0001| SENATE BILL 325
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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| JOHN ARTHUR SMITH
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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 GAMING; EXPANDING AUTHORIZED GAMING PURSUANT TO
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0012| THE GAMING CONTROL ACT; AMENDING, REPEALING AND ENACTING
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0013| SECTIONS OF THE NMSA 1978.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 60-2E-1 NMSA 1978 (being Laws 1997,
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0017| Chapter 190, Section 3) is amended to read:
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0018| "60-2E-1. SHORT TITLE.--[Sections 3 through 63 of this
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act] Chapter 60, Article 2E NMSA 1978 may be cited as the
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0020| "Gaming Control Act"."
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0021| Section 2. Section 60-2E-3 NMSA 1978 (being Laws 1997,
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0022| Chapter 190, Section 5) is amended to read:
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0023| "60-2E-3. DEFINITIONS.--As used in the Gaming Control
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0024| Act:
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0025| A. "administrator" means the executive director
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0001| or the security director;
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0002| [A.] B. "affiliate" means a person who,
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0003| directly or indirectly through one or more intermediaries,
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0004| controls, is controlled by or is under common control with a
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0005| specified person;
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0006| [B.] C. "affiliated company" means a company
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0007| that:
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0008| (1) controls, is controlled by or is under
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0009| common control with a company licensee; and
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0010| (2) is involved in gaming activities or
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0011| involved in the ownership of property on which gaming is
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0012| conducted;
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0013| [C.] D. "applicant" means a person who has
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0014| applied for a license or for approval of an act or transaction
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0015| for which approval is required or allowed pursuant to the
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0016| provisions of the Gaming Control Act;
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0017| [D.] E. "application" means a request for the
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0018| issuance of a license or for approval of an act or transaction
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0019| for which approval is required or allowed pursuant to the
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0020| provisions of the Gaming Control Act, but "application" does
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0021| not include a supplemental form or information that may be
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0022| required with the application;
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0023| [E.] F. "associated equipment" means equipment
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0024| or a mechanical, electromechanical or electronic contrivance,
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0025| component or machine used in connection with gaming;
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0001| [F.] G. "board" means the gaming control
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0002| board;
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0003|
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0004| H. "casino game" means a game, including
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0005| baccarat, beat the banker, blackjack, chemin de fer, chuck-a-
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0006| luck, craps, dai shu, fan-tan, faro, keno, klondike,
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0007| lotteries, monte, pai gow, panguini, pari-mutuel wagering and
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0008| simulcasting, poker in any form, progressive forms of casino
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0009| games, red dog, roulette, seven and a half, sic bo, twenty-
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0010| one, wheels of fortune and any other dice, table or card game
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0011| that is played on associated equipment and may be simulated
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0012| for play on a gaming machine;
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0013| [G.] I. "certification" means a notice of
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0014| approval by the board of a person required to be certified by
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0015| the board;
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0016| [H.] J. "certified technician" means a person
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0017| certified by a manufacturer licensee to repair and service
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0018| gaming devices, but who is prohibited from programming gaming
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0019| devices;
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0020| [I.] K. "company" means a corporation,
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0021| partnership, limited partnership, trust, association, joint
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0022| stock company, joint venture, limited liability company or
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0023| other form of business organization that is not a natural
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0024| person;
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0025| [J.] L. "distributor" means a person who
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0001| supplies gaming devices to a gaming operator but does not
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0002| manufacture gaming devices;
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0003| [K.] M. "equity security" means an interest in
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0004| a company that is evidenced by:
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0005| (1) voting stock or similar security;
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0006| (2) a security convertible into voting stock
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0007| or similar security, with or without consideration, or a
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0008| security carrying a warrant or right to subscribe to or
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0009| purchase voting stock or similar security;
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0010| (3) a warrant or right to subscribe to or
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0011| purchase voting stock or similar security; or
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0012| (4) a security having a direct or indirect
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0013| participation in the profits of the issuer;
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0014| [L.] N. "executive director" means the chief
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0015| administrative officer appointed by the board pursuant to
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0016| [Section 9 of the Gaming Control Act] Section 60-2E-7 NMSA
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0017| 1978;
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0018| [M.] O. "finding of suitability" means a
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0019| certification of approval issued by the board permitting a
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0020| person to be involved directly or indirectly with a licensee,
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0021| relating only to the specified involvement for which it is
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0022| made;
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0023| [N.] P. "game" means an activity in which,
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0024| upon payment of consideration, a player receives a prize or
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0025| other thing of value, the award of which is determined by
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0001| chance even though accompanied by some skill; "game" does not
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0002| include an activity played in a private residence in which no
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0003| person makes money for operating the activity except through
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0004| winnings as a player;
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0005| [O.] Q. "gaming" means offering a game for
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0006| play;
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0007| [P.] R. "gaming activity" means any endeavor
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0008| associated with the manufacture or distribution of gaming
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0009| devices or the conduct of gaming;
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0010| [Q.] S. "gaming device" means associated
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0011| equipment or a gaming machine and includes a system for
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0012| processing information that can alter the normal criteria of
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0013| random selection that affects the operation of a game or
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0014| determines the outcome of a game; "gaming device" does not
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0015| include a system or device that affects a game solely by
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0016| stopping its operation so that the outcome remains
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0017| undetermined;
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0018| [R.] T. "gaming employee" means a person
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0019| connected directly with a gaming activity; "gaming employee"
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0020| does not include:
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0021| (1) bartenders, cocktail servers or other
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0022| persons engaged solely in preparing or serving food or
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0023| beverages;
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0024| (2) secretarial or janitorial personnel;
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0025| (3) stage, sound and light technicians; or
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0001| (4) other nongaming personnel;
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0002| [S.] U. "gaming establishment" means the
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0003| premises on or in which gaming is conducted;
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0004| [T.] V. "gaming machine" means a mechanical,
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0005| electromechanical or electronic contrivance or machine that,
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0006| upon insertion of a coin, token or similar object, or upon
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0007| payment of any consideration, is available to play or operate
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0008| a game, whether the payoff is made automatically from the
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0009| machine or in any other manner;
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0010| [U.] W. "gaming operator" means a person who
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0011| conducts gaming;
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0012| [V.] X. "holding company" means a company that
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0013| directly or indirectly owns or has the power or right to
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0014| control a company that is an applicant or licensee, but a
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0015| company that does not have a beneficial ownership of more than
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0016| ten percent of the equity securities of a publicly traded
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0017| corporation is not a holding company;
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0018| [W.] Y. "immediate family" means natural
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0019| persons who are related to a specified natural person by
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0020| affinity or consanguinity in the first through the third
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0021| degree;
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0022| [X.] Z. "independent administrator" means a
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0023| person who administers an annuity, who is not associated in
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0024| any manner with the gaming operator licensee for which the
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0025| annuity was purchased and is in no way associated with the
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0001| person who will be receiving the annuity;
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0002| [Y.] AA. "institutional investor" means a
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0003| state or federal government pension plan or a person that
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0004| meets the requirements of a qualified institutional buyer as
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0005| defined in Rule 144A of the federal Securities Act of 1933,
