0001| HOUSE BILL 741 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| DANIEL P. SILVA | 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 any | 0020| 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 Gaming | 0018| activity at each Gaming Facility, including but | 0019| not limited to transactions relating to each | 0020| gaming table bank, game drop box and gaming room | 0021| 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 | 0017| all hours of Class III Gaming activity, and shall have | 0018| immediate and unrestricted access to any and all areas of the | 0019| Gaming Facility for the purpose of ensuring compliance with the | 0020| provisions of this Compact and the Ordinance. The agents shall | 0021| report immediately to the Tribal Gaming Agency any suspected | 0022| violation of this Compact, the Ordinance, or regulations of the | 0023| Tribal Gaming Agency by the gaming enterprise, Management | 0024| Contractor, or any person, whether or not associated with Class | 0025| III Gaming. | 0001| E. State Gaming Representative. | 0002| 1. Upon written request by the State to the Tribe, | 0003| the Tribe will provide information on primary | 0004| management officials, key employees and | 0005| suppliers, sufficient to allow the State to | 0006| conduct its own background investigations, as it | 0007| may deem necessary, so that it may make an | 0008| independent determination as to the suitability | 0009| of such individuals, consistent with the | 0010| standards set forth in Section 5, hereinafter. | 0011| The Tribe shall consider any information or | 0012| recommendations provided to it by the State as to | 0013| any such person or entity, but the Tribe shall | 0014| have the final say with respect to the hiring or | 0015| licensing of any such person or entity. | 0016| 2. Notwithstanding that the Tribe has the primary | 0017| responsibility to administer and enforce the | 0018| regulatory requirements, the State Gaming | 0019| Representative authorized in writing by the | 0020| Governor of the State or by legislation duly | 0021| enacted by the State Legislature shall have the | 0022| right to inspect a Gaming Facility, Class III | 0023| Gaming activity, and all records relating to | 0024| Class III Gaming (including those set forth in | 0025| Section 5, hereinafter) of the Tribe, subject to | 0001| the following conditions: | 0002| (a) with respect to public areas of a Gaming | 0003| Facility, at any time without prior notice | 0004| during normal business hours; | 0005| (b) with respect to private areas of a Gaming | 0006| Facility not accessible to the public, at any | 0007| time during normal business hours, | 0008| immediately after notifying the gaming | 0009| enterprise management of his or her presence | 0010| on the premises and presenting proper | 0011| identification, and requesting access to such | 0012| non-public areas of the Gaming Facility; | 0013| (c) with respect to inspection and copying of all | 0014| management records relating to Class III | 0015| Gaming, with forty-eight (48) hours prior | 0016| written notice, not including weekends. The | 0017| reasonable costs of copying will be borne by | 0018| the State; and | 0019| (d) whenever the State Gaming Representative, or | 0020| his designee, enters the premises of the | 0021| Gaming Facility for any such inspection, such | 0022| Representative, or designee, shall identify | 0023| himself to security or supervisory personnel | 0024| of the Gaming Facility. | 0025| 3. The financial information, proprietary ideas, | 0001| plans, methods, data, development inventions or | 0002| other proprietary information regarding the gaming | 0003| enterprise of the Tribe, Class III Gaming | 0004| conducted by the Tribe, or the operation thereof, | 0005| which is provided to the State by the Tribe shall | 0006| not be deemed public records as a matter of state | 0007| law, and shall not be disclosed to any member of | 0008| the public, without the prior written approval of | 0009| a duly authorized representative of the Tribe. | 0010| These prohibitions shall not be construed to | 0011| prohibit: | 0012| (a) the furnishing of any information to a law | 0013| enforcement or regulatory agency of the | 0014| Federal Government; | 0015| (b) the State from making known the names of | 0016| persons, firms, or corporations conducting | 0017| Class III Gaming pursuant to the terms of | 0018| this Compact, locations at which such | 0019| activities are conducted, or the dates on | 0020| which such activities are conducted; | 0021| (c) publishing the terms of this Compact; | 0022| (d) disclosing information as necessary to audit, | 0023| investigate, prosecute or arbitrate | 0024| violations of this Compact or other | 0025| applicable laws or to defend suits against | 0001| the State; and | 0002| (e) complying with subpoenas or court orders | 0003| issued by courts of competent jurisdiction. | 0004| 4. To the fullest extent allowed by State law, the | 0005| Tribe shall have the right to inspect State | 0006| records concerning all Class III Gaming conducted | 0007| by the Tribe; the Tribe shall have the right to | 0008| copy such State records, with the Tribe bearing | 0009| the reasonable cost of copying. | 0010| 5. For every year or part thereof in which the Tribe | 0011| is actually engaged in Class III Gaming hereunder, | 0012| the Tribe shall reimburse the State for the actual | 0013| costs the State incurs in carrying out any | 0014| functions authorized by the terms of this Compact, | 0015| in an amount not to exceed twenty-five thousand | 0016| dollars ($25,000) per year. All calculations of | 0017| amounts due shall be based upon a fiscal year | 0018| beginning October 1, and ending September 30, | 0019| unless the parties select a different fiscal year. | 0020| Payments due the State shall be made no later than | 0021| sixty (60) days after the beginning of each fiscal | 0022| year. Payments due the State during any partial | 0023| fiscal year this Compact is in effect shall be | 0024| adjusted to reflect only that portion of the | 0025| fiscal year. Within sixty (60) days after each | 0001| fiscal year in which this Compact is in effect, | 0002| the State shall submit to the Tribe an accounting | 0003| of actual costs incurred in carrying out any | 0004| functions authorized by the terms of this Compact. | 0005| Any amount of said twenty-five thousand dollars | 0006| ($25,000) not expended by the State on said actual | 0007| costs shall be returned to the Tribe by the State | 0008| within sixty (60) days after the fiscal year or | 0009| treated as a prepayment of the Tribe's obligation | 0010| during the subsequent fiscal year. | 0011| 6. In the event the State believes that the Tribe is | 0012| not administering and enforcing the regulatory | 0013| requirements set forth herein, it may invoke the | 0014| procedures set forth in Section 7 of this Compact. | 0015| F. The Tribe shall comply with all applicable provisions | 0016| of the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 | 0017| U.S.C. 5311-5314, and all reporting requirements of the | 0018| Internal Revenue Service. | 0019| SECTION 5. Licensing Requirements. | 0020| A. License Required. The Gaming Facility operator, (but | 0021| not including the Tribe) including its principals, primary | 0022| management officials, and key employees, the Management | 0023| Contractor and its principals, primary management officials, | 0024| and key employees (if the Tribe hires a Management Contractor); | 0025| any person, corporation, or other entity that has supplied or | 0001| proposes to supply any gaming device to the Tribe or the | 0002| Management Contractor; and any person, corporation or other | 0003| entity providing gaming services within or without a Gaming | 0004| Facility, shall apply for and receive a license from the Tribal | 0005| Gaming Agency before participating in any way in the operation | 0006| or conduct of any Class III Gaming on Indian Lands. | 0007| B. License Application. Each applicant for a license | 0008| shall file with the Tribal Gaming Agency a written application | 0009| in the form prescribed by the Tribal Gaming Agency, along with | 0010| the applicant's fingerprint card, current photograph and the | 0011| fee required by the Tribal Gaming Agency. | 0012| 1. The following Notice ("Privacy Act Notice") shall | 0013| be placed on the application form for a principal, | 0014| key employee or a primary management official | 0015| before that form is filled out by an applicant: | 0016| "In compliance with the | 0017| Privacy Act of 1974, the | 0018| following information is | 0019| provided: Solicitation of | 0020| the information on this | 0021| form is authorized by 25 | 0022| U.S.C. 2701-2721. The | 0023| purpose of the requested | 0024| information is to determine | 0025| the eligibility of | 0001| individuals to be employed | 0002| in a gaming enterprise. | 0003| The information will be | 0004| used by members and staff | 0005| of the Tribal Gaming Agency | 0006| and the National Indian | 0007| Gaming Commission who have | 0008| need for the information in | 0009| the performance of their | 0010| official duties. The | 0011| information may be | 0012| disclosed to appropriate | 0013| federal, tribal, state, | 0014| local or foreign law | 0015| enforcement and regulatory | 0016| agencies when relevant to | 0017| civil, criminal or | 0018| regulatory investigations | 0019| or prosecutions or when, | 0020| pursuant to a requirement | 0021| by a Tribe, or the National | 0022| Indian Gaming Commission, | 0023| the information is relevant | 0024| to the hiring or firing of | 0025| an employee, the issuance | 0001| or revocation of a gaming | 0002| license or investigations | 0003| of activities while | 0004| associated with a Tribe or | 0005| a gaming enterprise. | 0006| Failure to consent to the | 0007| disclosures indicated in | 0008| this Notice will result in | 0009| a Tribe being unable to | 0010| hire you in a primary | 0011| management official or key | 0012| employee position with a | 0013| tribal gaming enterprise. | 0014| The disclosure of your Social Security | 0015| Number (SSN) is voluntary. However, | 0016| failure to supply an SSN may result in | 0017| errors in processing your application." | 0018| 2. Existing principals, key employees and primary | 0019| management officials shall be notified, in | 0020| writing, that they shall either: | 0021| (a) complete a new application form that contains | 0022| a Privacy Act Notice; or | 0023| (b) sign a statement that contains the Privacy | 0024| Act Notice and consent to the routine uses | 0025| described in that Notice. | 0001| 3. The following Notice ("False Statement Notice") | 0002| shall be placed on the application form for a | 0003| principal, key employee or a primary management | 0004| official before that form is filled out by an | 0005| applicant: | 0006| "A false statement on any part of your | 0007| application may be grounds for not hiring you | 0008| or for firing you after you begin work. | 0009| Also, you may be punished by fine or | 0010| imprisonment. See 18 U.S.C. 1001.". | 0011| 4. The Tribal Gaming Agency shall notify, in writing, | 0012| existing principals, key employees and primary | 0013| management officials that they shall either: | 0014| (a) complete a new application form that contains | 0015| a False Statement Notice; or | 0016| (b) sign a statement that contains the False | 0017| Statement Notice. | 0018| 5. The Tribal Gaming Agency shall request from each | 0019| applicant, and from each principal, primary | 0020| management official and key employee of each | 0021| applicant, all of the following information: | 0022| (a) full name, other names used (oral or | 0023| written), Social Security Number(s), birth | 0024| date, place of birth, citizenship, gender and | 0025| all languages spoken or written; | 0001| (b) currently, and for the previous ten (10) | 0002| years, business and employment positions | 0003| held, ownership interests in those | 0004| businesses, business and residence addresses | 0005| and driver's license numbers; provided, that | 0006| any applicant who is a principal, primary | 0007| management official, key employee, Management | 0008| Contractor, manufacturer or supplier of | 0009| gaming devices, and/or a person providing | 0010| gaming services, must provide such | 0011| information currently, and from the age of | 0012| eighteen (18); | 0013| (c) the names and current addresses of at least | 0014| three (3) personal references, including one | 0015| (1) personal reference who was acquainted | 0016| with the applicant during each period of | 0017| residence listed in Paragraph B.5.