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AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE;

CLARIFYING FINGERPRINTING PROCEDURES FOR BACKGROUND

INVESTIGATIONS CONDUCTED BY THE GAMING CONTROL BOARD;

AUTHORIZING THE GAMING CONTROL BOARD TO CONDUCT BACKGROUND

INVESTIGATIONS FOR THE STATE RACING COMMISSION; DECLARING AN

EMERGENCY.

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

Section 1. Section 60-2E-7 NMSA 1978 (being Laws 1997,

Chapter 190, Section 9, as amended) is amended to read:

"60-2E-7. BOARD'S POWERS AND DUTIES.--

A. The board shall implement the state's policy on

gaming consistent with the provisions of the Gaming Control

Act and the Bingo and Raffle Act. It has the duty to fulfill

all responsibilities assigned to it pursuant to those acts,

and it has all authority necessary to carry out those

responsibilities. It may delegate authority to the executive

director, but it retains accountability. The board is an

adjunct agency.

B. The board shall:

(1) employ the executive director;

(2) make the final decision on issuance,

denial, suspension and revocation of all licenses pursuant to

and consistent with the provisions of the Gaming Control Act

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and the Bingo and Raffle Act;

(3) develop, adopt and promulgate all

regulations necessary to implement and administer the

provisions of the Gaming Control Act and the Bingo and Raffle

Act;

(4) conduct itself, or employ a hearing

officer to conduct, all hearings required by the provisions of

the Gaming Control Act and other hearings it deems appropriate

to fulfill its responsibilities;

(5) meet at least once each month; and

(6) prepare and submit an annual report in

December of each year to the governor and the legislature,

covering activities of the board in the most recently

completed fiscal year, a summary of gaming activities in the

state and any recommended changes in or additions to the laws

relating to gaming in the state.

C. The board may:

(1) impose civil fines not to exceed

twenty-five thousand dollars ($25,000) for the first violation

and fifty thousand dollars ($50,000) for subsequent violations

of any prohibitory provision of the Gaming Control Act or any

prohibitory provision of a regulation adopted pursuant to that

act;

(2) conduct investigations;

(3) subpoena persons and documents to compel

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access to or the production of documents and records,

including books and memoranda, in the custody or control of a

licensee;

(4) compel the appearance of employees of a

licensee or persons for the purpose of ascertaining compliance

with provisions of the Gaming Control Act or a regulation

adopted pursuant to its provisions;

(5) administer oaths and take depositions to

the same extent and subject to the same limitations as would

apply if the deposition were pursuant to discovery rules in a

civil action in the district court;

(6) sue and be sued subject to the

limitations of the Tort Claims Act;

(7) contract for the provision of goods and

services necessary to carry out its responsibilities;

(8) conduct audits, relevant to their gaming

activities, of applicants, licensees and persons affiliated

with licensees;

(9) inspect, examine, photocopy and audit

all documents and records of an applicant or licensee relevant

to the applicant's or licensee's gaming activities in the

presence of the applicant or licensee or the applicant's or

licensee's agent;

(10) require verification of income and all

other matters pertinent to the gaming activities of an

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applicant or licensee affecting the enforcement of any

provision of the Gaming Control Act;

(11) inspect all places where gaming

activities are conducted and inspect all property connected

with gaming in those places;

(12) summarily seize, remove and impound

from places inspected any gaming devices, property connected

with gaming, documents or records for the purpose of

examination or inspection;

(13) inspect, examine, photocopy and audit

documents and records, relevant to the affiliate's gaming

activities, of an affiliate of an applicant or licensee that

the board knows or reasonably suspects is involved in the

financing, operation or management of the applicant or

licensee. The inspection, examination, photocopying and audit

shall be in the presence of a representative of the affiliate

or its agent when practicable;

(14) conduct background investigations

pursuant to the Horse Racing Act; and

(15) except for the powers specified in

Paragraphs (1) and (4) of this subsection, carry out all or

part of the foregoing powers and activities through the

executive director.

D. The board shall monitor all activity authorized

in an Indian gaming compact between the state and an Indian

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nation, tribe or pueblo. The board shall appoint the state

gaming representative for the purposes of the compact."

Section 2. Section 60-2E-14 NMSA 1978 (being Laws 1997,

Chapter 190, Section 16, as amended) is amended to read:

"60-2E-14. LICENSURE--APPLICATION.--

A. The board shall establish and issue the

following categories of licenses:

(1) manufacturer;

(2) distributor;

(3) gaming operator; and

(4) gaming machine.

B. The board shall issue certifications of

findings of suitability for key executives and other persons

for whom certification is required.

C. The board shall issue work permits for gaming

employees.

