0001| SENATE BILL 325 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| JOHN ARTHUR SMITH | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO GAMING; EXPANDING AUTHORIZED GAMING PURSUANT TO | 0012| THE GAMING CONTROL ACT; AMENDING, REPEALING AND ENACTING | 0013| SECTIONS OF THE NMSA 1978. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 60-2E-1 NMSA 1978 (being Laws 1997, | 0017| Chapter 190, Section 3) is amended to read: | 0018| "60-2E-1. SHORT TITLE.--~[Sections 3 through 63 of this | 0019| act]~ |Chapter 60, Article 2E NMSA 1978| may be cited as the | 0020| "Gaming Control Act"." | 0021| Section 2. Section 60-2E-3 NMSA 1978 (being Laws 1997, | 0022| Chapter 190, Section 5) is amended to read: | 0023| "60-2E-3. DEFINITIONS.--As used in the Gaming Control | 0024| Act: | 0025| |A. "administrator" means the executive director | - 1 - 0001| or the security director; | 0002| | ~[A.]~ |B.| "affiliate" means a person who, | 0003| directly or indirectly through one or more intermediaries, | 0004| controls, is controlled by or is under common control with a | 0005| specified person; | 0006| ~[B.]~ |C.| "affiliated company" means a company | 0007| that: | 0008| (1) controls, is controlled by or is under | 0009| common control with a company licensee; and | 0010| (2) is involved in gaming activities or | 0011| involved in the ownership of property on which gaming is | 0012| conducted; | 0013| ~[C.]~ |D.| "applicant" means a person who has | 0014| applied for a license or for approval of an act or transaction | 0015| for which approval is required or allowed pursuant to the | 0016| provisions of the Gaming Control Act; | 0017| ~[D.]~ |E.| "application" means a request for the | 0018| issuance of a license or for approval of an act or transaction | 0019| for which approval is required or allowed pursuant to the | 0020| provisions of the Gaming Control Act, but "application" does | 0021| not include a supplemental form or information that may be | 0022| required with the application; | 0023| ~[E.]~ |F.| "associated equipment" means equipment | 0024| or a mechanical, electromechanical or electronic contrivance, | 0025| component or machine used in connection with gaming; | - 2 - 0001| ~[F.]~ |G.| "board" means the gaming control | 0002| board; | 0003| | 0004| |H. "casino game" means a game, including | 0005| baccarat, beat the banker, blackjack, chemin de fer, chuck-a- | 0006| luck, craps, dai shu, fan-tan, faro, keno, klondike, | 0007| lotteries, monte, pai gow, panguini, pari-mutuel wagering and | 0008| simulcasting, poker in any form, progressive forms of casino | 0009| games, red dog, roulette, seven and a half, sic bo, twenty- | 0010| one, wheels of fortune and any other dice, table or card game | 0011| that is played on associated equipment and may be simulated | 0012| for play on a gaming machine;| | 0013| ~[G.]~ |I.| "certification" means a notice of | 0014| approval by the board of a person required to be certified by | 0015| the board; | 0016| ~[H.]~ |J.| "certified technician" means a person | 0017| certified by a manufacturer licensee to repair and service | 0018| gaming devices, but who is prohibited from programming gaming | 0019| devices; | 0020| ~[I.]~ |K.| "company" means a corporation, | 0021| partnership, limited partnership, trust, association, joint | 0022| stock company, joint venture, limited liability company or | 0023| other form of business organization that is not a natural | 0024| person; | 0025| ~[J.]~ |L.| "distributor" means a person who | - 3 - 0001| supplies gaming devices to a gaming operator but does not | 0002| manufacture gaming devices; | 0003| ~[K.]~ |M.| "equity security" means an interest in | 0004| a company that is evidenced by: | 0005| (1) voting stock or similar security; | 0006| (2) a security convertible into voting stock | 0007| or similar security, with or without consideration, or a | 0008| security carrying a warrant or right to subscribe to or | 0009| purchase voting stock or similar security; | 0010| (3) a warrant or right to subscribe to or | 0011| purchase voting stock or similar security; or | 0012| (4) a security having a direct or indirect | 0013| participation in the profits of the issuer; | 0014| ~[L.]~ |N.| "executive director" means the chief | 0015| administrative officer appointed by the board pursuant to | 0016| ~[Section 9 of the Gaming Control Act]~ |Section 60-2E-7 NMSA | 0017| 1978|; | 0018| ~[M.]~ |O.| "finding of suitability" means a | 0019| certification of approval issued by the board permitting a | 0020| person to be involved directly or indirectly with a licensee, | 0021| relating only to the specified involvement for which it is | 0022| made; | 0023| ~[N.]~ |P.