(b) of this | 0018| section; | 0019| (d) current business and residence telephone | 0020| numbers; | 0021| (e) a description of any existing and previous | 0022| business relationships with a Tribe, | 0023| including ownership interests in those | 0024| businesses, and a description of any | 0025| potential or actual conflict of interests | 0001| between such businesses and a Tribe; | 0002| (f) a description of any existing and previous | 0003| business relationships in the gaming | 0004| industry, including, but not limited to, | 0005| ownership interests in those businesses; | 0006| (g) the name and address of any licensing or | 0007| regulatory agency with which the applicant | 0008| has filed an application for a license or | 0009| permit related to gaming, whether or not such | 0010| license or permit was granted; | 0011| (h) for each felony for which there is an ongoing | 0012| prosecution or a conviction, the charge, the | 0013| date of the charge, the name and address of | 0014| the court involved and the disposition, if | 0015| any; | 0016| (i) for each misdemeanor for which there is an | 0017| ongoing prosecution or conviction (excluding | 0018| minor traffic violations), the charge, the | 0019| date of the charge, the name and address of | 0020| the court involved, and the disposition, if | 0021| any; | 0022| (j) for each criminal charge (excluding minor | 0023| traffic charges), whether or not there is a | 0024| conviction, if such criminal charge is not | 0025| otherwise listed pursuant to Paragraph | 0001| B.5.(h) or B.5.(i) of this Section, the | 0002| criminal charge, the date of the charge, the | 0003| name and address of the court involved and | 0004| the disposition, if any; | 0005| (k) the name and address of any licensing or | 0006| regulatory agency with which the person has | 0007| filed an application for an occupational | 0008| license or permit, as an applicant, | 0009| principal, primary management official or key | 0010| employee, and whether or not such license or | 0011| permit was granted; | 0012| (l) a current photograph; | 0013| (m) fingerprints, which shall be taken by | 0014| officers of the tribal police department. | 0015| Pursuant to a Memorandum of Understanding | 0016| between the Tribe and the National Indian | 0017| Gaming Commission ("Commission"), tribal | 0018| police officers shall forward the fingerprint | 0019| cards directly to the Commission; | 0020| (n) the fee required by the Tribal Gaming Agency; | 0021| and | 0022| (o) any other information the Tribal Gaming | 0023| Agency deems relevant. | 0024| C. Background Investigations. | 0025| 1. Upon receipt of a completed application and | 0001| required fee for licensing, the Tribal Gaming | 0002| Agency shall conduct or cause to be conducted a | 0003| background investigation to ensure that the | 0004| applicant is qualified for licensing. | 0005| 2. Background checks of applicants will be performed | 0006| pursuant to the following procedures: | 0007| (a) The Tribal Gaming Agency will provide | 0008| applications to potential applicants upon | 0009| request and shall collect and maintain the | 0010| applications. | 0011| (b) Pursuant to a Memorandum of Understanding | 0012| between the Tribe and the Commission, tribal | 0013| police officers will collect fingerprints | 0014| from all applicants and forward the | 0015| fingerprint cards directly to the Commission. | 0016| The Commission will obtain a criminal history | 0017| record from the Federal Bureau of | 0018| Investigation on each applicant and forward | 0019| such information to the Tribal Gaming Agency. | 0020| (c) The Tribal Gaming Agency shall investigate | 0021| the information provided in the applications. | 0022| This investigation shall include: | 0023| (1) contacting persons or entities | 0024| identified in the application and | 0025| verifying by written or oral | 0001| communication that the information | 0002| contained in the application is | 0003| accurate; | 0004| (2) interviewing a sufficient number of | 0005| knowledgeable people, such as former | 0006| employers, partners, business | 0007| associates, and others referred to in | 0008| the application, to provide a basis for | 0009| the Tribal Gaming Agency to make a | 0010| determination concerning whether the | 0011| applicant meets applicable eligibility | 0012| requirements; | 0013| (3) reviewing relevant financial records of | 0014| the applicant for the three (3) years | 0015| preceding the application; and | 0016| (4) contacting any state, federal or other | 0017| government agency that is referred to in | 0018| the application. | 0019| (d) The Tribal Gaming Agency shall document any | 0020| information it obtains that calls into | 0021| question whether the applicant would meet the | 0022| eligibility requirements under the Ordinance. | 0023| The Tribal Gaming Agency shall then document | 0024| in detail the disposition of these problem | 0025| areas, indicating the follow-up | 0001| investigations performed on the problem areas | 0002| and the result of such investigations. | 0003| (e) The Tribal Gaming Agency will review the | 0004| results of the investigation. This review | 0005| will include a determination as to the scope | 0006| of the investigation and whether sufficient | 0007| information was obtained and verified. If | 0008| such information is found not sufficient, the | 0009| Tribal Gaming Agency will perform additional | 0010| investigations. | 0011| (f) Once the investigation is complete, the | 0012| Tribal Gaming Agency will decide whether the | 0013| applicant meets the eligibility criteria | 0014| under the Ordinance. | 0015| 3. In conducting a background investigation, the | 0016| Tribal Gaming Agency and its agents shall keep | 0017| confidential the identity of each person | 0018| interviewed in the course of the investigation. | 0019| 4. Within twenty (20) days of the receipt of a | 0020| completed application for licensing, and upon | 0021| request of an applicant, the Tribal Gaming Agency | 0022| may issue a temporary license to the applicant, | 0023| unless the background investigation undertaken | 0024| discloses that the applicant has a criminal | 0025| history, or unless other grounds sufficient to | 0001| disqualify the applicant are apparent on the face | 0002| of the application. The temporary license shall | 0003| become void and be of no effect upon either: | 0004| (a) the issuance of the license; | 0005| (b) the issuance of a notice of denial; or | 0006| (c) ninety (90) days after the temporary license | 0007| is issued, whichever occurs first. | 0008| 5. The Tribal Gaming Agency shall review a person's | 0009| prior activities, criminal record, if any, and | 0010| reputation, habits and associations to make a | 0011| finding concerning the eligibility or suitability | 0012| of an applicant, or a principal, key employee or | 0013| primary management official of an applicant, for | 0014| employment or involvement in a gaming enterprise. | 0015| After such consultation, the Tribal Gaming Agency | 0016| shall either issue a license or deny the | 0017| application. If the Tribal Gaming Agency | 0018| determines that employment or involvement of the | 0019| applicant poses a threat to the public interest or | 0020| to the effective regulation of Class III Gaming or | 0021| creates or enhances dangers of unsuitable, unfair | 0022| or illegal practices, methods or activities in the | 0023| conduct of Class III Gaming, the Tribal Gaming | 0024| Agency shall deny the application. | 0025| 6. The Tribal Gaming Agency shall retain the right to | 0001| conduct additional background investigations of | 0002| any person required to be licensed at any time | 0003| while the license is valid. | 0004| D. Procedure for Forwarding Applications and Reports. | 0005| Procedures for forwarding applications and investigative | 0006| reports to the Commission and State Gaming Representative. | 0007| 1. When a key employee or primary management official | 0008| begins work at a gaming enterprise authorized by | 0009| this Compact, the Tribal Gaming Agency shall | 0010| forward to the Commission and the State Gaming | 0011| Representative a completed application for | 0012| employment. | 0013| 2. The Tribal Gaming Agency shall forward the report | 0014| referred to in Paragraph D.4. of this section to | 0015| the Commission and the State Gaming Representative | 0016| within sixty (60) days after an employee begins | 0017| work, or within sixty (60) days of the approval of | 0018| this Compact by the Secretary of the Interior. | 0019| 3. A key employee or primary management official who | 0020| does not have a license shall not be employed | 0021| after ninety (90) days. | 0022| 4. The Tribal Gaming Agency shall prepare and forward | 0023| to the Commission and the State Gaming | 0024| Representative a report on each background | 0025| investigation ("Investigative Report"). An | 0001| Investigative Report shall include all of the | 0002| following: | 0003| (a) steps taken in conducting the background | 0004| investigation; | 0005| (b) results obtained; | 0006| (c) conclusions reached; and | 0007| (d) the basis for those conclusions. | 0008| 5. The Tribal Gaming Agency shall submit with the | 0009| Investigative Report a copy of the eligibility | 0010| determination made under Paragraph C.5. of this | 0011| section. | 0012| 6. If a license is not issued to an applicant, the | 0013| Tribal Gaming Agency shall notify the Commission | 0014| and the State Gaming Representative. | 0015| 7. With respect to principals, key employees and | 0016| primary management officials, the Tribal Gaming | 0017| Agency shall retain applications for employment | 0018| and Investigative Reports (if any) for no less | 0019| than three (3) years from the date of termination | 0020| of employment. | 0021| E. Granting a Gaming License. | 0022| 1. If within thirty (30) days after it receives an | 0023| Investigative Report, neither the Commission nor | 0024| the State Gaming Representative has notified the | 0025| Tribal Gaming Agency that it has an objection to | 0001| the issuance of a license pursuant to a license | 0002| application filed by a principal, key employee or | 0003| primary management official, the Tribal Gaming | 0004| Agency may issue a license to such applicant. | 0005| 2. The Tribal Gaming Agency shall respond to any | 0006| request for additional information from the | 0007| Commission or the State Gaming Representative | 0008| concerning a principal, key employee or primary | 0009| management official who is the subject of an | 0010| Investigative Report. Such a request shall | 0011| suspend the thirty-day (30-day) period under | 0012| Paragraph E.1. of this section until the | 0013| Commission or the State Gaming Representative | 0014| receives the additional information. | 0015| 3. If, within the thirty-day (30-day) period | 0016| described above, the Commission or the State | 0017| Gaming Representative provides the Tribal Gaming | 0018| Agency with a statement itemizing objections to | 0019| the issuance of a license to a principal, key | 0020| employee or primary management official for whom | 0021| the Tribal Gaming Agency has provided an | 0022| application and Investigative Report, the Tribal | 0023| Gaming Agency shall reconsider the application, | 0024| taking into account the objections itemized by the | 0025| Commission and/or the State Gaming Representative, | 0001| and make a final decision whether to issue a | 0002| license to such applicant. | 0003| F. Management Contract. | 0004| 1. If the Tribe chooses to enter into a Management | 0005| Contract, the Tribal Gaming Agency shall require | 0006| that all principals, primary management officials | 0007| and key employees of the Management Contractor be | 0008| licensed. | 0009| 2. The Tribe may enter into a Management Contract | 0010| only if the Management Contract: | 0011| (a) provides that all Class III Gaming covered by | 0012| the Management Contract will be conducted in | 0013| accordance with the IGRA, the Ordinance and | 0014| this Compact; | 0015| (b) enumerates the responsibilities of each of | 0016| the parties for each identifiable function, | 0017| including: | 0018| (1) maintaining and improving the Gaming | 0019| Facility; | 0020| (2) providing operating capital; | 0021| (3) establishing operating days and hours; | 0022| (4) hiring, firing, training and promoting | 0023| employees; | 0024| (5) maintaining the gaming enterprise's | 0025| books and records; | 0001| (6) preparing the gaming enterprise's | 0002| financial statements and reports; | 0003| (7) paying for the services of the | 0004| independent auditor engaged pursuant to | 0005| 25 C.F.R. 571.12; | 0006| (8) hiring and supervising security | 0007| personnel; | 0008| (9) providing fire protection services; | 0009| (10) setting an advertising budget and | 0010| placing advertising; | 0011| (11) paying bills and expenses; | 0012| (12) establishing and administering | 0013| employment practices; | 0014| (13) obtaining and maintaining insurance | 0015| coverage, including coverage of public | 0016| liability and property loss or damage; | 0017| (14) complying with all applicable provisions | 0018| of the Internal Revenue Code of 1986, as | 0019| amended; | 0020| (15) paying the cost of public safety | 0021| services; and | 0022| (16) if applicable, supplying the Commission | 0023| with all information necessary for the | 0024| Commission to comply with the National | 0025| Environmental Policy Act of 1969. | 0001| (c) provides for the establishment and | 0002| maintenance of satisfactory accounting | 0003| systems and procedures that shall, at a | 0004| 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 | 0012| the 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 | 0022| reports; | 0023| (e) requires the Management Contractor to provide | 0024| immediate access to the Gaming Facility, | 0025| including its books and records, by | 0001| appropriate officials of the Tribe, who shall | 0002| have: | 0003| (1) the right to verify the daily gross | 0004| revenues and income from the gaming | 