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0006| and is:
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0007| (1) a bank as defined in Section 3(a)(6) of
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0008| the federal Securities Exchange Act of 1934;
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0009| (2) an insurance company as defined in
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0010| Section 2(a)(17) of the federal Investment Company Act of
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0011| 1940;
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0012| (3) an investment company registered under
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0013| Section 8 of the federal Investment Company Act of 1940;
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0014| (4) an investment adviser registered under
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0015| Section 203 of the federal Investment Advisers Act of 1940;
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0016| (5) collective trust funds as defined in
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0017| Section 3(c)(11) of the federal Investment Company Act of
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0018| 1940;
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0019| (6) an employee benefit plan or pension fund
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0020| that is subject to the federal Employee Retirement Income
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0021| Security Act of 1974, excluding an employee benefit plan or
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0022| pension fund sponsored by a publicly traded corporation
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0023| registered with the board; or
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0024| (7) a group comprised entirely of persons
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0025| specified in Paragraphs (1) through (6) of this subsection;
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0001| [Z.] BB. "intermediary company" means a
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0002| company that:
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0003| (1) is a holding company with respect to a
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0004| company that is an applicant or licensee; and
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0005| (2) is a subsidiary with respect to any
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0006| holding company;
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0007| [AA.] CC. "key executive" means an executive
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0008| of a licensee or other person having the power to exercise
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0009| significant influence over decisions concerning any part of
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0010| the licensed operations of the licensee or whose compensation
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0011| exceeds an amount established by the board in a regulation;
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0012| [BB.] DD. "license" means an authorization
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0013| required by the board for engaging in gaming activities;
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0014| [CC.] EE. "licensee" means a person to whom a
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0015| valid license has been issued;
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0016| FF. "liquor establishment" means a person
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0017| licensed pursuant to Section 60-6A-3 NMSA 1978 to dispense
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0018| alcoholic beverages whose licensed premises as defined in
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0019| Section 60-3A-3 NMSA 1978 have permanent seating capacity for
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0020| no fewer than thirty patrons and who serves beer, wine and
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0021| spirituous liquors;
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0022| [DD.] GG. "manufacturer" means a person who
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0023| manufactures, fabricates, assembles, produces, programs or
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0024| makes modifications to any gaming device for use or play in
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0025| New Mexico or for sale, lease or distribution outside New
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0001| Mexico from any location within New Mexico;
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0002| [EE.] HH. "net take" means the total of the
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0003| following, less the total of all cash paid out as losses to
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0004| winning patrons and those amounts paid to purchase annuities
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0005| to fund losses paid to winning patrons over several years by
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0006| independent administrators:
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0007| (1) cash received from patrons for playing a
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0008| game;
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0009| (2) cash received in payment for credit
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0010| extended by a licensee to a patron for playing a game; and
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0011| (3) compensation received for conducting a
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0012| game in which the licensee is not a party to a wager;
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0013| [FF.] II. "nonprofit organization" means:
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0014| (1) a bonafide club that is described in
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0015| Section 501 (c)(7) of the federal Internal Revenue Code of
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0016| 1986 and that is exempt from federal income taxation pursuant
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0017| to Section 501(a) of that code;
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0018| [(1)] (2) a bona fide chartered or
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0019| incorporated branch, lodge, order or association [in
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existence in New Mexico prior to January 1, 1997] of a
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0021| fraternal organization that is described in Section 501(c)(8)
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0022| or (10) of the federal Internal Revenue Code of 1986 and that
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0023| is exempt from federal income taxation pursuant to Section
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0024| 501(a) of that code; or
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0025| [(2)] (3) a bona fide chartered or
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0001| incorporated post, auxiliary unit or society of, or a trust or
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0002| foundation for the post or auxiliary unit [in existence in
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New Mexico prior to January 1, 1997] of a veterans'
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0004| organization that is described in Section 501(c)(19) or (23)
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0005| of the federal Internal Revenue Code of 1986 and that is
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0006| exempt from federal income taxation pursuant to Section 501(a)
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0007| of that code;
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0008| [GG.] JJ. "person" means a legal entity;
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0009| [HH.] KK. "premises" means land, together with
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0010| all buildings, improvements and personal property located on
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0011| the land;
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0012| [II.] LL. "progressive jackpot" means a prize
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0013| that increases over time or as gaming machines that are linked
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0014| to a progressive system are played and upon conditions
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0015| established by the board may be paid by an annuity;
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0016| [JJ.] MM. "progressive system" means one or
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0017| more gaming machines linked to one or more common progressive
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0018| jackpots;
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0019| [KK.] NN. "publicly traded corporation" means
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0020| a corporation that:
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0021| (1) has one or more classes of securities
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0022| registered pursuant to the securities laws of the United
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0023| States or New Mexico;
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0024| (2) is an issuer subject to the securities
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0025| laws of the United States or New Mexico; or
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0001| (3) has one or more classes of securities
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0002| registered or is an issuer pursuant to applicable foreign laws
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0003| that the board finds provide protection for institutional
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0004| investors that is comparable to or greater than the stricter
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0005| of the securities laws of the United States or New Mexico;
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0006| OO. "qualified county" means a class B county:
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0007| (1) having a 1995 net taxable value of
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0008| property, as that term is defined in the Property Tax Code, of
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0009| over three hundred million dollars ($300,000,000) and having a
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0010| population as determined by the 1990 federal decennial census
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0011| of not more than twenty-five thousand persons and not less
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0012| than twenty thousand persons;
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0013| (2) having a 1995 net taxable value of
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0014| property, as that term is defined in the Property Tax Code, of
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0015| over three hundred million dollars ($300,000,000) and having a
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0016| population as determined by the 1990 federal decennial census
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0017| of not more than twelve thousand five hundred persons and not
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0018| less than twelve thousand persons; or
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0019| (3) having a 1995 net taxable value of
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0020| property, as that term is defined in the Property Tax Code, of
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0021| under three hundred million dollars ($300,000,000) and having
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0022| a population as determined by the 1990 federal decennial
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0023| census of not more than thirteen thousand persons and not less
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0024| than twelve thousand five hundred persons;
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0025| PP. "resort" means a facility for public lodging
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0001| with at least one hundred fifty guest rooms that has on its
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0002| premises a permanent affiliated restaurant with banquet or
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0003| restaurant facilities to accommodate at least one hundred
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0004| persons simultaneously and is located in a qualified county;
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0005| [LL.] QQ. "registration" means a board action
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0006| that authorizes a company to be a holding company with respect
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0007| to a company that holds or applies for a license or that
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0008| relates to other persons required to be registered pursuant to
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0009| the Gaming Control Act;
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0010| RR. "security director" means the chief security
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0011| officer appointed by the board pursuant to Section 60-2E-7
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0012| NMSA 1978;
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0013| [MM.] SS. "subsidiary" means a company, all or
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0014| a part of whose outstanding equity securities are owned,
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0015| subject to a power or right of control or held, with power to
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0016| vote, by a holding company or intermediary company; and
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0017| [NN.] TT. "work permit" means a card,
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0018| certificate or permit issued by the board, whether denominated
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0019| as a work permit, registration card or otherwise, authorizing
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0020| the employment of the holder as a gaming employee."
