0018| shall cooperate in the detection of violations, apprehension and | 0019| detention of any suspected violator and the investigation and | 0020| prosecution of any charges brought by the State pursuant to this | 0021| section and (2) continue so long as the Memorandum of | 0022| Understanding remains in effect. | 0023| SECTION 11. Binding Effect and Duration. | 0024| A. This Compact shall be binding upon the State and Tribe | 0025| for a term of fifteen (15) years from the date it becomes | 0001| effective and will automatically renew for an additional five-year | 0002| (5-year) period. | 0003| B. Before the date that is one (1) year prior to the | 0004| expiration of the fifteen-year (15-year) initial term, and/or | 0005| before the date that is one year prior to the expiration of the | 0006| five-year (5-year) renewal period, either party may serve written | 0007| notice on the other of its desire to renegotiate this Compact. | 0008| C. In the event that either party gives written notice to | 0009| the other of its desire to renegotiate this Compact pursuant to | 0010| Subsection (B) of this section, the Tribe may, pursuant to the | 0011| procedures of the IGRA, request the State to enter into | 0012| negotiations for a new compact governing the conduct of Class III | 0013| Gaming. If the parties are unable to conclude a successor | 0014| compact, this Compact shall remain in full force and effect in | 0015| accordance with its terms pending exhaustion of the administrative | 0016| and judicial remedies set forth in the IGRA and any other | 0017| applicable federal law. | 0018| D. Notwithstanding the foregoing, at any time while this | 0019| Compact remains in effect, either party may, by written notice to | 0020| the other party, request reopening of negotiations with respect to | 0021| any provision of this Compact, or with respect to any issue not | 0022| addressed in the Compact, specifying such provision or issue in | 0023| such notice. No such request shall be unreasonably refused, but | 0024| neither party shall be required to agree to any change in the | 0025| Compact, and no agreement to supplement or amend this Compact in | 0001| any respect shall have any validity until the same shall have been | 0002| approved in writing by the Tribe, the State and the Secretary of | 0003| the Interior and notice of such approval published in the Federal | 0004| Register. | 0005| E. The Tribe may operate Class III Gaming only while this | 0006| Compact or any renegotiated compact is in effect. | 0007| SECTION 12. Notice to Parties. | 0008| Unless otherwise indicated, all notices, payments, requests, | 0009| reports, information or demand that any party hereto may desire or | 0010| may be required to give to the other party hereto, shall be in | 0011| writing and shall be personally delivered or sent by first-class | 0012| mail sent to the other party at the address provided in writing by | 0013| the other party. Every notice, payment, request, report, | 0014| information or demand so given shall be deemed effective upon | 0015| receipt or, if mailed, upon receipt or the expiration of the third | 0016| day following the day of mailing, whichever occurs first, except | 0017| that any notice of change of address shall be effective only upon | 0018| receipt by the party to whom said notice is addressed. | 0019| SECTION 13. Entire Agreement. | 0020| This Compact is the entire agreement between the parties and | 0021| supersedes all prior agreements, whether written or oral, with | 0022| respect to the subject matter hereof. Neither this Compact nor | 0023| any provision herein may be changed, waived, discharged or | 0024| terminated orally, but only by an instrument, in writing, signed | 0025| by the Tribe and the State and approved by the Secretary of the | 0001| Interior. | 0002| SECTION 14. Filing of Compact with State Records Center. | 0003| Upon the effective date of this Compact, a copy shall be | 0004| filed by the Governor with the New Mexico Records Center. Any | 0005| subsequent amendment or modification of this Compact shall be | 0006| filed with the New Mexico Records Center. | 0007| SECTION 15. Counterparts. | 0008| This Compact may be executed by the parties in any number of | 0009| separate counterparts with the same effect as if the signatures | 0010| were upon the same instrument. All such counterparts shall | 0011| together constitute one and the same document." | 0012| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL | 0013| GAMING REVENUE.--The governor is authorized to execute a revenue- | 0014| sharing agreement in the form substantially set forth in this | 0015| section with any New Mexico Indian nation, tribe or pueblo that | 0016| has also entered into an Indian gaming compact as provided by law. | 0017| Execution of an Indian gaming compact is conditioned upon | 0018| execution of a revenue-sharing agreement. The consideration for | 0019| the Indian entity entering into the revenue-sharing agreement is | 0020| the condition of the agreement providing limited exclusivity of | 0021| gaming activities to the tribal entity. The revenue-sharing | 0022| agreement shall be in substantially the following form and is | 0023| effective when executed by the governor on behalf of the state and | 0024| the appropriate official of the Indian entity: | 0025| "REVENUE-SHARING AGREEMENT | 0001| 1. Summary and consideration. The Tribe shall agree to | 0002| contribute certain of its Class III Gaming revenues, as described | 0003| below. | 0004| 2. Revenue to State. The parties agree that, after the | 0005| effective date hereof, the Tribe shall make semi-annual payments | 0006| to the General Fund of the State ("State General Fund"). | 0007| 3. Calculation of Revenue to State. | 0008| A. The parties agree that, as used herein, "net win" is | 0009| defined as the total amount wagered at each Gaming Facility on | 0010| Class III Gaming, which is protected by the limitations in | 0011| Paragraph 5, below, and elsewhere herein, minus the total amount | 0012| paid as prizes (including noncash prizes) and winning wagers at | 0013| said games, and minus all tribal regulatory fees and expenses, | 0014| supported by reasonable, adequate documentation, not to exceed Two | 0015| Hundred Fifty Thousand Dollars ($250,000) per year and minus | 0016| federal and State regulatory fees and expenses, and taxes. | 0017| B. The tribe shall pay the state fifteen percent of the | 0018| net win of each Gaming Facility. | 0019| C. For purposes of these payments, all calculations of | 0020| amounts due shall be based upon a calendar year beginning January | 0021| 1 and ending December 31, unless the parties agree on a different | 0022| fiscal year. The semiannual payments due to the State pursuant to | 0023| these terms shall be paid no later than twenty-five (25) days | 0024| after December 31 and June 30 of each year (or commensurate dates | 0025| if the fiscal year agreed upon is different from the calendar | 0001| year). Any payments due and owing from the Tribe in the year the | 0002| Compact is approved, or the final year the Compact is in force, | 0003| shall reflect the net win, but only for the portion of the year | 0004| the Compact is in effect. | 0005| 4. Limitations. The Tribe's obligation to make the | 0006| payments provided for in Paragraphs 2 and 3 of this section shall | 0007| apply and continue only so long as there is a binding Indian | 0008| Gaming Compact in effect between the Tribe and the State, which | 0009| Compact provides for the play of Class III Gaming, but shall | 0010| terminate in the event of any of the following conditions: | 0011| A. If the State passes, amends, or repeals any law, or | 0012| takes any other action, which would directly or indirectly attempt | 0013| to restrict, or has the effect of restricting, the scope of Indian | 0014| gaming. | 0015| B. If the State permits any expansion of nontribal | 0016| Class III Gaming in the State. Notwithstanding this general | 0017| prohibition against permitted expansion of gaming activities, the | 0018| State may permit: (1) the enactment of a State lottery, (2) any | 0019| fraternal, veterans or other nonprofit membership organization to | 0020| operate such electronic gaming devices lawfully, but only for the | 0021| benefit of such organization's members, (3) limited fundraising | 0022| activities conducted by nonprofit tax exempt organizations | 0023| pursuant to Section 30-19-6 NMSA 1978, and (4) any horse | 0024| racetracks to operate electronic gaming devices on days on which | 0025| live or simulcast horse racing occurs. | 0001| 5. Effect of Variance. | 0002| A. In the event the acts or omissions of the State | 0003| cause the Tribe's obligation to make payments under Paragraph 3 of | 0004| this section to terminate under the provisions of Paragraph 4 of | 0005| this section, such cessation of obligation to pay will not | 0006| adversely affect the validity of the Compact, but the maximum | 0007| amount that the Tribe agrees to reimburse the State for actual | 0008| documented regulatory costs under the Compact shall automatically | 0009| increase to one hundred thousand dollars ($100,000) per year. | 0010| | 0011| B. In the event a Tribe's revenue-sharing payment to | 0012| the State is less than one hundred thousand dollars ($100,000) per | 0013| year, the maximum amount that the Tribe agrees to reimburse the | 0014| State for actual documented regulatory costs under the Compact | 0015| shall automatically increase to one hundred thousand dollars | 0016| ($100,000) per year less the amount of the revenue-sharing | 0017| payment. 6. Third-Party Beneficiaries. This Agreement is not | 0018| intended to create any third-party beneficiaries and is entered | 0019| into solely for the benefit of the Tribe and the State." | 0020| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 | 0021| through 63 of this act may be cited as the "Gaming Control Act". | 0022| Section 4. [NEW MATERIAL] POLICY.--It is the state's | 0023| policy on gaming that: | 0024| A. limited gaming activities should be allowed in the | 0025| state if those activities are strictly regulated to ensure honest | 0001| and competitive gaming that is free from criminal and corruptive | 0002| elements and influences; and | 0003| B. the holder of any license issued by the state in | 0004| connection with the regulation of gaming activities has a | 0005| revocable privilege only and has no property right or vested | 0006| interest in the license. | 0007| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0008| Gaming Control Act: | 0009| A. "affiliate" means a person who, directly or | 0010| indirectly through one or more intermediaries, controls, is | 0011| controlled by or is under common control with a specified person; | 0012| B. "affiliated company" means a company that: | 0013| (1) controls, is controlled by or is under common | 0014| control with a company licensee; and | 0015| (2) is involved in gaming activities or involved | 0016| in the ownership of property on which gaming is conducted; | 0017| C. "applicant" means a person who has applied for a | 0018| license or for approval of an act or transaction for which | 0019| approval is required or allowed pursuant to the provisions of the | 0020| Gaming Control Act; | 0021| D. "application" means a request for the issuance of a | 0022| license or for approval of an act or transaction for which | 0023| approval is required or allowed pursuant to the provisions of the | 0024| Gaming Control Act, but "application" does not include a | 0025| supplemental form or information that may be required with the | 0001| application; | 0002| E. "associated equipment" means equipment or a | 0003| mechanical, electromechanical or electronic contrivance, component | 0004| or machine used in connection with gaming; | 0005| F. "board" means the gaming control board; | 0006| G. "certification" means a notice of approval by the | 0007| board of a person required to be certified by the board; | 0008| H. "company" means a corporation, partnership, limited | 0009| partnership, trust, association, joint stock company, joint | 0010| venture, limited liability company or other form of business | 0011| organization that is not a natural person; | 0012| I. "distributor" means a person who supplies gaming | 0013| devices to a gaming operator but does not manufacture gaming | 0014| devices; | 0015| J. "equity security" means an interest in a company | 0016| that is evidenced by: | 0017| (1) voting stock or similar security; | 0018| (2) a security convertible into voting stock or | 0019| similar security, with or without consideration, or a security | 0020| carrying a warrant or right to subscribe to or purchase voting | 0021| stock or similar security; | 0022| (3) a warrant or right to subscribe to or purchase | 0023| voting stock or similar security; or | 0024| (4) a security having a direct or indirect | 0025| participation in the profits of the issuer; | 0001| K. "executive director" means the chief administrative | 0002| officer appointed by the board pursuant to Section 7 of the Gaming | 0003| Control Act; | 0004| L. "finding of suitability" means a certification of | 0005| approval issued by the board permitting a person to be involved | 0006| directly or indirectly with a licensee, relating only to the | 0007| specified involvement for which it is made; | 0008| M. "game" means an activity in which, upon payment of | 0009| consideration, a player receives a prize or other thing of value, | 0010| the award of which is determined by chance even though accompanied | 0011| by some skill; "game" does not include an activity played in a | 0012| private residence in which no person makes money for operating the | 0013| activity except through winnings as a player; | 0014| N. "gaming" means offering a game for play; | 0015| O. "gaming activity" means any endeavor associated | 0016| with the manufacture or distribution of gaming devices or the | 0017| conduct of gaming; | 0018| P. "gaming device" means associated equipment or a | 0019| gaming machine and includes a system for processing information | 0020| that can alter the normal criteria of random selection that | 0021| affects the operation of a game or determines the outcome of a | 0022| game; "gaming device" does not include a system or device that | 0023| affects a game solely by stopping its operation so that the | 0024| outcome remains undetermined; | 0025| Q. "gaming employee" means a person connected directly | 0001| with a gaming activity; "gaming employee" does not include: | 0002| (1) bartenders, cocktail servers or other persons | 0003| engaged solely in preparing or serving food or beverages; | 0004| (2) secretarial or janitorial personnel; | 0005| (3) stage, sound and light technicians; or | 0006| (4) other nongaming personnel; | 0007| R. "gaming establishment" means the premises on or in | 0008| which gaming is conducted; | 0009| S. "gaming machine" means a mechanical, | 0010| electromechanical or electronic contrivance or machine that, upon | 0011| insertion of a coin, token or similar object, or upon payment of | 0012| any consideration, is available to play or operate a game, whether | 0013| the payoff is made automatically from the machine or in any other | 0014| manner; | 0015| T. "gaming operator" means a person who conducts | 0016| gaming; | 0017| U. "holding company" means a company that directly or | 0018| indirectly owns or has the power or right to control a company | 0019| that is an applicant or licensee, but a company that does not have | 0020| a beneficial ownership of more than ten percent of the equity | 0021| securities of a publicly traded corporation is not a holding | 0022| company; | 0023| V. "immediate family" means natural persons who are | 0024| related to a specified natural person by affinity or consanguinity | 0025| in the first through the third degree; | 0001| W. "institutional investor" means a state or federal | 0002| government pension plan or a person that meets the requirements of | 0003| a qualified institutional buyer as defined in Rule 144A of the | 0004| federal Securities Act of 1933, and is: | 0005| (1) a bank as defined in Section 3(a)(6) of the | 0006| federal Securities Exchange Act of 1934; | 0007| (2) an insurance company as defined in Section | 0008| 2(a)(17) of the federal Investment Company Act of 1940; | 0009| (3) an investment company registered under Section | 0010| 8 of the federal Investment Company Act of 1940; | 0011| (4) an investment adviser registered under Section | 0012| 203 of the federal Investment Advisers Act of 1940; | 0013| (5) collective trust funds as defined in Section | 0014| 3(c)(11) of the federal Investment Company Act of 1940; | 0015| (6) an employee benefit plan or pension fund that | 0016| is subject to the federal Employee Retirement Income Security Act | 0017| of 1974, excluding an employee benefit plan or pension fund | 0018| sponsored by a publicly traded corporation registered with the | 0019| board; or | 0020| (7) a group comprised entirely of persons | 0021| specified in Paragraphs (1) through (6) of this subsection; | 0022| X. "intermediary company" means a company that: | 0023| (1) is a holding company with respect to a company | 0024| that is an applicant or licensee; and | 0025| (2) is a subsidiary with respect to any holding | 0001| company; | 0002| Y. "key executive" means an executive of a licensee | 0003| having the power to exercise significant influence over decisions | 0004| concerning any part of the licensed operations of the licensee or | 0005| whose compensation exceeds an amount established by the board in a | 0006| regulation; | 0007| Z. "license" means an authorization required by the | 0008| board for engaging in gaming activities; | 0009| AA. "licensee" means a person to whom a valid license | 0010| has been issued; | 0011| BB. "manufacturer" means a person who manufactures, | 0012| fabricates, assembles, produces, programs or makes modifications | 0013| to any gaming device for use or play in New Mexico or for sale, | 0014| lease or distribution outside New Mexico from any location within | 0015| New Mexico; | 0016| CC. "net take" means the total of the following, less | 0017| the total of all cash paid out as losses to winning patrons and | 0018| those amounts paid to purchase annuities to fund losses paid to | 0019| winning patrons over several years by independent administrators: | 0020| (1) cash received from patrons for playing a game; | 0021| (2) cash received in payment for credit extended | 0022| by a licensee to a patron for playing a game; and | 0023| (3) compensation received for conducting a game in | 0024| which the licensee is not a party to a wager; | 0025| DD. "nonprofit organization" means an organization | 0001| that: | 0002| (1) is described in Section 501(c)(8), (10), (19) | 0003| or (23) of the federal Internal Revenue Code of 1986 and that is | 0004| exempt from federal income taxation pursuant to Section 501(a) of | 0005| that code; | 0006| (2) has been issued a license pursuant to Section | 0007| 60-6A-5 NMSA 1978 but does not have gaming as its primary | 0008| activity; and | 0009| (3) has been in continuous existence at the same | 0010| location since before January 1, 1987; | 0011| EE. "person" means a legal entity; | 0012| FF. "premises" means land, together with all | 0013| buildings, improvements and personal property located on the land; | 0014| GG. "progressive jackpot" means a prize that increases | 0015| over time or as gaming machines that are linked to a progressive | 0016| system are played and upon conditions established by the board may | 0017| be paid by an annuity; | 0018| HH. "progressive system" means one or more gaming | 0019| machines linked to one or more common progressive jackpots; | 0020| II. "publicly traded corporation" means a corporation | 0021| that: | 0022| (1) has one or more classes of securities | 0023| registered pursuant to the securities laws of the United States or | 0024| New Mexico; | 0025| (2) is an issuer subject to the securities laws of | 0001| the United States or New Mexico; or | 0002| (3) has one or more classes of securities | 0003| registered or is an issuer pursuant to applicable foreign laws | 0004| that the board finds provide protection for institutional | 0005| investors that is comparable to or greater than the stricter of | 0006| the securities laws of the United States or New Mexico; | 0007| JJ. "registration" means a board action that | 0008| authorizes a company to be a holding company with respect to a | 0009| company that holds or applies for a license or that relates to | 0010| other persons required to be registered pursuant to the Gaming | 0011| Control Act; | 0012| KK. "subsidiary" means a company, all or a part of | 0013| whose outstanding equity securities are owned, subject to a power | 0014| or right of control or held, with power to vote, by a holding | 0015| company or intermediary company; and | 0016| LL. "work permit" means a card, certificate or permit | 0017| issued by the board, whether denominated as a work permit, | 0018| registration card or otherwise, authorizing the employment of the | 0019| holder as a gaming employee. | 0020| Section 6. [NEW MATERIAL] LIMITED GAMING ACTIVITY | 0021| PERMITTED.--Gaming activity is permitted in New Mexico only if it | 0022| is conducted in compliance with and pursuant to: | 0023| A. the Gaming Control Act; or | 0024| B. a state or federal law other than the Gaming | 0025| Control Act that expressly permits the activity or exempts it from | 0001| the application of the state criminal law, or both. | 0002| Section 7. [NEW MATERIAL] GAMING CONTROL BOARD | 0003| CREATED.-- | 0004| A. The "gaming control board" is created and | 0005| consists of five members appointed by the governor with the | 0006| advice and consent of the senate. All members of the board | 0007| shall be residents of New Mexico and citizens of the United | 0008| States. At least one member of the board shall have a minimum | 0009| of five years of previous employment in a supervisory and | 0010| administrative position in a law enforcement agency; at least | 0011| one member of the board shall be a certified public accountant | 0012| in New Mexico who has had at least five years of experience in | 0013| public accountancy; at least one member of the board shall be an | 0014| attorney who has been admitted to practice before the supreme | 0015| court of New Mexico; and at least one member of the board shall | 0016| have at least five years of previous employment in a top-level | 0017| supervisory and administrative position in a governmental gaming | 0018| regulatory agency. | 0019| B. The members of the board shall be appointed for | 0020| terms of five years, except, of the members who are first | 0021| appointed, one member with law enforcement experience and one | 0022| member who is a certified public accountant shall be appointed | 0023| for terms of five years; one member who is an attorney and one | 0024| member who has gaming regulatory experience shall be appointed | 0025| for terms of four years; and the fifth member shall be appointed | 0001| for a term of three years. Thereafter, all members shall be | 0002| appointed for terms of five years. No person shall serve as a | 0003| board member for more than two consecutive terms or ten years | 0004| total. | 0005| C. No person appointed to the board may be employed | 0006| in any other capacity or shall in any manner receive | 0007| compensation for services rendered to any person or entity other | 0008| than the board while a member of the board. | 0009| D. A vacancy on the board shall be filled within | 0010| thirty days by the governor with the advice and consent of the | 0011| senate for the unexpired portion of the term in which the | 0012| vacancy occurs. A person appointed to fill a vacancy shall meet | 0013| all qualification requirements of the office established in this | 0014| section. | 0015| E. The governor shall choose a chairman annually | 0016| from the board's membership. | 0017| F. No more than three members of the board shall be | 0018| from the same political party. | 0019| G. The members of the board shall be full-time state | 0020| officials and shall receive a salary set by the governor. | 0021| H. The department of public safety shall conduct | 0022| background investigations of all members of the board prior to | 0023| confirmation by the senate. To assist the department in the | 0024| background investigation, a prospective board member shall | 0025| furnish a disclosure statement to the department on a form | 0001| provided by the department containing that information deemed by | 0002| the department as necessary for completion of a detailed and | 0003| thorough background investigation. The required information | 0004| shall include at least: | 0005| (1) a full set of fingerprints made by a law | 0006| enforcement agency on forms supplied by the department; | 0007| (2) complete information and details with | 0008| respect to the prospective board member's antecedents, habits, | 0009| immediate family, character, criminal record, business | 0010| activities, financial affairs and business associates covering | 0011| at least a ten-year period immediately preceding the date of | 0012| submitting the disclosure statement; | 0013| (3) complete disclosure of any equity interest | 0014| held by the prospective board member or a member of his | 0015| immediate family in a business connected with gaming; and | 0016| (4) the names and addresses of members of the | 0017| immediate family of the prospective board member. | 0018| I. No person may be appointed or confirmed as a | 0019| member of the board if that person or member of his immediate | 0020| family holds an equity interest in a business connected with | 0021| gaming. | 0022| J. A prospective board member shall provide | 0023| assistance and information requested by the department of public | 0024| safety or the governor and shall cooperate in any inquiry or | 0025| investigation of the prospective board member's fitness or | 0001| qualifications to hold the office to which he is appointed. The | 0002| senate shall not confirm a prospective board member if it has | 0003| reasonable cause to believe that the prospective board member | 0004| has: | 0005| (1) knowingly misrepresented or omitted a | 0006| material fact required in a disclosure statement; | 0007| (2) been convicted of a felony, a gaming | 0008| related offense or a crime involving fraud, theft or moral | 0009| turpitude within ten years immediately preceding the date of | 0010| submitting a disclosure statement required pursuant to the | 0011| provisions of Subsection H of this section; | 0012| (3) exhibited a history of willful disregard | 0013| for the gaming laws of this or any other state or the United | 0014| States; or | 0015| (4) had a permit or license issued pursuant to | 0016| the gaming laws of this or any other state or the United States | 0017| permanently suspended or revoked for cause. | 0018| K. The senate may in its discretion not confirm a | 0019| prospective board member. | 0020| L. At the time of taking office, each board member | 0021| shall file with the secretary of state a sworn statement that he | 0022| is not disqualified under the provisions of Subsection I of | 0023| this section. | 0024| Section 8. [NEW MATERIAL] BOARD--MEETINGS--QUORUM-- | 0025| RECORDS.-- | 0001| A. A majority of the qualified membership of the | 0002| board then in office constitutes a quorum. No action may be | 0003| taken by the board unless at least three members concur. | 0004| B. Written notice of the time and place of each | 0005| board meeting shall be given to each member of the board at | 0006| least ten days prior to the meeting. | 0007| C. Meetings of the board shall be open and public in | 0008| accordance with the Open Meetings Act, except that the board may | 0009| close a meeting to hear confidential security and investigative | 0010| information and other information made confidential by the | 0011| provisions of the Gaming Control Act. | 0012| D. All proceedings of the board shall be recorded by | 0013| audiotape or other equivalent verbatim audio recording device. | 0014| E. The chairman of the board, the executive director | 0015| or a majority of the members of the board then in office may | 0016| call a special meeting of the board upon at least five days' | 0017| prior written notice to all members of the board and the | 0018| executive director. | 0019| Section 9. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0020| A. The board shall implement the state's policy on | 0021| gaming consistent with the provisions of the Gaming Control Act. | 0022| It has the duty to fulfill all responsibilities assigned to it | 0023| pursuant to that act, and it has all authority necessary to | 0024| carry out those responsibilities. It may delegate authority to | 0025| the executive director, but it retains accountability. The | 0001| board is an adjunct agency. | 0002| B. The board shall: | 0003| (1) employ the executive director; | 0004| (2) make the final decision on issuance, | 0005| denial, suspension and revocation of all licenses pursuant to | 0006| and consistent with the provisions of the Gaming Control Act; | 0007| (3) develop, adopt and promulgate all | 0008| regulations necessary to implement and administer the provisions | 0009| of the Gaming Control Act; | 0010| (4) conduct itself, or employ a hearing officer | 0011| to conduct, all hearings required by the provisions of the | 0012| Gaming Control Act and other hearings it deems appropriate to | 0013| fulfill its responsibilities; | 0014| (5) meet at least once each month; and | 0015| (6) prepare and submit an annual report in | 0016| December of each year to the governor and the legislature, | 0017| covering activities of the board in the most recently completed | 0018| fiscal year, a summary of gaming activities in the state and any | 0019| recommended changes in or additions to the laws relating to | 0020| gaming in the state. | 0021| C. The board may: | 0022| (1) impose civil fines not to exceed twenty- | 0023| five thousand dollars ($25,000) for the first violation and | 0024| fifty thousand dollars ($50,000) for subsequent violations of | 0025| any prohibitory provision of the Gaming Control Act or any | 0001| prohibitory provision of a regulation adopted pursuant to that | 0002| act; | 0003| (2) conduct investigations; | 0004| (3) subpoena persons and documents to compel | 0005| access to or the production of documents and records, including | 0006| books and memoranda, in the custody or control of any licensee; | 0007| (4) compel the appearance of employees of a | 0008| licensee or persons for the purpose of ascertaining compliance | 0009| with provisions of the Gaming Control Act or a regulation | 0010| adopted pursuant to its provisions; | 0011| (5) administer oaths and take depositions to | 0012| the same extent and subject to the same limitations as would | 0013| apply if the deposition were pursuant to discovery rules in a | 0014| civil action in the district court; | 0015| (6) sue and be sued subject to the limitations | 0016| of the Tort Claims Act; | 0017| (7) contract for the provision of goods and | 0018| services necessary to carry out its responsibilities; | 0019| (8) conduct audits of applicants, licensees and | 0020| persons affiliated with licensees; | 0021| (9) inspect, examine, photocopy and audit all | 0022| documents and records of an applicant or licensee relevant to | 0023| his gaming activities in the presence of the applicant or | 0024| licensee or his agent; | 0025| (10) require verification of income and all | 0001| other matters pertinent to the gaming activities of an applicant | 0002| or licensee affecting the enforcement of any provision of the | 0003| Gaming Control Act; | 0004| (11) inspect all places where gaming activities | 0005| are conducted and inspect all property connected with gaming in | 0006| those places; | 0007| (12) summarily seize, remove and impound from | 0008| places inspected any gaming devices, property connected with | 0009| gaming, documents or records for the purpose of examination or | 0010| inspection; | 0011| (13) inspect, examine, photocopy and audit all | 0012| documents and records of any affiliate of an applicant or | 0013| licensee who the board knows or reasonably suspects is involved | 0014| in the financing, operation or management of the applicant or | 0015| licensee. The inspection, examination, photocopying and audit | 0016| shall be in the presence of a representative of the affiliate or | 0017| its agent when practicable; and | 0018| (14) except for the powers specified in | 0019| Paragraphs (1) and (4) of this subsection, carry out all or part | 0020| of the foregoing powers and activities through the executive | 0021| director. | 0022| Section 10. [NEW MATERIAL] BOARD REGULATIONS-- | 0023| DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0024| A. The board may adopt any regulation: | 0025| (1) consistent with the provisions of the | 0001| Gaming Control Act; and | 0002| (2) it decides is necessary to implement the | 0003| provisions of the Gaming Control Act. | 0004| B. No regulation shall be adopted, amended or | 0005| repealed without a public hearing on the proposed action before | 0006| the board or a hearing officer designated by it. The public | 0007| hearing shall be held in Santa Fe. Notice of the subject matter | 0008| of the regulation, the action proposed to be taken, the time and | 0009| place of the hearing, the manner in which interested persons may | 0010| present their views and the method by which copies of the | 0011| proposed regulation, amendment or repeal may be obtained shall | 0012| be published once at least thirty days prior to the hearing date | 0013| in a newspaper of general circulation and mailed at least thirty | 0014| days prior to the hearing date to all persons who have made a | 0015| written request for advance notice of hearing. All regulations | 0016| and actions taken on regulations shall be filed in accordance | 0017| with the State Rules Act. | 0018| C. The board shall adopt regulations: | 0019| (1) prescribing the method and form of | 0020| application to be followed by an applicant; | 0021| (2) prescribing the information to be furnished | 0022| by an applicant or licensee concerning his antecedents, | 0023| immediate family, habits, character, associates, criminal | 0024| record, business activities and financial affairs, past or | 0025| present; | 0001| (3) prescribing the manner and procedure of all | 0002| hearings conducted by the board or a hearing officer; | 0003| (4) prescribing the manner and method of | 0004| collection and payment of fees; | 0005| (5) prescribing the manner and method of the | 0006| issuance of licenses, permits, registrations, certificates and | 0007| other actions of the board not elsewhere prescribed in the | 0008| Gaming Control Act; | 0009| (6) defining the area, games and gaming devices | 0010| allowed and the methods of operation of the games and gaming | 0011| devices for authorized gaming; | 0012| (7) prescribing under what conditions the | 0013| nonpayment of winnings is grounds for suspension or revocation | 0014| of a license of a gaming operator; | 0015| (8) governing the manufacture, sale, | 0016| distribution, repair and servicing of gaming devices; | 0017| (9) prescribing accounting procedures, | 0018| security, collection and verification procedures required of | 0019| licensees and matters regarding financial responsibility of | 0020| licensees; | 0021| (10) prescribing what shall be considered to be | 0022| an unsuitable method of operating gaming activities; | 0023| (11) restricting access to confidential | 0024| information obtained pursuant to the provisions of the Gaming | 0025| Control Act and ensuring that the confidentiality of that | 0001| information is maintained and protected; | 0002| (12) prescribing financial reporting and | 0003| internal control requirements for licensees; | 0004| (13) prescribing the manner in which winnings, | 0005| compensation from gaming activities and net take shall be | 0006| computed and reported by a gaming operator licensee; | 0007| (14) prescribing the frequency of and the | 0008| matters to be contained in audits of and periodic financial | 0009| reports from a gaming operator licensee consistent with | 0010| standards prescribed by the board; | 0011| (15) prescribing the procedures to be followed | 0012| by a gaming operator licensee for the exclusion of persons from | 0013| gaming establishments; | 0014| (16) establishing criteria and conditions for | 0015| the operation of progressive systems; | 0016| (17) establishing criteria and conditions for | 0017| approval of procurement by the board of personal property valued | 0018| in excess of twenty thousand dollars ($20,000), including | 0019| background investigation requirements for a person submitting a | 0020| bid or proposal; and | 0021| (18) establishing an applicant fee schedule for | 0022| processing applications that is based on costs of the | 0023| application review incurred by the board whether directly or | 0024| through payment by the board for costs charged for | 0025| investigations of applicants by state departments and agencies | 0001| other than the board, which regulation shall set a maximum fee | 0002| of one hundred thousand dollars ($100,000). | 0003| Section 11. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0004| EMPLOYMENT--QUALIFICATIONS.-- | 0005| A. The executive director shall be employed by, | 0006| report directly to and serve at the pleasure of the board. | 0007| B. The executive director shall have had at least | 0008| five years of responsible supervisory administrative experience | 0009| in a governmental gaming regulatory agency. | 0010| Section 12. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0011| POWERS--DUTIES.-- | 0012| A. The executive director shall implement the | 0013| policies of the board. | 0014| B. The executive director shall employ all personnel | 0015| who work for the board. The employees shall be covered | 0016| employees pursuant to the provisions of the Personnel Act. | 0017| Among those personnel he shall employ and designate an | 0018| appropriate number of individuals as law enforcement officers | 0019| subject to proper certification pursuant to the Law Enforcement | 0020| Training Act. | 0021| C. The executive director shall establish | 0022| organizational units he determines are appropriate to administer | 0023| the provisions of the Gaming Control Act. | 0024| D. The executive director: | 0025| (1) may delegate authority to subordinates as | 0001| he deems necessary and appropriate, clearly delineating the | 0002| delegated authority and the limitations on it, if any; | 0003| (2) shall take administrative action by issuing | 0004| orders and instructions consistent with the Gaming Control Act | 0005| and regulations of the board to assure implementation of and | 0006| compliance with the provisions of that act and those | 0007| regulations; | 0008| (3) may conduct research and studies that will | 0009| improve the operations of the board and the provision of | 0010| services to the citizens of the state; | 0011| (4) may provide courses of instruction and | 0012| practical training for employees of the board and other persons | 0013| involved in the activities regulated by the board with the | 0014| objectives of improving operations of the board and achieving | 0015| compliance with the law and regulations; | 0016| (5) shall prepare an annual budget for the | 0017| board and submit it to the board for approval; and | 0018| (6) shall make recommendations to the board of | 0019| proposed regulations and any legislative changes needed to | 0020| provide better administration of the Gaming Control Act and fair | 0021| and efficient regulation of gaming activities in the state. | 0022| Section 13. [NEW MATERIAL] INVESTIGATION OF EXECUTIVE | 0023| DIRECTOR CANDIDATES AND EMPLOYEES.-- | 0024| A. A person who is under consideration in the final | 0025| selection process for appointment as the executive director | 0001| shall file a disclosure statement pursuant to the requirements | 0002| of this section, and the board shall not make an appointment of | 0003| a person as executive director until a background investigation | 0004| is completed by the department of public safety and a report is | 0005| made to the board. | 0006| B. A person who has reached the final selection | 0007| process for employment by the executive director shall file a | 0008| disclosure statement pursuant to the requirements of this | 0009| section if the executive director or the board has directed the | 0010| person do so. The person shall not be further considered for | 0011| employment until a background investigation is completed by the | 0012| department of public safety and a report is made to the | 0013| executive director. | 0014| C. Forms for the disclosure statements required by | 0015| this section shall be developed by the board in cooperation with | 0016| the department of public safety. At least the following | 0017| information shall be required of a person submitting a | 0018| statement: | 0019| (1) a full set of fingerprints made by a law | 0020| enforcement agency on forms supplied by the board; | 0021| (2) complete information and details with | 0022| respect to the person's antecedents, habits, immediate family, | 0023| character, criminal record, business activities and business | 0024| associates, covering at least a ten-year period immediately | 0025| preceding the date of submitting the disclosure statement; and | 0001| (3) a complete description of any equity | 0002| interest held in a business connected with the gaming industry. | 0003| D. In preparing an investigative report, the | 0004| department of public safety may request and receive criminal | 0005| history information from the federal bureau of investigation or | 0006| any other law enforcement agency or organization. The | 0007| department of public safety shall maintain confidentiality | 0008| regarding information received from a law enforcement agency | 0009| that may be imposed by the agency as a condition for providing | 0010| the information to the department. | 0011| E. A person required to file a disclosure statement | 0012| shall provide any assistance or information requested by the | 0013| department of public safety or the board and shall cooperate in | 0014| any inquiry or investigation. | 0015| F. If information required to be included in a | 0016| disclosure statement changes or if information is added after | 0017| the statement is filed, the person required to file it shall | 0018| provide that information in writing to the person requesting the | 0019| investigation. The supplemental information shall be provided | 0020| within thirty days after the change or addition. | 0021| G. The board shall not appoint a person as executive | 0022| director, and the executive director shall not employ a person, | 0023| if the board or the executive director has reasonable cause to | 0024| believe that the person has: | 0025| (1) knowingly misrepresented or omitted a | 0001| material fact required in a disclosure statement; | 0002| (2) been convicted of a felony, a gaming | 0003| related offense or a crime involving fraud, theft or moral | 0004| turpitude within ten years immediately preceding the date of | 0005| submitting a disclosure statement required pursuant to this | 0006| section; | 0007| (3) exhibited a history of willful disregard | 0008| for the gaming laws of this or any other state or the United | 0009| States; or | 0010| (4) had a permit or license issued pursuant to | 0011| the gaming laws of this or any other state or the United States | 0012| permanently suspended or revoked for cause. | 0013| H. Both the board and the executive director may | 0014| exercise absolute discretion in exercising their respective | 0015| appointing and employing powers. | 0016| Section 14. [NEW MATERIAL] CONFLICTS OF INTEREST-- | 0017| BOARD--EXECUTIVE DIRECTOR.-- | 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 board, the executive director, or a | 0021| person in the immediate family of or residing in the household | 0022| of any of the foregoing persons, shall not | 0023| (1) directly or indirectly, as a proprietor or | 0024| as a member, stockholder, director or officer of a company, have | 0025| an interest in a business engaged in gaming activities in this | 0001| or another jurisdiction; or | 0002| (2) accept or agree to accept any economic | 0003| opportunity, gift, loan, gratuity, special discount, favor, | 0004| hospitality or service having an aggregate value of one hundred | 0005| dollars ($100) or more in any calendar year from a licensee or | 0006| applicant. | 0007| B. If a member of the board, the executive director | 0008| or a person in the immediate family of or residing in the | 0009| household of a member of the board or the executive director | 0010| violates a provision of this section, the member of the board or | 0011| executive director shall be removed from office. A board member | 0012| shall be removed by the governor, and the executive director | 0013| shall be removed from his position by the board. | 0014| Section 15. [NEW MATERIAL] ACTIVITIES REQUIRING | 0015| LICENSING.-- | 0016| A. A person shall not conduct gaming unless he is | 0017| licensed as a gaming operator. | 0018| B. A person shall not sell, supply or distribute any | 0019| gaming device or associated equipment for use or play in this | 0020| state or for use or play outside of this state from a location | 0021| within this state unless he is licensed as a distributor or | 0022| manufacturer, but a gaming operator licensee may sell or trade | 0023| in a gaming device or associated equipment to a gaming operator | 0024| licensee, distributor licensee or manufacturer licensee. | 0025| C. A person shall not manufacture, fabricate, | 0001| assemble, program or make modifications to a gaming device or | 0002| associated equipment for use or play in this state or for use or | 0003| play outside of this state from any location within this state | 0004| unless he is a manufacturer licensee. A manufacturer licensee | 0005| may sell, supply or distribute only the gaming devices or | 0006| associated equipment that he manufactures, fabricates, | 0007| assembles, programs or modifies. | 0008| D. A gaming operator licensee or a person other than | 0009| a manufacturer licensee or distributor licensee shall not | 0010| possess or control a place where there is an unlicensed gaming | 0011| machine. Any unlicensed gaming machine, except one in the | 0012| possession of a licensee while awaiting transfer to a gaming | 0013| operator licensee for licensure of the machine, is subject to | 0014| forfeiture and confiscation by any law enforcement agency or | 0015| peace officer. | 0016| E. A person shall not service or repair a gaming | 0017| device or associated equipment unless he is licensed as a | 0018| manufacturer or employed by a manufacturer licensee. | 0019| | 0020| F. A person shall not engage in any activity for | 0021| which the board requires a license or permit without obtaining | 0022| the license or permit. | 0023| G. Except as provided in Subsection B of this | 0024| section, a person shall not purchase, lease or acquire | 0025| possession of a gaming device or associated equipment except | 0001| from a licensed distributor or manufacturer. | 0002| H. A distributor licensee may receive a percentage | 0003| of the amount wagered, the net take or other measure related to | 0004| the operation of a gaming machine as a payment pursuant to a | 0005| lease or other arrangement for furnishing a gaming machine, but | 0006| the board shall adopt a regulation setting the maximum allowable | 0007| percentage. | 0008| Section 16. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0009| A. The board shall establish and issue the following | 0010| categories of licenses: | 0011| (1) manufacturer; | 0012| (2) distributor; | 0013| (3) gaming operator; and | 0014| (4) gaming machine. | 0015| B. The board shall issue certifications of findings | 0016| of suitability for key executives and other persons for whom | 0017| certification is required. | 0018| C. The board shall issue work permits for gaming | 0019| employees. | 0020| D. A licensee shall not be issued more than one type | 0021| of license, but this provision does not prohibit a licensee from | 0022| owning, leasing, acquiring or having in his possession licensed | 0023| gaming machines if that activity is otherwise allowed by the | 0024| provisions of the Gaming Control Act. A licensee shall not own a | 0025| majority interest in, manage or otherwise control a holder of | 0001| another type of license issued pursuant to the provisions of | 0002| that act. | 0003| E. Applicants shall apply on forms provided by the | 0004| board and furnish all information requested by the board. | 0005| Submission of an application constitutes consent to a credit | 0006| check of the applicant and all persons having a substantial | 0007| interest in the applicant and any other background | 0008| investigations required pursuant to the Gaming Control Act or | 0009| deemed necessary by the board. | 0010| F. All licenses issued by the board pursuant to the | 0011| provisions of this section shall be reviewed for renewal | 0012| annually unless revoked, suspended, canceled or terminated. | 0013| G. A license shall not be transferred or assigned. | 0014| H. The application for a license shall include: | 0015| (1) the name of the applicant; | 0016| (2) the location of the proposed operation; | 0017| (3) the gaming devices to be operated, | 0018| manufactured, distributed or serviced; | 0019| (4) the names of all persons having a direct or | 0020| indirect interest in the business of the applicant and the | 0021| nature of such interest; and | 0022| (5) such other information and details as the | 0023| board may require. | 0024| I. The board shall furnish to the applicant | 0025| supplemental forms that the applicant shall complete and file | 0001| with the application. Such supplemental forms shall require | 0002| complete information and details with respect to the applicant's | 0003| antecedents, habits, immediate family, character, criminal | 0004| record, business activities, financial affairs and business | 0005| associates, covering at least a ten-year period immediately | 0006| preceding the date of filing of the application. | 0007| Section 17. [NEW MATERIAL] LICENSE, CERTIFICATION AND | 0008| WORK PERMIT FEES.-- | 0009| A. License and other fees shall be established by | 0010| board regulation but shall not exceed the following amounts: | 0011| (1) manufacturer's license, twenty thousand | 0012| dollars ($20,000) for the initial license and five thousand | 0013| dollars ($5,000) for annual renewal; | 0014| (2) distributor's license, ten thousand dollars | 0015| ($10,000) for the initial license and one thousand dollars | 0016| ($1,000) for annual renewal; | 0017| (3) gaming operator's license for a racetrack, | 0018| fifty thousand dollars ($50,000) for the initial license and ten | 0019| thousand dollars ($10,000) for annual renewal; | 0020| (4) gaming operator's license for a nonprofit | 0021| organization, one thousand dollars ($1,000) for the initial | 0022| license and two hundred dollars ($200) for annual renewal; | 0023| (5) for each separate gaming machine licensed | 0024| to a person holding an operator's license, five hundred dollars | 0025| ($500) for the initial license and one hundred dollars ($100) | 0001| for annual renewal; and | 0002| (6) work permit, one hundred dollars ($100) | 0003| annually. | 0004| B. The board shall establish the fee for | 0005| certifications or other actions by regulation, but no fee | 0006| established by the board shall exceed one thousand dollars | 0007| ($1,000), except for fees established pursuant to Paragraph (18) | 0008| of Subsection C of Section 8 of the Gaming Control Act. | 0009| C. All license, certification or work permit fees | 0010| shall be paid to the board at the time and in the manner | 0011| established by regulations of the board. | 0012| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0013| APPLICATIONS.-- | 0014| A. A person that the board determines is qualified | 0015| to receive a license pursuant to the provisions of the Gaming | 0016| Control Act may be issued a license. The burden of proving | 0017| qualifications is on the applicant. | 0018| B. A license shall not be issued unless the board is | 0019| satisfied that the applicant is: | 0020| (1) a person of good moral character, honesty | 0021| and integrity; | 0022| (2) a person whose prior activities, criminal | 0023| record, reputation, habits and associations do not pose a threat | 0024| to the public interest or to the effective regulation and | 0025| control of gaming or create or enhance the dangers of | 0001| unsuitable, unfair or illegal practices, methods and activities | 0002| in the conduct of gaming or the carrying on of the business and | 0003| financial arrangements incidental thereto; and | 0004| (3) in all other respects qualified to be | 0005| licensed consistent with the laws of this state. | 0006| C. A license shall not be issued unless the | 0007| applicant has satisfied the board that: | 0008| (1) the applicant has adequate business | 0009| probity, competence and experience in business and gaming; | 0010| (2) the proposed financing of the applicant is | 0011| adequate for the nature of the proposed license and from a | 0012| suitable source; any lender or other source of money or credit | 0013| that the board finds does not meet the standards set forth in | 0014| Subsection B of this section shall be deemed unsuitable; and | 0015| (3) the applicant is sufficiently capitalized | 0016| under standards set by the board to conduct the business covered | 0017| by the license. | 0018| D. An application to receive a license, | 0019| certification or work permit constitutes a request for a | 0020| determination of the applicant's general moral character, | 0021| integrity and ability to participate or engage in or be | 0022| associated with gaming. Any written or oral statement made in | 0023| the course of an official proceeding of the board or by a | 0024| witness testifying under oath that is relevant to the purpose of | 0025| the proceeding is absolutely privileged and does not impose | 0001| liability for defamation or constitute a ground for recovery in | 0002| any civil action. | 0003| E. The board shall not issue a license or | 0004| certification to an applicant who has been denied a license or | 0005| certification in this state or another state, who has had a | 0006| certification, permit or license issued pursuant to the gaming | 0007| laws of a state or the United States permanently suspended or | 0008| revoked for cause or who is currently under suspension or | 0009| subject to any other limiting action in this state or another | 0010| state involving gaming activities or licensure for gaming | 0011| activities. | 0012| F. The board shall investigate the qualifications of | 0013| each applicant before a license, certification or work permit is | 0014| issued by the board and shall continue to observe and monitor | 0015| the conduct of all licensees, work permit holders, persons | 0016| certified as being suitable and the persons having a material | 0017| involvement directly or indirectly with a licensee. | 0018| G. The board has the authority to deny an | 0019| application or limit, condition, restrict, revoke or suspend a | 0020| license, certification or permit for any cause. | 0021| H. After issuance, a license, certification or | 0022| permit shall continue in effect upon proper payment of the | 0023| initial and renewal fees, subject to the power of the board to | 0024| revoke, suspend, condition or limit licenses, certifications and | 0025| permits. | 0001| I. The board has full and absolute power and | 0002| authority to deny an application for any cause it deems | 0003| reasonable. If an application is denied, the board shall | 0004| prepare and file its written decision on which its order denying | 0005| the application is based. | 0006| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES, | 0007| CERTIFICATIONS AND PERMITS.--The board shall conduct an | 0008| investigation of the applicant within thirty days after an | 0009| application is filed and supplemental information that the board | 0010| may require is received. | 0011| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS | 0012| FOR COMPANIES.--In order to be eligible to receive a license, a | 0013| company shall: | 0014| A. be incorporated or otherwise organized and in | 0015| good standing in this state or incorporated or otherwise | 0016| organized in another state, qualified to do business in this | 0017| state and in good standing in this state and in the state of | 0018| incorporation; | 0019| B. comply with all of the requirements of the laws | 0020| of this state pertaining to the company; | 0021| C. maintain a ledger in the principal office of the | 0022| company in this state, which shall: | 0023| (1) at all times reflect the ownership | 0024| according to company records of every class of security issued | 0025| by the company; and | 0001| (2) be available for inspection by the board at | 0002| all reasonable times without notice; and | 0003| D. file notice of all changes of ownership of all | 0004| classes of securities issued by the company with the board | 0005| within thirty days of the change. | 0006| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0007| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company applicant | 0008| shall provide the following information to the board on forms | 0009| provided by the board: | 0010| A. the organization, financial structure and nature | 0011| of the business to be operated, including the names and personal | 0012| histories of all officers, directors and key executives; | 0013| B. the rights and privileges acquired by the holders | 0014| of different classes of authorized securities; | 0015| C. the terms and conditions of all outstanding | 0016| loans, mortgages, trust deeds, pledges or any other indebtedness | 0017| or security interest evidenced by a security instrument | 0018| pertaining to the proposed gaming operation or other licensed | 0019| activity in this state and the name and address of the person | 0020| who is servicing the loan, mortgage, trust deed, pledge or other | 0021| indebtedness or security interest; | 0022| D. remuneration to persons, other than directors, | 0023| officers and key executives, exceeding fifty thousand dollars | 0024| ($50,000) per year; | 0025| E. bonus and profit-sharing arrangements within the | 0001| company; | 0002| F. management and service contracts pertaining to | 0003| the proposed gaming activity in this state; | 0004| G. balance sheets and profit and loss statements for | 0005| at least the three preceding fiscal years, or, if the company | 0006| has not been in business for a period of three years, balance | 0007| sheets and profit and loss statements from the time of its | 0008| commencement of business operations and projected for three | 0009| years from the time of its commencement of business operations. | 0010| All balance sheets and profit and loss statements shall be | 0011| certified by independent certified public accountants; and | 0012| H. any further financial data that the board deems | 0013| necessary or appropriate. | 0014| Section 22. [NEW MATERIAL] INDIVIDUAL CERTIFICATION OF | 0015| OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer, director, | 0016| equity security holder of five percent or more, partner, general | 0017| partner, limited partner, trustee or beneficiary of the company | 0018| that holds or has applied for a license shall be certified | 0019| individually, according to the provisions of the Gaming Control | 0020| Act, and if in the judgment of the board the public interest is | 0021| served by requiring any or all of the company's key executives | 0022| to be certified, the company shall require those persons to | 0023| apply for certification. A person who is required to be | 0024| certified pursuant to this section shall apply for certification | 0025| within thirty days after becoming an officer, director, equity | 0001| security holder of five percent or more, partner, general | 0002| partner, limited partner of five percent or more, trustee, | 0003| beneficiary or key executive. A person who is required to be | 0004| certified pursuant to a decision of the board shall apply for | 0005| certification within thirty days after the board so requests. | 0006| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS | 0007| OR BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON | 0008| UNSUITABLE PERSONS--OTHER REQUIREMENTS.-- | 0009| A. If the company applicant or licensee is or | 0010| becomes a subsidiary, each nonpublicly traded holding company | 0011| and intermediary company with respect to the subsidiary company | 0012| shall: | 0013| (1) qualify to do business in New Mexico; and | 0014| (2) register with the board and furnish to the | 0015| board the following information: | 0016| (a) a complete list of all beneficial | 0017| owners of five percent or more of its equity securities, which | 0018| shall be updated within thirty days after any change; | 0019| (b) the names of all company officers and | 0020| directors within thirty days of their appointment or election; | 0021| (c) its organization, financial structure | 0022| and nature of the business it operates; | 0023| (d) the terms, position, rights and | 0024| privileges of the different classes of its outstanding | 0025| securities; | 0001| (e) the terms on which its securities are | 0002| to be, and during the preceding three years have been, offered; | 0003| (f) the holder of and the terms and | 0004| conditions of all outstanding loans, mortgages, trust deeds, | 0005| pledges or any other indebtedness or security interest | 0006| pertaining to the applicant or licensee; | 0007| (g) the extent of the securities holdings | 0008| or other interest in the holding company or intermediary company | 0009| of all officers, directors, key executives, underwriters, | 0010| partners, principals, trustees or any direct or beneficial | 0011| owners, and the amount of any remuneration paid them as | 0012| compensation for their services in the form of salary, wages, | 0013| fees or by contract pertaining to the licensee; | 0014| (h) remuneration to persons other than | 0015| directors, officers and key executives exceeding fifty thousand | 0016| dollars ($50,000) per year; | 0017| (i) bonus and profit-sharing arrangements | 0018| within the holding company or intermediary company; | 0019| (j) management and service contracts | 0020| pertaining to the licensee or applicant; | 0021| (k) options existing or to be created in | 0022| respect to the company's securities or other interests; | 0023| (l) balance sheets and profit and loss | 0024| statements, certified by independent certified public | 0025| accountants, for not more than the three preceding fiscal years, | 0001| or, if the holding company or intermediary company has not been | 0002| in existence more than three years, balance sheets and profit | 0003| and loss statements from the time of its establishment, together | 0004| with projections for three years from the time of its | 0005| establishment; | 0006| (m) any further financial statements | 0007| necessary or appropriate to assist the board in making its | 0008| determinations; and | 0009| (n) a current annual profit and loss | 0010| statement, a current annual balance sheet and a copy of the | 0011| company's most recent federal income tax return within thirty | 0012| days after the return is filed. | 0013| B. All holders of five percent or more of the equity | 0014| security of a holding company or intermediary company shall | 0015| apply for a finding of suitability. | 0016| C. The board may in its discretion perform the | 0017| investigations concerning the officers, directors, key | 0018| executives, underwriters, security holders, partners, | 0019| principals, trustees or direct or beneficial owners of any | 0020| interest in any holding company or intermediary company as it | 0021| deems necessary, either at the time of initial registration or | 0022| at any time thereafter. | 0023| D. If at any time the board finds that any person | 0024| owning, controlling or holding with power to vote all or any | 0025| part of any class of securities of, or any interest in, any | 0001| holding company or intermediary company is unsuitable to be | 0002| connected with a licensee, it shall so notify both the | 0003| unsuitable person and the holding company or intermediary | 0004| company. The unsuitable person shall immediately offer the | 0005| securities or other interest to the issuing company for | 0006| purchase. The company shall purchase the securities or interest | 0007| offered upon the terms and within the time period ordered by the | 0008| board. | 0009| E. Beginning on the date when the board serves | 0010| notice that a person has been found to be unsuitable pursuant to | 0011| Subsection D of this section, it is unlawful for the unsuitable | 0012| person to: | 0013| (1) receive any dividend or interest upon any | 0014| securities held in the holding company or intermediary company, | 0015| or any dividend, payment or distribution of any kind from the | 0016| holding company or intermediary company; | 0017| (2) exercise, directly or indirectly or through | 0018| a proxy, trustee or nominee, any voting right conferred by the | 0019| securities or interest; or | 0020| (3) receive remuneration in any form from the | 0021| licensee, or from any holding company or intermediary company | 0022| with respect to that licensee, for services rendered or | 0023| otherwise. | 0024| F. A holding company or intermediary company subject | 0025| to the provisions of Subsection A of this section shall not make | 0001| any public offering of any of its equity securities unless such | 0002| public offering has been approved by the board. | 0003| G. This section does not apply to a holding company | 0004| or intermediary company that is a publicly traded corporation, | 0005| the stock of which is traded on recognized stock exchanges, | 0006| which shall instead comply with the provisions of Section 22 of | 0007| the Gaming Control Act. | 0008| Section 24. [NEW MATERIAL] REGISTRATION AND | 0009| CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.-- | 0010| A. If a company applicant or company licensee is or | 0011| becomes a publicly traded corporation, it shall register with | 0012| the board and provide the following information: | 0013| (1) as of the date the company became a | 0014| publicly traded corporation, and on any later date when the | 0015| information changes, the names of all stockholders of record who | 0016| hold five percent or more of the outstanding shares of any class | 0017| of equity securities issued by the publicly traded corporation; | 0018| (2) the names of all officers within thirty | 0019| days of their respective appointments; | 0020| (3) the names of all directors within thirty | 0021| days of their respective elections or appointments; | 0022| (4) the organization, financial structure and | 0023| nature of the businesses the publicly traded corporation | 0024| operates; | 0025| (5) the terms, position, rights and privileges | 0001| of the different classes of securities outstanding as of the | 0002| date the company became a publicly traded corporation; | 0003| (6) the terms on which the company's securities | 0004| were issued during the three years preceding the date on which | 0005| the company became a publicly traded corporation and the terms | 0006| on which the publicly traded corporation's securities are to be | 0007| offered to the public as of the date the company became a | 0008| publicly traded corporation; | 0009| (7) the terms and conditions of all outstanding | 0010| indebtedness and evidence of security pertaining directly or | 0011| indirectly to the publicly traded corporation; | 0012| (8) remuneration exceeding fifty thousand | 0013| dollars ($50,000) per year paid to persons other than directors, | 0014| officers and key executives who are actively and directly | 0015| engaged in the administration or supervision of the gaming | 0016| activities of the publicly traded corporation; | 0017| (9) bonus and profit-sharing arrangements | 0018| within the publicly traded corporation directly or indirectly | 0019| relating to its gaming activities; | 0020| (10) management and service contracts of the | 0021| corporation pertaining to its gaming activities; | 0022| (11) options existing or to be created pursuant | 0023| to its equity securities; | 0024| (12) balance sheets and profit and loss | 0025| statements, certified by independent certified public | 0001| accountants, for not less than the three fiscal years preceding | 0002| the date the company became a publicly traded corporation; | 0003| (13) any further financial statements deemed | 0004| necessary or appropriate by the board; and | 0005| (14) a description of the publicly traded | 0006| corporation's affiliated companies and intermediary companies | 0007| and gaming licenses, permits and approvals held by those | 0008| entities. | 0009| B. The board shall consider the following criteria | 0010| in determining whether to certify a publicly traded corporation: | 0011| (1) the business history of the publicly traded | 0012| corporation, including its record of financial stability, | 0013| integrity and success of its gaming operations in other | 0014| jurisdictions; | 0015| (2) the current business activities and | 0016| interests of the applicant, as well as those of its officers, | 0017| promoters, lenders and other sources of financing, or any other | 0018| persons associated with it; | 0019| (3) the current financial structure of the | 0020| publicly traded corporation as well as changes that could | 0021| reasonably be expected to occur to its financial structure as a | 0022| consequence of its proposed action; | 0023| (4) the present and proposed compensation | 0024| arrangements between the publicly traded corporation and its | 0025| directors, officers, key executives, securities holders, lenders | 0001| or other sources of financing; | 0002| (5) the equity investment, commitment or | 0003| contribution of present or prospective directors, key | 0004| executives, investors, lenders or other sources of financing; | 0005| and | 0006| (6) the dealings and arrangements, prospective | 0007| or otherwise, between the publicly traded corporation and its | 0008| investment bankers, promoters, finders or lenders and other | 0009| sources of financing. | 0010| C. The board may issue a certification upon receipt | 0011| of a proper application and consideration of the criteria set | 0012| forth in Subsection B of this section if it finds that the | 0013| certification would not be contrary to the public interest or | 0014| the policy set forth in the Gaming Control Act. | 0015| Section 25. [NEW MATERIAL] FINDING OF SUITABILITY | 0016| REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL | 0017| FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY BY | 0018| BOARD.-- | 0019| A. Each officer, director and key executive of a | 0020| holding company, intermediary company or publicly traded | 0021| corporation that the board determines is or is to become | 0022| actively and directly engaged in the administration or | 0023| supervision of, or any other significant involvement with, the | 0024| activities of the subsidiary licensee or applicant shall apply | 0025| for a finding of suitability. | 0001| B. If any officer, director or key executive of a | 0002| holding company, intermediary company or publicly traded | 0003| corporation required to be found suitable pursuant to Subsection | 0004| A of this section fails to apply for a finding of suitability | 0005| within thirty days after being requested to do so by the board, | 0006| or is not found suitable by the board, or if his finding of | 0007| suitability is revoked after appropriate findings by the board, | 0008| the holding company, intermediary company or publicly traded | 0009| corporation shall immediately remove that officer, director or | 0010| key executive from any office or position in which the person is | 0011| engaged in the administration or supervision of, or any other | 0012| involvement with, the activities of the certified subsidiary | 0013| until the person is thereafter found to be suitable. If the | 0014| board suspends the finding of suitability of any officer, | 0015| director or key executive, the holding company, intermediary | 0016| company or publicly traded corporation shall immediately and for | 0017| the duration of the suspension suspend that officer, director or | 0018| key executive from performance of any duties in which he is | 0019| actively and directly engaged in the administration or | 0020| supervision of, or any other involvement with, the activities of | 0021| the subsidiary licensee. | 0022| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0023| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0024| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION-- | 0025| PROHIBITION.-- | 0001| A. Each person who, individually or in association | 0002| with others, acquires, directly or indirectly, beneficial | 0003| ownership of five percent or more of any voting securities in a | 0004| publicly traded corporation registered with the board may be | 0005| required to be found suitable if the board has reason to believe | 0006| that the acquisition of the ownership would otherwise be | 0007| inconsistent with the declared policy of this state. | 0008| B. Each person who, individually or in association | 0009| with others, acquires, directly or indirectly, beneficial | 0010| ownership of five percent or more of any class of voting | 0011| securities of a publicly traded corporation certified by the | 0012| board shall notify the board within ten days after acquiring | 0013| such interest. | 0014| C. Each person who, individually or in association | 0015| with others, acquires, directly or indirectly, the beneficial | 0016| ownership of more than ten percent of any class of voting | 0017| securities of a publicly traded corporation certified by the | 0018| board shall apply to the board for a finding of suitability | 0019| within thirty days after acquiring such interest. | 0020| D. Institutional investors that have been exempted | 0021| from or have received a waiver of suitability requirements | 0022| pursuant to regulations adopted by the board are not required to | 0023| comply with this section. | 0024| E. Any person required by the board or by the | 0025| provisions of this section to be found suitable shall apply for | 0001| a finding of suitability within thirty days after the board | 0002| requests that he do so. | 0003| F. Any person required by the board or the | 0004| provisions of this section to be found suitable who subsequently | 0005| is found unsuitable by the board shall not hold directly or | 0006| indirectly the beneficial ownership of any security of a | 0007| publicly traded corporation that is registered with the board | 0008| beyond that period of time prescribed by the board. | 0009| G. The board may, but is not required to, deem a | 0010| person qualified to hold a license or be found suitable as | 0011| required by this section if the person currently holds a valid | 0012| license issued by, or has been found suitable by, gaming | 0013| regulatory authorities in another jurisdiction, provided that | 0014| the board finds that the other jurisdiction has conducted a | 0015| thorough investigation of the applicant and has criteria | 0016| substantially similar to those of the board to determine when a | 0017| person is to be found suitable or to obtain a license. | 0018| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE | 0019| OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE | 0020| OFFICERS AND DIRECTORS--APPROVAL OF BOARD.-- | 0021| A. Before a company licensee, other than a publicly | 0022| traded corporation, may issue or transfer five percent or more | 0023| of its securities to any person, it shall file a report of its | 0024| proposed action with the board, which report shall request the | 0025| approval of the board. The board shall have ninety days within | 0001| which to approve or deny the request. If the board fails to act | 0002| in ninety days, the request is deemed approved. If the board | 0003| denies the request, the company shall not issue or transfer five | 0004| percent or more of its securities to the person about whom the | 0005| request was made. | 0006| B. A company licensee shall file a report of each | 0007| change of the corporate officers and directors with the board | 0008| within thirty days of the change. The board shall have ninety | 0009| days from the date the report is filed within which to approve | 0010| or disapprove such change. During the ninety-day period and | 0011| thereafter, if the board does not disapprove the change, an | 0012| officer or director is be entitled to exercise all powers of the | 0013| office to which he was elected or appointed. | 0014| C. A company licensee shall report to the board in | 0015| writing any change in company personnel who have been designated | 0016| as key executives. The report shall be made no later than | 0017| thirty days after the change. | 0018| D. The board may require that a company licensee | 0019| furnish the board with a copy of its federal income tax return | 0020| within thirty days after the return is filed. | 0021| Section 28. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0022| GENERAL PROVISIONS--PLAYER AGE LIMIT--RULES FOR PLACEMENT.-- | 0023| A. An applicant for licensure as a gaming operator | 0024| shall submit with the application a plan for assisting in the | 0025| prevention, education and treatment of compulsive gambling. The | 0001| plan shall include regular educational training sessions for | 0002| employees. Plan approval is a condition of issuance of the | 0003| license. | 0004| B. A gaming operator licensee shall be granted a | 0005| license to operate a specific number of machines at a gaming | 0006| establishment identified in the license application and shall be | 0007| granted a license for each gaming machine. | 0008| C. A gaming operator licensee who desires to change | 0009| the number of machines in operation at a gaming establishment | 0010| shall apply to the board for an amendment to his license | 0011| authorizing a change in the number of machines. | 0012| D. Gaming machines may be available for play only in | 0013| an area restricted to persons twenty-one years of age or older. | 0014| E. A gaming operator licensee shall erect a | 0015| permanent physical barrier to allow for multiple uses of the | 0016| premises by persons of all ages. For purposes of this | 0017| subsection, "permanent physical barrier" means a floor-to- | 0018| ceiling wall separating the general areas from the restricted | 0019| areas. The entrance to the area where gaming machines are | 0020| located shall display a sign that the premises are restricted to | 0021| persons twenty-one years of age or older. Persons under the age | 0022| of twenty-one shall not enter the area where gaming machines are | 0023| located. | 0024| F. A gaming operator licensee shall not have | 0025| automated teller machines on the premises. | 0001| G. A gaming operator licensee shall not provide, | 0002| allow, contract or arrange to provide alcohol or food for no | 0003| charge or at reduced prices as an incentive or enticement for | 0004| patrons to game. | 0005| Section 29. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0006| SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES-- | 0007| DAYS AND HOURS OF OPERATIONS.-- | 0008| A. A racetrack licensed by the state racing | 0009| commission pursuant to the Horse Racing Act to conduct live | 0010| horse races or simulcast races may be issued a gaming operator's | 0011| license to operate gaming machines on its premises where live | 0012| racing is conducted. | 0013| B. A racetrack's gaming operator's license shall | 0014| automatically become void if: | 0015| (1) the racetrack no longer holds an active | 0016| license to conduct pari-mutuel wagering; or | 0017| (2) the racetrack fails to maintain a minimum | 0018| of four live race days a week during its licensed race meet | 0019| unless otherwise approved by the board. | 0020| C. A gaming operator licensee that is a racetrack | 0021| may have not more than three hundred licensed gaming machines, | 0022| but the number of gaming machines to be located on the | 0023| licensee's premises shall be specified in the gaming operator's | 0024| license. | 0025| D. Gaming machines on a racetrack gaming operator | 0001| licensee's premises may be played only on days when the | 0002| racetrack is either conducting live horse races or simulcasting | 0003| horse race meets and during times established by regulation of | 0004| the board, but the regulations shall provide for a maximum of | 0005| twelve hours a day. | 0006| E. Alcoholic beverages shall not be sold, served, | 0007| delivered or consumed in the area where gaming machines are | 0008| installed and operated on the premises of a racetrack gaming | 0009| operator licensee. | 0010| Section 30. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0011| SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING | 0012| MACHINES--DAYS AND HOURS OF OPERATIONS.-- | 0013| A. A nonprofit organization may be issued a gaming | 0014| operator's license to operate licensed gaming machines on its | 0015| premises. | 0016| B. No more than twenty-five gaming machines may be | 0017| offered for play on the premises of a nonprofit organization | 0018| gaming operator licensee. | 0019| C. No gaming machine on the premises of a nonprofit | 0020| organization gaming operator licensee may award a prize that | 0021| exceeds one thousand dollars ($1,000). | 0022| D. Gaming machines may be played on the premises of | 0023| a nonprofit organization gaming operator licensee from 12:00 | 0024| noon until 12:00 midnight every day. | 0025| E. Alcoholic beverages shall not be sold, served, | 0001| delivered or consumed in the area where gaming machines are | 0002| installed and operated on the premises of a nonprofit | 0003| organization gaming operator licensee. | 0004| Section 31. [NEW MATERIAL] LICENSING OF MANUFACTURERS | 0005| OF GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0006| A. It is unlawful for any person to operate, carry | 0007| on, conduct or maintain any form of manufacturing of any gaming | 0008| device or associated equipment for use or play in New Mexico or | 0009| any form of manufacturing of any gaming device or associated | 0010| equipment in New Mexico for use or play outside of New Mexico | 0011| without first obtaining and maintaining a manufacturer's | 0012| license. | 0013| B. If the board revokes a manufacturer's license: | 0014| (1) no new gaming device manufactured by the | 0015| manufacturer may be approved for use in this state; | 0016| (2) any previously approved gaming device | 0017| manufactured by the manufacturer is subject to revocation of | 0018| approval if the reasons for the revocation of the license also | 0019| apply to that gaming device; | 0020| (3) no new gaming device or associated | 0021| equipment made by the manufacturer may be distributed, sold, | 0022| transferred or offered for use or play in New Mexico; and | 0023| (4) any association or agreement between the | 0024| manufacturer and a distributor licensee or gaming operator | 0025| licensee in New Mexico shall be terminated. | 0001| C. An agreement between a manufacturer licensee and | 0002| a distributor licensee or a gaming operator licensee in New | 0003| Mexico shall be deemed to include a provision for its | 0004| termination without liability for the termination on the part of | 0005| either party upon a finding by the board that either party is | 0006| unsuitable. Failure to include that condition in the agreement | 0007| is not a defense in any action brought pursuant to this section | 0008| to terminate the agreement. | 0009| D. A gaming device shall not be used and offered for | 0010| play by a gaming operator licensee unless it is identical in all | 0011| material aspects to a model that has been specifically tested | 0012| and approved by: | 0013| (1) the board; | 0014| (2) a laboratory selected by the board; or | 0015| (3) gaming officials in Nevada or New Jersey | 0016| after January 1, 1990. | 0017| E. The board may inspect every gaming device that is | 0018| manufactured: | 0019| (1) for use in New Mexico; or | 0020| (2) in New Mexico for use outside of New | 0021| Mexico. | 0022| F. The board may inspect every gaming device that is | 0023| offered for play within New Mexico by a gaming operator | 0024| licensee. | 0025| G. The board may inspect all associated equipment | 0001| that is manufactured and sold for use in New Mexico or | 0002| manufactured in New Mexico for use outside of New Mexico. | 0003| H. In addition to all other fees and charges imposed | 0004| pursuant to the Gaming Control Act, the board may determine, | 0005| charge and collect from each manufacturer an inspection fee, | 0006| which shall not exceed the actual cost of inspection and | 0007| investigation. | 0008| I. The board may prohibit the use of a gaming device | 0009| by a gaming operator licensee if it finds that the gaming device | 0010| does not meet the requirements of this section. | 0011| Section 32. [NEW MATERIAL] LICENSING OF DISTRIBUTORS | 0012| OF GAMING DEVICES.-- | 0013| A. It is unlawful for any person to operate, carry | 0014| on, conduct or maintain any form of distribution of any gaming | 0015| device for use or play in New Mexico without first obtaining and | 0016| maintaining a distributor's or manufacturer's license. | 0017| B. If the board revokes a distributor's license: | 0018| (1) no new gaming device distributed by the | 0019| person may be approved; | 0020| (2) any previously approved gaming device | 0021| distributed by the distributor is subject to revocation of | 0022| approval if the reasons for the revocation of the license also | 0023| apply to that gaming device; | 0024| (3) no new gaming device or associated | 0025| equipment distributed by the distributor may be distributed, | 0001| sold, transferred or offered for use or play in New Mexico; and | 0002| (4) any association or agreement between the | 0003| distributor and a gaming operator licensee shall be terminated. | 0004| An agreement between a distributor licensee and a gaming | 0005| operator licensee shall be deemed to include a provision for its | 0006| termination without liability on the part of either party upon a | 0007| finding by the board that the other party is unsuitable. | 0008| Failure to include that condition in the agreement is not a | 0009| defense in any action brought pursuant to this section to | 0010| terminate the agreement. | 0011| C. The board may inspect every gaming device that is | 0012| distributed for use in New Mexico. | 0013| D. In addition to all other fees and charges imposed | 0014| by the Gaming Control Act, the board may determine, charge and | 0015| collect from each distributor an inspection fee, which shall not | 0016| exceed the actual cost of inspection and investigation. | 0017| Section 33. [NEW MATERIAL] SUITABILITY OF CERTAIN | 0018| PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS WITH | 0019| GAMING OPERATORS--TERMINATION OF ASSOCIATION.-- | 0020| A. The board may determine the suitability of any | 0021| person who furnishes services or property to a gaming operator | 0022| licensee under any arrangement pursuant to which the person | 0023| receives compensation based on earnings, profits or receipts | 0024| from gaming. The board may require the person to comply with | 0025| the requirements of the Gaming Control Act and with the | 0001| regulations of the board. If the board determines that the | 0002| person is unsuitable, it may require the arrangement to be | 0003| terminated. | 0004| B. The board may require a person to apply for a | 0005| finding of suitability to be associated with a gaming operator | 0006| licensee if the person: | 0007| (1) does business on the premises of a gaming | 0008| establishment; or | 0009| (2) provides any goods or services to a gaming | 0010| operator licensee for compensation that the board finds to be | 0011| grossly disproportionate to the value of the goods or services. | 0012| C. If the board determines that a person is | 0013| unsuitable to be associated with a gaming operator licensee, the | 0014| association shall be terminated. Any agreement that entitles a | 0015| business other than gaming to be conducted on the premises of a | 0016| gaming establishment, or entitles a person other than a | 0017| licensee to conduct business with the gaming operator licensee, | 0018| is subject to termination upon a finding of unsuitability of the | 0019| person seeking association with a gaming operator licensee. | 0020| Every agreement shall be deemed to include a provision for its | 0021| termination without liability on the part of the gaming operator | 0022| licensee upon a finding by the board of the unsuitability of the | 0023| person seeking or having an association with the gaming operator | 0024| licensee. Failure to include that condition in the agreement is | 0025| not a defense in any action brought pursuant to this section to | 0001| terminate the agreement. If the application is not presented to | 0002| the board within thirty days following demand or the unsuitable | 0003| association is not terminated, the board may pursue any remedy | 0004| or combination of remedies provided in the Gaming Control Act. | 0005| Section 34. [NEW MATERIAL] REASONS FOR INVESTIGATIONS | 0006| BY BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT HEARING EXAMINER- | 0007| -REVIEW BY BOARD--ORDER OF BOARD.-- | 0008| A. The board shall make appropriate investigations | 0009| to: | 0010| (1) determine whether there has been any | 0011| violation of the Gaming Control Act or of any regulations | 0012| adopted pursuant to that act; | 0013| (2) determine any facts, conditions, practices | 0014| or matters that it deems necessary or proper to aid in the | 0015| enforcement of the Gaming Control Act or regulations adopted | 0016| pursuant to that act; | 0017| (3) aid in adopting regulations; | 0018| (4) secure information as a basis for | 0019| recommending legislation relating to the Gaming Control Act; or | 0020| (5) determine whether a licensee is able to | 0021| meet its financial obligations, including all financial | 0022| obligations imposed by the Gaming Control Act, as they become | 0023| due. | 0024| B. If after an investigation the board is satisfied | 0025| that a license, registration, finding of suitability or prior | 0001| approval by the board of any transaction for which approval was | 0002| required by the provisions of the Gaming Control Act should be | 0003| limited, conditioned, suspended or revoked, or that a fine | 0004| should be levied, the board shall initiate a hearing by filing a | 0005| complaint and transmitting a copy of it to the licensee, | 0006| together with a summary of evidence in its possession bearing on | 0007| the matter and the transcript of testimony at any investigative | 0008| hearing conducted by or on behalf of the board. The complaint | 0009| shall be a written statement of charges that sets forth in | 0010| ordinary and concise language the acts or omissions with which | 0011| the respondent is charged. It shall specify the statutes or | 0012| regulations that the respondent is alleged to have violated but | 0013| shall not consist merely of charges raised in the language of | 0014| the statutes or regulations. The summary of the evidence shall | 0015| be confidential and made available only to the respondent until | 0016| such time as it is offered into evidence at any public hearing | 0017| on the matter. | 0018| C. The respondent shall file an answer within thirty | 0019| days after service of the complaint. | 0020| D. Upon filing the complaint the board shall appoint | 0021| a hearing examiner to conduct further proceedings. | 0022| E. The hearing examiner shall conduct proceedings in | 0023| accordance with the Gaming Control Act and the regulations | 0024| adopted by the board. At the conclusion of the proceedings, the | 0025| hearing examiner may recommend that the board take any | 0001| appropriate action, including revocation, suspension, limitation | 0002| or conditioning of a license or imposition of a fine not to | 0003| exceed fifty thousand dollars ($50,000) for each violation or | 0004| any combination or all of the foregoing actions. | 0005| F. The hearing examiner shall prepare a written | 0006| decision containing his recommendation to the board and shall | 0007| serve it on all parties. Any respondent who disagrees with the | 0008| hearing examiner's recommendation may request the board, within | 0009| ten days of service of the recommendation, to review the | 0010| recommendation. | 0011| G. Upon proper request, the board shall review the | 0012| recommendation. The board may remand the case to the hearing | 0013| examiner for the presentation of additional evidence upon a | 0014| showing of good cause why such evidence could not have been | 0015| presented at the previous hearing. | 0016| H. The board shall by a majority vote accept, reject | 0017| or modify the recommendation. | 0018| I. If the board limits, conditions, suspends or | 0019| revokes any license or imposes a fine or limits, conditions, | 0020| suspends or revokes any registration, finding of suitability or | 0021| prior approval, it shall issue a written order specifying its | 0022| action. | 0023| J. The board's order is effective unless and until | 0024| reversed upon judicial review, except that the board may stay | 0025| its order pending a rehearing or judicial review upon such terms | 0001| and conditions as it deems proper. | 0002| Section 35. [NEW MATERIAL] EMERGENCY ORDERS OF | 0003| BOARD.--The board may issue an emergency order for suspension, | 0004| limitation or conditioning of a license, registration, finding | 0005| of suitability or work permit or may issue an emergency order | 0006| requiring a gaming operator licensee to exclude an individual | 0007| licensee from the premises of the gaming operator licensee's | 0008| gaming establishment or not to pay an individual licensee any | 0009| remuneration for services or any profits, income or accruals on | 0010| his investment in the licensed gaming establishment in the | 0011| following manner: | 0012| A. an emergency order may be issued only when the | 0013| board believes that: | 0014| (1) a licensee has willfully failed to report, | 0015| pay or truthfully account for and pay over any fee imposed by | 0016| the provisions of the Gaming Control Act or willfully attempted | 0017| in any manner to evade or defeat any fee or payment thereof; | 0018| (2) a licensee or gaming employee has cheated | 0019| at a game; or | 0020| (3) the emergency order is necessary for the | 0021| immediate preservation of the public peace, health, safety, | 0022| morals, good order or general welfare; | 0023| B. the emergency order shall set forth the grounds | 0024| upon which it is issued, including a statement of facts | 0025| constituting the alleged emergency necessitating such action; | 0001| C. the emergency order is effective immediately upon | 0002| issuance and service upon the licensee or resident agent of the | 0003| licensee or gaming employee or, in cases involving registration | 0004| or findings of suitability, upon issuance and service upon the | 0005| person or entity involved or resident agent of the entity | 0006| involved; the emergency order may suspend, limit, condition or | 0007| take other action in relation to the license of one or more | 0008| persons in an operation without affecting other individual | 0009| licensees or the gaming operator licensee. The emergency order | 0010| remains effective until further order of the board or final | 0011| disposition of the case; and | 0012| D. within five days after issuance of an emergency | 0013| order, the board shall cause a complaint to be filed and served | 0014| upon the person or entity involved; thereafter, the person or | 0015| entity against whom the emergency order has been issued and | 0016| served is entitled to a hearing before the board and to judicial | 0017| review of the decision and order of the board in accordance with | 0018| the provisions of the board's regulations. | 0019| Section 36. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0020| CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.-- | 0021| A. The board shall by regulation provide for the | 0022| establishment of a list of persons who are to be excluded or | 0023| ejected from a gaming establishment. The list may include any | 0024| person whose presence in the gaming establishment is determined | 0025| by the board to pose a threat to the public interest or licensed | 0001| gaming activities. | 0002| B. In making the determination in Subsection A of | 0003| this section, the board may consider a: | 0004| (1) prior conviction for a crime that is a | 0005| felony under state or federal law, a crime involving moral | 0006| turpitude or a violation of the gaming laws of any jurisdiction; | 0007| (2) violation or conspiracy to violate the | 0008| provisions of the Gaming Control Act relating to: | 0009| (a) the failure to disclose an interest in | 0010| a gaming activity for which the person must obtain a license; or | 0011| (b) willful evasion of fees or taxes; | 0012| (3) notorious or unsavory reputation that would | 0013| adversely affect public confidence and trust that the gaming | 0014| industry is free from criminal or corruptive influences; or | 0015| (4) written order of any other governmental | 0016| agency in this state or any other state that authorizes the | 0017| exclusion or ejection of the person from an establishment at | 0018| which gaming is conducted. | 0019| C. A gaming operator licensee has the right, without | 0020| a list established by the board, to exclude or eject a person | 0021| from its gaming establishment who poses a threat to the public | 0022| interest or for any business reason. | 0023| D. Race, color, creed, national origin or ancestry, | 0024| age, disability or sex shall not be grounds for placing the name | 0025| of a person on the list or for exclusion or ejection under | 0001| Subsection A or C of this section. | 0002| Section 37. [NEW MATERIAL] INTERNAL CONTROL SYSTEMS.-- | 0003| A. Each gaming operator licensee shall adopt | 0004| internal control systems that shall include provisions for: | 0005| (1) safeguarding its assets and revenues, | 0006| especially the recording of cash and evidences of | 0007| indebtedness; | 0008| (2) making and maintaining reliable records, | 0009| accounts and reports of transactions, operations and events, | 0010| including reports to the board; and | 0011| (3) a system by which the amount wagered on | 0012| each gaming machine and the amount paid out by each gaming | 0013| machine is recorded on a daily basis, which results may be | 0014| obtained by the board by appropriate means as described in | 0015| regulations adopted by the board; all manufacturers are | 0016| required to have such a system available for gaming operators | 0017| for the gaming machines that it supplies for use in New | 0018| Mexico, and all distributors shall make such a system | 0019| available to gaming operators. | 0020| B. The internal control system shall be designed | 0021| to reasonably ensure that: | 0022| (1) assets are safeguarded; | 0023| (2) financial records are accurate and | 0024| reliable; | 0025| (3) transactions are performed only in | 0001| accordance with management's general or specific | 0002| authorization; | 0003| (4) transactions are recorded adequately to | 0004| permit proper reporting of gaming revenue and of fees and | 0005| taxes and to maintain accountability of assets; | 0006| (5) access to assets is allowed only in | 0007| accordance with management's specific authorization; | 0008| (6) recorded accountability for assets is | 0009| compared with actual assets at reasonable intervals and | 0010| appropriate action is taken with respect to any | 0011| discrepancies; and | 0012| (7) functions, duties and responsibilities | 0013| are appropriately segregated and performed in accordance with | 0014| sound accounting and management practices by competent, | 0015| qualified personnel. | 0016| C. A gaming operator licensee and an applicant for | 0017| a gaming operator's license shall describe, in the manner the | 0018| board may approve or require, its administrative and | 0019| accounting procedures in detail in a written system of | 0020| internal control. A gaming operator licensee and an | 0021| applicant for a gaming operator's license shall submit a copy | 0022| of its written system to the board. Each written system | 0023| shall include: | 0024| (1) an organizational chart depicting | 0025| appropriate segregation of functions and responsibilities; | 0001| (2) a description of the duties and | 0002| responsibilities of each position shown on the organizational | 0003| chart; | 0004| (3) a detailed, narrative description of the | 0005| administrative and accounting procedures designed to satisfy | 0006| the requirements of Subsection A of this section; | 0007| (4) a written statement signed by the | 0008| licensee's chief financial officer and either the licensee's | 0009| chief executive officer or a licensed owner attesting that | 0010| the system satisfies the requirements of this section; | 0011| (5) if the written system is submitted by an | 0012| applicant, a letter from an independent certified public | 0013| accountant stating that the applicant's written system has | 0014| been reviewed by the accountant and complies with the | 0015| requirements of this section; and | 0016| (6) other items as the board may require. | 0017| D. The board shall adopt and publish minimum | 0018| standards for internal control procedures. | 0019| Section 38. [NEW MATERIAL] GAMING EMPLOYEES-- | 0020| ISSUANCE OF WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0021| A. A person shall not be employed as a gaming | 0022| employee unless the person holds a valid work permit issued | 0023| by the board. | 0024| B. A work permit shall be issued and may be | 0025| revoked by the board as provided in regulations adopted by | 0001| the board. | 0002| C. Any person whose work permit has been denied or | 0003| revoked may seek judicial review. | 0004| Section 39. [NEW MATERIAL] AGE REQUIREMENT FOR | 0005| PATRONS AND GAMING EMPLOYEES.--A person under the age of | 0006| twenty-one years shall not: | 0007| A. play, be allowed to play, place wagers on or | 0008| collect winnings from, whether personally or through an | 0009| agent, any game authorized or offered to play pursuant to the | 0010| Gaming Control Act; or | 0011| B. be employed as a gaming employee. | 0012| Section 40. [NEW MATERIAL] CALCULATION OF NET TAKE- | 0013| -CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take | 0014| from gaming machines, the actual cost to the licensee of any | 0015| personal property distributed to a patron as the result of a | 0016| legitimate wager may be deducted as a loss, except for travel | 0017| expenses, food, refreshments, lodging or services. For the | 0018| purposes of this section, "as the result of a legitimate | 0019| wager" means that the patron must make a wager prior to | 0020| receiving the personal property, regardless of whether the | 0021| receipt of the personal property is dependent on the outcome | 0022| of the wager. | 0023| Section 41. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0024| LICENSE FEES.--A political subdivision of the state shall not | 0025| impose a license fee or tax on any licensee licensed pursuant | 0001| to the Gaming Control Act except for the imposition of | 0002| property taxes. | 0003| Section 42. [NEW MATERIAL] USE OF CHIPS, TOKENS OR | 0004| LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be | 0005| conducted with chips, tokens or other similar objects | 0006| approved by the board or with the legal currency of the | 0007| United States. | 0008| Section 43. [NEW MATERIAL] COMMUNICATION OR | 0009| DOCUMENT OF APPLICANT OR LICENSEE ABSOLUTELY PRIVILEGED-- | 0010| PRIVILEGE NOT WAIVED--DISCLOSURE OF PRIVILEGED INFORMATION | 0011| PROHIBITED.