| "game" means an activity in which, | 0024| upon payment of consideration, a player receives a prize or | 0025| other thing of value, the award of which is determined by | - 4 - 0001| chance even though accompanied by some skill; "game" does not | 0002| include an activity played in a private residence in which no | 0003| person makes money for operating the activity except through | 0004| winnings as a player; | 0005| ~[O.]~ |Q.| "gaming" means offering a game for | 0006| play; | 0007| ~[P.]~ |R.| "gaming activity" means any endeavor | 0008| associated with the manufacture or distribution of gaming | 0009| devices or the conduct of gaming; | 0010| ~[Q.]~ |S.| "gaming device" means associated | 0011| equipment or a gaming machine and includes a system for | 0012| processing information that can alter the normal criteria of | 0013| random selection that affects the operation of a game or | 0014| determines the outcome of a game; "gaming device" does not | 0015| include a system or device that affects a game solely by | 0016| stopping its operation so that the outcome remains | 0017| undetermined; | 0018| ~[R.]~ |T.| "gaming employee" means a person | 0019| connected directly with a gaming activity; "gaming employee" | 0020| does not include: | 0021| (1) bartenders, cocktail servers or other | 0022| persons engaged solely in preparing or serving food or | 0023| beverages; | 0024| (2) secretarial or janitorial personnel; | 0025| (3) stage, sound and light technicians; or | - 5 - 0001| (4) other nongaming personnel; | 0002| ~[S.]~ |U.| "gaming establishment" means the | 0003| premises on or in which gaming is conducted; | 0004| ~[T.]~ |V.| "gaming machine" means a mechanical, | 0005| electromechanical or electronic contrivance or machine that, | 0006| upon insertion of a coin, token or similar object, or upon | 0007| payment of any consideration, is available to play or operate | 0008| a game, whether the payoff is made automatically from the | 0009| machine or in any other manner; | 0010| ~[U.]~ |W.| "gaming operator" means a person who | 0011| conducts gaming; | 0012| ~[V.]~ |X.| "holding company" means a company that | 0013| directly or indirectly owns or has the power or right to | 0014| control a company that is an applicant or licensee, but a | 0015| company that does not have a beneficial ownership of more than | 0016| ten percent of the equity securities of a publicly traded | 0017| corporation is not a holding company; | 0018| ~[W.]~ |Y.| "immediate family" means natural | 0019| persons who are related to a specified natural person by | 0020| affinity or consanguinity in the first through the third | 0021| degree; | 0022| ~[X.]~ |Z.| "independent administrator" means a | 0023| person who administers an annuity, who is not associated in | 0024| any manner with the gaming operator licensee for which the | 0025| annuity was purchased and is in no way associated with the | - 6 - 0001| person who will be receiving the annuity; | 0002| ~[Y.]~ |AA.| "institutional investor" means a | 0003| state or federal government pension plan or a person that | 0004| meets the requirements of a qualified institutional buyer as | 0005| defined in Rule 144A of the federal Securities Act of 1933, | 0006| and is: | 0007| (1) a bank as defined in Section 3(a)(6) of | 0008| the federal Securities Exchange Act of 1934; | 0009| (2) an insurance company as defined in | 0010| Section 2(a)(17) of the federal Investment Company Act of | 0011| 1940; | 0012| (3) an investment company registered under | 0013| Section 8 of the federal Investment Company Act of 1940; | 0014| (4) an investment adviser registered under | 0015| Section 203 of the federal Investment Advisers Act of 1940; | 0016| (5) collective trust funds as defined in | 0017| Section 3(c)(11) of the federal Investment Company Act of | 0018| 1940; | 0019| (6) an employee benefit plan or pension fund | 0020| that is subject to the federal Employee Retirement Income | 0021| Security Act of 1974, excluding an employee benefit plan or | 0022| pension fund sponsored by a publicly traded corporation | 0023| registered with the board; or | 0024| (7) a group comprised entirely of persons | 0025| specified in Paragraphs (1) through (6) of this subsection; | - 7 - 0001| ~[Z.]~ |BB.| "intermediary company" means a | 0002| company that: | 0003| (1) is a holding company with respect to a | 0004| company that is an applicant or licensee; and | 0005| (2) is a subsidiary with respect to any | 0006| holding company; | 0007| ~[AA.]~ |CC.| "key executive" means an executive | 0008| of a licensee or other person having the power to exercise | 0009| significant influence over decisions concerning any part of | 0010| the licensed operations of the licensee or whose compensation | 0011| exceeds an amount established by the board in a regulation; | 0012| ~[BB.]