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0021| Section 3. Section 60-2E-5 NMSA 1978 (being Laws 1997,
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0022| Chapter 190, Section 7) is amended to read:
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0023| "60-2E-5. GAMING CONTROL BOARD CREATED.--
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0024| A. The "gaming control board" is created and
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0025| consists of five members [Three members are] appointed by
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0001| the governor with the advice and consent of the senate [and
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two members are ex officio: the chairman of the state racing
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commission and the chairman of the board of the New Mexico
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lottery authority]. All members of the board shall be
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0005| residents of New Mexico and citizens of the United States.
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0006| At least one [appointed] member of the board shall have a
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0007| minimum of five years of previous employment in a supervisory
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0008| and administrative position in a law enforcement agency; at
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0009| least one [appointed] member of the board shall be a
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0010| certified public accountant in New Mexico who has had at least
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0011| five years of experience in public accountancy; [and] at
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0012| least one [appointed] member of the board shall be an
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0013| attorney who has been admitted to practice before the supreme
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0014| court of New Mexico; and at least one member of the board
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0015| shall have had at least five years of previous employment in a
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0016| top-level supervisory and administrative position in a
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0017| governmental gaming regulatory agency.
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0018| B. The [appointed] members of the board shall be
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0019| appointed for terms of five years, except, of the members who
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0020| are first appointed, the member with [law enforcement]
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0021| government gaming regulation experience shall be appointed
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0022| for a term of five years; the member with law enforcement
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0023| experience shall be appointed for a term of four years; the
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0024| member who is a certified public accountant shall be
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0025| appointed for a term of four years; [and] the member who is
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0001| an attorney shall be appointed for a term of three years; and
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0002| the remaining member shall be appointed for a term of two
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0003| years. Thereafter, all members shall be appointed for terms
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0004| of five years. No person shall serve as a board member for
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0005| more than two consecutive terms or ten years total.
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0006| C. No person appointed to the board may be
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0007| employed in any other capacity or shall in any manner receive
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0008| compensation for services rendered to any person or entity
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0009| other than the board while a member of the board.
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0010| D. A vacancy on the board [of an appointed
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member] shall be filled within thirty days by appointment
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0012| by the governor with the advice and consent of the senate for
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0013| the unexpired portion of the term in which the vacancy occurs.
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0014| A person appointed to fill a vacancy shall meet all
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0015| qualification requirements of the office established in this
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0016| section.
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0017| E. The governor shall choose a chairman annually
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0018| from the board's [appointed] membership.
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0019| F. No more than three members of the board shall
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0020| be from the same political party.
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0021| G. The [appointed] members of the board shall be
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0022| full-time state officials and shall receive a salary set by
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0023| the governor of no less than sixty thousand dollars ($60,000)
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0024| annually.
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0025| H. The department of public safety shall conduct
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0001| background investigations of all members of the board prior to
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0002| confirmation by the senate. To assist the department in the
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0003| background investigation, a prospective board member shall
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0004| furnish a disclosure statement to the department on a form
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0005| provided by the department containing that information deemed
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0006| by the department as necessary for completion of a detailed
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0007| and thorough background investigation. The required
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0008| information shall include at least:
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0009| (1) a full set of fingerprints made by a law
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0010| enforcement agency on forms supplied by the department;
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0011| (2) complete information and details with
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0012| respect to the prospective board member's antecedents, habits,
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0013| immediate family, character, criminal record, business
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0014| activities, financial affairs and business associates covering
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0015| at least a ten-year period immediately preceding the date of
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0016| submitting the disclosure statement;
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0017| (3) complete disclosure of any equity
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0018| interest held by the prospective board member or a member of
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0019| his immediate family in a company that is an applicant or
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0020| licensee or an affiliate, affiliated company, intermediary
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0021| company or holding company in respect to an applicant or
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0022| licensee; and
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0023| (4) the names and addresses of members of the
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0024| immediate family of the prospective board member.
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0025| I. No person may be appointed or confirmed as a
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0001| member of the board if that person or member of his immediate
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0002| family holds an equity interest in a company that is an
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0003| applicant or licensee or an affiliate, affiliated company,
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0004| intermediary company or holding company in respect to an
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0005| applicant or licensee.
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0006| J. A prospective board member shall provide
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0007| assistance and information requested by the department of
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0008| public safety or the governor and shall cooperate in any
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0009| inquiry or investigation of the prospective board member's
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0010| fitness or qualifications to hold the office to which he is
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0011| appointed. The senate shall not confirm a prospective board
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0012| member if it has reasonable cause to believe that the
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0013| prospective board member has:
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0014| (1) knowingly misrepresented or omitted a
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0015| material fact required in a disclosure statement;
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0016| (2) been convicted of a felony, a gaming
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0017| related offense or a crime involving fraud, theft or moral
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0018| turpitude within ten years immediately preceding the date of
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0019| submitting a disclosure statement required pursuant to the
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0020| provisions of Subsection H of this section;
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0021| (3) exhibited a history of willful disregard
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0022| for the gaming laws of this or any other state or the United
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0023| States; or
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0024| (4) had a permit or license issued pursuant
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0025| to the gaming laws of this or any other state or the United
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0001| States permanently suspended or revoked for cause.
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0002| K. At the time of taking office, each board member
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0003| shall file with the secretary of state a sworn statement that
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0004| he is not disqualified under the provisions of Subsection I of
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0005| this section."
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0006| Section 4. Section 60-2E-7 NMSA 1978 (being Laws 1997,
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0007| Chapter 190, Section 9) is amended to read:
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0008| "60-2E-7. BOARD'S POWERS AND DUTIES.--
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0009| A. The board shall implement the state's policy on
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0010| gaming consistent with the provisions of the Gaming Control
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0011| Act. It has the duty to fulfill all responsibilities assigned
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0012| to it pursuant to that act, and it has all authority necessary
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0013| to carry out those responsibilities. It may delegate
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0014| authority to the executive director, but it retains
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0015| accountability. The board is an adjunct agency.
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0016| B. The board shall:
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0017| (1) employ the [executive director]
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0018| administrators;
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0019| (2) make the final decision on issuance,
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0020| denial, suspension and revocation of all licenses pursuant to
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0021| and consistent with the provisions of the Gaming Control Act;
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0022| (3) develop, adopt and promulgate all
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0023| regulations necessary to implement and administer the
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0024| provisions of the Gaming Control Act;
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0025| (4) conduct itself, or employ a hearing
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0001| officer to conduct, all hearings required by the provisions of
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0002| the Gaming Control Act and other hearings it deems appropriate
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0003| to fulfill its responsibilities;
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0004| (5) meet at least once each month; and
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0005| (6) prepare and submit an annual report in
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0006| December of each year to the governor and the legislature,
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0007| covering activities of the board in the most recently
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0008| completed fiscal year, a summary of gaming activities in the
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0009| state and any recommended changes in or additions to the laws
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0010| relating to gaming in the state.