-- | 0012| A. Any communication or document of an applicant | 0013| or licensee is absolutely privileged and does not impose | 0014| liability for defamation or constitute a ground for recovery | 0015| in any civil action if it is required by: | 0016| (1) law or the regulations of the board; or | 0017| (2) a subpoena issued by the board to be made | 0018| or transmitted to the board. | 0019| B. The privilege created pursuant to Subsection A | 0020| of this section is not waived or lost because the document or | 0021| communication is disclosed to the board. | 0022| C. Notwithstanding the powers granted to the board | 0023| by the Gaming Control Act, the board: | 0024| (1) may release or disclose any privileged | 0025| information, documents or communications provided by an | 0001| applicant or licensee only with the prior written consent of | 0002| the applicant or licensee or pursuant to a lawful court order | 0003| after timely notice of the proceedings has been given to the | 0004| applicant or licensee; | 0005| (2) shall maintain all privileged | 0006| information, documents and communications in a secure place | 0007| accessible only to members of the board; and | 0008| (3) shall adopt procedures and regulations to | 0009| protect the privileged nature of information, documents and | 0010| communications provided by an applicant or licensee. | 0011| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0012| PRIVILEGED INFORMATION.--An application to a court for an | 0013| order requiring the board to release any information declared | 0014| by law to be confidential shall be made only by petition in | 0015| district court. A hearing shall be held on the petition not | 0016| less than ten days and not more than twenty days after the | 0017| date of service of the petition on the board, the attorney | 0018| general and all persons who may be affected by the entry of | 0019| that order. A copy of the petition, all papers filed in | 0020| support of it and a notice of hearing shall be served. | 0021| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0022| SYSTEM.--The board shall develop and operate a central system | 0023| into which all licensed gaming machines are connected. The | 0024| central system shall be capable of: | 0025| A. monitoring continuously, retrieving and | 0001| auditing the operations, financial data and program | 0002| information of the network; | 0003| B. disabling from operation or play any gaming | 0004| machine in the network that does not comply with the | 0005| provisions of the Gaming Control Act or the regulations of | 0006| the board; | 0007| C. communicating, through program modifications or | 0008| other means equally effective, with all gaming machines | 0009| licensed by the board; | 0010| D. interacting, reading, communicating and linking | 0011| with gaming machines from a broad spectrum of manufacturers | 0012| and associated equipment; and | 0013| E. providing linkage to each gaming machine in the | 0014| network at a reasonable and affordable cost to the state and | 0015| the gaming operator licensee and allowing for program | 0016| modifications and system updating at a reasonable cost. | 0017| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.- | 0018| -To be eligible for licensure, each gaming machine shall meet | 0019| all specifications established by regulations of the board | 0020| and: | 0021| A. be unable to be manipulated in a manner that | 0022| affects the random probability of winning plays or in any | 0023| other manner determined by the board to be undesirable; | 0024| B. have at least one mechanism that accepts coins | 0025| or currency, but does not accept bills of denominations | 0001| greater than twenty dollars ($20.00); | 0002| C. be capable of having play suspended through the | 0003| central system by the executive director until he resets the | 0004| gaming machine; | 0005| D. house nonresettable mechanical and electronic | 0006| meters within a readily accessible locked area of the gaming | 0007| machine that maintain a permanent record of all money | 0008| inserted into the machine, all cash payouts of winnings, all | 0009| refunds of winnings, all credits played for additional games | 0010| and all credits won by players; | 0011| E. have a printing mechanism capable of printing | 0012| out, at the request of an the executive director, readings on | 0013| the electronic meters of the machine; | 0014| F. be capable of printing a ticket voucher stating | 0015| the value of a cash prize won by the player at the completion | 0016| of each game, the date and time of day the game was played in | 0017| a twenty-four-hour format showing hours and minutes, the | 0018| machine serial number, the sequential number of the ticket | 0019| voucher and an encrypted validation number for determining | 0020| the validity of a winning ticket voucher; | 0021| G. be capable of being linked to the board's | 0022| central system for the purpose of being monitored | 0023| continuously as required by the board; | 0024| H. provide for a payback value for each credit | 0025| wagered, determined over time, of not less than eighty | 0001| percent or more than ninety-six percent; | 0002| I. offer only games authorized and examined by the | 0003| board; and | 0004| J. display the gaming machine license issued for | 0005| that machine in an easily accessible place, before and during | 0006| the time that a machine is available for use. | 0007| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0008| ODDS.--The odds of winning on each gaming machine shall be | 0009| posted on or near each gaming machine. The board shall | 0010| provide the manner in which the odds shall be determined and | 0011| posted by regulation. | 0012| Section 48. [NEW MATERIAL] EXAMINATION OF GAMING | 0013| DEVICES--COST ALLOCATION.-- | 0014| A. The board shall examine prototypes of gaming | 0015| devices of manufacturers seeking a license as required. | 0016| B. The board by regulation shall require a | 0017| manufacturer to pay the anticipated actual costs of the | 0018| examination of a gaming device in advance and, after the | 0019| completion of the examination, shall refund overpayments or | 0020| charge and collect amounts sufficient to reimburse the board | 0021| for underpayment of actual costs. | 0022| C. The board may contract for the examination of | 0023| gaming devices to meet the requirements of this section. | 0024| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION-- | 0025| ADMINISTRATION.-- | 0001| A. An excise tax is imposed on the privilege of | 0002| engaging in gaming activities in the state. This tax shall | 0003| be known as the "gaming tax". | 0004| B. The gaming tax is an amount equal to ten | 0005| percent of the gross receipts of manufacturer licensees from | 0006| the sale or other transfer of gaming devices in or into the | 0007| state; ten percent of the gross receipts of distributor | 0008| licensees from the distribution of gaming devices in the | 0009| state; and twenty-five percent of the net take of every | 0010| gaming operator licensee. | 0011| C. The gaming tax imposed on a licensee is in lieu | 0012| of all state and local gross receipts taxes on that portion | 0013| of the licensee's gross receipts attributable to gaming | 0014| activities. | 0015| D. The gaming tax shall be administered and | 0016| collected by the taxation and revenue department in | 0017| cooperation with the board. The provisions of the Tax | 0018| Administration Act apply to the collection and administration | 0019| of the tax. | 0020| E. In addition to the gaming tax, a gaming | 0021| operator licensee that is a racetrack shall pay twenty | 0022| percent of the net take to purses to be distributed in | 0023| accordance with regulations adopted by the state racing | 0024| commission. A racetrack gaming operator licensee shall spend | 0025| no less than one-fourth of one percent of the net take of its | 0001| gaming machines to fund or support programs for the treatment | 0002| and assistance of compulsive gamblers. | 0003| Section 50. [NEW MATERIAL] CIVIL ACTIONS TO | 0004| RESTRAIN VIOLATIONS OF GAMING CONTROL ACT.-- | 0005| A. The attorney general, at the request of the | 0006| board, may institute a civil action in any court of this | 0007| state against any person to enjoin a violation of a | 0008| prohibitory provision of the Gaming Control Act. | 0009| B. An action brought against a person pursuant to | 0010| this section shall not preclude a criminal action or | 0011| administrative proceeding against that person. | 0012| Section 51. [NEW MATERIAL] TESTIMONIAL IMMUNITY.-- | 0013| A. The board may order a person to answer a | 0014| question or produce evidence and confer immunity pursuant to | 0015| this section. If, in the course of an investigation or | 0016| hearing conducted pursuant to the Gaming Control Act, a | 0017| person refuses to answer a question or produce evidence on | 0018| the ground that he will be exposed to criminal prosecution by | 0019| doing so, then the board may by approval of three members, | 0020| after the written approval of the attorney general, issue an | 0021| order to answer or to produce evidence with immunity. | 0022| B. If a person complies with an order issued | 0023| pursuant to Subsection A of this section, he shall be immune | 0024| from having a responsive answer given or responsive evidence | 0025| produced, or evidence derived from either, used to expose him | 0001| to criminal prosecution, except that the person may be | 0002| prosecuted for any perjury committed in the answer or | 0003| production of evidence and may also be prosecuted for | 0004| contempt for failing to act in accordance with the order of | 0005| the board. An answer given or evidence produced pursuant to | 0006| the grant of immunity authorized by this section may be used | 0007| against the person granted immunity in a prosecution of the | 0008| person for perjury or a proceeding against him for contempt. | 0009| Section 52. [NEW MATERIAL] CRIME--MANIPULATION OF | 0010| GAMING DEVICE WITH INTENT TO CHEAT.--A person who manipulates, | 0011| with the intent to cheat, any component of a gaming device in a | 0012| manner contrary to the designed and normal operational purpose | 0013| of the component, including varying the pull of the handle of a | 0014| 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, is guilty of a fourth degree felony and | 0017| shall be sentenced pursuant to the provisions of Section 31-18- | 0018| 15 NMSA 1978. | 0019| Section 53. [NEW MATERIAL] CRIME--USE OF COUNTERFEIT | 0020| OR UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN | 0021| DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0022| A. A person who, in playing any game designed to be | 0023| played with, to receive or to be operated by tokens approved by | 0024| the board or by lawful currency of the United States, knowingly | 0025| uses tokens other than those approved by the board, uses | 0001| currency that is not lawful currency of the United States or | 0002| uses currency not of the same denomination as the currency | 0003| intended to be used in that game is guilty of a third degree | 0004| felony and shall be sentenced pursuant to the provisions of | 0005| Section 31-18-15 NMSA 1978. | 0006| B. A person who knowingly has on his person or in | 0007| his possession within a gaming establishment any device intended | 0008| to be used by him to violate the provisions of the Gaming | 0009| Control Act is guilty of a third degree felony and shall be | 0010| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0011| 1978. | 0012| C. A person, other than a duly authorized employee | 0013| of a gaming operator acting in furtherance of his employment | 0014| within a gaming establishment, who knowingly has on his person | 0015| or in his possession within a gaming establishment any key or | 0016| device known by him to have been designed for the purpose of and | 0017| suitable for opening, entering or affecting the operation of any | 0018| game, dropbox or any electronic or mechanical device connected | 0019| to the game or dropbox or for removing money or other contents | 0020| from them is guilty of a third degree felony and shall be | 0021| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0022| 1978. | 0023| D. A person who knowingly and with intent to use | 0024| them for cheating has on his person or in his possession any | 0025| paraphernalia for manufacturing slugs is guilty of a third | 0001| degree felony and shall be sentenced pursuant to the provisions | 0002| of Section 31-18-15 NMSA 1978. As used in this subsection, | 0003| "paraphernalia for manufacturing slugs" means the equipment, | 0004| products and materials that are intended for use or designed for | 0005| use in manufacturing, producing, fabricating, preparing, | 0006| testing, analyzing, packaging, storing or concealing a | 0007| counterfeit facsimile of tokens approved by the board or a | 0008| lawful coin of the United States, the use of which is unlawful | 0009| pursuant to the Gaming Control Act. The term includes: | 0010| (1) lead or lead alloy; | 0011| (2) molds, forms or similar equipment capable | 0012| of producing a likeness of a gaming token or coin; | 0013| (3) melting pots or other receptacles; | 0014| (4) torches; and | 0015| (5) tongs, trimming tools or other similar | 0016| equipment. | 0017| E. Possession of more than two items of the | 0018| equipment, products or material described in Subsection D of | 0019| this section permits a rebuttable inference that the possessor | 0020| intended to use them for cheating. | 0021| Section 54. [NEW MATERIAL] CRIME--CHEATING.--A person | 0022| who knowingly cheats at any game is guilty of a fourth degree | 0023| felony and upon conviction shall be sentenced pursuant to the | 0024| provisions of Section 31-18-15 NMSA 1978. | 0025| Section 55. [NEW MATERIAL] CRIME--POSSESSION OF GAMING | 0001| DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A | 0002| person who knowingly possesses any gaming device that has been | 0003| manufactured, sold or distributed in violation of the Gaming | 0004| Control Act is guilty of a fourth degree felony and shall be | 0005| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0006| 1978. | 0007| Section 56. [NEW MATERIAL] CRIME--REPORTING AND RECORD | 0008| VIOLATIONS--PENALTY.--A person who, in an application, book or | 0009| record required to be maintained by the Gaming Control Act or by | 0010| a regulation adopted under that act or in a report required to | 0011| be submitted by that act or a regulation adopted under that act, | 0012| knowingly makes a statement or entry that is false or misleading | 0013| or fails to maintain or make an entry the person knows is | 0014| required to be maintained or made is guilty of a fourth degree | 0015| felony and shall be sentenced pursuant to the provisions of | 0016| Section 31-18-15 NMSA 1978. | 0017| Section 57. [NEW MATERIAL] CRIME--UNLAWFUL | 0018| MANUFACTURE, SALE, DISTRIBUTION, MARKING, ALTERING OR | 0019| MODIFICATION OF DEVICES ASSOCIATED WITH GAMING--UNLAWFUL | 0020| INSTRUCTION--PENALTY.-- | 0021| A. A person who manufactures, sells or distributes a | 0022| device that is intended by him to be used to violate any | 0023| provision of the Gaming Control Act is guilty of a fourth degree | 0024| felony and shall be sentenced pursuant to the provisions of | 0025| Section 31-18-15 NMSA 1978. | 0001| B. A person who marks, alters or otherwise modifies | 0002| any gaming device in a manner that affects the result of a wager | 0003| by determining win or loss or alters the normal criteria of | 0004| random selection that affects the operation of a game or that | 0005| determines the outcome of a game is guilty of a fourth degree | 0006| felony and shall be sentenced pursuant to the provisions of | 0007| Section 31-18-15 NMSA 1978. | 0008| Section 58. [NEW MATERIAL] UNDERAGE GAMING--PENALTY | 0009| FOR PERMITTING OR PARTICIPATION.-- | 0010| A. A person who knowingly permits an individual who | 0011| the person knows is younger than twenty-one years of age to | 0012| participate in gaming is guilty of a misdemeanor and shall be | 0013| sentenced pursuant to the provisions of Section 31-19-1 NMSA | 0014| 1978. | 0015| B. An individual who participates in gaming when he | 0016| is younger than twenty-one years of age at the time of | 0017| participation is guilty of a misdemeanor and shall be sentenced | 0018| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0019| Section 59. [NEW MATERIAL] CRIME--GENERAL PENALTIES | 0020| FOR VIOLATION OF ACT.--A person who willfully violates, attempts | 0021| to violate or conspires to violate any of the provisions of the | 0022| Gaming Control Act specifying prohibited acts, the | 0023| classification of which is not specifically stated in that act, | 0024| is guilty of a misdemeanor and shall be sentenced pursuant to | 0025| the provisions of Section 31-19-1 NMSA 1978. | 0001| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING | 0002| OF A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON | 0003| LIABILITY--POSTING OF NOTICE.-- | 0004| A. A gaming operator licensee or its officers, | 0005| employees or agents may question a person in its gaming | 0006| establishment suspected of violating any of the provisions of | 0007| the Gaming Control Act. No gaming operator licensee or any of | 0008| its officers, employees or agents is criminally or civilly | 0009| liable: | 0010| (1) on account of any such questioning; or | 0011| (2) for reporting to the board or law | 0012| enforcement authorities the person suspected of the violation. | 0013| B. A gaming operator licensee or any of its | 0014| officers, employees or agents who has reasonable cause for | 0015| believing that there has been a violation of the Gaming Control | 0016| Act in the gaming establishment by a person may detain that | 0017| person in the gaming establishment in a reasonable manner and | 0018| for a reasonable length of time. Such a detention does not | 0019| render the gaming operator licensee or his officers, employees | 0020| or agents criminally or civilly liable unless it is established | 0021| by clear and convincing evidence detention was unreasonable | 0022| under the circumstances. | 0023| C. No gaming operator licensee or its officers, | 0024| employees or agents are entitled to the immunity from liability | 0025| provided for in Subsection B of this section unless there is | 0001| displayed in a conspicuous place in the gaming establishment a | 0002| notice in boldface type clearly legible and in substantially | 0003| this form: | 0004| "Any gaming operator licensee or any of his officers, | 0005| employees or agents who have reasonable cause for | 0006| believing that any person has violated any provision | 0007| of the Gaming Control Act prohibiting cheating in | 0008| gaming may detain that person in the establishment.". | 0009| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0010| BOARD ACTION.-- | 0011| A. Any person aggrieved by an action taken by the | 0012| board or one of its agents may request and receive a hearing for | 0013| the purpose of reviewing the action. To obtain a hearing the | 0014| aggrieved person shall file a request for hearing with the board | 0015| within thirty days after the date the action is taken. Failure | 0016| to file the request within the specified time is an irrevocable | 0017| waiver of the right to a hearing, and the action complained of | 0018| shall be final with no further right to review, either | 0019| administratively or by a court. | 0020| B. The board shall adopt procedural regulations to | 0021| govern the procedures to be followed in administrative hearings | 0022| pursuant to the provisions of this section. At a minimum, the | 0023| regulations shall provide: | 0024| (1) for the hearings to be public; | 0025| (2) for the appointment of a hearing officer to | 0001| conduct the hearing and make his recommendation to the board not | 0002| more than ten days after the completion of the hearing; | 0003| (3) procedures for discovery; | 0004| (4) assurance that procedural due process | 0005| requirements are satisfied; | 0006| (5) for the maintenance of a record of the | 0007| hearing proceedings and assessment of costs of any transcription | 0008| of testimony that is required for judicial review purposes; and | 0009| (6) for the hearing to be held in Santa Fe for | 0010| enforcement hearings and hearings on actions of statewide | 0011| application, and to be held in the place or area affected for | 0012| enforcement hearings and hearings on actions of limited local | 0013| concern. | 0014| C. Actions taken by the board after a hearing | 0015| pursuant to the provisions of this section shall be: | 0016| (1) written and shall state the reasons for the | 0017| action; | 0018| (2) made public when taken; | 0019| (3) communicated to all persons who have made a | 0020| written request for notification of the action taken; and | 0021| (4) taken not more than thirty days after the | 0022| submission of the hearing officer's report to the board. | 0023| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0024| ADMINISTRATIVE ACTIONS.-- | 0025| A. Any person adversely affected by an action taken | 0001| by the board after review pursuant to the provisions of Section | 0002| 59 of the Gaming Control Act may appeal the action to the court | 0003| of appeals. The appeal shall be on the record made at the | 0004| hearing. To support his appeal, the appellant shall make | 0005| arrangements with the board for a sufficient number of | 0006| transcripts of the record of the hearing on which the appeal is | 0007| based. The appellant shall pay for the preparation of the | 0008| transcripts. | 0009| B. On appeal, the court of appeals shall set aside | 0010| the administrative action only if it is found to be: | 0011| (1) arbitrary, capricious or an abuse of | 0012| discretion; | 0013| (2) not supported by substantial evidence in | 0014| the whole record; or | 0015| (3) otherwise not in accordance with law. | 0016| Section 63. [NEW MATERIAL] BOARD TO STUDY POSSIBLE | 0017| EXPANSION OF GAMING UNDER ACT--CONSIDERATION OF NONPROFIT | 0018| ORGANIZATIONS.--From the effective date of the Gaming Control | 0019| Act through December 1997, the board, in addition to its other | 0020| duties pursuant to that act, shall study the feasibility and | 0021| advisability of expanding the scope of gaming to include | 0022| nonprofit organizations as licensed gaming operators. The board | 0023| shall report the results of its study and any recommendations it | 0024| develops to the forty-third legislature by December 15, 1997. | 0025| If the board recommends expansion to include nonprofit | 0001| organizations, it shall make specific recommendations on the | 0002| imposition of conditions and requirements to be met by a | 0003| nonprofit organization gaming operator licensee. | 0004| Section 64. A new section of the New Mexico Finance | 0005| Authority Act is enacted to read: | 0006| "[NEW MATERIAL] NATIVE AMERICAN PROJECT REVOLVING FUND- | 0007| -PURPOSE--ADMINISTRATION.-- | 0008| A. The "Native American project revolving fund" is | 0009| created within the authority. The fund shall be administered by | 0010| the authority as a separate account, but may consist of such | 0011| subaccounts as the authority deems necessary to carry out the | 0012| purposes of the fund. The authority is authorized to establish | 0013| procedures required to administer the fund in accordance with | 0014| the New Mexico Finance Authority Act. | 0015| B. Except as otherwise provided in this section, | 0016| money from payments of principal of and interest on loans and | 0017| payments of principal of and interest on securities held by the | 0018| authority for Native American projects shall be deposited in the | 0019| Native American project revolving fund. The fund shall also | 0020| consist of any other money appropriated, distributed or | 0021| otherwise allocated to the fund for the purpose of financing | 0022| Native American projects. | 0023| C. Money appropriated to pay administrative costs, | 0024| money available for administrative costs from other sources and | 0025| money from payments of interest on loans or securities held by | 0001| the authority, including payments of interest on loans and | 0002| securities held by the authority for Native American projects, | 0003| that represents payments for administrative costs shall not be | 0004| deposited in the Native American project revolving fund but | 0005| shall be deposited in a separate account of the authority and | 0006| may be used by the authority to meet administrative costs of the | 0007| authority. | 0008| D. Except as otherwise provided in this section, | 0009| money in the Native American project revolving fund is | 0010| appropriated to the authority to make loans or grants and to | 0011| purchase or sell securities to assist qualified Native American | 0012| entities in financing Native American projects in accordance | 0013| with the New Mexico Finance Authority Act. | 0014| E. Money in the Native American project revolving | 0015| fund not needed for immediate disbursement, including money held | 0016| in reserve, may be deposited with the state treasurer for | 0017| short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or | 0018| may be invested in direct and general obligations of or | 0019| obligations fully and unconditionally guaranteed by the United | 0020| States, obligations issued by agencies of the United States, | 0021| obligations of this state or any political subdivision of the | 0022| state, interest-bearing time deposits, commercial paper issued | 0023| by corporations organized and operating in the United States and | 0024| rated "prime" quality by a national rating service, other | 0025| investments permitted by Section 6-10-10 NMSA 1978 or as | 0001| otherwise provided by the trust indenture or bond resolution, if | 0002| money is pledged for or secures payment of bonds issued by the | 0003| authority. | 0004| F. The authority shall establish fiscal controls and | 0005| accounting procedures that are sufficient to assure proper | 0006| accounting for Native American project revolving fund payments, | 0007| disbursements and balances. | 0008| G. As used in this section, "qualified Native | 0009| American entity" means an Indian nation, tribe or pueblo located | 0010| wholly or partially in New Mexico, including a political | 0011| subdivision or wholly owned enterprise of an Indian nation, | 0012| tribe or pueblo, and "Native American project" means any | 0013| economic development, utility, community facility or other | 0014| infrastructure project for a qualified Native American entity. | 0015| H. To implement a program to assist qualified | 0016| entities in financing public projects, the authority may: | 0017| (1) make loans to qualified Native American | 0018| entities that establish one or more dedicated sources of revenue | 0019| to repay the loan from the authority; | 0020| (2) make, enter into and enforce all contracts | 0021| necessary, convenient or desirable for the purposes of the | 0022| authority or pertaining to: | 0023| (a) a loan to a qualified Native American | 0024| entity; | 0025| (b) a grant to a qualified Native American | 0001| entity; | 0002| (c) a purchase or sale of securities | 0003| individually or on a pooled basis; or | 0004| (d) the performance of its duties and | 0005| execution of any of its powers under the New Mexico Finance | 0006| Authority Act; | 0007| (3) purchase or hold securities at prices and | 0008| in a manner the authority considers advisable, giving due | 0009| consideration to the financial capability of the qualified | 0010| Native American entity, and sell securities acquired or held by | 0011| it at prices without relation to cost and in a manner the | 0012| authority considers advisable; | 0013| (4) prescribe the form of application or | 0014| procedure required of a qualified Native American entity for a | 0015| loan or purchase of its securities, fix the terms and conditions | 0016| of the loan or purchase and enter into agreements with qualified | 0017| entities with respect to loans or purchases; | 0018| (5) charge for its costs and services in review | 0019| or consideration of a proposed loan to a qualified Native | 0020| American entity or purchase by the authority of securities, | 0021| whether or not the loan is made or the securities purchased; | 0022| (6) fix and establish terms and provisions with | 0023| respect to: | 0024| (a) a purchase of securities by the | 0025| authority, including date and maturities of the securities; | 0001| (b) redemption or payment before maturity; | 0002| and | 0003| (c) any other matters that in connection | 0004| with the purchase are necessary, desirable or advisable in the | 0005| judgment of the authority; | 0006| (7) to the extent permitted under its contracts | 0007| with the holders of bonds of the authority, consent to | 0008| modification of the rate of interest, time and payment of | 0009| installment of principal or interest, security or any other term | 0010| of a bond, contract or agreement of any kind to which the | 0011| authority is a party; | 0012| (8) in connection with the purchase of any | 0013| securities, consider the ability of the qualified Native | 0014| American entity to secure financing from other sources and the | 0015| costs of that financing and the particular public project or | 0016| purpose to be financed or refinanced with the proceeds of the | 0017| securities to be purchased by the authority; | 0018| (9) acquire and hold title to or leasehold | 0019| interest in real and personal property and to sell, convey or | 0020| lease that property for the purpose of satisfying a default or | 0021| enforcing the provisions of a loan agreement; and | 0022| (10) in the event of default by a qualified | 0023| entity, enforce its rights by suit or mandamus or may use all | 0024| other available remedies under state law. | 0025| I. The authority may issue and sell bonds in | 0001| principal amounts it considers necessary to provide sufficient | 0002| funds for any purpose of this section, including: | 0003| (1) purchase of securities; | 0004| (2) making loans through the purchase of | 0005| securities; | 0006| (3) making grants for Native American projects; | 0007| (4) the construction of Native American | 0008| projects; | 0009| (5) the payment, funding or refunding of the | 0010| principal of or interest or redemption premiums on bonds issued | 0011| by the authority, whether the bonds or interest to be paid, | 0012| funded or refunded have or have not become due; | 0013| (6) the establishment or increase of reserves | 0014| or sinking funds to secure or to pay principal, premium, if any, | 0015| or interest on bonds; and | 0016| (7) all other costs or expenses of the | 0017| authority incident to and necessary or convenient to carry out | 0018| the provisions of this section. | 0019| J. Except as otherwise provided in this section, all | 0020| bonds or other obligations issued by the authority shall be | 0021| obligations of the authority payable solely from the revenues, | 0022| income, fees, charges or funds of the authority that may, | 0023| pursuant to the provisions of the New Mexico Finance Authority | 0024| Act, be pledged to the payment of such obligations, and the | 0025| bonds or other obligations shall not create an obligation, debt | 0001| or liability of the state. No breach of any pledge, obligation | 0002| or agreement of the authority shall impose a pecuniary liability | 0003| or a charge upon the general credit or taxing power of the state | 0004| or any political subdivision of the state. | 0005| K. As security for the payment of the principal, | 0006| interest or premium, if any, on bonds issued by the authority, | 0007| the authority is authorized to pledge, transfer and assign: | 0008| (1) any obligation of a qualified Native | 0009| American entity that is payable to the authority; | 0010| (2) the security for the qualified Native | 0011| American entity's obligations; | 0012| (3) money in the Native American project | 0013| revolving fund; | 0014| (4) any grant, subsidy or contribution from the | 0015| United States or any of its agencies or instrumentalities; or | 0016| (5) any income, revenues, funds or other money | 0017| of the authority from any other source authorized for such | 0018| pledge, transfer or assignment. | 0019| L. Bonds issued by the authority pursuant to this | 0020| section may be issued in accordance with the New Mexico Finance | 0021| Authority Act." | 0022| Section 65. A new section of the Tax Administration Act | 0023| is enacted to read: | 0024| "[NEW MATERIAL] DISTRIBUTION OF REVENUE RECEIVED | 0025| PURSUANT TO INDIAN GAMING REVENUE-SHARING AGREEMENT.-- | 0001| A. A distribution of thirty-three and one-third | 0002| percent of the net receipts attributable to amounts received by | 0003| the state pursuant to the provisions of any Indian gaming | 0004| revenue-sharing agreement shall be made to the Native American | 0005| project revolving fund administered by the New Mexico finance | 0006| authority. | 0007| B. The state pledges to and agrees with the holders | 0008| of any bonds or notes issued by the New Mexico finance authority | 0009| and payable from the revenue source specified in Subsection A of | 0010| this section that it will not limit, reduce or alter the | 0011| distribution of the specified net receipts until the bonds or | 0012| notes with any interest are fully met and discharged. The New | 0013| Mexico finance authority is authorized to include this pledge | 0014| and agreement of the state in any agreement with the holders of | 0015| the bonds or notes." | 0016| Section 66. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0017| Chapter 248, Section 2, as amended) is amended to read: | 0018| "7-1-2. APPLICABILITY.--The Tax Administration Act | 0019| applies to and governs: | 0020| A. the administration and enforcement of the | 0021| following taxes or tax acts as they now exist or may hereafter | 0022| be amended: | 0023| (1) Income Tax Act; | 0024| (2) Withholding Tax Act; | 0025| (3) Gross Receipts and Compensating Tax Act and | 0001| any state gross receipts tax; | 0002| (4) Liquor Excise Tax Act; | 0003| (5) Local Liquor Excise Tax Act; | 0004| ~~[(6) Banking and Financial Corporations Tax~~ | 0005| ~~Act;~~ | 0006| ~~(7)]~~ (6) any municipal local option gross | 0007| receipts tax; | 0008| ~~[(8)]~~ (7) any county local option gross | 0009| receipts tax; | 0010| ~~[(9)]~~ (8) Special Fuels Supplier Tax Act; | 0011| ~~[(10)]~~ (9) Gasoline Tax Act; | 0012| ~~[(11)]~~ (10) petroleum products loading fee, | 0013| which fee shall be considered a tax for the purpose of the Tax | 0014| Administration Act; | 0015| ~~[(12)]~~ (11) Alternative Fuel Tax Act; | 0016| ~~[(13)]~~ (12) Cigarette Tax Act; | 0017| ~~[(14)]~~ (13) Estate Tax Act; | 0018| ~~[(15)]~~ (14) Railroad Car Company Tax Act; | 0019| ~~[(16)]~~ (15) Investment Credit Act; | 0020| ~~[(17)]~~ (16) Corporate Income and Franchise | 0021| Tax Act; | 0022| ~~[(18)]~~ (17) Uniform Division of Income for | 0023| Tax Purposes Act; | 0024| ~~[(19)]~~ (18) Multistate Tax Compact; | 0025| ~~[(20)]~~ (19) Tobacco Products Tax Act; | 0001| ~~[(21)]~~ (20) Filmmaker's Credit Act; and | 0002| ~~[(22)]~~ (21) the telecommunications relay | 0003| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0004| surcharge shall be considered a tax for the purposes of the Tax | 0005| Administration Act; | 0006| B. the administration and enforcement of the | 0007| following taxes, surtaxes, advanced payments or tax acts as they | 0008| now exist or may hereafter be amended: | 0009| (1) Resources Excise Tax Act; | 0010| (2) Severance Tax Act; | 0011| (3) any severance surtax; | 0012| (4) Oil and Gas Severance Tax Act; | 0013| (5) Oil and Gas Conservation Tax Act; | 0014| (6) Oil and Gas Emergency School Tax Act; | 0015| (7) Oil and Gas Ad Valorem Production Tax Act; | 0016| (8) Natural Gas Processors Tax Act; | 0017| (9) Oil and Gas Production Equipment Ad Valorem | 0018| Tax Act; | 0019| (10) Copper Production Ad Valorem Tax Act; and | 0020| (11) any advance payment required to be made by | 0021| any act specified in this subsection, which advance payment | 0022| shall be considered a tax for the purposes of the Tax | 0023| Administration Act; | 0024| C. the administration and enforcement of the | 0025| following taxes, surcharges, fees or acts as they now exist or | 0001| may hereafter be amended: | 0002| (1) Weight Distance Tax Act; | 0003| (2) Special Fuels Tax Act; | 0004| (3) the workers' compensation fee authorized by | 0005| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0006| for purposes of the Tax Administration Act; | 0007| (4) Uniform Unclaimed Property Act; | 0008| (5) 911 emergency surcharge and the network and | 0009| database surcharge, which surcharges shall be considered taxes | 0010| for purposes of the Tax Administration Act; | 0011| (6) the solid waste assessment fee authorized | 0012| by the Solid Waste Act, which fee shall be considered a tax for | 0013| purposes of the Tax Administration Act; ~~[and]~~ | 0014| (7) the water conservation fee imposed by | 0015| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0016| for the purposes of the Tax Administration Act; and | 0017| (8) the gaming tax imposed pursuant to the | 0018| Gaming Control Act; and | 0019| D. the administration and enforcement of all other | 0020| laws, with respect to which the department is charged with | 0021| responsibilities pursuant to the Tax Administration Act, but | 0022| only to the extent that the other laws do not conflict with the | 0023| Tax Administration Act." | 0024| Section 67. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0025| Chapter 91, Section 1, as amended) is amended to read: | 0001| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0002| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0003| A. In recognition of the fact that a representative | 0004| government is dependent upon an informed electorate, it is | 0005| declared to be public policy of this state that all persons are | 0006| entitled to the greatest possible information regarding the | 0007| affairs of government and the official acts of those officers | 0008| and employees who represent them. The formation of public | 0009| policy or the conduct of business by vote shall not be conducted | 0010| in closed meeting. All meetings of any public body except the | 0011| legislature and the courts shall be public meetings, and all | 0012| persons so desiring shall be permitted to attend and listen to | 0013| the deliberations and proceedings. Reasonable efforts shall be | 0014| made to accommodate the use of audio and video recording | 0015| devices. | 0016| B. All meetings of a quorum of members of any board, | 0017| commission, administrative adjudicatory body or other | 0018| policymaking body of any state agency, any agency or authority | 0019| of any county, municipality, district or any political | 0020| subdivision, held for the purpose of formulating public policy, | 0021| including the development of personnel policy, rules, | 0022| regulations or ordinances, discussing public business or for the | 0023| purpose of taking any action within the authority of or the | 0024| delegated authority of any board, commission or other | 0025| policymaking body are declared to be public meetings open to the | 0001| public at all times, except as otherwise provided in the | 0002| constitution of New Mexico or the Open Meetings Act. No public | 0003| meeting once convened that is otherwise required to be open | 0004| pursuant to the Open Meetings Act shall be closed or dissolved | 0005| into small groups or committees for the purpose of permitting | 0006| the closing of the meeting. | 0007| C. If otherwise allowed by law or rule of the public | 0008| body, a member of a public body may participate in a meeting of | 0009| the public body by means of a conference telephone or other | 0010| similar communications equipment when it is otherwise difficult | 0011| or impossible for the member to attend the meeting in person, | 0012| provided that each member participating by conference telephone | 0013| can be identified when speaking, all participants are able to | 0014| hear each other at the same time and members of the public | 0015| attending the meeting are able to hear any member of the public | 0016| body who speaks during the meeting. | 0017| D. Any meetings at which the discussion or adoption | 0018| of any proposed resolution, rule, regulation or formal action | 0019| occurs and at which a majority or quorum of the body is in | 0020| attendance, and any closed meetings, shall be held only after | 0021| reasonable notice to the public. The affected body shall | 0022| determine at least annually in a public meeting what notice for | 0023| a public meeting is reasonable when applied to that body. That | 0024| notice shall include broadcast stations licensed by the federal | 0025| communications commission and newspapers of general circulation | 0001| that have provided a written request for such notice. | 0002| E. A public body may recess and reconvene a meeting | 0003| to a day subsequent to that stated in the meeting notice if, | 0004| prior to recessing, the public body specifies the date, time and | 0005| place for continuation of the meeting, and, immediately | 0006| following the recessed meeting, posts notice of the date, time | 0007| and place for the reconvened meeting on or near the door of the | 0008| place where the original meeting was held and in at least one | 0009| other location appropriate to provide public notice of the | 0010| continuation of the meeting. Only matters appearing on the | 0011| agenda of the original meeting may be discussed at the | 0012| reconvened meeting. | 0013| F. Meeting notices shall include an agenda | 0014| containing a list of specific items of business to be discussed | 0015| or transacted at the meeting or information on how the public | 0016| may obtain a copy of such an agenda. Except in the case of an | 0017| emergency, the agenda shall be available to the public at least | 0018| twenty-four hours prior to the meeting. Except for emergency | 0019| matters, a public body shall take action only on items appearing | 0020| on the agenda. For purposes of this subsection, an "emergency" | 0021| refers to unforeseen circumstances that, if not addressed | 0022| immediately by the public body, will likely result in injury or | 0023| damage to persons or property or substantial financial loss to | 0024| the public body. | 0025| G. The board, commission or other policymaking body | 0001| shall keep written minutes of all its meetings. The minutes | 0002| shall include at a minimum the date, time and place of the | 0003| meeting, the names of members in attendance and those absent, | 0004| the substance of the proposals considered and a record of any | 0005| decisions and votes taken that show how each member voted. All | 0006| minutes are open to public inspection. Draft minutes shall be | 0007| prepared within ten working days after the meeting and shall be | 0008| approved, amended or disapproved at the next meeting where a | 0009| quorum is present. Minutes shall not become official until | 0010| approved by the policymaking body. | 0011| H. The provisions of Subsections A, B and G of this | 0012| section do not apply to: | 0013| (1) meetings pertaining to issuance, | 0014| suspension, renewal or revocation of a license, except that a | 0015| hearing at which evidence is offered or rebutted shall be open. | 0016| All final actions on the issuance, suspension, renewal or | 0017| revocation of a license shall be taken at an open meeting; | 0018| (2) limited personnel matters; provided that | 0019| for purposes of the Open Meetings Act, "limited personnel | 0020| matters" means the discussion of hiring, promotion, demotion, | 0021| dismissal, assignment or resignation of or the investigation or | 0022| consideration of complaints or charges against any individual | 0023| public employee; provided further that this subsection is not to | 0024| be construed as to exempt final actions on personnel from being | 0025| taken at open public meetings, nor does it preclude an aggrieved | 0001| public employee from demanding a public hearing. Judicial | 0002| candidates interviewed by any commission shall have the right to | 0003| demand an open interview; | 0004| (3) deliberations by a public body in | 0005| connection with an administrative adjudicatory proceeding. For | 0006| purposes of this paragraph, an "administrative adjudicatory | 0007| proceeding" means a proceeding brought by or against a person | 0008| before a public body in which individual legal rights, duties or | 0009| privileges are required by law to be determined by the public | 0010| body after an opportunity for a trial-type hearing. Except as | 0011| otherwise provided in this section, the actual administrative | 0012| adjudicatory proceeding at which evidence is offered or rebutted | 0013| and any final action taken as a result of the proceeding shall | 0014| occur in an open meeting; | 0015| (4) the discussion of personally identifiable | 0016| information about any individual student, unless the student, | 0017| his parent or guardian requests otherwise; | 0018| (5) meetings for the discussion of bargaining | 0019| strategy preliminary to collective bargaining negotiations | 0020| between the policymaking body and a bargaining unit representing | 0021| the employees of that policymaking body and collective | 0022| bargaining sessions at which the policymaking body and the | 0023| representatives of the collective bargaining unit are present; | 0024| (6) that portion of meetings at which a | 0025| decision concerning purchases in an amount exceeding two | 0001| thousand five hundred dollars ($2,500) that can be made only | 0002| from one source and that portion of meetings at which the | 0003| contents of competitive sealed proposals solicited pursuant to | 0004| the Procurement Code are discussed during the contract | 0005| negotiation process. The actual approval of purchase of the | 0006| item or final action regarding the selection of a contractor | 0007| shall be made in an open meeting; | 0008| (7) meetings subject to the attorney-client | 0009| privilege pertaining to threatened or pending litigation in | 0010| which the public body is or may become a participant; | 0011| (8) meetings for the discussion of the | 0012| purchase, acquisition or disposal of real property or water | 0013| rights by the public body; ~~[and]~~ | 0014| (9) those portions of meetings of committees or | 0015| boards of public hospitals that receive less than fifty percent | 0016| of their operating budget from direct public funds and | 0017| appropriations where strategic and long-range business plans are | 0018| discussed; and | 0019| (10) that portion of a meeting of the gaming | 0020| control board dealing with information made confidential | 0021| pursuant to the provisions of the Gaming Control Act. | 0022| I. If any meeting is closed pursuant to the | 0023| exclusions contained in Subsection H of this section, the | 0024| closure: | 0025| (1) if made in an open meeting, shall be | 0001| approved by a majority vote of a quorum of the policymaking | 0002| body; the authority for the closure and the subject to be | 0003| discussed shall be stated with reasonable specificity in the | 0004| motion calling for the vote on a closed meeting; the vote shall | 0005| be taken in an open meeting; and the vote of each individual | 0006| member shall be recorded in the minutes. Only those subjects | 0007| announced or voted upon prior to closure by the policymaking | 0008| body may be discussed in a closed meeting; and | 0009| (2) if called for when the policymaking body is | 0010| not in an open meeting, shall not be held until public notice, | 0011| appropriate under the circumstances, stating the specific | 0012| provision of the law authorizing the closed meeting and stating | 0013| with reasonable specificity the subject to be discussed is given | 0014| to the members and to the general public. | 0015| J. Following completion of any closed meeting, the | 0016| minutes of the open meeting that was closed or the minutes of | 0017| the next open meeting if the closed meeting was separately | 0018| scheduled shall state that the matters discussed in the closed | 0019| meeting were limited only to those specified in the motion for | 0020| closure or in the notice of the separate closed meeting. This | 0021| statement shall be approved by the public body under Subsection | 0022| G of this section as part of the minutes." | 0023| Section 68. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0024| Chapter 303, Section 19-1, as amended) is amended to read: | 0025| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0001| Chapter 30, Article 19 NMSA 1978: | 0002| A. "antique gambling device" means a gambling device | 0003| twenty-five years of age or older and substantially in original | 0004| condition that is not used for gambling or commercial gambling | 0005| or located in a gambling place; | 0006| B. "bet" means a bargain in which the parties agree | 0007| that, dependent upon chance, even though accompanied by some | 0008| skill, one stands to win or lose anything of value specified in | 0009| the agreement. A bet does not include: | 0010| (1) bona fide business transactions that are | 0011| valid under the law of contracts, including ~~[without~~ | 0012| ~~limitation]~~: | 0013| (a) contracts for the purchase or sale, at | 0014| a future date, of securities or other commodities; and | 0015| (b) agreements to compensate for loss | 0016| caused by the happening of the chance, including ~~[without~~ | 0017| ~~limitation]~~ contracts for indemnity or guaranty and life or | 0018| health and accident insurance; | 0019| (2) offers of purses, prizes or premiums to the | 0020| actual contestants in any bona fide contest for the | 0021| determination of skill, speed, strength or endurance or to the | 0022| bona fide owners of animals or vehicles entered in such contest; | 0023| (3) a lottery as defined in this section; or | 0024| (4) betting otherwise permitted by law; | 0025| ~~[C. "lottery" means an enterprise other than the~~ | 0001| ~~New Mexico state lottery established and operated pursuant to~~ | 0002| ~~the New Mexico Lottery Act wherein, for a consideration, the~~ | 0003| ~~participants are given an opportunity to win a prize, the award~~ | 0004| ~~of which is determined by chance, even though accompanied by~~ | 0005| ~~some skill. As used in this subsection, "consideration" means~~ | 0006| ~~anything of pecuniary value required to be paid to the promoter~~ | 0007| ~~in order to participate in such enterprise;~~ | 0008| ~~D.]~~ C. "gambling device" means a contrivance | 0009| other than an antique gambling device that is not licensed for | 0010| use pursuant to the Gaming Control Act and that, for a | 0011| consideration, affords the player an opportunity to obtain | 0012| anything of value, the award of which is determined by chance, | 0013| even though accompanied by some skill, ~~[and]~~ whether or not | 0014| the prize is automatically paid by the device; ~~[and]~~ | 0015| ~~[E.]~~ D. "gambling place" means ~~[any]~~ a | 0016| building or tent, ~~[any]~~ a vehicle, whether self-propelled or | 0017| not, or ~~[any]~~ a room within any of them that is not within | 0018| the premises of a person licensed as a lottery retailer or that | 0019| is not licensed pursuant to the Gaming Control Act, one of | 0020| whose principal uses is: | 0021| (1) making and settling of bets; | 0022| (2) receiving, holding, recording or forwarding | 0023| bets or offers to bet; | 0024| (3) conducting lotteries; or | 0025| (4) playing gambling devices; and | 0001| E. "lottery" means an enterprise wherein, for a | 0002| consideration, the participants are given an opportunity to win | 0003| a prize, the award of which is determined by chance, even though | 0004| accompanied by some skill. "Lottery" does not include the New | 0005| Mexico state lottery established and operated pursuant to the | 0006| New Mexico Lottery Act or gaming that is licensed and operated | 0007| pursuant to the Gaming Control Act. As used in this subsection, | 0008| "consideration" means anything of pecuniary value required to be | 0009| paid to the promoter in order to participate in a gambling or | 0010| gaming enterprise." | 0011| Section 69. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0012| Chapter 303, Section 19-6, as amended) is amended to read: | 0013| "30-19-6. ~~[PERMISSIVE LOTTERY]~~ CHARITABLE LOTTERIES-- | 0014| PERMITTED GAMBLING--CONDITIONS.-- | 0015| A. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0016| 19 NMSA 1978 ~~[shall be construed to apply to any]~~ prohibits | 0017| a sale or drawing of ~~[any]~~ a prize at ~~[any]~~ a fair held | 0018| in this state for the benefit of ~~[any]~~ a church, public | 0019| library or religious society ~~[situate or being]~~ located in | 0020| this state, or for charitable purposes when all the proceeds of | 0021| ~~[such]~~ the fair ~~[shall be]~~ are expended in this state | 0022| for the benefit of ~~[such]~~ the church, public library, | 0023| religious society or charitable purposes. A ~~[lottery shall be~~ | 0024| ~~operated]~~ sale or drawing conducted pursuant to this | 0025| subsection is for the benefit of the organization or charitable | 0001| purpose only ~~[when]~~ if the entire proceeds of the | 0002| ~~[lottery]~~ sale or drawing go to the organization or | 0003| charitable purpose and no part of such proceeds go to any | 0004| individual member or employee ~~[thereof]~~ of the organization. | 0005| B. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0006| 19 NMSA 1978 ~~[shall be held to prohibit any]~~ prohibits a | 0007| bona fide motion picture ~~[theatre]~~ theater from offering | 0008| prizes of cash or merchandise for advertising purposes, in | 0009| connection with ~~[such]~~ the business of the theater or for | 0010| the purpose of stimulating business, whether or not ~~[any]~~ | 0011| consideration other than a monetary consideration in excess of | 0012| the regular price of admission is ~~[exacted]~~ charged for | 0013| participation in drawings for prizes. | 0014| C. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0015| 19 NMSA 1978 ~~[shall be held to apply to any]~~ prohibits a | 0016| bona fide county fair, including ~~[fairs]~~ a fair for more | 0017| than one county, ~~[which shall have]~~ that has been held | 0018| annually at the same location for at least two years, ~~[and~~ | 0019| ~~which shall offer]~~ from offering prizes of livestock or | 0020| poultry in connection with ~~[such]~~ the fair ~~[when]~~ if the | 0021| proceeds of ~~[such]~~ the drawings ~~[shall be]~~ are used for | 0022| the benefit of ~~[said]~~ the fair. | 0023| ~~[D. Nothing in Article 19, Chapter 30 NMSA 1978~~ | 0024| ~~shall be construed to apply to any lottery operated by an~~ | 0025| ~~organization exempt from the state income tax pursuant to~~ | 0001| ~~Subsection C of Section 7-2-4 NMSA 1978 and not subject to the~~ | 0002| ~~provisions of Subsection A of this section; provided that:~~ | 0003| ~~(1) no more than two lotteries shall be~~ | 0004| ~~operated in any year by such an organization;~~ | 0005| ~~(2) all the gross proceeds less the reasonable~~ | 0006| ~~cost of prizes of any lottery operated by such an organization~~ | 0007| ~~shall be expended in the state for the benefit of the~~ | 0008| ~~organization or public purposes; and~~ | 0009| ~~(3) no part of the proceeds of any lottery~~ | 0010| ~~shall go to any individual member or employee of any~~ | 0011| ~~organization except as payment for the purchase of prizes at no~~ | 0012| ~~more than the reasonable retail price.]~~ | 0013| D. Nothing in Chapter 30, Article 19 NMSA 1978 | 0014| prohibits an organization that is exempt from state income tax | 0015| pursuant to Section 7-2-4 NMSA 1978 from conducting bingo games, | 0016| raffles, lotteries or table games, including poker, craps, | 0017| blackjack, roulette and the like, at a fundraising event if: | 0018| (1) the fundraising event is conducted no more | 0019| than twice in a calendar year by the qualifying organization; | 0020| (2) the only persons authorized to participate | 0021| in the operation or management of the fundraising event are: | 0022| (a) bona fide members of the qualifying | 0023| organization who are not paid for their services in the | 0024| operation or management of the event; or | 0025| (b) persons who provide goods or services | 0001| for the fundraising event for a flat fee or an hourly fee | 0002| pursuant to a written contract with the qualifying organization; | 0003| (3) no person receives any part of the proceeds | 0004| of the fundraising event except: | 0005| (a) as payment for prizes purchased at no | 0006| more than the reasonable retail prices for the prizes; or | 0007| (b) pursuant to a contract described in | 0008| Subparagraph (b) of Paragraph (2) of this subsection; | 0009| (4) the net proceeds of the fundraising event | 0010| are expended in the state for the benefit of the qualifying | 0011| organization or purposes for which it was formed; | 0012| (5) gross revenue, expenses, prizes paid and | 0013| the date, time and location of the fundraising event are | 0014| reported to the alcohol and gaming division of the regulation | 0015| and licensing department within thirty days after the event; | 0016| (6) the qualifying organization conducting the | 0017| fundraising event maintains records for a period of one year | 0018| after the date of the event that accurately show the gross | 0019| revenue generated by the event, details of the expenses of | 0020| conducting the event and details of how the gross revenue is | 0021| used, and the qualifying organization makes the records | 0022| available for review by the director of the alcohol and gaming | 0023| division of the regulation and licensing department or the | 0024| attorney general, or both, at their request; | 0025| (7) no more than four gambling devices are | 0001| operated during the fundraising event, two of which may be video | 0002| gaming machines or slot machines and shall be played with tokens | 0003| or chips, but not United States coins or currency, provided by | 0004| the qualifying organization; | 0005| (8) no person less than the age of twenty-one | 0006| is 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 | 0009| to regulations and a permit issued by the alcohol and gaming | 0010| division of the regulation and licensing department. | 0011| E. The provisions of the Gaming Control Act, the | 0012| Bingo and Raffle Act and the New Mexico Lottery Act do not apply | 0013| to the activities described in Subsection D of this section." | 0014| Section 70. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0015| Chapter 39, Section 96) is amended to read: | 0016| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0017| A. It is a violation of the Liquor Control Act for a | 0018| licensee to knowingly allow commercial gambling on the licensed | 0019| premises. | 0020| B. In addition to any criminal penalties, any person | 0021| who violates Subsection A of this section may have his license | 0022| suspended or revoked or a fine imposed, or both, pursuant to the | 0023| Liquor Control Act. | 0024| C. ~~[For purposes of]~~ As used in this section: | 0025| (1) "commercial gambling" means: | 0001| ~~[(1)]~~ (a) participating in the earnings | 0002| of or operating a gambling place; | 0003| ~~[(2)]~~ (b) receiving, recording or | 0004| forwarding bets or offers to bet; | 0005| ~~[(3)]~~ (c) possessing facilities with | 0006| the intent to receive, record or forward bets or offers to bet; | 0007| ~~[(4)]~~ (d) for gain, becoming a | 0008| custodian of anything of value bet or offered to be bet; | 0009| ~~[(5)]~~ (e) conducting a lottery where | 0010| both the consideration and the prize are money, or whoever with | 0011| intent to conduct a lottery possesses facilities to do so; or | 0012| ~~[(6)]~~ (f) setting up for use for the | 0013| purpose of gambling, or collecting the proceeds of, any gambling | 0014| device or game; and | 0015| (2) "commercial gambling" does not mean: | 0016| (a) activities authorized pursuant to the | 0017| New Mexico Lottery Act; | 0018| (b) the conduct of activities pursuant to | 0019| Subsection D of Section 30-19-6 NMSA 1978; and | 0020| (c) gaming authorized pursuant to the | 0021| Gaming Control Act on the premises of a gaming operator licensee | 0022| licensed pursuant to that act." | 0023| Section 71. SEVERABILITY.--If any part or application of | 0024| the Gaming Control Act is held invalid, the remainder of its | 0025| application to other situations or persons shall not be | 0001| affected. | 0002| Section 72. DELAYED EFFECTIVE DATE.--The effective date | 0003| of the provisions of Section 30 of this act is July 1, 1998. | 0004| Section 73. EMERGENCY.--It is necessary for the public | 0005| peace, health and safety that this act take effect immediately. | 0006| State of New Mexico | 0007| House of Representatives | 0008| | 0009| FORTY-THIRD LEGISLATURE | 0010| FIRST SESSION, 1997 | 0011| | 0012| | 0013| March 3, 1997 | 0014| | 0015| | 0016| Mr. Speaker: | 0017| | 0018| Your JUDICIARY COMMITTEE, to whom has been referred | 0019| | 0020| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0021| FOR HOUSE BILL 399 | 0022| | 0023| has had it under consideration and reports same with | 0024| recommendation that it DO NOT PASS, but that | 0025| | 0001| HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR HOUSE | 0002| BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0003| HOUSE BILL 399 | 0004| | 0005| be reported WITHOUT RECOMMENDATION, and thence | 0006| referred to TAXATION AND REVENUE COMMITTEE. | 0007| | 0008| Respectfully submitted, | 0009| | 0010| | 0011| | 0012| | 0013| Thomas P. Foy, Chairman | 0014| | 0015| | 0016| Adopted Not Adopted | 0017| | 0018| (Chief Clerk) | 0019| (Chief Clerk) | 0020| | 0021| Date | 0022| | 0023| The roll call vote was 9 For 3 Against | 0024| Yes: 9 | 0025| No: Alwin, King, Stewart | 0001| Excused: Rios | 0002| Absent: None | 0003| | 0004| G:\BILLTEXT\BILLW_97\H0399 HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR | 0005| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0006| HOUSE BILL 399 | 0007| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| | 0015| AN ACT | 0016| RELATING TO GAMING; ENACTING THE INDIAN GAMING COMPACT; | 0017| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE | 0018| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR | 0019| PUEBLO CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING | 0020| THE GAMING CONTROL ACT TO PERMIT CERTAIN NONTRIBAL GAMING; | 0021| PROVIDING PENALTIES; IMPOSING A GAMING TAX AND FEES; AMENDING | 0022| AND ENACTING SECTIONS OF THE NMSA 1978; MAKING | 0023| APPROPRIATIONS; DECLARING AN EMERGENCY. | 0024| | 0025| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0001| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT | 0002| ENTERED INTO.--The Indian Gaming Compact is enacted into law | 0003| and entered into with all Indian nations, tribes and pueblos | 0004| in the state legally joining in it by enactment of a | 0005| resolution pursuant to the requirements of applicable tribal | 0006| and federal law. The compact is enacted and entered into in | 0007| the form substantially as follows: | 0008| "INDIAN GAMING COMPACT | 0009| INTRODUCTION | 0010| The State is a sovereign State of the United States of | 0011| America, having been admitted to the Union pursuant to the | 0012| Act of June 20, 1910, 36 Statutes at Large 557, Chapter 310, | 0013| and is authorized by its constitution to enter into contracts | 0014| and agreements, including this Compact, with the Tribe; | 0015| The Tribe is a sovereign federally recognized Indian | 0016| tribe and its governing body has authorized the officials of | 0017| the Tribe to enter into contracts and agreements of every | 0018| description, including this Compact, with the State; | 0019| The Congress of the United States has enacted the | 0020| Indian Gaming Regulatory Act of 1988, 25 U.S.C. 2701-2721 | 0021| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0022| Class III Gaming on Indian Lands pursuant to a tribal-state | 0023| compact entered into for that purpose; | 0024| The Tribe owns or controls Indian Lands and by | 0025| Ordinance has adopted rules and regulations governing Class | 0001| III games played and related activities at any Gaming | 0002| Facility; | 0003| The State and the Tribe, in recognition of the | 0004| sovereign rights of each party and in a spirit of cooperation | 0005| to promote the best interests of the citizens of the State | 0006| and the members of the Tribe, have engaged in good faith | 0007| negotiations recognizing and respecting the interests of each | 0008| party and have agreed to this Compact. | 0009| NOW, THEREFORE, the State and the Tribe agree as follows: | 0010| TERMS AND CONDITIONS | 0011| SECTION 1. Purpose and Objectives. | 0012| The purpose and objectives of the State and the Tribe in | 0013| making this Compact are as follows: | 0014| A. To evidence the good will and cooperative spirit | 0015| between the State and the Tribe; | 0016| B. To continue the development of an effective | 0017| government-to-government relationship between the State and the | 0018| Tribe; | 0019| C. To provide for the regulation of Class III Gaming on | 0020| Indian Lands as required by the IGRA; | 0021| D. To fulfill the purpose and intent of the IGRA by | 0022| providing for tribal gaming as a means of generating tribal | 0023| revenues, thereby promoting tribal economic development, tribal | 0024| self-sufficiency, and strong tribal government; | 0025| E. To provide revenues to fund tribal government | 0001| operations or programs, to provide for the general welfare of | 0002| the tribal members and for other purposes allowed under the | 0003| IGRA; | 0004| F. To provide for the effective regulation of Class III | 0005| Gaming in which the Tribe shall have the sole proprietary | 0006| interest and be the primary beneficiary; and | 0007| G. To address the State's interest in the establishment, | 0008| by the Tribe, of rules and procedures for ensuring that Class | 0009| III Gaming is conducted fairly and honestly by the owners, | 0010| operators, employees and patrons of any Class III Gaming | 0011| enterprise on Indian Lands. | 0012| SECTION 2. Definitions. | 0013| For purposes of this Compact, the following definitions | 0014| pertain: | 0015| A. "Class III Gaming" means all forms of gaming as | 0016| defined in 25 U.S.C. 2703(8), and 25 C.F.R. 502.4. | 0017| B. "Compact" means this compact between the State and the | 0018| Tribe. | 0019| C. "Gaming Enterprise" means the tribal entity created | 0020| and designated by the Tribe as having authority to conduct Class | 0021| III Gaming pursuant to this Compact. | 0022| D. "Gaming Facility" means the buildings or structures in | 0023| which Class III Gaming is conducted on Indian Lands. | 0024| E. "Indian Lands" means: | 0025| 1. all lands within the exterior boundaries of the | 0001| Tribe's reservation and its confirmed grants from prior | 0002| sovereigns; or | 0003| 2. any other lands title to which is either held in | 0004| trust by the United States for the exclusive benefit of the | 0005| Tribe or a member thereof or is held by the Tribe or a member | 0006| thereof subject to restrictions against alienation imposed by | 0007| the United States, and over which the Tribe exercises | 0008| jurisdiction and governmental authority except for land located | 0009| within the boundaries of a municipality having a population of | 0010| more than two hundred thousand (200,000) persons. | 0011| F. "Key Employee" means that term as defined in 25 CFR | 0012| Section 502.14. | 0013| G. "Management Contract" means a contract within the | 0014| meaning of 25 U.S.C. 2710(d)(9) and 2711. | 0015| H. "Management Contractor" means any person or entity | 0016| that has entered into a Management Contract with the Tribe. | 0017| I. "Ordinance" means the gaming ordinance and any | 0018| amendments thereto adopted by the Tribal Council of the Tribe. | 0019| J. "Primary Management Official" means that term as | 0020| defined in 25 CFR Section 502.19. | 0021| K. "State" means the State of New Mexico. | 0022| L. "State Gaming Representative" means that person | 0023| designated by the Governor of the State who will be responsible | 0024| for actions of the State set out in the Compact. The | 0025| representative will be the single contact with the Tribe and may | 0001| be relied upon as such by the Tribe. If the State Legislature | 0002| enacts legislation to establish an agency of the State, such | 0003| agency may assume the duties of the State Gaming Representative. | 0004| M. "Tribal Gaming Agency" means the tribal governmental | 0005| agency which will be identified to the State Gaming | 0006| Representative as the agency responsible for actions of the | 0007| Tribe set out in the Compact. It will be the single contact | 0008| with the State and may be relied upon as such by the State. | 0009| N. "Tribe" means any Indian Tribe or Pueblo located | 0010| within the State of New Mexico entering into this Compact as | 0011| provided for herein. | 0012| SECTION 3. Authorized Class III Gaming. | 0013| The Tribe may conduct, only on Indian Lands, subject to | 0014| all of the terms and conditions of this Compact, any or all | 0015| forms of casino-style gaming, including but not limited to slot | 0016| machines and other forms of electronic gaming devices; all forms | 0017| of poker, blackjack and other casino-style card games, both | 0018| banked and unbanked; roulette; craps; keno; wheel of fortune; | 0019| pai gow; and other games played in casino settings, and any form | 0020| of a lottery. | 0021| Subject to the foregoing, the Tribe shall establish, in | 0022| its discretion, by tribal law, such limitations as it deems | 0023| appropriate on the number and type of Class III Gaming | 0024| conducted, the location of Class III Gaming on Indian Lands, the | 0025| hours and days of operation, and betting and pot limits, | 0001| applicable to such gaming. | 0002| SECTION 4. Regulation of Class III Gaming. | 0003| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0004| assure that the Tribe will: | 0005| 1. operate all Class III Gaming pursuant to this | 0006| Compact, tribal law, the IGRA and other | 0007| applicable Federal law; | 0008| 2. provide for the physical safety of patrons in any | 0009| Gaming Facility; | 0010| 3. provide for the physical safety of personnel | 0011| employed by the gaming enterprise; | 0012| 4. provide for the physical safeguarding of assets | 0013| transported to and from the Gaming Facility and | 0014| cashier's cage department; | 0015| 5. provide for the protection of the property of the | 0016| patrons and the gaming enterprise from illegal | 0017| activity; | 0018| 6. participate in licensing of primary management | 0019| officials and key employees of a Class III Gaming | 0020| enterprise; | 0021| 7. detain persons who may be involved in illegal | 0022| acts for the purpose of notifying law enforcement | 0023| authorities; and | 0024| 8. record and investigate any and all unusual | 0025| occurrences related to Class III Gaming within | 0001| the Gaming Facility. | 0002| B. Regulations. Without affecting the generality of the | 0003| foregoing, the Tribe shall adopt laws: | 0004| 1. prohibiting participation in any Class III Gaming | 0005| by any person under the age of twenty-one (21); | 0006| 2. prohibiting the employment of any person as a key | 0007| employee or primary management official in a | 0008| position that is directly involved in Class III | 0009| Gaming activities who is under the age of twenty- | 0010| one (21) or who has not been licensed in | 0011| accordance with Section 5, herein; | 0012| 3. requiring the Tribe to take all necessary action | 0013| to impose on its gaming operation standards and | 0014| requirements equivalent to or more stringent than | 0015| those contained in the federal Fair Labor | 0016| Standards Act of 1938, the federal Occupational | 0017| Safety and Health Act of 1970, and any other | 0018| federal laws relating to wages, hours of work and | 0019| conditions of work, and the regulations issued | 0020| thereunder; | 0021| 4. requiring that on any construction project | 0022| involving any Gaming Facility or related | 0023| structure that is funded in whole or in part by | 0024| federal funds, all workers will be paid wages | 0025| meeting or exceeding the standards established | 0001| for New Mexico under the federal Davis-Bacon Act; | 0002| 5. providing to all employees of a gaming | 0003| establishment employment benefits, including, at | 0004| a minimum, sick leave, life insurance, paid | 0005| annual leave, medical and dental insurance as | 0006| well as providing unemployment insurance and | 0007| workers' compensation insurance through | 0008| participation in the state programs offering | 0009| those benefits; | 0010| 6. providing a grievance process for an employee in | 0011| cases of disciplinary or punitive action taken | 0012| against an employee that includes a process for | 0013| appeals to persons of greater authority than the | 0014| immediate supervisor of the employee; | 0015| 7. prohibiting a gaming enterprise from cashing any | 0016| paycheck or any type of government assistance | 0017| check, including Social Security, AFDC, pension | 0018| and other such checks, for any patron; | 0019| 8. requiring that, if feasible, automatic teller | 0020| machines on Gaming Facility premises be | 0021| programmed so that the machines will not accept | 0022| cards issued by the State to AFDC recipients for | 0023| access to AFDC benefits; | 0024| 9. providing that each electronic or | 0025| electromechanical gaming device in use at the | 0001| Gaming Facility must pay out a mathematically | 0002| demonstrable percentage of all amounts wagered, | 0003| which must not be less than eighty percent (80%); | 0004| 10. providing that no later than July 1, 1997, all | 0005| gaming machines on the premises of the Gaming | 0006| Facility will be connected to a central | 0007| computerized reporting and auditing system on the | 0008| Gaming Facility premises, which shall collect on | 0009| a continual basis the activity of each gaming | 0010| machine in use at the Gaming Facility, and that | 0011| such data shall be electronically accessible to | 0012| the State Gaming Representative upon entry of | 0013| appropriate security codes; | 0014| 11. enacting provisions that: | 0015| (a) prohibit an employee of the Gaming Facility | 0016| from selling, serving, giving or delivering | 0017| an alcoholic beverage to an intoxicated | 0018| person or from procuring or aiding in the | 0019| procurement of any alcoholic beverage for an | 0020| intoxicated person at the Gaming Facility; | 0021| (b) require Gaming Facility employees that | 0022| dispense, sell, serve or deliver alcoholic | 0023| beverages to attend Alcohol Server Education | 0024| Classes similar to those classes provided | 0025| for in the New Mexico Liquor Control Act; | 0001| and | 0002| (c) purchase and maintain a liquor liability | 0003| insurance policy that will provide, at a | 0004| minimum, personal injury coverage of one | 0005| million dollars ($1,000,000) per incident | 0006| and two million dollars ($2,000,000) | 0007| aggregate per policy year; | 0008| 12. prohibiting alcoholic beverages from being sold, | 0009| served, delivered or consumed in that part of a | 0010| Gaming Facility where gaming is allowed; | 0011| 13. requiring the gaming enterprise to spend an | 0012| amount that is no less than one-quarter of one | 0013| percent (.25%) of its net win as that term is | 0014| defined herein annually to fund or support | 0015| programs for the treatment and assistance of | 0016| compulsive gamblers and for the prevention of | 0017| compulsive gambling; | 0018| 14. governing any Management Contract regarding its | 0019| Class III Gaming activity such that it conforms | 0020| to the requirements of tribal law and the IGRA | 0021| and the regulations issued thereunder; | 0022| 15. prohibiting the operation of any Class III Gaming | 0023| for at least four (4) consecutive hours daily, | 0024| Mondays through Thursdays (except federal | 0025| holidays); | 0001| 16. prohibiting a Tribal Gaming Enterprise and the | 0002| Tribe from providing, allowing, contracting to | 0003| provide or arranging to provide alcoholic | 0004| beverages, food or lodging for no charge or at | 0005| reduced prices at a Gaming Facility or lodging | 0006| facility as an incentive or enticement for | 0007| patrons to game; and | 0008| 17. prohibiting the Tribe, the Tribal Gaming Agency | 0009| or a Management Contractor from contributing | 0010| directly, or through an agent, representative or | 0011| employee, revenue from a Gaming Enterprise owned | 0012| by the Tribe, or anything of value acquired with | 0013| that revenue, to a candidate, political committee | 0014| or person holding an office elected or to be | 0015| elected at an election covered by the State's | 0016| Campaign Reporting Act. | 0017| The Tribal Gaming Agency will provide true copies of all | 0018| tribal laws and regulations affecting Class III Gaming conducted | 0019| under the provisions of this Compact to the State Gaming | 0020| Representative within thirty (30) days after the effective date | 0021| of this Compact, and will provide true copies of any amendments | 0022| thereto or additional laws or regulations affecting gaming | 0023| within thirty (30) days after their enactment (or approval, if | 0024| any). | 0025| C. Audit and Financial Statements. The Tribal Gaming | 0001| Agency shall require all books and records relating to Class III | 0002| Gaming to be maintained in accordance with generally accepted | 0003| accounting principles. All such books and records shall be | 0004| retained for a period of at least six (6) years from the date of | 0005| creation. Not less than annually, the Tribal Gaming Agency | 0006| shall require an audit and a certified financial statement | 0007| covering all financial activities of the gaming enterprise by an | 0008| independent certified public accountant licensed by the State. | 0009| The financial statement shall be prepared in accordance with | 0010| generally accepted accounting principles and shall be submitted | 0011| to the Tribal Gaming Agency within one hundred twenty (120) days | 0012| of the close of the Tribe's fiscal year. The Tribe will | 0013| maintain the following records for not less than six (6) years: | 0014| 1. revenues, expenses, assets, liabilities and | 0015| equity for each Gaming Facility; | 0016| 2. daily cash transactions for each Class III Gaming | 0017| activity at each Gaming Facility, including but | 0018| not limited to transactions relating to each | 0019| gaming table bank, game drop box and gaming room | 0020| bank; | 0021| 3. all markers, IOUs, returned checks, hold check or | 0022| other similar credit instruments; | 0023| 4. individual and statistical game records (except | 0024| card games) to reflect statistical drop and | 0025| statistical win; for electronic, computer, or | 0001| other technologically assisted games, analytic | 0002| reports which show the total amount of cash | 0003| wagered and the total amount of prizes won; | 0004| 5. contracts, correspondence and other transaction | 0005| documents relating to all vendors and | 0006| contractors; | 0007| 6. records of all tribal gaming enforcement | 0008| activities; | 0009| 7. audits prepared by or on behalf of the Tribe; and | 0010| 8. personnel information on all Class III Gaming | 0011| employees or agents, including rotation sheets, | 0012| hours worked, employee profiles and background | 0013| checks. | 0014| D. Violations. The agents of the Tribal Gaming Agency | 0015| shall have unrestricted access to the Gaming Facility during all | 0016| hours of Class III Gaming activity, and shall have immediate and | 0017| unrestricted access to any and all areas of the Gaming Facility | 0018| for the purpose of ensuring compliance with the provisions of | 0019| this Compact and the Ordinance. The agents shall report | 0020| immediately to the Tribal Gaming Agency any suspected violation | 0021| of this Compact, the Ordinance, or regulations of the Tribal | 0022| Gaming Agency by the gaming enterprise, Management Contractor, | 0023| or any person, whether or not associated with Class III Gaming. | 0024| E. State Gaming Representative. | 0025| 1. Upon written request by the State to the Tribe, | 0001| the Tribe will provide information on primary | 0002| management officials, key employees and | 0003| suppliers, sufficient to allow the State to | 0004| conduct its own background investigations, as it | 0005| may deem necessary, so that it may make an | 0006| independent determination as to the suitability | 0007| of such individuals, consistent with the | 0008| standards set forth in Section 5, hereinafter. | 0009| The Tribe shall consider any information or | 0010| recommendations provided to it by the State as to | 0011| any such person or entity, but the Tribe shall | 0012| have the final say with respect to the hiring or | 0013| licensing of any such person or entity. | 0014| 2. Notwithstanding that the Tribe has the primary | 0015| responsibility to administer and enforce the | 0016| regulatory requirements, the State Gaming | 0017| Representative authorized in writing by the | 0018| Governor of the State or by legislation duly | 0019| enacted by the State Legislature shall have the | 0020| right to inspect a Gaming Facility, Class III | 0021| Gaming activity, and all records relating to | 0022| Class III Gaming (including those set forth in | 0023| Section 5, hereinafter) of the Tribe, subject to | 0024| the following conditions: | 0025| (a) with respect to public areas of a Gaming | 0001| Facility, at any time without prior notice | 0002| during normal business hours; | 0003| (b) with respect to private areas of a Gaming | 0004| Facility not accessible to the public, at | 0005| any time during normal Gaming Facility | 0006| business hours, immediately after notifying | 0007| the Tribal Gaming Agency and Gaming Facility | 0008| of his or her presence on the premises and | 0009| presenting proper identification, and | 0010| requesting access to the non-public areas of | 0011| the Gaming Facility. The Tribe, in its sole | 0012| discretion, may require an employee of the | 0013| Gaming Facility or the Tribal Gaming Agency | 0014| to accompany the State Gaming Representative | 0015| at all times that the State Gaming | 0016| Representative is on the premises of a | 0017| Gaming Facility, but if the Tribe imposes | 0018| such a requirement, the Tribe shall require | 0019| such an employee of the Gaming Facility or | 0020| the Tribal Gaming Agency to be available at | 0021| all times for such purposes; | 0022| (c) with respect to inspection and copying of | 0023| all management records relating to Class III | 0024| Gaming, with forty-eight (48) hours prior | 0025| written notice, not including weekends. The | 0001| reasonable costs of copying will be borne by | 0002| the State; and | 0003| (d) whenever the State Gaming Representative, or | 0004| his designee, enters the premises of the | 0005| Gaming Facility for any such inspection, | 0006| such Representative, or designee, shall | 0007| identify himself to security or supervisory | 0008| personnel of the Gaming Facility. | 0009| 3. Gaming Enterprise and gaming operations | 0010| information shall be considered public | 0011| information and subject to the Inspection of | 0012| Public Records Act. Trade secrets and | 0013| proprietary information regarding the gaming | 0014| enterprise of the Tribe, Class III Gaming | 0015| conducted by the Tribe, or the operation thereof, | 0016| shall not be deemed public records as a matter of | 0017| state law, and shall not be disclosed to any | 0018| member of the public, without the prior written | 0019| approval of a duly authorized representative of | 0020| the Tribe. These prohibitions shall not be | 0021| construed to prohibit: | 0022| (a) the furnishing of any information to a law | 0023| enforcement or regulatory agency of the | 0024| Federal Government; | 0025| (b) the State from making known the names of | 0001| persons, firms, or corporations conducting | 0002| Class III Gaming pursuant to the terms of | 0003| this Compact, locations at which such | 0004| activities are conducted, or the dates on | 0005| which such activities are conducted; | 0006| (c) publishing the terms of this Compact; | 0007| (d) disclosing information as necessary to | 0008| audit, investigate, prosecute or arbitrate | 0009| violations of this Compact or other | 0010| applicable laws or to defend suits against | 0011| the State; and | 0012| (e) complying with subpoenas or court orders | 0013| issued by courts of competent jurisdiction. | 0014| 4. To the fullest extent allowed by State law, the | 0015| Tribe shall have the right to inspect State | 0016| records concerning all Class III Gaming conducted | 0017| by the Tribe; the Tribe shall have the right to | 0018| copy such State records, with the Tribe bearing | 0019| the reasonable cost of copying. | 0020| 5. For every year or part thereof in which the Tribe | 0021| is actually engaged in Class III Gaming | 0022| hereunder, the Tribe shall reimburse the State | 0023| for the actual costs the State incurs in carrying | 0024| out any functions authorized by the terms of this | 0025| Compact. All calculations of amounts due shall | 0001| be based upon a fiscal year beginning October 1, | 0002| and ending September 30, unless the parties | 0003| select a different fiscal year. Payments due the | 0004| State shall be made no later than sixty (60) days | 0005| after the beginning of each fiscal year. | 0006| Payments due the State during any partial fiscal | 0007| year this Compact is in effect shall be adjusted | 0008| to reflect only that portion of the fiscal year. | 0009| Within sixty (60) days after each fiscal year in | 0010| which this Compact is in effect, the State shall | 0011| submit to the Tribe an accounting of actual costs | 0012| incurred in carrying out any functions authorized | 0013| by the terms of this Compact. Any amount not | 0014| expended by the State on said actual costs shall | 0015| be returned to the Tribe by the State within | 0016| sixty (60) days after the fiscal year or treated | 0017| as a prepayment of the Tribe's obligation during | 0018| the subsequent fiscal year. | 0019| 6. In the event the State believes that the Tribe is | 0020| not administering and enforcing the regulatory | 0021| requirements set forth herein, it may invoke the | 0022| procedures set forth in Section 7 of this | 0023| Compact. | 0024| F. The Tribe shall comply with all applicable provisions | 0025| of the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 | 0001| U.S.C. 5311-5314, and all reporting requirements of the | 0002| Internal Revenue Service. | 0003| SECTION 5. Licensing Requirements. | 0004| A. License Required. The Gaming Facility operator (but | 0005| not including the Tribe), including its principals, primary | 0006| management officials, and key employees, the Management | 0007| Contractor and its principals, primary management officials, and | 0008| key employees (if the Tribe hires a Management Contractor); any | 0009| person, corporation, or other entity that has supplied or | 0010| proposes to supply any gaming device to the Tribe or the | 0011| Management Contractor; and any person, corporation or other | 0012| entity providing gaming services within or without a Gaming | 0013| Facility, shall apply for and receive a license from the Tribal | 0014| Gaming Agency before participating in any way in the operation | 0015| or conduct of any Class III Gaming on Indian Lands. | 0016| B. License Application. Each applicant for a license | 0017| shall file with the Tribal Gaming Agency a written application | 0018| in the form prescribed by the Tribal Gaming Agency, along with | 0019| the applicant's fingerprint card, current photograph and the fee | 0020| required by the Tribal Gaming Agency. | 0021| 1. The following Notice ("Privacy Act Notice") shall | 0022| be placed on the application form for a | 0023| principal, key employee or a primary management | 0024| official before that form is filled out by an | 0025| applicant: | 0001| "In compliance with the Privacy | 0002| Act of 1974, the following | 0003| information is provided: | 0004| Solicitation of the information | 0005| on this form is authorized by | 0006| 25 U.S.C. 2701-2721. The | 0007| purpose of the requested | 0008| information is to determine the | 0009| eligibility of individuals to | 0010| be employed in a gaming | 0011| enterprise. The information | 0012| will be used by members and | 0013| staff of the Tribal Gaming | 0014| Agency and the National Indian | 0015| Gaming Commission who have need | 0016| for the information in the | 0017| performance of their official | 0018| duties. The information may be | 0019| disclosed to appropriate | 0020| federal, tribal, state, local | 0021| or foreign law enforcement and | 0022| regulatory agencies when | 0023| relevant to civil, criminal or | 0024| regulatory investigations or | 0025| prosecutions or when, pursuant | 0001| to a requirement by a Tribe, or | 0002| the National Indian Gaming | 0003| Commission, the information is | 0004| relevant to the hiring or | 0005| firing of an employee, the | 0006| issuance or revocation of a | 0007| gaming license or | 0008| investigations of activities | 0009| while associated with a Tribe | 0010| or a gaming enterprise. | 0011| Failure to consent to the | 0012| disclosures indicated in this | 0013| Notice will result in a Tribe | 0014| being unable to hire you in a | 0015| primary management official or | 0016| key employee position with a | 0017| tribal gaming enterprise. | 0018| The disclosure of your Social | 0019| Security Number (SSN) is | 0020| voluntary. However, failure to | 0021| supply an SSN may result in | 0022| errors in processing your | 0023| application.". | 0024| 2. Existing principals, key employees and primary | 0025| management officials shall be notified, in | 0001| writing, that they shall either: | 0002| (a) complete a new application form that | 0003| contains a Privacy Act Notice; or | 0004| (b) sign a statement that contains the Privacy | 0005| Act Notice and consent to the routine uses | 0006| described in that Notice. | 0007| 3. The following Notice ("False Statement Notice") | 0008| shall be placed on the application form for a | 0009| principal, key employee or a primary management | 0010| official before that form is filled out by an | 0011| applicant: | 0012| "A false statement on any part of your | 0013| application may be grounds for not hiring you | 0014| or for firing you after you begin work. Also, | 0015| you may be punished by fine or imprisonment. | 0016| See 18 U.S.C. 1001.". | 0017| 4. The Tribal Gaming Agency shall notify, in | 0018| writing, existing principals, key employees and | 0019| primary management officials that they shall | 0020| either: | 0021| (a) complete a new application form that | 0022| contains a False Statement Notice; or | 0023| (b) sign a statement that contains the False | 0024| Statement Notice. | 0025| 5. The Tribal Gaming Agency shall request from each | 0001| applicant, and from each principal, primary | 0002| management official and key employee of each | 0003| applicant, all of the following information: | 0004| (a) full name, other names used (oral or | 0005| written), Social Security Number(s), birth | 0006| date, place of birth, citizenship, gender | 0007| and all languages spoken or written; | 0008| (b) currently, and for the previous ten (10) | 0009| years, business and employment positions | 0010| held, ownership interests in those | 0011| businesses, business and residence addresses | 0012| and driver's license numbers; provided, that | 0013| any applicant who is a principal, primary | 0014| management official, key employee, | 0015| Management Contractor, manufacturer or | 0016| supplier of gaming devices, and/or a person | 0017| providing gaming services, must provide such | 0018| information currently, and from the age of | 0019| eighteen (18); | 0020| (c) the names and current addresses of at least | 0021| three (3) personal references, including one | 0022| (1) personal reference who was acquainted | 0023| with the applicant during each period of | 0024| residence listed in Paragraph B.5.(b) of | 0025| this section; | 0001| (d) current business and residence telephone | 0002| numbers; | 0003| (e) a description of any existing and previous | 0004| business relationships with a Tribe, | 0005| including ownership interests in those | 0006| businesses, and a description of any | 0007| potential or actual conflict of interests | 0008| between such businesses and a Tribe; | 0009| (f) a description of any existing and previous | 0010| business relationships in the gaming | 0011| industry, including, but not limited to, | 0012| ownership interests in those businesses; | 0013| (g) the name and address of any licensing or | 0014| regulatory agency with which the applicant | 0015| has filed an application for a license or | 0016| permit related to gaming, whether or not | 0017| such license or permit was granted; | 0018| (h) for each felony for which there is an | 0019| ongoing prosecution or a conviction, the | 0020| charge, the date of the charge, the name and | 0021| address of the court involved and the | 0022| disposition, if any; | 0023| (i) for each misdemeanor for which there is an | 0024| ongoing prosecution or conviction (excluding | 0025| minor traffic violations), the charge, the | 0001| date of the charge, the name and address of | 0002| the court involved and the disposition, if | 0003| any; | 0004| (j) for each criminal charge (excluding minor | 0005| traffic charges), whether or not there is a | 0006| conviction, if such criminal charge is not | 0007| otherwise listed pursuant to Paragraph | 0008| B.5.(h) or B.5.