SENATE BILL 431
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Steve Komadina
AN ACT
RELATING TO GAMING; AUTHORIZING THE DEPARTMENT OF HEALTH TO EXPEND COMPULSIVE GAMBLER FUNDS FROM GAMING OPERATOR LICENSEES ON COMPULSIVE GAMBLER PROGRAMS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--COMPULSIVE GAMBLING FEE--FUND CREATED--DEPARTMENT OF HEALTH.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the "compulsive gambler fund", created in the state treasury, in an amount equal to the net receipts of all compulsive gambler fees paid to the department pursuant to Section 60-2E-47 NMSA 1978.
B. Money in the compulsive gambler fund shall be expended by the department of health for compulsive gambler programs.
C. The fund shall be administered by the department of health and all money in the fund, including earnings on the fund, is appropriated to the department of health.
D. Any unexpended or unencumbered balance in the fund shall not revert to the general fund."
Section 2. Section 60-2E-26 NMSA 1978 (being Laws 1997, Chapter 190, Section 28) is amended to read:
"60-2E-26. GAMING OPERATOR LICENSEES--GENERAL PROVISIONS--BUSINESS PLAN--PLAYER AGE LIMIT--RESTRICTIONS.--
[A. An applicant for licensure as a gaming operator shall submit with the application a plan for assisting in the prevention, education and treatment of compulsive gambling. The plan shall include regular educational training sessions for employees. Plan approval is a condition of issuance of the license.
B.] A. An applicant for licensure as a gaming operator shall submit with the application a proposed business plan. The plan shall include at least:
(1) a floor plan of the area to be used for gaming machine operations;
(2) an advertising and marketing plan;
(3) the proposed placement and number of gaming machines;
(4) a financial control plan;
(5) a security plan;
(6) a staffing plan for gaming machine operations; and
(7) details of any proposed progressive systems.
[C.] B. A gaming operator licensee shall be granted a license to operate a specific number of machines at a gaming establishment identified in the license application and shall be granted a license for each gaming machine.
[D.] C. A gaming operator licensee who desires to change the number of machines in operation at a gaming establishment shall apply to the board for an amendment to his license authorizing a change in the number of machines.
[E.] D. Gaming machines may be available for play only in an area restricted to persons twenty-one years of age or older.
E. A gaming operator licensee shall not provide, allow, contract or arrange to provide alcohol or food for no charge or at reduced prices as an incentive or enticement for patrons to game.
F. A gaming operator licensee shall erect a permanent physical barrier to allow for multiple uses of the premises by persons of all ages. For purposes of this subsection, "permanent physical barrier" means a floor-to-ceiling wall separating the general areas from the restricted areas. The entrance to the area where gaming machines are located shall display a sign that the premises are restricted to persons twenty-one years of age or older. Persons under the age of twenty-one shall not enter the area where gaming machines are located.
G. A gaming operator licensee shall not have automated teller machines in the area restricted pursuant to Subsection F of this section.
[H. A gaming operator licensee shall not provide, allow, contract or arrange to provide alcohol or food for no charge or at reduced prices as an incentive or enticement for patrons to game.]
[I.] H. Only a racetrack licensed by the state racing commission or a nonprofit organization may apply for or be issued a gaming operator's license. No other persons are qualified to apply for or be issued a gaming operator's license pursuant to the Gaming Control Act."
Section 3. Section 60-2E-47 NMSA 1978 (being Laws 1997, Chapter 190, Section 49, as amended) is amended to read:
"60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--
A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax".
B. The gaming tax is an amount equal to ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts; ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state; ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and twenty-five percent of the net take of every other gaming operator licensee. For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices.
C. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities.
D. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act apply to the collection and administration of the tax.
E. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. A racetrack gaming operator licensee shall [spend no less than] pay, in addition to other taxes or amounts required by this section a compulsive gambler fee of one-fourth [of one] percent of the net take of its gaming machines to the taxation and revenue department for distribution to the department of health pursuant to Section 7-1-6.1 NMSA 1978 to fund or support programs for the treatment and assistance of compulsive gamblers.
F. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes,
for charitable or educational purposes."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.
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