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0011| C. The board may:
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0012| (1) impose civil fines not to exceed twenty-
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0013| five thousand dollars ($25,000) for the first violation and
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0014| fifty thousand dollars ($50,000) for subsequent violations of
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0015| any prohibitory provision of the Gaming Control Act or any
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0016| prohibitory provision of a regulation adopted pursuant to that
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0017| act;
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0018| (2) conduct investigations;
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0019| (3) subpoena persons and documents to compel
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0020| access to or the production of documents and records,
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0021| including books and memoranda, in the custody or control of
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0022| any licensee and enforce compliance with the subpoena by
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0023| district court action;
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0024| (4) compel by subpoena the appearance of
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0025| employees of a licensee or other persons for the purpose of
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0001| ascertaining compliance with provisions of the Gaming Control
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0002| Act or a regulation adopted pursuant to its provisions and
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0003| enforce compliance with the subpoena by district court
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0004| action;
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0005| (5) administer oaths and take depositions to
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0006| the same extent and subject to the same limitations as would
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0007| apply if the deposition were pursuant to discovery rules in a
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0008| civil action in the district court;
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0009| (6) sue and be sued subject to the
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0010| limitations of the Tort Claims Act;
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0011| (7) contract for the provision of goods and
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0012| services necessary to carry out its responsibilities;
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0013| (8) conduct audits of applicants, licensees
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0014| and persons affiliated with licensees;
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0015| (9) inspect, examine, photocopy and audit all
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0016| documents and records of an applicant or licensee relevant to
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0017| his gaming activities in the presence of the applicant or
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0018| licensee or his agent;
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0019| (10) require verification of income and all
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0020| other matters pertinent to the gaming activities of an
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0021| applicant or licensee affecting the enforcement of any
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0022| provision of the Gaming Control Act;
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0023| (11) inspect all places where gaming
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0024| activities are conducted and inspect all property connected
|
0025| with gaming in those places;
|
- 19 -
0001| (12) summarily seize, remove and impound from
|
0002| places inspected any gaming devices, property connected with
|
0003| gaming, documents or records for the purpose of examination or
|
0004| inspection;
|
0005| (13) inspect, examine, photocopy and audit
|
0006| all documents and records of any affiliate of an applicant or
|
0007| licensee [who] that the board knows or reasonably suspects
|
0008| is involved in the financing, operation or management of the
|
0009| applicant or licensee. The inspection, examination,
|
0010| photocopying and audit shall be in the presence of a
|
0011| representative of the affiliate or its agent when practicable;
|
0012| and
|
0013| (14) except for the powers specified in
|
0014| Paragraphs (1), (3) and (4) of this subsection, carry out
|
0015| all or part of the foregoing powers and activities through the
|
0016| executive director.
|
0017| D. The board shall monitor all activity authorized
|
0018| in an Indian Gaming Compact between the state and an Indian
|
0019| nation, tribe or pueblo. The board shall appoint the state
|
0020| gaming representative for the purposes of the compact."
|
0021| Section 5. Section 60-2E-9 NMSA 1978 (being Laws 1997,
|
0022| Chapter 190, Section 11) is amended to read:
|
0023| "60-2E-9. [EXECUTIVE DIRECTOR] ADMINISTRATORS--
|
0024| EMPLOYMENT--QUALIFICATIONS.--
|
0025| A. [The] Two administrators, an executive
|
- 20 -
0001| director and a security director shall be employed by,
|
0002| report directly to and serve at the pleasure of the board.
|
0003| B. The executive director shall have had at least
|
0004| [five] four years of responsible supervisory
|
0005| administrative experience in [a governmental gaming
|
regulatory agency] public or business administration.
|
0007| [C. The executive director shall receive an
|
annual salary to be set by the board, but not to exceed
|
eighty-five thousand dollars ($85,000) per year.]
|
0010| C. The security director shall have had at least
|
0011| five years of responsible supervisory administrative
|
0012| experience in a law enforcement agency, have graduated from a
|
0013| law enforcement academy with a minimum of four hundred hours
|
0014| of basic police training and have at least a bachelor's degree
|
0015| from an accredited post-secondary educational institution."
|
0016| Section 6. Section 60-2E-10 NMSA 1978 (being Laws 1997,
|
0017| Chapter 190, Section 12) is repealed and a new Section
|
0018| 60-2E-10 NMSA 1978 is enacted to read:
|
0019| "60-2E-10. [NEW MATERIAL] EXECUTIVE DIRECTOR--DUTIES.-
|
0020| -
|
0021| A. The executive director shall:
|
0022| (1) implement the policies of the board that
|
0023| are not assigned to the security director;
|
0024| (2) employ all personnel of the board, except
|
0025| security personnel, who shall be covered employees pursuant to
|
- 21 -
0001| the provisions of the Personnel Act;
|
0002| (3) take administrative action by issuing
|
0003| orders and instructions consistent with the Gaming Control Act
|
0004| and regulations of the board to ensure implementation of and
|
0005| compliance with the provisions of that act and those
|
0006| regulations;
|
0007| (4) prepare an annual budget for the board
|
0008| for divisions under his direction and submit it to the board;
|
0009| (5) coordinate and cooperate with the
|
0010| security director at all times to the extent possible in
|
0011| matters affecting activities of the board and its personnel;
|
0012| and
|
0013| (6) make recommendations to the board of
|
0014| proposed regulations and any legislative changes needed to
|
0015| provide better administration of the Gaming Control Act and
|
0016| fair and efficient regulation of gaming activities in the
|
0017| state.
|
0018| B. The executive director may:
|
0019| (1) establish subdivisions of the board as he
|
0020| determines are appropriate to administer the provisions of the
|
0021| Gaming Control Act;
|
0022| (2) delegate authority to subordinates as he
|
0023| deems necessary and appropriate, clearly delineating the
|
0024| delegated authority and the limitations on it, if any;
|
0025| (3) conduct research and studies that will
|
- 22 -
0001| improve the operations of the board and the provision of
|
0002| services to the citizens of the state; and
|
0003| (4) provide courses of instruction and
|
0004| practical training for employees of the board and other
|
0005| persons involved in the activities regulated by the board with
|
0006| the objectives of improving operations of the board and
|
0007| achieving compliance with the law and regulations."