(i) of this section, the | 0009| criminal charge, the date of the charge, the | 0010| name and address of the court involved and | 0011| the disposition, if any; | 0012| (k) the name and address of any licensing or | 0013| regulatory agency with which the person has | 0014| filed an application for an occupational | 0015| license or permit, as an applicant, | 0016| principal, primary management official or | 0017| key employee, and whether or not such | 0018| license or permit was granted; | 0019| (l) a current photograph; | 0020| (m) fingerprints, which shall be taken by | 0021| officers of the tribal police department or | 0022| by another law enforcement agency and | 0023| forwarded directly to the tribal police | 0024| department. Pursuant to a Memorandum of | 0025| Understanding between the Tribe and the | 0001| National Indian Gaming Commission | 0002| ("Commission"), tribal police officers shall | 0003| forward the fingerprint cards directly to | 0004| the Commission; | 0005| (n) the fee required by the Tribal Gaming | 0006| Agency; and | 0007| (o) any other information the Tribal Gaming | 0008| Agency deems relevant. | 0009| C. Background Investigations. | 0010| 1. Upon receipt of a completed application and | 0011| required fee for licensing, the Tribal Gaming | 0012| Agency shall conduct or cause to be conducted a | 0013| background investigation to ensure that the | 0014| applicant is qualified for licensing. | 0015| 2. Background checks of applicants will be performed | 0016| pursuant to the following procedures: | 0017| (a) The Tribal Gaming Agency will provide | 0018| applications to potential applicants upon | 0019| request and shall collect and maintain the | 0020| applications. | 0021| (b) Pursuant to a Memorandum of Understanding | 0022| between the Tribe and the Commission, tribal | 0023| police officers will collect fingerprints | 0024| from all applicants and forward the | 0025| fingerprint cards directly to the | 0001| Commission. The Commission will obtain a | 0002| criminal history record from the Federal | 0003| Bureau of Investigation on each applicant | 0004| and forward such information to the Tribal | 0005| Gaming Agency. | 0006| (c) The Tribal Gaming Agency shall investigate | 0007| the information provided in the | 0008| applications. This investigation shall | 0009| include: | 0010| (1) contacting persons or entities identified | 0011| in the application and verifying by | 0012| written or oral communication that the | 0013| information contained in the application | 0014| is accurate; | 0015| (2) interviewing a sufficient number of | 0016| knowledgeable people, such as former | 0017| employers, partners, business associates, | 0018| and others referred to in the | 0019| application, to provide a basis for the | 0020| Tribal Gaming Agency to make a | 0021| determination concerning whether the | 0022| applicant meets applicable eligibility | 0023| requirements; | 0024| (3) reviewing relevant financial records of | 0025| the applicant for the three (3) years | 0001| preceding the application; and | 0002| (4) contacting any state, federal or other | 0003| government agency that is referred to in | 0004| the application. | 0005| (d) The Tribal Gaming Agency shall document any | 0006| information it obtains that calls into | 0007| question whether the applicant would meet the | 0008| eligibility requirements under the Ordinance. | 0009| The Tribal Gaming Agency shall then document | 0010| in detail the disposition of these problem | 0011| areas, indicating the follow-up investigations | 0012| performed on the problem areas and the result | 0013| of such investigations. | 0014| (e) The Tribal Gaming Agency will review the | 0015| results of the investigation. This review | 0016| will include a determination as to the scope | 0017| of the investigation and whether sufficient | 0018| information was obtained and verified. If | 0019| such information is found not sufficient, the | 0020| Tribal Gaming Agency will perform additional | 0021| investigations. | 0022| (f) Once the investigation is complete, the Tribal | 0023| Gaming Agency will decide whether the | 0024| applicant meets the eligibility criteria under | 0025| the Ordinance. | 0001| 3. In conducting a background investigation, the | 0002| Tribal Gaming Agency and its agents shall keep | 0003| confidential the identity of each person | 0004| interviewed in the course of the investigation. | 0005| 4. Within twenty (20) days of the receipt of a | 0006| completed application for licensing, and upon | 0007| request of an applicant, the Tribal Gaming Agency | 0008| may issue a temporary license to the applicant, | 0009| unless the background investigation undertaken | 0010| discloses that the applicant has a criminal | 0011| history, or unless other grounds sufficient to | 0012| disqualify the applicant are apparent on the face | 0013| of the application. The temporary license shall | 0014| become void and be of no effect upon either: | 0015| (a) the issuance of the license; | 0016| (b) the issuance of a notice of denial; or | 0017| (c) ninety (90) days after the temporary license | 0018| is issued, whichever occurs first. | 0019| 5. The Tribal Gaming Agency shall review a person's | 0020| prior activities, criminal record, if any, and | 0021| reputation, habits and associations to make a | 0022| finding concerning the eligibility or suitability | 0023| of an applicant, or a principal, key employee or | 0024| primary management official of an applicant, for | 0025| employment or involvement in a gaming enterprise. | 0001| After such consultation, the Tribal Gaming Agency | 0002| shall either issue a license or deny the | 0003| application. If the Tribal Gaming Agency | 0004| determines that employment or involvement of the | 0005| applicant poses a threat to the public interest or | 0006| to the effective regulation of Class III Gaming or | 0007| creates or enhances dangers of unsuitable, unfair | 0008| or illegal practices, methods or activities in the | 0009| conduct of Class III Gaming, the Tribal Gaming | 0010| Agency shall deny the application. | 0011| 6. The Tribal Gaming Agency shall retain the right to | 0012| conduct additional background investigations of any | 0013| person required to be licensed at any time while | 0014| the license is valid. | 0015| D. Procedure for Forwarding Applications and Reports. | 0016| Procedures for forwarding applications and investigative reports | 0017| to the Commission and State Gaming Representative: | 0018| 1. When a key employee or primary management official | 0019| begins work at a gaming enterprise authorized by | 0020| this Compact, the Tribal Gaming Agency shall | 0021| forward to the Commission and the State Gaming | 0022| Representative a completed application for | 0023| employment. | 0024| 2. The Tribal Gaming Agency shall forward the report | 0025| referred to in Paragraph D.4. of this section to | 0001| the Commission and the State Gaming Representative | 0002| within sixty (60) days after an employee begins | 0003| work, or within sixty (60) days of the approval of | 0004| this Compact by the Secretary of the Interior. | 0005| 3. A key employee or primary management official who | 0006| does not have a license shall not be employed after | 0007| ninety (90) days. | 0008| 4. The Tribal Gaming Agency shall prepare and forward | 0009| to the Commission and the State Gaming | 0010| Representative a report on each background | 0011| investigation ("Investigative Report"). An | 0012| Investigative Report shall include all of the | 0013| following: | 0014| (a) steps taken in conducting the background | 0015| investigation; | 0016| (b) results obtained; | 0017| (c) conclusions reached; and | 0018| (d) the basis for those conclusions. | 0019| 5. The Tribal Gaming Agency shall submit with the | 0020| Investigative Report a copy of the eligibility | 0021| determination made under Paragraph C.5. of this | 0022| section. | 0023| 6. If a license is not issued to an applicant, the | 0024| Tribal Gaming Agency shall notify the Commission | 0025| and the State Gaming Representative. | 0001| 7. With respect to principals, key employees and | 0002| primary management officials, the Tribal Gaming | 0003| Agency shall retain applications for employment and | 0004| Investigative Reports (if any) for no less than | 0005| three (3) years from the date of termination of | 0006| employment. | 0007| E. Granting a Gaming License. | 0008| 1. If within thirty (30) days after it receives an | 0009| Investigative Report, neither the Commission nor | 0010| the State Gaming Representative has notified the | 0011| Tribal Gaming Agency that it has an objection to | 0012| the issuance of a license pursuant to a license | 0013| application filed by a principal, key employee or | 0014| primary management official, the Tribal Gaming | 0015| Agency may issue a license to such applicant. | 0016| 2. The Tribal Gaming Agency shall respond to any | 0017| request for additional information from the | 0018| Commission or the State Gaming Representative | 0019| concerning a principal, key employee or primary | 0020| management official who is the subject of an | 0021| Investigative Report. Such a request shall suspend | 0022| the thirty-day (30-day) period under Paragraph E.1. | 0023| of this section until the Commission or the State | 0024| Gaming Representative receives the additional | 0025| information; however, in no event shall a request | 0001| for additional information by the State Gaming | 0002| Representative extend the thirty-day (30-day) | 0003| period under Paragraph E.1. of this section for a | 0004| total period of more than sixty (60) days from the | 0005| date the State Gaming Representative received the | 0006| Investigative Report. | 0007| 3. If, within the thirty-day (30-day) period described | 0008| above, the Commission or the State Gaming | 0009| Representative provides the Tribal Gaming Agency | 0010| with a statement itemizing objections to the | 0011| issuance of a license to a principal, key employee | 0012| or primary management official for whom the Tribal | 0013| Gaming Agency has provided an application and | 0014| Investigative Report, the Tribal Gaming Agency | 0015| shall reconsider the application, taking into | 0016| account the objections itemized by the Commission | 0017| and/or the State Gaming Representative, and make a | 0018| final decision whether to issue a license to such | 0019| applicant. | 0020| F. Management Contract. | 0021| 1. If the Tribe chooses to enter into a Management | 0022| Contract, the Tribal Gaming Agency shall require | 0023| that all principals, primary management officials | 0024| and key employees of the Management Contractor be | 0025| licensed. | 0001| 2. The Tribe may enter into a Management Contract only | 0002| if the Management Contract: | 0003| (a) provides that all Class III Gaming covered by | 0004| the Management Contract will be conducted in | 0005| accordance with the IGRA, the Ordinance and | 0006| this Compact; | 0007| (b) enumerates the responsibilities of each of the | 0008| parties for each identifiable function, | 0009| including: | 0010| (1) maintaining and improving the Gaming | 0011| Facility; | 0012| (2) providing operating capital; | 0013| (3) establishing operating days and hours; | 0014| (4) hiring, firing, training and promoting | 0015| employees; | 0016| (5) maintaining the gaming enterprise's books | 0017| and records; | 0018| (6) preparing the gaming enterprise's | 0019| financial statements and reports; | 0020| (7) paying for the services of the | 0021| independent auditor engaged pursuant to | 0022| 25 C.F.R. 571.12; | 0023| (8) hiring and supervising security | 0024| personnel; | 0025| (9) providing fire protection services; | 0001| (10) setting an advertising budget and placing | 0002| advertising; | 0003| (11) paying bills and expenses; | 0004| (12) establishing and administering employment | 0005| practices; | 0006| (13) obtaining and maintaining insurance | 0007| coverage, including coverage of public | 0008| liability and property loss or damage; | 0009| (14) complying with all applicable provisions | 0010| of the Internal Revenue Code of 1986, as | 0011| amended; | 0012| (15) paying the cost of public safety | 0013| services; and | 0014| (16) if applicable, supplying the Commission | 0015| with all information necessary for the | 0016| Commission to comply with the National | 0017| Environmental Policy Act of 1969; | 0018| (c) provides for the establishment and maintenance | 0019| of satisfactory accounting systems and | 0020| procedures that shall, at a minimum: | 0021| (1) include an adequate system of internal | 0022| controls; | 0023| (2) permit the preparation of financial | 0024| statements in accordance with generally | 0025| accepted accounting principles; | 0001| (3) be susceptible to audit; | 0002| (4) permit the calculation and payment of the | 0003| Management Contractor's fee; and | 0004| (5) provide for the allocation of operating | 0005| expenses or overhead expenses among the | 0006| Tribe, the Management Contractor and any | 0007| other user of a shared Gaming Facility | 0008| and services; | 0009| (d) requires the Management Contractor to provide | 0010| the Tribe, not less frequently than monthly, | 0011| verifiable financial reports or all | 0012| information necessary to prepare such reports; | 0013| (e) requires the Management Contractor to provide | 0014| immediate access to the Gaming Facility, | 0015| including its books and records, by | 0016| appropriate officials of the Tribe, who shall | 0017| have: | 0018| (1) the right to verify the daily gross | 0019| revenues and income from the gaming | 0020| enterprise; and | 0021| (2) access to any other gaming-related | 0022| information the Tribe deems appropriate; | 0023| (f) provides for a minimum guaranteed monthly | 0024| payment to the Tribe in a sum certain that has | 0025| preference over the retirement of development | 0001| and construction costs; | 0002| (g) provides an agreed upon maximum dollar amount | 0003| for the recoupment of development and | 0004| construction costs; | 0005| (h) provides for a term not to exceed the period | 0006| allowed by the IGRA; | 0007| (i) details the method of compensating and | 0008| reimbursing the Management Contractor. If a | 0009| Management Contract provides for a percentage | 0010| fee, such fee shall be either: | 0011| (1) not more than thirty percent (30%) of the | 0012| net revenues of the gaming enterprise if | 0013| the Chairman of the Commission determines | 0014| that such percentage is reasonable | 0015| considering the circumstances; or | 0016| (2) not more than forty percent (40%) of the | 0017| net revenues if the Chairman of the | 0018| Commission is satisfied that the capital | 0019| investment required and income | 0020| projections for the gaming enterprise | 0021| require the additional fee; | 0022| (j) provides the grounds and mechanisms for | 0023| modifying or terminating the Management | 0024| Contract; | 0025| (k) contains a mechanism to resolve disputes | 0001| between: | 0002| (1) the Management Contractor and customers, | 0003| consistent with the procedures in the | 0004| Ordinance; | 0005| (2) the Management Contractor and the Tribe; | 0006| and | 0007| (3) the Management Contractor and the gaming | 0008| enterprise employees; | 0009| (l) indicates whether and to what extent contract | 0010| assignments and subcontracting are | 0011| permissible; | 0012| (m) indicates whether and to what extent changes | 0013| in the ownership interest in the Management | 0014| Contract require advance approval by the | 0015| Tribe; and | 0016| (n) states that the Management Contract shall not | 0017| be effective unless and until it is approved | 0018| by the Chairman of the Commission, date of | 0019| signature of the parties notwithstanding. | 0020| 3. The Tribe shall not enter into any Management | 0021| Contract if the Tribal Gaming Agency determines | 0022| that the Management Contractor or any principal, | 0023| primary management official or key employee of the | 0024| Management Contractor is not licensed or is | 0025| ineligible to be licensed. | 0001| G. Confidentiality of Records. Any and all background | 0002| Investigative Reports on employees or contractors, supporting | 0003| documents acquired or generated in connection therewith, and any | 0004| other Investigative Reports or documents acquired or generated | 0005| in the course of investigations performed by the Tribe or the | 0006| Tribal Gaming Agency, that are provided to the State Gaming | 0007| Representative or any other agency or official of the State by | 0008| the Tribal Gaming Agency or the Tribe pursuant to the provisions | 0009| of this Compact, shall not be deemed public records of the State | 0010| and shall not be disclosed to any member of the public without | 0011| the prior express written authorization of an authorized | 0012| representative of the Tribe; provided, that nothing herein shall | 0013| preclude any State agency or official from providing information | 0014| to a federal agency or official having responsibility relative | 0015| to Indian Gaming or from compliance with any valid order of a | 0016| court having jurisdiction. | 0017| SECTION 6. Providers of Class III Gaming Equipment or Devices | 0018| or Supplies. | 0019| A. Within thirty (30) days after the effective date of | 0020| this Compact, if it has not already done so, the Tribal Gaming | 0021| Agency will adopt standards for any and all Class III Gaming | 0022| equipment, devices or supplies to be purchased, leased or | 0023| otherwise acquired by the Tribe after the effective date of this | 0024| Compact for use in any Gaming Facility, which standards shall be | 0025| at least as strict as the comparable standards applicable to | 0001| Class III Gaming equipment, devices or supplies within the State | 0002| of Nevada. Any and all Class III Gaming equipment, devices or | 0003| supplies acquired by the Tribe after the date of this Compact | 0004| shall meet or exceed the standards thereby adopted, and any and | 0005| all Class III Gaming equipment, devices or supplies used by the | 0006| Tribe in its Gaming Facilities as of the effective date of this | 0007| Compact shall be upgraded or replaced, if necessary, so as to | 0008| comply with such standards, by no later than one (1) year after | 0009| the effective date of this Compact. | 0010| B. Prior to entering into any future lease or purchase | 0011| agreement for Class III Gaming equipment, devices or supplies, | 0012| the Tribe shall obtain sufficient information and identification | 0013| from the proposed seller or lessor and all persons holding any | 0014| direct or indirect financial interest in the lessor or the | 0015| lease/purchase agreement to permit the Tribe to license those | 0016| persons in accordance with Section 5, hereof. | 0017| C. The seller, lessor, manufacturer or distributor shall | 0018| provide, assemble and install all Class III Gaming equipment, | 0019| devices or supplies in a manner approved and licensed by the | 0020| Tribe. | 0021| SECTION 7. Dispute Resolution. | 0022| A. In the event either party believes that the other | 0023| party has failed to comply with or has otherwise breached any | 0024| provision of this Compact, such party may invoke the following | 0025| procedure: | 0001| 1. The party asserting noncompliance shall serve | 0002| written notice on the other party. The notice | 0003| shall identify the specific Compact provision | 0004| believed to have been violated and shall specify | 0005| the factual and legal basis for the alleged | 0006| noncompliance. The notice shall specifically | 0007| identify the date, time and nature of the alleged | 0008| noncompliance. Representatives of the State and | 0009| Tribe shall thereafter meet within thirty (30) days | 0010| in an effort to resolve the dispute. | 0011| 2. In the event an allegation by the complaining party | 0012| is not resolved to the satisfaction of such party | 0013| within ninety (90) days after service of the notice | 0014| set forth in Paragraph A.1. of this section, the | 0015| complaining party may serve upon the other party a | 0016| notice to cease conduct of the particular game(s) | 0017| or activities alleged by the complaining party to | 0018| be in noncompliance. Upon receipt of such notice, | 0019| the responding party may elect to stop the game(s) | 0020| or activities specified in the notice or invoke | 0021| arbitration and continue the game(s) or activities | 0022| pending the results of arbitration. The responding | 0023| party shall act upon one of the foregoing options | 0024| within thirty (30) days of receipt of notice from | 0025| the complaining party. | 0001| 3. Arbitration under this authority shall be conducted | 0002| under the Commercial Arbitration Rules of the | 0003| American Arbitration Association, except that the | 0004| arbitrators shall be attorneys who are licensed | 0005| members in good standing of the State Bar of New | 0006| Mexico or of the bar of another state. The State | 0007| will select one arbitrator, the Tribe a second | 0008| arbitrator, and the two so chosen shall select a | 0009| third arbitrator. If the third arbitrator is not | 0010| chosen in this manner within ten (10) days after | 0011| the second arbitrator is selected, the third | 0012| arbitrator will be chosen in accordance with the | 0013| rules of the American Arbitration Association. | 0014| 4. All parties shall bear their own costs of | 0015| arbitration and attorney fees. | 0016| 5. The results of arbitration shall be enforceable by | 0017| an action for injunctive or mandatory injunctive | 0018| relief against the State and the Tribe in any court | 0019| of competent jurisdiction. For purposes of any | 0020| such action, the State and the Tribe acknowledge | 0021| that any action or failure to act on the part of | 0022| any agent or employee of the State or the Tribe, | 0023| contrary to a decision of the arbitrators in an | 0024| arbitration proceeding conducted under the | 0025| provisions of this section, occurring after such | 0001| decision, shall be wholly unauthorized and ultra | 0002| vires acts, not protected by the sovereign immunity | 0003| of the State or the Tribe. | 0004| B. Nothing in Subsection 7A. shall be construed to waive, | 0005| limit or restrict any remedy that is otherwise available to | 0006| either party to enforce or resolve disputes concerning the | 0007| provisions of this Compact. Nothing in this Compact shall be | 0008| deemed a waiver of the Tribe's sovereign immunity. Nothing in | 0009| this Compact shall be deemed a waiver of the State's sovereign | 0010| immunity. | 0011| SECTION 8. Protection of Patrons. | 0012| A. Liability to Patrons. To ensure the personal safety | 0013| and protection of patrons and other invitees of a Tribe's Gaming | 0014| Facility operated under the provisions of this Compact, the | 0015| Tribe shall at all times maintain in effect a policy of public | 0016| liability insurance, insuring the Tribe, its agents and | 0017| employees against any claims, demands or liability that may | 0018| arise as a result of personal injury to any person (other than | 0019| an employee of the gaming establishment) occurring anywhere on | 0020| the premises of any gaming establishment operated by the Tribe | 0021| under the provisions of this Compact, or as a result of any act | 0022| or omission of any agent or employee of such gaming | 0023| establishment while in the course of his or her employment, | 0024| which policy shall provide personal injury coverage of no less | 0025| than one million dollars ($1,000,000) per injured person and ten | 0001| million dollars ($10,000,000) aggregate per policy year. | 0002| The Tribe agrees that it will require that the insurance | 0003| contract provide that in the event of any claim made against it | 0004| or its gaming enterprise, or any agent or employee thereof, | 0005| arising out of any personal injury as described above, neither | 0006| the Tribe nor its insurer will assert any defense of immunity | 0007| from suit as to such claim for compensatory damages up to the | 0008| amount of one million dollars ($1,000,000) per injured person, | 0009| in any claim pursued as provided in this subsection; provided, | 0010| however, that this agreement not to assert such defense shall be | 0011| strictly limited as provided herein, and shall not apply to any | 0012| claim for punitive damages, or to any claim for any loss or | 0013| damage other than that arising from actual bodily injury or | 0014| death, or to any claim for damages in excess of the amount set | 0015| forth herein. Nothing herein shall be construed as stating or | 0016| implying that the Tribe has waived or agreed not to assert its | 0017| immunity from suit for any other purpose or in any other | 0018| circumstance other than the limited purposes and circumstances | 0019| expressly set forth herein, and nothing herein shall be | 0020| construed as an admission of liability as to any claim for | 0021| damages or as an agreement or indication of willingness to pay | 0022| any amount as damages absent a determination of fault, and the | 0023| Tribe or its insurer, or both, shall in every instance have the | 0024| right to defend any such claim fully on the merits. | 0025| Any person wishing to prosecute a claim for personal | 0001| injury against the Gaming Enterprise as provided in this | 0002| subsection, and who is unable to arrive at a satisfactory | 0003| settlement of such claim, may proceed, by no later than three | 0004| (3) years after the date of the incident giving rise to the | 0005| claim, either by filing suit in the tribal court of the Tribe, | 0006| or by demanding binding arbitration as provided herein. The | 0007| Tribe agrees that it will provide a tribal court that is | 0008| competent to hear such claims, and that it will permit its | 0009| Gaming Enterprise, and the employees thereof, to be sued in such | 0010| courts on such claims, subject to the conditions set forth in | 0011| this subsection. A claimant who wishes to proceed by binding | 0012| arbitration shall submit a written demand therefor to the Gaming | 0013| Enterprise, by certified mail, return receipt requested. The | 0014| claimant and the Gaming Enterprise shall each designate an | 0015| arbitrator within thirty (30) days of the date of receipt of | 0016| such demand, and the two arbitrators shall select a third | 0017| arbitrator. The arbitration panel shall permit the parties to | 0018| engage in reasonable discovery, and shall establish other | 0019| procedures so as to assure a full, fair and expeditious hearing | 0020| on the claim. The award of the arbitration panel shall be final | 0021| and binding (except that any such award of damages to the | 0022| claimant shall in no event exceed the limits of liability set | 0023| forth in this subsection). The Tribe's insurer shall be subject | 0024| to suit in any court of competent jurisdiction for enforcement | 0025| of the arbitration award. | 0001| The Tribe shall provide to the State Gaming Representative | 0002| annually a certificate of insurance showing that its gaming | 0003| enterprise and its agents and employees engaged therein are | 0004| insured to the extent and in the circumstances required by this | 0005| section. If the State Gaming Representative so requests in | 0006| writing, the certificate of insurance may be furnished directly | 0007| to the State Gaming Representative from the insurance carrier or | 0008| the insuring agency for the insured Tribe. | 0009| The Tribe's failure to comply with any awards by an | 0010| arbitration panel or judgment of a tribal court in any action | 0011| brought under the provisions of this section shall be deemed a | 0012| violation of the Compact and may be enforced by the State under | 0013| the provisions of Section 7. | 0014| B. Public Health and Safety. The Tribe shall establish | 0015| for its Gaming Facility health, safety and construction | 0016| standards that are at least as stringent as the current editions | 0017| of the National Electrical Code, the Uniform Building Code, the | 0018| Uniform Mechanical Code, the Uniform Fire Code and the Uniform | 0019| Plumbing Code, and any and all Gaming Facilities or additions | 0020| thereto constructed by the Tribe hereafter shall be constructed | 0021| and all facilities shall be maintained so as to comply with such | 0022| standards. Inspections will be conducted with respect to these | 0023| standards at least annually. If the State Gaming Representative | 0024| requests sufficiently in advance of an annual inspection, the | 0025| State Gaming Representative may be present during such | 0001| inspection. The Tribe agrees to correct any deficiencies noted | 0002| in such inspections within a reasonable period of time. The | 0003| Tribal Gaming Agency will provide copies of such inspection | 0004| reports to the State Gaming Representative, if requested to do | 0005| so in writing. | 0006| SECTION 9. Effective Date. This Compact shall be effective | 0007| immediately upon the occurrence of the last of the following: | 0008| A. execution by the Tribe's Governor after approval of | 0009| the Tribal Council; | 0010| B. execution by the Governor of the State; | 0011| C. approval by the Secretary of the Interior; and | 0012| D. publication in the Federal Register. | 0013| The Governor is authorized to execute compacts with an | 0014| individual Tribe that has also entered into revenue-sharing | 0015| agreements and has passed resolutions described herein, in | 0016| substantially the same form as set forth herein. Upon signature | 0017| by the Governor and the Tribe, the Compact shall be transmitted | 0018| to the Secretary of the Interior for approval. | 0019| SECTION 10. Criminal Jurisdiction. | 0020| A. The Tribe and the State acknowledge that under the | 0021| provisions of 23 of the IGRA, especially that portion codified | 0022| at 18 U.S.C. 1166(d), jurisdiction to prosecute violations of | 0023| State gambling laws made applicable by that section to Indian | 0024| country is vested exclusively within the United States, unless | 0025| the Tribe and the State agree in a compact entered into the IGRA | 0001| to transfer such jurisdiction to the State. | 0002| B. The Tribe and the State hereby agree that, in the | 0003| event of any violation of any State gambling law on Indian Lands | 0004| or any other crime against the Gaming Enterprise or any employee | 0005| thereof or that occurs on the premises of the Tribal Gaming | 0006| Facility, that is committed by any person who is not a member of | 0007| the Tribe, the State shall have and may exercise jurisdiction, | 0008| concurrent with that of the United States, to prosecute such | 0009| person, under its laws and in its courts. | 0010| C. Immediately upon becoming aware of any such suspected | 0011| crime by a nonmember of the Tribe, the Gaming Enterprise or the | 0012| Tribal Gaming Agency shall notify the state attorney general and | 0013| the district attorney for the district in which the Gaming | 0014| Facility is located, supplying all particulars available to the | 0015| tribal entity at the time. The Tribe agrees that its law | 0016| enforcement and gaming agencies shall perform such additional | 0017| investigation or take such other steps in furtherance of the | 0018| investigation and prosecution of the violation as the district | 0019| attorney may reasonably request, and otherwise cooperate fully | 0020| with the district attorney and any state law enforcement | 0021| agencies with respect to the matter, but once notice of a | 0022| suspected violation has been given to the district attorney, the | 0023| matter shall be deemed to be under the jurisdiction of the State | 0024| (except that in the event of emergency circumstances involving a | 0025| possible violation, the Tribe and its constituent agencies shall | 0001| have the discretion to act as they see fit, and to call upon | 0002| such other agencies or entities as they deem reasonable or | 0003| necessary, in order to protect against any immediate threat to | 0004| lives or property). The State may, in its discretion, refer the | 0005| matter to federal authorities, but it shall notify the Tribal | 0006| Gaming Agency upon doing so. | 0007| D. The State agrees that no less frequently than annually | 0008| it will provide the Tribal Gaming Agency with a written report | 0009| of the status and disposition of each matter referred to it | 0010| under the provisions of this section that is still pending. In | 0011| the event the district attorney to whom a matter is referred | 0012| under the provisions of this section decides not to prosecute | 0013| such matter, the district attorney shall promptly notify the | 0014| Tribal Gaming Agency of such decision in writing, setting forth | 0015| the specific reasons therefor. The Tribal Gaming Agency may in | 0016| that event ask the attorney general of the state to pursue the | 0017| matter. | 0018| E. The district attorney for the district in which the | 0019| Gaming Facility is situated may decline to accept referrals of | 0020| cases under the provisions of this section unless and until the | 0021| Tribe has entered into a Memorandum of Understanding with the | 0022| office of the district attorney to which Memorandum of | 0023| Understanding the United States Attorney for the District of New | 0024| Mexico may also be a party addressing such matters as the | 0025| specific procedures by which cases are to be referred, | 0001| participation of the Tribal Gaming Agency and tribal law | 0002| enforcement personnel in the investigation and prosecution of | 0003| any such case, payments by the Tribe to the office of the | 0004| district attorney to defray the costs of handling cases referred | 0005| under the provisions of this section, and related matters. | 0006| SECTION 11. Binding Effect and Duration. | 0007| A. This Compact shall be binding upon the State and Tribe | 0008| for a term of eight (8) years from the date it becomes effective | 0009| and may renew for an additional four-year (4-year) period. | 0010| B. Before the date that is one (1) year prior to the | 0011| expiration of the eight-year (8-year) initial term, and/or | 0012| before the date that is one (1) year prior to the expiration of | 0013| the four-year (4-year) renewal period, either party may serve | 0014| written notice on the other of its desire to renegotiate this | 0015| Compact. | 0016| C. In the event that either party gives written notice to | 0017| the other of its desire to renegotiate this Compact pursuant to | 0018| Subsection B. of this section, the Tribe may, pursuant to the | 0019| procedures of the IGRA, request the State to enter into | 0020| negotiations for a new compact governing the conduct of Class | 0021| III Gaming. If the parties are unable to conclude a successor | 0022| compact, this Compact shall terminate. | 0023| D. Notwithstanding the foregoing, at any time while this | 0024| Compact remains in effect, either party may, by written notice | 0025| to the other party, request reopening of negotiations with | 0001| respect to any provision of this Compact, or with respect to any | 0002| issue not addressed in the Compact, specifying such provision or | 0003| issue in such notice. No such request shall be unreasonably | 0004| refused, but neither party shall be required to agree to any | 0005| change in the Compact, and no agreement to supplement or amend | 0006| this Compact in any respect shall have any validity until the | 0007| same shall have been approved in writing by the Tribe, the State | 0008| and the Secretary of the Interior and notice of such approval | 0009| published in the Federal Register. | 0010| E. The Tribe may operate Class III Gaming only while this | 0011| Compact or any renegotiated compact is in effect. | 0012| SECTION 12. Notice to Parties. | 0013| Unless otherwise indicated, all notices, payments, | 0014| requests, reports, information or demand that any party hereto | 0015| may desire or may be required to give to the other party hereto, | 0016| shall be in writing and shall be personally delivered or sent by | 0017| first-class mail sent to the other party at the address provided | 0018| in writing by the other party. Every notice, payment, request, | 0019| report, information or demand so given shall be deemed effective | 0020| upon receipt or, if mailed, upon receipt or the expiration of | 0021| the third day following the day of mailing, whichever occurs | 0022| first, except that any notice of change of address shall be | 0023| effective only upon receipt by the party to whom said notice is | 0024| addressed. | 0025| SECTION 13. Entire Agreement. | 0001| This Compact is the entire agreement between the parties | 0002| and supersedes all prior agreements, whether written or oral, | 0003| with respect to the subject matter hereof. Neither this Compact | 0004| nor any provision herein may be changed, waived, discharged or | 0005| terminated orally, but only by an instrument, in writing, signed | 0006| by the Tribe and the State and approved by the Secretary of the | 0007| Interior. | 0008| SECTION 14. Filing of Compact with State Records Center. | 0009| Upon the effective date of this Compact, a copy shall be | 0010| filed by the Governor with the New Mexico Records Center. Any | 0011| subsequent amendment or modification of this Compact shall be | 0012| filed with the New Mexico Records Center. | 0013| SECTION 15. Counterparts. | 0014| This Compact may be executed by the parties in any number | 0015| of separate counterparts with the same effect as if the | 0016| signatures were upon the same instrument. All such counterparts | 0017| shall together constitute one and the same document." | 0018| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL | 0019| GAMING REVENUE.--The governor is authorized to execute a | 0020| revenue-sharing agreement in the form substantially set forth in | 0021| this section with any New Mexico Indian nation, tribe or pueblo | 0022| that has also entered into an Indian gaming compact as provided | 0023| by law. Execution of an Indian gaming compact is conditioned | 0024| upon execution of a revenue-sharing agreement. The | 0025| consideration for the Indian entity entering into the revenue- | 0001| sharing agreement is the condition of the agreement providing | 0002| limited exclusivity of gaming activities to the tribal entity. | 0003| The revenue-sharing agreement shall be in substantially the | 0004| following form and is effective when executed by the governor on | 0005| behalf of the state and the appropriate official of the Indian | 0006| entity: | 0007| "REVENUE-SHARING AGREEMENT | 0008| 1. Summary and consideration. The Tribe shall agree to | 0009| contribute certain of its Class III Gaming revenues, as | 0010| described below. | 0011| 2. Revenue to State. The parties agree that, after the | 0012| effective date hereof, the Tribe shall make semi-annual payments | 0013| to the General Fund of the State ("State General Fund"). | 0014| 3. Calculation of Revenue to State. | 0015| A. The parties agree that, as used herein, "net win" | 0016| is defined as the total amount wagered at each Gaming Facility | 0017| on Class III Gaming, which is protected by the limitations in | 0018| Paragraph 5, below, and elsewhere herein, minus the total amount | 0019| paid as prizes (including noncash prizes) and winning wagers at | 0020| said games, and minus all tribal regulatory fees and expenses, | 0021| supported by reasonable, adequate documentation, not to exceed | 0022| two hundred fifty thousand dollars ($250,000) per year and minus | 0023| federal and State regulatory fees and expenses, and taxes. | 0024| B. The tribe shall pay the state fifteen percent of | 0025| the net win of each Gaming Facility. | 0001| C. For purposes of these payments, all calculations | 0002| of amounts due shall be based upon a calendar year beginning | 0003| January 1 and ending December 31, unless the parties agree on a | 0004| different fiscal year. The semiannual payments due to the State | 0005| pursuant to these terms shall be paid no later than twenty-five | 0006| (25) days after December 31 and June 30 of each year (or | 0007| commensurate dates if the fiscal year agreed upon is different | 0008| from the calendar year). Any payments due and owing from the | 0009| Tribe in the year the Compact is approved, or the final year the | 0010| Compact is in force, shall reflect the net win, but only for the | 0011| portion of the year the Compact is in effect. | 0012| 4. Limitations. The Tribe's obligation to make the | 0013| payments provided for in Paragraphs 2 and 3 of this section | 0014| shall apply and continue only so long as there is a binding | 0015| Indian Gaming Compact in effect between the Tribe and the State, | 0016| which Compact provides for the play of Class III Gaming, but | 0017| shall terminate in the event of any of the following conditions: | 0018| A. If the State passes, amends, or repeals any law, | 0019| or takes any other action, which would directly or indirectly | 0020| attempt to restrict, or has the effect of restricting, the scope | 0021| of Indian gaming. | 0022| B. If the State permits any expansion of nontribal | 0023| Class III Gaming in the State. Notwithstanding this general | 0024| prohibition against permitted expansion of gaming activities, | 0025| the State may permit: (1) the enactment of a State lottery, (2) | 0001| any fraternal, veterans or other nonprofit membership | 0002| organization to operate such electronic gaming devices lawfully, | 0003| but only for the benefit of such organization's members, (3) | 0004| limited fundraising activities conducted by nonprofit tax exempt | 0005| organizations pursuant to Section 30-19-6 NMSA 1978, and (4) any | 0006| horse racetracks to operate electronic gaming devices on days on | 0007| which live or simulcast horse racing occurs. | 0008| 5. Effect of Variance. | 0009| A. In the event the acts or omissions of the State | 0010| cause the Tribe's obligation to make payments under Paragraph 3 | 0011| of this section to terminate under the provisions of Paragraph 4 | 0012| of this section, such cessation of obligation to pay will not | 0013| adversely affect the validity of the Compact, but the maximum | 0014| amount that the Tribe agrees to reimburse the State for actual | 0015| documented regulatory costs under the Compact shall | 0016| automatically increase to one hundred thousand dollars | 0017| ($100,000) per year. | 0018| B. In the event a Tribe's revenue-sharing payment to | 0019| the State is less than one hundred thousand dollars ($100,000) | 0020| per year, the maximum amount that the Tribe agrees to reimburse | 0021| the State for actual documented regulatory costs under the | 0022| Compact shall automatically increase to one hundred thousand | 0023| dollars ($100,000) per year less the amount of the revenue- | 0024| sharing payment. 6. Third-Party Beneficiaries. This | 0025| Agreement is not intended to create any third-party | 0001| beneficiaries and is entered into solely for the benefit of the | 0002| Tribe and the State." | 0003| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 | 0004| through 62 of this act may be cited as the "Gaming Control Act". | 0005| Section 4. [NEW MATERIAL] POLICY.--It is the state's | 0006| policy on gaming that: | 0007| A. limited gaming activities should be allowed in | 0008| the state if those activities are strictly regulated to ensure | 0009| honest and competitive gaming that is free from criminal and | 0010| corruptive elements and influences; and | 0011| B. the holder of any license issued by the state in | 0012| connection with the regulation of gaming activities has a | 0013| revocable privilege only and has no property right or vested | 0014| interest in the license. | 0015| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0016| Gaming Control Act: | 0017| A. "affiliate" means a person who, directly or | 0018| indirectly through one or more intermediaries, controls, is | 0019| controlled by or is under common control with a specified | 0020| person; | 0021| B. "affiliated company" means a company that: | 0022| (1) controls, is controlled by or is under | 0023| common control with a company licensee; and | 0024| (2) is involved in gaming activities or | 0025| involved in the ownership of property on which gaming is | 0001| conducted; | 0002| C. "applicant" means a person who has applied for a | 0003| license or for approval of an act or transaction for which | 0004| approval is required or allowed pursuant to the provisions of | 0005| the Gaming Control Act; | 0006| D. "application" means a request for the issuance of | 0007| a license or for approval of an act or transaction for which | 0008| approval is required or allowed pursuant to the provisions of | 0009| the Gaming Control Act, but "application" does not include a | 0010| supplemental form or information that may be required with the | 0011| application; | 0012| E. "associated equipment" means equipment or a | 0013| mechanical, electromechanical or electronic contrivance, | 0014| component or machine used in connection with gaming; | 0015| F. "board" means the gaming control board; | 0016| G. "certification" means a notice of approval by the | 0017| board of a person required to be certified by the board; | 0018| H. "certified technician" means a person certified | 0019| by a manufacturer licensee to repair and service gaming devices, | 0020| but who is prohibited from programming gaming devices; | 0021| I. "company" means a corporation, partnership, | 0022| limited partnership, trust, association, joint stock company, | 0023| joint venture, limited liability company or other form of | 0024| business organization that is not a natural person; | 0025| J. "distributor" means a person who supplies gaming | 0001| devices to a gaming operator but does not manufacture gaming | 0002| devices; | 0003| K. "equity security" means an interest in a company | 0004| that is evidenced by: | 0005| (1) voting stock or similar security; | 0006| (2) a security convertible into voting stock or | 0007| similar security, with or without consideration, or a security | 0008| carrying a warrant or right to subscribe to or purchase voting | 0009| stock or similar security; | 0010| (3) a warrant or right to subscribe to or | 0011| purchase voting stock or similar security; or | 0012| (4) a security having a direct or indirect | 0013| participation in the profits of the issuer; | 0014| L. "executive director" means the chief | 0015| administrative officer appointed by the board pursuant to | 0016| Section 9 of the Gaming Control Act; | 0017| M. "finding of suitability" means a certification of | 0018| approval issued by the board permitting a person to be involved | 0019| directly or indirectly with a licensee, relating only to the | 0020| specified involvement for which it is made; | 0021| N. "game" means an activity in which, upon payment | 0022| of consideration, a player receives a prize or other thing of | 0023| value, the award of which is determined by chance even though | 0024| accompanied by some skill; "game" does not include an activity | 0025| played in a private residence in which no person makes money for | 0001| operating the activity except through winnings as a player; | 0002| O. "gaming" means offering a game for play; | 0003| P. "gaming activity" means any endeavor associated | 0004| with the manufacture or distribution of gaming devices or the | 0005| conduct of gaming; | 0006| Q. "gaming device" means associated equipment or a | 0007| gaming machine and includes a system for processing information | 0008| that can alter the normal criteria of random selection that | 0009| affects the operation of a game or determines the outcome of a | 0010| game; "gaming device" does not include a system or device that | 0011| affects a game solely by stopping its operation so that the | 0012| outcome remains undetermined; | 0013| R. "gaming employee" means a person connected | 0014| directly with a gaming activity; "gaming employee" does not | 0015| include: | 0016| (1) bartenders, cocktail servers or other | 0017| persons engaged solely in preparing or serving food or | 0018| beverages; | 0019| (2) secretarial or janitorial personnel; | 0020| (3) stage, sound and light technicians; or | 0021| (4) other nongaming personnel; | 0022| S. "gaming establishment" means the premises on or | 0023| in which gaming is conducted; | 0024| T. "gaming machine" means a mechanical, | 0025| electromechanical or electronic contrivance or machine that, | 0001| upon insertion of a coin, token or similar object, or upon | 0002| payment of any consideration, is available to play or operate a | 0003| game, whether the payoff is made automatically from the machine | 0004| or in any other manner; | 0005| U. "gaming operator" means a person who conducts | 0006| gaming; | 0007| V. "holding company" means a company that directly | 0008| or indirectly owns or has the power or right to control a | 0009| company that is an applicant or licensee, but a company that | 0010| does not have a beneficial ownership of more than ten percent of | 0011| the equity securities of a publicly traded corporation is not a | 0012| holding company; | 0013| W. "immediate family" means natural persons who are | 0014| related to a specified natural person by affinity or | 0015| consanguinity in the first through the third degree; | 0016| X. "independent administrator" means a person who | 0017| administers an annuity, who is not associated in any manner with | 0018| the gaming operator licensee for which the annuity was purchased | 0019| and is in no way associated with the person who will be | 0020| receiving the annuity; | 0021| Y. "institutional investor" means a state or federal | 0022| government pension plan or a person that meets the requirements | 0023| of a qualified institutional buyer as defined in Rule 144A of | 0024| the federal Securities Act of 1933, and is: | 0025| (1) a bank as defined in Section 3(a)(6) of the | 0001| federal Securities Exchange Act of 1934; | 0002| (2) an insurance company as defined in Section | 0003| 2(a)(17) of the federal Investment Company Act of 1940; | 0004| (3) an investment company registered under | 0005| Section 8 of the federal Investment Company Act of 1940; | 0006| (4) an investment adviser registered under | 0007| Section 203 of the federal Investment Advisers Act of 1940; | 0008| (5) collective trust funds as defined in | 0009| Section 3(c)(11) of the federal Investment Company Act of 1940; | 0010| (6) an employee benefit plan or pension fund | 0011| that is subject to the federal Employee Retirement Income | 0012| Security Act of 1974, excluding an employee benefit plan or | 0013| pension fund sponsored by a publicly traded corporation | 0014| registered with the board; or | 0015| (7) a group comprised entirely of persons | 0016| specified in Paragraphs (1) through (6) of this subsection; | 0017| Z. "intermediary company" means a company that: | 0018| (1) is a holding company with respect to a | 0019| company that is an applicant or licensee; and | 0020| (2) is a subsidiary with respect to any holding | 0021| company; | 0022| AA. "key executive" means an executive of a licensee | 0023| or other person having the power to exercise significant | 0024| influence over decisions concerning any part of the licensed | 0025| operations of the licensee or whose compensation exceeds an | 0001| amount established by the board in a regulation; | 0002| BB. "license" means an authorization required by the | 0003| board for engaging in gaming activities; | 0004| CC. "licensee" means a person to whom a valid | 0005| license has been issued; | 0006| DD. "manufacturer" means a person who manufactures, | 0007| fabricates, assembles, produces, programs or makes modifications | 0008| to any gaming device for use or play in New Mexico or for sale, | 0009| lease or distribution outside New Mexico from any location | 0010| within New Mexico; | 0011| EE. "net take" means the total of the following, | 0012| less the total of all cash paid out as losses to winning patrons | 0013| and those amounts paid to purchase annuities to fund losses paid | 0014| to winning patrons over several years by independent | 0015| administrators: | 0016| (1) cash received from patrons for playing a | 0017| game; | 0018| (2) cash received in payment for credit | 0019| extended by a licensee to a patron for playing a game; and | 0020| (3) compensation received for conducting a game | 0021| in which the licensee is not a party to a wager; | 0022| FF. "nonprofit organization" means: | 0023| (1) a fraternal organization that is described | 0024| in Section 501(c)(8) or (10) of the federal Internal Revenue | 0025| Code of 1986 and that is exempt from federal income taxation | 0001| pursuant to Section 501(a) of that code; or | 0002| (2) a veterans' organization that is described | 0003| in Section 501(c)(19) or (23) of the federal Internal Revenue | 0004| Code of 1986 and that is exempt from federal income taxation | 0005| pursuant to Section 501(a) of that code; | 0006| GG. "person" means a legal entity; | 0007| HH. "premises" means land, together with all | 0008| buildings, improvements and personal property located on the | 0009| land; | 0010| II. "progressive jackpot" means a prize that | 0011| increases over time or as gaming machines that are linked to a | 0012| progressive system are played and upon conditions established by | 0013| the board may be paid by an annuity; | 0014| JJ. "progressive system" means one or more gaming | 0015| machines linked to one or more common progressive jackpots; | 0016| KK. "publicly traded corporation" means a | 0017| corporation that: | 0018| (1) has one or more classes of securities | 0019| registered pursuant to the securities laws of the United States | 0020| or New Mexico; | 0021| (2) is an issuer subject to the securities laws | 0022| of the United States or New Mexico; or | 0023| (3) has one or more classes of securities | 0024| registered or is an issuer pursuant to applicable foreign laws | 0025| that the board finds provide protection for institutional | 0001| investors that is comparable to or greater than the stricter of | 0002| the securities laws of the United States or New Mexico; | 0003| LL. "registration" means a board action that | 0004| authorizes a company to be a holding company with respect to a | 0005| company that holds or applies for a license or that relates to | 0006| other persons required to be registered pursuant to the Gaming | 0007| Control Act; | 0008| MM. "subsidiary" means a company, all or a part of | 0009| whose outstanding equity securities are owned, subject to a | 0010| power or right of control or held, with power to vote, by a | 0011| holding company or intermediary company; and | 0012| NN. "work permit" means a card, certificate or | 0013| permit issued by the board, whether denominated as a work | 0014| permit, registration card or otherwise, authorizing the | 0015| employment of the holder as a gaming employee. | 0016| Section 6. [NEW MATERIAL] LIMITED GAMING ACTIVITY | 0017| PERMITTED.--Gaming activity is permitted in New Mexico only if | 0018| it is conducted in compliance with and pursuant to: | 0019| A. the Gaming Control Act; or | 0020| B. a state or federal law other than the Gaming | 0021| Control Act that expressly permits the activity or exempts it | 0022| from the application of the state criminal law, or both. | 0023| Section 7. [NEW MATERIAL] GAMING CONTROL BOARD | 0024| CREATED.-- | 0025| A. The "gaming control board" is created and | 0001| consists of five members. Three members are appointed by the | 0002| governor with the advice and consent of the senate, and two | 0003| members are ex officio: the chairman of the state racing | 0004| commission and the chairman of the board of the New Mexico | 0005| lottery authority. All members of the board shall be residents | 0006| of New Mexico and citizens of the United States. One appointed | 0007| member of the board shall have a minimum of five years of | 0008| previous employment in a supervisory and administrative position | 0009| in a law enforcement agency; one appointed member of the board | 0010| shall be a certified public accountant in New Mexico who has had | 0011| at least five years of experience in public accountancy; and one | 0012| appointed member of the board shall be an attorney who has been | 0013| admitted to practice before the supreme court of New Mexico. | 0014| B. The appointed members of the board shall be | 0015| appointed for terms of five years, except, of the members who | 0016| are first appointed, the member with law enforcement experience | 0017| shall be appointed for a term of five years; the member who is a | 0018| certified public accountant shall be appointed for a term of | 0019| four years; and the member who is an attorney shall be appointed | 0020| for a term of three years. Thereafter, all members shall be | 0021| appointed for terms of five years. No person shall serve as a | 0022| board member for more than two consecutive terms or ten years | 0023| total. | 0024| C. No person appointed to the board may be employed | 0025| in any other capacity or shall in any manner receive | 0001| compensation for services rendered to any person or entity other | 0002| than the board while a member of the board. | 0003| D. A vacancy on the board of an appointed member | 0004| shall be filled within thirty days by the governor with the | 0005| advice and consent of the senate for the unexpired portion of | 0006| the term in which the vacancy occurs. A person appointed to | 0007| fill a vacancy shall meet all qualification requirements of the | 0008| office established in this section. | 0009| E. The governor shall choose a chairman annually | 0010| from the board's appointed membership. | 0011| F. No more than three members of the board shall be | 0012| from the same political party. | 0013| G. The appointed members of the board shall be full- | 0014| time state officials and shall receive a salary set by the | 0015| governor. | 0016| H. The department of public safety shall conduct | 0017| background investigations of all members of the board prior to | 0018| confirmation by the senate. To assist the department in the | 0019| background investigation, a prospective board member shall | 0020| furnish a disclosure statement to the department on a form | 0021| provided by the department containing that information deemed by | 0022| the department as necessary for completion of a detailed and | 0023| thorough background investigation. The required information | 0024| shall include at least: | 0025| (1) a full set of fingerprints made by a law | 0001| enforcement agency on forms supplied by the department; | 0002| (2) complete information and details with | 0003| respect to the prospective board member's antecedents, habits, | 0004| immediate family, character, criminal record, business | 0005| activities, financial affairs and business associates covering | 0006| at least a ten-year period immediately preceding the date of | 0007| submitting the disclosure statement; | 0008| (3) complete disclosure of any equity interest | 0009| held by the prospective board member or a member of his | 0010| immediate family in a business connected with gaming; and | 0011| (4) the names and addresses of members of the | 0012| immediate family of the prospective board member. | 0013| I. No person may be appointed or confirmed as a | 0014| member of the board if that person or member of his immediate | 0015| family holds an equity interest in a business connected with | 0016| gaming. | 0017| J. A prospective board member shall provide | 0018| assistance and information requested by the department of public | 0019| safety or the governor and shall cooperate in any inquiry or | 0020| investigation of the prospective board member's fitness or | 0021| qualifications to hold the office to which he is appointed. The | 0022| senate shall not confirm a prospective board member if it has | 0023| reasonable cause to believe that the prospective board member | 0024| has: | 0025| (1) knowingly misrepresented or omitted a | 0001| material fact required in a disclosure statement; | 0002| (2) been convicted of a felony, a gaming | 0003| related offense or a crime involving fraud, theft or moral | 0004| turpitude within ten years immediately preceding the date of | 0005| submitting a disclosure statement required pursuant to the | 0006| provisions of Subsection H of this section; | 0007| (3) exhibited a history of willful disregard | 0008| for the gaming laws of this or any other state or the United | 0009| States; or | 0010| (4) had a permit or license issued pursuant to | 0011| the gaming laws of this or any other state or the United States | 0012| permanently suspended or revoked for cause. | 0013| K. The senate may in its discretion not confirm a | 0014| prospective board member. | 0015| L. At the time of taking office, each board member | 0016| shall file with the secretary of state a sworn statement that he | 0017| is not disqualified under the provisions of Subsection I of this | 0018| section. | 0019| Section 8. [NEW MATERIAL] BOARD--MEETINGS--QUORUM-- | 0020| RECORDS.-- | 0021| A. A majority of the qualified membership of the | 0022| board then in office constitutes a quorum. No action may be | 0023| taken by the board unless at least three members concur. | 0024| B. Written notice of the time and place of each | 0025| board meeting shall be given to each member of the board at | 0001| least ten days prior to the meeting. | 0002| C. Meetings of the board shall be open and public in | 0003| accordance with the Open Meetings Act, except that the board may | 0004| close a meeting to hear confidential security and investigative | 0005| information and other information made confidential by the | 0006| provisions of the Gaming Control Act. | 0007| D. All proceedings of the board shall be recorded by | 0008| audiotape or other equivalent verbatim audio recording device. | 0009| E. The chairman of the board, the executive director | 0010| or a majority of the members of the board then in office may | 0011| call a special meeting of the board upon at least five days' | 0012| prior written notice to all members of the board and the | 0013| executive director. | 0014| Section 9. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0015| A. The board shall implement the state's policy on | 0016| gaming consistent with the provisions of the Gaming Control Act. | 0017| It has the duty to fulfill all responsibilities assigned to it | 0018| pursuant to that act, and it has all authority necessary to | 0019| carry out those responsibilities. It may delegate authority to | 0020| the executive director, but it retains accountability. The | 0021| board is an adjunct agency. | 0022| B. The board shall: | 0023| (1) employ the executive director; | 0024| (2) make the final decision on issuance, | 0025| denial, suspension and revocation of all licenses pursuant to | 0001| and consistent with the provisions of the Gaming Control Act; | 0002| (3) develop, adopt and promulgate all | 0003| regulations necessary to implement and administer the provisions | 0004| of the Gaming Control Act; | 0005| (4) conduct itself, or employ a hearing officer | 0006| to conduct, all hearings required by the provisions of the | 0007| Gaming Control Act and other hearings it deems appropriate to | 0008| fulfill its responsibilities; | 0009| (5) meet at least once each month; and | 0010| (6) prepare and submit an annual report in | 0011| December of each year to the governor and the legislature, | 0012| covering activities of the board in the most recently completed | 0013| fiscal year, a summary of gaming activities in the state and any | 0014| recommended changes in or additions to the laws relating to | 0015| gaming in the state. | 0016| C. The board may: | 0017| (1) impose civil fines not to exceed twenty- | 0018| five thousand dollars ($25,000) for the first violation and | 0019| fifty thousand dollars ($50,000) for subsequent violations of | 0020| any prohibitory provision of the Gaming Control Act or any | 0021| prohibitory provision of a regulation adopted pursuant to that | 0022| act; | 0023| (2) conduct investigations; | 0024| (3) subpoena persons and documents to compel | 0025| access to or the production of documents and records, including | 0001| books and memoranda, in the custody or control of any licensee; | 0002| (4) compel the appearance of employees of a | 0003| licensee or persons for the purpose of ascertaining compliance | 0004| with provisions of the Gaming Control Act or a regulation | 0005| adopted pursuant to its provisions; | 0006| (5) administer oaths and take depositions to | 0007| the same extent and subject to the same limitations as would | 0008| apply if the deposition were pursuant to discovery rules in a | 0009| civil action in the district court; | 0010| (6) sue and be sued subject to the limitations | 0011| of the Tort Claims Act; | 0012| (7) contract for the provision of goods and | 0013| services necessary to carry out its responsibilities; | 0014| (8) conduct audits of applicants, licensees and | 0015| persons affiliated with licensees; | 0016| (9) inspect, examine, photocopy and audit all | 0017| documents and records of an applicant or licensee relevant to | 0018| his gaming activities in the presence of the applicant or | 0019| licensee or his agent; | 0020| (10) require verification of income and all | 0021| other matters pertinent to the gaming activities of an applicant | 0022| or licensee affecting the enforcement of any provision of the | 0023| Gaming Control Act; | 0024| (11) inspect all places where gaming activities | 0025| are conducted and inspect all property connected with gaming in | 0001| those places; | 0002| (12) summarily seize, remove and impound from | 0003| places inspected any gaming devices, property connected with | 0004| gaming, documents or records for the purpose of examination or | 0005| inspection; | 0006| (13) inspect, examine, photocopy and audit all | 0007| documents and records of any affiliate of an applicant or | 0008| licensee who the board knows or reasonably suspects is involved | 0009| in the financing, operation or management of the applicant or | 0010| licensee. The inspection, examination, photocopying and audit | 0011| shall be in the presence of a representative of the affiliate or | 0012| its agent when practicable; and | 0013| (14) except for the powers specified in | 0014| Paragraphs (1) and (4) of this subsection, carry out all or part | 0015| of the foregoing powers and activities through the executive | 0016| director. | 0017| Section 10. [NEW MATERIAL] BOARD REGULATIONS-- | 0018| DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0019| A. The board may adopt any regulation: | 0020| (1) consistent with the provisions of the | 0021| Gaming Control Act; and | 0022| (2) it decides is necessary to implement the | 0023| provisions of the Gaming Control Act. | 0024| B. No regulation shall be adopted, amended or | 0025| repealed without a public hearing on the proposed action before | 0001| the board or a hearing officer designated by it. The public | 0002| hearing shall be held in Santa Fe. Notice of the subject matter | 0003| of the regulation, the action proposed to be taken, the time and | 0004| place of the hearing, the manner in which interested persons may | 0005| present their views and the method by which copies of the | 0006| proposed regulation, amendment or repeal may be obtained shall | 0007| be published once at least thirty days prior to the hearing date | 0008| in a newspaper of general circulation and mailed at least thirty | 0009| days prior to the hearing date to all persons who have made a | 0010| written request for advance notice of hearing. All regulations | 0011| and actions taken on regulations shall be filed in accordance | 0012| with the State Rules Act. | 0013| C. The board shall adopt regulations: | 0014| (1) prescribing the method and form of | 0015| application to be followed by an applicant; | 0016| (2) prescribing the information to be furnished | 0017| by an applicant or licensee concerning his antecedents, | 0018| immediate family, habits, character, associates, criminal | 0019| record, business activities and financial affairs, past or | 0020| present; | 0021| (3) prescribing the manner and procedure of all | 0022| hearings conducted by the board or a hearing officer; | 0023| (4) prescribing the manner and method of | 0024| collection and payment of fees; | 0025| (5) prescribing the manner and method of the | 0001| issuance of licenses, permits, registrations, certificates and | 0002| other actions of the board not elsewhere prescribed in the | 0003| Gaming Control Act; | 0004| (6) defining the area, games and gaming devices | 0005| allowed and the methods of operation of the games and gaming | 0006| devices for authorized gaming; | 0007| (7) prescribing under what conditions the | 0008| nonpayment of winnings is grounds for suspension or revocation | 0009| of a license of a gaming operator; | 0010| (8) governing the manufacture, sale, | 0011| distribution, repair and servicing of gaming devices; | 0012| (9) prescribing accounting procedures, | 0013| security, collection and verification procedures required of | 0014| licensees and matters regarding financial responsibility of | 0015| licensees; | 0016| (10) prescribing what shall be considered to be | 0017| an unsuitable method of operating gaming activities; | 0018| (11) restricting access to confidential | 0019| information obtained pursuant to the provisions of the Gaming | 0020| Control Act and ensuring that the confidentiality of that | 0021| information is maintained and protected; | 0022| (12) prescribing financial reporting and | 0023| internal control requirements for licensees; | 0024| (13) prescribing the manner in which winnings, | 0025| compensation from gaming activities and net take shall be | 0001| computed and reported by a gaming operator licensee; | 0002| (14) prescribing the frequency of and the | 0003| matters to be contained in audits of and periodic financial | 0004| reports from a gaming operator licensee consistent with | 0005| standards prescribed by the board; | 0006| (15) prescribing the procedures to be followed | 0007| by a gaming operator licensee for the exclusion of persons from | 0008| gaming establishments; | 0009| (16) establishing criteria and conditions for | 0010| the operation of progressive systems; | 0011| (17) establishing criteria and conditions for | 0012| approval of procurement by the board of personal property valued | 0013| in excess of twenty thousand dollars ($20,000), including | 0014| background investigation requirements for a person submitting a | 0015| bid or proposal; and | 0016| (18) establishing an applicant fee schedule for | 0017| processing applications that is based on costs of the | 0018| application review incurred by the board whether directly or | 0019| through payment by the board for costs charged for | 0020| investigations of applicants by state departments and agencies | 0021| other than the board, which regulation shall set a maximum fee | 0022| of one hundred thousand dollars ($100,000). | 0023| Section 11. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0024| EMPLOYMENT--QUALIFICATIONS.-- | 0025| A. The executive director shall be employed by, | 0001| report directly to and serve at the pleasure of the board. | 0002| B. The executive director shall have had at least | 0003| five years of responsible supervisory administrative experience | 0004| in a governmental gaming regulatory agency. | 0005| C. The executive director shall receive an annual | 0006| salary to be set by the board, but not to exceed eighty-five | 0007| thousand dollars ($85,000) per year. | 0008| Section 12. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0009| POWERS--DUTIES.-- | 0010| A. The executive director shall implement the | 0011| policies of the board. | 0012| B. The executive director shall employ all personnel | 0013| who work for the board. The employees shall be covered | 0014| employees pursuant to the provisions of the Personnel Act. | 0015| Among those personnel he shall employ and designate an | 0016| appropriate number of individuals as law enforcement officers | 0017| subject to proper certification pursuant to the Law Enforcement | 0018| Training Act. | 0019| C. The executive director shall establish | 0020| organizational units he determines are appropriate to administer | 0021| the provisions of the Gaming Control Act. | 0022| D. The executive director: | 0023| (1) may delegate authority to subordinates as | 0024| he deems necessary and appropriate, clearly delineating the | 0025| delegated authority and the limitations on it, if any; | 0001| (2) shall take administrative action by issuing | 0002| orders and instructions consistent with the Gaming Control Act | 0003| and regulations of the board to assure implementation of and | 0004| compliance with the provisions of that act and those | 0005| regulations; | 0006| (3) may conduct research and studies that will | 0007| improve the operations of the board and the provision of | 0008| services to the citizens of the state; | 0009| (4) may provide courses of instruction and | 0010| practical training for employees of the board and other persons | 0011| involved in the activities regulated by the board with the | 0012| objectives of improving operations of the board and achieving | 0013| compliance with the law and regulations; | 0014| (5) shall prepare an annual budget for the | 0015| board and submit it to the board for approval; and | 0016| (6) shall make recommendations to the board of | 0017| proposed regulations and any legislative changes needed to | 0018| provide better administration of the Gaming Control Act and fair | 0019| and efficient regulation of gaming activities in the state. | 0020| Section 13. [NEW MATERIAL] INVESTIGATION OF EXECUTIVE | 0021| DIRECTOR CANDIDATES AND EMPLOYEES.-- | 0022| A. A person who is under consideration in the final | 0023| selection process for appointment as the executive director | 0024| shall file a disclosure statement pursuant to the requirements | 0025| of this section, and the board shall not make an appointment of | 0001| a person as executive director until a background investigation | 0002| is completed by the department of public safety and a report is | 0003| made to the board. | 0004| B. A person who has reached the final selection | 0005| process for employment by the executive director shall file a | 0006| disclosure statement pursuant to the requirements of this | 0007| section if the executive director or the board has directed the | 0008| person do so. The person shall not be further considered for | 0009| employment until a background investigation is completed by the | 0010| department of public safety and a report is made to the | 0011| executive director. | 0012| C. Forms for the disclosure statements required by | 0013| this section shall be developed by the board in cooperation with | 0014| the department of public safety. At least the following | 0015| information shall be required of a person submitting a | 0016| statement: | 0017| (1) a full set of fingerprints made by a law | 0018| enforcement agency on forms supplied by the board; | 0019| (2) complete information and details with | 0020| respect to the person's antecedents, habits, immediate family, | 0021| character, criminal record, business activities and business | 0022| associates, covering at least a ten-year period immediately | 0023| preceding the date of submitting the disclosure statement; and | 0024| (3) a complete description of any equity | 0025| interest held in a business connected with the gaming industry. | 0001| D. In preparing an investigative report, the | 0002| department of public safety may request and receive criminal | 0003| history information from the federal bureau of investigation or | 0004| any other law enforcement agency or organization. The | 0005| department of public safety shall maintain confidentiality | 0006| regarding information received from a law enforcement agency | 0007| that may be imposed by the agency as a condition for providing | 0008| the information to the department. | 0009| E. A person required to file a disclosure statement | 0010| shall provide any assistance or information requested by the | 0011| department of public safety or the board and shall cooperate in | 0012| any inquiry or investigation. | 0013| F. If information required to be included in a | 0014| disclosure statement changes or if information is added after | 0015| the statement is filed, the person required to file it shall | 0016| provide that information in writing to the person requesting the | 0017| investigation. The supplemental information shall be provided | 0018| within thirty days after the change or addition. | 0019| G. The board shall not appoint a person as executive | 0020| director, and the executive director shall not employ a person, | 0021| if the board or the executive director has reasonable cause to | 0022| believe that the person has: | 0023| (1) knowingly misrepresented or omitted a | 0024| material fact required in a disclosure statement; | 0025| (2) been convicted of a felony, a gaming | 0001| related offense or a crime involving fraud, theft or moral | 0002| turpitude within ten years immediately preceding the date of | 0003| submitting a disclosure statement required pursuant to this | 0004| section; | 0005| (3) exhibited a history of willful disregard | 0006| for the gaming laws of this or any other state or the United | 0007| States; or | 0008| (4) had a permit or license issued pursuant to | 0009| the gaming laws of this or any other state or the United States | 0010| permanently suspended or revoked for cause. | 0011| H. Both the board and the executive director may | 0012| exercise absolute discretion in exercising their respective | 0013| appointing and employing powers. | 0014| Section 14. [NEW MATERIAL] CONFLICTS OF INTEREST-- | 0015| BOARD--EXECUTIVE DIRECTOR.-- | 0016| A. In addition to all other provisions of New Mexico | 0017| law regarding conflicts of interest of state officials and | 0018| employees, a member of the board, the executive director, or a | 0019| person in the immediate family of or residing in the household | 0020| of any of the foregoing persons, shall not: | 0021| (1) directly or indirectly, as a proprietor or | 0022| as a member, stockholder, director or officer of a company, have | 0023| an interest in a business engaged in gaming activities in this | 0024| or another jurisdiction; or | 0025| (2) accept or agree to accept any economic | 0001| opportunity, gift, loan, gratuity, special discount, favor, | 0002| hospitality or service having an aggregate value of one hundred | 0003| dollars ($100) or more in any calendar year from a licensee or | 0004| applicant. | 0005| B. If a member of the board, the executive director | 0006| or a person in the immediate family of or residing in the | 0007| household of a member of the board or the executive director | 0008| violates a provision of this section, the member of the board or | 0009| executive director shall be removed from office. A board member | 0010| shall be removed by the governor, and the executive director | 0011| shall be removed from his position by the board. | 0012| Section 15. [NEW MATERIAL] ACTIVITIES REQUIRING | 0013| LICENSING.-- | 0014| A. A person shall not conduct gaming unless he is | 0015| licensed as a gaming operator. | 0016| B. A person shall not sell, supply or distribute any | 0017| gaming device or associated equipment for use or play in this | 0018| state or for use or play outside of this state from a location | 0019| within this state unless he is licensed as a distributor or | 0020| manufacturer, but a gaming operator licensee may sell or trade | 0021| in a gaming device or associated equipment to a gaming operator | 0022| licensee, distributor licensee or manufacturer licensee. | 0023| C. A person shall not manufacture, fabricate, | 0024| assemble, program or make modifications to a gaming device or | 0025| associated equipment for use or play in this state or for use or | 0001| play outside of this state from any location within this state | 0002| unless he is a manufacturer licensee. A manufacturer licensee | 0003| may sell, supply or distribute only the gaming devices or | 0004| associated equipment that he manufactures, fabricates, | 0005| assembles, programs or modifies. | 0006| D. A gaming operator licensee or a person other than | 0007| a manufacturer licensee or distributor licensee shall not | 0008| possess or control a place where there is an unlicensed gaming | 0009| machine. Any unlicensed gaming machine, except one in the | 0010| possession of a licensee while awaiting transfer to a gaming | 0011| operator licensee for licensure of the machine, is subject to | 0012| forfeiture and confiscation by any law enforcement agency or | 0013| peace officer. | 0014| E. A person shall not service or repair a gaming | 0015| device or associated equipment unless he is licensed as a | 0016| manufacturer, is employed by a manufacturer licensee or is a | 0017| technician certified by a manufacturer and employed by a | 0018| distributor licensee. | 0019| F. A person shall not engage in any activity for | 0020| which the board requires a license or permit without obtaining | 0021| the license or permit. | 0022| G. Except as provided in Subsection B of this | 0023| section, a person shall not purchase, lease or acquire | 0024| possession of a gaming device or associated equipment except | 0025| from a licensed distributor or manufacturer. | 0001| H. A distributor licensee may receive a percentage | 0002| of the amount wagered, the net take or other measure related to | 0003| the operation of a gaming machine as a payment pursuant to a | 0004| lease or other arrangement for furnishing a gaming machine, but | 0005| the board shall adopt a regulation setting the maximum allowable | 0006| percentage. | 0007| Section 16. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0008| A. The board shall establish and issue the following | 0009| categories of licenses: | 0010| (1) manufacturer; | 0011| (2) distributor; | 0012| (3) gaming operator; and | 0013| (4) gaming machine. | 0014| B. The board shall issue certifications of findings | 0015| of suitability for key executives and other persons for whom | 0016| certification is required. | 0017| C. The board shall issue work permits for gaming | 0018| employees. | 0019| D. A licensee shall not be issued more than one type | 0020| of license, but this provision does not prohibit a licensee from | 0021| owning, leasing, acquiring or having in his possession licensed | 0022| gaming machines if that activity is otherwise allowed by the | 0023| provisions of the Gaming Control Act. A licensee shall not own | 0024| a majority interest in, manage or otherwise control a holder of | 0025| another type of license issued pursuant to the provisions of | 0001| that act. | 0002| E. Applicants shall apply on forms provided by the | 0003| board and furnish all information requested by the board. | 0004| Submission of an application constitutes consent to a credit | 0005| check of the applicant and all persons having a substantial | 0006| interest in the applicant and any other background | 0007| investigations required pursuant to the Gaming Control Act or | 0008| deemed necessary by the board. | 0009| F. All licenses issued by the board pursuant to the | 0010| provisions of this section shall be reviewed for renewal | 0011| annually unless revoked, suspended, canceled or terminated. | 0012| G. A license shall not be transferred or assigned. | 0013| H. The application for a license shall include: | 0014| (1) the name of the applicant; | 0015| (2) the location of the proposed operation; | 0016| (3) the gaming devices to be operated, | 0017| manufactured, distributed or serviced; | 0018| (4) the names of all persons having a direct or | 0019| indirect interest in the business of the applicant and the | 0020| nature of such interest; and | 0021| (5) such other information and details as the | 0022| board may require. | 0023| I. The board shall furnish to the applicant | 0024| supplemental forms that the applicant shall complete and file | 0025| with the application. Such supplemental forms shall require | 0001| complete information and details with respect to the applicant's | 0002| antecedents, habits, immediate family, character, criminal | 0003| record, business activities, financial affairs and business | 0004| associates, covering at least a ten-year period immediately | 0005| preceding the date of filing of the application. | 0006| Section 17. [NEW MATERIAL] LICENSE, CERTIFICATION AND | 0007| WORK PERMIT FEES.-- | 0008| A. License and other fees shall be established by | 0009| board regulation but shall not exceed the following amounts: | 0010| (1) manufacturer's license, twenty thousand | 0011| dollars ($20,000) for the initial license and five thousand | 0012| dollars ($5,000) for annual renewal; | 0013| (2) distributor's license, ten thousand dollars | 0014| ($10,000) for the initial license and one thousand dollars | 0015| ($1,000) for annual renewal; | 0016| (3) gaming operator's license for a racetrack, | 0017| fifty thousand dollars ($50,000) for the initial license and ten | 0018| thousand dollars ($10,000) for annual renewal; | 0019| (4) gaming operator's license for a nonprofit | 0020| organization, one thousand dollars ($1,000) for the initial | 0021| license and two hundred dollars ($200) for annual renewal; | 0022| (5) for each separate gaming machine licensed | 0023| to a person holding an operator's license, five hundred dollars | 0024| ($500) for the initial license and one hundred dollars ($100) | 0025| for annual renewal; and | 0001| (6) work permit, one hundred dollars ($100) | 0002| annually. | 0003| B. The board shall establish the fee for | 0004| certifications or other actions by regulation, but no fee | 0005| established by the board shall exceed one thousand dollars | 0006| ($1,000), except for fees established pursuant to Paragraph (18) | 0007| of Subsection C of Section 10 of the Gaming Control Act. | 0008| C. All license, certification or work permit fees | 0009| shall be paid to the board at the time and in the manner | 0010| established by regulations of the board. | 0011| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0012| APPLICATIONS.-- | 0013| A. A person that the board determines is qualified | 0014| to receive a license pursuant to the provisions of the Gaming | 0015| Control Act may be issued a license. The burden of proving | 0016| qualifications is on the applicant. | 0017| B. A license shall not be issued unless the board is | 0018| satisfied that the applicant is: | 0019| (1) a person of good moral character, honesty | 0020| and integrity; | 0021| (2) a person whose prior activities, criminal | 0022| record, reputation, habits and associations do not pose a threat | 0023| to the public interest or to the effective regulation and | 0024| control of gaming or create or enhance the dangers of | 0025| unsuitable, unfair or illegal practices, methods and activities | 0001| in the conduct of gaming or the carrying on of the business and | 0002| financial arrangements incidental thereto; and | 0003| (3) in all other respects qualified to be | 0004| licensed consistent with the laws of this state. | 0005| C. A license shall not be issued unless the | 0006| applicant has satisfied the board that: | 0007| (1) the applicant has adequate business | 0008| probity, competence and experience in business and gaming; | 0009| (2) the proposed financing of the applicant is | 0010| adequate for the nature of the proposed license and from a | 0011| suitable source; any lender or other source of money or credit | 0012| that the board finds does not meet the standards set forth in | 0013| Subsection B of this section shall be deemed unsuitable; and | 0014| (3) the applicant is sufficiently capitalized | 0015| under standards set by the board to conduct the business covered | 0016| by the license. | 0017| D. An application to receive a license, | 0018| certification or work permit constitutes a request for a | 0019| determination of the applicant's general moral character, | 0020| integrity and ability to participate or engage in or be | 0021| associated with gaming. Any written or oral statement made in | 0022| the course of an official proceeding of the board or by a | 0023| witness testifying under oath that is relevant to the purpose of | 0024| the proceeding is absolutely privileged and does not impose | 0025| liability for defamation or constitute a ground for recovery in | 0001| any civil action. | 0002| E. The board shall not issue a license or | 0003| certification to an applicant who has been denied a license or | 0004| certification in this state or another state, who has had a | 0005| certification, permit or license issued pursuant to the gaming | 0006| laws of a state or the United States permanently suspended or | 0007| revoked for cause or who is currently under suspension or | 0008| subject to any other limiting action in this state or another | 0009| state involving gaming activities or licensure for gaming | 0010| activities. | 0011| F. The board shall investigate the qualifications of | 0012| each applicant before a license, certification or work permit is | 0013| issued by the board and shall continue to observe and monitor | 0014| the conduct of all licensees, work permit holders, persons | 0015| certified as being suitable and the persons having a material | 0016| involvement directly or indirectly with a licensee. | 0017| G. The board has the authority to deny an | 0018| application or limit, condition, restrict, revoke or suspend a | 0019| license, certification or permit for any cause. | 0020| H. After issuance, a license, certification or | 0021| permit shall continue in effect upon proper payment of the | 0022| initial and renewal fees, subject to the power of the board to | 0023| revoke, suspend, condition or limit licenses, certifications and | 0024| permits. | 0025| I. The board has full and absolute power and | 0001| authority to deny an application for any cause it deems | 0002| reasonable. If an application is denied, the board shall | 0003| prepare and file its written decision on which its order denying | 0004| the application is based. | 0005| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES, | 0006| CERTIFICATIONS AND PERMITS.--The board shall initiate an | 0007| investigation of the applicant within thirty days after an | 0008| application is filed and supplemental information that the board | 0009| may require is received. | 0010| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS | 0011| FOR COMPANIES.--In order to be eligible to receive a license, a | 0012| company shall: | 0013| A. be incorporated or otherwise organized and in | 0014| good standing in this state or incorporated or otherwise | 0015| organized in another state, qualified to do business in this | 0016| state and in good standing in this state and in the state of | 0017| incorporation; | 0018| B. comply with all of the requirements of the laws | 0019| of this state pertaining to the company; | 0020| C. maintain a ledger in the principal office of the | 0021| company in this state, which shall: | 0022| (1) at all times reflect the ownership | 0023| according to company records of every class of security issued | 0024| by the company; and | 0025| (2) be available for inspection by the board at | 0001| all reasonable times without notice; and | 0002| D. file notice of all changes of ownership of all | 0003| classes of securities issued by the company with the board | 0004| within thirty days of the change. | 0005| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0006| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company applicant | 0007| shall provide the following information to the board on forms | 0008| provided by the board: | 0009| A. the organization, financial structure and nature | 0010| of the business to be operated, including the names and personal | 0011| histories of all officers, directors and key executives; | 0012| B. the rights and privileges acquired by the holders | 0013| of different classes of authorized securities; | 0014| C. the terms and conditions of all outstanding | 0015| loans, mortgages, trust deeds, pledges or any other indebtedness | 0016| or security interest evidenced by a security instrument | 0017| pertaining to the proposed gaming operation or other licensed | 0018| activity in this state and the name and address of the person | 0019| who is servicing the loan, mortgage, trust deed, pledge or other | 0020| indebtedness or security interest; | 0021| D. remuneration to persons, other than directors, | 0022| officers and key executives, exceeding fifty thousand dollars | 0023| ($50,000) per year; | 0024| E. bonus and profit-sharing arrangements within the | 0025| company; | 0001| F. management and service contracts pertaining to | 0002| the proposed gaming activity in this state; | 0003| G. balance sheets and profit and loss statements for | 0004| at least the three preceding fiscal years, or, if the company | 0005| has not been in business for a period of three years, balance | 0006| sheets and profit and loss statements from the time of its | 0007| commencement of business operations and projected for three | 0008| years from the time of its commencement of business operations. | 0009| All balance sheets and profit and loss statements shall be | 0010| certified by independent certified public accountants; and | 0011| H. any further financial data that the board deems | 0012| necessary or appropriate. | 0013| Section 22. [NEW MATERIAL] INDIVIDUAL CERTIFICATION OF | 0014| OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer, director, | 0015| equity security holder of five percent or more, partner, general | 0016| partner, limited partner, trustee or beneficiary of the company | 0017| that holds or has applied for a license shall be certified | 0018| individually, according to the provisions of the Gaming Control | 0019| Act, and if in the judgment of the board the public interest is | 0020| served by requiring any or all of the company's key executives | 0021| to be certified, the company shall require those persons to | 0022| apply for certification. A person who is required to be | 0023| certified pursuant to this section shall apply for certification | 0024| within thirty days after becoming an officer, director, equity | 0025| security holder of five percent or more, partner, general | 0001| partner, limited partner of five percent or more, trustee, | 0002| beneficiary or key executive. A person who is required to be | 0003| certified pursuant to a decision of the board shall apply for | 0004| certification within thirty days after the board so requests. | 0005| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS | 0006| OR BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON | 0007| UNSUITABLE PERSONS--OTHER REQUIREMENTS.-- | 0008| A. If the company applicant or licensee is or | 0009| becomes a subsidiary, each nonpublicly traded holding company | 0010| and intermediary company with respect to the subsidiary company | 0011| shall: | 0012| (1) qualify to do business in New Mexico; and | 0013| (2) register with the board and furnish to the | 0014| board the following information: | 0015| (a) a complete list of all beneficial | 0016| owners of five percent or more of its equity securities, which | 0017| shall be updated within thirty days after any change; | 0018| (b) the names of all company officers and | 0019| directors within thirty days of their appointment or election; | 0020| (c) its organization, financial structure | 0021| and nature of the business it operates; | 0022| (d) the terms, position, rights and | 0023| privileges of the different classes of its outstanding | 0024| securities; | 0025| (e) the terms on which its securities are | 0001| to be, and during the preceding three years have been, offered; | 0002| (f) the holder of and the terms and | 0003| conditions of all outstanding loans, mortgages, trust deeds, | 0004| pledges or any other indebtedness or security interest | 0005| pertaining to the applicant or licensee; | 0006| (g) the extent of the securities holdings | 0007| or other interest in the holding company or intermediary company | 0008| of all officers, directors, key executives, underwriters, | 0009| partners, principals, trustees or any direct or beneficial | 0010| owners, and the amount of any remuneration paid them as | 0011| compensation for their services in the form of salary, wages, | 0012| fees or by contract pertaining to the licensee; | 0013| (h) remuneration to persons other than | 0014| directors, officers and key executives exceeding fifty thousand | 0015| dollars ($50,000) per year; | 0016| (i) bonus and profit-sharing arrangements | 0017| within the holding company or intermediary company; | 0018| (j) management and service contracts | 0019| pertaining to the licensee or applicant; | 0020| (k) options existing or to be created in | 0021| respect to the company's securities or other interests; | 0022| (l) balance sheets and profit and loss | 0023| statements, certified by independent certified public | 0024| accountants, for not more than the three preceding fiscal years, | 0025| or, if the holding company or intermediary company has not been | 0001| in existence more than three years, balance sheets and profit | 0002| and loss statements from the time of its establishment, together | 0003| with projections for three years from the time of its | 0004| establishment; | 0005| (m) any further financial statements | 0006| necessary or appropriate to assist the board in making its | 0007| determinations; and | 0008| (n) a current annual profit and loss | 0009| statement, a current annual balance sheet and a copy of the | 0010| company's most recent federal income tax return within thirty | 0011| days after the return is filed. | 0012| B. All holders of five percent or more of the equity | 0013| security of a holding company or intermediary company shall | 0014| apply for a finding of suitability. | 0015| C. The board may in its discretion perform the | 0016| investigations concerning the officers, directors, key | 0017| executives, underwriters, security holders, partners, | 0018| principals, trustees or direct or beneficial owners of any | 0019| interest in any holding company or intermediary company as it | 0020| deems necessary, either at the time of initial registration or | 0021| at any time thereafter. | 0022| D. If at any time the board finds that any person | 0023| owning, controlling or holding with power to vote all or any | 0024| part of any class of securities of, or any interest in, any | 0025| holding company or intermediary company is unsuitable to be | 0001| connected with a licensee, it shall so notify both the | 0002| unsuitable person and the holding company or intermediary | 0003| company. The unsuitable person shall immediately offer the | 0004| securities or other interest to the issuing company for | 0005| purchase. The company shall purchase the securities or interest | 0006| offered upon the terms and within the time period ordered by the | 0007| board. | 0008| E. Beginning on the date when the board serves | 0009| notice that a person has been found to be unsuitable pursuant to | 0010| Subsection D of this section, it is unlawful for the unsuitable | 0011| person to: | 0012| (1) receive any dividend or interest upon any | 0013| securities held in the holding company or intermediary company, | 0014| or any dividend, payment or distribution of any kind from the | 0015| holding company or intermediary company; | 0016| (2) exercise, directly or indirectly or through | 0017| a proxy, trustee or nominee, any voting right conferred by the | 0018| securities or interest; or | 0019| (3) receive remuneration in any form from the | 0020| licensee, or from any holding company or intermediary company | 0021| with respect to that licensee, for services rendered or | 0022| otherwise. | 0023| F. A holding company or intermediary company subject | 0024| to the provisions of Subsection A of this section shall not make | 0025| any public offering of any of its equity securities unless such | 0001| public offering has been approved by the board. | 0002| G. This section does not apply to a holding company | 0003| or intermediary company that is a publicly traded corporation, | 0004| the stock of which is traded on recognized stock exchanges, | 0005| which shall instead comply with the provisions of Section 24 of | 0006| the Gaming Control Act. | 0007| Section 24. [NEW MATERIAL] REGISTRATION AND | 0008| CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.-- | 0009| A. If a company applicant or company licensee is or | 0010| becomes a publicly traded corporation, it shall register with | 0011| the board and provide the following information: | 0012| (1) as of the date the company became a | 0013| publicly traded corporation, and on any later date when the | 0014| information changes, the names of all stockholders of record who | 0015| hold five percent or more of the outstanding shares of any class | 0016| of equity securities issued by the publicly traded corporation; | 0017| (2) the names of all officers within thirty | 0018| days of their respective appointments; | 0019| (3) the names of all directors within thirty | 0020| days of their respective elections or appointments; | 0021| (4) the organization, financial structure and | 0022| nature of the businesses the publicly traded corporation | 0023| operates; | 0024| (5) the terms, position, rights and privileges | 0025| of the different classes of securities outstanding as of the | 0001| date the company became a publicly traded corporation; | 0002| (6) the terms on which the company's securities | 0003| were issued during the three years preceding the date on which | 0004| the company became a publicly traded corporation and the terms | 0005| on which the publicly traded corporation's securities are to be | 0006| offered to the public as of the date the company became a | 0007| publicly traded corporation; | 0008| (7) the terms and conditions of all outstanding | 0009| indebtedness and evidence of security pertaining directly or | 0010| indirectly to the publicly traded corporation; | 0011| (8) remuneration exceeding fifty thousand | 0012| dollars ($50,000) per year paid to persons other than directors, | 0013| officers and key executives who are actively and directly | 0014| engaged in the administration or supervision of the gaming | 0015| activities of the publicly traded corporation; | 0016| (9) bonus and profit-sharing arrangements | 0017| within the publicly traded corporation directly or indirectly | 0018| relating to its gaming activities; | 0019| (10) management and service contracts of the | 0020| corporation pertaining to its gaming activities; | 0021| (11) options existing or to be created pursuant | 0022| to its equity securities; | 0023| (12) balance sheets and profit and loss | 0024| statements, certified by independent certified public | 0025| accountants, for not less than the three fiscal years preceding | 0001| the date the company became a publicly traded corporation; | 0002| (13) any further financial statements deemed | 0003| necessary or appropriate by the board; and | 0004| (14) a description of the publicly traded | 0005| corporation's affiliated companies and intermediary companies | 0006| and gaming licenses, permits and approvals held by those | 0007| entities. | 0008| B. The board shall consider the following criteria | 0009| in determining whether to certify a publicly traded corporation: | 0010| (1) the business history of the publicly traded | 0011| corporation, including its record of financial stability, | 0012| integrity and success of its gaming operations in other | 0013| jurisdictions; | 0014| (2) the current business activities and | 0015| interests of the applicant, as well as those of its officers, | 0016| promoters, lenders and other sources of financing, or any other | 0017| persons associated with it; | 0018| (3) the current financial structure of the | 0019| publicly traded corporation as well as changes that could | 0020| reasonably be expected to occur to its financial structure as a | 0021| consequence of its proposed action; | 0022| (4) the present and proposed compensation | 0023| arrangements between the publicly traded corporation and its | 0024| directors, officers, key executives, securities holders, lenders | 0025| or other sources of financing; | 0001| (5) the equity investment, commitment or | 0002| contribution of present or prospective directors, key | 0003| executives, investors, lenders or other sources of financing; | 0004| and | 0005| (6) the dealings and arrangements, prospective | 0006| or otherwise, between the publicly traded corporation and its | 0007| investment bankers, promoters, finders or lenders and other | 0008| sources of financing. | 0009| C. The board may issue a certification upon receipt | 0010| of a proper application and consideration of the criteria set | 0011| forth in Subsection B of this section if it finds that the | 0012| certification would not be contrary to the public interest or | 0013| the policy set forth in the Gaming Control Act. | 0014| Section 25. [NEW MATERIAL] FINDING OF SUITABILITY | 0015| REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL | 0016| FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY BY | 0017| BOARD.-- | 0018| A. Each officer, director and key executive of a | 0019| holding company, intermediary company or publicly traded | 0020| corporation that the board determines is or is to become | 0021| actively and directly engaged in the administration or | 0022| supervision of, or any other significant involvement with, the | 0023| activities of the subsidiary licensee or applicant shall apply | 0024| for a finding of suitability. | 0025| B. If any officer, director or key executive of a | 0001| holding company, intermediary company or publicly traded | 0002| corporation required to be found suitable pursuant to Subsection | 0003| A of this section fails to apply for a finding of suitability | 0004| within thirty days after being requested to do so by the board, | 0005| or is not found suitable by the board, or if his finding of | 0006| suitability is revoked after appropriate findings by the board, | 0007| the holding company, intermediary company or publicly traded | 0008| corporation shall immediately remove that officer, director or | 0009| key executive from any office or position in which the person is | 0010| engaged in the administration or supervision of, or any other | 0011| involvement with, the activities of the certified subsidiary | 0012| until the person is thereafter found to be suitable. If the | 0013| board suspends the finding of suitability of any officer, | 0014| director or key executive, the holding company, intermediary | 0015| company or publicly traded corporation shall immediately and for | 0016| the duration of the suspension suspend that officer, director or | 0017| key executive from performance of any duties in which he is | 0018| actively and directly engaged in the administration or | 0019| supervision of, or any other involvement with, the activities of | 0020| the subsidiary licensee. | 0021| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0022| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0023| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION-- | 0024| PROHIBITION.-- | 0025| A. Each person who, individually or in association | 0001| with others, acquires, directly or indirectly, beneficial | 0002| ownership of five percent or more of any voting securities in a | 0003| publicly traded corporation registered with the board may be | 0004| required to be found suitable if the board has reason to believe | 0005| that the acquisition of the ownership would otherwise be | 0006| inconsistent with the declared policy of this state. | 0007| B. Each person who, individually or in association | 0008| with others, acquires, directly or indirectly, beneficial | 0009| ownership of five percent or more of any class of voting | 0010| securities of a publicly traded corporation certified by the | 0011| board shall notify the board within ten days after acquiring | 0012| such interest. | 0013| C. Each person who, individually or in association | 0014| with others, acquires, directly or indirectly, the beneficial | 0015| ownership of more than ten percent of any class of voting | 0016| securities of a publicly traded corporation certified by the | 0017| board shall apply to the board for a finding of suitability | 0018| within thirty days after acquiring such interest. | 0019| D. Institutional investors that have been exempted | 0020| from or have received a waiver of suitability requirements | 0021| pursuant to regulations adopted by the board are not required to | 0022| comply with this section. | 0023| E. Any person required by the board or by the | 0024| provisions of this section to be found suitable shall apply for | 0025| a finding of suitability within thirty days after the board | 0001| requests that he do so. | 0002| F. Any person required by the board or the | 0003| provisions of this section to be found suitable who subsequently | 0004| is found unsuitable by the board shall not hold directly or | 0005| indirectly the beneficial ownership of any security of a | 0006| publicly traded corporation that is registered with the board | 0007| beyond that period of time prescribed by the board. | 0008| G. The board may, but is not required to, deem a | 0009| person qualified to hold a license or be found suitable as | 0010| required by this section if the person currently holds a valid | 0011| license issued by, or has been found suitable by, gaming | 0012| regulatory authorities in another jurisdiction, provided that | 0013| the board finds that the other jurisdiction has conducted a | 0014| thorough investigation of the applicant and has criteria | 0015| substantially similar to those of the board to determine when a | 0016| person is to be found suitable or to obtain a license. | 0017| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE | 0018| OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE | 0019| OFFICERS AND DIRECTORS--APPROVAL OF BOARD.-- | 0020| A. Before a company licensee, other than a publicly | 0021| traded corporation, may issue or transfer five percent or more | 0022| of its securities to any person, it shall file a report of its | 0023| proposed action with the board, which report shall request the | 0024| approval of the board. The board shall have ninety days within | 0025| which to approve or deny the request. If the board fails to act | 0001| in ninety days, the request is deemed approved. If the board | 0002| denies the request, the company shall not issue or transfer five | 0003| percent or more of its securities to the person about whom the | 0004| request was made. | 0005| B. A company licensee shall file a report of each | 0006| change of the corporate officers and directors with the board | 0007| within thirty days of the change. The board shall have ninety | 0008| days from the date the report is filed within which to approve | 0009| or disapprove such change. During the ninety-day period and | 0010| thereafter, if the board does not disapprove the change, an | 0011| officer or director is be entitled to exercise all powers of the | 0012| office to which he was elected or appointed. | 0013| C. A company licensee shall report to the board in | 0014| writing any change in company personnel who have been designated | 0015| as key executives. The report shall be made no later than | 0016| thirty days after the change. | 0017| D. The board may require that a company licensee | 0018| furnish the board with a copy of its federal income tax return | 0019| within thirty days after the return is filed. | 0020| Section 28. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0021| GENERAL PROVISIONS--BUSINESS PLAN--PLAYER AGE LIMIT-- | 0022| RESTRICTIONS.-- | 0023| A. An applicant for licensure as a gaming operator | 0024| shall submit with the application a plan for assisting in the | 0025| prevention, education and treatment of compulsive gambling. The | 0001| plan shall include regular educational training sessions for | 0002| employees. Plan approval is a condition of issuance of the | 0003| license. | 0004| B. An applicant for licensure as a gaming operator | 0005| shall submit with the application a proposed business plan. The | 0006| plan shall include at least: | 0007| (1) a floor plan of the area to be used for | 0008| gaming machine operations; | 0009| (2) an advertising and marketing plan; | 0010| (3) the proposed placement and number of gaming | 0011| machines; | 0012| (4) a financial control plan; | 0013| (5) a security plan; | 0014| (6) a staffing plan for gaming machine | 0015| operations; and | 0016| (7) details of any proposed progressive | 0017| systems. C. A gaming operator licensee shall be granted | 0018| a license to operate a specific number of machines at a gaming | 0019| establishment identified in the license application and shall be | 0020| granted a license for each gaming machine. | 0021| D. A gaming operator licensee who desires to change | 0022| the number of machines in operation at a gaming establishment | 0023| shall apply to the board for an amendment to his license | 0024| authorizing a change in the number of machines. | 0025| E. Gaming machines may be available for play only in | 0001| an area restricted to persons twenty-one years of age or older. | 0002| F. A gaming operator licensee shall erect a | 0003| permanent physical barrier to allow for multiple uses of the | 0004| premises by persons of all ages. For purposes of this | 0005| subsection, "permanent physical barrier" means a floor-to- | 0006| ceiling wall separating the general areas from the restricted | 0007| areas. The entrance to the area where gaming machines are | 0008| located shall display a sign that the premises are restricted to | 0009| persons twenty-one years of age or older. Persons under the age | 0010| of twenty-one shall not enter the area where gaming machines are | 0011| located. | 0012| G. A gaming operator licensee shall not have | 0013| automated teller machines on the premises. | 0014| H. A gaming operator licensee shall not provide, | 0015| allow, contract or arrange to provide alcohol or food for no | 0016| charge or at reduced prices as an incentive or enticement for | 0017| patrons to game. | 0018| I. Only a racetrack licensed by the state racing | 0019| commission or a nonprofit organization may apply for or be | 0020| issued a gaming operator's license. No other persons are | 0021| qualified to apply for or be issued a gaming operator's license | 0022| pursuant to the Gaming Control Act. | 0023| Section 29. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0024| SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES-- | 0025| DAYS AND HOURS OF OPERATIONS.