D. A licensee shall not be issued more than one

type of license, but this provision does not prohibit a

licensee from owning, leasing, acquiring or having in the

licensee's possession licensed gaming machines if that

activity is otherwise allowed by the provisions of the Gaming

Control Act. A licensee shall not own a majority interest in,

manage or otherwise control a holder of another type of

license issued pursuant to the provisions of that act.

E. An applicant for a license, a certification of

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finding of suitability or a work permit shall apply on forms

provided by the board and shall furnish to the board two sets

of fingerprint cards and all other information requested by

the board. Submission of an application constitutes consent

to a national criminal background check of the applicant, a

credit check of the applicant and all persons having a

substantial interest in the applicant and any other background

investigations required pursuant to the Gaming Control Act or

deemed necessary by the board. The board may obtain from the

taxation and revenue department copies of tax returns filed by

or on behalf of the applicant or its affiliates and

information concerning liens imposed on the applicant or its

affiliates by the taxation and revenue department.

F. All licenses issued by the board pursuant to

the provisions of this section shall be reviewed for renewal

annually unless revoked, suspended, canceled or terminated.

G. A license shall not be transferred or assigned.

H. The application for a license shall include:

(1) the name of the applicant;

(2) the location of the proposed operation;

(3) the gaming devices to be operated,

manufactured, distributed or serviced;

(4) the names of all persons having a direct

or indirect interest in the business of the applicant and the

nature of such interest; and

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(5) such other information and details as

the board may require.

I. The board shall furnish to the applicant

supplemental forms that the applicant shall complete and file

with the application. The supplemental forms shall require

two sets of fingerprint cards and complete information and

details with respect to the applicant's antecedents, habits,

immediate family, character, state and federal criminal

record, business activities, financial affairs and business

associates, covering at least a ten-year period immediately

preceding the date of filing of the application.

J. In conducting a background investigation and

preparing an investigative report on the applicant, the

board's law enforcement officers may request and receive

criminal history information from the federal bureau of

investigation or any other law enforcement agency or

organization. The board's law enforcement officers shall

maintain confidentiality regarding information received from a

law enforcement agency that may be imposed by the agency as a

condition for providing the information to the board."

Section 3. Section 60-2E-16 NMSA 1978 (being Laws 1997,

Chapter 190, Section 18) is amended to read:

"60-2E-16. ACTION BY BOARD ON APPLICATIONS.--

A. A person that the board determines is qualified

to receive a license pursuant to the provisions of the Gaming

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Control Act may be issued a license. The burden of proving

qualifications is on the applicant.

B. A license shall not be issued unless the board

is satisfied that the applicant is:

(1) a person of good moral character,

honesty and integrity;

(2) a person whose prior activities, state

and federal criminal record, reputation, habits and

associations do not pose a threat to the public interest or to

the effective regulation and control of gaming or create or

enhance the dangers of unsuitable, unfair or illegal

practices, methods and activities in the conduct of gaming or

the carrying on of the business and financial arrangements

incidental thereto; and

(3) in all other respects qualified to be

licensed consistent with the laws of this state.

C. A license shall not be issued unless the

applicant has satisfied the board that:

(1) the applicant has adequate business

probity, competence and experience in business and gaming;

(2) the proposed financing of the applicant

is adequate for the nature of the proposed license and from a

suitable source; any lender or other source of money or credit

that the board finds does not meet the standards set forth in

Subsection B of this section shall be deemed unsuitable; and

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(3) the applicant is sufficiently

capitalized under standards set by the board to conduct the

business covered by the license.

D. An application to receive a license,

certification or work permit constitutes a request for a

determination of the applicant's general moral character,

integrity and ability to participate or engage in or be

associated with gaming. Any written or oral statement made in

the course of an official proceeding of the board or by a

witness testifying under oath that is relevant to the purpose

of the proceeding is absolutely privileged and does not impose

liability for defamation or constitute a ground for recovery

in any civil action.

E. The board shall not issue a license or

certification to an applicant who has been denied a license or

certification in this state or another state, who has had a

certification, permit or license issued pursuant to the gaming

laws of a state or the United States permanently suspended or

revoked for cause or who is currently under suspension or

subject to any other limiting action in this state or another

state involving gaming activities or licensure for gaming

activities.

F. The board shall investigate the qualifications

of each applicant before a license, certification or work

permit is issued by the board and shall continue to observe

and monitor the conduct of all licensees, work permit holders,

persons certified as being suitable and the persons having a

material involvement directly or indirectly with a licensee.

G. The board has the authority to deny an

application or limit, condition, restrict, revoke or suspend a

license, certification or permit for any cause.

H. After issuance, a license, certification or

permit shall continue in effect upon proper payment of the

initial and renewal fees, subject to the power of the board to

revoke, suspend, condition or limit licenses, certifications

and permits.

I. The board has full and absolute power and

authority to deny an application for any cause it deems

reasonable. If an application is denied, the board shall

prepare and file its written decision on which its order

denying the application is based."

Section 4. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately.

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