|
0008| Section 7. A new Section 60-2E-10.1 NMSA 1978 is enacted
|
0009| to read:
|
0010| "60-2E-10.1. [NEW MATERIAL] SECURITY DIRECTOR--
|
0011| DUTIES.--
|
0012| A. The security director shall:
|
0013| (1) implement all policies of the board
|
0014| assigned to him by the board;
|
0015| (2) employ all security personnel, some of
|
0016| whom shall be designated as New Mexico peace officers subject
|
0017| to proper certification pursuant to the Law Enforcement
|
0018| Training Act and all of whom shall be covered employees
|
0019| pursuant to the provisions of the Personnel Act;
|
0020| (3) conduct background investigations of
|
0021| employees of the board and applicants, their affiliates and
|
0022| employees as required by the board;
|
0023| (4) prepare an annual budget for the security
|
0024| operations of the board and submit it to the board for
|
0025| approval;
|
- 23 -
0001| (5) conduct internal investigations of the
|
0002| board or contract with the attorney general to conduct
|
0003| investigations of the board after consultation with and
|
0004| approval by a majority of the board members;
|
0005| (6) conduct investigations of gaming
|
0006| activities and licensees necessary to provide for the secure
|
0007| operation of gaming activities in the state and the
|
0008| enforcement of the provisions of the Gaming Control Act and
|
0009| its regulations;
|
0010| (7) take administrative action by issuing
|
0011| orders and instructions required for the security of the board
|
0012| consistent with the Gaming Control Act and regulations of the
|
0013| board to ensure implementation of and compliance with the
|
0014| provisions of that act and those regulations;
|
0015| (8) coordinate and cooperate with the
|
0016| executive director at all times to the extent possible in
|
0017| security matters affecting activities of the board and its
|
0018| personnel; and
|
0019| (9) make recommendations to the board of
|
0020| proposed regulations and any legislative changes needed to
|
0021| make the activities of licensees more secure and to provide
|
0022| more effective and efficient security of the board or the
|
0023| activities licensed pursuant to the provisions of the Gaming
|
0024| Control Act.
|
0025| B. The security director may:
|
- 24 -
0001| (1) establish units to fulfill his security
|
0002| responsibilities as he determines are appropriate for the
|
0003| secure operation of the board, the investigation of gaming
|
0004| activities and licensees and the enforcement of the provisions
|
0005| of the Gaming Control Act and its regulations;
|
0006| (2) delegate authority to subordinates as he
|
0007| deems necessary and appropriate, clearly delineating the
|
0008| delegated authority and the limitations on it, if any; and
|
0009| (3) provide courses of instruction and
|
0010| practical training for employees of the security division and
|
0011| for the security personnel of licensees with the objective of
|
0012| providing effective, efficient and secure operation of the
|
0013| board and gaming activities in the state."
|
0014| Section 8. Section 60-2E-11 NMSA 1978 (being Laws 1997,
|
0015| Chapter 190, Section 13) is amended to read:
|
0016| "60-2E-11. INVESTIGATION OF [EXECUTIVE DIRECTOR]
|
0017| ADMINISTRATOR CANDIDATES AND EMPLOYEES.--
|
0018| A. A person who is under consideration in the
|
0019| final selection process for appointment as [the executive
|
director] an administrator shall file a disclosure
|
0021| statement pursuant to the requirements of this section, and
|
0022| the board shall not make an appointment of a person as
|
0023| [executive director] an administrator until a background
|
0024| investigation is completed by the department of public safety
|
0025| and a report is made to the board.
|
- 25 -
0001| B. A person who has reached the final selection
|
0002| process for employment by [the executive director] an
|
0003| administrator shall file a disclosure statement pursuant to
|
0004| the requirements of this section if the [executive director]
|
0005| administrator or the board has directed the person do so.
|
0006| The person shall not be further considered for employment
|
0007| until a background investigation is completed by the
|
0008| department of public safety and a report is made to the
|
0009| [executive director] administrator proposing his
|
0010| employment.
|
0011| C. Forms for the disclosure statements required by
|
0012| this section shall be developed by the board in cooperation
|
0013| with the department of public safety. At least the following
|
0014| information shall be required of a person submitting a
|
0015| statement:
|
0016| (1) a full set of fingerprints made by a law
|
0017| enforcement agency on forms supplied by the board;
|
0018| (2) complete information and details with
|
0019| respect to the person's antecedents, habits, immediate family,
|
0020| character, criminal record, business activities and business
|
0021| associates, covering at least a ten-year period immediately
|
0022| preceding the date of submitting the disclosure statement; and
|
0023| (3) a complete description of any equity
|
0024| interest held in a business connected with the gaming
|
0025| industry.
|
- 26 -
0001| D. In preparing an investigative report, the
|
0002| department of public safety may request and receive criminal
|
0003| history information from the federal bureau of investigation
|
0004| or any other law enforcement agency or organization. The
|
0005| department of public safety shall maintain confidentiality
|
0006| regarding information received from a law enforcement agency
|
0007| that may be imposed by the agency as a condition for providing
|
0008| the information to the department.
|
0009| E. A person required to file a disclosure
|
0010| statement shall provide any assistance or information
|
0011| requested by the department of public safety or the board and
|
0012| shall cooperate in any inquiry or investigation.
|
0013| F. If information required to be included in a
|
0014| disclosure statement changes or if information is added after
|
0015| the statement is filed, the person required to file it shall
|
0016| provide that information in writing to the person requesting
|
0017| the investigation. The supplemental information shall be
|
0018| provided within thirty days after the change or addition.
|
0019| G. The board shall not appoint a person as
|
0020| [executive director] an administrator, and [the executive
|
director] an administrator shall not employ a person, if
|
0022| the board or the [executive director] administrator has
|
0023| reasonable cause to believe that the person has:
|
0024| (1) knowingly misrepresented or omitted a
|
0025| material fact required in a disclosure statement;
|
- 27 -
0001| (2) been convicted of a felony, a gaming
|
0002| related offense or a crime involving fraud, theft or moral
|
0003| turpitude within ten years immediately preceding the date of
|
0004| submitting a disclosure statement required pursuant to this
|
0005| section;
|
0006| (3) exhibited a history of willful disregard
|
0007| for the gaming laws of this or any other state or the United
|
0008| States; or
|
0009| (4) had a permit or license issued pursuant
|
0010| to the gaming laws of this or any other state or the United
|
0011| States permanently suspended or revoked for cause.
|
0012| H. Both the board and the [executive director may
|
exercise] administrators have absolute discretion in
|
0014| exercising their respective appointing and employing powers."
|
0015| Section 9. Section 60-2E-12 NMSA 1978 (being Laws 1997,
|
0016| Chapter 190, Section 14) is amended to read:
|
0017| "60-2E-12. CONFLICTS OF INTEREST--BOARD--[EXECUTIVE
|
DIRECTOR] ADMINISTRATOR.--
|
0019| A. In addition to all other provisions of New
|
0020| Mexico law regarding conflicts of interest of state officials
|
0021| and employees, a member of the board, [the executive
|
director] an administrator or a person in the immediate
|
0023| family of or residing in the household of any of the foregoing
|
0024| persons shall not:
|
0025| (1) directly or indirectly, as a proprietor
|
- 28 -
0001| or as a member, stockholder, director or officer of a company,
|
0002| have an interest in a business engaged in gaming activities in
|
0003| this or another jurisdiction; or
|
0004| (2) accept or agree to accept any economic
|
0005| opportunity, gift, loan, gratuity, special discount, favor,
|
0006| hospitality or service having an aggregate value of one
|
0007| hundred dollars ($100) or more in any calendar year from a
|
0008| licensee or applicant.