-- | 0001| A. A racetrack licensed by the state racing | 0002| commission pursuant to the Horse Racing Act to conduct live | 0003| horse races or simulcast races may be issued a gaming operator's | 0004| license to operate gaming machines on its premises where live | 0005| racing is conducted. | 0006| B. A racetrack's gaming operator's license shall | 0007| automatically become void if: | 0008| (1) the racetrack no longer holds an active | 0009| license to conduct pari-mutuel wagering; or | 0010| (2) the racetrack fails to maintain a minimum | 0011| of three live race days a week with at least nine live races on | 0012| each race day during its licensed race meet in the 1997 calendar | 0013| year and four live race days a week thereafter. | 0014| C. A gaming operator licensee that is a racetrack | 0015| may have not more than three hundred licensed gaming machines, | 0016| but the number of gaming machines to be located on the | 0017| licensee's premises shall be specified in the gaming operator's | 0018| license. | 0019| D. Gaming machines on a racetrack gaming operator | 0020| licensee's premises may be played only on days when the | 0021| racetrack is either conducting live horse races or simulcasting | 0022| horse race meets and during times established by regulation of | 0023| the board, but the regulations shall provide for a maximum of | 0024| twelve hours a day. | 0025| E. Alcoholic beverages shall not be sold, served, | 0001| delivered or consumed in the area where gaming machines are | 0002| installed and operated on the premises of a racetrack gaming | 0003| operator licensee. | 0004| Section 30. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0005| SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING | 0006| MACHINES--DAYS AND HOURS OF OPERATIONS.-- | 0007| A. A nonprofit organization may be issued a gaming | 0008| operator's license to operate licensed gaming machines on its | 0009| premises to be played only by active and auxiliary members. | 0010| B. No more than fifteen gaming machines may be | 0011| offered for play on the premises of a nonprofit organization | 0012| gaming operator licensee. | 0013| C. No gaming machine on the premises of a nonprofit | 0014| organization gaming operator licensee may award a prize that | 0015| exceeds four thousand dollars ($4,000). | 0016| D. Gaming machines may be played on the premises of | 0017| a nonprofit organization gaming operator licensee from 12:00 | 0018| noon until 12:00 midnight every day. | 0019| E. Alcoholic beverages shall not be sold, served, | 0020| delivered or consumed in the area where gaming machines are | 0021| installed and operated on the premises of a nonprofit | 0022| organization gaming operator licensee. | 0023| Section 31. [NEW MATERIAL] LICENSING OF MANUFACTURERS | 0024| OF GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0025| A. It is unlawful for any person to operate, carry | 0001| on, conduct or maintain any form of manufacturing of any gaming | 0002| device or associated equipment for use or play in New Mexico or | 0003| any form of manufacturing of any gaming device or associated | 0004| equipment in New Mexico for use or play outside of New Mexico | 0005| without first obtaining and maintaining a manufacturer's | 0006| license. | 0007| B. If the board revokes a manufacturer's license: | 0008| (1) no new gaming device manufactured by the | 0009| manufacturer may be approved for use in this state; | 0010| (2) any previously approved gaming device | 0011| manufactured by the manufacturer is subject to revocation of | 0012| approval if the reasons for the revocation of the license also | 0013| apply to that gaming device; | 0014| (3) no new gaming device or associated | 0015| equipment made by the manufacturer may be distributed, sold, | 0016| transferred or offered for use or play in New Mexico; and | 0017| (4) any association or agreement between the | 0018| manufacturer and a distributor licensee or gaming operator | 0019| licensee in New Mexico shall be terminated. | 0020| C. An agreement between a manufacturer licensee and | 0021| a distributor licensee or a gaming operator licensee in New | 0022| Mexico shall be deemed to include a provision for its | 0023| termination without liability for the termination on the part of | 0024| either party upon a finding by the board that either party is | 0025| unsuitable. Failure to include that condition in the agreement | 0001| is not a defense in any action brought pursuant to this section | 0002| to terminate the agreement. | 0003| D. A gaming device shall not be used and offered for | 0004| play by a gaming operator licensee unless it is identical in all | 0005| material aspects to a model that has been specifically tested | 0006| and approved by: | 0007| (1) the board; | 0008| (2) a laboratory selected by the board; or | 0009| (3) gaming officials in Nevada or New Jersey | 0010| after January 1, 1990. | 0011| E. The board may inspect every gaming device that is | 0012| manufactured: | 0013| (1) for use in New Mexico; or | 0014| (2) in New Mexico for use outside of New | 0015| Mexico. | 0016| F. The board may inspect every gaming device that is | 0017| offered for play within New Mexico by a gaming operator | 0018| licensee. | 0019| G. The board may inspect all associated equipment | 0020| that is manufactured and sold for use in New Mexico or | 0021| manufactured in New Mexico for use outside of New Mexico. | 0022| H. In addition to all other fees and charges imposed | 0023| pursuant to the Gaming Control Act, the board may determine, | 0024| charge and collect from each manufacturer an inspection fee, | 0025| which shall not exceed the actual cost of inspection and | 0001| investigation. | 0002| I. The board may prohibit the use of a gaming device | 0003| by a gaming operator licensee if it finds that the gaming device | 0004| does not meet the requirements of this section. | 0005| Section 32. [NEW MATERIAL] LICENSING OF DISTRIBUTORS | 0006| OF GAMING DEVICES.-- | 0007| A. It is unlawful for any person to operate, carry | 0008| on, conduct or maintain any form of distribution of any gaming | 0009| device for use or play in New Mexico without first obtaining and | 0010| maintaining a distributor's or manufacturer's license. | 0011| B. If the board revokes a distributor's license: | 0012| (1) no new gaming device distributed by the | 0013| person may be approved; | 0014| (2) any previously approved gaming device | 0015| distributed by the distributor is subject to revocation of | 0016| approval if the reasons for the revocation of the license also | 0017| apply to that gaming device; | 0018| (3) no new gaming device or associated | 0019| equipment distributed by the distributor may be distributed, | 0020| sold, transferred or offered for use or play in New Mexico; and | 0021| (4) any association or agreement between the | 0022| distributor and a gaming operator licensee shall be terminated. | 0023| An agreement between a distributor licensee and a gaming | 0024| operator licensee shall be deemed to include a provision for its | 0025| termination without liability on the part of either party upon a | 0001| finding by the board that the other party is unsuitable. | 0002| Failure to include that condition in the agreement is not a | 0003| defense in any action brought pursuant to this section to | 0004| terminate the agreement. | 0005| C. The board may inspect every gaming device that is | 0006| distributed for use in New Mexico. | 0007| D. In addition to all other fees and charges imposed | 0008| by the Gaming Control Act, the board may determine, charge and | 0009| collect from each distributor an inspection fee, which shall not | 0010| exceed the actual cost of inspection and investigation. | 0011| Section 33. [NEW MATERIAL] SUITABILITY OF CERTAIN | 0012| PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS WITH | 0013| GAMING OPERATORS--TERMINATION OF ASSOCIATION.-- | 0014| A. The board may determine the suitability of any | 0015| person who furnishes services or property to a gaming operator | 0016| licensee under any arrangement pursuant to which the person | 0017| receives compensation based on earnings, profits or receipts | 0018| from gaming. The board may require the person to comply with | 0019| the requirements of the Gaming Control Act and with the | 0020| regulations of the board. If the board determines that the | 0021| person is unsuitable, it may require the arrangement to be | 0022| terminated. | 0023| B. The board may require a person to apply for a | 0024| finding of suitability to be associated with a gaming operator | 0025| licensee if the person: | 0001| (1) does business on the premises of a gaming | 0002| establishment; or | 0003| (2) provides any goods or services to a gaming | 0004| operator licensee for compensation that the board finds to be | 0005| grossly disproportionate to the value of the goods or services. | 0006| C. If the board determines that a person is | 0007| unsuitable to be associated with a gaming operator licensee, the | 0008| association shall be terminated. Any agreement that entitles a | 0009| business other than gaming to be conducted on the premises of a | 0010| gaming establishment, or entitles a person other than a licensee | 0011| to conduct business with the gaming operator licensee, is | 0012| subject to termination upon a finding of unsuitability of the | 0013| person seeking association with a gaming operator licensee. | 0014| Every agreement shall be deemed to include a provision for its | 0015| termination without liability on the part of the gaming operator | 0016| licensee upon a finding by the board of the unsuitability of the | 0017| person seeking or having an association with the gaming operator | 0018| licensee. Failure to include that condition in the agreement is | 0019| not a defense in any action brought pursuant to this section to | 0020| terminate the agreement. If the application is not presented to | 0021| the board within thirty days following demand or the unsuitable | 0022| association is not terminated, the board may pursue any remedy | 0023| or combination of remedies provided in the Gaming Control Act. | 0024| Section 34. [NEW MATERIAL] REASONS FOR INVESTIGATIONS | 0025| BY BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT HEARING EXAMINER- | 0001| -REVIEW BY BOARD--ORDER OF BOARD.-- | 0002| A. The board shall make appropriate investigations | 0003| to: | 0004| (1) determine whether there has been any | 0005| violation of the Gaming Control Act or of any regulations | 0006| adopted pursuant to that act; | 0007| (2) determine any facts, conditions, practices | 0008| or matters that it deems necessary or proper to aid in the | 0009| enforcement of the Gaming Control Act or regulations adopted | 0010| pursuant to that act; | 0011| (3) aid in adopting regulations; | 0012| (4) secure information as a basis for | 0013| recommending legislation relating to the Gaming Control Act; or | 0014| (5) determine whether a licensee is able to | 0015| meet its financial obligations, including all financial | 0016| obligations imposed by the Gaming Control Act, as they become | 0017| due. | 0018| B. If after an investigation the board is satisfied | 0019| that a license, registration, finding of suitability or prior | 0020| approval by the board of any transaction for which approval was | 0021| required by the provisions of the Gaming Control Act should be | 0022| limited, conditioned, suspended or revoked, or that a fine | 0023| should be levied, the board shall initiate a hearing by filing a | 0024| complaint and transmitting a copy of it to the licensee, | 0025| together with a summary of evidence in its possession bearing on | 0001| the matter and the transcript of testimony at any investigative | 0002| hearing conducted by or on behalf of the board. The complaint | 0003| shall be a written statement of charges that sets forth in | 0004| ordinary and concise language the acts or omissions with which | 0005| the respondent is charged. It shall specify the statutes or | 0006| regulations that the respondent is alleged to have violated but | 0007| shall not consist merely of charges raised in the language of | 0008| the statutes or regulations. The summary of the evidence shall | 0009| be confidential and made available only to the respondent until | 0010| such time as it is offered into evidence at any public hearing | 0011| on the matter. | 0012| C. The respondent shall file an answer within thirty | 0013| days after service of the complaint. | 0014| D. Upon filing the complaint the board shall appoint | 0015| a hearing examiner to conduct further proceedings. | 0016| E. The hearing examiner shall conduct proceedings in | 0017| accordance with the Gaming Control Act and the regulations | 0018| adopted by the board. At the conclusion of the proceedings, the | 0019| hearing examiner may recommend that the board take any | 0020| appropriate action, including revocation, suspension, limitation | 0021| or conditioning of a license or imposition of a fine not to | 0022| exceed fifty thousand dollars ($50,000) for each violation or | 0023| any combination or all of the foregoing actions. | 0024| F. The hearing examiner shall prepare a written | 0025| decision containing his recommendation to the board and shall | 0001| serve it on all parties. Any respondent who disagrees with the | 0002| hearing examiner's recommendation may request the board, within | 0003| ten days of service of the recommendation, to review the | 0004| recommendation. | 0005| G. Upon proper request, the board shall review the | 0006| recommendation. The board may remand the case to the hearing | 0007| examiner for the presentation of additional evidence upon a | 0008| showing of good cause why such evidence could not have been | 0009| presented at the previous hearing. | 0010| H. The board shall by a majority vote accept, reject | 0011| or modify the recommendation. | 0012| I. If the board limits, conditions, suspends or | 0013| revokes any license or imposes a fine or limits, conditions, | 0014| suspends or revokes any registration, finding of suitability or | 0015| prior approval, it shall issue a written order specifying its | 0016| action. | 0017| J. The board's order is effective unless and until | 0018| reversed upon judicial review, except that the board may stay | 0019| its order pending a rehearing or judicial review upon such terms | 0020| and conditions as it deems proper. | 0021| Section 35. [NEW MATERIAL] EMERGENCY ORDERS OF | 0022| BOARD.--The board may issue an emergency order for suspension, | 0023| limitation or conditioning of a license, registration, finding | 0024| of suitability or work permit or may issue an emergency order | 0025| requiring a gaming operator licensee to exclude an individual | 0001| licensee from the premises of the gaming operator licensee's | 0002| gaming establishment or not to pay an individual licensee any | 0003| remuneration for services or any profits, income or accruals on | 0004| his investment in the licensed gaming establishment in the | 0005| following manner: | 0006| A. an emergency order may be issued only when the | 0007| board believes that: | 0008| (1) a licensee has willfully failed to report, | 0009| pay or truthfully account for and pay over any fee imposed by | 0010| the provisions of the Gaming Control Act or willfully attempted | 0011| in any manner to evade or defeat any fee or payment thereof; | 0012| (2) a licensee or gaming employee has cheated | 0013| at a game; or | 0014| (3) the emergency order is necessary for the | 0015| immediate preservation of the public peace, health, safety, | 0016| morals, good order or general welfare; | 0017| B. the emergency order shall set forth the grounds | 0018| upon which it is issued, including a statement of facts | 0019| constituting the alleged emergency necessitating such action; | 0020| C. the emergency order is effective immediately upon | 0021| issuance and service upon the licensee or resident agent of the | 0022| licensee or gaming employee or, in cases involving registration | 0023| or findings of suitability, upon issuance and service upon the | 0024| person or entity involved or resident agent of the entity | 0025| involved; the emergency order may suspend, limit, condition or | 0001| take other action in relation to the license of one or more | 0002| persons in an operation without affecting other individual | 0003| licensees or the gaming operator licensee. The emergency order | 0004| remains effective until further order of the board or final | 0005| disposition of the case; and | 0006| D. within five days after issuance of an emergency | 0007| order, the board shall cause a complaint to be filed and served | 0008| upon the person or entity involved; thereafter, the person or | 0009| entity against whom the emergency order has been issued and | 0010| served is entitled to a hearing before the board and to judicial | 0011| review of the decision and order of the board in accordance with | 0012| the provisions of the board's regulations. | 0013| Section 36. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0014| CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.-- | 0015| A. The board shall by regulation provide for the | 0016| establishment of a list of persons who are to be excluded or | 0017| ejected from a gaming establishment. The list may include any | 0018| person whose presence in the gaming establishment is determined | 0019| by the board to pose a threat to the public interest or licensed | 0020| gaming activities. | 0021| B. In making the determination in Subsection A of | 0022| this section, the board may consider a: | 0023| (1) prior conviction for a crime that is a | 0024| felony under state or federal law, a crime involving moral | 0025| turpitude or a violation of the gaming laws of any jurisdiction; | 0001| (2) violation or conspiracy to violate the | 0002| provisions of the Gaming Control Act relating to: | 0003| (a) the failure to disclose an interest in | 0004| a gaming activity for which the person must obtain a license; or | 0005| (b) willful evasion of fees or taxes; | 0006| (3) notorious or unsavory reputation that would | 0007| adversely affect public confidence and trust that the gaming | 0008| industry is free from criminal or corruptive influences; or | 0009| (4) written order of any other governmental | 0010| agency in this state or any other state that authorizes the | 0011| exclusion or ejection of the person from an establishment at | 0012| which gaming is conducted. | 0013| C. A gaming operator licensee has the right, without | 0014| a list established by the board, to exclude or eject a person | 0015| from its gaming establishment who poses a threat to the public | 0016| interest or for any business 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 on the list or for exclusion or ejection under | 0020| Subsection A or C of this section. | 0021| Section 37. [NEW MATERIAL] INTERNAL CONTROL SYSTEMS.-- | 0022| A. Each gaming operator licensee shall adopt | 0023| internal control systems that shall include provisions for: | 0024| (1) safeguarding its assets and revenues, | 0025| especially the recording of cash and evidences of indebtedness; | 0001| (2) making and maintaining reliable records, | 0002| accounts and reports of transactions, operations and events, | 0003| including reports to the board; and | 0004| (3) a system by which the amount wagered on | 0005| each gaming machine and the amount paid out by each gaming | 0006| machine is recorded on a daily basis, which results may be | 0007| obtained by the board by appropriate means as described in | 0008| regulations adopted by the board; all manufacturers are required | 0009| to have such a system available for gaming operators for the | 0010| gaming machines that it supplies for use in New Mexico, and all | 0011| distributors shall make such a system available to gaming | 0012| operators. | 0013| B. The internal control system shall be designed to | 0014| reasonably ensure that: | 0015| (1) assets are safeguarded; | 0016| (2) financial records are accurate and | 0017| reliable; | 0018| (3) transactions are performed only in | 0019| accordance with management's general or specific authorization; | 0020| (4) transactions are recorded adequately to | 0021| permit proper reporting of gaming revenue and of fees and taxes | 0022| and to maintain accountability of assets; | 0023| (5) access to assets is allowed only in | 0024| accordance with management's specific authorization; | 0025| (6) recorded accountability for assets is | 0001| compared with actual assets at reasonable intervals and | 0002| appropriate action is taken with respect to any discrepancies; | 0003| and | 0004| (7) functions, duties and responsibilities are | 0005| appropriately segregated and performed in accordance with sound | 0006| accounting and management practices by competent, qualified | 0007| personnel. | 0008| C. A gaming operator licensee and an applicant for a | 0009| gaming operator's license shall describe, in the manner the | 0010| board may approve or require, its administrative and accounting | 0011| procedures in detail in a written system of internal control. A | 0012| gaming operator licensee and an applicant for a gaming | 0013| operator's license shall submit a copy of its written system to | 0014| the board. Each written system shall include: | 0015| (1) an organizational chart depicting | 0016| appropriate segregation of functions and responsibilities; | 0017| (2) a description of the duties and | 0018| responsibilities of each position shown on the organizational | 0019| chart; | 0020| (3) a detailed, narrative description of the | 0021| administrative and accounting procedures designed to satisfy the | 0022| requirements of Subsection A of this section; | 0023| (4) a written statement signed by the | 0024| licensee's chief financial officer and either the licensee's | 0025| chief executive officer or a licensed owner attesting that the | 0001| system satisfies the requirements of this section; | 0002| (5) if the written system is submitted by an | 0003| applicant, a letter from an independent certified public | 0004| accountant stating that the applicant's written system has been | 0005| reviewed by the accountant and complies with the requirements of | 0006| this section; and | 0007| (6) other items as the board may require. | 0008| D. The board shall adopt and publish minimum | 0009| standards for internal control procedures. | 0010| Section 38. [NEW MATERIAL] GAMING EMPLOYEES--ISSUANCE | 0011| OF WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0012| A. A person shall not be employed as a gaming | 0013| employee unless the person holds a valid work permit issued by | 0014| the board. | 0015| B. A work permit shall be issued and may be revoked | 0016| by the board as provided in regulations adopted by the board. | 0017| C. Any person whose work permit has been denied or | 0018| revoked may seek judicial review. | 0019| Section 39. [NEW MATERIAL] AGE REQUIREMENT FOR PATRONS | 0020| AND GAMING EMPLOYEES.--A person under the age of twenty-one | 0021| years shall not: | 0022| A. play, be allowed to play, place wagers on or | 0023| collect winnings from, whether personally or through an agent, | 0024| any game authorized or offered to play pursuant to the Gaming | 0025| Control Act; or | 0001| B. be employed as a gaming employee. | 0002| Section 40. [NEW MATERIAL] CALCULATION OF NET TAKE-- | 0003| CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take from | 0004| gaming machines, the actual cost to the licensee of any personal | 0005| property distributed to a patron as the result of a legitimate | 0006| wager may be deducted as a loss, except for travel expenses, | 0007| food, refreshments, lodging or services. For the purposes of | 0008| this section, "as the result of a legitimate wager" means that | 0009| the patron must make a wager prior to receiving the personal | 0010| property, regardless of whether the receipt of the personal | 0011| property is dependent on the outcome of the wager. | 0012| Section 41. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0013| LICENSE FEES.--A political subdivision of the state shall not | 0014| impose a license fee or tax on any licensee licensed pursuant to | 0015| the Gaming Control Act except for the imposition of property | 0016| taxes. | 0017| Section 42. [NEW MATERIAL] USE OF CHIPS, TOKENS OR | 0018| LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be | 0019| conducted with chips, tokens or other similar objects approved | 0020| by the board or with the legal currency of the United States. | 0021| Section 43. [NEW MATERIAL] COMMUNICATION OR DOCUMENT | 0022| OF APPLICANT OR LICENSEE ABSOLUTELY CONFIDENTIAL-- | 0023| CONFIDENTIALITY NOT WAIVED--DISCLOSURE OF CONFIDENTIAL | 0024| INFORMATION PROHIBITED.-- | 0025| A. Any communication or document of an applicant or | 0001| licensee is confidential and does not impose liability for | 0002| defamation or constitute a ground for recovery in any civil | 0003| action if it is required by: | 0004| (1) law or the regulations of the board; or | 0005| (2) a subpoena issued by the board to be made | 0006| or transmitted to the board. | 0007| B. The confidentiality created pursuant to | 0008| Subsection A of this section is not waived or lost because the | 0009| document or communication is disclosed to the board. | 0010| C. Notwithstanding the powers granted to the board | 0011| by the Gaming Control Act, the board: | 0012| (1) may release or disclose any confidential | 0013| information, documents or communications provided by an | 0014| applicant or licensee only with the prior written consent of the | 0015| applicant or licensee or pursuant to a lawful court order after | 0016| timely notice of the proceedings has been given to the applicant | 0017| or licensee; | 0018| (2) shall maintain all confidential | 0019| information, documents and communications in a secure place | 0020| accessible only to members of the board; and | 0021| (3) shall adopt procedures and regulations to | 0022| protect the confidentiality of information, documents and | 0023| communications provided by an applicant or licensee. | 0024| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0025| PRIVILEGED INFORMATION.--An application to a court for an order | 0001| requiring the board to release any information declared by law | 0002| to be confidential shall be made only by petition in district | 0003| court. A hearing shall be held on the petition not less than | 0004| ten days and not more than twenty days after the date of service | 0005| of the petition on the board, the attorney general and all | 0006| persons who may be affected by the entry of that order. A copy | 0007| of the petition, all papers filed in support of it and a notice | 0008| of hearing shall be served. | 0009| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0010| SYSTEM.--The board shall develop and operate a central system | 0011| into which all licensed gaming machines are connected. The | 0012| central system shall be capable of: | 0013| A. monitoring continuously, retrieving and auditing | 0014| the operations, financial data and program information of the | 0015| network; | 0016| B. disabling from operation or play any gaming | 0017| machine in the network that does not comply with the provisions | 0018| of the Gaming Control Act or the regulations of the board; | 0019| C. communicating, through program modifications or | 0020| other means equally effective, with all gaming machines licensed | 0021| by the board; | 0022| D. interacting, reading, communicating and linking | 0023| with gaming machines from a broad spectrum of manufacturers and | 0024| associated equipment; and | 0025| E. providing linkage to each gaming machine in the | 0001| network at a reasonable and affordable cost to the state and the | 0002| gaming operator licensee and allowing for program modifications | 0003| and system updating at a reasonable cost. | 0004| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.--To | 0005| be eligible for licensure, each gaming machine shall meet all | 0006| specifications established by regulations of the board and: | 0007| A. be unable to be manipulated in a manner that | 0008| affects the random probability of winning plays or in any other | 0009| manner determined by the board to be undesirable; | 0010| B. have at least one mechanism that accepts coins or | 0011| currency, but does not accept bills of denominations greater | 0012| than twenty dollars ($20.00); | 0013| C. be capable of having play suspended through the | 0014| central system by the executive director until he resets the | 0015| gaming machine; | 0016| D. house nonresettable mechanical and electronic | 0017| meters within a readily accessible locked area of the gaming | 0018| machine that maintain a permanent record of all money inserted | 0019| into the machine, all cash payouts of winnings, all refunds of | 0020| winnings, all credits played for additional games and all | 0021| credits won by players; | 0022| E. be capable of printing out, at the request of the | 0023| executive director, readings on the electronic meters of the | 0024| machine; | 0025| F. for machines that do not dispense coins or tokens | 0001| directly to players, be capable of printing a ticket voucher | 0002| stating the value of a cash prize won by the player at the | 0003| completion of each game, the date and time of day the game was | 0004| played in a twenty-four-hour format showing hours and minutes, | 0005| the machine serial number, the sequential number of the ticket | 0006| voucher and an encrypted validation number for determining the | 0007| validity of a winning ticket voucher; | 0008| G. be capable of being linked to the board's central | 0009| system for the purpose of being monitored continuously as | 0010| required by the board; | 0011| H. provide for a payback value for each credit | 0012| wagered, determined over time, of not less than eighty percent | 0013| or more than ninety-six percent; | 0014| I. meet the standards and specifications set by laws | 0015| or regulations of the states of Nevada and New Jersey for gaming | 0016| machines, whichever are more stringent; | 0017| J. offer only games authorized and examined by the | 0018| board; and | 0019| K. display the gaming machine license issued for | 0020| that machine in an easily accessible place, before and during | 0021| the time that a machine is available for use. | 0022| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0023| ODDS.--The odds of winning on each gaming machine shall be | 0024| posted on or near each gaming machine. The board shall provide | 0025| the manner in which the odds shall be determined and posted by | 0001| regulation. | 0002| Section 48. [NEW MATERIAL] EXAMINATION OF GAMING | 0003| DEVICES--COST ALLOCATION.-- | 0004| A. The board shall examine prototypes of gaming | 0005| devices of manufacturers seeking a license as required. | 0006| B. The board by regulation shall require a | 0007| manufacturer to pay the anticipated actual costs of the | 0008| examination of a gaming device in advance and, after the | 0009| completion of the examination, shall refund overpayments or | 0010| charge and collect amounts sufficient to reimburse the board for | 0011| underpayment of actual costs. | 0012| C. The board may contract for the examination of | 0013| gaming devices to meet the requirements of this section. | 0014| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION-- | 0015| ADMINISTRATION.-- | 0016| A. An excise tax is imposed on the privilege of | 0017| engaging in gaming activities in the state. This tax shall be | 0018| known as the "gaming tax". | 0019| B. The gaming tax is an amount equal to ten percent | 0020| of the gross receipts of manufacturer licensees from the sale or | 0021| other transfer of gaming devices in or into the state; ten | 0022| percent of the gross receipts of distributor licensees from the | 0023| distribution of gaming devices in the state; and twenty-five | 0024| percent of the net take of every gaming operator licensee. | 0025| C. The gaming tax imposed on a licensee is in lieu | 0001| of all state and local gross receipts taxes on that portion of | 0002| the licensee's gross receipts attributable to gaming activities. | 0003| D. The gaming tax shall be administered and | 0004| collected by the taxation and revenue department in cooperation | 0005| with the board. The provisions of the Tax Administration Act | 0006| apply to the collection and administration of the tax. | 0007| E. In addition to the gaming tax, a gaming operator | 0008| licensee that is a racetrack shall pay twenty percent of the net | 0009| take to purses to be distributed in accordance with regulations | 0010| adopted by the state racing commission. A racetrack gaming | 0011| operator licensee shall spend no less than one-fourth of one | 0012| percent of the net take of its gaming machines to fund or | 0013| support programs for the treatment and assistance of compulsive | 0014| gamblers. | 0015| Section 50. [NEW MATERIAL] CIVIL ACTIONS TO RESTRAIN | 0016| VIOLATIONS OF GAMING CONTROL ACT.-- | 0017| A. The attorney general, at the request of the | 0018| board, may institute a civil action in any court of this state | 0019| against any person to enjoin a violation of a prohibitory | 0020| provision of the Gaming Control Act. | 0021| B. An action brought against a person pursuant to | 0022| this section shall not preclude a criminal action or | 0023| administrative proceeding against that person. | 0024| Section 51. [NEW MATERIAL] TESTIMONIAL IMMUNITY.-- | 0025| A. The board may order a person to answer a question | 0001| or produce evidence and confer immunity pursuant to this | 0002| section. If, in the course of an investigation or hearing | 0003| conducted pursuant to the Gaming Control Act, a person refuses | 0004| to answer a question or produce evidence on the ground that he | 0005| will be exposed to criminal prosecution by doing so, then the | 0006| board may by approval of three members, after the written | 0007| approval of the attorney general, issue an order to answer or to | 0008| produce evidence with immunity. | 0009| B. If a person complies with an order issued | 0010| pursuant to Subsection A of this section, he shall be immune | 0011| from having a responsive answer given or responsive evidence | 0012| produced, or evidence derived from either, used to expose him to | 0013| criminal prosecution, except that the person may be prosecuted | 0014| for any perjury committed in the answer or production of | 0015| evidence and may also be prosecuted for contempt for failing to | 0016| act in accordance with the order of the board. An answer given | 0017| or evidence produced pursuant to the grant of immunity | 0018| authorized by this section may be used against the person | 0019| granted immunity in a prosecution of the person for perjury or a | 0020| proceeding against him for contempt. | 0021| Section 52. [NEW MATERIAL] CRIME--MANIPULATION OF | 0022| GAMING DEVICE WITH INTENT TO CHEAT.--A person who manipulates, | 0023| with the intent to cheat, any component of a gaming device in a | 0024| manner contrary to the designed and normal operational purpose | 0025| of the component, including varying the pull of the handle of a | 0001| slot machine with knowledge that the manipulation affects the | 0002| outcome of the game or with knowledge of any event that affects | 0003| the outcome of the game, is guilty of a fourth degree felony and | 0004| shall be sentenced pursuant to the provisions of Section 31-18- | 0005| 15 NMSA 1978. | 0006| Section 53. [NEW MATERIAL] CRIME--USE OF COUNTERFEIT | 0007| OR UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN | 0008| DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0009| A. A person who, in playing any game designed to be | 0010| played with, to receive or to be operated by tokens approved by | 0011| the board or by lawful currency of the United States, knowingly | 0012| uses tokens other than those approved by the board, uses | 0013| currency that is not lawful currency of the United States or | 0014| uses currency not of the same denomination as the currency | 0015| intended to be used in that game is guilty of a third degree | 0016| felony and shall be sentenced pursuant to the provisions of | 0017| Section 31-18-15 NMSA 1978. | 0018| B. A person who knowingly has on his person or in | 0019| his possession within a gaming establishment any device intended | 0020| to be used by him to violate the provisions of the Gaming | 0021| Control Act is guilty of a third degree felony and shall be | 0022| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0023| 1978. | 0024| C. A person, other than a duly authorized employee | 0025| of a gaming operator acting in furtherance of his employment | 0001| within a gaming establishment, who knowingly has on his person | 0002| or in his possession within a gaming establishment any key or | 0003| device known by him to have been designed for the purpose of and | 0004| suitable for opening, entering or affecting the operation of any | 0005| game, dropbox or any electronic or mechanical device connected | 0006| to the game or dropbox or for removing money or other contents | 0007| from them is guilty of a third degree felony and shall be | 0008| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0009| 1978. | 0010| D. A person who knowingly and with intent to use | 0011| them for cheating has on his person or in his possession any | 0012| paraphernalia for manufacturing slugs is guilty of a third | 0013| degree felony and shall be sentenced pursuant to the provisions | 0014| of Section 31-18-15 NMSA 1978. As used in this subsection, | 0015| "paraphernalia for manufacturing slugs" means the equipment, | 0016| products and materials that are intended for use or designed for | 0017| use in manufacturing, producing, fabricating, preparing, | 0018| testing, analyzing, packaging, storing or concealing a | 0019| counterfeit facsimile of tokens approved by the board or a | 0020| lawful coin of the United States, the use of which is unlawful | 0021| pursuant to the Gaming Control Act. The term includes: | 0022| (1) lead or lead alloy; | 0023| (2) molds, forms or similar equipment capable | 0024| of producing a likeness of a gaming token or coin; | 0025| (3) melting pots or other receptacles; | 0001| (4) torches; and | 0002| (5) tongs, trimming tools or other similar | 0003| equipment. | 0004| E. Possession of more than two items of the | 0005| equipment, products or material described in Subsection D of | 0006| this section permits a rebuttable inference that the possessor | 0007| intended to use them for cheating. | 0008| Section 54. [NEW MATERIAL] CRIME--CHEATING.--A person | 0009| who knowingly cheats at any game is guilty of a fourth degree | 0010| felony and upon conviction shall be sentenced pursuant to the | 0011| provisions of Section 31-18-15 NMSA 1978. | 0012| Section 55. [NEW MATERIAL] CRIME--POSSESSION OF GAMING | 0013| DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A | 0014| person who knowingly possesses any gaming device that has been | 0015| manufactured, sold or distributed in violation of the Gaming | 0016| Control Act is guilty of a fourth degree felony and shall be | 0017| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0018| 1978. | 0019| Section 56. [NEW MATERIAL] CRIME--REPORTING AND RECORD | 0020| VIOLATIONS--PENALTY.--A person who, in an application, book or | 0021| record required to be maintained by the Gaming Control Act or by | 0022| a regulation adopted under that act or in a report required to | 0023| be submitted by that act or a regulation adopted under that act, | 0024| knowingly makes a statement or entry that is false or misleading | 0025| or fails to maintain or make an entry the person knows is | 0001| required to be maintained or made is guilty of a fourth degree | 0002| felony and shall be sentenced pursuant to the provisions of | 0003| Section 31-18-15 NMSA 1978. | 0004| Section 57. [NEW MATERIAL] CRIME--UNLAWFUL | 0005| MANUFACTURE, SALE, DISTRIBUTION, MARKING, ALTERING OR | 0006| MODIFICATION OF DEVICES ASSOCIATED WITH GAMING--UNLAWFUL | 0007| INSTRUCTION--PENALTY.-- | 0008| A. A person who manufactures, sells or distributes a | 0009| device that is intended by him to be used to violate any | 0010| provision of the Gaming Control Act is guilty of a fourth degree | 0011| felony and shall be sentenced pursuant to the provisions of | 0012| Section 31-18-15 NMSA 1978. | 0013| B. A person who marks, alters or otherwise modifies | 0014| any gaming device in a manner that affects the result of a wager | 0015| by determining win or loss or alters the normal criteria of | 0016| random selection that affects the operation of a game or that | 0017| determines the outcome of a game is guilty of a fourth degree | 0018| felony and shall be sentenced pursuant to the provisions of | 0019| Section 31-18-15 NMSA 1978. | 0020| Section 58. [NEW MATERIAL] UNDERAGE GAMING--PENALTY | 0021| FOR PERMITTING OR PARTICIPATION.-- | 0022| A. A person who knowingly permits an individual who | 0023| the person knows is younger than twenty-one years of age to | 0024| participate in gaming is guilty of a fourth degree felony and | 0025| shall be sentenced pursuant to the provisions of Section | 0001| 31-18-15 NMSA 1978. | 0002| B. An individual who participates in gaming when he | 0003| is younger than twenty-one years of age at the time of | 0004| participation is guilty of a misdemeanor and shall be sentenced | 0005| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0006| Section 59. [NEW MATERIAL] CRIME--GENERAL PENALTIES | 0007| FOR VIOLATION OF ACT.--A person who willfully violates, attempts | 0008| to violate or conspires to violate any of the provisions of the | 0009| Gaming Control Act specifying prohibited acts, the | 0010| classification of which is not specifically stated in that act, | 0011| is guilty of a fourth degree felony and shall be sentenced | 0012| pursuant to the provisions of Section 31-18-15 NMSA 1978. | 0013| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING | 0014| OF A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON | 0015| LIABILITY--POSTING OF NOTICE.-- | 0016| A. A gaming operator licensee or its officers, | 0017| employees or agents may question a person in its gaming | 0018| establishment suspected of violating any of the provisions of | 0019| the Gaming Control Act. No gaming operator licensee or any of | 0020| its officers, employees or agents is criminally or civilly | 0021| liable: | 0022| (1) on account of any such questioning; or | 0023| (2) for reporting to the board or law | 0024| enforcement authorities the person suspected of the violation. | 0025| B. A gaming operator licensee or any of its | 0001| officers, employees or agents who has reasonable cause for | 0002| believing that there has been a violation of the Gaming Control | 0003| Act in the gaming establishment by a person may detain that | 0004| person in the gaming establishment in a reasonable manner and | 0005| for a reasonable length of time. Such a detention does not | 0006| render the gaming operator licensee or his officers, employees | 0007| or agents criminally or civilly liable unless it is established | 0008| by clear and convincing evidence detention was unreasonable | 0009| under the circumstances. | 0010| C. No gaming operator licensee or its officers, | 0011| employees or agents are entitled to the immunity from liability | 0012| provided for in Subsection B of this section unless there is | 0013| displayed in a conspicuous place in the gaming establishment a | 0014| notice in boldface type clearly legible and in substantially | 0015| this form: | 0016| "Any gaming operator licensee or any of his officers, | 0017| employees or agents who have reasonable cause for | 0018| believing that any person has violated any provision | 0019| of the Gaming Control Act prohibiting cheating in | 0020| gaming may detain that person in the establishment.". | 0021| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0022| BOARD ACTION.-- | 0023| A. Any person aggrieved by an action taken by the | 0024| board or one of its agents may request and receive a hearing for | 0025| the purpose of reviewing the action. To obtain a hearing the | 0001| aggrieved person shall file a request for hearing with the board | 0002| within thirty days after the date the action is taken. Failure | 0003| to file the request within the specified time is an irrevocable | 0004| waiver of the right to a hearing, and the action complained of | 0005| shall be final with no further right to review, either | 0006| administratively or by a court. | 0007| B. The board shall adopt procedural regulations to | 0008| govern the procedures to be followed in administrative hearings | 0009| pursuant to the provisions of this section. At a minimum, the | 0010| regulations shall provide: | 0011| (1) for the hearings to be public; | 0012| (2) for the appointment of a hearing officer to | 0013| conduct the hearing and make his recommendation to the board not | 0014| more than ten days after the completion of the hearing; | 0015| (3) procedures for discovery; | 0016| (4) assurance that procedural due process | 0017| requirements are satisfied; | 0018| (5) for the maintenance of a record of the | 0019| hearing proceedings and assessment of costs of any transcription | 0020| of testimony that is required for judicial review purposes; and | 0021| (6) for the hearing to be held in Santa Fe for | 0022| enforcement hearings and hearings on actions of statewide | 0023| application, and to be held in the place or area affected for | 0024| enforcement hearings and hearings on actions of limited local | 0025| concern. | 0001| C. Actions taken by the board after a hearing | 0002| pursuant to the provisions of this section shall be: | 0003| (1) written and shall state the reasons for the | 0004| action; | 0005| (2) made public when taken; | 0006| (3) communicated to all persons who have made a | 0007| written request for notification of the action taken; and | 0008| (4) taken not more than thirty days after the | 0009| submission of the hearing officer's report to the board. | 0010| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0011| ADMINISTRATIVE ACTIONS.-- | 0012| A. Any person adversely affected by an action taken | 0013| by the board after review pursuant to the provisions of Section | 0014| 61 of the Gaming Control Act may appeal the action to the court | 0015| of appeals. The appeal shall be on the record made at the | 0016| hearing. To support his appeal, the appellant shall make | 0017| arrangements with the board for a sufficient number of | 0018| transcripts of the record of the hearing on which the appeal is | 0019| based. The appellant shall pay for the preparation of the | 0020| transcripts. | 0021| B. On appeal, the court of appeals shall set aside | 0022| the administrative action only if it is found to be: | 0023| (1) arbitrary, capricious or an abuse of | 0024| discretion; | 0025| (2) not supported by substantial evidence in | 0001| the whole record; or | 0002| (3) otherwise not in accordance with law. | 0003| Section 63. Section 3-21-1 NMSA 1978 (being Laws 1965, | 0004| Chapter 300, Section 14-20-1, as amended by Laws 1995, Chapter | 0005| 170, Section 4 and also by Laws 1995, Chapter 211, Section 3) is | 0006| amended to read: | 0007| "3-21-1. ZONING--AUTHORITY OF COUNTY OR MUNICIPALITY.-- | 0008| A. For the purpose of promoting health, safety, | 0009| morals or the general welfare, a county or municipality is a | 0010| zoning authority and may regulate and restrict within its | 0011| jurisdiction the: | 0012| (1) height, number of stories and size of | 0013| buildings and other structures; | 0014| (2) percentage of a lot that may be occupied; | 0015| (3) size of yards, courts and other open space; | 0016| (4) density of population; and | 0017| (5) location and use of buildings, structures | 0018| and land for trade, industry, residence or other purposes, | 0019| including establishing areas in which structures containing | 0020| legal gambling operations may or may not be located. | 0021| B. The county or municipal zoning authority may: | 0022| (1) divide the territory under its jurisdiction | 0023| into districts of such number, shape, area and form as is | 0024| necessary to carry out the purposes of Sections 3-21-1 through | 0025| 3-21-14 NMSA 1978; and | 0001| (2) regulate or restrict the erection, | 0002| construction, reconstruction, alteration, repair or use of | 0003| buildings, structures or land in each district. All such | 0004| regulations shall be uniform for each class or kind of buildings | 0005| within each district, but regulation in one district may differ | 0006| from regulation in another district. | 0007| C. All state-licensed or state-operated community | 0008| residences for the mentally ill or developmentally disabled | 0009| serving ten or fewer persons may be considered a residential use | 0010| of property for purposes of zoning and may be permitted use in | 0011| all districts in which residential uses are permitted generally, | 0012| including particularly residential zones for single-family | 0013| dwellings. | 0014| D. A board of county commissioners of the county in | 0015| which the greatest portion of the territory of the petitioning | 0016| village, community, neighborhood or district lies may declare by | 0017| ordinance that a village, community, neighborhood or district is | 0018| a "traditional historic community" upon petition by twenty-five | 0019| percent or more of the registered qualified electors of the | 0020| territory within the village, community, neighborhood or | 0021| district requesting the designation. The number of registered | 0022| qualified electors shall be based on county records as of the | 0023| date of the last general election. | 0024| E. Any village, community, neighborhood or district | 0025| that is declared a traditional historic village shall be | 0001| excluded from the extraterritorial zone and extraterritorial | 0002| zoning authority of any municipality whose extraterritorial | 0003| zoning authority extends to include all or a portion of the | 0004| traditional historic community and shall be subject to the | 0005| zoning jurisdiction of the county in which the greatest portion | 0006| of the traditional historic community lies." | 0007| Section 64. A new section of the New Mexico Finance | 0008| Authority Act is enacted to read: | 0009| "[NEW MATERIAL] NATIVE AMERICAN PROJECT REVOLVING FUND- | 0010| -PURPOSE--ADMINISTRATION.-- | 0011| A. The "Native American project revolving fund" is | 0012| created within the authority. The fund shall be administered by | 0013| the authority as a separate account, but may consist of such | 0014| subaccounts as the authority deems necessary to carry out the | 0015| purposes of the fund. The authority is authorized to establish | 0016| procedures required to administer the fund in accordance with | 0017| the New Mexico Finance Authority Act. | 0018| B. Except as otherwise provided in this section, | 0019| money from payments of principal of and interest on loans and | 0020| payments of principal of and interest on securities held by the | 0021| authority for Native American projects shall be deposited in the | 0022| Native American project revolving fund. The fund shall also | 0023| consist of any other money appropriated, distributed or | 0024| otherwise allocated to the fund for the purpose of financing | 0025| Native American projects. | 0001| C. Money appropriated to pay administrative costs, | 0002| money available for administrative costs from other sources and | 0003| money from payments of interest on loans or securities held by | 0004| the authority, including payments of interest on loans and | 0005| securities held by the authority for Native American projects, | 0006| that represents payments for administrative costs shall not be | 0007| deposited in the Native American project revolving fund but | 0008| shall be deposited in a separate account of the authority and | 0009| may be used by the authority to meet administrative costs of the | 0010| authority. | 0011| D. Except as otherwise provided in this section, | 0012| money in the Native American project revolving fund is | 0013| appropriated to the authority to make loans or grants and to | 0014| purchase or sell securities to assist qualified Native American | 0015| entities in financing Native American projects in accordance | 0016| with the New Mexico Finance Authority Act. | 0017| E. Money in the Native American project revolving | 0018| fund not needed for immediate disbursement, including money held | 0019| in reserve, may be deposited with the state treasurer for | 0020| short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or | 0021| may be invested in direct and general obligations of or | 0022| obligations fully and unconditionally guaranteed by the United | 0023| States, obligations issued by agencies of the United States, | 0024| obligations of this state or any political subdivision of the | 0025| state, interest-bearing time deposits, commercial paper issued | 0001| by corporations organized and operating in the United States and | 0002| rated "prime" quality by a national rating service, other | 0003| investments permitted by Section 6-10-10 NMSA 1978 or as | 0004| otherwise provided by the trust indenture or bond resolution, if | 0005| money is pledged for or secures payment of bonds issued by the | 0006| authority. | 0007| F. The authority shall establish fiscal controls and | 0008| accounting procedures that are sufficient to assure proper | 0009| accounting for Native American project revolving fund payments, | 0010| disbursements and balances. | 0011| G. As used in this section, "qualified Native | 0012| American entity" means an Indian nation, tribe or pueblo located | 0013| wholly or partially in New Mexico, including a political | 0014| subdivision or wholly owned enterprise of an Indian nation, | 0015| tribe or pueblo, and "Native American project" means any | 0016| economic development, utility, community facility or other | 0017| infrastructure project for a qualified Native American entity. | 0018| H. To implement a program to assist qualified | 0019| entities in financing public projects, the authority may: | 0020| (1) make loans to qualified Native American | 0021| entities that establish one or more dedicated sources of revenue | 0022| to repay the loan from the authority; | 0023| (2) make, enter into and enforce all contracts | 0024| necessary, convenient or desirable for the purposes of the | 0025| authority or pertaining to: | 0001| (a) a loan to a qualified Native American | 0002| entity; | 0003| (b) a grant to a qualified Native American | 0004| entity; | 0005| (c) a purchase or sale of securities | 0006| individually or on a pooled basis; or | 0007| (d) the performance of its duties and | 0008| execution of any of its powers under the New Mexico Finance | 0009| Authority Act; | 0010| (3) purchase or hold securities at prices and | 0011| in a manner the authority considers advisable, giving due | 0012| consideration to the financial capability of the qualified | 0013| Native American entity, and sell securities acquired or held by | 0014| it at prices without relation to cost and in a manner the | 0015| authority considers advisable; | 0016| (4) prescribe the form of application or | 0017| procedure required of a qualified Native American entity for a | 0018| loan or purchase of its securities, fix the terms and conditions | 0019| of the loan or purchase and enter into agreements with qualified | 0020| entities with respect to loans or purchases; | 0021| (5) charge for its costs and services in review | 0022| or consideration of a proposed loan to a qualified Native | 0023| American entity or purchase by the authority of securities, | 0024| whether or not the loan is made or the securities purchased; | 0025| (6) fix and establish terms and provisions with | 0001| respect to: | 0002| (a) a purchase of securities by the | 0003| authority, including date and maturities of the securities; | 0004| (b) redemption or payment before maturity; | 0005| and | 0006| (c) any other matters that in connection | 0007| with the purchase are necessary, desirable or advisable in the | 0008| judgment of the authority; | 0009| (7) to the extent permitted under its contracts | 0010| with the holders of bonds of the authority, consent to | 0011| modification of the rate of interest, time and payment of | 0012| installment of principal or interest, security or any other term | 0013| of a bond, contract or agreement of any kind to which the | 0014| authority is a party; | 0015| (8) in connection with the purchase of any | 0016| securities, consider the ability of the qualified Native | 0017| American entity to secure financing from other sources and the | 0018| costs of that financing and the particular public project or | 0019| purpose to be financed or refinanced with the proceeds of the | 0020| securities to be purchased by the authority; | 0021| (9) acquire and hold title to or leasehold | 0022| interest in real and personal property and to sell, convey or | 0023| lease that property for the purpose of satisfying a default or | 0024| enforcing the provisions of a loan agreement; and | 0025| (10) in the event of default by a qualified | 0001| entity, enforce its rights by suit or mandamus or may use all | 0002| other available remedies under state law. | 0003| I. The authority may issue and sell bonds in | 0004| principal amounts it considers necessary to provide sufficient | 0005| funds for any purpose of this section, including: | 0006| (1) purchase of securities; | 0007| (2) making loans through the purchase of | 0008| securities; | 0009| (3) making grants for Native American projects; | 0010| (4) the construction of Native American | 0011| projects; | 0012| (5) the payment, funding or refunding of the | 0013| principal of or interest or redemption premiums on bonds issued | 0014| by the authority, whether the bonds or interest to be paid, | 0015| funded or refunded have or have not become due; | 0016| (6) the establishment or increase of reserves | 0017| or sinking funds to secure or to pay principal, premium, if any, | 0018| or interest on bonds; and | 0019| (7) all other costs or expenses of the | 0020| authority incident to and necessary or convenient to carry out | 0021| the provisions of this section. | 0022| J. Except as otherwise provided in this section, all | 0023| bonds or other obligations issued by the authority shall be | 0024| obligations of the authority payable solely from the revenues, | 0025| income, fees, charges or funds of the authority that may, | 0001| pursuant to the provisions of the New Mexico Finance Authority | 0002| Act, be pledged to the payment of such obligations, and the | 0003| bonds or other obligations shall not create an obligation, debt | 0004| or liability of the state. No breach of any pledge, obligation | 0005| or agreement of the authority shall impose a pecuniary liability | 0006| or a charge upon the general credit or taxing power of the state | 0007| or any political subdivision of the state. | 0008| K. As security for the payment of the principal, | 0009| interest or premium, if any, on bonds issued by the authority, | 0010| the authority is authorized to pledge, transfer and assign: | 0011| (1) any obligation of a qualified Native | 0012| American entity that is payable to the authority; | 0013| (2) the security for the qualified Native | 0014| American entity's obligations; | 0015| (3) money in the Native American project | 0016| revolving fund; | 0017| (4) any grant, subsidy or contribution from the | 0018| United States or any of its agencies or instrumentalities; or | 0019| (5) any income, revenues, funds or other money | 0020| of the authority from any other source authorized for such | 0021| pledge, transfer or assignment. | 0022| L. Bonds issued by the authority pursuant to this | 0023| section may be issued in accordance with the New Mexico Finance | 0024| Authority Act." | 0025| Section 65. A new section of the Tax Administration Act | 0001| is enacted to read: | 0002| "[NEW MATERIAL] DISTRIBUTION OF REVENUE RECEIVED | 0003| PURSUANT TO INDIAN GAMING REVENUE-SHARING AGREEMENT.-- | 0004| A. A distribution of thirty-three and one-third | 0005| percent of the net receipts attributable to amounts received by | 0006| the state pursuant to the provisions of any Indian gaming | 0007| revenue-sharing agreement shall be made to the Native American | 0008| project revolving fund administered by the New Mexico finance | 0009| authority. | 0010| B. The state pledges to and agrees with the holders | 0011| of any bonds or notes issued by the New Mexico finance authority | 0012| and payable from the revenue source specified in Subsection A of | 0013| this section that it will not limit, reduce or alter the | 0014| distribution of the specified net receipts until the bonds or | 0015| notes with any interest are fully met and discharged. The New | 0016| Mexico finance authority is authorized to include this pledge | 0017| and agreement of the state in any agreement with the holders of | 0018| the bonds or notes." | 0019| Section 66. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0020| Chapter 248, Section 2, as amended) is amended to read: | 0021| "7-1-2. APPLICABILITY.--The Tax Administration Act | 0022| applies to and governs: | 0023| A. the administration and enforcement of the | 0024| following taxes or tax acts as they now exist or may hereafter | 0025| be amended: | 0001| (1) Income Tax Act; | 0002| (2) Withholding Tax Act; | 0003| (3) Gross Receipts and Compensating Tax Act and | 0004| any state gross receipts tax; | 0005| (4) Liquor Excise Tax Act; | 0006| (5) Local Liquor Excise Tax Act; | 0007| ~~[(6) Banking and Financial Corporations Tax~~ | 0008| ~~Act;~~ | 0009| ~~(7)]~~ (6) any municipal local option gross | 0010| receipts tax; | 0011| ~~[(8)]~~ (7) any county local option gross | 0012| receipts tax; | 0013| ~~[(9)]~~ (8) Special Fuels Supplier Tax Act; | 0014| ~~[(10)]~~ (9) Gasoline Tax Act; | 0015| ~~[(11)]~~ (10) petroleum products loading fee, | 0016| which fee shall be considered a tax for the purpose of the Tax | 0017| Administration Act; | 0018| ~~[(12)]~~ (11) Alternative Fuel Tax Act; | 0019| ~~[(13)]~~ (12) Cigarette Tax Act; | 0020| ~~[(14)]~~ (13) Estate Tax Act; | 0021| ~~[(15)]~~ (14) Railroad Car Company Tax Act; | 0022| ~~[(16)]~~ (15) Investment Credit Act; | 0023| ~~[(17)]~~ (16) Corporate Income and Franchise | 0024| Tax Act; | 0025| ~~[(18)]~~ (17) Uniform Division of Income for | 0001| Tax Purposes Act; | 0002| ~~[(19)]~~ (18) Multistate Tax Compact; | 0003| ~~[(20)]~~ (19) Tobacco Products Tax Act; | 0004| ~~[(21)]~~ (20) Filmmaker's Credit Act; and | 0005| ~~[(22)]~~ (21) the telecommunications relay | 0006| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0007| surcharge shall be considered a tax for the purposes of the Tax | 0008| Administration Act; | 0009| B. the administration and enforcement of the | 0010| following taxes, surtaxes, advanced payments or tax acts as they | 0011| now exist or may hereafter be amended: | 0012| (1) Resources Excise Tax Act; | 0013| (2) Severance Tax Act; | 0014| (3) any severance surtax; | 0015| (4) Oil and Gas Severance Tax Act; | 0016| (5) Oil and Gas Conservation Tax Act; | 0017| (6) Oil and Gas Emergency School Tax Act; | 0018| (7) Oil and Gas Ad Valorem Production Tax Act; | 0019| (8) Natural Gas Processors Tax Act; | 0020| (9) Oil and Gas Production Equipment Ad Valorem | 0021| Tax Act; | 0022| (10) Copper Production Ad Valorem Tax Act; and | 0023| (11) any advance payment required to be made by | 0024| any act specified in this subsection, which advance payment | 0025| shall be considered a tax for the purposes of the Tax | 0001| Administration Act; | 0002| C. the administration and enforcement of the | 0003| following taxes, surcharges, fees or acts as they now exist or | 0004| may hereafter be amended: | 0005| (1) Weight Distance Tax Act; | 0006| (2) Special Fuels Tax Act; | 0007| (3) the workers' compensation fee authorized by | 0008| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0009| for purposes of the Tax Administration Act; | 0010| (4) Uniform Unclaimed Property Act; | 0011| (5) 911 emergency surcharge and the network and | 0012| database surcharge, which surcharges shall be considered taxes | 0013| for purposes of the Tax Administration Act; | 0014| (6) the solid waste assessment fee authorized | 0015| by the Solid Waste Act, which fee shall be considered a tax for | 0016| purposes of the Tax Administration Act; ~~[and]~~ | 0017| (7) the water conservation fee imposed by | 0018| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0019| for the purposes of the Tax Administration Act; and | 0020| (8) the gaming tax imposed pursuant to the | 0021| Gaming Control Act; and | 0022| D. the administration and enforcement of all other | 0023| laws, with respect to which the department is charged with | 0024| responsibilities pursuant to the Tax Administration Act, but | 0025| only to the extent that the other laws do not conflict with the | 0001| Tax Administration Act." | 0002| Section 67. A new section of the Tax Administration Act | 0003| is enacted to read: | 0004| "[NEW MATERIAL] DISTRIBUTION OF PORTION OF GAMING TAX.- | 0005| -A distribution of ten percent of the net receipts attributable | 0006| to amounts received by the department as gaming tax revenue | 0007| shall be distributed to the tourism fund to be expended in | 0008| accordance with the provisions establishing that fund." | 0009| Section 68. A new section of the Tourism Department Act | 0010| is enacted to read: | 0011| "[NEW MATERIAL] TOURISM FUND CREATED--EXPENDITURE.-- | 0012| There is created in the state treasury the "tourism fund". | 0013| Money deposited in the fund is appropriated to the department to | 0014| develop and implement the state's five-year tourism plan | 0015| pursuant to the Tourism Department Act in fiscal year 1998. | 0016| Unencumbered or unexpended balances remaining in the fund at the | 0017| end of a fiscal year after fiscal year 1998 shall revert to the | 0018| general fund." | 0019| Section 69. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0020| Chapter 91, Section 1, as amended) is amended to read: | 0021| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0022| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0023| A. In recognition of the fact that a representative | 0024| government is dependent upon an informed electorate, it is | 0025| declared to be public policy of this state that all persons are | 0001| entitled to the greatest possible information regarding the | 0002| affairs of government and the official acts of those officers | 0003| and employees who represent them. The formation of public | 0004| policy or the conduct of business by vote shall not be conducted | 0005| in closed meeting. All meetings of any public body except the | 0006| legislature and the courts shall be public meetings, and all | 0007| persons so desiring shall be permitted to attend and listen to | 0008| the deliberations and proceedings. Reasonable efforts shall be | 0009| made to accommodate the use of audio and video recording | 0010| devices. | 0011| B. All meetings of a quorum of members of any board, | 0012| commission, administrative adjudicatory body or other | 0013| policymaking body of any state agency, any agency or authority | 0014| of any county, municipality, district or any political | 0015| subdivision, held for the purpose of formulating public policy, | 0016| including the development of personnel policy, rules, | 0017| regulations or ordinances, discussing public business or for the | 0018| purpose of taking any action within the authority of or the | 0019| delegated authority of any board, commission or other | 0020| policymaking body are declared to be public meetings open to the | 0021| public at all times, except as otherwise provided in the | 0022| constitution of New Mexico or the Open Meetings Act. No public | 0023| meeting once convened that is otherwise required to be open | 0024| pursuant to the Open Meetings Act shall be closed or dissolved | 0025| into small groups or committees for the purpose of permitting | 0001| the closing of the meeting. | 0002| C. If otherwise allowed by law or rule of the public | 0003| body, a member of a public body may participate in a meeting of | 0004| the public body by means of a conference telephone or other | 0005| similar communications equipment when it is otherwise difficult | 0006| or impossible for the member to attend the meeting in person, | 0007| provided that each member participating by conference telephone | 0008| can be identified when speaking, all participants are able to | 0009| hear each other at the same time and members of the public | 0010| attending the meeting are able to hear any member of the public | 0011| body who speaks during the meeting. | 0012| D. Any meetings at which the discussion or adoption | 0013| of any proposed resolution, rule, regulation or formal action | 0014| occurs and at which a majority or quorum of the body is in | 0015| attendance, and any closed meetings, shall be held only after | 0016| reasonable notice to the public. The affected body shall | 0017| determine at least annually in a public meeting what notice for | 0018| a public meeting is reasonable when applied to that body. That | 0019| notice shall include broadcast stations licensed by the federal | 0020| communications commission and newspapers of general circulation | 0021| that have provided a written request for such notice. | 0022| E. A public body may recess and reconvene a meeting | 0023| to a day subsequent to that stated in the meeting notice if, | 0024| prior to recessing, the public body specifies the date, time and | 0025| place for continuation of the meeting and, immediately following | 0001| the recessed meeting, posts notice of the date, time and place | 0002| for the reconvened meeting on or near the door of the place | 0003| where the original meeting was held and in at least one other | 0004| location appropriate to provide public notice of the | 0005| continuation of the meeting. Only matters appearing on the | 0006| agenda of the original meeting may be discussed at the | 0007| reconvened meeting. | 0008| F. Meeting notices shall include an agenda | 0009| containing a list of specific items of business to be discussed | 0010| or transacted at the meeting or information on how the public | 0011| may obtain a copy of such an agenda. Except in the case of an | 0012| emergency, the agenda shall be available to the public at least | 0013| twenty-four hours prior to the meeting. Except for emergency | 0014| matters, a public body shall take action only on items appearing | 0015| on the agenda. For purposes of this subsection, an "emergency" | 0016| refers to unforeseen circumstances that, if not addressed | 0017| immediately by the public body, will likely result in injury or | 0018| damage to persons or property or substantial financial loss to | 0019| the public body. | 0020| G. The board, commission or other policymaking body | 0021| shall keep written minutes of all its meetings. The minutes | 0022| shall include at a minimum the date, time and place of the | 0023| meeting, the names of members in attendance and those absent, | 0024| the substance of the proposals considered and a record of any | 0025| decisions and votes taken that show how each member voted. All | 0001| minutes are open to public inspection. Draft minutes shall be | 0002| prepared within ten working days after the meeting and shall be | 0003| approved, amended or disapproved at the next meeting where a | 0004| quorum is present. Minutes shall not become official until | 0005| approved by the policymaking body. | 0006| H. The provisions of Subsections A, B and G of this | 0007| section do not apply to: | 0008| (1) meetings pertaining to issuance, | 0009| suspension, renewal or revocation of a license, except that a | 0010| hearing at which evidence is offered or rebutted shall be open. | 0011| All final actions on the issuance, suspension, renewal or | 0012| revocation of a license shall be taken at an open meeting; | 0013| (2) limited personnel matters; provided that | 0014| for purposes of the Open Meetings Act, "limited personnel | 0015| matters" means the discussion of hiring, promotion, demotion, | 0016| dismissal, assignment or resignation of or the investigation or | 0017| consideration of complaints or charges against any individual | 0018| public employee; provided further that this subsection is not to | 0019| be construed as to exempt final actions on personnel from being | 0020| taken at open public meetings, nor does it preclude an aggrieved | 0021| public employee from demanding a public hearing. Judicial | 0022| candidates interviewed by any commission shall have the right to | 0023| demand an open interview; | 0024| (3) deliberations by a public body in | 0025| connection with an administrative adjudicatory proceeding. For | 0001| purposes of this paragraph, an "administrative adjudicatory | 0002| proceeding" means a proceeding brought by or against a person | 0003| before a public body in which individual legal rights, duties or | 0004| privileges are required by law to be determined by the public | 0005| body after an opportunity for a trial-type hearing. Except as | 0006| otherwise provided in this section, the actual administrative | 0007| adjudicatory proceeding at which evidence is offered or rebutted | 0008| and any final action taken as a result of the proceeding shall | 0009| occur in an open meeting; | 0010| (4) the discussion of personally identifiable | 0011| information about any individual student, unless the student, | 0012| his parent or guardian requests otherwise; | 0013| (5) meetings for the discussion of bargaining | 0014| strategy preliminary to collective bargaining negotiations | 0015| between the policymaking body and a bargaining unit representing | 0016| the employees of that policymaking body and collective | 0017| bargaining sessions at which the policymaking body and the | 0018| representatives of the collective bargaining unit are present; | 0019| (6) that portion of meetings at which a | 0020| decision concerning purchases in an amount exceeding two | 0021| thousand five hundred dollars ($2,500) that can be made only | 0022| from one source and that portion of meetings at which the | 0023| contents of competitive sealed proposals solicited pursuant to | 0024| the Procurement Code are discussed during the contract | 0025| negotiation process. The actual approval of purchase of the | 0001| item or final action regarding the selection of a contractor | 0002| shall be made in an open meeting; | 0003| (7) meetings subject to the attorney-client | 0004| privilege pertaining to threatened or pending litigation in | 0005| which the public body is or may become a participant; | 0006| (8) meetings for the discussion of the | 0007| purchase, acquisition or disposal of real property or water | 0008| rights by the public body; ~~[and]~~ | 0009| (9) those portions of meetings of committees or | 0010| boards of public hospitals that receive less than fifty percent | 0011| of their operating budget from direct public funds and | 0012| appropriations where strategic and long-range business plans are | 0013| discussed; and | 0014| (10) that portion of a meeting of the gaming | 0015| control board dealing with information made confidential | 0016| pursuant to the provisions of the Gaming Control Act. | 0017| I. If any meeting is closed pursuant to the | 0018| exclusions contained in Subsection H of this section, the | 0019| closure: | 0020| (1) if made in an open meeting, shall be | 0021| approved by a majority vote of a quorum of the policymaking | 0022| body; the authority for the closure and the subject to be | 0023| discussed shall be stated with reasonable specificity in the | 0024| motion calling for the vote on a closed meeting; the vote shall | 0025| be taken in an open meeting; and the vote of each individual | 0001| member shall be recorded in the minutes. Only those subjects | 0002| announced or voted upon prior to closure by the policymaking | 0003| body may be discussed in a closed meeting; and | 0004| (2) if called for when the policymaking body is | 0005| not in an open meeting, shall not be held until public notice, | 0006| appropriate under the circumstances, stating the specific | 0007| provision of the law authorizing the closed meeting and stating | 0008| with reasonable specificity the subject to be discussed is given | 0009| to the members and to the general public. | 0010| J. Following completion of any closed meeting, the | 0011| minutes of the open meeting that was closed or the minutes of | 0012| the next open meeting if the closed meeting was separately | 0013| scheduled shall state that the matters discussed in the closed | 0014| meeting were limited only to those specified in the motion for | 0015| closure or in the notice of the separate closed meeting. This | 0016| statement shall be approved by the public body under Subsection | 0017| G of this section as part of the minutes." | 0018| Section 70. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0019| Chapter 303, Section 19-1, as amended) is amended to read: | 0020| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0021| Chapter 30, Article 19 NMSA 1978: | 0022| A. "antique gambling device" means a gambling device | 0023| twenty-five years of age or older and substantially in original | 0024| condition that is not used for gambling or commercial gambling | 0025| or located in a gambling place; | 0001| B. "bet" means a bargain in which the parties agree | 0002| that, dependent upon chance, even though accompanied by some | 0003| skill, one stands to win or lose anything of value specified in | 0004| the agreement. A bet does not include: | 0005| (1) bona fide business transactions that are | 0006| valid under the law of contracts, including ~~[without~~ | 0007| ~~limitation]~~: | 0008| (a) contracts for the purchase or sale, at | 0009| a future date, of securities or other commodities; and | 0010| (b) agreements to compensate for loss | 0011| caused by the happening of the chance, including ~~[without~~ | 0012| ~~limitation]~~ contracts for indemnity or guaranty and life or | 0013| health and accident insurance; | 0014| (2) offers of purses, prizes or premiums to the | 0015| actual contestants in any bona fide contest for the | 0016| determination of skill, speed, strength or endurance or to the | 0017| bona fide owners of animals or vehicles entered in such contest; | 0018| (3) a lottery as defined in this section; or | 0019| (4) betting otherwise permitted by law; | 0020| ~~[C. "lottery" means an enterprise other than the~~ | 0021| ~~New Mexico state lottery established and operated pursuant to~~ | 0022| ~~the New Mexico Lottery Act wherein, for a consideration, the~~ | 0023| ~~participants are given an opportunity to win a prize, the award~~ | 0024| ~~of which is determined by chance, even though accompanied by~~ | 0025| ~~some skill. As used in this subsection, "consideration" means~~ | 0001| ~~anything of pecuniary value required to be paid to the promoter~~ | 0002| ~~in order to participate in such enterprise;~~ | 0003| ~~D.]~~ C. "gambling device" means a contrivance | 0004| other than an antique gambling device that is not licensed for | 0005| use pursuant to the Gaming Control Act and that, for a | 0006| consideration, affords the player an opportunity to obtain | 0007| anything of value, the award of which is determined by chance, | 0008| even though accompanied by some skill, ~~[and]~~ whether or not | 0009| the prize is automatically paid by the device; ~~[and]~~ | 0010| ~~[E.]~~ D. "gambling place" means ~~[any]~~ a | 0011| building or tent, ~~[any]~~ a vehicle, whether self-propelled or | 0012| not, or ~~[any]~~ a room within any of them that is not within | 0013| the premises of a person licensed as a lottery retailer or that | 0014| is not licensed pursuant to the Gaming Control Act, one of | 0015| whose principal uses is: | 0016| (1) making and settling of bets; | 0017| (2) receiving, holding, recording or forwarding | 0018| bets or offers to bet; | 0019| (3) conducting lotteries; or | 0020| (4) playing gambling devices; and | 0021| E. "lottery" means an enterprise wherein, for a | 0022| consideration, the participants are given an opportunity to win | 0023| a 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 | 0001| New Mexico Lottery Act or gaming that is licensed and operated | 0002| pursuant to the Gaming Control Act. As used in this subsection, | 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." | 0006| Section 71. A new section of Chapter 40, Article 3 NMSA | 0007| 1978 is enacted to read: | 0008| "[NEW MATERIAL] GAMBLING DEBTS ARE SEPARATE DEBTS OF | 0009| SPOUSE INCURRING DEBT.--A gambling debt incurred by a married | 0010| person as a result of legal gambling is a separate debt of the | 0011| spouse incurring the debt." | 0012| Section 72. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0013| Chapter 39, Section 96) is amended to read: | 0014| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0015| A. It is a violation of the Liquor Control Act for a | 0016| licensee to knowingly allow commercial gambling on the licensed | 0017| premises. | 0018| B. In addition to any criminal penalties, any person | 0019| who violates Subsection A of this section may have his license | 0020| suspended or revoked or a fine imposed, or both, pursuant to the | 0021| Liquor Control Act. | 0022| C. ~~[For purposes of]~~ As used in this section: | 0023| (1) "commercial gambling" means: | 0024| ~~[(1)]~~ (a) participating in the earnings | 0025| of or operating a gambling place; | 0001| ~~[(2)]~~ (b) receiving, recording or | 0002| forwarding bets or offers to bet; | 0003| ~~[(3)]~~ (c) possessing facilities with | 0004| the intent to receive, record or forward bets or offers to bet; | 0005| ~~[(4)]~~ (d) for gain, becoming a | 0006| custodian of anything of value bet or offered to be bet; | 0007| ~~[(5)]~~ (e) conducting a lottery where | 0008| both the consideration and the prize are money, or whoever with | 0009| intent to conduct a lottery possesses facilities to do so; or | 0010| ~~[(6)]~~ (f) setting up for use for the | 0011| purpose of gambling, or collecting the proceeds of, any gambling | 0012| device or game; and | 0013| (2) "commercial gambling" does not mean: | 0014| (a) activities authorized pursuant to the | 0015| New Mexico Lottery Act; | 0016| (b) the conduct of activities pursuant to | 0017| Subsection D of Section 30-19-6 NMSA 1978; and | 0018| (c) gaming authorized pursuant to the | 0019| Gaming Control Act on the premises of a gaming operator licensee | 0020| licensed pursuant to that act." | 0021| Section 73. SEVERABILITY.--If any part or application of | 0022| the Gaming Control Act is held invalid, the remainder or its | 0023| application to other situations or persons shall not be | 0024| affected. | 0025| Section 74. EMERGENCY.--It is necessary for the public | 0001| peace, health and safety that this act take effect immediately. | 0002| - 158 - | 0003| State of New Mexico | 0004| House of Representatives | 0005| | 0006| FORTY-THIRD LEGISLATURE | 0007| FIRST SESSION, 1997 | 0008| | 0009| | 0010| March 10, 1997 | 0011| | 0012| | 0013| Mr. Speaker: | 0014| | 0015| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0016| been referred | 0017| | 0018| HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR | 0019| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0020| FOR HOUSE BILL 399 | 0021| | 0022| has had it under consideration and reports same with | 0023| recommendation that it DO NOT PASS, but that | 0024| | 0025| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE | 0001| FOR HOUSE JUDICIARY COMMITTEE SUBSTITUTE | 0002| FOR HOUSE BUSINESS AND INDUSTRY COMMITTEE | 0003| SUBSTITUTE FOR HOUSE BILL 399 | 0004| | 0005| be reported WITHOUT RECOMMENDATION, and thence referred to | 0006| the APPROPRIATIONS AND FINANCE COMMITTEE. | 0007| | 0008| | 0009| | 0010| Respectfully submitted, | 0011| | 0012| | 0013| | 0014| | 0015| Jerry W. Sandel, Chairman | 0016| | 0017| | 0018| Adopted Not Adopted | 0019| | 0020| (Chief Clerk) | 0021| (Chief Clerk) | 0022| | 0023| Date | 0024| | 0025| The roll call vote was 8 For 4 Against | 0001| Yes: 8 | 0002| No: Parsons, Russell, Ryan, Stell | 0003| Excused: Porter | 0004| Absent: None | 0005| | 0006| | 0007| | 0008| G:\BILLTEXT\BILLW_97\H0399 | 0009| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR | 0010| HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR | 0011| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0012| HOUSE BILL 399 | 0013| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0014| INTRODUCED BY | 0015| | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| AN ACT | 0022| RELATING TO GAMING; ENACTING THE INDIAN GAMING COMPACT; | 0023| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE | 0024| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR | 0025| PUEBLO CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING | 0001| THE GAMING CONTROL ACT TO PERMIT CERTAIN NONTRIBAL GAMING; | 0002| PROVIDING PENALTIES; IMPOSING A GAMING TAX AND FEES; AMENDING | 0003| AND ENACTING SECTIONS OF THE NMSA 1978; MAKING | 0004| APPROPRIATIONS; DECLARING AN EMERGENCY. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT | 0008| ENTERED INTO.--The Indian Gaming Compact is enacted into law | 0009| and entered into with all Indian nations, tribes and pueblos | 0010| in the state legally joining in it by enactment of a | 0011| resolution pursuant to the requirements of applicable tribal | 0012| and federal law. The compact is enacted and entered into in | 0013| the form substantially as follows: | 0014| "INDIAN GAMING COMPACT | 0015| INTRODUCTION | 0016| The State is a sovereign State of the United States of | 0017| America, having been admitted to the Union pursuant to the | 0018| Act of June 20, 1910, 36 Statutes at Large 557, Chapter 310, | 0019| and is authorized by its constitution to enter into contracts | 0020| and agreements, including this Compact, with the Tribe; | 0021| The Tribe is a sovereign federally recognized Indian | 0022| tribe and its governing body has authorized the officials of | 0023| the Tribe to enter into contracts and agreements of every | 0024| description, including this Compact, with the State; | 0025| The Congress of the United States has enacted the | 0001| Indian Gaming Regulatory Act of 1988, 25 U.S.C. 2701-2721 | 0002| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0003| Class III Gaming on Indian Lands pursuant to a tribal-state | 0004| compact entered into for that purpose; | 0005| The Tribe owns or controls Indian Lands and by | 0006| Ordinance has adopted rules and regulations governing Class | 0007| III games played and related activities at any Gaming | 0008| Facility; | 0009| The State and the Tribe, in recognition of the | 0010| sovereign rights of each party and in a spirit of cooperation | 0011| to promote the best interests of the citizens of the State | 0012| and the members of the Tribe, have engaged in good faith | 0013| negotiations recognizing and respecting the interests of each | 0014| party and have agreed to this Compact. | 0015| NOW, THEREFORE, the State and the Tribe agree as follows: | 0016| TERMS AND CONDITIONS | 0017| SECTION 1. Purpose and Objectives. | 0018| The purpose and objectives of the State and the Tribe in | 0019| making this Compact are as follows: | 0020| A. To evidence the good will and cooperative spirit | 0021| between the State and the Tribe; | 0022| B. To continue the development of an effective | 0023| government-to-government relationship between the State and the | 0024| Tribe; | 0025| C. To provide for the regulation of Class III Gaming on | 0001| Indian Lands as required by the IGRA; | 0002| D. To fulfill the purpose and intent of the IGRA by | 0003| providing for tribal gaming as a means of generating tribal | 0004| revenues, thereby promoting tribal economic development, tribal | 0005| self-sufficiency, and strong tribal government; | 0006| E. To provide revenues to fund tribal government | 0007| operations or programs, to provide for the general welfare of | 0008| the tribal members and for other purposes allowed under the | 0009| IGRA; | 0010| F. To provide for the effective regulation of Class III | 0011| Gaming in which the Tribe shall have the sole proprietary | 0012| interest and be the primary beneficiary; and | 0013| G. To address the State's interest in the establishment, | 0014| by the Tribe, of rules and procedures for ensuring that Class | 0015| III Gaming is conducted fairly and honestly by the owners, | 0016| operators, employees and patrons of any Class III Gaming | 0017| enterprise on Indian Lands. | 0018| SECTION 2. Definitions. | 0019| For purposes of this Compact, the following definitions | 0020| pertain: | 0021| A. "Class III Gaming" means all forms of gaming as | 0022| defined in 25 U.S.C. 2703(8), and 25 C.F.R. 502.4. | 0023| B. "Compact" means this compact between the State and the | 0024| Tribe. | 0025| C. "Gaming Enterprise" means the tribal entity created | 0001| and designated by the Tribe as having authority to conduct Class | 0002| III Gaming pursuant to this Compact. | 0003| D. "Gaming Facility" means the buildings or structures in | 0004| which Class III Gaming is conducted on Indian Lands. | 0005| E. "Gaming Machine" means a mechanical, electromechanical | 0006| or electronic contrivance or machine that, upon insertion of a | 0007| coin, token or similar object, or upon payment of any | 0008| consideration, is available to play or operate a game, whether | 0009| the payoff is made automatically from the Gaming Machine or in | 0010| any other manner. | 0011| F. "Indian Lands" means: | 0012| 1. all lands within the exterior boundaries of the | 0013| Tribe's reservation and its confirmed grants from prior | 0014| sovereigns; or | 0015| 2. any other lands title to which is either held in | 0016| trust by the United States for the exclusive benefit of the | 0017| Tribe or a member thereof or is held by the Tribe or a member | 0018| thereof subject to restrictions against alienation imposed by | 0019| the United States, and over which the Tribe exercises | 0020| jurisdiction and governmental authority, but not including any | 0021| land within the boundaries of a municipality that is outside of | 0022| the boundaries of the Tribe's reservation or confirmed Spanish | 0023| grant, as those boundaries existed on October 17, 1988. | 0024| G. "Key Employee" means that term as defined in 25 CFR | 0025| Section 502.14. | 0001| H. "Management Contract" means a contract within the | 0002| meaning of 25 U.S.C. 2710(d)(9) and 2711. | 0003| I. "Management Contractor" means any person or entity | 0004| that has entered into a Management Contract with the Tribe. | 0005| J. "Ordinance" means the gaming ordinance and any | 0006| amendments thereto adopted by the Tribal Council of the Tribe. | 0007| K. "Primary Management Official" means that term as | 0008| defined in 25 CFR Section 502.19. | 0009| L. "State" means the State of New Mexico. | 0010| M. "State Gaming Representative" means that person | 0011| designated by the gaming control board pursuant to the Gaming | 0012| Control Act who will be responsible for actions of the State set | 0013| out in the Compact. The representative will be the single | 0014| contact with the Tribe and may be relied upon as such by the | 0015| Tribe. If the State Legislature enacts legislation to establish | 0016| an agency of the State, such agency may assume the duties of the | 0017| State Gaming Representative. | 0018| N. "Tribal Gaming Agency" means the tribal governmental | 0019| agency which will be identified to the State Gaming | 0020| Representative as the agency responsible for actions of the | 0021| Tribe set out in the Compact. It will be the single contact | 0022| with the State and may be relied upon as such by the State. | 0023| O. "Tribe" means any Indian Tribe or Pueblo located | 0024| within the State of New Mexico entering into this Compact as | 0025| provided for herein. | 0001| SECTION 3. Authorized Class III Gaming. | 0002| The Tribe may conduct, only on Indian Lands, subject to | 0003| all of the terms and conditions of this Compact, any or all | 0004| forms of casino-style gaming, including but not limited to slot | 0005| machines and other forms of electronic gaming devices; all forms | 0006| of poker, blackjack and other casino-style card games, both | 0007| banked and unbanked; roulette; craps; keno; wheel of fortune; | 0008| pai gow; and other games played in casino settings, and any form | 0009| of a lottery. | 0010| Subject to the foregoing, the Tribe shall establish, in | 0011| its discretion, by tribal law, such limitations as it deems | 0012| appropriate on the number and type of Class III Gaming | 0013| conducted, the location of Class III Gaming on Indian Lands, the | 0014| hours and days of operation, and betting and pot limits, | 0015| applicable to such gaming. | 0016| SECTION 4. Regulation of Class III Gaming. | 0017| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0018| assure that the Tribe will: | 0019| 1. operate all Class III Gaming pursuant to this | 0020| Compact, tribal law, the IGRA and other | 0021| applicable Federal law; | 0022| 2. provide for the physical safety of patrons in any | 0023| Gaming Facility; | 0024| 3. provide for the physical safety of personnel | 0025| employed by the gaming enterprise; | 0001| 4. provide for the physical safeguarding of assets | 0002| transported to and from the Gaming Facility and | 0003| cashier's cage department; | 0004| 5. provide for the protection of the property of the | 0005| patrons and the gaming enterprise from illegal | 0006| activity; | 0007| 6. participate in licensing of primary management | 0008| officials and key employees of a Class III Gaming | 0009| enterprise; | 0010| 7. detain persons who may be involved in illegal | 0011| acts for the purpose of notifying law enforcement | 0012| authorities; and | 0013| 8. record and investigate any and all unusual | 0014| occurrences related to Class III Gaming within | 0015| the Gaming Facility. | 0016| B. Regulations. Without affecting the generality of the | 0017| foregoing, the Tribe shall adopt laws: | 0018| 1. prohibiting participation in any Class III Gaming | 0019| by any person under the age of twenty-one (21); | 0020| 2. prohibiting the employment of any person in Class | 0021| III Gaming activities who is under the age of | 0022| twenty-one (21) or who has not been licensed in | 0023| accordance with Section 5, herein; | 0024| 3. requiring the Tribe to take all necessary action | 0025| to impose on its gaming operation standards and | 0001| requirements equivalent to or more stringent than | 0002| those contained in the federal Fair Labor | 0003| Standards Act of 1938, the federal Occupational | 0004| Safety and Health Act of 1970, and any other | 0005| federal laws relating to wages, hours of work and | 0006| conditions of work, and the regulations issued | 0007| thereunder; | 0008| 4. requiring that on any construction project | 0009| involving any Gaming Facility or related | 0010| structure that is funded in whole or in part by | 0011| federal funds, all workers will be paid wages | 0012| meeting or exceeding the standards established | 0013| for New Mexico under the federal Davis-Bacon Act; | 0014| 5. providing to all employees of a gaming | 0015| establishment employment benefits, including, at | 0016| a minimum, sick leave, life insurance, paid | 0017| annual leave, medical and dental insurance as | 0018| well as providing unemployment insurance and | 0019| workers' compensation insurance through | 0020| participation in the state programs offering | 0021| those benefits; | 0022| 6. providing a grievance process for an employee in | 0023| cases of disciplinary or punitive action taken | 0024| against an employee that includes a process for | 0025| appeals to persons of greater authority than the | 0001| immediate supervisor of the employee; | 0002| 7. permitting State Department of Environment | 0003| inspectors to inspect Gaming Facilities' food | 0004| service operations during normal Gaming Facility | 0005| business hours to assure that standards and | 0006| requirements equivalent to the State's Food | 0007| Service Sanitation Act are maintained; | 0008| 8. prohibiting a gaming enterprise from cashing any | 0009| check for any patron; | 0010| 9. prohibiting a gaming enterprise from extending | 0011| credit by accepting IOUs or markers from its | 0012| patrons; | 0013| 10. requiring that odds be posted on each electronic | 0014| and electromechanical gaming device; | 0015| 11. requiring that automatic teller machines on | 0016| Gaming Facility premises be programmed so that | 0017| the machines will not accept cards issued by the | 0018| State to AFDC recipients for access to AFDC | 0019| benefits; | 0020| 12. providing that each electronic or | 0021| electromechanical gaming device in use at the | 0022| Gaming Facility must pay out a mathematically | 0023| demonstrable percentage of all amounts wagered, | 0024| which must not be less than eighty percent (80%); | 0025| 13. providing that no later than July 1, 1997, all | 0001| gaming machines on the premises of the Gaming | 0002| Facility will be connected to a central | 0003| computerized reporting and auditing system on the | 0004| Gaming Facility premises, which shall collect on | 0005| a continual basis the activity of each gaming | 0006| machine in use at the Gaming Facility, and that | 0007| such data shall be electronically accessible to | 0008| the State Gaming Representative upon entry of | 0009| appropriate security codes; | 0010| 14. enacting provisions that: | 0011| (a) prohibit an employee of the Gaming Facility | 0012| from selling, serving, giving or delivering | 0013| an alcoholic beverage to an intoxicated | 0014| person or from procuring or aiding in the | 0015| procurement of any alcoholic beverage for an | 0016| intoxicated person at the Gaming Facility; | 0017| (b) require Gaming Facility employees that | 0018| dispense, sell, serve or deliver alcoholic | 0019| beverages to attend Alcohol Server Education | 0020| Classes similar to those classes provided | 0021| for in the New Mexico Liquor Control Act; | 0022| and | 0023| (c) purchase and maintain a liquor liability | 0024| insurance policy that will provide, at a | 0025| minimum, personal injury coverage of one | 0001| million dollars ($1,000,000) per incident | 0002| and two million dollars ($2,000,000) | 0003| aggregate per policy year; | 0004| 15. prohibiting alcoholic beverages from being sold, | 0005| served, delivered or consumed in that part of a | 0006| Gaming Facility where gaming is allowed; | 0007| 16. requiring the gaming enterprise to spend an | 0008| amount that is no less than one-quarter of one | 0009| percent (.25%) of its net win as that term is | 0010| defined herein annually to fund or support | 0011| programs for the treatment and assistance of | 0012| compulsive gamblers and for the prevention of | 0013| compulsive gambling; | 0014| 17. governing any Management Contract regarding its | 0015| Class III Gaming activity such that it conforms | 0016| to the requirements of tribal law and the IGRA | 0017| and the regulations issued thereunder; | 0018| 18. prohibiting the operation of any Class III Gaming | 0019| for at least four (4) consecutive hours daily, | 0020| Mondays through Thursdays (except federal | 0021| holidays); | 0022| 19. prohibiting a Tribal Gaming Enterprise and the | 0023| Tribe from providing, allowing, contracting to | 0024| provide or arranging to provide alcoholic | 0025| beverages, food or lodging for no charge or at | 0001| reduced prices at a Gaming Facility or lodging | 0002| facility as an incentive or enticement for | 0003| patrons to game; and | 0004| 20. prohibiting the Tribe, the Tribal Gaming Agency | 0005| or a Management Contractor from contributing | 0006| directly, or through an agent, representative or | 0007| employee, revenue from a Gaming Enterprise owned | 0008| by the Tribe, or anything of value acquired with | 0009| that revenue, to a candidate, political committee | 0010| or person holding an office elected or to be | 0011| elected at an election covered by the State's | 0012| Campaign Reporting Act. | 0013| The Tribal Gaming Agency will provide true copies of all | 0014| tribal laws and regulations affecting Class III Gaming conducted | 0015| under the provisions of this Compact to the State Gaming | 0016| Representative within thirty (30) days after the effective date | 0017| of this Compact, and will provide true copies of any amendments | 0018| thereto or additional laws or regulations affecting gaming | 0019| within thirty (30) days after their enactment (or approval, if | 0020| any). | 0021| C. Audit and Financial Statements. The Tribal Gaming | 0022| Agency shall require all books and records relating to Class III | 0023| Gaming to be maintained in accordance with generally accepted | 0024| accounting principles. All such books and records shall be | 0025| retained for a period of at least six (6) years from the date of | 0001| creation. Not less than annually, the Tribal Gaming Agency | 0002| shall require an audit and a certified financial statement | 0003| covering all financial activities of the gaming enterprise by an | 0004| independent certified public accountant licensed by the State. | 0005| The financial statement shall be prepared in accordance with | 0006| generally accepted accounting principles and shall be submitted | 0007| to the Tribal Gaming Agency within one hundred twenty (120) days | 0008| of the close of the Tribe's fiscal year. Copies of the | 0009| financial statement and the audit shall be furnished to the | 0010| State Gaming Representative and the state treasurer by the | 0011| Tribal Gaming Agency within one hundred twenty days of the | 0012| agency's receipt of the documents. The Tribe will maintain the | 0013| following records for not less than six (6) years: | 0014| 1. revenues, expenses, assets, liabilities and | 0015| equity for each Gaming Facility; | 0016| 2. daily cash transactions for each Class III Gaming | 0017| activity at each Gaming Facility, including but | 0018| not limited to transactions relating to each | 0019| gaming table bank, game drop box and gaming room | 0020| bank; | 0021| 3. all markers, IOUs, returned checks, hold check or | 0022| other similar credit instruments; | 0023| 4. individual and statistical game records (except | 0024| card games) to reflect statistical drop and | 0025| statistical win; for electronic, computer, or | 0001| other technologically assisted games, analytic | 0002| reports which show the total amount of cash | 0003| wagered and the total amount of prizes won; | 0004| 5. contracts, correspondence and other transaction | 0005| documents relating to all vendors and | 0006| contractors; | 0007| 6. records of all tribal gaming enforcement | 0008| activities; | 0009| 7. audits prepared by or on behalf of the Tribe; and | 0010| 8. personnel information on all Class III Gaming | 0011| employees or agents, including rotation sheets, | 0012| hours worked, employee profiles and background | 0013| checks. | 0014| D. Violations. The agents of the Tribal Gaming Agency | 0015| shall have unrestricted access to the Gaming Facility during all | 0016| hours of Class III Gaming activity, and shall have immediate and | 0017| unrestricted access to any and all areas of the Gaming Facility | 0018| for the purpose of ensuring compliance with the provisions of | 0019| this Compact and the Ordinance. The agents shall report | 0020| immediately to the Tribal Gaming Agency any suspected violation | 0021| of this Compact, the Ordinance, or regulations of the Tribal | 0022| Gaming Agency by the gaming enterprise, Management Contractor, | 0023| or any person, whether or not associated with Class III Gaming. | 0024| E. State Gaming Representative. | 0025| 1. Upon written request by the State to the Tribe, | 0001| the Tribe will provide information on primary | 0002| management officials, key employees and | 0003| suppliers, sufficient to allow the State to | 0004| conduct its own background investigations, as it | 0005| may deem necessary, so that it may make an | 0006| independent determination as to the suitability | 0007| of such individuals, consistent with the | 0008| standards set forth in Section 5, hereinafter. | 0009| The Tribe shall consider any information or | 0010| recommendations provided to it by the State as to | 0011| any such person or entity, but the Tribe shall | 0012| have the final say with respect to the hiring or | 0013| licensing of any such person or entity. | 0014| 2. Notwithstanding that the Tribe has the primary | 0015| responsibility to administer and enforce the | 0016| regulatory requirements, the State Gaming | 0017| Representative authorized in writing by the | 0018| Governor of the State or by legislation duly | 0019| enacted by the State Legislature shall have the | 0020| right to inspect a Gaming Facility, Class III | 0021| Gaming activity, and all records relating to | 0022| Class III Gaming (including those set forth in | 0023| Section 5, hereinafter) of the Tribe, subject to | 0024| the following conditions: | 0025| (a) with respect to public areas of a Gaming | 0001| Facility, at any time without prior notice | 0002| during normal Gaming Facility business | 0003| hours; | 0004| (b) with respect to private areas of a Gaming | 0005| Facility not accessible to the public, at | 0006| any time during normal Gaming Facility | 0007| business hours, immediately after notifying | 0008| the Tribal Gaming Agency and Gaming Facility | 0009| of his or her presence on the premises and | 0010| presenting proper identification, and | 0011| requesting access to the non-public areas of | 0012| the Gaming Facility. The Tribe, in its sole | 0013| discretion, may require an employee of the | 0014| Gaming Facility or the Tribal Gaming Agency | 0015| to accompany the State Gaming Representative | 0016| at all times that the State Gaming | 0017| Representative is on the premises of a | 0018| Gaming Facility, but if the Tribe imposes | 0019| such a requirement, the Tribe shall require | 0020| such an employee of the Gaming Facility or | 0021| the Tribal Gaming Agency to be available at | 0022| all times for such purposes; | 0023| (c) with respect to inspection and copying of | 0024| all management records relating to Class III | 0025| Gaming, at any time without prior notice | 0001| between the hours of 9:00 a.m. and 4:00 p.m. | 0002| Monday through Friday, excluding official | 0003| holidays. The reasonable costs of copying | 0004| will be borne by the State; and | 0005| (d) whenever the State Gaming Representative, or | 0006| his designee, enters the premises of the | 0007| Gaming Facility for any such inspection, | 0008| such Representative, or designee, shall | 0009| identify himself to security or supervisory | 0010| personnel of the Gaming Facility. | 0011| 3. Gaming Enterprise and gaming operations | 0012| information shall be considered public | 0013| information and subject to the Inspection of | 0014| Public Records Act. Trade secrets and | 0015| proprietary information regarding the gaming | 0016| enterprise of the Tribe, Class III Gaming | 0017| conducted by the Tribe, or the operation thereof, | 0018| shall not be deemed public records as a matter of | 0019| state law, and shall not be disclosed to any | 0020| member of the public, without the prior written | 0021| approval of a duly authorized representative of | 0022| the Tribe. These prohibitions shall not be | 0023| construed to prohibit: | 0024| (a) the furnishing of any information to a law | 0025| enforcement or regulatory agency of the | 0001| Federal Government; | 0002| (b) the State from making known the names of | 0003| persons, firms, or corporations conducting | 0004| Class III Gaming pursuant to the terms of | 0005| this Compact, locations at which such | 0006| activities are conducted, or the dates on | 0007| which such activities are conducted; | 0008| (c) publishing the terms of this Compact; | 0009| (d) disclosing information as necessary to | 0010| audit, investigate, prosecute or arbitrate | 0011| violations of this Compact or other | 0012| applicable laws or to defend suits against | 0013| the State; and | 0014| (e) complying with subpoenas or court orders | 0015| issued by courts of competent jurisdiction. | 0016| 4. To the fullest extent allowed by State law, the | 0017| Tribe shall have the right to inspect State | 0018| records concerning all Class III Gaming conducted | 0019| by the Tribe; the Tribe shall have the right to | 0020| copy such State records, with the Tribe bearing | 0021| the reasonable cost of copying. | 0022| 5. For every year or part thereof in which the Tribe | 0023| is actually engaged in Class III Gaming | 0024| hereunder, the Tribe shall reimburse the State | 0025| for the costs the State incurs in carrying out | 0001| any functions authorized by the terms of this | 0002| Compact. All calculations of amounts due shall | 0003| be based upon the operations of the Gaming | 0004| Enterprise on the final day of operation of each | 0005| quarter of the calendar year. Payments due the | 0006| State shall be made no later than the twenty- | 0007| fifth day of the month following the end of a | 0008| quarter. The amount of the regulatory fee each | 0009| quarter shall be the sum of six thousand two | 0010| hundred fifty dollars ($6,250) per Gaming | 0011| Facility plus three hundred dollars ($300) per | 0012| gaming machine plus seven hundred fifty dollars | 0013| ($750) per gaming table or device other than a | 0014| Gaming Machine. These amounts shall increase by | 0015| five percent (5%) each year beginning on the | 0016| first day of January occurring after the Compact | 0017| has been in effect for at least twelve months. | 0018| 6. In the event the State believes that the Tribe is | 0019| not administering and enforcing the regulatory | 0020| requirements set forth herein, it may invoke the | 0021| procedures set forth in Section 7 of this | 0022| Compact. | 0023| F. The Tribe shall comply with all applicable provisions | 0024| of the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 | 0025| U.S.C. 5311-5314, and all reporting requirements of the | 0001| Internal Revenue Service. | 0002| SECTION 5. Licensing Requirements. | 0003| A. License Required. The Gaming Facility operator (but | 0004| not including the Tribe), including its principals, primary | 0005| management officials, and key employees, the Management | 0006| Contractor and its principals, primary management officials, and | 0007| key employees (if the Tribe hires a Management Contractor); any | 0008| person, corporation, or other entity that has supplied or | 0009| proposes to supply any gaming device to the Tribe or the | 0010| Management Contractor; and any person, corporation or other | 0011| entity providing gaming services within or without a Gaming | 0012| Facility, shall apply for and receive a license from the Tribal | 0013| Gaming Agency before participating in any way in the operation | 0014| or conduct of any Class III Gaming on Indian Lands. | 0015| B. License Application. Each applicant for a license | 0016| shall file with the Tribal Gaming Agency a written application | 0017| in the form prescribed by the Tribal Gaming Agency, along with | 0018| the applicant's fingerprint card, current photograph and the fee | 0019| required by the Tribal Gaming Agency. | 0020| 1. The following Notice ("Privacy Act Notice") shall | 0021| be placed on the application form for a | 0022| principal, key employee or a primary management | 0023| official before that form is filled out by an | 0024| applicant: | 0025| "In compliance with the Privacy | 0001| Act of 1974, the following | 0002| information is provided: | 0003| Solicitation of the information | 0004| on this form is authorized by | 0005| 25 U.S.C. 2701-2721. The | 0006| purpose of the requested | 0007| information is to determine the | 0008| eligibility of individuals to | 0009| be employed in a gaming | 0010| enterprise. The information | 0011| will be used by members and | 0012| staff of the Tribal Gaming | 0013| Agency and the National Indian | 0014| Gaming Commission who have need | 0015| for the information in the | 0016| performance of their official | 0017| duties. The information may be | 0018| disclosed to appropriate | 0019| federal, tribal, state, local | 0020| or foreign law enforcement and | 0021| regulatory agencies when | 0022| relevant to civil, criminal or | 0023| regulatory investigations or | 0024| prosecutions or when, pursuant | 0025| to a requirement by a Tribe, or | 0001| the National Indian Gaming | 0002| Commission, the information is | 0003| relevant to the hiring or | 0004| firing of an employee, the | 0005| issuance or revocation of a | 0006| gaming license or | 0007| investigations of activities | 0008| while associated with a Tribe | 0009| or a gaming enterprise. | 0010| Failure to consent to the | 0011| disclosures indicated in this | 0012| Notice will result in a Tribe | 0013| being unable to hire you in a | 0014| primary management official or | 0015| key employee position with a | 0016| tribal gaming enterprise. | 0017| The disclosure of your Social | 0018| Security Number (SSN) is | 0019| voluntary. However, failure to | 0020| supply an SSN may result in | 0021| errors in processing your | 0022| application.". | 0023| 2. Existing principals, key employees and primary | 0024| management officials shall be notified, in | 0025| writing, that they shall either: | 0001| (a) complete a new application form that | 0002| contains a Privacy Act Notice; or | 0003| (b) sign a statement that contains the Privacy | 0004| Act Notice and consent to the routine uses | 0005| described in that Notice. | 0006| 3. The following Notice ("False Statement Notice") | 0007| shall be placed on the application form for a | 0008| principal, key employee or a primary management | 0009| official before that form is filled out by an | 0010| applicant: | 0011| "A false statement on any part of your | 0012| application may be grounds for not hiring you | 0013| or for firing you after you begin work. Also, | 0014| you may be punished by fine or imprisonment. | 0015| See 18 U.S.C. 1001.". | 0016| 4. The Tribal Gaming Agency shall notify, in | 0017| writing, existing principals, key employees and | 0018| primary management officials that they shall | 0019| either: | 0020| (a) complete a new application form that | 0021| contains a False Statement Notice; or | 0022| (b) sign a statement that contains the False | 0023| Statement Notice. | 0024| 5. The Tribal Gaming Agency shall request from each | 0025| applicant, and from each principal, primary | 0001| management official and key employee of each | 0002| applicant, all of the following information: | 0003| (a) full name, other names used (oral or | 0004| written), Social Security Number(s), birth | 0005| date, place of birth, citizenship, gender | 0006| and all languages spoken or written; | 0007| (b) currently, and for the previous ten (10) | 0008| years, business and employment positions | 0009| held, ownership interests in those | 0010| businesses, business and residence addresses | 0011| and driver's license numbers; provided, that | 0012| any applicant who is a principal, primary | 0013| management official, key employee, | 0014| Management Contractor, manufacturer or | 0015| supplier of gaming devices, and/or a person | 0016| providing gaming services, must provide such | 0017| information currently, and from the age of | 0018| eighteen (18); | 0019| (c) the names and current addresses of at least | 0020| three (3) personal references, including one | 0021| (1) personal reference who was acquainted | 0022| with the applicant during each period of | 0023| residence listed in Paragraph B.5.