~ |DD.| "license" means an authorization | 0013| required by the board for engaging in gaming activities; | 0014| ~[CC.]~ |EE.| "licensee" means a person to whom a | 0015| valid license has been issued; | 0016| |FF. "liquor establishment" means a person | 0017| licensed pursuant to Section 60-6A-3 NMSA 1978 to dispense | 0018| alcoholic beverages whose licensed premises as defined in | 0019| Section 60-3A-3 NMSA 1978 have permanent seating capacity for | 0020| no fewer than thirty patrons and who serves beer, wine and | 0021| spirituous liquors;| | 0022| ~[DD.]~ |GG.| "manufacturer" means a person who | 0023| manufactures, fabricates, assembles, produces, programs or | 0024| makes modifications to any gaming device for use or play in | 0025| New Mexico or for sale, lease or distribution outside New | - 8 - 0001| Mexico from any location within New Mexico; | 0002| ~[EE.]~ |HH.| "net take" means the total of the | 0003| following, less the total of all cash paid out as losses to | 0004| winning patrons and those amounts paid to purchase annuities | 0005| to fund losses paid to winning patrons over several years by | 0006| independent administrators: | 0007| (1) cash received from patrons for playing a | 0008| game; | 0009| (2) cash received in payment for credit | 0010| extended by a licensee to a patron for playing a game; and | 0011| (3) compensation received for conducting a | 0012| game in which the licensee is not a party to a wager; | 0013| ~[FF.]~ |II.| "nonprofit organization" means: | 0014| |(1) a bonafide club that is described in | 0015| Section 501 (c)(7) of the federal Internal Revenue Code of | 0016| 1986 and that is exempt from federal income taxation pursuant | 0017| to Section 501(a) of that code;| | 0018| ~[(1)]~ |(2)| a bona fide chartered or | 0019| incorporated branch, lodge, order or association ~[in | 0020| existence in New Mexico prior to January 1, 1997]~ of a | 0021| fraternal organization that is described in Section 501(c)(8) | 0022| or (10) of the federal Internal Revenue Code of 1986 and that | 0023| is exempt from federal income taxation pursuant to Section | 0024| 501(a) of that code; or | 0025| ~[(2)]~ |(3)| a bona fide chartered or | - 9 - 0001| incorporated post, auxiliary unit or society of, or a trust or | 0002| foundation for the post or auxiliary unit ~[in existence in | 0003| New Mexico prior to January 1, 1997]~ of a veterans' | 0004| organization that is described in Section 501(c)(19) or (23) | 0005| of the federal Internal Revenue Code of 1986 and that is | 0006| exempt from federal income taxation pursuant to Section 501(a) | 0007| of that code; | 0008| ~[GG.]~ |JJ.| "person" means a legal entity; | 0009| ~[HH.]~ |KK.| "premises" means land, together with | 0010| all buildings, improvements and personal property located on | 0011| the land; | 0012| ~[II.]~ |LL.| "progressive jackpot" means a prize | 0013| that increases over time or as gaming machines that are linked | 0014| to a progressive system are played and upon conditions | 0015| established by the board may be paid by an annuity; | 0016| ~[JJ.]~ |MM.| "progressive system" means one or | 0017| more gaming machines linked to one or more common progressive | 0018| jackpots; | 0019| ~[KK.]~ |NN.| "publicly traded corporation" means | 0020| a corporation that: | 0021| (1) has one or more classes of securities | 0022| registered pursuant to the securities laws of the United | 0023| States or New Mexico; | 0024| (2) is an issuer subject to the securities | 0025| laws of the United States or New Mexico; or | - 10 - 0001| (3) has one or more classes of securities | 0002| registered or is an issuer pursuant to applicable foreign laws | 0003| that the board finds provide protection for institutional | 0004| investors that is comparable to or greater than the stricter | 0005| of the securities laws of the United States or New Mexico; | 0006| | OO. "qualified county" means a class B county: | 0007| (1) having a 1995 net taxable value of | 0008| property, as that term is defined in the Property Tax Code, of | 0009| over three hundred million dollars ($300,000,000) and having a | 0010| population as determined by the 1990 federal decennial census | 0011| of not more than twenty-five thousand persons and not less | 0012| than twenty thousand persons; | 0013| (2) having a 1995 net taxable value of | 0014| property, as that term is defined in the Property Tax Code, of | 0015| over three hundred million dollars ($300,000,000) and having a | 0016| population as determined by the 1990 federal decennial census | 0017| of not more than twelve thousand five hundred persons and not | 0018| less than twelve thousand persons; or | 0019| (3) having a 1995 net taxable value of | 0020| property, as that term is defined in the Property Tax Code, of | 0021| under three hundred million dollars ($300,000,000) and having | 0022| a population as determined by the 1990 federal decennial | 0023| census of not more than thirteen thousand persons and not less | 0024| than twelve thousand five hundred persons;| | 0025| |PP. "resort" means a facility for public lodging | - 11 - 0001| with at least one hundred fifty guest rooms that has on its | 0002| premises a permanent affiliated restaurant with banquet or | 0003| restaurant facilities to accommodate at least one hundred | 0004| persons simultaneously and is located in a qualified county;| | 0005| ~[LL.]