|
0009| B. If a member of the board, [the executive
|
director] an administrator or a person in the immediate
|
0011| family of or residing in the household of [a member of the
|
board or the executive director] any of the foregoing
|
0013| persons violates a provision of this section, the member of
|
0014| the board or [executive director] administrator shall be
|
0015| removed from office. A board member shall be removed by the
|
0016| governor, and [the executive director] an administrator
|
0017| shall be removed from his position by the board."
|
0018| Section 10. Section 60-2E-13 NMSA 1978 (being Laws 1997,
|
0019| Chapter 190, Section 15) is amended to read:
|
0020| "60-2E-13. ACTIVITIES REQUIRING LICENSING.--
|
0021| A. A person shall not conduct gaming unless he is
|
0022| licensed as a gaming operator.
|
0023| B. A person shall not sell, supply or distribute
|
0024| any gaming device or associated equipment for use or play in
|
0025| this state or for use or play outside of this state from a
|
- 29 -
0001| location within this state unless he is licensed as a
|
0002| distributor or manufacturer, but a gaming operator licensee
|
0003| may sell or trade in a gaming device or associated equipment
|
0004| to a gaming operator licensee, distributor licensee or
|
0005| manufacturer licensee.
|
0006| C. A person shall not manufacture, fabricate,
|
0007| assemble, program or make modifications to a gaming device or
|
0008| associated equipment for use or play in this state or for use
|
0009| or play outside of this state from any location within this
|
0010| state unless he is a manufacturer licensee. A manufacturer
|
0011| licensee may sell, supply or distribute only the gaming
|
0012| devices or associated equipment that he manufactures,
|
0013| fabricates, assembles, programs or modifies.
|
0014| D. A gaming operator licensee or a person other
|
0015| than a manufacturer licensee or distributor licensee shall not
|
0016| possess or control a place where there is an unlicenced gaming
|
0017| machine. Any unlicenced gaming machine, except one in the
|
0018| possession of a licensee while awaiting transfer to a gaming
|
0019| operator licensee for licensure of the machine, is subject to
|
0020| forfeiture and confiscation by any law enforcement agency or
|
0021| peace officer.
|
0022| E. A person shall not service or repair a gaming
|
0023| device or associated equipment unless he is licensed as a
|
0024| manufacturer, is employed by a manufacturer licensee or is a
|
0025| certified technician [certified by a manufacturer] and
|
- 30 -
0001| employed by a distributor licensee or a gaming operator
|
0002| licensee.
|
0003| F. A person shall not engage in any activity for
|
0004| which the board requires a license or permit without obtaining
|
0005| the license or permit.
|
0006| G. Except as provided in Subsection B of this
|
0007| section, a person shall not purchase, lease or acquire
|
0008| possession of a gaming device or associated equipment except
|
0009| from a licensed distributor or manufacturer.
|
0010| [H. A distributor licensee may receive a
|
percentage of the amount wagered, the net take or other
|
measure related to the operation of a gaming machine as a
|
payment pursuant to a lease or other arrangement for
|
furnishing a gaming machine, but the board shall adopt a
|
regulation setting the maximum allowable percentage.]"
|
0016| Section 11. Section 60-2E-15 NMSA 1978 (being Laws 1997,
|
0017| Chapter 190, Section 17) is amended to read:
|
0018| "60-2E-15. LICENSE--CERTIFICATION [AND]--WORK PERMIT
|
0019| FEES.--
|
0020| A. License and other fees shall be established by
|
0021| board regulation but shall not exceed the following amounts:
|
0022| (1) manufacturer's license, twenty thousand
|
0023| dollars ($20,000) for the initial license and five thousand
|
0024| dollars ($5,000) for annual renewal;
|
0025| (2) distributor's license, ten thousand
|
- 31 -
0001| dollars ($10,000) for the initial license and one thousand
|
0002| dollars ($1,000) for annual renewal;
|
0003| (3) gaming operator's license for a
|
0004| racetrack, fifty thousand dollars ($50,000) for the initial
|
0005| license and ten thousand dollars ($10,000) for annual renewal;
|
0006| (4) gaming operator's license for a nonprofit
|
0007| organization, one thousand dollars ($1,000) for the initial
|
0008| license and two hundred dollars ($200) for annual renewal;
|
0009| (5) gaming operator's license for a liquor
|
0010| establishment, one thousand dollars ($1,000) for the initial
|
0011| license and five hundred dollars ($500) for annual renewal;
|
0012| (6) gaming operator's license for a resort,
|
0013| fifty thousand dollars ($50,000) for the initial license and
|
0014| twenty thousand dollars ($20,000) for annual renewal;
|
0015| [(5)] (7) for each separate gaming
|
0016| machine licensed to a person holding an operator's license,
|
0017| five hundred dollars ($500) for the initial license and one
|
0018| hundred dollars ($100) for annual renewal; and
|
0019| [(6)] (8) work permit, one hundred
|
0020| dollars ($100) annually.
|
0021| B. The board shall establish the fee for
|
0022| certifications or other actions by regulation, but no fee
|
0023| established by the board shall exceed one thousand dollars
|
0024| ($1,000), except for fees established pursuant to Paragraph
|
0025| (18) of Subsection C of Section [10 of the Gaming Control
|
- 32 -
Act] 60-2E-8 NMSA 1978.
|
0002| C. All license, certification or work permit fees
|
0003| shall be paid to the board at the time and in the manner
|
0004| established by regulations of the board."
|
0005| Section 12. Section 60-2E-26 NMSA 1978 (being Laws 1997,
|
0006| Chapter 190, Section 28) is amended to read:
|
0007| "60-2E-26. GAMING OPERATOR LICENSEES--GENERAL
|
0008| PROVISIONS--BUSINESS PLAN--PLAYER AGE LIMIT--RESTRICTIONS.--
|
0009| A. An applicant for licensure as a gaming operator
|
0010| shall submit with the application a plan for assisting in the
|
0011| prevention, education and treatment of compulsive gambling.
|
0012| The plan shall include regular educational training sessions
|
0013| for employees. Plan approval is a condition of issuance of
|
0014| the license.
|
0015| B. An applicant for licensure as a gaming operator
|
0016| shall submit with the application a proposed business plan.
|
0017| The plan shall include at least:
|
0018| (1) a floor plan of the area to be used for
|
0019| gaming [machine] operations;
|
0020| (2) an advertising and marketing plan;
|
0021| (3) the proposed placement and number of
|
0022| gaming machines and other games for those persons applying
|
0023| for a gaming operator's license for a resort;
|
0024| (4) a financial control plan;
|
0025| (5) a security plan;
|
- 33 -
0001| (6) a staffing plan for gaming [machine]
|
0002| operations; and
|
0003| (7) details of any proposed progressive
|
0004| systems.