0005| enterprise; and | 0006| (2) access to any other gaming-related | 0007| information the Tribe deems appropriate; | 0008| (f) provides for a minimum guaranteed monthly | 0009| payment to the Tribe in a sum certain that | 0010| has preference over the retirement of | 0011| development and construction costs; | 0012| (g) provides an agreed upon maximum dollar amount | 0013| for the recoupment of development and | 0014| construction costs; | 0015| (h) provides for a term not to exceed the period | 0016| allowed by the IGRA; | 0017| (i) details the method of compensating and | 0018| reimbursing the Management Contractor. If a | 0019| Management Contract provides for a percentage | 0020| fee, such fee shall be either: | 0021| (1) not more than thirty percent (30%) of | 0022| the net revenues of the gaming | 0023| enterprise if the Chairman of the | 0024| Commission determines that such | 0025| percentage is reasonable considering the | 0001| circumstances; or | 0002| (2) not more than forty percent (40%) of the | 0003| net revenues if the Chairman of the | 0004| Commission is satisfied that the capital | 0005| investment required and income | 0006| projections for the gaming enterprise | 0007| require the additional fee; | 0008| (j) provides the grounds and mechanisms for | 0009| modifying or terminating the Management | 0010| Contract; | 0011| (k) contains a mechanism to resolve disputes | 0012| between: | 0013| (1) the Management Contractor and customers, | 0014| consistent with the procedures in the | 0015| Ordinance; | 0016| (2) the Management Contractor and the Tribe; | 0017| and | 0018| (3) the Management Contractor and the gaming | 0019| enterprise employees; | 0020| (l) indicates whether and to what extent contract | 0021| assignments and subcontracting are | 0022| permissible; | 0023| (m) indicates whether and to what extent changes | 0024| in the ownership interest in the Management | 0025| Contract require advance approval by the | 0001| Tribe; and | 0002| (n) states that the Management Contract shall not | 0003| be effective unless and until it is approved | 0004| by the Chairman of the Commission, date of | 0005| signature of the parties notwithstanding. | 0006| 3. The Tribe shall not enter into any Management | 0007| Contract if the Tribal Gaming Agency determines | 0008| that the Management Contractor or any principal, | 0009| primary management official or key employee of the | 0010| Management Contractor is not licensed or is | 0011| ineligible to be licensed. | 0012| G. Confidentiality of Records. Any and all background | 0013| investigative reports on employees or contractors, supporting | 0014| documents acquired or generated in connection therewith, and | 0015| any other investigative reports or documents acquired or | 0016| generated in the course of investigations performed by the | 0017| Tribe or the Tribal Gaming Agency, that are provided to the | 0018| State Gaming Representative or any other agency or official of | 0019| the State by the Tribal Gaming Agency or the Tribe pursuant to | 0020| the provisions of this Compact, shall not be deemed public | 0021| records of the State and shall not be disclosed to any member | 0022| of the public without the prior express written authorization | 0023| of an authorized representative of the Tribe; provided, that | 0024| nothing herein shall preclude any State agency or official from | 0025| providing information to a federal agency or official having | 0001| responsibility relative to Indian Gaming or from compliance | 0002| with any valid order of a court having jurisdiction. | 0003| SECTION 6. Providers of Class III Gaming Equipment or Devices | 0004| or Supplies. | 0005| A. Within thirty (30) days after the effective date of | 0006| this Compact, if it has not already done so, the Tribal Gaming | 0007| Agency will adopt standards for any and all Class III Gaming | 0008| equipment, devices or supplies to be purchased, leased or | 0009| otherwise acquired by the Tribe after the effective date of | 0010| this Compact for use in any Gaming Facility, which standards | 0011| shall be at least as strict as the comparable standards | 0012| applicable to Class III Gaming equipment, devices or supplies | 0013| within the State of Nevada. Any and all Class III Gaming | 0014| equipment, devices or supplies acquired by the Tribe after the | 0015| date of this Compact shall meet or exceed the standards thereby | 0016| adopted, and any and all Class III Gaming equipment, devices or | 0017| supplies used by the Tribe in its Gaming Facilities as of the | 0018| effective date of this Compact shall be upgraded or replaced, | 0019| if necessary, so as to comply with such standards, by no later | 0020| than one (1) year after the effective date of this Compact. | 0021| B. Prior to entering into any future lease or purchase | 0022| agreement for Class III Gaming equipment, devices or supplies, | 0023| the Tribe shall obtain sufficient information and | 0024| identification from the proposed seller or lessor and all | 0025| persons holding any direct or indirect financial interest in | 0001| the lessor or the lease/purchase agreement to permit the Tribe | 0002| to license those persons in accordance with Section 5, hereof. | 0003| C. The seller, lessor, manufacturer or distributor shall | 0004| provide, assemble and install all Class III Gaming equipment, | 0005| devices or supplies in a manner approved and licensed by the | 0006| Tribe. | 0007| SECTION 7. Dispute Resolution. | 0008| A. In the event either party believes that the other | 0009| party has failed to comply with or has otherwise breached any | 0010| provision of this Compact, such party may invoke the following | 0011| procedure: | 0012| 1. The party asserting noncompliance shall serve | 0013| written notice on the other party. The notice | 0014| shall identify the specific Compact provision | 0015| believed to have been violated and shall specify | 0016| the factual and legal basis for the alleged | 0017| noncompliance. The notice shall specifically | 0018| identify the date, time and nature of the alleged | 0019| noncompliance. Representatives of the State and | 0020| Tribe shall thereafter meet within thirty (30) | 0021| days in an effort to resolve the dispute. | 0022| 2. In the event an allegation by the complaining | 0023| party is not resolved to the satisfaction of such | 0024| party within ninety (90) days after service of the | 0025| notice set forth in Paragraph (A)(1) of this | 0001| section, the complaining party may serve upon the | 0002| other party a notice to cease conduct of the | 0003| particular game(s) or activities alleged by the | 0004| complaining party to be in noncompliance. Upon | 0005| receipt of such notice, the responding party may | 0006| elect to stop the game(s) or activities specified | 0007| in the notice or invoke arbitration and continue | 0008| the game(s) or activities pending the results of | 0009| arbitration. The responding party shall act upon | 0010| one of the foregoing options within thirty (30) | 0011| days of receipt of notice from the complaining | 0012| party. | 0013| 3. Arbitration under this authority shall be | 0014| conducted under the Commercial Arbitration Rules | 0015| of the American Arbitration Association, except | 0016| that the arbitrators shall be attorneys who are | 0017| licensed members in good standing of the State Bar | 0018| of New Mexico or of the bar of another state. The | 0019| State will select one arbitrator, the Tribe a | 0020| second arbitrator, and the two so chosen shall | 0021| select a third arbitrator. If the third | 0022| arbitrator is not chosen in this manner within ten | 0023| (10) days after the second arbitrator is selected, | 0024| the third arbitrator will be chosen in accordance | 0025| with the rules of the American Arbitration | 0001| Association. | 0002| 4. All parties shall bear their own costs of | 0003| arbitration and attorney fees. | 0004| 5. The results of arbitration shall be enforceable by | 0005| an action for injunctive or mandatory injunctive | 0006| relief against the State and the Tribe in any | 0007| court of competent jurisdiction. For purposes of | 0008| any such action, the State and the Tribe | 0009| acknowledge that any action or failure to act on | 0010| the part of any agent or employee of the State or | 0011| the Tribe, contrary to a decision of the | 0012| arbitrators in an arbitration proceeding conducted | 0013| under the provisions of this section, occurring | 0014| after such decision, shall be wholly unauthorized | 0015| and ultra vires acts, not protected by the | 0016| sovereign immunity of the State or the Tribe. | 0017| B. Nothing in Subsection 7(A) shall be construed to | 0018| waive, limit or restrict any remedy that is otherwise available | 0019| to either party to enforce or resolve disputes concerning the | 0020| provisions of this Compact. Nothing in this Compact shall be | 0021| deemed a waiver of the Tribe's sovereign immunity. Nothing in | 0022| this Compact shall be deemed a waiver of the State's sovereign | 0023| immunity. | 0024| SECTION 8. Protection of Patrons. | 0025| A. Liability to Patrons. To ensure the personal safety | 0001| and protection of patrons and other invitees of a Tribe's | 0002| Gaming Facility operated under the provisions of this Compact, | 0003| the Tribe shall at all times maintain in effect a policy of | 0004| public liability insurance, insuring the Tribe, its agents and | 0005| employees against any claims, demands or liability that may | 0006| arise as a result of personal injury to any person (other than | 0007| an employee of the gaming establishment) occurring anywhere on | 0008| the premises of any gaming establishment operated by the Tribe | 0009| under the provisions of this Compact, or as a result of any act | 0010| or omission of any agent or employee of such gaming | 0011| establishment while in the course of his or her employment, | 0012| which policy shall provide personal injury coverage of no less | 0013| than one million dollars ($1,000,000) per injured person and | 0014| ten million dollars ($10,000,000) per occurrence. | 0015| The Tribe agrees that in the event of any claim made | 0016| against it or its gaming enterprise, or any agent or employee | 0017| thereof, arising out of any personal injury as described above, | 0018| neither the Tribe nor its insurer will assert any defense of | 0019| immunity from suit as to such claim for compensatory damages up | 0020| to the amount of one million dollars ($1,000,000) per injured | 0021| person, and ten million dollars ($10,000,000) per occurrence, | 0022| in any action filed in a court of competent jurisdiction to be | 0023| tried to the court; provided, however, that this agreement not | 0024| to assert such defense shall be strictly limited as provided | 0025| herein, and shall not apply to any claim for punitive damages, | 0001| or to any claim for which a jury trial is demanded, or to any | 0002| claim for any loss or damage other than that arising from | 0003| actual bodily injury or death, or to any claim for damages in | 0004| excess of the amount set forth herein. Nothing herein shall be | 0005| construed as stating or implying that the Tribe has waived or | 0006| agreed not to assert its immunity from suit for any other | 0007| purpose or in any other circumstance other than the limited | 0008| purposes and circumstances expressly set forth herein, and | 0009| nothing herein shall be construed as an admission of liability | 0010| as to any claim for damages or as an agreement or indication of | 0011| willingness to pay any amount as damages absent a judicial | 0012| determination of fault, and the Tribe or its insurer, or both, | 0013| shall in every instance have the right to defend any such claim | 0014| fully on the merits. | 0015| The Tribe shall provide to the State Gaming Representative | 0016| annually a certificate of insurance showing that its gaming | 0017| enterprise and its agents and employees engaged therein are | 0018| insured to the extent and in the circumstances required by this | 0019| section, or that it is self-insured to such extent and in such | 0020| circumstances. If the State Gaming Representative so requests | 0021| in writing, the certificate of insurance may be furnished | 0022| directly to the State Gaming Representative from the insurance | 0023| carrier or the insuring agency for the insured Tribe. | 0024| B. Public Health and Safety. The Tribe shall establish | 0025| for its Gaming Facility health, safety and construction | 0001| standards that are at least as stringent as the current | 0002| editions of the National Electrical Code, the Uniform Building | 0003| Code, the Uniform Mechanical Code, the Uniform Fire Code and | 0004| the Uniform Plumbing Code, and any and all gaming facilities or | 0005| additions thereto constructed by the Tribe hereafter shall be | 0006| constructed and all facilities shall be maintained so as to | 0007| comply with such standards. Inspections will be conducted with | 0008| respect to these standards at least annually. If the State | 0009| Gaming Representative requests sufficiently in advance of an | 0010| annual inspection, the State Gaming Representative may be | 0011| present during such inspection. The Tribe agrees to correct | 0012| any deficiencies noted in such inspections within a reasonable | 0013| period of time. The Tribal Gaming Agency will provide copies | 0014| of such inspection reports to the State Gaming Representative, | 0015| if requested to do so in writing. | 0016| SECTION 9. Effective Date. This Compact shall be effective | 0017| immediately upon the occurrence of the last of the following: | 0018| A. execution by the Tribe's Governor after approval of | 0019| the Tribal Council; | 0020| B. execution by the Governor of the State; | 0021| C. approval by the Secretary of the Interior; and | 0022| D. publication in the Federal Register. | 0023| The Governor is authorized to execute compacts with an | 0024| individual Tribe that has also entered into revenue-sharing | 0025| agreements and has passed resolutions described herein, in | 0001| substantially the same form as set forth herein. Upon | 0002| signature by the Governor and the Tribe, the Compact shall be | 0003| transmitted to the Secretary of the Interior for approval. | 0004| SECTION 10. Criminal Jurisdiction. | 0005| The Tribe and the State acknowledge that under the | 0006| provisions of 23 of the IGRA, especially that portion | 0007| codified at 18 U.S.C. 1166(d), jurisdiction to prosecute | 0008| violations of State gambling laws made applicable by that | 0009| section to Indian country is vested exclusively within the | 0010| United States, unless the Tribe and the State agree in a | 0011| compact entered into the IGRA to transfer such jurisdiction to | 0012| the State. The Tribe and the State hereby agree that, in the | 0013| event of any violation of any State gambling law within the | 0014| Indian Lands by any person who is not a member of the Tribe, | 0015| the State shall have and may exercise jurisdiction, concurrent | 0016| with that of the United States, to prosecute such person, under | 0017| its laws and in its courts; provided, however, that this | 0018| concurrent jurisdiction shall (1) not take effect unless and | 0019| until the State, the Tribe and the Office of the United States | 0020| Attorney for the District of New Mexico shall have entered into | 0021| a Memorandum of Understanding with respect to the manner in | 0022| which State, federal and tribal law enforcement agencies shall | 0023| cooperate in the detection of violations, apprehension and | 0024| detention of any suspected violator and the investigation and | 0025| prosecution of any charges brought by the State pursuant to | 0001| this section and (2) continue so long as the Memorandum of | 0002| Understanding remains in effect. | 0003| SECTION 11. Binding Effect and Duration. | 0004| A. This Compact shall be binding upon the State and Tribe | 0005| for a term of fifteen (15) years from the date it becomes | 0006| effective and will automatically renew for an additional five- | 0007| year (5-year) period. | 0008| B. Before the date that is one (1) year prior to the | 0009| expiration of the fifteen-year (15-year) initial term, and/or | 0010| before the date that is one year prior to the expiration of the | 0011| five-year (5-year) renewal period, either party may serve | 0012| written notice on the other of its desire to renegotiate this | 0013| Compact. | 0014| C. In the event that either party gives written notice to | 0015| the other of its desire to renegotiate this Compact pursuant to | 0016| Subsection (B) of this section, the Tribe may, pursuant to the | 0017| procedures of the IGRA, request the State to enter into | 0018| negotiations for a new compact governing the conduct of Class | 0019| III Gaming. If the parties are unable to conclude a successor | 0020| compact, this Compact shall remain in full force and effect in | 0021| accordance with its terms pending exhaustion of the | 0022| administrative and judicial remedies set forth in the IGRA and | 0023| any other applicable federal law. | 0024| D. Notwithstanding the foregoing, at any time while this | 0025| Compact remains in effect, either party may, by written notice | 0001| to the other party, request reopening of negotiations with | 0002| respect to any provision of this Compact, or with respect to | 0003| any issue not addressed in the Compact, specifying such | 0004| provision or issue in such notice. No such request shall be | 0005| unreasonably refused, but neither party shall be required to | 0006| agree to any change in the Compact, and no agreement to | 0007| supplement or amend this Compact in any respect shall have any | 0008| validity until the same shall have been approved in writing by | 0009| the Tribe, the State and the Secretary of the Interior and | 0010| notice of such approval published in the Federal Register. | 0011| E. The Tribe may operate Class III Gaming only while this | 0012| Compact or any renegotiated compact is in effect. | 0013| SECTION 12. Severability. | 0014| In the event that any section or provision of this Compact | 0015| is held invalid by any court of competent jurisdiction, it is | 0016| the intent of the parties that the remaining sections or | 0017| provisions of this Compact, and any amendments thereto, shall | 0018| continue in full force and effect. | 0019| SECTION 13. Notice to Parties. | 0020| Unless otherwise indicated, all notices, payments, | 0021| requests, reports, information or demand that any party hereto | 0022| may desire or may be required to give to the other party | 0023| hereto, shall be in writing and shall be personally delivered | 0024| or sent by first-class mail sent to the other party at the | 0025| address provided in writing by the other party. Every notice, | 0001| payment, request, report, information or demand so given shall | 0002| be deemed effective upon receipt or, if mailed, upon receipt or | 0003| the expiration of the third day following the day of mailing, | 0004| whichever occurs first, except that any notice of change of | 0005| address shall be effective only upon receipt by the party to | 0006| whom said notice is addressed. | 0007| SECTION 14. Entire Agreement. | 0008| This Compact is the entire agreement between the parties | 0009| and supersedes all prior agreements, whether written or oral, | 0010| with respect to the subject matter hereof. Neither this | 0011| Compact nor any provision herein may be changed, waived, | 0012| discharged or terminated orally, but only by an instrument, in | 0013| writing, signed by the Tribe and the State and approved by the | 0014| Secretary of the Interior. | 0015| SECTION 15. Filing of Compact with State Records Center. | 0016| Upon the effective date of this Compact, a copy shall be | 0017| filed by the Governor with the New Mexico Records Center. Any | 0018| subsequent amendment or modification of this Compact shall be | 0019| filed with the New Mexico Records Center. | 0020| SECTION 16. Counterparts. | 0021| This Compact may be executed by the parties in any number | 0022| of separate counterparts with the same effect as if the | 0023| signatures were upon the same instrument. All such | 0024| counterparts shall together constitute one and the same | 0025| 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 | 0004| in this section with any New Mexico Indian nation, tribe or | 0005| pueblo that has also entered into an Indian gaming compact as | 0006| provided by law. Execution of an Indian gaming compact is | 0007| conditioned 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 | 0013| on behalf of the state and the appropriate official of the | 0014| Indian entity: | 0015| "REVENUE-SHARING AGREEMENT | 0016| 1. Summary and consideration. The Tribe shall agree to | 0017| contribute certain of its Class III Gaming revenues, as | 0018| described below. | 0019| 2. Revenue to State. The parties agree that, after the | 0020| effective date hereof, the Tribe shall make semi-annual | 0021| payments to the General Fund of the State ("State General | 0022| Fund"). | 0023| 3. Calculation of Revenue to State. | 0024| A. The parties agree that, as used herein, "net win" | 0025| is defined as the total amount wagered at each Gaming Facility | 0001| on Class III Gaming, which is protected by the limitations in | 0002| Paragraph 5, below, and elsewhere herein, minus the total | 0003| amount paid as prizes (including noncash prizes) and winning | 0004| wagers at said games, and minus all tribal regulatory fees and | 0005| expenses, supported by reasonable, adequate documentation, not | 0006| to exceed Two Hundred Fifty Thousand Dollars ($250,000) per | 0007| year and minus federal and State regulatory fees and expenses, | 0008| and taxes. | 0009| B. The total revenue the Tribe will pay to the State | 0010| in the aggregate pursuant to Paragraph 3, above, shall be | 0011| determined as follows: | 0012| (1) three percent (3%) of the first four million | 0013| dollars ($4,000,000) of net win at each Gaming | 0014| Facility derived annually from Class III Gaming, | 0015| which is protected by the limitations herein; | 0016| (2) five percent (5%) of the next six million dollars | 0017| ($6,000,000) of net win at each Gaming Facility | 0018| derived annually from Class III Gaming, which is | 0019| protected by the limitations herein; and/or | 0020| (3) eight percent (8%) of the net win over ten | 0021| million dollars ($10,000,000) at each gaming | 0022| facility derived annually from Class III Gaming, | 0023| which is protected by the limitations provided | 0024| herein. | 0025| C. For purposes of these payments, all calculations | 0001| of amounts due shall be based upon a calendar year beginning | 0002| January 1 and ending December 31, unless the parties agree on a | 0003| different fiscal year. The semiannual payments due to the | 0004| State pursuant to these terms shall be paid no later than | 0005| twenty-five (25) days after December 31 and June 30 of each | 0006| year (or commensurate dates if the fiscal year agreed upon is | 0007| different from the calendar year). Any payments due and owing | 0008| from the Tribe in the year the Compact is approved, or the | 0009| final year the Compact is in force, shall reflect the net win, | 0010| but only for the portion of the year the Compact is in effect. | 0011| 4. Limitations. The Tribe's obligation to make the | 0012| payments provided for in Paragraphs 2 and 3 of this section | 0013| shall apply and continue only so long as there is a binding | 0014| Indian Gaming Compact in effect between the Tribe and the | 0015| State, which Compact provides for the play of Class III Gaming, | 0016| but shall terminate in the event of any of the following | 0017| 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 | 0021| scope 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, | 0001| (2) any fraternal, veterans or other nonprofit membership | 0002| organization to operate such electronic gaming devices | 0003| lawfully, but only for the benefit of such organization's | 0004| members, (3) limited fundraising activities conducted by | 0005| nonprofit tax exempt organizations pursuant to Section 30-19-6 | 0006| NMSA 1978, and (4) any horse ractracks to operate electronic | 0007| gaming devices on days on which live or simulcast horse racing | 0008| occurs. "Simulcast horse racing" means live broadcasting of | 0009| horse races occurring at horseracing tracks elsewhere within | 0010| New Mexico. However, for any day on which electronic gaming | 0011| devices are permitted to be operated under this provision at | 0012| any horse racetracks located within one hundred fifty (150) | 0013| miles of a Gaming Facility owned by the Tribe, one-half (�) of | 0014| the net win derived from electronic gaming devices at such | 0015| Gaming Facility for such day would be exempt from any revenue- | 0016| sharing obligation under the provisions of this Agreement | 0017| (except if electronic gaming devices are operated at such horse | 0018| racetracks for more than twelve (12) hours on any such day, all | 0019| of the Tribe's revenues from electronic gaming devices on such | 0020| day shall be exempt from any revenue-sharing obligation under | 0021| the provisions of this Agreement); and provided further that | 0022| there will be no exemption from State taxes imposed on the | 0023| operation of electronic gaming devices for those devices | 0024| operated at horse racetracks. | 0025| 5. Effect of Variance. | 0001| A. In the event the acts or omissions of the State | 0002| cause the Tribe's obligation to make payments under Paragraph 3 | 0003| of this section to terminate under the provisions of Paragraph | 0004| 4 of this section, such cessation of obligation to pay will not | 0005| adversely affect the validity of the Compact, but the maximum | 0006| amount that the Tribe agrees to reimburse the State for actual | 0007| documented regulatory costs under the Compact shall | 0008| automatically increase to one hundred thousand dollars | 0009| ($100,000) per year. | 0010| B. In the event a Tribe's revenue-sharing payment to | 0011| the State is less than one hundred thousand dollars ($100,000) | 0012| per year, the maximum amount that the Tribe agrees to reimburse | 0013| the State for actual documented regulatory costs under the | 0014| Compact shall automatically increase to one hundred thousand | 0015| dollars ($100,000) per year less the amount of the revenue- | 0016| sharing payment. | 0017| 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 26 of this act may be cited as the "Video Gambling | 0022| Act". | 0023| Section 4. [NEW MATERIAL] AUTHORITY AND PURPOSE.