0001|                           SENATE BILL 246
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          MICHAEL S. SANCHEZ
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO HORSE RACING; REQUIRING A GAMING OPERATOR LICENSEE
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0012|     THAT IS A RACETRACK TO PAY ONE PERCENT OF THE NET TAKE TO A
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0013|     FUND; CREATING THE CATASTROPHIC INJURY FUND FOR JOCKEYS;
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0014|     AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN
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0015|     APPROPRIATION.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|          Section 1.  Section 60-2E-47 NMSA 1978 (being Laws 1997,
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0019|     Chapter 190, Section 49) is amended to read:
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0020|          "60-2E-47.  GAMING TAX--IMPOSITION--ADMINISTRATION.--
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0021|               A.  An excise tax is imposed on the privilege of
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0022|     engaging in gaming activities in the state.  This tax shall be
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0023|     known as the "gaming tax".
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0024|               B.  The gaming tax is an amount equal to ten
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0025|     percent of the gross receipts of manufacturer licensees from
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0001|     the sale, lease or other transfer of gaming devices in or into
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0002|     the state, except receipts of a manufacturer from the sale,
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0003|     lease or other transfer to a licensed distributor for
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0004|     subsequent sale or lease may be excluded from gross receipts;
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0005|     ten percent of the gross receipts of distributor licensees
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0006|     from the sale, lease or other transfer of gaming devices in or
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0007|     into the state; and twenty-five percent of the net take of
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0008|     every gaming operator licensee. 
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0009|               C.  The gaming tax imposed on a licensee is in lieu
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0010|     of all state and local gross receipts taxes on that portion of
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0011|     the licensee's gross receipts attributable to gaming
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0012|     activities.
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0013|               D.  The gaming tax shall be administered and
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0014|     collected by the taxation and revenue department in
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0015|     cooperation with the board.  The provisions of the Tax
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0016|     Administration Act apply to the collection and administration
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0017|     of the tax.
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0018|               E.  In addition to the gaming tax, a gaming
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0019|     operator licensee that is a racetrack shall pay <s>[twenty]</s>
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0020|     <u>nineteen</u> percent of the net take to purses to be distributed
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0021|     in accordance with regulations adopted by the state racing
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0022|     commission. <u>A racetrack gaming operator licensee shall pay
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<u></u>0023| <u>    one percent of the net take to the catastrophic injury fund
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<u></u>0024| <u>    for jockeys.</u>  A racetrack gaming operator licensee shall
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0025|     spend no less than one-fourth of one percent of the net take
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0001|     of its gaming machines to fund or support programs for the
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0002|     treatment and assistance of compulsive gamblers. 
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0003|               F.  A nonprofit gaming operator licensee shall
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0004|     distribute at least eighty-eight percent of the balance of net
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0005|     take, after payment of the gaming tax and any income taxes,
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0006|     for charitable or educational purposes."
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0007|          Section 2.  [<u>NEW MATERIAL</u>] CATASTROPHIC INJURY FUND FOR
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0008|     JOCKEYS CREATED--ADMINISTRATION OF FUND--RULES.--
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0009|               A.  The "catastrophic injury fund for jockeys" is
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0010|     created in the state treasury.  Money in the fund shall be
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0011|     used to provide financial assistance and support to jockeys
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0012|     who suffer catastrophic injuries while engaged in horse racing
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0013|     at a licensed racetrack in New Mexico.
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0014|               B.  The catastrophic injury fund for jockeys is
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0015|     eligible to receive money from the following sources:
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0016|                    (1)  one percent of the net take from a gaming
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0017|     operator licensee that is a racetrack, as provided in Section
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0018|     60-2E-47 NMSA 1978;
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0019|                    (2)  legislative appropriations;
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0020|                    (3)  public and private grants; and
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0021|                    (4)  public and private gifts.
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0022|               C.  The state racing commission shall adopt rules
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0023|     that establish criteria for determining whether a person is
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0024|     eligible to qualify for financial assistance and support from
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0025|     the fund.
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<center>- 3 -</center>

0001|          Section 3.  EFFECTIVE DATE.--The effective date of the
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0002|     provisions of this act is July 1, 1998.
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0003|                              
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