|
0005| C. A gaming operator licensee shall be granted a
|
0006| license to operate a specific number of machines at a gaming
|
0007| establishment identified in the license application and shall
|
0008| be granted a license for each gaming machine.
|
0009| D. A gaming operator licensee who desires to
|
0010| change the number of machines in operation at a gaming
|
0011| establishment shall apply to the board for an amendment to his
|
0012| license authorizing a change in the number of machines.
|
0013| E. Gaming machines, and other games in a resort
|
0014| gaming establishment, may be available for play only in an
|
0015| area restricted to persons twenty-one years of age or older.
|
0016| F. A gaming operator licensee shall erect a
|
0017| permanent physical barrier to allow for multiple uses of the
|
0018| premises by persons of all ages. For purposes of this
|
0019| subsection, "permanent physical barrier" means a floor-to-
|
0020| ceiling wall separating the general areas from the restricted
|
0021| areas. The entrance to the area where gaming machines, or
|
0022| other games in a resort establishment, are located shall
|
0023| display a sign that the premises are restricted to persons
|
0024| twenty-one years of age or older. Persons under the age of
|
0025| twenty-one shall not enter the area where gaming machines, or
|
- 34 -
0001| other games in a resort establishment, are located.
|
0002| G. A gaming operator licensee shall not have
|
0003| automated teller machines in the area restricted pursuant to
|
0004| Subsection F of this section.
|
0005| H. A gaming operator licensee shall not provide,
|
0006| allow, contract or arrange to provide alcohol or food for no
|
0007| charge or at reduced prices as an incentive or enticement for
|
0008| patrons to game.
|
0009| I. Only a liquor establishment, a racetrack
|
0010| licensed by the state racing commission, a resort in a
|
0011| qualified county or a nonprofit organization may apply for or
|
0012| be issued a gaming operator's license. No other persons are
|
0013| qualified to apply for or be issued a gaming operator's
|
0014| license pursuant to the Gaming Control Act."
|
0015| Section 13. A new Section 60-2E-28.1 NMSA 1978 is
|
0016| enacted to read:
|
0017| "60-2E-28.1. [NEW MATERIAL] GAMING OPERATOR
|
0018| LICENSEES--SPECIAL CONDITIONS FOR RESORTS--NUMBER OF GAMING
|
0019| MACHINES--CASINO GAMING PERMITTED--DAYS AND HOURS OF
|
0020| OPERATION.--
|
0021| A. One resort located within each qualified county
|
0022| in which the majority of the qualified registered electors
|
0023| voting in a local option election pursuant to the Gaming
|
0024| Control Act on whether casino gaming should be permitted at a
|
0025| resort within that county has voted to permit casino gaming at
|
- 35 -
0001| a resort may be issued a gaming operator's license to offer
|
0002| licensed gaming machines and casino gaming on its premises.
|
0003| B. A resort licensee may offer for play a number
|
0004| of gaming machines to be determined by the board.
|
0005| C. The board shall place no restrictions on the
|
0006| hours or days during which gaming machines or casino games may
|
0007| be played at a resort."
|
0008| Section 14. A new Section 60-2E-28.2 NMSA 1978 is
|
0009| enacted to read:
|
0010| "60-2E-28.2. [NEW MATERIAL] GAMING OPERATOR
|
0011| LICENSEES--SPECIAL CONDITIONS FOR LIQUOR
|
0012| ESTABLISHMENTS--NUMBER OF GAMING MACHINES--DAYS AND HOURS OF
|
0013| OPERATION.--
|
0014| A. A liquor establishment may be issued a gaming
|
0015| operator's license to operate licensed gaming machines on its
|
0016| premises.
|
0017| B. A liquor establishment gaming operator licensee
|
0018| may offer for play a maximum of three gaming machines on its
|
0019| premises.
|
0020| C. Gaming machines may be played on the premises
|
0021| of a liquor establishment gaming operator licensee during the
|
0022| days and hours that alcoholic beverages may be sold, served or
|
0023| delivered pursuant to the Liquor Control Act."
|
0024| Section 15. A new Section 60-2E-28.3 NMSA 1978 is
|
0025| enacted to read:
|
- 36 -
0001| "60-2E-28.3. [NEW MATERIAL] LOCAL OPTION
|
0002| ELECTION--RESORTS--PROCEDURE--RESUBMISSION OF LOCAL OPTION
|
0003| QUESTION.--
|
0004| A. A county is a local option district if it is a
|
0005| qualified county and if the option of permitting casino gaming
|
0006| on the premises of resorts in that county is adopted by the
|
0007| qualified registered electors of that county.
|
0008| B. Based on the content of the petition, a local
|
0009| governing body of a proposed local option district shall place
|
0010| the following question on the ballot:
|
0011| "Shall casino gaming be permitted on the premises of a
|
0012| resort in (name of proposed local option district), effective
|
0013| July 1, ____? __YES __NO".
|
0014| C. The procedures for adopting the local option
|
0015| provision for casino gaming are:
|
0016| (1) the qualified registered electors of any
|
0017| proposed local option district may petition the governing body
|
0018| by filing one or more petitions in the appropriate office to
|
0019| hold a referendum to determine whether the proposed local
|
0020| option district shall adopt the local option provision of the
|
0021| Gaming Control Act. Each petition shall state the question
|
0022| that will be presented on the ballot. If the aggregate of the
|
0023| signatures of the qualified registered electors on all the
|
0024| petitions equals or exceeds five percent of the number of
|
0025| qualified registered electors of the proposed local option
|
- 37 -
0001| district at the time of the last general election, the
|
0002| governing body shall call an election within ninety days of
|
0003| the verification of the petition. The latest date for
|
0004| filing a petition shall be three months after the date on
|
0005| which the first signature was obtained;
|
0006| (2) except as otherwise provided in this
|
0007| section, the election shall be called and conducted and votes
|
0008| shall be counted and canvassed substantially in the manner
|
0009| provided by law for general elections within the county for a
|
0010| county referendum;
|
0011| (3) except as otherwise provided in this
|
0012| section, contests, recounts and rechecks shall be permitted
|
0013| for a county referendum as provided for in the case of
|
0014| candidates for county offices in general elections.
|
0015| Applications for contests, recounts or rechecks may be filed
|
0016| by any person who voted in the election, and service shall be
|
0017| made upon the county clerk. The payment of the costs and
|
0018| expenses of the contest, recount or recheck shall be assessed
|
0019| for a county referendum in the manner provided by the Election
|
0020| Code for contests in a general election of candidates for
|
0021| county offices;
|
0022| (4) if a majority of all the votes cast in a
|
0023| referendum election seeking to permit casino gaming on the
|
0024| premises of a resort is in favor of the local option provision
|
0025| to permit casino gaming in the proposed local option district,
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0001| the chairman of the governing body shall declare by order
|
0002| entered upon the records of the county that it has adopted the
|
0003| local option provision of the Gaming Control Act permitting
|
0004| casino gaming at a resort and shall notify the board of the
|
0005| results; and
|
0006| (5) no election shall be held pursuant to
|
0007| this section within forty-two days of any primary, general,
|
0008| municipal or school district election unless the election is
|
0009| held on the day of any primary, general, municipal or school
|
0010| district election.