--The | 0024| purpose of the Video Gambling Act is to make lawful and | 0025| regulate the conduct and operation of certain electronic video | 0001| games of chance by certain nonprofit organizations and | 0002| racetracks. | 0003| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0004| Video Gambling Act: | 0005| A. "director" means the director of the alcohol and | 0006| gaming division of the regulation and licensing department; | 0007| B. "distributor" means a person who sells, offers | 0008| for sale or furnishes to another person a video gambling | 0009| machine; | 0010| C. "division" means the alcohol and gaming division | 0011| of the regulation and licensing department; | 0012| D. "fraternal organization" means any organization | 0013| within the state that is not organized for pecuniary profit, is | 0014| a branch, lodge or chapter of a national or state organization, | 0015| exists for the common business, brotherhood or other interests | 0016| of its members and has existed in New Mexico for at least three | 0017| years immediately prior to making application for a license | 0018| pursuant to the Video Gambling Act, but "fraternal | 0019| organization" does not include college and high school | 0020| fraternities or sororities; | 0021| E. "gross receipts" means the total amount of money | 0022| or the value of other consideration received from selling, | 0023| renting, leasing or distributing a video gambling machine, but | 0024| in an exchange in which the money or other consideration | 0025| received does not represent the value of the property | 0001| exchanged, "gross receipts" means the reasonable value of the | 0002| property exchanged as determined by the director; | 0003| F. "licensee" means the holder of any license issued | 0004| pursuant to the Video Gambling Act; | 0005| G. "liquor establishment" means a person licensed | 0006| pursuant to Section 60-6A-3 NMSA 1978 to dispense alcoholic | 0007| beverages, has permanent seating capacity for no fewer than | 0008| thirty patrons on the premises licensed pursuant to that | 0009| section and serves beer, wine and spirituous liquors; | 0010| H. "manufacturer" means a person that assembles, | 0011| from parts or raw materials, a video gambling machine; | 0012| I. "net drop" means the amount wagered on a video | 0013| gambling machine less the amounts paid as winnings on the | 0014| machine; | 0015| J. "operate" means to possess or maintain any video | 0016| gambling machine for the purpose of allowing a person to play | 0017| it; | 0018| K. "person" means an individual or other entity; | 0019| L. "play" means to activate a video gambling machine | 0020| and to manipulate or work it for the purpose of trying to win | 0021| money, prizes or other consideration; | 0022| M. "racetrack" means a facility or person licensed | 0023| by the state racing commission to conduct horse racing within | 0024| this state; | 0025| N. "veterans' organization" means any organization | 0001| within this state or any branch, lodge or chapter of a national | 0002| or state organization within this state that is organized not | 0003| for pecuniary profit, the membership of which consists entirely | 0004| of individuals who were members of the armed services of the | 0005| United States, and which has been in existence in New Mexico | 0006| for at least three years immediately prior to its making | 0007| application for a license under the Video Gambling Act; and | 0008| O. "video gambling machine" means an electronic | 0009| device, except amusement-type video game machines not operated | 0010| by a licensee that are commonly used for amusement only and | 0011| only pay out tickets or credits that may only be exchanged for | 0012| merchandise of insignificant value, that: | 0013| (1) upon payment of any consideration simulates | 0014| the play of any game of chance; | 0015| (2) utilizes a video display and | 0016| microprocessors; and | 0017| (3) by chance or through some combination of | 0018| chance and skill dispenses or the player may otherwise receive | 0019| cash, coins, tokens, free gambling or credits that can be | 0020| redeemed for cash, coins, tokens, prizes or other | 0021| consideration. | 0022| Section 6. [NEW MATERIAL] PROHIBITION AGAINST | 0023| UNAUTHORIZED ACTS RELATING TO VIDEO GAMBLING.--Except as | 0024| provided pursuant to a valid Indian gaming compact between the | 0025| state and an Indian nation, tribe or pueblo in effect and | 0001| except as provided pursuant to Section 30-19-6 NMSA 1978, no | 0002| person shall manufacture, import, sell, lease, rent, | 0003| distribute, operate, participate in the operation of or conduct | 0004| an activity using a video gambling machine without having first | 0005| obtained an appropriate license issued by the division pursuant | 0006| to the Video Gambling Act. | 0007| Section 7. [NEW MATERIAL] LICENSING--GENERAL | 0008| PROVISIONS.-- | 0009| A. A license may be issued only in accordance with | 0010| the provisions of the Video Gambling Act. | 0011| B. An applicant for a license or a licensee shall | 0012| produce records or evidence and give all information requested | 0013| by the director. An applicant or licensee shall not interfere | 0014| or attempt to interfere with any investigation by the director. | 0015| C. The director shall investigate the qualifications | 0016| of an applicant for a license and shall investigate the | 0017| conditions existing in the community in which the premises for | 0018| which a license is sought is located before the license is | 0019| issued so that a license is not issued to a person or for a | 0020| location if the issuance is prohibited by law or contrary to | 0021| the public health or safety. | 0022| D. No license shall be issued to a person that: | 0023| (1) has been convicted of a felony; or | 0024| (2) has as a majority shareholder, director or | 0025| officer a person who has been convicted of a felony. | 0001| E. A licensee shall not employ in a position having | 0002| authority to conduct or supervise video gambling for the | 0003| licensee a person that has been convicted of a felony. | 0004| F. An applicant that is a proprietor shall file with | 0005| an application two complete sets of his fingerprints. An | 0006| applicant that is a general partnership shall file with an | 0007| application two complete sets of fingerprints of all general | 0008| partners. | 0009| G. If the applicant is a limited partnership, it | 0010| shall file two complete sets of fingerprints for each general | 0011| partner and for each limited partner contributing ten percent | 0012| or more of the total value of contributions made to the limited | 0013| partnership or entitled to ten percent or more of the profits | 0014| earned or other compensation by way of income paid by the | 0015| limited partnership. | 0016| H. If the applicant is a limited liability company, | 0017| it shall file two complete sets of fingerprints for each | 0018| manager or member with management responsibilities. | 0019| I. If the applicant is a corporation, it shall file | 0020| two complete sets of fingerprints for a stockholder holding ten | 0021| percent or more of the outstanding stock, principal officer, | 0022| director and the agent responsible for the operation of the | 0023| licensed business. | 0024| J. Fingerprints taken pursuant to the provisions of | 0025| this section shall be taken under the supervision of and | 0001| certified to by an officer of the New Mexico state police, a | 0002| county sheriff or a municipal chief of police. | 0003| K. The director may exchange identification records | 0004| and information with law enforcement agencies for official use. | 0005| Any identification records received from the United States | 0006| department of justice, including identification records based | 0007| on fingerprints, shall be used only for licensing purposes and | 0008| to achieve compliance with the provisions of the Video Gambling | 0009| Act. The department shall not disseminate information obtained | 0010| pursuant to the provisions of this subsection except to law | 0011| enforcement agencies for official use only. | 0012| L. An application for the issuance of a license or | 0013| annual renewal of a license shall be accompanied by a fee in | 0014| the following amounts: | 0015| (1) for manufacturer licensees, the initial | 0016| license fee shall be fifteen thousand dollars ($15,000) and the | 0017| annual renewal fee shall be one thousand dollars ($1,000); and | 0018| (2) for racetrack licensees, video gambling | 0019| machine licensees, a liquor establishment licensee and | 0020| distributor licensees, the initial license fee and the annual | 0021| renewal fee shall be one thousand dollars ($1,000). | 0022| M. The director shall prescribe the requirements for | 0023| and contents of each application, consistent with the | 0024| provisions of the Video Gambling Act. | 0025| N. Licenses issued pursuant to the Video Gambling | 0001| Act shall expire on June 30 of each year and may be renewed | 0002| upon proper application and payment of the required application | 0003| fee. If a license expires, the licensee shall cease all | 0004| activities subject to licensure until the license is renewed. | 0005| O. A licensee has no vested property right in a | 0006| license. It is the property of the state. Licenses issued | 0007| pursuant to the provisions of the Video Gambling Act are not | 0008| subject to sale, lease, devise, transfer, assignment, | 0009| execution, attachment, a security transaction, liens or | 0010| receivership. | 0011| Section 8. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0012| LICENSE.-- | 0013| A. A license may be issued to a fraternal | 0014| organization or veterans' organization to own or operate, or | 0015| both, video gambling machines for which permits have been | 0016| issued by the director. | 0017| B. A video gambling machine licensee may install and | 0018| operate video gambling machines only at the location stated in | 0019| its application and approved by the director. | 0020| C. No person other than an active member of a | 0021| veterans' organization or a fraternal organization that is a | 0022| video gambling machine licensee and bona fide guests of that | 0023| member may play video gambling machines operated by the video | 0024| gambling machine licensee. | 0025| D. A video gambling machine licensee shall report | 0001| information required by division regulations to the division | 0002| every three months. Forms for reporting shall be prescribed | 0003| and furnished by the director. | 0004| E. A video gambling machine licensee shall not | 0005| purchase, lease or otherwise acquire a video gambling machine | 0006| except from a distributor licensee. | 0007| F. No more than one video gambling machine for every | 0008| twenty members of a video gambling machine licensee, not to | 0009| exceed twenty-five machines per organization, shall be | 0010| permitted by the director or operated by the licensee. | 0011| Section 9. [NEW MATERIAL] RACETRACK LICENSE.-- | 0012| A. A license may be issued to a racetrack to own or | 0013| operate, or both, video gambling machines for which permits | 0014| have been issued by the director. | 0015| B. A racetrack licensee may install and operate | 0016| video gambling machines only at the location stated in its | 0017| application and approved by the director. | 0018| C. A racetrack licensee shall not operate or allow a | 0019| person to play a video gambling machine at the racetrack except | 0020| in accordance with the following provisions: | 0021| (1) a video gambling machine shall not be | 0022| operated or played except on days that the racetrack is holding | 0023| a live formal race meet or simulcasting New Mexico horse race | 0024| meets authorized by the state racing commission and only during | 0025| the periods of time authorized by the commission but not to | 0001| exceed twelve consecutive hours on a day; | 0002| (2) members of the public patronizing the | 0003| racetrack, except minors, may play video gambling machines | 0004| operated by the racetrack licensee; and | 0005| (3) only racetrack employees may operate video | 0006| gambling machines at the racetrack. | 0007| D. A racetrack licensee shall report information | 0008| required by division regulations to the division every three | 0009| months. Forms for reporting shall be prescribed and furnished | 0010| by the director. | 0011| E. A racetrack licensee shall not purchase, lease or | 0012| otherwise acquire a video gambling machine except from a | 0013| distributor licensee. | 0014| Section 10. [NEW MATERIAL] LIQUOR ESTABLISHMENT | 0015| LICENSE.-- | 0016| A. A license may be issued to a liquor establishment | 0017| to own or operate, or both, video gambling machines for which | 0018| permits have been issued by the director. | 0019| B. A liquor establishment licensee shall only | 0020| operate or allow a person to play a video gambling machine on | 0021| premises identified in the license issued to him pursuant to | 0022| the Liquor Control Act during the hours in which alcoholic | 0023| beverages may be served. | 0024| C. A liquor establishment licensee shall report | 0025| information required by division regulations to the division | 0001| every three months. Forms for reporting shall be prescribed | 0002| and furnished by the director. | 0003| D. A liquor establishment licensee shall not | 0004| purchase, lease or otherwise acquire a video gambling machine | 0005| except from a distributor licensee. | 0006| E. No more than five video gambling machines shall | 0007| be issued permits by the director to be located on the premises | 0008| of a liquor establishment licensee or operated by the liquor | 0009| establishment licensee. | 0010| Section 11. [NEW MATERIAL] MANUFACTURER LICENSE.