~ |QQ.| "registration" means a board action | 0006| that authorizes a company to be a holding company with respect | 0007| to a company that holds or applies for a license or that | 0008| relates to other persons required to be registered pursuant to | 0009| the Gaming Control Act; | 0010| |RR. "security director" means the chief security | 0011| officer appointed by the board pursuant to Section 60-2E-7 | 0012| NMSA 1978;| | 0013| ~[MM.]~ |SS.| "subsidiary" means a company, all or | 0014| a part of whose outstanding equity securities are owned, | 0015| subject to a power or right of control or held, with power to | 0016| vote, by a holding company or intermediary company; and | 0017| ~[NN.]~ |TT.| "work permit" means a card, | 0018| certificate or permit issued by the board, whether denominated | 0019| as a work permit, registration card or otherwise, authorizing | 0020| the employment of the holder as a gaming employee." | 0021| Section 3. Section 60-2E-5 NMSA 1978 (being Laws 1997, | 0022| Chapter 190, Section 7) is amended to read: | 0023| "60-2E-5. GAMING CONTROL BOARD CREATED.-- | 0024| A. The "gaming control board" is created and | 0025| consists of five members ~[Three members are]~ appointed by | - 12 - 0001| the governor with the advice and consent of the senate ~[and | 0002| two members are ex officio: the chairman of the state racing | 0003| commission and the chairman of the board of the New Mexico | 0004| lottery authority]~. All members of the board shall be | 0005| residents of New Mexico and citizens of the United States. | 0006| |At least| one ~[appointed]~ member of the board shall have a | 0007| minimum of five years of previous employment in a supervisory | 0008| and administrative position in a law enforcement agency; |at | 0009| least| one ~[appointed]~ member of the board shall be a | 0010| certified public accountant in New Mexico who has had at least | 0011| five years of experience in public accountancy; ~[and]~ |at | 0012| least| one ~[appointed]~ member of the board shall be an | 0013| attorney who has been admitted to practice before the supreme | 0014| court of New Mexico; |and at least one member of the board | 0015| shall have had at least five years of previous employment in a | 0016| top-level supervisory and administrative position in a | 0017| governmental gaming regulatory agency|. | 0018| B. The ~[appointed]~ members of the board shall be | 0019| appointed for terms of five years, except, of the members who | 0020| are first appointed, the member with ~[law enforcement]~ | 0021| |government gaming regulation| experience shall be appointed | 0022| for a term of five years; the member |with law enforcement | 0023| experience shall be appointed for a term of four years; the | 0024| member| who is a certified public accountant shall be | 0025| appointed for a term of four years; ~[and]~ the member who is | - 13 - 0001| an attorney shall be appointed for a term of three years; |and | 0002| the remaining member shall be appointed for a term of two | 0003| years|. Thereafter, all members shall be appointed for terms | 0004| of five years. No person shall serve as a board member for | 0005| more than two consecutive terms or ten years total. | 0006| C. No person appointed to the board may be | 0007| employed in any other capacity or shall in any manner receive | 0008| compensation for services rendered to any person or entity | 0009| other than the board while a member of the board. | 0010| D. A vacancy on the board ~[of an appointed | 0011| member]~ shall be filled within thirty days by |appointment | 0012| by| the governor with the advice and consent of the senate for | 0013| the unexpired portion of the term in which the vacancy occurs. | 0014| A person appointed to fill a vacancy shall meet all | 0015| qualification requirements of the office established in this | 0016| section. | 0017| E. The governor shall choose a chairman annually | 0018| from the board's ~[appointed]~ membership. | 0019| F. No more than three members of the board shall | 0020| be from the same