(b) of | 0024| this section; | 0025| (d) current business and residence telephone | 0001| numbers; | 0002| (e) a description of any existing and previous | 0003| business relationships with a Tribe, | 0004| including ownership interests in those | 0005| businesses, and a description of any | 0006| potential or actual conflict of interests | 0007| between such businesses and a Tribe; | 0008| (f) a description of any existing and previous | 0009| business relationships in the gaming | 0010| industry, including, but not limited to, | 0011| ownership interests in those businesses; | 0012| (g) the name and address of any licensing or | 0013| regulatory agency with which the applicant | 0014| has filed an application for a license or | 0015| permit related to gaming, whether or not | 0016| such license or permit was granted; | 0017| (h) for each felony for which there is an | 0018| ongoing prosecution or a conviction, the | 0019| charge, the date of the charge, the name and | 0020| address of the court involved and the | 0021| disposition, if any; | 0022| (i) for each misdemeanor for which there is an | 0023| ongoing prosecution or conviction (excluding | 0024| minor traffic violations), the charge, the | 0025| date of the charge, the name and address of | 0001| the court involved and the disposition, if | 0002| any; | 0003| (j) for each criminal charge (excluding minor | 0004| traffic charges), whether or not there is a | 0005| conviction, if such criminal charge is not | 0006| otherwise listed pursuant to Paragraph | 0007| B.5.(h) or B.5.(i) of this section, the | 0008| criminal charge, the date of the charge, the | 0009| name and address of the court involved and | 0010| the disposition, if any; | 0011| (k) the name and address of any licensing or | 0012| regulatory agency with which the person has | 0013| filed an application for an occupational | 0014| license or permit, as an applicant, | 0015| principal, primary management official or | 0016| key employee, and whether or not such | 0017| license or permit was granted; | 0018| (l) a current photograph; | 0019| (m) fingerprints, which shall be taken by | 0020| officers of the tribal police department or | 0021| by another law enforcement agency and | 0022| forwarded directly to the tribal police | 0023| department. Pursuant to a Memorandum of | 0024| Understanding between the Tribe and the | 0025| National Indian Gaming Commission | 0001| ("Commission"), tribal police officers shall | 0002| forward the fingerprint cards directly to | 0003| the Commission; | 0004| (n) the fee required by the Tribal Gaming | 0005| Agency; and | 0006| (o) any other information the Tribal Gaming | 0007| Agency deems relevant. | 0008| C. Background Investigations. | 0009| 1. Upon receipt of a completed application and | 0010| required fee for licensing, the Tribal Gaming | 0011| Agency shall conduct or cause to be conducted a | 0012| background investigation to ensure that the | 0013| applicant is qualified for licensing. | 0014| 2. Background checks of applicants will be performed | 0015| pursuant to the following procedures: | 0016| (a) The Tribal Gaming Agency will provide | 0017| applications to potential applicants upon | 0018| request and shall collect and maintain the | 0019| applications. | 0020| (b) Pursuant to a Memorandum of Understanding | 0021| between the Tribe and the Commission, tribal | 0022| police officers will collect fingerprints | 0023| from all applicants and forward the | 0024| fingerprint cards directly to the | 0025| Commission. The Commission will obtain a | 0001| criminal history record from the Federal | 0002| Bureau of Investigation on each applicant | 0003| and forward such information to the Tribal | 0004| Gaming Agency. | 0005| (c) The Tribal Gaming Agency shall investigate | 0006| the information provided in the | 0007| applications. This investigation shall | 0008| include: | 0009| (1) contacting persons or entities identified | 0010| in the application and verifying by | 0011| written or oral communication that the | 0012| information contained in the application | 0013| is accurate; | 0014| (2) interviewing a sufficient number of | 0015| knowledgeable people, such as former | 0016| employers, partners, business associates, | 0017| and others referred to in the | 0018| application, to provide a basis for the | 0019| Tribal Gaming Agency to make a | 0020| determination concerning whether the | 0021| applicant meets applicable eligibility | 0022| requirements; | 0023| (3) reviewing relevant financial records of | 0024| the applicant for the three (3) years | 0025| preceding the application; and | 0001| (4) contacting any state, federal or other | 0002| government agency that is referred to in | 0003| the application. | 0004| (d) The Tribal Gaming Agency shall document any | 0005| information it obtains that calls into | 0006| question whether the applicant would meet the | 0007| eligibility requirements under the Ordinance. | 0008| The Tribal Gaming Agency shall then document | 0009| in detail the disposition of these problem | 0010| areas, indicating the follow-up investigations | 0011| performed on the problem areas and the result | 0012| of such investigations. | 0013| (e) The Tribal Gaming Agency will review the | 0014| results of the investigation. This review | 0015| will include a determination as to the scope | 0016| of the investigation and whether sufficient | 0017| information was obtained and verified. If | 0018| such information is found not sufficient, the | 0019| Tribal Gaming Agency will perform additional | 0020| investigations. | 0021| (f) Once the investigation is complete, the Tribal | 0022| Gaming Agency will decide whether the | 0023| applicant meets the eligibility criteria under | 0024| the Ordinance. | 0025| 3. In conducting a background investigation, the | 0001| Tribal Gaming Agency and its agents shall keep | 0002| confidential the identity of each person | 0003| interviewed in the course of the investigation. | 0004| 4. Within twenty (20) days of the receipt of a | 0005| completed application for licensing, and upon | 0006| request of an applicant, the Tribal Gaming Agency | 0007| may issue a temporary license to the applicant, | 0008| unless the background investigation undertaken | 0009| discloses that the applicant has a criminal | 0010| history, or unless other grounds sufficient to | 0011| disqualify the applicant are apparent on the face | 0012| of the application. The temporary license shall | 0013| become void and be of no effect upon either: | 0014| (a) the issuance of the license; | 0015| (b) the issuance of a notice of denial; or | 0016| (c) ninety (90) days after the temporary license | 0017| is issued, whichever occurs first. | 0018| 5. The Tribal Gaming Agency shall review a person's | 0019| prior activities, criminal record, if any, and | 0020| reputation, habits and associations to make a | 0021| finding concerning the eligibility or suitability | 0022| of an applicant, or a principal, key employee or | 0023| primary management official of an applicant, for | 0024| employment or involvement in a gaming enterprise. | 0025| After such consultation, the Tribal Gaming Agency | 0001| shall either issue a license or deny the | 0002| application. If the Tribal Gaming Agency | 0003| determines that employment or involvement of the | 0004| applicant poses a threat to the public interest or | 0005| to the effective regulation of Class III Gaming or | 0006| creates or enhances dangers of unsuitable, unfair | 0007| or illegal practices, methods or activities in the | 0008| conduct of Class III Gaming, the Tribal Gaming | 0009| Agency shall deny the application. | 0010| 6. The Tribal Gaming Agency shall retain the right to | 0011| conduct additional background investigations of any | 0012| person required to be licensed at any time while | 0013| the license is valid. | 0014| D. Procedure for Forwarding Applications and Reports. | 0015| Procedures for forwarding applications and investigative reports | 0016| to the Commission and State Gaming Representative: | 0017| 1. When a key employee or primary management official | 0018| begins work at a gaming enterprise authorized by | 0019| this Compact, the Tribal Gaming Agency shall | 0020| forward to the Commission and the State Gaming | 0021| Representative a completed application for | 0022| employment. | 0023| 2. The Tribal Gaming Agency shall forward the report | 0024| referred to in Paragraph D.4. of this section to | 0025| the Commission and the State Gaming Representative | 0001| within sixty (60) days after an employee begins | 0002| work, or within sixty (60) days of the approval of | 0003| this Compact by the Secretary of the Interior. | 0004| 3. A key employee or primary management official who | 0005| does not have a license shall not be employed after | 0006| ninety (90) days. | 0007| 4. The Tribal Gaming Agency shall prepare and forward | 0008| to the Commission and the State Gaming | 0009| Representative a report on each background | 0010| investigation ("Investigative Report"). An | 0011| Investigative Report shall include all of the | 0012| following: | 0013| (a) steps taken in conducting the background | 0014| investigation; | 0015| (b) results obtained; | 0016| (c) conclusions reached; and | 0017| (d) the basis for those conclusions. | 0018| 5. The Tribal Gaming Agency shall submit with the | 0019| Investigative Report a copy of the eligibility | 0020| determination made under Paragraph C.5. of this | 0021| section. | 0022| 6. If a license is not issued to an applicant, the | 0023| Tribal Gaming Agency shall notify the Commission | 0024| and the State Gaming Representative. | 0025| 7. With respect to principals, key employees and | 0001| primary management officials, the Tribal Gaming | 0002| Agency shall retain applications for employment and | 0003| Investigative Reports (if any) for no less than | 0004| three (3) years from the date of termination of | 0005| employment. | 0006| E. Granting a Gaming License. | 0007| 1. If within thirty (30) days after it receives an | 0008| Investigative Report, neither the Commission nor | 0009| the State Gaming Representative has notified the | 0010| Tribal Gaming Agency that it has an objection to | 0011| the issuance of a license pursuant to a license | 0012| application filed by a principal, key employee or | 0013| primary management official, the Tribal Gaming | 0014| Agency may issue a license to such applicant. | 0015| 2. The Tribal Gaming Agency shall respond to any | 0016| request for additional information from the | 0017| Commission or the State Gaming Representative | 0018| concerning a principal, key employee or primary | 0019| management official who is the subject of an | 0020| Investigative Report. Such a request shall suspend | 0021| the thirty-day (30-day) period under Paragraph E.1. | 0022| of this section until the Commission or the State | 0023| Gaming Representative receives the additional | 0024| information; however, in no event shall a request | 0025| for additional information by the State Gaming | 0001| Representative extend the thirty-day (30-day) | 0002| period under Paragraph E.1. of this section for a | 0003| total period of more than sixty (60) days from the | 0004| date the State Gaming Representative received the | 0005| Investigative Report. | 0006| 3. If, within the thirty-day (30-day) period described | 0007| above, the Commission or the State Gaming | 0008| Representative provides the Tribal Gaming Agency | 0009| with a statement itemizing objections to the | 0010| issuance of a license to a principal, key employee | 0011| or primary management official for whom the Tribal | 0012| Gaming Agency has provided an application and | 0013| Investigative Report, the Tribal Gaming Agency | 0014| shall reconsider the application, taking into | 0015| account the objections itemized by the Commission | 0016| and/or the State Gaming Representative, and make a | 0017| final decision whether to issue a license to such | 0018| applicant. | 0019| F. Management Contract. | 0020| 1. If the Tribe chooses to enter into a Management | 0021| Contract, the Tribal Gaming Agency shall require | 0022| that all principals, primary management officials | 0023| and key employees of the Management Contractor be | 0024| licensed. | 0025| 2. The Tribe may enter into a Management Contract only | 0001| if the Management Contract: | 0002| (a) provides that all Class III Gaming covered by | 0003| the Management Contract will be conducted in | 0004| accordance with the IGRA, the Ordinance and | 0005| this Compact; | 0006| (b) enumerates the responsibilities of each of the | 0007| parties for each identifiable function, | 0008| including: | 0009| (1) maintaining and improving the Gaming | 0010| Facility; | 0011| (2) providing operating capital; | 0012| (3) establishing operating days and hours; | 0013| (4) hiring, firing, training and promoting | 0014| employees; | 0015| (5) maintaining the gaming enterprise's books | 0016| and records; | 0017| (6) preparing the gaming enterprise's | 0018| financial statements and reports; | 0019| (7) paying for the services of the | 0020| independent auditor engaged pursuant to | 0021| 25 C.F.R. 571.12; | 0022| (8) hiring and supervising security | 0023| personnel; | 0024| (9) providing fire protection services; | 0025| (10) setting an advertising budget and placing | 0001| advertising; | 0002| (11) paying bills and expenses; | 0003| (12) establishing and administering employment | 0004| practices; | 0005| (13) obtaining and maintaining insurance | 0006| coverage, including coverage of public | 0007| liability and property loss or damage; | 0008| (14) complying with all applicable provisions | 0009| of the Internal Revenue Code of 1986, as | 0010| amended; | 0011| (15) paying the cost of public safety | 0012| services; and | 0013| (16) if applicable, supplying the Commission | 0014| with all information necessary for the | 0015| Commission to comply with the National | 0016| Environmental Policy Act of 1969; | 0017| (c) provides for the establishment and maintenance | 0018| of satisfactory accounting systems and | 0019| procedures that shall, at a minimum: | 0020| (1) include an adequate system of internal | 0021| controls; | 0022| (2) permit the preparation of financial | 0023| statements in accordance with generally | 0024| accepted accounting principles; | 0025| (3) be susceptible to audit; | 0001| (4) permit the calculation and payment of the | 0002| Management Contractor's fee; and | 0003| (5) provide for the allocation of operating | 0004| expenses or overhead expenses among the | 0005| Tribe, the Management Contractor and any | 0006| other user of a shared Gaming Facility | 0007| and services; | 0008| (d) requires the Management Contractor to provide | 0009| the Tribe, not less frequently than monthly, | 0010| verifiable financial reports or all | 0011| information necessary to prepare such reports; | 0012| (e) requires the Management Contractor to provide | 0013| immediate access to the Gaming Facility, | 0014| including its books and records, by | 0015| appropriate officials of the Tribe, who shall | 0016| have: | 0017| (1) the right to verify the daily gross | 0018| revenues and income from the gaming | 0019| enterprise; and | 0020| (2) access to any other gaming-related | 0021| information the Tribe deems appropriate; | 0022| (f) provides for a minimum guaranteed monthly | 0023| payment to the Tribe in a sum certain that has | 0024| preference over the retirement of development | 0025| and construction costs; | 0001| (g) provides an agreed upon maximum dollar amount | 0002| for the recoupment of development and | 0003| construction costs; | 0004| (h) provides for a term not to exceed the period | 0005| allowed by the IGRA; | 0006| (i) details the method of compensating and | 0007| reimbursing the Management Contractor. If a | 0008| Management Contract provides for a percentage | 0009| fee, such fee shall be either: | 0010| (1) not more than thirty percent (30%) of the | 0011| net revenues of the gaming enterprise if | 0012| the Chairman of the Commission determines | 0013| that such percentage is reasonable | 0014| considering the circumstances; or | 0015| (2) not more than forty percent (40%) of the | 0016| net revenues if the Chairman of the | 0017| Commission is satisfied that the capital | 0018| investment required and income | 0019| projections for the gaming enterprise | 0020| require the additional fee; | 0021| (j) provides the grounds and mechanisms for | 0022| modifying or terminating the Management | 0023| Contract; | 0024| (k) contains a mechanism to resolve disputes | 0025| between: | 0001| (1) the Management Contractor and customers, | 0002| consistent with the procedures in the | 0003| Ordinance; | 0004| (2) the Management Contractor and the Tribe; | 0005| and | 0006| (3) the Management Contractor and the gaming | 0007| enterprise employees; | 0008| (l) indicates whether and to what extent contract | 0009| assignments and subcontracting are | 0010| permissible; | 0011| (m) indicates whether and to what extent changes | 0012| in the ownership interest in the Management | 0013| Contract require advance approval by the | 0014| Tribe; and | 0015| (n) states that the Management Contract shall not | 0016| be effective unless and until it is approved | 0017| by the Chairman of the Commission, date of | 0018| signature of the parties notwithstanding. | 0019| 3. The Tribe shall not enter into any Management | 0020| Contract if the Tribal Gaming Agency determines | 0021| that the Management Contractor or any principal, | 0022| primary management official or key employee of the | 0023| Management Contractor is not licensed or is | 0024| ineligible to be licensed. | 0025| G. Confidentiality of Records. Any and all background | 0001| Investigative Reports on employees or contractors, supporting | 0002| documents acquired or generated in connection therewith, and any | 0003| other Investigative Reports or documents acquired or generated | 0004| in the course of investigations performed by the Tribe or the | 0005| Tribal Gaming Agency, that are provided to the State Gaming | 0006| Representative or any other agency or official of the State by | 0007| the Tribal Gaming Agency or the Tribe pursuant to the provisions | 0008| of this Compact, shall not be deemed public records of the State | 0009| and shall not be disclosed to any member of the public without | 0010| the prior express written authorization of an authorized | 0011| representative of the Tribe; provided, that nothing herein shall | 0012| preclude any State agency or official from providing information | 0013| to a federal agency or official having responsibility relative | 0014| to Indian Gaming or from compliance with any valid order of a | 0015| court having jurisdiction. | 0016| SECTION 6. Providers of Class III Gaming Equipment or Devices | 0017| or Supplies. | 0018| A. Within thirty (30) days after the effective date of | 0019| this Compact, if it has not already done so, the Tribal Gaming | 0020| Agency will adopt standards for any and all Class III Gaming | 0021| equipment, devices or supplies to be purchased, leased or | 0022| otherwise acquired by the Tribe after the effective date of this | 0023| Compact for use in any Gaming Facility, which standards shall be | 0024| at least as strict as the comparable standards applicable to | 0025| Class III Gaming equipment, devices or supplies within the State | 0001| of Nevada. Any and all Class III Gaming equipment, devices or | 0002| supplies acquired by the Tribe after the date of this Compact | 0003| shall meet or exceed the standards thereby adopted, and any and | 0004| all Class III Gaming equipment, devices or supplies used by the | 0005| Tribe in its Gaming Facilities as of the effective date of this | 0006| Compact shall be upgraded or replaced, if necessary, so as to | 0007| comply with such standards, by no later than one (1) year after | 0008| the effective date of this Compact. | 0009| B. Prior to entering into any future lease or purchase | 0010| agreement for Class III Gaming equipment, devices or supplies, | 0011| the Tribe shall obtain sufficient information and identification | 0012| from the proposed seller or lessor and all persons holding any | 0013| direct or indirect financial interest in the lessor or the | 0014| lease/purchase agreement to permit the Tribe to license those | 0015| persons in accordance with Section 5, hereof. | 0016| C. The seller, lessor, manufacturer or distributor shall | 0017| provide, assemble and install all Class III Gaming equipment, | 0018| devices or supplies in a manner approved and licensed by the | 0019| Tribe. | 0020| SECTION 7. Dispute Resolution. | 0021| A. In the event either party believes that the other | 0022| party has failed to comply with or has otherwise breached any | 0023| provision of this Compact, such party may invoke the following | 0024| procedure: | 0025| 1. The party asserting noncompliance shall serve | 0001| written notice on the other party. The notice | 0002| shall identify the specific Compact provision | 0003| believed to have been violated and shall specify | 0004| the factual and legal basis for the alleged | 0005| noncompliance. The notice shall specifically | 0006| identify the date, time and nature of the alleged | 0007| noncompliance. Representatives of the State and | 0008| Tribe shall thereafter meet within thirty (30) days | 0009| in an effort to resolve the dispute. | 0010| 2. In the event an allegation by the complaining party | 0011| is not resolved to the satisfaction of such party | 0012| within ninety (90) days after service of the notice | 0013| set forth in Paragraph A.1. of this section, the | 0014| complaining party may serve upon the other party a | 0015| notice to cease conduct of the particular game(s) | 0016| or activities alleged by the complaining party to | 0017| be in noncompliance. Upon receipt of such notice, | 0018| the responding party may elect to stop the game(s) | 0019| or activities specified in the notice or invoke | 0020| arbitration and continue the game(s) or activities | 0021| pending the results of arbitration. The responding | 0022| party shall act upon one of the foregoing options | 0023| within thirty (30) days of receipt of notice from | 0024| the complaining party. | 0025| 3. Arbitration under this authority shall be conducted | 0001| under the Commercial Arbitration Rules of the | 0002| American Arbitration Association, except that the | 0003| arbitrators shall be attorneys who are licensed | 0004| members in good standing of the State Bar of New | 0005| Mexico or of the bar of another state. The State | 0006| will select one arbitrator, the Tribe a second | 0007| arbitrator, and the two so chosen shall select a | 0008| third arbitrator. If the third arbitrator is not | 0009| chosen in this manner within ten (10) days after | 0010| the second arbitrator is selected, the third | 0011| arbitrator will be chosen in accordance with the | 0012| rules of the American Arbitration Association. | 0013| 4. All parties shall bear their own costs of | 0014| arbitration and attorney fees. | 0015| 5. The results of arbitration shall be enforceable by | 0016| an action for injunctive or mandatory injunctive | 0017| relief against the State and the Tribe in any court | 0018| of competent jurisdiction. For purposes of any | 0019| such action, the State and the Tribe acknowledge | 0020| that any action or failure to act on the part of | 0021| any agent or employee of the State or the Tribe, | 0022| contrary to a decision of the arbitrators in an | 0023| arbitration proceeding conducted under the | 0024| provisions of this section, occurring after such | 0025| decision, shall be wholly unauthorized and ultra | 0001| vires acts, not protected by the sovereign immunity | 0002| of the State or the Tribe. | 0003| B. Nothing in Subsection 7A. shall be construed to waive, | 0004| limit or restrict any remedy that is otherwise available to | 0005| either party to enforce or resolve disputes concerning the | 0006| provisions of this Compact. Nothing in this Compact shall be | 0007| deemed a waiver of the Tribe's sovereign immunity. Nothing in | 0008| this Compact shall be deemed a waiver of the State's sovereign | 0009| immunity. | 0010| SECTION 8. Protection of Patrons. | 0011| A. Liability to Patrons. To ensure the personal safety | 0012| and protection of patrons and other invitees of a Tribe's Gaming | 0013| Facility operated under the provisions of this Compact, the | 0014| Tribe shall at all times maintain in effect a policy of public | 0015| liability insurance, insuring the Tribe, its agents and | 0016| employees against any claims, demands or liability that may | 0017| arise as a result of personal injury to any person (other than | 0018| an employee of the gaming establishment) occurring anywhere on | 0019| the premises of any gaming establishment operated by the Tribe | 0020| under the provisions of this Compact, or as a result of any act | 0021| or omission of any agent or employee of such gaming | 0022| establishment while in the course of his or her employment, | 0023| which policy shall provide personal injury coverage of no less | 0024| than one million dollars ($1,000,000) per injured person and ten | 0025| million dollars ($10,000,000) aggregate per policy year. | 0001| The Tribe agrees that it will require that the insurance | 0002| contract provide that in the event of any claim made against it | 0003| or its gaming enterprise, or any agent or employee thereof, | 0004| arising out of any personal injury as described above, neither | 0005| the Tribe nor its insurer will assert any defense of immunity | 0006| from suit as to such claim for compensatory damages up to the | 0007| amount of one million dollars ($1,000,000) per injured person, | 0008| in any claim pursued as provided in this subsection; provided, | 0009| however, that this agreement not to assert such defense shall be | 0010| strictly limited as provided herein, and shall not apply to any | 0011| claim for punitive damages, or to any claim for any loss or | 0012| damage other than that arising from actual bodily injury or | 0013| death, or to any claim for damages in excess of the amount set | 0014| forth herein. Nothing herein shall be construed as stating or | 0015| implying that the Tribe has waived or agreed not to assert its | 0016| immunity from suit for any other purpose or in any other | 0017| circumstance other than the limited purposes and circumstances | 0018| expressly set forth herein, and nothing herein shall be | 0019| construed as an admission of liability as to any claim for | 0020| damages or as an agreement or indication of willingness to pay | 0021| any amount as damages absent a determination of fault, and the | 0022| Tribe or its insurer, or both, shall in every instance have the | 0023| right to defend any such claim fully on the merits. | 0024| Any person wishing to prosecute a claim for personal | 0025| injury against the Gaming Enterprise as provided in this | 0001| subsection, and who is unable to arrive at a satisfactory | 0002| settlement of such claim, may proceed, by no later than three | 0003| (3) years after the date of the incident giving rise to the | 0004| claim, either by filing suit in the tribal court of the Tribe, | 0005| or by demanding binding arbitration as provided herein. The | 0006| Tribe agrees that it will provide a tribal court that is | 0007| competent to hear such claims, and that it will permit its | 0008| Gaming Enterprise, and the employees thereof, to be sued in such | 0009| courts on such claims, subject to the conditions set forth in | 0010| this subsection. A claimant who wishes to proceed by binding | 0011| arbitration shall submit a written demand therefor to the Gaming | 0012| Enterprise, by certified mail, return receipt requested. The | 0013| claimant and the Gaming Enterprise shall each designate an | 0014| arbitrator within thirty (30) days of the date of receipt of | 0015| such demand, and the two arbitrators shall select a third | 0016| arbitrator. The arbitration panel shall permit the parties to | 0017| engage in reasonable discovery, and shall establish other | 0018| procedures so as to assure a full, fair and expeditious hearing | 0019| on the claim. The award of the arbitration panel shall be final | 0020| and binding (except that any such award of damages to the | 0021| claimant shall in no event exceed the limits of liability set | 0022| forth in this subsection). The Tribe's insurer shall be subject | 0023| to suit in any court of competent jurisdiction for enforcement | 0024| of the arbitration award. | 0025| The Tribe shall provide to the State Gaming Representative | 0001| annually a certificate of insurance showing that its gaming | 0002| enterprise and its agents and employees engaged therein are | 0003| insured to the extent and in the circumstances required by this | 0004| section. If the State Gaming Representative so requests in | 0005| writing, the certificate of insurance may be furnished directly | 0006| to the State Gaming Representative from the insurance carrier or | 0007| the insuring agency for the insured Tribe. | 0008| The Tribe's failure to comply with any awards by an | 0009| arbitration panel or judgment of a tribal court in any action | 0010| brought under the provisions of this section shall be deemed a | 0011| violation of the Compact and may be enforced by the State under | 0012| the provisions of Section 7. | 0013| B. Public Health and Safety. The Tribe shall establish | 0014| for its Gaming Facility health, safety and construction | 0015| standards that are at least as stringent as the current editions | 0016| of the National Electrical Code, the Uniform Building Code, the | 0017| Uniform Mechanical Code, the Uniform Fire Code and the Uniform | 0018| Plumbing Code, and any and all Gaming Facilities or additions | 0019| thereto constructed by the Tribe hereafter shall be constructed | 0020| and all facilities shall be maintained so as to comply with such | 0021| standards. Inspections will be conducted with respect to these | 0022| standards at least annually. If the State Gaming Representative | 0023| requests sufficiently in advance of an annual inspection, the | 0024| State Gaming Representative may be present during such | 0025| inspection. The Tribe agrees to correct any deficiencies noted | 0001| in such inspections within a time agreed upon between the State | 0002| and Tribe. The Tribal Gaming Agency will provide copies of such | 0003| inspection reports to the State Gaming Representative, if | 0004| requested to do so in writing. | 0005| SECTION 9. Effective Date. This Compact shall be effective | 0006| immediately upon the occurrence of the last of the following: | 0007| A. execution by the Tribe's Governor after approval of | 0008| the Tribal Council; | 0009| B. execution by the Governor of the State; | 0010| C. approval by the Secretary of the Interior; and | 0011| D. publication in the Federal Register. | 0012| The Governor is authorized to execute compacts with an | 0013| individual Tribe that has also entered into revenue-sharing | 0014| agreements and has passed resolutions described herein, in | 0015| substantially the same form as set forth herein. Upon signature | 0016| by the Governor and the Tribe, the Compact shall be transmitted | 0017| to the Secretary of the Interior for approval. | 0018| SECTION 10. Criminal Jurisdiction. | 0019| A. The Tribe and the State acknowledge that under the | 0020| provisions of 23 of the IGRA, especially that portion codified | 0021| at 18 U.S.C. 1166(d), jurisdiction to prosecute violations of | 0022| State gambling laws made applicable by that section to Indian | 0023| country is vested exclusively within the United States, unless | 0024| the Tribe and the State agree in a compact entered into the IGRA | 0025| to transfer such jurisdiction to the State. | 0001| B. The Tribe and the State hereby agree that, in the | 0002| event of any violation of any State gambling law on Indian Lands | 0003| or any other crime against the Gaming Enterprise or any employee | 0004| thereof or that occurs on the premises of the Tribal Gaming | 0005| Facility, that is committed by any person who is not a member of | 0006| the Tribe, the State shall have and may exercise jurisdiction, | 0007| concurrent with that of the United States, to prosecute such | 0008| person, under its laws and in its courts. | 0009| C. Immediately upon becoming aware of any such suspected | 0010| crime by a nonmember of the Tribe, the Gaming Enterprise or the | 0011| Tribal Gaming Agency shall notify the state attorney general and | 0012| the district attorney for the district in which the Gaming | 0013| Facility is located, supplying all particulars available to the | 0014| tribal entity at the time. The Tribe agrees that its law | 0015| enforcement and gaming agencies shall perform such additional | 0016| investigation or take such other steps in furtherance of the | 0017| investigation and prosecution of the violation as the district | 0018| attorney may reasonably request, and otherwise cooperate fully | 0019| with the district attorney and any state law enforcement | 0020| agencies with respect to the matter, but once notice of a | 0021| suspected violation has been given to the district attorney, the | 0022| matter shall be deemed to be under the jurisdiction of the State | 0023| (except that in the event of emergency circumstances involving a | 0024| possible violation, the Tribe and its constituent agencies shall | 0025| have the discretion to act as they see fit, and to call upon | 0001| such other agencies or entities as they deem reasonable or | 0002| necessary, in order to protect against any immediate threat to | 0003| lives or property). The State may, in its discretion, refer the | 0004| matter to federal authorities, but it shall notify the Tribal | 0005| Gaming Agency upon doing so. | 0006| D. The State agrees that no less frequently than annually | 0007| it will provide the Tribal Gaming Agency with a written report | 0008| of the status and disposition of each matter referred to it | 0009| under the provisions of this section that is still pending. In | 0010| the event the district attorney to whom a matter is referred | 0011| under the provisions of this section decides not to prosecute | 0012| such matter, the district attorney shall promptly notify the | 0013| Tribal Gaming Agency of such decision in writing. The Tribal | 0014| Gaming Agency may in that event ask the attorney general of the | 0015| state to pursue the matter. | 0016| E. The district attorney for the district in which the | 0017| Gaming Facility is situated may decline to accept referrals of | 0018| cases under the provisions of this section unless and until the | 0019| Tribe has entered into a Memorandum of Understanding with the | 0020| office of the district attorney to which Memorandum of | 0021| Understanding the United States Attorney for the District of New | 0022| Mexico may also be a party addressing such matters as the | 0023| specific procedures by which cases are to be referred, | 0024| participation of the Tribal Gaming Agency and tribal law | 0025| enforcement personnel in the investigation and prosecution of | 0001| any such case, payments by the Tribe to the office of the | 0002| district attorney to defray the costs of handling cases referred | 0003| under the provisions of this section, and related matters. | 0004| SECTION 11. Binding Effect and Duration. | 0005| A. This Compact shall be binding upon the State and Tribe | 0006| for a term of ten (10) years from the date it becomes effective | 0007| and may renew for an additional period. | 0008| B. Before the date that is one (1) year prior to the | 0009| expiration of the ten-year (10-year) initial term, and/or before | 0010| the date that is one (1) year prior to the expiration of the | 0011| renewal period, either party may serve written notice on the | 0012| other of its desire to renegotiate this Compact. | 0013| C. In the event that either party gives written notice to | 0014| the other of its desire to renegotiate this Compact pursuant to | 0015| Subsection B. of this section, the Tribe may, pursuant to the | 0016| procedures of the IGRA, request the State to enter into | 0017| negotiations for a new compact governing the conduct of Class | 0018| III Gaming. If the parties are unable to conclude a successor | 0019| compact, this Compact shall terminate. | 0020| D. Notwithstanding the foregoing, at any time while this | 0021| Compact remains in effect, either party may, by written notice | 0022| to the other party, request reopening of negotiations with | 0023| respect to any provision of this Compact, or with respect to any | 0024| issue not addressed in the Compact, specifying such provision or | 0025| issue in such notice. No such request shall be unreasonably | 0001| refused, but neither party shall be required to agree to any | 0002| change in the Compact, and no agreement to supplement or amend | 0003| this Compact in any respect shall have any validity until the | 0004| same shall have been approved in writing by the Tribe, the State | 0005| and the Secretary of the Interior and notice of such approval | 0006| published in the Federal Register. | 0007| E. The Tribe may operate Class III Gaming only while this | 0008| Compact or any renegotiated compact is in effect. | 0009| SECTION 12. Notice to Parties. | 0010| Unless otherwise indicated, all notices, payments, | 0011| requests, reports, information or demand that any party hereto | 0012| may desire or may be required to give to the other party hereto, | 0013| shall be in writing and shall be personally delivered or sent by | 0014| first-class mail sent to the other party at the address provided | 0015| in writing by the other party. Every notice, payment, request, | 0016| report, information or demand so given shall be deemed effective | 0017| upon receipt or, if mailed, upon receipt or the expiration of | 0018| the third day following the day of mailing, whichever occurs | 0019| first, except that any notice of change of address shall be | 0020| effective only upon receipt by the party to whom said notice is | 0021| addressed. | 0022| SECTION 13. Entire Agreement. | 0023| This Compact is the entire agreement between the parties | 0024| and supersedes all prior agreements, whether written or oral, | 0025| with respect to the subject matter hereof. Neither this Compact | 0001| nor any provision herein may be changed, waived, discharged or | 0002| terminated orally, but only by an instrument, in writing, signed | 0003| by the Tribe and the State and approved by the Secretary of the | 0004| Interior. This Compact shall not be amended without the express | 0005| approval of the Tribe, the Governor of the State and the State | 0006| Legislature. | 0007| SECTION 14. Filing of Compact with State Records Center. | 0008| Upon the effective date of this Compact, a copy shall be | 0009| filed by the Governor with the New Mexico Records Center. Any | 0010| subsequent amendment or modification of this Compact shall be | 0011| filed with the New Mexico Records Center. | 0012| SECTION 15. Counterparts. | 0013| This Compact may be executed by the parties in any number | 0014| of separate counterparts with the same effect as if the | 0015| signatures were upon the same instrument. All such counterparts | 0016| shall together constitute one and the same document." | 0017| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL | 0018| GAMING REVENUE.--The governor is authorized to execute a | 0019| revenue-sharing agreement in the form substantially set forth in | 0020| this section with any New Mexico Indian nation, tribe or pueblo | 0021| that has also entered into an Indian gaming compact as provided | 0022| by law. Execution of an Indian gaming compact is conditioned | 0023| upon execution of a revenue-sharing agreement. The | 0024| consideration for the Indian entity entering into the revenue- | 0025| sharing agreement is the condition of the agreement providing | 0001| limited exclusivity of gaming activities to the tribal entity. | 0002| The revenue-sharing agreement shall be in substantially the | 0003| following form and is effective when executed by the governor on | 0004| behalf of the state and the appropriate official of the Indian | 0005| entity: | 0006| "REVENUE-SHARING AGREEMENT | 0007| 1. Summary and consideration. The Tribe shall agree to | 0008| contribute a portion of its Class III Gaming revenues identified | 0009| in and under procedures of this Revenue-Sharing Agreement, in | 0010| return for which the State agrees that the Tribe: | 0011| A. has the exclusive right within the State to | 0012| provide all types of Class III Gaming described in the Indian | 0013| Gaming Compact, with the sole exception of the use of Gaming | 0014| Machines, which the State may permit on a limited basis for | 0015| racetracks and veterans' and fraternal organizations; and | 0016| B. will only share that part of its revenue arising | 0017| from the use of Gaming Machines and all other gaming revenue is | 0018| exclusively the Tribe's. | 0019| 2. Revenue to State. The parties agree that, after the | 0020| effective date hereof, the Tribe shall make the quarterly | 0021| payments provided for in Section 3 of the Revenue Sharing | 0022| Agreement to the state treasurer for deposit into the General | 0023| Fund of the State ("State General Fund"). | 0024| 3. Calculation of Revenue to State. | 0025| A. As used in this Revenue-Sharing Agreement, "net | 0001| win" means the annual total amount wagered at a Gaming Facility | 0002| on Gaming Machines less the following amounts: | 0003| (1) the annual amount paid out in prizes from | 0004| gaming on Gaming Machines; | 0005| (2) the actual amount of regulatory fees paid to | 0006| the state; and | 0007| (3) the sum of two hundred fifty thousand dollars | 0008| ($250,000) per year as an amount representing tribal regulatory | 0009| fees, with these amounts increasing by five percent (5%) each | 0010| year beginning on the first day of January occurring after the | 0011| Compact has been in effect for at least twelve months. | 0012| B. The Tribe shall pay the state sixteen percent | 0013| (16%) of the net win. | 0014| C. For purposes of these payments, all calculations | 0015| of amounts due shall be based upon the quarterly activity of the | 0016| gaming facility. Quarterly payments due to the State pursuant | 0017| to these terms shall be paid no later than twenty-five (25) days | 0018| after the last day of each calendar quarter. Any payments due | 0019| and owing from the Tribe in the quarter the Compact is approved, | 0020| or the final quarter the Compact is in force, shall reflect the | 0021| net win, but only for the portion of the quarter the Compact is | 0022| in effect. | 0023| 4. Limitations. The Tribe's obligation to make the | 0024| payments provided for in Paragraphs 2 and 3 of this section | 0025| shall apply and continue only so long as there is a binding | 0001| Indian Gaming Compact in effect between the Tribe and the State, | 0002| which Compact provides for the play of Class III Gaming, but | 0003| shall terminate in the event of any of the following conditions: | 0004| A. If the State passes, amends, or repeals any law, | 0005| or takes any other action, which would directly or indirectly | 0006| attempt to restrict, or has the effect of restricting, the scope | 0007| of Indian gaming. | 0008| B. If the State permits any expansion of nontribal | 0009| Class III Gaming in the State. Notwithstanding this general | 0010| prohibition against permitted expansion of gaming activities, | 0011| the State may permit: (1) the enactment of a State lottery, (2) | 0012| any fraternal, veterans or other nonprofit membership | 0013| organization to operate such electronic gaming devices lawfully, | 0014| but only for the benefit of such organization's members, (3) | 0015| limited fundraising activities conducted by nonprofit tax exempt | 0016| organizations pursuant to Section 30-19-6 NMSA 1978, and (4) any | 0017| horse racetracks to operate electronic gaming devices on days on | 0018| which live or simulcast horse racing occurs. | 0019| 5. Effect of Variance. In the event the acts or | 0020| omissions of the State cause the Tribe's obligation to make | 0021| payments under Paragraph 3 of this section to terminate under | 0022| the provisions of Paragraph 4 of this section, such cessation of | 0023| obligation to pay will not adversely affect the validity of the | 0024| Compact, but the amount that the Tribe agrees to reimburse the | 0025| State for regulatory fees under the Compact shall automatically | 0001| increase by twenty percent (20%). | 0002| 6. Third-Party Beneficiaries. This Agreement is not | 0003| intended to create any third-party beneficiaries and is entered | 0004| into solely for the benefit of the Tribe and the State." | 0005| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 | 0006| through 62 of this act may be cited as the "Gaming Control Act". | 0007| Section 4. [NEW MATERIAL] POLICY.--It is the state's | 0008| policy on gaming that: | 0009| A. limited gaming activities should be allowed in | 0010| the state if those activities are strictly regulated to ensure | 0011| honest and competitive gaming that is free from criminal and | 0012| corruptive elements and influences; and | 0013| B. the holder of any license issued by the state in | 0014| connection with the regulation of gaming activities has a | 0015| revocable privilege only and has no property right or vested | 0016| interest in the license. | 0017| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0018| Gaming Control Act: | 0019| A. "affiliate" means a person who, directly or | 0020| indirectly through one or more intermediaries, controls, is | 0021| controlled by or is under common control with a specified | 0022| person; | 0023| B. "affiliated company" means a company that: | 0024| (1) controls, is controlled by or is under | 0025| common control with a company licensee; and | 0001| (2) is involved in gaming activities or | 0002| involved in the ownership of property on which gaming is | 0003| conducted; | 0004| C. "applicant" means a person who has applied for a | 0005| license or for approval of an act or transaction for which | 0006| approval is required or allowed pursuant to the provisions of | 0007| the Gaming Control Act; | 0008| D. "application" means a request for the issuance of | 0009| a license or for approval of an act or transaction for which | 0010| approval is required or allowed pursuant to the provisions of | 0011| the Gaming Control Act, but "application" does not include a | 0012| supplemental form or information that may be required with the | 0013| application; | 0014| E. "associated equipment" means equipment or a | 0015| mechanical, electromechanical or electronic contrivance, | 0016| component or machine used in connection with gaming; | 0017| F. "board" means the gaming control board; | 0018| G. "certification" means a notice of approval by the | 0019| board of a person required to be certified by the board; | 0020| H. "certified technician" means a person certified | 0021| by a manufacturer licensee to repair and service gaming devices, | 0022| but who is prohibited from programming gaming devices; | 0023| I. "company" means a corporation, partnership, | 0024| limited partnership, trust, association, joint stock company, | 0025| joint venture, limited liability company or other form of | 0001| business organization that is not a natural person; | 0002| J. "distributor" means a person who supplies gaming | 0003| devices to a gaming operator but does not manufacture gaming | 0004| devices; | 0005| K. "equity security" means an interest in a company | 0006| that is evidenced by: | 0007| (1) voting stock or similar security; | 0008| (2) a security convertible into voting stock or | 0009| similar security, with or without consideration, or a security | 0010| carrying a warrant or right to subscribe to or purchase voting | 0011| stock or similar security; | 0012| (3) a warrant or right to subscribe to or | 0013| purchase voting stock or similar security; or | 0014| (4) a security having a direct or indirect | 0015| participation in the profits of the issuer; | 0016| L. "executive director" means the chief | 0017| administrative officer appointed by the board pursuant to | 0018| Section 9 of the Gaming Control Act; | 0019| M. "finding of suitability" means a certification of | 0020| approval issued by the board permitting a person to be involved | 0021| directly or indirectly with a licensee, relating only to the | 0022| specified involvement for which it is made; | 0023| N. "game" means an activity in which, upon payment | 0024| of consideration, a player receives a prize or other thing of | 0025| value, the award of which is determined by chance even though | 0001| accompanied by some skill; "game" does not include an activity | 0002| played in a private residence in which no person makes money for | 0003| operating the activity except through winnings as a player; | 0004| O. "gaming" means offering a game for play; | 0005| P. "gaming activity" means any endeavor associated | 0006| with the manufacture or distribution of gaming devices or the | 0007| conduct of gaming; | 0008| Q. "gaming device" means associated equipment or a | 0009| gaming machine and includes a system for processing information | 0010| that can alter the normal criteria of random selection that | 0011| affects the operation of a game or determines the outcome of a | 0012| game; "gaming device" does not include a system or device that | 0013| affects a game solely by stopping its operation so that the | 0014| outcome remains undetermined; | 0015| R. "gaming employee" means a person connected | 0016| directly with a gaming activity; "gaming employee" does not | 0017| include: | 0018| (1) bartenders, cocktail servers or other | 0019| persons engaged solely in preparing or serving food or | 0020| beverages; | 0021| (2) secretarial or janitorial personnel; | 0022| (3) stage, sound and light technicians; or | 0023| (4) other nongaming personnel; | 0024| S. "gaming establishment" means the premises on or | 0025| in which gaming is conducted; | 0001| T. "gaming machine" means a mechanical, | 0002| electromechanical or electronic contrivance or machine that, | 0003| upon insertion of a coin, token or similar object, or upon | 0004| payment of any consideration, is available to play or operate a | 0005| game, whether the payoff is made automatically from the machine | 0006| or in any other manner; | 0007| U. "gaming operator" means a person who conducts | 0008| gaming; | 0009| V. "holding company" means a company that directly | 0010| or indirectly owns or has the power or right to control a | 0011| company that is an applicant or licensee, but a company that | 0012| does not have a beneficial ownership of more than ten percent of | 0013| the equity securities of a publicly traded corporation is not a | 0014| holding company; | 0015| W. "immediate family" means natural persons who are | 0016| related to a specified natural person by affinity or | 0017| consanguinity in the first through the third degree; | 0018| X. "independent administrator" means a person who | 0019| administers an annuity, who is not associated in any manner with | 0020| the gaming operator licensee for which the annuity was purchased | 0021| and is in no way associated with the person who will be | 0022| receiving the annuity; | 0023| Y. "institutional investor" means a state or federal | 0024| government pension plan or a person that meets the requirements | 0025| of a qualified institutional buyer as defined in Rule 144A of | 0001| the federal Securities Act of 1933, and is: | 0002| (1) a bank as defined in Section 3(a)(6) of the | 0003| federal Securities Exchange Act of 1934; | 0004| (2) an insurance company as defined in Section | 0005| 2(a)(17) of the federal Investment Company Act of 1940; | 0006| (3) an investment company registered under | 0007| Section 8 of the federal Investment Company Act of 1940; | 0008| (4) an investment adviser registered under | 0009| Section 203 of the federal Investment Advisers Act of 1940; | 0010| (5) collective trust funds as defined in | 0011| Section 3(c)(11) of the federal Investment Company Act of 1940; | 0012| (6) an employee benefit plan or pension fund | 0013| that is subject to the federal Employee Retirement Income | 0014| Security Act of 1974, excluding an employee benefit plan or | 0015| pension fund sponsored by a publicly traded corporation | 0016| registered with the board; or | 0017| (7) a group comprised entirely of persons | 0018| specified in Paragraphs (1) through (6) of this subsection; | 0019| Z. "intermediary company" means a company that: | 0020| (1) is a holding company with respect to a | 0021| company that is an applicant or licensee; and | 0022| (2) is a subsidiary with respect to any holding | 0023| company; | 0024| AA. "key executive" means an executive of a licensee | 0025| or other person having the power to exercise significant | 0001| influence over decisions concerning any part of the licensed | 0002| operations of the licensee or whose compensation exceeds an | 0003| amount established by the board in a regulation; | 0004| BB. "license" means an authorization required by the | 0005| board for engaging in gaming activities; | 0006| CC. "licensee" means a person to whom a valid | 0007| license has been issued; | 0008| DD. "manufacturer" means a person who manufactures, | 0009| fabricates, assembles, produces, programs or makes modifications | 0010| to any gaming device for use or play in New Mexico or for sale, | 0011| lease or distribution outside New Mexico from any location | 0012| within New Mexico; | 0013| EE. "net take" means the total of the following, | 0014| less the total of all cash paid out as losses to winning patrons | 0015| and those amounts paid to purchase annuities to fund losses paid | 0016| to winning patrons over several years by independent | 0017| administrators: | 0018| (1) cash received from patrons for playing a | 0019| game; | 0020| (2) cash received in payment for credit | 0021| extended by a licensee to a patron for playing a game; and | 0022| (3) compensation received for conducting a game | 0023| in which the licensee is not a party to a wager; | 0024| FF. "nonprofit organization" means: | 0025| (1) a bona fide chartered or incorporated | 0001| branch, lodge, order or association, in existence in New Mexico | 0002| prior to January 1, 1997, of a fraternal organization that is | 0003| described in Section 501(c)(8) or (10) of the federal Internal | 0004| Revenue Code of 1986 and that is exempt from federal income | 0005| taxation pursuant to Section 501(a) of that code; or | 0006| (2) a bona fide chartered or incorporated post, | 0007| auxiliary unit or society of, or a trust or foundation for the | 0008| post or auxiliary unit, in existence in New Mexico prior to | 0009| January 1, 1997, of a veterans' organization that is described | 0010| in Section 501(c)(19) or (23) of the federal Internal Revenue | 0011| Code of 1986 and that is exempt from federal income taxation | 0012| pursuant to Section 501(a) of that code; | 0013| GG. "person" means a legal entity; | 0014| HH. "premises" means land, together with all | 0015| buildings, improvements and personal property located on the | 0016| land; | 0017| II. "progressive jackpot" means a prize that | 0018| increases over time or as gaming machines that are linked to a | 0019| progressive system are played and upon conditions established by | 0020| the board may be paid by an annuity; | 0021| JJ. "progressive system" means one or more gaming | 0022| machines linked to one or more common progressive jackpots; | 0023| KK. "publicly traded corporation" means a | 0024| corporation that: | 0025| (1) has one or more classes of securities | 0001| registered pursuant to the securities laws of the United States | 0002| or New Mexico; | 0003| (2) is an issuer subject to the securities laws | 0004| of the United States or 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 board finds provide protection for institutional | 0008| investors that is comparable to or greater than the stricter of | 0009| the securities laws of the United States or New Mexico; | 0010| LL. "registration" means a board action that | 0011| authorizes a company to be a holding company with respect to a | 0012| company that holds or applies for a license or that relates to | 0013| other persons required to be registered pursuant to the Gaming | 0014| Control Act; | 0015| MM. "subsidiary" means a company, all or a part of | 0016| whose outstanding equity securities are owned, subject to a | 0017| power or right of control or held, with power to vote, by a | 0018| holding company or intermediary company; and | 0019| NN. "work permit" means a card, certificate or | 0020| permit issued by the board, whether denominated as a work | 0021| permit, registration card or otherwise, authorizing the | 0022| employment of the holder as a gaming employee. | 0023| Section 6. [NEW MATERIAL] LIMITED GAMING ACTIVITY | 0024| PERMITTED.--Gaming activity is permitted in New Mexico only if | 0025| it is conducted in compliance with and pursuant to: | 0001| A. the Gaming Control Act; or | 0002| B. a state or federal law other than the Gaming | 0003| Control Act that expressly permits the activity or exempts it | 0004| from the application of the state criminal law, or both. | 0005| Section 7. [NEW MATERIAL] GAMING CONTROL BOARD | 0006| CREATED.-- | 0007| A. The "gaming control board" is created and | 0008| consists of five members. Three members are appointed by the | 0009| governor with the advice and consent of the senate, and two | 0010| members are ex officio: the chairman of the state racing | 0011| commission and the chairman of the board of the New Mexico | 0012| lottery authority. All members of the board shall be residents | 0013| of New Mexico and citizens of the United States. One appointed | 0014| member of the board shall have a minimum of five years of | 0015| previous employment in a supervisory and administrative position | 0016| in a law enforcement agency; one appointed member of the board | 0017| shall be a certified public accountant in New Mexico who has had | 0018| at least five years of experience in public accountancy; and one | 0019| appointed member of the board shall be an attorney who has been | 0020| admitted to practice before the supreme court of New Mexico. | 0021| B. The appointed members of the board shall be | 0022| appointed for terms of five years, except, of the members who | 0023| are first appointed, the member with law enforcement experience | 0024| shall be appointed for a term of five years; the member who is a | 0025| certified public accountant shall be appointed for a term of | 0001| four years; and the member who is an attorney shall be appointed | 0002| for a term of three years. Thereafter, all members shall be | 0003| appointed for terms of five years. No person shall serve as a | 0004| board member for more than two consecutive terms or ten years | 0005| total. | 0006| C. No person appointed to the board may be employed | 0007| in any other capacity or shall in any manner receive | 0008| compensation for services rendered to any person or entity other | 0009| than the board while a member of the board. | 0010| D. A vacancy on the board of an appointed member | 0011| shall be filled within thirty days by the governor with the | 0012| advice and consent of the senate for the unexpired portion of | 0013| the term in which the vacancy occurs. A person appointed to | 0014| fill a vacancy shall meet all qualification requirements of the | 0015| office established in this section. | 0016| E. The governor shall choose a chairman annually | 0017| from the board's appointed membership. | 0018| F. No more than three members of the board shall be | 0019| from the same political party. | 0020| G. The appointed members of the board shall be full- | 0021| time state officials and shall receive a salary set by the | 0022| governor. | 0023| H. The department of public safety shall conduct | 0024| background investigations of all members of the board prior to | 0025| confirmation by the senate. To assist the department in the | 0001| background investigation, a prospective board member shall | 0002| furnish a disclosure statement to the department on a form | 0003| provided by the department containing that information deemed by | 0004| the department as necessary for completion of a detailed and | 0005| thorough background investigation. The required information | 0006| shall include at least: | 0007| (1) a full set of fingerprints made by a law | 0008| enforcement agency on forms supplied by the department; | 0009| (2) complete information and details with | 0010| respect to the prospective board member's antecedents, habits, | 0011| immediate family, character, criminal record, business | 0012| activities, financial affairs and business associates covering | 0013| at least a ten-year period immediately preceding the date of | 0014| submitting the disclosure statement; | 0015| (3) complete disclosure of any equity interest | 0016| held by the prospective board member or a member of his | 0017| immediate family in a company that is an applicant or licensee | 0018| or an affiliate, affiliated company, intermediary company or | 0019| holding company in respect to an applicant or licensee; and | 0020| (4) the names and addresses of members of the | 0021| immediate family of the prospective board member. | 0022| I. No person may be appointed or confirmed as a | 0023| member of the board if that person or member of his immediate | 0024| family holds an equity interest in a company that is an | 0025| applicant or licensee or an affiliate, affiliated company, | 0001| intermediary company or holding company in respect to an | 0002| applicant or licensee. | 0003| J. A prospective board member shall provide | 0004| assistance and information requested by the department of public | 0005| safety or the governor and shall cooperate in any inquiry or | 0006| investigation of the prospective board member's fitness or | 0007| qualifications to hold the office to which he is appointed. The | 0008| senate shall not confirm a prospective board member if it has | 0009| reasonable cause to believe that the prospective board member | 0010| has: | 0011| (1) knowingly misrepresented or omitted a | 0012| material fact required in a disclosure statement; | 0013| (2) been convicted of a felony, a gaming | 0014| related offense or a crime involving fraud, theft or moral | 0015| turpitude within ten years immediately preceding the date of | 0016| submitting a disclosure statement required pursuant to the | 0017| provisions of Subsection H of this section; | 0018| (3) exhibited a history of willful disregard | 0019| for the gaming laws of this or any other state or the United | 0020| States; or | 0021| (4) had a permit or license issued pursuant to | 0022| the gaming laws of this or any other state or the United States | 0023| permanently suspended or revoked for cause. | 0024| K. At the time of taking office, each board member | 0025| shall file with the secretary of state a sworn statement that he | 0001| is not disqualified under the provisions of Subsection I of this | 0002| section. | 0003| Section 8. [NEW MATERIAL] BOARD--MEETINGS--QUORUM-- | 0004| RECORDS.-- | 0005| A. A majority of the qualified membership of the | 0006| board then in office constitutes a quorum. No action may be | 0007| taken by the board unless at least three members concur. | 0008| B. Written notice of the time and place of each | 0009| board meeting shall be given to each member of the board at | 0010| least ten days prior to the meeting. | 0011| C. Meetings of the board shall be open and public in | 0012| accordance with the Open Meetings Act, except that the board may | 0013| close a meeting to hear confidential security and investigative | 0014| information and other information made confidential by the | 0015| provisions of the Gaming Control Act. | 0016| D. All proceedings of the board shall be recorded by | 0017| audiotape or other equivalent verbatim audio recording device. | 0018| E. The chairman of the board, the executive director | 0019| or a majority of the members of the board then in office may | 0020| call a special meeting of the board upon at least five days' | 0021| prior written notice to all members of the board and the | 0022| executive director. | 0023| Section 9. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0024| A. The board shall implement the state's policy on | 0025| gaming consistent with the provisions of the Gaming Control Act. | 0001| It has the duty to fulfill all responsibilities assigned to it | 0002| pursuant to that act, and it has all authority necessary to | 0003| carry out those responsibilities. It may delegate authority to | 0004| the executive director, but it retains accountability. The | 0005| board is an adjunct agency. | 0006| B. The board shall: | 0007| (1) employ the executive director; | 0008| (2) make the final decision on issuance, | 0009| denial, suspension and revocation of all licenses pursuant to | 0010| and consistent with the provisions of the Gaming Control Act; | 0011| (3) develop, adopt and promulgate all | 0012| regulations necessary to implement and administer the provisions | 0013| of the Gaming Control Act; | 0014| (4) conduct itself, or employ a hearing officer | 0015| to conduct, all hearings required by the provisions of the | 0016| Gaming Control Act and other hearings it deems appropriate to | 0017| fulfill its responsibilities; | 0018| (5) meet at least once each month; and | 0019| (6) prepare and submit an annual report in | 0020| December of each year to the governor and the legislature, | 0021| covering activities of the board in the most recently completed | 0022| fiscal year, a summary of gaming activities in the state and any | 0023| recommended changes in or additions to the laws relating to | 0024| gaming in the state. | 0025| C. The board may: | 0001| (1) impose civil fines not to exceed twenty- | 0002| five thousand dollars ($25,000) for the first violation and | 0003| fifty thousand dollars ($50,000) for subsequent violations of | 0004| any prohibitory provision of the Gaming Control Act or any | 0005| prohibitory provision of a regulation adopted pursuant to that | 0006| act; | 0007| (2) conduct investigations; | 0008| (3) subpoena persons and documents to compel | 0009| access to or the production of documents and records, including | 0010| books and memoranda, in the custody or control of any licensee; | 0011| (4) compel the appearance of employees of a | 0012| licensee or persons for the purpose of ascertaining compliance | 0013| with provisions of the Gaming Control Act or a regulation | 0014| adopted pursuant to its provisions; | 0015| (5) administer oaths and take depositions to | 0016| the same extent and subject to the same limitations as would | 0017| apply if the deposition were pursuant to discovery rules in a | 0018| civil action in the district court; | 0019| (6) sue and be sued subject to the limitations | 0020| of the Tort Claims Act; | 0021| (7) contract for the provision of goods and | 0022| services necessary to carry out its responsibilities; | 0023| (8) conduct audits of applicants, licensees and | 0024| persons affiliated with licensees; | 0025| (9) inspect, examine, photocopy and audit all | 0001| documents and records of an applicant or licensee relevant to | 0002| his gaming activities in the presence of the applicant or | 0003| licensee or his agent; | 0004| (10) require verification of income and all | 0005| other matters pertinent to the gaming activities of an applicant | 0006| or licensee affecting the enforcement of any provision of the | 0007| Gaming Control Act; | 0008| (11) inspect all places where gaming activities | 0009| are conducted and inspect all property connected with gaming in | 0010| those places; | 0011| (12) summarily seize, remove and impound from | 0012| places inspected any gaming devices, property connected with | 0013| gaming, documents or records for the purpose of examination or | 0014| inspection; | 0015| (13) inspect, examine, photocopy and audit all | 0016| documents and records of any affiliate of an applicant or | 0017| licensee who the board knows or reasonably suspects is involved | 0018| in the financing, operation or management of the applicant or | 0019| licensee. The inspection, examination, photocopying and audit | 0020| shall be in the presence of a representative of the affiliate or | 0021| its agent when practicable; | 0022| (14) except for the powers specified in | 0023| Paragraphs (1) and (4) of this subsection, carry out all or part | 0024| of the foregoing powers and activities through the executive | 0025| director. | 0001| D. The board shall monitor all activity authorized | 0002| in an Indian Gaming Compact between the state and an Indian | 0003| nation, tribe or pueblo. The board shall appoint the state | 0004| gaming representative for the purposes of the compact. | 0005| Section 10. [NEW MATERIAL] BOARD REGULATIONS-- | 0006| DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0007| A. The board may adopt any regulation: | 0008| (1) consistent with the provisions of the | 0009| Gaming Control Act; and | 0010| (2) it decides is necessary to implement the | 0011| provisions of the Gaming Control Act. | 0012| B. No regulation shall be adopted, amended or | 0013| repealed without a public hearing on the proposed action before | 0014| the board or a hearing officer designated by it. The public | 0015| hearing shall be held in Santa Fe. Notice of the subject matter | 0016| of the regulation, the action proposed to be taken, the time and | 0017| place of the hearing, the manner in which interested persons may | 0018| present their views and the method by which copies of the | 0019| proposed regulation, amendment or repeal may be obtained shall | 0020| be published once at least thirty days prior to the hearing date | 0021| in a newspaper of general circulation and mailed at least thirty | 0022| days prior to the hearing date to all persons who have made a | 0023| written request for advance notice of hearing. All regulations | 0024| and actions taken on regulations shall be filed in accordance | 0025| with the State Rules Act. | 0001| C. The board shall adopt regulations: | 0002| (1) prescribing the method and form of | 0003| application to be followed by an applicant; | 0004| (2) prescribing the information to be furnished | 0005| by an applicant or licensee concerning his antecedents, | 0006| immediate family, habits, character, associates, criminal | 0007| record, business activities and financial affairs, past or | 0008| present; | 0009| (3) prescribing the manner and procedure of all | 0010| hearings conducted by the board or a hearing officer; | 0011| (4) prescribing the manner and method of | 0012| collection and payment of fees; | 0013| (5) prescribing the manner and method of the | 0014| issuance of licenses, permits, registrations, certificates and | 0015| other actions of the board not elsewhere prescribed in the | 0016| Gaming Control Act; | 0017| (6) defining the area, games and gaming devices | 0018| allowed and the methods of operation of the games and gaming | 0019| devices for authorized gaming; | 0020| (7) prescribing under what conditions the | 0021| nonpayment of winnings is grounds for suspension or revocation | 0022| of a license of a gaming operator; | 0023| (8) governing the manufacture, sale, | 0024| distribution, repair and servicing of gaming devices; | 0025| (9) prescribing accounting procedures, | 0001| security, collection and verification procedures required of | 0002| licensees and matters regarding financial responsibility of | 0003| licensees; | 0004| (10) prescribing what shall be considered to be | 0005| an unsuitable method of operating gaming activities; | 0006| (11) restricting access to confidential | 0007| information obtained pursuant to the provisions of the Gaming | 0008| Control Act and ensuring that the confidentiality of that | 0009| information is maintained and protected; | 0010| (12) prescribing financial reporting and | 0011| internal control requirements for licensees; | 0012| (13) prescribing the manner in which winnings, | 0013| compensation from gaming activities and net take shall be | 0014| computed and reported by a gaming operator licensee; | 0015| (14) prescribing the frequency of and the | 0016| matters to be contained in audits of and periodic financial | 0017| reports from a gaming operator licensee consistent with | 0018| standards prescribed by the board; | 0019| (15) prescribing the procedures to be followed | 0020| by a gaming operator licensee for the exclusion of persons from | 0021| gaming establishments; | 0022| (16) establishing criteria and conditions for | 0023| the operation of progressive systems; | 0024| (17) establishing criteria and conditions for | 0025| approval of procurement by the board of personal property valued | 0001| in excess of twenty thousand dollars ($20,000), including | 0002| background investigation requirements for a person submitting a | 0003| bid or proposal; and | 0004| (18) establishing an applicant fee schedule for | 0005| processing applications that is based on costs of the | 0006| application review incurred by the board whether directly or | 0007| through payment by the board for costs charged for | 0008| investigations of applicants by state departments and agencies | 0009| other than the board, which regulation shall set a maximum fee | 0010| of one hundred thousand dollars ($100,000). | 0011| Section 11. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0012| EMPLOYMENT--QUALIFICATIONS.-- | 0013| A. The executive director shall be employed by, | 0014| report directly to and serve at the pleasure of the board. | 0015| B. The executive director shall have had at least | 0016| five years of responsible supervisory administrative experience | 0017| in a governmental gaming regulatory agency. | 0018| C. The executive director shall receive an annual | 0019| salary to be set by the board, but not to exceed eighty-five | 0020| thousand dollars ($85,000) per year. | 0021| Section 12. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0022| POWERS--DUTIES.-- | 0023| A. The executive director shall implement the | 0024| policies of the board. | 0025| B. The executive director shall employ all personnel | 0001| who work for the board. The employees shall be covered | 0002| employees pursuant to the provisions of the Personnel Act. | 0003| Among those personnel he shall employ and designate an | 0004| appropriate number of individuals as law enforcement officers | 0005| subject to proper certification pursuant to the Law Enforcement | 0006| Training Act. | 0007| C. The executive director shall establish | 0008| organizational units he determines are appropriate to administer | 0009| the provisions of the Gaming Control Act. | 0010| D. The executive director: | 0011| (1) may delegate authority to subordinates as | 0012| he deems necessary and appropriate, clearly delineating the | 0013| delegated authority and the limitations on it, if any; | 0014| (2) shall take administrative action by issuing | 0015| orders and instructions consistent with the Gaming Control Act | 0016| and regulations of the board to assure implementation of and | 0017| compliance with the provisions of that act and those | 0018| regulations; | 0019| (3) may conduct research and studies that will | 0020| improve the operations of the board and the provision of | 0021| services to the citizens of the state; | 0022| (4) may provide courses of instruction and | 0023| practical training for employees of the board and other persons | 0024| involved in the activities regulated by the board with the | 0025| objectives of improving operations of the board and achieving | 0001| compliance with the law and regulations; | 0002| (5) shall prepare an annual budget for the | 0003| board and submit it to the board for approval; and | 0004| (6) shall make recommendations to the board of | 0005| proposed regulations and any legislative changes needed to | 0006| provide better administration of the Gaming Control Act and fair | 0007| and efficient regulation of gaming activities in the state. | 0008| Section 13. [NEW MATERIAL] INVESTIGATION OF EXECUTIVE | 0009| DIRECTOR CANDIDATES AND EMPLOYEES.-- | 0010| A. A person who is under consideration in the final | 0011| selection process for appointment as the executive director | 0012| shall file a disclosure statement pursuant to the requirements | 0013| of this section, and the board shall not make an appointment of | 0014| a person as executive director until a background investigation | 0015| is completed by the department of public safety and a report is | 0016| made to the board. | 0017| B. A person who has reached the final selection | 0018| process for employment by the executive director shall file a | 0019| disclosure statement pursuant to the requirements of this | 0020| section if the executive director or the board has directed the | 0021| person do so. The person shall not be further considered for | 0022| employment until a background investigation is completed by the | 0023| department of public safety and a report is made to the | 0024| executive director. | 0025| C. Forms for the disclosure statements required by | 0001| this section shall be developed by the board in cooperation with | 0002| the department of public safety. At least the following | 0003| information shall be required of a person submitting a | 0004| statement: | 0005| (1) a full set of fingerprints made by a law | 0006| enforcement agency on forms supplied by the board; | 0007| (2) complete information and details with | 0008| respect to the person's antecedents, habits, immediate family, | 0009| character, criminal record, business activities and business | 0010| associates, covering at least a ten-year period immediately | 0011| preceding the date of submitting the disclosure statement; and | 0012| (3) a complete description of any equity | 0013| interest held in a business connected with the gaming industry. | 0014| D. In preparing an investigative report, the | 0015| department of public safety may request and receive criminal | 0016| history information from the federal bureau of investigation or | 0017| any other law enforcement agency or organization. The | 0018| department of public safety shall maintain confidentiality | 0019| regarding information received from a law enforcement agency | 0020| that may be imposed by the agency as a condition for providing | 0021| the information to the department. | 0022| E. A person required to file a disclosure statement | 0023| shall provide any assistance or information requested by the | 0024| department of public safety or the board and shall cooperate in | 0025| any inquiry or investigation. | 0001| F. If information required to be included in a | 0002| disclosure statement changes or if information is added after | 0003| the statement is filed, the person required to file it shall | 0004| provide that information in writing to the person requesting the | 0005| investigation. The supplemental information shall be provided | 0006| within thirty days after the change or addition. | 0007| G. The board shall not appoint a person as executive | 0008| director, and the executive director shall not employ a person, | 0009| if the board or the executive director has reasonable cause to | 0010| believe that the person has: | 0011| (1) knowingly misrepresented or omitted a | 0012| material fact required in a disclosure statement; | 0013| (2) been convicted of a felony, a gaming | 0014| related offense or a crime involving fraud, theft or moral | 0015| turpitude within ten years immediately preceding the date of | 0016| submitting a disclosure statement required pursuant to this | 0017| section; | 0018| (3) exhibited a history of willful disregard | 0019| for the gaming laws of this or any other state or the United | 0020| States; or | 0021| (4) had a permit or license issued pursuant to | 0022| the gaming laws of this or any other state or the United States | 0023| permanently suspended or revoked for cause. | 0024| H. Both the board and the executive director may | 0025| exercise absolute discretion in exercising their respective | 0001| appointing and employing powers. | 0002| Section 14. [NEW MATERIAL] CONFLICTS OF INTEREST-- | 0003| BOARD--EXECUTIVE DIRECTOR.-- | 0004| A. In addition to all other provisions of New Mexico | 0005| law regarding conflicts of interest of state officials and | 0006| employees, a member of the board, the executive director, or a | 0007| person in the immediate family of or residing in the household | 0008| of any of the foregoing persons, shall not: | 0009| (1) directly or indirectly, as a proprietor or | 0010| as a member, stockholder, director or officer of a company, have | 0011| an interest in a business engaged in gaming activities in this | 0012| or another jurisdiction; or | 0013| (2) accept or agree to accept any economic | 0014| opportunity, gift, loan, gratuity, special discount, favor, | 0015| hospitality or service having an aggregate value of one hundred | 0016| dollars ($100) or more in any calendar year from a licensee or | 0017| applicant. | 0018| B. If a member of the board, the executive director | 0019| or a person in the immediate family of or residing in the | 0020| household of a member of the board or the executive director | 0021| violates a provision of this section, the member of the board or | 0022| executive director shall be removed from office. A board member | 0023| shall be removed by the governor, and the executive director | 0024| shall be removed from his position by the board. | 0025| Section 15. [NEW MATERIAL] ACTIVITIES REQUIRING | 0001| LICENSING.-- | 0002| A. A person shall not conduct gaming unless he is | 0003| licensed as a gaming operator. | 0004| B. A person shall not sell, supply or distribute any | 0005| gaming device or associated equipment for use or play in this | 0006| state or for use or play outside of this state from a location | 0007| within this state unless he is licensed as a distributor or | 0008| manufacturer, but a gaming operator licensee may sell or trade | 0009| in a gaming device or associated equipment to a gaming operator | 0010| licensee, distributor licensee or manufacturer licensee. | 0011| C. A person shall not manufacture, fabricate, | 0012| assemble, program or make modifications to a gaming device or | 0013| associated equipment for use or play in this state or for use or | 0014| play outside of this state from any location within this state | 0015| unless he is a manufacturer licensee. A manufacturer licensee | 0016| may sell, supply or distribute only the gaming devices or | 0017| associated equipment that he manufactures, fabricates, | 0018| assembles, programs or modifies. | 0019| D. A gaming operator licensee or a person other than | 0020| a manufacturer licensee or distributor licensee shall not | 0021| possess or control a place where there is an unlicensed gaming | 0022| machine. Any unlicensed gaming machine, except one in the | 0023| possession of a licensee while awaiting transfer to a gaming | 0024| operator licensee for licensure of the machine, is subject to | 0025| forfeiture and confiscation by any law enforcement agency or | 0001| peace officer. | 0002| E. A person shall not service or repair a gaming | 0003| device or associated equipment unless he is licensed as a | 0004| manufacturer, is employed by a manufacturer licensee or is a | 0005| technician certified by a manufacturer and employed by a | 0006| distributor licensee or a gaming operator licensee. | 0007| F. A person shall not engage in any activity for | 0008| which the board requires a license or permit without obtaining | 0009| the license or permit. | 0010| G. Except as provided in Subsection B of this | 0011| section, a person shall not purchase, lease or acquire | 0012| possession of a gaming device or associated equipment except | 0013| from a licensed distributor or manufacturer. | 0014| H. A distributor licensee may receive a percentage | 0015| of the amount wagered, the net take or other measure related to | 0016| the operation of a gaming machine as a payment pursuant to a | 0017| lease or other arrangement for furnishing a gaming machine, but | 0018| the board shall adopt a regulation setting the maximum allowable | 0019| percentage. | 0020| Section 16. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0021| A. The board shall establish and issue the following | 0022| categories of licenses: | 0023| (1) manufacturer; | 0024| (2) distributor; | 0025| (3) gaming operator; and | 0001| (4) gaming machine. | 0002| B. The board shall issue certifications of findings | 0003| of suitability for key executives and other persons for whom | 0004| certification is required. | 0005| C. The board shall issue work permits for gaming | 0006| employees. | 0007| D. A licensee shall not be issued more than one type | 0008| of license, but this provision does not prohibit a licensee from | 0009| owning, leasing, acquiring or having in his possession licensed | 0010| gaming machines if that activity is otherwise allowed by the | 0011| provisions of the Gaming Control Act. A licensee shall not own | 0012| a majority interest in, manage or otherwise control a holder of | 0013| another type of license issued pursuant to the provisions of | 0014| that act. | 0015| E. Applicants shall apply on forms provided by the | 0016| board and furnish all information requested by the board. | 0017| Submission of an application constitutes consent to a credit | 0018| check of the applicant and all persons having a substantial | 0019| interest in the applicant and any other background | 0020| investigations required pursuant to the Gaming Control Act or | 0021| deemed necessary by the board. | 0022| F. All licenses issued by the board pursuant to the | 0023| provisions of this section shall be reviewed for renewal | 0024| annually unless revoked, suspended, canceled or terminated. | 0025| G. A license shall not be transferred or assigned. | 0001| H. The application for a license shall include: | 0002| (1) the name of the applicant; | 0003| (2) the location of the proposed operation; | 0004| (3) the gaming devices to be operated, | 0005| manufactured, distributed or serviced; | 0006| (4) the names of all persons having a direct or | 0007| indirect interest in the business of the applicant and the | 0008| nature of such interest; and | 0009| (5) such other information and details as the | 0010| board may require. | 0011| I. The board shall furnish to the applicant | 0012| supplemental forms that the applicant shall complete and file | 0013| with the application. Such supplemental forms shall require | 0014| complete information and details with respect to the applicant's | 0015| antecedents, habits, immediate family, character, criminal | 0016| record, business activities, financial affairs and business | 0017| associates, covering at least a ten-year period immediately | 0018| preceding the date of filing of the application. | 0019| Section 17. [NEW MATERIAL] LICENSE, CERTIFICATION AND | 0020| WORK PERMIT FEES.-- | 0021| A. License and other fees shall be established by | 0022| board regulation but shall not exceed the following amounts: | 0023| (1) manufacturer's license, twenty thousand | 0024| dollars ($20,000) for the initial license and five thousand | 0025| dollars ($5,000) for annual renewal; | 0001| (2) distributor's license, ten thousand dollars | 0002| ($10,000) for the initial license and one thousand dollars | 0003| ($1,000) for annual renewal; | 0004| (3) gaming operator's license for a racetrack, | 0005| fifty thousand dollars ($50,000) for the initial license and ten | 0006| thousand dollars ($10,000) for annual renewal; | 0007| (4) gaming operator's license for a nonprofit | 0008| organization, one thousand dollars ($1,000) for the initial | 0009| license and two hundred dollars ($200) for annual renewal; | 0010| (5) for each separate gaming machine licensed | 0011| to a person holding an operator's license, five hundred dollars | 0012| ($500) for the initial license and one hundred dollars ($100) | 0013| for annual renewal; and | 0014| (6) work permit, one hundred dollars ($100) | 0015| annually. | 0016| B. The board shall establish the fee for | 0017| certifications or other actions by regulation, but no fee | 0018| established by the board shall exceed one thousand dollars | 0019| ($1,000), except for fees established pursuant to Paragraph (18) | 0020| of Subsection C of Section 10 of the Gaming Control Act. | 0021| C. All license, certification or work permit fees | 0022| shall be paid to the board at the time and in the manner | 0023| established by regulations of the board. | 0024| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0025| APPLICATIONS.-- | 0001| A. A person that the board determines is qualified | 0002| to receive a license pursuant to the provisions of the Gaming | 0003| Control Act may be issued a license. The burden of proving | 0004| qualifications is on the applicant. | 0005| B. A license shall not be issued unless the board is | 0006| satisfied that the applicant is: | 0007| (1) a person of good moral character, honesty | 0008| and integrity; | 0009| (2) a person whose prior activities, criminal | 0010| record, reputation, habits and associations do not pose a threat | 0011| to the public interest or to the effective regulation and | 0012| control of gaming or create or enhance the dangers of | 0013| unsuitable, unfair or illegal practices, methods and activities | 0014| in the conduct of gaming or the carrying on of the business and | 0015| financial arrangements incidental thereto; and | 0016| (3) in all other respects qualified to be | 0017| licensed consistent with the laws of this state. | 0018| C. A license shall not be issued unless the | 0019| applicant has satisfied the board that: | 0020| (1) the applicant has adequate business | 0021| probity, competence and experience in business and gaming; | 0022| (2) the proposed financing of the applicant is | 0023| adequate for the nature of the proposed license and from a | 0024| suitable source; any lender or other source of money or credit | 0025| that the board finds does not meet the standards set forth in | 0001| Subsection B of this section shall be deemed unsuitable; and | 0002| (3) the applicant is sufficiently capitalized | 0003| under standards set by the board to conduct the business covered | 0004| by the license. | 0005| D. An application to receive a license, | 0006| certification or work permit constitutes a request for a | 0007| determination of the applicant's general moral character, | 0008| integrity and ability to participate or engage in or be | 0009| associated with gaming. Any written or oral statement made in | 0010| the course of an official proceeding of the board or by a | 0011| witness testifying under oath that is relevant to the purpose of | 0012| the proceeding is absolutely privileged and does not impose | 0013| liability for defamation or constitute a ground for recovery in | 0014| any civil action. | 0015| E. The board shall not issue a license or | 0016| certification to an applicant who has been denied a license or | 0017| certification in this state or another state, who has had a | 0018| certification, permit or license issued pursuant to the gaming | 0019| laws of a state or the United States permanently suspended or | 0020| revoked for cause or who is currently under suspension or | 0021| subject to any other limiting action in this state or another | 0022| state involving gaming activities or licensure for gaming | 0023| activities. | 0024| F. The board shall investigate the qualifications of | 0025| each applicant before a license, certification or work permit is | 0001| issued by the board and shall continue to observe and monitor | 0002| the conduct of all licensees, work permit holders, persons | 0003| certified as being suitable and the persons having a material | 0004| involvement directly or indirectly with a licensee. | 0005| G. The board has the authority to deny an | 0006| application or limit, condition, restrict, revoke or suspend a | 0007| license, certification or permit for any cause. | 0008| H. After issuance, a license, certification or | 0009| permit shall continue in effect upon proper payment of the | 0010| initial and renewal fees, subject to the power of the board to | 0011| revoke, suspend, condition or limit licenses, certifications and | 0012| permits. | 0013| I. The board has full and absolute power and | 0014| authority to deny an application for any cause it deems | 0015| reasonable. If an application is denied, the board shall | 0016| prepare and file its written decision on which its order denying | 0017| the application is based. | 0018| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES, | 0019| CERTIFICATIONS AND PERMITS.--The board shall initiate an | 0020| investigation of the applicant within thirty days after an | 0021| application is filed and supplemental information that the board | 0022| may require is received. | 0023| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS | 0024| FOR COMPANIES.