-- | 0011| A. A license may be issued to a person desiring to | 0012| manufacture video gambling machines in this state. | 0013| B. A person shall not manufacture video gambling | 0014| machines in this state without a license issued to the | 0015| manufacturer by the director. | 0016| C. Each licensed manufacturer shall report | 0017| information required by division regulations to the division | 0018| every three months. Forms for reporting shall be prescribed | 0019| and furnished by the director. | 0020| D. A licensed manufacturer shall not sell a video | 0021| gambling machine to or solicit the purchase of a video gambling | 0022| machine by a person other than a licensed distributor. | 0023| E. A licensed manufacturer shall not operate, | 0024| receive for resale or participate either directly or indirectly | 0025| in the operation or resale of a video gambling machine. | 0001| Section 12. [NEW MATERIAL] DISTRIBUTOR LICENSE.-- | 0002| A. A license may be issued to a person desiring to | 0003| distribute video gambling machines in this state. | 0004| B. A person shall not distribute video gambling | 0005| machines in this state without a license issued by the | 0006| director. | 0007| C. A licensed distributor shall not distribute a | 0008| video gambling machine except to racetrack, liquor | 0009| establishment or video gambling licensees. | 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 13. [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 for | 0005| the safety of participants in the conduct of video gambling; | 0006| (4) the contents of and process for | 0007| applications for licenses or permits pursuant to the Video | 0008| Gambling Act; | 0009| (5) electronic fund transfers from licensees of | 0010| taxes owed to the state as provided herein, and trust accounts | 0011| for the collection and maintenance of those funds; and | 0012| (6) other rules and regulations that are | 0013| consistent with the provisions of the Video Gambling Act and | 0014| provide for the integrity, honesty and security of the conduct | 0015| of video gambling activities by a licensee. | 0016| D. The division shall adopt by regulation mechanical | 0017| and electronic standards for video gambling machines ensuring | 0018| the integrity, honesty and security of the machines. The | 0019| standards shall not be more lenient than those applied to | 0020| similar machines in lawful use within the United States by any | 0021| other jurisdiction regulating the conduct of video gambling. | 0022| Section 14. [NEW MATERIAL] CONTRACT WITH NEW MEXICO | 0023| LOTTERY AUTHORITY.--The division shall enter into a contract | 0024| with the New Mexico lottery authority to conduct the monitoring | 0025| of video gambling machines, including receiving and | 0001| transmitting information required by the Video Gambling Act to | 0002| the division by the authority. The contract shall allow the | 0003| authority to electronically disable any video gambling machine | 0004| that is not operated in compliance with the Video Gambling Act | 0005| upon request from the division. The contract is not subject to | 0006| the provisions of the Procurement Code, and may provide for the | 0007| compensation agreed to by the division and the authority. | 0008| Section 15. [NEW MATERIAL] PERMITS REQUIRED FOR VIDEO | 0009| GAMBLING MACHINES.-- | 0010| A. A licensee that intends to operate a video | 0011| gambling machine shall file an application with the division | 0012| for a permit for each video gambling machine purchased, leased | 0013| or otherwise acquired by the licensee within twenty days of | 0014| purchasing, leasing or otherwise acquiring the machine. The | 0015| application shall be on forms prescribed and furnished by the | 0016| director. The division shall not issue a permit for any | 0017| machine that has not been tested in accordance with the | 0018| provisions of the Video Gambling Act or does not comply with | 0019| standards adopted by the division by regulation. | 0020| B. An application for a permit shall be accompanied | 0021| by a permit fee of one hundred dollars ($100) per machine. | 0022| C. The division shall issue a permit number for a | 0023| machine based upon compliance with all applicable provisions of | 0024| the Video Gambling Act and upon filing a properly completed | 0025| application along with the required permit fee for the machine, | 0001| but the director may refuse to issue a permit for a specific | 0002| machine if he believes that the machine is inaccurate, | 0003| unreliable or will not be operated in accordance with the | 0004| provisions of the Video Gambling Act or regulations adopted | 0005| pursuant to that act. | 0006| D. A video gambling machine shall not be operated | 0007| and a person shall not play a video gambling machine unless the | 0008| licensee has a current permit to operate the machine. | 0009| E. An application for a permit shall provide | 0010| information required by regulations adopted by the director. | 0011| F. A licensee shall place a video gambling machine | 0012| into operation within ten days of issuance of the permit for | 0013| that machine. If the machine is not placed into operation | 0014| within ten days, the permit shall be canceled by the director. | 0015| Section 16. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0016| TESTING AND INSPECTION.-- | 0017| A. A permit shall not be issued for a video gambling | 0018| machine unless it is first tested and certified for accuracy | 0019| and reliability by an independent testing laboratory approved | 0020| by the director. The costs of the testing shall be paid by the | 0021| licensee that proposes to operate the machine. | 0022| B. No video gambling machine may be operated if it, | 0023| or the software used to control its electronic functions, has | 0024| been modified in any way without having been tested after the | 0025| modification and certified for accuracy and reliability by an | 0001| independent testing laboratory approved by the director. | 0002| C. A video gambling machine and the premises at | 0003| which it is being operated or played shall be open to | 0004| inspection at all times by the director, his authorized | 0005| employees or any law enforcement officer. Whenever the | 0006| director or any law enforcement officer has probable cause to | 0007| believe that any video gambling machine was obtained from an | 0008| unlicensed manufacturer or distributor, is being operated by an | 0009| unlicensed person, is being operated without a permit or | 0010| otherwise fails to meet the requirements of the Video Gambling | 0011| Act or regulations adopted pursuant to that act, he shall | 0012| remove and impound the video gambling machine for the purpose | 0013| of testing and detention and shall retain possession of the | 0014| machine until otherwise ordered by a district court. | 0015| Section 17. [NEW MATERIAL] CONDUCT OF VIDEO MACHINE | 0016| GAMBLING.-- | 0017| A. A licensee shall not allow access to a video | 0018| gambling machine for the purpose of play by a person who has | 0019| not reached his twenty-first birthday. | 0020| B. Except for video gambling machines located on the | 0021| premises of a racetrack licensee or a liquor establishment | 0022| licensee, a licensee shall not allow access to a video gambling | 0023| machine for the purpose of play by a person who is not a bona | 0024| fide member of the licensee or a bona fide guest of the member. | 0025| C. A video gambling machine for which a permit has | 0001| been issued by the division may be located and operated on a | 0002| liquor premises licensed pursuant to the Liquor Control Act if | 0003| the person holding the liquor license is also a video gambling | 0004| machine licensee or a liquor establishment licensee. | 0005| D. If a video gambling machine fails to meet | 0006| specifications and requirements of the Video Gambling Act or a | 0007| regulation adopted pursuant to that act after a permit is | 0008| issued, the licensee shall remove the machine from public | 0009| access immediately and not operate it until it has been | 0010| adjusted to meet all requirements. | 0011| E. All tables displaying prizes or awards shall be | 0012| prominently displayed on a video gambling machine operated by a | 0013| licensee. A licensee may establish house rules regulating the | 0014| operation or conduct of video gambling machines if the rules do | 0015| not conflict with provisions of the Video Gambling Act or a | 0016| regulation adopted pursuant to that act. | 0017| F. A licensee operating a video gambling machine | 0018| shall display on each machine, or in a conspicuously visible | 0019| place, the telephone number of the division that can be called | 0020| to report device malfunctions or complaints. | 0021| Section 18. [NEW MATERIAL] VIDEO GAMBLING MACHINE | 0022| REQUIREMENTS--MONITORING.-- | 0023| A. Prior to operation, a licensee, at his own | 0024| expense, shall connect each video gambling machine to existing | 0025| telecommunications lines and systems and ensure that the video | 0001| gambling machine is capable of providing the following | 0002| information to the division or its contractor through a data | 0003| report or detailed tape: | 0004| (1) the time of day in hours and minutes in | 0005| which the video gambling machine is in operation; | 0006| (2) the location of the video gambling machine; | 0007| (3) the number of the pool of tickets or deal | 0008| and the size of the pool; | 0009| (4) the serial and permit numbers of the video | 0010| gambling machine; | 0011| (5) the cumulative amount of money inserted | 0012| into the video gambling machine at any given time; | 0013| (6) the amount of money contained in the video | 0014| gambling machine at a given time; | 0015| (7) the amount of money, credits or other | 0016| consideration paid to players by the video gambling machine at | 0017| any given time; | 0018| (8) the version number of the software running | 0019| on the gambling machine; and | 0020| (9) other information required by regulations | 0021| adopted by the director. | 0022| B. A video gambling machine shall contain a printer | 0023| that is capable of printing a performance synopsis of the | 0024| gambling played and that creates an exact and identical copy of | 0025| all items printed that is retained inside the video gambling | 0001| machine. A video gambling machine shall have electronic and | 0002| mechanical meters. The printer inside the video gambling | 0003| machine shall be capable of printing the information on the | 0004| meters. | 0005| C. The main logic board and the printed circuit | 0006| board of a video gambling machine containing gambling erasable | 0007| program read-only memories shall be isolated in a locked area | 0008| of the video gambling machine. The memories shall be sealed to | 0009| the board by the manufacturer using a process approved by the | 0010| division. The sealing shall be of a type that permits field | 0011| examination of the memories and effective resealing after | 0012| examination. | 0013| D. A video gambling machine shall have a | 0014| nonremovable serial number plate that provides at least the | 0015| following information: | 0016| (1) the permit number issued by the division; | 0017| and | 0018| (2) the manufacturer's name, date of | 0019| manufacture and manufacturer's serial number. | 0020| E. Access to a video gambling machine shall be | 0021| controlled through locks. | 0022| F. A video gambling machine shall have surge | 0023| protection and battery backup systems and shall pass a static | 0024| discharge test of at least forty thousand volts. | 0025| G. A video gambling machine shall allow for random | 0001| play and winning. | 0002| H. Each video gambling machine shall be capable of | 0003| being deactivated by an electronic signal generated by the | 0004| division or its contractor. | 0005| Section 19. [NEW MATERIAL] TESTING, AUDITING AND | 0006| SEIZURE OF VIDEO GAMBLING MACHINES.-- | 0007| A. The director may by written directive require a | 0008| licensee, at the licensee's expense, to have a video gambling | 0009| machine manufactured, distributed, owned, leased or operated by | 0010| that licensee tested for reliability and accuracy by an | 0011| independent laboratory approved or designated by the director. | 0012| No video gambling machine may be operated or distributed by a | 0013| licensee until it has been tested and the director is satisfied | 0014| that the video gambling machine is accurate and reliable based | 0015| upon the results of the test. | 0016| B. The director or his designated agents or | 0017| contractors may, without advance notice to the licensee, audit | 0018| or test the operation of a video gambling machine to ensure | 0019| reliability and accuracy. A licensee shall allow access to its | 0020| video gambling machines and its premises by the director or his | 0021| designated agents or contractors immediately upon request. | 0022| C. The director or his designated agents or | 0023| contractors may audit all records of a licensee, whether or not | 0024| they are in the licensee's possession, to ensure compliance | 0025| with the provisions of the Video Gambling Act or regulations | 0001| adopted pursuant to the provisions of that act. A licensee | 0002| requested to produce records relating to its video gambling | 0003| machine activities by the director, his designated agents or | 0004| contractors, shall do so immediately upon request. | 0005| D. The director may seize or seal a video gambling | 0006| machine, and he may order a licensee to cease operating a video | 0007| gambling machine, without prior notice if the director believes | 0008| that the licensee is violating any provision of the Video | 0009| Gambling Act or a regulation adopted pursuant to the provisions | 0010| of that act. He also may take the foregoing actions if a | 0011| machine is not accurate or reliable or has been changed or | 0012| modified in any manner not approved by the director. | 0013| Section 20. [NEW MATERIAL] DENIAL, SUSPENSION OR | 0014| REVOCATION OF LICENSE.