|
0011| D. In a qualified county in which the local option
|
0012| provision of the Gaming Control Act has been rejected by the
|
0013| voters, it is permissible after the expiration of three years
|
0014| from the date of the election at which the local option
|
0015| provision was rejected to have another local option election
|
0016| in the county by following the procedure provided for in this
|
0017| section.
|
0018| E. In a local option district in which the local
|
0019| option provision of this section has been accepted by the
|
0020| voters, it is permissible after the expiration of twelve years
|
0021| from the date of election at which the local option provision
|
0022| was accepted to have another local option election that may
|
0023| allow voters to reject the local option provision previously
|
0024| adopted in the county."
|
0025| Section 16. Section 30-19-6 NMSA 1978 (being Laws 1963,
|
- 39 -
0001| Chapter 303, Section 19-6, as amended) is amended to read:
|
0002| "30-19-6. [PERMISSIVE LOTTERY] CHARITABLE
|
0003| LOTTERIES--PERMITTED GAMBLING--CONDITIONS.--
|
0004| A. Nothing in [Article 19] Chapter 30, Article
|
0005| 19 NMSA 1978 [shall be construed to apply to any]
|
0006| prohibits a sale or drawing of [any] a prize at [any]
|
0007| a fair held in this state for the benefit of [any] a
|
0008| church, public library or religious society [situate or
|
being] located in this state, or for charitable purposes
|
0010| when all the proceeds of [such] the fair [shall be]
|
0011| are expended in this state for the benefit of [such] the
|
0012| church, public library, religious society or charitable
|
0013| purposes. A [lottery shall be operated] sale or drawing
|
0014| conducted pursuant to this subsection is for the benefit of
|
0015| the organization or charitable purpose only [when] if the
|
0016| entire proceeds of the [lottery] sale or drawing go to the
|
0017| organization or charitable purpose and no part of such
|
0018| proceeds go to any individual member or employee [thereof]
|
0019| of the organization.
|
0020| B. Nothing in [Article 19] Chapter 30, Article
|
0021| 19 NMSA 1978 [shall be held to prohibit any] prohibits a
|
0022| bona fide motion picture [theatre] theater from offering
|
0023| prizes of cash or merchandise for advertising purposes, in
|
0024| connection with [such] the business of the theater or
|
0025| for the purpose of stimulating business, whether or not
|
- 40 -
0001| [any] consideration other than a monetary consideration in
|
0002| excess of the regular price of admission is [exacted]
|
0003| charged for participation in drawings for prizes.
|
0004| C. Nothing in [Article 19] Chapter 30, Article
|
0005| 19 NMSA 1978 [shall be held to apply to any] prohibits a
|
0006| bona fide county fair, including [fairs] a fair for more
|
0007| than one county [which shall have been] that has been held
|
0008| annually at the same location for at least two years, [and
|
which shall offer] from offering prizes of livestock or
|
0010| poultry in connection with [such] the fair when the
|
0011| proceeds of [such] the drawings [shall be] are used
|
0012| for the benefit of [said] the fair.
|
0013| [D. Nothing in Article 19, Chapter 30 NMSA 1978
|
shall be construed to apply to any lottery operated by an
|
organization exempt from the state income tax pursuant to
|
Subsection C of Section 7-2-4 NMSA 1978 and not subject to the
|
provisions of Subsection A of this section; provided that:
|
(1) no more than two lotteries shall be
|
operated in any year by such an organization;
|
(2) all the gross proceeds less the
|
reasonable cost of prizes of any lottery operated by such an
|
organization shall be expended in the state for the benefit of
|
the organization or public purposes; and
|
(3) no part of the proceeds of any lottery
|
shall go to any individual member or employee of any
|
- 41 -
organization except as payment for the purchase of prizes at
|
no more than the reasonable retail price.]
|
0003| D. Nothing in Chapter 30, Article 19 NMSA 1978
|
0004| prohibits an organization that is exempt from state income tax
|
0005| pursuant to Section 7-2-4 NMSA 1978 from conducting bingo
|
0006| games, raffles, lotteries or table games, including poker,
|
0007| craps, blackjack, roulette and the like, at a fundraising
|
0008| event if:
|
0009| (1) the fundraising event is conducted no
|
0010| more than twice in a calendar year by the organization;
|
0011| (2) the only persons authorized to
|
0012| participate in the operation or management of the fundraising
|
0013| event are:
|
0014| (a) bona fide members of the
|
0015| organization who are not paid for their services in the
|
0016| operation or management of the event; or
|
0017| (b) persons who provide goods or
|
0018| services for the fundraising event for a flat fee or an hourly
|
0019| fee pursuant to a written contract with the organization;
|
0020| (3) no person receives any part of the
|
0021| proceeds of the fundraising event except:
|
0022| (a) as payment for prizes purchased at
|
0023| no more than the reasonable retail prices for the prizes; or
|
0024| (b) pursuant to a contract described in
|
0025| Subparagraph (b) of Paragraph (2) of this subsection;
|
- 42 -
0001| (4) the net proceeds of the fundraising event
|
0002| are expended in the state for the benefit of the organization
|
0003| or purposes for which it was formed;
|
0004| (5) gross revenue, expenses, prizes paid and
|
0005| the date, time and location of the fundraising event are
|
0006| reported to the alcohol and gaming division of the regulation
|
0007| and licensing department within thirty days after the event;
|
0008| (6) the organization conducting the
|
0009| fundraising event maintains records for a period of one year
|
0010| after the date of the event that accurately show the gross
|
0011| revenue generated by the event, details of the expenses of
|
0012| conducting the event and details of how the gross revenue is
|
0013| used, and the organization makes the records available for
|
0014| review by the director of the alcohol and gaming division of
|
0015| the regulation and licensing department or the attorney
|
0016| general, or both, at their request;
|
0017| (7) no more than four gambling devices are
|
0018| operated during the fundraising event, two of which may be
|
0019| video gaming machines or slot machines and shall be played
|
0020| with tokens or chips, but not United States coins or currency,
|
0021| provided by the organization;
|
0022| (8) no person less than the age of twenty-one
|
0023| is allowed to participate in the operation or management of
|
0024| the fundraising event or to play any game at the event; and
|
0025| (9) the fundraising event is conducted
|
- 43 -
0001| pursuant to regulations and a permit issued by the alcohol and
|
0002| gaming division of the regulation and licensing department.
|
0003| E. The provisions of the Gaming Control Act, the
|
0004| Bingo and Raffle Act and the New Mexico Lottery Act do not
|
0005| apply to the activities described in Subsection D of this
|
0006| section."
|
0007| Section 17. EFFECTIVE DATE.--The effective date of the
|
0008| provisions of this act is July 1, 1998.
|
0009|
|