--In order to be eligible to receive a license, a | 0025| company shall: | 0001| A. be incorporated or otherwise organized and in | 0002| good standing in this state or incorporated or otherwise | 0003| organized in another state, qualified to do business in this | 0004| state and in good standing in this state and in the state of | 0005| incorporation; | 0006| B. comply with all of the requirements of the laws | 0007| of this state pertaining to the company; | 0008| C. maintain a ledger in the principal office of the | 0009| company in this state, which shall: | 0010| (1) at all times reflect the ownership | 0011| according to company records of every class of security issued | 0012| by the company; and | 0013| (2) be available for inspection by the board at | 0014| all reasonable times without notice; and | 0015| D. file notice of all changes of ownership of all | 0016| classes of securities issued by the company with the board | 0017| within thirty days of the change. | 0018| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0019| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company applicant | 0020| shall provide the following information to the board on forms | 0021| provided by the board: | 0022| A. the organization, financial structure and nature | 0023| of the business to be operated, including the names and personal | 0024| histories of all officers, directors and key executives; | 0025| B. the rights and privileges acquired by the holders | 0001| of different classes of authorized securities; | 0002| C. the terms and conditions of all outstanding | 0003| loans, mortgages, trust deeds, pledges or any other indebtedness | 0004| or security interest evidenced by a security instrument | 0005| pertaining to the proposed gaming operation or other licensed | 0006| activity in this state and the name and address of the person | 0007| who is servicing the loan, mortgage, trust deed, pledge or other | 0008| indebtedness or security interest; | 0009| D. remuneration to persons, other than directors, | 0010| officers and key executives, exceeding fifty thousand dollars | 0011| ($50,000) per year; | 0012| E. bonus and profit-sharing arrangements within the | 0013| company; | 0014| F. management and service contracts pertaining to | 0015| the proposed gaming activity in this state; | 0016| G. balance sheets and profit and loss statements for | 0017| at least the three preceding fiscal years, or, if the company | 0018| has not been in business for a period of three years, balance | 0019| sheets and profit and loss statements from the time of its | 0020| commencement of business operations and projected for three | 0021| years from the time of its commencement of business operations. | 0022| All balance sheets and profit and loss statements shall be | 0023| certified by independent certified public accountants; and | 0024| H. any further financial data that the board deems | 0025| necessary or appropriate. | 0001| Section 22. [NEW MATERIAL] INDIVIDUAL CERTIFICATION OF | 0002| OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer, director, | 0003| equity security holder of five percent or more, partner, general | 0004| partner, limited partner, trustee or beneficiary of the company | 0005| that holds or has applied for a license shall be certified | 0006| individually, according to the provisions of the Gaming Control | 0007| Act, and if in the judgment of the board the public interest is | 0008| served by requiring any or all of the company's key executives | 0009| to be certified, the company shall require those persons to | 0010| apply for certification. A person who is required to be | 0011| certified pursuant to this section shall apply for certification | 0012| within thirty days after becoming an officer, director, equity | 0013| security holder of five percent or more, partner, general | 0014| partner, limited partner of five percent or more, trustee, | 0015| beneficiary or key executive. A person who is required to be | 0016| certified pursuant to a decision of the board shall apply for | 0017| certification within thirty days after the board so requests. | 0018| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS | 0019| OR BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON | 0020| UNSUITABLE PERSONS--OTHER REQUIREMENTS.-- | 0021| A. If the company applicant or licensee is or | 0022| becomes a subsidiary, each nonpublicly traded holding company | 0023| and intermediary company with respect to the subsidiary company | 0024| shall: | 0025| (1) qualify to do business in New Mexico; and | 0001| (2) register with the board and furnish to the | 0002| board the following information: | 0003| (a) a complete list of all beneficial | 0004| owners of five percent or more of its equity securities, which | 0005| shall be updated within thirty days after any change; | 0006| (b) the names of all company officers and | 0007| directors within thirty days of their appointment or election; | 0008| (c) its organization, financial structure | 0009| and nature of the business it operates; | 0010| (d) the terms, position, rights and | 0011| privileges of the different classes of its outstanding | 0012| securities; | 0013| (e) the terms on which its securities are | 0014| to be, and during the preceding three years have been, offered; | 0015| (f) the holder of and the terms and | 0016| conditions of all outstanding loans, mortgages, trust deeds, | 0017| pledges or any other indebtedness or security interest | 0018| pertaining to the applicant or licensee; | 0019| (g) the extent of the securities holdings | 0020| or other interest in the holding company or intermediary company | 0021| of all officers, directors, key executives, underwriters, | 0022| partners, principals, trustees or any direct or beneficial | 0023| owners, and the amount of any remuneration paid them as | 0024| compensation for their services in the form of salary, wages, | 0025| fees or by contract pertaining to the licensee; | 0001| (h) remuneration to persons other than | 0002| directors, officers and key executives exceeding fifty thousand | 0003| dollars ($50,000) per year; | 0004| (i) bonus and profit-sharing arrangements | 0005| within the holding company or intermediary company; | 0006| (j) management and service contracts | 0007| pertaining to the licensee or applicant; | 0008| (k) options existing or to be created in | 0009| respect to the company's securities or other interests; | 0010| (l) balance sheets and profit and loss | 0011| statements, certified by independent certified public | 0012| accountants, for not more than the three preceding fiscal years, | 0013| or, if the holding company or intermediary company has not been | 0014| in existence more than three years, balance sheets and profit | 0015| and loss statements from the time of its establishment, together | 0016| with projections for three years from the time of its | 0017| establishment; | 0018| (m) any further financial statements | 0019| necessary or appropriate to assist the board in making its | 0020| determinations; and | 0021| (n) a current annual profit and loss | 0022| statement, a current annual balance sheet and a copy of the | 0023| company's most recent federal income tax return within thirty | 0024| days after the return is filed. | 0025| B. All holders of five percent or more of the equity | 0001| security of a holding company or intermediary company shall | 0002| apply for a finding of suitability. | 0003| C. The board may in its discretion perform the | 0004| investigations concerning the officers, directors, key | 0005| executives, underwriters, security holders, partners, | 0006| principals, trustees or direct or beneficial owners of any | 0007| interest in any holding company or intermediary company as it | 0008| deems necessary, either at the time of initial registration or | 0009| at any time thereafter. | 0010| D. If at any time the board finds that any person | 0011| owning, controlling or holding with power to vote all or any | 0012| part of any class of securities of, or any interest in, any | 0013| holding company or intermediary company is unsuitable to be | 0014| connected with a licensee, it shall so notify both the | 0015| unsuitable person and the holding company or intermediary | 0016| company. The unsuitable person shall immediately offer the | 0017| securities or other interest to the issuing company for | 0018| purchase. The company shall purchase the securities or interest | 0019| offered upon the terms and within the time period ordered by the | 0020| board. | 0021| E. Beginning on the date when the board serves | 0022| notice that a person has been found to be unsuitable pursuant to | 0023| Subsection D of this section, it is unlawful for the unsuitable | 0024| person to: | 0025| (1) receive any dividend or interest upon any | 0001| securities held in the holding company or intermediary company, | 0002| or any dividend, payment or distribution of any kind from the | 0003| holding company or intermediary company; | 0004| (2) exercise, directly or indirectly or through | 0005| a proxy, trustee or nominee, any voting right conferred by the | 0006| securities or interest; or | 0007| (3) receive remuneration in any form from the | 0008| licensee, or from any holding company or intermediary company | 0009| with respect to that licensee, for services rendered or | 0010| otherwise. | 0011| F. A holding company or intermediary company subject | 0012| to the provisions of Subsection A of this section shall not make | 0013| any public offering of any of its equity securities unless such | 0014| public offering has been approved by the board. | 0015| G. This section does not apply to a holding company | 0016| or intermediary company that is a publicly traded corporation, | 0017| the stock of which is traded on recognized stock exchanges, | 0018| which shall instead comply with the provisions of Section 24 of | 0019| the Gaming Control Act. | 0020| Section 24. [NEW MATERIAL] REGISTRATION AND | 0021| CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.-- | 0022| A. If a company applicant or company licensee is or | 0023| becomes a publicly traded corporation, it shall register with | 0024| the board and provide the following information: | 0025| (1) as of the date the company became a | 0001| publicly traded corporation, and on any later date when the | 0002| information changes, the names of all stockholders of record who | 0003| hold five percent or more of the outstanding shares of any class | 0004| of equity securities issued by the publicly traded corporation; | 0005| (2) the names of all officers within thirty | 0006| days of their respective appointments; | 0007| (3) the names of all directors within thirty | 0008| days of their respective elections or appointments; | 0009| (4) the organization, financial structure and | 0010| nature of the businesses the publicly traded corporation | 0011| operates; | 0012| (5) the terms, position, rights and privileges | 0013| of the different classes of securities outstanding as of the | 0014| date the company became a publicly traded corporation; | 0015| (6) the terms on which the company's securities | 0016| were issued during the three years preceding the date on which | 0017| the company became a publicly traded corporation and the terms | 0018| on which the publicly traded corporation's securities are to be | 0019| offered to the public as of the date the company became a | 0020| publicly traded corporation; | 0021| (7) the terms and conditions of all outstanding | 0022| indebtedness and evidence of security pertaining directly or | 0023| indirectly to the publicly traded corporation; | 0024| (8) remuneration exceeding fifty thousand | 0025| dollars ($50,000) per year paid to persons other than directors, | 0001| officers and key executives who are actively and directly | 0002| engaged in the administration or supervision of the gaming | 0003| activities of the publicly traded corporation; | 0004| (9) bonus and profit-sharing arrangements | 0005| within the publicly traded corporation directly or indirectly | 0006| relating to its gaming activities; | 0007| (10) management and service contracts of the | 0008| corporation pertaining to its gaming activities; | 0009| (11) options existing or to be created pursuant | 0010| to its equity securities; | 0011| (12) balance sheets and profit and loss | 0012| statements, certified by independent certified public | 0013| accountants, for not less than the three fiscal years preceding | 0014| the date the company became a publicly traded corporation; | 0015| (13) any further financial statements deemed | 0016| necessary or appropriate by the board; and | 0017| (14) a description of the publicly traded | 0018| corporation's affiliated companies and intermediary companies | 0019| and gaming licenses, permits and approvals held by those | 0020| entities. | 0021| B. The board shall consider the following criteria | 0022| in determining whether to certify a publicly traded corporation: | 0023| (1) the business history of the publicly traded | 0024| corporation, including its record of financial stability, | 0025| integrity and success of its gaming operations in other | 0001| jurisdictions; | 0002| (2) the current business activities and | 0003| interests of the applicant, as well as those of its officers, | 0004| promoters, lenders and other sources of financing, or any other | 0005| persons associated with it; | 0006| (3) the current financial structure of the | 0007| publicly traded corporation as well as changes that could | 0008| reasonably be expected to occur to its financial structure as a | 0009| consequence of its proposed action; | 0010| (4) the present and proposed compensation | 0011| arrangements between the publicly traded corporation and its | 0012| directors, officers, key executives, securities holders, lenders | 0013| or other sources of financing; | 0014| (5) the equity investment, commitment or | 0015| contribution of present or prospective directors, key | 0016| executives, investors, lenders or other sources of financing; | 0017| and | 0018| (6) the dealings and arrangements, prospective | 0019| or otherwise, between the publicly traded corporation and its | 0020| investment bankers, promoters, finders or lenders and other | 0021| sources of financing. | 0022| C. The board may issue a certification upon receipt | 0023| of a proper application and consideration of the criteria set | 0024| forth in Subsection B of this section if it finds that the | 0025| certification would not be contrary to the public interest or | 0001| the policy set forth in the Gaming Control Act. | 0002| Section 25. [NEW MATERIAL] FINDING OF SUITABILITY | 0003| REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL | 0004| FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY BY | 0005| BOARD.-- | 0006| A. Each officer, director and key executive of a | 0007| holding company, intermediary company or publicly traded | 0008| corporation that the board determines is or is to become | 0009| actively and directly engaged in the administration or | 0010| supervision of, or any other significant involvement with, the | 0011| activities of the subsidiary licensee or applicant shall apply | 0012| for a finding of suitability. | 0013| B. If any officer, director or key executive of a | 0014| holding company, intermediary company or publicly traded | 0015| corporation required to be found suitable pursuant to Subsection | 0016| A of this section fails to apply for a finding of suitability | 0017| within thirty days after being requested to do so by the board, | 0018| or is not found suitable by the board, or if his finding of | 0019| suitability is revoked after appropriate findings by the board, | 0020| the holding company, intermediary company or publicly traded | 0021| corporation shall immediately remove that officer, director or | 0022| key executive from any office or position in which the person is | 0023| engaged in the administration or supervision of, or any other | 0024| involvement with, the activities of the certified subsidiary | 0025| until the person is thereafter found to be suitable. If the | 0001| board suspends the finding of suitability of any officer, | 0002| director or key executive, the holding company, intermediary | 0003| company or publicly traded corporation shall immediately and for | 0004| the duration of the suspension suspend that officer, director or | 0005| key executive from performance of any duties in which he is | 0006| actively and directly engaged in the administration or | 0007| supervision of, or any other involvement with, the activities of | 0008| the subsidiary licensee. | 0009| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0010| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0011| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION-- | 0012| PROHIBITION.-- | 0013| A. Each person who, individually or in association | 0014| with others, acquires, directly or indirectly, beneficial | 0015| ownership of five percent or more of any voting securities in a | 0016| publicly traded corporation registered with the board may be | 0017| required to be found suitable if the board has reason to believe | 0018| that the acquisition of the ownership would otherwise be | 0019| inconsistent with the declared policy of this state. | 0020| B. Each person who, individually or in association | 0021| with others, acquires, directly or indirectly, beneficial | 0022| ownership of five percent or more of any class of voting | 0023| securities of a publicly traded corporation certified by the | 0024| board shall notify the board within ten days after acquiring | 0025| such interest. | 0001| C. Each person who, individually or in association | 0002| with others, acquires, directly or indirectly, the beneficial | 0003| ownership of more than ten percent of any class of voting | 0004| securities of a publicly traded corporation certified by the | 0005| board shall apply to the board for a finding of suitability | 0006| within thirty days after acquiring such interest. | 0007| D. Institutional investors that have been exempted | 0008| from or have received a waiver of suitability requirements | 0009| pursuant to regulations adopted by the board are not required to | 0010| comply with this section. | 0011| E. Any person required by the board or by the | 0012| provisions of this section to be found suitable shall apply for | 0013| a finding of suitability within thirty days after the board | 0014| requests that he do so. | 0015| F. Any person required by the board or the | 0016| provisions of this section to be found suitable who subsequently | 0017| is found unsuitable by the board shall not hold directly or | 0018| indirectly the beneficial ownership of any security of a | 0019| publicly traded corporation that is registered with the board | 0020| beyond that period of time prescribed by the board. | 0021| G. The board may, but is not required to, deem a | 0022| person qualified to hold a license or be found suitable as | 0023| required by this section if the person currently holds a valid | 0024| license issued by, or has been found suitable by, gaming | 0025| regulatory authorities in another jurisdiction, provided that | 0001| the board finds that the other jurisdiction has conducted a | 0002| thorough investigation of the applicant and has criteria | 0003| substantially similar to those of the board to determine when a | 0004| person is to be found suitable or to obtain a license. | 0005| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE | 0006| OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE | 0007| OFFICERS AND DIRECTORS--APPROVAL OF BOARD.-- | 0008| A. Before a company licensee, other than a publicly | 0009| traded corporation, may issue or transfer five percent or more | 0010| of its securities to any person, it shall file a report of its | 0011| proposed action with the board, which report shall request the | 0012| approval of the board. The board shall have ninety days within | 0013| which to approve or deny the request. If the board fails to act | 0014| in ninety days, the request is deemed approved. If the board | 0015| denies the request, the company shall not issue or transfer five | 0016| percent or more of its securities to the person about whom the | 0017| request was made. | 0018| B. A company licensee shall file a report of each | 0019| change of the corporate officers and directors with the board | 0020| within thirty days of the change. The board shall have ninety | 0021| days from the date the report is filed within which to approve | 0022| or disapprove such change. During the ninety-day period and | 0023| thereafter, if the board does not disapprove the change, an | 0024| officer or director is be entitled to exercise all powers of the | 0025| office to which he was elected or appointed. | 0001| C. A company licensee shall report to the board in | 0002| writing any change in company personnel who have been designated | 0003| as key executives. The report shall be made no later than | 0004| thirty days after the change. | 0005| D. The board may require that a company licensee | 0006| furnish the board with a copy of its federal income tax return | 0007| within thirty days after the return is filed. | 0008| Section 28. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0009| GENERAL PROVISIONS--BUSINESS PLAN--PLAYER AGE LIMIT-- | 0010| RESTRICTIONS.-- | 0011| A. An applicant for licensure as a gaming operator | 0012| shall submit with the application a plan for assisting in the | 0013| prevention, education and treatment of compulsive gambling. The | 0014| plan shall include regular educational training sessions for | 0015| employees. Plan approval is a condition of issuance of the | 0016| license. | 0017| B. An applicant for licensure as a gaming operator | 0018| shall submit with the application a proposed business plan. The | 0019| plan shall include at least: | 0020| (1) a floor plan of the area to be used for | 0021| gaming machine operations; | 0022| (2) an advertising and marketing plan; | 0023| (3) the proposed placement and number of gaming | 0024| machines; | 0025| (4) a financial control plan; | 0001| (5) a security plan; | 0002| (6) a staffing plan for gaming machine | 0003| operations; and | 0004| (7) details of any proposed progressive | 0005| systems. C. A gaming operator licensee shall be granted | 0006| a license to operate a specific number of machines at a gaming | 0007| establishment identified in the license application and shall be | 0008| granted a license for each gaming machine. | 0009| D. A gaming operator licensee who desires to change | 0010| the number of machines in operation at a gaming establishment | 0011| shall apply to the board for an amendment to his license | 0012| authorizing a change in the number of machines. | 0013| E. Gaming machines may be available for play only in | 0014| an area restricted to persons twenty-one years of age or older. | 0015| F. A gaming operator licensee shall erect a | 0016| permanent physical barrier to allow for multiple uses of the | 0017| premises by persons of all ages. For purposes of this | 0018| subsection, "permanent physical barrier" means a floor-to- | 0019| ceiling wall separating the general areas from the restricted | 0020| areas. The entrance to the area where gaming machines are | 0021| located shall display a sign that the premises are restricted to | 0022| persons twenty-one years of age or older. Persons under the age | 0023| of twenty-one shall not enter the area where gaming machines are | 0024| located. | 0025| G. A gaming operator licensee shall not have | 0001| automated teller machines in the area restricted pursuant to | 0002| Subsection F of this section. | 0003| H. A gaming operator licensee shall not provide, | 0004| allow, contract or arrange to provide alcohol or food for no | 0005| charge or at reduced prices as an incentive or enticement for | 0006| patrons to game. | 0007| I. Only a racetrack licensed by the state racing | 0008| commission or a nonprofit organization may apply for or be | 0009| issued a gaming operator's license. No other persons are | 0010| qualified to apply for or be issued a gaming operator's license | 0011| pursuant to the Gaming Control Act. | 0012| Section 29. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0013| SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES-- | 0014| DAYS AND HOURS OF OPERATIONS.-- | 0015| A. A racetrack licensed by the state racing | 0016| commission pursuant to the Horse Racing Act to conduct live | 0017| horse races or simulcast races may be issued a gaming operator's | 0018| license to operate gaming machines on its premises where live | 0019| racing is conducted. | 0020| B. A racetrack's gaming operator's license shall | 0021| automatically become void if: | 0022| (1) the racetrack no longer holds an active | 0023| license to conduct pari-mutuel wagering; or | 0024| (2) the racetrack fails to maintain a minimum | 0025| of three live race days a week with at least nine live races on | 0001| each race day during its licensed race meet in the 1997 calendar | 0002| year and in the 1998 and subsequent calendar years, four live | 0003| race days a week with at least nine live races on each race day | 0004| during its licensed race meet. | 0005| C. A gaming operator licensee that is a racetrack | 0006| may have not more than three hundred licensed gaming machines, | 0007| but the number of gaming machines to be located on the | 0008| licensee's premises shall be specified in the gaming operator's | 0009| license. | 0010| D. Gaming machines on a racetrack gaming operator | 0011| licensee's premises may be played only on days when the | 0012| racetrack is either conducting live horse races or simulcasting | 0013| horse race meets and during times established by regulation of | 0014| the board, but the regulations shall provide for a maximum of | 0015| twelve hours a day. | 0016| E. Alcoholic beverages shall not be sold, served, | 0017| delivered or consumed in the area restricted pursuant to | 0018| Subsection F of Section 28 of the Gaming Control Act. | 0019| Section 30. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0020| SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING | 0021| MACHINES--DAYS AND HOURS OF OPERATIONS.-- | 0022| A. A nonprofit organization may be issued a gaming | 0023| operator's license to operate licensed gaming machines on its | 0024| premises to be played only by active and auxiliary members. | 0025| B. No more than fifteen gaming machines may be | 0001| offered for play on the premises of a nonprofit organization | 0002| gaming operator licensee. | 0003| C. No gaming machine on the premises of a nonprofit | 0004| organization gaming operator licensee may award a prize that | 0005| exceeds four thousand dollars ($4,000). | 0006| D. Gaming machines may be played on the premises of | 0007| a nonprofit organization gaming operator licensee from 12:00 | 0008| noon until 12:00 midnight every day. | 0009| E. Alcoholic beverages shall not be sold, served, | 0010| delivered or consumed in the area where gaming machines are | 0011| installed and operated on the premises of a nonprofit | 0012| organization gaming operator licensee. | 0013| Section 31. [NEW MATERIAL] LICENSING OF MANUFACTURERS | 0014| OF GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0015| A. It is unlawful for any person to operate, carry | 0016| on, conduct or maintain any form of manufacturing of any gaming | 0017| device or associated equipment for use or play in New Mexico or | 0018| any form of manufacturing of any gaming device or associated | 0019| equipment in New Mexico for use or play outside of New Mexico | 0020| without first obtaining and maintaining a manufacturer's | 0021| license. | 0022| B. If the board revokes a manufacturer's license: | 0023| (1) no new gaming device manufactured by the | 0024| manufacturer may be approved for use in this state; | 0025| (2) any previously approved gaming device | 0001| manufactured by the manufacturer is subject to revocation of | 0002| approval if the reasons for the revocation of the license also | 0003| apply to that gaming device; | 0004| (3) no new gaming device or associated | 0005| equipment made by the manufacturer may be distributed, sold, | 0006| transferred or offered for use or play in New Mexico; and | 0007| (4) any association or agreement between the | 0008| manufacturer and a distributor licensee or gaming operator | 0009| licensee in New Mexico shall be terminated. | 0010| C. An agreement between a manufacturer licensee and | 0011| a distributor licensee or a gaming operator licensee in New | 0012| Mexico shall be deemed to include a provision for its | 0013| termination without liability for the termination on the part of | 0014| either party upon a finding by the board that either party is | 0015| unsuitable. Failure to include that condition in the agreement | 0016| is not a defense in any action brought pursuant to this section | 0017| to terminate the agreement. | 0018| D. A gaming device shall not be used and offered for | 0019| play by a gaming operator licensee unless it is identical in all | 0020| material aspects to a model that has been specifically tested | 0021| and approved by: | 0022| (1) the board; | 0023| (2) a laboratory selected by the board; or | 0024| (3) gaming officials in Nevada or New Jersey | 0025| after January 1, 1990. | 0001| E. The board may inspect every gaming device that is | 0002| manufactured: | 0003| (1) for use in New Mexico; or | 0004| (2) in New Mexico for use outside of New | 0005| Mexico. | 0006| F. The board may inspect every gaming device that is | 0007| offered for play within New Mexico by a gaming operator | 0008| licensee. | 0009| G. The board may inspect all associated equipment | 0010| that is manufactured and sold for use in New Mexico or | 0011| manufactured in New Mexico for use outside of New Mexico. | 0012| H. In addition to all other fees and charges imposed | 0013| pursuant to the Gaming Control Act, the board may determine, | 0014| charge and collect from each manufacturer an inspection fee, | 0015| which shall not exceed the actual cost of inspection and | 0016| investigation. | 0017| I. The board may prohibit the use of a gaming device | 0018| by a gaming operator licensee if it finds that the gaming device | 0019| does not meet the requirements of this section. | 0020| Section 32. [NEW MATERIAL] LICENSING OF DISTRIBUTORS | 0021| OF GAMING DEVICES.-- | 0022| A. It is unlawful for any person to operate, carry | 0023| on, conduct or maintain any form of distribution of any gaming | 0024| device for use or play in New Mexico without first obtaining and | 0025| maintaining a distributor's or manufacturer's license. | 0001| B. If the board revokes a distributor's license: | 0002| (1) no new gaming device distributed by the | 0003| person may be approved; | 0004| (2) any previously approved gaming device | 0005| distributed by the distributor is subject to revocation of | 0006| approval if the reasons for the revocation of the license also | 0007| apply to that gaming device; | 0008| (3) no new gaming device or associated | 0009| equipment distributed by the distributor may be distributed, | 0010| sold, transferred or offered for use or play in New Mexico; and | 0011| (4) any association or agreement between the | 0012| distributor and a gaming operator licensee shall be terminated. | 0013| An agreement between a distributor licensee and a gaming | 0014| operator licensee shall be deemed to include a provision for its | 0015| termination without liability on the part of either party upon a | 0016| finding by the board that the other party is unsuitable. | 0017| Failure to include that condition in the agreement is not a | 0018| defense in any action brought pursuant to this section to | 0019| terminate the agreement. | 0020| C. The board may inspect every gaming device that is | 0021| distributed for use in New Mexico. | 0022| D. In addition to all other fees and charges imposed | 0023| by the Gaming Control Act, the board may determine, charge and | 0024| collect from each distributor an inspection fee, which shall not | 0025| exceed the actual cost of inspection and investigation. | 0001| Section 33. [NEW MATERIAL] SUITABILITY OF CERTAIN | 0002| PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS WITH | 0003| GAMING OPERATORS--TERMINATION OF ASSOCIATION.-- | 0004| A. The board may determine the suitability of any | 0005| person who furnishes services or property to a gaming operator | 0006| licensee under any arrangement pursuant to which the person | 0007| receives compensation based on earnings, profits or receipts | 0008| from gaming. The board may require the person to comply with | 0009| the requirements of the Gaming Control Act and with the | 0010| regulations of the board. If the board determines that the | 0011| person is unsuitable, it may require the arrangement to be | 0012| terminated. | 0013| B. The board may require a person to apply for a | 0014| finding of suitability to be associated with a gaming operator | 0015| licensee if the person: | 0016| (1) does business on the premises of a gaming | 0017| establishment; or | 0018| (2) provides any goods or services to a gaming | 0019| operator licensee for compensation that the board finds to be | 0020| grossly disproportionate to the value of the goods or services. | 0021| C. If the board determines that a person is | 0022| unsuitable to be associated with a gaming operator licensee, the | 0023| association shall be terminated. Any agreement that entitles a | 0024| business other than gaming to be conducted on the premises of a | 0025| gaming establishment, or entitles a person other than a licensee | 0001| to conduct business with the gaming operator licensee, is | 0002| subject to termination upon a finding of unsuitability of the | 0003| person seeking association with a gaming operator licensee. | 0004| Every agreement shall be deemed to include a provision for its | 0005| termination without liability on the part of the gaming operator | 0006| licensee upon a finding by the board of the unsuitability of the | 0007| person seeking or having an association with the gaming operator | 0008| licensee. Failure to include that condition in the agreement is | 0009| not a defense in any action brought pursuant to this section to | 0010| terminate the agreement. If the application is not presented to | 0011| the board within thirty days following demand or the unsuitable | 0012| association is not terminated, the board may pursue any remedy | 0013| or combination of remedies provided in the Gaming Control Act. | 0014| Section 34. [NEW MATERIAL] REASONS FOR INVESTIGATIONS | 0015| BY BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT HEARING EXAMINER- | 0016| -REVIEW BY BOARD--ORDER OF BOARD.-- | 0017| A. The board shall make appropriate investigations | 0018| to: | 0019| (1) determine whether there has been any | 0020| violation of the Gaming Control Act or of any regulations | 0021| adopted pursuant to that act; | 0022| (2) determine any facts, conditions, practices | 0023| or matters that it deems necessary or proper to aid in the | 0024| enforcement of the Gaming Control Act or regulations adopted | 0025| pursuant to that act; | 0001| (3) aid in adopting regulations; | 0002| (4) secure information as a basis for | 0003| recommending legislation relating to the Gaming Control Act; or | 0004| (5) determine whether a licensee is able to | 0005| meet its financial obligations, including all financial | 0006| obligations imposed by the Gaming Control Act, as they become | 0007| due. | 0008| B. If after an investigation the board is satisfied | 0009| that a license, registration, finding of suitability or prior | 0010| approval by the board of any transaction for which approval was | 0011| required by the provisions of the Gaming Control Act should be | 0012| limited, conditioned, suspended or revoked, or that a fine | 0013| should be levied, the board shall initiate a hearing by filing a | 0014| complaint and transmitting a copy of it to the licensee, | 0015| together with a summary of evidence in its possession bearing on | 0016| the matter and the transcript of testimony at any investigative | 0017| hearing conducted by or on behalf of the board. The complaint | 0018| shall be a written statement of charges that sets forth in | 0019| ordinary and concise language the acts or omissions with which | 0020| the respondent is charged. It shall specify the statutes or | 0021| regulations that the respondent is alleged to have violated but | 0022| shall not consist merely of charges raised in the language of | 0023| the statutes or regulations. The summary of the evidence shall | 0024| be confidential and made available only to the respondent until | 0025| such time as it is offered into evidence at any public hearing | 0001| on the matter. | 0002| C. The respondent shall file an answer within thirty | 0003| days after service of the complaint. | 0004| D. Upon filing the complaint the board shall appoint | 0005| a hearing examiner to conduct further proceedings. | 0006| E. The hearing examiner shall conduct proceedings in | 0007| accordance with the Gaming Control Act and the regulations | 0008| adopted by the board. At the conclusion of the proceedings, the | 0009| hearing examiner may recommend that the board take any | 0010| appropriate action, including revocation, suspension, limitation | 0011| or conditioning of a license or imposition of a fine not to | 0012| exceed fifty thousand dollars ($50,000) for each violation or | 0013| any combination or all of the foregoing actions. | 0014| F. The hearing examiner shall prepare a written | 0015| decision containing his recommendation to the board and shall | 0016| serve it on all parties. Any respondent who disagrees with the | 0017| hearing examiner's recommendation may request the board, within | 0018| ten days of service of the recommendation, to review the | 0019| recommendation. | 0020| G. Upon proper request, the board shall review the | 0021| recommendation. The board may remand the case to the hearing | 0022| examiner for the presentation of additional evidence upon a | 0023| showing of good cause why such evidence could not have been | 0024| presented at the previous hearing. | 0025| H. The board shall by a majority vote accept, reject | 0001| or modify the recommendation. | 0002| I. If the board limits, conditions, suspends or | 0003| revokes any license or imposes a fine or limits, conditions, | 0004| suspends or revokes any registration, finding of suitability or | 0005| prior approval, it shall issue a written order specifying its | 0006| action. | 0007| J. The board's order is effective unless and until | 0008| reversed upon judicial review, except that the board may stay | 0009| its order pending a rehearing or judicial review upon such terms | 0010| and conditions as it deems proper. | 0011| Section 35. [NEW MATERIAL] EMERGENCY ORDERS OF | 0012| BOARD.--The board may issue an emergency order for suspension, | 0013| limitation or conditioning of a license, registration, finding | 0014| of suitability or work permit or may issue an emergency order | 0015| requiring a gaming operator licensee to exclude an individual | 0016| licensee from the premises of the gaming operator licensee's | 0017| gaming establishment or not to pay an individual licensee any | 0018| remuneration for services or any profits, income or accruals on | 0019| his investment in the licensed gaming establishment in the | 0020| following manner: | 0021| A. an emergency order may be issued only when the | 0022| board believes that: | 0023| (1) a licensee has willfully failed to report, | 0024| pay or truthfully account for and pay over any fee imposed by | 0025| the provisions of the Gaming Control Act or willfully attempted | 0001| in any manner to evade or defeat any fee or payment thereof; | 0002| (2) a licensee or gaming employee has cheated | 0003| at a game; or | 0004| (3) the emergency order is necessary for the | 0005| immediate preservation of the public peace, health, safety, | 0006| morals, good order or general welfare; | 0007| B. the emergency order shall set forth the grounds | 0008| upon which it is issued, including a statement of facts | 0009| constituting the alleged emergency necessitating such action; | 0010| C. the emergency order is effective immediately upon | 0011| issuance and service upon the licensee or resident agent of the | 0012| licensee or gaming employee or, in cases involving registration | 0013| or findings of suitability, upon issuance and service upon the | 0014| person or entity involved or resident agent of the entity | 0015| involved; the emergency order may suspend, limit, condition or | 0016| take other action in relation to the license of one or more | 0017| persons in an operation without affecting other individual | 0018| licensees or the gaming operator licensee. The emergency order | 0019| remains effective until further order of the board or final | 0020| disposition of the case; and | 0021| D. within five days after issuance of an emergency | 0022| order, the board shall cause a complaint to be filed and served | 0023| upon the person or entity involved; thereafter, the person or | 0024| entity against whom the emergency order has been issued and | 0025| served is entitled to a hearing before the board and to judicial | 0001| review of the decision and order of the board in accordance with | 0002| the provisions of the board's regulations. | 0003| Section 36. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0004| CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.-- | 0005| A. The board shall by regulation provide for the | 0006| establishment of a list of persons who are to be excluded or | 0007| ejected from a gaming establishment. The list may include any | 0008| person whose presence in the gaming establishment is determined | 0009| by the board to pose a threat to the public interest or licensed | 0010| gaming activities. | 0011| B. In making the determination in Subsection A of | 0012| this section, the board may consider a: | 0013| (1) prior conviction for a crime that is a | 0014| felony under state or federal law, a crime involving moral | 0015| turpitude or a violation of the gaming laws of any jurisdiction; | 0016| (2) violation or conspiracy to violate the | 0017| provisions of the Gaming Control Act relating to: | 0018| (a) the failure to disclose an interest in | 0019| a gaming activity for which the person must obtain a license; or | 0020| (b) willful evasion of fees or taxes; | 0021| (3) notorious or unsavory reputation that would | 0022| adversely affect public confidence and trust that the gaming | 0023| industry is free from criminal or corruptive influences; or | 0024| (4) written order of any other governmental | 0025| agency in this state or any other state that authorizes the | 0001| exclusion or ejection of the person from an establishment at | 0002| which gaming is conducted. | 0003| C. A gaming operator licensee has the right, without | 0004| a list established by the board, to exclude or eject a person | 0005| from its gaming establishment who poses a threat to the public | 0006| interest or for any business reason. | 0007| D. Race, color, creed, national origin or ancestry, | 0008| age, disability or sex shall not be grounds for placing the name | 0009| of a person on the list or for exclusion or ejection under | 0010| Subsection A or C of this section. | 0011| Section 37. [NEW MATERIAL] INTERNAL CONTROL SYSTEMS.-- | 0012| A. Each gaming operator licensee shall adopt | 0013| internal control systems that shall include provisions for: | 0014| (1) safeguarding its assets and revenues, | 0015| especially the recording of cash and evidences of indebtedness; | 0016| (2) making and maintaining reliable records, | 0017| accounts and reports of transactions, operations and events, | 0018| including reports to the board; and | 0019| (3) a system by which the amount wagered on | 0020| each gaming machine and the amount paid out by each gaming | 0021| machine is recorded on a daily basis, which results may be | 0022| obtained by the board by appropriate means as described in | 0023| regulations adopted by the board; all manufacturers are required | 0024| to have such a system available for gaming operators for the | 0025| gaming machines that it supplies for use in New Mexico, and all | 0001| distributors shall make such a system available to gaming | 0002| operators. | 0003| B. The internal control system shall be designed to | 0004| reasonably ensure that: | 0005| (1) assets are safeguarded; | 0006| (2) financial records are accurate and | 0007| reliable; | 0008| (3) transactions are performed only in | 0009| accordance with management's general or specific authorization; | 0010| (4) transactions are recorded adequately to | 0011| permit proper reporting of gaming revenue and of fees and taxes | 0012| and to maintain accountability of assets; | 0013| (5) access to assets is allowed only in | 0014| accordance with management's specific authorization; | 0015| (6) recorded accountability for assets is | 0016| compared with actual assets at reasonable intervals and | 0017| appropriate action is taken with respect to any discrepancies; | 0018| and | 0019| (7) functions, duties and responsibilities are | 0020| appropriately segregated and performed in accordance with sound | 0021| accounting and management practices by competent, qualified | 0022| personnel. | 0023| C. A gaming operator licensee and an applicant for a | 0024| gaming operator's license shall describe, in the manner the | 0025| board may approve or require, its administrative and accounting | 0001| procedures in detail in a written system of internal control. A | 0002| gaming operator licensee and an applicant for a gaming | 0003| operator's license shall submit a copy of its written system to | 0004| the board. Each written system shall include: | 0005| (1) an organizational chart depicting | 0006| appropriate segregation of functions and responsibilities; | 0007| (2) a description of the duties and | 0008| responsibilities of each position shown on the organizational | 0009| chart; | 0010| (3) a detailed, narrative description of the | 0011| administrative and accounting procedures designed to satisfy the | 0012| requirements of Subsection A of this section; | 0013| (4) a written statement signed by the | 0014| licensee's chief financial officer and either the licensee's | 0015| chief executive officer or a licensed owner attesting that the | 0016| system satisfies the requirements of this section; | 0017| (5) if the written system is submitted by an | 0018| applicant, a letter from an independent certified public | 0019| accountant stating that the applicant's written system has been | 0020| reviewed by the accountant and complies with the requirements of | 0021| this section; and | 0022| (6) other items as the board may require. | 0023| D. The board shall adopt and publish minimum | 0024| standards for internal control procedures. | 0025| Section 38. [NEW MATERIAL] GAMING EMPLOYEES--ISSUANCE | 0001| OF WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0002| A. A person shall not be employed as a gaming | 0003| employee unless the person holds a valid work permit issued by | 0004| the board. | 0005| B. A work permit shall be issued and may be revoked | 0006| by the board as provided in regulations adopted by the board. | 0007| C. Any person whose work permit has been denied or | 0008| revoked may seek judicial review. | 0009| Section 39. [NEW MATERIAL] AGE REQUIREMENT FOR PATRONS | 0010| AND GAMING EMPLOYEES.--A person under the age of twenty-one | 0011| years shall not: | 0012| A. play, be allowed to play, place wagers on or | 0013| collect winnings from, whether personally or through an agent, | 0014| any game authorized or offered to play pursuant to the Gaming | 0015| Control Act; or | 0016| B. be employed as a gaming employee. | 0017| Section 40. [NEW MATERIAL] CALCULATION OF NET TAKE-- | 0018| CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take from | 0019| gaming machines, the actual cost to the licensee of any personal | 0020| property distributed to a patron as the result of a legitimate | 0021| wager may be deducted as a loss, except for travel expenses, | 0022| food, refreshments, lodging or services. For the purposes of | 0023| this section, "as the result of a legitimate wager" means that | 0024| the patron must make a wager prior to receiving the personal | 0025| property, regardless of whether the receipt of the personal | 0001| property is dependent on the outcome of the wager. | 0002| Section 41. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0003| LICENSE FEES.--A political subdivision of the state shall not | 0004| impose a license fee or tax on any licensee licensed pursuant to | 0005| the Gaming Control Act except for the imposition of property | 0006| taxes and the distribution provided for and determined pursuant | 0007| to Subsection C of Section 60-1-15 and Section 10-1-15.2 NMSA | 0008| 1978. | 0009| Section 42. [NEW MATERIAL] USE OF CHIPS, TOKENS OR | 0010| LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be | 0011| conducted with chips, tokens or other similar objects approved | 0012| by the board or with the legal currency of the United States. | 0013| Section 43. [NEW MATERIAL] COMMUNICATION OR DOCUMENT | 0014| OF APPLICANT OR LICENSEE ABSOLUTELY CONFIDENTIAL-- | 0015| CONFIDENTIALITY NOT WAIVED--DISCLOSURE OF CONFIDENTIAL | 0016| INFORMATION PROHIBITED.-- | 0017| A. Any communication or document of an applicant or | 0018| licensee is confidential and does not impose liability for | 0019| defamation or constitute a ground for recovery in any civil | 0020| action if it is required by: | 0021| (1) law or the regulations of the board; or | 0022| (2) a subpoena issued by the board to be made | 0023| or transmitted to the board. | 0024| B. The confidentiality created pursuant to | 0025| Subsection A of this section is not waived or lost because the | 0001| document or communication is disclosed to the board. | 0002| C. Notwithstanding the powers granted to the board | 0003| by the Gaming Control Act, the board: | 0004| (1) may release or disclose any confidential | 0005| information, documents or communications provided by an | 0006| applicant or licensee only with the prior written consent of the | 0007| applicant or licensee or pursuant to a lawful court order after | 0008| timely notice of the proceedings has been given to the applicant | 0009| or licensee; | 0010| (2) shall maintain all confidential | 0011| information, documents and communications in a secure place | 0012| accessible only to members of the board; and | 0013| (3) shall adopt procedures and regulations to | 0014| protect the confidentiality of information, documents and | 0015| communications provided by an applicant or licensee. | 0016| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0017| CONFIDENTIAL INFORMATION.--An application to a court for an | 0018| order requiring the board to release any information declared by | 0019| law to be confidential shall be made only by petition in | 0020| district court. A hearing shall be held on the petition not | 0021| less than ten days and not more than twenty days after the date | 0022| of service of the petition on the board, the attorney general | 0023| and all persons who may be affected by the entry of that order. | 0024| A copy of the petition, all papers filed in support of it and a | 0025| notice of hearing shall be served. | 0001| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0002| SYSTEM.--The board shall develop and operate a central system | 0003| into which all licensed gaming machines are connected. The | 0004| central system shall be capable of: | 0005| A. monitoring continuously, retrieving and auditing | 0006| the operations, financial data and program information of the | 0007| 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 board; | 0011| C. communicating, through program modifications or | 0012| other means equally effective, with all gaming machines licensed | 0013| by the board; | 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 and the | 0019| gaming operator licensee and allowing for program modifications | 0020| and system updating at a reasonable cost. | 0021| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.--To | 0022| be eligible for licensure, each gaming machine shall meet all | 0023| specifications established by regulations of the board 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 board to be undesirable; | 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 executive director until he 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, all credits played for additional games and all | 0013| credits won by players; | 0014| E. be capable of printing out, at the request of the | 0015| executive director, readings on the electronic meters of the | 0016| machine; | 0017| F. for machines that do not dispense coins or tokens | 0018| directly to players, be capable of printing a ticket voucher | 0019| stating the value of a cash prize won by the player at the | 0020| completion of each game, the date and time of day the game was | 0021| played in a twenty-four-hour format showing hours and minutes, | 0022| the machine serial number, the sequential number of the ticket | 0023| voucher and an encrypted validation number for determining the | 0024| validity of a winning ticket voucher; | 0025| G. be capable of being linked to the board's central | 0001| system for the purpose of being monitored continuously as | 0002| required by the board; | 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. meet the standards and specifications set by laws | 0007| or regulations of the states of Nevada and New Jersey for gaming | 0008| machines, whichever are more stringent; | 0009| J. offer only games authorized and examined by the | 0010| board; and | 0011| K. display the gaming machine license issued for | 0012| that machine in an easily accessible place, before and during | 0013| the time that a machine is available for use. | 0014| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0015| ODDS.--The odds of winning on each gaming machine shall be | 0016| posted on or near each gaming machine. The board shall provide | 0017| the manner in which the odds shall be determined and posted by | 0018| regulation. | 0019| Section 48. [NEW MATERIAL] EXAMINATION OF GAMING | 0020| DEVICES--COST ALLOCATION.-- | 0021| A. The board shall examine prototypes of gaming | 0022| devices of manufacturers seeking a license as required. | 0023| B. The board by regulation shall require a | 0024| manufacturer to pay the anticipated actual costs of the | 0025| examination of a gaming device in advance and, after the | 0001| completion of the examination, shall refund overpayments or | 0002| charge and collect amounts sufficient to reimburse the board for | 0003| underpayment of actual costs. | 0004| C. The board may contract for the examination of | 0005| gaming devices to meet the requirements of this section. | 0006| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION-- | 0007| ADMINISTRATION.-- | 0008| A. An excise tax is imposed on the privilege of | 0009| engaging in gaming activities in the state. This tax shall be | 0010| known as the "gaming tax". | 0011| B. The gaming tax is an amount equal to ten percent | 0012| of the gross receipts of manufacturer licensees from the sale, | 0013| lease or other transfer of gaming devices in or into the state, | 0014| except receipts of a manufacturer from the sale, lease or other | 0015| transfer to a licensed distributor for subsequent sale or lease | 0016| may be excluded from gross receipts; ten percent of the gross | 0017| receipts of distributor licensees from the sale, lease or other | 0018| transfer of gaming devices in or into the state; and twenty-five | 0019| percent of the net take of every gaming operator licensee. | 0020| C. The gaming tax imposed on a licensee is in lieu | 0021| of all state and local gross receipts taxes on that portion of | 0022| the licensee's gross receipts attributable to gaming activities. | 0023| D. The gaming tax shall be administered and | 0024| collected by the taxation and revenue department in cooperation | 0025| with the board. The provisions of the Tax Administration Act | 0001| apply to the collection and administration of the tax. | 0002| E. In addition to the gaming tax, a gaming operator | 0003| licensee that is a racetrack shall pay twenty percent of the net | 0004| take to purses to be distributed in accordance with regulations | 0005| adopted by the state racing commission. A racetrack gaming | 0006| operator licensee shall spend no less than one-fourth of one | 0007| percent of the net take of its gaming machines to fund or | 0008| support programs for the treatment and assistance of compulsive | 0009| gamblers. | 0010| F. A nonprofit gaming operator licensee shall | 0011| distribute at least eighty-eight percent of the balance of net | 0012| take, after payment of the gaming tax and any income taxes, for | 0013| charitable or educational purposes. | 0014| G. The taxation and revenue department shall deduct | 0015| an amount equal to three percent of the gaming tax collected as | 0016| a charge for the administrative costs of collection, which | 0017| amount is appropriated to the taxation and revenue department | 0018| for collection and administration of the tax. | 0019| Section 50. [NEW MATERIAL] CIVIL ACTIONS TO RESTRAIN | 0020| VIOLATIONS OF GAMING CONTROL ACT.-- | 0021| A. The attorney general, at the request of the | 0022| board, may institute a civil action in any court of this state | 0023| against any person to enjoin a violation of a prohibitory | 0024| provision of the Gaming Control Act. | 0025| B. An action brought against a person pursuant to | 0001| this section shall not preclude a criminal action or | 0002| administrative proceeding against that person. | 0003| Section 51. [NEW MATERIAL] TESTIMONIAL IMMUNITY.-- | 0004| A. The board may order a person to answer a question | 0005| or produce evidence and confer immunity pursuant to this | 0006| section. If, in the course of an investigation or hearing | 0007| conducted pursuant to the Gaming Control Act, a person refuses | 0008| to answer a question or produce evidence on the ground that he | 0009| will be exposed to criminal prosecution by doing so, then the | 0010| board may by approval of three members, after the written | 0011| approval of the attorney general, issue an order to answer or to | 0012| produce evidence with immunity. | 0013| B. If a person complies with an order issued | 0014| pursuant to Subsection A of this section, he shall be immune | 0015| from having a responsive answer given or responsive evidence | 0016| produced, or evidence derived from either, used to expose him to | 0017| criminal prosecution, except that the person may be prosecuted | 0018| for any perjury committed in the answer or production of | 0019| evidence and may also be prosecuted for contempt for failing to | 0020| act in accordance with the order of the board. An answer given | 0021| or evidence produced pursuant to the grant of immunity | 0022| authorized by this section may be used against the person | 0023| granted immunity in a prosecution of the person for perjury or a | 0024| proceeding against him for contempt. | 0025| Section 52. [NEW MATERIAL] CRIME--MANIPULATION OF | 0001| GAMING DEVICE WITH INTENT TO CHEAT.--A person who manipulates, | 0002| with the intent to cheat, any component of a gaming device in a | 0003| manner contrary to the designed and normal operational purpose | 0004| of the component, including varying the pull of the handle of a | 0005| slot machine with knowledge that the manipulation affects the | 0006| outcome of the game or with knowledge of any event that affects | 0007| the outcome of the game, is guilty of a fourth degree felony and | 0008| shall be sentenced pursuant to the provisions of Section 31-18- | 0009| 15 NMSA 1978. | 0010| Section 53. [NEW MATERIAL] CRIME--USE OF COUNTERFEIT | 0011| OR UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN | 0012| DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0013| A. A person who, in playing any game designed to be | 0014| played with, to receive or to be operated by tokens approved by | 0015| the board or by lawful currency of the United States, knowingly | 0016| uses tokens other than those approved by the board, uses | 0017| currency that is not lawful currency of the United States or | 0018| uses currency not of the same denomination as the currency | 0019| intended to be used in that game is guilty of a third degree | 0020| felony and shall be sentenced pursuant to the provisions of | 0021| Section 31-18-15 NMSA 1978. | 0022| B. A person who knowingly has on his person or in | 0023| his possession within a gaming establishment any device intended | 0024| to be used by him to violate the provisions of the Gaming | 0025| Control Act is guilty of a third degree felony and shall be | 0001| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0002| 1978. | 0003| C. A person, other than a duly authorized employee | 0004| of a gaming operator acting in furtherance of his employment | 0005| within a gaming establishment, who knowingly has on his person | 0006| or in his possession within a gaming establishment any key or | 0007| device known by him to have been designed for the purpose of and | 0008| suitable for opening, entering or affecting the operation of any | 0009| game, dropbox or any electronic or mechanical device connected | 0010| to the game or dropbox or for removing money or other contents | 0011| from them is guilty of a third degree felony and shall be | 0012| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0013| 1978. | 0014| D. A person who knowingly and with intent to use | 0015| them for cheating has on his person or in his possession any | 0016| paraphernalia for manufacturing slugs is guilty of a third | 0017| degree felony and shall be sentenced pursuant to the provisions | 0018| of Section 31-18-15 NMSA 1978. As used in this subsection, | 0019| "paraphernalia for manufacturing slugs" means the equipment, | 0020| products and materials that are intended for use or designed for | 0021| use in manufacturing, producing, fabricating, preparing, | 0022| testing, analyzing, packaging, storing or concealing a | 0023| counterfeit facsimile of tokens approved by the board or a | 0024| lawful coin of the United States, the use of which is unlawful | 0025| pursuant to the Gaming Control Act. The term includes: | 0001| (1) lead or lead alloy; | 0002| (2) molds, forms or similar equipment capable | 0003| of producing a likeness of a gaming token or coin; | 0004| (3) melting pots or other receptacles; | 0005| (4) torches; and | 0006| (5) tongs, trimming tools or other similar | 0007| equipment. | 0008| E. Possession of more than two items of the | 0009| equipment, products or material described in Subsection D of | 0010| this section permits a rebuttable inference that the possessor | 0011| intended to use them for cheating. | 0012| Section 54. [NEW MATERIAL] CRIME--CHEATING.--A person | 0013| who knowingly cheats at any game is guilty of a fourth degree | 0014| felony and upon conviction shall be sentenced pursuant to the | 0015| provisions of Section 31-18-15 NMSA 1978. | 0016| Section 55. [NEW MATERIAL] CRIME--POSSESSION OF GAMING | 0017| DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A | 0018| person who knowingly possesses any gaming device that has been | 0019| manufactured, sold or distributed in violation of the Gaming | 0020| Control Act is guilty of a fourth degree felony and shall be | 0021| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0022| 1978. | 0023| Section 56. [NEW MATERIAL] CRIME--REPORTING AND RECORD | 0024| VIOLATIONS--PENALTY.--A person who, in an application, book or | 0025| record required to be maintained by the Gaming Control Act or by | 0001| a regulation adopted under that act or in a report required to | 0002| be submitted by that act or a regulation adopted under that act, | 0003| knowingly makes a statement or entry that is false or misleading | 0004| or fails to maintain or make an entry the person knows is | 0005| required to be maintained or made is guilty of a fourth degree | 0006| felony and shall be sentenced pursuant to the provisions of | 0007| Section 31-18-15 NMSA 1978. | 0008| Section 57. [NEW MATERIAL] CRIME--UNLAWFUL | 0009| MANUFACTURE, SALE, DISTRIBUTION, MARKING, ALTERING OR | 0010| MODIFICATION OF DEVICES ASSOCIATED WITH GAMING--UNLAWFUL | 0011| INSTRUCTION--PENALTY.-- | 0012| A. A person who manufactures, sells or distributes a | 0013| device that is intended by him to be used to violate any | 0014| provision of the Gaming Control Act is guilty of a fourth degree | 0015| felony and shall be sentenced pursuant to the provisions of | 0016| Section 31-18-15 NMSA 1978. | 0017| B. A person who marks, alters or otherwise modifies | 0018| any gaming device in a manner that affects the result of a wager | 0019| by determining win or loss or alters the normal criteria of | 0020| random selection that affects the operation of a game or that | 0021| determines the outcome of a game is guilty of a fourth degree | 0022| felony and shall be sentenced pursuant to the provisions of | 0023| Section 31-18-15 NMSA 1978. | 0024| Section 58. [NEW MATERIAL] UNDERAGE GAMING--PENALTY | 0025| FOR PERMITTING OR PARTICIPATION.-- | 0001| A. A person who knowingly permits an individual who | 0002| the person knows is younger than twenty-one years of age to | 0003| participate in gaming is guilty of a fourth degree felony and | 0004| shall be sentenced pursuant to the provisions of Section | 0005| 31-18-15 NMSA 1978. | 0006| B. An individual who participates in gaming when he | 0007| is younger than twenty-one years of age at the time of | 0008| participation is guilty of a misdemeanor and shall be sentenced | 0009| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0010| Section 59. [NEW MATERIAL] CRIME--GENERAL PENALTIES | 0011| FOR VIOLATION OF ACT.--A person who willfully violates, attempts | 0012| to violate or conspires to violate any of the provisions of the | 0013| Gaming Control Act specifying prohibited acts, the | 0014| classification of which is not specifically stated in that act, | 0015| is guilty of a fourth degree felony and shall be sentenced | 0016| pursuant to the provisions of Section 31-18-15 NMSA 1978. | 0017| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING | 0018| OF A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON | 0019| LIABILITY--POSTING OF NOTICE.-- | 0020| A. A gaming operator licensee or its officers, | 0021| employees or agents may question a person in its gaming | 0022| establishment suspected of violating any of the provisions of | 0023| the Gaming Control Act. No gaming operator licensee or any of | 0024| its officers, employees or agents is criminally or civilly | 0025| liable: | 0001| (1) on account of any such questioning; or | 0002| (2) for reporting to the board or law | 0003| enforcement authorities the person suspected of the violation. | 0004| B. A gaming operator licensee or any of its | 0005| officers, employees or agents who has reasonable cause for | 0006| believing that there has been a violation of the Gaming Control | 0007| Act in the gaming establishment by a person may detain that | 0008| person in the gaming establishment in a reasonable manner and | 0009| for a reasonable length of time. Such a detention does not | 0010| render the gaming operator licensee or his officers, employees | 0011| or agents criminally or civilly liable unless it is established | 0012| by clear and convincing evidence detention was unreasonable | 0013| under the circumstances. | 0014| C. No gaming operator licensee or its officers, | 0015| employees or agents are entitled to the immunity from liability | 0016| provided for in Subsection B of this section unless there is | 0017| displayed in a conspicuous place in the gaming establishment a | 0018| notice in boldface type clearly legible and in substantially | 0019| this form: | 0020| "Any gaming operator licensee or any of his officers, | 0021| employees or agents who have reasonable cause for | 0022| believing that any person has violated any provision | 0023| of the Gaming Control Act prohibiting cheating in | 0024| gaming may detain that person in the establishment.". | 0025| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0001| BOARD ACTION.-- | 0002| A. Any person aggrieved by an action taken by the | 0003| board or one of its agents may request and receive a hearing for | 0004| the purpose of reviewing the action. To obtain a hearing the | 0005| aggrieved person shall file a request for hearing with the board | 0006| within thirty days after the date the action is taken. Failure | 0007| to file the request within the specified time is an irrevocable | 0008| waiver of the right to a hearing, and the action complained of | 0009| shall be final with no further right to review, either | 0010| administratively or by a court. | 0011| B. The board shall adopt procedural regulations to | 0012| govern the procedures to be followed in administrative hearings | 0013| pursuant to the provisions of this section. At a minimum, the | 0014| regulations shall provide: | 0015| (1) for the hearings to be public; | 0016| (2) for the appointment of a hearing officer to | 0017| conduct the hearing and make his recommendation to the board not | 0018| more than ten days after the completion of the hearing; | 0019| (3) procedures for discovery; | 0020| (4) assurance that procedural due process | 0021| requirements are satisfied; | 0022| (5) for the maintenance of a record of the | 0023| hearing proceedings and assessment of costs of any transcription | 0024| of testimony that is required for judicial review purposes; and | 0025| (6) for the hearing to be held in Santa Fe for | 0001| enforcement hearings and hearings on actions of statewide | 0002| application, and to be held in the place or area affected for | 0003| enforcement hearings and hearings on actions of limited local | 0004| concern. | 0005| C. Actions taken by the board after a hearing | 0006| pursuant to the provisions of this section shall be: | 0007| (1) written and shall state the reasons for the | 0008| action; | 0009| (2) made public when taken; | 0010| (3) communicated to all persons who have made a | 0011| written request for notification of the action taken; and | 0012| (4) taken not more than thirty days after the | 0013| submission of the hearing officer's report to the board. | 0014| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0015| ADMINISTRATIVE ACTIONS.-- | 0016| A. Any person adversely affected by an action taken | 0017| by the board after review pursuant to the provisions of Section | 0018| 61 of the Gaming Control Act may appeal the action to the court | 0019| of appeals. The appeal shall be on the record made at the | 0020| hearing. To support his appeal, the appellant shall make | 0021| arrangements with the board for a sufficient number of | 0022| transcripts of the record of the hearing on which the appeal is | 0023| based. The appellant shall pay for the preparation of the | 0024| transcripts. | 0025| B. On appeal, the court of appeals shall set aside | 0001| the administrative action only if it is found to be: | 0002| (1) arbitrary, capricious or an abuse of | 0003| discretion; | 0004| (2) not supported by substantial evidence in | 0005| the whole record; or | 0006| (3) otherwise not in accordance with law. | 0007| Section 63. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0008| Chapter 248, Section 2, as amended) is amended to read: | 0009| "7-1-2. APPLICABILITY.--The Tax Administration Act | 0010| applies to and governs: | 0011| A. the administration and enforcement of the | 0012| following taxes or tax acts as they now exist or may hereafter | 0013| be amended: | 0014| (1) Income Tax Act; | 0015| (2) Withholding Tax Act; | 0016| (3) Gross Receipts and Compensating Tax Act and | 0017| any state gross receipts tax; | 0018| (4) Liquor Excise Tax Act; | 0019| (5) Local Liquor Excise Tax Act; | 0020| ~~[(6) Banking and Financial Corporations Tax~~ | 0021| ~~Act;~~ | 0022| ~~(7)]~~ (6) any municipal local option gross | 0023| receipts tax; | 0024| ~~[(8)]~~ (7) any county local option gross | 0025| receipts 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) Alternative Fuel Tax Act; | 0007| ~~[(13)]~~ (12) Cigarette Tax Act; | 0008| ~~[(14)]~~ (13) Estate Tax Act; | 0009| ~~[(15)]~~ (14) Railroad Car Company Tax Act; | 0010| ~~[(16)]~~ (15) Investment Credit Act; | 0011| ~~[(17)]~~ (16) Corporate Income and Franchise | 0012| Tax Act; | 0013| ~~[(18)]~~ (17) Uniform Division of Income for | 0014| Tax 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 | 0019| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0020| surcharge shall be considered a tax for the purposes of the Tax | 0021| Administration Act; | 0022| B. the administration and enforcement of the | 0023| following taxes, surtaxes, advanced payments or tax acts as they | 0024| now exist or 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 | 0009| Tax Act; | 0010| (10) Copper Production Ad Valorem Tax Act; and | 0011| (11) any advance payment required to be made by | 0012| any act specified in this subsection, which advance payment | 0013| shall be considered a tax for the purposes of the Tax | 0014| Administration Act; | 0015| C. the administration and enforcement of the | 0016| following taxes, surcharges, fees or acts as they now exist or | 0017| may hereafter be amended: | 0018| (1) Weight Distance Tax Act; | 0019| (2) Special Fuels Tax Act; | 0020| (3) the workers' compensation fee authorized by | 0021| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0022| for purposes of the Tax Administration Act; | 0023| (4) Uniform Unclaimed Property Act; | 0024| (5) 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| (6) 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| (7) 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| (8) the gaming tax imposed pursuant to the | 0009| Gaming Control Act; and | 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 the other laws do not conflict with the | 0014| Tax Administration Act." | 0015| Section 64. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0016| Chapter 91, Section 1, as amended) is amended to read: | 0017| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0018| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0019| A. In recognition of the fact that a representative | 0020| government is dependent upon an informed electorate, it is | 0021| declared to be public policy of this state that all persons are | 0022| entitled to the greatest possible information regarding the | 0023| affairs of government and the official acts of those officers | 0024| and employees who represent them. The formation of public | 0025| policy or the conduct of business by vote shall not be conducted | 0001| in closed meeting. All meetings of any public body except the | 0002| legislature and the courts shall be public meetings, and all | 0003| persons so desiring shall be permitted to attend and listen to | 0004| the deliberations and proceedings. Reasonable efforts shall be | 0005| made to accommodate the use of audio and video recording | 0006| devices. | 0007| B. All meetings of a quorum of members of any board, | 0008| commission, administrative adjudicatory body or other | 0009| policymaking body of any state agency, any agency or authority | 0010| of any county, municipality, district or any political | 0011| subdivision, held for the purpose of formulating public policy, | 0012| including the development of personnel policy, rules, | 0013| regulations or ordinances, discussing public business or for the | 0014| purpose of taking any action within the authority of or the | 0015| delegated authority of any board, commission or other | 0016| policymaking body are declared to be public meetings open to the | 0017| public at all times, except as otherwise provided in the | 0018| constitution of New Mexico or the Open Meetings Act. No public | 0019| meeting once convened that is otherwise required to be open | 0020| pursuant to the Open Meetings Act shall be closed or dissolved | 0021| into small groups or committees for the purpose of permitting | 0022| the closing of the meeting. | 0023| C. If otherwise allowed by law or rule of the public | 0024| body, a member of a public body may participate in a meeting of | 0025| the public body by means of a conference telephone or other | 0001| similar communications equipment when it is otherwise difficult | 0002| or impossible for the member to attend the meeting in person, | 0003| provided that each member participating by conference telephone | 0004| can be identified when speaking, all participants are able to | 0005| hear each other at the same time and members of the public | 0006| attending the meeting are able to hear any member of the public | 0007| body who speaks during the meeting. | 0008| D. Any meetings at which the discussion or adoption | 0009| of any proposed resolution, rule, regulation or formal action | 0010| occurs and at which a majority or quorum of the body is in | 0011| attendance, and any closed meetings, shall be held only after | 0012| reasonable notice to the public. The affected body shall | 0013| determine at least annually in a public meeting what notice for | 0014| a public meeting is reasonable when applied to that body. That | 0015| notice shall include broadcast stations licensed by the federal | 0016| communications commission and newspapers of general circulation | 0017| that have provided a written request for such notice. | 0018| E. A public body may recess and reconvene a meeting | 0019| to a day subsequent to that stated in the meeting notice if, | 0020| prior to recessing, the public body specifies the date, time and | 0021| place for continuation of the meeting and, immediately following | 0022| the recessed meeting, posts notice of the date, time and place | 0023| for the reconvened meeting on or near the door of the place | 0024| where the original meeting was held and in at least one other | 0025| location appropriate to provide public notice of the | 0001| continuation of the meeting. Only matters appearing on the | 0002| agenda of the original meeting may be discussed at the | 0003| reconvened meeting. | 0004| F. Meeting notices shall include an agenda | 0005| containing a list of specific items of business to be discussed | 0006| or transacted at the meeting or information on how the public | 0007| may obtain a copy of such an agenda. Except in the case of an | 0008| emergency, the agenda shall be available to the public at least | 0009| twenty-four hours prior to the meeting. Except for emergency | 0010| matters, a public body shall take action only on items appearing | 0011| on the agenda. For purposes of this subsection, an "emergency" | 0012| refers to unforeseen circumstances that, if not addressed | 0013| immediately by the public body, will likely result in injury or | 0014| damage to persons or property or substantial financial loss to | 0015| the public body. | 0016| G. The board, commission or other policymaking body | 0017| shall keep written minutes of all its meetings. The minutes | 0018| shall include at a minimum the date, time and place of the | 0019| meeting, the names of members in attendance and those absent, | 0020| the substance of the proposals considered and a record of any | 0021| decisions and votes taken that show how each member voted. All | 0022| minutes are open to public inspection. Draft minutes shall be | 0023| prepared within ten working days after the meeting and shall be | 0024| approved, amended or disapproved at the next meeting where a | 0025| quorum is present. Minutes shall not become official until | 0001| approved by the policymaking body. | 0002| H. The provisions of Subsections A, B and G of this | 0003| section do not apply to: | 0004| (1) meetings pertaining to issuance, | 0005| suspension, renewal or revocation of a license, except that a | 0006| hearing at which evidence is offered or rebutted shall be open. | 0007| All final actions on the issuance, suspension, renewal or | 0008| revocation of a license shall be taken at an open meeting; | 0009| (2) limited personnel matters; provided that | 0010| for purposes of the Open Meetings Act, "limited personnel | 0011| matters" means the discussion of hiring, promotion, demotion, | 0012| dismissal, assignment or resignation of or the investigation or | 0013| consideration of complaints or charges against any individual | 0014| public employee; provided further that this subsection is not to | 0015| be construed as to exempt final actions on personnel from being | 0016| taken at open public meetings, nor does it preclude an aggrieved | 0017| public employee from demanding a public hearing. Judicial | 0018| candidates interviewed by any commission shall have the right to | 0019| demand an open interview; | 0020| (3) deliberations by a public body in | 0021| connection with an administrative adjudicatory proceeding. For | 0022| purposes of this paragraph, an "administrative adjudicatory | 0023| proceeding" means a proceeding brought by or against a person | 0024| before a public body in which individual legal rights, duties or | 0025| privileges are required by law to be determined by the public | 0001| body after an opportunity for a trial-type hearing. Except as | 0002| otherwise provided in this section, the actual administrative | 0003| adjudicatory proceeding at which evidence is offered or rebutted | 0004| and any final action taken as a result of the proceeding shall | 0005| occur in an open meeting; | 0006| (4) the discussion of personally identifiable | 0007| information about any individual student, unless the student, | 0008| his parent or guardian requests otherwise; | 0009| (5) meetings for the discussion of bargaining | 0010| strategy preliminary to collective bargaining negotiations | 0011| between the policymaking body and a bargaining unit representing | 0012| the employees of that policymaking body and collective | 0013| bargaining sessions at which the policymaking body and the | 0014| representatives of the collective bargaining unit are present; | 0015| (6) that portion of meetings at which a | 0016| decision concerning purchases in an amount exceeding two | 0017| thousand five hundred dollars ($2,500) that can be made only | 0018| from one source and that portion of meetings at which the | 0019| contents of competitive sealed proposals solicited pursuant to | 0020| the Procurement Code are discussed during the contract | 0021| negotiation process. The actual approval of purchase of the | 0022| item or final action regarding the selection of a contractor | 0023| shall be made in an open meeting; | 0024| (7) meetings subject to the attorney-client | 0025| privilege pertaining to threatened or pending litigation in | 0001| which the public body is or may become a participant; | 0002| (8) meetings for the discussion of the | 0003| purchase, acquisition or disposal of real property or water | 0004| rights by the public body; ~~[and]~~ | 0005| (9) those portions of meetings of committees or | 0006| boards of public hospitals that receive less than fifty percent | 0007| of their operating budget from direct public funds and | 0008| appropriations where strategic and long-range business plans are | 0009| discussed; and | 0010| (10) that portion of a meeting of the gaming | 0011| control board dealing with information made confidential | 0012| pursuant to the provisions of the Gaming Control Act. | 0013| I. If any meeting is closed pursuant to the | 0014| exclusions contained in Subsection H of this section, the | 0015| closure: | 0016| (1) if made in an open meeting, shall be | 0017| approved by a majority vote of a quorum of the policymaking | 0018| body; the authority for the closure and the subject to be | 0019| discussed shall be stated with reasonable specificity in the | 0020| motion calling for the vote on a closed meeting; the vote shall | 0021| be taken in an open meeting; and the vote of each individual | 0022| member shall be recorded in the minutes. Only those subjects | 0023| announced or voted upon prior to closure by the policymaking | 0024| body may be discussed in a closed meeting; and | 0025| (2) if called for when the policymaking body is | 0001| not in an open meeting, shall not be held until public notice, | 0002| appropriate under the circumstances, stating the specific | 0003| provision of the law authorizing the closed meeting and stating | 0004| with reasonable specificity the subject to be discussed is given | 0005| to the members and to the general public. | 0006| J. Following completion of any closed meeting, the | 0007| minutes of the open meeting that was closed or the minutes of | 0008| the next open meeting if the closed meeting was separately | 0009| scheduled shall state that the matters discussed in the closed | 0010| meeting were limited only to those specified in the motion for | 0011| closure or in the notice of the separate closed meeting. This | 0012| statement shall be approved by the public body under Subsection | 0013| G of this section as part of the minutes." | 0014| Section 65. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0015| Chapter 303, Section 19-1, as amended) is amended to read: | 0016| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0017| Chapter 30, Article 19 NMSA 1978: | 0018| A. "antique gambling device" means a gambling device | 0019| twenty-five years of age or older and substantially in original | 0020| condition that is not used for gambling or commercial gambling | 0021| or located in a gambling place; | 0022| B. "bet" means a bargain in which the parties agree | 0023| that, dependent upon chance, even though accompanied by some | 0024| skill, one stands to win or lose anything of value specified in | 0025| the agreement. A bet does not include: | 0001| (1) bona fide business transactions that are | 0002| valid under the law of contracts, including ~~[without~~ | 0003| ~~limitation]~~: | 0004| (a) contracts for the purchase or sale, at | 0005| a future date, of securities or other commodities; and | 0006| (b) agreements to compensate for loss | 0007| caused by the happening of the chance, including ~~[without~~ | 0008| ~~limitation]~~ contracts for indemnity or guaranty and life or | 0009| health and accident insurance; | 0010| (2) offers of purses, prizes or premiums to the | 0011| actual contestants in any bona fide contest for the | 0012| determination of skill, speed, strength or endurance or to the | 0013| bona fide owners of animals or vehicles entered in such contest; | 0014| (3) a lottery as defined in this section; or | 0015| (4) betting otherwise permitted by law; | 0016| ~~[C. "lottery" means an enterprise other than the~~ | 0017| ~~New Mexico state lottery established and operated pursuant to~~ | 0018| ~~the New Mexico Lottery Act wherein, for a consideration, the~~ | 0019| ~~participants are given an opportunity to win a prize, the award~~ | 0020| ~~of which is determined by chance, even though accompanied by~~ | 0021| ~~some skill. As used in this subsection, "consideration" means~~ | 0022| ~~anything of pecuniary value required to be paid to the promoter~~ | 0023| ~~in order to participate in such enterprise;~~ | 0024| ~~D.]~~ C. "gambling device" means a contrivance | 0025| other than an antique gambling device that is not licensed for | 0001| use pursuant to the Gaming Control Act and that, for a | 0002| consideration, affords the player an opportunity to obtain | 0003| anything of value, the award of which is determined by chance, | 0004| even though accompanied by some skill, ~~[and]~~ whether or not | 0005| the prize is automatically paid by the device; ~~[and]~~ | 0006| ~~[E.]~~ D. "gambling place" means ~~[any]~~ a | 0007| building or tent, ~~[any]~~ a vehicle, whether self-propelled or | 0008| not, or ~~[any]~~ a room within any of them that is not within | 0009| the premises of a person licensed as a lottery retailer or that | 0010| is not licensed pursuant to the Gaming Control Act, one of | 0011| whose principal uses is: | 0012| (1) making and settling of bets; | 0013| (2) receiving, holding, recording or forwarding | 0014| bets or offers to bet; | 0015| (3) conducting lotteries; or | 0016| (4) playing gambling devices; and | 0017| E. "lottery" means an enterprise wherein, for a | 0018| consideration, the participants are given an opportunity to win | 0019| a prize, the award of which is determined by chance, even though | 0020| accompanied by some skill. "Lottery" does not include the New | 0021| Mexico state lottery established and operated pursuant to the | 0022| New Mexico Lottery Act or gaming that is licensed and operated | 0023| pursuant to the Gaming Control Act. As used in this subsection, | 0024| "consideration" means anything of pecuniary value required to be | 0025| paid to the promoter in order to participate in a gambling or | 0001| gaming enterprise." | 0002| Section 66. A new section of Chapter 40, Article 3 NMSA | 0003| 1978 is enacted to read: | 0004| "[NEW MATERIAL] GAMBLING DEBTS ARE SEPARATE DEBTS OF | 0005| SPOUSE INCURRING DEBT.--A gambling debt incurred by a married | 0006| person as a result of legal gambling is a separate debt of the | 0007| spouse incurring the debt." | 0008| Section 67. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0009| Chapter 39, Section 96) is amended to read: | 0010| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0011| A. It is a violation of the Liquor Control Act for a | 0012| licensee to knowingly allow commercial gambling on the licensed | 0013| premises. | 0014| B. In addition to any criminal penalties, any person | 0015| who violates Subsection A of this section may have his license | 0016| suspended or revoked or a fine imposed, or both, pursuant to the | 0017| Liquor Control Act. | 0018| C. ~~[For purposes of]~~ As used in this section: | 0019| (1) "commercial gambling" means: | 0020| ~~[(1)]~~ (a) participating in the earnings | 0021| of or operating a gambling place; | 0022| ~~[(2)]~~ (b) receiving, recording or | 0023| forwarding bets or offers to bet; | 0024| ~~[(3)]~~ (c) possessing facilities with | 0025| the intent to receive, record or forward bets or offers to bet; | 0001| ~~[(4)]~~ (d) for gain, becoming a | 0002| custodian of anything of value bet or offered to be bet; | 0003| ~~[(5)]~~ (e) conducting a lottery where | 0004| both the consideration and the prize are money, or whoever with | 0005| intent to conduct a lottery possesses facilities to do so; or | 0006| ~~[(6)]~~ (f) setting up for use for the | 0007| purpose of gambling, or collecting the proceeds of, any gambling | 0008| device or game; and | 0009| (2) "commercial gambling" does not mean: | 0010| (a) activities authorized pursuant to the | 0011| New Mexico Lottery Act; | 0012| (b) the conduct of activities pursuant to | 0013| Subsection D of Section 30-19-6 NMSA 1978; and | 0014| (c) gaming authorized pursuant to the | 0015| Gaming Control Act on the premises of a gaming operator licensee | 0016| licensed pursuant to that act." | 0017| Section 68. SEVERABILITY.--If any part or application of | 0018| the Gaming Control Act is held invalid, the remainder or its | 0019| application to other situations or persons shall not be | 0020| affected. | 0021| Section 69. DELAYED EFFECTIVE DATE.--The provisions of | 0022| the Gaming Control Act shall be effective on the date that a | 0023| tribal gaming compact agreed upon and executed by an Indian | 0024| nation, tribe or pueblo and the state is approved pursuant to | 0025| the provisions of the Indian Gaming Regulatory Act, 25 USCA | 0001| Section 2701, et seq. | 0002| Section 70. EMERGENCY.--It is necessary for the public | 0003| peace, health and safety that this act take effect immediately. | 0004| | 0005| | 0006| | 0007| | 0008| FORTY-THIRD LEGISLATURE | 0009| FIRST SESSION, 1997 | 0010| | 0011| | 0012| March 21, 1997 | 0013| | 0014| Mr. President: | 0015| | 0016| Your FINANCE COMMITTEE, to whom has been referred | 0017| | 0018| HOUSE APPROPRIATIONS AND FINANCE COMMITTEE SUBSTITUTE | 0019| FOR HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE | 0020| FOR HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR HOUSE | 0021| BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0022| HOUSE BILL 399, as amended | 0023| | 0024| has had it under consideration and reports same WITHOUT | 0025| RECOMMENDATION. | 0001| | 0002| Respectfully submitted, | 0003| | 0004| | 0005| | 0006| __________________________________ | 0007| Ben D. Altamirano, Chairman | 0008| | 0009| | 0010| | 0011| Adopted_______________________ Not Adopted_______________________ | 0012| (Chief Clerk) (Chief Clerk) | 0013| | 0014| | 0015| | 0016| Date ________________________ | 0017| | 0018| | 0019| The roll call vote was 9 For 1 Against | 0020| Yes: 9 | 0021| No: Lyons | 0022| Excused: Fidel | 0023| Absent: None | 0024| | 0025| | 0001| H0399FC1 | 0002| HOUSE APPROPRIATIONS AND FINANCE COMMITTEE SUBSTITUTE FOR | 0003| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR | 0004| | 0005| | 0006| HOUSE BILL 399 | 0007| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| | 0015| AN ACT | 0016| RELATING TO GAMING; ENACTING THE INDIAN GAMING COMPACT; | 0017| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE- | 0018| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR | 0019| PUEBLO CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING | 0020| THE GAMING CONTROL ACT TO PERMIT CERTAIN NONTRIBAL GAMING; | 0021| PROVIDING PENALTIES; IMPOSING A GAMING TAX AND FEES; AMENDING | 0022| AND ENACTING SECTIONS OF THE NMSA 1978; DECLARING AN | 0023| EMERGENCY. | 0024| | 0025| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0001| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT | 0002| ENTERED INTO.