-- | 0015| A. The director may refuse to issue or renew a | 0016| license or suspend or revoke a license, and he may fine a | 0017| licensee in an amount not to exceed ten thousand dollars | 0018| ($10,000) per incident, or both, upon a finding that the | 0019| applicant or licensee or any member, officer, director, | 0020| employee or agent of the applicant or licensee has: | 0021| (1) violated any provision of the Video | 0022| Gambling Act or a regulation adopted pursuant to that act; | 0023| (2) provided false or misleading information to | 0024| the director; | 0025| (3) been convicted of a felony or any gambling- | 0001| related offense; | 0002| (4) modified or changed any video gambling | 0003| machine so as to endanger or compromise its accuracy, security | 0004| or reliability; | 0005| (5) engaged in dishonest or deceptive practices | 0006| with respect to its video gambling machine activities; or | 0007| (6) conducted its video gambling activities in | 0008| a manner that may be considered a public nuisance. | 0009| B. When the director contemplates taking an action | 0010| against an applicant or licensee to refuse to issue or renew or | 0011| to revoke or suspend a license or impose a fine, he shall serve | 0012| written notice upon the applicant or licensee containing the | 0013| following: | 0014| (1) a statement that the director has | 0015| sufficient evidence that, if not rebutted or explained, will | 0016| justify the director in taking the contemplated action; | 0017| (2) a statement indicating the general nature | 0018| of the evidence; and | 0019| (3) a statement advising the applicant or | 0020| licensee that unless the applicant or licensee within twenty | 0021| days after service of the notice delivers a written request for | 0022| hearing to the director, the director will take the | 0023| contemplated action. | 0024| C. If the applicant or licensee does not deliver a | 0025| request for hearing within the time required by Paragraph (3) | 0001| of Subsection B of this section, the director may take the | 0002| action contemplated in the notice, and that action is final and | 0003| not subject to judicial review. | 0004| D. If the applicant or licensee delivers a request | 0005| for hearing within the time required by Paragraph (3) of | 0006| Subsection B of this section, the director shall, within twenty | 0007| days of receipt of the request, notify the applicant or | 0008| licensee of the time and place of hearing and the name of the | 0009| person who shall conduct the hearing for the director. The | 0010| hearing shall be held not more than sixty and not less than | 0011| fifteen days from the date of service of the notice of hearing. | 0012| E. Hearings held pursuant to the provisions of this | 0013| section shall be: | 0014| (1) in Santa Fe; | 0015| (2) conducted by the director or by a hearing | 0016| officer appointed by the director; and | 0017| (3) open to the public. | 0018| F. A licensee or applicant entitled to and | 0019| requesting a hearing has the right to be represented by | 0020| counsel, to present all relevant evidence, to examine all | 0021| opposing witnesses, and to have subpoenas issued by the | 0022| director to compel the attendance of witnesses and the | 0023| production of documents. | 0024| G. The director or hearing officer may impose | 0025| appropriate evidentiary sanctions against a party who fails to | 0001| provide discovery or to comply with a subpoena. | 0002| H. The director or hearing officer shall cause a | 0003| complete record to be made of all evidence received during the | 0004| course of a hearing. | 0005| I. After a hearing has been completed, the director | 0006| shall render his decision as soon as is practicable. | 0007| J. An applicant or licensee that is aggrieved by an | 0008| adverse decision of the director may obtain a review of the | 0009| decision in the district court of Santa Fe county by filing | 0010| with the court a petition for review within twenty days after | 0011| the date of service of the decision. Failure to file a | 0012| petition for review in the manner and within the time stated | 0013| shall operate as a waiver of the right to judicial review and | 0014| shall result in the decision of the director becoming final. | 0015| K. Upon the review of a decision of the director, | 0016| the court shall affirm the decision of the director unless it | 0017| finds that the substantial rights of the petitioner have been | 0018| prejudiced because the decision was in violation of | 0019| constitutional provisions; in excess of the statutory authority | 0020| or jurisdiction of the director, or made upon unlawful | 0021| procedure; affected by other error of law; unsupported by | 0022| substantial evidence based upon a review of the entire record | 0023| submitted; or arbitrary or capricious. | 0024| L. A party to the review proceeding in the district | 0025| court may appeal to the supreme court from the decision of the | 0001| district court. | 0002| Section 21. [NEW MATERIAL] SHIPMENT OF VIDEO GAMBLING | 0003| MACHINES.--Shipments of video gambling machines into this state | 0004| shall comply with all requirements of the Video Gambling Act | 0005| and all applicable federal laws. | 0006| Section 22. [NEW MATERIAL] RECORDS REQUIRED AND RECORD | 0007| RETENTION.-- | 0008| A. In addition to other records required to be | 0009| generated or kept pursuant to the Video Gambling Act, each | 0010| licensee operating video gambling machines shall maintain | 0011| complete operation records, including audit tapes, and shall | 0012| make them available for inspection by the director, authorized | 0013| employees of the division or any law enforcement officer upon | 0014| request. Those records shall include: | 0015| (1) all permit and licensing documents issued | 0016| by the division; | 0017| (2) a complete record of all winnings paid out | 0018| by each video gambling machine, including the date, time and | 0019| amount of the winnings paid out; | 0020| (3) a record of gross receipts from operation | 0021| of each video gambling machine by date; and | 0022| (4) records required by regulations adopted | 0023| pursuant to the Video Gambling Act. | 0024| B. A licensee shall maintain records required by the | 0025| Video Gambling Act, or a regulation adopted pursuant to that | 0001| act, within this state for a minimum of three years. | 0002| C. An applicant for a license or a licensee, as a | 0003| condition of issuance or continuation of licensure, shall grant | 0004| the director, or his designee, access to all tax returns | 0005| maintained by the United States internal revenue service or the | 0006| taxation and revenue department that have been filed on behalf | 0007| of any person having an ownership or other financial interest | 0008| in the applicant or the video gambling activities of the | 0009| licensee or having a function in relation to the video gambling | 0010| activities of the licensee. The director shall consider those | 0011| records when determining qualifications for initial and | 0012| continuing licensure or other actions pursuant to the Video | 0013| Gambling Act. | 0014| Section 23. [NEW MATERIAL] TAX IMPOSED--PURSE | 0015| ALLOCATION.-- | 0016| A. An excise tax known as the "gambling tax" is | 0017| imposed upon the privilege of manufacturing, distributing or | 0018| operating a video gambling machine in this state or receiving | 0019| revenue from the operation of a video gambling machine within | 0020| this state. The amount of the gambling tax is, for: | 0021| (1) manufacturer licensees, ten percent of the | 0022| gross receipts from each sale or other transfer of a video | 0023| gambling machine manufactured within this state; | 0024| (2) distributor licensees, ten percent of gross | 0025| receipts from the distribution of a video gambling machine | 0001| within this state; | 0002| (3) video gambling machine licensees, fifteen | 0003| percent of the net drop derived from the operation of a video | 0004| gambling machine; and | 0005| (4) racetrack and liquor establishment | 0006| licensees, the following amounts: | 0007| (a) for the 1997 calendar year, fifteen | 0008| percent of the net drop derived from the operation of a video | 0009| gambling machine; | 0010| (b) for the calendar year beginning | 0011| January 1, 1998 and ending December 31, 1998, twenty percent of | 0012| the net drop derived from the operation of a video gambling | 0013| machine; and | 0014| (c) for the calendar year beginning | 0015| January 1, 1999 and ending December 31, 1999 and each year | 0016| thereafter, twenty-five percent of the net drop derived from | 0017| the operation of a video gambling machine. | 0018| B. The gambling tax shall be paid to the division on | 0019| or before the twenty-fifth day of the month following the month | 0020| in which the taxable event occurs. | 0021| C. Revenue received by the division from the | 0022| imposition of the gambling tax shall be deposited into the | 0023| general fund. | 0024| D. In addition to the taxes set forth herein, each | 0025| racetrack licensee shall allocate not less than the following | 0001| amounts to purses in accordance with regulations adopted by the | 0002| state racing commission: | 0003| (1) for the 1997 calendar year, fifteen percent | 0004| of the net drop derived from the operation of a video gambling | 0005| machine; | 0006| (2) for the calendar year beginning January 1, | 0007| 1998 and ending December 31, 1998, twenty percent of the net | 0008| drop derived from the operation of a video gambling machine; | 0009| and | 0010| (3) for the calendar year beginning January 1, | 0011| 1999 and ending December 31, 1999 and each year thereafter, | 0012| twenty-five percent of the net drop derived from the operation | 0013| of a video gambling machine. | 0014| Section 24. [NEW MATERIAL] CRIMINAL PENALTIES.--A | 0015| person who violates a provision of the Video Gambling Act or a | 0016| regulation adopted pursuant to that act is guilty of a | 0017| misdemeanor and upon conviction shall be sentenced pursuant to | 0018| the provisions of Section 31-19-1 NMSA 1978. A person | 0019| convicted pursuant to this section is prohibited from owning, | 0020| operating or participating in the proceeds from the operation | 0021| of a video gambling machine for a period of five years after | 0022| the date of the conviction. | 0023| Section 25. [NEW MATERIAL] ENFORCEMENT.--The special | 0024| investigations division of the department of public safety, and | 0025| any other law enforcement agency entering into a joint powers | 0001| agreement with the department of public safety, has the | 0002| authority to enforce the provisions of the Video Gambling Act | 0003| by investigating all violations and by issuing administrative | 0004| citations or by initiating criminal prosecutions, or both. | 0005| Section 26. [NEW MATERIAL] FUND CREATED-- | 0006| APPROPRIATION.-- There is created in the state treasury the | 0007| "video gambling fund". All money in the fund and all interest | 0008| attributable to it is appropriated to the division for the | 0009| purpose of carrying out the provisions of the Video Gambling | 0010| Act. All license fees paid by licensees pursuant to the | 0011| provisions of the Video Gambling Act or regulations adopted | 0012| pursuant to that act shall be credited to the fund. Money in | 0013| the fund at the end of a fiscal year shall not revert to the | 0014| general fund. | 0015| Section 27. SEVERABILITY.