political party. | 0021| G. The ~[appointed]~ members of the board shall be | 0022| full-time state officials and shall receive a salary set by | 0023| the governor |of no less than sixty thousand dollars ($60,000) | 0024| annually|. | 0025| H. The department of public safety shall conduct | - 14 - 0001| background investigations of all members of the board prior to | 0002| confirmation by the senate. To assist the department in the | 0003| background investigation, a prospective board member shall | 0004| furnish a disclosure statement to the department on a form | 0005| provided by the department containing that information deemed | 0006| by the department as necessary for completion of a detailed | 0007| and thorough background investigation. The required | 0008| information shall include at least: | 0009| (1) a full set of fingerprints made by a law | 0010| enforcement agency on forms supplied by the department; | 0011| (2) complete information and details with | 0012| respect to the prospective board member's antecedents, habits, | 0013| immediate family, character, criminal record, business | 0014| activities, financial affairs and business associates covering | 0015| at least a ten-year period immediately preceding the date of | 0016| submitting the disclosure statement; | 0017| (3) complete disclosure of any equity | 0018| interest held by the prospective board member or a member of | 0019| his immediate family in a company that is an applicant or | 0020| licensee or an affiliate, affiliated company, intermediary | 0021| company or holding company in respect to an applicant or | 0022| licensee; and | 0023| (4) the names and addresses of members of the | 0024| immediate family of the prospective board member. | 0025| I. No person may be appointed or confirmed as a | - 15 - 0001| member of the board if that person or member of his immediate | 0002| family holds an equity interest in a company that is an | 0003| applicant or licensee or an affiliate, affiliated company, | 0004| intermediary company or holding company in respect to an | 0005| applicant or licensee. | 0006| J. A prospective board member shall provide | 0007| assistance and information requested by the department of | 0008| public safety or the governor and shall cooperate in any | 0009| inquiry or investigation of the prospective board member's | 0010| fitness or qualifications to hold the office to which he is | 0011| appointed. The senate shall not confirm a prospective board | 0012| member if it has reasonable cause to believe that the | 0013| prospective board member has: | 0014| (1) knowingly misrepresented or omitted a | 0015| material fact required in a disclosure statement; | 0016| (2) been convicted of a felony, a gaming | 0017| related offense or a crime involving fraud, theft or moral | 0018| turpitude within ten years immediately preceding the date of | 0019| submitting a disclosure statement required pursuant to the | 0020| provisions of Subsection H of this section; | 0021| (3) exhibited a history of willful disregard | 0022| for the gaming laws of this or any other state or the United | 0023| States; or | 0024| (4) had a permit or license issued pursuant | 0025| to the gaming laws of this or any other state or the United | - 16 - 0001| States permanently suspended or revoked for cause. | 0002| K. At the time of taking office, each board member | 0003| shall file with the secretary of state a sworn statement that | 0004| he is not disqualified under the provisions of Subsection I of | 0005| this section." | 0006| Section 4. Section 60-2E-7 NMSA 1978 (being Laws 1997, | 0007| Chapter 190, Section 9) is amended to read: | 0008| "60-2E-7. BOARD'S POWERS AND DUTIES.-- | 0009| A. The board shall implement the state's policy on | 0010| gaming consistent with the provisions of the Gaming Control | 0011| Act. It has the duty to fulfill all responsibilities assigned | 0012| to it pursuant to that act, and it has all authority necessary | 0013| to carry out those responsibilities. It may delegate | 0014| authority to the executive director, but it retains | 0015| accountability. The board is an adjunct agency. | 0016| B. The board shall: | 0017| (1) employ the ~[executive director]~ | 0018| |administrators|; | 0019| (2) make the final decision on issuance, | 0020| denial, suspension and revocation of all licenses pursuant to | 0021| and consistent with the provisions of the Gaming Control Act; | 0022| (3) develop, adopt and promulgate all | 0023| regulations necessary to implement and administer the | 0024| provisions of the Gaming Control Act; | 0025| (4) conduct itself, or employ a hearing | - 17 - 0001| officer to conduct, all hearings required by the provisions of | 0002| the Gaming Control Act and other