--The Indian Gaming Compact is enacted into law | 0003| and entered into with all Indian nations, tribes and pueblos | 0004| in the state legally joining in it by enactment of a | 0005| resolution pursuant to the requirements of applicable tribal | 0006| and federal law. The compact is enacted and entered into in | 0007| the form substantially as follows: | 0008| "INDIAN GAMING COMPACT | 0009| INTRODUCTION | 0010| The State is a sovereign State of the United States of | 0011| America, having been admitted to the Union pursuant to the | 0012| Act of June 20, 1910, 36 Statutes at Large 557, Chapter 310, | 0013| and is authorized by its constitution to enter into contracts | 0014| and agreements, including this Compact, with the Tribe; | 0015| The Tribe is a sovereign federally recognized Indian | 0016| tribe and its governing body has authorized the officials of | 0017| the Tribe to enter into contracts and agreements of every | 0018| description, including this Compact, with the State; | 0019| The Congress of the United States has enacted the Indian | 0020| Gaming Regulatory Act of 1988, 25 U.S.C. 2701-2721 | 0021| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0022| Class III Gaming on Indian Lands pursuant to a tribal-state | 0023| compact entered into for that purpose; | 0024| The Tribe owns or controls Indian Lands and by Ordinance | 0025| has adopted rules and regulations governing Class III games | 0001| played and related activities at any Gaming Facility; | 0002| The State and the Tribe, in recognition of the sovereign | 0003| rights of each party and in a spirit of cooperation to | 0004| promote the best interests of the citizens of the State and | 0005| the members of the Tribe, have engaged in good faith | 0006| negotiations recognizing and respecting the interests of each | 0007| party and have agreed to this Compact. | 0008| NOW, THEREFORE, the State and the Tribe agree as | 0009| follows: | 0010| TERMS AND CONDITIONS | 0011| SECTION 1. Purpose and Objectives. | 0012| The purpose and objectives of the State and the Tribe in | 0013| making this Compact are as follows: | 0014| A. To evidence the good will and cooperative spirit | 0015| between the State and the Tribe; | 0016| B. To continue the development of an effective government- | 0017| to-government relationship between the State and the Tribe; | 0018| C. To provide for the regulation of Class III Gaming on | 0019| Indian Lands as required by the IGRA; | 0020| D. To fulfill the purpose and intent of the IGRA by | 0021| providing for tribal gaming as a means of generating tribal | 0022| revenues, thereby promoting tribal economic development, tribal | 0023| self-sufficiency, and strong tribal government; | 0024| E. To provide revenues to fund tribal government | 0025| operations or programs, to provide for the general welfare of | 0001| the tribal members and for other purposes allowed under the | 0002| IGRA; | 0003| F. To provide for the effective regulation of Class III | 0004| Gaming in which the Tribe shall have the sole proprietary | 0005| interest and be the primary beneficiary; and | 0006| G. To address the State's interest in the establishment, | 0007| by the Tribe, of rules and procedures for ensuring that Class | 0008| III Gaming is conducted fairly and honestly by the owners, | 0009| operators, employees and patrons of any Class III Gaming | 0010| enterprise on Indian Lands. | 0011| SECTION 2. Definitions. | 0012| For purposes of this Compact, the following definitions | 0013| pertain: | 0014| A. "Class III Gaming" means all forms of gaming as defined | 0015| in 25 U.S.C. 2703(8), and 25 C.F.R. 502.4. | 0016| B. "Compact" means this compact between the State and the | 0017| Tribe. | 0018| C. "Gaming Enterprise" means the tribal entity created and | 0019| designated by the Tribe as having authority to conduct Class III | 0020| Gaming pursuant to this Compact. | 0021| D. "Gaming Facility" means the buildings or structures in | 0022| which Class III Gaming is conducted on Indian Lands. | 0023| E. "Gaming Machine" means a mechanical, electromechanical | 0024| or electronic contrivance or machine that, upon insertion of a | 0025| coin, token or similar object, or upon payment of any | 0001| consideration, is available to play or operate a game, whether | 0002| the payoff is made automatically from the Gaming Machine or in | 0003| any other manner. | 0004| F. "Indian Lands" means: | 0005| 1. all lands within the exterior boundaries of the | 0006| Tribe's reservation and its confirmed grants from prior | 0007| sovereigns; or | 0008| 2. any other lands title to which is either held in | 0009| trust by the United States for the exclusive benefit of the | 0010| Tribe or a member thereof or is held by the Tribe or a member | 0011| thereof subject to restrictions against alienation imposed by | 0012| the United States, and over which the Tribe exercises | 0013| jurisdiction and governmental authority, but not including any | 0014| land within the boundaries of a municipality that is outside of | 0015| the boundaries of the Tribe's reservation or confirmed Spanish | 0016| grant, as those boundaries existed on October 17, 1988. | 0017| G. "Key Employee" means that term as defined in 25 CFR | 0018| Section 502.14. | 0019| H. "Management Contract" means a contract within the | 0020| meaning of 25 U.S.C. 2710(d)(9) and 2711. | 0021| I. "Management Contractor" means any person or entity that | 0022| has entered into a Management Contract with the Tribe. | 0023| J. "Ordinance" means the gaming ordinance and any | 0024| amendments thereto adopted by the Tribal Council of the Tribe. | 0025| K. "Primary Management Official" means that term as | 0001| defined in 25 CFR Section 502.19. | 0002| L. "State" means the State of New Mexico. | 0003| M. "State Gaming Representative" means that person | 0004| designated by the gaming control board pursuant to the Gaming | 0005| Control Act who will be responsible for actions of the State set | 0006| out in the Compact. The representative will be the single | 0007| contact with the Tribe and may be relied upon as such by the | 0008| Tribe. If the State Legislature enacts legislation to establish | 0009| an agency of the State, such agency may assume the duties of the | 0010| State Gaming Representative. | 0011| N. "Tribal Gaming Agency" means the tribal governmental | 0012| agency which will be identified to the State Gaming | 0013| Representative as the agency responsible for actions of the | 0014| Tribe set out in the Compact. It will be the single contact | 0015| with the State and may be relied upon as such by the State. | 0016| O. "Tribe" means any Indian Tribe or Pueblo located | 0017| within the State of New Mexico entering into this Compact as | 0018| provided for herein. | 0019| SECTION 3. Authorized Class III Gaming. | 0020| The Tribe may conduct, only on Indian Lands, subject to all | 0021| of the terms and conditions of this Compact, any or all forms of | 0022| casino-style gaming, including but not limited to slot machines | 0023| and other forms of electronic gaming devices; all forms of | 0024| poker, blackjack and other casino-style card games, both banked | 0025| and unbanked; roulette; craps; keno; wheel of fortune; pai gow; | 0001| and other games played in casino settings; and any form of a | 0002| lottery. | 0003| Subject to the foregoing, the Tribe shall establish, in its | 0004| discretion, by tribal law, such limitations as it deems | 0005| appropriate on the number and type of Class III Gaming | 0006| conducted, the location of Class III Gaming on Indian Lands, the | 0007| hours and days of operation, and betting and pot limits, | 0008| applicable to such gaming. | 0009| SECTION 4. Regulation of Class III Gaming. | 0010| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0011| assure that the Tribe will: | 0012| 1. operate all Class III Gaming pursuant to this | 0013| Compact, tribal law, the IGRA and other | 0014| applicable Federal law; | 0015| 2. provide for the physical safety of patrons in any | 0016| Gaming Facility; | 0017| 3. provide for the physical safety of personnel | 0018| employed by the gaming enterprise; | 0019| 4. provide for the physical safeguarding of assets | 0020| transported to and from the Gaming Facility and | 0021| cashier's cage department; | 0022| 5. provide for the protection of the property of the | 0023| patrons and the gaming enterprise from illegal | 0024| activity; | 0025| 6. participate in licensing of primary management | 0001| officials and key employees of a Class III Gaming | 0002| enterprise; | 0003| 7. detain persons who may be involved in illegal | 0004| acts for the purpose of notifying law enforcement | 0005| authorities; and | 0006| 8. record and investigate any and all unusual | 0007| occurrences related to Class III Gaming within | 0008| the Gaming Facility. | 0009| B. Regulations. Without affecting the generality of the | 0010| foregoing, the Tribe shall adopt laws: | 0011| 1. prohibiting participation in any Class III Gaming | 0012| by any person under the age of twenty-one (21); | 0013| 2. prohibiting the employment of any person in Class | 0014| III Gaming activities who is under the age of | 0015| twenty-one (21) or who has not been licensed in | 0016| accordance with Section 5, herein; | 0017| 3. requiring the Tribe to take all necessary action | 0018| to impose on its gaming operation standards and | 0019| requirements equivalent to or more stringent than | 0020| those contained in the federal Fair Labor | 0021| Standards Act of 1938, the federal Occupational | 0022| Safety and Health Act of 1970, and any other | 0023| federal laws relating to wages, hours of work and | 0024| conditions of work, and the regulations issued | 0025| thereunder; | 0001| 4. requiring that on any construction project | 0002| involving any Gaming Facility or related | 0003| structure that is funded in whole or in part by | 0004| federal funds, all workers will be paid wages | 0005| meeting or exceeding the standards established | 0006| for New Mexico under the federal Davis-Bacon Act; | 0007| 5. prohibiting the Tribe, the Gaming Enterprise and | 0008| a Management Contractor from discriminating in | 0009| the employment of persons to work for the gaming | 0010| Enterprise or in the Gaming Facility on the | 0011| grounds of race, color, national origin, gender, | 0012| sexual orientation, age or handicap; | 0013| 6. providing to all employees of a gaming | 0014| establishment employment benefits, including, at | 0015| a minimum, sick leave, life insurance, paid | 0016| annual leave and medical and dental insurance as | 0017| well as providing unemployment insurance and | 0018| workers' compensation insurance through | 0019| participation in programs offering benefits at | 0020| least as favorable as those provided by | 0021| comparable state programs; | 0022| 7. providing a grievance process for an employee in | 0023| cases of disciplinary or punitive action taken | 0024| against an employee that includes a process for | 0025| appeals to persons of greater authority than the | 0001| immediate supervisor of the employee; | 0002| 8. permitting State Department of Environment | 0003| inspectors to inspect Gaming Facilities' food | 0004| service operations during normal Gaming Facility | 0005| business hours to assure that standards and | 0006| requirements equivalent to the State's Food | 0007| Service Sanitation Act are maintained; | 0008| 9. prohibiting a gaming enterprise from cashing any | 0009| paycheck or any type of government assistance | 0010| check, including Social Security, AFDC, pension | 0011| and other similar checks, for any patron; | 0012| 10. prohibiting a gaming enterprise from extending | 0013| credit by accepting IOUs or markers from its | 0014| patrons; | 0015| 11. requiring that odds be posted on each electronic | 0016| and electromechanical gaming device; | 0017| 12. requiring that automatic teller machines on | 0018| Gaming Facility premises be programmed so that | 0019| the machines will not accept cards issued by the | 0020| State to AFDC recipients for access to AFDC | 0021| benefits; | 0022| 13. providing that each electronic or | 0023| electromechanical gaming device in use at the | 0024| Gaming Facility must pay out a mathematically | 0025| demonstrable percentage of all amounts wagered, | 0001| which must not be less than eighty percent (80%); | 0002| 14. providing that no later than ninety days after | 0003| this Compact takes effect, all gaming machines on | 0004| the premises of the Gaming Facility will be | 0005| connected to a central computerized reporting and | 0006| auditing system on the Gaming Facility premises, | 0007| which shall collect on a continual basis the | 0008| activity of each gaming machine in use at the | 0009| Gaming Facility, and that such data shall be | 0010| electronically accessible to the State Gaming | 0011| Representative upon entry of appropriate security | 0012| codes; | 0013| 15. enacting provisions that: | 0014| (a) prohibit an employee of the Gaming Facility | 0015| from selling, serving, giving or delivering | 0016| an alcoholic beverage to an intoxicated | 0017| person or from procuring or aiding in the | 0018| procurement of any alcoholic beverage for an | 0019| intoxicated person at the Gaming Facility; | 0020| (b) require Gaming Facility employees that | 0021| dispense, sell, serve or deliver alcoholic | 0022| beverages to attend Alcohol Server Education | 0023| Classes similar to those classes provided | 0024| for in the New Mexico Liquor Control Act; | 0025| and | 0001| (c) purchase and maintain a liquor liability | 0002| insurance policy that will provide, at a | 0003| minimum, personal injury coverage of one | 0004| million dollars ($1,000,000) per incident | 0005| and two million dollars ($2,000,000) | 0006| aggregate per policy year; | 0007| 16. prohibiting alcoholic beverages from being sold, | 0008| served, delivered or consumed in that part of a | 0009| Gaming Facility where gaming is allowed; | 0010| 17. requiring the gaming enterprise to spend an | 0011| amount that is no less than one-quarter of one | 0012| percent (.25%) of its net win as that term is | 0013| defined herein annually to fund or support | 0014| programs for the treatment and assistance of | 0015| compulsive gamblers and for the prevention of | 0016| compulsive gambling; | 0017| 18. governing any Management Contract regarding its | 0018| Class III Gaming activity such that it conforms | 0019| to the requirements of tribal law and the IGRA | 0020| and the regulations issued thereunder; | 0021| 19. prohibiting the operation of any Class III Gaming | 0022| for at least four (4) consecutive hours daily, | 0023| Mondays through Thursdays (except federal | 0024| holidays); | 0025| 20. prohibiting a Tribal Gaming Enterprise and the | 0001| Tribe from providing, allowing, contracting to | 0002| provide or arranging to provide alcoholic | 0003| beverages, food or lodging for no charge or at | 0004| reduced prices at a Gaming Facility or lodging | 0005| facility as an incentive or enticement for | 0006| patrons to game; and | 0007| 21. prohibiting the Tribe, the Tribal Gaming Agency | 0008| or a Management Contractor from contributing | 0009| directly, or through an agent, representative or | 0010| employee, revenue from a Gaming Enterprise owned | 0011| by the Tribe, or anything of value acquired with | 0012| that revenue, to a candidate, political committee | 0013| or person holding an office elected or to be | 0014| elected at an election covered by the State's | 0015| Campaign Reporting Act. | 0016| The Tribal Gaming Agency will provide true copies of all | 0017| tribal laws and regulations affecting Class III Gaming conducted | 0018| under the provisions of this Compact to the State Gaming | 0019| Representative within thirty (30) days after the effective date | 0020| of this Compact, and will provide true copies of any amendments | 0021| thereto or additional laws or regulations affecting gaming | 0022| within thirty (30) days after their enactment (or approval, if | 0023| any). | 0024| C. Audit and Financial Statements. The Tribal Gaming | 0025| Agency shall require all books and records relating to Class III | 0001| Gaming to be maintained in accordance with generally accepted | 0002| accounting principles. All such books and records shall be | 0003| retained for a period of at least six (6) years from the date of | 0004| creation. Not less than annually, the Tribal Gaming Agency | 0005| shall require an audit and a certified financial statement | 0006| covering all financial activities of the gaming enterprise by an | 0007| independent certified public accountant licensed by the State. | 0008| The financial statement shall be prepared in accordance with | 0009| generally accepted accounting principles and shall be submitted | 0010| to the Tribal Gaming Agency within one hundred twenty (120) days | 0011| of the close of the Tribe's fiscal year. Copies of the | 0012| financial statement and the audit shall be furnished to the | 0013| State Gaming Representative and the state treasurer by the | 0014| Tribal Gaming Agency within one hundred twenty days of the | 0015| agency's receipt of the documents. The Tribe will maintain the | 0016| following records for not less than six (6) years: | 0017| 1. revenues, expenses, assets, liabilities and | 0018| equity for each Gaming Facility; | 0019| 2. daily cash transactions for each Class III Gaming | 0020| activity at each Gaming Facility, including but | 0021| not limited to transactions relating to each | 0022| gaming table bank, game dropbox and gaming room | 0023| bank; | 0024| 3. all markers, IOUs, returned checks, hold check or | 0025| other similar credit instruments; | 0001| 4. individual and statistical game records (except | 0002| card games) to reflect statistical drop and | 0003| statistical win; for electronic, computer, or | 0004| other technologically assisted games, analytic | 0005| reports which show the total amount of cash | 0006| wagered and the total amount of prizes won; | 0007| 5. contracts, correspondence and other transaction | 0008| documents relating to all vendors and | 0009| contractors; | 0010| 6. records of all tribal gaming enforcement | 0011| activities; | 0012| 7. audits prepared by or on behalf of the Tribe; and | 0013| 8. personnel information on all Class III Gaming | 0014| employees or agents, including rotation sheets, | 0015| hours worked, employee profiles and background | 0016| checks. | 0017| D. Violations. The agents of the Tribal Gaming Agency | 0018| shall have unrestricted access to the Gaming Facility during all | 0019| hours of Class III Gaming activity, and shall have immediate and | 0020| unrestricted access to any and all areas of the Gaming Facility | 0021| for the purpose of ensuring compliance with the provisions of | 0022| this Compact and the Ordinance. The agents shall report | 0023| immediately to the Tribal Gaming Agency any suspected violation | 0024| of this Compact, the Ordinance, or regulations of the Tribal | 0025| Gaming Agency by the gaming enterprise, Management Contractor, | 0001| or any person, whether or not associated with Class III Gaming. | 0002| E. State Gaming Representative. | 0003| 1. Upon written request by the State to the Tribe, | 0004| the Tribe will provide information on primary | 0005| management officials, key employees and | 0006| suppliers, sufficient to allow the State to | 0007| conduct its own background investigations, as it | 0008| may deem necessary, so that it may make an | 0009| independent determination as to the suitability | 0010| of such individuals, consistent with the | 0011| standards set forth in Section 5, hereinafter. | 0012| The Tribe shall consider any information or | 0013| recommendations provided to it by the State as to | 0014| any such person or entity, but the Tribe shall | 0015| have the final say with respect to the hiring or | 0016| licensing of any such person or entity. | 0017| 2. Notwithstanding that the Tribe has the primary | 0018| responsibility to administer and enforce the | 0019| regulatory requirements, the State Gaming | 0020| Representative authorized in writing by the | 0021| Governor of the State or by legislation duly | 0022| enacted by the State Legislature shall have the | 0023| right to inspect a Gaming Facility, Class III | 0024| Gaming activity, and all records relating to | 0025| Class III Gaming (including those set forth in | 0001| Section 5, hereinafter) of the Tribe, subject to | 0002| the following conditions: | 0003| (a) with respect to public areas of a Gaming | 0004| Facility, at any time without prior notice | 0005| during normal Gaming Facility business | 0006| hours; | 0007| (b) with respect to private areas of a Gaming | 0008| Facility not accessible to the public, at | 0009| any time during normal Gaming Facility | 0010| business hours, immediately after notifying | 0011| the Tribal Gaming Agency and Gaming Facility | 0012| of his or her presence on the premises and | 0013| presenting proper identification, and | 0014| requesting access to the non-public areas of | 0015| the Gaming Facility. The Tribe, in its sole | 0016| discretion, may require an employee of the | 0017| Gaming Facility or the Tribal Gaming Agency | 0018| to accompany the State Gaming Representative | 0019| at all times that the State Gaming | 0020| Representative is on the premises of a | 0021| Gaming Facility, but if the Tribe imposes | 0022| such a requirement, the Tribe shall require | 0023| such an employee of the Gaming Facility or | 0024| the Tribal Gaming Agency to be available at | 0025| all times for such purposes; | 0001| (c) with respect to inspection and copying of | 0002| all management records relating to Class III | 0003| Gaming, at any time without prior notice | 0004| between the hours of 9:00 a.m. and 4:00 p.m. | 0005| Monday through Friday, excluding official | 0006| holidays. The reasonable costs of copying | 0007| will be borne by the State; and | 0008| (d) whenever the State Gaming Representative, or | 0009| his designee, enters the premises of the | 0010| Gaming Facility for any such inspection, | 0011| such Representative, or designee, shall | 0012| identify himself to security or supervisory | 0013| personnel of the Gaming Facility. | 0014| 3. Gaming Enterprise and gaming operations | 0015| information that is provided to the State Gaming | 0016| Representative shall be considered public | 0017| information and subject to the Inspection of | 0018| Public Records Act. Trade secrets, information | 0019| relating to security and surveillance systems, | 0020| cash handling and accounting procedures, building | 0021| layout, gaming machine payouts, investigations | 0022| into alleged violations of laws or regulations, | 0023| personnel records and proprietary information | 0024| regarding the gaming enterprise of the Tribe, | 0025| Class III Gaming conducted by the Tribe, or the | 0001| operation thereof, shall not be deemed public | 0002| records as a matter of state law, and shall not | 0003| be disclosed to any member of the public, without | 0004| the prior written approval of a duly authorized | 0005| representative of the Tribe. These prohibitions | 0006| shall not be construed to prohibit: | 0007| (a) the furnishing of any information to a law | 0008| enforcement or regulatory agency of the | 0009| Federal Government; | 0010| (b) the State from making known the names of | 0011| persons, firms, or corporations conducting | 0012| Class III Gaming pursuant to the terms of | 0013| this Compact, locations at which such | 0014| activities are conducted, or the dates on | 0015| which such activities are conducted; | 0016| (c) publishing the terms of this Compact; | 0017| (d) disclosing information as necessary to | 0018| audit, investigate, prosecute or arbitrate | 0019| violations of this Compact or other | 0020| applicable laws or to defend suits against | 0021| the State; and | 0022| (e) complying with subpoenas or court orders | 0023| issued by courts of competent jurisdiction. | 0024| 4. To the fullest extent allowed by State law, the | 0025| Tribe shall have the right to inspect State | 0001| records concerning all Class III Gaming conducted | 0002| by the Tribe; the Tribe shall have the right to | 0003| copy such State records, with the Tribe bearing | 0004| the reasonable cost of copying. | 0005| 5. For every year or part thereof in which the Tribe | 0006| is actually engaged in Class III Gaming | 0007| hereunder, the Tribe shall reimburse the State | 0008| for the costs the State incurs in carrying out | 0009| any functions authorized by the terms of this | 0010| Compact. All calculations of amounts due shall | 0011| be based upon the operations of the Gaming | 0012| Enterprise on the final day of operation of each | 0013| quarter of the calendar year. Payments due the | 0014| State shall be made no later than the twenty- | 0015| fifth day of the month following the end of a | 0016| quarter to the State Treasurer for deposit into | 0017| the General Fund of the State ("State General | 0018| Fund"). The amount of the regulatory fee each | 0019| quarter shall be the sum of six thousand two | 0020| hundred fifty dollars ($6,250) per Gaming | 0021| Facility plus three hundred dollars ($300) per | 0022| gaming machine plus seven hundred fifty dollars | 0023| ($750) per gaming table or device other than a | 0024| Gaming Machine. These amounts shall increase by | 0025| five percent (5%) each year beginning on the | 0001| first day of January occurring after the Compact | 0002| has been in effect for at least twelve months. | 0003| 6. In the event the State believes that the Tribe is | 0004| not administering and enforcing the regulatory | 0005| requirements set forth herein, it may invoke the | 0006| procedures set forth in Section 7 of this | 0007| Compact. | 0008| F. The Tribe shall comply with all applicable provisions | 0009| of the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 | 0010| U.S.C. 5311-5314, and all reporting requirements of the | 0011| Internal Revenue Service. | 0012| SECTION 5. Licensing Requirements. | 0013| A. License Required. The Gaming Facility operator (but | 0014| not including the Tribe), including its principals, primary | 0015| management officials, and key employees, the Management | 0016| Contractor and its principals, primary management officials, and | 0017| key employees (if the Tribe hires a Management Contractor); any | 0018| person, corporation, or other entity that has supplied or | 0019| proposes to supply any gaming device to the Tribe or the | 0020| Management Contractor; and any person, corporation or other | 0021| entity providing gaming services within or without a Gaming | 0022| Facility, shall apply for and receive a license from the Tribal | 0023| Gaming Agency before participating in any way in the operation | 0024| or conduct of any Class III Gaming on Indian Lands. | 0025| B. License Application. Each applicant for a license | 0001| shall file with the Tribal Gaming Agency a written application | 0002| in the form prescribed by the Tribal Gaming Agency, along with | 0003| the applicant's fingerprint card, current photograph and the fee | 0004| required by the Tribal Gaming Agency. | 0005| 1. The following Notice ("Privacy Act Notice") shall | 0006| be placed on the application form for a | 0007| principal, key employee or a primary management | 0008| official before that form is filled out by an | 0009| applicant: | 0010| "In compliance with the Privacy | 0011| Act of 1974, the following | 0012| information is provided: | 0013| Solicitation of the information | 0014| on this form is authorized by | 0015| 25 U.S.C. 2701-2721. The | 0016| purpose of the requested | 0017| information is to determine the | 0018| eligibility of individuals to | 0019| be employed in a gaming | 0020| enterprise. The information | 0021| will be used by members and | 0022| staff of the Tribal Gaming | 0023| Agency and the National Indian | 0024| Gaming Commission who have need | 0025| for the information in the | 0001| performance of their official | 0002| duties. The information may be | 0003| disclosed to appropriate | 0004| federal, tribal, state, local | 0005| or foreign law enforcement and | 0006| regulatory agencies when | 0007| relevant to civil, criminal or | 0008| regulatory investigations or | 0009| prosecutions or when, pursuant | 0010| to a requirement by a Tribe, or | 0011| the National Indian Gaming | 0012| Commission, the information is | 0013| relevant to the hiring or | 0014| firing of an employee, the | 0015| issuance or revocation of a | 0016| gaming license or | 0017| investigations of activities | 0018| while associated with a Tribe | 0019| or a gaming enterprise. | 0020| Failure to consent to the | 0021| disclosures indicated in this | 0022| Notice will result in a Tribe | 0023| being unable to hire you in a | 0024| primary management official or | 0025| key employee position with a | 0001| tribal gaming enterprise. | 0002| The disclosure of your Social | 0003| Security Number (SSN) is | 0004| voluntary. However, failure to | 0005| supply an SSN may result in | 0006| errors in processing your | 0007| application.". | 0008| 2. Existing principals, key employees and primary | 0009| management officials shall be notified, in | 0010| writing, that they shall either: | 0011| (a) complete a new application form that | 0012| contains a Privacy Act Notice; or | 0013| (b) sign a statement that contains the Privacy | 0014| Act Notice and consent to the routine uses | 0015| described in that Notice. | 0016| 3. The following Notice ("False Statement Notice") | 0017| shall be placed on the application form for a | 0018| principal, key employee or a primary management | 0019| official before that form is filled out by an | 0020| applicant: | 0021| "A false statement on any part of your | 0022| application may be grounds for not hiring you | 0023| or for firing you after you begin work. Also, | 0024| you may be punished by fine or imprisonment. | 0025| See 18 U.S.C. 1001.". | 0001| 4. The Tribal Gaming Agency shall notify, in | 0002| writing, existing principals, key employees and | 0003| primary management officials that they shall | 0004| either: | 0005| (a) complete a new application form that | 0006| contains a False Statement Notice; or | 0007| (b) sign a statement that contains the False | 0008| Statement Notice. | 0009| 5. The Tribal Gaming Agency shall request from each | 0010| applicant, and from each principal, primary | 0011| management official and key employee of each | 0012| applicant, all of the following information: | 0013| (a) full name, other names used (oral or | 0014| written), Social Security Number(s), birth | 0015| date, place of birth, citizenship, gender | 0016| and all languages spoken or written; | 0017| (b) currently, and for the previous ten (10) | 0018| years, business and employment positions | 0019| held, ownership interests in those | 0020| businesses, business and residence addresses | 0021| and driver's license numbers; provided, that | 0022| any applicant who is a principal, primary | 0023| management official, key employee, | 0024| Management Contractor, manufacturer or | 0025| supplier of gaming devices, and/or a person | 0001| providing gaming services, must provide such | 0002| information currently, and from the age of | 0003| eighteen (18); | 0004| (c) the names and current addresses of at least | 0005| three (3) personal references, including one | 0006| (1) personal reference who was acquainted | 0007| with the applicant during each period of | 0008| residence listed in Paragraph B.5.(b) of | 0009| this section; | 0010| (d) current business and residence telephone | 0011| numbers; | 0012| (e) a description of any existing and previous | 0013| business relationships with a Tribe, | 0014| including ownership interests in those | 0015| businesses, and a description of any | 0016| potential or actual conflict of interests | 0017| between such businesses and a Tribe; | 0018| (f) a description of any existing and previous | 0019| business relationships in the gaming | 0020| industry, including, but not limited to, | 0021| ownership interests in those businesses; | 0022| (g) the name and address of any licensing or | 0023| regulatory agency with which the applicant | 0024| has filed an application for a license or | 0025| permit related to gaming, whether or not | 0001| such license or permit was granted; | 0002| (h) for each felony for which there is an | 0003| ongoing prosecution or a conviction, the | 0004| charge, the date of the charge, the name and | 0005| address of the court involved and the | 0006| disposition, if any; | 0007| (i) for each misdemeanor for which there is an | 0008| ongoing prosecution or conviction (excluding | 0009| minor traffic violations), the charge, the | 0010| date of the charge, the name and address of | 0011| the court involved and the disposition, if | 0012| any; | 0013| (j) for each criminal charge (excluding minor | 0014| traffic charges), whether or not there is a | 0015| conviction, if such criminal charge is not | 0016| otherwise listed pursuant to Paragraph | 0017| B.5.(h) or B.5.(i) of this section, the | 0018| criminal charge, the date of the charge, the | 0019| name and address of the court involved and | 0020| the disposition, if any; | 0021| (k) the name and address of any licensing or | 0022| regulatory agency with which the person has | 0023| filed an application for an occupational | 0024| license or permit, as an applicant, | 0025| principal, primary management official or | 0001| key employee, and whether or not such | 0002| license or permit was granted; | 0003| (l) a current photograph; | 0004| (m) fingerprints, which shall be taken by | 0005| officers of the tribal police department or | 0006| by another law enforcement agency and | 0007| forwarded directly to the tribal police | 0008| department. Pursuant to a Memorandum of | 0009| Understanding between the Tribe and the | 0010| National Indian Gaming Commission | 0011| ("Commission"), tribal police officers shall | 0012| forward the fingerprint cards directly to | 0013| the Commission; | 0014| (n) the fee required by the Tribal Gaming | 0015| Agency; and | 0016| (o) any other information the Tribal Gaming | 0017| Agency deems relevant. | 0018| C. Background Investigations. | 0019| 1. Upon receipt of a completed application and | 0020| required fee for licensing, the Tribal Gaming | 0021| Agency shall conduct or cause to be conducted a | 0022| background investigation to ensure that the | 0023| applicant is qualified for licensing. | 0024| 2. Background checks of applicants will be performed | 0025| pursuant to the following procedures: | 0001| (a) The Tribal Gaming Agency will provide | 0002| applications to potential applicants upon | 0003| request and shall collect and maintain the | 0004| applications. | 0005| (b) Pursuant to a Memorandum of Understanding | 0006| between the Tribe and the Commission, tribal | 0007| police officers will collect fingerprints | 0008| from all applicants and forward the | 0009| fingerprint cards directly to the | 0010| Commission. The Commission will obtain a | 0011| criminal history record from the Federal | 0012| Bureau of Investigation on each applicant | 0013| and forward such information to the Tribal | 0014| Gaming Agency. | 0015| (c) The Tribal Gaming Agency shall investigate | 0016| the information provided in the | 0017| applications. This investigation shall | 0018| include: | 0019| (1) contacting persons or entities identified | 0020| in the application and verifying by | 0021| written or oral communication that the | 0022| information contained in the application | 0023| is accurate; | 0024| (2) interviewing a sufficient number of | 0025| knowledgeable people, such as former | 0001| employers, partners, business associates, | 0002| and others referred to in the | 0003| application, to provide a basis for the | 0004| Tribal Gaming Agency to make a | 0005| determination concerning whether the | 0006| applicant meets applicable eligibility | 0007| requirements; | 0008| (3) reviewing relevant financial records of | 0009| the applicant for the three (3) years | 0010| preceding the application; and | 0011| (4) contacting any state, federal or other | 0012| government agency that is referred to in | 0013| the application. | 0014| (d) The Tribal Gaming Agency shall document any | 0015| information it obtains that calls into | 0016| question whether the applicant would meet the | 0017| eligibility requirements under the Ordinance. | 0018| The Tribal Gaming Agency shall then document | 0019| in detail the disposition of these problem | 0020| areas, indicating the follow-up investigations | 0021| performed on the problem areas and the result | 0022| of such investigations. | 0023| (e) The Tribal Gaming Agency will review the | 0024| results of the investigation. This review | 0025| will include a determination as to the scope | 0001| of the investigation and whether sufficient | 0002| information was obtained and verified. If | 0003| such information is found not sufficient, the | 0004| Tribal Gaming Agency will perform additional | 0005| investigations. | 0006| (f) Once the investigation is complete, the Tribal | 0007| Gaming Agency will decide whether the | 0008| applicant meets the eligibility criteria under | 0009| the Ordinance. | 0010| 3. In conducting a background investigation, the | 0011| Tribal Gaming Agency and its agents shall keep | 0012| confidential the identity of each person | 0013| interviewed in the course of the investigation. | 0014| 4. Within twenty (20) days of the receipt of a | 0015| completed application for licensing, and upon | 0016| request of an applicant, the Tribal Gaming Agency | 0017| may issue a temporary license to the applicant, | 0018| unless the background investigation undertaken | 0019| discloses that the applicant has a criminal | 0020| history, or unless other grounds sufficient to | 0021| disqualify the applicant are apparent on the face | 0022| of the application. The temporary license shall | 0023| become void and be of no effect upon either: | 0024| (a) the issuance of the license; | 0025| (b) the issuance of a notice of denial; or | 0001| (c) ninety (90) days after the temporary license | 0002| is issued, whichever occurs first. | 0003| 5. The Tribal Gaming Agency shall review a person's | 0004| prior activities, criminal record, if any, and | 0005| reputation, habits and associations to make a | 0006| finding concerning the eligibility or suitability | 0007| of an applicant, or a principal, key employee or | 0008| primary management official of an applicant, for | 0009| employment or involvement in a gaming enterprise. | 0010| After such consultation, the Tribal Gaming Agency | 0011| shall either issue a license or deny the | 0012| application. If the Tribal Gaming Agency | 0013| determines that employment or involvement of the | 0014| applicant poses a threat to the public interest or | 0015| to the effective regulation of Class III Gaming or | 0016| creates or enhances dangers of unsuitable, unfair | 0017| or illegal practices, methods or activities in the | 0018| conduct of Class III Gaming, the Tribal Gaming | 0019| Agency shall deny the application. | 0020| 6. The Tribal Gaming Agency shall retain the right to | 0021| conduct additional background investigations of any | 0022| person required to be licensed at any time while | 0023| the license is valid. | 0024| D. Procedure for Forwarding Applications and Reports. | 0025| Procedures for forwarding applications and investigative reports | 0001| to the Commission and State Gaming Representative: | 0002| 1. When a key employee or primary management official | 0003| begins work at a gaming enterprise authorized by | 0004| this Compact, the Tribal Gaming Agency shall | 0005| forward to the Commission and the State Gaming | 0006| Representative a completed application for | 0007| employment. | 0008| 2. The Tribal Gaming Agency shall forward the report | 0009| referred to in Paragraph D.4. of this section to | 0010| the Commission and the State Gaming Representative | 0011| within sixty (60) days after an employee begins | 0012| work, or within sixty (60) days of the approval of | 0013| this Compact by the Secretary of the Interior. | 0014| 3. A key employee or primary management official who | 0015| does not have a license shall not be employed after | 0016| ninety (90) days. | 0017| 4. The Tribal Gaming Agency shall prepare and forward | 0018| to the Commission and the State Gaming | 0019| Representative a report on each background | 0020| investigation ("Investigative Report"). An | 0021| Investigative Report shall include all of the | 0022| following: | 0023| (a) steps taken in conducting the background | 0024| investigation; | 0025| (b) results obtained; | 0001| (c) conclusions reached; and | 0002| (d) the basis for those conclusions. | 0003| 5. The Tribal Gaming Agency shall submit with the | 0004| Investigative Report a copy of the eligibility | 0005| determination made under Paragraph C.5. of this | 0006| section. | 0007| 6. If a license is not issued to an applicant, the | 0008| Tribal Gaming Agency shall notify the Commission | 0009| and the State Gaming Representative. | 0010| 7. With respect to principals, key employees and | 0011| primary management officials, the Tribal Gaming | 0012| Agency shall retain applications for employment and | 0013| Investigative Reports (if any) for no less than | 0014| three (3) years from the date of termination of | 0015| employment. | 0016| E. Granting a Gaming License. | 0017| 1. If within thirty (30) days after it receives an | 0018| Investigative Report, neither the Commission nor | 0019| the State Gaming Representative has notified the | 0020| Tribal Gaming Agency that it has an objection to | 0021| the issuance of a license pursuant to a license | 0022| application filed by a principal, key employee or | 0023| primary management official, the Tribal Gaming | 0024| Agency may issue a license to such applicant. | 0025| 2. The Tribal Gaming Agency shall respond to any | 0001| request for additional information from the | 0002| Commission or the State Gaming Representative | 0003| concerning a principal, key employee or primary | 0004| management official who is the subject of an | 0005| Investigative Report. Such a request shall suspend | 0006| the thirty-day (30-day) period under Paragraph E.1. | 0007| of this section until the Commission or the State | 0008| Gaming Representative receives the additional | 0009| information; however, in no event shall a request | 0010| for additional information by the State Gaming | 0011| Representative extend the thirty-day (30-day) | 0012| period under Paragraph E.1. of this section for a | 0013| total period of more than sixty (60) days from the | 0014| date the State Gaming Representative received the | 0015| Investigative Report. | 0016| 3. If, within the thirty-day (30-day) period described | 0017| above, the Commission or the State Gaming | 0018| Representative provides the Tribal Gaming Agency | 0019| with a statement itemizing objections to the | 0020| issuance of a license to a principal, key employee | 0021| or primary management official for whom the Tribal | 0022| Gaming Agency has provided an application and | 0023| Investigative Report, the Tribal Gaming Agency | 0024| shall reconsider the application, taking into | 0025| account the objections itemized by the Commission | 0001| and/or the State Gaming Representative, and make a | 0002| final decision whether to issue a license to such | 0003| applicant. | 0004| F. Management Contract. | 0005| 1. If the Tribe chooses to enter into a Management | 0006| Contract, the Tribal Gaming Agency shall require | 0007| that all principals, primary management officials | 0008| and key employees of the Management Contractor be | 0009| licensed. | 0010| 2. The Tribe may enter into a Management Contract only | 0011| if the Management Contract: | 0012| (a) provides that all Class III Gaming covered by | 0013| the Management Contract will be conducted in | 0014| accordance with the IGRA, the Ordinance and | 0015| this Compact; | 0016| (b) enumerates the responsibilities of each of the | 0017| parties for each identifiable function, | 0018| including: | 0019| (1) maintaining and improving the Gaming | 0020| Facility; | 0021| (2) providing operating capital; | 0022| (3) establishing operating days and hours; | 0023| (4) hiring, firing, training and promoting | 0024| employees; | 0025| (5) maintaining the gaming enterprise's books | 0001| and records; | 0002| (6) preparing the gaming enterprise's | 0003| financial statements and reports; | 0004| (7) paying for the services of the | 0005| independent auditor engaged pursuant to | 0006| 25 C.F.R. 571.12; | 0007| (8) hiring and supervising security | 0008| personnel; | 0009| (9) providing fire protection services; | 0010| (10) setting an advertising budget and placing | 0011| advertising; | 0012| (11) paying bills and expenses; | 0013| (12) establishing and administering employment | 0014| practices; | 0015| (13) obtaining and maintaining insurance | 0016| coverage, including coverage of public | 0017| liability and property loss or damage; | 0018| (14) complying with all applicable provisions | 0019| of the Internal Revenue Code of 1986, as | 0020| amended; | 0021| (15) paying the cost of public safety | 0022| services; and | 0023| (16) if applicable, supplying the Commission | 0024| with all information necessary for the | 0025| Commission to comply with the National | 0001| Environmental Policy Act of 1969; | 0002| (c) provides for the establishment and maintenance | 0003| of satisfactory accounting systems and | 0004| procedures that shall, at a minimum: | 0005| (1) include an adequate system of internal | 0006| controls; | 0007| (2) permit the preparation of financial | 0008| statements in accordance with generally | 0009| accepted accounting principles; | 0010| (3) be susceptible to audit; | 0011| (4) permit the calculation and payment of the | 0012| Management Contractor's fee; and | 0013| (5) provide for the allocation of operating | 0014| expenses or overhead expenses among the | 0015| Tribe, the Management Contractor and any | 0016| other user of a shared Gaming Facility | 0017| and services; | 0018| (d) requires the Management Contractor to provide | 0019| the Tribe, not less frequently than monthly, | 0020| verifiable financial reports or all | 0021| information necessary to prepare such reports; | 0022| (e) requires the Management Contractor to provide | 0023| immediate access to the Gaming Facility, | 0024| including its books and records, by | 0025| appropriate officials of the Tribe, who shall | 0001| have: | 0002| (1) the right to verify the daily gross | 0003| revenues and income from the gaming | 0004| enterprise; and | 0005| (2) access to any other gaming-related | 0006| information the Tribe deems appropriate; | 0007| (f) provides for a minimum guaranteed monthly | 0008| payment to the Tribe in a sum certain that has | 0009| preference over the retirement of development | 0010| and construction costs; | 0011| (g) provides an agreed upon maximum dollar amount | 0012| for the recoupment of development and | 0013| construction costs; | 0014| (h) provides for a term not to exceed the period | 0015| allowed by the IGRA; | 0016| (i) details the method of compensating and | 0017| reimbursing the Management Contractor. If a | 0018| Management Contract provides for a percentage | 0019| fee, such fee shall be either: | 0020| (1) not more than thirty percent (30%) of the | 0021| net revenues of the gaming enterprise if | 0022| the Chairman of the Commission determines | 0023| that such percentage is reasonable | 0024| considering the circumstances; or | 0025| (2) not more than forty percent (40%) of the | 0001| net revenues if the Chairman of the | 0002| Commission is satisfied that the capital | 0003| investment required and income | 0004| projections for the gaming enterprise | 0005| require the additional fee; | 0006| (j) provides the grounds and mechanisms for | 0007| modifying or terminating the Management | 0008| Contract; | 0009| (k) contains a mechanism to resolve disputes | 0010| between: | 0011| (1) the Management Contractor and customers, | 0012| consistent with the procedures in the | 0013| Ordinance; | 0014| (2) the Management Contractor and the Tribe; | 0015| and | 0016| (3) the Management Contractor and the gaming | 0017| enterprise employees; | 0018| (l) indicates whether and to what extent contract | 0019| assignments and subcontracting are | 0020| permissible; | 0021| (m) indicates whether and to what extent changes | 0022| in the ownership interest in the Management | 0023| Contract require advance approval by the | 0024| Tribe; and | 0025| (n) states that the Management Contract shall not | 0001| be effective unless and until it is approved | 0002| by the Chairman of the Commission, date of | 0003| signature of the parties notwithstanding. | 0004| 3. The Tribe shall not enter into any Management | 0005| Contract if the Tribal Gaming Agency determines | 0006| that the Management Contractor or any principal, | 0007| primary management official or key employee of the | 0008| Management Contractor is not licensed or is | 0009| ineligible to be licensed. | 0010| G. Confidentiality of Records. Any and all background | 0011| Investigative Reports on employees or contractors, supporting | 0012| documents acquired or generated in connection therewith, and any | 0013| other Investigative Reports or documents acquired or generated | 0014| in the course of investigations performed by the Tribe or the | 0015| Tribal Gaming Agency, that are provided to the State Gaming | 0016| Representative or any other agency or official of the State by | 0017| the Tribal Gaming Agency or the Tribe pursuant to the provisions | 0018| of this Compact, shall not be deemed public records of the State | 0019| and shall not be disclosed to any member of the public without | 0020| the prior express written authorization of an authorized | 0021| representative of the Tribe; provided, that nothing herein shall | 0022| preclude any State agency or official from providing information | 0023| to a federal agency or official having responsibility relative | 0024| to Indian Gaming or from compliance with any valid order of a | 0025| court having jurisdiction. | 0001| SECTION 6. Providers of Class III Gaming Equipment or Devices | 0002| or Supplies. | 0003| A. Within thirty (30) days after the effective date of | 0004| this Compact, if it has not already done so, the Tribal Gaming | 0005| Agency will adopt standards for any and all Class III Gaming | 0006| equipment, devices or supplies to be purchased, leased or | 0007| otherwise acquired by the Tribe after the effective date of this | 0008| Compact for use in any Gaming Facility, which standards shall be | 0009| at least as strict as the comparable standards applicable to | 0010| Class III Gaming equipment, devices or supplies within the State | 0011| of Nevada. Any and all Class III Gaming equipment, devices or | 0012| supplies acquired by the Tribe after the date of this Compact | 0013| shall meet or exceed the standards thereby adopted, and any and | 0014| all Class III Gaming equipment, devices or supplies used by the | 0015| Tribe in its Gaming Facilities as of the effective date of this | 0016| Compact shall be upgraded or replaced, if necessary, so as to | 0017| comply with such standards, by no later than one (1) year after | 0018| the effective date of this Compact. | 0019| B. Prior to entering into any future lease or purchase | 0020| agreement for Class III Gaming equipment, devices or supplies, | 0021| the Tribe shall obtain sufficient information and identification | 0022| from the proposed seller or lessor and all persons holding any | 0023| direct or indirect financial interest in the lessor or the | 0024| lease/purchase agreement to permit the Tribe to license those | 0025| persons in accordance with Section 5, hereof. | 0001| C. The seller, lessor, manufacturer or distributor shall | 0002| provide, assemble and install all Class III Gaming equipment, | 0003| devices or supplies in a manner approved and licensed by the | 0004| Tribe. | 0005| SECTION 7. Dispute Resolution. | 0006| A. In the event either party believes that the other | 0007| party has failed to comply with or has otherwise breached any | 0008| provision of this Compact, such party may invoke the following | 0009| procedure: | 0010| 1. The party asserting noncompliance shall serve | 0011| written notice on the other party. The notice | 0012| shall identify the specific Compact provision | 0013| believed to have been violated and shall specify | 0014| the factual and legal basis for the alleged | 0015| noncompliance. The notice shall specifically | 0016| identify the date, time and nature of the alleged | 0017| noncompliance. Representatives of the State and | 0018| Tribe shall thereafter meet within thirty (30) days | 0019| in an effort to resolve the dispute. | 0020| 2. In the event an allegation by the complaining party | 0021| is not resolved to the satisfaction of such party | 0022| within ninety (90) days after service of the notice | 0023| set forth in Paragraph A.1. of this section, the | 0024| complaining party may serve upon the other party a | 0025| notice to cease conduct of the particular game(s) | 0001| or activities alleged by the complaining party to | 0002| be in noncompliance. Upon receipt of such notice, | 0003| the responding party may elect to stop the game(s) | 0004| or activities specified in the notice or invoke | 0005| arbitration and continue the game(s) or activities | 0006| pending the results of arbitration. The responding | 0007| party shall act upon one of the foregoing options | 0008| within thirty (30) days of receipt of notice from | 0009| the complaining party. | 0010| 3. Arbitration under this authority shall be conducted | 0011| under the Commercial Arbitration Rules of the | 0012| American Arbitration Association, except that the | 0013| arbitrators shall be attorneys who are licensed | 0014| members in good standing of the State Bar of New | 0015| Mexico or of the bar of another state. The State | 0016| will select one arbitrator, the Tribe a second | 0017| arbitrator, and the two so chosen shall select a | 0018| third arbitrator. If the third arbitrator is not | 0019| chosen in this manner within ten (10) days after | 0020| the second arbitrator is selected, the third | 0021| arbitrator will be chosen in accordance with the | 0022| rules of the American Arbitration Association. | 0023| 4. All parties shall bear their own costs of | 0024| arbitration and attorney fees. | 0025| 5. The results of arbitration shall be enforceable by | 0001| an action for injunctive or mandatory injunctive | 0002| relief against the State and the Tribe in any court | 0003| of competent jurisdiction. For purposes of any | 0004| such action, the State and the Tribe acknowledge | 0005| that any action or failure to act on the part of | 0006| any agent or employee of the State or the Tribe, | 0007| contrary to a decision of the arbitrators in an | 0008| arbitration proceeding conducted under the | 0009| provisions of this section, occurring after such | 0010| decision, shall be wholly unauthorized and ultra | 0011| vires acts, not protected by the sovereign immunity | 0012| of the State or the Tribe. | 0013| B. Nothing in Subsection 7A. shall be construed to waive, | 0014| limit or restrict any remedy that is otherwise available to | 0015| either party to enforce or resolve disputes concerning the | 0016| provisions of this Compact. Nothing in this Compact shall be | 0017| deemed a waiver of the Tribe's sovereign immunity. Nothing in | 0018| this Compact shall be deemed a waiver of the State's sovereign | 0019| immunity. | 0020| SECTION 8. Protection of Visitors. | 0021| A. Liability to Visitors. The safety and protection of | 0022| visitors to a Gaming Facility and uniformity and application of | 0023| laws and jurisdiction of claims is directly related to and | 0024| necessary for the regulation of Tribal gaming activities in this | 0025| state. To that end, the general civil laws of New Mexico and | 0001| concurrent civil jurisdiction in the State courts and the Tribal | 0002| courts shall apply to a visitor's claim of liability for bodily | 0003| injury or property damage proximately caused by the conduct of | 0004| the Gaming Enterprise and: | 0005| 1. occurring at a Gaming Facility, other premises, | 0006| structures, on grounds or involving vehicles and | 0007| mobile equipment used by a Gaming Enterprise; | 0008| 2. arising out of a condition at the Gaming Facility | 0009| or on premises or roads and passageways immediately | 0010| adjoining it; | 0011| 3. occurring outside of the Gaming Facility but | 0012| arising from the activities of the Gaming | 0013| Enterprise; | 0014| 4. as a result of a written contract that directly | 0015| relates to the ownership, maintenance or use of a | 0016| Gaming Facility or when the liability of others is | 0017| assumed by the Gaming Enterprise; or | 0018| 5. on a road or other passageway on Indian lands while | 0019| the visitor is traveling to or from the Gaming | 0020| Facility. | 0021| B. Insurance Coverage for Claims Required. The Gaming | 0022| Enterprise shall maintain in effect policies of liability | 0023| insurance insuring the Tribe, its agents and employees against | 0024| claims, demands or liability for bodily injury and property | 0025| damages by a visitor arising from an occurrence described in | 0001| Subsection A of this section. The policies shall provide bodily | 0002| injury and property damage coverage in an amount of a least one | 0003| million dollars ($1,000,000) per person and ten million dollars | 0004| ($10,000,000) per occurrence. The Tribe shall provide the State | 0005| Gaming Representative annually a certificate of insurance | 0006| showing that the Tribe, its agents and employees are insured to | 0007| the required extent and in the circumstances described in this | 0008| section. | 0009| C. Limitation on Time to Bring Claim. Claims brought | 0010| pursuant to the provisions of this section must be commenced by | 0011| filing an action in court or a demand for arbitration within | 0012| three years of the date the claim accrues. | 0013| D. Specific Waiver of Immunity. The Tribe, by entering | 0014| into this Compact and agreeing to the provisions of this | 0015| section, waives its defense of sovereign immunity in connection | 0016| with any claims for compensatory damages up to the amount of one | 0017| million dollars ($1,000,000) per injured person and ten million | 0018| dollars ($10,000,000) per occurrence asserted as provided in | 0019| this section. This is a limited waiver and does not waive the | 0020| tribe's immunity from suit for any other purpose. The Tribe | 0021| shall ensure that a policy of insurance that it acquires to | 0022| fulfill the requirements of this section shall include a | 0023| provision under which the insurer agrees not to assert the | 0024| defense of sovereign immunity on behalf of the insured. | 0025| E. Election by Visitor. A visitor having a claim | 0001| described in this section may pursue that claim in the State | 0002| court of general jurisdiction for such claims or the Tribal | 0003| court or, at the option of the visitor, may proceed to enforce | 0004| the claim in binding arbitration. The visitor shall make a | 0005| written election that is final and binding upon the visitor. | 0006| F. Arbitration. Arbitration shall be conducted pursuant | 0007| to an election by a visitor as provided in Subsection E of this | 0008| section as follows: | 0009| 1. the visitor shall submit a written demand for | 0010| arbitration to the Gaming Enterprise, by certified | 0011| mail, return receipt requested; | 0012| 2. the visitor and the Gaming Enterprise shall each | 0013| designate an arbitrator within thirty (30) days of | 0014| the date of receipt of the demand, and the two | 0015| arbitrators shall select a third arbitrator; | 0016| 3. the arbitration panel shall permit the parties to | 0017| engage in reasonable discovery, and shall establish | 0018| other procedures to ensure a full, fair and | 0019| expeditious hearing on the claim; and | 0020| 4. the award of the arbitration panel shall be final | 0021| and binding. | 0022| G. Public Health and Safety. The Tribe shall establish | 0023| for its Gaming Facility health, safety and construction | 0024| standards that are at least as stringent as the current editions | 0025| of the National Electrical Code, the Uniform Building Code, the | 0001| Uniform Mechanical Code, the Uniform Fire Code and the Uniform | 0002| Plumbing Code, and any and all Gaming Facilities or additions | 0003| thereto constructed by the Tribe hereafter shall be constructed | 0004| and all facilities shall be maintained so as to comply with such | 0005| standards. Inspections will be conducted with respect to these | 0006| standards at least annually. If the State Gaming Representative | 0007| requests sufficiently in advance of an annual inspection, the | 0008| State Gaming Representative may be present during such | 0009| inspection. The Tribe agrees to correct any deficiencies noted | 0010| in such inspections within a time agreed upon between the State | 0011| and Tribe. The Tribal Gaming Agency will provide copies of such | 0012| inspection reports to the State Gaming Representative, if | 0013| requested to do so in writing. | 0014| SECTION 9. Effective Date. This Compact shall be effective | 0015| immediately upon the occurrence of the last of the following: | 0016| A. execution by the Tribe's Governor after approval of the | 0017| Tribal Council; | 0018| B. execution by the Governor of the State; | 0019| C. approval by the Secretary of the Interior; and | 0020| D. publication in the Federal Register. | 0021| The Governor is authorized to execute compacts with an | 0022| individual Tribe that has also entered into revenue-sharing | 0023| agreements and has passed resolutions described herein, in | 0024| substantially the same form as set forth herein. Upon signature | 0025| by the Governor and the Tribe, the Compact shall be transmitted | 0001| to the Secretary of the Interior for approval. | 0002| SECTION 10. Criminal Jurisdiction. | 0003| A. The Tribe and the State acknowledge that under the | 0004| provisions of 23 of the IGRA, especially that portion codified | 0005| at 18 U.S.C. 1166(d), jurisdiction to prosecute violations of | 0006| State gambling laws made applicable by that section to Indian | 0007| country is vested exclusively within the United States, unless | 0008| the Tribe and the State agree in a compact entered into pursuant | 0009| to the IGRA to transfer such jurisdiction to the State. | 0010| B. The Tribe and the State hereby agree that, in the event | 0011| of any violation of any State gambling law on Indian Lands or | 0012| any other crime against the Gaming Enterprise or any employee | 0013| thereof or that occurs on the premises of the Tribal Gaming | 0014| Facility, that is committed by any person who is not a member of | 0015| the Tribe, the State shall have and may exercise jurisdiction, | 0016| concurrent with that of the United States, to prosecute such | 0017| person, under its laws and in its courts. | 0018| C. Immediately upon becoming aware of any such suspected | 0019| crime by a nonmember of the Tribe, the Gaming Enterprise or the | 0020| Tribal Gaming Agency shall notify the state attorney general and | 0021| the district attorney for the district in which the Gaming | 0022| Facility is located, supplying all particulars available to the | 0023| tribal entity at the time. The Tribe agrees that its law | 0024| enforcement and gaming agencies shall perform such additional | 0025| investigation or take such other steps in furtherance of the | 0001| investigation and prosecution of the violation as the district | 0002| attorney may reasonably request, and otherwise cooperate fully | 0003| with the district attorney and any state law enforcement | 0004| agencies with respect to the matter, but once notice of a | 0005| suspected violation has been given to the district attorney, the | 0006| matter shall be deemed to be under the jurisdiction of the State | 0007| (except that in the event of emergency circumstances involving a | 0008| possible violation, the Tribe and its constituent agencies shall | 0009| have the discretion to act as they see fit, and to call upon | 0010| such other agencies or entities as they deem reasonable or | 0011| necessary, in order to protect against any immediate threat to | 0012| lives or property). The State may, in its discretion, refer the | 0013| matter to federal authorities, but it shall notify the Tribal | 0014| Gaming Agency upon doing so. | 0015| D. The State agrees that no less frequently than annually | 0016| it will provide the Tribal Gaming Agency with a written report | 0017| of the status and disposition of each matter referred to it | 0018| under the provisions of this section that is still pending. In | 0019| the event the district attorney to whom a matter is referred | 0020| under the provisions of this section decides not to prosecute | 0021| such matter, the district attorney shall promptly notify the | 0022| Tribal Gaming Agency of such decision in writing. The Tribal | 0023| Gaming Agency may in that event ask the attorney general of the | 0024| state to pursue the matter. | 0025| E. The district attorney for the district in which the | 0001| Gaming Facility is situated may decline to accept referrals of | 0002| cases under the provisions of this section unless and until the | 0003| Tribe has entered into a Memorandum of Understanding with the | 0004| office of the district attorney to which Memorandum of | 0005| Understanding the United States Attorney for the District of New | 0006| Mexico may also be a party addressing such matters as the | 0007| specific procedures by which cases are to be referred, | 0008| participation of the Tribal Gaming Agency and tribal law | 0009| enforcement personnel in the investigation and prosecution of | 0010| any such case, payments by the Tribe to the office of the | 0011| district attorney to defray the costs of handling cases referred | 0012| under the provisions of this section, and related matters. | 0013| SECTION 11. Binding Effect and Duration. | 0014| A. This Compact shall be binding upon the State and Tribe | 0015| for a term of ten (10) years from the date it becomes effective | 0016| and may renew for an additional period. | 0017| B. Before the date that is one (1) year prior to the | 0018| expiration of the ten-year (10-year) initial term, and/or before | 0019| the date that is one (1) year prior to the expiration of the | 0020| renewal period, either party may serve written notice on the | 0021| other of its desire to renegotiate this Compact. | 0022| C. In the event that either party gives written notice to | 0023| the other of its desire to renegotiate this Compact pursuant to | 0024| Subsection B. of this section, the Tribe may, pursuant to the | 0025| procedures of the IGRA, request the State to enter into | 0001| negotiations for a new compact governing the conduct of Class | 0002| III Gaming. If the parties are unable to conclude a successor | 0003| compact, this Compact shall terminate. | 0004| D. Notwithstanding the foregoing, at any time while this | 0005| Compact remains in effect, either party may, by written notice | 0006| to the other party, request reopening of negotiations with | 0007| respect to any provision of this Compact, or with respect to any | 0008| issue not addressed in the Compact, specifying such provision or | 0009| issue in such notice. No such request shall be unreasonably | 0010| refused, but neither party shall be required to agree to any | 0011| change in the Compact, and no agreement to supplement or amend | 0012| this Compact in any respect shall have any validity until the | 0013| same shall have been approved in writing by the Tribe, the State | 0014| and the Secretary of the Interior and notice of such approval | 0015| published in the Federal Register. | 0016| E. The Tribe may operate Class III Gaming only while this | 0017| Compact or any renegotiated compact is in effect. | 0018| SECTION 12. Notice to Parties. | 0019| Unless otherwise indicated, all notices, payments, | 0020| requests, reports, information or demand that any party hereto | 0021| may desire or may be required to give to the other party hereto, | 0022| shall be in writing and shall be personally delivered or sent by | 0023| first-class mail sent to the other party at the address provided | 0024| in writing by the other party. Every notice, payment, request, | 0025| report, information or demand so given shall be deemed effective | 0001| upon receipt or, if mailed, upon receipt or the expiration of | 0002| the third day following the day of mailing, whichever occurs | 0003| first, except that any notice of change of address shall be | 0004| effective only upon receipt by the party to whom said notice is | 0005| addressed. | 0006| SECTION 13. Entire Agreement. | 0007| This Compact is the entire agreement between the parties | 0008| and supersedes all prior agreements, whether written or oral, | 0009| with respect to the subject matter hereof. Neither this Compact | 0010| nor any provision herein may be changed, waived, discharged or | 0011| terminated orally, but only by an instrument, in writing, signed | 0012| by the Tribe and the State and approved by the Secretary of the | 0013| Interior. This Compact shall not be amended without the express | 0014| approval of the Tribe, the Governor of the State and the State | 0015| Legislature. | 0016| SECTION 14. Filing of Compact with State Records Center. | 0017| Upon the effective date of this Compact, a copy shall be | 0018| filed by the Governor with the New Mexico Records Center. Any | 0019| subsequent amendment or modification of this Compact shall be | 0020| filed with the New Mexico Records Center. | 0021| SECTION 15. Counterparts. | 0022| This Compact may be executed by the parties in any number | 0023| of separate counterparts with the same effect as if the | 0024| signatures were upon the same instrument. All such counterparts | 0025| shall together constitute one and the same document.". | 0001| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL | 0002| GAMING REVENUE.--The governor is authorized to execute a | 0003| revenue-sharing agreement in the form substantially set forth in | 0004| this section with any New Mexico Indian nation, tribe or pueblo | 0005| that has also entered into an Indian gaming compact as provided | 0006| by law. Execution of an Indian gaming compact is conditioned | 0007| upon execution of a revenue-sharing agreement. The | 0008| consideration for the Indian entity entering into the revenue- | 0009| sharing agreement is the condition of the agreement providing | 0010| limited exclusivity of gaming activities to the tribal entity. | 0011| The revenue-sharing agreement shall be in substantially the | 0012| following form and is effective when executed by the governor on | 0013| behalf of the state and the appropriate official of the Indian | 0014| entity: | 0015| "REVENUE-SHARING AGREEMENT | 0016| 1. Summary and consideration. The Tribe shall agree to | 0017| contribute a portion of its Class III Gaming revenues identified | 0018| in and under procedures of this Revenue-Sharing Agreement, in | 0019| return for which the State agrees that the Tribe: | 0020| A. has the exclusive right within the State to | 0021| provide all types of Class III Gaming described in the Indian | 0022| Gaming Compact, with the sole exception of the use of Gaming | 0023| Machines, which the State may permit on a limited basis for | 0024| racetracks and veterans' and fraternal organizations; and | 0025| B. will only share that part of its revenue arising | 0001| from the use of Gaming Machines and all other gaming revenue is | 0002| exclusively the Tribe's. | 0003| 2. Revenue to State. The parties agree that, after the | 0004| effective date hereof, the Tribe shall make the quarterly | 0005| payments provided for in Paragraph 3 of the Revenue Sharing | 0006| Agreement to the state treasurer for deposit into the General | 0007| Fund of the State ("State General Fund"). | 0008| 3. Calculation of Revenue to State. | 0009| A. As used in this Revenue-Sharing Agreement, "net | 0010| win" means the annual total amount wagered at a Gaming Facility | 0011| on Gaming Machines less the following amounts: | 0012| (1) the annual amount paid out in prizes from | 0013| gaming on Gaming Machines; | 0014| (2) the actual amount of regulatory fees paid to | 0015| the state; and | 0016| (3) the sum of two hundred fifty thousand dollars | 0017| ($250,000) per year as an amount representing tribal regulatory | 0018| fees, with these amounts increasing by five percent (5%) each | 0019| year beginning on the first day of January occurring after the | 0020| Compact has been in effect for at least twelve months. | 0021| B. The Tribe shall pay the state sixteen percent | 0022| (16%) of the net win. | 0023| C. For purposes of these payments, all calculations | 0024| of amounts due shall be based upon the quarterly activity of the | 0025| gaming facility. Quarterly payments due to the State pursuant | 0001| to these terms shall be paid no later than twenty-five (25) days | 0002| after the last day of each calendar quarter. Any payments due | 0003| and owing from the Tribe in the quarter the Compact is approved, | 0004| or the final quarter the Compact is in force, shall reflect the | 0005| net win, but only for the portion of the quarter the Compact is | 0006| in effect. | 0007| 4. Limitations. The Tribe's obligation to make the | 0008| payments provided for in Paragraphs 2 and 3 of this section | 0009| shall apply and continue only so long as there is a binding | 0010| Indian Gaming Compact in effect between the Tribe and the State, | 0011| which Compact provides for the play of Class III Gaming, but | 0012| shall terminate in the event of any of the following conditions: | 0013| A. If the State passes, amends, or repeals any law, | 0014| or takes any other action, which would directly or indirectly | 0015| attempt to restrict, or has the effect of restricting, the scope | 0016| of Indian gaming. | 0017| B. If the State permits any expansion of nontribal | 0018| Class III Gaming in the State. Notwithstanding this general | 0019| prohibition against permitted expansion of gaming activities, | 0020| the State may permit: (1) the enactment of a State lottery, (2) | 0021| any fraternal, veterans or other nonprofit membership | 0022| organization to operate such electronic gaming devices lawfully, | 0023| but only for the benefit of such organization's members, (3) | 0024| limited fundraising activities conducted by nonprofit tax exempt | 0025| organizations pursuant to Section 30-19-6 NMSA 1978, and (4) any | 0001| horse racetracks to operate electronic gaming devices on days on | 0002| which live or simulcast horse racing occurs. | 0003| 5. Effect of Variance. In the event the acts or omissions | 0004| of the State cause the Tribe's obligation to make payments under | 0005| Paragraph 3 of this section to terminate under the provisions of | 0006| Paragraph 4 of this section, such cessation of obligation to pay | 0007| will not adversely affect the validity of the Compact, but the | 0008| amount that the Tribe agrees to reimburse the State for | 0009| regulatory fees under the Compact shall automatically increase | 0010| by twenty percent (20%). | 0011| 6. Third-Party Beneficiaries. This Agreement is not | 0012| intended to create any third-party beneficiaries and is entered | 0013| into solely for the benefit of the Tribe and the State.". | 0014| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 | 0015| through 63 of this act may be cited as the "Gaming Control Act". | 0016| Section 4. [NEW MATERIAL] POLICY.--It is the state's | 0017| policy on gaming that: | 0018| A. limited gaming activities should be allowed in | 0019| the state if those activities are strictly regulated to ensure | 0020| honest and competitive gaming that is free from criminal and | 0021| corruptive elements and influences; and | 0022| B. the holder of any license issued by the state in | 0023| connection with the regulation of gaming activities has a | 0024| revocable privilege only and has no property right or vested | 0025| interest in the license. | 0001| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0002| Gaming Control Act: | 0003| A. "affiliate" means a person who, directly or | 0004| indirectly through one or more intermediaries, controls, is | 0005| controlled by or is under common control with a specified | 0006| person; | 0007| B. "affiliated company" means a company that: | 0008| (1) controls, is controlled by or is under | 0009| common control with a company licensee; and | 0010| (2) is involved in gaming activities or | 0011| involved in the ownership of property on which gaming is | 0012| conducted; | 0013| C. "applicant" means a person who has applied for a | 0014| license or for approval of an act or transaction for which | 0015| approval is required or allowed pursuant to the provisions of | 0016| the Gaming Control Act; | 0017| D. "application" means a request for the issuance of | 0018| a license or for approval of an act or transaction for which | 0019| approval is required or allowed pursuant to the provisions of | 0020| the Gaming Control Act, but "application" does not include a | 0021| supplemental form or information that may be required with the | 0022| application; | 0023| E. "associated equipment" means equipment or a | 0024| mechanical, electromechanical or electronic contrivance, | 0025| component or machine used in connection with gaming; | 0001| F. "board" means the gaming control board; | 0002| G. "certification" means a notice of approval by the | 0003| board of a person required to be certified by the board; | 0004| H. "certified technician" means a person certified | 0005| by a manufacturer licensee to repair and service gaming devices, | 0006| but who is prohibited from programming gaming devices; | 0007| I. "company" means a corporation, partnership, | 0008| limited partnership, trust, association, joint stock company, | 0009| joint venture, limited liability company or other form of | 0010| business organization that is not a natural person; | 0011| J. "distributor" means a person who supplies gaming | 0012| devices to a gaming operator but does not manufacture gaming | 0013| devices; | 0014| K. "equity security" means an interest in a company | 0015| that is evidenced by: | 0016| (1) voting stock or similar security; | 0017| (2) a security convertible into voting stock or | 0018| similar security, with or without consideration, or a security | 0019| carrying a warrant or right to subscribe to or purchase voting | 0020| stock or similar security; | 0021| (3) a warrant or right to subscribe to or | 0022| purchase voting stock or similar security; or | 0023| (4) a security having a direct or indirect | 0024| participation in the profits of the issuer; | 0025| L. "executive director" means the chief | 0001| administrative officer appointed by the board pursuant to | 0002| Section 9 of the Gaming Control Act; | 0003| M. "finding of suitability" means a certification of | 0004| approval issued by the board permitting a person to be involved | 0005| directly or indirectly with a licensee, relating only to the | 0006| specified involvement for which it is made; | 0007| N. "game" means an activity in which, upon payment | 0008| of consideration, a player receives a prize or other thing of | 0009| value, the award of which is determined by chance even though | 0010| accompanied by some skill; "game" does not include an activity | 0011| played in a private residence in which no person makes money for | 0012| operating the activity except through winnings as a player; | 0013| O. "gaming" means offering a game for play; | 0014| P. "gaming activity" means any endeavor associated | 0015| with the manufacture or distribution of gaming devices or the | 0016| conduct of gaming; | 0017| Q. "gaming device" means associated equipment or a | 0018| gaming machine and includes a system for processing information | 0019| that can alter the normal criteria of random selection that | 0020| affects the operation of a game or determines the outcome of a | 0021| game; "gaming device" does not include a system or device that | 0022| affects a game solely by stopping its operation so that the | 0023| outcome remains undetermined; | 0024| R. "gaming employee" means a person connected | 0025| directly with a gaming activity; "gaming employee" does not | 0001| include: | 0002| (1) bartenders, cocktail servers or other | 0003| persons engaged solely in preparing or serving food or | 0004| beverages; | 0005| (2) secretarial or janitorial personnel; | 0006| (3) stage, sound and light technicians; or | 0007| (4) other nongaming personnel; | 0008| S. "gaming establishment" means the premises on or | 0009| in which gaming is conducted; | 0010| T. "gaming machine" means a mechanical, | 0011| electromechanical or electronic contrivance or machine that, | 0012| upon insertion of a coin, token or similar object, or upon | 0013| payment of any consideration, is available to play or operate a | 0014| game, whether the payoff is made automatically from the machine | 0015| or in any other manner; | 0016| U. "gaming operator" means a person who conducts | 0017| gaming; | 0018| V. "holding company" means a company that directly | 0019| or indirectly owns or has the power or right to control a | 0020| company that is an applicant or licensee, but a company that | 0021| does not have a beneficial ownership of more than ten percent of | 0022| the equity securities of a publicly traded corporation is not a | 0023| holding company; | 0024| W. "immediate family" means natural persons who are | 0025| related to a specified natural person by affinity or | 0001| consanguinity in the first through the third degree; | 0002| X. "independent administrator" means a person who | 0003| administers an annuity, who is not associated in any manner with | 0004| the gaming operator licensee for which the annuity was purchased | 0005| and is in no way associated with the person who will be | 0006| receiving the annuity; | 0007| Y. "institutional investor" means a state or federal | 0008| government pension plan or a person that meets the requirements | 0009| of a qualified institutional buyer as defined in Rule 144A of | 0010| the federal Securities Act of 1933, and is: | 0011| (1) a bank as defined in Section 3(a)(6) of the | 0012| federal Securities Exchange Act of 1934; | 0013| (2) an insurance company as defined in Section | 0014| 2(a)(17) of the federal Investment Company Act of 1940; | 0015| (3) an investment company registered under | 0016| Section 8 of the federal Investment Company Act of 1940; | 0017| (4) an investment adviser registered under | 0018| Section 203 of the federal Investment Advisers Act of 1940; | 0019| (5) collective trust funds as defined in | 0020| Section 3(c)(11) of the federal Investment Company Act of 1940; | 0021| (6) an employee benefit plan or pension fund | 0022| that is subject to the federal Employee Retirement Income | 0023| Security Act of 1974, excluding an employee benefit plan or | 0024| pension fund sponsored by a publicly traded corporation | 0025| registered with the board; or | 0001| (7) a group comprised entirely of persons | 0002| specified in Paragraphs (1) through (6) of this subsection; | 0003| Z. "intermediary company" means a company that: | 0004| (1) is a holding company with respect to a | 0005| company that is an applicant or licensee; and | 0006| (2) is a subsidiary with respect to any holding | 0007| company; | 0008| AA. "key executive" means an executive of a licensee | 0009| or other person having the power to exercise significant | 0010| influence over decisions concerning any part of the licensed | 0011| operations of the licensee or whose compensation exceeds an | 0012| amount established by the board in a regulation; | 0013| BB. "license" means an authorization required by the | 0014| board for engaging in gaming activities; | 0015| CC. "licensee" means a person to whom a valid | 0016| license has been issued; | 0017| DD. "manufacturer" means a person who manufactures, | 0018| fabricates, assembles, produces, programs or makes modifications | 0019| to any gaming device for use or play in New Mexico or for sale, | 0020| lease or distribution outside New Mexico from any location | 0021| within New Mexico; | 0022| EE. "net take" means the total of the following, | 0023| less the total of all cash paid out as losses to winning patrons | 0024| and those amounts paid to purchase annuities to fund losses paid | 0025| to winning patrons over several years by independent | 0001| administrators: | 0002| (1) cash received from patrons for playing a | 0003| game; | 0004| (2) cash received in payment for credit | 0005| extended by a licensee to a patron for playing a game; and | 0006| (3) compensation received for conducting a game | 0007| in which the licensee is not a party to a wager; | 0008| FF. "nonprofit organization" means: | 0009| (1) a bona fide chartered or incorporated | 0010| branch, lodge, order or association, in existence in New Mexico | 0011| prior to January 1, 1997, of a fraternal organization that is | 0012| described in Section 501(c)(8) or (10) of the federal Internal | 0013| Revenue Code of 1986 and that is exempt from federal income | 0014| taxation pursuant to Section 501(a) of that code; or | 0015| (2) a bona fide chartered or incorporated post, | 0016| auxiliary unit or society of, or a trust or foundation for the | 0017| post or auxiliary unit, in existence in New Mexico prior to | 0018| January 1, 1997, of a veterans' organization that is described | 0019| in Section 501(c)(19) or (23) of the federal Internal Revenue | 0020| Code of 1986 and that is exempt from federal income taxation | 0021| pursuant to Section 501(a) of that code; | 0022| GG. "person" means a legal entity; | 0023| HH. "premises" means land, together with all | 0024| buildings, improvements and personal property located on the | 0025| land; | 0001| II. "progressive jackpot" means a prize that | 0002| increases over time or as gaming machines that are linked to a | 0003| progressive system are played and upon conditions established by | 0004| the board may be paid by an annuity; | 0005| JJ. "progressive system" means one or more gaming | 0006| machines linked to one or more common progressive jackpots; | 0007| KK. "publicly traded corporation" means a | 0008| corporation that: | 0009| (1) has one or more classes of securities | 0010| registered pursuant to the securities laws of the United States | 0011| or New Mexico; | 0012| (2) is an issuer subject to the securities laws | 0013| of the United States or New Mexico; or | 0014| (3) has one or more classes of securities | 0015| registered or is an issuer pursuant to applicable foreign laws | 0016| that the board finds provide protection for institutional | 0017| investors that is comparable to or greater than the stricter of | 0018| the securities laws of the United States or New Mexico; | 0019| LL. "registration" means a board action that | 0020| authorizes a company to be a holding company with respect to a | 0021| company that holds or applies for a license or that relates to | 0022| other persons required to be registered pursuant to the Gaming | 0023| Control Act; | 0024| MM. "subsidiary" means a company, all or a part of | 0025| whose outstanding equity securities are owned, subject to a | 0001| power or right of control or held, with power to vote, by a | 0002| holding company or intermediary company; and | 0003| NN. "work permit" means a card, certificate or | 0004| permit issued by the board, whether denominated as a work | 0005| permit, registration card or otherwise, authorizing the | 0006| employment of the holder as a gaming employee. | 0007| Section 6. [NEW MATERIAL] LIMITED GAMING ACTIVITY | 0008| PERMITTED.--Gaming activity is permitted in New Mexico only if | 0009| it is conducted in compliance with and pursuant to: | 0010| A. the Gaming Control Act; or | 0011| B. a state or federal law other than the Gaming | 0012| Control Act that expressly permits the activity or exempts it | 0013| from the application of the state criminal law, or both. | 0014| Section 7. [NEW MATERIAL] GAMING CONTROL BOARD | 0015| CREATED.-- | 0016| A. The "gaming control board" is created and | 0017| consists of five members. Three members are appointed by the | 0018| governor with the advice and consent of the senate, and two | 0019| members are ex officio: the chairman of the state racing | 0020| commission and the chairman of the board of the New Mexico | 0021| lottery authority. All members of the board shall be residents | 0022| of New Mexico and citizens of the United States. One appointed | 0023| member of the board shall have a minimum of five years of | 0024| previous employment in a supervisory and administrative position | 0025| in a law enforcement agency; one appointed member of the board | 0001| shall be a certified public accountant in New Mexico who has had | 0002| at least five years of experience in public accountancy; and one | 0003| appointed member of the board shall be an attorney who has been | 0004| admitted to practice before the supreme court of New Mexico. | 0005| B. The appointed members of the board shall be | 0006| appointed for terms of five years, except, of the members who | 0007| are first appointed, the member with law enforcement experience | 0008| shall be appointed for a term of five years; the member who is a | 0009| certified public accountant shall be appointed for a term of | 0010| four years; and the member who is an attorney shall be appointed | 0011| for a term of three years. Thereafter, all members shall be | 0012| appointed for terms of five years. No person shall serve as a | 0013| board member for more than two consecutive terms or ten years | 0014| total. | 0015| C. No person appointed to the board may be employed | 0016| in any other capacity or shall in any manner receive | 0017| compensation for services rendered to any person or entity other | 0018| than the board while a member of the board. | 0019| D. A vacancy on the board of an appointed member | 0020| shall be filled within thirty days by the governor with the | 0021| advice and consent of the senate for the unexpired portion of | 0022| the term in which the vacancy occurs. A person appointed to | 0023| fill a vacancy shall meet all qualification requirements of the | 0024| office established in this section. | 0025| E. The governor shall choose a chairman annually | 0001| from the board's appointed membership. | 0002| F. No more than three members of the board shall be | 0003| from the same political party. | 0004| G. The appointed members of the board shall be full- | 0005| time state officials and shall receive a salary set by the | 0006| governor. | 0007| H. The department of public safety shall conduct | 0008| background investigations of all members of the board prior to | 0009| confirmation by the senate. To assist the department in the | 0010| background investigation, a prospective board member shall | 0011| furnish a disclosure statement to the department on a form | 0012| provided by the department containing that information deemed by | 0013| the department as necessary for completion of a detailed and | 0014| thorough background investigation. The required information | 0015| shall include at least: | 0016| (1) a full set of fingerprints made by a law | 0017| enforcement agency on forms supplied by the department; | 0018| (2) complete information and details with | 0019| respect to the prospective board member's antecedents, habits, | 0020| immediate family, character, criminal record, business | 0021| activities, financial affairs and business associates covering | 0022| at least a ten-year period immediately preceding the date of | 0023| submitting the disclosure statement; | 0024| (3) complete disclosure of any equity interest | 0025| held by the prospective board member or a member of his | 0001| immediate family in a company that is an applicant or licensee | 0002| or an affiliate, affiliated company, intermediary company or | 0003| holding company in respect to an applicant or licensee; and | 0004| (4) the names and addresses of members of the | 0005| immediate family of the prospective board member. | 0006| I. No person may be appointed or confirmed as a | 0007| member of the board if that person or member of his immediate | 0008| family holds an equity interest in a company that is an | 0009| applicant or licensee or an affiliate, affiliated company, | 0010| intermediary company or holding company in respect to an | 0011| applicant or licensee. | 0012| J. A prospective board member shall provide | 0013| assistance and information requested by the department of public | 0014| safety or the governor and shall cooperate in any inquiry or | 0015| investigation of the prospective board member's fitness or | 0016| qualifications to hold the office to which he is appointed. The | 0017| senate shall not confirm a prospective board member if it has | 0018| reasonable cause to believe that the prospective board member | 0019| has: | 0020| (1) knowingly misrepresented or omitted a | 0021| material fact required in a disclosure statement; | 0022| (2) been convicted of a felony, a gaming | 0023| related offense or a crime involving fraud, theft or moral | 0024| turpitude within ten years immediately preceding the date of | 0025| submitting a disclosure statement required pursuant to the | 0001| provisions of Subsection H of this section; | 0002| (3) exhibited a history of willful disregard | 0003| for the gaming laws of this or any other state or the United | 0004| States; or | 0005| (4) had a permit or license issued pursuant to | 0006| the gaming laws of this or any other state or the United States | 0007| permanently suspended or revoked for cause. | 0008| K. At the time of taking office, each board member | 0009| shall file with the secretary of state a sworn statement that he | 0010| is not disqualified under the provisions of Subsection I of this | 0011| section. | 0012| Section 8. [NEW MATERIAL] BOARD--MEETINGS--QUORUM-- | 0013| RECORDS.-- | 0014| A. A majority of the qualified membership of the | 0015| board then in office constitutes a quorum. No action may be | 0016| taken by the board unless at least three members concur. | 0017| B. Written notice of the time and place of each | 0018| board meeting shall be given to each member of the board at | 0019| least ten days prior to the meeting. | 0020| C. Meetings of the board shall be open and public in | 0021| accordance with the Open Meetings Act, except that the board may | 0022| close a meeting to hear confidential security and investigative | 0023| information and other information made confidential by the | 0024| provisions of the Gaming Control Act. | 0025| D. All proceedings of the board shall be recorded by | 0001| audiotape or other equivalent verbatim audio recording device. | 0002| E. The chairman of the board, the executive director | 0003| or a majority of the members of the board then in office may | 0004| call a special meeting of the board upon at least five days' | 0005| prior written notice to all members of the board and the | 0006| executive director. | 0007| Section 9. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0008| A. The board shall implement the state's policy on | 0009| gaming consistent with the provisions of the Gaming Control Act. | 0010| It has the duty to fulfill all responsibilities assigned to it | 0011| pursuant to that act, and it has all authority necessary to | 0012| carry out those responsibilities. It may delegate authority to | 0013| the executive director, but it retains accountability. The | 0014| board is an adjunct agency. | 0015| B. The board shall: | 0016| (1) employ the executive director; | 0017| (2) make the final decision on issuance, | 0018| denial, suspension and revocation of all licenses pursuant to | 0019| and consistent with the provisions of the Gaming Control Act; | 0020| (3) develop, adopt and promulgate all | 0021| regulations necessary to implement and administer the provisions | 0022| of the Gaming Control Act; | 0023| (4) conduct itself, or employ a hearing officer | 0024| to conduct, all hearings required by the provisions of the | 0025| Gaming Control Act and other hearings it deems appropriate to | 0001| fulfill its responsibilities; | 0002| (5) meet at least once each month; and | 0003| (6) prepare and submit an annual report in | 0004| December of each year to the governor and the legislature, | 0005| covering activities of the board in the most recently completed | 0006| fiscal year, a summary of gaming activities in the state and any | 0007| recommended changes in or additions to the laws relating to | 0008| gaming in the state. | 0009| C. The board may: | 0010| (1) impose civil fines not to exceed twenty- | 0011| five thousand dollars ($25,000) for the first violation and | 0012| fifty thousand dollars ($50,000) for subsequent violations of | 0013| any prohibitory provision of the Gaming Control Act or any | 0014| prohibitory provision of a regulation adopted pursuant to that | 0015| act; | 0016| (2) conduct investigations; | 0017| (3) subpoena persons and documents to compel | 0018| access to or the production of documents and records, including | 0019| books and memoranda, in the custody or control of any licensee; | 0020| (4) compel the appearance of employees of a | 0021| licensee or persons for the purpose of ascertaining compliance | 0022| with provisions of the Gaming Control Act or a regulation | 0023| adopted pursuant to its provisions; | 0024| (5) 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| (6) sue and be sued subject to the limitations | 0004| of the Tort Claims Act; | 0005| (7) contract for the provision of goods and | 0006| services necessary to carry out its responsibilities; | 0007| (8) conduct audits of applicants, licensees and | 0008| persons affiliated with licensees; | 0009| (9) inspect, examine, photocopy and audit all | 0010| documents and records of an applicant or licensee relevant to | 0011| his gaming activities in the presence of the applicant or | 0012| licensee or his agent; | 0013| (10) require verification of income and all | 0014| other matters pertinent to the gaming activities of an applicant | 0015| or licensee affecting the enforcement of any provision of the | 0016| Gaming Control Act; | 0017| (11) inspect all places where gaming activities | 0018| are conducted and inspect all property connected with gaming in | 0019| those places; | 0020| (12) summarily seize, remove and impound from | 0021| places inspected any gaming devices, property connected with | 0022| gaming, documents or records for the purpose of examination or | 0023| inspection; | 0024| (13) inspect, examine, photocopy and audit all | 0025| documents and records of any affiliate of an applicant or | 0001| licensee who the board knows or reasonably suspects is involved | 0002| in the financing, operation or management of the applicant or | 0003| licensee. The inspection, examination, photocopying and audit | 0004| shall be in the presence of a representative of the affiliate or | 0005| its agent when practicable; and | 0006| (14) except for the powers specified in | 0007| Paragraphs (1) and (4) of this subsection, carry out all or part | 0008| of the foregoing powers and activities through the executive | 0009| director. | 0010| D. The board shall monitor all activity authorized | 0011| in an Indian Gaming Compact between the state and an Indian | 0012| nation, tribe or pueblo. The board shall appoint the state | 0013| gaming representative for the purposes of the compact. | 0014| Section 10. [NEW MATERIAL] BOARD REGULATIONS-- | 0015| DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0016| A. The board may adopt any regulation: | 0017| (1) consistent with the provisions of the | 0018| Gaming Control Act; and | 0019| (2) it decides is necessary to implement the | 0020| provisions of the Gaming Control Act. | 0021| B. No regulation shall be adopted, amended or | 0022| repealed without a public hearing on the proposed action before | 0023| the board or a hearing officer designated by it. The public | 0024| hearing shall be held in Santa Fe. Notice of the subject matter | 0025| of the regulation, the action proposed to be taken, the time and | 0001| place of the hearing, the manner in which interested persons may | 0002| present their views and the method by which copies of the | 0003| proposed regulation, amendment or repeal may be obtained shall | 0004| be published once at least thirty days prior to the hearing date | 0005| in a newspaper of general circulation and mailed at least thirty | 0006| days prior to the hearing date to all persons who have made a | 0007| written request for advance notice of hearing. All regulations | 0008| and actions taken on regulations shall be filed in accordance | 0009| with the State Rules Act. | 0010| C. The board shall adopt regulations: | 0011| (1) prescribing the method and form of | 0012| application to be followed by an applicant; | 0013| (2) prescribing the information to be furnished | 0014| by an applicant or licensee concerning his antecedents, | 0015| immediate family, habits, character, associates, criminal | 0016| record, business activities and financial affairs, past or | 0017| present; | 0018| (3) prescribing the manner and procedure of all | 0019| hearings conducted by the board or a hearing officer; | 0020| (4) prescribing the manner and method of | 0021| collection and payment of fees; | 0022| (5) prescribing the manner and method of the | 0023| issuance of licenses, permits, registrations, certificates and | 0024| other actions of the board not elsewhere prescribed in the | 0025| Gaming Control Act; | 0001| (6) defining the area, games and gaming devices | 0002| allowed and the methods of operation of the games and gaming | 0003| devices for authorized gaming; | 0004| (7) prescribing under what conditions the | 0005| nonpayment of winnings is grounds for suspension or revocation | 0006| of a license of a gaming operator; | 0007| (8) governing the manufacture, sale, | 0008| distribution, repair and servicing of gaming devices; | 0009| (9) prescribing accounting procedures, | 0010| security, collection and verification procedures required of | 0011| licensees and matters regarding financial responsibility of | 0012| licensees; | 0013| (10) prescribing what shall be considered to be | 0014| an unsuitable method of operating gaming activities; | 0015| (11) restricting access to confidential | 0016| information obtained pursuant to the provisions of the Gaming | 0017| Control Act and ensuring that the confidentiality of that | 0018| information is maintained and protected; | 0019| (12) prescribing financial reporting and | 0020| internal control requirements for licensees; | 0021| (13) prescribing the manner in which winnings, | 0022| compensation from gaming activities and net take shall be | 0023| computed and reported by a gaming operator licensee; | 0024| (14) prescribing the frequency of and the | 0025| matters to be contained in audits of and periodic financial | 0001| reports from a gaming operator licensee consistent with | 0002| standards prescribed by the board; | 0003| (15) prescribing the procedures to be followed | 0004| by a gaming operator licensee for the exclusion of persons from | 0005| gaming establishments; | 0006| (16) establishing criteria and conditions for | 0007| the operation of progressive systems; | 0008| (17) establishing criteria and conditions for | 0009| approval of procurement by the board of personal property valued | 0010| in excess of twenty thousand dollars ($20,000), including | 0011| background investigation requirements for a person submitting a | 0012| bid or proposal; and | 0013| (18) establishing an applicant fee schedule for | 0014| processing applications that is based on costs of the | 0015| application review incurred by the board whether directly or | 0016| through payment by the board for costs charged for | 0017| investigations of applicants by state departments and agencies | 0018| other than the board, which regulation shall set a maximum fee | 0019| of one hundred thousand dollars ($100,000). | 0020| Section 11. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0021| EMPLOYMENT--QUALIFICATIONS.-- | 0022| A. The executive director shall be employed by, | 0023| report directly to and serve at the pleasure of the board. | 0024| B. The executive director shall have had at least | 0025| five years of responsible supervisory administrative experience | 0001| in a governmental gaming regulatory agency. | 0002| C. The executive director shall receive an annual | 0003| salary to be set by the board, but not to exceed eighty-five | 0004| thousand dollars ($85,000) per year. | 0005| Section 12. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0006| POWERS--DUTIES.-- | 0007| A. The executive director shall implement the | 0008| policies of the board. | 0009| B. The executive director shall employ all personnel | 0010| who work for the board. The employees shall be covered | 0011| employees pursuant to the provisions of the Personnel Act. | 0012| Among those personnel he shall employ and designate an | 0013| appropriate number of individuals as law enforcement officers | 0014| subject to proper certification pursuant to the Law Enforcement | 0015| Training Act. | 0016| C. The executive director shall establish | 0017| organizational units he determines are appropriate to administer | 0018| the provisions of the Gaming Control Act. | 0019| D. The executive director: | 0020| (1) may delegate authority to subordinates as | 0021| he deems necessary and appropriate, clearly delineating the | 0022| delegated authority and the limitations on it, if any; | 0023| (2) shall take administrative action by issuing | 0024| orders and instructions consistent with the Gaming Control Act | 0025| and regulations of the board to assure implementation of and | 0001| compliance with the provisions of that act and those | 0002| regulations; | 0003| (3) may conduct research and studies that will | 0004| improve the operations of the board and the provision of | 0005| services to the citizens of the state; | 0006| (4) may provide courses of instruction and | 0007| practical training for employees of the board and other persons | 0008| involved in the activities regulated by the board with the | 0009| objectives of improving operations of the board and achieving | 0010| compliance with the law and regulations; | 0011| (5) shall prepare an annual budget for the | 0012| board and submit it to the board for approval; and | 0013| (6) shall make recommendations to the board of | 0014| proposed regulations and any legislative changes needed to | 0015| provide better administration of the Gaming Control Act and fair | 0016| and efficient regulation of gaming activities in the state. | 0017| Section 13. [NEW MATERIAL] INVESTIGATION OF EXECUTIVE | 0018| DIRECTOR CANDIDATES AND EMPLOYEES.-- | 0019| A. A person who is under consideration in the final | 0020| selection process for appointment as the executive director | 0021| shall file a disclosure statement pursuant to the requirements | 0022| of this section, and the board shall not make an appointment of | 0023| a person as executive director until a background investigation | 0024| is completed by the department of public safety and a report is | 0025| made to the board. | 0001| B. A person who has reached the final selection | 0002| process for employment by the executive director shall file a | 0003| disclosure statement pursuant to the requirements of this | 0004| section if the executive director or the board has directed the | 0005| person do so. The person shall not be further considered for | 0006| employment until a background investigation is completed by the | 0007| department of public safety and a report is made to the | 0008| executive director. | 0009| C. Forms for the disclosure statements required by | 0010| this section shall be developed by the board in cooperation with | 0011| the department of public safety. At least the following | 0012| information shall be required of a person submitting a | 0013| statement: | 0014| (1) a full set of fingerprints made by a law | 0015| enforcement agency on forms supplied by the board; | 0016| (2) complete information and details with | 0017| respect to the person's antecedents, habits, immediate family, | 0018| character, criminal record, business activities and business | 0019| associates, covering at least a ten-year period immediately | 0020| preceding the date of submitting the disclosure statement; and | 0021| (3) a complete description of any equity | 0022| interest held in a business connected with the gaming industry. | 0023| D. In preparing an investigative report, the | 0024| department of public safety may request and receive criminal | 0025| history information from the federal bureau of investigation or | 0001| any other law enforcement agency or organization. The | 0002| department of public safety shall maintain confidentiality | 0003| regarding information received from a law enforcement agency | 0004| that may be imposed by the agency as a condition for providing | 0005| the information to the department. | 0006| E. A person required to file a disclosure statement | 0007| shall provide any assistance or information requested by the | 0008| department of public safety or the board and shall cooperate in | 0009| any inquiry or investigation. | 0010| F. If information required to be included in a | 0011| disclosure statement changes or if information is added after | 0012| the statement is filed, the person required to file it shall | 0013| provide that information in writing to the person requesting the | 0014| investigation. The supplemental information shall be provided | 0015| within thirty days after the change or addition. | 0016| G. The board shall not appoint a person as executive | 0017| director, and the executive director shall not employ a person, | 0018| if the board or the executive director has reasonable cause to | 0019| believe that the person has: | 0020| (1) knowingly misrepresented or omitted a | 0021| material fact required in a disclosure statement; | 0022| (2) been convicted of a felony, a gaming | 0023| related offense or a crime involving fraud, theft or moral | 0024| turpitude within ten years immediately preceding the date of | 0025| submitting a disclosure statement required pursuant to this | 0001| section; | 0002| (3) exhibited a history of willful disregard | 0003| for the gaming laws of this or any other state or the United | 0004| States; or | 0005| (4) had a permit or license issued pursuant to | 0006| the gaming laws of this or any other state or the United States | 0007| permanently suspended or revoked for cause. | 0008| H. Both the board and the executive director may | 0009| exercise absolute discretion in exercising their respective | 0010| appointing and employing powers. | 0011| Section 14. [NEW MATERIAL] CONFLICTS OF INTEREST-- | 0012| BOARD--EXECUTIVE DIRECTOR.-- | 0013| A. In addition to all other provisions of New Mexico | 0014| law regarding conflicts of interest of state officials and | 0015| employees, a member of the board, the executive director, or a | 0016| person in the immediate family of or residing in the household | 0017| of any of the foregoing persons, shall not: | 0018| (1) directly or indirectly, as a proprietor or | 0019| as a member, stockholder, director or officer of a company, have | 0020| an interest in a business engaged in gaming activities in this | 0021| or another jurisdiction; or | 0022| (2) accept or agree to accept any economic | 0023| opportunity, gift, loan, gratuity, special discount, favor, | 0024| hospitality or service having an aggregate value of one hundred | 0025| dollars ($100) or more in any calendar year from a licensee or | 0001| applicant. | 0002| B. If a member of the board, the executive director | 0003| or a person in the immediate family of or residing in the | 0004| household of a member of the board or the executive director | 0005| violates a provision of this section, the member of the board or | 0006| executive director shall be removed from office. A board member | 0007| shall be removed by the governor, and the executive director | 0008| shall be removed from his position by the board. | 0009| Section 15. [NEW MATERIAL] ACTIVITIES REQUIRING | 0010| LICENSING.-- | 0011| A. A person shall not conduct gaming unless he is | 0012| licensed as a gaming operator. | 0013| B. A person shall not sell, supply or distribute any | 0014| gaming device or associated equipment for use or play in this | 0015| state or for use or play outside of this state from a location | 0016| within this state unless he is licensed as a distributor or | 0017| manufacturer, but a gaming operator licensee may sell or trade | 0018| in a gaming device or associated equipment to a gaming operator | 0019| licensee, distributor licensee or manufacturer licensee. | 0020| C. A person shall not manufacture, fabricate, | 0021| assemble, program or make modifications to a gaming device or | 0022| associated equipment for use or play in this state or for use or | 0023| play outside of this state from any location within this state | 0024| unless he is a manufacturer licensee. A manufacturer licensee | 0025| may sell, supply or distribute only the gaming devices or | 0001| associated equipment that he manufactures, fabricates, | 0002| assembles, programs or modifies. | 0003| D. A gaming operator licensee or a person other than | 0004| a manufacturer licensee or distributor licensee shall not | 0005| possess or control a place where there is an unlicensed gaming | 0006| machine. Any unlicensed gaming machine, except one in the | 0007| possession of a licensee while awaiting transfer to a gaming | 0008| operator licensee for licensure of the machine, is subject to | 0009| forfeiture and confiscation by any law enforcement agency or | 0010| peace officer. | 0011| E. A person shall not service or repair a gaming | 0012| device or associated equipment unless he is licensed as a | 0013| manufacturer, is employed by a manufacturer licensee or is a | 0014| technician certified by a manufacturer and employed by a | 0015| distributor licensee or a gaming operator licensee. | 0016| F. A person shall not engage in any activity for | 0017| which the board requires a license or permit without obtaining | 0018| the license or permit. | 0019| G. Except as provided in Subsection B of this | 0020| section, a person shall not purchase, lease or acquire | 0021| possession of a gaming device or associated equipment except | 0022| from a licensed distributor or manufacturer. | 0023| H. A distributor licensee may receive a percentage | 0024| of the amount wagered, the net take or other measure related to | 0025| the operation of a gaming machine as a payment pursuant to a | 0001| lease or other arrangement for furnishing a gaming machine, but | 0002| the board shall adopt a regulation setting the maximum allowable | 0003| percentage. | 0004| Section 16. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0005| A. The board shall establish and issue the following | 0006| categories of licenses: | 0007| (1) manufacturer; | 0008| (2) distributor; | 0009| (3) gaming operator; and | 0010| (4) gaming machine. | 0011| B. The board shall issue certifications of findings | 0012| of suitability for key executives and other persons for whom | 0013| certification is required. | 0014| C. The board shall issue work permits for gaming | 0015| employees. | 0016| D. A licensee shall not be issued more than one type | 0017| of license, but this provision does not prohibit a licensee from | 0018| owning, leasing, acquiring or having in his possession licensed | 0019| gaming machines if that activity is otherwise allowed by the | 0020| provisions of the Gaming Control Act. A licensee shall not own | 0021| a majority interest in, manage or otherwise control a holder of | 0022| another type of license issued pursuant to the provisions of | 0023| that act. | 0024| E. Applicants shall apply on forms provided by the | 0025| board and furnish all information requested by the board. | 0001| Submission of an application constitutes consent to a credit | 0002| check of the applicant and all persons having a substantial | 0003| interest in the applicant and any other background | 0004| investigations required pursuant to the Gaming Control Act or | 0005| deemed necessary by the board. | 0006| F. All licenses issued by the board pursuant to the | 0007| provisions of this section shall be reviewed for renewal | 0008| annually unless revoked, suspended, canceled or terminated. | 0009| G. A license shall not be transferred or assigned. | 0010| H. The application for a license shall include: | 0011| (1) the name of the applicant; | 0012| (2) the location of the proposed operation; | 0013| (3) the gaming devices to be operated, | 0014| manufactured, distributed or serviced; | 0015| (4) the names of all persons having a direct or | 0016| indirect interest in the business of the applicant and the | 0017| nature of such interest; and | 0018| (5) such other information and details as the | 0019| board may require. | 0020| I. The board shall furnish to the applicant | 0021| supplemental forms that the applicant shall complete and file | 0022| with the application. Such supplemental forms shall require | 0023| complete information and details with respect to the applicant's | 0024| antecedents, habits, immediate family, character, criminal | 0025| record, business activities, financial affairs and business | 0001| associates, covering at least a ten-year period immediately | 0002| preceding the date of filing of the application. | 0003| Section 17. [NEW MATERIAL] LICENSE, CERTIFICATION AND | 0004| WORK PERMIT FEES.-- | 0005| A. License and other fees shall be established by | 0006| board regulation but shall not exceed the following amounts: | 0007| (1) manufacturer's license, twenty thousand | 0008| dollars ($20,000) for the initial license and five thousand | 0009| dollars ($5,000) for annual renewal; | 0010| (2) distributor's license, ten thousand dollars | 0011| ($10,000) for the initial license and one thousand dollars | 0012| ($1,000) for annual renewal; | 0013| (3) gaming operator's license for a racetrack, | 0014| fifty thousand dollars ($50,000) for the initial license and ten | 0015| thousand dollars ($10,000) for annual renewal; | 0016| (4) gaming operator's license for a nonprofit | 0017| organization, one thousand dollars ($1,000) for the initial | 0018| license and two hundred dollars ($200) for annual renewal; | 0019| (5) for each separate gaming machine licensed | 0020| to a person holding an operator's license, five hundred dollars | 0021| ($500) for the initial license and one hundred dollars ($100) | 0022| for annual renewal; and | 0023| (6) work permit, one hundred dollars ($100) | 0024| annually. | 0025| B. The board shall establish the fee for | 0001| certifications or other actions by regulation, but no fee | 0002| established by the board shall exceed one thousand dollars | 0003| ($1,000), except for fees established pursuant to Paragraph (18) | 0004| of Subsection C of Section 10 of the Gaming Control Act. | 0005| C. All license, certification or work permit fees | 0006| shall be paid to the board at the time and in the manner | 0007| established by regulations of the board. | 0008| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0009| APPLICATIONS.-- | 0010| A. A person that the board determines is qualified | 0011| to receive a license pursuant to the provisions of the Gaming | 0012| Control Act may be issued a license. The burden of proving | 0013| qualifications is on the applicant. | 0014| B. A license shall not be issued unless the board is | 0015| satisfied that the applicant is: | 0016| (1) a person of good moral character, honesty | 0017| and integrity; | 0018| (2) a person whose prior activities, criminal | 0019| record, reputation, habits and associations do not pose a threat | 0020| to the public interest or to the effective regulation and | 0021| control of gaming or create or enhance the dangers of | 0022| unsuitable, unfair or illegal practices, methods and activities | 0023| in the conduct of gaming or the carrying on of the business and | 0024| financial arrangements incidental thereto; and | 0025| (3) in all other respects qualified to be | 0001| licensed consistent with the laws of this state. | 0002| C. A license shall not be issued unless the | 0003| applicant has satisfied the board that: | 0004| (1) the applicant has adequate business | 0005| probity, competence and experience in business and gaming; | 0006| (2) the proposed financing of the applicant is | 0007| adequate for the nature of the proposed license and from a | 0008| suitable source; any lender or other source of money or credit | 0009| that the board finds does not meet the standards set forth in | 0010| Subsection B of this section shall be deemed unsuitable; and | 0011| (3) the applicant is sufficiently capitalized | 0012| under standards set by the board to conduct the business covered | 0013| by the license. | 0014| D. An application to receive a license, | 0015| certification or work permit constitutes a request for a | 0016| determination of the applicant's general moral character, | 0017| integrity and ability to participate or engage in or be | 0018| associated with gaming. Any written or oral statement made in | 0019| the course of an official proceeding of the board or by a | 0020| witness testifying under oath that is relevant to the purpose of | 0021| the proceeding is absolutely privileged and does not impose | 0022| liability for defamation or constitute a ground for recovery in | 0023| any civil action. | 0024| E. The board shall not issue a license or | 0025| certification to an applicant who has been denied a license or | 0001| certification in this state or another state, who has had a | 0002| certification, permit or license issued pursuant to the gaming | 0003| laws of a state or the United States permanently suspended or | 0004| revoked for cause or who is currently under suspension or | 0005| subject to any other limiting action in this state or another | 0006| state involving gaming activities or licensure for gaming | 0007| activities. | 0008| F. The board shall investigate the qualifications of | 0009| each applicant before a license, certification or work permit is | 0010| issued by the board and shall continue to observe and monitor | 0011| the conduct of all licensees, work permit holders, persons | 0012| certified as being suitable and the persons having a material | 0013| involvement directly or indirectly with a licensee. | 0014| G. The board has the authority to deny an | 0015| application or limit, condition, restrict, revoke or suspend a | 0016| license, certification or permit for any cause. | 0017| H. After issuance, a license, certification or | 0018| permit shall continue in effect upon proper payment of the | 0019| initial and renewal fees, subject to the power of the board to | 0020| revoke, suspend, condition or limit licenses, certifications and | 0021| permits. | 0022| I. The board has full and absolute power and | 0023| authority to deny an application for any cause it deems | 0024| reasonable. If an application is denied, the board shall | 0025| prepare and file its written decision on which its order denying | 0001| the application is based. | 0002| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES, | 0003| CERTIFICATIONS AND PERMITS.--The board shall initiate an | 0004| investigation of the applicant within thirty days after an | 0005| application is filed and supplemental information that the board | 0006| may require is received. | 0007| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS | 0008| FOR COMPANIES.--In order to be eligible to receive a license, a | 0009| company shall: | 0010| A. be incorporated or otherwise organized and in | 0011| good standing in this state or incorporated or otherwise | 0012| organized in another state, qualified to do business in this | 0013| state and in good standing in this state and in the state of | 0014| incorporation; | 0015| B. comply with all of the requirements of the laws | 0016| of this state pertaining to the company; | 0017| C. maintain a ledger in the principal office of the | 0018| company in this state, which shall: | 0019| (1) at all times reflect the ownership | 0020| according to company records of every class of security issued | 0021| by the company; and | 0022| (2) be available for inspection by the board at | 0023| all reasonable times without notice; and | 0024| D. file notice of all changes of ownership of all | 0025| classes of securities issued by the company with the board | 0001| within thirty days of the change. | 0002| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0003| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company applicant | 0004| shall provide the following information to the board on forms | 0005| provided by the board: | 0006| A. the organization, financial structure and nature | 0007| of the business to be operated, including the names and personal | 0008| histories of all officers, directors and key executives; | 0009| B. the rights and privileges acquired by the holders | 0010| of different classes of authorized securities; | 0011| C. the terms and conditions of all outstanding | 0012| loans, mortgages, trust deeds, pledges or any other indebtedness | 0013| or security interest evidenced by a security instrument | 0014| pertaining to the proposed gaming operation or other licensed | 0015| activity in this state and the name and address of the person | 0016| who is servicing the loan, mortgage, trust deed, pledge or other | 0017| indebtedness or security interest; | 0018| D. remuneration to persons, other than directors, | 0019| officers and key executives, exceeding fifty thousand dollars | 0020| ($50,000) per year; | 0021| E. bonus and profit-sharing arrangements within the | 0022| company; | 0023| F. management and service contracts pertaining to | 0024| the proposed gaming activity in this state; | 0025| G. balance sheets and profit and loss statements for | 0001| at least the three preceding fiscal years, or, if the company | 0002| has not been in business for a period of three years, balance | 0003| sheets and profit and loss statements from the time of its | 0004| commencement of business operations and projected for three | 0005| years from the time of its commencement of business operations. | 0006| All balance sheets and profit and loss statements shall be | 0007| certified by independent certified public accountants; and | 0008| H. any further financial data that the board deems | 0009| necessary or appropriate. | 0010| Section 22. [NEW MATERIAL] INDIVIDUAL CERTIFICATION OF | 0011| OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer, director, | 0012| equity security holder of five percent or more, partner, general | 0013| partner, limited partner, trustee or beneficiary of the company | 0014| that holds or has applied for a license shall be certified | 0015| individually, according to the provisions of the Gaming Control | 0016| Act, and if in the judgment of the board the public interest is | 0017| served by requiring any or all of the company's key executives | 0018| to be certified, the company shall require those persons to | 0019| apply for certification. A person who is required to be | 0020| certified pursuant to this section shall apply for certification | 0021| within thirty days after becoming an officer, director, equity | 0022| security holder of five percent or more, partner, general | 0023| partner, limited partner of five percent or more, trustee, | 0024| beneficiary or key executive. A person who is required to be | 0025| certified pursuant to a decision of the board shall apply for | 0001| certification within thirty days after the board so requests. | 0002| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS | 0003| OR BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON | 0004| UNSUITABLE PERSONS--OTHER REQUIREMENTS.-- | 0005| A. If the company applicant or licensee is or | 0006| becomes a subsidiary, each nonpublicly traded holding company | 0007| and intermediary company with respect to the subsidiary company | 0008| shall: | 0009| (1) qualify to do business in New Mexico; and | 0010| (2) register with the board and furnish to the | 0011| board the following information: | 0012| (a) a complete list of all beneficial | 0013| owners of five percent or more of its equity securities, which | 0014| shall be updated within thirty days after any change; | 0015| (b) the names of all company officers and | 0016| directors within thirty days of their appointment or election; | 0017| (c) its organization, financial structure | 0018| and nature of the business it operates; | 0019| (d) the terms, position, rights and | 0020| privileges of the different classes of its outstanding | 0021| securities; | 0022| (e) the terms on which its securities are | 0023| to be, and during the preceding three years have been, offered; | 0024| (f) the holder of and the terms and | 0025| conditions of all outstanding loans, mortgages, trust deeds, | 0001| pledges or any other indebtedness or security interest | 0002| pertaining to the applicant or licensee; | 0003| (g) the extent of the securities holdings | 0004| or other interest in the holding company or intermediary company | 0005| of all officers, directors, key executives, underwriters, | 0006| partners, principals, trustees or any direct or beneficial | 0007| owners, and the amount of any remuneration paid them as | 0008| compensation for their services in the form of salary, wages, | 0009| fees or by contract pertaining to the licensee; | 0010| (h) remuneration to persons other than | 0011| directors, officers and key executives exceeding fifty thousand | 0012| dollars ($50,000) per year; | 0013| (i) bonus and profit-sharing arrangements | 0014| within the holding company or intermediary company; | 0015| (j) management and service contracts | 0016| pertaining to the licensee or applicant; | 0017| (k) options existing or to be created in | 0018| respect to the company's securities or other interests; | 0019| (l) balance sheets and profit and loss | 0020| statements, certified by independent certified public | 0021| accountants, for not more than the three preceding fiscal years, | 0022| or, if the holding company or intermediary company has not been | 0023| in existence more than three years, balance sheets and profit | 0024| and loss statements from the time of its establishment, together | 0025| with projections for three years from the time of its | 0001| establishment; | 0002| (m) any further financial statements | 0003| necessary or appropriate to assist the board in making its | 0004| determinations; and | 0005| (n) a current annual profit and loss | 0006| statement, a current annual balance sheet and a copy of the | 0007| company's most recent federal income tax return within thirty | 0008| days after the return is filed. | 0009| B. All holders of five percent or more of the equity | 0010| security of a holding company or intermediary company shall | 0011| apply for a finding of suitability. | 0012| C. The board may in its discretion perform the | 0013| investigations concerning the officers, directors, key | 0014| executives, underwriters, security holders, partners, | 0015| principals, trustees or direct or beneficial owners of any | 0016| interest in any holding company or intermediary company as it | 0017| deems necessary, either at the time of initial registration or | 0018| at any time thereafter. | 0019| D. If at any time the board finds that any person | 0020| owning, controlling or holding with power to vote all or any | 0021| part of any class of securities of, or any interest in, any | 0022| holding company or intermediary company is unsuitable to be | 0023| connected with a licensee, it shall so notify both the | 0024| unsuitable person and the holding company or intermediary | 0025| company. The unsuitable person shall immediately offer the | 0001| securities or other interest to the issuing company for | 0002| purchase. The company shall purchase the securities or interest | 0003| offered upon the terms and within the time period ordered by the | 0004| board. | 0005| E. Beginning on the date when the board serves | 0006| notice that a person has been found to be unsuitable pursuant to | 0007| Subsection D of this section, it is unlawful for the unsuitable | 0008| person to: | 0009| (1) receive any dividend or interest upon any | 0010| securities held in the holding company or intermediary company, | 0011| or any dividend, payment or distribution of any kind from the | 0012| holding company or intermediary company; | 0013| (2) exercise, directly or indirectly or through | 0014| a proxy, trustee or nominee, any voting right conferred by the | 0015| securities or interest; or | 0016| (3) receive remuneration in any form from the | 0017| licensee, or from any holding company or intermediary company | 0018| with respect to that licensee, for services rendered or | 0019| otherwise. | 0020| F. A holding company or intermediary company subject | 0021| to the provisions of Subsection A of this section shall not make | 0022| any public offering of any of its equity securities unless such | 0023| public offering has been approved by the board. | 0024| G. This section does not apply to a holding company | 0025| or intermediary company that is a publicly traded corporation, | 0001| the stock of which is traded on recognized stock exchanges, | 0002| which shall instead comply with the provisions of Section 24 of | 0003| the Gaming Control Act. | 0004| Section 24. [NEW MATERIAL] REGISTRATION AND | 0005| CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.-- | 0006| A. If a company applicant or company licensee is or | 0007| becomes a publicly traded corporation, it shall register with | 0008| the board and provide the following information: | 0009| (1) as of the date the company became a | 0010| publicly traded corporation, and on any later date when the | 0011| information changes, the names of all stockholders of record who | 0012| hold five percent or more of the outstanding shares of any class | 0013| of equity securities issued by the publicly traded corporation; | 0014| (2) the names of all officers within thirty | 0015| days of their respective appointments; | 0016| (3) the names of all directors within thirty | 0017| days of their respective elections or appointments; | 0018| (4) the organization, financial structure and | 0019| nature of the businesses the publicly traded corporation | 0020| operates; | 0021| (5) the terms, position, rights and privileges | 0022| of the different classes of securities outstanding as of the | 0023| date the company became a publicly traded corporation; | 0024| (6) the terms on which the company's securities | 0025| were issued during the three years preceding the date on which | 0001| the company became a publicly traded corporation and the terms | 0002| on which the publicly traded corporation's securities are to be | 0003| offered to the public as of the date the company became a | 0004| publicly traded corporation; | 0005| (7) the terms and conditions of all outstanding | 0006| indebtedness and evidence of security pertaining directly or | 0007| indirectly to the publicly traded corporation; | 0008| (8) remuneration exceeding fifty thousand | 0009| dollars ($50,000) per year paid to persons other than directors, | 0010| officers and key executives who are actively and directly | 0011| engaged in the administration or supervision of the gaming | 0012| activities of the publicly traded corporation; | 0013| (9) bonus and profit-sharing arrangements | 0014| within the publicly traded corporation directly or indirectly | 0015| relating to its gaming activities; | 0016| (10) management and service contracts of the | 0017| corporation pertaining to its gaming activities; | 0018| (11) options existing or to be created pursuant | 0019| to its equity securities; | 0020| (12) balance sheets and profit and loss | 0021| statements, certified by independent certified public | 0022| accountants, for not less than the three fiscal years preceding | 0023| the date the company became a publicly traded corporation; | 0024| (13) any further financial statements deemed | 0025| necessary or appropriate by the board; and | 0001| (14) a description of the publicly traded | 0002| corporation's affiliated companies and intermediary companies | 0003| and gaming licenses, permits and approvals held by those | 0004| entities. | 0005| B. The board shall consider the following criteria | 0006| in determining whether to certify a publicly traded corporation: | 0007| (1) the business history of the publicly traded | 0008| corporation, including its record of financial stability, | 0009| integrity and success of its gaming operations in other | 0010| jurisdictions; | 0011| (2) the current business activities and | 0012| interests of the applicant, as well as those of its officers, | 0013| promoters, lenders and other sources of financing, or any other | 0014| persons associated with it; | 0015| (3) the current financial structure of the | 0016| publicly traded corporation as well as changes that could | 0017| reasonably be expected to occur to its financial structure as a | 0018| consequence of its proposed action; | 0019| (4) the present and proposed compensation | 0020| arrangements between the publicly traded corporation and its | 0021| directors, officers, key executives, securities holders, lenders | 0022| or other sources of financing; | 0023| (5) the equity investment, commitment or | 0024| contribution of present or prospective directors, key | 0025| executives, investors, lenders or other sources of financing; | 0001| and | 0002| (6) the dealings and arrangements, prospective | 0003| or otherwise, between the publicly traded corporation and its | 0004| investment bankers, promoters, finders or lenders and other | 0005| sources of financing. | 0006| C. The board may issue a certification upon receipt | 0007| of a proper application and consideration of the criteria set | 0008| forth in Subsection B of this section if it finds that the | 0009| certification would not be contrary to the public interest or | 0010| the policy set forth in the Gaming Control Act. | 0011| Section 25. [NEW MATERIAL] FINDING OF SUITABILITY | 0012| REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL | 0013| FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY BY | 0014| BOARD.-- | 0015| A. Each officer, director and key executive of a | 0016| holding company, intermediary company or publicly traded | 0017| corporation that the board determines is or is to become | 0018| actively and directly engaged in the administration or | 0019| supervision of, or any other significant involvement with, the | 0020| activities of the subsidiary licensee or applicant shall apply | 0021| for a finding of suitability. | 0022| B. If any officer, director or key executive of a | 0023| holding company, intermediary company or publicly traded | 0024| corporation required to be found suitable pursuant to Subsection | 0025| A of this section fails to apply for a finding of suitability | 0001| within thirty days after being requested to do so by the board, | 0002| or is not found suitable by the board, or if his finding of | 0003| suitability is revoked after appropriate findings by the board, | 0004| the holding company, intermediary company or publicly traded | 0005| corporation shall immediately remove that officer, director or | 0006| key executive from any office or position in which the person is | 0007| engaged in the administration or supervision of, or any other | 0008| involvement with, the activities of the certified subsidiary | 0009| until the person is thereafter found to be suitable. If the | 0010| board suspends the finding of suitability of any officer, | 0011| director or key executive, the holding company, intermediary | 0012| company or publicly traded corporation shall immediately and for | 0013| the duration of the suspension suspend that officer, director or | 0014| key executive from performance of any duties in which he is | 0015| actively and directly engaged in the administration or | 0016| supervision of, or any other involvement with, the activities of | 0017| the subsidiary licensee. | 0018| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0019| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0020| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION-- | 0021| PROHIBITION.-- | 0022| A. Each person who, individually or in association | 0023| with others, acquires, directly or indirectly, beneficial | 0024| ownership of five percent or more of any voting securities in a | 0025| publicly traded corporation registered with the board may be | 0001| required to be found suitable if the board has reason to believe | 0002| that the acquisition of the ownership would otherwise be | 0003| inconsistent with the declared policy of this state. | 0004| B. Each person who, individually or in association | 0005| with others, acquires, directly or indirectly, beneficial | 0006| ownership of five percent or more of any class of voting | 0007| securities of a publicly traded corporation certified by the | 0008| board shall notify the board within ten days after acquiring | 0009| such interest. | 0010| C. Each person who, individually or in association | 0011| with others, acquires, directly or indirectly, the beneficial | 0012| ownership of more than ten percent of any class of voting | 0013| securities of a publicly traded corporation certified by the | 0014| board shall apply to the board for a finding of suitability | 0015| within thirty days after acquiring such interest. | 0016| D. Institutional investors that have been exempted | 0017| from or have received a waiver of suitability requirements | 0018| pursuant to regulations adopted by the board are not required to | 0019| comply with this section. | 0020| E. Any person required by the board or by the | 0021| provisions of this section to be found suitable shall apply for | 0022| a finding of suitability within thirty days after the board | 0023| requests that he do so. | 0024| F. Any person required by the board or the | 0025| provisions of this section to be found suitable who subsequently | 0001| is found unsuitable by the board shall not hold directly or | 0002| indirectly the beneficial ownership of any security of a | 0003| publicly traded corporation that is registered with the board | 0004| beyond that period of time prescribed by the board. | 0005| G. The board may, but is not required to, deem a | 0006| person qualified to hold a license or be found suitable as | 0007| required by this section if the person currently holds a valid | 0008| license issued by, or has been found suitable by, gaming | 0009| regulatory authorities in another jurisdiction, provided that | 0010| the board finds that the other jurisdiction has conducted a | 0011| thorough investigation of the applicant and has criteria | 0012| substantially similar to those of the board to determine when a | 0013| person is to be found suitable or to obtain a license. | 0014| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE | 0015| OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE | 0016| OFFICERS AND DIRECTORS--APPROVAL OF BOARD.-- | 0017| A. Before a company licensee, other than a publicly | 0018| traded corporation, may issue or transfer five percent or more | 0019| of its securities to any person, it shall file a report of its | 0020| proposed action with the board, which report shall request the | 0021| approval of the board. The board shall have ninety days within | 0022| which to approve or deny the request. If the board fails to act | 0023| in ninety days, the request is deemed approved. If the board | 0024| denies the request, the company shall not issue or transfer five | 0025| percent or more of its securities to the person about whom the | 0001| request was made. | 0002| B. A company licensee shall file a report of each | 0003| change of the corporate officers and directors with the board | 0004| within thirty days of the change. The board shall have ninety | 0005| days from the date the report is filed within which to approve | 0006| or disapprove such change. During the ninety-day period and | 0007| thereafter, if the board does not disapprove the change, an | 0008| officer or director is entitled to exercise all powers of the | 0009| office to which he was elected or appointed. | 0010| C. A company licensee shall report to the board in | 0011| writing any change in company personnel who have been designated | 0012| as key executives. The report shall be made no later than | 0013| thirty days after the change. | 0014| D. The board may require that a company licensee | 0015| furnish the board with a copy of its federal income tax return | 0016| within thirty days after the return is filed. | 0017| Section 28. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0018| GENERAL PROVISIONS--BUSINESS PLAN--PLAYER AGE LIMIT-- | 0019| RESTRICTIONS.-- | 0020| A. An applicant for licensure as a gaming operator | 0021| shall submit with the application a plan for assisting in the | 0022| prevention, education and treatment of compulsive gambling. The | 0023| plan shall include regular educational training sessions for | 0024| employees. Plan approval is a condition of issuance of the | 0025| license. | 0001| B. An applicant for licensure as a gaming operator | 0002| shall submit with the application a proposed business plan. The | 0003| plan shall include at least: | 0004| (1) a floor plan of the area to be used for | 0005| gaming machine operations; | 0006| (2) an advertising and marketing plan; | 0007| (3) the proposed placement and number of gaming | 0008| machines; | 0009| (4) a financial control plan; | 0010| (5) a security plan; | 0011| (6) a staffing plan for gaming machine | 0012| operations; and | 0013| (7) details of any proposed progressive | 0014| systems. C. A gaming operator licensee shall be granted | 0015| a license to operate a specific number of machines at a gaming | 0016| establishment identified in the license application and shall be | 0017| granted a license for each gaming machine. | 0018| D. A gaming operator licensee who desires to change | 0019| the number of machines in operation at a gaming establishment | 0020| shall apply to the board for an amendment to his license | 0021| authorizing a change in the number of machines. | 0022| E. Gaming machines may be available for play only in | 0023| an area restricted to persons twenty-one years of age or older. | 0024| F. A gaming operator licensee shall erect a | 0025| permanent physical barrier to allow for multiple uses of the | 0001| premises by persons of all ages. For purposes of this | 0002| subsection, "permanent physical barrier" means a floor-to- | 0003| ceiling wall separating the general areas from the restricted | 0004| areas. The entrance to the area where gaming machines are | 0005| located shall display a sign that the premises are restricted to | 0006| persons twenty-one years of age or older. Persons under the age | 0007| of twenty-one shall not enter the area where gaming machines are | 0008| located. | 0009| G. A gaming operator licensee shall not have | 0010| automated teller machines in the area restricted pursuant to | 0011| Subsection F of this section. | 0012| H. A gaming operator licensee shall not provide, | 0013| allow, contract or arrange to provide alcohol or food for no | 0014| charge or at reduced prices as an incentive or enticement for | 0015| patrons to game. | 0016| I. Only a racetrack licensed by the state racing | 0017| commission or a nonprofit organization may apply for or be | 0018| issued a gaming operator's license. No other persons are | 0019| qualified to apply for or be issued a gaming operator's license | 0020| pursuant to the Gaming Control Act. | 0021| Section 29. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0022| SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES-- | 0023| DAYS AND HOURS OF OPERATIONS.-- | 0024| A. A racetrack licensed by the state racing | 0025| commission pursuant to the Horse Racing Act to conduct live | 0001| horse races or simulcast races may be issued a gaming operator's | 0002| license to operate gaming machines on its premises where live | 0003| racing is conducted. | 0004| B. A racetrack's gaming operator's license shall | 0005| automatically become void if: | 0006| (1) the racetrack no longer holds an active | 0007| license to conduct pari-mutuel wagering; or | 0008| (2) the racetrack fails to maintain a minimum | 0009| of three live race days a week with at least nine live races on | 0010| each race day during its licensed race meet in the 1997 calendar | 0011| year and in the 1998 and subsequent calendar years, four live | 0012| race days a week with at least nine live races on each race day | 0013| during its licensed race meet. | 0014| C. A gaming operator licensee that is a racetrack | 0015| may have up to three hundred licensed gaming machines, and may | 0016| upon specific approval of the board have up to five hundred | 0017| machines, but the number of gaming machines to be located on the | 0018| licensee's premises shall be specified in the gaming operator's | 0019| license. | 0020| D. Gaming machines on a racetrack gaming operator | 0021| licensee's premises may be played only on days when the | 0022| racetrack is either conducting live horse races or simulcasting | 0023| horse race meets and during times established by regulation of | 0024| the board, but the regulations shall provide for a minimum of | 0025| twelve hours a day but not to exceed sixteen hours a day. | 0001| E. Alcoholic beverages shall not be sold, served, | 0002| delivered or consumed in the area restricted pursuant to | 0003| Subsection F of Section 28 of the Gaming Control Act. | 0004| Section 30. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0005| SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING | 0006| MACHINES--DAYS AND HOURS OF OPERATIONS.-- | 0007| A. A nonprofit organization may be issued a gaming | 0008| operator's license to operate licensed gaming machines on its | 0009| premises to be played only by active and auxiliary members. | 0010| B. No more than fifteen gaming machines may be | 0011| offered for play on the premises of a nonprofit organization | 0012| gaming operator licensee. | 0013| C. No gaming machine on the premises of a nonprofit | 0014| organization gaming operator licensee may award a prize that | 0015| exceeds four thousand dollars ($4,000). | 0016| D. Gaming machines may be played on the premises of | 0017| a nonprofit organization gaming operator licensee from 12:00 | 0018| noon until 12:00 midnight every day. | 0019| E. Alcoholic beverages shall not be sold, served, | 0020| delivered or consumed in the area where gaming machines are | 0021| installed and operated on the premises of a nonprofit | 0022| organization gaming operator licensee. | 0023| Section 31. [NEW MATERIAL] LICENSING OF MANUFACTURERS | 0024| OF GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0025| A. It is unlawful for any person to operate, carry | 0001| on, conduct or maintain any form of manufacturing of any gaming | 0002| device or associated equipment for use or play in New Mexico or | 0003| any form of manufacturing of any gaming device or associated | 0004| equipment in New Mexico for use or play outside of New Mexico | 0005| without first obtaining and maintaining a manufacturer's | 0006| license. | 0007| B. If the board revokes a manufacturer's license: | 0008| (1) no new gaming device manufactured by the | 0009| manufacturer may be approved for use in this state; | 0010| (2) any previously approved gaming device | 0011| manufactured by the manufacturer is subject to revocation of | 0012| approval if the reasons for the revocation of the license also | 0013| apply to that gaming device; | 0014| (3) no new gaming device or associated | 0015| equipment made by the manufacturer may be distributed, sold, | 0016| transferred or offered for use or play in New Mexico; and | 0017| (4) any association or agreement between the | 0018| manufacturer and a distributor licensee or gaming operator | 0019| licensee in New Mexico shall be terminated. | 0020| C. An agreement between a manufacturer licensee and | 0021| a distributor licensee or a gaming operator licensee in New | 0022| Mexico shall be deemed to include a provision for its | 0023| termination without liability for the termination on the part of | 0024| either party upon a finding by the board that either party is | 0025| unsuitable. Failure to include that condition in the agreement | 0001| is not a defense in any action brought pursuant to this section | 0002| to terminate the agreement. | 0003| D. A gaming device shall not be used and offered for | 0004| play by a gaming operator licensee unless it is identical in all | 0005| material aspects to a model that has been specifically tested | 0006| and approved by: | 0007| (1) the board; | 0008| (2) a laboratory selected by the board; or | 0009| (3) gaming officials in Nevada or New Jersey | 0010| for current use. | 0011| E. The board may inspect every gaming device that is | 0012| manufactured: | 0013| (1) for use in New Mexico; or | 0014| (2) in New Mexico for use outside of New | 0015| Mexico. | 0016| F. The board may inspect every gaming device that is | 0017| offered for play within New Mexico by a gaming operator | 0018| licensee. | 0019| G. The board may inspect all associated equipment | 0020| that is manufactured and sold for use in New Mexico or | 0021| manufactured in New Mexico for use outside of New Mexico. | 0022| H. In addition to all other fees and charges imposed | 0023| pursuant to the Gaming Control Act, the board may determine, | 0024| charge and collect from each manufacturer an inspection fee, | 0025| which shall not exceed the actual cost of inspection and | 0001| investigation. | 0002| I. The board may prohibit the use of a gaming device | 0003| by a gaming operator licensee if it finds that the gaming device | 0004| does not meet the requirements of this section. | 0005| Section 32. [NEW MATERIAL] LICENSING OF DISTRIBUTORS | 0006| OF GAMING DEVICES.-- | 0007| A. It is unlawful for any person to operate, carry | 0008| on, conduct or maintain any form of distribution of any gaming | 0009| device for use or play in New Mexico without first obtaining and | 0010| maintaining a distributor's or manufacturer's license. | 0011| B. If the board revokes a distributor's license: | 0012| (1) no new gaming device distributed by the | 0013| person may be approved; | 0014| (2) any previously approved gaming device | 0015| distributed by the distributor is subject to revocation of | 0016| approval if the reasons for the revocation of the license also | 0017| apply to that gaming device; | 0018| (3) no new gaming device or associated | 0019| equipment distributed by the distributor may be distributed, | 0020| sold, transferred or offered for use or play in New Mexico; and | 0021| (4) any association or agreement between the | 0022| distributor and a gaming operator licensee shall be terminated. | 0023| An agreement between a distributor licensee and a gaming | 0024| operator licensee shall be deemed to include a provision for its | 0025| termination without liability on the part of either party upon a | 0001| finding by the board that the other party is unsuitable. | 0002| Failure to include that condition in the agreement is not a | 0003| defense in any action brought pursuant to this section to | 0004| terminate the agreement. | 0005| C. The board may inspect every gaming device that is | 0006| distributed for use in New Mexico. | 0007| D. In addition to all other fees and charges imposed | 0008| by the Gaming Control Act, the board may determine, charge and | 0009| collect from each distributor an inspection fee, which shall not | 0010| exceed the actual cost of inspection and investigation. | 0011| Section 33. [NEW MATERIAL] SUITABILITY OF CERTAIN | 0012| PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS WITH | 0013| GAMING OPERATORS--TERMINATION OF ASSOCIATION.-- | 0014| A. The board may determine the suitability of any | 0015| person who furnishes services or property to a gaming operator | 0016| licensee under any arrangement pursuant to which the person | 0017| receives compensation based on earnings, profits or receipts | 0018| from gaming. The board may require the person to comply with | 0019| the requirements of the Gaming Control Act and with the | 0020| regulations of the board. If the board determines that the | 0021| person is unsuitable, it may require the arrangement to be | 0022| terminated. | 0023| B. The board may require a person to apply for a | 0024| finding of suitability to be associated with a gaming operator | 0025| licensee if the person: | 0001| (1) does business on the premises of a gaming | 0002| establishment; or | 0003| (2) provides any goods or services to a gaming | 0004| operator licensee for compensation that the board finds to be | 0005| grossly disproportionate to the value of the goods or services. | 0006| C. If the board determines that a person is | 0007| unsuitable to be associated with a gaming operator licensee, the | 0008| association shall be terminated. Any agreement that entitles a | 0009| business other than gaming to be conducted on the premises of a | 0010| gaming establishment, or entitles a person other than a licensee | 0011| to conduct business with the gaming operator licensee, is | 0012| subject to termination upon a finding of unsuitability of the | 0013| person seeking association with a gaming operator licensee. | 0014| Every agreement shall be deemed to include a provision for its | 0015| termination without liability on the part of the gaming operator | 0016| licensee upon a finding by the board of the unsuitability of the | 0017| person seeking or having an association with the gaming operator | 0018| licensee. Failure to include that condition in the agreement is | 0019| not a defense in any action brought pursuant to this section to | 0020| terminate the agreement. If the application is not presented to | 0021| the board within thirty days following demand or the unsuitable | 0022| association is not terminated, the board may pursue any remedy | 0023| or combination of remedies provided in the Gaming Control Act. | 0024| Section 34. [NEW MATERIAL] REASONS FOR INVESTIGATIONS | 0025| BY BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT HEARING EXAMINER- | 0001| -REVIEW BY BOARD--ORDER OF BOARD.-- | 0002| A. The board shall make appropriate investigations | 0003| to: | 0004| (1) determine whether there has been any | 0005| violation of the Gaming Control Act or of any regulations | 0006| adopted pursuant to that act; | 0007| (2) determine any facts, conditions, practices | 0008| or matters that it deems necessary or proper to aid in the | 0009| enforcement of the Gaming Control Act or regulations adopted | 0010| pursuant to that act; | 0011| (3) aid in adopting regulations; | 0012| (4) secure information as a basis for | 0013| recommending legislation relating to the Gaming Control Act; or | 0014| (5) determine whether a licensee is able to | 0015| meet its financial obligations, including all financial | 0016| obligations imposed by the Gaming Control Act, as they become | 0017| due. | 0018| B. If after an investigation the board is satisfied | 0019| that a license, registration, finding of suitability or prior | 0020| approval by the board of any transaction for which approval was | 0021| required by the provisions of the Gaming Control Act should be | 0022| limited, conditioned, suspended or revoked, or that a fine | 0023| should be levied, the board shall initiate a hearing by filing a | 0024| complaint and transmitting a copy of it to the licensee, | 0025| together with a summary of evidence in its possession bearing on | 0001| the matter and the transcript of testimony at any investigative | 0002| hearing conducted by or on behalf of the board. The complaint | 0003| shall be a written statement of charges that sets forth in | 0004| ordinary and concise language the acts or omissions with which | 0005| the respondent is charged. It shall specify the statutes or | 0006| regulations that the respondent is alleged to have violated but | 0007| shall not consist merely of charges raised in the language of | 0008| the statutes or regulations. The summary of the evidence shall | 0009| be confidential and made available only to the respondent until | 0010| such time as it is offered into evidence at any public hearing | 0011| on the matter. | 0012| C. The respondent shall file an answer within thirty | 0013| days after service of the complaint. | 0014| D. Upon filing the complaint the board shall appoint | 0015| a hearing examiner to conduct further proceedings. | 0016| E. The hearing examiner shall conduct proceedings in | 0017| accordance with the Gaming Control Act and the regulations | 0018| adopted by the board. At the conclusion of the proceedings, the | 0019| hearing examiner may recommend that the board take any | 0020| appropriate action, including revocation, suspension, limitation | 0021| or conditioning of a license or imposition of a fine not to | 0022| exceed fifty thousand dollars ($50,000) for each violation or | 0023| any combination or all of the foregoing actions. | 0024| F. The hearing examiner shall prepare a written | 0025| decision containing his recommendation to the board and shall | 0001| serve it on all parties. Any respondent who disagrees with the | 0002| hearing examiner's recommendation may request the board, within | 0003| ten days of service of the recommendation, to review the | 0004| recommendation. | 0005| G. Upon proper request, the board shall review the | 0006| recommendation. The board may remand the case to the hearing | 0007| examiner for the presentation of additional evidence upon a | 0008| showing of good cause why such evidence could not have been | 0009| presented at the previous hearing. | 0010| H. The board shall by a majority vote accept, reject | 0011| or modify the recommendation. | 0012| I. If the board limits, conditions, suspends or | 0013| revokes any license or imposes a fine or limits, conditions, | 0014| suspends or revokes any registration, finding of suitability or | 0015| prior approval, it shall issue a written order specifying its | 0016| action. | 0017| J. The board's order is effective unless and until | 0018| reversed upon judicial review, except that the board may stay | 0019| its order pending a rehearing or judicial review upon such terms | 0020| and conditions as it deems proper. | 0021| Section 35. [NEW MATERIAL] EMERGENCY ORDERS OF | 0022| BOARD.--The board may issue an emergency order for suspension, | 0023| limitation or conditioning of a license, registration, finding | 0024| of suitability or work permit or may issue an emergency order | 0025| requiring a gaming operator licensee to exclude an individual | 0001| licensee from the premises of the gaming operator licensee's | 0002| gaming establishment or not to pay an individual licensee any | 0003| remuneration for services or any profits, income or accruals on | 0004| his investment in the licensed gaming establishment in the | 0005| following manner: | 0006| A. an emergency order may be issued only when the | 0007| board believes that: | 0008| (1) a licensee has willfully failed to report, | 0009| pay or truthfully account for and pay over any fee imposed by | 0010| the provisions of the Gaming Control Act or willfully attempted | 0011| in any manner to evade or defeat any fee or payment thereof; | 0012| (2) a licensee or gaming employee has cheated | 0013| at a game; or | 0014| (3) the emergency order is necessary for the | 0015| immediate preservation of the public peace, health, safety, | 0016| morals, good order or general welfare; | 0017| B. the emergency order shall set forth the grounds | 0018| upon which it is issued, including a statement of facts | 0019| constituting the alleged emergency necessitating such action; | 0020| C. the emergency order is effective immediately upon | 0021| issuance and service upon the licensee or resident agent of the | 0022| licensee or gaming employee or, in cases involving registration | 0023| or findings of suitability, upon issuance and service upon the | 0024| person or entity involved or resident agent of the entity | 0025| involved; the emergency order may suspend, limit, condition or | 0001| take other action in relation to the license of one or more | 0002| persons in an operation without affecting other individual | 0003| licensees or the gaming operator licensee. The emergency order | 0004| remains effective until further order of the board or final | 0005| disposition of the case; and | 0006| D. within five days after issuance of an emergency | 0007| order, the board shall cause a complaint to be filed and served | 0008| upon the person or entity involved; thereafter, the person or | 0009| entity against whom the emergency order has been issued and | 0010| served is entitled to a hearing before the board and to judicial | 0011| review of the decision and order of the board in accordance with | 0012| the provisions of the board's regulations. | 0013| Section 36. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0014| CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.-- | 0015| A. The board shall by regulation provide for the | 0016| establishment of a list of persons who are to be excluded or | 0017| ejected from a gaming establishment. The list may include any | 0018| person whose presence in the gaming establishment is determined | 0019| by the board to pose a threat to the public interest or licensed | 0020| gaming activities. | 0021| B. In making the determination in Subsection A of | 0022| this section, the board may consider a: | 0023| (1) prior conviction for a crime that is a | 0024| felony under state or federal law, a crime involving moral | 0025| turpitude or a violation of the gaming laws of any jurisdiction; | 0001| (2) violation or conspiracy to violate the | 0002| provisions of the Gaming Control Act relating to: | 0003| (a) the failure to disclose an interest in | 0004| a gaming activity for which the person must obtain a license; or | 0005| (b) willful evasion of fees or taxes; | 0006| (3) notorious or unsavory reputation that would | 0007| adversely affect public confidence and trust that the gaming | 0008| industry is free from criminal or corruptive influences; or | 0009| (4) written order of any other governmental | 0010| agency in this state or any other state that authorizes the | 0011| exclusion or ejection of the person from an establishment at | 0012| which gaming is conducted. | 0013| C. A gaming operator licensee has the right, without | 0014| a list established by the board, to exclude or eject a person | 0015| from its gaming establishment who poses a threat to the public | 0016| interest or for any business 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 on the list or for exclusion or ejection under | 0020| Subsection A or C of this section. | 0021| Section 37. [NEW MATERIAL] INTERNAL CONTROL SYSTEMS.-- | 0022| A. Each gaming operator licensee shall adopt | 0023| internal control systems that shall include provisions for: | 0024| (1) safeguarding its assets and revenues, | 0025| especially the recording of cash and evidences of indebtedness; | 0001| (2) making and maintaining reliable records, | 0002| accounts and reports of transactions, operations and events, | 0003| including reports to the board; and | 0004| (3) a system by which the amount wagered on | 0005| each gaming machine and the amount paid out by each gaming | 0006| machine is recorded on a daily basis, which results may be | 0007| obtained by the board by appropriate means as described in | 0008| regulations adopted by the board; all manufacturers are required | 0009| to have such a system available for gaming operators for the | 0010| gaming machines that it supplies for use in New Mexico, and all | 0011| distributors shall make such a system available to gaming | 0012| operators. | 0013| B. The internal control system shall be designed to | 0014| reasonably ensure that: | 0015| (1) assets are safeguarded; | 0016| (2) financial records are accurate and | 0017| reliable; | 0018| (3) transactions are performed only in | 0019| accordance with management's general or specific authorization; | 0020| (4) transactions are recorded adequately to | 0021| permit proper reporting of gaming revenue and of fees and taxes | 0022| and to maintain accountability of assets; | 0023| (5) access to assets is allowed only in | 0024| accordance with management's specific authorization; | 0025| (6) recorded accountability for assets is | 0001| compared with actual assets at reasonable intervals and | 0002| appropriate action is taken with respect to any discrepancies; | 0003| and | 0004| (7) functions, duties and responsibilities are | 0005| appropriately segregated and performed in accordance with sound | 0006| accounting and management practices by competent, qualified | 0007| personnel. | 0008| C. A gaming operator licensee and an applicant for a | 0009| gaming operator's license shall describe, in the manner the | 0010| board may approve or require, its administrative and accounting | 0011| procedures in detail in a written system of internal control. A | 0012| gaming operator licensee and an applicant for a gaming | 0013| operator's license shall submit a copy of its written system to | 0014| the board. Each written system shall include: | 0015| (1) an organizational chart depicting | 0016| appropriate segregation of functions and responsibilities; | 0017| (2) a description of the duties and | 0018| responsibilities of each position shown on the organizational | 0019| chart; | 0020| (3) a detailed, narrative description of the | 0021| administrative and accounting procedures designed to satisfy the | 0022| requirements of Subsection A of this section; | 0023| (4) a written statement signed by the | 0024| licensee's chief financial officer and either the licensee's | 0025| chief executive officer or a licensed owner attesting that the | 0001| system satisfies the requirements of this section; | 0002| (5) if the written system is submitted by an | 0003| applicant, a letter from an independent certified public | 0004| accountant stating that the applicant's written system has been | 0005| reviewed by the accountant and complies with the requirements of | 0006| this section; and | 0007| (6) other items as the board may require. | 0008| D. The board shall adopt and publish minimum | 0009| standards for internal control procedures. | 0010| Section 38. [NEW MATERIAL] GAMING EMPLOYEES--ISSUANCE | 0011| OF WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0012| A. A person shall not be employed as a gaming | 0013| employee unless the person holds a valid work permit issued by | 0014| the board. | 0015| B. A work permit shall be issued and may be revoked | 0016| by the board as provided in regulations adopted by the board. | 0017| C. Any person whose work permit has been denied or | 0018| revoked may seek judicial review. | 0019| Section 39. [NEW MATERIAL] AGE REQUIREMENT FOR PATRONS | 0020| AND GAMING EMPLOYEES.--A person under the age of twenty-one | 0021| years shall not: | 0022| A. play, be allowed to play, place wagers on or | 0023| collect winnings from, whether personally or through an agent, | 0024| any game authorized or offered to play pursuant to the Gaming | 0025| Control Act; or | 0001| B. be employed as a gaming employee. | 0002| Section 40. [NEW MATERIAL] CALCULATION OF NET TAKE-- | 0003| CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take from | 0004| gaming machines, the actual cost to the licensee of any personal | 0005| property distributed to a patron as the result of a legitimate | 0006| wager may be deducted as a loss, except for travel expenses, | 0007| food, refreshments, lodging or services. For the purposes of | 0008| this section, "as the result of a legitimate wager" means that | 0009| the patron must make a wager prior to receiving the personal | 0010| property, regardless of whether the receipt of the personal | 0011| property is dependent on the outcome of the wager. | 0012| Section 41. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0013| LICENSE FEES.--A political subdivision of the state shall not | 0014| impose a license fee or tax on any licensee licensed pursuant to | 0015| the Gaming Control Act except for the imposition of property | 0016| taxes, local option gross receipts taxes with respect to | 0017| receipts not subject to the gaming tax and the distribution | 0018| provided for and determined pursuant to Subsection C of Section | 0019| 60-1-15 and Section 60-1-15.2 NMSA 1978. | 0020| Section 42. [NEW MATERIAL] USE OF CHIPS, TOKENS OR | 0021| LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be | 0022| conducted with chips, tokens or other similar objects approved | 0023| by the board or with the legal currency of the United States. | 0024| Section 43. [NEW MATERIAL] COMMUNICATION OR DOCUMENT | 0025| OF APPLICANT OR LICENSEE ABSOLUTELY CONFIDENTIAL-- | 0001| CONFIDENTIALITY NOT WAIVED--DISCLOSURE OF CONFIDENTIAL | 0002| INFORMATION PROHIBITED.-- | 0003| A. Any communication or document of an applicant or | 0004| licensee is confidential and does not impose liability for | 0005| defamation or constitute a ground for recovery in any civil | 0006| action if it is required by: | 0007| (1) law or the regulations of the board; or | 0008| (2) a subpoena issued by the board to be made | 0009| or transmitted to the board. | 0010| B. The confidentiality created pursuant to | 0011| Subsection A of this section is not waived or lost because the | 0012| document or communication is disclosed to the board. | 0013| C. Notwithstanding the powers granted to the board | 0014| by the Gaming Control Act, the board: | 0015| (1) may release or disclose any confidential | 0016| information, documents or communications provided by an | 0017| applicant or licensee only with the prior written consent of the | 0018| applicant or licensee or pursuant to a lawful court order after | 0019| timely notice of the proceedings has been given to the applicant | 0020| or licensee; | 0021| (2) shall maintain all confidential | 0022| information, documents and communications in a secure place | 0023| accessible only to members of the board; and | 0024| (3) shall adopt procedures and regulations to | 0025| protect the confidentiality of information, documents and | 0001| communications provided by an applicant or licensee. | 0002| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0003| CONFIDENTIAL INFORMATION.--An application to a court for an | 0004| order requiring the board to release any information declared by | 0005| law to be confidential shall be made only by petition in | 0006| district court. A hearing shall be held on the petition not | 0007| less than ten days and not more than twenty days after the date | 0008| of service of the petition on the board, the attorney general | 0009| and all persons who may be affected by the entry of that order. | 0010| A copy of the petition, all papers filed in support of it and a | 0011| notice of hearing shall be served. | 0012| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0013| SYSTEM.--The board shall develop and operate a central system | 0014| into which all licensed gaming machines are connected. The | 0015| central system shall be capable of: | 0016| A. monitoring continuously, retrieving and auditing | 0017| the operations, financial data and program information of the | 0018| network; | 0019| B. disabling from operation or play any gaming | 0020| machine in the network that does not comply with the provisions | 0021| of the Gaming Control Act or the regulations of the board; | 0022| C. communicating, through program modifications or | 0023| other means equally effective, with all gaming machines licensed | 0024| by the board; | 0025| D. interacting, reading, communicating and linking | 0001| with gaming machines from a broad spectrum of manufacturers and | 0002| associated equipment; and | 0003| E. providing linkage to each gaming machine in the | 0004| network at a reasonable and affordable cost to the state and the | 0005| gaming operator licensee and allowing for program modifications | 0006| and system updating at a reasonable cost. | 0007| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.--To | 0008| be eligible for licensure, each gaming machine shall meet all | 0009| specifications established by regulations of the board and: | 0010| A. be unable to be manipulated in a manner that | 0011| affects the random probability of winning plays or in any other | 0012| manner determined by the board to be undesirable; | 0013| B. have at least one mechanism that accepts coins or | 0014| currency, but does not accept bills of denominations greater | 0015| than twenty dollars ($20.00); | 0016| C. be capable of having play suspended through the | 0017| central system by the executive director until he resets the | 0018| gaming machine; | 0019| D. house nonresettable mechanical and electronic | 0020| meters within a readily accessible locked area of the gaming | 0021| machine that maintain a permanent record of all money inserted | 0022| into the machine, all cash payouts of winnings, all refunds of | 0023| winnings, all credits played for additional games and all | 0024| credits won by players; | 0025| E. be capable of printing out, at the request of the | 0001| executive director, readings on the electronic meters of the | 0002| machine; | 0003| F. for machines that do not dispense coins or tokens | 0004| directly to players, be capable of printing a ticket voucher | 0005| stating the value of a cash prize won by the player at the | 0006| completion of each game, the date and time of day the game was | 0007| played in a twenty-four-hour format showing hours and minutes, | 0008| the machine serial number, the sequential number of the ticket | 0009| voucher and an encrypted validation number for determining the | 0010| validity of a winning ticket voucher; | 0011| G. be capable of being linked to the board's central | 0012| system for the purpose of being monitored continuously as | 0013| required by the board; | 0014| H. provide for a payback value for each credit | 0015| wagered, determined over time, of not less than eighty percent | 0016| or more than ninety-six percent; | 0017| I. meet the standards and specifications set by laws | 0018| or regulations of the states of Nevada and New Jersey for gaming | 0019| machines, whichever are more stringent; | 0020| J. offer only games authorized and examined by the | 0021| board; and | 0022| K. display the gaming machine license issued for | 0023| that machine in an easily accessible place, before and during | 0024| the time that a machine is available for use. | 0025| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0001| ODDS.--The odds of winning on each gaming machine shall be | 0002| posted on or near each gaming machine. The board shall provide | 0003| the manner in which the odds shall be determined and posted by | 0004| regulation. | 0005| Section 48. [NEW MATERIAL] EXAMINATION OF GAMING | 0006| DEVICES--COST ALLOCATION.-- | 0007| A. The board shall examine prototypes of gaming | 0008| devices of manufacturers seeking a license as required. | 0009| B. The board by regulation shall require a | 0010| manufacturer to pay the anticipated actual costs of the | 0011| examination of a gaming device in advance and, after the | 0012| completion of the examination, shall refund overpayments or | 0013| charge and collect amounts sufficient to reimburse the board for | 0014| underpayment of actual costs. | 0015| C. The board may contract for the examination of | 0016| gaming devices to meet the requirements of this section. | 0017| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION-- | 0018| ADMINISTRATION.-- | 0019| A. An excise tax is imposed on the privilege of | 0020| engaging in gaming activities in the state. This tax shall be | 0021| known as the "gaming tax". | 0022| B. The gaming tax is an amount equal to ten percent | 0023| of the gross receipts of manufacturer licensees from the sale, | 0024| lease or other transfer of gaming devices in or into the state, | 0025| except receipts of a manufacturer from the sale, lease or other | 0001| transfer to a licensed distributor for subsequent sale or lease | 0002| may be excluded from gross receipts; ten percent of the gross | 0003| receipts of distributor licensees from the sale, lease or other | 0004| transfer of gaming devices in or into the state; and twenty-five | 0005| percent of the net take of every gaming operator licensee. | 0006| C. The gaming tax imposed on a licensee is in lieu | 0007| of all state and local gross receipts taxes on that portion of | 0008| the licensee's gross receipts attributable to gaming activities. | 0009| D. The gaming tax shall be administered and | 0010| collected by the taxation and revenue department in cooperation | 0011| with the board. The provisions of the Tax Administration Act | 0012| apply to the collection and administration of the tax. | 0013| E. In addition to the gaming tax, a gaming operator | 0014| licensee that is a racetrack shall pay twenty percent of the net | 0015| take to purses to be distributed in accordance with regulations | 0016| adopted by the state racing commission. A racetrack gaming | 0017| operator licensee shall spend no less than one-fourth of one | 0018| percent of the net take of its gaming machines to fund or | 0019| support programs for the treatment and assistance of compulsive | 0020| gamblers. | 0021| F. A nonprofit gaming operator licensee shall | 0022| distribute at least eighty-eight percent of the balance of net | 0023| take, after payment of the gaming tax and any income taxes, for | 0024| charitable or educational purposes. | 0025| Section 50. [NEW MATERIAL] CIVIL ACTIONS TO RESTRAIN | 0001| VIOLATIONS OF GAMING CONTROL ACT.-- | 0002| A. The attorney general, at the request of the | 0003| board, may institute a civil action in any court of this state | 0004| against any person to enjoin a violation of a prohibitory | 0005| provision of the Gaming Control Act. | 0006| B. An action brought against a person pursuant to | 0007| this section shall not preclude a criminal action or | 0008| administrative proceeding against that person. | 0009| Section 51. [NEW MATERIAL] TESTIMONIAL IMMUNITY.-- | 0010| A. The board may order a person to answer a question | 0011| or produce evidence and confer immunity pursuant to this | 0012| section. If, in the course of an investigation or hearing | 0013| conducted pursuant to the Gaming Control Act, a person refuses | 0014| to answer a question or produce evidence on the ground that he | 0015| will be exposed to criminal prosecution by doing so, then the | 0016| board may by approval of three members, after the written | 0017| approval of the attorney general, issue an order to answer or to | 0018| produce evidence with immunity. | 0019| B. If a person complies with an order issued | 0020| pursuant to Subsection A of this section, he shall be immune | 0021| from having a responsive answer given or responsive evidence | 0022| produced, or evidence derived from either, used to expose him to | 0023| criminal prosecution, except that the person may be prosecuted | 0024| for any perjury committed in the answer or production of | 0025| evidence and may also be prosecuted for contempt for failing to | 0001| act in accordance with the order of the board. An answer given | 0002| or evidence produced pursuant to the grant of immunity | 0003| authorized by this section may be used against the person | 0004| granted immunity in a prosecution of the person for perjury or a | 0005| proceeding against him for contempt. | 0006| Section 52. [NEW MATERIAL] CRIME--MANIPULATION OF | 0007| GAMING DEVICE WITH INTENT TO CHEAT.--A person who manipulates, | 0008| with the intent to cheat, any component of a gaming device in a | 0009| manner contrary to the designed and normal operational purpose | 0010| of the component, including varying the pull of the handle of a | 0011| slot machine with knowledge that the manipulation affects the | 0012| outcome of the game or with knowledge of any event that affects | 0013| the outcome of the game, is guilty of a fourth degree felony and | 0014| shall be sentenced pursuant to the provisions of Section 31-18- | 0015| 15 NMSA 1978. | 0016| Section 53. [NEW MATERIAL] CRIME--USE OF COUNTERFEIT | 0017| OR UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN | 0018| DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0019| A. A person who, in playing any game designed to be | 0020| played with, to receive or to be operated by tokens approved by | 0021| the board or by lawful currency of the United States, knowingly | 0022| uses tokens other than those approved by the board, uses | 0023| currency that is not lawful currency of the United States or | 0024| uses currency not of the same denomination as the currency | 0025| intended to be used in that game is guilty of a third degree | 0001| felony and shall be sentenced pursuant to the provisions of | 0002| Section 31-18-15 NMSA 1978. | 0003| B. A person who knowingly has on his person or in | 0004| his possession within a gaming establishment any device intended | 0005| to be used by him to violate the provisions of the Gaming | 0006| Control Act is guilty of a third degree felony and shall be | 0007| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0008| 1978. | 0009| C. A person, other than a duly authorized employee | 0010| of a gaming operator acting in furtherance of his employment | 0011| within a gaming establishment, who knowingly has on his person | 0012| or in his possession within a gaming establishment any key or | 0013| device known by him to have been designed for the purpose of and | 0014| suitable for opening, entering or affecting the operation of any | 0015| game, dropbox or any electronic or mechanical device connected | 0016| to the game or dropbox or for removing money or other contents | 0017| from them is guilty of a third degree felony and shall be | 0018| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0019| 1978. | 0020| D. A person who knowingly and with intent to use | 0021| them for cheating has on his person or in his possession any | 0022| paraphernalia for manufacturing slugs is guilty of a third | 0023| degree felony and shall be sentenced pursuant to the provisions | 0024| of Section 31-18-15 NMSA 1978. As used in this subsection, | 0025| "paraphernalia for manufacturing slugs" means the equipment, | 0001| products and materials that are intended for use or designed for | 0002| use in manufacturing, producing, fabricating, preparing, | 0003| testing, analyzing, packaging, storing or concealing a | 0004| counterfeit facsimile of tokens approved by the board or a | 0005| lawful coin of the United States, the use of which is unlawful | 0006| pursuant to the Gaming Control Act. The term includes: | 0007| (1) lead or lead alloy; | 0008| (2) molds, forms or similar equipment capable | 0009| of producing a likeness of a gaming token or coin; | 0010| (3) melting pots or other receptacles; | 0011| (4) torches; and | 0012| (5) tongs, trimming tools or other similar | 0013| equipment. | 0014| E. Possession of more than two items of the | 0015| equipment, products or material described in Subsection D of | 0016| this section permits a rebuttable inference that the possessor | 0017| intended to use them for cheating. | 0018| Section 54. [NEW MATERIAL] CRIME--CHEATING.--A person | 0019| who knowingly cheats at any game is guilty of a fourth degree | 0020| felony and upon conviction shall be sentenced pursuant to the | 0021| provisions of Section 31-18-15 NMSA 1978. | 0022| Section 55. [NEW MATERIAL] CRIME--POSSESSION OF GAMING | 0023| DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A | 0024| person who knowingly possesses any gaming device that has been | 0025| manufactured, sold or distributed in violation of the Gaming | 0001| Control Act is guilty of a fourth degree felony and shall be | 0002| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0003| 1978. | 0004| Section 56. [NEW MATERIAL] CRIME--REPORTING AND RECORD | 0005| VIOLATIONS--PENALTY.--A person who, in an application, book or | 0006| record required to be maintained by the Gaming Control Act or by | 0007| a regulation adopted under that act or in a report required to | 0008| be submitted by that act or a regulation adopted under that act, | 0009| knowingly makes a statement or entry that is false or misleading | 0010| or fails to maintain or make an entry the person knows is | 0011| required to be maintained or made is guilty of a fourth degree | 0012| felony and shall be sentenced pursuant to the provisions of | 0013| Section 31-18-15 NMSA 1978. | 0014| Section 57. [NEW MATERIAL] CRIME--UNLAWFUL | 0015| MANUFACTURE, SALE, DISTRIBUTION, MARKING, ALTERING OR | 0016| MODIFICATION OF DEVICES ASSOCIATED WITH GAMING--UNLAWFUL | 0017| INSTRUCTION--PENALTY.-- | 0018| A. A person who manufactures, sells or distributes a | 0019| device that is intended by him to be used to violate any | 0020| provision of the Gaming Control Act is guilty of a fourth degree | 0021| felony and shall be sentenced pursuant to the provisions of | 0022| Section 31-18-15 NMSA 1978. | 0023| B. A person who marks, alters or otherwise modifies | 0024| any gaming device in a manner that affects the result of a wager | 0025| by determining win or loss or alters the normal criteria of | 0001| random selection that affects the operation of a game or that | 0002| determines the outcome of a game is guilty of a fourth degree | 0003| felony and shall be sentenced pursuant to the provisions of | 0004| Section 31-18-15 NMSA 1978. | 0005| Section 58. [NEW MATERIAL] UNDERAGE GAMING--PENALTY | 0006| FOR PERMITTING OR PARTICIPATION.-- | 0007| A. A person who knowingly permits an individual who | 0008| the person knows is younger than twenty-one years of age to | 0009| participate in gaming is guilty of a fourth degree felony and | 0010| shall be sentenced pursuant to the provisions of Section | 0011| 31-18-15 NMSA 1978. | 0012| B. An individual who participates in gaming when he | 0013| is younger than twenty-one years of age at the time of | 0014| participation is guilty of a misdemeanor and shall be sentenced | 0015| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0016| Section 59. [NEW MATERIAL] CRIME--GENERAL PENALTIES | 0017| FOR VIOLATION OF ACT.--A person who willfully violates, attempts | 0018| to violate or conspires to violate any of the provisions of the | 0019| Gaming Control Act specifying prohibited acts, the | 0020| classification of which is not specifically stated in that act, | 0021| is guilty of a fourth degree felony and shall be sentenced | 0022| pursuant to the provisions of Section 31-18-15 NMSA 1978. | 0023| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING | 0024| OF A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON | 0025| LIABILITY--POSTING OF NOTICE.-- | 0001| A. A gaming operator licensee or its officers, | 0002| employees or agents may question a person in its gaming | 0003| establishment suspected of violating any of the provisions of | 0004| the Gaming Control Act. No gaming operator licensee or any of | 0005| its officers, employees or agents is criminally or civilly | 0006| liable: | 0007| (1) on account of any such questioning; or | 0008| (2) for reporting to the board or law | 0009| enforcement authorities the person suspected of the violation. | 0010| B. A gaming operator licensee or any of its | 0011| officers, employees or agents who has reasonable cause for | 0012| believing that there has been a violation of the Gaming Control | 0013| Act in the gaming establishment by a person may detain that | 0014| person in the gaming establishment in a reasonable manner and | 0015| for a reasonable length of time. Such a detention does not | 0016| render the gaming operator licensee or his officers, employees | 0017| or agents criminally or civilly liable unless it is established | 0018| by clear and convincing evidence detention was unreasonable | 0019| under the circumstances. | 0020| C. No gaming operator licensee or its officers, | 0021| employees or agents are entitled to the immunity from liability | 0022| provided for in Subsection B of this section unless there is | 0023| displayed in a conspicuous place in the gaming establishment a | 0024| notice in boldface type clearly legible and in substantially | 0025| this form: | 0001| "Any gaming operator licensee or any of his officers, | 0002| employees or agents who have reasonable cause for | 0003| believing that any person has violated any provision | 0004| of the Gaming Control Act prohibiting cheating in | 0005| gaming may detain that person in the establishment.". | 0006| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0007| BOARD ACTION.-- | 0008| A. Any person aggrieved by an action taken by the | 0009| board or one of its agents may request and receive a hearing for | 0010| the purpose of reviewing the action. To obtain a hearing the | 0011| aggrieved person shall file a request for hearing with the board | 0012| within thirty days after the date the action is taken. Failure | 0013| to file the request within the specified time is an irrevocable | 0014| waiver of the right to a hearing, and the action complained of | 0015| shall be final with no further right to review, either | 0016| administratively or by a court. | 0017| B. The board shall adopt procedural regulations to | 0018| govern the procedures to be followed in administrative hearings | 0019| pursuant to the provisions of this section. At a minimum, the | 0020| regulations shall provide: | 0021| (1) for the hearings to be public; | 0022| (2) for the appointment of a hearing officer to | 0023| conduct the hearing and make his recommendation to the board not | 0024| more than ten days after the completion of the hearing; | 0025| (3) procedures for discovery; | 0001| (4) assurance that procedural due process | 0002| requirements are satisfied; | 0003| (5) for the maintenance of a record of the | 0004| hearing proceedings and assessment of costs of any transcription | 0005| of testimony that is required for judicial review purposes; and | 0006| (6) for the hearing to be held in Santa Fe for | 0007| enforcement hearings and hearings on actions of statewide | 0008| application, and to be held in the place or area affected for | 0009| enforcement hearings and hearings on actions of limited local | 0010| concern. | 0011| C. Actions taken by the board after a hearing | 0012| pursuant to the provisions of this section shall be: | 0013| (1) written and shall state the reasons for the | 0014| action; | 0015| (2) made public when taken; | 0016| (3) communicated to all persons who have made a | 0017| written request for notification of the action taken; and | 0018| (4) taken not more than thirty days after the | 0019| submission of the hearing officer's report to the board. | 0020| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0021| ADMINISTRATIVE ACTIONS.-- | 0022| A. Any person adversely affected by an action taken | 0023| by the board after review pursuant to the provisions of Section | 0024| 61 of the Gaming Control Act may appeal the action to the court | 0025| of appeals. The appeal shall be on the record made at the | 0001| hearing. To support his appeal, the appellant shall make | 0002| arrangements with the board for a sufficient number of | 0003| transcripts of the record of the hearing on which the appeal is | 0004| based. The appellant shall pay for the preparation of the | 0005| transcripts. | 0006| B. On appeal, the court of appeals shall set aside | 0007| the administrative action only if it is found to be: | 0008| (1) arbitrary, capricious or an abuse of | 0009| discretion; | 0010| (2) not supported by substantial evidence in | 0011| the whole record; or | 0012| (3) otherwise not in accordance with law. | 0013| Section 63. [NEW MATERIAL] LIEN ON WINNINGS FOR DEBT | 0014| COLLECTED BY HUMAN SERVICES DEPARTMENT--PAYMENT TO | 0015| DEPARTMENT--PROCEDURE.-- | 0016| A. The human services department, acting as the | 0017| state's child support enforcement agency pursuant to Title IV-D | 0018| of the Social Security Act, shall periodically certify to the | 0019| board the names and social security numbers of persons owing a | 0020| debt to or collected by the human services department. | 0021| B. Prior to the payment of a gaming machine amount | 0022| in excess of six hundred dollars ($600), the board shall check | 0023| the name of the winner against the list of names and social | 0024| security numbers of persons owing a debt to or collected by the | 0025| human services department. | 0001| C. If the winner is on the list of persons owing a | 0002| debt to or collected by the agency, the board shall make a good- | 0003| faith attempt to notify the human services department, and the | 0004| department then has a lien against the winnings in the amount of | 0005| the debt owed to or collected by the agency. The board has no | 0006| liability to the human services department or the person on | 0007| whose behalf the department is collecting the debt if the board | 0008| fails to match a winner's name to a name on the list or is | 0009| unable to notify the department of a match. The department | 0010| shall provide the board with written notice of a support lien | 0011| promptly within five working days after the board notifies the | 0012| department of a match. | 0013| D. If the amount won is to be paid directly by the | 0014| board, the amount of the debt owed to or collected by the human | 0015| services department shall be held by the board for a period of | 0016| thirty days from the board's confirmation of the amount of the | 0017| debt to allow the department to institute any necessary | 0018| garnishment or wage withholding proceedings. If a garnishment | 0019| or withholding proceeding is not initiated within the thirty-day | 0020| period, the board shall release the amount won to the winner. | 0021| E. The human services department, in its discretion, | 0022| may release or partially release the support lien upon written | 0023| notice to the board. | 0024| F. A support lien under this section is in addition | 0025| to any other lien created by law. | 0001| Section 64. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0002| Chapter 248, Section 2, as amended) is amended to read: | 0003| "7-1-2. APPLICABILITY.--The Tax Administration Act | 0004| applies to and governs: | 0005| A. the administration and enforcement of the | 0006| following taxes or tax acts as they now exist or may hereafter | 0007| be amended: | 0008| (1) Income Tax Act; | 0009| (2) Withholding Tax Act; | 0010| (3) Gross Receipts and Compensating Tax Act and | 0011| any state gross receipts tax; | 0012| (4) Liquor Excise Tax Act; | 0013| (5) Local Liquor Excise Tax Act; | 0014| ~~[(6) Banking and Financial Corporations Tax~~ | 0015| ~~Act;~~ | 0016| ~~(7)]~~ (6) any municipal local option gross | 0017| receipts tax; | 0018| ~~[(8)]~~ (7) any county local option gross | 0019| receipts tax; | 0020| ~~[(9)]~~ (8) Special Fuels Supplier Tax Act; | 0021| ~~[(10)]~~ (9) Gasoline Tax Act; | 0022| ~~[(11)]~~ (10) petroleum products loading fee, | 0023| which fee shall be considered a tax for the purpose of the Tax | 0024| Administration Act; | 0025| ~~[(12)]~~ (11) Alternative Fuel Tax Act; | 0001| ~~[(13)]~~ (12) Cigarette Tax Act; | 0002| ~~[(14)]~~ (13) Estate Tax Act; | 0003| ~~[(15)]~~ (14) Railroad Car Company Tax Act; | 0004| ~~[(16)]~~ (15) Investment Credit Act; | 0005| ~~[(17)]~~ (16) Corporate Income and Franchise | 0006| Tax Act; | 0007| ~~[(18)]~~ (17) Uniform Division of Income for | 0008| Tax Purposes Act; | 0009| ~~[(19)]~~ (18) Multistate Tax Compact; | 0010| ~~[(20)]~~ (19) Tobacco Products Tax Act; | 0011| ~~[(21)]~~ (20) Filmmaker's Credit Act; and | 0012| ~~[(22)]~~ (21) the telecommunications relay | 0013| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0014| surcharge shall be considered a tax for the purposes of the Tax | 0015| Administration Act; | 0016| B. the administration and enforcement of the | 0017| following taxes, surtaxes, advanced payments or tax acts as they | 0018| now exist or may hereafter be amended: | 0019| (1) Resources Excise Tax Act; | 0020| (2) Severance Tax Act; | 0021| (3) any severance surtax; | 0022| (4) Oil and Gas Severance Tax Act; | 0023| (5) Oil and Gas Conservation Tax Act; | 0024| (6) Oil and Gas Emergency School Tax Act; | 0025| (7) Oil and Gas Ad Valorem Production Tax Act; | 0001| (8) Natural Gas Processors Tax Act; | 0002| (9) Oil and Gas Production Equipment Ad Valorem | 0003| Tax Act; | 0004| (10) Copper Production Ad Valorem Tax Act; and | 0005| (11) any advance payment required to be made by | 0006| any act specified in this subsection, which advance payment | 0007| shall be considered a tax for the purposes of the Tax | 0008| Administration Act; | 0009| C. the administration and enforcement of the | 0010| following taxes, surcharges, fees or acts as they now exist or | 0011| may hereafter be amended: | 0012| (1) Weight Distance Tax Act; | 0013| (2) Special Fuels Tax Act; | 0014| (3) the workers' compensation fee authorized by | 0015| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0016| for purposes of the Tax Administration Act; | 0017| (4) Uniform Unclaimed Property Act; | 0018| (5) 911 emergency surcharge and the network and | 0019| database surcharge, which surcharges shall be considered taxes | 0020| for purposes of the Tax Administration Act; | 0021| (6) the solid waste assessment fee authorized | 0022| by the Solid Waste Act, which fee shall be considered a tax for | 0023| purposes of the Tax Administration Act; ~~[and]~~ | 0024| (7) the water conservation fee imposed by | 0025| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0001| for the purposes of the Tax Administration Act; and | 0002| (8) the gaming tax imposed pursuant to the | 0003| Gaming Control Act; and | 0004| D. the administration and enforcement of all other | 0005| laws, with respect to which the department is charged with | 0006| responsibilities pursuant to the Tax Administration Act, but | 0007| only to the extent that the other laws do not conflict with the | 0008| Tax Administration Act." | 0009| Section 65. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0010| Chapter 91, Section 1, as amended) is amended to read: | 0011| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0012| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.- | 0013| A. In recognition of the fact that a representative | 0014| government is dependent upon an informed electorate, it is | 0015| declared to be public policy of this state that all persons are | 0016| entitled to the greatest possible information regarding the | 0017| affairs of government and the official acts of those officers | 0018| and employees who represent them. The formation of public | 0019| policy or the conduct of business by vote shall not be conducted | 0020| in closed meeting. All meetings of any public body except the | 0021| legislature and the courts shall be public meetings, and all | 0022| persons so desiring shall be permitted to attend and listen to | 0023| the deliberations and proceedings. Reasonable efforts shall be | 0024| made to accommodate the use of audio and video recording | 0025| devices. | 0001| B. All meetings of a quorum of members of any board, | 0002| commission, administrative adjudicatory body or other | 0003| policymaking body of any state agency, any agency or authority | 0004| of any county, municipality, district or any political | 0005| subdivision, held for the purpose of formulating public policy, | 0006| including the development of personnel policy, rules, | 0007| regulations or ordinances, discussing public business or for the | 0008| purpose of taking any action within the authority of or the | 0009| delegated authority of any board, commission or other | 0010| policymaking body are declared to be public meetings open to the | 0011| public at all times, except as otherwise provided in the | 0012| constitution of New Mexico or the Open Meetings Act. No public | 0013| meeting once convened that is otherwise required to be open | 0014| pursuant to the Open Meetings Act shall be closed or dissolved | 0015| into small groups or committees for the purpose of permitting | 0016| the closing of the meeting. | 0017| C. If otherwise allowed by law or rule of the public | 0018| body, a member of a public body may participate in a meeting of | 0019| the public body by means of a conference telephone or other | 0020| similar communications equipment when it is otherwise difficult | 0021| or impossible for the member to attend the meeting in person, | 0022| provided that each member participating by conference telephone | 0023| can be identified when speaking, all participants are able to | 0024| hear each other at the same time and members of the public | 0025| attending the meeting are able to hear any member of the public | 0001| body who speaks during the meeting. | 0002| D. Any meetings at which the discussion or adoption | 0003| of any proposed resolution, rule, regulation or formal action | 0004| occurs and at which a majority or quorum of the body is in | 0005| attendance, and any closed meetings, shall be held only after | 0006| reasonable notice to the public. The affected body shall | 0007| determine at least annually in a public meeting what notice for | 0008| a public meeting is reasonable when applied to that body. That | 0009| notice shall include broadcast stations licensed by the federal | 0010| communications commission and newspapers of general circulation | 0011| that have provided a written request for such notice. | 0012| E. A public body may recess and reconvene a meeting | 0013| to a day subsequent to that stated in the meeting notice if, | 0014| prior to recessing, the public body specifies the date, time and | 0015| place for continuation of the meeting and, immediately following | 0016| the recessed meeting, posts notice of the date, time and place | 0017| for the reconvened meeting on or near the door of the place | 0018| where the original meeting was held and in at least one other | 0019| location appropriate to provide public notice of the | 0020| continuation of the meeting. Only matters appearing on the | 0021| agenda of the original meeting may be discussed at the | 0022| reconvened meeting. | 0023| F. Meeting notices shall include an agenda | 0024| containing a list of specific items of business to be discussed | 0025| or transacted at the meeting or information on how the public | 0001| may obtain a copy of such an agenda. Except in the case of an | 0002| emergency, the agenda shall be available to the public at least | 0003| twenty-four hours prior to the meeting. Except for emergency | 0004| matters, a public body shall take action only on items appearing | 0005| on the agenda. For purposes of this subsection, an "emergency" | 0006| refers to unforeseen circumstances that, if not addressed | 0007| immediately by the public body, will likely result in injury or | 0008| damage to persons or property or substantial financial loss to | 0009| the public body. | 0010| G. The board, commission or other policymaking body | 0011| shall keep written minutes of all its meetings. The minutes | 0012| shall include at a minimum the date, time and place of the | 0013| meeting, the names of members in attendance and those absent, | 0014| the substance of the proposals considered and a record of any | 0015| decisions and votes taken that show how each member voted. All | 0016| minutes are open to public inspection. Draft minutes shall be | 0017| prepared within ten working days after the meeting and shall be | 0018| approved, amended or disapproved at the next meeting where a | 0019| quorum is present. Minutes shall not become official until | 0020| approved by the policymaking body. | 0021| H. The provisions of Subsections A, B and G of this | 0022| section do not apply to: | 0023| (1) meetings pertaining to issuance, | 0024| suspension, renewal or revocation of a license, except that a | 0025| hearing at which evidence is offered or rebutted shall be open. | 0001| All final actions on the issuance, suspension, renewal or | 0002| revocation of a license shall be taken at an open meeting; | 0003| (2) limited personnel matters; provided that | 0004| for purposes of the Open Meetings Act, "limited personnel | 0005| matters" means the discussion of hiring, promotion, demotion, | 0006| dismissal, assignment or resignation of or the investigation or | 0007| consideration of complaints or charges against any individual | 0008| public employee; provided further that this subsection is not to | 0009| be construed as to exempt final actions on personnel from being | 0010| taken at open public meetings, nor does it preclude an aggrieved | 0011| public employee from demanding a public hearing. Judicial | 0012| candidates interviewed by any commission shall have the right to | 0013| demand an open interview; | 0014| (3) deliberations by a public body in | 0015| connection with an administrative adjudicatory proceeding. For | 0016| purposes of this paragraph, an "administrative adjudicatory | 0017| proceeding" means a proceeding brought by or against a person | 0018| before a public body in which individual legal rights, duties or | 0019| privileges are required by law to be determined by the public | 0020| body after an opportunity for a trial-type hearing. Except as | 0021| otherwise provided in this section, the actual administrative | 0022| adjudicatory proceeding at which evidence is offered or rebutted | 0023| and any final action taken as a result of the proceeding shall | 0024| occur in an open meeting; | 0025| (4) the discussion of personally identifiable | 0001| information about any individual student, unless the student, | 0002| his parent or guardian requests otherwise; | 0003| (5) meetings for the discussion of bargaining | 0004| strategy preliminary to collective bargaining negotiations | 0005| between the policymaking body and a bargaining unit representing | 0006| the employees of that policymaking body and collective | 0007| bargaining sessions at which the policymaking body and the | 0008| representatives of the collective bargaining unit are present; | 0009| (6) that portion of meetings at which a | 0010| decision concerning purchases in an amount exceeding two | 0011| thousand five hundred dollars ($2,500) that can be made only | 0012| from one source and that portion of meetings at which the | 0013| contents of competitive sealed proposals solicited pursuant to | 0014| the Procurement Code are discussed during the contract | 0015| negotiation process. The actual approval of purchase of the | 0016| item or final action regarding the selection of a contractor | 0017| shall be made in an open meeting; | 0018| (7) meetings subject to the attorney-client | 0019| privilege pertaining to threatened or pending litigation in | 0020| which the public body is or may become a participant; | 0021| (8) meetings for the discussion of the | 0022| purchase, acquisition or disposal of real property or water | 0023| rights by the public body; ~~[and]~~ | 0024| (9) those portions of meetings of committees or | 0025| boards of public hospitals that receive less than fifty percent | 0001| of their operating budget from direct public funds and | 0002| appropriations where strategic and long-range business plans are | 0003| discussed; and | 0004| (10) that portion of a meeting of the gaming | 0005| control board dealing with information made confidential | 0006| pursuant to the provisions of the Gaming Control Act. | 0007| I. If any meeting is closed pursuant to the | 0008| exclusions contained in Subsection H of this section, the | 0009| closure: | 0010| (1) if made in an open meeting, shall be | 0011| approved by a majority vote of a quorum of the policymaking | 0012| body; the authority for the closure and the subject to be | 0013| discussed shall be stated with reasonable specificity in the | 0014| motion calling for the vote on a closed meeting; the vote shall | 0015| be taken in an open meeting; and the vote of each individual | 0016| member shall be recorded in the minutes. Only those subjects | 0017| announced or voted upon prior to closure by the policymaking | 0018| body may be discussed in a closed meeting; and | 0019| (2) if called for when the policymaking body is | 0020| not in an open meeting, shall not be held until public notice, | 0021| appropriate under the circumstances, stating the specific | 0022| provision of the law authorizing the closed meeting and stating | 0023| with reasonable specificity the subject to be discussed is given | 0024| to the members and to the general public. | 0025| J. Following completion of any closed meeting, the | 0001| minutes of the open meeting that was closed or the minutes of | 0002| the next open meeting if the closed meeting was separately | 0003| scheduled shall state that the matters discussed in the closed | 0004| meeting were limited only to those specified in the motion for | 0005| closure or in the notice of the separate closed meeting. This | 0006| statement shall be approved by the public body under Subsection | 0007| G of this section as part of the minutes." | 0008| Section 66. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0009| Chapter 303, Section 19-1, as amended) is amended to read: | 0010| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0011| Chapter 30, Article 19 NMSA 1978: | 0012| A. "antique gambling device" means a gambling device | 0013| twenty-five years of age or older and substantially in original | 0014| condition that is not used for gambling or commercial gambling | 0015| or located in a gambling place; | 0016| B. "bet" means a bargain in which the parties agree | 0017| that, dependent upon chance, even though accompanied by some | 0018| skill, one stands to win or lose anything of value specified in | 0019| the agreement. A bet does not include: | 0020| (1) bona fide business transactions that are | 0021| valid under the law of contracts, including ~~[without~~ | 0022| ~~limitation]~~: | 0023| (a) contracts for the purchase or sale, at | 0024| a future date, of securities or other commodities; and | 0025| (b) agreements to compensate for loss | 0001| caused by the happening of the chance, including ~~[without~~ | 0002| ~~limitation]~~ contracts for indemnity or guaranty and life or | 0003| health and accident insurance; | 0004| (2) offers of purses, prizes or premiums to the | 0005| actual contestants in any bona fide contest for the | 0006| determination of skill, speed, strength or endurance or to the | 0007| bona fide owners of animals or vehicles entered in such contest; | 0008| (3) a lottery as defined in this section; or | 0009| (4) betting otherwise permitted by law; | 0010| ~~[C. "lottery" means an enterprise other than the~~ | 0011| ~~New Mexico state lottery established and operated pursuant to~~ | 0012| ~~the New Mexico Lottery Act wherein, for a consideration, the~~ | 0013| ~~participants are given an opportunity to win a prize, the award~~ | 0014| ~~of which is determined by chance, even though accompanied by~~ | 0015| ~~some skill. As used in this subsection, "consideration" means~~ | 0016| ~~anything of pecuniary value required to be paid to the promoter~~ | 0017| ~~in order to participate in such enterprise;~~ | 0018| ~~D.]~~ C. "gambling device" means a contrivance | 0019| other than an antique gambling device that is not licensed for | 0020| use pursuant to the Gaming Control Act and that, for a | 0021| consideration, affords the player an opportunity to obtain | 0022| anything of value, the award of which is determined by chance, | 0023| even though accompanied by some skill, ~~[and]~~ whether or not | 0024| the prize is automatically paid by the device; ~~[and]~~ | 0025| ~~[E.]~~ D. "gambling place" means ~~[any]~~ a | 0001| building or tent, ~~[any]~~ a vehicle, whether self-propelled or | 0002| not, or ~~[any]~~ a room within any of them that is not within | 0003| the premises of a person licensed as a lottery retailer or that | 0004| is not licensed pursuant to the Gaming Control Act, one of | 0005| whose principal uses is: | 0006| (1) making and settling of bets; | 0007| (2) receiving, holding, recording or forwarding | 0008| bets or offers to bet; | 0009| (3) conducting lotteries; or | 0010| (4) playing gambling devices; and | 0011| E. "lottery" means an enterprise wherein, for a | 0012| consideration, the participants are given an opportunity to win | 0013| a prize, the award of which is determined by chance, even though | 0014| accompanied by some skill. "Lottery" does not include the New | 0015| Mexico state lottery established and operated pursuant to the | 0016| New Mexico Lottery Act or gaming that is licensed and operated | 0017| pursuant to the Gaming Control Act. As used in this subsection, | 0018| "consideration" means anything of pecuniary value required to be | 0019| paid to the promoter in order to participate in a gambling or | 0020| gaming enterprise." | 0021| Section 67. A new section of Chapter 40, Article 3 NMSA | 0022| 1978 is enacted to read: | 0023| "[NEW MATERIAL] GAMBLING DEBTS ARE SEPARATE DEBTS OF | 0024| SPOUSE INCURRING DEBT.--A gambling debt incurred by a married | 0025| person as a result of legal gambling is a separate debt of the | 0001| spouse incurring the debt." | 0002| Section 68. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0003| Chapter 39, Section 96) is amended to read: | 0004| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0005| A. It is a violation of the Liquor Control Act for a | 0006| licensee to knowingly allow commercial gambling on the licensed | 0007| premises. | 0008| B. In addition to any criminal penalties, any person | 0009| who violates Subsection A of this section may have his license | 0010| suspended or revoked or a fine imposed, or both, pursuant to the | 0011| Liquor Control Act. | 0012| C. ~~[For purposes of]~~ As used in this section: | 0013| (1) "commercial gambling" means: | 0014| ~~[(1)]~~ (a) participating in the earnings | 0015| of or operating a gambling place; | 0016| ~~[(2)]~~ (b) receiving, recording or | 0017| forwarding bets or offers to bet; | 0018| ~~[(3)]~~ (c) possessing facilities with | 0019| the intent to receive, record or forward bets or offers to bet; | 0020| ~~[(4)]~~ (d) for gain, becoming a | 0021| custodian of anything of value bet or offered to be bet; | 0022| ~~[(5)]~~ (e) conducting a lottery where | 0023| both the consideration and the prize are money, or whoever with | 0024| intent to conduct a lottery possesses facilities to do so; or | 0025| ~~[(6)]~~ (f) setting up for use for the | 0001| purpose of gambling, or collecting the proceeds of, any gambling | 0002| device or game; and | 0003| (2) "commercial gambling" does not mean: | 0004| (a) activities authorized pursuant to the | 0005| New Mexico Lottery Act; | 0006| (b) the conduct of activities pursuant to | 0007| Subsection D of Section 30-19-6 NMSA 1978; and | 0008| (c) gaming authorized pursuant to the | 0009| Gaming Control Act on the premises of a gaming operator licensee | 0010| licensed pursuant to that act." | 0011| Section 69. SEVERABILITY.--If any part or application of | 0012| the Gaming Control Act is held invalid, the remainder or its | 0013| application to other situations or persons shall not be | 0014| affected. | 0015| Section 70. DELAYED EFFECTIVE DATE.--The provisions of | 0016| the Gaming Control Act shall be effective on the date that a | 0017| tribal gaming compact agreed upon and executed by an Indian | 0018| nation, tribe or pueblo and the state is approved pursuant to | 0019| the provisions of the Indian Gaming Regulatory Act, 25 USCA | 0020| Section 2701, et seq. | 0021| Section 71. EMERGENCY.--It is necessary for the public | 0022| peace, health and safety that this act take effect immediately. | 0023| | 0024| |