--If any part or application of | 0016| the Video Gambling Act is held invalid, the remainder or its | 0017| application to other situations or persons shall not be | 0018| affected. | 0019| Section 28. Section 13-1-98 NMSA 1978 (being Laws 1984, | 0020| Chapter 65, Section 71, as amended) is amended to read: | 0021| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The | 0022| provisions of the Procurement Code shall not apply to: | 0023| A. procurement of items of tangible personal | 0024| property or services by a state agency or a local public body | 0025| from a state agency, a local public body, the New Mexico | 0001| lottery authority or an external procurement unit except as | 0002| otherwise provided in Sections 13-1-135 through 13-1-137 NMSA | 0003| 1978; | 0004| B. procurement of tangible personal property or | 0005| services for the governor's mansion and grounds; | 0006| C. printing and duplicating contracts involving | 0007| materials ~~[which]~~ that are required to be filed in | 0008| connection with proceedings before administrative agencies or | 0009| state or federal courts; | 0010| D. purchases of publicly provided or publicly | 0011| regulated gas, electricity, water, sewer and refuse collection | 0012| services; | 0013| E. purchases of books and periodicals from the | 0014| publishers or copyright holders thereof; | 0015| F. travel or shipping by common carrier or by | 0016| private conveyance or to meals and lodging; | 0017| G. purchase of livestock at auction rings or to the | 0018| procurement of animals to be used for research and | 0019| experimentation or exhibit; | 0020| H. contracts with businesses for public school | 0021| transportation services; | 0022| I. procurement of tangible personal property or | 0023| services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978, | 0024| by the corrections industries division of the corrections | 0025| department pursuant to regulations adopted by the corrections | 0001| ~~[industries]~~ commission, which shall be reviewed by the | 0002| purchasing division of the general services department prior to | 0003| adoption; | 0004| J. minor purchases consisting of magazine | 0005| subscriptions, conference registration fees and other similar | 0006| purchases where prepayments are required; | 0007| K. municipalities having adopted home rule charters | 0008| and having enacted their own purchasing ordinances; | 0009| L. the issuance, sale and delivery of public | 0010| securities pursuant to the applicable authorizing statute, with | 0011| the exception of bond attorneys and general financial | 0012| consultants; | 0013| M. contracts entered into by a local public body | 0014| with a private independent contractor for the operation, or | 0015| provision and operation, of a jail pursuant to Sections 33-3-26 | 0016| and | 0017| 33-3-27 NMSA 1978; | 0018| N. contracts for maintenance of grounds and | 0019| facilities at highway rest stops and other employment | 0020| opportunities, excluding those intended for the direct care and | 0021| support of persons with handicaps, entered into by state | 0022| agencies with private, nonprofit, independent contractors who | 0023| provide services to persons with handicaps; | 0024| O. contracts and expenditures for services to be | 0025| paid or compensated by money or other property transferred to | 0001| New Mexico law enforcement agencies by the United States | 0002| department of justice drug enforcement administration; | 0003| P. contracts for retirement and other benefits | 0004| pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978; and | 0005| Q. contracts with professional entertainers." | 0006| Section 29. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0007| Chapter 303, Section 19-1, as amended) is amended to read: | 0008| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0009| Chapter 30, Article 19 NMSA 1978: | 0010| A. "antique gambling device" means a gambling device | 0011| twenty-five years of age or older and substantially in original | 0012| condition that is not used for gambling or commercial gambling | 0013| or located in a gambling place; | 0014| B. "bet" means a bargain in which the parties agree | 0015| that, dependent upon chance, even though accompanied by some | 0016| skill, one stands to win or lose anything of value specified in | 0017| the agreement. A bet does not include: | 0018| (1) bona fide business transactions that are | 0019| valid under the law of contracts, including ~~[without~~ | 0020| ~~limitation]~~: | 0021| (a) contracts for the purchase or sale, at | 0022| a future date, of securities or other commodities; and | 0023| (b) agreements to compensate for loss | 0024| caused by the happening of the chance, including ~~[without~~ | 0025| ~~limitation]~~ contracts for indemnity or guaranty and life or | 0001| health and accident insurance; | 0002| (2) offers of purses, prizes or premiums to the | 0003| actual contestants in any bona fide contest for the | 0004| determination of skill, speed, strength or endurance or to the | 0005| bona fide owners of animals or vehicles entered in such | 0006| contest; | 0007| (3) a lottery as defined in this section; or | 0008| (4) betting otherwise permitted by law; | 0009| C. "lottery" means an enterprise other than the New | 0010| Mexico state lottery established and operated pursuant to the | 0011| New Mexico Lottery Act wherein, for a consideration, the | 0012| participants are given an opportunity to win a prize, the award | 0013| of which is determined by chance, even though accompanied by | 0014| some skill. As used in this subsection, "consideration" means | 0015| anything of pecuniary value required to be paid to the promoter | 0016| in order to participate in such enterprise; | 0017| D. "gambling device" means a contrivance other than | 0018| an antique gambling device that, for a consideration, affords | 0019| the player an opportunity to obtain anything of value, the | 0020| award of which is determined by chance, even though accompanied | 0021| by some skill and whether or not the prize is automatically | 0022| paid by the device, but "gambling device" does not include a | 0023| video gambling machine for which a permit has been issued | 0024| pursuant to the Video Gambling Act; and | 0025| E. "gambling place" means any building or tent, any | 0001| vehicle, whether self-propelled or not, or any room within any | 0002| of them, one of whose principal uses is: | 0003| (1) making and settling of bets; | 0004| (2) receiving, holding, recording or forwarding | 0005| bets or offers to bet; | 0006| (3) conducting lotteries; or | 0007| (4) playing gambling devices." | 0008| Section 30. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0009| Chapter 303, Section 19-6, as amended) is amended to read: | 0010| "30-19-6. ~~[PERMISSIVE LOTTERY]~~ AUTHORIZED ACTIVITIES-- | 0011| FAIRS--THEATERS--TAX-EXEMPT ORGANIZATIONS.-- | 0012| A. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0013| 19 NMSA 1978 ~~[shall be construed to apply to any]~~ prohibits | 0014| a sale or drawing of ~~[any]~~ a prize at ~~[any]~~ a fair | 0015| held in this state for the benefit of ~~[any]~~ a church, | 0016| public library or religious society ~~[situate or being]~~ | 0017| located in this state, or for charitable purposes when all | 0018| the proceeds of ~~[such]~~ the fair ~~[shall be]~~ are expended | 0019| in this state for the benefit of ~~[such]~~ the church, public | 0020| library, religious society or charitable purposes. A ~~[lottery~~ | 0021| ~~shall be operated]~~ sale or drawing conducted pursuant to this | 0022| subsection is for the benefit of the organization or | 0023| charitable purpose only ~~[when]~~ if the entire proceeds ~~[of~~ | 0024| ~~the lottery]~~ from the sale or drawing go to the organization | 0025| or charitable purpose and no part of ~~[such]~~ the proceeds go | 0001| to ~~[any]~~ an individual member or employee ~~[thereof]~~ of | 0002| the organization. | 0003| B. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0004| 19 NMSA 1978 ~~[shall be held to prohibit any]~~ prohibits a | 0005| bona fide motion picture ~~[theatre]~~ theater from offering | 0006| prizes of cash or merchandise for advertising purposes, in | 0007| connection with ~~[such]~~ the business of the theater or for | 0008| the purpose of stimulating business, whether or not ~~[any]~~ | 0009| consideration other than a monetary consideration in excess of | 0010| the regular price of admission is ~~[exacted]~~ charged for | 0011| participation in drawings for prizes. | 0012| C. Nothing in ~~[Article 19]~~ Chapter 30, Article | 0013| 19 NMSA 1978 ~~[shall be held to apply to any]~~ prohibits a | 0014| bona fide county fair, including ~~[fairs]~~ a fair for more | 0015| than one county, ~~[which shall have]~~ that has been held | 0016| annually at the same location for at least two years ~~[and~~ | 0017| ~~which shall offer]~~ from offering prizes of livestock or | 0018| poultry in connection with ~~[such]~~ the fair ~~[when]~~ if | 0019| the proceeds of ~~[such]~~ the drawings ~~[shall be]~~ are used | 0020| for the benefit of ~~[said]~~ the fair. | 0021| ~~[D. Nothing in Article 19, Chapter 30 NMSA 1978~~ | 0022| ~~shall be construed to apply to any lottery operated by an~~ | 0023| ~~organization exempt from the state income tax pursuant to~~ | 0024| ~~Subsection C of Section 7-2-4 NMSA 1978 and not subject to the~~ | 0025| ~~provisions of Subsection A of this section; provided that:~~ | 0001| ~~(1) no more than two lotteries shall be~~ | 0002| ~~operated in any year by such an organization;~~ | 0003| ~~(2) all the gross proceeds less the reasonable~~ | 0004| ~~cost of prizes of any lottery operated by such an organization~~ | 0005| ~~shall be expended in the state for the benefit of the~~ | 0006| ~~organization or public purposes; and~~ | 0007| ~~(3) no part of the proceeds of any lottery~~ | 0008| ~~shall go to any individual member or employee of any~~ | 0009| ~~organization except as payment for the purchase of prizes at no~~ | 0010| ~~more than the reasonable retail price.]~~ | 0011| D. Nothing in Chapter 30, Article 19 NMSA 1978 | 0012| prohibits an organization that is exempt from state income tax | 0013| pursuant to Section 7-2-4 NMSA 1978 and in good standing as a | 0014| not for profit corporation as shown by the records of the state | 0015| corporation commission from conducting electronic gambling, | 0016| bingo games, raffles, lotteries or table games, including | 0017| poker, craps, blackjack, roulette and the like, at a | 0018| fundraising event if: | 0019| (1) the fundraising event is conducted no more | 0020| than four times in a calendar year by the qualifying | 0021| organization; | 0022| (2) the only persons authorized to participate | 0023| in the operation or management of the fundraising event are: | 0024| (a) bona fide members of the qualifying | 0025| organization who are not paid for their services in the | 0001| operation or management of the event; or | 0002| (b) persons who provide goods or services | 0003| for the fundraising event for a flat fee or an hourly fee | 0004| pursuant to a written contract with the qualifying | 0005| organization; | 0006| (3) no person receives any part of the proceeds | 0007| of the fundraising event except: | 0008| (a) as payment for prizes purchased at no | 0009| more than the reasonable retail prices for the prizes; or | 0010| (b) pursuant to a contract described in | 0011| Subparagraph (b) of Paragraph (2) of this subsection; | 0012| (4) the net proceeds of the fundraising event | 0013| are expended in the state for the benefit of the qualifying | 0014| organization or purposes for which it was formed; | 0015| (5) gross revenue, expenses, prizes paid and | 0016| the date, time and location of the fundraising event are | 0017| reported to the alcohol and gaming division of the regulation | 0018| and licensing department within thirty days after the event; | 0019| (6) the qualifying organization conducting the | 0020| fundraising event maintains records for a period of one year | 0021| after the date of the event that accurately show the gross | 0022| revenue generated by the event, details of the expenses of | 0023| conducting the event and details of how the gross revenue is | 0024| used, and the qualifying organization makes the records | 0025| available for review by the director of the alcohol and gaming | 0001| division of the regulation and licensing department or the | 0002| attorney general, or both, at their request; | 0003| (7) no more than five electronic gambling | 0004| devices are operated during the fundraising event; | 0005| (8) no person younger than the age of twenty- | 0006| one is allowed to participate in the operation or management of | 0007| the 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. As used in Subsection D of this section | 0012| "electronic gambling device" means a gambling device consisting | 0013| of an electronic device that simulates the play of any game of | 0014| chance, uses microprocessors and that, by chance or through | 0015| some combination of chance and skill, the device dispenses or | 0016| the player may otherwise receive cash, coins, tokens for free | 0017| games or credits that can be redeemed for cash, coins or | 0018| tokens; "electronic gambling" means the play of an electronic | 0019| gambling device. Electronic gambling conducted pursuant to the | 0020| provisions of this section shall be conducted in accordance | 0021| with regulations adopted by the regulation and licensing | 0022| department. Those regulations may provide for minimum | 0023| standards for security, restrictions of amounts wagered, limits | 0024| on amounts paid by electronic gambling devices, recordkeeping | 0025| by the operator and sponsor of the gaming event and monitoring, | 0001| electronic or otherwise, of the electronic gambling conducted. | 0002| F. The provisions of the Bingo and Raffle Act and | 0003| the New Mexico Lottery Act do not apply to the activities | 0004| described in Subsection D of this section. | 0005| G. Activities authorized by this section may be | 0006| conducted on licensed premises, as that term is defined in | 0007| Section 60-3A-3 NMSA 1978." | 0008| Section 31. EMERGENCY.--It is necessary for the public | 0009| peace, health and safety that this act take effect immediately. | 0010| |