hearings it deems appropriate | 0003| to fulfill its responsibilities; | 0004| (5) meet at least once each month; and | 0005| (6) prepare and submit an annual report in | 0006| December of each year to the governor and the legislature, | 0007| covering activities of the board in the most recently | 0008| completed fiscal year, a summary of gaming activities in the | 0009| state and any recommended changes in or additions to the laws | 0010| relating to gaming in the state. | 0011| C. The board may: | 0012| (1) impose civil fines not to exceed twenty- | 0013| five thousand dollars ($25,000) for the first violation and | 0014| fifty thousand dollars ($50,000) for subsequent violations of | 0015| any prohibitory provision of the Gaming Control Act or any | 0016| prohibitory provision of a regulation adopted pursuant to that | 0017| act; | 0018| (2) conduct investigations; | 0019| (3) subpoena persons and documents to compel | 0020| access to or the production of documents and records, | 0021| including books and memoranda, in the custody or control of | 0022| any licensee |and enforce compliance with the subpoena by | 0023| district court action|; | 0024| (4) compel |by subpoena| the appearance of | 0025| employees of a licensee or |other| persons for the purpose of | - 18 - 0001| ascertaining compliance with provisions of the Gaming Control | 0002| Act or a regulation adopted pursuant to its provisions |and | 0003| enforce compliance with the subpoena by district court | 0004| action|; | 0005| (5) administer oaths and take depositions to | 0006| the same extent and subject to the same limitations as would | 0007| apply if the deposition were pursuant to discovery rules in a | 0008| civil action in the district court; | 0009| (6) sue and be sued subject to the | 0010| limitations of the Tort Claims Act; | 0011| (7) contract for the provision of goods and | 0012| services necessary to carry out its responsibilities; | 0013| (8) conduct audits of applicants, licensees | 0014| and persons affiliated with licensees; | 0015| (9) inspect, examine, photocopy and audit all | 0016| documents and records of an applicant or licensee relevant to | 0017| his gaming activities in the presence of the applicant or | 0018| licensee or his agent; | 0019| (10) require verification of income and all | 0020| other matters pertinent to the gaming activities of an | 0021| applicant or licensee affecting the enforcement of any | 0022| provision of the Gaming Control Act; | 0023| (11) inspect all places where gaming | 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 | 0006| regulatory agency]~ |public or business administration|. | 0007| ~[C. The executive director shall receive an | 0008| annual salary to be set by the board, but not to exceed | 0009| 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 | 0020| 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 | 0021| 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 | 0013| 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 | 0018| 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 | 0022| 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 | 0010| director]~ |an administrator| or a person in the immediate | 0011| family of or residing in the household of ~[a member of the | 0012| 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 | 0011| percentage of the amount wagered, the net take or other | 0012| measure related to the operation of a gaming machine as a | 0013| payment pursuant to a lease or other arrangement for | 0014| furnishing a gaming machine, but the board shall adopt a | 0015| 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 - 0001| 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, | - 38 - 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 | 0009| 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 | 0009| 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 | 0014| shall be construed to apply to any lottery operated by an | 0015| organization exempt from the state income tax pursuant to | 0016| Subsection C of Section 7-2-4 NMSA 1978 and not subject to the | 0017| provisions of Subsection A of this section; provided that: | 0018| (1) no more than two lotteries shall be | 0019| operated in any year by such an organization; | 0020| (2) all the gross proceeds less the | 0021| reasonable cost of prizes of any lottery operated by such an | 0022| organization shall be expended in the state for the benefit of | 0023| the organization or public purposes; and | 0024| (3) no part of the proceeds of any lottery | 0025| shall go to any individual member or employee of any | - 41 - 0001| organization except as payment for the purchase of prizes at | 0002| 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|  |