SENATE BILL 542

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John Arthur Smith

 

 

 

 

 

AN ACT

RELATING TO GAMING; AUTHORIZING A NEW GENERAL BUSINESS CATEGORY OF GAMING OPERATOR LICENSE TO BE ISSUED IF THE GOVERNOR CONCURS WITH THE DEPARTMENT OF INTERIOR THAT LAND NEWLY ACQUIRED BY AN INDIAN NATION, TRIBE OR PUEBLO FOR PURPOSES OF GAMING SHOULD BE TAKEN INTO TRUST; AUTHORIZING ADDITIONAL GAMES TO BE PLAYED ON PREMISES OF GAMING OPERATOR LICENSEES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; DECLARING AN EMERGENCY.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. 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. 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. 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 or game.

          D. 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. Gaming machines may be available for play only in an area restricted to persons twenty-one years of age or older.

          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] is conducted 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] is conducted.

          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. 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; except, if the governor concurs with the United States secretary of the interior's determination that land acquired after October 17, 1988 in New Mexico by an Indian nation, tribe or pueblo pursuant to 25 USCA Section 2719(b)(1)(A) shall be taken into trust for the benefit of that Indian nation, tribe or pueblo and gaming is planned to be conducted on that land, the board shall:

                (1) within six months following the date on which the land is taken into trust for the benefit of the Indian nation, tribe or pueblo, develop rules that allow gaming operators that are general businesses to be licensed;                      (2) within nine months following the date that the land is taken into trust for the benefit of the Indian nation, tribe or pueblo, begin accepting applications from the general gaming operator license applicants; and

                (3) within twelve months following the date that the land is taken into trust for the benefit of the Indian nation, tribe or pueblo, develop rules that would allow a gaming operator licensee to offer for play any game not unlawful pursuant to federal law."

     Section 2. A new section of the Gaming Control Act, Section 60-2E-26.1 NMSA 1978, is enacted to read:

     "60-2E-26.1. [NEW MATERIAL] GAMING OPERATOR LICENSEES--GENERAL BUSINESS--SPECIAL CONDITIONS--DAYS AND HOURS OF OPERATION.--

          A. The board may issue a gaming operator license for a general business to:

                (1) a liquor licensee licensed pursuant to the Liquor Control Act to make retail sales of alcoholic beverages by the drink or in unbroken packages;

                (2) an enterprise that provides lodging to the public on a short-term basis to accommodate travelers and tourists;

                (3) a restaurant that prepares and serves food on the premises of the restaurant for consumption on the premises; or

                (4) any other category of business that the board deems appropriate, except that a racetrack or a nonprofit organization may not be issued a gaming operator license for a general business.

          B. A general business gaming operator licensee that is a liquor licensee shall only conduct gaming on the premises that are identified in the liquor licensee's application for a liquor license.

          C. General business gaming operator licensees that are not liquor licensees shall conduct gaming on premises identified in their application to the board. The gaming shall be conducted on the same premises as the lodging enterprise, restaurant or other business that qualified the person to apply for a license as a gaming operator.

          D. A general business gaming operator licensee may have up to twenty-five licensed gaming machines, but the number of gaming machines to be located on the licensee's premises shall be specified in the general gaming operator's license. Other games as allowed by rule of the board may be conducted on the premises of a gaming operator that is a general business.

          E. Gaming may be conducted on the premises of a general business gaming operator licensee from noon until midnight on Sunday through Saturday.

          F. Alcoholic beverages shall not be sold, served, delivered or consumed in an area restricted pursuant to Section 60-2E-26 NMSA 1978 in which gaming is conducted."

     Section 3. Section 60-2E-27 NMSA 1978 (being Laws 1997, Chapter 190, Section 29, as amended) is amended to read:

     "60-2E-27. GAMING OPERATOR LICENSEES--SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES--DAYS AND HOURS OF OPERATIONS.--

          A. A racetrack licensed by the state racing commission pursuant to the Horse Racing Act to conduct live horse races or simulcast races may be issued a gaming operator's license to operate gaming machines on its premises where live racing is conducted.

          B. A racetrack's gaming operator's license shall automatically become void if:

                (1) the racetrack no longer holds an active license to conduct pari-mutuel wagering; or

                (2) the racetrack fails to maintain a minimum of three live race days a week with at least nine live races on each race day during its licensed race meet in the 1997 calendar year and in the 1998 and subsequent calendar years, four live race days a week with at least nine live races on each race day during its licensed race meet.

          C. A gaming operator licensee that is a racetrack may have up to six hundred licensed gaming machines, but the number of gaming machines to be located on the licensee's premises shall be specified in the gaming operator's license. Pursuant to rules of the board, a gaming operator licensee that is a racetrack may offer other games for play.

          D. By execution of an allocation agreement, signed by both the allocating racetrack and the racetrack to whom the allocation is made, a gaming operator licensee that is a racetrack may allocate any number of its authorized gaming machines to another gaming operator licensee that is a racetrack. To be valid, the allocation agreement must bear the written approval of the board and the state racing commission, and this approval shall make specific reference to the meeting at which the action of approval was taken and the number of votes cast both for and against the approval. By allocating a number of its authorized machines to another racetrack, the allocating racetrack automatically surrenders all rights to operate the number of machines allocated. No racetrack shall operate or be authorized to operate more than seven hundred fifty gaming machines.

          E. Gaming machines on a racetrack gaming operator licensee's premises may be played only on days when the racetrack is either conducting live horse races or simulcasting horse race meets. A gaming operator licensee that is a racetrack shall be permitted to conduct such games on only the aforementioned days for a daily period not to exceed twelve hours at the discretion of such licensee.

          F. Alcoholic beverages shall not be sold, served, delivered or consumed in the area restricted pursuant to Subsection F of Section 60-2E-26 NMSA 1978."

     Section 4. Section 60-2E-28 NMSA 1978 (being Laws 1997, Chapter 190, Section 30, as amended) is amended to read:

     "60-2E-28. GAMING OPERATOR LICENSEES--SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING MACHINES--DAYS AND HOURS OF OPERATIONS.--

          A. A nonprofit organization may be issued a gaming operator's license to operate licensed gaming machines on its premises to be played only by active and auxiliary members.

          B. No more than fifteen gaming machines may be offered for play on the premises of a nonprofit organization gaming operator licensee. Pursuant to rules of the board, a nonprofit organization gaming operator licensee may offer other games for play.

          C. [No] A gaming machine on the premises of a nonprofit organization gaming operator licensee may not award a prize that exceeds four thousand dollars ($4,000).

          D. Gaming machines may be played on the premises of a nonprofit organization gaming operator licensee from 12:00 noon until 12:00 midnight every day."

     Section 5. 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 one-fourth of one percent of the net take of its gaming machines 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.

          G. A gaming operator licensee that is a racetrack or a general business shall expend no less than one-fourth percent of its net take to fund or support programs for the treatment and assistance of compulsive gamblers."

     Section 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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